Regis Resources closes book on year of consolidation

Regis Resources has posted a 91 per cent drop in full-year profit to $13.8 million after booking $60m in post tax non-cash adjustments.

The well-flagged result came on the back of a 24 per cent lift in revenue to a record $1 billion from the sale of 439,310 ounces at an average price of $2312/oz.

The 12-month period included the first full-year of production from the company’s 30 per cent stake in the Tropicana gold operation following its $903m acquisition from IGO in the first half of last year.

The non-cash adjustments that hit the company’s bottom line included revised cost assumptions impacting the value of its historically mined stockpiles as well as a write-down of exploration and evaluation assets for tenements no longer held.

The company declared a final fully franked dividend of 3¢ per share, down from 2¢ previously.

Managing director Jim Beyer described financial year 2022 as one of consolidation for Regis.

“We invested heavily at both Tropicana and Duketon to set the company up for its growing production and cash flow profile,” he said.

“The financial performance was significantly impacted by a combination of the ongoing impacts of COVID and inflationary cost pressures in particular during the second half of the financial year.”

Regis held cash and bullion of $231m at the end of June and had a net debt position of $69m.

The company issued financial year 2023 guidance of 450,000oz-500,000oz at all-in sustaining costs of $1525-$1625/oz.

Regis shares closed up 7¢, or 4.4 per cent, at $1.66.