PERTH (miningweekly.com) – Despite a record year of sales, gold miner Regis Resources has reported a statutory net loss of A$24-million for the 2023 financial year, compared with a profit of A$14-million in the previous financial year.

The company said on Thursday that the net loss was primarily a result of a higher cost environment and noncash depreciation and amortisation charges, as well as the writedown of stockpile values.

Regis reported a A$115-million impairment from its hedge book.

Underlying earnings before interest, taxes, depreciation and amortisation reached A$402-million in the year under review, down from the A$410-million in the previous financial year, while cash flow from operations increased from A$347-million to A$455-million.

“The close of FY23 marked the start of transitioning to a cash build phase for Regis’ existing operations. Following a period of significant re-investment for the company we declared commercial production at two of our growth assets, Garden Well underground at Duketon and Havana openpit at Tropicana. We also established a significant exploration target at Garden Well Main at Duketon,” said MD Jim Beyer.

“We are anticipating a modest cash build in FY24, at recent gold pricing, with operating cash flows expected to accelerate in FY25 with completion of the company’s hedge book later this year and the anticipated reduction in waste movement at Havana openpit.

“Following completion of the existing hedge book the company will realise an increase of more than A$150-million in pre-tax cash flow as 100% of production will be exposed to spot gold prices.”

Hedging reduced by 100 000 oz over the year to 120 000 oz as at the end of June, with more than 70% of gold ounces forecast to be sold in 2024 remaining exposed to the spot gold price.

Beyer said that Regis was constructively engaged with its lenders and confident in the company’s ability to extend the maturity date of the existing loan facility.

“In addition, we are progressing well towards finalising our feasibility study and funding strategy for McPhillamys where we are targeting a final investment decision at the end of the June quarter of the 2024 financial year.”

For 2024, Regis is forecasting group gold production of between 415 000 oz and 455 000 oz, at an all-in sustaining cost of between A$1 995/oz and A$2 315/oz.