Update shared on 07 Nov 2025
Analysts have increased their price target for Regis Resources, with estimates rising from A$5.00 to as high as A$6.50. They cite stronger gold prices and robust unhedged free cash flow generation, which more than compensate for higher operational costs.
Analyst Commentary
Recent street research has reflected a shift in sentiment towards Regis Resources, as analysts reassess the company's prospects alongside evolving market dynamics.
Bullish Takeaways- Bullish analysts are citing the upward momentum in gold prices as a significant factor driving higher valuations for Regis Resources.
- Robust unhedged free cash flow generation is noted as an important support for the company’s financial stability and growth outlook.
- The substantial increase in price targets, with notable upgrades from major brokerages, signals growing confidence in Regis Resources' ability to navigate operational challenges.
- Improved market conditions for Australian gold miners as a sector are viewed as contributing to Regis Resources’ enhanced growth prospects and investment appeal.
- Some analysts remain cautious about rising operational and production costs, which could pressure future margins and affect execution risk.
- There is ongoing scrutiny regarding the company’s ability to maintain its cash flow trajectory if gold prices were to reverse or plateau.
- Valuation concerns persist for more cautious analysts, as recent substantial price target hikes may already factor in a large part of the expected upside.
What's in the News
- Reported quarterly group production of 90.4 thousand ounces for the quarter ended 30 September 2025 (Announcement of Operating Results).
- Issued production guidance for fiscal 2026, expecting output between 350 thousand and 380 thousand ounces, in line with the previous fiscal year. The company is focusing on maximizing mill capacity to boost near-term value and cash generation (Corporate Guidance, New/Confirmed).
- Announced a fully franked final dividend of 5 cents per share, amounting to $38 million, reflecting improved economic performance. The ex-dividend date is 10 September 2025 (Dividend Increases).
- Reported total gold production of 372,844 ounces for the full year ended 30 June 2025, compared to 417,713 ounces in the prior year (Announcement of Operating Results).
Valuation Changes
- Fair Value estimate remains unchanged at A$6.29, reflecting stability in intrinsic value assessments.
- The discount rate has increased modestly to 7.64% from 7.17%, suggesting a slightly higher perceived risk or cost of capital.
- Revenue growth projections are essentially unchanged, maintaining expectations at approximately 5.70%.
- Net profit margin is stable, with a negligible decrease from 31.19% to 31.18%.
- The future P/E ratio has edged up slightly to 9.76x from 9.64x, indicating a marginally higher valuation relative to future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.