- Regis Resource’s (RRL) profits slipped over the half-year interval despite an 8 per cent upswing in gold sales
- Backed by a higher average sale price, the producer upped its revenue by 8 per cent on the prior corresponding period but returned a 9 per cent loss across before and after-tax profit metrics
- Despite the mixed results, Regis maintains expectations for a “year of growth” as it awaits government approval for the McPhillamys Gold Project, which it expects to receive in the current quarter
- The company has allocated an additional $7 million to the project and as a result, has halved its interim dividend to 4 cents per share
- Investors have responded somewhat coldly to the announcement, with Regis shares off 6.50 per cent, trading at $3.10
Regis Resource’s (RRL) profits slipped over the half-year interval despite an 8 per cent upswing in gold sales.
The explorer and producer incurred a 9 per cent loss across before and after-tax profit metrics, clocking in at $123.2 million and $84.8 million, respectively.
Increased gold sales backed an 8 per cent spike in revenue, marking a $30 million upswing on the $371 million it collected in the prior corresponding period to $401 million for the period ended December 31.
The company also reported sales of 172,990 ounces of gold at an average price of $2317 per ounce, with production down slightly from 178,000 ounces in December 2019, to 173,000 ounces in December 2020.
Despite the mixed results, Regis says it is expecting a “year of growth” in its outlook for 2021 and has flagged stronger gold production of 355,000 to 380,000 ounces in the second half of the year, affirming it remains on track to meet full-year guidance.
RRL is set to halve its dividend to an interim payout of 4 cents in anticipation of successful government approval for its McPhillamys Gold Project, to which it has allocated an extra $7 million in its FY21 guidance update.
The ASX 200-lister has affirmed this to be a “prudent” financial decision as it expects a ruling from relevant regulatory bodies could be made in the current quarter.
In terms of cash and equivalents, Regis is sitting with $202.6 million in available funding, a marked increase on the prior corresponding period.
Investors have responded somewhat coldly to the announcement, with Regis shares off 6.50 per cent, trading at $3.10 at 2:32 pm AEDT.