Regis Resources has recorded a lower than expected gold production update for the March quarter in the 2023 financial year (FY23).
March saw the company end the quarter with a gold production of 103,728 ounces, and a $53 million increase in the cash and bullion balance to $204 million.
The company said the underwhelming gold production results was due to a slower than planned ramp up of the Duketon Garden Well South underground project and unplanned maintenance events at the Rosemont process plant.
Additionally, there was a lower underground performance at the Tropicana gold project, which is a joint venture with Anglogold Ashanti.
Regis Resources said these factors have been rectified with rates returning to plan in the early part of the June quarter, and the company’s FY23 production and cost guidance has been revised to list as:
- gold production 450,000—470,000 ounces (within original guidance)
- all-in sustaining costs $1795—$1,845 per ounce
- growth capital $195—$205 million
- exploration and McPhillamys $66 million.
The full March quarter 2023 operating, cost and cash flow results will be provided in the March quarter report to be released on April 27.
Wet weather conditions in late March at the Duketon gold project also affected the results, which Regis Resources said it recognises could extend further.
Regis Resources’ managing director Jim Beyer described the March quarter results as below expectations, but the company is on track to deliver its long-term plans.
“Over the last two years we have been investing heavily in our existing operations for a future of growth,” Beyer said.
“We are coming to the end of that investment period and looking forward to entering the cash build phase over the June quarter.”