Regis Resources (ASX: RRL) – ownership of Albany Fraser Belt

 

COMPANY SCOREBOARD

Pro PlusProCon PlusCon
  • Larger mills, larger production (500koz)
 
  • Uncertain valuation on McPhillamys Project NSW
  • Decreasing ore reserves
  • Every low gold hedge price to churn through in FY24
  • Larger depreciation
  • Some debt

ABOUT COMPANY

Regis Resources (RRL) (https://regisresources.com.au/) develops the Duketon Gold Project in the Eastern Goldfields of WA. It also owns a 30% interest in the Tropicana Gold Project. Additionally, the company owns the McPhillamys Gold Project in NSW which has been in licensing stage.

In 2021, the company purchased the 30% stake in the Tropicana Gold Mine from IGO for $903m.

CAPITAL STRUCTURE

The company borrowed $300m@BBSY+2% for Tropicana purchase due June 2025, but McPhillamys DFS is delayed.

FLAGSHIP ASSETS

Duketon Gold Project Laverton WA

Annual production of 300k-350k oz from the 10.5Mpta mill at ASIC of around $1,750 (to be updated).

Tropicana Gold Project WA (30%)

Annual production of 120k-150k oz at ASIC of around $1,100 (to be updated).

Below are the company’s reserves:

OTHER ASSETS

McPhillamys Gold Project NSW

BFS is expected in June 2024, but the estimated total capital cost is to be above $1.1b.

SUMMARY

Twiggy Forrest wanted to take his position to 20% at $1.48.

ASIC cost is around $2,300, but over $850 for D&A. Thus, the $1.6m existing WA reserve will generate around $550m profit.