Regis Resources Posts Record $715M Profit and Declares 35c Fully Franked Dividend

Financial Milestones and Dividend Boost

Regis Resources has capped FY26 with a record net profit after tax of $715 million, a staggering 181% increase on the previous year. This surge was driven by solid operational performance delivering 379,050 ounces of gold at an all-in sustaining cost (AISC) of $2,945 per ounce, coupled with a soaring average realised gold price of A$6,283 per ounce – up 43% year-on-year.

The company’s revenue climbed to $2.35 billion, underpinning an EBITDA of $1.345 billion, reflecting a healthy 57% margin. Operating cash flow hit a record $1.247 billion, enabling Regis to end the year with a robust cash and bullion balance of $1.18 billion, all while remaining debt-free.

In line with its new capital management policy, Regis declared a fully franked final dividend of 15 cents per share alongside a 5 cents per share special dividend. The special dividend returns the $50.7 million break fee received from the terminated Vault Minerals merger, effectively passing this value straight back to shareholders. Including the interim dividend, total dividends declared for FY26 reached 35 cents per share, representing a 39% payout ratio and a yield of 6.1%, a standout in the gold sector.

Operational Highlights and Growth Pipeline

The company’s flagship Duketon Gold Project produced 236,000 ounces, slightly up on FY25, at an AISC of $3,199 per ounce. This included the commercial ramp-up of Garden Well Main underground mine and the commencement of production at the BuckWell open pit. Underground Ore Reserves at Duketon grew by 273,000 ounces after depletion, marking the sixth consecutive year of reserve growth exceeding mining depletion.

At Tropicana, where Regis holds a 30% stake, production remained steady at 143,000 ounces with an AISC of $2,443 per ounce. The Havana underground mine is progressing towards first production in the first half of calendar year 2027, supporting future growth. Underground Ore Reserves at Tropicana also grew, replacing 130% of mined depletion.

Exploration efforts were vigorous, with over 280,000 metres drilled across Duketon and Tropicana. Notably, Regis declared an initial Mineral Resource at Beamish South of 270,000 ounces, a new discovery just 4 kilometres from the Garden Well open pit, highlighting the potential for extending mine life and production.

Meanwhile, the McPhillamys Gold Project in New South Wales saw a major milestone with the reinstatement of its Ore Reserve at 1.89 million ounces following a refreshed Pre-Feasibility Study (PFS). The project, which remains subject to a Federal Court challenge, targets a Final Investment Decision in the first half of 2028 and is viewed as a significant future development opportunity.

Corporate Discipline and ESG Commitments

Regis’ disciplined approach was evident in its decision not to counter the superior takeover proposal from Genesis Minerals for Vault Minerals, resulting in termination of the merger agreement and receipt of a $50.7 million break fee. This fee was promptly returned to shareholders via the special dividend, underscoring the company’s commitment to shareholder value.

On the ESG front, Regis continues to embed sustainability into its operations. The company rehabilitated over 200 hectares of disturbed land, increased female workforce representation to 25.1%, and maintained board gender diversity at 33%. The Tropicana 61MW renewable energy project contributed to reduced natural gas consumption and lower carbon emissions, aligning with Regis’ climate-related financial disclosures under AASB S2.

Regis also reported a Lost Time Injury Frequency Rate (LTIFR) of 0.3, well below the Western Australian gold industry average of 1.0, reflecting its strong safety culture.

Looking Ahead: FY27 Guidance and Strategic Focus

For FY27, Regis reaffirmed its guidance with group gold production expected between 360,000 to 400,000 ounces. Duketon is forecast to produce 240,000 to 270,000 ounces, with Tropicana contributing 120,000 to 130,000 ounces. The group AISC guidance is $2,990 to $3,390 per ounce, including non-cash stockpile adjustments.

Growth capital expenditure is planned at $250 to $270 million, focusing on underground development and open pit pre-stripping, while exploration spend is targeted at $80 to $90 million. The McPhillamys project is budgeted for $30 to $35 million in development expenditure as it advances towards a final investment decision.

Regis enters FY27 with a strong balance sheet, a clear capital management framework, and a robust pipeline of organic growth opportunities, positioning it well to navigate market conditions and deliver shareholder returns.

Investors will be watching how Regis balances its organic growth ambitions with disciplined capital allocation, particularly in light of ongoing regulatory and commodity price uncertainties, and the progress of the McPhillamys project amid legal challenges.

Meanwhile, the company’s detailed climate risk disclosures highlight an active approach to managing transition and physical climate risks, a growing imperative for mining companies in Australia’s evolving regulatory landscape.

With record profits behind it and a strong cash position, Regis Resources is well placed to continue its steady march as one of Australia’s leading gold producers, but the coming years will test its ability to sustain growth and navigate complex external pressures.