McPhillamys Legal Battle Looms as Regis Advances Underground Growth and Debt Repayment

Operational Performance and Production

Regis Resources delivered a solid operational quarter ending March 2025, producing 89,700 ounces of gold at an all-in sustaining cost (AISC) of $2,538 per ounce. The company’s two main assets, Duketon and Tropicana, contributed 58,100 ounces and 31,600 ounces respectively, with costs reflecting the differing mining profiles of each site. Duketon’s AISC rose slightly to $2,753/oz, while Tropicana maintained a more competitive $2,046/oz, underscoring its operational efficiency.

Underground development projects remain on track, particularly at Duketon’s Garden Well Main and Rosemont Stage 3 mines, which are expected to deliver first ore early in the next fiscal year. Tropicana’s Havana Underground also continues steady progress, supporting the company’s growth ambitions.

Financial Strength and Capital Management

Regis’ financial position was notably bolstered this quarter by the early repayment of its $300 million term loan, a move that signals strong cash generation and prudent balance sheet management. Alongside this, the company established a $300 million revolving credit facility, currently undrawn, providing additional liquidity and financial flexibility as it advances its projects.

Operating cash flow reached $221 million, supported by gold sales of 81,000 ounces at an average realised price of $4,591 per ounce, generating $372 million in revenue. Capital expenditure totalled $72 million, with a significant portion allocated to growth capital for underground development and exploration activities, reflecting Regis’ commitment to sustaining and expanding its resource base.

Resource Updates and Growth Outlook

The company updated Tropicana’s Mineral Resources to 5.4 million ounces and Ore Reserves to 1.9 million ounces as of December 2024. Notably, underground Ore Reserves increased by 178,000 ounces, offsetting depletion and demonstrating ongoing resource replacement success. This steady reserve base underpins Regis’ medium-term production profile and supports its growth capital investments.

Additionally, the Tropicana Renewable Energy Project reached commercial production, integrating solar and wind power with battery storage. This initiative not only reduces operational carbon footprint but also enhances energy security at the mine site.

McPhillamys Legal Proceedings

Regis continues to face legal challenges related to the Section 10 declaration over part of the approved McPhillamys Gold Project. The company has initiated judicial review proceedings against the Federal Minister for Environment and Water’s decision, with a hearing scheduled for December 10-12, 2025. While this introduces uncertainty, Regis remains engaged and committed to resolving the matter, keeping investors informed of material developments.

Outlook and Guidance

Despite the legal uncertainties at McPhillamys, Regis reaffirmed its full-year production guidance of 350,000 to 380,000 ounces at an AISC range of $2,440 to $2,740 per ounce. Exploration and growth capital budgets remain consistent with prior guidance, supporting the company’s strategy to maintain steady production while pursuing resource expansion and operational improvements.