Regis Resources Limited (RRL) - LONG
Regis Resources, together with its subsidiaries, engage in the exploration, evaluation, and development of gold projects in Australia. The company owns 100% interests in the Duketon project located in the North Eastern Goldfields of Western Australia; and the McPhillamys project situated in the Central Western region of New South Wales. Regis Resources Limited was incorporated in 1986 and is headquartered in Perth, Australia.
Technicals:
This is a med/long term hold for me with a phenomenal RRR. On my previous analysis I mentioned that from the extension of the descending triangle, a further move down to the $3.15-$3.35 mark was imminent (which is coincidentally where the long term trendline support, and major all time fib support of 78.6% exist). A long entry around this area would present extremely good risk/reward. Conservative traders could look for a dow entry off the bounce.
Fundamentals:
RRL is significantly undervalued. It has a PE ratio of 9.5 compared to the Metals and Mining industry average of 12.6. Furthermore, it’s PE ratio (9.5) compared to the Australian market (22.6) makes it even better value.
RRL also has very high quality earnings (see attached spreadsheet) and has historically grown by 15% annually (this year actually at @ 22.2%).
It’s net profit margins have consistently increased as well. It doesn’t take a rocket scientist to look at the escalation of the revenue and profit over the past 5 years to tell that this is a company that is very well structured and financially stable; 5 years ago it’s debt to equity ratio was 4.9% and now it is debt free and also has a 23.9% return on equity.
It’s seen some noticeable purchasing from directors and major shareholders since November, which is also a positive sign.
Although the average management tenure is 1.4 years, Mr. Jim Beyer, has been the CEO and Managing Director at Regis Resources Limited since October 15, 2018. Previously he was the CEO of Mount Gibson Iron Limited from December 2011 to May 14, 2012 and its Chief Operating Officer from November 2011 until May 14, 2012. In addition he has also held general management roles with Newmont Mining Corporation where he was responsible for the development and implementation of Business Improvement initiatives and Technical Services support across the Asia Pacific region. He served as Operations General Manager for Boddington Gold Mine from 2007 to 2010, where he was responsible for start-up preparations, commissioning and production ramp up. He was General Manager of the Pajingo Gold Mine from 2004 to 2006. He has a broad range of operating and start up experience encompassing 25 years across a number of commodities. In the past ten years he has held general management, operational and planning roles with WMC Resources at its Olympic Dam operation. Mr. Beyer holds a Bachelor of Engineering (Mining) degree, a Masters of Geoscience (Mineral Economics) and is a Vice President of the Executive Council of the Association of Mining & Exploration Companies (AMEC).
Never take stock tips. Educate yourself and always DYOR whilst implementing a rigid risk management plan before investing your own money.
Regis Resources, together with its subsidiaries, engage in the exploration, evaluation, and development of gold projects in Australia. The company owns 100% interests in the Duketon project located in the North Eastern Goldfields of Western Australia; and the McPhillamys project situated in the Central Western region of New South Wales. Regis Resources Limited was incorporated in 1986 and is headquartered in Perth, Australia.
Technicals:
This is a med/long term hold for me with a phenomenal RRR. On my previous analysis I mentioned that from the extension of the descending triangle, a further move down to the $3.15-$3.35 mark was imminent (which is coincidentally where the long term trendline support, and major all time fib support of 78.6% exist). A long entry around this area would present extremely good risk/reward. Conservative traders could look for a dow entry off the bounce.
Fundamentals:
RRL is significantly undervalued. It has a PE ratio of 9.5 compared to the Metals and Mining industry average of 12.6. Furthermore, it’s PE ratio (9.5) compared to the Australian market (22.6) makes it even better value.
RRL also has very high quality earnings (see attached spreadsheet) and has historically grown by 15% annually (this year actually at @ 22.2%).
It’s net profit margins have consistently increased as well. It doesn’t take a rocket scientist to look at the escalation of the revenue and profit over the past 5 years to tell that this is a company that is very well structured and financially stable; 5 years ago it’s debt to equity ratio was 4.9% and now it is debt free and also has a 23.9% return on equity.
It’s seen some noticeable purchasing from directors and major shareholders since November, which is also a positive sign.
Although the average management tenure is 1.4 years, Mr. Jim Beyer, has been the CEO and Managing Director at Regis Resources Limited since October 15, 2018. Previously he was the CEO of Mount Gibson Iron Limited from December 2011 to May 14, 2012 and its Chief Operating Officer from November 2011 until May 14, 2012. In addition he has also held general management roles with Newmont Mining Corporation where he was responsible for the development and implementation of Business Improvement initiatives and Technical Services support across the Asia Pacific region. He served as Operations General Manager for Boddington Gold Mine from 2007 to 2010, where he was responsible for start-up preparations, commissioning and production ramp up. He was General Manager of the Pajingo Gold Mine from 2004 to 2006. He has a broad range of operating and start up experience encompassing 25 years across a number of commodities. In the past ten years he has held general management, operational and planning roles with WMC Resources at its Olympic Dam operation. Mr. Beyer holds a Bachelor of Engineering (Mining) degree, a Masters of Geoscience (Mineral Economics) and is a Vice President of the Executive Council of the Association of Mining & Exploration Companies (AMEC).
Never take stock tips. Educate yourself and always DYOR whilst implementing a rigid risk management plan before investing your own money.