Regis Resources has delivered its third consecutive quarter of strong cash and bullion build, despite setbacks with its McPhillamys gold project in New South Wales.
“This September quarter was turbulent, with strong business performance combined with very frustrating development at our McPhillamys project,” Regis Resources managing director Jim Beyer said.
Regis Resources operations performed well, with gold production reaching 94,500 ounces at an all-in sustaining cost (AISC) of $2495 per ounce.
The Duketon operation in Western Australia produced 57,500 ounces, while Tropicana – also in WA – contributed 37,000 ounces.
Total gold sales for the quarter amounted to 79,600 ounces, generating $296 million in revenue at an average realised price of $3717 per ounce.
“Our quarterly results clearly demonstrate the significant cash generation capacity of the business with cumulative cashflows of $85 million for the three months,” Beyer said.
“This strong result gave the company, at the end of the September quarter, $380 million of cash and bullion with a balance sheet that is now positive $80 million.”
With ongoing growth projects at Tropicana and the development of underground operations at WA-based Garden Well and Rosemont on track, Beyer said he was confident in the company’s future with its strong cashflow generating position.
“We have the clear potential to deliver further significant amounts of cash to our balance sheet, a situation that positions us well and broadens our options for the next stages of our growth,” he said.
The Federal Government’s Section 10 declaration over a key part of the McPhillamys project site has made the proposed tailings storage facility (TSF) area unusable.
Beyer noted that despite the significant challenges at McPhillamys, the project still holds potential but may take five to 10 years to develop a viable TSF alternative.
“At the same time, we are fully evaluating our legal options regarding this surprising and disappointing decision,” he said.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.