PERTH (miningweekly.com) – Gold miner Regis Resources has reported a record profit for the 2018 financial year, as gold production and revenues both climb by 11%.

Profits after tax for the full year to June increased by 26% on the previous financial year, to A$175.2-million, with gold production up to 361 373 oz, and revenues in the same period up from A$542.2-million to A$604.4-million.

The Duketon operations delivered record gold production during the 12 months under review, while increased throughput and higher ore grades from the Gloster and Erlistoun satellite pits also resulted in lower all-in sustaining costs.

Resolute reported earnings before interest, taxes, depreciation and amortisation of A$312.5-million for 2018, up from the A$253.3-million in the previous financial year.

“Once again the strong financial performance reflected in these results demonstrates the quality of the Duketon operations and the team that manage them,” said Regis MD Mark Clark.

“Record gold production at Duketon of 361 373 oz returned record earnings of A$174-million, up 26% from 2017. These strong results and the cash flow generation underpin the payment of a full year franked dividend of 16c a share.

“It was pleasing that the successful exploration effort in 2018 culminated in the decision by the Regis board to approve the development of the Rosemont underground project. This continues the organic growth initiative at Duketon that has delivered year-on-year production growth over the last three years.”

The Regis board in August approved a A$29.4-million investment to develop the Rosemont underground mine, which would exploit a mineral resource of some 1.4-million tonnes, grading 5.1 g/t for 230 000 oz of gold, at a 2 g/t cutoff grade.

The combined openpit and underground mine will deliver some 10.3-million tonnes of ore, at 1.72 g/t for 570 000 oz over the current five-year mine life. The expanded operation will continue at a rate of 2.1-million tonnes a year, with the underground mine contributing between 480 000 t/y and 600 000 t/y.

At the life-of-mine grades of the openpit and underground operation, the combined Rosemont project will produce at a run rate of between 120 000 oz/y and 130 000 oz/y, an increase of between 35 000 oz/y and 45 000 oz/y from the openpit-only operation.