The surge in gold prices has significantly boosted the shares of Australian gold producers, with Regis Resources Ltd (ASX: RRL) experiencing remarkable gains this year. Currently priced at $6.20 per share, Regis has increased by over 140% since the beginning of the year, recovering from a 12-month low of $2.36 recorded late last year. The stock recently approached its peak of $6.73.
Record Revenue and Strategic Focus
This week, Regis released its quarterly financial report, revealing revenues of $447 million from gold sales, with an impressive average realized price of $5,405 per ounce. This marks a significant rise from the $296 million earned during the same quarter last year when gold sold for an average of $3,717 per ounce.
Jim Beyer, Managing Director of Regis, expressed satisfaction with the company’s performance, stating, “We are very pleased with how our assets are tracking against our started guidance ranges and look forward to continuing the consistent delivery into our plan.” He emphasized the company’s commitment to safely meeting its fiscal year 2026 guidance while maintaining capital discipline and enhancing shareholder value.
As of the end of September, Regis reported holding cash and bullion valued at $675 million, reflecting an increase of $158 million over the quarter. Beyer noted that production from the Duketon and Tropicana mines met expectations, while early drilling results from the McPhillamy’s project were promising.
Market Analysis and Future Outlook
Despite the strong performance, analysts from Macquarie Group retained a neutral rating on the stock, indicating there is still opportunity for investors. They set a 12-month price target of $6.80, slightly above its recent closing price of $6.25 on Thursday. When factoring in expected dividends, Macquarie forecasts a total shareholder return of 11.8%.
Similarly, UBS has issued a buy rating on Regis shares, projecting a price target of $7.25. At the close of trading on Thursday, Regis was valued at $4.7 billion. The company is set to hold its annual general meeting on November 21, 2023.
In a statement to the ASX, Macquarie confirmed an increase in its stake in Regis from 5.16% to 6.46%, signifying confidence in the company’s growth potential.
As the gold market continues to show strength, investors are keenly watching Regis Resources for further developments and opportunities in the dynamic sector. The company’s focus on operational efficiency and strategic growth may position it favorably as gold prices remain elevated.
