Down 46% in FY22, could this ASX gold explorer’s shares be bouncing back?

The Regis Resources Limited (ASX: RRL) share price had a tough financial year. However, it is bouncing back at the start of FY23 following strong gold production results in the June quarter.

This ASX gold explorer’s shares descended from $2.39 at market open on 1 July 2021 to $1.30 at market close on 30 June 2022. This is a nearly 46% fall. In today’s trade, the Regis Resources share price is rising 0.68%.

Let’s take a look at how this ASX gold explorer performed during the year.

Share price falls

The Regis Resources share price fell in FY22, but it was not alone among ASX gold explorers. The Evolution Mining Ltd (ASX: EVN) share price dropped nearly 48% between market open on 1 July 2021 and 30 June 2022.

Regis explores gold in the north eastern goldfields in Western Australia and the central western area of New South Wales.

In January, the Regis share price suffered amid a negative note out of Goldman Sachs. The broker retained a sell rating and cut the price target on the company’s shares to $1.90.

The company’s share price also fell following an update on its FY22 guidance. Production guidance was cut to between 420,000 to 475,000 ounces of gold, down from 460,000 to 515,000 ounces.

In early April however, Regis shares benefited from a positive broker note released by Credit Suisse. Analysts maintained an outperform rating and lifted the price target on the company’s shares.

In May, Regis shares were among the top most shorted stocks on the ASX. As my Foolish colleague Zach reported, this short interest may have been related to cost pressures and labour shortages. The gold price also fell 2% during the month. However, multiple analysts still kept a buy rating on the stock.

Bouncing back

Regis reported record gold production in the June quarter of 123,901 ounces.

For FY22 overall, the company reported record gold production of 437,300 ounces. The company also reported that its cash and bullion jumped to $227 million at 30 June 2022 from $167 million at the end of March.

Managing director Jim Beyer said:

We are very pleased to deliver a record quarter of gold production for the June 2022 quarter. We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year.

This has seen the company deliver an improved performance despite the challenging external conditions

On the back of this update, the company’s share price appears to be bouncing back. Regis shares have jumped more than 13% since market close on 30 June.

This ASX gold explorer has a market capitalisation of about $1.1 billion based on its current share price.

The post Down 46% in FY22, could this ASX gold explorer’s shares be bouncing back? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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