Regis cancels dividend after first-half profit drops

Goldminer Regis Resources has said it won’t declare an interim dividend for the 2022 financial year after its first-half profit fell almost 70 per cent.

The company's statutory net profit after tax was $26.5 million at December 31, down from $84.4 million at the end of 2020.

That’s despite a 21 per cent lift in revenue to $489 million and steady earnings before interest, tax, depreciation, and amortisation (EBITDA) of about $196 million.

Regis had sold 217,000 ounces of gold in the six months to December, with its Western Australian operations comprising the Duketon mine near Laverton and a 30 per cent stake in the Tropicana joint venture northeast of Kalgoorlie.

The company had paid $903 million for the Tropicana interest to IGO in April 2021.

Regis managing director Jim Beyer said Tropicana was delivering on the company’s expectations and transitioning back to its historical run rate of between 450,000 ounces and 500,000oz per annum, whilst flagging a stronger second half at Duketon.

“After considering the first half of FY22 operating and financial performance along with the ongoing capital investment activity at both Duketon and Tropicana, the board has decided not to declare an interim dividend,” he said.

Regis will consider a full-year dividend at the end of the financial year, which Mr Beyer said will take into account future capital requirements at the company’s McPhillamys and Garden Well projects, located in NSW and WA.

The company ended the half year with cash and bullion of $108 million (following $22 million in dividend payments in FY21) and net debt of $120 million.

Shares in Regis dropped 2.9 per cent this afternoon, closing at $1.97.