Mid-tier gold miners Regis Resources and Westgold Resources have shrugged off ongoing COVID-19 labour pressures to post record production for the 2021–22 financial year (FY22).
Regis produced 437,300 ounces (oz) across the 12 months, a 17 per cent increase from the 2020–21 financial year (FY21) and consistent with FY22 production guidance of 420,000–475,000oz.
The company’s Duketon gold operation in Western Australia produced 315,500oz in FY22, while its 30 per cent share in the Tropicana gold operation in WA amounted to 121,800oz of production across the 12 months.
Regis also posted record quarterly production, with 123,901oz produced during the June quarter – a 20 per cent increase from the previous quarter.
Regis managing director Jim Beyer said the results were validation for the improvement measures the company has put in place.
“We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year,” he said.
“This has seen the company deliver an improved performance despite the challenging external conditions.”
Regis’ improved performance in the June quarter delivered a 36 per cent increase in the company’s cash and bullion balance, from $167 million at March 31 to $227 million at June 30. This increase included a $17.9 million tax refund made during the quarter.
The mid-tier gold miner wasn’t immune to global inflationary pressures, however, suggesting it would report a full-year all-in sustaining cost (AISC) slightly above its FY22 cost guidance ($1425–$1500/oz).
Westgold also produced record gold for FY22, with an output of 270,878oz across the 12 months. This included a record quarterly production of 72,591oz in the three months to June 30.
This saw the company achieve its FY22 production guidance of more than 270,000oz.
“Our team has met every challenge that FY22 has thrown at them, and this result is testament to their resilience and ability to find a way to succeed,” Westgold managing director Wayne Bramwell said.
“In FY23, the focus will be on simplifying our business to enhance profitability and Westgold starts FY23 with renewed focus, continued commitment to safety and confidence in our future.”