PERTH (miningweekly.com) – ASX-listed Regis Resources has reported a 27% decline in net profits after tax for the full year ended June, despite both production and revenues being higher than the 2020 financial year.

Regis on Tuesday reported that gold production for the full year ended June reached 372 870 oz, up from the 352 042 oz produced in the 2020 financial year, resulting in gold sales increasing from A$757-million to A$819-million.

However, all-in sustaining costs for the full year also increased from A$1 246/oz to A$1 372/oz.

During the year under review, Regis spent A$903-million to acquire a 30% interest in the Tropicana gold mine, in Western Australia, from fellow listed Independence Group (IGO). Following the necessary adjustments, the consideration paid to IGO amounted to A$889-million.

The acquisition was funded through a A$650-million equity raising and a A$300-million debt facility.

“Regis Resources has delivered another year of solid production for 2021 generating an earnings before interest, tax, depreciation and amortistaion (Ebitda) of A$403-million, a net profit after tax of A$146-million, a net profit after tax margin of 18% and operating cash flows of A$276-million,” said MD Jim Beyer.

“While delivering this result, Regis executed a genuinely transformational transaction through the acquisition of a 30% interest in the Tropicana gold project which delivers on our strategic objectives to grow as a safe, responsible, reliable, long life, low cost gold producer, generating strong financial returns.

“With this solid performance we are pleased to announce a 3c fully franked final dividend to bring the total dividends declared to 7c per share for 2021 for a solid basic yield of 2.8% and, notably, bring the total dividends declared since 2013 to over half a billion dollars.”

Looking ahead at 2022, Regis has set a group production target of between 460 000 oz and 515 000 oz, at C1 costs of between A$1 070/oz and A$1 135/oz, with the miner planning to spend between A$155-million and A$165-million on growth capital and a further A$72-million on exploration.