Regis Resources Raises Growth Capital as Production and Reserves Climb
Regis Resources sustained strong gold output in Q3 2026 with 90.6koz produced at an AISC of $2,807/oz, while raising growth capital guidance amid rising diesel costs and advancing underground projects. The company declared a 15cps interim dividend, supported by a robust $1.13 billion cash and bullion position.
- Q3 gold production steady at 90.6koz with AISC of $2,807/oz
- Growth capital guidance increased to $240-$255 million due to accelerated Buckwell mining and diesel price hikes
- Mineral Resources and Ore Reserves expanded significantly year-on-year
- Interim dividend of 15cps ($114 million) paid post-quarter
- Legal proceedings on McPhillamys project ongoing
Steady Production and Rising Costs Shape Q3 Results
Regis Resources (ASX:RRL) delivered a solid operational quarter to 31 March 2026, producing 90,600 ounces of gold at an all-in sustaining cost (AISC) of $2,807 per ounce. The output was split between Duketon’s 57,500 ounces at a higher AISC of $3,139/oz and Tropicana’s 33,100 ounces at a leaner $2,140/oz. Despite a recent surge in diesel prices, which the company flagged as a key cost pressure, Regis maintained cost discipline and expects to remain within its full-year guidance if fuel prices stabilise.
Gold sales of 89,100 ounces generated revenue of $622 million at an average realised price of $6,977/oz. Operating cash flow for the quarter reached $422 million, with Duketon contributing $263 million and Tropicana $159 million. After tax payments of $92 million and capital expenditure of $123 million, Regis still managed to grow its cash and bullion reserves by $198 million to $1.13 billion, underscoring its strong financial position.
Growth Capital Rises on Buckwell Acceleration and Diesel Costs
The company raised its FY26 growth capital guidance to between $240 million and $255 million, up from the previous $220-$235 million range. This increase is primarily driven by the decision to accelerate mining at the Buckwell open pit, bringing forward activities originally planned for FY27 to derisk production. Additional factors include the impact of higher diesel prices and minor increases across other projects.
Growth capital spending in the quarter included $64 million at Duketon focused on underground developments at Garden Well Main and Rosemont Stage 3, as well as pre-production ramp-up at Buckwell. Tropicana’s growth capital was modest at $3 million, mainly supporting Havana Underground development.
Resource and Reserve Base Expands, Extending Mine Life
Regis continues to build its mineral inventory, with the latest Group Mineral Resources rising 10% year-on-year to 209 million tonnes at 1.2g/t for 8.28 million ounces of gold. Ore Reserves increased approximately 20% to 49 million tonnes at 1.2g/t, containing 1.965 million ounces. This growth outpaces depletion, supporting sustained production.
At Duketon, underground Ore Reserves grew by 273,000 ounces to 714,000 ounces, replacing 235% of mined ounces in 2025. Tropicana’s underground Ore Reserves also climbed by 210,000 ounces after depletion, maintaining a strong replacement trend. This ongoing reserve replenishment, highlighted in a recent update, reinforces confidence in the longevity of both operations and the company’s underground growth pipeline, including the recently commercial Garden Well Main underground mine. These developments align with the company’s track record of consistently expanding underground reserves, as seen in the Regis Resources Extends Mine Life with 120% Reserve Growth at Garden Well Underground.
Dividend and Capital Management Reflect Financial Strength
Regis’s robust cash position enabled it to declare and pay a fully franked interim dividend of 15 cents per share, amounting to $114 million. This payment continues a long-standing dividend tradition, with nearly $700 million returned to shareholders since 2013. The recently announced capital management policy formalises the company’s approach to balancing capital returns with reinvestment and maintaining a strong balance sheet.
McPhillamys Legal Proceedings and Project Outlook
On the legal front, Regis is pursuing a judicial review of a federal environmental protection declaration affecting its McPhillamys Gold Project in New South Wales. The Federal Court hearing concluded in December 2025, with judgment pending. Meanwhile, the company is advancing an alternative Integrated Waste Landform design to potentially restore project approvability. McPhillamys expenditure in the quarter was $7 million, within the guidance range of $10-$20 million for FY26.
Looking ahead, Regis maintains its FY26 production guidance of 350,000 to 380,000 ounces and AISC guidance of $2,610 to $2,990 per ounce, though the upper end of the cost range is now more likely if diesel prices remain elevated. Exploration spend is forecast at $70-$80 million, supporting continued resource growth and operational life extension.
Bottom Line?
Regis’s blend of steady production, reserve growth, and disciplined capital deployment positions it well, but rising diesel costs and McPhillamys legal uncertainties warrant close attention.
Questions in the middle?
- How will sustained high diesel prices affect Regis’s full-year cost and growth capital outlook?
- What is the potential timeline and impact of the Federal Court’s judgment on the McPhillamys project?
- Can the accelerated mining at Buckwell sustainably offset production risks in FY27?
