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Introduction & Market Context
Regis Resources Ltd (ASX:RRL) delivered solid operational performance in FY25, hitting the top end of its production guidance while continuing to build a substantial cash position. The gold miner’s July 2025 corporate presentation highlights its strategic shift toward underground mining operations at both its Duketon and Tropicana assets, while outlining plans for future growth despite challenges at its McPhillamys project.
The company’s performance comes amid strong gold prices, allowing Regis (NASDAQ:RGS) to capitalize on its unhedged position and generate significant cash flow. With a market capitalization of approximately $3.4 billion, Regis continues to strengthen its position in the Australian gold sector.
FY25 Performance Highlights
Regis Resources (OTC:RGRNF) delivered production at the top end of its guidance range for FY25, while maintaining costs at the lower end of expectations. The company achieved gold production of 373,000 ounces against guidance of 350,000-380,000 ounces, with All-In Sustaining Costs (AISC) of $2,531 per ounce compared to guidance of $2,440-$2,740 per ounce.
As shown in the following performance summary table, the company met or exceeded all its key operational targets:
The strong operational performance has translated into substantial cash generation, with the company ending FY25 with $517 million in cash and bullion, representing a net build of $522 million after debt repayment of $300 million.
Cash Generation and Financial Position
One of the most impressive aspects of Regis’s performance has been its consistent cash build since December 2023. The company has transformed from a net debt position to holding significant cash reserves, delivering a $662 million cash build over this period.
The following chart illustrates this remarkable financial transformation:
This financial strength provides Regis with significant flexibility for future growth initiatives, potential shareholder returns, and resilience against market volatility. The company is now completely debt-free, having repaid its $300 million term loan, and remains unhedged to gold price movements, allowing it to fully benefit from current strong gold prices.
FY26 Guidance and Outlook
Looking ahead, Regis Resources has provided guidance for FY26 that suggests continued stable production levels. The company expects to produce 350,000-380,000 ounces of gold in FY26, with AISC of $2,610-$2,990 per ounce.
The guidance breakdown by operation shows:
It’s worth noting that the FY26 AISC guidance includes approximately $170 per ounce of non-cash costs related to stockpile value adjustments at the group level. The company has also allocated $180-195 million for growth capital expenditure and $50-60 million for exploration, highlighting its continued focus on future development.
Underground Mining Strategy and Reserve Growth
Regis Resources has been successfully executing a strategic shift toward underground mining, particularly at its Duketon operation. The company has achieved remarkable growth in underground ore reserves, with a 550% increase at Duketon since 2019 (including depletion of 359,000 ounces of gold).
This substantial reserve growth is illustrated in the following chart:
Similarly, at Tropicana, underground ore reserves have grown by 202% since 2018, excluding production of 648,000 ounces of gold during this period:
The company’s Duketon operation is transitioning to become an underground-centric mining operation, with plans to operate at least four underground mines. Currently, Rosemont Underground (commenced production in FY20) and Garden Well Underground (commenced production in FY23) are in operation, with development of Garden Well Main and Rosemont Stage 3 undergrounds initiated in FY24.
Exploration and Growth Opportunities
Regis continues to invest significantly in exploration, with several promising targets identified. The Ben Hur Exploration Target (NYSE:TGT) represents a potential fourth underground mine at Duketon, with an estimated 4.0-6.0 million tonnes at grades of 2.2-2.8 g/t for 300,000-550,000 ounces of contained gold.
The following map illustrates the Ben Hur Exploration Target:
At Tropicana, exploration drilling has identified significant upside potential at Boston Shaker (TADAWUL:1214), with recent drilling extending mineralization below known limits. Notable intercepts include 3m @ 10.4 g/t, 10m @ 5.9 g/t, and 22m @ 5.0 g/t.
The Boston Shaker growth potential is demonstrated in this cross-section:
Similarly, at Havana Underground, drilling has identified additional target areas including the Cobbler conceptual underground target and Havana Fault offset, with significant mineralization intercepts:
McPhillamys Project Challenges
While Regis’s operating assets are performing well, the company faces challenges with its McPhillamys Project, which hosts a substantial 2.7 million ounce resource and is described as one of Australia’s largest undeveloped open pit gold projects.
On August 16, 2024, a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 was issued over a portion of the site covering the approved tailings storage facility (TSF) location. This has rendered the project currently unviable, as Regis has no immediately available alternative TSF location, and the timeframe to progress alternatives is measured in years.
The company has commenced Judicial Review proceedings and is undertaking a project reset, but the development timeline has been significantly impacted. Despite these challenges, McPhillamys remains a potentially valuable future asset if regulatory hurdles can be overcome.
Strategic Outlook
Regis Resources has outlined its vision for the future of its producing assets, with Duketon planned to produce 200,000-250,000 ounces annually (assuming no new open pit discovery) and Tropicana expected to deliver 130,000-145,000 ounces during the open pit and underground phase.
The company’s strategic focus is summarized in its "Golden Opportunity (SO:FTCE11B)" overview:
With its unhedged position, debt-free status, and strong cash generation, Regis appears well-positioned to continue its operational success while pursuing growth through underground expansion and exploration. The company’s consistent operational performance has generated significant cash, with approximately $517 million in net cash and bullion, delivering a $662 million increase since December 2023.
While the McPhillamys project presents challenges, the company’s core operations at Duketon and Tropicana continue to perform strongly, with significant potential for future growth through underground mining and exploration success.
Full presentation:
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