JOHANNESBURG (miningweekly.com) – Australian gold producer and explorer Regis Resources has increased its production guidance for the 2017 financial year to between 305 000 oz and 330 000 oz, after a strong operational performance in 2016.
The company produced 78 741 oz in the three months ended June, from its Duketon gold mine, in Western Australia, taking 2016 full-year production to 305 084 oz, which exceeded the upper-end of its guidance of between 275 000 oz and 305 000 oz.
Regis, which on Friday published its June quarterly report, also reported cash costs for the quarter of $776/oz and all-in sustaining cost (AISC) of $951/oz, both below the lower end of the guidance. As such, the company has also adjusted its AISC range for 2017 to be between $980/oz and $1 050/oz.
Regis remained positive about its financials, as the Duketon project generated strong operating cash flow of $68.2-million in the June quarter, while the company repaid outstanding debt of $20-million under the Macquarie Bank financing facility.
“The early repayment of the loan means Regis is debt free, other than normal trade creditors and leasing arrangements,” the company noted, adding that despite the debt repayment and tax payments of $10.2-million, its cash and bullion balance increased by $16.6-million during the quarter.
Over the course of the financial year, the company has paid $50-million in fully franked dividends and repaid $20-million in debt, while increasing the its cash and bullion position by $58.8-million to $123.3-million.