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REGIS RESOURCES LIMITED Earnings Release 2011
65733_rns_2011-09-19_6ba7184d-72ba-4977-b85b-7c03f618e4d1.pdf
Earnings Release
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20 September 2011
Manager Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000
Level 1 1 Alvan Street Subiaco WA 6008 Australia
PO Box 862 Subiaco WA 6904 Australia
P 08 9442 2200 F 08 9442 2290
REGIS RECORDS MAIDEN PROFIT AFTER COMMENCEMENT OF OPERATIONS AT MOOLART WELL F 08 9442 2290
The board of Regis Resources Limited is pleased to announce a maiden profit after tax of $36.3 million for the year ended 30 June 2011. The Company completed the successful transition from explorer to producer with the commencement of operations at Moolart Well in September 2010.
Summary of financial results:
| Year to30 June 11$'000 | Year to30 June 10$'000 | Change | |
|---|---|---|---|
| Gold sales | 107,924 | - | +107,924 |
| Profit/(loss) before tax | 36,281 | (18,829) | +55,110 |
| Profit/(loss) after tax | 36,281 | (18,829) | +55,110 |
| Earnings per share(cents) | 8.54 | (5.58) | +14.12 |
HIGHLIGHTS
• The operating results at the Moolart Well Gold Mine from the commencement of operations late in the September 2010 quarter to 30 June 2011 were as follows:
| Ore mined (tonnes) | 2,027,872 |
|---|---|
| Ore milled (tonnes) | 1,972,179 |
| Head grade (g/t) | 1.40 |
| Recovery (%) | 91 |
| Gold production (ounces) | 80,918 |
| Cash cost of production - pre royalty ($) | 545 |
- Gold sales of 72,342 ounces at an average delivery price of A$1,402 per ounce.
- Cash and gold bullion holdings of $33.9 million at 30 June 2011.
- JORC gold reserves stand at 49.4 million tonnes at 1.50g/t Au for 2.38 million ounces of gold.
- JORC gold resources stand at 164.1 million tonnes at 1.10g/t Au for 5.8 million ounces of gold.
OUTLOOK
• Definitive Feasibility Study completed at the Garden Well Gold Project demonstrating a very robust project as follows:
| Mining | ||
|---|---|---|
| Ore mined | bcm | 13,074,000 |
| Waste mined | bcm | 45,690,000 |
| Stripping ratio | w/o | 3.49 |
| Milling | ||
| Tonnes milled | Tonnes | 35,061,000 |
| Grade | g/t | 1.46 |
| Recovery | % | 95 |
| Recovered gold | Ounces | 1,568,046 |
| Annual throughput | Tonnes | 4,000,000 |
| Project life | ||
| Mine life | years | 9 |
| Max annual production | ounces | (yr 1) 247,000 |
| Average annual production | ounces | 180,000 |
| Financial Analysis (gold price US$1,250, aud:usd 0.90) | |||||
|---|---|---|---|---|---|
| Revenue | $'000 | 2,195,000 | |||
| Net cash flow (after capex, before tax) | $'000 | 1,051,000 | |||
| NPV @ 6% (after capex, before tax) | $'000 | 750,000 | |||
| IRR | % | 143 | |||
| Payback period | Months | 7 |
- Forecast operating cash cost before royalties of $555 per ounce.
- Development of the Garden Well Gold Project underway with first gold production forecast for early in the September 2012 quarter.
- Successful development of the Garden Well Gold Project will take total Regis gold production to around 350,000 ounces for fiscal year 2012/13. This will elevate Regis in to the mid tier of world gold producers.
Yours sincerely REGIS RESOURCES
Mark Clark Managing Director
The technical information in this report has been reviewed and approved by Mr Morgan Hart who is a member of the Australasian Institute of Mining and Metallurgy. Mr Hart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Morgan Hart is a director and full time employee of Regis Resources Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.