Regis Resources (ASX:RRL) reported record profit and cash flow for the December 2026 half-year, supported by what management repeatedly described as a favorable gold price environment and steady operational delivery across its assets.
Record profit and cash build
Managing Director and CEO Jim Beyer said the company delivered “a continuing step up in financial performance” in the half, citing record net profit after tax and record cash flow. The company ended December with AUD 930 million of cash and bullion after building AUD 413 million over six months, and reported it is now debt-free. CFO Anthony Rechichi highlighted the improvement versus the prior year, noting the company had AUD 300 million in debt at December 31, 2024.
Gold sales, cash flow, and income statement highlights
Rechichi said Regis sold 182,000 ounces during the half, realizing “just under AUD 6,000 an ounce” in a rising spot market. Statutory operating cash flow was AUD 639 million, and the company posted a record AUD 323 million net profit after tax, compared with AUD 88 million in the first half of FY2025.
On the income statement, Rechichi said gold sales revenue rose 40%, supported by record spot prices. He added that cost of goods sold was similar to the prior period and finance costs declined following the elimination of debt, while tax expense increased in line with higher pre-tax profits. He also noted cash tax payments are expected to resume next month.
In describing the movement in cash and bullion, Rechichi said operations generated “in excess of AUD 700 million” in the half. He outlined major outflows including:
- AUD 190 million in capital spending, including growth projects
- AUD 39 million in exploration spend
- AUD 10 million at McPhillamys
- AUD 19 million for corporate costs, interest, and facility fees
- A dividend payment of AUD 38 million made in October
Beyer also emphasized that Regis is unhedged, which management framed as a key factor in capturing upside from the current gold price backdrop. Rechichi added that the business has built more than AUD 1 billion in cash and bullion since December 2023.
New capital management policy and dividend increase
Regis announced a new capital management policy intended to formalize shareholder returns while maintaining flexibility to fund operations and growth. Beyer said the policy sets expectations for paying a fully franked ordinary dividend on a semiannual basis, with consideration given to cash and bullion balances, cash flows, franking credits, and other capital allocation priorities.
Under the policy, ordinary dividends are expected to represent 25% to 50% of the group cash increase over the preceding half-year. For the December half, the board declared a AUD 0.15 per share fully franked dividend, totaling about AUD 114 million. Rechichi contrasted this with the AUD 0.05 per share dividend paid in October and said the company looks forward to making franked dividends a regular part of the investment proposition.
During Q&A, management addressed how it arrived at the payout ratio within the new framework. Beyer said the company is factoring in upcoming tax payments, describing current tax obligations as an accrual that will soon convert to cash payments. He suggested this was a key consideration in calibrating near-term dividend levels until Regis returns to a steady rhythm of regular monthly tax installments.
When asked about franking credits, Rechichi said Regis will start paying tax again next month, including what he described as a catch-up for the FY2025 period. Beyer also referenced an expected back-tax payment of around AUD 94 million, which management said would support franking credits, and reiterated the company’s expectation that it can continue paying fully franked dividends so long as it remains profitable and paying tax.
Management said buybacks are included as a consideration within the policy, but Beyer said no decision has been made to undertake a buyback at this time.
McPhillamys timeline and operational cost considerations
McPhillamys was a focal point in analyst questions. Beyer said Regis is pursuing a “two-prong approach” following permitting setbacks, including a judicial review that has been heard in court, with the judge’s decision reserved. He said there is no set timeline, but management hopes for an outcome by mid-year, and later suggested April or May as a possible window—while emphasizing uncertainty.
At the same time, Beyer said the company is evaluating an “integrated waste landform” concept that would press tailings into a “cake” and co-mingle it in a waste rock dump, though he cautioned approvals are not certain. Beyer said Regis does not expect to be in a position to make a final investment decision on McPhillamys until early 2028, and estimated spending of about AUD 60 million over the next couple of years to reach that point, including permitting, legal, environmental, heritage reviews, and engineering work.
On costs and mining conditions, Beyer said the broader cost environment appears generally consistent with CPI, though the company is seeing “hotspots” in labor availability—particularly for experienced underground personnel. He also discussed strip ratio as a key driver for open-pit unit costs and said Regis is evaluating larger cutbacks at Garden Well and potentially Gloster in the current price environment, while noting some opportunities may require 18 months to two years of pre-strip before delivering ounces.
Beyer added that at Buckwell, waste mining is underway in preparation for future production, and said pre-strip before commercial production is treated as growth capital. He also noted the deployment of a large excavator (a “3,600 digger”) at site, which he said can move larger volumes at a materially lower unit cost than before, and that these factors are incorporated in guidance.
Asked about timing, Beyer said Buckwell is expected to enter commercial production “later next year” (referring to the next calendar year).
Closing the call, Beyer said Regis remains on track to meet full-year guidance and reiterated the company’s focus on producing “profitable ounces” while progressing its growth strategy, supported by a strong, debt-free balance sheet and ongoing cash generation.
About Regis Resources (ASX:RRL)
Regis Resources Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in Australia. It owns 100% interests in the Duketon gold project located in the North Eastern Goldfields of Western Australia; and the McPhillamys gold project situated in the Central Western region of New South Wales, as well as holds 30% interest in Tropicana Gold Project. Regis Resources Limited was incorporated in 1986 and is based in Subiaco, Australia.
