Regis Resources Ltd
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RRL Details
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Rising gold prices drove the stock: Regis Resources Ltd (ASX: RRL) surged over 7.9% on June 24, 2016 on the back of rising gold prices as investors were looking for safe haven assets on as Britain chose to exit from the European Union. RRL has been on a bullish trend in the last three months and generated over 35.3% (as of June 23, 2016) driven by the gold prices during the current turmoil in the markets coupled with the group’s efforts of repaying debt and high grade results at Tooheys Well Gold Deposit. RRL has repaid over $20 million of outstanding debt under the Macquarie Bank financing facility making the group debt free apart from the trade creditors and leasing arrangements. RRL has a decent cash position (before debt repayment) of $129 million. Moreover, the group reported fresh rock intercepts with high grade, at Tooheys Well, located at 2.5 kilometers south of the Garden Well Gold Mine.
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Recommendation: The recent rally in the stock also placed them at a high P/E. We give an “Expensive” recommendation on the stock at the current price of $3.52
Tooheys Well plan with recent drill results in gold and past results in grey (Source: Company Reports)
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