- Gold miner Regis Resources (RRL) issues a heads up to investors that its full-year statutory net profit result will likely land between $10 million and $20 million
- For reference, Regis recorded net profits of just over $146 million for the 2021 financial year — meaning the 2022 financial year result could represent a fall of as much as 93 per cent
- The company flagged higher costs due to inflationary pressures and a write-down of exploration and evaluation assets it no longer owns as reasons for the expected result
- Regis is set to release its audited full-year report on August 25
- Shares in Regis Resources are down 8.52 per cent to $1.61 at market close
Gold miner Regis Resources (RRL) has suffered a major sell-off on the ASX after flagging to investors a full-year profit result of between $10 million and $20 million for FY22.
While the company is yet to release its audited financial results, Regis issued a heads up about the upcoming result and assured investors it was largely due to non-cash impacts.
For reference, Regis tabled net profits of just over $146 million for the 2021 financial year — meaning on paper, Regis’ 2022 financial year result could represent a fall of as much as 93 per cent.
Moreover, for the first half of the 2022 financial year, Regis posted statutory net profits of $26 million.
The company said the “prevailing inflationary cost environment” seen throughout the mining sector in 2022 caused it to revisit the cost assumptions used to calculate the net realisable value (NRV) of its mined stockpiles.
Meanwhile, Regis’ full-year profit result is also expected to take a hit from a write-down of exploration and evaluation assets the company no longer holds.
Regis did not say what the potential profit drop meant for full-year dividends.
Today’s news may have come as a surprise for some investors given Regis’ record production figures from the June quarter.
The company said it produced 123,900 ounces of gold over the quarter and sold 145,200 ounces for $355 million in sales revenue.
Regis highlighted cost pressures in light of rising inflation in its June quarterly report, but it’s likely the true extent of the higher costs will be detailed when the company releases its audited full-year report on August 25.
Regis shares were down 8.52 per cent to $1.61 at market close.