The Regis Resources Limited (ASX: RRL) share price has slipped into the red this year and is down around 7% so far in 2022, and around 32% over the last 12 months.
As can be seen in the chart below, the stock has been volatile these past 3 months, trading as high as $2.42 on 19 April but having slipped to just $1.81 as at Friday's close.
Meanwhile the S&P/ASX 300 Metals and Mining Index has pushed more than 8% higher so far in 2022.
Image source: Getty Images
What's up with the Regis Resources share price?
Investors have pushed the Regis share price lower in recent weeks despite a levelling in the price of gold, and a company update.
Gold now trades at US$1,818 per troy ounce, having bounced off lows in late May. Meanwhile, on 8 June, Regis Resources also released an update to its mineral resources and ore reserve statement.
"The Group mineral resources as at 31 December 2021… are estimated to be 287Mt at 1.1 g/t gold for 9.92Moz gold," it said.
"This compares with the estimate at 31 December 2020 of 301Mt at 1.1 g/t Au for 10.36Moz of gold as announced 15 June 2021 post the acquisition of 30% of Tropicana."
Whereas ore Reserves as at 31 December 2021 were estimated to be 117Mt at 1.1 g/t gold for 4.14Moz gold compared to 145Mt at 1.0 g/t Au for 4.83Moz of gold as announced 15 June 2021.
According to mining company MMG, mineral resources are the concentration of material of economic interest in or on the earth's crust, whereas ore are the parts of a mineral resource that can at present be economically mined.
In the company's update, Regis CEO Jim Beyer said:
We have a portfolio of long-life assets that are all in the Tier 1 location of Australia. Our Reserves underpin a Reserve life of more than 9 years and provide a strong platform for the company's ongoing growth. Our Ore Reserves are estimated at one of the lowest gold price assumptions in the industry thereby continuing to position the business to be resilient through the cycles. Duketon underground reserves growth continues to outpace depletion and regional exploration works continue to identify early stage, but exciting intercepts, in close proximity to our existing mills. Overall we are delivering outcomes that position Regis for ongoing value growth.
The Regis Resources share price climbed 2.11% following the update. Meanwhile, however, Citi downgraded the stock to sell shortly before the release, setting its price target to $1.90 per share in the process.
According to Bloomberg data, Citi is the only broker out of 10 others to rate Regis shares a sell.
