Regis Resources Annual Report 2015

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FY2015 Annual Report · Regis Resources

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REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED 30 JUNE

2015

Directors
Nick Giorgetta

(Independent Non-Executive Chairman)

Mark Clark

(Managing Director)

Frank Fergusson

(Independent Non-Executive Director)

Ross Kestel

(Independent Non-Executive Director)

Mark Okeby

(Independent Non-Executive Director)

Glyn Evans

(Independent Non-Executive Director)

Company Secretary
Kim Massey

HIGHLIGHTS

CHAIRMAN’S
REPORT

CORPORATE

DUKETON

MOOLART WELL

GARDEN WELL

ROSEMONT

GOLD EXPLORATION

GOLD RESERVES
& RESOURCES

In 2015 the Duketon Project achieved one million ounces of gold production since operations commenced in 2010. Highlights

CORPORATE

EXPLORATION

Net profit after tax of $86.9 million
for the financial year.

Net cash increased by $100 million
during the year.

Gold sales of 308,898 ounces at
average sales price of A$1,488 per
ounce.

Fully franked dividend of 6 cents per
share for the 2015 financial year.

Outstanding high grade gold
intercepts at Baneygo point to a new
gold project at the Duketon
operations.

High grade drilling results confirm a
new discovery at Tooheys Well,
2.5km south of Garden Well.

Geological modelling and a
conceptual study identify the
potential for underground mining
south of the Rosemont Main Pit.

DUKETON OPERATIONS

Significant milestone achieved
during the year with one million
ounces of gold produced from the
Duketon Project since first
production in 2010.

Record gold production for the year
within guidance at 310,204 ounces
at a pre royalty cash cost of $826 per
ounce.

Cashflow from operations for the
year was $150.9 million.

ACQUISITION FOR GROWTH

Acquisition of the Gloster Gold
Deposit for $1.5 million plus a
production royalty in June 2015.

Regis signed an agreement for a gold
exploration joint venture on 373km2
of tenure, mainly located in the
Moolart Well area.

REGIS RESOURCES ANNUAL REPORT // 201503

REGIS RESOURCES ANNUAL REPORT // 2015Chairman’s report

Dear Shareholder,

I am pleased to report to you that after working our way through
a challenging period, Regis is in a strong position to consolidate
its position as one of Australia’s leading gold companies.

Whilst 2015 was certainly a challenging year for the
Company, there were many significant
achievements including:

Record gold production achieved for the year of
310,204 ounces aided by the first full year of
production from the Rosemont Gold Mine.

The Company’s liquid working capital position
improved by $94.2 million during the course of
the year.

A significant milestone realised with the

Duketon Project achieving one million ounces
of gold production since operations commenced
in 2010.

A net profit after tax of $86.9 million for the
financial year allowing the reactivation of
dividend payments with a 6 cents per share
fully franked dividend announced in September
2015.

The acquisition of the Gloster gold deposit

expected to add further production growth to
the Moolart Well operations with a 1996 JORC
compliant resource of 365,000 ounces for $1.5
million plus a production royalty.

Outstanding regional exploration results paving
the way for new development opportunities at
the Baneygo, Coopers and Tooheys deposits.

Repayment of $20 million of the Macquarie

financing facility.

Moolart Well once again had a strong year
producing 98,742 ounces of gold at a pre-royalty
cash cost of $622 per ounce. Moolart Well has been
a consistent low cost mine producing around
100,000 ounces per annum over a number of years
for the Company. With the acquisition of the
Gloster gold deposit and the prospectivity of the
area, we are confident that Moolart Well will
continue to add significant value to the Company
for well beyond its nominal three year mine life.

It was a very pleasing first full year of production
at the Rosemont gold mine. The mine produced
103,743 ounces of gold at a pre-royalty cash cost of
$772 per ounce. The March 2015 reserve update
added further ounces to the project as a result of
improved optimisations and positive results from
extensional drilling during the year.

Garden Well produced 107,719 ounces at a pre-
royalty cash cost of $1,064 per ounce. Operations
during the year were impacted by problematic
reconciliation of mining to the geological reserve. A
lot of work was completed by management to
understand and address this operational issue and
this work culminated in the Company quoting an
updated reserve in July 2015. Whilst this has seen a
reduction in the reserve we believe it has delivered
a more robust model that generates a 7 year mine
life at lower operating costs due to the significantly
reduced stripping ratio on the new pit design. We
look forward to this operation becoming a very
predictable and profitable contributor to the
Company in FY2016.

With gold production for the current year forecast
at between 275,000 -305,000 ounces at an all in
sustaining cost of between $970-$1,070 per ounce
Regis can look forward to a year of strong
performance which should provide an excellent
platform from which we can continue to grow the
Company.

As always none of the achievements of the last 12
months could be possible without the tremendous
dedication and hard work of all our employees and
contractors. On behalf of the board and
shareholders I would like to thank them for their
commitment over the last year and look forward to
the future successes of the Company that this hard
work will bring.

Yours sincerely

Nick Giorgetta
Chairman

PHOTO: RICHARD SPILSBURY
Rosemont North Pit

REGIS RESOURCES ANNUAL REPORT // 2015Corporate

Regis reported a profit after tax of
$86.9 million for the 2015 financial
year compared to an after tax loss
of $147.8 million for the previous
corresponding period. This strong
result was on the back of record
gold production at the Duketon
operations of 310,204 ounces at a
pre royalty cash cost of $826 per
ounce.

Regis sold a total of 308,898 ounces of gold during the year
at an average price of A$1,488 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 281,031 ounces, being 145,834
ounces of fixed forward contracts with a delivery price of
A$1,437 per ounce and 135,197 ounces of spot deferred
contracts with a price of A$1,437 per ounce.

Assisted by a strong first full year of operations at the
Rosemont Gold Mine, the Duketon project generated
cashflow from operations of $150.9 million in the 2015
financial year. Since the major flooding event in February
2014 at Garden Well and Rosemont, there has been a strong
recovery in the Company’s cashflow, to the extent that net
cash for the 12 months to 30 June 2015 increased by $100
million. By the end of the financial year the Company’s
underlying cash and gold bullion holdings (including gold
bars on site) were $73.2 million. The Company chose to
repay $20 million of the outstanding Macquarie Bank debt
in December 2014. The remaining $20 million balance on the
Macquarie financing facility is due for repayment in June
2017.

The Company’s cash position and the strong outlook for the
2016 financial year have underpinned the Board’s decision
to announce the recommencement of dividend payments to
shareholders. The Board of Regis declared a X cents per
share dividend subsequent to the end of the financial year.

In addition, the Board subsequent to the end of the
financial year, announced an on market share buy-back
programme for up to 5% of the Company’s issued capital or
approximately 25 million shares over the 12 months to
August 2016.

PHOTO: CHRIS FIDOCK
Moolart Well Top of Tanks

REGIS RESOURCES ANNUAL REPORT // 2015REGIS RESOURCES ANNUAL REP ORT // 20 15

REGIS RESOURCES ANNUAL REPORT // 2015Regis sold a total of 308,898 ounces of gold during the year at an average price of A$1,488 per ounce. Duketon
Gold Project

The Duketon Gold Project is located in
the North Eastern Goldfields of Western
Australia approximately 130 kilometres
north of Laverton. The project area
consists of three operating gold
mines and in excess of 1,500 square
kilometres of exploration tenure.

In 2015 the Duketon Project produced record gold production
of 310,204 ounces at a pre-royalty cash cost of $826 per ounce.
During the year the Company realised a significant milestone
with the Duketon Project achieving one million ounces of gold
production since operations commenced in 2010.

PHOTO: STEVE SNOWDON
Rosemont Night

REGIS RESOURCES ANNUAL REPORT // 2015Moolart 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 495,000 ounces of gold.

Operating results for the year to 30 June 2015 were 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

2015

2,910,547

2,912,706

1.14

98,742

$622

$686

2014

2,798,713

2,781,872

1.26

104,880

$576

$640

Moolart Well achieved production guidance for the year of 98,742 ounces at a pre-royalty cash cost of $622
per ounce. Total production at Moolart Well declined by 6% for the 2015 financial year as a result of an
overall decline in the processed head grade at the operation. As was expected the average head grade
declined by 9% from the previous year as the project trends towards the life of mine reserve grade of
0.92g/t. The lower head grade was partially off-set by a higher throughput rate for the year of 2.9 million
tonnes per annum.

Mining commenced in the Lancaster North oxide pit during the year, however the bulk of production for
the year came from the Stirling oxide pit and the laterite deposit. At the end of the financial year
approximately 1.4 million tonnes of laterite ore had been exposed in the open pits ready for mining.
Mining is scheduled to commence in the Wellington oxide pit in 2016 supplementing the production from
the Lancaster North, Stirling and Laterites pits.

The mid-point of guidance for gold production for the 2016 financial year at Moolart Well is 75,000 ounces
at an all in sustaining cost of $950 per ounce.

REGIS RESOURCES ANNUAL REPORT // 2015Garden Well
Operations

The Garden Well Gold Project
is located approximately 35
kilometres south of the Company’s
Moolart Well operation. The
Company completed development
of the Garden Well Gold Mine in
September 2012 for a final capital
cost of $113 million.

Operating results for the year to 30 June 2015 were 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

2015

5,781,377

4,581,711

0.90

107,719

$1,064

$1,132

2014

5,879,412

4,715,183

1.04

137,484

$999

$1,061

Operations at Garden Well for the 2015 financial year produced 107,719 ounces of gold at a pre-royalty cash
cost of $1,064 per ounce. Gold production in 2015 was 22% lower than the previous year as a result of lower
head grade and lower milling recoveries. The lower head grade achieved at Garden Well for the year was a
function of the poor performance of the actual mined grade versus the expected reserve grade. This was
predominately in Stage 4 of the Garden Well open pit where most of the mining activity during the year
occurred. The Reserve was updated in July 2015 to account for the poor mining to reserve reconciliation.

Recovery rates were impacted particularly in the first six months of the year with the treatment of a
relatively small area of transitional ore containing higher than normal base metals and highly reactive
sulphides. Metallurgical testing confirmed that the very low recovery ore is contained in a discrete area in
the southern end of the pit. Since identifying this problematic ore and the effect it has on recovery rates
the Company has attempted to isolate the ore from treatment.

The mid-point of guidance for gold production for the 2016 financial year at Garden Well is 130,000 ounces
at an all in sustaining cost of $1,040 per ounce.

REGIS RESOURCES ANNUAL REPORT // 2015Rosemont
Operations

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 Rosemont deposit was designed 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.

In July 2013 the company announced Stage 2 of the Rosemont development being the construction of
additional leaching and associated infrastructure at the Garden Well processing plant to cater for the
maximum ore flow from Rosemont.

The construction of Stage 1 of the Rosemont Gold Project achieved practical completion in October 2013
materially in line with the $55 million budget and the construction schedule. Commercial production
commenced in January 2014. Stage 2 of the development was completed in June 2014 on time and under
budget.

Operating results for the year to 30 June 2015 were 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

All in sustaining cost per ounce (A$/oz)

2015

2014
(9 months)

2,379,513

2,348,333

1.49

103,743

$772

$836

$1,077

826,568

1,088,722

0.98

29,695

N/A

Rosemont completed its first full year of operations producing 103,743 ounces of gold at an all in
sustaining cost of $1,077 per ounce. The strong performance at Rosemont was driven by a 52% increase in
the processed head grade compared to the previous year due to a strong performance in the grade of the
actual ore mined compared to the reserve grade. Improvements to the milling circuit during the year
increased the recovery and throughput rates at the operation.

The mid-point of guidance for gold production for the 2016 financial year at Rosemont is 85,000 ounces at
an all in sustaining cost of $1,070 per ounce.

REGIS RESOURCES ANNUAL REPORT // 2015Gold Exploration

DUKETON GOLD PROJECT

Regis controls a significant
tenement package, encompassing
251 granted exploration, prospecting
and mining licences covering 1,502
square kilometres and 37 general
purpose and miscellaneous licences
covering 1,185 square kilometres at
the Duketon Gold Project.

Significant exploration activities
took place across the following
project areas at Duketon during
the year:

Baneygo

The Baneygo gold Resource is located 12 kilometres south of the Rosemont gold mine and is hosted in a quartz
dolerite unit believed to be the same unit hosting gold at Rosemont. The JORC 2004 gold Resource at Baneygo of
43,000oz occurs in 4 small deposits namely Baneygo (8,000oz), Baneygo Beacon (14,000oz), Baneygo South
(15,000oz) and Sydney Mint (6,000oz) over a strike distance of 3km. The entirety of the Baneygo Project is located
on a granted Mining Lease.

Historical drilling at Baneygo is generally only to 50 metres and in some places to 100m vertical depth. Very
little drilling has been completed between the four small deposits with up to 250m between drill traverses.

As reported in July 2015 an RC drilling programme commenced in the June 2015 quarter to validate historical
drilling at the four deposits and to define and expand the historical Resource by drilling to approximately 100m
depth and testing for gold mineralisation between the four small deposits. Initial RC drilling focused on testing
the quartz dolerite host on 20m spaced holes on 80m spaced east west traverses over a 3km strike distance.

Highly encouraging gold results were received from holes on the initial 80m spaced drilling traverses and
follow-up drilling has commenced to reduce the drill spacing to 20m on 40m spaced east west traverses.
Highlights from this drilling are shown below.

PHOTO: RICHARD SPILSBURY
Resource drilling at Baneygo

REGIS RESOURCES ANNUAL REPORT // 2015Northing
(mN)

Easting
(mE)

Hole
Depth
(m)

From
(m)

To
(m)

Interval
(m)

Gold g/t

Hole No

RRLBYRC002

RRLBYRC023

RRLBYRC024

RRLBYRC034

RRLBYRC082

RRLBYRC084

RRLBYRC086

6907462

6906712

6906721

6906092

6907458

6907547

6907627

431925

432197

432235

432357

431914

431901

RRLBYRC107

6907319

432000

RRLBYRC114

RRLBYRC117

6907502

6907430

431914

431961

RRLBYRC128

6906677

432238

114

102

168

108

120

114

120

102

117

110

8.35

8.96

2.55

6.95

1.46

3.05

3.73

12.34

8.73

87.49

8.03

All coordinates are AGD 84. All holes were drilled at -60° to 254°.
All Intercepts calculated using a 0.5g/t lower cut, no upper cut, maximum 2m internal dilution.
All assays determined on 1m split samples by fire assay.

Two cross sections showing the nature of gold mineralisation in the quartz dolerite unit are shown below.

Baneygo drilling on oblique cross sections 6906700mN and 6907450mN. Holes drilled towards 254°.

A further 60 RC holes for 5,500m are planned early in the September 2015 quarter. A revised Resource
estimate is expected in the December 2015 quarter.

The gold mineralisation at Baneygo is still open to the south for 4km and to the north for 12km to
Rosemont. The same prospective quartz dolerite unit continues to the south and the north and drilling
along this unit is sporadic. Reconnaissance RC drilling of this prospective unit will commence in the
September 2015 quarter.

REGIS RESOURCES ANNUAL REPORT // 2015Gold Exploration // CONTINUED

Tooheys Well

The Tooheys Well gold prospect is located 2.5km south of the Garden Well gold mine. Gold mineralisation
was previously defined in a North-South trending western shear zone hosted in chert and fine grained
sediments.

A programme of 19 RC holes (RRLTWRC006-024) was drilled in the June 2015 quarter to follow-up anomalous
gold mineralisation in the western shear zone. The recent drilling has defined a parallel eastern shear
zone located approximately 100m east which is also hosted in chert and fine grained sediments.

The eastern shear zone was intersected by holes RRLTWRC014, 015 and 018 and appears to have higher
grades than the western shear zone and is untested for 750m to the south. Both shear zones dip about
45° to the east and weathering extends to 80 to 100m vertical depth in the eastern shear zone.

Significant gold results are shown below:

Hole No

Northing
(mN)

Easting
(mE)

Hole
Depth
(m)

From
(m)

To
(m)

Interval
(m)

Gold g/t

RRLTWRC014

6909260

437820

RRLTWRC015

RRLTWRC018

RRLTWRC019

RRLTWRC020

RRLTWRC021

RRLTWRC023

RRLTWRC024

6909260

6909417

6909500

6909580

6909418

6909576

6909579

437819

437780

437710

437700

437861

437777

437861

118

103

143

103

163

143

158

156

103

163

>8gm (gram x metres) intersections are tabled.
All coordinates are AGD 84.
All holes were drilled at -60° to 270°.
All Intercepts calculated using a 0.5g/t lower cut, no upper cut, maximum 2m internal dilution.
All assays determined on 1m split samples by fire assay.

3.23

3.15

3.65

5.47

1.54

4.00

1.69

1.87

1.48

1.60

Drilling will commence in the September 2015 quarter to determine the continuity of gold mineralisation
in the eastern shear zone 750m to the south, initially on 80m spaced East-West sections in the oxide zone
and to target gold mineralisation in the fresh rock zone.

REGIS RESOURCES ANNUAL REPORT // 2015Coopers Gold Prospect

The Coopers gold prospect is located 11km south of Moolart Well and 600m north of Dogbolter, and is
located on the same shear zone hosting those two deposits. An earlier programme of Aircore drilling by
Regis on 40m and 80m spaced East-West traverses defined gold mineralisation in the oxide zone over a
strike distance of 400m. The gold mineralised zone is weakly mineralised to the north and still requires
further drilling. A small programme of RC drilling was completed to infill two 80m spaced drill traverses
to 40m.

Regis drilled 10 RC holes (RRLCPRC001-010) at Coopers during the June 2015 quarter. The drilling included 7
RC holes 20m apart on one cross section at 6934420mN. Significant assay results received from 1m RC
samples from this drilling are shown below:

Hole No

Northing
(mN)

Easting
(mE)

RRLCPRC005

6934420

434880

RRLCPRC006

6934420

434900

RRLCPRC007

RRLCPRC008

RRLCPRC010

6934420

6934453

434920

434940

434924

Hole
Depth
(m)

103

118

133

123

From
(m)

To
(m)

Interval
(m)

Gold g/t

106

110

103

2.71

23.88

5.99

49.31

2.30

>8gm (gram x metres) intersections are tabled.
All coordinates are AGD 84. All holes were drilled at -60° to 270°
All Intercepts calculated using a 0.5g/t lower cut, no upper cut, maximum 2m internal dilution.
All assays determined on 1m split samples by fire assay.

These results will provide enough data to complete a preliminary Resource estimation and review of the
Coopers Prospect in the September 2015 quarter. Further drilling will be required to define the northern
extent of gold mineralisation.

REGIS RESOURCES ANNUAL REPORT // 2015Gold Exploration // CONTINUED

Rosemont Underground Potential

Regis has been aware through historical and more recent drilling at both Rosemont and Garden Well of the
existence of higher grade zones below and along strike from current open pit designs. The underground
potential of these operations has not been an exploration priority in the past several years given that both
operations are in the relatively early stages of their open pit mine lives.

Gold mineralisation at Rosemont is confined to a steeply dipping quartz dolerite unit intruding ultramafic
flow units. The quartz dolerite is continuous from the North Pit to Rosemont south and continues for a
further 12km to Baneygo where it is also mineralised. In the fresh rock zone at Rosemont, higher grade south
plunging gold shoots have been defined by wide spaced drilling in the quartz dolerite as shown in the second
long section below.

As open pit operations move towards steady state, exploration focus is now moving to assess the
underground mining opportunities. Further drilling is required to define the underground potential of the
higher grade gold shoots.

In the June 2015 quarter a gold mineralised envelope with drilling intercepts greater than 0.5g/t gold was
modelled for the mineralised quartz dolerite unit along the extent of the Rosemont deposit. During this
process several high grade steeply south plunging shoots were defined. The most promising area was
modelled at the south end of Rosemont. This is shown in the boxed area of the isometric long section below.

Rosemont Main and North Pits showing 0.5g/t gold mineralised envelope
and high grade gold zone subject to diamond drilling.

One panel of this domain covering approximately 500m of mineralised strike immediately south of the
Rosemont Main pit design was selected for analysis in a conceptual study due to the reasonable density
of drilling and interpreted geological continuity in the area. This area was geologically modelled in detail
and a mineral inventory was estimated for internal conceptual study purposes.

REGIS RESOURCES ANNUAL REPORT // 2015This geological and estimation data was provided to an external consultant to complete a high level
conceptual study on the underground mining prospects of this area. The conclusions of this high level
study were that the mineral inventory in the area is of the width, grade and continuity sufficient to
support profitable underground mining.

Rosemont Long Section showing conceptual study panel and proposed diamond drilling.

In order to move forward with further studies, the key matters that will need to be addressed include:

The continuity of the geological model and the eventual underground resource estimation; and

The suitability of geotechnical and hydrogeological conditions for underground mining.

As a first preliminary step towards advancing more detailed studies on the area, Regis is currently drilling
a programme of 6 diamond holes (average vertical depth 250 metres and total drilling of 1,840 metres,
including 1,210 metres of RC pre-collars) to complete a first pass test of the geological model as well as
geotechnical and hydrogeological conditions.

Full details including JORC tables of all exploration activities and results for the June 2015 quarter were
released on 16 July 2015 entitled “High grade results point to new gold project at Duketon & exploration
update”.

Moolart Well

The Moolart Well deposit has significant Inferred oxide resources north of the Stirling and Lancaster open
pits. Drilling at Moolart Well during the period focussed on RC resource infill drilling on the Wellington
Oxide Resource to reduce the drill hole spacing from 50 by 50 metre to 25 by 25 metre pattern spacing
across the inferred resource. This drilling is part of Regis’ ongoing mining inventory replacement strategy
and formed the basis of the Wellington oxide deposit that was added into Moolart Well’s reserve
inventory in the July 2015 Reserve update.

REGIS RESOURCES ANNUAL REPORT // 2015Gold Exploration // CONTINUED

Erlistoun
Gold mineralisation at Erlistoun is hosted in narrow quartz veins which dip shallowly to the west at ~40o.
Zones of supergene mineralisation occur in discrete pods where the gold mineralisation structure comes
into contact with the weathering horizons. RC infill resource drilling commenced during the year to reduce
the drill spacing to 40 by 20 metre and 20 by 20 metre and to better define the discrete zones of high
grade gold mineralisation.

Results received from this programme of drilling were used to refine mineralised boundaries and define
high grade pods between old holes drilled previously on a 40 by 40 metre grid. Based on this drilling the
Erlistoun reserve was updated in the July 2015 Reserve Update.

Rosemont

During the year an RC drill programme was completed at Rosemont to test a mineralised western quartz
dolerite unit located 30 metres west of the main lode, in and around the southern extremities of the
current Rosemont Main open pit design. This additional drilling combined with a reoptimisation and
subsequent pit redesign at Rosemont resulted in an increase to the Rosemont reserve in the July 2015
Reserve Update.

Dogbolter

The Dogbolter deposit is located 12 kilometres south of the Moolart Well processing facility and has gold
mineralisation dipping shallowly to the east at 30-40° and is associated with a diorite intrusion close to
an ultramafic contact. Small high grade pods are associated with the intersection of mineralised
structures and weathering horizons.

A programme of RC drilling commenced during the year to target the high grade gold mineralisation in the
shallow oxide zone. This programme of drilling is part of the Company’s strategy to develop the numerous
satellite deposits across the Duketon tenement package to provide incremental feed to the three
operating mills in the district. Results received from this programme of drilling formed the basis of a
maiden reserve estimation at Dogbolter in the July 2015 Reserve Update.

REGIS RESOURCES ANNUAL REPORT // 2015MCPHILLAMYS

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. Whilst the Company
announced in July 2014 that it would not proceed
imminently to DFS on the project, early stage feasibility
work continued during the year, particularly focussed on
the key infrastructure requirements for the development of
the project. Limited exploration activity was conducted on
the project during the year.

PHOTO: TOM RIDGES
Pit panoramic
Moolart Well

REGIS RESOURCES ANNUAL REPORT // 2015Acquisition for Growth

ACQUISITION OF GLOSTER GOLD DEPOSIT

Regis completed a transaction to
acquire six prospecting licences for
A$1.5 million (paid in cash) and a gross
royalty of A$10 per ounce to be paid on
any gold production from these licences
(indexed to the gold price where the
gold price exceeds A$1,500 per ounce).

The licences are strategically located 26 kilometres from Regis’ Moolart Well processing plant and contain
a historic Resource estimate of 8,279,000 tonnes at 1.37g/t for 365,000 ounces.

The Resource estimate was completed in 1997 in compliance with the 1996 JORC Code and Guidelines. The
area (historically referred to as the Famous Blue Project) has previously been well drilled by several
companies and historic mining took place on these tenements with approximately 6,000 ounces produced
from 1902 to 1910. A breakdown of the 1997 Resource is shown below.

Area

Category

Tonnes

Grade

Ounces

Famous Blue

Measured

Indicated

Inferred

Total

7,523,000

756,000

8,279,000

1.37

1.35

1.37

332,000

33,000

365,000

Estimated using a 0.5g/t Au cut-off.

Regis believes there is very good potential for mining of the Gloster project to profitably extend the
operational life at Moolart Well through the trucking of mined ore to that plant for treatment.

Regis’ plan in the short term is to complete a drilling campaign to update the historic Resource and then
in due course to use this data as the basis of a mining study.

DUKETON GOLD EXPLORATION JOINT VENTURE

Regis signed a letter of agreement with Duketon Mining Limited (ASX: DKM) to enter into an exploration
joint venture on four of DKM’s exploration licences which are contiguous with some of Regis’ Duketon
tenure in proximity to the Moolart Well project.

The proposed joint venture tenure covers approximately 373 square kilometres and hosts a number of
greenstone shear zones prospective for gold (see map below). These include the northern strike
continuation of the shear zone hosting the Petra gold deposit and part of the shear zone extending north
of the Garden Well gold deposit.

The joint venture terms require Regis to pay DKM $100,000 on signing (paid in July 2015) and spend a
minimum of $1 million on exploring for gold on the tenure over a two year period to earn a 75% interest in
any mining project that is confirmed by a Regis decision to mine. All non gold mineral rights remain with
DKM.

In the event of a decision to mine by Regis on any project discovered, DKM will have the options of
participating in a mining joint venture at a 25% contributing interest (subject to some capital funding
assistance from Regis), selling its interest in the mining project to Regis for $850,000 or commuting the
interest to a 2% net smelter royalty on all gold produced from the project. These options will relate to
each separate discovery on which a decision to mine is made by Regis.

The heads of agreement is subject to the execution of formal legal agreements, work on which the parties
will commence immediately in order to expedite exploration efforts on the joint venture.

This agreement is an important step in Regis executing its strategy of pursuing further longevity and
profitability at the very successful Moolart Well operations.

REGIS RESOURCES ANNUAL REPORT // 2015PHOTO: RICHARD SPILSBURY
Profile Drilling at Baneygo

REGIS RESOURCES ANNUAL REPORT // 2015Gold Reserves

Group Ore Reserves
as at 31 March 2015

Proved

Probable

Total Reserves

Cut-Off
(g/t)

Million
Tonnes

Grade
g/t

Gold
KOz

Million
Tonnes

Grade
g/t

Gold
KOz

Million
Tonnes

Grade
g/t

115

955

387

1,456

181

229

6.5

34.5

13.2

54.3

3.8

0.3

0.6

0.1

4.8

0.92

0.91

1.35

1.02

1.48

1.57

1.26

2.07

1.47

0.92

0.93

1.36

1.02

1.48

1.57

1.26

2.07

1.47

1.06

1,685

59.1

1.06

2,006

Gold
KOz

194

1,009

574

1,777

181

229

Project

Moolart Well

Garden Well

Rosemont

Duketon Main Deposits

Erlistoun

Dogbolter

Petra

Anchor

Type

Open Pit

Duketon Satellite Deposits

>0.4

Total

>0.5

2.7

4.4

9.7

0.93

0.63

1.34

1.03

188

321

3.9

31.9

8.9

44.6

3.8

0.3

0.6

0.1

4.8

Regis

Total

9.7

1.03

321

49.4

REGIS RESOURCES ANNUAL REPORT // 2015Gold Resources
(inclusive of Reserves)

Group Mineral Resources
as at 31 March 2015

Project

Cut-Off
(g/t)

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

Type

Measured

Indicated

Inferred

Total Resources

Moolart Well

Open Pit

Garden Well

Open Pit

Rosemont

Open Pit

Duketon Main Deposits

Erlistoun

Open Pit

Dogbolter

Open Pit

Petra

Anchor

King John

Open Pit

Russells Find

Open Pit

Baneygo

Open Pit

Reichelts Find

Open Pit

Duketon Satellite Deposits

Duketon Total

McPhillamys

0.4

1.0

0.5

1.0

3.0

2.7

5.4

11.1

0.89

0.63

1.31

1.03

228

369

29.2

73.8

20.1

0.75

0.90

1.27

706

2,131

824

123.2

0.92

3,661

5.7

2.8

1.2

0.2

0.1

10.1

1.34

1.11

1.08

1.75

3.69

1.28

247

102

416

15.0

10.2

2.8

28.0

1.1

0.4

0.1

0.7

0.4

0.8

3.6

0.62

0.88

1.78

0.83

1.00

1.02

1.09

0.95

3.19

3.86

1.67

1.96

11.1

1.03

369

133.2

0.95

4,077

31.5

0.96

0.4

69.2

0.94

2,087

3.9

0.98

300

288

160

748

223

971

123

47.3

86.7

28.3

162.3

6.9

3.2

1.3

0.2

0.7

0.4

0.8

0.1

13.6

0.72

0.89

1.33

0.92

1.28

1.10

1.08

1.53

3.19

3.86

1.67

3.69

1.46

1,093

2,473

1,212

4,777

284

115

640

175.9

0.96

5,417

73.2

0.94

2,210

Regis

Total

11.1

1.03

369

202.5

0.95

6,164

35.5

0.96

1,094

249.1

0.95

7,627

REGIS RESOURCES ANNUAL REPORT // 2015Directors’
report

YOUR DIRECTORS SUBMIT THEIR REPORT FOR THE YEAR ENDED 30 JUNE 2015

REGIS RESOURCES ANNUAL REPORT // 2015Directors

The directors of the Company in office since 1 July 2014 and up to the date of this report 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 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 25 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 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 Glyn Evans, BAppSc, FAusIMM
(Independent Non-Executive Director)

Mr Evans is a geologist with over 30
years’ experience in base metal and
gold mining operations.

He was an executive director with
ASX listed gold mining companies
between 1991 and 2007. Mr Evans
has a strong mine geology
background, having held senior mine
management positions early in his
career and then ultimately managed
the gold resources and reserves of
both Samantha Gold NL (1987-1994)
and Equigold NL (1995-2007). He also
led extensive exploration
programmes over his long career
which culminated in significant gold
discoveries including the well-known
Higginsville and Chalice Mines in
Western Australia and the Bonikro
mine in the Ivory Coast.

During the past three years, Mr
Evans has not served as a director of
any other ASX listed companies.

Mr Evans is a Fellow of the
Australian Institute of Mining and
Metallurgy.

Mr Frank Fergusson
(Independent Non-Executive Director)

Mr Fergusson is an experienced gold
mining industry director and has a
long track record of successful
operational management.

His career in the gold mining
industry spans over 30 years,
starting at Great Victoria Gold Mine
in 1983 where he was later the
project’s General Manager. He was
Operations Manager at Samantha
Gold NL from 1988 to 1994 and was
an Executive Director from 1992 to
1994.

Mr Fergusson was a founding
shareholder and executive director
of Equigold NL from 1994 until his
retirement from the role in 2006. In
this executive role, Mr Fergusson
was Group Operations Manager
overseeing Equigold’s three gold
mining operations in Western
Australia and Queensland.

After his retirement from Equigold in
2006, Mr Fergusson took a short term
executive role at OM Holdings
Limited where he undertook an
independent technical review of the
Company’s manganese mining
operations and implemented
operational changes that
significantly improved operational
productivity and led to improved
production and operating costs.

During the past three years, Mr
Fergusson has not served as a
director of any other ASX listed
companies.

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 26 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

REGIS RESOURCES ANNUAL REPORT // 2015Company 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.

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);

Mr Kestel is a member of the
Australian Institute of Company
Directors.

Mr Mark Okeby, LLM
(Independent Non-Executive Director)

Mr Okeby has considerable experience
in the resources industry as a solicitor
and as a director of listed companies.

He has been an executive and
non-executive director of a number of
gold producers and other resource
companies and has been involved in
the development of a number of
resource projects and with mergers
and acquisitions in the resource
sector.

Mr Okeby is currently a non-executive
director of Red Hill Iron Limited and,
during the past three years, Mr Okeby
has not served as a director of any
other ASX listed companies.

REGIS RESOURCES ANNUAL REPORT // 2015Dividends

After the balance sheet date the following dividends were proposed by the directors:

Final dividends recommended:

Ordinary shares

Cents
per share

Total
amount
$’000

6.00

29,987

The financial effect of these dividends has not been brought to account in the consolidated financial
statements for the year ended 30 June 2015 and will be recognised in subsequent financial reports.

Nature of Operations and Principal Activities

The principal activities of Regis Resources Limited (“Regis” or the “Company”) and its controlled entities
(collectively, the “Group”) during the year were:

production of gold from the Moolart Well, Garden Well and Rosemont gold mines;

exploration, evaluation and development of gold projects in the Eastern Goldfields of Western Australia;

and

exploration and evaluation of the McPhillamys Gold Project in New South Wales.

Apart from the above, or as noted elsewhere in this report, no significant changes in the state of affairs of
the Company occurred during the financial year.

Objectives

The Group’s objectives are to:

Achieve operational predictability by optimising mining and processing facilities across the Duketon

Gold Project whilst maintaining a high standard of safety;

Maximise cash flow by driving the cost base lower from steady state operations and pushing for last

capacity opportunities;

Organically increase the Reserve base of the Group by bringing satellite resource positions in to the

mine plan and infill drill the significant oxide resources at Moolart Well.

Focus on regional exploration to add incremental ounces to the three operating mills in the district;

Reduce debt in a sensible timeframe;

Reactivate the Company’s dividend policy when appropriate; and

Actively pursue growth opportunities.

Operating and Financial Review

Overview of the Group
Regis is a leading Australian gold producer, with its head office in Perth, Western Australia. The Company
operates three wholly-owned mines at the Duketon Gold Project in the Eastern Goldfields of Western
Australia. The Moolart Well Gold Mine commenced operations in July 2010, the Garden Well Gold Mine
commenced in August 2012 and the Rosemont Gold Mine commenced operations in October 2013.

The Group also owns the McPhillamys Gold Project, an advanced exploration project in New South Wales,
250 kilometres west of Sydney near the town of Bathurst.

REGIS RESOURCES ANNUAL REPORT // 2015Financial Summary

Key financial data

Financial results

Sales revenue

Cost of sales (excluding D&A)(i)

Other income

Corporate, admin and other costs

EBITDA(i) and impairment

Depreciation and amortisation (D&A)

Profit before tax and impairment(i)

Asset impairment

Reported profit/(loss) after tax

Other financial information

Cash flow from operating activities

Net cash/(debt)

Net assets

Basic earnings/(loss) per share (cents per share)

2015
$’000

2014
$’000

Change
$’000

Change
%

464,854

(276,223)

2,452

(9,725)

181,358

(53,388)

125,071

86,920

141,955

29,574

409,973

17.39

371,232

(224,958)

3,514

(8,947)

141,542

(59,358)

79,488

(289,572)

(147,830)

124,163

(33,385)

321,060

(29.68)

93,622

(51,265)

(1,062)

(778)

39,816

5,970

45,583

289,525

234,750

17,792

62,959

88,913

47.07

25.2%

22.8%

(30.2%)

8.7%

28.1%

(10.1%)

57.3%

(100.0%)

158.8%

14.3%

188.6%

27.7%

158.6%

(i)

EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortisation. Cost of sales (excluding D&A), EBITDA
and Profit before tax and impairment are non-IFRS financial information and are not subject to audit. These measures are included to
assist investors to better understand the performance of the business

Performance relative to the previous financial year
Regis made an after tax profit of $86.9 million for the full year to 30 June 2015 compared to an after tax loss
of $147.8 million for the previous corresponding year. The result for the previous year reflected an
impairment of $289.6 million pre-tax against the non-current assets of the Company. The impairment
predominately related to the write-down of the carrying value of the Garden Well and Rosemont gold mines
in Western Australia and the McPhillamys Gold Project in New South Wales.

SALES
Sales revenue for the year ended 30 June 2015 increased by $93.6 million (25%) compared to the previous
corresponding period. The increase in gold revenue reflects a higher gold price achieved and record gold
production from the Company’s Duketon operations. Total gold production for the year was higher than the
prior period at 310,204 ounces (2014: 270,759 ounces) due to the first full year of operations at the Rosemont
Gold Mine. The prior year was also affected by the flooding event in February 2014 at the Garden Well and
Rosemont open pits. The average price of gold sold was $1,488 per ounce, up slightly on the previous year’s
average sale price of $1,460 per ounce.

COST OF SALES
Cost of sales including royalties and before depreciation and amortisation increased by 23% to $276 million
during the year as a result of increased throughput and production associated with the first full year of
operations at Rosemont. In addition, prior year costs were affected by remediation work from the flooding
event in February 2014 at the Garden Well and Rosemont open pits. On a unit cost basis, total cash costs at
Garden Well were $1,132 per ounce up from $1,061 per ounce in the previous year due predominately to lower
grade ore being processed in the current year. The head grade of the ore processed up to 30 June 2015 was
0.90g/t compared to 1.04g/t in the previous year. Moolart Well total cash costs were 7% higher than the
previous year at $686 per ounce as a result of a lower grade ore processed during the year. The head grade
of the ore processed up to 30 June 2015 was 1.14g/t compared to 1.26g/t in 2014. Total cash costs for the first
full year of operations at the Rosemont Gold mine were $836 per ounce.

REGIS RESOURCES ANNUAL REPORT // 2015IMPAIRMENT OF ASSETS
Following a review of the carrying value of the non-current assets of the Group, a pre-tax impairment
charge of $289.6 million was recognised for the year ended 30 June 2014. The impairment charge related to
the Garden Well and Rosemont operations and exploration projects including McPhillamys. It was the result
of a combination of factors including the major flooding event at Duketon in February 2014, operating
challenges at the two mines and a fall in the gold price. An impairment loss of $47,000 has been recognised
in the current financial year in relation to tenements that were surrendered, relinquished or expired during
the 12 months to 30 June 2015.

DEPRECIATION AND AMORTISATION
Depreciation and amortisation charges decreased by $5.97 million from the previous year due to the
impairment of the carrying value of the non-current assets at Garden Well and Rosemont in the 2014
financial year.

CASH FLOW FROM OPERATING ACTIVITIES
Cash inflow from operating activities was $142.0 million, up 14% from $124.2 million in the previous year due
to higher production and a higher average gold price achieved. In addition $32.0 million of income taxes
were paid in the 2014 financial year in relation to the fully franked dividend paid in October 2013. No income
tax was paid in the current financial year.

Cash outflows from investing activities were $76.8 million to 30 June 2015 down 48% from the previous year.
There were no major construction projects in the current year and accordingly payments for mine properties
under construction reduced in 2015 to $1.8 million compared with $78.0 million in the previous year.
Payments for mine properties rose $10.4 million in the current year to $43.9 million as pre-strip material and
deferred waste continued to be mined at the Rosemont and Garden Well operations. The Company spent
$10.3 million during the year on exploration expenditure and a further $19.3 million on property plant and
equipment.

Cash outflows from financing activities were $20 million for the year, which represented the partial
repayment of the Macquarie Bank financing facility. The outstanding balance is $20 million and is due for
repayment in June 2017.

GOLD FORWARD CONTRACTS
At the end of the financial year the Company had a total hedging position of 281,031 ounces, being 145,834
ounces of flat forward contracts with a delivery price of A$1,437 per ounce and 135,197 ounces of spot
deferred contracts with a price of A$1,437 per ounce.

Review of operations
A review of each operation is provided below. Where presented, cash cost per ounce is calculated as costs
of production relating to gold sales (note 3), excluding gold in circuit inventory movements divided by gold
ounces produced. The calculation is presented both including and excluding the cost of royalties (note 3).
All in Sustaining Cost (“AISC”) per ounce is an extension of existing cash cost metrics and incorporates
costs relating to sustaining production, such as capitalised pre-strip and production stripping expenditure.
These measures are included to assist investors to better understand the performance of the business. Cash
cost and AISC per ounce are non-IFRS measures, and where included in this report, have not been subject to
review by the Group’s external auditors.

REGIS RESOURCES ANNUAL REPORT // 2015OPERATIONS – MOOLART WELL
Operating results for the 12 months to 30 June 2015 were as follows:

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost per ounce – pre royalties

Cash cost per ounce – incl. royalties

30 June
2015

2,910,547

2,912,706

1.14

98,742

$622

$686

30 June
2014

2,798,713

2,781,872

1.26

104,880

$576

$640

Tonnes

g/t

Ounces

A$/oz

Moolart Well achieved production guidance for the year of 98,742 ounces at a pre royalty cash cost of $622
per ounce. Total production at Moolart Well declined by 6% for the 2015 financial year as a result of an
overall decline in the processed head grade at the operation. As was expected the average head grade
declined by 9% from the previous year as the project trends towards the life of mine reserve grade of
0.92g/t. The lower head grade was partially off-set by a higher throughput rate for the year of 2.9 million
tonnes per annum.

Mining commenced in the Lancaster North oxide pit during the year, however the bulk of production for the
year came from the Stirling oxide pit and the laterite deposit. At the end of the financial year
approximately 1.4 million tonnes of laterite ore had been exposed in the open pits ready for mining. Mining
is scheduled to commence in the Wellington oxide pit in 2016 supplementing the production from the
Lancaster North, Stirling and Laterites pits.

OPERATIONS – GARDEN WELL
Operating results at the Garden Well Gold Mine for the 12 months to June 2015 were as follows:

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost per ounce – pre royalties

Cash cost per ounce – incl. royalties

30 June
2015

5,781,377

4,581,711

0.90

107,719

$1,064

$1,132

30 June
2014

5,879,412

4,715,183

1.04

137,484

$999

$1,061

Tonnes

g/t

Ounces

A$/oz

Operations at Garden Well for the 2015 financial year produced 107,719 ounces of gold at a pre royalty cash
cost of $1,064 per ounce. Gold production in 2015 was 22% lower than the previous year as a result of lower
head grade and lower milling recoveries. Milled grade was impacted by lower than forecast ore tonnes
generated by mining limiting the ability to selectively process higher grade ore mined and consequently
stockpile lower grade ore.

Recovery rates were impacted particularly in the first six months of the year with the treatment of a
relatively small area of transitional ore containing higher than normal base metals and highly reactive
sulphides. Metallurgical testing confirmed that the poorer recovery ore is contained in a discrete area in
the southern end of the pit. Since identifying this problematic ore and the effect it has on recovery rates
the Company has attempted to isolate the ore from treatment.

REGIS RESOURCES ANNUAL REPORT // 2015OPERATIONS – ROSEMONT
Operating results at the Rosemont Gold Mine for the 12 months to June 2015 were as follows:

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost per ounce – pre royalties

Cash cost per ounce – incl. royalties

Tonnes

g/t

Ounces

A$/oz

30 June
2015

2,379,513

2,348,333

1.49

103,743

$772

$836

30 June
2014
(9 months)

826,568

1,088,722

0.98

29,695

Rosemont completed its first full year of operations producing 103,743 ounces of gold at a pre royalty cash
cost of $772 per ounce. The strong performance at Rosemont was driven by a 52% increase in the processed
head grade compared to the previous year due to a strong performance in the grade of the actual ore mined
compared to the reserve grade. Improvements to the milling circuit during the year increased the recovery
and throughput rates at the operation.

Production Guidance
Regis expects gold production for the 2016 financial year to be within the range of 275,000 – 305,000 ounces
at an AISC (all in sustaining cost) of $970 - $1,070 per ounce. The mid-point of this (+/- 5%) guidance range
is summarised as follows:

Moolart Well

Rosemont Garden Well

Total

Ore mined

Waste mined

Stripping ratio

Ore mined

Ore milled

Head grade

Recovery

Million BCM

Waste:Ore

Million Tonnes

g/t

Gold production

Ounces (‘000s)

Cash cost – pre royalties

Cash cost – incl. royalty

All in Sustaining Cost

A$/oz

1.5

4.4

3.1

2.8

2.9

0.89

820

880

950

1.0

9.3

9.7

2.2

2.3

1.23

840

910

1,070

2.2

5.9

2.5

5.6

5.0

0.91

130

900

970

4.7

19.6

4.2

10.6

10.1

0.98

290

860

930

1,040

1,020

Note: errors in summation may occur in this table due to rounding

At the mid-point of guidance and the current gold price (≈A$1,500/oz) the Duketon operations are expected
to generate an operating cashflow (derived using AISC as operating cost) of around A$140 million in FY2016.
Additional expansion capital expenditures are expected to be in the order of A$15-20 million.

REGIS RESOURCES ANNUAL REPORT // 2015Gold Exploration

DUKETON GOLD PROJECT (WA)
Regis controls a significant tenement package, encompassing 251 granted exploration, prospecting and
mining licences covering 1,502 square kilometres and 37 general purpose and miscellaneous licences
covering 1,185 square kilometres at the Duketon Gold Project.

Significant exploration activities took place across the following project areas at Duketon during the year:

Baneygo

The Baneygo gold Resource is located 12 kilometres south of the Rosemont gold mine and is hosted in a
quartz dolerite unit believed to be the same unit hosting gold at Rosemont. The JORC 2004 gold Resource
at Baneygo of 43,000oz occurs in 4 small deposits namely Baneygo (8,000oz), Baneygo Beacon (14,000oz),
Baneygo South (15,000oz) and Sydney Mint (6,000oz) over a strike distance of 3km. The entirety of the
Baneygo Project is located on a granted Mining Lease.

Historical drilling at Baneygo is generally only to 50 metres and in some places to 100m vertical depth.
Very little drilling has been completed between the four small deposits with up to 250m between drill
traverses.

An RC drilling programme commenced in the June 2015 quarter to validate historical drilling at the four
deposits and to define and expand the historical Resource by drilling to approximately 100m depth and
testing for gold mineralisation between the four small deposits. Initial RC drilling focused on testing the
quartz dolerite host on 20m spaced holes on 80m spaced east west traverses over a 3km strike distance.

Tooheys Well

A programme of RC drilling commenced in the June 2015 quarter to follow-up anomalous gold mineralisation
in the western shear zone. The recent drilling has defined a parallel eastern shear zone located
approximately 100m east which is also hosted in chert and fine grained sediments.

The eastern shear zone appears to have higher grades than the western shear zone and is untested for
750m to the south. Both shear zones dip about 45° to the east and weathering extends to 80 to 100m
vertical depth in the eastern shear zone.

Drilling will commence in the September 2015 quarter to determine the continuity of gold mineralisation in
the eastern shear zone 750m to the south, initially on 80m spaced East-West sections in the oxide zone and
to target gold mineralisation in the fresh rock zone.

Coopers Gold Prospect

The Coopers gold prospect is located 11km south of Moolart Well and 600m north of Dogbolter, and is
located on the same shear zone hosting those two deposits. An earlier programme of Aircore drilling by
Regis on 40m and 80m spaced E-W traverses defined gold mineralisation in the oxide zone over a strike
distance of 400m. The gold mineralised zone is weakly mineralised to the north and still requires further
drilling. A small programme of RC drilling was completed to infill two 80m spaced drill traverses to 40m.

Moolart Well

REGIS RESOURCES ANNUAL REPORT // 2015Erlistoun

Gold mineralisation at Erlistoun is hosted in narrow quartz veins which dip shallowly to the west at ~40° .
Zones of supergene mineralisation occur in discrete pods where the gold mineralisation structure comes
into contact with the weathering horizons. RC infill resource drilling commenced during the year to reduce
the drill spacing to 40 by 20 metre and 20 by 20 metre and to better define the discrete zones of high grade
gold mineralisation.

Rosemont

During the year an RC drill programme was completed at Rosemont to test a mineralised western quartz
dolerite unit located 30 metres west of the main lode, in and around the southern extremities of the
current Rosemont Main open pit design. This additional drilling combined with a re-optimisation and
subsequent pit redesign at Rosemont resulted in an increase to the Rosemont reserve in the July 2015
Reserve Update.

Dogbolter

The Dogbolter deposit is located 12 kilometres south of the Moolart Well processing facility and has gold
mineralisation dipping shallowly to the east at 30-40° and is associated with a diorite intrusion close to an
ultramafic contact. Small high grade pods are associated with the intersection of mineralised structures
and weathering horizons.

A programme of RC drilling commenced during the year to target the high grade gold mineralisation in the
shallow oxide zone. This programme of drilling is part of the Company’s strategy to develop the numerous
satellite deposits across the Duketon tenement package to provide incremental feed to the three operating
mills in the district. Results received from this programme of drilling formed the basis of a maiden reserve
estimation at Dogbolter in the July 2015 Reserve Update.

Gloster Gold Deposit

In June 2015 Regis completed a transaction to acquire six prospecting licences for $1.5 million and a gross
royalty of A$10 per ounce to be paid on any gold production from these licences (indexed to the gold price
where the gold price exceeds A$1,500 per ounce). The licences are strategically located 26 kilometres from
Regis’ Moolart Well processing plant and contain a historic Resource estimate of 8,279,000 tonnes at 1.37g/t
for 365,000 ounces.

Regis believes there is very good potential for mining of the Gloster project to profitably extend the
operational life at Moolart Well through the trucking of mined ore to that plant for treatment. Regis’ plan
in the short term is to complete a drilling campaign to update the historic Resource and then in due course
to use this data as the basis of a mining study.

MCPHILLAMYS GOLD PROJECT (NSW)
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. Whilst the Company announced in July 2014 that it would
not proceed imminently to DFS on the project, early stage feasibility work continued during the year,
particularly focussed on the key infrastructure requirements for development of the project. Limited
exploration activity was conducted on the project during the year.

REGIS RESOURCES ANNUAL REPORT // 2015Significant 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

DUKETON GOLD EXPLORATION JOINT VENTURE
On 14 July 2015, the Group announced an agreement to enter into an exploration joint venture with Duketon
Mining Limited (“DKM”) on four of DKM’s exploration licences which are contiguous with some of Regis’
Duketon tenure in proximity to the Moolart Well project. The proposed joint venture will require Regis to
make an up-front payment to DKM of $100,000 and spend a minimum of $1 million on exploring for gold on
the tenure over a two year period to earn a 75% interest in any mining project that is confirmed by a Regis
decision to mine. All non-gold mineral rights remain with DKM.

DIVIDENDS
On 15 September 2015, the directors proposed a final dividend on ordinary shares in respect of the 2015
financial year. Refer to note 6.

Other than the matter 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.

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 States 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.

REGIS RESOURCES ANNUAL REPORT // 2015Share Options

Unissued Shares
At the date of this report, the Company had the following unissued shares under listed and unlisted
options.

Maturity Date

Unlisted options

8 November 2015

30 June 2016

31 July 2017

12 September 2017

31 March 2018

10 October 2018

11 August 2019

Total

Exercise price

Number
outstanding

$2.75

$4.00

$3.50

$1.55

$2.40

$1.55

$1.40

575,000

855,000

1,625,000

1,500,000

550,000

50,000

8,500,000

13,655,000

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, employees exercised unlisted options to acquire 37,500 fully paid ordinary shares
in Regis Resources Limited at an exercise price of $1.00 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 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.

REGIS RESOURCES ANNUAL REPORT // 2015Directors’ 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

G Evans

F Fergusson

R Kestel

M Okeby

Directors’
Meetings
10

Audit and Risk
Management
Committee
3

Remuneration
and
Nomination
Committee
1

n/a

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:

Audit and Risk
Management Committee

R Kestel (Chairman)

N Giorgetta

M Okeby

Remuneration and
Nomination Committee

R Kestel (Chairman)

N Giorgetta

M Okeby

F Fergusson

REGIS RESOURCES ANNUAL REPORT // 2015Directors’ Interests in the Shares and Options of the Company

As at the date of this report, the interests of the directors in the options of the Company were unchanged
from the holdings as at 30 June 2015 as disclosed in the Remuneration Report. The directors’ interests in the
shares of the Company at the date of this report are set out in the table below

N Giorgetta

M Clark

G Evans

F Fergusson

R Kestel

M Okeby

Number of
ordinary shares

19,529,671

9,460,000

4,235,815

5,003,957

75,000

1,200,000

Auditor Independence and Non-Audit Services

During the year KPMG, the Group auditor, did not perform any non-audit services in addition to the audit and
review of the financial statements.

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.

REGIS RESOURCES ANNUAL REPORT // 2015Remuneration
report AUDITED

REGIS RESOURCES ANNUAL REPORT // 2015This remuneration report for the year ended 30 June 2015 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, senior executives 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

Other KMP

N Giorgetta Chairman (non-executive)

J Balkau General Manager – Exploration

M Clark

Managing Director

M Evans Chief Development Officer

G Evans

Director (non-executive)

K Massey Chief Financial Officer and Company Secretary

F Fergusson Director (non-executive)

P Thomas Chief Operating Officer

R Kestel

Director (non-executive)

M Okeby

Director (non-executive)

Principles of Remuneration

The Remuneration and Nomination Committee is charged with setting remuneration for the directors and
the Managing Director determines the remuneration for the other KMPs.

Remuneration levels for KMP are competitively set to attract and retain appropriately qualified and
experienced directors and executives. 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, trends in comparative companies and the objectives
of the Group’s remuneration strategy.

The remuneration structures take into account:

the capability and experience of the KMP;

the ability of the KMP to influence the Group’s performance; and

the Group’s performance regarding operation success as reflected by growth in share price.

Remuneration packages include a mix of cash and longer-term performance based incentives. The Managing
Director holds a significant personal shareholding in the Company, which aligns his goals and objectives
with those of the Company. The Remuneration and Nomination Committee takes this into account when
deciding whether further share-based incentives are to be offered to the Managing Director.

REGIS RESOURCES ANNUAL REPORT // 2015The Group’s financial performance over the past five years has been as follows:

2015
$’000

2014
$’000

2013
$’000

2012
$’000

2011
$’000

Revenue

465,320

371,933

416,834

171,504

108,651

Net profit/(loss) after tax

86,920

(147,830)

146,506

68,239

36,281

Basic earnings/(loss) per share (cents)

Diluted earnings/(loss) per share (cents)

17.39

(29.68)

30.65

30.27

15.51

15.18

8.54

8.24

Net assets

409,973

321,060

538,096

235,626

140,278

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, safety performance, 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 Group allows KMP 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 Managing Director reviews the performance of the KMPs 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 Managing
Director 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.

REGIS RESOURCES ANNUAL REPORT // 2015Service Contracts

The Group has entered into service contracts with each KMP. 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. No service contract specifies a term of
employment or entitlement to performance based incentives, except as detailed below for the Managing
Director.

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 has undergone a further three year extension from 4

May 2015;

Fixed remuneration of $550,000 per annum (2014: $550,000) subject to annual review; and

Opportunity to earn a performance based bonus determined by the Company.

During and since the end of the financial year, the Board completed its annual review of the Managing
Director’s remuneration and decided to increase the fixed remuneration component to $650,000 per annum
effective from 1 July 2015.

The Managing Director’s termination provisions are as follows:

Employer initiated termination:

- without reason

- with reason

Notice Period

Payment in
Lieu of Notice

Entitlement
to Options
on Termination

3 months plus
9 months’ salary

Not less than
3 months

12 months

Not less than
3 months

1 month to
exercise,
extendable at
Board discretion

- serious misconduct

0 – 1 month

Employee initiated termination

3 months

Not specified

As above

Change of control

1 month plus 12
months’ salary

Not specified

As above

Mr Paul Thomas, the Company’s Chief Operating Officer, is employed under a contract with the following
termination provisions:

Notice Period

Payment in
Lieu of Notice

Employer initiated termination:

- with or without reason

3 months

Up to 3 months

- serious misconduct

0 – 1 month

Entitlement
to Options
on Termination

1 month to
exercise,
extendable at
Board discretion

Employee initiated termination

3 months

Not specified

As above

Change of control

1 month plus 12
months’ salary

Not specified

As above

Mr Kim Massey, the Company’s Chief Financial Officer and Company Secretary is entitled to 1 months’
notice plus 12 months’ salary in the event of a change of control.

REGIS RESOURCES ANNUAL REPORT // 2015Non-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
$414,000 per annum. Non-executive directors’ fees cover all main board activities and membership of board
committees. Non-executive directors do not receive performance-related compensation and are not
provided with any retirement benefits, apart from statutory superannuation. 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 2015

Short Term

Post
Employment

Share-based
Payment

Salary & Fees
$

Non-
Monetary
Benefits*
$

Superannuation
$

Options
$

Termination
Payments
$

Total
$

Performance
Related
%

550,000

73,000

110,000

85,000

73,000

295,000

321,667

310,833

400,000

5,112

2,291,500

25,560

52,250

6,935

10,450

8,075

6,935

28,025

30,558

29,529

38,000

217,692

53,326

71,099

416,078

611,602

607,362

79,935

120,450

93,075

79,935

381,463

428,436

416,573

859,190

3,146,354

13.98%

16.60%

17.07%

48.43%

2015

Directors

M Clark

G Evans

F Fergusson

N Giorgetta

R Kestel

M Okeby

Other KMP

J Balkau

M Evans

K Massey

P Thomas

Total

* Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.

REGIS RESOURCES ANNUAL REPORT // 2015TABLE 2: REMUNERATION FOR THE YEAR ENDED 30 JUNE 2014

Short Term

Post
Employment

Share-based
Payment

2014

Directors

M Clark

M Hart(i)

G Evans(ii)

F Fergusson(iii)

N Giorgetta

R Kestel

M Okeby

Other KMP

J Balkau

M Evans

T Hinkley(iv)

K Massey

P Thomas(v)

B Wyatt(iv)

Salary & Fees
$

Non-
Monetary
Benefits*
$

Superannuation
$

Options
$

Termination
Payments
$

Total
$

Performance
Related
%

550,000

356,667

18,250

51,708

110,000

85,000

73,000

295,000

305,000

225,000

290,000

100,000

225,000

4,853

3,640

4,853

1,213

50,875

32,992

1,688

4,783

10,175

7,863

6,753

27,288

28,212

20,813

26,825

9,250

20,813

36,808

49,077

36,808

51,282

212,503

386,478

233,910

605,728

627,209

19,938

56,491

120,175

92,863

79,753

363,949

387,142

282,621

372,960

110,463

458,316

233,910

3,577,608

10.11%

12.68%

13.02%

13.75%

46.37%

Total

2,684,625

24,265

248,330

Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.

(i) Mr Hart resigned from his position as Operations Director on 25 February 2014.

(ii) Mr G Evans was appointed as Non-Executive Director on 1 April 2014.

(iii) Mr Fergusson was appointed as Non-Executive Director on 14 October 2013.

(iv) Due to a senior management restructure on 1 April 2014, Mr Hinkley and Mr Wyatt ceased to be classified as KMPs.

(v) Mr Thomas commenced with the Company on 1 April 2014 in the role of Chief Operating Officer.

TABLE 3: COMPENSATION OPTIONS - GRANTED AND VESTED DURING THE YEAR

Granted

Terms & Conditions for each Grant

Vested

No.

Grant
date

Fair value
per option
at grant
date

Exercise
price per
option

Expiry
date

First
exercise
date

Last
exercise
date

% Vested
during
the year

No.

2015

Other KMP

P Thomas

1,500,000

12 Sep 14

$0.8710

$1.55

12 Sep 17

12 Sep 16

12 Sep 17

Total

1,500,000

REGIS RESOURCES ANNUAL REPORT // 2015TABLE 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
$

1,306,500

Remuneration
consisting of
share options for
the year

13.98%

16.60%

17.07%

48.43%

2015

Other KMP

J Balkau

M Evans

K Massey

P Thomas

Total

There were no options exercised by KMPs during the year.

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: OPTION HOLDINGS OF KEY MANAGEMENT PERSONNEL
The movement during the reporting period, by number of options over ordinary shares in Regis Resources
Limited held, directly, indirectly or beneficially, by each key management person, including their related
parties, is as follows:

Held at start of
period
1 July 2014

Granted as
remuneration

Options
exercised

Net
change
other

Held at end
of period
30 June 2015

Total

Exercisable

Not
exercisable

Vested at 30 June 2015

Other KMP

J Balkau

M Evans

K Massey

P Thomas

Total

75,000

100,000

1,500,000

275,000

1,500,000

75,000

100,000

1,500,000

1,775,000

REGIS RESOURCES ANNUAL REPORT // 2015TABLE 6: SHAREHOLDINGS OF KEY MANAGEMENT PERSONNEL
The movement during the reporting period in the number of ordinary shares in Regis Resources Limited
held, directly, indirectly or beneficially, by each key management person, including their related parties, is
as follows:

Directors

N Giorgetta

M Clark

G Evans

F Fergusson

M Okeby

Other KMP

J Balkau

M Evans

K Massey

P Thomas

Total

Held at
1 July 2014

On exercise
of options

Net change
other

Held at
30 June 2015

21,529,671

9,460,000

3,507,815

5,003,957

1,200,000

1,525,464

863,188

161,049

43,251,144

(5,000,000)

(161,481)

80,000

16,529,671

9,460,000

3,507,815

5,003,957

1,200,000

1,525,464

701,707

161,049

80,000

(5,081,481)

38,169,663

“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.

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 years.

OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
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 their related parties.

Signed in accordance with a resolution of the directors.

Mr Mark Clark
Managing Director

Perth, 15 September 2015

REGIS RESOURCES ANNUAL REPORT // 2015Auditor’s Indepencence Declaration

REGIS RESOURCES ANNUAL REPORT // 2015CONSOLIDATED
STATEMENT OF
COMPREHENSIVE
INCOME

CONSOLIDATED
BALANCE SHEET

CONSOLIDATED
STATEMENT OF
CHANGES IN EQUITY

CONSOLIDATED
STATEMENT OF
CASH FLOWS

NOTES TO THE
FINANCIAL
STATEMENTS

DIRECTOR’S
DECLARATION

INDEPENDENT
AUDITOR’S REPORT

TENEMENT
INFORMATION

ASX ADDITIONAL
INFORMATION

Financial
statements

REGIS RESOURCES ANNUAL REPORT // 2015Consolidated Statement of Comprehensive Income
For the year ended 30 June 2015

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

Impairment of non-current assets

Other expenses

Finance costs

Profit/(loss) before tax

Income tax (expense)/benefit

Profit/(loss) from continuing operations

Other comprehensive income

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

NOTE

Consolidated

2015
$’000

465,320

(329,611)

135,709

2,452

(1,129)

(4,825)

(1,959)

(524)

(550)

(47)

(738)

(3,365)

125,024

(38,104)

86,920

2014
$’000

371,933

(284,316)

87,617

3,514

(1,271)

(3,737)

(2,519)

(513)

(733)

(289,572)

(174)

(2,696)

(210,084)

62,254

(147,830)

Profit/(loss) attributable to members of the parent

86,920

(147,830)

Total comprehensive income/(loss) attributable to members of the parent

86,920

(147,830)

Basic earnings/(loss) per share attributable to ordinary equity
holders of the parent (cents per share)

Diluted earnings/(loss) per share attributable to ordinary equity
holders of the parent (cents per share)

17.39

(29.68)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

REGIS RESOURCES ANNUAL REPORT // 2015Consolidated Balance Sheet
As at 30 June 2015

Consolidated

NOTE

2015
$’000

2014
$’000

Current assets

Cash and cash equivalents

Gold bullion awaiting settlement

Receivables

Current tax assets

Inventories

Financial assets held-to-maturity

Other current assets

Total current assets

Non-current assets

Inventories

Property, plant and equipment

Exploration and evaluation assets

Mine properties under development

Mine properties

Deferred tax assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Interest-bearing liabilities

Income tax payable

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

Accumulated losses

Total equity

The above balance sheet should be read in conjunction with the accompanying notes.

51,781

12,710

4,732

30,818

152

939

101,132

21,377

208,959

118,779

65,874

415,057

516,189

36,104

787

3,522

3,622

44,035

21,420

1,140

39,621

62,181

106,216

6,615

7,605

3,863

27,080

43,045

148

1,242

89,598

212,020

105,788

14,235

38,668

6,363

377,074

466,672

59,825

5,714

3,288

68,827

34,286

42,499

76,785

145,612

409,973

321,060

431,338

18,510

(39,875)

409,973

431,304

16,551

(126,795)

321,060

REGIS RESOURCES ANNUAL REPORT // 2015Consolidated Statement of Changes in Equity
For the year ended 30 June 2015

Consolidated

ISSUED CAPITAL
$’000

SHARE OPTION
RESERVE
$’000

RETAINED PROFITS/
(ACCUMULATED
LOSSES)
$’000

TOTAL EQUITY
$’000

431,304

16,551

At 1 July 2014

Profit for the period

Other comprehensive income

Total comprehensive income for the year

Transactions with owners in their capacity as owners:

Share-based payments expense

Shares issued, net of transaction costs

At 30 June 2015

At 1 July 2013

Loss for the period

Other comprehensive income

Total comprehensive income for the year

Transactions with owners in their capacity as owners:

Share-based payments expense

Dividends paid

Shares issued, net of transaction costs

At 30 June 2014

431,338

428,358

2,946

431,304

1,959

18,510

14,032

2,519

(126,795)

86,920

321,060

86,920

1,959

(39,875)

409,973

95,706

(147,830)

538,096

(147,830)

(74,671)

2,519

(74,671)

2,946

321,060

16,551

(126,795)

The above statement of changes in equity should be read in conjunction with the accompanying notes.

REGIS RESOURCES ANNUAL REPORT // 2015Consolidated Statement of Cash Flows
For the year ended 30 June 2015

Consolidated

NOTE

2015
$’000

2014
$’000

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

Income tax paid

Other income

459,750

(316,314)

458

(2,024)

Net cash from operating activities

141,955

Cash flows from investing activities

Acquisition of property, plant and equipment

Payments for exploration and evaluation (net of rent refunds)

Payments for exploration assets (net of cash)

Payments for held-to-maturity investments

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 dividends

Proceeds from borrowings

Repayment of finance lease

Repayment of borrowings

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at 1 July

Cash and cash equivalents at 30 June

The above statement of cash flows should be read in conjunction with the accompanying notes.

(19,257)

(10,292)

(1,557)

(4)

(1,800)

(43,855)

(76,765)

(3)

(58)

(20,000)

(20,024)

45,166

6,615

51,781

385,542

(232,142)

2,949

862

(1,604)

(32,009)

555

124,163

(21,709)

(13,881)

(50)

(5)

(77,992)

(33,407)

(147,034)

3,020

(73)

(74,671)

39,990

(31,734)

(54,605)

61,220

6,615

REGIS RESOURCES ANNUAL REPORT // 2015Notes to
the financial
statements

REGIS RESOURCES ANNUAL REPORT // 2015Basis of preparation . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Performance for the year . . . . . . . . . . . . . . . . . . . . . . 55

SEGMENT INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

2. REVENUE AND OTHER INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

EARNINGS PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

5. CURRENT INCOME TAX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

6. DIVIDENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Operating assets and liabilities . . . . . . . . . . . . . . . . . . 62

8. GOLD BULLION AWAITING SETTLEMENT . . . . . . . . . . . . . . . . . . . . . . .62

9. RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

10. INVENTORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

11. PROPERTY, PLANT AND EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . .64

12. EXPLORATION AND EVALUATION ASSETS . . . . . . . . . . . . . . . . . . . . . .65

13. MINE PROPERTIES UNDER DEVELOPMENT . . . . . . . . . . . . . . . . . . . . 66

14. MINE PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

15.

IMPAIRMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

16. TRADE AND OTHER PAYABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

17. PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

Capital structure and finance costs . . . . . . . . . . . . . . . 71

18. NET DEBT AND FINANCE COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

19. FINANCIAL RISK MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

20. ISSUED CAPITAL AND RESERVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

Other disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

21. DEFERRED INCOME TAX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76

22. SHARE-BASED PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

23. RELATED PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79

24. PARENT ENTITY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

25. COMMITMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

26. CONTINGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81

27. AUDITOR’S REMUNERATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81

28. SUBSEQUENT EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

29. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS . . . . . . . . . .82

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Basis of preparation

30 June 2015

Basis of preparation

Regis Resources Limited (“Regis” or the “Company”) is a
for profit company limited by shares, incorporated and
domiciled in Australia, whose shares are publicly traded
on the Australian Securities Exchange. Its registered
office and principal place of business is:

Regis Resources Limited
Level 1
1 Alvan Street
Subiaco WA 6008

A description of the nature of operations and principal
activities of Regis and its subsidiaries (collectively, the
“Group”) is included in the Directors’ Report, which is
not part of these financial statements.

The financial statements were authorised for issue in
accordance with a resolution of the directors on 15
September 2015.

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 (AASB) and complies with
International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards
Board (IASB);

has been prepared on a historical cost basis except
for assets and liabilities and share-based payments
which are required to be measured at fair value. The
basis of measurement is discussed further in the
individual notes;

is presented in Australian dollars with all values
rounded to the nearest thousand dollars ($’000)
unless otherwise stated, in accordance with ASIC
Class Order 98/100;

presents reclassified comparative information where
required for consistency with the current year’s
presentation;

adopts all new and amended Accounting Standards
and Interpretations issued by the AASB that are
relevant to the operations of the Group and effective
for reporting periods beginning on or after 1 July
2014. Refer to note 29 for further details;

does not early adopt any Accounting Standards and
Interpretations that have been issued or amended
but are not yet effective. Refer to note 29 for further
details.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements comprise the
financial statements of the Group. A list of controlled
entities (subsidiaries) at year end is contained in note
23.

The financial statements of subsidiaries are prepared for
the same reporting period as the parent company, using
consistent accounting policies. Adjustments are made to
bring into line any dissimilar accounting policies that
may exist.

In preparing the consolidated financial statements, all
intercompany balances and transactions, income and
expenses and profits and losses resulting from intra-
group transactions have been eliminated. Subsidiaries
are consolidated from the date on which control is
obtained to the date on which control is disposed. The
acquisition of subsidiaries is accounted for using the
acquisition method of accounting.

FOREIGN CURRENCIES
Both the functional currency of each entity within the
Group and the Group’s presentation currency is
Australian dollars.

Transactions in foreign currencies are initially recorded
in Australian dollars at the exchange rate on that day.
Foreign currency monetary assets and liabilities are
translated to Australian dollars at the reporting date
exchange rate. Foreign currency gains and losses are
generally recognised in profit or loss.

OTHER ACCOUNTING POLICIES
Significant and other accounting policies that summarise
the measurement basis used and are relevant to an
understanding of the financial statements are provided
throughout the notes to the financial statements. Where
possible, wording has been simplified to provide clearer
commentary on the financial report of the Group.
Accounting policies determined non-significant are not
included in the financial statements. There have been no
changes to the Group’s accounting policies that are no
longer disclosed in the financial statements.

KEY ESTIMATES AND JUDGEMENTS
In the process of applying the Group’s accounting
policies, management has made a number of judgements
and applied estimates of future events. Judgements and
estimates which are material to the financial report are
found in the following notes.

Note 3

Expenses

Note 10

Inventories

Page 57

Page 63

Note 12

Exploration and evaluation assets

Page 65

Note 14 Mine properties

Note 15

Impairment

Note 17

Provisions

Note 21 Deferred income tax

Note 22

Share-based payments

Page 67

Page 68

Page 69

Page 76

Page 77

REGIS RESOURCES ANNUAL REPORT // 2015THE NOTES TO THE FINANCIAL STATEMENTS
The notes include information which is required to
understand the financial statements and is material
and relevant to the operations and the financial
position and performance of the Group. Information
is considered relevant and material if, for example:

the amount is significant due

to its size or nature;

the amount is important for understanding

the results of the Group;

it helps to explain the impact of significant

changes in the Group’s business; or

it relates to an aspect of the Group’s operations
that is important to its future performance.

The notes are organised into the following sections:

Performance for the year;

Operating assets and liabilities;

Capital structure and finance costs;

Other disclosures.

A brief explanation is included under each section.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Performance for the year

30 June 2015

Performance for the year

This section focuses on the results and performance of the Group. This covers both profitability and the resultant
return to shareholders via earnings per share combined with cash generation and the return of cash to shareholders
via dividends.

1. SEGMENT INFORMATION
Operating segments are reported in a manner that is consistent with the internal reporting provided to the
Managing Director and his executive management team (the chief operating decision makers). The Group has two
reportable segments which comprise the Duketon Gold Project; being the Moolart Well Gold Mine and the Garden
Well Gold Mine, which incorporates Rosemont. The segments are unchanged from those reported at 30 June 2014.

Unallocated items comprise corporate administrative costs, exploration and evaluation assets relating to areas of
interest where an economically recoverable reserve is yet to be delineated, interest revenue, finance costs 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 following table presents financial information for reportable segments for the years ended 30 June 2015 and 30
June 2014:

Moolart Well
Gold Mine

Garden Well
Gold Mine

Unallocated

Total

2015
$’000

2014
$’000

2015
$’000

2014
$’000

2015
$’000

2014
$’000

2015
$’000

2014
$’000

Continuing Operations

Segment revenue

Sales to external customers

144,400

154,056

320,454

217,176

Other revenue

Total segment revenue

144,400

154,056

320,454

217,176

Total revenue per the statement of comprehensive income

466

464,854

371,232

701

466

701

465,320

371,933

465,320

371,933

Interest expense

Impairment of non-current assets

1,677

1,351

1,677

1,351

205,559

84,013

289,572

Depreciation and amortisation

24,612

26,085

28,776

33,284

229

223

53,617

59,592

Depreciation capitalised

Total depreciation and amortisation recognised in the statement of comprehensive income

(87)

(111)

53,530

59,481

Segment result

Segment net operating
profit/(loss) before tax

Segment assets

54,528

63,220

81,564

(182,668)

(11,068)

(90,636)

125,024

(210,084)

Segment assets at balance date

62,849

80,045

261,408

219,552

191,932

167,075

516,189

466,672

Capital expenditure for the year

6,650

14,025

57,596

122,142

13,059

21,574

77,305

157,741

REGIS RESOURCES ANNUAL REPORT // 20152. REVENUE AND OTHER INCOME

Accounting Policies

GOLD SALES
Revenue is recognised and measured at the fair value of the consideration received or receivable, when the
amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the
Group. The specific recognition criteria for the Group’s gold sales is upon dispatch of the gold bullion from the
mine site as this is the point at which the significant risks and rewards of ownership and control of the
product passes to the customer. Adjustments are made for variations in gold 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.

Revenue

Gold sales

Interest

Consolidated

2015
$’000

464,854

466

465,320

2014
$’000

371,232

701

371,933

Gold forward contracts

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 gold sales. The counterparty to the gold forward contracts is Macquarie Bank Limited (“MBL”).

It is management’s intention to settle each contract through physical delivery of gold and as such, the gold
forward sale contracts disclosed below do not meet the criteria of financial instruments for accounting
purposes. This is referred to as the “normal purchase/sale” exemption. Accordingly, the contracts will be
accounted for as sale contracts with revenue recognised once the gold has been delivered to MBL or its agent.

Gold for
physical
delivery

Contracted gold
sale price

Value of
committed
sales

Mark-to-
market(i)

2015
ounces

2014
ounces

2015
$/oz

2014
$/oz

2015
$’000

2014
$’000

2015
$’000

2014
$’000

Within one year

- Spot contracts

- Spot deferred contracts(ii)

- Fixed forward contracts

Between one and five years

20,000

1,400.00

28,000

135,197

45,834

20,000

47,724

22,917

1,436.50

1,419.68

194,210

1,402.50

1,402.35

24,000

1,453.50

1,460.25

64,275

29,070

67,753

32,138

35,046

(11,310)

(6,263)

(1,723)

- Fixed forward contracts

45,834

1,402.35

64,275

- Fixed forward contracts

80,000

100,000

1,453.50

116,280

145,350

(9,316)

(156)

566

(832)

921

(2,839)

(4,279)

281,031

260,475

403,835

372,562

(28,612)

(6,619)

Mark-to-market has been calculated with reference to the following spot price at period end

$1,520/oz

$1,408/oz

(i) Mark-to-market represents the value of the open contracts at balance date, calculated with reference to the gold spot price

at that date. A negative amount reflects a valuation in the counterparty's favour.

(ii) The contracted gold sale price disclosed for spot deferred contracts reflects a weighted average of a range of contract prices.
The range of prices at the end of the year was from $1,402.35/oz to $1,588.48/oz (2014: $1,400.32/oz to $1,460.25/oz).

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Performance for the year

30 June 2015 // CONTINUED

Accounting Policies

DERIVATIVES
The Group also uses derivative financial instruments such as gold call options to manage the risk
associated with commodity price fluctuations. 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 active market is determined using appropriate
valuation techniques. Changes in fair value are recognised in the statement of comprehensive income, net
of any transaction costs.

During the financial year, the Group sold gold call options for 7,000 ounces with a weighted average
exercise price of A$1,409/oz (2014: 65,000 ounces at A$1,419/oz). The options expired unexercised and the
below gains reflect the premiums received.

Other income

Realised gain on gold options

Rehabilitation provision adjustment

Legal settlement

Rental income

3. EXPENSES

Accounting Policies

Consolidated

2015
$’000

2014
$’000

2,367

2,452

2,949

555

3,514

CASH COSTS OF PRODUCTION
Cash costs of production include direct costs incurred for mining, milling, laboratory and mine site
administration, net of costs capitalised to pre-strip and production stripping assets. This category also
includes movements in the cost of inventory and any net realisable value write downs.

Cost of goods sold

Cash costs of production

Royalties

Depreciation of mine plant and equipment

Amortisation of mine properties

Consolidated

2015
$’000

256,192

20,031

36,710

16,678

329,611

2014
$’000

208,471

16,487

30,415

28,943

284,316

REGIS RESOURCES ANNUAL REPORT // 2015DEPRECIATION
Depreciation of mine specific plant and equipment and buildings and infrastructure is charged to the
statement of 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 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:

Plant and equipment: 3 - 20 years

Fixtures and fittings: 3 - 20 years

Leasehold improvements: 10 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

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.

Depreciation and amortisation

Depreciation expense

Amortisation expense

Less: Amounts capitalised

Depreciation and amortisation charged to the statement of comprehensive income

Key estimates and assumptions

Unit-of-production method of depreciation/amortisation

Consolidated

2015
$’000

36,939

16,678

(87)

53,530

2014
$’000

30,649

28,943

(111)

59,481

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.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Performance for the year

30 June 2015 // CONTINUED

Employee benefits expense

Wages and salaries

Defined contribution superannuation expense

Share-based payments expense

Other employee benefits expense

Less: Amounts capitalised

NOTE

Employee benefits expense recognised in the statement of comprehensive income

Lease payments and other expenses included in the statement of comprehensive income

Minimum lease payments – operating lease

Less: Amounts capitalised

Recognised in the statement of comprehensive income

Other expenses

Gold swap fees

Non-capital exploration expenditure

Loss on disposal of assets

Rehabilitation provision adjustment

4. EARNINGS PER SHARE

Accounting Policy

Consolidated

2015
$’000

2014
$’000

30,347

2,759

1,959

1,893

36,958

(2,627)

34,331

351

(105)

246

151

579

738

30,945

2,734

2,519

1,990

38,188

(7,861)

30,327

346

(104)

242

124

174

Earnings per share (“EPS”) is the amount of post-tax profit attributable to each share. The Group presents basic and
diluted 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 takes into account the dilutive effect of all potential ordinary shares, being unlisted employee share
options on issue. In the prior year, these potential ordinary shares were not considered dilutive as their exercise
would reduce the loss per share.

Consolidated

2015
($’000)

2014
($’000)

Earnings used in calculating EPS

Net profit/(loss) attributable to ordinary equity holders of the parent

86,920

(147,830)

Weighted average number of shares

Issued ordinary shares at 1 July

Effect of shares issued

Weighted average number of ordinary shares at 30 June

Effect of dilution:

Share options

Weighted average number of ordinary shares adjusted for the effect of dilution

NO. SHARES
‘000s

499,744

499,773

499,794

494,085

3,962

498,047

There have been no transactions involving ordinary shares between the reporting date and the date of completion
of these financial statements which would impact on the above EPS calculations.

REGIS RESOURCES ANNUAL REPORT // 20155. CURRENT INCOME TAX

Accounting Policy

CURRENT TAX
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.

The major components of income tax expense are:

CURRENT INCOME TAX

Current income tax expense

Adjustment in respect of income tax of previous years

DEFERRED INCOME TAX

Relating to the origination and reversal of temporary differences

Adjustment in respect of income tax of previous years

Income tax expense/(benefit) reported in the statement of comprehensive income

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/(loss) before income tax

At the Group’s statutory income tax rate of 30% (2014: 30%)

Share-based payments

Other non-deductible items

Adjustment in respect of income tax of previous years

Consolidated

2015
$’000

2014
$’000

26,121

4,480

11,976

(4,473)

38,104

125,024

37,507

588

5,139

(209)

(67,406)

222

(62,254)

(210,084)

(63,025)

756

Income tax expense/(benefit) reported in the statement of comprehensive income

38,104

(62,254)

6. DIVIDENDS

Consolidated

2015
$’000

2014
$’000

Declared and paid during the year:

Dividends on ordinary shares

Final franked dividend for 2014: nil (2013: 15 cents per share)

74,671

Proposed by the directors after balance date but not recognised as a liability at 30 June:

Dividends on ordinary shares

Final dividend for 2015: 6 cents (2014: nil)

Dividend franking account

Amount of franking credits available to shareholders of Regis Resources Limited
for subsequent financial years

The ability to utilise the franking credits is dependent upon the ability to declare dividends.

29,987

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Performance for the year

30 June 2015 // CONTINUED

7. CASH AND CASH EQUIVALENTS

Accounting Policy

CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. Cash at bank earns
interest at floating rates based on daily bank deposit rates.

At 30 June 2015, the Group had no undrawn, committed borrowing facilities available (2014: $30 million
available). Refer to note 18.

Consolidated

2015
$’000

2014
$’000

Cash and cash equivalents in the balance sheet and cash flow statement

Cash at bank and on hand

51,781

6,615

Restrictions on cash

The Group is required to maintain $161,000 on deposit to secure a bank guarantee in relation to the Perth
office lease. The amount will be held for the term of the lease. Refer to note 25.

Reconciliation of profit/(loss) after income tax to net cash inflow from operating activities

Consolidated

2015
$’000

2014
$’000

Net profit/(loss) for the year

Adjustments for:

Impairment of non-current assets

Unwinding of discount on provisions

Loss on disposal of assets

Share-based payments

Rehabilitation provision adjustment

Depreciation and amortisation

Changes in assets and liabilities

(Increase)/decrease in gold bullion awaiting settlement

(Increase)/decrease in receivables

(Increase)/decrease in inventories

(Increase)/decrease in other current assets

(Increase)/decrease in current tax assets/income tax payable

Increase/(decrease) in trade and other payables

Increase/(decrease) in deferred tax liabilities/assets

Increase/(decrease) in provisions

Net cash from operating activities

86,920

(147,830)

1,543

1,959

(2,367)

53,530

(5,105)

(1,136)

(9,150)

272

30,620

(21,750)

7,503

(939)

141,955

289,572

906

2,519

59,481

14,310

365

(24,621)

186

(27,080)

23,375

(67,184)

164

124,163

NON-CASH FINANCING AND INVESTING ACTIVITIES
During the year ended 30 June 2015, the Group entered into a hire purchase arrangement for the acquisition
of a Komatsu WA900 loader for the Duketon Gold Project. The amount financed was $2,183,000. Refer to note
18 for further details. This transaction is not reflected in the statement of cash flows. There were no
non-cash financing or investing activities in the prior year.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
30 June 2015
Operating assets and liabilities

Operating assets and liabilities

This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a
result. Liabilities relating to the Group’s financing activities are addressed in the capital structure and finance
costs section on page 71.

8. GOLD BULLION AWAITING SETTLEMENT

Accounting Policy

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 the expected
selling price and adjustments for variations in the gold price are made at the time of final settlement.

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.

Current

Gold bullion awaiting settlement

Consolidated

2015
$’000

2014
$’000

12,710

7,605

At balance date, gold bullion awaiting settlement comprised 8,158 ounces valued at a weighted average realisable
value of $1,558/oz (2014: 5,209 ounces at $1,460/oz).

9. RECEIVABLES

Accounting Policy

Receivables are recognised at fair value and subsequently at the amounts considered receivable (amortised cost).
Balances within receivables do not contain impaired assets, are not past due and are expected to be received
when due.

The Group does not have trade receivables in relation to gold sales. The only material receivables at year end are
for GST and fuel tax credits receivable from the Australian Taxation Office and therefore, the Group is not generally
exposed to credit risk in relation to its receivables.

Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value.

Current

GST receivable

Fuel tax credit receivable

Interest receivable

Dividend trust account

Other receivables

Consolidated

2015
$’000

2014
$’000

2,850

1,364

340

161

4,732

2,286

939

477

151

3,863

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Operating assets and liabilities

30 June 2015 // CONTINUED

10. INVENTORIES

Accounting Policy

Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost
and net realisable value. 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. 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, including royalties.

Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is
measured on a first-in first-out basis.

Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date
are classified as current assets, all other inventories are classified as non-current.

Current

Ore stockpiles

Gold in circuit

Bullion on hand

Consumable stores

Non-current

Ore stockpiles

Consolidated

2015
$’000

2014
$’000

11,780

10,168

6,022

2,848

30,818

21,377

20,874

13,721

5,697

2,753

43,045

During the year ended 30 June 2015, a portion of ore stockpiles were reclassified as non-current as a result of the annual
update of life of mine plans. This reflects the expected timing for the conversion to bullion and subsequent sale.

At 30 June 2015, all inventory is carried at cost, except for the non-current ore stockpile which is held at net
realisable value (2014: $11,337,000 of current ore stockpiles and $4,243,000 of gold in circuit were carried at net
realisable value). During the year, $1,810,000 (2014: $13,616,000) was recognised as an expense in costs of goods sold
for inventories carried at net realisable value.

Key estimates and assumptions

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.

REGIS RESOURCES ANNUAL REPORT // 201511. PROPERTY, PLANT AND EQUIPMENT

Accounting Policy

The value of property, plant and equipment is measured as the cost of the asset, less accumulated depreciation
and impairment. The cost of the asset also includes the cost of replacing parts that are eligible for capitalisation,
the cost of major inspections and an initial estimate of the cost of dismantling and removing the item from site at
the end of its useful life (rehabilitation provisions). Changes in the rehabilitation provisions resulting from changes
in the size or timing of the cost or from changes in the discount rate are also recognised as part of the asset cost.

DERECOGNITION
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use
is expected to bring no further economic benefits. Any gain or loss from derecognising the asset (the difference
between the proceeds on disposal and the carrying amount of the asset) is included in the income statement in
the period the item is derecognised.

Consolidated

Net carrying amount at 1 July 2014

Additions

Depreciation expense

Transfers from mine properties under
development

Transfers between classes

Rehabilitation provision adjustments

Disposals

FREEHOLD
LAND

LEASEHOLD
IMPROVEMENTS

PLANT &
EQUIPMENT

FURNITURE &
EQUIPMENT

BUILDINGS &
INFRASTRUCTURE

CAPITAL WIP

TOTAL

$’000

16,488

$’000

481

$’000

136,702

8,034

$’000

726

$’000

54,026

$’000

3,597

212,020

3,191

8,052

19,346

(72)

(26,142)

(188)

(10,537)

14,277

743

(65)

(8)

734

529

(406)

(1,278)

(36,939)

15,011

(471)

(8)

Net carrying amount at 30 June 2015

16,488

409

133,541

613

47,537

10,371

208,959

At 30 June 2015

Cost

Accumulated depreciation

Net carrying amount

Net carrying amount at 1 July 2013

Additions

Depreciation expense

Transfers from mine properties
under development

Transfers between classes

Rehabilitation provision adjustments

16,488

5,028

10,294

1,166

721

213,694

(312)

(80,153)

409

133,541

518

(71)

111,197

7,151

(21,366)

41,924

358

(2,562)

Net carrying amount at 30 June 2014

16,488

481

136,702

At 1 July 2013

Cost

Accumulated depreciation

Net carrying amount

At 30 June 2014

Cost

5,028

687

146,443

(169)

(35,246)

518

111,197

16,488

721

191,393

Accumulated depreciation

(240)

(54,691)

Net carrying amount

16,488

481

136,702

1,432

(819)

613

357

246

(162)

285

726

826

(469)

357

1,357

(631)

726

76,187

10,371

318,893

(28,650)

(109,934)

47,537

10,371

208,959

44,389

2,998

(9,050)

10,832

2,716

2,141

4,697

166,186

3,455

24,148

(4,555)

(30,649)

52,756

(421)

54,026

3,597

212,020

59,207

(14,818)

4,697

216,888

(50,702)

44,389

4,697

166,186

74,309

(20,283)

3,597

287,865

(75,845)

54,026

3,597

212,020

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Operating assets and liabilities

30 June 2015 // CONTINUED

12. EXPLORATION AND EVALUATION ASSETS

Accounting Policy

Exploration and evaluation expenditure is accumulated on an area of interest basis. 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.
Expenditure is carried forward when incurred in areas for which the Group has rights of tenure and where economic
mineralisation is indicated, but activities have not yet 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. Costs incurred before the Group has obtained the legal rights to
explore an area are recognised in the statement of comprehensive income.

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.

Reconciliation of movements during the year

Balance at 1 July

Expenditure for the period

Acquisition of tenements

Impairment

Transferred to mine properties

Balance at 30 June

Consolidated

NOTE

2015
$’000

105,788

11,394

1,644

(47)

118,779

2014
$’000

204,644

11,083

(84,013)

(25,976)

105,788

ACQUISITION OF TENEMENTS
During the year, the Group purchased the Gloster Gold deposit from a private individual for $1.5 million (paid in
cash) and a gross royalty of $10 per ounce to be paid on any gold production from these licences (indexed to the
gold price where the gold price exceeds $1,500 per ounce).

IMPAIRMENT
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 (“CGUs”) to which the exploration activity relates. The CGU is not larger than the area of
interest.

Carrying value by area of interest

Moolart Well CGU

Garden Well CGU

Duketon Gold Project satellite deposits

Regional WA exploration

McPhillamys

9,719

1,931

11,912

4,367

90,850

118,779

8,062

6,148

1,507

90,022

105,788

REGIS RESOURCES ANNUAL REPORT // 2015Key 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.

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 Western Australian and New
South Wales state governments, 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

Consolidated

2015
$’000

2,255

2014
$’000

2,917

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.

13. MINE PROPERTIES UNDER DEVELOPMENT

Accounting Policy

Mine properties under development represents the costs incurred in preparing mines for production and includes
plant and equipment under construction and operating 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 are transferred to property, plant and equipment and mine
properties, as relevant, and are depreciated and 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.

Balance at beginning of period

Pre-production expenditure capitalised

Construction expenditure

Transferred to property, plant and equipment

Transferred to mine properties

Balance at end of period

Consolidated

2015
$’000

14,235

776

(15,011)

2014
$’000

62,301

21,488

32,134

(52,756)

(48,932)

14,235

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Operating assets and liabilities

30 June 2015 // CONTINUED

14. MINE PROPERTIES

Accounting Policies

OTHER MINE PROPERTIES
Other 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. Other mine properties are stated at
cost, less accumulated amortisation and accumulated impairment losses.

Other 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.

PRE-STRIP COSTS
In open pit mining operations, it is necessary to remove overburden and waste materials to access the ore. This
process is referred to as stripping and the Group capitalises stripping costs incurred during the development of a mine
(or pit) as part of the investment in constructing the mine (“pre-strip”). These costs are subsequently amortised over
the life of mine on a units of production basis, where the unit of account is tonnes of ore milled.

PRODUCTION STRIPPING COSTS
Once access to the ore is attained, all waste that is removed from that point forward is considered production
stripping activity. The amount of production stripping costs deferred is based on the extent to which the current
period cost per tonne of ore mined exceeds the expected cost per tonne for the life of the identified component. A
component is defined as a specific volume of the ore body that is made more accessible by the stripping activity, and
is identified based on the mine plan.

The production stripping asset is initially measured at cost, which is the accumulation of costs directly incurred to
perform the stripping activity that improves access to the identified component of the ore body. The production
stripping asset is then carried at cost less accumulated amortisation and any impairment losses.

The production stripping asset is amortised over the expected useful life of the identified component (determined
based on economically recoverable reserves), on a unit of production basis. The unit of account is tonnes of ore mined.

Net carrying amount at 1 July 2014

Additions

Rehabilitation provision adjustment

Amortisation expense

Net carrying amount at 30 June 2015

At 30 June 2015

Cost

Accumulated amortisation

Net carrying amount

Net carrying amount at 1 July 2013

Additions

Amortisation expense

Transfers from mine properties under development

Transfers from exploration and evaluation expenditure

Impairment expense

Net carrying amount at 30 June 2014

Consolidated

PRODUCTION
STRIPPING COSTS
$’000

PRE-STRIP
COSTS
$’000

OTHER MINE
PROPERTIES
$’000

8,103

16,231

(3,870)

20,464

31,322

(10,858)

20,464

8,122

12,578

(2,768)

4,221

11,434

27,317

(7,088)

31,663

45,541

(13,878)

31,663

54,440

36,152

(14,758)

35,748

(14,050)

(100,148)

8,103

11,434

19,131

529

(193)

(5,720)

13,747

50,051

(36,304)

13,747

66,861

20,109

(11,417)

8,963

25,976

(91,361)

19,131

TOTAL
$’000

38,668

44,077

(193)

(16,678)

65,874

126,914

(61,040)

65,874

129,423

68,839

(28,943)

48,932

25,976

(205,559)

38,668

REGIS RESOURCES ANNUAL REPORT // 2015Consolidated

PRODUCTION
STRIPPING COSTS
$’000

PRE-STRIP
COSTS
$’000

OTHER MINE
PROPERTIES
$’000

15,091

(6,988)

8,103

12,573

(4,451)

8,122

18,224

(6,790)

11,434

62,870

(8,430)

54,440

49,715

(30,584)

19,131

96,147

(29,286)

66,861

TOTAL
$’000

83,030

(44,362)

38,668

171,590

(42,167)

129,423

At 30 June 2014

Cost

Accumulated amortisation

Net carrying amount

At 1 July 2013

Cost

Accumulated amortisation

Net carrying amount

Key estimates and assumptions

Production stripping costs

The Group capitalises mining costs incurred during the production stage of its operations in accordance with the accounting
policy described above. The identification of specific components will vary between mines as a result of both the geological
characteristics and location of the ore body. The financial considerations of the mining operations may also impact the
identification and designation of a component.

The expected cost per tonne is a function of an individual mine’s design and therefore changes to that design will generally
result in changes to the expected cost. Changes in other technical or economic parameters that impact reserves will also have
an impact on the expected costs per tonne for each identified component. Changes in the expected cost per tonne are
accounted for prospectively from the date of change.

15. IMPAIRMENT

Accounting policy

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 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.

Total impairment losses recognised in the statement of comprehensive income for the year were as follows:

Exploration and evaluation assets

Mine properties

Consolidated

2015
$’000

2014
$’000

84,013

205,559

289,572

NOTE

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Operating assets and liabilities

30 June 2015 // CONTINUED

EXPLORATION AND EVALUATION ASSETS
An impairment loss of $47,000 (2014: $608,000) has been recognised in relation to tenements that were surrendered,
relinquished or expired during the year. There were no other indicators of impairment identified.

Key judgements

Determination of mineral resources and ore reserves

The determination of mineral resources and ore reserves impacts the accounting for asset carrying values. The Group 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.

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.

16. TRADE AND OTHER PAYABLES

Accounting Policies

TRADE PAYABLES
Trade and other payables are recognised at the value of the invoice received from a supplier. 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.

EMPLOYEE ENTITLEMENTS
A liability is recognised for the amount expected to be paid to an employee for annual leave they are presently
entitled to as a result of past service. The liability includes allowances for on-costs such as superannuation and
payroll taxes, as well as any future salary and wage increases that the employee may be reasonably entitled to.

Current

Trade payables

Accrued expenses

Employee entitlements – annual leave payable

Other payables

17. PROVISIONS

Accounting Policies

Consolidated

2015
$’000

2014
$’000

11,813

15,710

2,429

6,152

36,104

31,998

20,707

2,282

4,838

59,825

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 the risks specific to the liability. The unwinding of the
discount is recognised as a finance cost. Refer to note 18.

SITE REHABILITATION
In accordance with the Group’s published environmental policy and applicable legal requirements, a provision for
site rehabilitation is recognised in respect of the estimated cost of rehabilitation and restoration of the areas
disturbed by mining activities up to the reporting date, but not yet rehabilitated.

REGIS RESOURCES ANNUAL REPORT // 2015When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the
related mining assets. At each reporting date the site rehabilitation provision is re-measured to reflect any
changes in discount rates and timing or amounts to be incurred. Additional disturbances or changes in
rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation
provision, prospectively from the date of change. For closed sites, or where the carrying value of the related asset
has been reduced to nil either through depreciation and amortisation or impairment, changes to estimated costs
are recognised immediately in the statement of comprehensive income.

LONG SERVICE LEAVE
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that
employees have earned in return for their service up to reporting date, plus related on costs. The benefit is
discounted to determine its present value and the discount rate is the yield at the reporting date on high-quality
corporate bonds that have maturity dates approximating the terms of the Group’s obligations

Current

Dividends payable

Rehabilitation

Non-current

Long service leave

Rehabilitation

Provision for rehabilitation

Balance at 1 July

Provisions made during the year

Provisions used during the year

Provisions re-measured during the year

Unwinding of discount

Balance at 30 June

Consolidated

2015
$’000

2014
$’000

340

3,282

3,622

789

38,832

39,621

44,853

(1,250)

(3,032)

1,543

42,114

477

2,811

3,288

457

42,042

42,499

23,735

20,406

(194)

906

44,853

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 re-vegetation of
affected areas. Typically the obligation arises when the asset is installed at the production location.

Key estimates and assumptions

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.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Capital structure and finance costs

30 June 2015

Capital structure and finance costs

This section outlines how the Group manages its capital and related financing costs.

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it
can continue to provide returns to shareholders and benefits for other stakeholders and to maintain an efficient
capital structure to reduce the cost of capital.

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, plus retained earnings, reserves and net debt.
In order to maintain or adjust the capital structure, the Board may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or reduce debt.

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.

18. NET DEBT AND FINANCE COSTS

Accounting Policies

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.

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.

FINANCE LEASES – GROUP AS A LESSEE
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership for the
lease item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the
present value of the minimum lease payments. Lease payments are apportioned between the finance charges and
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are recognised as an expense in profit or loss.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease
term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

The carrying amounts of the Group’s current and non-current borrowings approximate their fair value.

Current interest-bearing liabilities

Secured bank loan

Finance lease liability

Non-current interest bearing liabilities

Secured bank loan

Finance lease liability

Consolidated

NOTE

2015
$’000

2014
$’000

705

787

20,000

1,420

21,420

5,714

34,286

Less: cash and cash equivalents

(51,781)

(6,615)

Net (cash)/debt

(29,574)

33,385

REGIS RESOURCES ANNUAL REPORT // 2015Interest-bearing liabilities

SECURED BANK LOAN
At balance date, the Group has $20 million (2014: $40 million) outstanding on the secured bank loan provided by
Macquarie Bank Limited (“MBL”) which is due for repayment on 30 June 2017.

The loan attracts a variable interest rate which ranged between 4.655% and 5.255% in the current year (2014: 5.120%
to 6.781%).

The debt facility also incorporated a performance bond facility whereby MBL provided performance bonds in
relation to statutory environmental obligations on certain tenements and guarantees in relation to office lease
commitments. The performance bond facility was closed during the year as the Mine Rehabilitation Fund levy
scheme introduced by the Department of Mines and Petroleum removed the requirement for companies to hold
performance bonds for rehabilitation obligations. At the prior year end, the performance bond facility limit was $30
million and the amount used was $26,886,000.

FINANCE LEASE COMMITMENTS
During the current year, the Group entered into a hire purchase agreement for the acquisition of a Komatsu WA900
loader. The agreement incorporates a fixed interest rate of 3.35%, monthly repayments and an expiry date of 29 May
2018. Ownership of the loader passes to the Group once all contractual payments have been made. Refer to note 25.

Finance costs

Interest expense

Other borrowing costs

Unwinding of discount on provisions

Consolidated

2015
$’000

2014
$’000

1,677

145

1,543

3,365

1,351

439

906

2,696

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.

UNWINDING OF DISCOUNT ON PROVISIONS
The unwinding of discount on provisions represents the cost associated with the passage of time. Rehabilitation
provisions are recognised at the discounted value of the present obligation to restore, dismantle and rehabilitate
each mine site with the increase in the provision due to the passage of time being recognised as a finance cost in
accordance with the policy described in note 17.

19. 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.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Capital structure and finance costs

30 June 2015 // CONTINUED

The Group’s exposure to movements in the gold price, which it manages through the use of gold forward contracts,
is discussed at note 2. 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.

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 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

Credit risk is the risk of financial loss to the Group if the counterparty to a financial asset fails to meet its
contractual obligation. 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 to monitor 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 following are the contractual maturities of financial liabilities, including estimated interest payments:

30 June 2015

$’000

CARRYING
AMOUNT

CONTRACTUAL
CASH-FLOWS

6 MTHS
OR LESS

6-12 MTHS

1-2 YEARS

2-5 YEARS

MORE THAN
5 YEARS

Trade and other payables

Secured bank loan

Finance lease

Total

30 June 2014

Trade and other payables

Secured bank loan

33,675

20,082

2,125

(33,675)

(21,865)

(2,234)

(33,675)

(467)

(383)

55,882

(57,774)

(34,525)

(467)

(383)

(850)

(20,931)

(766)

(21,697)

(702)

57,543

40,000

(57,543)

(45,558)

(530)

(7,286)

(13,235)

(24,507)

Total

97,543

(103,101)

(58,073)

(7,286)

(13,235)

(24,507)

REGIS RESOURCES ANNUAL REPORT // 2015ASSETS PLEDGED AS SECURITY

The secured bank loan provided by MBL 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. The finance lease liability is secured by the
related asset. Ownership of the asset remains with Komatsu until all contractual payments have been made.

The finance lease liability is secured by the related asset. Ownership of the asset remains with Komatsu until all
contractual payments have been made.

FINANCIAL GUARANTEE LIABILITIES
As at 30 June 2015, the Group did not have any financial guarantee liabilities (2014: Nil).

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.

Interest rate risk: The Group is exposed to interest rate risk through its secured project loan facility with

Macquarie Bank Limited (“MBL”) and cash deposits, which attract variable interest rates. The Group regularly
analyses its interest rate exposure and considers the cost of equity financing as an alternative to debt.

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. There is no significant exposure to foreign currency risk at
reporting date.

Equity price risk: The Group does not have any exposure to movements in equity prices.

INTEREST RATE RISK
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:

Fixed rate instruments

Term deposit held to maturity

Finance lease liability

Variable rate instruments

Cash and cash equivalents

Secured bank loan

Consolidated

2015
$’000

152

(2,125)

(1,973)

51,433

(20,000)

31,433

2014
$’000

6,757

(40,000)

(33,243)

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.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Capital structure and finance costs

30 June 2015 // CONTINUED

Cash flow sensitivity analysis for variable rate instruments

As at 30 June 2015 a sensitivity analysis has not been disclosed in relation to the variable interest rate cash on
deposit and secured bank loan as the results have been determined to be immaterial to the statement of
comprehensive income. For the year ended 30 June 2014, a decrease of 50 basis points in variable interest rates
would have resulted in a decrease in the net loss of $46,000.

20. ISSUED CAPITAL AND RESERVES

Accounting Policy

Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of shares or options are
recognised as a deduction from equity, net of any related income tax effects.

Ordinary shares – issued and fully paid

Consolidated

2015
$’000

431,338

2014
$’000

431,304

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.

Movement in ordinary shares on issue

At 1 July 2013

Issued on exercise of options

Transaction costs

At 30 June 2014

Issued on exercise of options

Transaction costs

At 30 June 2015

NO. SHARES
‘000s

494,085

5,659

499,744

$’000

428,358

3,019

(73)

431,304

(3)

499,781

431,338

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.

REGIS RESOURCES ANNUAL REPORT // 2015
Notes to the financial statements
Other disclosures

30 June 2015

Other disclosures

This section provides information on items which require disclosure to comply with Australian Accounting
Standards and other regulatory pronouncements.

21. DEFERRED INCOME TAX

Accounting Policy

Deferred tax balances are determined using the balance sheet method, which provides for temporary differences at
the balance sheet date between accounting carrying amounts and the tax bases of assets and liabilities.

Deferred income tax liabilities are recognised for all taxable temporary differences, other than for the exemptions
permitted under accounting standards. At 30 June 2015 there are no unrecognised temporary differences associated
with the Group’s investment in subsidiaries (2014: $nil).

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that future taxable profits will be available to utilise
these deductible temporary differences. 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.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by
the reporting date. Deferred tax assets and liabilities are only offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.

Deferred income tax at 30 June relates to the following:

Deferred tax liabilities

Receivables

Exploration and evaluation expenditure

Mine properties under development

Mine properties

Gross deferred tax liabilities

Set off of deferred tax assets

Net deferred tax liabilities

Deferred tax assets

Inventories

Property, 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

Net deferred tax assets

Reconciliation of deferred tax, net:

Opening balance at 1 July – net deferred tax assets/(liabilities)

Income tax (expense)/ benefit recognised in profit or loss

Closing balance at 30 June – net deferred tax (liabilities)/ assets

Consolidated

2015
$’000

1,362

13,353

19,603

34,338

(33,198)

1,140

946

9,847

931

12,871

8,545

33,198

(33,198)

6,363

(7,503)

(1,140)

2014
$’000

735

9,921

11,600

22,256

(22,256)

5,008

9,112

894

13,593

28,619

(22,256)

6,363

(60,821)

67,184

6,363

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Other disclosures

30 June 2015 // CONTINUED

Key judgements

Recovery of deferred tax assets

Judgement is required in determining whether deferred tax assets are recognised on the balance sheet. 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.

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.

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. Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the
subsidiaries are assumed by the head entity and are recognised by the Company as intercompany receivables (or
payables). 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.

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.

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 provides 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.

22. SHARE-BASED PAYMENTS

Accounting Policy

The 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 option (the vesting date).

At each subsequent reporting date until vesting, the cumulative charge to the statement of comprehensive income
is the product of:

The grant date fair value of the option;

The current best estimate of the number of options 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 option has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest
than were originally anticipated to do so.

Recognised share-based payments expense

Employee share options expense

Total expense arising from share-based payment transactions

Consolidated

2015
$’000

1,959

2014
$’000

2,519

REGIS RESOURCES ANNUAL REPORT // 2015The 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.

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 eligible employees with 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 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.

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

Expired during the year

Outstanding at the end of the year

Exercisable at the end of the year

2015

NO.

5,337,500

1,650,000

(1,495,000)

(37,500)

(300,000)

5,155,000

1,430,000

WAEP

$3.1666

$1.5500

$2.9040

$1.0000

$2.2300

$2.7956

$3.4974

2014

NO.

5,131,146

2,730,000

(560,000)

(1,963,646)

5,337,500

1,815,000

WAEP

$2.4046

$3.1575

$3.5313

$1.0588

$3.1666

$3.0123

Weighted average share price at the date of exercise

Weighted average remaining contractual life

Range of exercise prices

2015

$1.65

2014

$3.89

1.8 years

2.3 years

$1.55 - $4.00

$1.00 - $4.00

Weighted average fair value of options granted during the year

$0.8600

$1.5081

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 2015 and 30 June
2014:

Dividend yield (%)

Expected volatility (%)

Risk free interest rate (%)

Expected life of the option (years)

Option exercise price ($)

Weighted average share price at grant date ($)

2015 ESOP

2014 ESOP

0 - 3.72

76.32 – 88.51

66.04 – 82.29

2.54 – 2.72

2 – 3 years

1.55

1.51 – 1.83

2.61 – 3.02

2 – 3 years

2.40 – 3.50

2.28 – 4.03

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.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Other disclosures

30 June 2015 // CONTINUED

Key estimates and assumptions

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. 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.

23. RELATED PARTIES

Key management personnel compensation

The key management personnel compensation included in employee benefits expense (note 3) and share-based
payments (note 22), is as follows:

Short-term employee benefits

Post-employment benefits

Termination benefits

Share-based payment

Total compensation

Consolidated

2015
$’000

2,317,060

217,692

611,602

3,146,354

2014
$’000

2,708,890

248,330

233,910

386,478

3,577,608

Individual directors and executives compensation disclosures

Information regarding individual directors’ and executives’ compensation and equity instrument disclosures
required by s300A of the Corporations Act and Corporations Regulations 2M.3.03 are provided in the Remuneration
Report section of the Directors’ Report.

No director has entered into a material contract with the Group either in the current or prior financial year and
there were no material contracts involving directors’ interests existing at year end.

Subsidiaries

The consolidated financial statements include the financial statements of Regis Resources Limited and the
subsidiaries listed in the following table:

% EQUITY INTEREST

INVESTMENT $’000

NAME

Duketon Resources Pty Ltd

Artane Minerals NL

Rosemont Gold Mines Pty Ltd

LFB Resources NL

COUNTRY OF
INCORPORATION

Australia

2015

100%

2014

100%

2015

30,575

44,110

74,685

2014

30,575

44,110

74,685

Ultimate parent

Regis Resources Limited is the ultimate Australian parent entity and the ultimate parent entity of the Group.

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 2015, the balance of the loan receivable was $14,978,000 (2014: $8,366,000).

REGIS RESOURCES ANNUAL REPORT // 2015A 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 2015, the balance of the loan receivable was $24,728,000 (2014:
$23,875,000).

24. PARENT ENTITY INFORMATION

The following details information related to the parent entity, Regis Resources Limited, at 30 June 2015. The
information presented here has been prepared using consistent accounting policies as detailed in the relevant
notes of this report.

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Issued capital

Share option reserve

Retained profits/(accumulated losses)

Total equity

Net profit/(loss) for the year

Other comprehensive income for the period

Total comprehensive income for the period

2015
$’000

100,932

445,120

546,052

43,972

60,035

104,007

431,338

18,510

(7,803)

442,045

87,620

2014
$’000

89,399

406,455

495,854

68,764

74,657

143,421

431,304

16,551

(95,422)

352,433

(125,488)

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 2015 as disclosed at note 26.

All commitments are commitments incurred by the parent entity, except for $1,570,000 (2014: $1,958,000) of the
exploration expenditure commitments disclosed at note 12, and $14,000 (2014: $35,000) of the operating lease
commitments disclosed at note 25.

25. COMMITMENTS

Operating lease commitments – Group as lessee

The Group leases office premises in Perth, WA and Blayney, NSW under normal commercial lease arrangements. The
Perth office lease was entered into for an initial period of 5 years beginning 1 May 2010 and was renewed for a
further 5 year period during the current year. The Group is under no legal obligation to renew the lease once the
extended 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

Consolidated

2015
$’000

336

1,320

1,656

2014
$’000

289

303

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Other disclosures

30 June 2015 // CONTINUED

Finance lease commitments - Group as lessee
The Group has entered into a hire purchase contract for the purchase of a Komatsu WA900 loader. The contract expires on
29 May 2018 and ownership of the loader passes to the Group once all contractual payments have been made.

Within one year

Between one and five years

Total minimum lease payments

Less amounts representing finance charges

Present value of minimum lease payments

Included in the financial statements as:

Current interest-bearing liabilities

Non-current interest-bearing liabilities

Consolidated

2015
$’000

2014
$’000

766

1,468

2,234

(109)

2,125

705

1,420

2,125

Contractual commitments
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. 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 2015, at the current contract price, the Group had commitments to purchase electricity for the remaining term of
$1,625,000 (30 June 2014: $3,178,000).

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. The
agreement was amended, effective 1 October 2013, to incorporate Rosemont Gold Mine’s power requirements. As at 30
June 2015, at the current contract price, the Group had commitments to purchase electricity for the remaining term of
$9,907,000 (30 June 2014: $14,837,000).

26. CONTINGENCIES

As at 30 June 2015, the Group did not have any contingent assets or liabilities (30 June 2014: nil).

27. AUDITOR’S REMUNERATION

Consolidated

2015
$

2014
$

Audit services

KPMG Australia

Audit and review of financial statements

195,297

194,988

Other services

Other assurance services

Taxation compliance services

Total auditor’s remuneration

195,297

194,988

REGIS RESOURCES ANNUAL REPORT // 201528. SUBSEQUENT EVENTS

Duketon Gold Exploration Joint Venture

On 14 July 2015, the Group announced an agreement to enter into an exploration joint venture with Duketon Mining
Limited (“DKM”) on four of DKM’s exploration licences which are contiguous with some of Regis’ Duketon tenure in
proximity to the Moolart Well project. The proposed joint venture will require Regis to make an up-front payment to
DKM of $100,000 and Regis will spend a minimum of $1 million on exploring for gold on the tenure over a two year
period to earn a 75% interest in any mining project that is confirmed by a Regis decision to mine. All non-gold
mineral rights remain with DKM.

Option issue

On 11 August 2015, 8,500,000 unlisted employee options were issued under the Regis Resources Employee Share
Option Plan. The options are exercisable on or before 11 August 2019 at an exercise price of $1.40.

Dividends

On 15 September 2015, the directors proposed a final dividend on ordinary shares in respect of the 2015 financial year.
Refer to note 6.

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.

29. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

Changes in accounting policy

The Group has adopted the following new and revised accounting standards, amendments and interpretations as of 1
July 2014:

Interpretation 21 Levies

AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non-Financial Assets

AASB 1031 Materiality

AASB 2013-9 Part B Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and

Financial Instruments

AASB 2014-1 Part A Annual Improvements to IFRSs 2010-2012 Cycle and Annual Improvements to IFRSs 2011-2013 Cycle

The adoption of these new and revised standards did not have a material impact on the Group’s financial statements.

New standards and interpretations issued but not yet effective

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 2015, but have
not been applied in preparing this financial report.

AASB 9
FINANCIAL INSTRUMENTS
AASB 9 (December 2014) is a new standard which replaces AASB 139. This new version supersedes AASB 9 issued in
December 2009 (as amended) and AASB 9 issued in December 2010 and includes a model for classification and
measurement, a single, forward looking ‘expected loss’ impairment model and a substantially reformed approach to
hedge accounting.

AASB 9 will be effective for the Group from 1 July 2018 and is not expected to have a material impact on the
classification and measurement of the Group’s financial instruments.

AASB 2014-4
CLARIFICATION OF ACCEPTABLE METHODS OF DEPRECIATION AND AMORTISATION
(AMENDMENTS TO AASB 116 AND AASB 138)
AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets both establish the principle for the basis of
depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an
asset.

The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not
appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors
other than the consumption of the economic benefits embodied in the asset.

The amendment also clarified that revenue is generally presumed to be an inappropriate basis for measuring the
consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted
in certain limited circumstances.

REGIS RESOURCES ANNUAL REPORT // 2015Notes to the financial statements
Other disclosures

30 June 2015 // CONTINUED

AASB 15
REVENUE FROM CONTRACTS WITH CUSTOMERS
In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers which replaces IAS 11 Construction
Contracts, IAS 18 Revenue and related Interpretations (IFRIC 13 Customer Loyalty Programmes, IFRIC 15
Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue
– Barter Transactions Involving Advertising Services). The AASB issued the Australian equivalent of IFRS 15,
being AASB 15, in December 2014. AASB 2014-5 incorporates the consequential amendments to a number of
Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised good or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those good or services. An entity recognises revenue in accordance with that core principle by
applying the following steps:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Currently, these standards are effective for annual reporting periods commencing on or after 1 January 2018.
Early application is permitted.

The Group has evaluated the impact of the new standard and determined that the changes are not likely to
have a material impact on the timing or amount of revenue recognised from gold sales, nor is it expected that
significant changes to disclosures will be required.

AASB 2015-1
ANNUAL IMPROVEMENTS TO AUSTRALIAN ACCOUNTING STANDARDS 2012-2014 CYCLE
The subjects of the principal amendments to the Standards are set out below:

AASB 119
Employee Benefits

The amendment clarifies that the high quality corporate bonds used to estimate the discount rate for post-
employment benefit obligations should be denominated in the same currency as the liability. Further it clarifies
that the depth of the market for high quality corporate bonds should be assessed at the currency level.

AASB 134
Interim Financial Reporting

The changes to AASB 134 clarify the meaning of ‘disclosure of information elsewhere in the interim financial
report’ and require the inclusion of a cross-reference from the interim financial statements to the location of
this information.

AASB 2015-2
AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – DISCLOSURE INITIATIVE: AMENDMENTS TO
AASB 101
The Standard makes amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s
Disclosure Initiative project. The amendments are designed to further encourage companies to apply
professional judgment in determining what information to disclose in the financial statements. For example,
the amendments make clear that materiality applies to the whole of financial statements and that the
inclusion of immaterial information can inhibit the usefulness of financial disclosures. The amendments also
clarify that companies should use professional judgment in determining where and in what order information
is presented in the financial disclosures.

AASB 2015-3 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM THE
WITHDRAWAL OF AASB 1031 MATERIALITY
The Standard completes the AASB’s project to remove Australian guidance on materiality from Australian
Accounting Standards.

REGIS RESOURCES ANNUAL REPORT // 2015Directors’ Declaration

In accordance with a resolution of the directors of Regis Resources Limited, I state that:

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 2015

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.

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 2015.

The directors draw attention to the notes to the consolidated financial statements, which include a
statement of compliance with International Financial Reporting Standards.

On behalf of the board

Mr Mark Clark
Managing Director

Perth, 15 September 2015

REGIS RESOURCES ANNUAL REPORT // 2015

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 balance sheet as at 30 June 2015, 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, the notes 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 the notes, 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.

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.

Professional Standards Legislation.

Liability limited by a scheme approved under

REGIS RESOURCES ANNUAL REPORT // 2015

37 to 44

REGIS RESOURCES ANNUAL REPORT // 2015Tenement Information

GRANTED TENEMENTS

Tenement
Collurabbie Area

E38/1939

E38/2681

E38/2682

E38/2683

E38/2779

E38/2830

E38/2870

E38/2871

Duketon Area

E38/961

E38/1689

E38/1954

E38/1955

E38/1956

E38/1957

E38/1988

E38/1989

E38/1990

E38/1991

E38/1992

E38/1994

E38/1995

E38/1997

E38/1999

E38/2001

E38/2003

E38/2004

E38/2005

E38/2243

E38/2723

E38/2808

E38/2809

E38/2810

E38/2832

E38/2833

E38/2857

E38/2868

E38/2955

L38/20

L38/29

% interest

Tenement

% interest

Tenement

% interest

L38/49

L38/73

L38/85

L38/126

L38/127

L38/128

L38/129

L38/131

L38/133

L38/135

L38/136

L38/137

L38/140

L38/141

L38/143

L38/155

L38/156

L38/170

L38/182

L38/184

L38/191

L38/192

L38/193

L38/194

L38/201

L38/202

L38/203

80%

100%

90%

100%

97%

70%

100%

Earning 70%

L38/204

80%

100%

51%

100%

L38/216

L38/217

L38/221

L38/222

L38/226

L38/232

L38/234

L38/238

L38/239

M38/114

M38/237

M38/250

M38/262

100%

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

M38/1251

M38/1257

M38/1258

100%

Earning 70%

100%

97%

70%

100%

97%

100%

80%

100%

REGIS RESOURCES ANNUAL REPORT // 2015GRANTED TENEMENTS

Tenement

% interest

Tenement

% interest

Tenement

% interest

M38/1259

M38/1260

M38/1261

M38/1262

M38/1263

M38/1264

M38/1265

P38/3377

P38/3378

P38/3407

P38/3408

P38/3409

P38/3410

P38/3411

P38/3412

P38/3413

P38/3414

P38/3415

P38/3416

P38/3417

P38/3418

P38/3419

P38/3420

P38/3421

P38/3422

P38/3423

P38/3424

P38/3425

P38/3426

P38/3427

P38/3428

P38/3429

P38/3430

P38/3439

P38/3440

P38/3441

P38/3442

P38/3443

P38/3444

P38/3445

P38/3446

100%

70%

100%

P38/3447

P38/3448

P38/3449

P38/3450

P38/3451

P38/3452

P38/3453

P38/3454

P38/3455

Earning 70%

P38/3456

Earning 70%

P38/3457

Earning 70%

P38/3458

Earning 70%

P38/3459

Earning 70%

P38/3460

Earning 70%

P38/3461

Earning 70%

P38/3462

Earning 70%

P38/3463

Earning 70%

P38/3464

Earning 70%

P38/3465

Earning 70%

P38/3466

Earning 70%

P38/3467

Earning 70%

P38/3468

Earning 70%

P38/3469

Earning 70%

P38/3470

Earning 70%

P38/3471

Earning 70%

P38/3472

Earning 70%

P38/3473

Earning 70%

P38/3474

Earning 70%

P38/3475

51%

100%

P38/3476

P38/3478

P38/3480

P38/3481

P38/3485

P38/3486

P38/3487

P38/3508

P38/3509

P38/3510

P38/3511

P38/3513

100%

P38/3514

P38/3515

P38/3528

P38/3529

P38/3530

P38/3531

P38/3532

P38/3535

P38/3536

P38/3538

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

P38/3604

P38/3605

P38/3606

P38/3607

P38/3629

P38/3630

P38/3631

P38/3632

P38/3633

P38/3634

P38/3635

100%

70%

100%

97%

100%

97%

REGIS RESOURCES ANNUAL REPORT // 2015Tenement Information

GRANTED TENEMENTS

TENEMENTS UNDER APPLICATION

Tenement

% interest

Tenement

% interest

Tenement

% interest

Duketon Area

E38/3080

E38/3081

E38/3082

M38/1268

100%

P38/3636

P38/3639

P38/3640

P38/3769

P38/3770

P38/3771

P38/3772

P38/3773

P38/3774

P38/3814

P38/3815

P38/3816

P38/3877

P38/3878

P38/3879

P38/3906

P38/3928

P38/3941

P38/3942

P38/3943

P38/3949

P38/3950

P38/3953

P38/3996

P38/3997

P38/3998

P38/4027

P38/4038

P38/4039

P38/4040

P38/4052

P38/4053

P38/4054

P38/4059

P38/4060

P38/4061

P38/4062

P38/4063

P38/4073

P38/4074

P38/4075

97%

P38/4076

P38/4104

P38/4124

P38/4147

McPhillamys

EL5760

EL6111

EL7878

EL8120

100%

REGIS RESOURCES ANNUAL REPORT // 2015ASX Additional Information

As at 31 August 2015 the following information applied:

1. SECURITIES

(a) Fully Paid Ordinary Shares

The number of holders of fully paid ordinary shares in the Company is 6,470. 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: