Regis posted a full-year net profit after tax of A$138.2 million, up 24% over the previous financial year and in line with analyst consensus.

Revenue rose by 8% to $542.2 million due to a 6% increase in the average gold price to $1691 an ounce and a 6% increase in gold production to 324,353 ounces.

Earnings before interest, tax, depreciation and amortisation rose by 8% to $253.3 million, while the EBITDA margin of 46.6% was in line with FY16.

Regis declared a final dividend of 8c per share, taking full-year dividends to 15c per share, a 15% increase.

The full-year dividend represents a payout ratio of 14% of revenue and 54% of NPAT.

Regis had cash and bullion of $151.7 million at the end of June.

Regis executive chairman Mark Clark said the result was a reflection of the organic growth strategy pursued over the past two years.

“The introduction of higher grade ore from our satellite projects has delivered record annual production in FY17 and a 24% increase in earnings to $138 million,” he said.

“The robust cash operating margin continues to see cash build on the balance sheet and has underpinned a full-year dividend of 15c per share for FY17.”

Guidance for FY18 is 335,000-365,000oz at all-in sustaining costs of $940-1010/oz.

Clark said exploration around the Duketon operation would continue to further extend life, while a maiden reserve estimate for the McPhillamys project in New South Wales was “imminent”.

Clark told reporters earlier this month at Diggers & Dealers that the reserve would show that McPhillamys could be a long-life project for the company.

A definitive feasibility study for the project is due later this year.

Blue Ocean Equities analyst Steuart McIntyre is forecasting a 180,000oz per annum project at AISC of $1000-1100/oz over 8-10 years with capital costs of around $230 million.

Regis shares jumped by 4.4% to $4.125 after reaching a 52-week high of $4.15 earlier this morning.