Regis reports record result

RECORD production and costs for the 2018 financial year has carried over into Regis Resources’ full-year financial results.
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Gold from Duketon

Full-year revenue rose by 11% to A$604.4 million, thanks to an 11% rise in gold production to 361,373 ounces.

Profit after tax jumped by 26% to a record $174.2 million, while earnings per share were up by 25% to 34.6c.

EBITDA rose from $253.3 million to $312.5 million, while the EBITDA margin rose from 46.6% to 51.5%.

Net cashflow from operations rose by 26% to $259.7 million.

The numbers were largely in line with market consensus.

Regis declared a fully franked final dividend of 8c per share, taking the full-year payout to 16c, up from 15c a year earlier.

It equates to a 4% dividend yield, and represents 13.4% of revenue and 25.8% of EBITDA.

Regis is a leading dividend-payer in the gold sector, returning $326 million to shareholders since 2013.

The company closed the financial year with cash and bullion on hand of $208.8 million.

Regis executive chairman Mark Clark said the strong performance again demonstrated the quality of the company's Duketon operations and the team that manage them.

"These strong results and the cashflow generation underpin the payment of a full year fully franked dividend of 16c per share," he said.

"It was pleasing that the successful exploration effort in 2018 culminated in the decision by the Regis board to approve the development of the Rosemont underground project.

"This continues the organic growth initiative at Duketon that has delivered year on year production growth over the last three years."

Development on the $29.4 million Rosemont underground will begin this quarter, while outside the flagship Duketon operations, Regis will progress the 200,000oz per annum McPhillamys project in New South Wales.

Permitting is advanced and Regis is aiming to complete a definitive feasibility study by the end of the year.

Duketon is forecast to produce 340,000-370,000oz at all-in sustaining costs of $985-1055/oz this financial year.

Shares in Regis rose by 2.3% in early trade to $4.08, valuing the company at more than $2 billion. The stock traded as high as $5.30 last month.