Why is the Regis Resources (ASX:RRL) share price down 6% today?

It's another bad day to be a Regis Resources shareholder.

| More on:
plummeting gold share price

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 sliding lower for the second day in a row.

The dip follows on from the release of the company's quarterly update. The Regis Resources share price fell 5.7% yesterday on the back of its activity report for the quarter ended 30 September. That slump appears to have continued into today's session.

At the time of writing, the Regis Resources share price is $2.01, 6.07% lower than its previous close.

Let's take a look at how the first quarter of financial year 2022 went for the gold miner.

What's weighing on the Regis Resources share price?

The Regis Resources share price is falling once more and its quarterly activities report, which details a drop in production, might be to blame.

Over the quarter just been, Regis Resources saw its gold production fall 11% on that of the previous quarter.

While its production dropped, the company's all-in sustaining costs increased by 9.7% to reach $1,521 per ounce.

Regis Resources' managing director Jim Beyer said the tough quarter was due to pre-planned lower production colliding with unexpected challenges.

One unexpected weight on the company's production was its high staff turnover.

The increased turnover forced the company to employ less experienced workers and implement more staff training.

Regis Resources noted staff turnover seemed to be an industry-wide issue over the quarter, driven by heightened demand for workers due to COVID-19 travel restrictions in Western Australia.

Additionally, it noted soon-to-be mandatory COVID-19 vaccinations might impact its staff retention in the future.

Despite the quarter sounding particularly bleak for Regis Resources, the company retained its previously issued guidance.

Over financial year 2022, the company expects to produce between 460,000 and 515,000 ounces of gold.

It also expects its all-in sustaining costs to be between $1,290 and $1,365 per ounce for the 12 months ending 30 June 2022.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Gold

A man analyses stockmarket graph on his computer.
Gold

Up 132% in a year, why is the Evolution Mining share price gaining again today?

Investors are piling into Evolution Mining shares on Friday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Gold

ASX 300 gold stock crashes 8% on guidance update

This gold miner is having a tough session on Friday. But why?

Read more »

View of a mine site.
Gold

Up 70% in a year, why this fund manager is calling time on this soaring ASX 200 gold stock

A leading investment expert foresees headwinds for this surging ASX 200 gold miner.

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Up 305% in a year, what's got investors so excited about this ASX gold share?

'First gold' is imminent...

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Why are ASX 200 gold stocks going gangbusters today?

Investors are piling into the ASX 200 gold miners today. But why?

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Gold

Guess which ASX stock is rocketing 75% on big news

Let's find out why this shares is starting the week with a bang.

Read more »

Miner looking at a tablet.
Gold

2 ASX All Ords gold stocks making moves on big news today

The ASX All Ords gold stocks are catching investor interest today. But why?

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

One ASX 200 gold stock to buy now…and one to sell

Some ASX 200 gold stocks stand to gain more from the surging gold price than others.

Read more »