Regis Resources’ share price slides after releasing significantly lower FY25 production guidance

Shares in Regis Resources retreated more than 9 per cent on Thursday after the northern Goldfields-focused gold producer released significantly lower production guidance for the current financial year.

Regis announced FY25 guidance of 350,000 ounces to 380,000oz while releasing its FY24 results which revealed it had produced 417,700oz of gold, just within its 415,000-455,000oz range.

The company also issued FY25 all-in-sustaining cost guidance of $2440/oz-$2740/oz, above the FY24 figure of $2286/oz.

Regis, which operates the Duketon gold project north of Laverton and has a 30 per cent stake in Tropicana 330km north-east of Kalgoorlie-Boulder, said its FY25 guidance demonstrated a continued focus on delivering profitable ounces and building cash balance.

“At Duketon, the production range reflects the reduction in ounces produced as (Duketon North Operation) transitions into care and maintenance. This leaves all Duketon production from Duketon South open pits and undergrounds,” the company said.

“The AISC guidance range reflects this overall reduced production along with the increased proportion of underground ore being mined and increasing mining depths within open pits.”

Regis said at Tropicana since the severe weather events in March, recovery of open-pit mining performance had been constrained by ongoing supply disruptions, poor labour availability and reduced equipment availability.

“Mining activities have yet to normalise and the FY25 production and cost guidance reflects the flow-on impact that these lower-than-expected mining rates continue to have on production,” the company said.

“At the group level, stockpiled material will continue to supplement mill throughput and, as a result, FY25 AISC includes (a) $150/oz non-cash inventory adjustment.”

Regis shares were trading at $1.725 near the close on Thursday, down 18.5¢, or 9.7 per cent.

Nevertheless, Regis Resources’ managing director Jim Beyer was upbeat about the company’s June quarter.

“This has been a significant few months for the company,” he said.

“The cash-generating capacity of Regis is now clear for all to see after we broke free of the longstanding hedge book.

“With a healthy gold price tailwind and mines continuing to recover from extreme wet weather, Regis delivered record cash and bullion build of $109 million in the last quarter and $141m since the hedge book was closed out in December 2023.

“We continue work on delivering ongoing cash build into the future.”

Mr Beyer said the company also continued to progress key value growth activities during the quarter.

“At Duketon we continued to build on our underground-centric strategy, targeting four to five sustainable operating underground mines,” he said.

“Delivering into this strategy, work is now under way on the development of a third mine, Garden Well Main, and significant life extension at Rosemont with stage three.

“In line with our underground growth strategy, for a third consecutive year, we delivered underground ore reserve growth at Duketon and Tropicana, with growth outpacing depletion.

“We believe that this underground reserves growth trend will continue, and while we continue to drill for high-value, open pit ounces, we are confident we can add further value by identifying additional underground mines.”