Regis Resources ended the first quarter with $1.28 billion in cash and bullion after producing 83.0koz of gold, despite significant rainfall in September. FY27 production guidance remains unchanged, but the quality of quarterly cash generation will face closer scrutiny when full results arrive.
- $1.28 billion cash and bullion at 30 September
- 83.0koz of first-quarter gold production, in line with expectations
- $146 million pre-tax cash and bullion generated, including a $51 million Vault break fee
- FY27 production guidance maintained at 360koz to 400koz
- Full quarterly costs and financial detail due on 20 October
Cash Balance Reaches $1.28 Billion
Regis Resources Ltd (ASX:RRL) has started FY27 with a $1.28 billion cash and bullion balance, giving the gold producer a substantial financial base as it expands activity across its projects. The balance at 30 September included 18,416oz of gold bullion valued at $5,986 an ounce.
Pre-tax cash and bullion generation reached $146 million for the quarter, before $53 million in tax payments. That figure included a $51 million break fee from the terminated Vault transaction, meaning the headline cash result contains a clearly identified contribution from the deal's collapse. Regis had previously received the Vault merger break fee after declining to match Genesis Minerals' superior proposal.
Gold Production Tracks FY27 Plan
Group gold production came in at 83.0koz in the three months to 30 September, which Regis said met expectations despite significant rainfall affecting some activities during September. Duketon contributed 56.1koz, while Tropicana delivered 27.0koz on a 30% attributable basis.
The quarterly result leaves Regis broadly on the opening stretch of its maintained FY27 production guidance of 360koz to 400koz. The company previously lifted that range after FY26 production reached 379koz, with higher FY27 production guidance tied to growth at Duketon and continued investment across the portfolio.
First Half Investment Will Precede Heavier Production
Regis has warned that the annual production profile is weighted towards the second half, while growth capital expenditure is weighted towards the first half as multiple open pits commence across the projects. That sequencing makes the September quarter an incomplete test of the full-year plan: production has met expectations so far, but the heavier output and spending phases still lie ahead.
The announcement is preliminary and unaudited, and it does not disclose all-in sustaining costs or the detailed cash-flow breakdown. Those figures are due with the full September quarterly results on 20 October, when the effect of rainfall, first-half growth spending and cash generation excluding the Vault payment should become clearer.
Bottom Line?
The production start is on plan and the balance sheet is unusually strong, but the 20 October results will show how much of the quarter's cash performance came from mining rather than the Vault payment.
Questions in the middle?
- How did all-in sustaining costs move as rainfall disrupted September activities?
- What level of first-half growth capital expenditure is now being deployed across the open pits?
- Can the second-half production weighting deliver the upper portion of the 360koz to 400koz guidance range?