CAPITAL MARKETS

Outlook bright for Regis

AFTER more than doubling its dividend, Regis Resources is expecting production growth over the ne...

Kristie Batten
Outlook bright for Regis

Revenue for the 2016 financial year was up by 8% to $A500.1 million, but profit after tax jumped 29% to $111.8 million.

Earnings before interest, tax, depreciation and amortisation increased to $234 million, from $181 million, while the EBITDA margin increased to 46.7% from 39%.

Net cash from operating activities jumped by 44% to $204 million.

Regis’ Duketon operations produced 305,084 ounces of gold during FY16, at all-in sustaining costs of $927 an ounce.

As announced at Diggers & Dealers earlier this month, production is set to increase to 300,000-330,000oz this financial year at AISC of $980-1050/oz.

Due to the grade benefits of the new Gloster and Erlistoun pits, FY18 production set to grow to 320,000-350,000oz.

FY19 production will grow again to 340,000-370,000oz.

Regis boosted its reserves by 22% to 2.13 million ounces of gold.

As previously announced, Regis declared a final dividend of 9c per share, for a full-year dividend of 13c per share.

It takes Regis’ fully franked dividend payments to $170 million since 2013.

Regis finished the year with cash and bullion of $122.3 million and no debt.

“The robust cash operating margin has seen cash on the balance sheet build and has underpinned the payment of 13c/share in dividends for the year,” Regis executive chairman Mark Clark said.

“It is also exciting that our organic growth strategies are delivering opportunities to increase reserves and a higher medium-term production outlook.”

Regis shares were unchanged at $3.85 this morning.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.