The Regis Resources Limited (ASX: RRL) share price has fallen more than 3% this morning despite the Aussie gold miner reporting record full-year production numbers.
What were Regis' full-year highlights?
Regis reported record gold production of 363,418 ounces for the year ended 30 June 2019 (FY19) as revenue climbed 8% to $654.8 million.
The solid earnings numbers were underpinned by gold sales up 2.8% to 369,721 ounces at an averaged sale price of $1,785 per ounce.
The Aussie gold miner reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $306.8 million alongside a strong EBITDA margin of 46.8%.
However, the company's all-in sustaining cost (AISC) climbed more than 10% to $1,029 per ounce during 2019 which was a drag on profitability.
Regis reported cash flow from operating activities up 6% on the prior corresponding period (pcp) at $275.5 million while net profit after tax (NPAT) came in at $163.1 million, down 6.4% on pcp due to non-cash impairments.
On the balance sheet side, Regis reported cash and bullion of $205.3 million and announced a fully franked dividend of 8 cents per share (cps) for a total distribution of 16 cps.
Foolish takeaway
Despite the strong operational result, Regis' profitability took a hit during the year and this saw investors head for the exit in early trade.
The early sell-off of Regis shares comes despite a strong year for the ASX gold miners, with the Regis share price climbing 14.9% so far this year as gold prices have pusher higher.
However, while the US–China trade war and Brexit concerns have led the flight to safety in global and domestic markets, investors remain wary this August reporting season of softer earnings and growth numbers.
Overall, the production levels bode well for Regis' operational maturity, but the Aussie gold miner needs to find a way to increase profitability in the next 6–12 months if it is to keep shareholders happy.
Amongst the ASX gold miners, the Newcrest Mining Limited (ASX: NCM) share price has been the standout performer in 2019, rocketing 63.5% higher so far this year.
