Regis Resources has reported a robust December quarter marked by record cash generation and an extended mine life at Duketon North, underpinned by disciplined costs and promising exploration results.
- Record operating cash flow of $419 million for the quarter
- Gold production of 96.6koz at an all-in sustaining cost of $2,839/oz
- Duketon North operation extended through FY31 with Buckingham-Wellington pit addition
- Fully franked dividend of $38 million paid, resuming shareholder returns
- Exploration budget increased following strong drilling results across key sites
Operational Strength Drives Record Cash Generation
Regis Resources (ASX, RRL) has delivered a December quarter that underscores its operational resilience and financial discipline. The company produced 96,600 ounces of gold at an all-in sustaining cost (AISC) of $2,839 per ounce, translating into a record operating cash flow of $419 million. This performance was driven by steady output from its Duketon and Tropicana operations, with Duketon producing 57,600 ounces at an AISC of $3,151/oz and Tropicana contributing 39,000 ounces at a lower AISC of $2,303/oz.
Maintaining a strong safety record, Regis reported a lost time injury frequency rate well below the Western Australian gold industry average, reflecting ongoing commitment to workforce wellbeing alongside operational excellence.
Extending Mine Life and Growth Optionality
A key highlight of the quarter was the addition of the Buckingham-Wellington open pit to the Duketon North production profile. This development extends the mine life through to the end of fiscal year 2031, offering a capital-efficient pathway to sustain throughput and convert spare milling capacity into incremental cash flow. The updated mine plan anticipates delivering approximately 223,000 ounces of recovered gold over six years, with strong financial metrics including a pre-tax net present value of $268 million and an internal rate of return of 127%.
Regis’ exploration programs continue to bear fruit, with drilling at Garden Well Underground, Rosemont Stage 3, Ben Hur, Beamish South, and Tropicana confirming extensions to mineralisation and supporting a robust pipeline of organic growth opportunities. Encouraged by these results, the company has increased its FY26 exploration budget by around $20 million, now targeting $70–80 million in expenditure to accelerate resource development.
Financial Discipline and Shareholder Returns
Financially, Regis demonstrated prudent capital management by paying a fully franked dividend of 5 cents per share, totalling $38 million, marking a return to shareholder distributions after a period of reinvestment. The company ended the quarter with a strong cash and bullion position of $930 million, up $255 million despite capital expenditure of $115 million and dividend payments.
Capital investments focused on advancing underground development at Garden Well Main and Rosemont Stage 3, alongside pre-commercial mining at Kintyre and Buckingham-Wellington. Tropicana’s Havana Underground project also progressed, with development on track.
McPhillamys Project and Legal Proceedings
Regis continues to navigate regulatory challenges at its McPhillamys Gold Project, where a Federal Court judicial review is pending following a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act. Parallel technical studies exploring an integrated waste landform concept are underway, aiming to address environmental and approval hurdles. The outcome of the court decision will be pivotal for the project’s future.
Outlook and Guidance
Despite increased exploration spending, Regis maintains 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 expected between $220 million and $235 million, reflecting ongoing development activities. The company plans to release a formal capital management policy alongside its half-year results, signaling a continued focus on balancing growth investment with shareholder returns.
Bottom Line?
Regis Resources’ strong quarter and strategic growth initiatives position it well, but the pending McPhillamys court decision remains a key watchpoint.
Questions in the middle?
- How will the Federal Court ruling impact the future of the McPhillamys project and capitalisation?
- What are the implications of increased exploration expenditure on Regis’ medium-term growth profile?
- How might the forthcoming capital management policy influence shareholder returns and investment priorities?