Regis Resources Ltd.

Regis Resources Ltd. is a mid-tier gold producer headquartered in Subiaco, Australia, operating primarily in Australia. The company's portfolio consists of 3 projects, comprising 2 operating mines and 1 development project. Key assets include Duketon and Mcphillamys. The business model is centered on being a large, unhedged producer, providing direct exposure to commodity price fluctuations by selling 100% of its output on the spot market. Operations are characterized by a hub-and-spoke model, utilizing multiple large-scale processing plants to treat ore from a portfolio of open-pit and underground sources. This integrated infrastructure allows for the blending of different ore types and grades to optimize mill feed and maximize recovery. A key operational characteristic is the systematic management of assets through their full life cycle, including transitioning mature operations to care and maintenance after resource depletion. The company is currently executing a strategic shift to increase the proportion of ore sourced from underground operations, developing new subterranean mining areas beneath existing open-pit footprints. This approach leverages existing infrastructure and geological knowledge to unlock value from deeper resources. The operational framework is designed to generate significant cash flow with meaningful leverage to market conditions, supported by a portfolio of assets located exclusively within Tier-1 jurisdictions.

The corporate strategy is focused on creating value through a disciplined approach to organic growth and operational excellence. A primary strategic pillar is the expansion of underground mining activities to extend the life of existing operational centers and increase production from higher-grade sources. This involves a multi-year plan to develop at least 4 new or extended subterranean operations, supported by a significant exploration budget with over 243 kilometers drilled in FY24. Exploration efforts are twofold, targeting both near-mine resource definition to support life-of-mine extensions and regional drilling to identify new, large-scale discoveries. A pivotal strategic decision in FY24 was the closure of the company's legacy hedge book, transitioning the enterprise to a fully unhedged status to maximize exposure to spot market pricing. This move is central to the objective of strengthening the balance sheet and enhancing operating cash flow. Capital management strategy prioritizes balance sheet strength and internal investment, as demonstrated by the FY24 decision to forgo a dividend in favor of funding growth initiatives and maintaining ample liquidity. The long-term objective is to build a profitable and sustainable mid-tier company by delivering value from existing operations while assessing opportunities for inorganic growth.

Executive leadership is composed of seasoned industry professionals with extensive technical and operational experience. The Chief Executive Officer, a mining engineer with nearly 40 years in the sector, has a background managing some of the industry's largest operations. The Chief Operating Officer, also a mining engineer with approximately 4 decades of experience, has held executive roles across global underground and open-pit operations. The board of directors consists of 6 members, with 33% female representation, and is led by an independent Non-Executive Chairman with a deep background in resource sector corporate finance. Governance is structured through 3 primary committees: Audit; Remuneration, Nomination and Diversity; and Risk, Safety, Environment and Community, ensuring specialized oversight. The remuneration framework, guided by an independent committee and external consultants, emphasizes alignment with shareholder interests by heavily weighting compensation towards at-risk, long-term incentives in the form of performance rights. This structure is designed to attract and retain high-caliber executives while driving performance against strategic goals. The board actively guides capital allocation, as shown by its decision to prioritize balance sheet strength and internal investment over dividend payments in FY24.

The organization's sustainability efforts are demonstrated through specific, measurable initiatives in environmental stewardship, social responsibility, and safety. A key environmental commitment is the transition to renewable energy, evidenced by the commissioning of a 9MW solar farm at one site and the ongoing construction of a 62MW hybrid wind, solar, and battery system at another. Land rehabilitation is a significant focus, with 203 hectares restored in FY24, marking a 400% increase over FY22 performance. In workplace safety, the company achieved a Lost Time Injury Frequency Rate of 0.0 over the last 12 months and implemented the "Safe2Say" anonymous reporting platform to enhance its whistleblower program. Social commitments include establishing formal Working Together and Cultural Heritage Agreements with traditional landowner groups to ensure respectful engagement. The company also promotes diversity, achieving 22% female representation among employees and 33% on its board of directors. Governance practices are strengthened by a formal Tax Risk Governance Framework designed to maintain a low-to-medium tax risk profile. A significant portion of procurement, 99%, is directed to local businesses within its operating jurisdiction, supporting community economic development.

The corporate structure includes a significant joint venture arrangement where the company holds a 30% interest in an operation managed by its partner, AngloGold Ashanti. This partnership, formed through an acquisition in 2021, is a key component of the company's portfolio. A notable structural issue is the ongoing legal proceeding initiated by South32 against IGO, the former owner of the 30% interest, concerning a royalty agreement. Regis was formally joined to these proceedings in July 2024 and assumed liability for the royalty to the extent it applies post-acquisition. The company's ownership is characterized by significant institutional investment, with 4 entities identified as substantial shareholders as of September 2024: Van Eck Associates Corporation (8.8%), Dimensional Fund Advisers LLP (6.4%), The Vanguard Group (5.3%), and State Street Corporation (5.0%). The group's operational activities are conducted through several wholly owned subsidiaries, including Duketon Resources Pty Ltd, Rosemont Gold Mines Pty Ltd, and LFB Resources NL. Nominee companies, including HSBC CUSTODY NOMINEES, CITICORP NOMINEES, and J P MORGAN NOMINEES, hold a combined majority of the shares on behalf of various beneficial owners.