The following is a summary of the Regis Resources Limited (RGRNF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Regis Resources produced 221,000 ounces of gold at an all-in sustaining cost of AUD2,119 an ounce in H2 2024.
The company closed out their hedge book in December, expecting to improve profitability and cash flow at current gold price levels.
Statutory cash flows from operations were AUD126 million, with underlying EBITDA of AUD167 million.
Despite an increase in the cash and bullion balance by AUD90 million in the half-year, it was impacted by hedge deliveries and hedge book buyout costs, totaling AUD179 million, leading to a period end balance of AUD155 million.
The underlying business had a pre-tax profit of AUD47 million, but due to various factors, the net loss after tax totaled AUD92 million.
Business Progress:
The company made progress on the Garden Well South Underground mine and the Havana open pit cutback.
The company is targeting a production capacity of 500,000 ounces per year through the steady state of Duketon and Tropicana, and the McPhillamys project.
Two potential underground projects at Rosemont Stage 3 and Garden Well Main are in the final evaluation stages.
The company is awaiting a final investment decision on the McPhillamys project.
The company closed their hedge book and are now fully exposed to the upside potential of the gold price.
The company is on track to meet its full-year guidance with investments in mine development, exploration, the McPhillamys project, and other plant and equipment.
Improved cash generation is expected in the future, with a potential AUD20 million tax refund in the second half of the financial year.
More details: REGIS RESOURCES LTD IR
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