Regis Resources Offers Cheapest Profit Growth

No gold miner in the world is offering acquirers faster growth at a cheaper price than Australia’s Regis Resources Ltd. With open-pit mines near the earth’s surface, the Perth-based producer has an operating margin of 45 percent, the second best among Asian competitors with market values higher than $1 billion, according to data compiled by Bloomberg.

Analysts are estimating an almost fourfold increase in net income by 2014, meaning Regis would give a buyer more long-term earnings growth for less money than 36 other precious-metals mining peers globally, the data show.

While Regis’s 34 percent stock jump this year has swelled its market capitalization to A$2.1 billion ($2.2 billion), the miner’s growth prospects and lower-cost operations will appeal to acquirers, according to Bank of America Corp. Regis plans to start production at a second pit this quarter that will help quadruple gold output in two years, progress that may elicit a takeover bid from its biggest shareholder Newmont Mining Corp. or Toronto-based Barrick Gold Corp., said RBS Morgans Ltd.

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