Regis Resources (RRL) released June Q results with gold production of 87.3koz at an all-in sustaining cost (AISC) of A$1,358/oz (+1% gold, +16% AISC). RRL finished FY20 with 352koz in the middle of 340-370koz guidance range. The Company is moving forward with a number of growth opportunities including a potential underground at Garden Well and the McPhillamy’s Project in NSW. Assuming the next phases of permitting progress as planned, McPhillamy’s could be commissioning by H2 2022. RRL added $41m cash during the quarter to finish with $209m cash and no debt. The mark to market value of the 399.5koz hedge position remains the largest out of the money position (~$440m) of any ASX listed mid-cap gold producer. While delivery of the spot-deferred contracts is flexible, the hedge book remains a deterrent for some investors in a rising gold environment.
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