Lending Association

Rainfall affects Regis Resources, Capricorn Metals, and Gold Road

Regis Resources (ASX:RRL), along with Capricorn Metals and Gold Road, has revealed setbacks to planned production due to last week’s record rainfall in parts of the WA Goldfields.

Capricorn Metals (ASX:CMM) reported that its Karlawinda gold project in the Pilbara experienced a second rain event in three months, forcing the mine to process lower-grade stockpiled ore.

Similarly, Gold Road (ASX:GOR) disclosed that its 50% owned Gruyere mine faced curtailed work in the open pit for a week or more, affecting production for the March quarter but maintaining guidance for the June 30 year, albeit at the lower end of the forecast range.

Regis Resources warned on Monday that its mines had also been affected by the heavy rainfall, with Duketon (100% owned) receiving approximately 110 mm of rain so far in March, along with Laverton reporting a similar amount over the same period.

“The substantial rainfall event has resulted in the temporary closure of Laverton Shire roads which provide land access to Duketon. Despite these difficulties, Duketon has to date continued to perform with limited production loss,” Regis said on Monday.

“Tropicana (30% owned with AngloGold Ashanti owning 70%) has also been impacted by heavy rains this month, including 310 mm of rain over a three-day period. While the team on site has done an excellent job managing any potential safety issues, the deluge did result in the suspension of mining operations and a disruption to power supply.

“The process plant is now treating stockpiles and underground feed while ore mining from the open pits remains restricted. The rains have closed the supply road between Kalgoorlie and Tropicana, and processing may have to be suspended if consumable stocks on site are exhausted.

“As a result of these impacts, the company’s Group March quarterly gold production is anticipated to be in the range of 90,000 to 95,000 ounces.

“With these production difficulties, Tropicana will be challenging the lower end of its annual guidance range. However, the continued strong performance at Duketon means the group FY24 production guidance remains unchanged.”

Regis stated in Monday’s announcement that group production and all-in sustaining cost guidance for FY24 remains unchanged, with gold production in the range of 415,000 to 455,000 ounces and the AISC (All in Sustaining Costs) at $1,995 to $2,315 per ounce (including approximately $200 per ounce non-cash stockpile inventory adjustment).

Additionally, Regis mentioned that the assessment of the two potential new underground capital project areas at Duketon, Rosemont Stage 3 and Garden Well Main, will be completed in the current June half-year.