Outlook bright for Regis

AFTER more than doubling its dividend, Regis Resources is expecting production growth over the next few years.
Outlook bright for Regis Outlook bright for Regis Outlook bright for Regis Outlook bright for Regis Outlook bright for Regis

Kristie Batten

Revenue for the 2016 financial year was up by 8% to $A500.1 million, but profit after tax jumped 29% to $111.8 million.

Earnings before interest, tax, depreciation and amortisation increased to $234 million, from $181 million, while the EBITDA margin increased to 46.7% from 39%.

Net cash from operating activities jumped by 44% to $204 million.

Regis’ Duketon operations produced 305,084 ounces of gold during FY16, at all-in sustaining costs of $927 an ounce.

As announced at Diggers & Dealers earlier this month, production is set to increase to 300,000-330,000oz this financial year at AISC of $980-1050/oz.

Due to the grade benefits of the new Gloster and Erlistoun pits, FY18 production set to grow to 320,000-350,000oz.

FY19 production will grow again to 340,000-370,000oz.

Regis boosted its reserves by 22% to 2.13 million ounces of gold.

As previously announced, Regis declared a final dividend of 9c per share, for a full-year dividend of 13c per share.

It takes Regis’ fully franked dividend payments to $170 million since 2013.

Regis finished the year with cash and bullion of $122.3 million and no debt.

“The robust cash operating margin has seen cash on the balance sheet build and has underpinned the payment of 13c/share in dividends for the year,” Regis executive chairman Mark Clark said.

“It is also exciting that our organic growth strategies are delivering opportunities to increase reserves and a higher medium-term production outlook.”

Regis shares were unchanged at $3.85 this morning.