Why the Regis (ASX:RRL) share price is up today despite sliding gold price

The Regis Resources (ASX: RRL) share price is up 3.5% today, following positive results at the company's annual general meeting.

| More on:
bejewelled crown representing asx dividend shares king

Image source: Getty Images

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 up 3.5% at $3.77 in afternoon trading following positive results at the company's annual general meeting (AGM).

The share price rise comes despite the gold price slipping overnight to US$1,808 per ounce.

Like all gold shares, the Regis share price is closely aligned to the price of the yellow metal. Regis shares hit their 2020 peaks (so far) in late July and early August, when gold was trading above US$2,000 per ounce.

Following today's gains, the Regis share price remains down 12.9% year-to-date. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 0.1%.

What does Regis Resources do?

Based in Perth, Regis Resources Limited is a gold producer and explorer. The company's gold operations are located across Australia and in Africa. Its Australian sites include the Duketon Gold Project in the North Eastern Goldfields of Western Australia and the McPhillamys Gold Project in the Central Western region of New South Wales.

Regis shares began trading on the ASX in 1999.

What's driving the Regis share price up today?

The company announced some positive news and forward guidance to the ASX today. This included record net profit after tax (NPAT) of $200 million with a return on equity (ROE) of 24%. Regis also reported earnings before interest, tax, amortisation and depreciation (EBITDA) of $394 million, up 28%.

Full year dividends came in at 16 cents per share. That represents a dividend yield of 4.2% at the current share price.

In forward guidance, Regis said it expected a year of growth with gold production "heading to" 400,000 ounce per annum. The company plans to lift its production rate above the historic annual rate in the second half of the year.

Addressing the results at the AGM, Regis chair James Mactier said:

An increased gold price and consistent operational performance resulted in a record net profit after tax of $200 million. Regis continued to be a leader in the gold industry in the fundamental business metrics of profitability per ounce of production, earnings per share, dividend yield and return on equity.

At the same time, we utilised our strong operational cashflows to invest in future production growth through capital and exploration expenditure and reduced our hedge book, whilst maintaining a strong cash balance and debt free status.

Our strong financial position and outlook, enabled the Board to declare fully-franked dividends of 16 cents per share for the year, totalling $81 million. Total dividends declared by Regis now amount to $488 million.

Should you invest $1,000 in Westpac Banking Corporation right now?

Before you buy Westpac Banking Corporation shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Westpac Banking Corporation wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben 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 Market News

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another tough day for investors this Tuesday.

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 HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

A close-up photo of a ballot box with an Australian flag in front of it and a gentleman's hands placing his vote in the 2022 election inside the box
Share Market News

How these ASX 200 stocks are primed to gain from Labor's resounding Federal election win

With the Federal election in the rear-view, which ASX 200 stocks should I buy now?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Dimerix, Evolution Mining, Inghams, and NextDC shares are charging higher today

These shares are rising when many are falling today. But why?

Read more »

Smiling young woman eating chocolate outdoors.
Share Market News

The See's Candies playbook for ASX investors

Two ASX businesses that remind me of Buffett’s sweetest investment.

Read more »

Man smiling at a laptop because of a rising share price.
Opinions

My 2 favourite ASX sectors to invest in

Finding your groove can help your investing success.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Opinions

3 things I learned from Warren Buffett being the CEO of Berkshire Hathaway

The Oracle from Omaha is in his last year as CEO.

Read more »

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »