Regis Resources Limited

Thanks Rachel. Good morning everyone and thanks for joining us on the Regis Resources full year results for FY21. I'd note that the Appendix 4E and report and an accompanying presentation were released earlier today and we may make occasional references to these. So before I hand over to John I'll just touch on some of the key financial elements and then I'll leave it to John where John can discuss the results in more detail. So for FY21 year, we saw gold production of approximately 373,000 ounces at an oil and sustaining cost of $1,372 Aussie an ounce and a C1 cash cost of $1,051 an ounce. Now this drove a net profit after tax of $146 million with a net profit after tax margin of 18%, which reflects the strength of the business. EBITDA was $403 million, with a very strong EBITDA margin of 49%. Cash and bullion, $269 million at year end, and that was after a payment of $61 million in fully franked dividends during the year. A final fully franked dividend of $0.03 per share has been declared by the board. giving a full-year, fully-fixed dividend of $0.07 per share for FY21, giving a basic yield of 2.8% and a grossed-up yield of 4%. Overall, a strong result with another dividend return for our shareholders. So I'd now like to pass it over to John.

Thanks, Jim. FY21 saw a solid performance by Regis with an NPAT of $146 million. a solid net profit margin of 18% and an EPS of 26 cents per share. EBITDA was up 2.3% in FY21 to $403 million with a healthy EBITDA margin of 49%. As previously reported in our quarterly results, cash and bullion sat at $269 million at 30 June 21 with debt of $300 million which we took on as part of the acquisition of 30% of Tropicana which we completed earlier this year. So using those two metrics, net debt sat at $31 million at the 30th of June. A couple of points that I'd like to make in relation to our net profit after tax of $146 million for the year, which was lower than the previous year, primarily due to an increase in the non-cash components of cost of goods sold. Firstly, there was an increase in our non-cash costs for depreciation and amortisation. So if we look firstly at depreciation, we see an increase in depreciation charges of approximately $20 million, which was driven by our first full year of depreciation associated with the Rosemont Underground assets, an increase in right of use asset depreciation, again driven by the first full year of the Rosemont Underground being in commercial production, the commencement of depreciation of the Garden Well Stage 3 TSF during the year, and Of course recognition of depreciation charges for May and June associated with Tropicana property, plant and equipment that we acquired as part of the acquisition that we completed. Secondly we see an increase in amortisation which increased approximately $60 million year on year predominantly because for the last two to three years we've been mining above long strip ratios and the deferred waste associated with that is being amortised. In FY21, we saw a significant capital investment in the company's existing operations. If you look at the cash flow statement in our financial accounts, you can see the payments for mine development of $138 million, and that included significant pre-strip and deferred waste expenditure at the Dugton Open Pits, which obviously needs to be amortised. Again, the first full year of commercial production at the Rosemont Underground, and therefore the first full year of amortisation of capitalised underground costs. as well as the recognition of amortisation charges for May and June associated with our 30% interest in Tropicana. We did also see a 16% increase in our cash costs of production from $307 million to $355 million in FY21 and that was driven by a couple of factors including our production as Jim mentioned at approximately 373,000 ounces was 6% higher than in the previous year. And secondly, we have experienced some increases in our cash costs, primarily being the first full year of Rosemont Underground being in commercial production, whereas in the previous year it was only in commercial production for two months. And we've got two months of cash costs associated with our investment in Tropicana. So if we move over to page four of the presentation, you'll see a summary of our financial results for FY21. As mentioned, we saw a production of approximately 373,000 ounces which was 6% up on the previous year. Again, I'll note that our FY21 figures include two months of production from our 30% interest in Tropicana. We sold 367,285 ounces of gold during the year at an average price of $2,229 an ounce. That is the average price we secured after selling into approximately 80,000 ounces of our most out of the money hedges. I'll expand upon that a bit more later on. We had sales revenue of approximately $819 million in FY21 which was a year on year increase of 8.3%. If we move across to page 5 it's pleasing to see that Regis has again declared a dividend. The final dividend for FY21 is $0.03 per share which results in a total payment for the final dividend of approximately $22.6 million. This is 10% higher than the payment made in respect of the interim dividend paid earlier this year and that's driven by the increased number of shares that the company has on issues following the Tropicana acquisition. At 3 cents per share, this final dividend brings dividends declared for FY21 to 7 cents per share. It gives a basic dividend yield of 2.8% and a grossed-up dividend yield of 4%. It also represents 29.5% of our FY21 net profit after tax and 10.7% of our FY21 EBITDA. It brings the total dividends declared by Regis since 2013 to well over half a billion dollars and indeed that now sits at $532 million in total. As we have noted previously, we will continue to assess the level of future dividends in the context of gold price, operational performance and capital expenditure requirements. Page 6 of the presentation provides a cash flow waterfall that plots our movement in cash and gold on hand across FY21. I'll just talk to a few of those categories. Cash flow from operations of $378 million for FY21 which is the first bar that you'll see is basically cash flow from operating activities shown in the cash flow statement adjusted for income tax and other costs which is primarily head office expenditure which are shown separately in the wall. We've got mine development costs of $138 million. and that primarily relates to pre-strip activities at the Duketon Open Pits, and that's primarily at Moolart Well, Banago and Dogbotta. We've got capitalised deferred waste at the Duketon Open Pits, primarily at Garden Well and Tooheys. We've got capitalised underground costs at the Rosemont Underground and obviously pre-production costs at the Garden Well Underground. In addition to that, we also have deferred waste at Tropicana for the Havana and Boston Shaker Open Pits for May and June. Moving on to the next component of the waterfall, we see exploration and McPhillamy's costs for the year of $45 million and the next bar in the waterfall shows other CAPEX costs of $42 million for the year, which primarily includes two main areas of expenditure. Firstly, there's payments for property, plant and equipment, which was approximately $21 million and that includes TSF3 work undertaken at Garden Well. mill lifters and liners, a new workshop for the Gardenwell underground, portal support works at the Gardenwell underground and electrical substations and fans for the Rosemont underground. The second component of that other capital expenditure which accounts for the balance is finance lease repayments. Moving on to the other category in the cash flow waterfall we see a spend of $10 million and that's primarily corporate overhead. but it does also include a couple of minor adjustments associated with the Tropicana acquisition. What this then shows is that the company's cash and bullion balances increased from $209 million to $353 million before the payment of dividends, taxes and before the impact of any residual funds retained from the capital raising. The waterfall chart clearly shows that Regis continues to be a substantial taxpayer with an actual income tax payment of $77 million for FY21. The next bar shows that while dividend payments were approximately $61 million in total across FY21, some shareholders elected to participate in the company's dividend reinvestment plan leading to a lower cash outflow of $51 million. Finally we have some residual cash retained from the capital rating and this will primarily be used to pay stamp duty associated with the acquisition of Tropicana. I should note that we funded the acquisition of Tropicana through a $650 million equity raise and a $300 million loan. Now clearly we haven't shown those flows on the waterfall as they would make access on the graphs meaningless. So what we have done is show the residual funds that we retain after executing that transaction. And the factors that I've just gone through are really the key drivers behind why the company is sitting with a cash and bullion balance on hand at the end of FY21 of $269 million. Before I hand back to Jim, I'll just talk briefly about the company's hedging and the debt that we have. During FY21 we continued to execute our strategy of selling into our lowest priced hedges and we met the target that we set of selling into 80,000 ounces of those hedges across FY21. This means that our hedges reduced from approximately 399,000 ounces at June 20 to 320,000 ounces at June 21. In late May 2021 we announced that we had changed our hedging structure from spot to third to flat fourth and that did a number of things. Firstly it locked in or it set a goal price for all of our remaining hedges of $15.71 per It moved us to a product that is better understood in the market and it still gives us the flexibility to increase sales into our hedges if we choose to do so. What we have done from the 1st of July is we have increased our sales into our hedges from 80,000 ounces per year or 20,000 ounces a quarter in FY21 to 100,000 ounces per year or 25,000 ounces per quarter across FY22. And finally I note that the company now has $300 million of debt which it put in place to partially fund the acquisition of Tropicana. Subsequent to the end of the financial year the company worked with Bank of America to syndicate the debt for which there was very strong demand and we've previously announced that the syndicate members are now Macquarie, HSBC, NAB and Westpac. And having said that I'll hand back to Jim.

Thanks John. Look, I would just like to take a moment to cover off again on our guidance for FY22. We are expecting a very strong year of growth within our business as production continues to lift at Duketon. And we also see the impacts of a full year of Tropicana starting to come in. So our guidance for gold production, 460,000 to 515,000 ounces across the year. An oil in sustaining cost of $12.90 to $13.65 an ounce, Aussie. Growth capital, a range of $1.55 to $1.65. Exploration across both sites, both Duketon and the Tropicana area, $46 million. And finally, about $26 million at the moment on McPhillamy's. Now look, as we noted previously, the September quarter is expected to be a soft one for Duketon. That's at Duketon. And this is due to, we had some major scheduled mill shutdowns and a motor change out during the month of July. We've also been undertaking some pit rescheduling requirements in the short to medium term. This was due in part to some preventative geotech work on catchment fences that we did both at Rosemont and Garden Well as a preventative action. And also we've just seen a slower than planned ramp up in some of our mining activity, surface mining. We're confident and we know that we'll be able to pick this up, it's just we'll have an impact on this, certainly on this September quarter. And we also see Rosemont underground rebasing into its steady state. We ran it pretty hard during the June quarter. and we've just got to get that back to a stable point and so we're getting some rebasing on Rosemont Underground production. So coming out and closing out on FY21, it was a big year for Regis Resources. The acquisition of 30% interest in the Tropicana Gold Project, clearly very significant. The ramp up of Rosemont Underground, Good thing to see that we're seeing the potential for extensions clearly possible there with our drilling. We're particularly excited about that. We've commenced the garden well underground and plenty of strong indicators of both more material at depth and also potentially an additional mining area just to the north, about 800 or so metres to the north of garden well underground. and that's sitting underneath the main pit, that's looking, certainly got some potential in it as well. Now, this all, we delivered a net profit after tax of $146 million, fully franked dividends of $61 million paid. For FY21, as John mentioned, total declared dividends of $532 million, over half a billion dollars since 2013. And, you know, if you include franking credits, that's three quarters of a billion dollars in value nearly to... to our shareholders. Regis continues to build on its history of growth and dividend return. Last financial year we delivered on major increases and continued to work on growth. We grew Dugden's life through reserved addition and we continue to optimise the operations there. We delivered a step change through the addition of Tropicana We're also anticipating increases in production from this operation coming over the next 12 months or so as we start to round out on the end of the stripping associated with the Havana cutback. We continue to push forward on the next step at Macphilemys and we continue to be convinced that there's still plenty of value to find across the Duketon Greenstone belt as is reflected in our exploration program and funding. And all the while, we're just keeping alert for other external opportunities as well. It's been a big year and we are so much better set up for the future now. And the exciting part is we know that we're only just getting started. So look, on that note, I'd like to hand it back to Rachel and we'll open up for any questions. We can see there's a few there. So back to you, Rachel. Thank you.