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Regis Resources to forge ahead with expansion at Duketon gold project , targets 15c dividend

Regis Resources to forge ahead with expansion at Duketon gold project , targets 15c dividend

Regis Resources (ASX:RRL) is pushing ahead with plant expansion at Duketon project near Laverton, once stage 2 development is complete operating costs (before royalties) are forecast at just A$630 – 680 per ounce for the whole project.

This comes at a time when many gold producers are pulling in their horns due to the lower prevailing gold price.

The additional $20 million capital cost of the Rosemont Stage 2 development and the remaining $28.5 million to be spent on the current development will be funded out of operating cashflow.

Once Rosemont stage 2 development is complete this should result in a long term production rate for the whole Duketon Gold Project (including Moolart Well) of between 410,000 – 430,000 ounces of gold per annum.

Gold production for the June 2013 quarter was 72,134 ounces.

Regis is targeting a 15 cent per share fully franked dividend in relation to the 2013 financial year which would place the stock on a very healthy dividend yield of 4.4%.

 

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