At time of writing, the share price of Regis Resources Ltd [ASX:RRL] is up 1.17%, trading at $4.76 apiece.
With a peak in July, the RRL share price (red line) has not performed as well as its peer Saracen Mineral Holdings Ltd [ASX:SAR] (orange line), which in contrast is up nearly 50% over the last 12 months:
We look at Regis Resources’ latest quarterly and the latest uptick in the gold price for clues as to how the Regis Resources share price might perform in the coming months.
Investor sentiment on Regis Resources may be based more on gold price than quarterly
Here are the highlights from the Regis Resources quarterly:
- Production of 87,633 oz, down from 90,966 in June
- AISC of $1,234/oz up from June AISC of $1,189
- Cash flow down to $82.5 million from $85.2 million
- NPAT of $163.1 million
- Cash and bullion of $147.4 million at end of quarter
Given these numbers, Managing Director Jim Beyer described the quarter as ‘solid and reliable’.
Not truly inspiring.
It is thus more likely that the recent uptick in the Regis Resources share price is down to a move in the gold price that took place around midnight yesterday, as you can see below:
Gold price could also be impacted by events in Hong Kong
This move can be traced back to US manufacturing PMI data.
The headline read was positive, but a stalling in new order growth pointed to GDP growth in the US of just under 1.5%.
It seems the trade war is taking a toll.
Recent events in Hong Kong now look as if this could be the primary flashpoint in a potential trade deal.
If China pushes the envelope, Trump may call the deal off and markets may react negatively.
As such, the gold price is delicately poised as major geopolitical events threaten to boil over.
For The Rum Rebellion