Key Points
- Regis share price up 10% since last Tuesday
- Investor appear to have found the bottom of the company's shares
- Non-executive director decides to depart the company
The Regis Resources Limited (ASX: RRL) share price has been travelling higher over the past week. This comes despite the company providing a shock announcement regarding a resignation from a board member on Friday.
At market close, the gold miner's shares finished down 0.25% to $1.995.
Why are Regis shares on the rebound?
It appears investors believe that the worst is behind the company now, sending the Regis share price higher last week.
After hitting a multi-year low of $1.665 on 3 December, Regis shares broke the negative trend to surge higher.
The relative strength index (RSI) fell to a lowly 24, indicating that the company's shares were oversold. This may have spurred investors to take advantage of the share price weakness which attracted buyers to the market.
If the company's shares can break above the psychological barrier of $2, then further gains could await investors. Currently, there is a support level at $1.90 in place, which may hold provided that the price of gold doesn't plummet.
Furthermore, investors shrugged off the news that Regis' non-executive director, Russell Barwick resigned with immediate effect citing personal reasons.
The board expressed its appreciation for the contribution that Mr Barwick made since his appointment in March 2020.
Regis chair, James Mactier said:
I would like to thank Russell for his work over the last 2 years during which time, notwithstanding the extensive travel restrictions due to COVID-19, he has made a significant contribution to the company.
Regis share price performance
It's been a rough 12 months for the Regis share price, having plummeted by more than 40% for investors. Its shares are marginally higher by 2% for year-to-date after staging a small comeback.
Based on valuation grounds, Regis has a market capitalisation of roughly $1.51 billion, with approximately 754.78 million shares on issue.
