How Is Regis Resources Turning Gold Into Record Profits Amid Legal Hurdles?
Regis Resources Limited delivered a strong FY25 with record revenue and net profit, becoming debt-free and declaring a dividend, while advancing its underground growth strategy. However, its McPhillamys Gold Project faces a significant legal hurdle following a heritage protection declaration.
- Record FY25 revenue of A$1.65 billion and net profit of A$254 million
- Produced 373,000 ounces of gold at AISC of A$2,531/oz within guidance
- Debt fully repaid early; declared fully franked final dividend of 5 cents per share
- Underground growth strategy progressed with 345km of exploration drilling
- McPhillamys project rendered unviable by Section 10 heritage declaration; legal proceedings ongoing
Strong Financial Turnaround and Operational Performance
Regis Resources Limited (ASX – RRL) has reported a remarkable turnaround in its financial performance for the year ended 30 June 2025. The company posted record revenue of A$1.65 billion, a 30% increase on the prior year, and a net profit after tax of A$254 million, reversing a loss of A$186 million in FY24. This improvement was driven by higher realised gold prices, averaging A$4,387 per ounce, and disciplined operational execution.
Gold production for the year was 373,000 ounces, slightly down from FY24 but within the company’s guidance range, with an all-in sustaining cost (AISC) of A$2,531 per ounce. Regis’ operations at Duketon and Tropicana delivered solid output, with the company benefiting from unhedged exposure to record spot gold prices. The company also generated record operating cash flows of A$821 million, underscoring the robust cash-generating capacity of its assets.
Debt-Free Status and Dividend Declaration
In a strategic financial move, Regis fully repaid its A$300 million debt facility well ahead of schedule in January 2025, becoming debt-free for the first time since production began 15 years ago. To maintain financial flexibility, the company established a new A$300 million revolving credit facility, which remained undrawn at year-end.
Reflecting confidence in its financial position and future prospects, the Board declared a fully franked final dividend of 5 cents per share, payable on 6 October 2025. This dividend marks a return to shareholder distributions after a hiatus and brings total dividends declared since 2013 to nearly A$585 million.
Advancing Underground Growth and Exploration
Regis continued to execute its underground growth strategy across its key assets. At Duketon, the company is targeting the operation of at least four underground mines, aiming for annual production of 200,000 to 250,000 ounces. Significant progress was made on the Garden Well Main and Rosemont Stage 3 underground projects, both expected to commence production in FY26.
Exploration drilling was extensive, with 345 kilometres completed across Duketon and Tropicana. Notably, an underground exploration target of 300,000 to 550,000 ounces was established at Ben Hur, enhancing the company’s confidence in extending underground mineralisation. Tropicana also saw growth in underground ore reserves, supporting the development of the Havana underground mine.
McPhillamys Project Faces Legal and Regulatory Challenges
The McPhillamys Gold Project in New South Wales, wholly owned by Regis, encountered a major setback during the year. A Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act was made over part of the approved project area, primarily affecting the planned tailings storage facility. This declaration effectively rendered the project unviable in its current form, overriding previous environmental approvals.
Regis has responded by withdrawing the project’s definitive feasibility study outcomes and the associated 1.89 million ounces of ore reserves. The company has initiated legal proceedings in the Federal Court challenging the validity of the Section 10 declaration and is exploring alternative project configurations, though no viable alternatives have yet been identified.
Sustainability and ESG Commitments
Regis has made notable strides in environmental, social, and governance (ESG) areas. The company commissioned one of Australia’s largest hybrid renewable energy projects at Tropicana, integrating wind, solar, and battery storage to reduce carbon emissions by over 65,000 tonnes annually. Overall, Regis reduced its Scope 1 and 2 emissions by 7.6% in FY25.
Safety remains a core priority, with a Lost Time Injury Frequency Rate (LTIFR) of 0.4, well below the Western Australian gold industry average. The company also increased female workforce representation to 23% and invested over A$626,000 in community initiatives, reinforcing its commitment to social license and local partnerships.
Governance and Remuneration
The Board maintained strong governance practices with 33% female representation and full compliance with ASX Corporate Governance Principles. Executive remuneration remains closely aligned with performance, with 88.9% of long-term incentive performance rights vesting following strong share price performance and operational achievements.
Regis’ leadership team, including CEO Jim Beyer and COO Michael Holmes, continues to focus on delivering sustainable growth, operational excellence, and shareholder value.
Bottom Line?
Regis Resources’ robust financial health and strategic underground expansion position it well, but the McPhillamys legal challenge looms as a key uncertainty.
Questions in the middle?
- What is the likely timeline and outcome of the Federal Court proceedings on the McPhillamys Section 10 declaration?
- How will Regis balance capital allocation between underground growth projects and potential alternative developments at McPhillamys?
- What impact will ongoing ESG initiatives and renewable energy investments have on future operating costs and production sustainability?
