The Newswire

Your daily serving of financial goodness

Regis Resources shares hit by production output guidance

Regis Resources shares hit by production output guidance
Mar 09, 2015 By Simon Herrmann

Regis Resources Ltd (ASX:RRL) is down over 8% in the early trading hours today, after plunging 27% the previous week. The mining company has been plagued with falling commodities prices for some time now. Demand from China has been cooling off significantly which has dug deep into commodity prices. Australian mining companies have been particularly vulnerable due to their reliance on Asia growth for sales. But commodity prices aren’t the only problem faced by Regis Resources. They announced that their Duketon operations were experiencing more difficulties. Last year some of their operations were inhibited by rainfall and flooding. Now they have announced that their operations in Moolart Well, Rosemont and Garden Well have yet to fully recover. Garden Well is projected to come in below guidance. However, the other two operations are expected to come in below previous record production numbers.

On a positive note, Regis Resources has announced that they will remain on current projections and match their previous production guidance. “Despite lower than expected production in the March 2015 quarter, the company remains on track to deliver within the lower end of the group’s 2015 gold production guidance of 305,000 to 355,000 ounces”, claimed managing director Mark Clark. Regis Resources has also announced that is has negotiated a debt reconstruction with Macquaire Group which will allow them to begin paying a dividend again. Some minor positive news has not been enough to lend confidence to investors. RRL is trading around 1.275, down about 8.9% in the opening hours of the trading day.

Share this article

Simon Herrmann Author: Simon Herrmann Mar 09, 2015

Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.

Growing Cases of Cancer Fuel Demand for Diagnostic Technology: Sienna Cancer IPO

The Australian government estimates that over 130,000 new cancer cases will be diagnosed in 2017 and the risk of individuals dying from cancer by their 85th birthday will be one in five.

Author: Simon Herrmann Jun 23, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News