Regis Resources July 2025 presentation: Debt-free status achieved amid production growth

Introduction & Market Context

Regis Resources Ltd (ASX:RRL), an Australian gold producer with a market capitalization of approximately $3.4 billion, presented its corporate update in July 2025, highlighting its operational performance and strategic direction. The company has positioned itself as an unhedged gold producer with long-life assets in Australia, allowing it to fully benefit from strong gold prices while maintaining a focus on operational efficiency.

As shown in the following map highlighting Regis Resources’ key Australian assets, the company operates two major producing projects - Duketon and Tropicana - while continuing development work on its McPhillamys project:

FY25 Performance Highlights

Regis Resources delivered strong operational results in FY25, with production reaching 373,000 ounces at the top end of guidance, while all-in sustaining costs (AISC) came in at $2,531 per ounce at the bottom end of guidance. The company also made significant progress on its balance sheet, ending the year debt-free after repaying $300 million in debt.

The following table details Regis Resources’ FY25 performance against guidance across key metrics:

A standout achievement for Regis has been its consistent cash generation, with the company building $662 million in cash since December 2023. This transformation from a net debt position to a strong cash position of $517 million demonstrates the company’s financial strength and operational execution, as illustrated in the following chart:

Strategic Growth Initiatives

Regis Resources’ growth strategy centers on expanding its underground mining operations, particularly at Duketon where underground ore reserves have grown by approximately 550% since 2019. The company is targeting at least four underground mines at Duketon, with Garden Well Main representing the third underground operation currently in development.

The following chart illustrates the consistent growth in Duketon’s underground ore reserves over the past five years:

The company is also evaluating Ben Hur as a potential fourth underground mine at Duketon. The exploration target at Ben Hur is estimated to contain between 4.0-6.0 million tonnes at grades of 2.2-2.8 g/t gold, representing a potential 300,000-550,000 ounces of contained gold.

As shown in the following diagram of the Ben Hur project, the company has identified significant potential for underground development:

Project Updates

Duketon

The Duketon project remains Regis Resources’ flagship operation, with FY26 production guidance of 220,000-240,000 ounces at an AISC of $2,790-$3,200 per ounce. The project features a dominant 3,000 km² land package with 7.5 Mtpa mill capacity at Duketon South and 2.5 Mtpa at Duketon North. The company is progressing development of Rosemont (Stage 3) and Garden Well Main, while continuing to explore additional underground opportunities.

Tropicana

At the Tropicana project (30% Regis ownership), FY26 production guidance is set at 130,000-140,000 ounces at an AISC of $2,240-$2,560 per ounce. The operation is transitioning with the ramp-up of the Havana open pit and continued development of underground operations. Boston Shaker underground commenced production in 2020, and exploration continues to identify additional underground potential.

McPhillamys

The McPhillamys project, with its 2.7 million ounce resource, faces challenges following a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 on August 16, 2024. This declaration covers the approved tailings storage facility site, making the project currently unviable. Judicial review proceedings have commenced with a hearing date set for December 10-12, 2025.

Financial Position and Outlook

Regis Resources has provided FY26 guidance for group production of 350,000-380,000 ounces at an AISC of $2,610-$2,990 per ounce. The company plans to invest $180-195 million in growth capital and $50-60 million in exploration during FY26.

With its debt-free status and strong cash position, Regis is well-positioned to fund its growth initiatives while potentially returning value to shareholders. The company’s unhedged position allows it to fully benefit from gold price movements, which has contributed significantly to its recent financial performance.

As summarized in the company’s investment case slide, Regis Resources offers a compelling opportunity as an unhedged, debt-free gold producer with consistent operational performance and clear growth potential:

During the Q4 2025 earnings call, CEO Jim Beyer emphasized the company’s strong financial position, stating: "We’re ending the year debt free and in the strongest financial position the company has ever been in." He also highlighted the company’s strategic focus on generating strong margins from core ounces while extracting opportunistic additional ounces where the price environment supports it.

While Regis Resources faces some challenges, including inflationary pressures in the gold industry and the legal proceedings related to McPhillamys, its strong operational performance and financial position provide a solid foundation for future growth. The company’s focus on underground expansion at its existing operations offers a clear path to sustainable production levels, with targets of 200,000-250,000 ounces at Duketon and 130,000-145,000 ounces at Tropicana in the medium term.

Full presentation:

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