Regis Resources Limited

Thank you for standing by and welcome to the Regis Resources Limited full year results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Jim Beyer, Managing Director and CEO. Please go ahead.

Thanks Sari and welcome everybody to our call on the full year financial results for FY22. Joining me is Elena McCready, our COSEC, Ben Goldbloom, Head of Investor Relations, Tony Bevan, our Interim Chief Financial Officer and Stuart Guler, our Chief Operating Officer. Alright, so you should see on your screen two things. PowerPoint presentation which we'll step through and a photo of myself unfortunately for you. All right, so turning to page slide two please operator. I'd just draw your attention to the cautionary statement. We do make some forward looking comments and discuss targets later on so I'd just draw your attention to that statement. Slide three, thanks. Look, we've had a year of record production, as we've noted earlier, and it's great. It's been our first full year of production from Tropicana, contributing to our performance as well. At the same time, we've been making a considerable investment in the future and our future production levels. Overlaid with this has been a very challenging environment with the impacts of COVID and the inflationary conditions clearly having an impact on our results. on our financial results. Our EBITDA was $336 million, that was after a $74 million write down, giving us an EBITDA margin of about 33%. Our cash flow is still reflecting the strength I think of our operating business, $347 million. We ended the financial year with 30 June of cash and bullion at $231 million and that's getting an AISC through the full year of 1556, giving us a margin of $756 an ounce, but also noting in there that we had $161 million in growth capital through that period as well, as I mentioned before, considerable investment in our future. That led us after a non-cash post-tax adjustment of $60 million to a statutory net profit of $14 million. Now with this context as I mentioned of the external impacts and importantly a couple of aspects here, the conservative nature of our balance sheet and what we see and our board sees as a positive outlook for our operations, the board had confidence in delivering a full year dividend of $0.02 fully frank shares. So that's a bit of a high-level summary of our financials. If we turn to slide four, and I know that today has a focus on our financials, but there's a couple of things I just wanted to touch on around our ESG front. Slide four, please, operator. So the first thing is I just highlight the fact that our safety, as measured by lost time injury frequency rate, quite a pleasing level. I mean, you're never happy until the number is zero, of course, but we do sit more than 40% below the industry average. Our diversity is very strong, I think. We have around about 23% female as a measure of diversity, which is certainly above the industry average, which is sitting a few percent below that. Looking at our environment, we had zero non-compliances and no significant incidents. Pleasingly, I guess, and the one thing I did want to also highlight on this slide was we've approved and are underway with the construction of a nine megawatt solar farm at Duketon. Of course, this has got two advantages to us. No doubt people are pleased to see the impacts of carbon reduction and reducing our carbon intensity over time with this, but also importantly This has a quite significant impact on reducing our power costs as this will be fed into the power grid that we have down at Tukton South. So a great project that will take about 12 months or so to get that online completely, but we're pleased that we've been able to get that one moving. So what I'd like to do at this stage now is hand over to Tony, who will talk through a little bit more of the detail of our results. and background to the full year. Thanks Tony, over to you.

Thanks Jim and if we could turn to slide five please. So this is just a highlight summary and some of the further slides will talk in more detail around the net profit and cash flow but I'll just highlight there the increase in production and revenue. Revenue increased by about 24% over the year and cash flow from operations also increased as well as 347 and I suppose that's largely as a result of the impact of the full 12 months of operations of Tropicana. Just the other point I'll make on figures on this page are that EBITDA for the current year of 336 that's after a $74 million non-cash adjustment for NRV write downs. So if you could just turn to page 6 we'll go into more detail on the net profit result. Profit was obviously below expectation and I suppose that's been impacted by two significant events or two factors. The first is the non-cash write downs and impairment which total $85 million before tax and cost increases that are particularly felt in the second half of the year with fuel and I suppose effects that it has on the broader business as well. So just in terms of the non-cash write downs and impairments totaling $85 million, $74 million of that was a write down of net realisable value of the four stockpiles and the two major factors contributed to this write down. When we reviewed the life of mine in the second half of the year we pushed out the timing for when we were going to process those stockpiles. So as a result by pushing the timing of that processing further out the gold price used in the NRV assessment is slightly lower because it's based on the consensus price. So that has an impact on the NRV assessment. So that was the big factor in the write down and also the other factor is the cost to complete So that was the other factor. So as I said that NRV write down was $74 million and it's a non-cash adjustment which is included in the EBITDA. I'll also just on that slide point out the significantly increased depreciation and amortisation associated with the tropic counter purchase. This obviously does have an effect on net profit but does not impact cash or EBITDA. If we could turn to slide 7. So this is a summary of a waterfall of the cash flow for the year. You can see we started the year at $269 million of cash and bullion on hand and finished the year with $231 million. cash from operations of $378 million. So the operations generated a very healthy cash flow. And then those next three bars, the 219 mine development, the 56 million exploration and McFelineys and the 78 million of other CAPEX, they're all investment in future growth. So we generated $378 million. and we spend $353 million on the future. So I think that's a very positive message. So really that's the cash flow summary for the year and that includes the dividend of $22 million which is paid during the financial year. So if we then turn to slide 8. The cash and bullion balance as I've mentioned is $231 million. In our quarterly report we did highlight the fact that since year end there have been some significant one-off payments which have reduced this cash balance and that related to the payment of the stamp duty on Tropicana and also a property purchase in New South Wales and the total of those two transactions was about $60 million. which has reduced the cash balance since year end. Our net debt is $69 million as of 30 June, so that's made up of the $231 cash and bullion on hand, less the $300 million syndicated finance facility giving you that net debt of $69 million. That $300 million finance facility matures towards the last quarter of FY24 and we're obviously looking at refinancing options associated with the McPhillamy's development. Our hedge book, we reduced the hedge book by 100,000 ounces during the year and so there's 220,000 ounces remaining as of 30 June and that hedge book will be closed out in the next two financial years. So currently 75% of our gold ounces sold are unhedged and exposed to the spot gold price. I'll now hand back to Jim.