June Research Report - Regis Resources, page-16

Great amount of detail in there Nord

RRL have re-negotiated their debt and they paid $20M back in dec 14, with a view to paying the further $20M odd at EOFY 15.. the re-negotiation means that this payment for EOFY has been deferred? is this correct?

As someone else mentioned, no operation update is good news for June QTR and a shift back to production normality should be positive for the share price if there is also the sniff of a modest dividend

It seems this rain event has occured and disrupted production around Feb, wet season in 14 and 15.. this has to be concern for investors and perhaps some discount has to be factored in now going forward to mitigate the chance of re-occurance and the ongoing impact this has on the bottom line for RRL

In the 2014 financial report, the increase in overall AISC (driven by issues at Garden Wall) from approx 213M (2013) to 292M (subtracting profit before tax from gold sales) and the impairment charge of some 220M are the main focus of my analysis in terms of where we might be headed and what to expect from FY15 report

Based on FY 15 QTRLYs so far I would expect the overall AISC to remain relatively high but I would also counter that at least it is 'known' and will not have any remaining 'shock' value so should be priced in

Back of envelope style, if RRL can achieve Gold sales of some 300K Oz at a conservative $1,450 Oz AUS$ then we are looking at approx $450M less AISC of between $315M ($1050 per Oz) to $345M ($1150 per Oz) with a profit before tax of between $135M higher end and $105M lower end

Take a tax rate of 28% based on the last two FYs and no impairments, and we are looking at $97.2M to $75.6M
or earnings of $0.194 to $0.151 per share (supports current share price and may suggest it is undervalued)

Forward looking, if RRL can lock in consistent production (this is what prevents a blowout in AISC) and look towards 320-330K Oz, then the current POG at AUS $1,557.00 bodes well for RRL

Exploration success near Garden Wall can also come into play and I saw somewhere mentioned they were looking to bring this into production FY16?