Regis Resources (ASX:RRL) executives told investors the company delivered a December quarter that was “in line with expectations,” combining consistent production with strong cash generation, a growing cash balance, and the resumption of dividends. Managing Director and CEO Jim Beyer was joined on the call by CFO Anthony Rechichi, COO Michael Holmes, and Head of Investor Relations Jeff Sansom.
Safety and quarterly operating performance
Beyer opened with a safety update, saying the company’s 12-month average lost time injury frequency rate (LTIFR) ended the quarter at 0.34, which he said remained well below the Western Australian gold industry average. Management reiterated its objective of maintaining a workplace free from serious injury through leadership, discipline, and continuous improvement.
Duketon and Tropicana: production and mine development
COO Michael Holmes said the December quarter was delivered “in line with expectations” across both Duketon and Tropicana, emphasizing consistency of execution as a core strength.
At Duketon, Regis reported 57.6 thousand ounces of production from open-pit and underground operations. Open-pit mining at King of Creation, Gloster, and Ben-Hur delivered 13.6 thousand ounces at an average grade of 0.82 g/t, with stable conditions and performance in line with plan. Underground operations at Gardenwell and Rosemont produced 32,000 ounces at 1.8 g/t. Total underground development was 3,896 meters, with roughly 40% classified as capital development, reflecting investment in Gardenwell Main and Rosemont Stage 3, which Holmes said remained on schedule and were progressing toward commercial production.
During Q&A, management attributed lower open-pit grades quarter-on-quarter to mine sequencing and stockpile feed, saying future grades should fluctuate in the normal course rather than show “great fluctuations.” Holmes also said the reserve grade for Buckwell was “just under one,” around 0.9 g/t.
At Tropicana, Regis’s attributable production was 39,000 ounces. Open-pit operations delivered 18.8 thousand ounces at an average grade of 1.96 g/t, while underground operations delivered 17.4 thousand ounces at 3.14 g/t. Holmes said performance remained consistent with plan.
In response to a question about Tropicana milling costs, management said there was no reason to view recent costs differently going forward.
Cash flow, capital spending, and taxes
CFO Anthony Rechichi said gold sales for the quarter were “just under 100,000 ounces” at an average realized price of A$6,436 per ounce, generating A$641 million in revenue. The company reported A$419 million in operating cash flow, comprising A$231 million from Duketon and A$188 million from Tropicana.
Regis said cash and bullion increased by A$255 million during the quarter to A$930 million as of 31 December. Management emphasized this increase occurred after paying a fully franked dividend (described below) while continuing to invest across the business and at McPhillamys.
Capital expenditure in the quarter totaled A$115 million. At Duketon, spending included underground development, pre-production mining activities, waste removal, and plant and equipment investment, with a “significant portion” tied to Gardenwell Main, Rosemont Stage 3, and early works at Buckwell. At Tropicana, capex included underground development at Boston Shaker and Havana Underground, pre-production costs at Havana Underground, and sustaining capital.
Regis reported A$19 million of exploration expenditure during the quarter across Duketon and Tropicana, and A$5 million spent at McPhillamys. Rechichi noted that following the Section 10 declaration, all McPhillamys expenditure is expensed through the profit and loss account.
On taxes, Rechichi said Regis would return to paying cash tax, starting with approximately A$100 million in FY25 tax payable to be paid in March. He added that the company expects to make monthly corporate tax installment payments going forward as its tax loss benefits have ended.
Dividends, capital allocation policy, and project updates
Regis resumed dividends during the quarter, paying a fully franked A$0.05 per share dividend totaling A$38 million. Beyer said the resumption was not expected to be a one-off decision and reflected confidence in sustainable cash flows. He also said Regis remains unhedged.
Management said it is finalizing a formal capital allocation policy, which it expects to release in February alongside half-year results. During Q&A, Beyer said the business was not anticipating any “major jumps or leaks” in capital expenditure from current levels, while noting that McPhillamys represented the largest potential capital call but is “at least a couple of years away.” He also said the company was considering multiple shareholder return mechanisms, including regular dividends, special dividends, and share buybacks, with decisions influenced by factors such as share price and the relative value to shareholders.
On exploration, Beyer said Regis increased its FY26 exploration forecast by about A$20 million, lifting guidance to A$70 million to A$80 million. He linked the increase to results and said the company was maintaining a rig at a previously drilled project that warranted ongoing work, while mobilizing additional equipment and personnel. In response to analyst questions, he said management did not see issues sourcing additional drilling capacity and that access to labs remained a typical industry constraint, but “nothing has got worse.” He highlighted Beamish South as an area producing particularly interesting results and said early indications at greenfields areas also supported additional spending.
On McPhillamys, Beyer said the judicial review for the Section 10 declaration was heard in the Federal Court in Sydney in December and the judge had reserved a decision. He said there was no statutory timeline and the company hoped for an outcome by the end of the quarter, but it could slip into the June quarter. Beyer added that Regis continues to progress alternative pathways to return McPhillamys to an approvable position, including assessing an integrated waste landform solution for tailings.
On the Buckwell project (formerly referred to as Buckingham-Wellington pits), Beyer described it as a near-term, capital-efficient opportunity leveraging existing infrastructure, approvals, and available mill capacity. He cited project metrics previously released, including 221,000 ounces and an average AISC of A$3,524 per ounce. Beyer also repeated prior economics disclosed for Buckwell at a consensus average gold price of A$5,387 per ounce, including a pre-tax NPV of A$270 million and IRR of 127%, and said higher gold prices would increase the NPV. He added the development’s staged nature provides flexibility to adjust sequencing and pace based on the gold price, and said the project would extend Duketon North’s operation through at least the end of FY31.
In closing remarks, Beyer noted that Head of Investor Relations Jeff Sansom would be leaving at the end of the month, with a replacement to be announced in due course.
About Regis Resources (ASX:RRL)
Regis Resources Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in Australia. It owns 100% interests in the Duketon gold project located in the North Eastern Goldfields of Western Australia; and the McPhillamys gold project situated in the Central Western region of New South Wales, as well as holds 30% interest in Tropicana Gold Project. Regis Resources Limited was incorporated in 1986 and is based in Subiaco, Australia.
