Regis's McPhillamys Project Could Be Uneconomic to Build -- Market Talk

Dow Jones04-03

0055 GMT - A substantial rise in forecast capex for Regis Resources' McPhillamys gold project could make it uneconomic, says RBC Capital Markets. Regis announced an updated definitive feasibility study that estimates capex of A$960 million-A$1.06 billion to bring the mine into production. That was far higher than RBC's expectation of A$580 million, and the top end of consensus forecasts at A$650 million. Life-of-mine all-in sustaining costs of A$1,600-A$1,800/oz also topped RBC's forecast of A$1,550/oz. "Regis is not obliged to construct McPhillamys, with sustained production likely from other assets: Duketon and Tropicana," says analyst Alex Barkley. "While the McPhillamys project may be deferred at its mid-year final investment decision, it would still offer considerable leverage to a high and rising spot price." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

April 02, 2024 20:55 ET (00:55 GMT)

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Regis announced an updated definitive feasibility ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7104","symbol_name":"黄金","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2424288174","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2424288174","pubTimestamp":1712105700,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0055 GMT - A substantial rise in forecast capex for Regis Resources' McPhillamys gold project could make it uneconomic, says RBC Capital Markets. 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Life-of-mine all-in sustaining costs of A$1,600-A$1,800/oz also topped RBC's forecast of A$1,550/oz. \"Regis is not obliged to construct McPhillamys, with sustained production likely from other assets: Duketon and Tropicana,\" says analyst Alex Barkley. \"While the McPhillamys project may be deferred at its mid-year final investment decision, it would still offer considerable leverage to a high and rising spot price.\" ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7104":"黄金","RRL.AU":"REGIS RESOURCES LTD","BGSX":"Build Acquisition Corp","RGS":"Regis Corp","BK4192":"特殊消费者服务"},"translate_title":"Regis的McPhillamys项目建设可能不经济——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BGSX":1,"RGS":1,"RRL.AU":0.9},"content_text":"0055 GMT - A substantial rise in forecast capex for Regis Resources' McPhillamys gold project could make it uneconomic, says RBC Capital Markets. 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