Regis Resources Limited delivered a standout FY25 with record revenue and profit, driven by unhedged gold sales and underground growth, while confronting a significant legal challenge over its McPhillamys Gold Project.
- Record FY25 revenue of A$1.647 billion and net profit of A$254 million
- Gold production of 373koz with strong underground growth at Duketon and Tropicana
- Debt-free status after early repayment of A$300 million facility
- Final fully franked dividend of 5 cents per share declared
- McPhillamys project rendered unviable by Section 10 Aboriginal heritage declaration, legal proceedings underway
Financial Performance and Operational Highlights
Regis Resources Limited (ASX, RRL) has reported a robust financial year ended 30 June 2025, posting record revenue of A$1.647 billion and a net profit after tax of A$254 million. This turnaround from a net loss in FY24 was largely driven by the company’s strategic decision to remain unhedged, allowing it to capitalise on soaring spot gold prices throughout the year. EBITDA surged 163% to A$780 million, underscoring the strong cash-generating capacity of its assets.
Gold production reached 373,000 ounces, slightly down from the previous year but comfortably within guidance. The company’s focus on underground mining growth bore fruit, with increased ore reserves and development activity at both the Duketon and Tropicana operations. Notably, Regis declared a fully franked final dividend of 5 cents per share, marking a return of value to shareholders after a period of reinvestment and debt repayment.
Underground Growth and Exploration Progress
Regis continues to execute its underground growth strategy, targeting at least four underground mines at Duketon with a production goal of 200,000 to 250,000 ounces annually. The company invested A$123 million in growth capital during FY25, including development of Garden Well Main and Rosemont Stage 3, both slated to commence production in FY26. Exploration drilling totaled 345 kilometers, expanding mineralisation at key prospects such as Ben Hur, where an underground exploration target of 300,000 to 550,000 ounces was established.
At Tropicana, Regis’ 30% joint venture interest saw production rise to 140,000 ounces at an all-in sustaining cost of A$2,039 per ounce. The development of the Havana underground mine is progressing on schedule, with first stope production expected in the second half of FY27. The company’s exploration efforts continue to underpin a strong pipeline of underground growth opportunities across its portfolio.
Sustainability and ESG Initiatives
Regis has integrated sustainability deeply into its operations, commissioning a 61MW renewable energy project at Tropicana, one of the largest hybrid power systems in Australia’s mining sector. This initiative is expected to reduce carbon emissions by over 65,000 tonnes annually and power up to 50,000 homes. The company also achieved a 7.6% reduction in Scope 1 and 2 emissions and rehabilitated 201 hectares of disturbed land during the year. Safety remains a core priority, with a Lost Time Injury Frequency Rate (LTIFR) of 0.4, well below the Western Australian gold industry average.
McPhillamys Project Legal Challenge
Despite these successes, Regis faces a significant regulatory and operational setback at its 100%-owned McPhillamys Gold Project in New South Wales. In August 2024, the Federal Minister for Environment and Water issued a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984, placing protection over a critical portion of the approved project site. This declaration effectively overruled prior approvals and rendered the project unviable in its current form, particularly impacting the planned Tailings Storage Facility.
Regis has responded by withdrawing the McPhillamys Definitive Feasibility Study outcomes and the associated 1.89 million ounces of Ore Reserves. The company has initiated formal legal proceedings in the Federal Court seeking to have the declaration overturned. While alternative project configurations are being explored, there is no certainty of a viable solution or timeline for resolution. This legal challenge represents a material uncertainty for the company’s growth pipeline.
Governance and Future Outlook
Regis maintains strong governance and risk management frameworks, with a Board comprising experienced directors and a focus on ESG integration. The company is debt-free following early repayment of its A$300 million facility and has established a $300 million revolving credit facility to maintain financial flexibility. Looking ahead, Regis plans to continue optimising its existing operations, advancing underground growth projects, and pursuing both organic and inorganic growth opportunities, while managing the risks posed by climate change and regulatory developments.
Bottom Line?
Regis Resources’ record financial year sets a strong foundation, but the McPhillamys legal challenge casts a shadow over near-term growth prospects.
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 could evolving climate regulations and energy costs have on Regis’ operational costs and sustainability targets?