Regis Resources CEO Discusses Q1 FY2025 Performance

CEO Jim Beyer of Regis Resources (OTC:RGRNF) (ASX:RRL) talked about the company's performance for the first quarter of the fiscal year 2025, showing strong results punctuated by significant challenges.

Despite robust production at the Duketon and Tropicana sites, the McPhillamys project faced challenges due to a heritage protection declaration. This resulted in a $192 million impairment and a reduction in gold reserves. However, Regis reported an increase in cash and bullion holdings, showcasing a strong financial outlook and a focus on strategic capital management.

Key Takeaways

• Regis Resources reported a lost time injury frequency rate (LTIFR) of 0.4.
• The McPhillamys project was declared unfeasible, leading to a substantial impairment of $192 million.
• The company produced 94,500 ounces of gold at an all-in sustaining cost of $2,495 per ounce.
• Cash and bullion holdings increased to $380 million, maintaining a net cash-positive position against $300 million in debt.
• Exploring next steps for McPhillamys while focusing on growth at Duketon and Tropicana.
• Capital expenditures totaled $50 million, with $13 million spent on exploration.
• Plans are in place to enhance growth strategy.

Company Outlook

• Aims for Duketon production between 200,000 to 250,000 ounces until FY2028.
• Expecting 55,000 ounces from the Havana Underground project at Tropicana in two years.
• Considering dividends, share buybacks, and debt repayment as part of capital management strategies.

Highlights

• Bearish: Heritage protection laws compromised McPhillamys; increased capital costs led to higher depreciation rates.
• Bullish: Record gold prices contributed to financial performance, and cash + bullion holdings have doubled in six months.

Misses

• Impairment at McPhillamys and reduced reserves were significant setbacks.

Regis Resources has a solid cash position and is optimistic about its future, navigating challenges while exploring growth through strategic capital management and ongoing project developments.