Shares in gold miner Regis Resources Limited (ASX: RRL) are 4.4% higher to $3.80 today after the group upgraded its FY 2018 gold production and gross margin guidance.
Over the financial year ahead, Regis now expects to produce between 335,000 to 365,000 ounces of gold at an all in sustaining cost to the company of $940 to $1,010 per ounce. Over FY 2017 the group mined 324,000 ounces of gold. The group expects production costs may come in lower than FY 2017 due to mining higher grades and lower stripping cost ratios.
The current Australian dollar gold price has consistently traded above A$1,500 over FY 2017 and despite the strengthening Australian dollar consensus is that the gold price is unlikely to move significantly lower over the year ahead.
For the six-month period ending December 31 2016 it posted a net profit of $61 million, which was up 33% over the prior corresponding half. The group declared a dividend of 7 cents per share, which represented 57% of profit after tax for the half-year to December 31 2016.
