Regis Resources (RRL) reported solid March Q production of 91koz at an AISC of $1,019/oz (vs 90koz @ $985/oz QoQ). The result was in line with the previous Q, albeit with marginally higher costs largely as a result of higher strip ratios associated with stripping of satellite Duketon North Operations (DNO). YTD production of 272koz at AISC $967/oz is trending at the higher end of 340-370koz guidance and at the lower end of costs. Cashflow from operations of $89.3m was up vs the Dec Q (vs Dec Q $76.4m vs Argonaut $79m) from a +7% higher received gold price of A$1,838/oz. We upgrade our recommendation to BUY (from HOLD) after share price weakness. We revise our target price to $5.24ps (prior $5.40ps).
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