Regis Resources Ltd (RGRNF) (Half Year 2026) Earnings Call Highlights: Record Profits and …

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Thu, February 19, 2026 at 4:01 PM GMT+9 4 min read

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**Gold Production:** Nearly 187,000 ounces at an all-in sustaining cost of $28.50 per ounce.

**Net Profit After Tax:** $323 million, a record and up 267% from the previous corresponding half.

**Operating Cash Flow:** $639 million statutory operating cash flow.

**Cash and Bullion:** $930 million at the end of December 2026, with a 306% increase in net cash and bullion.

**Gold Sales Revenue:** Up 40% due to record spot gold prices.

**Dividend:** $0.15 per share fully franked dividend, totaling about $114 million.

**Capital Expenditure:** $190 million spent on capital, including growth projects.

**Exploration Expenditure:** $39 million.

**Corporate Costs, Interest, and Fees:** $19 million.

**Debt Status:** Debt-free as of December 2026.

Warning! GuruFocus has detected 13 Warning Signs with APAJF.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Regis Resources Ltd (RGRNF) reported a record net profit after tax of $323 million, a significant increase from $88 million in the first half of FY25.

The company is debt-free, with a strong balance sheet and $930 million in cash and bullion, reflecting a $430 million increase over six months.

A new capital management policy has been formalized, allowing for regular, fully franked dividend payments, with a $0.15 per share dividend declared for the half.

Gold production and all-in sustaining costs were in line with expectations, with nearly 187,000 ounces produced at an all-in sustaining cost of $28.50 per ounce.

The company has generated over $1 billion in cash and bullion since December 2023, demonstrating strong cash-generating capacity.

Negative Points

The McPhillamys project faces delays due to ongoing legal proceedings, with no final investment decision expected until early 2028.

There are significant upcoming tax payments, including a $94 million back tax for FY25, which will impact cash flows.

The company faces potential cost pressures, particularly in underground operations, due to personnel availability and rising costs.

Future capital demands, such as the McPhillamys project, could require significant investment, potentially impacting cash reserves.

The company has not yet identified any suitable M&A opportunities, which could limit growth prospects if internal projects face delays.

Q & A Highlights

Q: What is the update on the McPhillamys project, and what are the expected timelines for its development? A: Jim Beyer, CEO, explained that the McPhillamys project is currently undergoing a judicial review due to perceived procedural missteps. A decision is expected by mid-year. Additionally, there is an opportunity to optimize the project through an integrated waste landform approach, but this will take time. The company anticipates making a final investment decision by early 2028, with an estimated $60 million to be spent over the next couple of years to reach that point.

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Q: Can you provide details on the current balance of franking credits and the company’s approach to dividend payments? A: Anthony Rechichi, CFO, stated that the company will resume tax payments next month, which will allow for fully franked dividends. The policy is to continue paying fully franked dividends as long as the company remains profitable and pays taxes. Jim Beyer added that the company is comfortable with the current franking credit situation and that share buybacks are a consideration but not currently planned.

Q: What factors influenced the payout ratio for the recent dividend, and how does the company approach capital management? A: Jim Beyer explained that the payout ratio considers cash build and upcoming tax obligations. The company is cautious about maintaining a balance between dividends and tax payments. The recent payout was slightly higher than the calculated percentage due to these considerations.

Q: Are there any significant cost pressures or changes in the cost environment that Regis Resources is facing? A: Jim Beyer noted that cost pressures are generally consistent with CPI, with some hotspots in personnel availability, particularly in underground operations. The company is exploring options to manage costs, such as using larger equipment to reduce unit costs, and is evaluating potential capital expenditures that could be justified by the current gold price.

Q: How does the company view debt in relation to its capital management policy, and would debt affect dividend payments? A: Jim Beyer stated that while the company is currently debt-free, having some debt in the future is reasonable and would not necessarily prevent dividend payments. The company aims to maintain a balance between debt and dividends, ensuring responsible financial management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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