Shares of Regis Resources Ltd (ASX:RRL) surged 5.06% during intraday trading on Friday, driven by positive developments regarding its pending merger and a robust operational forecast.
The gold miner's stock movement follows analyst commentary indicating that its proposed merger with Vault Minerals (ASX:VAU) is progressing well and is likely to complete. The investment firm Euroz Hartleys noted that Vault Minerals shareholders are expected to vote on the scheme in August or September, with the company unanimously recommending the proposal.
Further supporting the positive sentiment, Regis Resources has closed out its remaining gold hedge position, thereby increasing its direct exposure to potential upside from elevated gold prices. The company is also expected to report strong June quarter production of approximately 89,000 ounces at an all-in sustaining cost of AU$2,937 per ounce, which could generate earnings of about AU$146 million.