Regis Resources (RRL) H2 2024 earnings summary

Executive summary

• Revenue increased 11% year-over-year to $1,262.8 million, but a net loss after tax of $196 million was recorded, mainly due to hedge book losses and a $192 million impairment on the McPhillamys Gold Project.

• Achieved record operating cash flow of $475 million and a cash and bullion balance of $295 million at year-end.

• Gold production totaled 417,713 ounces, with 289,931 ounces from Duketon and 127,782 ounces from Tropicana.

• Delivered meaningful ESG outcomes, including increased female representation and expanded renewable energy capacity.

• The company closed out its hedge book, incurring a $97.7 million loss, and wrote off the McPhillamys project after a government declaration restricted development.

Financial highlights

• Sales revenue rose 11% to $1,262.8 million compared to the prior year, driven by higher gold prices despite lower production.

• Underlying EBITDA was $297 million, with reported EBITDA impacted by $194 million in non-cash impairments.

• Net loss after tax was $196 million, up from a $24.3 million loss last year, driven by hedge losses and McPhillamys impairment.

• Record operating cash flow of $475 million, with closing cash and bullion at $295 million.

• Net debt stood at $5 million, with a $300 million corporate loan facility maturing in June 2025.

Outlook and guidance

• FY25 gold production guidance: 350–380 koz at group AISC of $2,440–$2,740/oz, with continued stockpile drawdowns.

• Growth capital expenditure expected at $110–$125 million and exploration spend at $50–$60 million.

• Focus remains on optimizing Duketon operations, maximizing cash flows, and pursuing both organic and inorganic growth.

• The company is assessing legal options regarding the McPhillamys Section 10 declaration and will review ongoing expenditure.

• New underground projects at Garden Well Main and Rosemont Stage 3 are expected to deliver 100–120 koz annualized gold production from FY27.