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RRL

Regis Resources Ltd Rallies 4% On The Back Of 2020 Half Year Financial Results

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

Regis Resources Ltd (ASX: RRL) released their 2020 Half Year Financial Results for the half year ended December 31, 2019. Regis Resources is an Australian pure play gold production and exploration company with operations in Western Australia and New South Wales.

 

REGIS RESOURCES

Australian pure play gold miner Regis Resources has rallied 4% on the back of its 2020 half year financial results. The company reported 27% EBITDA growth and 17% earnings growth. (Credit: AustralianMiningReview.com.au).

 

RRL reported sales revenue of $371.4m, a 17% increase from 1H19 and a 5% beat on consensus expectations. This came as production actually fell 1.6% from 1H19 to 1H20. The company’s all-in sustaining-cost per ounce rose 28.5% from 1H19 to 1H20. This translated to an EBITDA of $186 million (broadly in line with consensus expectations), representing 27% growth and providing an EBITDA margin of 50%. Meanwhile, net profit after tax was reported at $93.4m, representing 17% growth and increasing the net profit margin by 25%. However, assuming the current earnings run rate, the gold price would need to rally significantly for RRL to meet their full year guidance. Furthermore, Regis paid a dividend of 8 cents per share, in line with consensus expectations.

The reason the EBITDA number was broadly in line with expectations (despite a 28.5% increase in the all-in sustaining-cost) was primarily due to the recent run in gold price (which has rallied 14.5% in FY20 so far).

Traders appear pleased with the reported numbers, as the company’s share price is up 4 per cent at market open.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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