What is Regis Resources Financial Strength?
Regis Resources has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Regis Resources Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
Regis Resources did not have earnings to cover the interest expense.
Regis Resources's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.34.
As of today, Regis Resources's Altman Z-Score is 1.81.
Competitive Comparison of Regis Resources's Financial Strength
For the Gold subindustry, Regis Resources's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Regis Resources's Financial Strength Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Regis Resources's Financial Strength distribution charts can be found below:
* The bar in red indicates where Regis Resources's Financial Strength falls into.
Regis Resources Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Regis Resources's Interest Expense for the
months ended in Dec. 2023 was A$-111 Mil. Its Operating Income for the
months ended in Dec. 2023 was A$-21 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$356 Mil.
Regis Resources's Interest Coverage for the quarter that ended in Dec. 2023 is
| Regis Resources did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Regis Resources's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Regis Resources has a Z-score of 1.81, indicating it is in Grey Zones. This implies that Regis Resources is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.81 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Regis Resources (ASX:RRL) Business Description
Traded in Other Exchanges
Address
516 Hay Street, Level 2, Subiaco, Perth, WA, AUS, 6008
Regis Resources Ltd is one of Australia's largest gold companies, producing around 437,309 ounces of gold per year. Cash costs are below the industry average. Operating mines are located in Western Australia, which brings relatively low sovereign risk. Management has a sound operating track record and an appropriate bias towards strong balance sheets and dividends; however, the gold price and new investments will be the primary arbiters of long-term returns. Development of the McPhillamys deposit in New South Wales, if approved, should add approximately two hundred thousand ounces of gold production a year in the medium term. The Company has three reportable segments which comprise the Duketon North Operations, and Duketon South Operations, Tropicana Gold Project.
Regis Resources (ASX:RRL) Headlines
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