Regis Resources capped FY26 with production at the top end of guidance and a record cash position, setting the stage for higher output in FY27 alongside a reinstated 1.89Moz Ore Reserve at McPhillamys.
- FY26 gold production hits 379koz, top of guidance range
- Record cash and bullion balance of $1.18 billion
- FY27 production guidance raised to 360-400koz with higher AISC
- McPhillamys Ore Reserve reinstated at 1.89Moz supported by new PFS
- Vault Minerals merger terminated after Regis declines to match competing bid
FY26 Production Strength and Cash Position
Regis Resources (ASX:RRL) finished FY26 on a high note, delivering group gold production of 379,000 ounces, comfortably at the top end of its 350-380koz guidance. The June quarter alone produced 101,500 ounces, with an All-In Sustaining Cost (AISC) of A$3,244/oz, slightly elevated by higher diesel prices and non-cash stockpile adjustments. Despite these cost pressures, the company maintained disciplined capital management, culminating in a record cash and bullion position of A$1.18 billion at 30 June 2026; a remarkable A$667 million increase over the year even after paying A$151 million in dividends and A$156 million in tax.
Ramping Up FY27 Guidance Amid Operational Nuances
Post quarter-end, Regis raised its FY27 gold production guidance to 360-400koz, driven by higher output expectations at Duketon, partially offset by a forecast decline at Tropicana. The latter’s reduced open pit production from the Havana pit will increase reliance on lower-grade stockpile feed, pushing up AISC for the year. Group AISC guidance is set between A$2,990 and A$3,390 per ounce, factoring in elevated diesel costs and higher unit costs at Tropicana, alongside opportunistic ounces from the BuckWell open pit. Growth capital expenditure is expected to rise slightly to A$250-270 million, focused on advancing Rosemont Stage 3 underground development, the Garden Well paste fill plant, and pre-stripping activities at BuckWell and new open pits set to ramp in H2 FY27. Regis also anticipates ongoing tax payments of approximately A$20 million monthly through CY26, with a final catch-up payment due in December.
McPhillamys Project Reinstatement and Financial Outlook
A major highlight was the reinstatement of the McPhillamys Ore Reserve at 1.89 million ounces (56 million tonnes at 1.1g/t gold), supported by a Pre-Feasibility Study (PFS) that confirmed a compelling, long-life development. The PFS introduced an Integrated Waste Landform (IWL) tailings strategy, replacing the conventional tailings storage with filtered tailings co-disposed within the mine waste dump; a design entirely on Regis-owned land, circumventing previous regulatory hurdles. The project shows robust economics with an average annual production nearing 190koz, AISC around A$1,718/oz, and a post-tax net present value of A$1.13 billion at a A$4,000/oz gold price. Regis targets a Final Investment Decision by mid-2028, pending permitting and judicial review outcomes related to heritage protection legislation.
Exploration Successes and Resource Growth
Exploration remains a growth pillar, with a pipeline of nearly 100 prospects across Duketon, Tropicana, and McPhillamys. Notably, Regis declared an initial Mineral Resource at Beamish South within the Duketon South operations, estimating 270,000 ounces at 1.1g/t gold. Drilling at Garden Well and Rosemont Stage 3 continues to extend mineralisation, with significant high-grade intersections reaffirming resource continuity and potential underground expansions. Tropicana’s underground and surface drilling programs also delivered encouraging results, including down-plunge extensions at Boston Shaker and Havana South. Near-mine exploration at McPhillamys’ Kings Plains prospect further confirmed gold mineralisation to 180m depth, although historical data there remains unverified under current JORC standards.
Vault Minerals Merger Abandoned with Break Fee Paid
Regis’ strategic discipline was evident in its decision not to match Genesis Minerals’ superior takeover proposal for Vault Minerals. Following careful consideration, the Regis board concluded the competing bid did not meet their value and return thresholds. Consequently, the Scheme Implementation Deed was terminated, triggering a break fee payment of approximately A$50 million to Regis. The company emphasized its strong, debt-free balance sheet and organic growth pipeline, underscoring confidence in its independent growth trajectory.
Bottom Line?
Regis enters FY27 with strong momentum, a fortified balance sheet, and a clear development path at McPhillamys, but execution risks around permitting and market conditions remain key to watch.
Questions in the middle?
- How will rising diesel and operational costs at Tropicana impact overall profitability in FY27?
- What are the potential timelines and risks associated with McPhillamys’ permitting and judicial review outcomes?
- Can ongoing exploration at Duketon and Tropicana sustain or grow Regis’ resource base to support long-term production?