Regis’ response to COVID-19 was initiated during February and has included establishment of a Crisis Management Team to coordinate its response to the pandemic. Initiatives continue to be developed and actioned.
The Regis Resources 12 Month Moving Average Long Term Injury Frequency Rate to the end of the quarter was 4.4, up from 3.5 at the end of the prior quarter. Regis has commenced a review of its Health and Safety standards, processes and culture.
Quarterly gold production was 86,300 oz (Dec 19: 90,849 oz).
Cash flow from operations increased by $7.4m to $107.4m for the March quarter.
Cash and bullion was $168.8m at the end of the quarter (Dec 19: $168.8m), after payment of $40.7m in dividends, $30.0m in capitalised mining costs, $7.7m on exploration and feasibility projects, $15.6m in income tax payments and $12.1m on a number of discrete capital projects.
Cash cost before royalties for the quarter were $880/oz (Dec 19: $866/oz). The minor increase in quarterly cash costs was primarily driven by the reduced gold production for the quarter.
AISC for the quarter was $1,174/oz (Dec 19: $1,219/oz). The decrease in AISC was driven by lower strip ratios and ore stockpile build-up at Duketon South.
Assuming no further COVID-19 related impacts:Full Year Production Guidance remains unchanged with a production range of 340,000-370,000 oz; and
After excluding the royalty cost impact associated with the higher prevailing gold price (currently ~$27/oz), full year AISC guidance is maintained at the upper end of the $1,125-$1,195/oz* guidance range.
The assessment phase of the McPhillamys Development Application is now well underway with
Responses to Submissions (RTS) expected to be complete by the middle of the year.
Diamond drill testing of the Garden Well underground target confirms a wide, robust high-grade mineralised zone beneath the pit. Results in fresh rock include 16.0m @ 4.9 g/t gold from 314m.
Work defining underground potential expected to be completed in December Quarter.
Drill intercepts at the Baneygo project continues to support the potential for underground resources
Regis Resources Managing Director, Jim Beyer, said: “Regis achieved another solid quarter of production and cash generation and its strong performance to date in FY20 saw it return another $40.7 million in dividends to its shareholders.
We are currently well placed for the June quarter and not withstanding any further impacts from COVID-19, remain on track to deliver our production guidance for the year of 340,000 to 370,000 ounces with our AISC expected to be at the upper end of the guidance range of $1,125 to $1,195 per ounce after excluding the impact of higher gold prices on royalty costs.
I am very pleased to see the good progress with our McPhillamys Gold Project and also at the Rosemont Underground Project where we are commencing stope production. Our potential Garden Well Underground Project is also proceeding through to completion of a PFS.
Overall Regis Resources remains in a strong position to weather the COVID-19 related uncertain economic environment. This is due in no small part to the hard work and effort of our staff, contractors and our families to help manage this challenging time. To all of these people I would like to take this opportunity to say thank you on behalf of the Regis Board and management.”
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