Regis Resources (RRL) reported solid Dec Q production of 90koz at an AISC of $985/oz (+6% on costs, production in-line). The result was in line with the previous Q, albeit with marginally higher costs largely as a result of higher strip ratio’s, lower milled tonnes and increased capex. 1HFY production of 181koz at AISC $954/oz is trending at the higher end of 340-370koz guidance and at the lower end of costs. Cashflow from operations of $76.4m was broadly in line with the Sept Q ($77.9m in Sept Q and vs Argonaut $67m) at a +3% higher gold price of A$1,718 (vs Sept Q received price of A$1,660/oz) which offset the higher cost of production. Production should improve further in the March Q as DSO throughput tonnages rebound post mill re-line work. BUY, TP $5.20ps.
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