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Regis Resources and Westgold Resources have restored some investor faith in the beaten-down gold sector after reporting record production and only modest increases in operating costs.
Regis said it had produced a record 123,901 ounces of gold in the recent June quarter and a record 437,300oz over the full year.
The annual figure came in at the lower end of revised guidance issued in January of 420,000-475,000oz, but the miner also noted its cash and bullion reserves had increased by $60 million over the quarter to $227m.
Regis warned general industry inflationary pressures had continued across its operations and preliminary indications pointed to a full-year all-in sustaining cost slightly above the top end of its full-year guidance of $1425-$1500/oz.
Managing director Jim Beyer said the company had reliably delivered on its improvement plans that were developed and implemented to address the operational challenges it experienced in the first half of the year.
“This has seen the company deliver an improved performance despite the challenging external conditions,” he said.
Mr Beyer said Regis was well placed for increased annual gold production in financial year 2023.
The company expects to release its full June quarter production results on July 26.
The Regis update comes just days after WA billionaire Andrew Forrest launched an unsuccessful share raid on the miner to lift his stake from 5 per cent to 19.9 per cent.
Meanwhile, Westgold reported record June quarter production of 72,591oz and record full-year production of 270,878oz.
The miner said full-year costs were expected to be within 5 per cent of guidance.
Managing director Wayne Bramwell said Westgold had delivered three solid quarters and a cracking fourth quarter production result that had seen the company achieve its guidance.
“In financial year 2023, the focus will be on simplifying our business to enhance profitability and Westgold starts the year with renewed focus, continued commitment to safety and confidence in our future,” he said.
The updates come after a raft of production downgrades from ASX listed gold miners in recent weeks including Ramelius Resources, St Barbara and Evolution Mining.
Investors had feared further downgrades across the sector and were becoming increasingly concerned about rising costs.
Regis shares closed up 15.5¢, or 11 per cent, to $1.605 while Westgold was up 7¢, or 6 per cent, to $1.29 at the close.
