Regis belted on production warnings

Friday March 6, 2015: Regis Resources (RRL) shares have been smashed this morning after the gold miner revealed that its production had been hit by a host of problems.

The stock was 17 per cent lower at $1.58 following its admission that rain, pitwall failures and lower-than-expected grades had plagued its performance this year.

Regis said 2015 production at Garden Well would be below guidance due to lower tonnages and grade. The situation was made worse by heavy rain, which had forced mining to stop temporarily, leaving the operation to rely on low-grade stockpiles at various times.

The Rosemont project has been hit by several pit wall failures, preventing access to higher-grade ore. But higher-than-expected grades overall meant that Rosemont's total production for 2015 was set to exceed guidance.

At Moolart Well, production in the current half was expected to be lower than the 58,030oz recorded   in the previous six months as grades continued to fall over the remainder of the project's life.

The upshot of all this is that March quarter production is expected to be just 65,000oz. But Regis said production will improve as the year rolls on.

"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 305-355,000oz," Regis said.


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