Regis Resources (RRL) reported an in-line Sept Q production of 87koz at an AISC of $1,234/oz (vs June Q 91koz @ $1,189/oz). Production was below the previous Q, against higher costs, due to lower production and grades at Duketon South (DSO) due to a six-day shutdown at Garden Well for mill maintenance. Cashflow from operations of $82.5m was lower vs the June Q at $85.2m despite a higher received gold price of $2,000 vs June Q of A$1,832/oz. Cash and bullion fell to $147.4m (vs June Q $205.3m) as a result of dividends and acquisition costs to acquire additional tenement packages. Rosemont development is pleasingly ahead of schedule with plans to accelerate further. RRL’s exploration programs continue to deliver high grade intercepts which have potential read through for underground and open pit opportunities in the medium term. Guidance is unchanged at 340-370koz. We revise our target price to $5.74ps (prior $5.94) and maintain our BUY recommendation.
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