One of the gold mining stocks, besides demonstrating strong financials, is focused on expanding its gold resources through exploration. Considered one of the best gold companies to invest in
Regis Resources Limited (ASX: RRL)
Regis Resources Limited (ASX: RRL) had a strong operational and financial performance for the December quarter of 2024, achieving solid results across its gold production operations. Total gold production reached 101.3koz, with the company managing an All-In Sustaining Cost (AISC) of $2,317/oz. The Duketon operations contributed 58.3koz at a higher AISC of $2,667/oz, while Tropicana, under Regis ownership, set a record with 43.0koz produced at a lower AISC of $1,773/oz. The company reported a strong quarter of gold sales, totaling 118.1koz and generating $482M in revenue, driven by an average realised price of $4,076/oz. Operating cash flow was robust at $215M, split nearly equally between the Duketon and Tropicana assets. Capital expenditure during the quarter totalled $54M, focusing on development and growth activities at both sites. Regis also made significant strides towards financial strength, increasing its cash and bullion position by $149M, reaching a total of $529M as of December 31, 2024. This financial gain was bolstered by a well-timed repayment of its $300 million Term Loan Facility in January 2025, well ahead of its maturity, showcasing the company’s solid balance sheet and debt-free status moving forward. Notably, the company’s strategic focus on being unhedged allows it to fully benefit from strong gold prices, positioning Regis for sustained profitability and growth.
Exploration and growth efforts were also key highlights during the quarter. Regis, one of the top gold stocks, made progress in expanding mineralisation across its portfolio, particularly at the Duketon and Tropicana projects. The company established an exploration target for the Ben Hur area, with estimates of 4.0Mt to 6.0Mt at grades of 2.2g/t to 2.8g/t, suggesting between 300koz and 550koz of gold potential. Drilling at Duketon continued to expand mineralisation at several key sites, including the Garden Well, Rosemont, and Tooheys Well areas. Notably, underground exploration at Garden Well and Rosemont showed promising growth potential. At Tropicana, near-mine exploration activities also yielded positive results, with encouraging intersections at the Boston Shaker and Tropicana underground areas, while regional exploration identified new prospects with further drilling planned. The company’s aggressive exploration strategy is designed to increase its resource base and future production, and it has already demonstrated success with multiple new mineralised zones. In terms of financial allocation, Regis spent $14M on exploration efforts across its assets and $2M on the McPhillamys project, which has faced legal challenges regarding a protection declaration on part of the approved gold project. Regis is on track for growth, with steady production and costs, and favorable gold prices. This puts them in a strong position to strengthen their finances and continue succeeding in the future.
Source: Company’s Report
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