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Regis dives on production issues

A haul truck is loaded with ore at the bottom of Regis Resources’ Garden Well open pit operations near Laverton. Picture: Jarod Lucas/Kalgoorlie Miner.

Shares in Regis Resources were punished after the gold miner flagged production problems at its mines.

The miner said full-year gold production was expected to come in at the lower end of its previously stated range of 305,000-355,000 ounces.

Regis said full-year production expectations at Moolart Well were within guidance but warned of a lower second half production as the mined grade of the deposit trended lower towards the remaining life of mine grade.

Moolart Well produced a record 58,030 ounces in the December half, but had produced just 13,019 ounces in the first two months of the second half to the end of February.

Regis said production at Garden Well had been hampered by lower head grades and heavy rain.

Full-year production at the mine was therefore expected to be below previous guidance.

Regis also warned that production at its Rosemont mine had been affected by several pit wall failures, meaning higher grade ore has not been accessible.

However the company said it expected full-year production at Rosemont to exceed previous guidance.

"Based on the first two months of production from the Duketon project, the group's March quarter gold production is expected to be approximately 65,000 ounces," Regis said in a statement.

"Production is expected to increase in the June quarter to 75,000 ounces of gold as grade at Rosemont and Garden Well improve."

Regis said it had also renegotiated its $20 million debt facility with Macquarie Bank to allow the company to resume paying dividends.

Shares in the company were down 51 cents, or 26.7 per cent, to $1.40 at 10.45am.