25/02/2021 - 15:30

Regis posts mixed first-half results

25/02/2021 - 15:30

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Goldminer Regis Resources has reported a 9 per cent drop in first-half net profit despite recording higher revenue, while halving its interim dividend.

Regis posts mixed first-half results
Regis is expanding its Duketon operations in WA with its Garden Well underground development. Photo: Regis Resources

Goldminer Regis Resources has reported a 9 per cent drop in first-half net profit despite recording higher revenue, while halving its interim dividend.

Regis reported revenue of $401 million at December 2020, up 8 per cent on the same time last year.

The rise can be attributable to a higher gold price, with 172,990 ounces sold at an average price of $2,317/oz compared with 182,807oz sold at an average $2,063/oz in HY20.

Regis’ earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $198.6 million, up 7 per cent.

Meanwhile, the company reported a 9 per cent decline in net profit after tax, to $84.8 million.

But managing director Jim Beyer said Regis had delivered solid results, which also included operating cash flows of $147.8 million – a slight uptick on HY20.

The business is currently awaiting approval from the NSW Department of Planning, Industry and Environment to develop its McPhillamys project.

Regis expects to make a final investment decision for the project upon receiving the approval.

"In the meantime, we continue to ramp-up preparations for the development of the project," Mr Beyer said.

He said Regis, given the capital expenditure required, would pay a fully franked, interim dividend of 4 cents per share – down from 8 cents at HY20.

The business is also developing its Garden Well underground mine in Western Australia, which will become the company’s second mine at its Duketon operations, where Regis recently produced 91,411oz.

The company also expanded its landholding within the Duketon Greenstone Belt after acquiring a tenement package, known as Ben Hur, from Stone Resources Australia in a deal worth $10 million plus royalties.

Regis ended the first half with cash and bullion of $220 million.

Its shares closed down nearly 8 per cent to trade at $3.05.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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