Why shares in this ASX gold miner are on the move today

The Regis Resources Ltd (ASX: RRL) share price is losing ground in early trade after the gold miner's latest quarterly production update.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Regis Resources Limited (ASX: RRL) share price is one to watch in early trade after the gold miner's latest quarterly update. Regis Resources shares opened morning trade down around 1%, but have since lifted to be trading 1.08% up at the time of writing.

a woman

What did Regis Resources announce today?

Regis Resources' quarterly gold production climbed to 90,849 ounces for the quarter ended 31 December 2019. That represents a 3.67% increase on the September 2019 quarter, as cash flow from operations climbed $17.5 million to $100 million.

Cash and bullion increased by $21.4 million to $168.8 million at the quarter-end as cash costs fell lower.

The Aussie gold miner also recorded a decrease in its all-in sustaining cost (AISC) throughout the period. Regis Resources' AISC fell 1.22% to $1,219 per ounce in the December quarter, largely due to higher production numbers.

The group's full-year production guidance remains unchanged with a production range of 340,000 to 370,000 ounces. The AISC is expected to be at the upper end of its $1,125 to $1,195 per ounce guidance range.

Positively, the group's Duketon Gold Project improved its performance during the quarter. Cash cost before royalties fell to $866 per ounce compared to $914 per ounce in the prior quarter.

Regis Resources cited a higher average gold price, higher mining volumes and drill and blast costs as factors for increasing its AISC for the year.

How has the Regis Resources share price performed recently?

The Regis Resources share price slumped lower in 2019, in what was a disappointing year for shareholders.

The group's shares fell from $4.91 per share on 4 January to $4.34 per share on 31 December. However, there are signs of a brighter start to 2020.

Shares in the $2.35 billion gold miner are up 8.35% in January to be ahead of the S&P/ASX 200 (INDEXASX: XJO).

That's a solid start for an ASX 200 stock with a 3.46% dividend yield on offer to investors as well.

Foolish takeaway

The Regis Resources share price is fluctuating on the back of today's update. However, it's still doing better than listed rival St Barbara Ltd (ASX: SBM), which has seen its share price drop nearly 3% in early trade.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.
Share Fallers

Why ANZ, Challenger, Hub24, and Lynas shares are dropping today

These shares are under pressure on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Monash IVF, NAB, Viva Energy, and Worley shares are falling today

These shares are starting the week in the red. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today

These shares are ending the week in the red. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why 29Metals, DGL, Fletcher Building, and Newmont shares are falling today

These shares are out of form and sinking on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Boss Energy, Telix, Woodside, and Yancoal shares are falling today

These shares are having a tough time on hump day. What's going on?

Read more »

Young businessman lost in depression on stairs.
Share Fallers

What's going on with the DroneShield share price?

The drone operator's share price outperformed in March, but has now crashed again.

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

Why Clarity, Qantas, Universal Store, and Westpac shares are falling today

Let's see why these shares are missing out on the market's move higher today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today

These shares are starting the week in the red. But why?

Read more »