Regis Resources: EPS Surges, Cash Flow Soars in First Half 2025

Regis Resources Ltd (RRL), an Australia-based gold producer and explorer, reported a significant financial turnaround in the first half of 2025, with earnings per share (EPS) exceeding analyst expectations. The company's strong performance was driven by record cash flow, increased gold production, and improved operational efficiency.



Record Cash Flow and Profitability

Regis Resources reported a statutory net profit after tax (NPAT) of $88 million for the first half of FY25, up $180 million year-on-year. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $359 million, representing a 46% margin, up $296 million from the previous year. Record cash flow increased by $234 million, bringing total cash and bullion to $529 million.



Gold Production and Costs

Regis Resources produced nearly 196,000 ounces of gold, which was in line with expectations. The company's all-in sustaining cost (AISC) was $2,403 per ounce, indicating efficient and cost-effective operations. Gold sales revenue rose to $777 million, up $227 million, from 197,690 ounces at an average price of $3,932 per ounce.

Debt Management and Financial Flexibility

Regis Resources repaid its $300 million term loan facility in full and established a $300 million standby Revolving Credit Facility on improved terms. This improved debt management has enhanced the company's financial flexibility and liquidity, which are crucial for long-term sustainability.

Safety Performance and Exploration Success

The company achieved a low lost time injury frequency rate of 0.4, well below industry averages, indicating strong safety performance. Regis Resources has a history of consistent exploration success and targeted acquisitions, which have contributed to its reserve growth and production. As the company continues to explore and acquire new assets, it can maintain and even enhance its operational performance and profitability.

Dividend Policy and Cash Tax Payments

The board decided not to pay a dividend for the first half, prioritizing debt repayment instead. There are currently no franking credits available, which may impact future dividend payments. However, the company expects to start making cash tax payments in February 2026, which could potentially restart dividend payments.

Analyst Coverage and Price Targets

Analyst coverage for Regis Resources is good, with a future return on equity forecast of 11.1% in 3 years. The company's earnings growth rate is 38.9%, and its EPS growth rate is 38.6% per year. The average price target for the stock has been strongly revised upwards over the last four months, reflecting analysts' optimism regarding the company's growth prospects.



In conclusion, Regis Resources' strong earnings growth and cash generation in the first half of 2025 compare favorably to its historical performance and industry peers. The company's improved operational performance and profitability are sustainable in the long term, driven by key factors such as gold production, cost management, debt management, safety performance, and exploration success. Investors should monitor the company's dividend policy and cash tax payments, as well as its growth prospects and analyst coverage, to make informed decisions about their portfolios.