Impairments push Regis Resources to full-year loss
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The news: Gold producer Regis Resources has swung to a full-year net loss on the back of hedging costs and impairments against its under development McPhillamys project in New South Wales.
The numbers: The company reported a net loss of $186.02 million for the year to 30 June, 2024, wider than the $24.33 million loss a year ago.
This was a result of an impairment of $192 million for McPhillamys — $81 million in pre-tax costs of hedge deliveries and another $98 million to close out its hedge book.
Revenue for the year rose 11% to $1.26 billion and the company will not pay any dividend for the year.
The context: Regis has written down the carrying value of the under development McPhillamys after an environmental protection declaration by the federal government earlier this month, which the company says makes the project unviable. The company also closed out its hedge book in December 2023, benefiting from significant cash flow in the second half of the year.
The company now expects full-year production between 350,000 and 380,000 ounces in FY25 with an all-in-sustaining cost in the range of $2,440 to $27,40 per ounce.
The source: ASX announcement
