Regis Resources has reported a record net profit for fiscal 2020 on the back of robust gold production at its Western Australian operations.
Regis Resources has reported a record net profit for fiscal 2020 on the back of robust gold production at its Western Australian operations.
Regis, which operates the Duketon goldmine, sold 353,182 ounces in the 12 months to June 30 at a high average gold price of $2,200/oz, generating revenue of $757 million – up 16 per cent on FY19.
Its net profit after tax (NPAT) for the first time reached $200 million (up 22 per cent), while underlying earnings also grew to $394 million.
The solid performance allowed the company to declare a final dividend of 8 cents per share, representing a total payout of around $40.7 million. It brings the full-year dividends to 16 cents.
Managing director Jim Beyer said Regis had declared almost $500 million in dividends over the past seven years.
He also said the company made significant investments in FY20.
“While delivering this record profit we also brought into production three new open pits and an underground mine," Mr Beyer said.
“We have made significant investments to increase our mine life by way of the acquisition of nearby high potential land and stepping up our greenfields exploration efforts, while also progressing the significant and valuable McPhillamys project [in NSW].”
Earlier this month, Regis acquired tenement holdings from Cloverdale-based Stone Resources, known as the Ben Her deposit, and subsequently announced expanded group ore reserves of 104 million tonnes.
The company said immediate work on the new tenements would begin post acquisition, including infill drilling to upgrade and extend the Ben Hur deposit, which has an existing 290,000oz mineral resource.
Its exploration landholding in the Duketon Greenstone Belt (DGB) tripled to around 3,000 square kilometres in FY20, covering 93 per cent of the Belt, Regis said.
The company ended the financial year with $209 million in cash and bullion.
Regis expects another strong year of operations in FY21, with higher gold production of between 355,000oz and 380,000oz at a lower all-in sustaining cost (AISC) of $1,230-1,300/oz.
Its shares were down 2.3 per cent at 12:53pm AEST to trade at $5.42 each.
