Canaccord has downgraded Regis Resources Ltd. to Hold from Buy, citing valuation concerns, while lifting its price target to A$8.00 from A$6.70.
The brokerage justified the move by noting Regis is trading at a price-to-net asset value multiple of 1.05 times, indicating limited upside at current levels. Canaccord maintained its production guidance for fiscal 2027 at 360,000 to 400,000 ounces, with an estimated 380,000 ounces. All-in sustaining costs are guided between A$2,990 and A$3,390 per ounce, with Canaccord’s estimate at A$3,173 per ounce.
Capital expenditure guidance remains unchanged, with growth capex projected at A$250 million to A$270 million, weighted toward the first half of the fiscal year. Exploration spend is maintained at A$80 million to A$90 million, while expenditure on the McPhillamys project is guided at A$30 million to A$35 million. Production is expected to be concentrated in the second half of the fiscal year.
Canaccord raised its forecast for a catch-up tax payment in the December 2026 quarter to A$230 million from A$175 million. The brokerage also trimmed its underlying free cash flow forecast for fiscal 2027 to A$156 million, down from A$212 million, representing a 2% yield. The McPhillamys project’s reserve-based valuation was updated to A$500 per ounce using industry benchmarks.
Regis reported a statutory net profit after tax of A$715 million in fiscal 2026, a 180% increase year-over-year, alongside operating cash inflows of A$1.25 billion. Gold production reached 379,050 ounces, at the upper end of guidance. The company closed the fiscal year with A$1.185 billion in net cash and bullion, after distributing over A$300 million in dividends and tax payments.
