Regis Resources Builds $158M Cash Pile as Underground Mines Start Production

Consistent Operational Performance

Regis Resources Limited (ASX – RRL) has delivered another quarter of steady operational results, producing 90,400 ounces of gold at an all-in sustaining cost (AISC) of $2,861 per ounce. This figure includes a non-cash charge related to stockpile inventory movements, which slightly distorts direct cost comparisons but reflects prudent accounting practices. The company’s two main assets, Duketon and Tropicana, performed in line with expectations, underpinning a robust cash flow generation of $290 million for the quarter.

At Duketon, gold production reached 58,400 ounces at an AISC of $2,832/oz, while Tropicana contributed 31,900 ounces at $2,821/oz. Both operations maintained stable production grades and recovery rates, with underground development accelerating, particularly at Garden Well Main and Rosemont Stage 3.

Growth Projects Begin to Deliver

Significantly, Regis has achieved first ore production from stopes at its Garden Well Main and Rosemont Stage 3 underground mines, marking important milestones in its growth pipeline. These projects are expected to contribute meaningfully to production volumes in the second half of FY26, supporting the company’s guidance of 350,000 to 380,000 ounces for the full year.

Exploration drilling continues to highlight potential extensions and new targets, notably at the Ben Hur underground area within Duketon. The company plans to provide further exploration updates in early December, which investors will watch closely for signs of resource expansion.

Strong Financial Position and Capital Discipline

Regis’ financial health remains robust, with cash and bullion balances swelling by $158 million to $675 million by the end of September. This build reflects disciplined capital management and strong operating cash flows. Capital expenditure for the quarter was $114 million, including $20 million dedicated to exploration and $5 million on the McPhillamys project.

Gold sales totaled 82,800 ounces, generating $447 million in revenue at an average realized price of $5,405 per ounce. The company continues to balance investment in growth with maintaining a strong balance sheet, a strategy that CEO Jim Beyer emphasised as key to delivering shareholder value.

McPhillamys Project and Legal Developments

Exploration at McPhillamys is progressing with a drilling program aimed at testing mineralisation trends and potential pit extensions. However, the project remains subject to a legal challenge concerning the Section 10 Declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act. The Federal Court hearing is scheduled for early December 2025, a critical event that could influence the project’s future.

In parallel, Regis is investigating an Integrated Waste Landform solution involving dry-stacked tailings to enhance environmental management and project feasibility. While technically promising, further studies are required to confirm design and timelines.

Outlook and Guidance

Regis has maintained its FY26 production guidance of 350,000 to 380,000 ounces at an AISC range of $2,610 to $2,990 per ounce. Growth capital expenditure is forecast between $180 million and $195 million, reflecting ongoing development at key underground and open pit projects. Exploration spend is expected to be $50 million to $60 million, with an additional $10 million to $20 million allocated to McPhillamys activities.

The company’s focus on operational consistency, capital discipline, and strategic growth projects positions it well to meet its targets, though the outcome of the McPhillamys legal challenge remains a key variable.