Regis Resources Raises FY27 Gold Production Guidance to 400koz
Regis Resources has boosted its FY27 gold production guidance to 360-400koz, driven by higher output at Duketon and sustained growth capital investment.
- Group production guidance lifted to 360-400koz
- Duketon output expected to rise with Rosemont Stage 3 ramp-up
- Tropicana production slightly down due to Havana pit changes
- Growth capital spend increased to $250-270 million
- McPhillamys project investment targets 2028 final decision
Stronger Duketon Production Drives FY27 Guidance Upgrade
Regis Resources Limited (ASX:RRL) has revised its FY27 production guidance upward, projecting group gold output of 360,000 to 400,000 ounces. This improvement is primarily powered by increased production at its Duketon operations, where output is expected to exceed FY26 levels thanks to expanded throughput at the Garden Well and Rosemont mills.
The company is capitalising on the favourable gold price environment by utilising excess mill capacity at Moolart Well to process lower-margin but profitable ounces from BuckWell, supplementing higher-margin production streams. This strategy is anticipated to enhance overall free cash flow despite a higher all-in sustaining cost (AISC) range of $3,100 to $3,550 per ounce at Duketon, partly reflecting increased diesel prices and the inclusion of these opportunistic ounces.
Tropicana Output Faces Slight Decline Amid Ore Grade Shift
In contrast, Tropicana's FY27 production guidance is set at 120,000 to 130,000 ounces, a modest decrease from the prior year. The reduction is attributed to lower open pit ore extraction at Havana, leading to a greater reliance on lower-grade stockpile mill feed. This shift is expected to impact the AISC at Tropicana, forecast between $2,630 and $2,950 per ounce.
Elevated Capital and Exploration Spend Support Growth Pipeline
Regis plans to spend $250 million to $270 million on growth capital, with the bulk allocated to Duketon. Key projects include the Rosemont Stage 3 underground development, anticipated to commence commercial production late in FY27, and the pre-strip of new open pits ramping up in the second half of the year. Tropicana's growth capital is also increasing slightly, reflecting ongoing Havana underground pre-production development.
Exploration expenditure is set to rise to $80 million to $90 million, signalling the company’s confidence in its portfolio’s potential. Meanwhile, the McPhillamys project budget is pegged at $30 million to $35 million for FY27, aligning with plans to reach a Final Investment Decision in the first half of calendar 2028.
Cash and Bullion Balance Adjusted Following Reconciliation
Regis disclosed a correction to its 30 June 2026 cash and bullion balance, lowering it by $26 million to $1.184 billion due to a timing error in reporting 4,391 ounces of gold bullion. Importantly, this adjustment does not affect reported FY26 production or overall cash balances.
The company’s diesel price assumption for Duketon remains at $1.35 per litre, with sensitivity analyses indicating approximately a $25 per ounce AISC impact for every 10 cent per litre diesel price movement. This factor will be critical to monitor given recent fuel price volatility.
Bottom Line?
Regis is leveraging strong gold prices and operational flexibility at Duketon to lift production and invest heavily in growth, setting the stage for a potentially stronger FY27 cash flow profile.
Questions in the middle?
- How will fluctuating diesel prices influence Regis’s cost structure through FY27?
- What milestones will govern the timeline for Rosemont Stage 3 and Havana underground projects reaching commercial production?
- Will the McPhillamys project secure necessary approvals to meet its targeted Final Investment Decision in early 2028?
