RRL – Morgans rates the stock as Downgrade to Hold from Add

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Regis Resources reported strong production to finish the financial year and achieve gold production at the midpoint of the company’s annual guidance, according to Morgans.

The company is progressing approvals for the world class McPhillamy’s Project, which the broker believes to be a game changer, with the potential to shift the company from a mid-tier to a major producer.

Morgans sees potential for significant resource growth announcements from the company over the coming 12 months.

The broker’s forecast model shows the company has strong leverage to the gold price through its flexible hedging delivery schedule.

The rating is decreased from Add to Hold. The target price is increased to $5.82 from $5.25.

Sector: Materials.

Target price is $5.82.Current Price is $5.79. Difference: $0.03 – (brackets indicate current price is over target). If RRL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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