There is nothing like a sharp fall in the value of the Aussie dollar and some good weather to improve the colour of a mine’s profit and loss account. And so it was yesterday with gold miner Regis Resources (RRL).
Regis yesterday reported a $86.9 million full-year profit, a sharp improvement from the $148 million loss a year earlier that was driven by the falling gold price, a stubborn dollar and flooding at the miner’s WA mines, Garden Well and Rosemont.
On top of that the company boosted production 14% to 310,204 ounces over the course of the year and cash costs were up slightly at $A891 an ounce.
Regis said gold sales jumped 25% to $464.8 million, and produced a pre-tax and pre-impairment profit of $125 million compared to $79.5 million the previous year.
The company declared a fully franked dividend of six cents a share, compared to no dividend last year.
RRL 1Y – Regis returns to profitability
Regis held cash and gold of $64.5 million at the end of June after repaying $20 million of bank debt and cutting it to $20 million at the end of June.
The company said liquid working capital position (cash and gold bullion, trade & other payables and bank debt) improved by $94.2m during the course of the year.
Managing director Mark Clark said the pre-tax profit of $125 million and operating cashflow of $142 million for the year reflected the robust operations at the Duketon gold project.
“The recommencement of dividends with a six-cents-per-share final dividend for 2015 is also a reflection of our strong cashflows and profitability.
“With gold production guidance for full-year 2016 of 275,000-305,000 ounces at an all in sustaining cost of $970-$1070 an ounce, I think we have a really strong base to grow the business in the coming years,” he said yesterday.
Regis shares were up three cents, or 1.9%, to $1.62.
