Regis Resources Hits Debt-Free Milestone with Record Quarter Gold Output

Operational Highlights

Regis Resources Ltd (ASX: RRL) reported a strong operational and financial performance for the December 2024 quarter, producing 101,300 ounces of gold at an all-in sustaining cost (AISC) of $2,317 per ounce. The company’s two main assets, Duketon and Tropicana, contributed 58,300 ounces and a record 43,000 ounces respectively, with Tropicana achieving its highest quarterly output since Regis took ownership.

The AISC at Tropicana was notably lower at $1,773/oz compared to Duketon’s $2,667/oz, reflecting operational efficiencies and ore grade differences. Both operations performed in line with expectations, with ongoing underground development supporting future production growth.

Financial Strength and Debt Repayment

Financially, Regis demonstrated considerable strength, generating $215 million in operating cash flow for the quarter. Gold sales reached 118,100 ounces at an average realised price of $4,076 per ounce, resulting in revenue of $482 million. The company’s cash and bullion position surged by $149 million to $529 million, setting a new quarterly record.

Capital expenditure totaled $54 million, focused on underground mine development and plant upgrades. Crucially, Regis repaid its $300 million Term Loan Facility in full and well ahead of its June 2025 maturity, marking the first time in nearly 15 years that the company is both debt-free and unhedged. This milestone provides enhanced financial flexibility and positions Regis to pursue growth opportunities without the burden of debt servicing.

Growth Prospects and Exploration

Regis continues to invest in exploration, with $14 million spent during the quarter. A significant development was the establishment of an underground Exploration Target at the Ben Hur project, estimated between 4.0 to 6.0 million tonnes at grades of 2.2 to 2.8 grams per tonne, translating to 300,000 to 550,000 ounces of potential gold. While still conceptual, this target underscores near-term growth optionality within the Duketon portfolio.

The company’s bi-annual exploration update highlighted ongoing success in extending mineralisation at key sites including Ben Hur, Garden Well, Rosemont, and Tropicana’s Boston Shaker and Cobbler underground targets. These efforts reinforce Regis’s pipeline of development projects and satellite resource potential.

Regulatory and Legal Developments

On the regulatory front, Regis has initiated legal proceedings challenging the Federal Minister for Environment and Water’s declaration of protection over part of the approved McPhillamys Gold Project. The judicial review seeks to overturn this decision, with resolution anticipated by mid-2025. Meanwhile, all McPhillamys-related costs are now expensed, reflecting the project’s current status.

Outlook and Guidance

Regis maintained its FY25 production guidance of 350,000 to 380,000 ounces at an AISC range of $2,440 to $2,740 per ounce. Growth capital expenditure is forecast between $120 million and $135 million, with exploration budgets set at $50 million to $60 million. The company is also finalising a new Revolving Credit Facility to provide ongoing liquidity and financial flexibility.

Managing Director Jim Beyer emphasised the company’s strong fundamentals, operational consistency, and leverage to spot gold prices above $4,000/oz. With a clean balance sheet and robust cash flow, Regis is well positioned to capitalise on market opportunities and advance its growth pipeline.