Regis Resources Reports Record $1.18 Billion Cash Reserves and 379koz Gold Production for FY26, Highlights McPhillamys Growth Plan

FY26 Gold Production Aligns with Guidance Across Duketon and Tropicana Mines

Regis Resources delivered FY26 gold production of 379 kiloounces, reaching the high end of the company’s 350 to 380 kiloounce guidance. The June quarter contributed 101.5 kiloounces at an AISC of $3,244 per ounce, reflecting strong operational performance at both the Duketon and Tropicana sites, which form the company’s core production base in Western Australia.

The Duketon operation produced 62.5 kiloounces at an AISC of $3,642 per ounce during the June quarter, while Tropicana (30% owned) contributed 39.1 kiloounces at $2,532 per ounce AISC. The full-year group AISC was $2,945 per ounce, within the guidance range of $2,610 to $2,990. Non-cash charges, mainly from stockpile movements, accounted for $140 per ounce of the AISC. Managing Director and CEO Jim Beyer described FY26 as a strong year, with both operations delivering safe production within guided cost and capital parameters.

Record Cash Generation Strengthens Financial Position

Regis Resources’ balance sheet improved significantly in FY26, with cash and bullion reaching a record $1.18 billion at 30 June 2026. This represents a $667 million increase despite $151 million returned to shareholders as dividends and $156 million paid in taxes. Gold sales in the June quarter totaled 102.4 kiloounces, generating $639 million in revenue at an average realised price of $6,241 per ounce. Operating cash flow for the quarter was $376 million, with Duketon contributing $194 million and Tropicana (30%) $182 million.

The cash build reflects strong operational cash flow and disciplined capital allocation. Regis maintained a debt-free balance sheet throughout FY26, generating robust free cash flow from established assets. This financial strength supports funding organic growth, including McPhillamys development, while returning capital to shareholders. Tax payments commenced in April 2026 at approximately $20 million per month.

McPhillamys Pre-Feasibility Study Validates 1.89 Million Ounce Reserve and Strong Project Economics

In the June quarter, Regis released a Pre-Feasibility Study for McPhillamys, confirming a 56 million tonne ore reserve at 1.1 grams per tonne for 1.89 million ounces of gold. The study supports a long-life development featuring an alternative tailings strategy. Project economics include a post-tax NPV of $1.13 billion at A$4,000 per ounce gold and a 21.8% internal rate of return. Average all-in sustaining costs are forecast at $1,718 per ounce, supporting average annual production of 190 kiloounces.

The reinstated McPhillamys reserve significantly enhances the company’s mineral resource base and underpins its organic growth strategy. Capital expenditure for McPhillamys was $26 million in FY26 and is expected to rise to $30–35 million in FY27 as development accelerates. Managing Director Beyer described the quarter as pivotal for growth, with McPhillamys providing a clear organic expansion pathway.

Exploration Success Extends Mineralisation and Establishes Beamish South Resource

Exploration efforts during FY26 yielded significant results, including extensions of mineralisation at Duketon and Tropicana and the definition of an initial mineral resource at Beamish South. The Beamish South resource totals 7 million tonnes at 1.1 grams per tonne for 270 kiloounces of gold, with ongoing drilling to explore further potential. Drilling also resumed in the McPhillamys district to support project advancement. Bi-annual updates confirmed down-plunge mineralisation extensions at Garden Well and Rosemont underground, indicating potential for additional ore bodies.

This exploration success highlights the quality of Regis’ assets and technical expertise. Extending mineralisation at existing operations offers low-risk, cost-effective opportunities to enhance mine life and profitability. FY26 exploration expenditure was $74 million, within guidance of $70–80 million, with FY27 guidance set at $80–90 million to support organic growth through new projects and life-of-mine extensions.

Disciplined Capital Allocation Evident in Vault Minerals Acquisition Decision

Regis chose not to counter a competing proposal for Vault Minerals Limited (ASX:VAU), leading to termination of the Scheme Implementation Deed and receipt of a $50 million break fee. Managing Director Beyer acknowledged the disappointment but emphasized that the acquisition terms did not meet Regis’ value and return criteria. Maintaining capital discipline is central to creating long-term shareholder value.

This decision underscores Regis’ focus on organic growth via McPhillamys and optimising existing operations rather than pursuing acquisitions that fail financial hurdles. The $50 million break fee enhances financial flexibility, though the company has not disclosed its intended use. This approach reflects management’s commitment to sustainable shareholder returns through prudent capital deployment.

Strong Safety Record and Increased FY27 Production Guidance of 360–400 Kiloounces

Regis maintained a solid safety performance in FY26, with a lost-time injury frequency rate of 0.30 per million hours. FY27 production guidance, announced on 17 July 2026, targets 360 to 400 kiloounces of gold, exceeding FY26 output. Duketon is expected to produce 240 to 270 kiloounces, while Tropicana (30% owned) is forecast at 120 to 130 kiloounces.

The higher FY27 guidance reflects strategic capitalisation on the gold price environment and operational plans. Duketon production is forecast to rise year-on-year, whereas Tropicana will see reduced open pit output from the Havana pit, increasing reliance on lower-grade stockpile feed. This mix affects per-ounce costs, with group AISC guidance of $2,990 to $3,390 per ounce, including $88 per ounce in non-cash stockpile movement charges. Elevated diesel prices and opportunistic BuckWell ounces also impact costs. The guidance indicates management confidence while acknowledging sector cost pressures.

Capital Investment Focused on Growth and Production Ramp-Up in FY27

FY27 growth capital expenditure is guided at $250 to $270 million, slightly above FY26’s $248 million. Spending is weighted toward the first half of FY27, focusing on near-term development projects such as Rosemont Stage 3 underground, Garden Well paste fill plant, and BuckWell pre-stripping, alongside new open pits ramping up in the second half. These investments aim to sustain and grow production while supporting long-term expansion.

The capital plan reflects confidence in mine economics and near-term projects. Concentrating capital early in FY27 seeks to bring new production online within the financial year. Regis expects to continue tax payments of approximately $20 million monthly through 2026, with a final catch-up payment anticipated in the December quarter, details to be disclosed in the 30 June 2026 annual report.

FY27 Cost Outlook Influenced by Diesel Price Increases and Stockpile Mining

Cost pressures for FY27 include higher diesel price assumptions, increased unit costs at Tropicana due to a shift to lower-grade stockpile feed, and costs associated with opportunistic BuckWell ounces. Diesel prices rose in the FY26 June quarter, contributing to higher AISC, and elevated fuel costs are incorporated into FY27 guidance. The Havana pit’s transition from higher-grade ore to stockpile material impacts cost structure.

These factors reflect typical operational challenges in multi-pit mining. While diesel price rises are beyond company control, Regis provides transparency on cost impacts, including $88 per ounce of non-cash stockpile movement charges in AISC. The company’s ability to sustain profitable operations within the $2,990 to $3,390 per ounce AISC range depends on gold price levels, with margin pressure possible if diesel costs remain high and lower-grade feed reliance extends.

Strategic Positioning Emphasizes Organic Growth Over Acquisitions

Regis Resources holds a strong position in the Australian gold sector, maintaining a debt-free balance sheet and generating strong free cash flow from Duketon and Tropicana. The company’s clear organic growth pathway through McPhillamys and life-of-mine extensions contrasts with acquisition-focused peers. Declining the Vault Minerals acquisition despite financial capacity highlights a disciplined growth philosophy prioritizing high-quality asset development.

Exploration success continues to add mineral resources and extend mine life cost-effectively, reinforcing this strategy. FY26 results demonstrate that disciplined capital allocation and organic growth deliver strong financial outcomes and strategic optionality. Regis’ approach avoids integration risks and value dilution associated with acquisitions at inflated prices, aiming for superior long-term shareholder returns.