Regis Resources (ASX:RRL) is the second gold stock on the ASX to have been hit by operational headaches stemming from record rainfall.
Calling the intense weather “substantial and protracted,” Regis pointed to “limited” production loss across two affected projects; Duketon and Tropicana.
The latter project was suspended due to flooding and at Duketon operations continue despite a major road connecting the site to the WA town of Laverton cut off. It’s the second time in the 2020’s we’ve seen such extreme rainfall.
More than 50% of the average annual rainfall, in fact, has fallen in Australia’s affected regions in the last 18 days. If you wanted an example of how climate change is a risk to financial markets, you’re looking at it.
Regis, in turn – a well-established gold miner with a market cap worth nearly $1.5B – has seen shareholders largely shrug off the news with shares down -0.40% to $1.89/sh as at lunchtime on Monday.
Gold production guidance was maintained for 90-90Koz in Q1CY2024.
However, the company expects to drift down to the lower range at Tropicana – no surprises there with operations suspended.
Were the gold price not so exciting right now, it’s possible we could see more shareholder panic.
RLL shares last at $1.89.