Top member reports
Consensus community valuation
$5.20
Average Intrinsic Value
4.2%
Overvalued by
Active Member Straws
#Bull Case
Last edited 2 months ago

Macquarie Presso

Parts I liked:

"Expanded Greenfields exploration activities on newly acquired tenure (from DKM) will generate new large gold
targets (+1Moz) and significantly increase the chances of new discoveries"

"Regis’ hedge position reduced to ~419koz at an average of A$1,620/oz".. These are "spot deferred" hedges.

"Regis is currently actively managing the process of selling into the lowest price hedges. Currently at a rate of approximately 10koz per
quarter – assuming a spot of A$2,410/oz this results in less than a 5% drop in average price realised compared with the spot"

Read More
#Quarterly Reports
Last edited 2 months ago

29-Apr-2020:  Quarterly Activities Report

Key Points (All figures expressed in Australian dollars unless stated otherwise)

  • Regis’ response to COVID-19 was initiated during February and has included establishment of a Crisis Management Team to coordinate its response to the pandemic. Initiatives continue to be developed and actioned.
  • The 12 Month Moving Average Long Term Injury Frequency Rate to the end of the quarter was 4.4, up from 3.5 at the end of the prior quarter. The Company has commenced a review of its Health and Safety standards, processes and culture. 
  • Quarterly gold production was 86,300 oz (Dec 19: 90,849 oz).
  • Cash flow from operations increased by $7.4m to $107.4m for the March quarter.
  • Cash and bullion was $168.8m at the end of the quarter (Dec 19: $168.8m), after payment of $40.7m in dividends, $30.0m in capitalised mining costs, $7.7m on exploration and feasibility projects, $15.6m in income tax payments and $12.1m on a number of discrete capital projects.
  • Cash cost before royalties for the quarter were $880/oz (Dec 19: $866/oz). The minor increase in quarterly cash costs was primarily driven by the reduced gold production for the quarter. 
  • AISC for the quarter was $1,174/oz (Dec 19: $1,219/oz).  The decrease in AISC was driven by lower strip ratios and ore stockpile build-up at Duketon South.
  • Assuming no further COVID-19 related impacts:
    • Full Year Production Guidance remains unchanged with a production range of 340,000-370,000 oz; and
    • After excluding the royalty cost impact associated with the higher prevailing gold price (currently ~$27/oz), full year AISC guidance is maintained at the upper end of the $1,125-$1,195/oz* guidance range.
  • The assessment phase of the McPhillamys Development Application is now well underway with Responses to Submissions (RTS) expected to be complete by the middle of the year. 
  • Diamond drill testing of the Garden Well underground target confirms a wide, robust high-grade mineralised zone beneath the pit. Results in fresh rock include 16.0m @ 4.9 g/t gold from 314m. Work defining underground potential expected to be completed in December Quarter. 
  • Drill intercepts at the Baneygo project continues to support the potential for underground resources.

*Full year AISC guidance assumes a A$1,750/oz gold price – see page 5 of ASX release 23 July 2019.

Comment

Regis Resources Managing Director, Jim Beyer, said: “Regis achieved another solid quarter of production and cash generation and its strong performance to date in FY20 saw it return another $40.7 million in dividends to its shareholders.
 
We are currently well placed for the June quarter and not withstanding any further impacts from COVID-19, remain on track to deliver our production guidance for the year of 340,000 to 370,000 ounces with our AISC expected to be at the upper end of the guidance range of $1,125 to $1,195 per ounce after excluding the impact of higher gold prices on royalty costs.  
 
I am very pleased to see the good progress with our McPhillamys Gold Project and also at the Rosemont Underground Project where we are commencing stope production. Our potential Garden Well Underground Project is also proceeding through to completion of a PFS.  
 
Overall Regis remains in a strong position to weather the COVID-19 related uncertain economic environment. This is due in no small part to the hard work and effort of our staff, contractors and our families to help manage this challenging time. To all of these people I would like to take this opportunity to say thank you on behalf of the Regis Board and management.”

--- click on link above for more ---

[Disclosure:  I hold RRL shares.]

Read More
#COVID-19 Status Update
Added 2 months ago

29-Apr-2020:  The following was part of the Quarterly Report that Regis (RRL) released today (the bulk of which I've included in a different straw):

GENERAL COVID-19 STATUS UPDATE
 
The Regis response to COVID-19 was initiated during February and has included establishment of a Crisis Management Team to coordinate and implement the Company’s COVID-19 Response Plan to the pandemic. 

The wellbeing of our employees, contractors and local communities remains Regis’ priority. Accordingly, the Company has implemented a range of measures across its business consistent with advice from State and Federal health authorities. These measures help ensure the health and welfare of our employees and their respective communities and includes the following:

  • Implementation of systems and procedures for health monitoring which includes health checks prior to check-in for travel to site;
  • Initiating social distancing protocols across the business including on aircraft, which has included chartering additional flights for travel to the Duketon sites;
  • Implementation of site management protocols for dealing with potential COVID-19 cases;
  • Relocation of interstate and international personnel to Western Australia; 
  • Temporarily extended roster arrangements for our operations;
  • Implementation of ‘work from home’ arrangements for Subiaco and Blayney offices;
  • Increased mental health awareness and support for both employees and their families;
  • Implementing plans to limit the potential impacts in the local communities in which we operate; and
  • Actions to ensure maintenance of adequate inventories with major contractors and suppliers. 

To date there have been no confirmed cases of COVID-19 across the business. To assist communities in WA to deal with the ongoing impacts of COVID-19, Regis has joined with fellow resource companies in providing financial support to the WA Royal Flying Doctor Service, Foodbank WA and Lifeline WA through the Chamber of Minerals and Energy Community Support Fund. These donations are providing essential supplies, medical and mental health support to vulnerable communities.

Regulatory and guidance changes remain dynamic, but at this time the increased restrictions are not expected to have any material impacts on the Company. Regis continues to have regular and frequent communications with mining industry representative bodies and Government about actual and potential changes to requirements and is responding accordingly.

--- --- ---

Click HERE for the rest of that quarterly report.

Read More
#Results
Last edited 5 months ago

17-Feb-2020:  Half Yearly Financial Results Presentation

Also:  Half Yearly Report and Accounts

RRL is up over 6% (so far) today on the back of this positive result:

Key Points (All figures expressed in Australian dollars unless stated otherwise):

  • Record Net profit after tax of $93.4 million and net profit margin of 25% reflects the ongoing strong profitability of the Duketon operations.
  • Revenue of $371.4 million*, with 182,807 ounces of gold sold at average price of $2,063* per ounce.
  • EBITDA of $185.6 million with a strong EBITDA margin of 50%.
  • Cash flows from operating activities of $147.2 million.
  • Cash and bullion of $168.8 million**, after the payment of $40.7 million in fully franked dividends, $20 million on the strategic tenement acquisition from Duketon Mining Limited, $33.0 million in income tax, $19.9 million on exploration expenditure and feasibility costs, $23.2 million on the development of the Rosemont underground and new satellite projects, $32.0 million on capitalised mining costs and $35.9 million on other capital including a significant TSF expansion, the Duketon airstrip uprgrade and land acquisitions in New South Wales.
  • Fully franked interim dividend of 8 cents per share declared.
  • Gold production of 178,482 ounces for H1 FY20 at an AISC of $1,226 per ounce.
  • Duketon operations continue to be on track to deliver the annual production guidance of 340,000-370,000 ounces with all in sustaining costs at the upper end of annual cost guidance of $1,125-$1,195 per ounce after excluding the extra royalty cost impact associated with the higher prevailing gold price. 

Comment:

Regis Managing Director, Mr Jim Beyer commented: “Regis has produced another strong performance, recording a record half-year profit after tax of $93.4 million and operating cash flows of $147.2 million. This outcome again demonstrates the reliability and quality of the operations at Duketon.  
 
We continue to deliver solid cash flow with robust net profit margins of 25% which has allowed the Company to undertake a period of significant capital investment towards the development of the Rosemont underground and new satellite deposits at Dogbolter-Coopers, Baneygo and Petra.  
 
The Company’s solid performance has meant that in addition to investing in our future, we can continue to provide returns to our shareholders with a declared dividend of 8 cents per share which is a very pleasing result.” 

The board of Regis Resources Limited is pleased to announce a strong half year net profit after tax of $93.4 million for the six months ended 31 December 2019. This represents a 17% increase from the first half net profit after tax of $79.9 million reported in FY2019 and is a record result for the Company.

 

*Gold sold from preproduction assets not included in revenue.

** Includes bullion on hand valued at $2,220 per ounce.

---

[continues... click on link above for more]

 

Disclosure:  I don't currently hold any RRL, but I have in the past.  My current gold exposure is via NST, EVN, SAR & SBM, plus a much smaller position in PNR.  I also hold shares in some companies that produce gold as a byproduct of other production, such as SFR (whose main game is copper).  There's nothing wrong with Regis (RRL), it's just not one I currently hold.  However, they're always on my watchlist.  This was a good report, and the market has responded positively to it.

Read More
#Company Presentations
Last edited 5 months ago
Read More
#ASX Announcements
Last edited 8 months ago

19 Oct 2018:  Regis (RRL) have released a presentation to the ASX announcements platform titled, "SEPTEMBER 2018 QUARTERLY REPORT & EXPLORATION UPDATE" - see here

Highlights:

  • Q1 gold production 90,879 ounces at AISC of A$923/oz
    • Another very strong operational quarter at the Duketon project
    • Production above mid-point of FY19 guidance & AISC below bottom of guidance
  • Continued strong cash-flow from operations $77.9m for Q1 (Q4: $85.3m)
    • Cash and bullion holdings were $190m (Q4: $209m)
    • $15.3m growth capex spent on satellite prestrips & TSF lifts (FY19f: $40m significantly weighted to H1)
  • Board approved development of Rosemont UG operation
    • Portal to be developed in Q3, development ore Sept19Q and production ore Dec19Q
    • Exploration results indicating expansion opportunities beyond current stoping/resources
  • Exploration efforts continue to deliver:
    • Early stage drilling of Garden Well high grade underground targets very positive and suggest GW to follow same path as RMT
    • Very strong extensional results at Discovery Ridge in NSW – exciting addition to MGP
  • McPhillamys EIS and DFS work continuing
    • PEA submitted and EARs issued, facilitating completion of EIS and DFS in Q3
    • Investment decision expected Q3

Disclosure:  I hold RRL shares.

Image result for Regis Resources images

Image result for Regis Resources images

Image result for Regis Resources images

Image result for Regis Resources images Duketon Map

Image result for Regis Resources images Duketon Map

Image result for Regis Resources images Duketon Map

Image result for Regis Resources images

Image result for Regis Resources images

 

Image result for Regis Resources images

Image result for Regis Resources images

Image result for Regis Resources images

Image result for Regis Resources images

Read More
#Reports
Last edited 8 months ago

25-Oct-2018:  Regis Resources' 2018 Annual Report was released today - see here

24-Oct-2019:  One year on, Regis' 2019 Annual Report can be viewed here, and their 2019 Sustainability Report can be read here.

Read More