REGIS RESOURCES LIMITED — Annual Report 2021

Aug 30, 2021

31 August 2021

Manager Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

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ABN 28 009 174 761 www.regisresources.com Level 2, 516 Hay Street Subiaco WA 6008 Australia P 08 9442 2200

NET PROFIT AFTER TAX OF $146 MILLION AND A FINAL FULLY FRANKED DIVIDEND OF 3 CENTS PER SHARE

Key Points (All figures expressed in Australian dollars unless stated otherwise)

• Net profit after tax of $146 million , with a net profit after tax margin of 18% reflecting the strength of the business

• Revenue of $819 million from 367,285oz of gold sold at an average price of $2,229/oz

• EBITDA of $403 million with a very strong EBITDA margin of 49%

• Cash flows from operating activities of $276 million

• Cash and bullion of $269 million[1] after the payment of $61 million in fully franked dividends

• Final fully franked dividend of 3 cents per share declared for a full year fully franked dividend of 7 cents per share for FY21 for a basic yield of 2.8% and a grossed up yield of 4.0%[2]

• Gold production of 372,870oz for FY21 at an All in Sustaining Cost of $1,372/oz

• Solid production guidance for FY22 at Duketon and a full year of production from Regis’ 30% interest in Tropicana results in gold production increasing to 460,000-515,000 oz at an AISC of $1,290-$1,365/oz

Comment

Managing Director, Mr Jim Beyer commented: “Regis Resources has delivered another year of solid production for FY21 generating an EBITDA of $403 million, a net profit after tax of $146 million, a net profit after tax margin of 18% and operating cash flows of $276 million. 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 3 cent fully franked final dividend to bring the total dividends declared to 7 cents per share for 2021 for a solid basic yield of 2.8% (or 4.0% grossed up)[2] and, notably, bring the total dividends declared since 2013 to over half a billion dollars.”

1 Includes bullion on hand classified as inventory and valued as at 30 June 2021 at $2,337 per ounce

2 Grossed up for 100% franking. Annualised dividend yield of 7cps at a closing share price of $2.49 on 27 August 2021

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The board of Regis Resources is pleased to announce a strong full year net profit after tax of $146 million for the year ended 30 June 2021.

As a result of the ongoing strong financial performance of the Company, the Board has declared the following fully franked final dividend:

• Dividend amount 3 cents per share fully franked

• • Ex-dividend date 13 September 2021 • Record date 14 September 2021 • Dividend Reinvestment Plan Election Date 15 September 2021 • Payable date 28 September 2021

Regis has continued its Dividend Reinvestment Plan (DRP) which allows existing shareholders to invest their dividends back into the Company with no fees, brokerage or other transaction costs on shares acquired under the DRP.

Details of the DRP, along with the DRP rules were announced to the ASX on 26 August 2020.

The full year dividend of a fully franked 7 cents per share represents a payout ratio of 29.5% of NPAT and 11% of EBITDA[3] .

A summary of the financial results is presented in Table 1:

	Unit	Full Year 30 Jun 21	Full Year 30 Jun 20	Change %
Gold sales Profit before tax Profit after tax Basic earnings per share	$m $m $m cents	819 212 146 26.4	757 285 200 39.3	+8% -26% -27% -33%
Dividends	$m	61.3	81.3	-25%
Basic dividend yield	%	2.8	2.9	-3%
Grossed up dividend yield	%	4.0	4.1	-2%

Table 1. Key Financial results FY21 and FY20

A summary of the operating results is presented in Table 2. Further information is included within the Directors’ Report.

	Unit	June 2021	June 2020
Ore mined	mbcm	4.1	4.2
Waste mined	mbcm	28.3	26.4
Stripping ratio	w:o	7.0	6.3
Ore mined	mtonnes	10.1	10.0
Ore milled	mtonnes	9.9	9.4
Head grade	g/t	1.27	1.25
Recovery	%	91.6%	93.5
Gold production	oz	372,870	352,042
Cash cost pre royalty	A$/oz	1,051	914
All in Sustaining Cost4	A$/oz	1,372	1,246

Table 2. Key Operating results for FY21 and FY20.

3 EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortisation. EBITDA is non-IFRS financial information and is not subject to audit.

4 AISC calculated on a per ounce of production basis

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Summary of key points:

• Net profit after tax of $146 million.

• Acquisition of 30% interest in the Tropicana Gold Project funded through a $650 million equity raising and a $300 million debt facility.

• Net debt position of $31.3 million as at 30 June 2021[5] .

• Fully franked dividends of $61 million paid during FY21, bring total declared dividends declared since 2013 to $532 million.

• Cash and bullion of $269 million as at 30 June 2021 (30 June 2020: $209 million) after payment of $61 million in dividends, $77 million in income tax, $44 million on exploration expenditure and the McPhillamys Gold Project and $130 million in capital expenditure for future production in pre-strip costs, deferred waste costs and capitalised underground costs across the Company’s operations at Duketon and Tropicana.

• Hedging reduced from approximately 399koz at 30 June 2020 to 320koz as at 30 June 2021. Hedging simplified through the move from spot deferred hedging to flat forward hedging during the year.

GUIDANCE FOR FY22

A solid year of production is expected at Duketon in FY22 with a significant increase in total group production driven by Regis’ 30% interest in Tropicana.

The FY22 key guidance elements are:

	Duketon	Tropicana (30%)	Group
Production (oz)	340,000-380,000	120,000-135,000	460,000-515,000
C1 Cash Costs ex. royalty($/oz)	1,080 –1,140	1,045-1,125	1,070-1,135
AISC ($/oz)	1,340 – 1,410	1,140 – 1,230	1,290-1,365
Growth Capital ($M)6	85-90	70-75	155-165
Exploration and McPhillamys ($M)	35	8	727

Table 3. FY22 Guidance

As noted previously, the September quarter is expected to be soft due to major scheduled mill shutdowns, pit re-scheduling requirements and Rosemont underground rebasing into its steady state production rates.

5 Based on cash and bullion on hand of $268.7 million at 30 June 2021 and long-term debt of $300 million

6 Growth Capital includes open pit and underground pre-production mining costs, pre-strip costs, camp expansion costs and other growth-related project and property, plant and equipment costs

7 Group includes guidance for expenditure associated with McPhillamys of $29 million for FY22

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