2013 A N N U AL R EP O RT
ABN 28 009 174 761
AND ITS CONTROLLED ENTITIES
REPORT TO
SHAREHOLDERS
FOR THE YEAR
ENDED 30 JUNE 2013
01
03
Chairman’s Report
Highlights
05
Corporate
06
Moolart Well
Operations
07
Garden Well
Operations
08
09
15
Rosemont
Development
Reserves and
Resources
Gold
Exploration
19
Gold
Reserves
20
Gold
Resources
21
Directors’
Report
40
Corporate
Governance
Statement
45
Financial
Statements
Chairman’s Report
Dear Shareholder,
I am pleased to report that 2013 was a good
year for Regis as the Company became a
multi-operation gold producer.
The year was one of significant production growth for
Regis resulting in a net profit after tax of $146 million.
This record profit allowed the Board to declare a
maiden fully franked dividend of 15 cents per share to
be paid to shareholders in October 2013.
the Garden Well construction team. Although there
have been a number of challenges at Garden Well since
we commenced operations, the project produced
163,260 ounces of gold for the year at a very
competitive pre-royalty cash cost of $562 per ounce.
Moolart Well again delivered strong operational
performance producing 105,753 ounces of gold at a
pre-royalty cash cost of $563 per ounce. The results
from Moolart Well again underline the quality of the
project and the commendable efforts of the Regis staff
and management who make it happen.
The commencement of operations at Garden Well in
the September 2012 quarter was a significant
milestone in the history of the Company. Regis
announced practical completion of the 4 million tonne
per annum Garden Well processing plant on time and
materially in line with budget. This is a great credit to
Since commissioning at Garden Well, our construction
team have moved on to the Rosemont Gold Project
where Stage 1 is nearing completion. The project will
move in to operations in the December 2013 quarter.
The Stage 1 project is a crushing and grinding circuit at
Rosemont with an ore slurry product pumped to the
Garden Well processing facility producing around
80,000 ounces of gold per annum. Upon completion of
Stage 1, Regis will commence development of Stage 2
of the project being the extension to processing
facilities at Garden Well. Development of Stage 2 of
the project will increase long term annual production
rates at Rosemont to around 100,000 ounces.
01
Finally I would like to thank all Regis employees for
their hard work and achievements over the last 12
months and look forward to another successful year
in 2014.
Nick Giorgetta
Chairman
The acquisition of the McPhillamys Gold Project in New
South Wales late in 2012 further strengthens Regis’
production growth pipeline. Since acquiring the project
the Company has completed in excess of 26,000 metres
of infill drilling to fully define the McPhillamys resource
and allow the estimation of a maiden reserve. With its
2.5 million ounce gold resource, the McPhillamys
project represents an excellent medium term
development opportunity for Regis and continues the
growth of our Australian project portfolio.
I believe 2014 will be an exciting year for Regis as we
continue to grow the Company’s production base whilst
consolidating performance at existing projects.
The Company is well placed with its quality projects
and people to meet the challenges that an uncertain
gold price environment may present. We will continue
to strive to create shareholder value as we grow
the business.
02
Highlights
CORPORATE
» Regis Resources Ltd (Regis) achieved a record net
profit after tax of $145.7 million for the year to 30
June 2013.
»
»
»
»
»
»
»
Total gold production for the year was 269,013
ounces at a cash cost (prior to royalties) of $562/oz.
Cashflow from operations for the year was $246.9
million.
Cash and gold bullion holdings at 30 June 2013 were
$80.9 million.
Gold sales of 253,090 ounces at average sales price
of A$1,599 per ounce.
Acquired the McPhillamys Gold Project in New South
Wales.
Repaid the Company’s $30 million project finance
debt in November 2012.
Maiden dividend of 15 cents per share declared in
relation to the 2013 financial results.
MOOLART WELL OPERATIONS
» Total gold production of 105,753 ounces for the year
at pre-royalty cash cost of A$563 per ounce.
»
The Moolart Well gold processing plant treated over
2.54 million tonnes of ore during the year, 27%
above the design throughput rate of 2.0 million
tonnes per annum.
GARDEN WELL OPERATIONS
» Project completed on time and in line with budget
for $113 million, funded wholly from operating
cash flow.
» Commissioning of the project commenced in August
2012 with first gold poured in September 2012.
» Total gold production from commissioning until 30
June 2013 of 163,260 ounces at a pre-royalty cash
cost of $562 per ounce.
ROSEMONT DEvELOPMENT
» Construction of the Rosemont Gold Project
commenced during the year with $26.7 million spent
to the end of the financial year.
»
»
»
First gold production forecast for the December
2013 quarter.
Pre-production mining commenced on the project in
January 2013 with 3.6 million BCM moved to the end
of the year.
The Company announced Rosemont Stage 2
development in July 2013 to increase the production
capacity of the project to around 100,000 ounces
per annum.
03
RESERvES AND RESOURCES
» Release of updated JORC compliant Resource at
Rosemont for a current estimate of 33.2 Mt at 1.62
g/t Au for 1.73 million ounces of gold.
»
»
»
»
»
»
Release of updated JORC compliant Reserve at
Rosemont of 12.0 Mt at 1.72 g/t Au for 664,000
ounces of gold.
Updated JORC compliant Resource at Garden Well
for a current estimate of 86.5 Mt at 1.08 g/t Au for
3.00 million ounces of gold.
Updated JORC compliant Reserve at Garden Well of
41.7 Mt at 1.27 g/t Au for 1.7 million ounces of gold.
Acquisition of the McPhillamys Gold Project added
57.4 Mt at 1.36 g/t Au for 2.5 million ounces of gold
to the Company’s JORC compliant resources
Total Regis gold resources, reported in accordance
with JORC code, now stand at 10.0 million ounces
(281.3MT at 1.10g/t Au for 9.962 million ounces).
Total Regis gold reserves, reported in accordance
with JORC code, now stand at 2.9 million ounces
(65.7MT at 1.39g/t Au for 2.924 million ounces).
ExPLORATION
»
In excess of 129,000 metres of aircore, RC and
diamond drilling was completed during the year on
various exploration projects in the Duketon project
area.
»
Initial drill programme to infill the current Resource
completed at the McPhillamys Gold Project in New
South Wales with 26,163 metres drilled during
the year.
OUTLOOk
» Moolart Well gold production for the 2014 financial
year has been forecast at between 95,000 – 105,000
ounces at a pre-royalty cash cost of between $560
- $610 per ounce.
»
»
»
Garden Well gold production for the 2014 financial
year has been forecast at between 190,000 –
210,000 ounces at a pre-royalty cash cost of
between $680 - $730 per ounce.
First gold pour at the Rosemont Gold Project
expected in October 2013 and forecast production for
2014 in the order of 43,000 – 48,000 ounces of gold.
Release of updated JORC compliant Mineral
Resource and maiden Ore Reserve at McPhillamys
expected in the December 2013 quarter.
MOOLART WELL
GOLD MINE
04
Corporate
REGIS ACHIEvED A RECORD NET
PROFIT AFTER TAx OF $145.7 MILLION
FOR THE YEAR AS A RESULT OF THE
COMMENCEMENT OF OPERATIONS AT
THE GARDEN WELL GOLD MINE.
The Company sold a total
of 253,090 ounces of gold
during the year at an
average price of A$1,599
per ounce. The gold was
delivered into a mix of spot
prices and forward hedging
contracts.
At the end of the financial year the Company had a
total hedging position of 122,591 ounces, being 116,751
ounces of flat forward contracts with a delivery price
of A$1,426 per ounce and 5,840 ounces of spot
deferred contracts with a price of A$1,475 per ounce.
With the commencement of operations at Garden
Well during the year, the Company’s operating
cashflow from the two mine sites increased from
$102.3 million in 2012 to $246.9 million in 2013. The
cashflow generated from Garden Well allowed the
Company to repay its $30 million debt facility in
November 2012 as well as fund the development of
the Rosemont Gold Project.
As at 30 June 2013 Regis had $80.9 million in cash
and bullion holdings up from $9.7 million in the
previous year. The board of Regis declared a 15 cent
per share dividend subsequent to the end of the
financial year.
05
Moolart Well Operations
The Moolart Well Gold Mine is located within the Duketon Gold Project approximately
350 kilometres north, north-east of kalgoorlie in Western Australia. The Company
completed development of the Moolart Well Gold Mine during the September 2010
quarter for a final capital cost of $67 million. Since commissioning in July 2010, the
processing plant has consistently run at 25% above nameplate throughput design
and has produced over 292,000 ounces of gold. The project has a remaining life,
based on current reserves, of 5 years with annual gold production expected to
average around 100,000 ounces per annum.
Total operating results for the year to 30 June 2013 are as follows:
Ore mined (t)
Ore milled (t)
Head grade (g/t)
Recovery (%)
Gold production (oz’s)
Cash cost per ounce (A$/oz) – pre royalties
Cash cost per ounce (A$/oz) – incl royalties
2013
2,503,283
2,534,292
1.41
92
105,753
A$563
A$630
2012
2,557,001
2,541,158
1.39
93
105,413
A$512
A$585
Moolart Well completed another consistent year of operations producing 105,753
ounces of gold at a pre-royalty cash cost of $563 per ounce. During the year mining
commenced in the Stirling oxide pit as well as continuing in the laterite and
Lancaster oxide pits. At the end of the financial year approximately 2.4 million
tonnes of laterite ore at 1.163g/t had been exposed ready for mining.
Gold production for the 2014 financial year at Moolart Well has been forecast at
between 95,000 – 105,000 ounces at a pre-royalty cash cost of between $560 - $610
per ounce.
06
Garden Well Operations
The wholly owned Garden Well gold deposit is located approximately 35 kilometres
south of the Company’s Moolart Well operation.
The Company completed development of the Garden Well Gold Mine on time during
the September 2012 quarter for a final capital cost of $113 million which was
materially in line with budget.
Total operating results for the year to 30 June 2013 are as follows:
Ore mined (t)
Ore milled (t)
Head grade (g/t)
Recovery (%)
Gold production (oz’s)
Cash cost per ounce (A$/oz) – pre royalties
Cash cost per ounce (A$/oz) – incl royalties
2013
(10 mONThS)
3,644,193
3,839,125
1.47
90
163,260
$562
$626
As reported during the year operations at Garden Well were adversely affected by a
number of issues since commissioning which in turn contributed to lower than
forecast production. Initially throughput was impacted by material handling issues
associated with the oxide ore in the upper zones of the pit. The clayey nature and
high moisture content of this material caused blockages in the crusher and mill feed
chutes. Modifications to the crushing circuit resolved this issue with annualised
throughput from 1 January 2013 being 23% above the 4 million tonne per annum
nameplate design capacity at 4.9 million tonnes per annum.
Milled grade was impacted during the year by the ongoing issue of mining
reconciliation to the geological reserve, particularly in the oxide zone of the pit. An
updated Resource and Reserve estimate was completed in July 2013 which took into
account the mining reconciliation to that time.
Gold production for the 2014 financial year at Garden Well has been forecast at
between 190,000 – 210,000 ounces at a pre-royalty cash cost of between
$680 - $730 per ounce.
07
Rosemont Development
The Rosemont Gold Project is 100% owned by Regis
and is located less than 10 kilometres north west of the
Garden Well Gold Project. The Rosemont gold deposit
was discovered in the 1980s and was partially mined as
a shallow oxide open pit by Aurora Gold Limited in the
early 1990s. Reported production was 222kt at 2.65g/t
for 18,600 ounces of gold.
The Board of Regis made the decision in 2012 to
develop the Rosemont deposit as a hybrid project with
the crushing and grinding circuit to be built at the
Rosemont pit and the ore product pumped to the CIL
circuit at Garden Well at the rate of approximately
1.5mtpa for leaching and gold production.
The decision to develop the project on this basis was
made when the JORC reserve at Rosemont stood at
487,000 ounces. Further drilling along strike to the
north of that reserve in 2012 led to the increase of the
Rosemont reserve to 664,000 ounces in January 2013.
Drilling is planned to the south of the current reserve
later in 2013 which is expected to see a further increase
in the mining inventory.
Subsequent to the end of the financial year the Board
reviewed the current strategy with a view to
determining the best approach to maximise the return
from the project. It was determined that the optimal
approach is to build the balance of a full processing
plant for the Rosemont project (Rosemont Stage 2) to
maximise the plant throughput capacity.
The Rosemont Stage 2 development is planned to
commence immediately after the completion of the
current development (Stage 1) in September 2013 and
should be completed in the June 2014 quarter. The
Rosemont plant will be operated in the Stage 1
configuration between September 2013 and then. The
expected cost of the development of Rosemont Stage 2
is in the order of $20 million.
The key benefit of building Rosemont Stage 2 is that it
will allow an increase in the throughput of the
combined Garden Well and Rosemont projects from the
current anticipated capacity of 6.5 million tonnes per
annum (Garden Well 5mtpa and Rosemont 1.5mtpa) to
around 7.5 – 8 million tonnes per annum (Garden Well
5.5 – 5.8mtpa and Rosemont 2.0 – 2.2mtpa). This
should result in long term production rates at Garden
Well of over 200,000 ounces per annum and Rosemont
production in the order of 100,000 ounces per annum.
Pre-production mining commenced in January 2013 at
the Rosemont Gold Project. Total waste material
moved to the end of June 2013 was 3.6 million bcm. It is
expected that a total of 10.5 million bcm of overburden
pre-strip will be mined over the life of the project.
By the end of the year a total of $40.7 million had been
spent on Stage 1 of the project including $26.7 million
on plant construction and a further $14.0 million on
pre-production mining.
ROSEMONT
MILL UNDER
CONSTRUCTION
08
Reserves and Resources
ROSEMONT
In January 2013 Regis announced an updated resource (reported in accordance
with the JORC code) for the Rosemont Gold Deposit of 1.73 million ounces of
contained gold.
Regis completed 17,465 metres of infill RC drilling in 2012 with the aim of converting
Inferred resources to Indicated category at the northern extremity of the Rosemont
deposit. Regis then commissioned independent geological consultants EGRM
Consulting Pty Ltd to conduct a re-estimation of its 2011 (1.08 million ounce) mineral
resource estimate. This estimate was completed using the Multiple Indicator kriging
estimation technique on a block size of 20 m x 20 m x 5 m. Based on the Multiple
Indicator kriging, a selective mining estimate above a 0.5 g/t Au cut-off was
generated to replicate a SMU size of 5m x 5m x 2.5m.
The updated resource is as follows:
CATEgORy
TONNES
gOLD gRADE
CONTAINED
gOLD
Indicated
Inferred
(Millions)
(g/t)
(Ounces)
18.9
14.3
33.2
1.64
1.60
1.62
996,400
737,100
1,733,500
Notes: Rounded to two significant figures. Rounding errors may occur.
In the estimation study by EGRM Consulting Pty Ltd it was observed that the
mineralized quartz dolerite continues south of the known resource from the previous
study, although with sparse drilling coverage. This southern portion of the quartz
dolerite was included in the current study and added significant Inferred resources.
Following the upgrade to the Resource, Regis announced an updated ore reserve
(reported in accordance with JORC code) at Rosemont of 664,000 ounces of
contained gold. The breakdown of the Reserve is as follows:
CATEgORy
TONNES
gOLD gRADE
CONTAINED
gOLD
Proven
Probable
(Millions)
(g/t)
(Ounces)
-
12.0
12.0
-
1.72
1.72
-
664,000
664,000
Notes: 0.5 g/t Au lower cut off grade. Rounded to two significant figures. Rounding errors may occur.
09
This reserve has been estimated to a maximum depth of 235 metres below surface,
with in excess of 80% of the contained gold within 150 metres of surface. The pit
optimisation was completed using a A$1,200 per ounce gold price. The forecast cost
of operations in the Reserve study was $33.63 per tonne milled and $640 per gold
ounce produced. In addition to the operating costs above there is a capital mining
cost of approximately $42 million to mine a 10.5 million bcm overburden pre-strip in
the first 20 metres below surface.
PRE-PRODUCTION
MINING AT
ROSEMONT
10
GARDEN WELL
During the year, the Company completed an RC and diamond drilling programme
designed to fully define the strike extent and down dip continuation of gold
mineralisation at the southern end of the Garden Well Gold Deposit. Upon the
completion of the drill programme the Company announced in July 2013 that the
JORC compliant resource (inclusive of reserves) for the deposit had increased from
2.29 million ounces of contained gold (net of resource mined to May 2013) to 3.00
million ounces, being 86.5 million tonnes at 1.08g/t gold. On a like for like basis
prior to deducting mined ounces, the resource had increased from 2.56 million
ounces to 3.24 million ounces of gold.
This increase was the result of strong drilling results along strike to the south of the
previous resource limit. The resource was estimated by independent geological
consultants EGRM Consulting Pty Ltd using the estimation technique Multiple
Indicator kriging. The estimate is based on a block size of 20 m x 40 m x 5 m and a
selective mining unit size of 5 m x 10 m x 2.5 m above a 0.5g/t Au lower cutoff
grade.
The breakdown of the resource is as follows:
CATEgORy
TONNES
gOLD gRADE
CONTAINED
gOLD
Indicated
Inferred
(millions)
(g/t)
(ounces)
76.1
10.4
86.5
1.09
1.02
1.08
2,657,000
341,000
2,998,000
Notes: Rounded to two significant figures. Rounding errors may occur.
The updated resource above was estimated to reflect the mining reconciliation
achieved in mining operations to that time. This resulted in a 192,000 ounce (12%)
reduction to the original (pre mining) 1.66 million ounce Indicated resource contained
in the current pit design.
On the basis of the upgraded resource, Regis completed an updated ore reserve
(reported in accordance with JORC code) at Garden Well. The updated Reserve for
Garden Well increased from 1.39 million ounces of contained gold (net of reserve
mined to May 2013) to 1.70 million ounces.
The breakdown of the reserve is as follows:
CATEgORy
TONNES
gOLD gRADE
CONTAINED
gOLD
Proven
Probable
(millions)
(g/t)
(ounces)
-
41.7
41.7
-
1.27
1.27
-
1,700,000
1,700,000
Notes: 0.6 g/t Au lower SMU block cut off grade. Contained oz rounded to nearest thousand.
11
The forecast cost of operations in the Reserve Study was $26.50 per tonne milled
and $684 per gold ounce produced. In addition to the operating costs above there is
a remaining life of mine capital cost of approximately $48 million to mine a 10.8
million bcm overburden pre-strip in the first 25 metres below surface on the balance
of yet to be mined stages in the current pit design and the expanded reserve along
strike to the south.
Importantly, in the event of a lower than current gold price environment, an option is
available to mine a smaller practical pit shell within this reserve pit (without
compromising the ultimate reserve pit) for 909,000 ounces at a cash cost of $553
per ounce for approximately 4 years.
MCPHILLAMYS
The McPhillamys Gold Project is located approximately 35 kilometres south east of
the town of Orange and 30 kilometres west of the town of Bathurst in the Central
West region of New South Wales, Australia. The project is approximately 250
kilometres west of Sydney.
The project area consists of four granted exploration permits covering 477 square
kilometres in two discrete locations approximately 25 kilometres apart.
The Company completed the acquisition of the McPhillamys Gold Project from
Newmont Exploration Pty Ltd and Alkane Resources Limited in November 2012. The
total consideration paid of $150 million was satisfied by the issue of Regis shares to
Newmont and Alkane based on their respective joint venture interests. A total of
35.7 million shares were issued to the vendors based on an issue price of $4.20 per
share, being the 45 trading day vWAP of Regis shares ending on the date of the
letter of agreement.
The McPhillamys Gold Project has a quoted gold resource, at a 0.5g/t lower cut,
as follows:
RESOURCE CATEgORy
TONNES
gOLD gRADE
Indicated
Inferred
Total
(millions)
(g/t)
41.3
16.1
57.4
1.27
1.57
1.36
OUNCES
(000’s}
1,685
815
2,500
NB Alkane has previously quoted the McPhillamys Resource using both 0.3g/t and 0.5g/t lower cut off grades
and including mineralisation in an outer ore envelope. Regis has chosen to quote the resource at a 0.5g/t lower
cut and excluding the outer ore envelope.
The quoted resource was drilled by previous project owners on a relatively broad
space 100 metre x 100 metre pattern. Regis commenced a drilling programme in
January 2013 to reduce the pattern to 50 metres x 50 metres. A total of 87 RC and
diamond holes for 26,163 metres were drilled as part of the programme to update the
current resource and allow the estimation of a maiden reserve. This drill programme
was completed in June 2013 and will form the basis of an updated resource
estimation planned to be completed in the December 2013 quarter.
Pre-feasibility work is continuing on the Project with base line environmental studies
and metallurgical test work commencing.
12
SATELLITE GOLD DEPOSITS
In addition to the Moolart Well, Garden Well,
Rosemont and Erlistoun projects which
already have JORC compliant reserves, Regis’
Duketon project area contains a further 6
known gold deposits with current JORC
compliant resources.
All of these gold deposits are within 15 kilometres of either the Moolart Well or
Garden Well gold processing plants. Work is expected to continue on these deposits
with the strategy of converting the reported resource to reserve with a view to
converting incremental ore to the mining inventory and extending the mine lives for
the two processing facilities.
13
DUkETON
PROJECT
AREA
ROSEMONT
MINING
FLEET
14
Gold Exploration
OvERvIEW
Regis controls a significant tenement
package, encompassing 237 granted
exploration, prospecting and mining licences
covering 1,277 square kilometres and 50
general purpose and miscellaneous licences
covering 2,210 square kilometres at the
Duketon Gold Project.
In addition Regis acquired the McPhillamys Gold Project in New South Wales during
the year consisting of 4 exploration licences covering 477 square kilometres.
Significant exploration activities were undertaken on various prospects within the
Duketon Gold Project and the McPhillamys Gold Project during the year. Exploration
drilling during the year totalled 155,873 metres (including 16,812 metres of water
exploration drilling), broken down as follows:
TyPE
Aircore
RC
Diamond
Total
PeRTH
By DRILLINg TyPE
By PROjECT
NO. hOLES
mETRES
PROjECT
mETRES
379
621
131
1,131
30,152
76,522
49,199
Garden Well
Moolart Well
Rosemont
155,873
Petra
dukeTOn
2.9 moz RESERvE
7.5 moz RESOURCE
2 OPERATINg mINES
1 DEvELOPmENT
PROjECT
Duketon Regional
McPhillamys
Total
McPHillaMys
2.5 moz RESOURCES
59,404
27,255
11,872
6,305
24,874
26,163
155,873
sydney
canbeRRa
1515
MCPHILLAMYS ExPLORATION
Resource definition drilling
commenced at the McPhillamys Gold
Project during the March 2013 quarter
to infill the current resource drilling
pattern. The current Resource
estimate of 57.4 million tonnes at
1.36g/t for 2.5 million ounces of gold
is based on 100 metre spaced
traverses. The drilling programme was
designed to reduce the drill spacing to
a 50m x 50m grid to enable an
updated resource and maiden reserve
estimate to be completed. A total of
87 RC and diamond holes for
approximately 26,163 metres were
drilled as part of the programme.
SECTION
6292400mN
16
Moolart Well
During the year Regis continued an ongoing drilling
programme designed to test for extensions to and infill
of the known mineralisation in and around the oxide
gold resources associated with the Moolart Well Gold
Project. The Moolart Well deposit has significant
Inferred oxide resources north of the Stirling and
Lancaster open pits. RC and Aircore infill drilling was
conducted during the year on a 25 by 25 metre drill grid
to convert inferred resources to indicated category to
allow an update of the Moolart Well Reserve. A total of
27,255 metres were drilled in line with the Company’s
strategy of annually updating reserves at Moolart Well
to replace the depletion of the previous year’s mining
activities with a view to maintaining a 5 year life at
Moolart Well for as long as possible.
Petra
The Petra gold deposit is located 15 kilometres east-
southeast of the Moolart Well gold plant and has an
Inferred gold resource of 400,000 tonnes at 3.12g/t for
42,000 ounces. Previous Aircore drilling has defined a
significant quartz lode containing gold mineralisation
over a 600 metre strike length.
During the year four shallow diamond holes were drilled
at Petra to twin existing aircore holes and to obtain
samples for bulk densities, metallurgical test work and
to conduct RQD studies for open pit optimization
design. In addition a total of 4,519 metres of Aircore
drilling and 1,222 metres of RC drilling was completed
to the end of June 2013 with the strategy of adding to
the mining inventory at Moolart Well.
Regional
A total of 24,874 metres of regional drilling was also
conducted during the year. The regional drilling
focussed on numerous gold targets identified under
shallow paleochannel cover in the Gum Well to
Hootanui corridor over a 20-30 kilometre strike
north-west of Rosemont. These regional drilling
programmes are ongoing.
DUkETON ExPLORATION
Garden Well
The RC and diamond drilling programme to fully define
the strike extent and down dip continuation of gold
mineralisation at the southern end of the deposit was
completed at Garden Well in the June 2013 quarter. A
total of 59,404 metres of RC and diamond drilling was
completed during the year which allowed the release of
updated Resource and Reserve estimates in July 2013
as noted above.
Project to date RC drilling at Garden Well totals 369
holes for 82,308 metres on 40 metre spaced east-west
traverses over a north-south strike distance of 2,360
metres from 6911000mN to 6913360mN.
The drilling to date indicates the most southern extent
of significant gold mineralisation is at 6911280mN
although grades have significantly weakened at this
northing. Generally lower grades and thinner zones of
gold mineralisation were encountered from 6911440mN
to 6911280mN confirming the southern limit of gold
mineralisation lies within this zone. No further drilling
is planned in the immediate future.
Although gold mineralisation at Garden Well has been
defined over a north-south strike length of 2,360m, the
deposit has only been drilled to a vertical depth of
300m. Within the top 300m four high grade shoots
have been defined by the plus 80 gram-metre gold
contour. These shoots plunge moderately to the south
and represent potential higher grade ore zones for
deeper open cut mining and underground mining. The
most southern shoot which is hosted by chert
stratigraphy has the highest grade with the best
intersection to date in the four high grade shoots.
Further diamond drilling is required to fully define the
dimensions and grade of these shoots.
Rosemont
During the year extensional resource drilling was
conducted at the Rosemont Gold Deposit. Drilling to
the north of the deposit early in the year allowed the
Company to update the Resource and Reserve estimate
at the deposit. A programme of RC resource drilling
commenced south of the main Rosemont open pit in
the June 2013 quarter to test the southern continuation
of gold mineralisation. A further 20 holes is planned in
the September 2013 quarter to complete this
programme to the south as well as a programme of RC
drilling at the northern end of the Rosemont open pit.
A total of 11,872 metres of drilling was conducted on
the deposit during the year.
17
MOOLART WELL
SITE LAYOUT
18
Gold Reserves
PROvEN
PROBABLE
TOTAL
MilliOn
TOnnes
GRade
G/T
GOld
kOz
MilliOn
TOnnes
GRade
G/T
GOld
kOz
MilliOn
TOnnes
GRade
G/T
GOld
kOz
CUT-Off
gRADE
g/T
-
0.4
-
0.82
0.4
0.82
-
9
9
41.2
-
1.26
-
1,670
-
41.2
0.4
1.26
0.82
1,670
9
41.2
1.26
1,670
41.6
1.26
1,679
4.4
0.2
0.1
-
0.1
4.8
-
1.3
6.5
1.26
180
0.7
0.98
2.04
4.20
-
1.28
1.30
-
2.34
13
1
-
3
197
-
95
0.1
3.7
0.1
-
4.6
12.0
1.4
1.56
1.29
1.17
-
1.25
1.72
2.37
22
2
155
2
-
181
664
108
5.1
0.3
3.8
0.1
0.1
9.4
12.0
2.7
1.22
1.96
1.30
1.17
1.28
1.27
1.72
2.36
202
15
156
2
3
378
664
203
1.48
301
59.2
1.38
2,623
65.7
1.39
2,924
0.6
0.6
0.5
0.5
0.4
0.4
0.5
0.5
0.7
PROjECT
GARDEN WELL
In pit reserves
Stockpiles
Total
Garden Well
MOOLART WELL
Laterite
Other Oxide/
Transitional (i)
Stirling Oxide/
Transitional
Stirling Fresh
Stockpiles
Total
Moolart Well
ROSEMONT
ERLISTOUN
Total
Reserves
(i) Other Oxide/Transitional comprises Lancaster, Mid Pit South and Mid Pit North.
19
Gold Resources
(INCLUSIvE OF RESERvES)
mEASURED
INDICATED
INfERRED
TOTAL RESOURCES
PROjECT
MilliOn
TOnnes
GRade
G/T
GOld
kOz
MilliOn
TOnnes
GRade
G/T
GOld
kOz
MilliOn
TOnnes
GRade
G/T
GOld
kOz
MilliOn
TOnnes
GRade
G/T
GOld
kOz
CUT-
Off
gRADE
g/T
GARDEN WELL
In pit
resources
Stockpiles
Total
Garden
Well
MOOLART WELL
-
-
0.4
0.82
-
9
75.6
1.08
2,632
10.4
1.02
-
-
-
-
-
341
-
86.0
1.08
2,973
0.4
0.82
9
0.5
0.6
0.4
0.82
9
75.6
1.08
2,632
10.4
1.02
341
86.4
1.07
2,982
Laterite
4.9
1.23
194
1.0
0.89
29
0.3
0.87
8
6.2
1.16
231
Oxide/
Transitional
Fresh
Low Grade
Stockpiles
Total
Moolart
Well
0.4
-
0.2
0.1
1.42
20
-
0.35
1.28
-
2
3
17.6
0.3
9.1
-
0.96
1.45
0.41
-
546
15
118
-
22.2
3.2
36.4
-
0.66
1.48
0.47
-
472
151
551
-
40.2
0.80
1,038
3.5
45.7
0.1
1.48
0.46
1.28
166
671
3
5.6
1.22
219
28.0
0.79
708
62.1
0.59
1,182
95.7
0.69
2,109
ROSEMONT -
-
-
18.9
1.64
ERLISTOUN
2.3
1.92
143
3.0
1.88
SATELLITE DEPOSITS
Dogbolter
-
king John -
Russells Find -
Baneygo
-
Reichelts Find -
Petra
-
Total satellites -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.1
-
3.69
-
0.1
3.69
996
179
-
-
-
-
17
-
17
14.3
1.60
737
33.2
1.62
1,733
-
-
-
5.3
1.90
322
0.9
0.7
0.4
0.8
-
0.4
3.2
2.91
3.19
3.86
1.67
-
3.12
2.83
87
72
55
43
-
42
0.9
0.7
0.4
0.8
0.1
0.4
2.91
3.19
3.86
1.67
3.69
3.12
87
72
55
43
17
42
299
3.3
2.87
316
0.5
0.4
1.0
0.3
0.5
0.5
0.5
1.0
1.0
1.0
0.5
1.0
2.0
Total
duketon
8.3
1.40
371
125.6
1.12
4,532
90.0
0.88
2,559
223.9
1.04
7,462
McPhillamys -
-
-
41.3
1.27
1,685
16.1
1.57
815
57.4
1.36 2,500
0.5
Total Regis
8.3
1.40
371
166.9
1.16
6,217
106.1
0.99
3,374
281.3
1.10
9,962
Regis share
9,940
20
Directors’ Report
YOUR DIRECTORS SUBMIT THEIR REPORT
FOR THE YEAR ENDED 30 JUNE 2013
21
Directors
The directors of the Company in office since 1 July 2012
and up to the date of this report, unless otherwise
stated, are:
Mr Nick Giorgetta, (Independent Non-Executive Chairman)
Mr Giorgetta joined the board of Regis Resources
Limited in May 2009 as Non-Executive Chairman. Prior
to this Mr Giorgetta was a founding director of Equigold
NL. He is a metallurgist with over 40 years of
experience in the mining industry. He began his
professional career in various technical roles for a major
mining company in Kalgoorlie. He later established his
own metallurgical consultancy which designed and
commissioned a number of gold treatment plants.
From 1988 to 1994 he was Managing Director of
Samantha Gold NL.
He retired as Managing Director of Equigold in
November 2005 and assumed the role of Executive
Chairman. He held this position until Equigold’s
merger with Lihir Gold Limited in June 2008.
During the past three years, Mr Giorgetta has not
served as a director of any other ASX listed companies.
Mr Giorgetta is a fellow of the Australasian Institute of
Mining and Metallurgy.
Mr Mark Clark, B.Bus CA (Managing Director)
Mr Clark has over 23 years of experience in corporate
advisory and public company management. Prior to
joining Regis Resources Limited, Mr Clark was the
Managing Director of Equigold NL.
He joined Equigold in 1995 and originally held the roles
of Chief Financial Officer and Company Secretary and
was responsible for the financial, administration and
legal functions of the company. He was closely involved
in the development and operation of Equigold’s projects
in both Australia and Ivory Coast.
He was a director of Equigold from April 2003 and was
Managing Director from December 2005 until
Equigold’s merger with Lihir Gold Limited in June 2008.
Prior to working at Equigold Mr Clark held a senior
position at an international advisory firm, providing
financial and corporate advice to clients in the mining
industry.
During the past three years, Mr Clark has not served as
a director of any other ASX listed companies.
Mr Clark is a member of the Institute of Chartered
Accountants in Australia.
Mr Morgan Hart, (Executive Director)
Mr Hart is a geologist with over 23 years of experience
in the gold mining industry. He joined Regis Resources
Limited in May 2009 as the Company’s Chief Operating
Officer. Prior to joining Regis Mr Hart was an Executive
Director with Equigold NL. He joined Equigold NL in
1994 and held senior management positions in
exploration and mining operations, including General
Manager at the Mt Rawdon Gold Mine from 2005 to
2007. He was appointed to the position of Chief
Operating Officer of Equigold in March 2007 and was
appointed a director of the company at the same time.
His key responsibility during this period included
overseeing the development and operational start up at
the Bonikro Gold Mine in Ivory Coast.
During the past three years Mr Hart has not served as a
director of any other ASX listed companies.
Mr Hart is a member of the Australasian Institute of
Mining and Metallurgy.
Mr Ross Kestel, B.Bus, CA, AICD
(Independent Non-Executive Director)
Mr Kestel is a Chartered Accountant and was a director
of a mid-tier accounting practice for over 25 years and
has a strong corporate and finance background.
He has acted as a director and company secretary of a
number of public companies involved in mineral
exploration, mining, mine services, property
development, manufacturing and technology
industries.
Mr Kestel is currently a non-executive director of
Beadell Resources Limited.
During the past three years he has also served as a
non-executive director of the following ASX listed
companies:
» Xstate Resources Limited (September 2006 to
September 2013);
» Resource Star Limited (August 2006 to November
2012);
» Equator Resources Limited (June 2011 to December
2012);
» VDM Group Limited (August 2005 to March 2011);
»
»
Jabiru Metals Limited (August 2003 to May 2011);
Jatenergy Limited (September 2007 to May 2012);
and
» Blackcrest Resources Limited (June 2006 to October
2010).
22
Mr Kestel is a member of the Australian Institute of
Company Directors.
Dividends
After the balance sheet date the following dividends
were proposed by the directors:
Mr Mark Okeby, LLM (Independent Non-Executive Director)
Mr Okeby has over 25 years’ experience in the resources
industry as a solicitor and as a director of listed
companies. He was admitted to practice law in Western
Australia in 1979 and holds a Master of Laws (LLM).
He was an executive director of gold producers Hill 50
Limited (1996-2003) and Abelle Limited (2003-2004)
before both were taken over by Harmony Gold Ltd in
2002 and 2004 respectively, and was a director of
Harmony Gold Australia Ltd until mid 2003. More
recently he has been a non-executive director of Lynas
Corporation Ltd (2004 -2005), an executive and
non-executive director of Metals X Limited (2004-
2009) and a non-executive director of Westgold
Resources Limited (2007-2010).
During the past three years, Mr Okeby has not served
as a director of any other ASX listed companies.
Company Secretary
Mr Kim Massey, B.Com, CA
Mr Massey is a Chartered Accountant with significant
experience in financial management and corporate
advisory services, particularly in the resources sector, as
a corporate advisor and company secretary for a
number of ASX and AIM listed companies.
Cents per
share
total
amount
$000
Final dividends recommended:
- Ordinary shares
15.00
74,427
The financial effect of these dividends has not been
brought to account in the consolidated financial
statements for the year ended 30 June 2013 and will be
recognised in subsequent financial reports.
Nature of Operations and
Principal Activities
The principal activities of entities within the
consolidated entity during the year were:
» production of gold from the Moolart Well and Garden
Well gold mines;
»
construction of the Rosemont gold project; and
» exploration, evaluation and development of gold
projects in the Eastern Goldfields of Western
Australia.
The Group completed the acquisition of the
McPhillamys Gold Project in November 2012. The project
is located in the Bathurst region of New South Wales
and Regis commenced exploration and evaluation
activities on this project from in January 2013. There
have been no other significant changes in the nature of
operations and activities.
23
Operating and Financial Review
RESULT FOR THE YEAR
The Group’s net profit for the year after tax was $145,727,093 (2012: $68,239,534).
The increase in the result is due to three quarters of production at Garden Well Gold
Mine as discussed in the Review of Operations below.
OPERATIONS – MOOLART WELL
Moolart Well Gold Mine operating results for the 12 months to 30 June 2013 are as
follows:
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties(i)
Cash cost per ounce – incl. royalties(i)
30 June 2013
(12 months)
30 June 2012
(12 months)
Tonnes
Tonnes
g/t
%
Ounces
A$/oz
A$/oz
2,503,283
2,534,292
1.41
92
105,753
$563
$630
2,557,001
2,541,158
1.39
93
105,413
$512
$585
(i) Cash cost per ounce is calculated as costs of production relating to gold sales (Note 7(a)), excluding gold in circuit inventory movements divided by gold
ounces produced. The calculation is presented both including and excluding the cost of royalties (Note 7(a)). This measure is included to assist investors
to better understand the performance of the business. Cash cost per ounce is a non-IFRS measure, and where included in this report, has not been
subject to review by the Group’s external auditors.
Moolart Well achieved record gold production for the
year to 30 June 2013 producing 105,753 ounces of gold
at a pre-royalty cash cost of $563 per ounce. Mill
through-put exceeded the name-plate design of 2
million tonnes per annum during the year operating at
a through-put rate 27% above name-plate capacity of
approximately 2.53 million tonnes per annum. Cash
costs before royalties were approximately 10% higher
than the previous year due to higher diesel costs and
reagent costs as well as mining in the Stirling pit which
has slightly higher rates in the upper zone of the pit.
During the year, 1.2 million bcm of ore and 4.6 million
bcm of waste were mined from the Moolart Well open
pits for a total material movement of 5.8 million bcm.
Of the total material mined, 2.7 million bcm was mined
from laterite pits and 3.1 million bcm was mined from
the Lancaster and Stirling oxide deposits. At the end of
the financial year approximately 2.4 million tonnes of
laterite ore at 1.163g/t had been exposed ready for
mining.
24
OPERATIONS – GARDEN WELL
Construction of the Garden Well Gold Mine was completed in the September 2012
quarter for a total capital cost of $113 million which was materially in line with the
budgeted cost of $109 million.
Operating results at the Garden Well Gold Mine for the 10 months of operations from
the date of commissioning were as follows:
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties(i)
Cash cost per ounce – incl. royalties(i)
30 June 2013
(10 months)
3,644,193
3,839,125
1.47
90
163,260
$562
$626
Tonnes
Tonnes
g/t
%
Ounces
A$/oz
A$/oz
(i) Cash cost per ounce is calculated as costs of production relating to gold sales (Note 7(a)), excluding gold in circuit inventory movements divided by gold
ounces produced. The calculation is presented both including and excluding the cost of royalties (Note 7(a)). This measure is included to assist investors
to better understand the performance of the business. Cash cost per ounce is a non-IFRS measure, and where included in this report, has not been
subject to review by the Group’s external auditors.
As reported during the year operations at Garden Well
were adversely affected by a number of issues since
commissioning which in turn contributed to lower than
forecast production. Initially throughput was impacted
by material handling issues associated with the oxide
ore in the upper zones of the pit. The clayey nature and
high moisture content of this material caused
blockages in the crusher and mill feed chutes.
Modifications to the crushing circuit resolved this issue
with annualised throughput from 1 January 2013 being
23% above the 4 million tonne per annum nameplate
design capacity at 4.9 million tonnes per annum.
Milled grade was impacted during the year by the
ongoing issue of mining reconciliation to the geological
reserve, particularly in the oxide zone of the pit. An
updated Resource and Reserve was estimated in July
2013 took into account the mining reconciliation to that
time. In addition by the end of the financial year the
oxide ore in the current reserve pit had largely been
mined.
During the year, 2.15 million bcm of ore and 11.27 million
bcm of waste were mined from the Garden Well open
pit for a total material movement of 13.42 million bcm.
Mining has commenced in all five stages of the open
pit with ore mined in Stage 1, 2 and 3 of the open pit
and pre strip material mined in both stage 4 and 5 of
the open pit exposing the top of mineralisation in these
stages.
DEVELOPMENT - ROSEMONT
The Rosemont Gold Project is located approximately 9
kilometres north-west of the Garden Well Gold Mine at
Duketon. Construction of the crushing and grinding
circuit at the Rosemont pit commenced during the year.
Under this configuration the milled ore product will be
pumped to the CIL circuit at Garden Well at the rate of
approximately 1.5mtpa for leaching and gold
production.
The decision to develop the project on this basis was
made in early 2012 when the JORC reserve at Rosemont
stood at 487,000 ounces. Further drilling along strike
to the north of that reserve in 2012 led to the increase
of the Rosemont reserve to 664,000 ounces in January
2013. Drilling is planned to the south of the current
reserve later in 2013 which is expected to see a further
increase in the mining inventory.
Accordingly the Company announced in July 2013 that
the board had reviewed the current strategy with a
view to determining the best approach to maximise the
return from the project. It was determined that the
optimal approach is to build the balance of a full
processing plant for the Rosemont project (Rosemont
Stage 2) to maximise the plant throughput capacity.
The Rosemont Stage 2 development is planned to
commence immediately after the completion of the
current development (Stage 1) in September 2013 and
should be completed in the June 2014 quarter. The
Rosemont plant will be operated in the Stage 1
25
configuration between September 2013 and then. The
expected cost of the development of Rosemont Stage 2
is in the order of $20 million.
The key benefit of building Rosemont Stage 2 is that it
will allow an increase in the throughput of the
combined Garden Well and Rosemont projects from the
current anticipated capacity of 6.5 million tonnes per
annum (Garden Well 5mtpa and Rosemont 1.5mtpa) to
around 7.5 – 8 million tonnes per annum (Garden Well
5.5 – 5.8mtpa and Rosemont 2.0 – 2.2mtpa). This
should result in long term production rates at Garden
Well of over 200,000 ounces per annum and Rosemont
production in the order of 100,000 ounces per annum.
Pre-production mining commenced in January 2013 at
the Rosemont Gold Project. Total waste material moved
to the end of June 2013 was 3.6 million bcm. It is
expected that a total of 10.5 million bcm of overburden
pre-strip will be mined over the life of the project.
RESERVES AND RESOURCES - ROSEMONT
In January 2013 Regis announced an updated resource
(reported in accordance with the JORC code) for the
Rosemont Gold Deposit of 1.73 million ounces of
contained gold.
Regis completed 17,465 metres of infill RC drilling in
2012 with the aim of converting Inferred resources to
Indicated category at the northern extremity of the
Rosemont deposit. Regis then commissioned
independent geological consultants EGRM Consulting
Pty Ltd to conduct a re-estimation of its 2011 (1.08
million ounce) mineral resource estimate. This
estimate was completed using the Multiple Indicator
Kriging estimation technique on a block size of 20 m x
20 m x 5 m. Based on the Multiple Indicator Kriging, a
selective mining estimate above a 0.5 g/t Au cut-off
was generated to replicate a SMU size of 5 m x 5 m x
2.5 m.
The updated resource is as follows:
Category
Indicated
Inferred
tonnes
(Millions)
18.9
14.3
33.2
gold
grade
(g/t)
Contained
gold
(Ounces)
1.64
1.60
1.62
996,400
737,100
1,733,500
Notes: Rounded to two significant figures. Rounding errors may occur.
In the estimation study by EGRM Consulting Pty Ltd it was observed that the
mineralized quartz dolerite continues south of the known resource from the previous
study, although with sparse drilling coverage. This southern portion of the quartz
dolerite was included in the current study and added significant Inferred resources.
Following the upgrade to the Resource, Regis announced an updated ore reserve
(reported in accordance with JORC code) at Rosemont of 664,000 ounces of
contained gold. The breakdown of the Reserve is as follows:
Category
Proven
Probable
tonnes
(Millions)
-
12.0
12.0
gold
grade
(g/t)
Contained
gold
(Ounces)
-
1.72
1.72
-
664,000
664,000
Notes: 0.5 g/t Au lower cut off grade. Rounded to two significant figures. Rounding errors may occur.
The updated reserve has been estimated after completion of an open pit mining and
Carbon in Leach extraction reserve study which included:
26
» Pit optimisation using wall angles based on
» Mining costs based on indicative contractor
geotechnical drill holes, independent geotechnical
advice;
quotation;
»
100% mining recovery and 10% mining dilution with
a gold grade of 0.45 g/t;
» Bulk densities and metallurgical parameters from
» Milling and other operating costs based on current
known operating costs adapted for ore type and
metallurgy.
test work;
Key results of the reserve study include:
physiCal
Total pit volume
Stripping ratio – tonnes
Ore
Gold grade
Contained gold
Milling recovery
Recovered gold
operating Costs & surplus
Mining cost
Milling & administration costs
Total operating cost per tonne (A$/tonne)(i)
Total operating cost per ounce (i)
(i) Before royalties
bcm
w/o
tonnes
g/t
ounces
%
ounces
A$/tonne
A$/tonne
A$/tonne
A$/oz
34,224,025
5.53
12,008,905
1.72
664,200
95
630,990
$24.00
$9.63
$33.63
$640
In addition to the operating costs above there is a
capital mining cost of approximately $42 million to
mine a 10.5 million bcm overburden pre-strip in the first
20 metres below surface.
This reserve has been estimated to a maximum depth
of 235 metres below surface, with in excess of 80% of
the contained gold within 150 metres of surface. The
pit optimisation was completed using a A$1,200 per
ounce gold price.
RESERVES AND RESOURCES – GARDEN WELL
During the year, the Company completed an RC and
diamond drilling programme designed to fully define
the strike extent and down dip continuation of gold
mineralisation at the southern end of the Garden Well
Gold Deposit. Upon the completion of the drill
programme the Company announced in July 2013 that
the JORC compliant resource (inclusive of reserves) for
the deposit had increased from 2.29 million ounces of
contained gold (net of resource mined to May 2013) to
3.00 million ounces, being 86.5 million tonnes at
1.08g/t gold. On a like for like basis prior to deducting
mined ounces, the resource had increased from 2.56
million ounces to 3.24 million ounces of gold.
This increase was the result of strong drilling results
along strike to the south of the previous resource limit.
The resource was estimated by independent geological
consultants EGRM Consulting Pty Ltd using the
estimation technique Multiple Indicator Kriging. The
estimate is based on a block size of 20 m x 40 m x 5 m
and a selective mining unit size of 5 m x 10 m x 2.5 m
above a 0.5g/t Au lower cutoff grade.
The breakdown of the resource is as follows:
Category
Indicated
Inferred
tonnes
(Millions)
76.1
10.4
86.5
gold
grade
(g/t)
Contained
gold
(Ounces)
1.09
1.02
1.08
2,657,000
341,000
2,998,000
Notes: Rounded to two significant figures. Rounding errors may occur.
27
The updated resource above was estimated to reflect the mining reconciliation
achieved in mining operations to that time. This resulted in a 192,000 ounce (12%)
reduction to the original (pre mining) 1.66 million ounce Indicated resource contained
in the current pit design.
On the basis of the upgraded resource, Regis completed an updated ore reserve
(reported in accordance with JORC code) at Garden Well. The updated Reserve for
Garden Well increased from 1.39 million ounces of contained gold (net of reserve
mined to May 2013) to 1.70 million ounces.
The breakdown of the reserve is as follows:
Category
Proven
Probable
tonnes
(Millions)
-
41.7
41.7
gold
grade
(g/t)
Contained
gold
(Ounces)
-
1.27
1.27
-
1,700,000
1,700,000
Notes: 0.6 g/t Au lower SMU block cut off grade. Contained oz rounded to nearest thousand.
The updated reserve was estimated after completion
of an open pit mining and Carbon in Leach extraction
reserve study which included:
» pit optimisation using wall angles based on
geotechnical drill holes, independent geotechnical
advice and allowances for ramps;
»
100% mining recovery and 0% mining dilution as
mining recovery and dilution factors have been
addressed at the resource estimation stage;
» Bulk densities and metallurgical parameters from
test work previously reported;
» Mining costs based on current contractor rates;
» Milling and other operating costs based on current
known operating costs adapted for ore type and
metallurgy.
Key results of the reserve study include:
physiCal
Total pit volume
Stripping ratio – tonnes
Ore
Gold grade
Contained gold
Milling recovery
Recovered gold
operating Costs & surplus
Mining cost
Milling cost
Administration cost
Total operating cost per tonne (A$/tonne)(i)
Total operating cost per ounce (i)
(i) Before royalties Note: reserve estimated using a gold price of A$1,000/oz
bcm
w/o
tonnes
g/t
ounces
%
ounces
A$/tonne
A$/tonne
A$/tonne
A$/tonne
A$/oz
83,544,000
4.10
41,683,000
1.27
1,699,700
95
1,614,723
$16.48
$9.19
$0.83
$26.50
$684
28
In addition to the operating costs above there is a remaining life of mine capital cost
of approximately $48 million to mine a 10.8 million bcm overburden pre-strip in the
first 25 metres below surface on the balance of yet to be mined stages in the current
pit design and the expanded reserve along strike to the south.
Importantly, in the event of a lower than current gold price environment, an option is
available to mine a smaller practical pit shell within this reserve pit (without
compromising the ultimate reserve pit) for 909,000 ounces at a cash cost of $553
per ounce for approximately 4 years.
GOLD EXPLORATION
Significant exploration activities were undertaken on various prospects within the
Duketon Gold Project and the recently acquired McPhillamys Gold Project during the
year. Exploration drilling during the year totalled 155,873 metres (including 16,812
metres of water exploration drilling), broken down as follows:
type
Aircore
RC
Diamond
Total
By drilling type
By proJeCt
no. holes
metres
proJeCt
379
621
131
1,131
30,152
76,522
49,199
155,873
Garden Well
Moolart Well
McPhillamys
Regional
Rosemont
Petra
Total
metres
59,404
27,255
26,163
24,874
11,872
6,305
155,873
MCPHILLAMYS GOLD PROJECT (NSW)
DUKETON GOLD PROJECT (WA)
The Company completed the acquisition of the
McPhillamys Gold Project from Newmont Exploration
Pty Ltd and Alkane Resources Limited in November
2012. The total consideration paid of $150 million was
satisfied by the issue of Regis shares to Newmont and
Alkane based on their respective joint venture
interests. A total of 35.7 million shares were issued to
the vendors based on an issue price of $4.20 per share,
being the 45 trading day VWAP of Regis shares ending
on the date of the letter of agreement.
The project currently has a quoted Resource (reported
in accordance with JORC) of 57.4 million tonnes at
1.36g/t for 2.5 million ounces of gold. Regis
commenced a drilling programme in January 2013 to
increase the density of drilling to allow the estimation
of an updated Resource and maiden Reserve. A total of
87 RC and diamond holes for 26,163 metres were drilled
as part of the programme to reduce the drill spacing to
a 50 metre x 50 metre grid.
The RC and diamond drilling programme to fully define
the strike extent and down dip continuation of gold
mineralisation at the southern end of the deposit was
completed at Garden Well in the June 2013 quarter. A
total of 59,404 metres of RC and diamond drilling was
completed during the year which allowed the release of
updated Resource and Reserve estimates in July 2013
as noted above.
During the year extensional resource drilling was
conducted at the Rosemont Gold Deposit. Drilling to
the north of the deposit early in the year allowed the
Company to update the Resource and Reserve
estimate at the deposit. RC resource drilling was
conducted south of the main Rosemont open pit in the
June quarter to test the southern continuation of gold
mineralisation. A further 20 holes is planned in the
September 2013 quarter to complete this programme
to the south as well as a programme of RC drilling at
the northern end of the Rosemont open pit.
Pre-feasibility work is continuing on the Project with
base line environmental studies and metallurgical test
work commencing.
Drilling during the half year was also carried out in the
oxide zone of the Moolart Well open pit as part of an
ongoing programme designed to test for extensions to
29
Likely Developments and
Expected Results
There are no likely developments of which the directors
are aware which could be expected to significantly
affect the results of the Group’s operations in
subsequent financial years not otherwise disclosed in
the Principal Activities and Operating and Financial
Review or the Significant Events after the Balance
Date sections of the Directors’ Report.
Environmental Regulation
and Performance
The operations of the Group are subject to
environmental regulation under the laws of the
Commonwealth and the State of Western Australia
and New South Wales. The Group holds various
environmental licenses issued under these laws, to
regulate its mining and exploration activities in
Australia. These licenses include conditions and
regulations in relation to specifying limits on
discharges into the air, surface water and groundwater,
rehabilitation of areas disturbed during the course of
mining and exploration activities and the storage of
hazardous substances.
All environmental performance obligations are
monitored by the board of directors and subjected from
time to time to Government agency audits and site
inspections. There have been no material breaches of
the Group’s licenses and all mining and exploration
activities have been undertaken in compliance with the
relevant environmental regulations.
and infill of the known mineralisation with a view to
adding to the Reserves of the operation. The Moolart
Well deposit has significant Inferred oxide resources
north of the Stirling and Lancaster open pits. RC and
aircore infill drilling was conducted during the year on a
25 by 25 metre drill grid to convert inferred resources
to indicated category to allow an update of the Moolart
Well Reserve.
A total of 24,874 metres of regional drilling was also
conducted during the year. The regional drilling
focussed on numerous gold targets identified under
shallow paleochannel cover in the Gum Well to
Hootanui corridor over a 20-30 kilometre strike
north-west of Rosemont. These regional drilling
programmes are ongoing.
Significant Changes in the
State of Affairs
There have been no significant changes in the state of
affairs other than those listed in the review of
operations above.
Significant Events after
the Balance Date
EXERCISE OF OPTIONS
Subsequent to year end, 1,880,449 ordinary shares
have been issued as a result of the exercise of listed
options for proceeds of $931,453, net of transaction
costs and 212,571 ordinary shares have been issued
upon the conversion of 287,500 employee options for
proceeds of $347,000
Other than the matters discussed above, there has not
arisen in the interval between the end of the financial
year and the date of this Report any item, transaction
or event of a material and unusual nature which, in the
opinion of the directors of the Group, has significantly
affected or is likely to significantly affect:
»
»
»
the operations of the Group;
the results of those operations; or
the state of affairs of the Group
in future financial years.
30
Share Options
UNISSUED SHARES
At the date of this report, the Company had the following unissued shares under
listed and unlisted options.
exerCise priCe
numBer outstanding
$0.5000
2,113,362
$0.1348
$0.4205
$1.0000
$2.2300
$2.7500
$3.0000
$3.9300
$4.0000
$3.5000
90,000
250,000
1,373,646
600,000
575,000
500,000
250,000
980,000
1,910,000
8,642,008
Director’s Access and Insurance Deed with each of the
directors pursuant to which a director can request
access to copies of documents provided to the director
whilst serving the Company for a period of 10 years
after the director ceases to hold office. There are
certain restrictions on the directors’ entitlement to
access under the deed. In addition the Company will be
obliged to use reasonable endeavours to obtain and
maintain insurance for a former director similar to that
which existed at the time the director ceased to hold
office.
The Company has, during or since the end of the
financial year, paid an insurance premium in respect of
an insurance policy for the benefit of the directors,
secretaries, executive officers and employees of the
Company and any related bodies corporate as defined
in the insurance policy. The insurance grants indemnity
against liabilities permitted to be indemnified by the
Company under Section 199B of the Corporations Act
2001. In accordance with commercial practice, the
insurance policy prohibits disclosure of the terms of the
policy including the nature of the liability insured
against and the amount of the premium.
maturity date
LISTED OPTIONS
31 January 2014
UNLISTED OPTIONS
4 February 2014
30 June 2014
29 September 2014
29 April 2015
8 November 2015
8 November 2015
2 February 2016
30 June 2016
31 July 2017
Total
Option holders do not have any right, by virtue of the
option, to participate in any share issue of the
Company or any related body corporate.
Details of options granted to directors and other key
management personnel during the year are set out in
the remuneration report.
SHARES ISSUED AS A RESULT OF THE EXERCISE
OF OPTIONS
During the financial year, 3,726,808 ordinary shares
were issued in Regis Resources Limited on the exercise
of listed options at a weighted average exercise price of
$0.7471 and employees and executives exercised
unlisted options to acquire 1,788,854 fully paid ordinary
shares in Regis Resources Limited at a weighted
average exercise price of $0.8896 per share.
Indemnification and Insurance
of Directors and Officers
The Company has entered into an Indemnity Deed with
each of the directors which will indemnify them against
liabilities incurred to a third party (not being the
Company or any related company) where the liability
does not arise out of negligent conduct including a
breach of good faith. The Indemnity Deed will continue
to apply for a period of 10 years after a director ceases
to hold office. The Company has entered into a
31
Directors’ Meetings
The number of directors’ meetings held (including meetings of Committees of the
Board) and number of meetings attended by each of the directors of the Company
during the financial year are:
Number of meetings held:
Number of meetings attended:
N Giorgetta
M Clark
M Hart
R Kestel
M Okeby
audit and risk
management
Committee
remuneration
and nomination
Committee
Board
9
9
9
9
9
9
3
3
1(i)
1(i)
3
3
2
2
n/a
n/a
2
2
(i) Mr Clark and Mr Hart attended at the invitation of the Audit and Rick Management Committee
All directors were eligible to attend all meetings held.
COMMITTEE MEMBERSHIP
As at the date of this report, the Company had an Audit
and Risk Management Committee and a Remuneration
and Nomination Committee of the board of directors.
Members acting on the committees of the board during
the year were:
Auditor Independence and
Non-Audit Services
During the year, KPMG, the Company’s auditor, also
provided taxation advice over research and
development credits.
KPMG received or are due to receive the following
amounts for the provision of non-audit services:
audit and risk
management
Committee
remuneration and
nomination
Committee
R Kestel (Chairman)
R Kestel (Chairman)
N Giorgetta
M Okeby
N Giorgetta
M Okeby
Interests in the Shares and Options
of the Company
As at the date of this report, the interests of the
directors in the shares and options of the Company
were unchanged from the holdings as at 30 June 2013
as disclosed in Note 27.
Tax advice
$
12,261
A copy of the auditor’s independence declaration as
required under Section 307C of the Corporations Act is
attached to the Directors’ Report.
Rounding off
The Company is of a kind referred to in ASIC Class Order
98/100 dated 10 July 1998 and in accordance with that
Class Order, amounts in the Financial Statements and
Directors’ Report have been rounded to the nearest
thousand dollars, unless otherwise stated.
32
Remuneration Report
(Audited)
This remuneration report for the year ended 30 June
2013 outlines the remuneration arrangements of the
Company and the Group in accordance with the
requirements of the Corporations Act 2001 (the Act)
and its regulations. This information has been audited
as required by section 308(3C) of the Act.
The remuneration report details the remuneration
arrangements for key management personnel (KMP)
who are defined as those persons having authority and
responsibility for planning, directing and controlling the
major activities of the Company and the Group, directly
or indirectly, including any director (whether executive
or otherwise) of the parent company.
For the purposes of this report, the term “executive”
includes the Managing Director, executive directors,
senior executives, general managers and company
secretaries of the Parent and the Group.
Key Management Personnel
Details of KMPs of the Company and Group are set out
below:
DIRECTORS
N Giorgetta . Chairman (non-executive)
M Clark. . . . . Managing Director
M Hart . . . . . Operations Director
R Kestel . . . . Director (non-executive)
M Okeby. . . . Director (non-executive)
KEY MANAGEMENT PERSONNEL
J Balkau . . . . General Manager – Exploration
M Evans . . . . Projects Manager
T Hinkley . . . General Manager – Moolart Well Gold Mine
K Massey . . . Chief Financial Officer and Company Secretary
R Smith . . . . General Manager – Garden Well Gold Mine
(ceased 1 May 2013)
B Wyatt . . . . General Manager – Garden Well Gold Mine
(appointed 1 May 2013)
Principles of Remuneration
Remuneration levels for key management personnel of
the Group are competitively set to attract and retain
appropriately qualified and experienced key
management personnel. The Remuneration and
Nomination Committee’s decisions on the
appropriateness of remuneration packages are based
on the competitive state of the employment market for
different specific skill sets, independently sourced
market surveys related to the resources sector and the
need to incentivise personnel to meet the Group’s
strategic objectives.
Key management personnel have authority and
responsibility for planning, directing and controlling the
activities of the Group, including directors of the Group
and other executives. Key management personnel
comprise the directors and executives of the Company
and Group.
The remuneration structures explained below are
designed to attract suitably qualified candidates,
reinforce the imperative to meet the strategic
objectives, and achieve the broader outcome of creation
of value for shareholders. The remuneration structures
take into account:
»
»
»
the capability and experience of the key
management personnel;
the ability of key management personnel to
influence the Group’s performance; and
the mix of cash and option incentives within each
key management personnel’s remuneration package.
Remuneration packages include a mix of cash, short-
term and longer-term performance based incentives.
The executive directors hold significant personal
shareholdings in the Company, which aligns their goals
and objectives with those of the Company. As such, the
Remuneration and Nomination Committee has decided
that there is no requirement for further share-based
incentives to be offered to the executive directors at
this point in time.
33
The Group’s financial performance over the past five years has been as follows:
in thousands of aud
2013
2012
2011
2010
2009
Revenue
Net profit/(loss) after tax
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
416,834
145,727
30.49
30.11
171,504
68,239
15.51
15.18
108,651
36,281
8.54
8.24
Net assets
539,625
237,934
140,278
777
(18,829)
(5.58)
(5.58)
81,784
524
(91,845)
(36.84)
(36.84)
35,969
Historical and current earnings are one of a number of
criteria used by the Remuneration and Nomination
Committee to assess the performance of directors and
executives. Other criteria used in this assessment
include gold production and operating costs, execution
of development projects, exploration success, growth
of business through acquisitions and effectiveness of
communications with regulators, shareholders,
investors and other stakeholders.
Fixed Remuneration
Fixed remuneration consists of base remuneration
(including any fringe benefit tax charges related to
employee benefits), as well as employer contributions
to superannuation funds. The Company allows key
management personnel to salary sacrifice
superannuation for additional benefits (on a total cost
basis).
Remuneration levels are reviewed annually by the
Remuneration and Nomination Committee through a
process that considers individual and overall
performance of the Group. In addition, external
consultants may provide analysis and advice to ensure
the key management personnel’s remuneration is
competitive in the market place, as required. No
external consultants were utilised during the current
financial year.
Performance-Linked Remuneration
Performance linked remuneration includes both
long-term and short term incentives and is designed to
reward key management personnel for meeting or
exceeding their objectives.
SHORT-TERM INCENTIVES
Each year the executive directors review the
performance of the key management personnel and
makes recommendations to the Remuneration and
Nomination Committee in relation to the awarding of
any short-term incentives.
In addition, the Remuneration and Nomination
Committee assess the actual performance of the
Group, the separate departments and the individuals’
personal performance. A cash bonus may be
recommended at the discretion of the Remuneration
and Nomination Committee where Group and
department objectives have been met or exceeded.
The Remuneration and Nomination Committee
recommends the cash incentive to be paid to the
executive directors for approval by the Board. No such
bonuses have been recommended this year.
LONG-TERM INCENTIVES
Options are issued under the Regis Resources Limited
2008 Share Option Plan (the “Plan”). The objective of
the Plan is to link the achievement of the Group’s
operational targets with the remuneration received by
the key management personnel charged with meeting
those targets. The total potential long term incentive
available is set at a level so as to provide sufficient
incentive to the KMP to achieve the operational targets
such that the cost to the Group is reasonable in the
circumstances.
The Plan provides for key management personnel and
employees to receive a set amount of options over
ordinary shares for no consideration. The ability to
exercise the options is conditional upon the employee
remaining with the Group throughout the vesting
period. There are no other performance criteria that
must be met.
34
Service Agreements
Mr Mark Clark, the Company’s Managing Director, is
employed under a fixed term contract, with the
following significant terms:
» An initial term of 3 years from 4 May 2009, which
Mr Morgan Hart, the Company’s Operations Director, is
employed under a fixed term contract, with the
following significant terms:
» An initial term of 3 years from 4 May 2009, which
was extended for a further 3 years effective from 4
May 2012;
was extended for a further 3 years effective from 4
May 2012;
» Fixed remuneration of $535,000 per annum (2012:
$465,000) subject to annual review; and
» Fixed remuneration of $550,000 per annum (2012:
» Opportunity to earn a performance based bonus
$480,000) subject to annual review; and
determined by the Company.
» Opportunity to earn a performance based bonus
determined by the Company.
Subsequent to the end of the financial year, the Board
completed its annual review of the Managing Director’s
remuneration and decided to make no changes.
Subsequent to the end of the financial year, the Board
completed its annual review of the Operations
Director’s remuneration and decided to make no
changes.
The Managing Director’s and Operations Director’s
termination provisions are as follows:
Employer initiated termination:
- without reason
- with reason
- serious misconduct
Employee initiated termination
notiCe period
payment in lieu
of notiCe
3 months plus 9 months’ salary
12 months
Not less than 3 months
Not less than 3 months
0 – 1 month
3 months
0 – 1 month
Not specified
Not specified
entitlement
to options on
termination
1 month to
exercise, extendable
at Board discretion
As above
As above
Change of control
1 month plus 12 months’ salary
The Group has entered into service contracts with each
key management person. The service contract outlines
the components of remuneration paid to each key
management person but does not prescribe how
remuneration levels are modified year to year.
Remuneration levels are reviewed each year to take
into account cost-of-living changes, any change in the
scope of the role performed by the key management
person and any changes required to meet the principles
of the remuneration policy. The key management
personnel are also entitled to receive, on termination of
employment, statutory entitlements of accrued annual
and long service leave, and any accrued superannuation
contributions would be paid to their fund.
The Company has a Redeployment and Redundancy
Policy that is applicable to all employees including
executives. Under that policy, in the case of a genuine
redundancy, executives would receive a payment of up
to six months total remuneration package plus two
weeks for each completed year of service, subject to a
maximum total payment of twelve months total
remuneration.
35
Non-Executive Directors
Total remuneration for all non-executive directors, last
voted upon by shareholders at the 2011 AGM, is not to
exceed $500,000 per annum. At the date of this
report, total non-executive directors’ base fees are
$268,000 per annum. Non-executive directors’ fees
cover all main board activities and membership of
board committees. Non-executive directors do not
receive any benefits on retirement. From time to time,
non-executive directors may provide consulting services
to the Company and in these cases they are paid
consulting fees in line with industry rates.
Subsequent to the end of the financial year, the Board
completed its review of the non-executive directors’
base fees and decided to make no changes.
Key Management Personnel Remuneration
TABLE 1: REMUNERATION FOR THE YEAR ENDED 30 JUNE 2013
short term
post
employment
long
term
share-
Based
payment
2013
salary &
fees
Cash
Bonus
EXECUTIVE DIRECTORS
M Clark
M Hart
$
550,000
535,000
NON-EXECUTIVE DIRECTORS
N Giorgetta
R Kestel
M Okeby
OTHER KMP
J Balkau
M Evans(iii)
T Hinkley
K Massey
R Smith(i)
B Wyatt(ii)
Total
110,000
85,000
73,000
290,000
300,000
283,750
275,000
241,667
48,333
2,791,750
$
-
-
-
-
-
-
-
-
-
-
-
-
non-
monetary
Benefits*
$
super-
annuation
long
serviCe
leave
$
$
6,065
5,033
49,500
48,150
11,407
11,116
-
-
-
5,033
295,774
-
5,033
-
-
9,900
7,650
6,570
26,100
27,000
25,538
24,750
21,750
4,350
-
-
-
6,022
5,824
3,074
5,160
426
92
options
total
performanCe
related
$
-
-
-
-
-
-
-
-
22,504
219,288
70,117
$
%
616,972
599,299
119,900
92,650
79,570
327,155
628,598
312,362
332,447
483,131
122,892
-
-
-
-
-
-
45.96%
-
6.77%
45.39%
57.06%
316,938
251,258
43,121
311,909
3,714,976
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.
*
(i) Mr Smith ceased his position as General Manager – Garden Well Gold Mine on 1 May 2013.
(ii) Mr Wyatt was appointed to the position of General Manager – Garden Well Gold Mine on 1 May 2013.
(iii) Mr Evans was awarded a non-cash bonus for the on-time and on-budget completion of the Garden Well Gold Mine.
36
TABLE 2: REMUNERATION FOR THE YEAR ENDED 30 JUNE 2012
short term
post
employment
long
term
share-
Based
payment
2012
salary
& fees
Cash
Bonus
non-
monetary
Benefits
super-
annuation
long
serviCe
leave
$
$
$
$
$
options
total
performanCe
related
EXECUTIVE DIRECTORS
M Clark
M Hart
480,000
465,000
NON-EXECUTIVE DIRECTORS
N Giorgetta
R Kestel
M Okeby
OTHER KMP
J Balkau
M Ertzen
M Evans
T Hinkley
K Massey
R Smith(i)
Total
101,000
66,000
66,000
280,833
252,083
281,667
249,583
252,083
187,500
2,681,749
-
-
-
-
-
-
-
-
-
-
-
-
13,930
12,382
5,485
5,485
5,485
12,382
12,382
5,485
5,485
12,382
5,485
$
-
-
-
-
-
-
75,633
113,450
75,634
89,642
$
%
540,971
522,993
115,575
77,425
77,425
333,132
364,847
428,203
353,887
378,786
388,160
-
-
-
-
-
-
20.73%
26.49%
21.37%
23.66%
45.93%
43,200
41,850
3,841
3,761
9,090
5,940
5,940
25,275
22,688
25,350
22,463
22,688
16,875
-
-
-
14,642
2,061
2,251
722
1,991
96,368
241,359
29,269
532,659
3,581,404
-
178,300
(i) Mr Smith commenced with the Company on 1 November 2011 in the role of General Manager – Garden Well Gold Mine.
TABLE 3: COMPENSATION OPTIONS - GRANTED AND VESTED DURING THE YEAR
granted
terms & Conditions for eaCh grant
vested
fair
value per
option at
grant
date
grant
date
exerCise
priCe per
option
expiry
date
first
exerCise
date
last
exerCise
date
no.
%
-
-
-
-
-
-
-
-
-
-
-
-
50,000
50,000
50%
50%
2013
OTHER KMP
K Massey
Total
no.
-
-
37
TABLE 4: VALUE OF OPTIONS AWARDED, EXERCISED AND LAPSED DURING THE YEAR
value of options
granted during
the year
$
value of options
exerCised during
the year
$
value of options
lapsed during
the year
$
remuneration
Consisting of
share options
for the year
%
OTHER KMP
T Hinkley
K Massey
R Smith(i)
B Wyatt(ii)
Total
-
-
-
-
-
747,900
726,598
-
-
1,474,498
-
-
-
-
-
-
6.77%
45.39%
57.06%
(i) Mr Smith ceased his position as General Manager – Garden Well Gold Mine on 1 May 2013.
(ii) Mr Wyatt was appointed to the position of General Manager – Garden Well Gold Mine on 1 May 2013.
There were no options granted to key management personnel during the year.
The value of options exercised during the year is calculated as the market price of
shares of the Company as at close of trading on the date the options were exercised
after deducting the price paid to exercise the option.
No options were forfeited during the current or prior year due to performance criteria
not being achieved.
There have been no alterations to the terms and conditions of options awarded as
remuneration since their award date.
TABLE 5: SHARES ISSUED ON EXERCISE OF OPTIONS (CONSOLIDATED)
2013
OTHER KMP
T Hinkley
K Massey
Total
shares issued
no.
paid per share
(note 27)
$
unpaid per share
$
200,000
123,782
323,782
$0.4205
$0.4205
-
-
Signed in accordance with a resolution of the directors.
Mr Mark Clark
Managing Director
Perth, 16 September 2013
The information in this report that relates to exploration results, estimates of mineral resources and ore
reserves in relation to the Duketon Gold Project and the McPhillamys Gold Project is based on and fairly
represents information and supporting documentation that has been compiled 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 2012 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.
38
Auditor’s Independence
Declaration
Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To: the directors of Regis Resources Limited
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial
year, ended 30 June 2013 there have been:
(i)
(ii)
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
KPMG
Trevor Hart
Partner
Perth
16 September 2013
39
KPMG, an Australian partnership and a member
firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Auditor’s Independence
Declaration
Corporate Governance
Statement
The Board of Directors of Regis Resources Limited is
responsible for establishing the corporate governance
framework of the consolidated entity having regard to
the ASX Corporate Governance Council published
guidelines as well as its corporate governance principles
and recommendations. The Board guides and monitors
the business and affairs of the Company on behalf of
the shareholders by whom they are elected and to
whom they are accountable.
Corporate Governance Disclosures
The Board and management are committed to
corporate governance and, to the extent that they are
applicable to the Company, have followed the
“Principles of Good Corporate Governance and Best
Practice Recommendations” issued by the Australian
Securities Exchange (“ASX”) Corporate Governance
Council.
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
The Board’s role is to increase shareholder value within
an appropriate framework which safeguards the rights
and interests of the Company’s shareholders. It
assumes responsibility for overseeing the affairs of the
Group by ensuring that they are carried out in a
professional and ethical manner and that business risks
are effectively managed. The Board meets formally on
a regular basis to conduct appropriate business. The
primary responsibilities of the Board include the
following:
» Development of corporate objectives and strategy
with management and approving plans, new
investments, major capital and operating
expenditures and major funding activities proposed
by management;
» Monitoring actual performance against defined
performance expectation and reviewing operating
information to understand at all times the state of
the health of the Company;
» Appointing, evaluating, rewarding and if necessary
the removal of the Managing Director and senior
management;
» Overseeing the management of business risks,
safety and occupational health, environmental
issues and community development;
» Satisfying itself that the financial statements of the
Company fairly and accurately set out the financial
position and financial performance of the Company
for the period under review, including approval of the
annual, half yearly and quarterly reports;
» Satisfying itself that there are appropriate reporting
systems and controls in place to assure the Board
that proper operational, financial, compliance, risk
management and internal control processes are in
place and functioning appropriately;
» Ensuring that appropriate audit arrangements are in
place;
» Ensuring that Regis acts legally and responsibly on
all matters; and
» Reporting to and advising shareholders.
A copy of the Board Charter is available on the
Company’s website.
Those who have the opportunity to materially influence
the integrity, strategy and operation of the Company
and its financial performance are considered to be
senior executives.
The role of senior executives is to progress the
strategic direction provided by the Board. The matters
delegated to senior executives include the following:
» To develop and recommend internal control and
accountability systems for the Company and if
approved, ensure compliance with such systems;
» To prepare corporate strategy and performance
objectives for approval by the Board;
» To prepare systems of risk management and internal
compliance and controls, codes of conduct, legal
compliance and any other regulatory compliance and
if approved, ensure compliance with such systems;
» To monitor employees performance, recommend
appropriate resources and review and approve
remuneration;
» To prepare all financial reports, tax returns, budgets
and any other appropriate financial reports, meet all
statutory deadlines and monitor performance
against budgets;
40
» Prepare recommendations on acquisitions and
R Kestel
divestments of assets;
» To implement decisions of the Board on key
M Okeby
No set term agreed, other than per the
Company’s constitution
No set term agreed, other than per the
Company’s constitution
standards of the Company covering such areas as
ethical standards, reputation and culture of the
Company and influence and provide guidance for
employees on these areas; and
» To protect the assets of the Company.
A copy of the matters reserved for senior executives is
available on the Company’s website.
The Remuneration and Nomination Committee is
responsible for reviewing the performance of senior
executives. In addition, the Remuneration and
Nomination Committee review the actual performances
of the Group and assess the senior executive’s appraisal
of separate departments and individuals’ personal
performance. The Remuneration and Nomination
Committee ratify remuneration recommendations by
senior executives. A formal performance review was
conducted in July 2013.
Under the Company’s Constitution, directors (other
than the Managing Director) are required to retire every
three years and may submit themselves for re-election.
Directors appointed during the year must retire at the
next Annual General Meeting of the Company and may
submit themselves for re-election. The Board follows a
process to select and appoint new directors as required
taking into account candidates’ breadth of experience,
skills, integrity and willingness to devote time and
effort to the Company.
REMUNERATION AND NOMINATION COMMITTEE
The Board is responsible for determining and reviewing
compensation arrangements for the directors
themselves, the Managing Director and the executive
team. The Board has established a Remuneration and
Nomination Committee comprising three (3)
independent non-executive directors.
PRINCIPLE 2:
STRUCTURE THE BOARD TO ADD VALUE
The members of the Remuneration and Nomination
Committee at the date of this Report are:
Directors of Regis are considered to be independent
when they are independent of management and free
from any business or other relationship that could
materially interfere with or could reasonably be
perceived to materially interfere with the exercise of
their unfettered and independent judgment.
Independent directors are non-executive directors who
are not substantial shareholders of the Company and
do not have any material contractual arrangements
with the Company.
The following directors are considered to be
independent:
name
position
N Giorgetta
Independent Non-Executive Chairman
» R Kestel (Chairman)
» N Giorgetta
» M Okeby
It is the Company’s objective to provide maximum
shareholder benefit from the retention of a high quality
Board and executive team by remunerating directors
and key executives fairly and appropriately with
reference to relevant employment market conditions.
To assist in achieving this objective, the Remuneration
and Nomination Committee links the nature and
amount of executive directors’ and officers’
remuneration to the Company’s financial and
operational performance. The expected outcomes of
the remuneration structure are:
R Kestel
Independent Non-Executive Director
» Retention and motivation of key executives;
M Okeby
Independent Non-Executive Director
There are procedures in place, agreed by the Board, to
enable the directors in furtherance of their duties to
seek independent professional advice at the Company’s
expense.
The term in office held by each director is as follows:
name
term
N Giorgetta
No set term agreed, other than per the
Company’s constitution
M Clark
3 years
M Hart
3 years
» Attraction of high quality management to the
Company; and
» Performance incentives that allow executives to
share in the success of the Company.
For full discussion of the Company’s remuneration
philosophy and framework and the remuneration
received by directors and executives in the current
period please refer to the Remuneration Report, which
is contained within the Directors’ Report.
The Chairman of the Board is responsible for the
evaluation of the Board and, when deemed appropriate,
Board committees and individual Directors.
Performance evaluation of the Board is carried out by
41
means of ongoing review by the Chairman with
reference to the composition of the Board and its
suitability to carry out the Company’s objectives.
The Chair may carry out the review by various means
including, but not limited to:
» Meeting with and interviewing each Board member;
» Consultation with the Remuneration and
Nomination Committee;
» Circulation of internal review tools such as formal
questionnaires and reports; and
» Outsourcing to independent specialist consultants.
behaviour in the exercise of their duties. They are
required to:
» not discriminate against any staff member or
potential employee;
»
»
»
»
carry out their duties in compliance with the law at
all times;
to use the Group’s assets responsibly;
to respect the confidentiality of the Group ‘s
business dealings;
take responsibility for their own actions and for the
consequences surrounding their own actions;
A review of the Board’s performance for the financial
year ending 30 June 2013 was conducted by the
Chairman in August 2013.
» not seek, accept or provide gratuities to obtain or
retain a business advantage that is not legitimately
due; and
A copy of the Company’s process for evaluating the
performance of the Board, its committees and
individual directors is on the Company’s website.
There is no scheme to provide retirement benefits to
non-executive directors.
A copy of the Remuneration and Nomination
Committee Charter is available on the Company’s
website.
PRINCIPLE 3:
PROMOTE ETHICAL AND RESPONSIBLE
DECISION-MAKING
The Group operates under a Code of Conduct that sets
out the ethical standards under which the Company
operates when dealing with internal and external
parties. This Code requires all directors, officers,
employees and contractors of the Company to respect
and comply with all laws and regulations and maintain
a high standard of professionalism, ethics, and
» not participate in party politics and must not make
payments to political parties.
A copy of the Code of Conduct can be found at the
Company’s website.
The Company has established a Diversity Policy which
commits Regis to workplace diversity and recognises
the benefits arising from employee and Board diversity.
Our policy is to recruit and manage on the basis of
qualification and performance; regardless of gender,
age, nationality, race, religious beliefs, cultural
background or sexuality.
The Board is responsible for developing measurable
objectives and strategies to meet the objectives of
gender diversity. The Board reviews the progress of
achieving these measurable objectives through
monitoring, evaluation, and reporting mechanisms.
In accordance with the policy the Board has developed
the following measurable objectives to achieve and
report on gender diversity:
aCtion
progress
Promote and publish a Diversity Policy.
Establish and maintain an effective gender diversity
measurement and reporting framework.
The Diversity Policy, adopted by the Board, is published on the
Company’s website.
Regis completes the Equal Opportunity for Women in the
Workplace Agency (EOWA) Report annually and publishes the
report on its website. Internal reporting procedures have been
modified to ensure regular reporting of gender diversity within
the organisation to the Board.
The provision of suitable working arrangements for employees
undertaking maternity and paternity leave and the ongoing
engagement with these employees during this period.
The Company implemented a paid parental leave policy which
endeavours to financially cover a portion of an employee’s leave
period.
Ensure that when the Board next recruits for an independent
non-executive Director, at least one woman must be included
in the list of potential candidates.
The Board considers that it is currently of sufficient size and
diversity of skills to not warrant any additional Directors. The
Board will continue to monitor its size and skill requirements on
an ongoing basis.
42
The breakdown of gender within the Company is as follows:
Board of Directors
Other Key Management Personnel
Other Employees
Total
The Company also has a Securities Trading Policy, a
copy of which is located on the Company’s website. The
key element of the policy is that directors and
employees must not deal in any security of the
Company whilst in possession of inside information. In
addition Restricted Persons as defined by the policy are
prohibited from buying or selling Company securities
within:
» one week prior to the release of the Company’s
quarterly reports;
»
»
»
two weeks prior to the release of the Company’s
half year financial results;
two weeks prior to the release of the Company’s full
year financial results; and
two weeks prior to the release of a disclosure
document offering securities in the Company.
PRINCIPLE 4:
SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
The Board has established an Audit and Risk
Management Committee, which operates under a
Charter approved by the Board. It is the Board’s
responsibility to ensure that an effective internal
control framework exists within the Company. This
includes internal controls to deal with both the
effectiveness and efficiency of significant business
processes, the safeguarding of assets, the
maintenance of proper accounting records, and the
reliability of financial information as well as non-
financial considerations. The Board has delegated
responsibility for establishing and maintaining a
framework of internal control and ethical standards to
the Audit and Risk Management Committee.
The Committee also provides the Board with additional
assurance regarding the reliability of financial
information for inclusion in the financial reports.
The Audit and Risk Management Committee comprises
of the following three independent non-executive
directors:
» R Kestel (Chairman)
» N Giorgetta
» M Okeby
Women
men
total
female
representation
0
0
64
64
5
6
173
184
5
6
237
248
0%
0%
27%
26%
A copy of the Audit and Risk Management Committee
Charter is available on the Company’s website.
The Company’s policy is to appoint external auditors
who clearly demonstrate independence. The
performance of the external auditor is reviewed
annually by the Audit and Risk Management
Committee. KPMG, who are the current external
auditors, have a policy of rotating the audit partner at
least every 5 years. The current lead engagement
partner was appointed during the 2010 financial year.
PRINCIPLE 5: MAKE TIMELY AND
BALANCED DISCLOSURE
The Company has a continuous disclosure policy
designed to meet its compliance obligations and to
ensure that all matters, which may require
announcement to the Australian Securities Exchange,
are brought to the attention of directors immediately.
A copy of the continuous disclosure policy is available
on the Company’s website.
PRINCIPLE 6: RESPECT THE RIGHTS
OF SHAREHOLDERS
The Board ensures that shareholders are kept informed
of all major developments that affect their
shareholding or the Company’s state of affairs through
quarterly, half-yearly, annual and ad hoc reports. All
shareholders are encouraged to attend the Annual
General Meeting to meet the Chairman and directors
and to receive the most updated report on Group
activities. The external auditor of the Company will be
in attendance at the Annual General Meeting to answer
shareholders’ questions.
The Company maintains a website at http://www.
regisresources.com to provide shareholders with up to
date information on the Company’s activities.
Shareholders may also communicate with the Company
through its e-mail address enquiries@regisresources.
com.
A copy of the Company’s Communication with
Shareholders policy can be found on the Regis website.
43
PRINCIPLE 7: RECOGNISE AND MANAGE RISK
The Board recognises that the identification and
management of risk, including calculated risk taking, is
an essential part of creating long term shareholder
value.
Management reports directly to the Board on the
Company’s key risks and is responsible, through the
Managing Director, for designing, maintaining,
implementing and reporting on the adequacy of the
risk management and internal control systems.
The Audit and Risk Management Committee monitors
the performance of the risk management and internal
control systems and reports to the Board on the extent
to which it believes the risks are being managed and
the adequacy and comprehensiveness of risk reporting
from management.
The Board must satisfy itself, on a regular basis, that
risk management and internal control systems for the
Company have been fully developed and implemented.
The Company has identified specific risk management
areas being strategic, operational and compliance.
An internal officer is responsible for ensuring the
Company complies with its regulatory obligations.
Management also meets regularly to deal with specific
areas of risk such as OH&S issues, environmental risk
and tenement management.
The CEO and CFO also provide written assurance to the
Board on an annual basis that, to the best of their
knowledge and belief, the declaration provided by them
in accordance with Section 295A of the Corporations
Act is founded on a sound system of risk management
and internal control and that the system is operating
effectively in relation to financial reporting risks.
The assurances from the CEO and CFO can only be
reasonable rather than absolute due to factors such as
the need for judgement and possible weaknesses in
control procedures.
Any material changes in the Company’s circumstances
are released to the ASX and included on the Company’s
website. A statement of the Company’s existing risk
management and internal controls is available on the
Regis website.
PRINCIPLE 8:
REMUNERATE FAIRLY AND RESPONSIBLY
As disclosed under Principle 2, the Company has a
Remuneration and Nomination Committee. The details
of the directors and executives remuneration policies
are provided in the Directors’ Report under the heading
“Remuneration Report”.
44
FINANCIAL STATEMENTS
46
47
48
49
Consolidated Statement
of Profit or Loss and
Comprehensive Income
Consolidated
Statement of
Financial Position
Consolidated
Statement of Changes
in Equity
Consolidated
Statement of
Cash Flows
50
Notes to the
Financial Statements
84
Directors’
Declaration
85
Independent
Auditor’s Report
87
Tenement
Information
89
ASX Additional
Information
Consolidated Statement of Profit or Loss and
Comprehensive Income
for the year ended 30 June 2013
Gold sales
Interest revenue
Revenue
Cost of goods sold
Gross profit
Other income
Investor and corporate costs
Personnel costs
Share-based payment expense
Occupancy costs
Other corporate administrative expenses
Exploration and evaluation written off
Other expenses
Finance costs
Profit before tax
Income tax expense
Profit from continuing operations
OTHER COMPREHENSIVE INCOME
Other comprehensive income for the period, net of tax
Total comprehensive income for the period
Profit attributable to members of the parent
Total comprehensive income attributable to members of the parent
Basic earnings per share attributable to ordinary equity holders of the
parent (cents per share)
Diluted earnings per share attributable to ordinary equity holders of the
parent (cents per share)
Consolidated
2013
$’000
416,117
717
416,834
(207,247)
209,587
3,737
(1,265)
(3,869)
(2,616)
(498)
(454)
(1,396)
(375)
(2,157)
200,694
(54,967)
145,727
-
-
145,727
145,727
30.49
30.11
2012
$’000
170,355
1,149
171,504
(85,778)
85,726
1,658
(1,998)
(2,906)
(2,039)
(463)
(784)
(786)
(268)
(3,391)
74,749
(6,510)
68,239
-
-
68,239
68,239
15.51
15.18
note
7(a)
6
18
7(b)
7(c)
8
9
9
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
46
Consolidated Statement of Financial Position
as at 30 June 2013
Consolidated
CURRENT ASSETS
Cash and cash equivalents
Gold bullion awaiting settlement
Receivables
Inventories
Financial assets held-to-maturity
Other current assets
Total current assets
NON-CURRENT ASSETS
Deferred mining costs
Plant and equipment
Exploration and evaluation expenditure
Mine properties under development
Mine properties
Total non-current assets
Total assets
CURRENT LIABILITIES
Trade and other payables
Interest-bearing liabilities
Provisions
Total current liabilities
NON-CURRENT LIABILITIES
Interest-bearing liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
EqUITY
Issued capital
Share option reserve
Retained profits/(accumulated losses)
Total equity
note
10
11
12
13
14
15
16
17
18
19
20
21
22
23
22
8
23
24
25(b)
25(a)
2013
$’000
61,220
19,640
4,359
15,154
154
1,323
101,850
12,192
166,186
204,644
62,301
119,416
564,739
666,589
41,495
10
295
41,800
-
61,477
23,687
85,164
126,964
539,625
428,358
14,032
97,235
539,625
2012
$’000
1,353
8,313
2,686
4,016
10
387
16,765
10,555
55,487
29,293
167,919
38,461
301,715
318,480
28,276
4,883
684
33,843
25,194
6,510
14,999
46,703
80,546
237,934
275,010
11,416
(48,492)
237,934
The above statement of financial position should be read in conjunction with the accompanying notes.
47
Consolidated Statement of Changes in Equity
for the year ended 30 June 2013
At 1 July 2012
Profit for the period
Other comprehensive income
Total comprehensive income for the year
issued
Capital
$’000
275,010
-
-
-
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS:
Share-based payments expense
Shares issued, net of transaction costs
At 30 June 2013
At 1 July 2011
Profit for the period
Other comprehensive income
Total comprehensive income for the year
-
153,348
428,358
247,632
-
-
-
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS:
Share-based payments expense
Shares issued, net of transaction costs
At 30 June 2012
-
27,378
275,010
Consolidated
retained
profits/
(aCCumulated
losses)
share option
reserve
total equity
$’000
(48,492)
145,727
-
145,727
-
-
97,235
(116,731)
68,239
-
68,239
-
-
(48,492)
$’000
11,416
-
-
-
2,616
-
14,032
9,377
-
-
-
2,039
-
11,416
$’000
237,934
145,727
-
145,727
2,616
153,348
539,625
140,278
68,239
-
68,239
2,039
27,378
237,934
The above statement of changes in equity should be read in conjunction with the accompanying notes.
48
Consolidated Statement of Cash Flows
for the year ended 30 June 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from gold sales
Payments to suppliers and employees
Option premium income
Interest received
Interest paid
Proceeds from rental income
R&D rebate received
note
Consolidated
2013
$’000
404,790
(164,805)
2,363
560
(1,646)
16
-
Net cash from operating activities
10(b)
241,278
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of plant and equipment
Payments for exploration and evaluation (net of rent refunds)
Payments for exploration assets (net of cash)
Proceeds on disposal of held-to-maturity investments
Payments for mine properties under development
Payments for mine properties
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Payment of transaction costs
Payment of finance lease liabilities
Repayment of borrowings
Net cash (used in)/from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
10(a)
The above statement of cash flows should be read in conjunction with the accompanying notes.
(12,780)
(30,229)
(5,049)
(20)
(81,318)
(25,012)
(154,408)
3,413
(68)
-
(30,348)
(27,003)
59,867
1,353
61,220
2012
$’000
168,547
(71,719)
1,370
1,228
(3,342)
-
141
96,225
(7,170)
(15,755)
-
1,165
(114,512)
(1,107)
(137,379)
15,424
(43)
(264)
-
15,117
(26,037)
27,390
1,353
49
Notes to the Financial Statements
for the year ended 30 June 2013
1. CORPORATE INFORMATION
The financial report of Regis Resources Limited (the
“Company”) for the year ended 30 June 2013 was
authorised for issue in accordance with a resolution of
the directors on 16 September 2013.
» AASB 10 Consolidated Financial Statements
establishes a new control model that applies to all
entities. It replaces parts of AASB 127 Consolidated
and Separate Financial Statements dealing with the
accounting for consolidated financial statements
and UIG-112 Consolidation – Special Purpose Entities.
Regis Resources Limited is a for-profit company limited
by shares incorporated in Australia whose shares are
publicly traded on the Australian Securities Exchange.
The consolidated financial statements of the Company
as at and for the year ended 30 June 2013 comprise the
Company and its subsidiaries (collectively referred to as
the “Group”).
The nature of operations and principal activities of the
Group are described in the Directors’ Report.
2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
(A) BASIS OF PREPARATION
The financial report is a general purpose financial report
which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian
Accounting Standards and other authoritative
pronouncements of the Australian Accounting
Standards Board. The financial report has also been
prepared on a historical cost basis.
The financial report is prepared in Australian dollars
and all values are rounded to the nearest thousand
dollars ($000s) unless otherwise stated.
(B) COMPLIANCE WITH IFRS
The consolidated financial statements comply with
Australian Accounting Standards and International
Financial Reporting Standards (IFRSs) as issued by the
International Accounting Standards Board.
(C) NEW STANDARDS AND INTERPRETATIONS
ISSUED BUT NOT YET EFFECTIVE
The new control model broadens the situations
when an entity is considered to be controlled by
another entity and includes new guidance for
applying the model to specific situations, including
when acting as a manager may give control, the
impact of potential voting rights and when holding
less than a majority voting rights may give control.
Consequential amendments were also made to other
standards via AASB 2011-7. The amendments, which
will become mandatory for Group’s 30 June 2014
financial statements, are not expected to have any
impact on the financial statements.
» AASB 11 Joint Arrangements replaces AASB 131
Interests in Joint Ventures and UIG-113 Jointly-
controlled Entities – Non-monetary Contributions by
Joint Ventures. AASB 11 uses the principle of control
in AASB 10 to define joint control, and therefore the
determination of whether joint control exists may
change. In addition it removes the option to account
for jointly controlled entities (JCEs) using
proportionate consolidation. Instead, accounting for
a joint arrangement is dependent on the nature of
the rights and obligations arising from the
arrangement. Joint operations that give the
venturers a right to the underlying assets and
obligations themselves are accounted for by
recognising the share of those assets and
obligations. Joint ventures that give the venturers a
right to the net assets is accounted for using the
equity method.
Consequential amendments were also made to other
standards via AASB 2011-7 and amendments to
AASB 128. The amendments, which will become
mandatory for Group’s 30 June 2014 financial
statements, are not expected to have any impact on
the financial statements.
The following standards, amendments to standards
and interpretations have been identified as those which
may impact the entity in the period of initial
application. They are available for early adoption at 30
June 2013, but have not been applied in preparing this
financial report.
» AASB 12 Disclosure of Interests in Other Entities
includes all disclosures relating to an entity’s
interests in subsidiaries, joint arrangements,
associates and structures entities. New disclosures
have been introduced about the judgements made
by management to determine whether control
50
exists, and to require summarised information about
joint arrangements, associates and structured
entities and subsidiaries with non-controlling
interests. The amendments, which will become
mandatory for Group’s 30 June 2014 financial
statements, are not expected to have any impact on
the financial statements.
» AASB 119 Employee Benefits includes a revised
definition of short-term employee benefits. The
distinction between short-term and other long-term
employee benefits is now based on whether the
benefits are expected to be settled wholly within 12
months after the reporting date. Consequential
amendments were also made to other standards via
AASB 2011-10. The amended standard, which will
become mandatory for the Group’s 30 June 2014
financial statements, is not expected to have a
material impact on the financial statements.
»
Interpretation 20 Stripping Costs in the Production
Phase of a Surface Mine applies to stripping costs
incurred during the production phase of a surface
mine. Production stripping costs are to be
capitalised as part of an asset, if an entity can
demonstrate that it is probable future economic
benefits will be realised, the costs can be reliably
measured and the entity can identify the component
of an ore body for which access has been improved.
This asset is to be called the “stripping activity
asset”.
The stripping activity asset shall be depreciated or
amortised on a systematic basis, over the expected
useful life of the identified component of the ore
body that becomes more accessible as a result of
the stripping activity. The units of production
method shall be applied unless another method is
more appropriate. Interpretation 20 will become
mandatory for the Group’s 30 June 2014 financial
statements. The Group has not yet determined the
potential effect of the interpretation.
» AASB 2012-5 Amendments to Australian Accounting
Standards arising from Annual Improvements
2009-2011 Cycle makes amendments resulting from
the 2009-2011 Annual Improvements Cycle. The
standard addresses a range of improvements,
including the clarification of the comparative
information requirements when an entity provides a
third balance sheet (AASB 101 Presentation of
Financial Statements). The amended standards,
which will become mandatory for the Group’s 30
June 2014 financial statements, relate to disclosures
only and are not expected to have a material impact
on the financial statements.
»
Interpretation 21 Levies confirms that a liability to
pay a levy is only recognised when the activity that
triggers the payment occurs. Applying the going
concern assumption does not create a constructive
obligation. Interpretation 21 will become mandatory
for the Group’s 30 June 2015 financial statements.
The Group has not yet determined the potential
effect of the interpretation.
(D) BASIS OF CONSOLIDATION
The consolidated financial statements comprise the
financial statements of Regis Resources Limited and
its subsidiaries as at and for the year ended 30 June
each year.
Subsidiaries are entities controlled by the Group.
Control exists when the Group has the power, directly or
indirectly to govern the financial and operating policies
of an entity so as to obtain benefits from its activities.
The financial statements of subsidiaries are included in
the consolidated financial statements from the date
control commences until the date control ceases.
The financial statements of subsidiaries are prepared
for the same reporting period as the parent company,
using consistent accounting policies. In preparing the
consolidated financial statements, all intercompany
balances and transactions, income and expenses and
profit and losses resulting from intragroup transactions
have been eliminated in full.
The acquisition of subsidiaries is accounted for using
the acquisition method of accounting. The acquisition
method of accounting involves recognising, at
acquisition date, separately from goodwill, the
identifiable assets acquired, the liabilities assumed and
any non-controlling interest in the acquiree. The
identifiable assets acquired and the liabilities assumed
are measured at their acquisition date fair values.
The difference between the above items and the fair
value of the consideration (including the fair value of
any pre-existing investment in the acquiree) is goodwill
or discount on acquisition.
The Company has a 100% interest in all subsidiaries
and therefore does not reflect any non-controlling
interests.
In the Company’s financial statements, investments in
subsidiaries are carried at cost less any impairment
charge.
51
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) (E) OPERATING SEGMENTS
An operating segment is a component of an entity that
engages in business activities from which it may earn
revenues and incur expenses (including revenues and
expenses relating to transactions with other
components of the same entity), whose operating
results are regularly reviewed by the entity’s chief
operating decision maker to make decisions about
resources to be allocated to the segment and assess its
performance and for which discrete financial
information is available. This includes start up
operations which are yet to earn revenues.
Management will also consider other factors in
determining operating segments such as the existence
of a line manager and the level of segment information
presented to the board of directors.
Operating segments have been identified based on the
information provided to the chief operating decision
makers, being the executive management team.
Operating segments that meet the quantitative criteria
as prescribed by AASB 8 are reported separately.
However, an operating segment that does not meet the
quantitative criteria is still reported separately where
information about the segment would be useful to
users of the financial statements.
Information about other business activities and
operating segments that are below the quantitative
criteria are combined and disclosed in a separate
category for “all other segments”.
amounts of cash and which are subject to an
insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash
and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank
overdrafts. Bank overdrafts are included within
interest-bearing liabilities in current liabilities on the
statement of financial position.
(H) BULLION AWAITING SETTLEMENT
Bullion awaiting settlement comprises gold that has
been received by the refiner prior to period end but
which has not yet been delivered into a sale contract.
Bullion awaiting settlement is initially recognised at
fair value less costs to sell.
(I) RECEIVABLES
Receivables are initially recognised at fair value and
subsequently measured at amortised cost using the
effective interest method, less an allowance for
impairment.
(J) INVENTORIES
Gold bullion, gold in circuit and ore stockpiles are
physically measured or estimated and valued at the
lower of cost and net realisable value. Net realisable
value is the estimated selling price in the ordinary
course of business, less estimated costs of completion
and costs of selling the final product.
(F) FOREIGN CURRENCY TRANSLATION
Functional and presentation currency
Both the functional and presentation currency of Regis
Resources Limited and its subsidiaries is Australian
dollars.
Cost is determined by the weighted average method
and comprises direct purchase costs and an appropriate
portion of fixed and variable overhead costs, including
depreciation and amortisation, incurred in converting
ore into gold bullion.
Transactions and balances
Transactions in foreign currencies are translated to the
functional currency at exchange rates at the dates of
the transactions. The Group does not hold any
monetary assets or liabilities denominated in foreign
currencies as at the balance date. Foreign currency
gains or losses have been recognised in the profit and
loss.
(G) CASH AND CASH EqUIVALENTS
Cash and cash equivalents in the statement of financial
position comprise cash at bank and in hand and
short-term deposits with an original maturity of 3
months or less that are readily convertible to known
Consumable stores are valued at the lower of cost and
net realisable value.
(K) INVESTMENTS AND OTHER
FINANCIAL ASSETS
Investments and financial assets in the scope of AASB
139 Financial Instruments: Recognition and
Measurement are categorised as either financial assets
at fair value through profit or loss, loans and
receivables, held-to-maturity investments or available-
for-sale financial assets. The classification depends on
the purpose for which the investments were acquired
or originated. Designation is re-evaluated at each
reporting date, but there are restrictions on
reclassifying to other categories.
52
When financial assets are initially recognised, they are
measured at fair value, plus, in the case of assets not
at fair value through profit or loss, directly attributable
transaction costs.
Recognition and derecognition
All regular way purchases and sales of financial assets
are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular way
purchases or sales are purchases or sales of financial
assets under contracts that require delivery of the
assets within the period established generally by
regulation or convention in the market place. Financial
assets are derecognised when the right to receive cash
flows from the financial asset has expired or when the
entity transfers substantially all of the risks and
rewards of the financial assets. If the entity neither
retains nor transfers substantially all of the risks and
rewards, it derecognises the asset if it has transferred
control of the assets.
Subsequent measurement
HELD-TO-MATURITY INVESTMENTS
Non-derivative financial assets with fixed or
determinable payments and fixed maturity are
classified as held-to-maturity when the Group has the
positive intention and ability to hold to maturity.
Investments that are intended to be held for an
undefined period are not included in this classification.
Investments that are intended to be held-to-maturity
such as bonds are subsequently measured at amortised
cost. This cost is computed as the amount initially
recognised minus principal repayments, plus or minus
the cumulative amortisation using the effective
interest method of any difference between the initially
recognised amount and the maturity amount. This
calculation includes all fees and points paid or received
between the parties to the contract that are an integral
part of the effective interest rate, transaction costs
and all other premiums and discounts. For investments
carried at amortised cost, gains and losses are
recognised in profit or loss when the investments are
derecognised or impaired, as well as through the
amortisation process.
(L) DERIVATIVES
The Group uses derivative financial instruments such as
gold call options to manage the risk associated with
commodity price fluctuations.
active market is determined using appropriate
valuation techniques.
Changes in fair value are recognised in the statement
of profit or loss and other comprehensive income, net
of any transaction costs.
(M) PLANT AND EqUIPMENT
Items of plant and equipment are stated at cost less
accumulated depreciation and any accumulated
impairment losses. Such costs include the cost of
replacing parts that are eligible for capitalisation when
the cost of replacing the parts is incurred. Similarly,
when each major inspection is performed, its cost is
recognised in the carrying amount of plant and
equipment as a replacement only if it is eligible for
capitalisation. All other repairs and maintenance are
recognised in profit or loss as incurred.
The cost of acquired assets also includes (i) the initial
estimate at the time of installation and during the
period of use, when relevant, of the costs of
dismantling and removing the items and restoring the
site on which they are located, and (ii) changes in the
measurement of existing liabilities recognised for these
costs resulting from changes in the timing or outflow
of resources required to settle the obligation or from
changes in the discount rate.
Where parts of an item of plant and equipment have
different useful lives, they are accounted for as
separate items (major components) of plant and
equipment.
Depreciation
Depreciation of mine specific plant and equipment and
buildings and infrastructure is charged to the
statement of profit or loss and other comprehensive
income on a unit-of-production basis over the
economically recoverable reserves of the mine
concerned, except in the case of assets whose useful
life is shorter than the life of the mine, in which case
the straight-line method is used. The unit of account is
tonnes of ore milled.
Depreciation of non-mine specific plant and equipment
is charged to the statement of profit or loss and other
comprehensive income and exploration and evaluation
assets on a straight-line basis over the estimated
useful lives of each part of an item of plant and
equipment in current and comparative periods as
follows:
Derivatives are initially recognised at fair value on the
date the derivative contract is entered into and are
subsequently measured at fair value. The fair value of
derivative financial instruments that are traded on an
» Plant and equipment: . . . . . . . . . . . . . . . .3 - 10 years
» Fixtures and fittings: . . . . . . . . . . . . . . . . 3 - 20 years
» Leasehold improvements: . . . . . . . . . . . . . . . 10 years
53
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Depreciation methods, useful lives and residual values
are reviewed at each reporting date.
Derecognition
An item of plant and equipment is derecognised upon
disposal or when no further economic benefits are
expected from its use or disposal.
(O) DEFERRED MINING COSTS
Stripping costs incurred in the development of a mine
before production commences are capitalised as part of
the cost of constructing the mine and subsequently
amortised over the life of the mine on a units-of-
production basis.
(N) EXPLORATION AND EVALUATION ASSETS
AND EXPENDITURE
Exploration and evaluation assets include the costs of
acquiring licences, costs associated with exploration
and evaluation activity, and the fair value (at
acquisition date) of exploration and evaluation assets
acquired in a business combination. Exploration and
evaluation expenditure is capitalised on an area of
interest basis. Costs incurred before the Group has
obtained the legal rights to explore an area are
recognised in the statement of profit or loss and other
comprehensive income.
Exploration and evaluation assets are only recognised if
the rights of the area of interest are current and either:
»
the expenditures are expected to be recouped
through successful development and exploitation of
the area of interest; or
» activities in the area of interest have not at the
reporting date, reached a stage which permits a
reasonable assessment of the existence or
otherwise of economically recoverable reserves and
active and significant operations in, or in relation to,
the area of interest are continuing.
Exploration and evaluation assets are assessed for
impairment if (i) sufficient data exists to determine
technical feasibility and commercial viability, and (ii)
facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the
purposes of impairment testing, exploration and
evaluation assets are allocated to cash-generating
units to which the exploration activity relates. The cash
generating unit is not larger than the area of interest.
Once the technical feasibility and commercial viability
of the extraction of mineral resources in an area of
interest are demonstrable, exploration and evaluation
assets attributable to that area of interest are first
tested for impairment and then reclassified to mine
properties under development. No amortisation is
charged during the exploration and evaluation phase.
Recoverability of the carrying amount of the
exploration and evaluation assets is dependent on
successful development and commercial exploitation,
or alternatively, sale of the respective areas of interest.
Stripping costs incurred subsequently during the
production stage of operations are deferred to the
extent that the current period strip ratio (i.e. the ratio
of waste to ore) exceeds the life of mine strip ratio.
Such deferred costs are then charged to the statement
of profit or loss and other comprehensive income to the
extent that, in subsequent periods, the current period
ratio falls short of the life of mine strip ratio. The
calculated strip ratio and the remaining life of mine are
reassessed by the directors annually. Changes are
accounted for prospectively from the date of change.
(P) MINE PROPERTIES UNDER DEVELOPMENT
Mine properties under development represents the
costs incurred in preparing mines for production and
includes plant and equipment under construction,
stripping and waste removal costs incurred before
production commences. These costs are capitalised to
the extent they are expected to be recouped through
the successful exploitation of the related mining
leases. Once production commences, these costs will be
amortised using the units-of-production method based
on the estimated economically recoverable reserves to
which they relate or are written off if the mine property
is abandoned.
Amortisation of mine properties development
expenditure will commence at the point when
production from the geological area of interest
commences.
(q) MINE PROPERTIES
Mine properties represents expenditure in respect of
exploration, evaluation, feasibility and pre-production
operating costs incurred by the Group previously
accumulated and carried forward in mine properties
under development in relation to areas of interest in
which mining has now commenced. Mine properties are
stated at cost, less accumulated amortisation and
accumulated impairment losses.
Amortisation
Mine properties are amortised on a unit-of-production
basis over the economically recoverable reserves of the
mine concerned. The unit of account is tonnes of ore
milled.
54
(R) LEASES
The determination of whether an arrangement is or
contains a lease is based on the substance of the
arrangement and requires an assessment of whether
the fulfilment of the arrangement is dependent on the
use of a specific asset or assets and the arrangement
conveys a right to use the assets.
Group as a lessee
Operating lease payments are recognised as an expense
in the statement of profit or loss and other
comprehensive income on a straight-line basis over the
lease term. Operating lease incentives are recognised
as a liability when received and subsequently reduced
by allocating lease payments between rental expense
and reduction of the liability.
(S) IMPAIRMENT
At each reporting date, the Group assesses whether
there is any indication that an asset may be impaired.
Where an indicator of impairment exists, the Group
makes a formal estimate of recoverable amount. Where
the carrying amount of an asset exceeds its recoverable
amount the asset is considered impaired and is written
down to its recoverable amount.
The recoverable amount of other assets is the greater
of their fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the
asset belongs.
Impairment losses, other than in respect of goodwill,
are reversed when there is an indication that the
impairment loss may no longer exist and there has
been a change in the estimate used to determine the
recoverable amount.
An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss
had been recognised.
Receivables with a short duration are not discounted in
assessing the recoverable amount. Impairment is
recognised when objective evidence is available that a
loss event has occurred.
(T) TRADE AND OTHER PAYABLES
Trade and other payables are carried at amortised cost
and, due to their short-term nature, they are not
discounted. They represent liabilities for goods and
services provided to the Group prior to the end of the
financial year that are unpaid and arise when the Group
becomes obliged to make future payments in respect of
the purchase of these goods and services. The amounts
are unsecured and generally paid within 30 days of
recognition.
(U) INTEREST-BEARING LOANS
AND BORROWINGS
All loans and borrowings are initially recognised at the
fair value of the consideration received less directly
attributable transaction costs.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the effective interest rate method. Fees paid
on the establishment of loan facilities that are yield
related are included as part of the carrying amount of
the loans and borrowings.
Borrowings are classified as current liabilities unless
the Group has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting date.
Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset (i.e. an
asset that necessarily takes a substantial period of
time to get ready for its intended use or sale) are
capitalised as part of the cost of that asset. All other
borrowing costs are expensed as part of finance costs
in the period incurred. Borrowing costs consist of
interest and other costs that an entity incurs in
connection with the borrowing of funds.
(V) PROVISIONS
A provision is recognised in the statement of financial
position when the Group has a present legal or
constructive obligation as a result of a past event, it is
probable that an outflow of economic benefits will be
required to settle the obligation and the provision can
be reliably measured. Where the effect of the time
value of money is material, provisions are determined
by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments
of the time value of money and, where appropriate, the
risks specific to the liability.
55
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Site rehabilitation
The Group records the present value of the estimated
cost of legal and constructive obligations to restore
operating locations in the period in which the obligation
is incurred. The nature of rehabilitation activities
includes dismantling and removing structures,
rehabilitating mines, dismantling operating facilities,
closure of plant and waste sites and restoration,
reclamation and revegetation of affected areas.
Typically the obligation arises when the assets are
installed at the production location. The provision is
the best estimate of the present value of the
expenditure required to settle the rehabilitation
obligation at the reporting date, based on current legal
requirements and technology.
When the liability is initially recorded, the estimated
cost is capitalised by increasing the carrying amount of
the related mining assets. Over time, the liability is
increased for the change in the present value based on
the discount rates that reflect the current market
assessments and the risks specific to the liability. This
increase in the provision due to the passage of time is
recognised as a finance cost in the statement of profit
or loss and other comprehensive income. Additional
disturbances or changes in rehabilitation costs will be
recognised as additions or changes to the
corresponding asset and rehabilitation provision when
incurred.
For closed sites, changes to estimated costs are
recognised immediately in the statement of profit or
loss and other comprehensive income.
(W) EMPLOYEE BENEFITS
Wages, salaries and annual leave
Liabilities for wages, salaries, superannuation and
annual leave are recognised as employee benefits in
respect of employees’ services up to the reporting date.
They are calculated at undiscounted amounts based on
remuneration wage and salary rates that the Group
expects to pay when the liabilities are settled and
include related on-costs, such as workers compensation
insurance and payroll tax.
Long service leave
The liability for long service leave is recognised and
measured as the present value of expected future
payments to be made in respect of services provided by
employees up to the reporting date using the projected
unit credit method. Consideration is given to the
expected future wage and salary levels, experience of
employee departures, and periods of service. Expected
future payments are discounted using market yields at
the reporting date on national government bonds with
terms to maturity and currencies that match, as closely
as possible, the estimated future cash outflows.
(X) SHARE-BASED PAYMENT TRANSACTIONS
Equity settled transactions
Share-based compensation benefits are provided to
directors, officers and employees under the Regis
Resources Limited Share Option Plans, which allows
participants to acquire shares of the Company, and the
Regis Resources Employee Share Plan, which allows for
the issue of shares in the Company to eligible
employees.
The cost of these equity-settled transactions with
employees is measured by reference to the fair value of
the equity instruments at the date at which they are
granted. The fair value is determined using a Black-
Scholes option pricing model, further details of which
are given in Note 26.
The grant date fair value of options granted to
employees is recognised as an employee expense, with
a corresponding increase in equity, over the period that
the employees become unconditionally entitled to the
options (the vesting period), ending on the date on
which the relevant employees become fully entitled to
the award (the vesting date).
At each subsequent reporting date until vesting, the
cumulative charge to the statement of profit or loss
and other comprehensive income is the product of:
» The grant date fair value of the award;
» The current best estimate of the number of awards
that will vest, taking into account such factors as
the likelihood of employee turnover during the
vesting period and the likelihood of non-market
performance conditions being met; and
» The expired portion of the vesting period.
Until an award has vested, any amounts recorded are
contingent and will be adjusted if more or fewer awards
vest than were originally anticipated to do so. Any
award subject to a market condition or non-vesting
condition is considered to vest irrespective of whether
or not that market or non-vesting is fulfilled, provided
that all other conditions are satisfied.
If the terms of an equity-settled award are modified,
as a minimum an expense is recognised as if the terms
had not been modified. An additional expense is
recognised for any modification that increases the total
fair value of the share-based payment arrangement, or
is otherwise beneficial to the employee, as measured
at the date of modification.
56
If an equity-settled award is cancelled, it is treated as if
it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised
immediately. However if a new award is substituted for
the cancelled award and designated as a replacement
award on the date that it is granted, the cancelled and
new award are treated as if they were a modification of
the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.
(Y) CONTRIBUTED EqUITY
Ordinary shares are classified as equity. Transaction
costs of an equity transaction being those directly
attributable to the issue of shares or options are
recognised as a deduction from equity, net of any
related income tax effects.
(z) REVENUE
Revenue is recognised and measured at fair value of
the consideration received or receivable to the extent
that it is probable that the economic benefit will flow
to the entity and the revenue can be measured reliably.
The following specific recognition criteria must also be
met before revenue is recognised:
Gold sales
Revenue is recognised when there has been a transfer
of risks and rewards from the Group to an external
party, no further processing is required by the Group,
quality and quantity of the goods has been determined
with reasonable accuracy, the selling price is fixed or
determinable, and collectability is probable. The point
at which risk and rewards passes for the majority of the
Group’s commodity sales is upon dispatch of the gold
bullion from the mine site. Adjustments are made for
variations in commodity price, assay and weight
between the time of dispatch and the time of final
settlement.
Interest
Interest income is recognised as it accrues using the
effective interest method.
(AA) INCOME AND OTHER TAXES
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or
substantially enacted at the reporting date, and any
adjustment to tax payable in respect of previous years.
Deferred tax balances are determined using the balance
sheet method, which provides for temporary
differences based on the carrying amounts of assets
and liabilities in the statement of financial position.
Any current and deferred taxes attributable to amounts
recognised in equity are also recognised directly in
equity.
Deferred tax is not recognised for the following
temporary differences:
»
the initial recognition of assets or liabilities in a
transaction that is not a business combination and
that affects neither accounting nor taxable profit,
and
» differences relating to investments in subsidiaries
and jointly controlled entities to the extent that
they probably will not reverse in the foreseeable
future.
Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences
when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised only to the extent
that it is probable that future taxable profits will be
available against which the asset can be utilised.
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Tax consolidation
The Company and its wholly-owned Australian resident
entities became part of a tax-consolidated group on 14
December 2006. As a consequence, all members of the
tax-consolidation group are taxed as a single entity
from that date. The head entity within the tax-
consolidation group is Regis Resources Limited.
Current tax expense/income, deferred tax liabilities and
deferred tax assets arising from temporary differences
of the members of the tax-consolidated group are
recognised in the separate financial statements of the
members of the tax-consolidated group using the
separate taxpayer within group approach by reference
to the carrying amounts of assets and liabilities in the
separate financial statement of each entity and the tax
values applying under tax consolidation.
Any current tax liabilities (or assets) and deferred tax
assets arising from unused tax losses of the
subsidiaries are assumed by the head entity in the
tax-consolidated group and are recognised by the
Company as amounts payable (receivable) to/(from)
other entities in the tax-consolidated group in
57
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) conjunction with any tax funding arrangement
amounts (refer Note 8). Any difference between these
amounts is recognised by the Company as an equity
contribution or distribution.
The Company recognises deferred tax assets arising
from unused tax losses of the tax-consolidated group
to the extent that it is probable that future taxable
profits of the tax-consolidated group will be available
against which asset can be utilised.
Any subsequent period adjustment to deferred tax
assets arising from unused tax losses as a result of
revised assessments of the probability of recoverability
is recognised by the head entity only.
Other taxes
Revenue, expenses and assets are recognised net of
the amount of goods and services tax (“GST”), except
where the amount of GST incurred is not recoverable
from the taxation authority. In these circumstances,
the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense.
Receivables and payables are stated with the amount
of GST included. The net amount of GST recoverable
from, or payable to, the Australian Taxation Office
(“ATO”) is included as a current asset or liability in the
statement of financial position.
Cash flows are included in the statement of cash flows
on a gross basis. The GST components of cash flows
arising from investing and financing activities which
are recoverable from, or payable to, the ATO are
classified as operating cash flows.
(AB) EARNINGS PER SHARE
The Group presents basic and diluted earnings per
share (“EPS”) data for ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during
the period.
Diluted EPS is determined by adjusting the profit or
loss attributable to ordinary shareholders and the
weighted average number of ordinary shares
outstanding for the effects of all dilutive potential
ordinary shares, which comprise listed options and
share options granted to employees.
3. SIGNIFICANT ACCOUNTING
JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS
The preparation of the financial statements in
conformity with Australian Accounting Standards
requires management to make judgements, estimates
and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income
and expenses. The estimates and associated
assumptions are based on historical experience and
various other factors that are believed to be reasonable
under the circumstances. These form the basis of
making the judgements about carrying values of assets
and liabilities that are not readily apparent from other
sources.
The estimates and underlying assumptions are
reviewed on an on-going basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that
period, or in the period of revision and future periods if
the revision affects both current and future periods.
Management has identified the following critical
accounting policies for which significant judgements,
estimates and assumptions are made. Actual results
may differ from these estimates under different
assumptions and conditions and may materially affect
financial results or the financial position reported in
future periods.
Further details of the nature of these assumptions and
conditions may be found in the relevant notes to the
financial statements.
(A) SIGNIFICANT ACCOUNTING JUDGEMENTS
Determination of mineral resources and ore reserves
The determination of mineral resources and ore
reserves impacts the accounting for asset carrying
values. Regis Resources Limited estimates its mineral
resources and ore reserves in accordance with the
Australian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves 2012 (the “JORC”
Code). The information on mineral resources and ore
reserves was prepared by or under the supervision of
Competent Persons as defined in the JORC Code. The
amounts presented are based on the mineral resources
and ore reserves determined under the JORC Code.
There are numerous uncertainties inherent in
estimating mineral resources and ore reserves, and
assumptions that are valid at the time of estimation
may change significantly when new information
becomes available.
58
Changes in the forecast prices of commodities,
exchange rates, production costs or recovery rates may
change the economic status of reserves and may
ultimately result in reserves being restated.
Recovery of deferred tax assets
Judgement is required in determining whether deferred
tax assets are recognised on the statement of financial
position. Deferred tax assets, including those arising
from unutilised tax losses, require management to
assess the likelihood that the Group will generate
taxable earnings in future periods, in order to utilise
recognised deferred tax assets. Estimates of future
taxable income are based on forecast cash flows from
operations and the application of existing tax laws in
Australia.
To the extent that future cash flows and taxable
income differ significantly from estimates, the ability
of the Group to realise the net deferred tax assets
recorded at the reporting date could be impacted.
Additionally, future changes in tax laws in Australia
could limit the ability of the Group to obtain tax
deductions in future periods.
(B) SIGNIFICANT ACCOUNTING ESTIMATES
AND ASSUMPTIONS
Impairment of exploration and evaluation assets
The future recoverability of capitalised exploration and
evaluation expenditure is dependent upon a number of
factors, including whether the Group decides to exploit
the related lease itself or, if not, whether it successfully
recovers the related exploration and evaluation asset
through sale.
Factors that could impact future recoverability include
the level of reserves and resources, future technological
changes which could impact the cost of mining, future
legal changes (including changes to environmental
restoration obligations) and changes to commodity
prices.
To the extent that capitalised exploration and
evaluation expenditure is determined not to be
recoverable in the future, profits and net assets will be
reduced in the period in which the determination is
made.
In addition, exploration and evaluation expenditure is
capitalised if activities in an area of interest have not
yet reached a stage that permits a reasonable
assessment of the existence or otherwise of
economically recoverable reserves. To the extent it is
determined in the future that this capitalised
expenditure should be written off, profits and net
assets will be reduced in the period in which the
determination is made.
Rehabilitation obligations
The Group assesses site rehabilitation liabilities
annually. The provision recognised is based on an
assessment of the estimated cost of closure and
reclamation of the areas using internal information
concerning environmental issues in the exploration and
previously mined areas, together with input from
various environmental consultants, discounted to
present value. Significant estimation is required in
determining the provision for site rehabilitation as
there are many factors that may affect the timing and
ultimate cost to rehabilitate sites where mining and/or
exploration activities have previously taken place.
These factors include future development/exploration
activity, changes in the cost of goods and services
required for restoration activity and changes to the
legal and regulatory framework. These factors may
result in future actual expenditure differing from the
amounts currently provided.
Share-based payments
The Group is required to use assumptions in respect of
the fair value models used in determining share-based
payments to employees in accordance with the
requirements of AASB 2 Share–based payment. Further
information regarding share-based payments and the
assumptions used is set out in Note 26. The accounting
estimates and assumptions relating to equity-settled
share-based payments would have no impact on the
carrying amounts of assets and liabilities within the
next annual reporting period but may impact expenses
and equity.
Unit-of-production method of
depreciation/amortisation
The Group uses the unit-of-production basis when
depreciating/amortising life of mine specific assets
which results in a depreciation/amortisation charge
proportionate to the depletion of the anticipated
remaining life of mine production. Each item’s
economic life, which is assessed annually, has due
regard for both its physical life limitations and to
present assessments of economically recoverable
reserves of the mine property at which it is located.
These calculations require the use of estimates and
assumptions.
Deferred mining costs
The Group defers mining costs incurred during the
production stage of its operations which are calculated
in accordance with the accounting policy described
above. Changes in an individual mine’s design will
generally result in changes to the life-of-mine waste to
59
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) ore ratio. Changes in other technical or economic
parameters that impact reserves will also have an
impact on the life of mine ratio even if they do not
affect the mine’s design. Changes to the life of mine
are accounted for prospectively.
Inventories
Net realisable value tests are performed at each
reporting date and represent the estimated future
sales price of the product based on prevailing spot
metals process at the reporting date, less estimated
costs to complete production and bring the product to
sale.
Stockpiles are measured by estimating the number of
tonnes added and removed from the stockpile, the
number of contained gold ounces based on assay data,
and the estimated recovery percentage. Stockpile
tonnages are verified by periodic surveys.
4. FINANCIAL RISK MANAGEMENT
Overview
The Group has exposure to the following risks from its
use of financial instruments:
» Credit risk
» Liquidity risk
» Market risk
This note presents information about the Group’s
exposure to each of the above risks and its objectives,
policies and processes for measuring and managing
risk. Further quantitative disclosures are included
throughout this financial report.
risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect
changes in market conditions and the Group’s
activities. The Group, through its training and
management standards and procedures, aims to
develop a disciplined and constructive control
environment in which all employees understand their
roles and obligations.
The Group’s Audit and Risk Management Committee
oversees how management monitors compliance with
the Group’s risk management policies and procedures
and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
Credit Risk
The Group has determined that it currently has no
significant exposure to credit risk as at reporting date.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able
to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as
far as possible, that it will always have sufficient
liquidity to meet liabilities when due, under both
normal and stressed conditions, without incurring
unacceptable losses or risk damage to the Group’s
reputation.
The Group uses daily and monthly cash forecasting
monitoring cash flow requirements. Typically the Group
ensures that it has sufficient cash on demand to meet
expected operational expenses, including the servicing
of financial obligations; this excludes the potential
impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters.
The Group’s exposure to movements in the gold price,
which it manages through the use of gold forward
contracts, is discussed at Note 31(e). The gold forward
sale contracts do not meet the criteria of financial
instruments for accounting purposes on the basis that
they meet the normal purchase/sale exemption
because physical gold will be delivered into the
contract.
Market risk
Market risk is the risk that changes in market prices,
such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or value of
its holdings of financial instruments. The objective of
market risk management is to manage and control
market risk exposures within acceptable parameters,
while optimising the return.
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management
framework. The Audit and Risk Management
Committee is responsible for developing and
monitoring risk management policies. The committee
reports regularly to the Board of Directors on its
activities.
Risk management policies are established to identify
and analyse the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor
»
Interest rate risk: The Group’s exposure to interest
rate risk has been minimised since the substantial
repayment of the secured project loan facility with
Macquarie Bank Limited (“MBL”) in November 2012.
» Foreign currency risk: The Group is occasionally
exposed to foreign currency risk when long lead
items are purchased in a currency other than
Australian dollars. The Group maintains all of its
cash in Australian dollars and does not currently
hedge these purchases.
60
» Equity price risk: The Group does not have any
exposure to movements in equity prices.
5. SEGMENT INFORMATION
Identification of reportable segments
The Group has identified its operating segments based
on the internal reports that are reviewed and used by
the Managing Director and his management team (the
chief operating decision makers, or “CODMs”) in
assessing performance and in determining the
allocation of resources.
An operating segment is a component of the Group
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of
the Group’s other components. An operating segment’s
results are reviewed regularly by the CODMs to make
decisions about resources to be allocated to the
segment and assess its performance, and for which
discrete financial information is available.
Segment results that are reported to the CODMs
include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate assets
(primarily the Company’s headquarters), exploration
and evaluation assets relating to areas of interest
where an economically recoverable reserve is yet to be
delineated, head office expenses and income tax assets
and liabilities.
Segment capital expenditure is the total cost incurred
during the period to acquire property, plant and
equipment, conduct exploration and evaluation
activities and develop mine properties.
The Group currently has two reportable segments which
comprise the Duketon Gold Project being the Moolart
Well Gold Mine and the Garden Well Gold Mine, which
incorporates the Rosemont Gold Project. At 30 June
2013, development of the Rosemont Gold Project was
ongoing and consequently it has not yet earned any
revenues or incurred non-capitalised expenses.
Operations commenced at the Garden Well Gold Mine in
September 2012, as such there is no comparative
financial information for segment revenue and results.
Accounting policies and inter-segment transactions
The accounting policies used by the Group in reporting
segments internally are the same as those contained in
Note 2 to the accounts and in the prior period. There
have not been any inter-segment transactions in the
current or prior years.
Unallocated items
The following items and associated assets and
liabilities are not allocated to operating segments as
they are not considered part of the core operations of
any segment:
»
Interest revenue and finance costs;
» Corporate administrative costs;
» Exploration and evaluation expenditure on areas of
interest prior to the definition of a reserve and
determination of the technical feasibility and
commercial viability.
The following table presents financial information for
reportable segments for the years ended 30 June 2013
and 30 June 2012:
61
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Continuing operations
moolart Well
gold mine
garden Well
gold mine unalloCated
$’000
$’000
$’000
30 June 2013
SEGMENT REVENUE
Sales to external customers
Other revenue
Total segment revenue
166,011
-
166,011
Total revenue per the statement of profit or loss and other comprehensive income
Interest expense
Exploration and evaluation expenditure written off
-
-
250,106
-
250,106
-
-
Depreciation and amortisation
19,148
24,151
Depreciation capitalised
-
717
717
1,698
1,396
274
Total depreciation and amortisation recognised in the statement of profit or loss and other comprehensive income
total
$’000
416,117
717
416,834
416,834
1,698
1,396
43,573
(178)
43,395
SEGMENT RESULT
Segment net operating profit/(loss) before tax
81,940
126,926
(8,172)
200,694
SEGMENT ASSETS
Segment assets
Capital expenditure
30 June 2012
SEGMENT REVENUE
Sales to external customers
Other revenue
Total segment revenue
94,222
9,928
170,355
-
170,355
Total revenue per the statement of profit or loss and other comprehensive income
Interest expense
Exploration and evaluation expenditure written off
Depreciation and amortisation
Depreciation capitalised
-
-
24,274
291,831
280,536
666,589
165,879
156,878
332,685
-
-
-
-
-
-
-
1,149
1,149
2,930
786
149
170,355
1,149
171,504
171,504
2,930
786
24,423
(62)
24,361
Total depreciation and amortisation recognised in the statement of profit or loss and other comprehensive income
SEGMENT RESULT
Segment net operating profit/(loss) before tax
84,577
-
(9,828)
74,749
SEGMENT ASSETS
Segment assets
Capital expenditure
107,854
15,497
168,391
155,773
42,235
17,314
318,480
188,584
62
6. OTHER INCOME
Realised gain on gold options
Movement in rehabilitation provision
Exploration rent refunds
Rental income
note
(i)
Consolidated
2013
$’000
2012
$’000
2,363
1,354
4
16
3,737
1,370
285
3
-
1,658
(i)
During the financial year, the Group sold a gold call option for 50,000 ounces at A$1,600/oz (2012: 20,000oz at A$1,930/oz). The options expired
unexercised and the above gains reflect the premiums received.
7. EXPENSES
(A) COST OF GOODS SOLD
Costs of production
Royalties
Depreciation of mine plant and equipment
Amortisation of development costs
(B) OTHER EXPENSES
Gold swap fees
Business development
Exploration license application fees
(C) FINANCE COSTS
Interest expense
Unwinding of discount on provisions
146,551
17,398
24,717
18,581
207,247
123
204
48
375
1,698
459
2,157
(D) DEPRECIATION, IMPAIRMENT AND AMORTISATION INCLUDED IN THE STATEMENT OF
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Depreciation expense
Amortisation expense
Less: Amounts capitalised
Depreciation and amortisation charged to the statement of profit or loss and other
comprehensive income
24,992
18,581
(178)
43,395
(E) LEASE PAYMENTS AND OTHER EXPENSES INCLUDED IN THE STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Minimum lease payments – operating lease
Less: Amounts capitalised
Recognised in the statement of profit or loss and other comprehensive income
342
(103)
239
63
53,863
7,641
13,356
10,918
85,778
53
173
42
268
2,931
460
3,391
13,505
10,918
(62)
24,361
294
(84)
210
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) note
(F) EMPLOYEE BENEFITS EXPENSE
Wages and salaries
Defined contribution superannuation expense
Share-based payments expense
Employee bonuses
Other employee benefits expense
Less: Amounts capitalised
Employee benefits expense recognised in the statement of profit or loss and other
comprehensive income
8. INCOME TAX
(A) THE MAJOR COMPONENTS OF INCOME TAX EXPENSE ARE:
Current inCome tax
Current income tax expense
deferred inCome tax
Consolidated
2013
$’000
22,241
1,946
2,616
467
1,937
29,207
(7,237)
21,970
2012
$’000
14,648
1,263
2,039
201
1,042
19,193
(8,084)
11,109
10,157
3,625
Relating to the origination and reversal of temporary differences
Adjustment in respect of income tax of previous years
Income tax losses utilised
Income tax expense reported in the statement of profit or loss and other
comprehensive income
44,586
224
-
54,967
(B) A RECONCILIATION BETWEEN TAX EXPENSE AND THE PRODUCT OF ACCOUNTING PROFIT BEFORE
TAX MULTIPLIED BY THE GROUP’S APPLICABLE INCOME TAX RATE IS AS FOLLOWS:
Accounting profit before income tax
At the Group’s statutory income tax rate of 30% (2012: 30%)
R&D rebate
Deductible exploration acquired
Share-based payments
Share issue costs amortised
Other non-deductible items
Adjustment in respect of income tax of previous years
Deferred tax assets utilised
Income tax reported in the statement of profit or loss and other
comprehensive income
200,694
60,208
-
(6,253)
785
-
3
224
-
54,967
19,285
(184)
(16,216)
6,510
74,749
22,425
(116)
-
611
(13)
3
(184)
(16,216)
6,510
64
(C) DEFERRED INCOME TAX
Deferred income tax at 30 June relates to the following:
deferred tax liaBilities
Receivables
Inventories
Prepayments
Plant and equipment
Deferred mining costs
Exploration and evaluation expenditure
Mine properties under development
Mine properties
Interest-bearing liabilities
Gross deferred tax liabilities
Set off of deferred tax assets
Net deferred tax liabilities
deferred tax assets
Plant and equipment
Trade and other payables
Provisions
Expenses deductible over time
Tax losses carried forward
Gross deferred tax assets
Set off of deferred tax assets
Unrecognised tax losses
Net deferred tax assets
Consolidated
note
2013
$’000
2012
$’000
3,039
1,197
-
-
3,563
39,578
5,667
38,371
-
91,415
(29,938)
61,477
5,633
671
7,195
807
15,632
29,938
(29,938)
-
-
1,725
214
11
-
3,072
8,788
20,046
11,538
13
45,407
(38,897)
6,510
3,087
473
4,705
1,723
28,909
38,897
(38,897)
-
-
(i)
(i) Tax losses are available to carry forward indefinitely. The Group has recognised a deferred income tax asset in relation to
these losses to offset deferred tax liabilities.
(D) UNRECOGNISED TEMPORARY DIFFERENCES
At 30 June 2013 there are no unrecognised temporary differences associated with the Group’s investment in subsidiaries (2012: $nil).
(E) TAX CONSOLIDATION
nature of tax funding arrangements and tax sharing arrangements
The head entity, in conjunction with other members of the tax-consolidated group, have entered into a tax funding arrangement
which sets out the funding obligations of members of the tax-consolidated group in respect of tax amounts. The tax funding
arrangements require payments to/from the head entity equal to the current tax liability/(asset) assumed by the head entity and any
tax-loss deferred tax asset assumed by the head entity, resulting in the head entity recognising an inter-entity receivable/(payable)
equal in amount to the tax liability/(asset) assumed. The inter-entity receivables/(payables) will be at call.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of the head
entity’s obligation to make payments for tax liabilities to the relevant tax authorities.
65
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) The head entity in conjunction with other members of the tax-consolidated group has also entered into a tax sharing agreement. The
tax sharing agreement will provide for the determination of the allocation of income tax liabilities between the entities should the
head entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this
agreement as payment of any amounts under the tax sharing agreement is considered remote.
Consolidated
note
2013
$’000
2012
$’000
9. EARNINGS PER SHARE
The following reflects income and share data used in the calculation of basic and diluted earnings per share.
(A) EARNINGS USED IN CALCULATING EARNINGS PER SHARE
Net profit/ attributable to ordinary equity holders of the parent
145,727
68,239
(B) WEIGHTED AVERAGE NUMBER OF SHARES
Weighted average number of ordinary shares used in
calculating basic earnings per share
EFFECT OF DILUTION:
Share options
Weighted average number of ordinary shares adjusted for the effect of dilution
no. shares
thousands
no. shares
thousands
477,988
440,000
(c)
6,033
484,021
9,464
449,464
There are no instruments excluded from the calculation of diluted earnings per share that could potentially
dilute basic earnings per share in the future because they are antidilutive for either of the periods presented.
There have been no transactions involving ordinary shares or potential ordinary shares that would significantly
change the number of ordinary shares or potential ordinary shares outstanding between reporting date and
the date of completion of these financial statements.
(C) INFORMATION ON THE CLASSIFICATION OF SECURITIES
Options
Options granted to employees (including KMP) as described in Note 26 are considered to be
potential ordinary shares and have been included in the determination of diluted earnings per share
to the extent they are dilutive. These options have not been included in the determination of basic
earnings per share.
10. CASH AND CASH EqUIVALENTS
(A) CASH AND CASH EqUIVALENTS IN THE STATEMENT OF FINANCIAL
POSITION AND CASH FLOW STATEMENT
Cash at banks and on hand
Short-term deposits
Total cash and cash equivalents
41,220
20,000
61,220
1,353
-
1,353
Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of
between one and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective
short-term deposit rates
At 30 June 2013, the Group had nil undrawn committed borrowing facilities available (2012: $49.6 million). Refer to Note 22.
66
(B) RECONCILIATION OF NET PROFIT AFTER INCOME TAX TO CASH FLOWS USED IN OPERATIONS
Consolidated
note
2013
$’000
2012
$’000
Net profit for the year
ADJUSTMENTS FOR:
Unwinding of discount on provisions
Borrowing costs capitalised to qualifying asset
Amortisation of transaction costs recognised against interest-bearing liabilities
Employee bonuses (non-cash)
Exploration expenditure written off
Exploration rent refunds
Share-based payments
Depreciation and amortisation
CHANGES IN ASSETS AND LIABILITIES
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in other current assets
(Increase)/decrease in deferred mining costs
Increase/(decrease) in trade and other payables
Increase/(decrease) in deferred tax liabilities
Increase/(decrease) in provisions
Net cash from operating activities
145,727
68,239
459
(97)
287
-
1,396
(4)
2,616
43,395
(12,672)
(4,607)
(933)
248
11,767
54,967
(1,271)
241,278
460
(540)
147
179
786
(3)
2,039
24,361
(2,053)
483
(148)
(5,366)
1,382
6,510
(251)
96,225
(C) NON-CASH FINANCING AND INVESTING ACTIVITIES
During the year ended 30 June 2013, the Company completed the acquisition of the
McPhillamys Gold Project as described in Note 18(a). The consideration payable of $150
million was settled through the issue of 35,714,286 shares.
During the year ended 30 June 2012, the Company terminated a royalty over the Garden
Well Project through the issue of 4,038,364 shares.
11. GOLD BULLION AWAITING SETTLEMENT (CURRENT)
Gold bullion awaiting settlement
19,640
8,313
At balance date, gold bullion awaiting settlement comprised 13,782 ounces at a weighted average realisable
value of $1,424.98/oz (2012: 4,602 ounces at $1,806.29/oz)
(A) FAIR VALUE AND CREDIT RISK
Due to the short-term nature of the bullion awaiting settlement, the carrying value is assumed to
approximate fair value.
The maximum exposure to credit risk is the fair value.
67
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Consolidated
note
2013
$’000
2012
$’000
12. RECEIVABLES (CURRENT)
GST receivable
Fuel tax credit receivable
Interest receivable
Other receivables
3,282
738
170
169
4,359
Balances within receivables do not contain impaired assets and are not past due.
It is expected that these other balances will be received when due.
(A) FAIR VALUE AND CREDIT RISK
Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value.
The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it
the Group’s policy to transfer (on-sell) receivables to special purpose entities.
13. INVENTORIES (CURRENT)
AT COST
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
6,119
4,836
2,087
2,112
15,154
2,070
519
16
81
2,686
1,069
1,662
-
1,285
4,016
14. FINANCIAL ASSETS HELD - TO - MATURITY
CURRENT
Term deposits
154
10
Term deposits are held as security against rehabilitation performance bonds. Term
deposits earn a fixed rate of interest which at year end was 3.43% (2012: 4.32%).
(A) FAIR VALUE
Term deposits generally have a maturity between 30 and 90 days (2012: 30 to 60 days). Due to the underlying short-term nature of
term deposits, their carrying value is assumed to approximate fair value.
15. OTHER CURRENT ASSETS
Prepayments
1,323
387
16. DEFERRED MINING COSTS (NON-CURRENT)
Deferred mining costs
12,192
10,555
These costs represent mining expenses deferred in accordance with the accounting policy disclosed in Note 2(o).
68
Consolidated
freehold
land
leasehold
improvements
plant and
equipment
furniture and
equipment
Buildings and
infrastruCture
Capital Wip
total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
17. PROPERTY, PLANT AND EqUIPMENT (NON-CURRENT)
(A) RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND END OF THE PERIOD
At 1 July 2012 net of
accumulated depreciation
Additions
Depreciation expense
Transfers from mine properties
under development
Transfers
Disposals
At 30 June 2013 net of
accumulated depreciation
AT 30 JUNE 2013
Cost
Accumulated depreciation
Net carrying amount
At 1 July 2011 net of
accumulated depreciation
Additions
Depreciation expense
Transfers
Disposals
At 30 June 2012 net of
accumulated depreciation
AT 30 JUNE 2011
Cost
Accumulated depreciation
Net carrying amount
AT 30 JUNE 2012
Cost
Accumulated depreciation
Net carrying amount
-
5,028
-
-
-
-
518
70
(70)
-
-
-
35,770
4,962
(17,236)
87,641
60
-
128
284
(96)
-
41
-
18,653
4,148
(7,590)
29,019
159
-
418
4,539
-
-
(260)
-
55,487
19,031
(24,992)
116,660
-
-
5,028
518
111,197
357
44,389
4,697
166,186
5,028
-
5,028
-
-
-
-
-
-
-
-
-
-
-
-
687
(169)
518
472
71
(52)
27
-
146,443
(35,246)
111,197
43,597
1,540
(9,482)
115
-
518
35,770
520
(48)
472
618
(100)
518
52,125
(8,528)
43,597
53,780
(18,010)
35,770
826
(469)
357
157
46
(79)
4
-
128
451
(294)
157
501
(373)
128
59,207
(14,818)
44,389
15,483
6,923
(3,892)
139
-
4,697
216,888
-
(50,702)
4,697
166,186
291
412
-
(285)
-
60,000
8,992
(13,505)
-
-
18,653
418
55,487
18,819
(3,336)
15,483
25,881
(7,228)
18,653
291
-
291
418
-
418
72,206
(12,206)
60,000
81,198
(25,711)
55,487
(B) ASSETS PLEDGED AS SECURITY
Macquarie Bank Limited (“MBL”) holds a first ranking, registered fixed and floating charge over all of the
assets of Regis Resources Limited and its wholly-owned subsidiary, Duketon Resources Pty Limited as
security for the debt facility provided by MBL to fund construction of the Duketon Gold Project, which
comprises both the Moolart Well Gold Mine and Garden Well Gold Mine. Refer to Note 22.
69
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Consolidated
note
2013
$’000
2012
$’000
18. EXPLORATION AND EVALUATION ASSETS (NON-CURRENT)
Balance at 1 July
29,293
Expenditure for the period
Acquisition of McPhillamys mining information
Write-offs to the statement of profit or loss and other
comprehensive income
Transferred to mine properties under development
Balance at 30 June
(a)
19
31,184
149,680
(1,396)
(4,117)
204,644
24,507
17,226
-
(786)
(11,654)
29,293
The ultimate recoupment of costs carried forward is dependent upon the successful development and commercial exploitation, or
alternatively the sale of the respective areas at an amount at least equivalent to the carrying value.
(A) ACqUISITION OF THE MCPHILLAMYS GOLD PROJECT
On 16 November 2012, the Group acquired the McPhillamys Gold Project, an exploration stage project located in
the Bathurst region of NSW, Australia, owned by Newmont Exploration Pty Ltd (51%) and Alkane Resources Ltd
(49%) in a joint venture. The property acquired comprises three exploration licenses (including the gold
resource), mining information, and two freehold properties overlapping part of the project area.
Newmont’s 51% interest was acquired as a straight asset purchase, comprising one of the freehold properties
and mining information.
Alkane’s 49% interest was acquired through the acquisition by Regis of Alkane’s wholly-owned subsidiary, LFB
Resources NL (“LFB”). The total consideration paid and respective values assigned to the assets acquired from
each party are detailed below:
CONSIDERATION PAID
Shares issued
Transaction costs capitalised
Total consideration paid
ASSETS ACqUIRED
Cash
Security deposits
Receivables
Freehold properties
Exploration and evaluation expenditure
Total assets acquired
neWmont 51%
$’000
alkane 49%
$’000
total
$’000
76,500
4,614
81,114
-
-
-
4,235
76,879
81,114
73,500
441
73,941
6
120
2
1,012
72,801
73,941
150,000
5,055
155,055
6
120
2
5,247
149,680
155,055
The acquisition of the McPhillamys Gold Project was not accounted for as a business combination because the
set of activities acquired did not meet the definition of a business as required by Accounting Standards.
70
Consolidated
note
2013
$’000
2012
$’000
19. MINE PROPERTIES UNDER DEVELOPMENT (NON-CURRENT)
(A) GARDEN WELL GOLD MINE
Balance at beginning of period
Capitalised borrowing costs
Transferred from exploration and evaluation assets
Newmont royalty termination expense
Pre-production expenditure capitalised
Rehabilitation provision recognised
Construction expenditure
Transferred to plant and equipment
Transferred to deferred mining costs
Transferred to mine properties
Balance at end of period
(B) ASSETS PLEDGED AS SECURITY
18
17
20
167,919
97
4,117
-
32,497
7,918
46,249
(116,660)
(1,885)
(77,951)
62,301
Macquarie Bank Limited (“MBL”) holds a first ranking, registered fixed and floating charge over all of the
assets of Regis Resources Limited and its wholly-owned subsidiary, Duketon Resources Pty Limited as
security for the debt facility provided by MBL to fund construction of the Duketon Gold Project. Refer to
Note 22.
20. MINE PROPERTIES (NON-CURRENT)
Balance at beginning of period
Transferred from mine properties under development
19(a)
Additions
Amortisation expense
Balance at end of period
21. TRADE AND OTHER PAYABLES (CURRENT)
Trade payables
Accrued expenses
Employee entitlements
Other payables
(A) FAIR VALUE
38,461
77,951
21,586
(18,582)
119,416
17,374
16,825
1,653
5,643
41,495
Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.
12,275
540
11,654
12,000
37,100
5,527
88,823
-
-
-
167,919
48,023
-
1,356
(10,918)
38,461
8,504
15,928
1,041
2,803
28,276
71
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) 22. INTEREST-BEARING LIABILITIES
CURRENT
Secured bank loan
NON-CURRENT
Secured bank loan
(A) SECURED BANK LOAN
Consolidated
note
2013
$’000
2012
$’000
(a)(b)
(a)(b)
10
-
4,883
25,194
During the year ended 30 June 2013, there were no draw downs on the secured bank loan (2012: nil). The debt
was substantially repaid in November 2012.
The loan attracts a variable interest rate which ranged between 6.575% and 6.920% in the current year (2012:
7.035% to 8.573%).
The debt facility also incorporates a performance bond facility whereby MBL provides performance bonds in
relation to statutory environmental obligations on certain tenements and guarantees in relation to office
lease commitments. At year end, the performance bond facility limit was $20 million (2012: $20 million) and
the amount used was $19,397,910 (2012: $14,257,410). The performance bonds are not required to be cash-
backed until 30 June 2016.
(B) ASSETS PLEDGED AS SECURITY
The facility is secured by:
» a first ranking, registered fixed and floating charge over all of the assets of Regis Resources Limited and
its wholly-owned subsidiary Duketon Resources Pty Limited;
» a first ranking, registered Mining Act (WA) mortgage over the Company’s interest in the Duketon Gold
Project tenements;
» a fixed charge over the Proceeds Account and Gold Account; and
»
satisfactory security over Regis’ rights under key project documents.
(C) FAIR VALUES
The carrying amounts of the Group’s current and non-current borrowings approximate their fair value.
23. PROVISIONS
CURRENT
Rehabilitation
NON-CURRENT
Long service leave
Rehabilitation
(a)
(b)
(a)
295
684
247
23,440
23,687
131
14,868
14,999
72
(A) PROVISION FOR REHABILITATION
Balance at 1 July
Provisions made during the year
Provisions used during the year
Provisions reversed during the year
Unwinding of discount
Balance at 30 June
note
Consolidated
2013
$’000
15,552
9,131
(53)
(1,354)
459
23,735
2012
$’000
8,717
6,660
-
(285)
460
15,552
NATURE AND PURPOSE OF PROVISION FOR REHABILITATION
The nature of rehabilitation activities includes dismantling and removing structures, rehabilitating mines, dismantling operating
facilities, closure of plant and waste sites and restoration, reclamation and revegetation of affected areas. Typically the obligation
arises when the asset is installed at the production location. When the liability is initially recorded, the estimated cost is capitalised
by increasing the carrying amount of the related mining assets. Over time, the liability is increased for the change in present value
based on the discount rates that reflect the current market assessments and the risks specific to the liability. Additional disturbances
or changes in rehabilitation cost estimates will be recognised as additions or changes to the corresponding asset and rehabilitation
liability when incurred.
(B) PROVISION FOR LONG SERVICE LEAVE
Refer to Note 2(w) for the relevant accounting policy and a discussion of the significant estimates and
assumptions applied in the measurement of this provision.
24. CONTRIBUTED EqUITY
Ordinary shares – issued and fully paid
428,358
275,010
The holders of ordinary shares are entitled to receive dividends as declared from time to time and, on a poll, are entitled to one vote
per share at meetings of the Company. The Company does not have authorised capital or par value in respect of its issued shares.
no. shares
’000s
432,073
16,917
4,038
-
453,028
5,343
35,714
-
494,085
10(c)
10(c)
$’000
247,632
15,423
12,000
(45)
275,010
3,413
150,000
(65)
428,358
MOVEMENT IN ORDINARY SHARES ON ISSUE
At 1 July 2011
Issued on exercise of options
Issued for non-cash transactions
Transaction costs
At 30 June 2012
Issued on exercise of options
Issued for non-cash transactions
Transaction costs
At 30 June 2013
73
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued)
CAPITAL MANAGEMENT
The Board’s policy in relation to capital management is to regularly and consistently monitor future cash flows against expected
expenditures for a rolling period of up to 12 months in advance. The Board determines the Group’s need for additional funding by way
of either share issues or loan funds depending on market conditions at the time. The Board defines working capital in such
circumstances as its excess liquid funds over liabilities, and defines capital as being the ordinary share capital of the Company.
There were no changes in the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
Consolidated
2013
$’000
2012
$’000
25. RETAINED PROFITS/(ACCUMULATED LOSSES) AND RESERVES
(A) RETAINED PROFITS/(ACCUMULATED LOSSES)
At 1 July
Net profit for the year
At 30 June
(B) SHARE OPTION RESERVE
At 1 July
Share-based payments
At 30 June
(48,492)
145,727
97,235
11,416
2,616
14,032
(116,731)
68,239
(48,492)
9,377
2,039
11,416
26
(C) NATURE AND PURPOSE OF RESERVES
The share option reserve is used to record the value of share-based payments provided to employees,
including KMP, as part of their remuneration, as well as non-employees.
26. SHARE-BASED PAYMENTS
(A) RECOGNISED SHARE-BASED PAYMENTS EXPENSE
Expense arising from equity-settled share-based payment transactions with
employees for services received during the year
Total expense arising from share-based payment transactions
2,616
2,616
2,039
2,039
The share-based payment plans are described below. There have been no cancellations or modifications to any
of the plans during the current or prior years.
74
(B) EMPLOYEE SHARE OPTION PLAN (ESOP)
The Company has one ESOP, being the Regis Resources Limited 2008 Share Option Plan (the “Plan”).
The objective of the Plan is to assist in the recruitment, reward, retention and motivation of eligible persons
of the Group. Under the Plan, the board or Remuneration and Nomination Committee may issue to eligible
employees options to acquire shares in the future at an exercise price fixed by the board or Remuneration and
Nomination Committee on grant of the options.
The Plan includes a cashless exercise mechanism which enables the holder, at their election, to exercise their
vested options not by way of payment of the applicable exercise price, but rather by choosing to receive the
positive difference between the exercise price and share price at exercise in shares, with the number of shares
allocated based on the share price at exercise.
The cashless exercise mechanism:
» does not change the fundamental entitlements of option holders;
»
»
leaves an option holder who chooses to exercise their options in a cashless manner in the same economic
position as if they had exercised all of their options, paid the relevant total exercise price, and disposed of
the number of shares equal in value to that total exercise price; and
results in less shares being issued upon exercise of options.
The vesting of all options is subject to service conditions being met whereby the recipient must meet the
eligible employee criteria as defined in the Plan.
(C) SUMMARY OF OPTIONS GRANTED
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and
movements in, share options issued during the year:
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year (i)
Sold during the year
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2013
no.
6,700,000
300,000
(80,000)
(1,788,854)
-
-
5,131,146
852,500
Waep
$1.9477
$4.0000
$4.0000
$0.8896
-
-
$2.4046
$1.3519
2012
no.
16,390,000
2,310,000
(125,000)
(632,500)
(11,100,000)
(142,500)
6,700,000
840,000
Waep
$0.8596
$3.4648
$2.2300
$0.7919
$0.7322
$0.9509
$1.9477
$0.3899
(i) The weighted average share price at the date of exercise was $5.19 (2012: $3.97).
(D) WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE
The weighted average remaining contractual life for the share options outstanding as at 30 June 2013 is 2.0 years (2012: 2.8 years).
(E) RANGE OF EXERCISE PRICES
The range of exercise prices for options outstanding at the end of the year was $0.1348 to $4.00 (2012: $0.1348 to $4.00).
75
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) (F) WEIGHTED AVERAGE FAIR VALUE
The weighted average fair value of options granted during the year was $1.9738 (2012: $1.7066).
(G) OPTION PRICING MODEL
The fair value of the equity-settled share options granted under the ESOP is estimated as at the date of grant using a Black-Scholes
option pricing model taking into account the terms and conditions upon which the options were granted.
The following table lists the inputs to the model used for the years ended 30 June 2013 and 30 June 2012:
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Weighted average share price at grant date ($)
2013 esop
2012 esop
0%
0%
63.61 – 80.09
63.61 - 119.25
2.24 – 2.53
2 – 3 years
4.00
4.11 – 4.54
2.53 – 3.92
2 – 3 years
2.75 – 4.00
2.75 – 4.17
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The
expected volatility reflects the assumption that historical volatility is indicative of future trends, which may also not necessarily be
the actual outcome.
27. KEY MANAGEMENT PERSONNEL
(A) COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Long-term employee benefits
Termination benefits
Share-based payment
Total compensation
Consolidated
2013
$
2012
$
3,108,688
251,258
43,121
-
311,909
3,714,976
2,778,117
241,359
29,269
-
532,659
3,581,404
Regis Resources Limited has applied the option to transfer KMP disclosures required by AASB 124 Related
Party Disclosures paragraphs Aus 25.4 to Aus 25.7.2 to the Remuneration Report section of the Directors’
Report. These transferred disclosures have been audited.
76
held at
start of
period
1 July
2012
granted
as
remuner-
ation
options
exerCised
net
Change
other
held at
end of
period
30 June
2013
vested at 30 June 2013
total
exerCisaBle
not
exerCisaBle
(B) OPTION HOLDINGS OF KEY MANAGEMENT PERSONNEL
EXECUTIVES
M Ertzen(i)
M Evans
T Hinkley
K Massey(ii)
R Smith(iii)
B Wyatt(iv)
166,667
250,000
200,000
233,333
500,000
-
Total
1,350,000
-
-
-
-
-
-
-
-
-
(200,000)
(133,333)
(166,667)
-
-
-
-
-
-
250,000
250,000
250,000
-
-
-
100,000
50,000
50,000
-
-
(500,000)
500,000
(333,333)
(166,667)
-
500,000
850,000
-
-
-
-
300,000
300,000
-
-
-
-
-
-
-
(i) Mr Ertzen ceased to be a KMP on 1 July 2012. “Net change other” represents the number of options held at this date.
(ii) Mr Massey exercised options using the cashless exercise mechanism as described in Note 26(b).
(iii)
Mr Smith ceased his position as General Manager – Garden Well Gold Mine on 1 May 2013. “Net change other” represents the
number of options held at this date
Mr Wyatt commenced the role of General Manager – Garden Well Gold Mine on 1 May 2013. “Net change other” represents the
number of options held at the date of becoming a KMP
(iv)
held at
start of
period
1 July
2011
5,000,000
5,000,000
402,500
500,000
750,000
350,000
500,000
DIRECTORS
M Clark(i)
M Hart(i)
EXECUTIVES
J Balkau(ii)
M Ertzen(iii)
M Evans(iii)
T Hinkley
K Massey(iii)
R Smith
Total
granted
as
remuner-
ation
options
exerCised
net
Change
other
vested at 30 June 2012
total
exerCisaBle
not
exerCisaBle
-
-
-
-
-
-
-
-
-
(5,000,000)
(5,000,000)
(402,500)
-
-
-
(333,333)
(500,000)
(150,000)
-
(266,667)
-
-
-
-
-
-
-
-
166,667
250,000
200,000
133,333
-
166,667
250,000
200,000
133,333
-
-
-
-
-
-
-
-
-
-
held at
end of
period
30 June
2012
-
-
-
166,667
250,000
200,000
233,333
-
500,000
-
500,000
12,502,500
500,000
(552,500)
(11,100,000)
1,350,000
750,000
750,000
(i)
Mr Clark and Mr Hart each sold 5,000,000 options shown under “net change other” on 20 March 2012 which were then exercised
and on sold to Australian institutional and sophisticated investors in a broker managed book build.
(ii) Mr Balkau exercised options using the cashless exercise mechanism, as disclosed in Note 26(b).
(iii)
Mr Ertzen, Mr Evans and Mr Massey sold the number of options shown under “net change other” on 2 April 2012 which were then
exercised and on sold to Australian institutional and sophisticated investors in a broker managed book build.
77
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) (C) SHAREHOLDINGS OF KEY MANAGEMENT PERSONNEL
Shares held in Regis Resources Limited (number) directly, indirectly or beneficially by each KMP
DIRECTORS
N Giorgetta
M Clark
M Hart
M Okeby
OTHER KMP
J Balkau
M Ertzen(i)
M Evans
T Hinkley
K Massey
Total
held at 1
July 2012
on exerCise
of options
net Change
other
held at 30
June 2013
20,529,671
9,460,000
9,389,210
1,200,000
2,163,583
1,000,000
613,188
952,500
16,666
45,324,818
-
-
-
-
-
-
-
200,000
123,782
323,782
-
-
-
-
20,529,671
9,460,000
9,389,210
1,200,000
(638,119)
1,525,464
(1,000,000)
-
(300,000)
(54,523)
-
613,188
852,500
85,925
(1,992,642)
43,655,958
(i)
Mr Ertzen ceased to be a KMP on 1 July 2012. “Net change other” represents the number of shares held at this date. In all other instances, “net change
other” relates to on-market purchases and sales of shares.
DIRECTORS
N Giorgetta
M Clark
M Hart
M Okeby
OTHER KMP
J Balkau
M Ertzen
M Evans
T Hinkley
K Massey
R Smith
Total
held at 1
July 2011
on exerCise
of options
net Change
other
held at 30
June 2012
20,529,671
9,460,000
9,389,210
1,200,000
1,827,231
1,540,900
713,188
852,500
16,666
-
-
-
-
-
317,352
-
-
150,000
-
-
-
-
-
-
19,000
(540,900)
(100,000)
(50,000)
-
-
20,529,671
9,460,000
9,389,210
1,200,000
2,163,583
1,000,000
613,188
952,500
16,666
-
45,529,366
467,352
(671,900)
45,324,818
“Net change other” relates to on-market purchases and sales of shares.
All equity transactions with KMP other than those arising from the exercise of remuneration options have been entered into under
terms and conditions no more favourable than those the Group would have adopted if dealing at arm’s length.
(D) LOANS TO KEY MANAGEMENT PERSONNEL AND THEIR RELATED PARTIES
There were no loans made to any director, key management personnel and/or their related parties during the current or prior year.
(E) OTHER KEY MANAGEMENT PERSONNEL TRANSACTIONS
Other than the ordinary accrual of personnel expenses at balance date, there are no other amounts receivable from and payable to key
management personnel and other related parties.
78
28. RELATED PARTY DISCLOSURES
(A) SUBSIDIARIES
The consolidated financial statements include the financial statements of Regis
Resources Limited and the subsidiaries listed in the following table:
name
Duketon Resources Pty Ltd
Artane Minerals NL
Rosemont Gold Mines Pty Ltd
LFB Resources NL
(B) ULTIMATE PARENT
% equity interest
investment $’000
Country of
inCorporation
Australia
Australia
Australia
Australia
2013
100%
100%
100%
100%
2012
100%
100%
100%
0%
2013
30,575
-
-
73,941
104,516
2012
30,575
-
-
-
30,575
Regis Resources Limited is the ultimate Australian parent entity and the ultimate parent entity of the Group.
(C) TRANSACTIONS WITH RELATED PARTIES
A loan is made by the Company to Duketon Resources and represents the subsidiary’s share of payments for exploration and
evaluation expenditure on commercial joint ventures existing between the Company and Duketon Resources. The loan outstanding
between the Company and Duketon Resources has no fixed date of repayment and is non-interest bearing. As at 30 June 2013, the
balance of the loan receivable was $15,205,213 (2012: $3,356,437).
A loan is made by the Company to LFB Resources and represents the subsidiary’s share of payments for exploration and evaluation
expenditure. The loan outstanding between the Company and LFB Resources has no fixed date of repayment and is non-interest
bearing. As at 30 June 2013, the balance of the loan receivable was $10,804,993 (2012: nil).
29. PARENT ENTITY INFORMATION
The following details information related to the parent entity, Regis Resources Limited, at 30 June 2013.
The information presented here has been prepared using consistent accounting policies as presented in Note 2.
2013
$’000
2012
$’000
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Share option reserve
Retained profits/accumulated losses
Total equity
Net profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
79
101,660
571,859
673,519
41,738
83,125
124,863
428,358
14,032
106,266
548,656
147,797
-
147,797
16,765
305,565
322,330
33,572
43,863
77,435
275,010
11,416
(41,531)
244,895
76,273
-
76,273
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) The parent entity has not guaranteed any loans of its subsidiaries.
There are no contingent assets or liabilities of the Group or parent entity at 30 June 2013 as disclosed at Note 32.
All capital commitments disclosed at Note 31 are commitments incurred by the parent entity, except for $1,073,007 (2012: $1,264,798)
of the exploration expenditure commitments, and $50,424 of the operating lease commitments (2012: nil).
30. FINANCIAL INSTRUMENTS
(A) FINANCIAL GUARANTEE LIABILITIES
As at 30 June 2013, the Group did not have any financial guarantee liabilities (2012: Nil).
(B) LIqUIDITY RISK
The following are the contractual maturities of financial liabilities, including estimated interest payments:
30 June 2013
Trade and other
payables
Secured loan
Total
30 June 2012
Trade and other
payables
Secured loan
Total
Carrying
amount
ContraCtual
Cash-floWs
6 mths
or less
6-12 mths
1-2 years
2-5 years
more than
5 years
39,842
10
39,852
(39,842)
(39,842)
(10)
(10)
(39,852)
(39,852)
-
-
-
-
-
-
-
-
Carrying
amount
ContraCtual
Cash-floWs
6 mths
or less
6-12 mths
1-2 years
2-5 years
more than
5 years
27,235
30,077
57,312
(27,235)
(34,783)
(62,018)
(27,235)
(1,147)
(28,382)
-
(6,242)
(6,242)
-
(16,873)
(16,873)
-
(10,521)
(10,521)
-
-
-
(C) INTEREST RATE RISK
profile
At the reporting date the interest rate profile of the Company’s and the Group’s interest-bearing financial instruments was:
Consolidated
2013
$’000
2012
$’000
FIXED RATE INSTRUMENTS
Fixed rate instruments
Financial assets
Financial liabilities
VARIABLE RATE INSTRUMENTS
Financial liabilities
61,223
-
61,223
1,356
-
1,356
(10)
(30,077)
80
fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore a change at reporting date would not affect profit or loss.
Cash floW sensitivity analysis for variaBle rate instruments
No significant variable interest rate instruments are held at 30 June 2013 therefore a change in interest rates would not have a
material impact on net profit. This analysis was performed in 2012 using a 50 basis points decrease in interest rates at reporting date,
which would have resulted in an increase in net profit of $235,453. This analysis assumes that all other variables remain constant.
Consolidated
2013
$’000
2012
$’000
31. COMMITMENTS
(A) OPERATING LEASE COMMITMENTS – GROUP AS LESSEE
The Group leases office premises in Perth, WA and Blayney, NSW under normal commercial lease arrangements. The Perth lease is for
a period of 5 years beginning 1 May 2010. The Group is under no legal obligation to renew the lease once the lease term has expired.
The Blayney lease is for a period of 3 years beginning 22 February 2013 with an option to renew for a further 3 years.
Future minimum rentals payable under non-cancellable operating leases at 30 June are as follows:
Within one year
Between one and five years
Total minimum lease payments
(B) CONTRACTUAL COMMITMENTS
334
303
637
305
591
896
On 19 January 2010, the Group entered into an agreement with Pacific Energy (KPS) Pty Ltd (“KPS”) for the
supply of electricity to the Moolart Well Gold Mine (part of the Duketon Gold Project). The terms of this
agreement commit the Group to purchasing a fixed amount of electricity per month for six years from 7 July
2010 (the “Effective Date”) at a price which will be reviewed annually. As at 30 June 2013, at the current
contract price, the Group had commitments to purchase electricity for the remaining term of $4,680,000 (30
June 2012: $6,240,000).
On 23 June 2011, the Group entered into an agreement with Pacific Energy (KPS) Pty Ltd (“KPS”) for the supply
of electricity to the Garden Well Gold Mine. The terms of this agreement commit the Group to purchasing a
fixed amount of electricity per month for 5 years from 1 September 2012 (the “Effective Date”) at a price which
will be reviewed annually. As at 30 June 2013, at the current contract price, the Group had commitments to
purchase electricity for the remaining term of $11,700,000 (30 June 2012: nil).
(C) EXPLORATION EXPENDITURE COMMITMENTS
Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be
required to be met under the relevant legislation should the Group wish to retain tenure on all current
tenements in which the Group has an interest.
The terms and conditions under which the Group retains title to its various mining tenements oblige it to meet
tenement rentals and minimum levels of exploration expenditure as gazetted by the Department of Mining
and Petroleum (“DMP”), Western Australia, as well as Local Government rates and taxes.
The exploration commitments of the Group, not provided for in the consolidated financial statements and
payable are as follows:
Within one year
1,522
1,768
81
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) The tenement commitments shown above represent the minimum required to be spent on all granted tenements as at reporting
date. Actual expenditure will vary as a result of ongoing management of the tenement portfolio including reductions and
relinquishment of tenements not considered prospective, in whole or in part.
Tenement commitments are shown gross of exemptions that are likely to be available in the ordinary course of business as the
financial impact of potential exemptions cannot be measured reliably in advance.
(D) DUKETON GOLD PROJECT CAPITAL EXPENDITURE COMMITMENTS
The outstanding capital commitments relating to the Duketon Gold Project at 30 June are:
Within 1 year
Consolidated
2013
$’000
2012
$’000
3,193
3,193
7,361
7,361
(E) PHYSICAL GOLD DELIVERY COMMITMENTS
Commodity priCe risk
The Group is exposed to movements in the gold price. As part of the risk management policy of the Group and in compliance with the
conditions required by the Group’s financier, the Group enters into gold forward contracts to manage the gold price of a proportion of
anticipated sales of gold. It is management’s intention to settle each contract through physical delivery of gold.
The counterparty to the gold forward contracts is Macquarie Bank Limited (“MBL”). The gold forward sale contracts disclosed below do
not meet the criteria of financial instruments for accounting purposes on the basis that they meet the normal purchase/sale
exemption because physical gold will be delivered into the contract. Accordingly, the contracts will be accounted for as sale contracts
with revenue recognised once the gold has been delivered to MBL or its agent.
30 June 2013
Within one year
- Spot deferred contracts
- Fixed forward contracts
Between one and five years
- Fixed forward contracts
Spot gold price used to calculate mark-to-market
30 June 2012
Within one year
- Spot deferred contracts
- Fixed forward contracts
Between one and five years
- Fixed forward contracts
Spot gold price used to calculate mark-to-market
gold for
physiCal
delivery
ContraCted
gold sale
priCe
value of
Committed
sales
mark-to-
market
ounCes
$/oz
$’000
$’000
5,840
24,000
92,751
122,591
44,708
48,000
70,750
163,458
1,474.80
1,460.25
1,417.33
1,536.40
1,340.00
1,441.98
8,613
35,046
131,459
175,118
68,689
64,320
102,020
235,029
743
1,911
(1,215)
1,439
$1,347.536/oz
(1,139)
(11,936)
(14,573)
(27,648)
$1,561.873/oz
82
Consolidated
2013
$
2012
$
32. CONTINGENCIES
As at 30 June 2013, the Group did not have any contingent assets or liabilities (30 June 2012: nil)
33. AUDITOR’S REMUNERATION
AUDIT SERVICES
KPMG Australia
Audit and review of financial statements
194,988
135,000
OTHER SERVICES
Other assurance services
Taxation compliance services
Total auditor’s remuneration
12,261
207,249
24,086
159,086
Consolidated
2013
$’000
2012
$’000
34. DIVIDENDS
Proposed by the directors after balance date but not recognised as a liability as at 30 June:
Dividends on ordinary shares
Final dividend for 2013: 15 cents per share (2012: nil)
74,427
-
FRANKING CREDIT BALANCE
As at 30 June 2013, the Group did not have any franking credits available (2012: nil) and no income tax payable
in relation to the current year (2012: nil). The Group expects to pay income tax in relation to the year ended 30
June 2014 and will generate franking credits as a result. The ability to utilise franking credits is dependent
upon the ability to declare dividends.
35. SUBSEqUENT EVENTS
Exercise of Options
Subsequent to year end, 1,880,449 ordinary shares have been issued as a result of the exercise of listed options
for proceeds of $931,453, net of transaction costs and 212,571 ordinary shares have been issued upon the
conversion of 287,500 employee options for proceeds of $347,000.
Dividends
On 16 September 2013, the directors proposed a final dividend on ordinary shares in respect of the 2013 financial
year. Refer Note 34.
Other than the matters discussed above, there has not arisen in the interval between the end of the financial year
and the date of this Report any item, transaction or event of a material and unusual nature which in the opinion
of the directors of the Group, has significantly affected or is likely to significantly affect:
»
»
»
the operations of the Group
the results of those operations, or
the state of affairs of the Group
in future financial years.
83
FOR THE YEAR ENDED 30 JUNE 2013Notes to the Financial Statements (continued) Directors’ Declaration
In accordance with a resolution of the directors of Regis Resources Limited, I state that:
1. In the opinion of the directors:
(a) The financial statements, notes and additional disclosures included in the directors’
report designated as audited, of the Company and the consolidated entity are in
accordance with the Corporations Act 2001, including:
(i)
Giving a true and fair view of the consolidated entity’s financial position as at 30
June 2013 and of its performance for the financial year ended on that date; and
(ii) Complying with Accounting Standards and the Corporations Regulations 2001;
and
(b) There are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
2. The Directors have been given the declarations required by Section 295A of the
Corporations Act 2001 from the chief executive officer and chief financial officer for the
financial year ended 30 June 2013.
3. The directors draw attention to Note 2(b) to the consolidated financial statements, which
includes a statement of compliance with International Financial Reporting Standards.
On behalf of the board
Mr Mark Clark
Managing Director
Perth, 16 September 2013
84
Independent Auditor’s Report
Independent auditor’s report to the members of Regis Resources Limited
Report on the financial report
We have audited the accompanying financial report of Regis Resources Limited (the company),
which comprises the consolidated statement of financial position as at 30 June 2013, and
consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year ended on that date, notes 1 to 35
comprising a summary of significant accounting policies and other explanatory information and
the directors’ declaration of the Group comprising the company and the entities it controlled at
the year’s end or from time to time during the financial year.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that is free from material misstatement whether due
to fraud or error. In note 2(b), the directors also state, in accordance with Australian Accounting
Standard AASB 101 Presentation of Financial Statements, that the financial statements of the
Group comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. These Auditing
Standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance whether the
financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial report, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation of the financial report that gives a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the directors, as well as evaluating the overall presentation of the financial
report.
We performed the procedures to assess whether in all material respects the financial report
presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting
Standards, a true and fair view which is consistent with our understanding of the Group’s
financial position and of its performance.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
85
KPMG, an Australian partnership and a member
firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Auditor’s opinion
In our opinion:
(a) the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as
at 30 June 2013 and of its performance for the year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations
Regulations
2001.
(b) the financial report also complies with International Financial Reporting Standards as
disclosed in note 2(b).
Report on the remuneration report
We have audited the Remuneration Report included in pages 33 to 38 of the directors’ report for
the year ended 30 June 2013. The directors of the company are responsible for the preparation
and presentation of the remuneration report in accordance with Section 300A of the
Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report,
based on our audit conducted in accordance with auditing standards.
Auditor’s opinion
In our opinion, the remuneration report of Regis Resources Limited for the year ended 30 June
2013, complies with Section 300A of the Corporations Act 2001.
KPMG
Trevor Hart
Partner
Perth
16 September 2013
86
Tenement Information
granted tenements
tenement % interest
tenement % interest
tenement % interest
tenement % interest
COLLURABBIE AREA
E38/1939
E38/2298
E38/2681
E38/2682
E38/2683
E38/2779
80%
100%
100%
100%
100%
90%
DUKETON AREA
E38/961
E38/1046
E38/1096
E38/1689
E38/1914
E38/1952
E38/1954
E38/1955
E38/1956
E38/1957
E38/1988
E38/1989
E38/1990
E38/1991
E38/1992
E38/1994
E38/1995
E38/1996
E38/1997
E38/1999
E38/2001
E38/2002
E38/2003
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
97%
70%
100%
51%
100%
L38/20
L38/29
L38/47
L38/49
L38/73
L38/85
L38/116
L38/126
L38/127
L38/128
L38/129
L38/131
L38/133
L38/134
L38/135
L38/136
L38/137
L38/138
L38/139
L38/140
L38/141
L38/142
L38/143
L38/155
L38/156
L38/170
L38/181
L38/182
L38/184
L38/189
L38/190
L38/191
E38/2004
Earning 70%
L38/192
E38/2005
E38/2006
E38/2243
E38/2723
E38/2808
E38/2809
E38/2810
G38/29
G38/30
G38/31
G38/32
80%
100%
100%
100%
100%
100%
100%
100%
100%
70%
100%
L38/193
L38/194
L38/201
L38/202
L38/203
L38/204
L38/212
L38/216
L38/217
L38/219
L38/221
87
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
L38/222
L38/228
M38/114
M38/237
M38/250
M38/262
M38/283
M38/292
M38/302
M38/303
M38/316
M38/317
M38/319
M38/341
M38/343
M38/344
M38/352
M38/354
M38/407
M38/413
M38/414
M38/415
M38/488
M38/498
M38/499
M38/500
M38/515
M38/589
M38/590
M38/600
M38/601
M38/630
M38/802
M38/837
M38/889
M38/939
M38/940
M38/943
M38/1091
M38/1092
M38/1096
M38/1247
M38/1249
M38/1250
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
M38/1251
M38/1257
P38/3159
P38/3377
P38/3378
100%
100%
100%
100%
100%
P38/3407
Earning 70%
P38/3408
Earning 70%
P38/3409
Earning 70%
P38/3410
Earning 70%
P38/3411
Earning 70%
P38/3412
Earning 70%
P38/3413
Earning 70%
P38/3414
Earning 70%
P38/3415
Earning 70%
P38/3416
Earning 70%
P38/3417
Earning 70%
P38/3418
Earning 70%
P38/3419
Earning 70%
P38/3420
Earning 70%
Earning 70%
P38/3421
Earning 70%
Earning 70%
P38/3422
Earning 70%
Earning 70%
P38/3423
Earning 70%
100%
100%
100%
100%
100%
97%
97%
70%
70%
100%
100%
100%
97%
100%
100%
100%
80%
100%
100%
100%
100%
100%
P38/3424
Earning 70%
P38/3425
Earning 70%
P38/3426
Earning 70%
P38/3427
P38/3428
P38/3429
P38/3430
P38/3439
P38/3440
P38/3441
P38/3442
P38/3443
P38/3444
P38/3445
P38/3446
P38/3447
P38/3448
P38/3449
P38/3450
P38/3451
P38/3452
P38/3453
51%
51%
51%
51%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
tenement % interest
tenement % interest
tenement % interest
tenement % interest
M38/1264
P38/4073
P38/4074
P38/4075
P38/4076
P38/4104
100%
100%
100%
100%
100%
100%
P38/3454
P38/3455
P38/3456
P38/3457
P38/3458
P38/3459
P38/3460
P38/3461
P38/3462
P38/3463
P38/3464
P38/3465
P38/3466
P38/3467
P38/3468
P38/3469
P38/3470
P38/3471
P38/3472
P38/3473
P38/3474
P38/3475
P38/3476
P38/3478
P38/3480
P38/3481
P38/3485
P38/3486
P38/3487
P38/3508
P38/3509
P38/3510
P38/3511
P38/3513
P38/3514
P38/3515
P38/3528
P38/3529
P38/3530
P38/3531
P38/3532
P38/3535
P38/3536
P38/3538
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
P38/3539
P38/3542
P38/3543
P38/3544
P38/3545
P38/3547
P38/3548
P38/3549
P38/3550
P38/3551
P38/3557
P38/3571
P38/3576
P38/3577
P38/3578
P38/3579
P38/3580
P38/3581
P38/3582
P38/3584
P38/3602
P38/3604
P38/3605
P38/3606
P38/3607
P38/3629
P38/3630
P38/3631
P38/3632
P38/3633
P38/3634
P38/3635
P38/3636
P38/3639
P38/3640
P38/3814
P38/3815
P38/3816
P38/3877
P38/3878
P38/3879
P38/3906
P38/3928
P38/3941
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
70%
70%
70%
70%
100%
100%
97%
100%
100%
100%
100%
100%
100%
97%
97%
97%
97%
97%
97%
97%
97%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
P38/3942
P38/3943
P38/3944
P38/3949
P38/3950
P38/3953
P38/3954
P38/3996
P38/3997
P38/3998
P38/4027
P38/4038
P38/4039
P38/4040
P38/4052
P38/4053
P38/4062
P38/4063
MCPHILLAMYS
EL5760
EL6111
EL7878
EL8120
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
tenements under
appliCation
COLLURABBIE AREA
E38/2830
E38/2870
E38/2871
100%
100%
100%
DUKETON AREA
E38/2813
E38/2814
E38/2833
E38/2857
L38/226
M38/1258
M38/1259
M38/1260
M38/1261
M38/1262
M28/1263
100%
100%
100%
100%
100%
100%
100%
70%
100%
100%
100%
88
ASX Additional Information
As at 17 September 2013 the following information applied:
1. SECURITIES
(A) FULLY PAID ORDINARY SHARES
The number of holders of fully paid ordinary shares in the Company is 6,107. On a
show of hands every holder of fully paid ordinary shares present or by proxy, shall
have one vote. Upon a poll, each share shall have one vote. The distribution of
holders of fully paid ordinary shares is as follows:
Category
Holding between
Holding between
Holding between
Holding between
1-1,000 Shares
1,001 - 5,000 Shares
5,001 - 10,000 Shares
10,001-100,000 Shares
Holding more than
100,001 Shares
Holding less than
A marketable parcel
numBer of
shareholders
numBer of
shares
1,971
2,138
685
719
163
5,676
431
899,131
5,773,451
5,439,061
22,086,167
461,980,300
496,178,110
14,879
The Company’s fully paid ordinary shares are quoted on the Australian Securities
Exchange using the code RRL.
The top 20 shareholders are as follows:
name
Newmont Capital Pty Limited
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Limited
National Nominees Limited
Citicorp Nominees Pty Limited
Rollason Pty Ltd
Mr Ross Francis Stanley
SHL Pty Ltd
Mr Mark John Clark
Mr Morgan Cain Hart
Rollason Pty Ltd
Citicorp Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited
Mutual Investments Pty Ltd
BNP Paribas Noms Pty Ltd
JP Morgan Nominees Australia Limited
Alkane Resources Ltd
Mutual Investments Pty Ltd
Piama Pty Ltd
Mr Glyn Evans
numBer of fully paid
ordinary shares held
perCentage
interest
97,212,729
89,751,324
37,614,711
37,198,372
31,899,616
13,389,671
11,000,000
10,017,087
8,711,112
8,438,098
7,140,000
7,059,398
5,565,990
5,500,000
5,212,335
4,827,691
4,710,000
3,012,179
2,998,401
2,536,111
393,794,825
19.59
18.09
7.58
7.50
6.43
2.70
2.22
2.02
1.76
1.70
1.44
1.42
1.12
1.11
1.05
0.97
0.95
0.61
0.60
0.51
79.37
89
(B) OPTIONS MATURING 31 JANUARY 2014 OVER FULLY PAID ORDINARY SHARES
The number of holders of options maturing 31 January 2014 over fully paid ordinary
shares issued by the Company is 56. Optionholders may attend and speak at
general meetings of the Company. However, they do not have an entitlement to
vote upon the business before the meeting either by show of hands or by poll.
The distribution of holders of options is as follows:
Category
Holding between
Holding between
Holding between
Holding between
1-1,000 Options
1,001 - 5,000 Options
5,001 - 10,000 Options
10,001-100,000 Options
Holding more than
100,001 Options
Holding less than
A marketable parcel
numBer of
option holders
numBer of
options
31
9
3
10
3
56
0
24,150
26,500
23,950
247,912
1,790,850
2,113,362
0
The Company’s options maturing on 31 January 2014 over fully paid ordinary shares
are quoted on the Australian Securities Exchange using the code RRLO.
The top 20 optionholders are as follows:
name
Dalkeith Resources Pty Ltd
HSBC Custody Nominees (Australia) Limited – GSCO ECA
Farrah Group Pty Ltd
Bart Superannuation Pty Limited <4F Investments Superfund A/C>
Mr John Stephen Nitschke
CR Investments Pty Ltd
Dr Ron Ehrlich + Ms Ann Christine Wilson
ABN Amro Clearing Sydney Nominees Pty Ltd
Mr Erwin John Clayton
Mr Pierce Patrick Cody
Mr Lian Heo Ding
Mr Simon Hammer
Andrews SMSF Pty Ltd
Mr John Nicholas Welsh + Mrs Lisa Ann Welsh
McNess Super Fund Pty Ltd
Dr Rick Hans Ulrich Tamaschke
Mr Scott John Indian
Mr Murray Ranald McKay + Mrs Lesley Robin McKay
Mrs Maria Beatrix Sandbach
Shiney Pty Ltd
numBer of
options held
perCentage
interest
1,333,000
300,000
157,850
62,500
50,000
31,250
20,000
19,591
18,500
12,500
11,800
11,230
10,541
9,500
9,000
5,450
5,000
5,000
5,000
3,500
2,081,212
63.07
14.20
7.47
2.96
2.37
1.48
0.95
0.93
0.88
0.59
0.56
0.53
0.50
0.45
0.43
0.26
0.24
0.24
0.24
0.17
98.48
90
ASX Additional Information (continued)
(C) UNLISTED OPTIONS
unlisted options over fully paid
ordinary shares
numBer of
option holders
numBer of
options
Expiry 4 February 2014
Expiry 30 June 2014
Expiry 29 September 2014
Expiry 29 April 2015
Expiry 8 November 2015
Expiry 2 February 2016
Expiry 30 June 2016
Expiry 31 July 2017
1
1
24
6
3
1
31
47
90,000
250,000
1,373,646
600,000
1,075,000
250,000
980,000
1,910,000
Optionholders may attend and speak at general meetings of the Company.
However, they do not have an entitlement to vote upon the business before the
meeting either by show of hands or by poll.
(D) RESTRICTED SECURITIES
The number of restricted securities on issue at 17 September 2013 are as follows:
Class
Fully paid ordinary shares
numBer
esCroW period
18,214,286
To 16 November 2013
2. SUBSTANTIAL SHAREHOLDERS
Substantial shareholders disclosed in substantial shareholder notices to the Company:
name
Newmont Capital Pty Ltd
JCP Investment Partners Ltd
numBer of fully paid
ordinary shares held
97,212,729
39,113,441
91
ABN 28 009 174 761
Directors
Nick Giorgetta
(Independent Non-Executive Chairman)
Mark Clark
(Managing Director)
Morgan Hart
(Executive Director)
Ross Kestel
(Independent Non-Executive Director)
Mark Okeby
(Independent Non-Executive Director)
Registered Office & Principal
Place of Business
Level 1,
1 Alvan Street
SUBIACO WA 6008
Share Register
Computershare Investor Services
Pty Limited
GPO Box D182
PERTH WA 6840
Bankers
Macquarie Bank Limited
Level 4, Bishops See
235 St Georges Terrace
PERTH WA 6000
Auditors
KPMG
235 St Georges Terrace
PERTH WA 6000
Company Secretary
Kim Massey
Regis Resources Limited shares are
listed on the Australian Securities
Exchange (ASX). Code RRL.