Regis Resources delivered a solid quarterly result that underscores the company’s ability to generate substantial cash flows in the current gold price environment. The company produced 90.6 kiloounces of gold in the March quarter at an all-in sustaining cost of $2,807 per ounce, translating to gold sales of 89.1 kiloounces that fetched $622 million at an average realised price of $6,977 per ounce. This operational consistency positions Regis as a reliable cash generator for shareholders, evidenced by the announcement of a 15 cents per share fully franked interim dividend totalling $114 million.
The company’s operational performance across its two main assets reveals a business performing predictably within guidance. Duketon produced 57.5 kiloounces at an AISC of $3,139 per ounce while Tropicana contributed 33.1 kiloounces at a significantly lower AISC of $2,140 per ounce. The operating cash flow of $422 million for the quarter, comprising $263 million from Duketon and $159 million from Tropicana, demonstrates the financial firepower supporting both capital investment and shareholder returns. Managing Director Jim Beyer acknowledged that recent diesel price spikes are pressuring costs, yet the company expects to remain within full-year guidance, suggesting underlying operational discipline.
Perhaps most encouraging for long-term investors is Regis’s mineral resource and ore reserve growth trajectory. Contained ounces grew 10 percent year-on-year to 8,280 kiloounces while ore reserves increased approximately 20 percent year-on-year to 1,965 kiloounces. These figures exceed depletion rates, indicating genuine mine life extension rather than merely replacing production. Development progress at Rosemont Stage 3, Havana Underground, and the commercial production commencement at Garden Well Main reflect a company successfully advancing its underground growth pipeline, which should support future production and value creation.
The balance sheet strength is particularly notable. Cash and bullion balances stood at $1.13 billion at quarter end, an increase of $198 million despite capital expenditure of $123 million, tax payments of $92 million, and McPhillamys exploration investment of $7 million. This financial flexibility has prompted management to increase growth capital guidance to $240 to $255 million for the full year, with over-performance from the mining fleet at Buckwell cited as a key driver. The capital allocation approach, which combines reinvestment in the business with shareholder returns, suggests management confidence in the company’s medium-term prospects.
Investors should monitor progress on the underground development initiatives and whether Regis can sustain its disciplined approach to capital allocation amid commodity price volatility. The company’s safety performance also warrants attention, with the lost time injury frequency rate of 0.32 per million hours demonstrating operational excellence beyond purely financial metrics. This announcement has been classified as price sensitive by the ASX.
View the full ASX announcement (PDF)
About Regis Resources Limited (ASX: RRL)
Regis Resources Limited is an Australian gold producer and explorer that engages in the exploration, evaluation, and development of gold projects. The company operates the Duketon Gold Project in the northeastern Goldfields of Western Australia and the Tropicana Gold Project east-northeast of Kalgoorlie in Western Australia.
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