2021
Annual Report
A Leading
Australian
Gold Miner
Mining Safely
and Responsibly
Corporate Information
ABN
28 009 174 761
Directors
James Mactier
Independent Non-Executive Chairman
Jim Beyer
Chief Executive Officer and Managing Director
Fiona Morgan
Independent Non-Executive Director
Steve Scudamore
Independent Non-Executive Director
Lynda Burnett
Independent Non-Executive Director
Russell Barwick
Independent Non-Executive Director
Company Secretary
Elena Macrides (appointed 12 January 2021)
Jon Latto (ceased 12 January 2021)
Registered Office & Principal Place of Business
Level 2
516 Hay Street
SUBIACO WA 6008
Share Register
Computershare Investor Services Pty Limited
GPO Box D182
PERTH WA 6840
Regis Resources Limited shares are listed on
the Australian Securities Exchange (ASX).
Code: RRL.
Auditors
KPMG
235 St Georges Terrace
PERTH WA 6000
About Regis Resources
Regis Resources Limited (ASX: RRL) is a publicly listed
Perth based gold production and exploration company. The
Company is a purely Australian gold miner with operations
at the Duketon Gold Project and Tropicana Gold Project
(30% non-operator interest) in the Goldfields of Western
Australia and the McPhillamys Gold Project in the Central
Western region of New South Wales.
Contents
Chairman's Report
Highlights
Review of Operations
Duketon Gold Project
Tropicana Gold Project
Gold Exploration
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Financial Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor’s Report
3
4
8
9
11
12
23
36
52
53
58
93
94
ASX Additional Information
100
Regis Resources Limited | Annual Report 2021 1
We also continue to aggressively explore our substantial
tenure in the Duketon Greenstone Belt where our three
operating mills give us a very wide area of influence.
2 Regis Resources Limited | Annual Report 2021
Chairman's Report
Dear Shareholder,
The 2021 financial year for Regis was both pleasing
and disappointing.
It was pleasing in that there were many achievements and
improvements to our business. Most notably we:
In addition to its stand-alone value, Tropicana adds diversification,
mine-life and scale to our existing portfolio of assets which
together, provide investors with lower risk exposure to the gold
price. Most importantly, we believe Tropicana offers considerable
upside through resource conversion and exploration potential.
•
•
•
•
•
•
significantly improved our safety performance;
continued our long track record of reliable production and
strong financial performance;
acquired a 30% interest in the Tropicana Gold Project;
We also continue to aggressively explore our substantial tenure in
the Duketon Greenstone Belt where our 3 operating mills, which
have now produced over 3 million ounces of gold, give us a very
wide area of influence.
increased our Duketon reserves, resources and mine life;
Although the Tropicana acquisition was partially funded with debt,
acquired 100% of the Ben Hur deposit;
our balance sheet is robust and conservatively geared.
commenced development of our second underground mine
In summary, whilst our share price performance has been
at Duketon; and
• paid $61 million in fully-franked dividends.
disappointing this year, our underlying business is strong.
Combined with a supportive macro-economic backdrop, we
believe the outlook for Regis is very positive.
It was disappointing in that, despite making considerable progress,
we have not yet obtained regulatory approval for the development
On behalf of the Board, I would like to thank our management
of McPhillamys and of course, that our share price declined very
team, led by Managing Director and Chief Executive Officer Jim
significantly.
Beyer and all our staff and contractors, our joint venture partner
AngloGold Ashanti and the communities in which we operate.
Clearly, the general decline in investor sentiment across the gold
It has been an extremely busy and productive year, made more
sector had a significant impact on our share price. However, we
challenging by the ongoing Covid pandemic.
also recognise Regis-specific factors exacerbated this decline,
including the McPhillamys’ delays and our acquisition of Tropicana.
We look forward to another productive and profitable year ahead,
In relation to McPhillamys, we continue to engage with the
relevant regulatory authorities and although we still expect that
Thank you for your ongoing support.
mining safely and responsibly.
the requisite approvals will be forthcoming, progress remains
frustratingly slow and timing uncertain.
As for Tropicana, we believe we paid a fair price for an exceptional
asset, the accretive value of which to Regis shareholders will
become increasingly evident. Tropicana is a large-scale, long-life,
low-cost, well-managed, cashflow-positive mine. It is without
significant legacy, execution, community or permitting risks and
is located in arguably the world’s premier mining jurisdiction. Such
gold mines are few and far between, very hard to find and rarely
for sale.
James Mactier
Non-Executive Chairman
Regis Resources Limited | Annual Report 2021 3
Highlights
Corporate
Net profit after tax of
EBITDA of
$146m
$403m
and net profit margin of 18%
with a strong EBITDA margin of 49%
Cash and Bullion of
Fully franked dividends of
$269m
1
at 30 June 2021
7cents
per share for FY2021
1
Includes bullion on hand valued at $2,337 per ounce
4 Regis Resources Limited | Annual Report 2021
Operations
372,870
2
ounces of gold produced
at AISC of $1,373 PER OUNCE
Strong operating cashflow of
$276m
Significant improvement in SAFETY PERFORMANCE
Lost Time Injury Frequency Rate (LTIFR) REDUCED by
64% to 1.3
Commenced DEVELOPMENT of
Garden Well
Underground Mine
Exploration & Growth
Acquisition of 30% INTEREST in
Tropicana Gold Project
35% increase
in Group MINERAL RESOURCES
Acquisition of BEN HUR GOLD deposit
Mineral Resource of
10.3m tonnes
at 1.2 g/t gold for 390,000 OUNCES
33% increase
in Group ORE RESERVES
2
Includes two months of Tropicana.
Regis Resources Limited | Annual Report 2021 5
Corporate
Regis delivered another year of strong production in FY2021 generating EBITDA of $403 million, net profit after tax of $146 million
and operating cash flows of $276 million. While delivering this result, Regis executed a genuinely transformational transaction through
the acquisition of a 30% interest in the Tropicana Gold Project which delivers on the Company’s strategic objectives to grow as a safe,
responsible, reliable, long-life, low-cost gold producer, generating strong financial returns.
During FY2021, 372,870 ounces of gold was produced at an All-in Sustaining Cost of $1,373 per ounce. Regis sold a total of 367,285
ounces of gold during the year at an average price of A$2,229 per ounce.
The following graphs illustrate the performance of the Company across several metrics.
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Gold Production & Revenue
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174
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2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Gold Prodution
Revenue
NPAT
NPAT Margin
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30%
20%
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(
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2018
2019
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2017
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2020
2021
EBITDA
EBITDA Margin (%)
EPS
Dividend per share
6 Regis Resources Limited | Annual Report 2021
Cash and bullion on hand at the end of year was $269 million, after payment of $138 million in payments for mine development, $42 million
in property, plant and equipment (including payment of lease liabilities), $51 million in dividends, $45 million in exploration expenditure
(including McPhillamys) and $77 million in income tax. Cash and bullion on hand at 31 June 2021 includes $44 million in residual funds
following the capital raising for the acquisition of 30% of the Tropicana Gold Project.
The Company paid a total of $61 million in fully franked dividends during the year and subsequent to the end of the financial year declared
a 3 cents per share fully franked final dividend. The final dividend was declared after consideration of the strong cashflow and profitability
from the Company’s operations in FY2021. The FY2021 final dividend of 3 cents per share coupled with the 4 cents per share interim
dividend paid in March 2021, took the full year dividend payment to 7 cents per share which represents a 30% payout of FY2021 net profit
after tax. Since the commencement of dividend payments in 2013, the Company has paid a total of $532 million in fully franked dividends.
Dividends Declared
Cumulative Dividends Paid
20
15
10
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532
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2017
2018
2019
2020
2021
2013
2014
2015
2016
2017
2018 2019 2020 2021
Interim
Final
The following chart details the movement in the Company’s cash reserves over the financial year:
Cash & Bullion on Hand – 30 June 2021
378
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600
500
400
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Operating cash flow differs from the statutory Statement of Cash Flow “net cash from operating activities” as it is quoted under the Appendix 5B
classification protocol and includes movement in gold bullion on hand.
Regis Resources Limited | Annual Report 2021 7
Review of Operations
8 Regis Resources Limited | Annual Report 2021
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 two operating centres being the Duketon South Operations (“DSO”) comprising the Garden Well and Rosemont
processing facilities and surrounding deposits including the Rosemont underground and open pit, Garden Well, Erlistoun, Tooheys Well
and Baneygo mines; and the Duketon North Operations (“DNO”) comprising the Moolart Well processing facility and surrounding deposits
including the Gloster, Anchor, Dogbolter and Petra mines. The Duketon Gold Project has in excess of 3,000 square kilometres of exploration
and mining tenure.
The Duketon Gold Project produced 355,553 ounces of gold which was within guidance of 355,000-380,000 ounces for FY2021. During
the financial year, the Company commenced development of the Garden Well Underground Mine while the Rosemont Underground Mine
completed its first full year of commercial production. All-in Sustaining Costs increased by 7% to A$1,336 per ounce due to higher open
pit drill and blast costs with harder rock surfaces and deeper in-pit mining in addition to an increase in capital development costs from
the Rosemont Underground operations.
Operations at the Duketon Gold Project.
Operating results for the Duketon Gold Project are summarised below:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
2021
4.00
27.10
6.8
9.89
9.52
1.27
92
356
1,041
1,148
1,336
2020
4.16
26.37
6.3
9.98
9.37
1.25
94
352
914
1,021
1,246
Regis Resources Limited | Annual Report 2021 9
Duketon South Operations
The Duketon South Operations (‘DSO’) includes the Garden Well, Rosemont, Erlistoun, Tooheys Well, Baneygo and other satellite projects
in proximity to the Garden Well and Rosemont processing facilities.
Operating results for the year to 30 June 2021 were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
2021
2.50
15.60
6.2
7.03
6.37
1.44
92
271
1,058
1,165
1,368
2020
2.80
19.56
7.0
7.23
6.37
1.35
94
260
859
963
1,218
Production at DSO increased by 4% from the previous year with 270,987 ounces of gold produced at an All-in Sustaining Cost of $1,368
per ounce. The increase in production was achieved following the first full year contribution from the Rosemont Underground which saw
grades continue to lift as development progressed into the higher-grade Main Zone. Recovery at DSO was impacted by an increase in the
proportion of some metallurgically difficult ore from Tooheys Well.
Duketon North Operations
Duketon North Operations (‘DNO’) comprises the Moolart Well, Gloster, Dogbolter, Petra and Anchor pits with all ore processed through
the Moolart Well processing facility.
Operating results for the year to 30 June 2021 were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
2021
1.50
11.51
7.7
2.86
3.15
0.92
91
85
989
1,092
1,174
2020
1.36
6.81
5.0
2.75
3.00
1.04
92
92
1,071
1,184
1,324
DNO produced 84,566 ounces of gold for the year at an All-in Sustaining Cost of $1,174 per ounce. Gold production was down 8% on the
prior year as a result of a decrease in the processed head grade at the Moolart Well mill. Lower recovery at Moolart Well was impacted by
lower ore grades and harder, more metallurgically difficult material which was encountered earlier than expected.
10 Regis Resources Limited | Annual Report 2021
Tropicana Gold Project
During the year, Regis acquired a 30% non-operator interest in the
Tropicana Gold Project located in the Albany-Fraser Belt, approximately
330 kilometres north-east of Kalgoorlie in Western Australia.
Tropicana is operated by joint venture partner AngloGold Ashanti Australia Limited
and contains the Tropicana, Havana and Boston Shaker open pits and the Boston
Shaker underground operation. Tropicana holds the mineral rights to approximately
2,600 square kilometres of WA exploration tenements that are held in a Joint Venture
agreement between Regis (30%) and AngloGold Ashanti Australia Limited (70%).
The Tropicana acquisition had an acquisition date for accounting purposes of
30 April 2021. 17,317 ounces were produced in May and June 2021 from the
Company’s 30% interest in Tropicana.
Layout of the Tropicana Mine.
Operating results for the Tropicana Gold Project (May and June 2021 on a 30% basis) are summarised below:
2021
2020
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
0.05
1.16
25.3
0.17
0.43
1.39
90
17
1,240
1,300
2,121
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Regis Resources Limited | Annual Report 2021 11
Gold Exploration
Duketon Gold Project
Regis controls a significant tenement package across the majority of the Duketon Greenstone Belt. The tenement holding encompasses
141 granted exploration licences, prospecting licences and mining leases, across 2,900 square kilometres and 2 exploration licence
and mining lease applications over approximately 1,600 square kilometres.
In September 2020, the Company completed the acquisition of valuable resource and tenement holdings from Stone Resources
Australia Limited. The acquisition included the Ben Hur Gold Project with immediate value added to the Company’s Mineral Resource
and Ore Reserves as outlined in the ASX Announcement dated 21 April 2021 ‘Resources and Reserves Statement’.
The Duketon Gold Project continues to deliver on its strong history of reserve replacement built on an ongoing commitment to
exploration and resource extension drilling. An aggressive exploration programme continues to be focussed on potential areas for
the identification of both new mineralisation and expansions of current mineral resources with many promising targets generated for
testing in the coming year.
Duketon Greenstone Belt geology interpretation.
Garden Well Underground
The Garden Well Project is a fully operational open pit gold mine which commenced production in September 2012, having a stand-
alone crushing, grinding, Carbon in Leach (‘CIL’) processing and tailings storage facilities. The Garden Well deposit lies in the Duketon
Greenstone Belt (‘DGB’) and in the north-eastern part of the Archean Yilgarn Craton of Western Australia. The DGB is characterised by a
strong North-South structural trend defined by major faults and shear zones, regional folds and granite batholiths. The current open pit
mine is expected to continue until at least FY2029.
In December 2020, the Company’s board approved the development of a new underground mine under the current Garden Well open pit
based on a positive Feasibility Study on the Garden Well South (GWS) Underground Gold Project. The maiden Mineral Resource Estimate
is 2.4 million tonnes at 3.6g/t Au for 270,000 ounces with the total material mined in the Feasibility Study including 1.85 million tonnes at
3.2g/t Au for 190,000 ounces. Considerable opportunity exists for mineralised extensions down plunge of the current Mineral Resource.
Development of the GWS Underground Project commenced in the March 2021 quarter with portal completion and 470 metres of capital
development achieved during the year.
Garden Well long section looking west with planned Garden Well South Underground and Garden Well North high-grade intercepts beneath
the current pit design.
Regis Resources Limited | Annual Report 2021 13
Ben Hur Project
In September 2020, the Company completed the acquisition of valuable resource and tenement holdings from Stone Resources Australia
Limited. The acquisition included the Ben Hur Mineral Resource of 5.8 million tonnes at 1.6g/t Au for 290,000 ounces which is located
approximately 30 kilometres south of the Garden Well mill.
The local stratigraphy consists of mafic and minor ultramafic units within a sequence of sheared metasediments and felsic volcaniclastic
rocks. Mineralisation is analogous to the Baneygo and Rosemont deposits situated north-west along strike from Ben Hur, where gold is
hosted within a stockwork of quartz stringers. The primary lode is proximal to the sheared footwall of a differentiated quartz dolerite sill.
Following the acquisition of Ben Hur, Regis immediately commenced infill drilling to confirm and expand the existing Mineral Resource.
Infill and extensional drilling consisted of 144 RC holes for 28,774 metres with drill spacing across the deposit reduced to 25m x 25m. 3
diamond holes for 484 metres were completed to gain geotechnical information for mine design purposes.
In April 2021, the Company reported a 34% growth in the Mineral Resource to 10.3 million tonnes at 1.2g/t Au for 390,000 ounces and
declared a maiden Ore Reserve Estimate of 3.5 million tonnes at 1.1g/t Au for 130,000 ounces.
Ben Hur long section looking west - proposed open pits and drill intercepts.
14 Regis Resources Limited | Annual Report 2021
Tropicana Gold Project
Tropicana, on the western edge of the Great Sandy Desert in
Western Australia, is approximately 1,000 kilometres east north
east of Perth. Tropicana holds mineral rights to approximately
2,600 square kilometres of WA exploration tenements that are
held in Joint Venture agreement between Regis (30%) and Joint
Venture Manager AngloGold Ashanti Australia Limited (70%).
The Tropicana gold deposits are hosted by high metamorphic
granulite-grade gneissic rocks in the shear-bounded Plumridge
Terrain, which is within the western edge of the Proterozoic age
Albany-Fraser belt. Tropicana currently has a Mineral Resources
Estimate of 145 million tonnes at 1.6g/t Au for 7.64 million ounces
(100%) and an Ore Reserves Estimate of 49 million tonnes at
1.7g/t Au for 2.69 million ounces (100%).
Work programmes are underway to assess the potential for
additional underground mines below the final design limits of
the Tropicana, Havana and Havana South open pits. In addition,
significant near mine and regional exploration programs continue
around Tropicana to unlock new discoveries and mine life
extensions.
Tropicana long section.
Regis Resources Limited | Annual Report 2021 15
Group Resource & Reserve Growth
The aggressive exploration programme across the Duketon Project continues to focus on identification of both new mineralisation and the
expansion of current mineral resources with many promising targets generated for testing in the coming year. The addition of the Ben Hur
Mineral Resource following acquisition provided opportunities for further extensions to the mine life of the current operations while the
incorporation of the Tropicana JV provided a step change in production.
The Company released an updated annual Mineral Resource and Ore Reserve Statement with the inclusion of Tropicana in June 2021.
Group Mineral Resources compliant with JORC Code 2012 as at 31 December 2020 are estimated to be 301 million tonnes at 1.1g/t gold
for 10.36 million ounces of gold, compared with the estimate at 31 March 2020 of 249 million tonnes at 1.0g/t gold for 7.70 million ounces
Group Mineral Resources
2,300
10,360
7,700
270
390
300
of gold.
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n
u
O
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n
a
s
u
o
h
T
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
31-Mar-20
Depletion
Model Update
New Deposits
Tropicana (30%)
31-Dec-20
Mineral Resources are reported inclusive of Ore Reserves and include all exploration and resource definition drilling information, where
practicable, up to 31 December 2020 and have been depleted for mining to 31 December 2020.
Mineral Resources are constrained by optimised open pit shells developed with operating costs and a long-term gold price assumption of
A$2,000 per ounce at Duketon and McPhillamys and A$2,170 per ounce at Tropicana for the purpose of satisfying “reasonable prospects
for eventual extraction” (JORC 2012).
The change in the Group Ore Reserve from March 2020 to December 2020 is as follows:
Group Ore Reserves
810
4,830
3,620
150
250
0
s
e
c
n
u
O
d
n
a
s
u
o
h
T
5,000
4,000
3,000
2,000
1,000
0
31-Mar-20
Duketon North
Duketon South
McPhillamys
Tropicana (30%)
31-Dec-20
The update of Group Ore Reserves for Duketon resulted in a 34% increase in tonnes and 20% increase in ounces after allowing for
depletion by processing. Tropicana added 15 million tonnes @ 1.7g/t gold for 810,000 ounces. Group Ore Reserves compliant with JORC
Code 2012 as at 31 December 2020 are estimated at 145 million tonnes at 1.0 g/t gold for 4.8 million ounces of gold.
A gold price of A$1,600 per ounce was used for the overall assessment of the Group Ore Reserves. This is unchanged from March 2020
Ore Reserves Annual Report.
16 Regis Resources Limited | Annual Report 2021
McPhillamys Gold Project
The 100% Regis owned McPhillamys Gold Project, located in New South Wales, is one of Australia’s larger undeveloped open pittable gold
resources. The project is located 250 kilometres west of Sydney in a well-established mining district. The current Ore Reserves at the
McPhillamys Gold Project are 61 million tonnes at 1.0g/t gold for 2.02 million ounces.
McPhillamys Gold Project location and NSW tenure.
A computer generated McPhillamys Gold Project site layout.
Regis Resources Limited | Annual Report 2021 17
Key life of mine physical results from the study are summarised below:
Mining
Waste volume
Ore volume
Volume total
Stripping ratio
Milling
Dry Tonnes Per Hour
Plant availability
Ore milled
Head grade
Recovery
Ounces recovered
Mine life
Mbcm
Mbcm
Mbcm
w:o
tph
%
Mt
g/t
%
Moz
Years
91.6
21.3
112.9
4.3
841
95.0
60.8
1.04
85
1.7
10+
In September 2020, the Company reached another key milestone with the Amendment Report and Responses to Submissions (RTS)
submitted to the Department of Planning, Industry and Environment (DPIE). This completes the third of five major phases in the assessment
and approval process. The fourth phase sees DPIE assess the Development Application and make its recommendation to the Independent
Planning Commission (IPC). The IPC will then be tasked with conducting a public hearing and making a determination within a potential
timeframe of 12 weeks.
Regis’ Project execution team is continuing the progress work into more detailed areas including mining, processing, water and power
supply, however COVID-19 related restrictions are limiting access to site for engineering and potential vendor inspections. This, along with
the heated construction market has been impacting the team’s ability to complete the assessment of schedules and costs in the vendor
proposals of some of the work packages. As the Project has continued to progress through the approvals process Regis has been updating
the scope with any material changes required since the PFS. Updated cost estimations are underway using this information.
With IPC approval Regis would expect to finalise any outstanding scope changes and costings and as soon as practical thereafter provide
the Feasibility Study summary to the Market.
In the meantime, work continues to develop a detailed understanding of local business capacity and where these businesses have the
potential to be incorporated into construction activity. This assessment along with other contract and design related works, is underway
to ensure that for a favourable decision from the IPC, the Project will be as ready for Final Investment Decision and as shovel ready as
practical.
18 Regis Resources Limited | Annual Report 2021
Mineral Resources
and Ore Reserves
Regis Resources Limited | Annual Report 2021 19
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Regis Resources Limited | Annual Report 2021 21
Financial Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
23
36
52
Consolidated Statement of Comprehensive Income
54
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
55
56
57
58
93
94
22 Regis Resources Limited | Annual Report 2021
Directors’ Report
Your directors submit their report for the year ended 30 June 2021.
Directors
The directors of Regis Resources Limited (“Regis” or “Company”) in office since
1 July 2020 and up to the date of this report are:
Mr James Mactier, BAgrEc (Hons), GradDipAppFin, GAICD
(Independent Non-Executive Chairman)
Mr Mactier was joint head of the Metals and Energy Capital Division of Macquarie Bank
Limited for fifteen years until his retirement in April 2015. He has wide ranging experience
in project and corporate finance, resource project assessment, equity investing,
commodity and currency hedging and trading in the metals and energy sectors globally.
He is a Graduate Member of the Australian Institute of Company Directors and a member
of Resource Capital Fund’s Managing Partner’s Advisory Board.
During the past three years, Mr Mactier has not served as a director of any other ASX listed
company.
Mr Jim Beyer, BEng, MGeoSc, AMEC
(Chief Executive Officer and Managing Director)
Mr Beyer is a Mining Engineer with extensive gold industry experience having been the
General Manager of the Boddington Gold Mine, one of Australia’s largest gold mines, from
2007 to 2010 and General Manager of the Pajingo Gold Mine from 2004 to 2006.
Prior to Regis, Mr Beyer was the Chief Executive Officer of Western Australian based iron
ore producer and explorer Mt Gibson Iron Limited (ASX:MGX) from 2012 to 2018.
Mr Beyer holds a Bachelor of Engineering (Mining) degree, a Masters of Geoscience
(Mineral Economics) and is a Vice President of the Executive Council of the Association of
Mining & Exploration Companies (AMEC).
During the past three years, Mr Beyer has not served as a director of any other ASX listed
companies.
Mrs Fiona Morgan, CPEng, BE (Hons), FIEAust, FAusIMM, GAICD
(Independent Non-Executive Director)
Mrs Morgan is a Chartered Professional Engineer with over 28 years’ experience in the
mining industry, including working on gold, nickel, coal and iron ore projects. Mrs Morgan is
the Managing Director and Chief Executive Officer of Mintrex Pty Ltd, a highly regarded and
longstanding consulting engineering company which has successfully undertaken a broad
suite of technical services to Australian and international clients developing resource
projects. She has a wide range of experience in operations and project management,
maintenance, research and design of both underground and surface mining infrastructure.
Mrs Morgan is a Fellow of the Institution of Engineers Australia, a Fellow of the Australasian
Institute of Mining and Metallurgy and a graduate member of the Australian Institute of
Company Directors.
During the past three years, Mrs Morgan has not served as a director of any other ASX
listed company.
Regis Resources Limited | Annual Report 2021 23
Mr Steve Scudamore, BA (Hons) MA (Oxon), FCA, FAICD, SF Fin, HonDUniv (Curtin)
(Independent Non-Executive Director)
Mr Scudamore is a respected Chartered Accountant with significant ASX listed Board
experience. He was a partner with KPMG for 28 years until his retirement in 2012,
specialising in energy and natural resources. He held senior roles in Australia, UK and PNG
including National Managing Partner for Valuations, Head of Corporate Finance WA and
Chairman of Partners WA.
Mr Scudamore holds a Bachelor and Masters of Arts (History and Economics) from Oxford
University, is a Fellow of the Institutes of Chartered Accountants Australia and England and
Wales, is a Fellow of the Institute of Company Directors and a Senior Fellow of the Financial
Services Institute of Australia. In February 2021, Curtin University conferred upon him an
Honorary Doctorate of the University.
Mr Scudamore is currently a Non-Executive Director of ASX listed companies Pilbara
Minerals Limited and Australis Oil and Gas Limited as well as various not-for-profit and
community organisations.
Other than as mentioned above, during the past three years Mr Scudamore has not served
as a director of any other ASX listed companies.
Mrs Lynda Burnett, BSc (Hons), GAICD, MAusIMM, MSEG
(Independent Non-Executive Director)
Mrs Burnett is a geologist with over 30 years’ experience in the mining industry. She has
held a variety of roles with major and junior mining companies most recently with Sipa
Resources Limited as Managing Director.
Prior to Sipa Resources Limited, Mrs Burnett spent 9 years with Newmont Asia Pacific
as Director Exploration Australia and Manager Exploration Business Development with
responsibility for the strategic planning, management and oversight of all Newmont’s
generative exploration projects and brown fields exploration projects. Prior to her roles
at Newmont, she worked for a number of mining and exploration companies including,
Normandy Mining Limited, Newcrest Mining Limited, Plutonic Resources Limited and as an
Executive Director of Summit Resources Limited.
From 2009 to 2021 Mrs Burnett served on the Strategic Advisory Board of the Centre for
Exploration Targeting based at the School of Earth Sciences, University of WA.
Other than as mentioned above, during the past three years Mrs Burnett has not served as
a director of any other ASX listed companies.
Mr Russell Barwick, Dip. Min Eng, FAusIMM, FAICD
(Independent Non-Executive Director)
Mr Barwick is a mining engineer with extensive technical, operational, managerial and
corporate experience in the mining industry across a wide range of commodities and
jurisdictions. He is currently a Non-Executive Director of ASX listed companies Mount
Gibson Iron Limited, Red Metal Limited (Chairman) and Lithium Power International Limited
and the associated unlisted Minera Salar Blanco S.A. (Chile).
Starting his career in 1974, Mr Barwick worked for Bougainville Copper Limited (CRA),
Pancontinental Mining Limited and CSR Limited and spent 16 years with Placer Dome
in key development, operational and corporate roles in numerous countries before his
appointment as Managing Director of Placer Niugini Limited. He later served as Managing
Director of Newcrest Mining Limited before moving to Canada as Chief Operating Officer
for Wheaton River Minerals Limited and its successor, Goldcorp Inc. Mr Barwick returned
to Australia in 2008 and resides in Queensland.
Mr Barwick holds a Diploma in Mining Engineering (Ballarat) and is a Fellow of both the
Australasian Institute of Mining and Metallurgy, and the Australian Institute of Company
Directors.
Other than as mentioned above, during the past three years Mr Barwick has not served as
a director of any other ASX listed companies.
24 Regis Resources Limited | Annual Report 2021
Directors’ Report Company Secretary
Ms Elena Macrides, BSc, LLB, MBA, GAICD
Ms Macrides is a solicitor with over 20 years’ experience in legal and strategic consulting roles. Her project experience includes commercial
roles at Rio Tinto Iron Ore and she has strategy consulting experience in Perth, Sydney and Melbourne across a broad range of industries.
Ms Macrides also spent a number of years in private practice as a solicitor at two national firms. She is a graduate member of the
Australian Institute of Company Directors and holds a Bachelor of Science/Bachelor of Laws and Masters of Business Administration from
the University of Western Australia. Ms Macrides joined Regis as Assistant Company Secretary in May 2020 and was appointed Company
Secretary in January 2021.
Mr Jon Latto, B.Com, CA, MBA, GradDip ACG ACIS
Mr Latto is a Chartered Accountant with over 25 years’ experience including 13 years’ experience as a Chief Financial Officer within
the Australian gold sector. Mr Latto was previously Chief Financial Officer for Doray Minerals Limited for approximately six years and
has significant corporate and commercial experience. Mr Latto has also worked with Ernst & Young in Australia, America and India on
projects primarily related to finance function reform and previously worked in London in a variety of financial roles. Mr Latto is a Chartered
Secretary and holds a Bachelor of Commerce and a Masters of Business Administration from the University of Western Australia.
Mr Latto resigned as Company Secretary on 12 January 2021.
Dividends
After the balance sheet date the following dividends were proposed by the directors:
Final dividends recommended:
Ordinary shares
Cents
Total amount
per share
$’000
3.00
22,624
The financial effect of these dividends has not been brought to account in the consolidated financial statements for the year ended 30
June 2021 and will be recognised in subsequent financial reports.
Nature of Operations and Principal Activities
The principal activities of the Company and its controlled entities (collectively, the “Group”) during the year were:
• Production of gold from the Duketon Gold Project;
• Production of gold (non-operator) from the Company’s 30% interest in the Tropicana Gold Project (“Tropicana”);
• Exploration, evaluation and development of gold projects in the 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.
Company Strategy for Value Growth
The Group’s strategy is to continue to build a profitable and sustainable mid-tier gold company and is driving to achieve this strategy
through continuing to:
• Deliver value through its existing operations;
• Grow organically through exploration;
• Assess opportunities for inorganic growth; and
• Focus on mining safely and responsibly.
Objectives Completed in FY21 that Contribute to Strategy Delivery
During the FY21 year, the Company has delivered in each of these area of its strategy through:
•
•
Increasing production from Rosemont Underground and commencing development at the Garden Well Underground;
Increasing the Company’s Reserves and Resources at Duketon through its exploration efforts;
• Delivery of inorganic growth through the 30% acquisition of Tropicana;
• Substantial improvement in safety performance as reflected in the significant reduction in the Lost Time Injury Frequency Rate and the
implementation of leadership training in this critical area;
• Acquisition of resource and tenement holdings from Stone Resources Australia Limited, including the Ben Hur Mineral Resource.
Regis Resources Limited | Annual Report 2021 25
Directors’ Report Objectives Going Forwards
The Group’s objectives are to:
• Continue to optimise mining and processing operations across the Duketon Gold Project whilst maintaining a high standard of safety;
• Maximise cash flow at the Duketon Gold Project through this process of optimisation and the blending of ore feed from satellite
resources across the Duketon tenure;
• Continue to work with the Company’s joint venture partner (AngloGold Ashanti Australia Limited) to deliver value from Tropicana;
• Organically increase the Reserve base of the Group by discovering and developing satellite resource positions and extending the
reserve base of existing operating deposits;
• Focus on regional exploration to add incremental ounces and mine life to the three operating mills at Duketon;
• Advance the economic study of the McPhillamys Gold Project in NSW with a view to developing a significant long life gold mine at the
Project;
• Return value to shareholders through dividends where appropriate; and
• Actively pursue inorganic 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 has two distinct project areas at the Duketon Gold Project in the Eastern Goldfields of Western Australia. The Duketon
South Operations (“DSO”) contains the Garden Well Gold Mine (open pit and with an underground mine in development), the Rosemont
Gold Mine (open pit and underground), the Erlistoun Gold Mine, the Tooheys Well Gold Mine and the Baneygo Gold Mine. The Duketon
North Operations (“DNO”) comprises the Moolart Well Gold Mine, the Gloster Gold Mine, Anchor Gold Mine, the Dogbolter Gold Mine and
the Petra Gold Mine.
During the period, Regis acquired a 30% interest in the Tropicana Gold Project located in the Albany-Fraser Belt, approximately 330
kilometres north-east of Kalgoorlie in Western Australia. Tropicana is operated by joint venture partner AngloGold Ashanti Australia Limited
and includes the Tropicana, Havana and Boston Shaker open pit operations and Boston Shaker underground operations. The Tropicana
acquisition had an acquisition date for accounting purposes of 30 April 2021. The acquisition was funded by an equity raising of $650
million which was completed on 10 May 2021 and a $300 million three-year loan facility provided by Bank of America. Subsequent to the
end of the period, the Company worked with Bank of America to syndicate this debt to Macquarie Bank Limited, HSBC, National Australia
Bank and Westpac.
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 Blayney.
Financial Summary
Key financial data
Financial results
Sales revenue
Cost of sales (excluding D&A)(i)
Other income/(expenses)
Corporate, admin and other costs
EBITDA(i)
Depreciation and amortisation (D&A)
Profit before tax(i)
Income tax expense
Reported profit after tax
Other financial information
Cash flow from operating activities
Cash and cash equivalents
Interest-bearing liabilities
Net cash/(debt)
Net assets
Basic earnings per share (cents per share)
2021
$’000
2020
$’000
818,835
(394,011)
(402)
(21,041)
403,381
(189,049)
212,394
(66,196)
146,198
276,286
242,627
(293,821)
(51,194)
1,584,305
26.37
755,791
(344,105)
(1,365)
(16,181)
394,141
(108,323)
284,660
(85,143)
199,517
343,013
192,428
(4,971)
187,457
835,081
39.26
Change
$’000
63,044
(49,906)
963
(4,860)
9,240
(80,726)
(72,266)
18,947
(53,319)
(66,727)
50,199
(288,850)
(238,651)
749,224
Change
%
8.3%
14.5%
70.5%
30.0%
2.3%
74.5%
(25.4%)
(22.3%)
(26.7%)
(19.5%)
26.1%
(5,810.7%)
(127.3%)
89.7%
(i) EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortisation. Cost of sales (excluding D&A) and EBITDA 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.
26 Regis Resources Limited | Annual Report 2021
Directors’ Report Performance relative to the previous financial year
Regis achieved a 2.3% increase in EBITDA to $403.4 million with an after tax profit of $146.2 million for the full year to 30 June 2021
which was 26.7% lower than the previous corresponding year result of $199.5 million. Higher gold sales revenue was offset by increased
mining costs associated with deeper in-pit mining in addition to a 74.5% increase in depreciation and amortisation charges for the period.
Sales
The Company produced 372,870 ounces of gold for the year ended 30 June 2021 with 355,553 ounces from the Company’s Duketon
Operations and 17,317 from its 30% interest in Tropicana for May and June 2021. Gold sales revenue rose by 8.3% from the previous
year with 367,285 ounces of gold sold at an average price of $2,229 per ounce in 2021 (2020: 353,182 ounces at $2,200 per ounce). The
Company delivered gold produced into a combination of forward contracts and at the prevailing spot price.
The total hedging position at the end of the year was 320,000 ounces with at a fixed price of $1,571 per ounce (2020: 399,494 ounces
with a weighted average forward price of $1,614 per ounce). In May 2021, the Company adjusted the structure and delivery profile of its
gold hedges with Macquarie Bank Limited, moving from spot deferred hedges to flat forward hedging.
Cost of Sales
Costs of sales including royalties, but before depreciation and amortisation increased by 14.5% to $394.0 million.
Depreciation and Amortisation
The 74.5% increase in depreciation and amortisation charges was predominantly a result of an increase in the underlying Mine Properties
assets (Refer Note 14), the Rosemont Underground operations being in commercial production for the full year and the addition of assets
associated with the Tropicana Gold Project.
Cash Flow from Operating Activities
Cash flow from operating activities was $276.3 million, down 19.5% on the prior year following an increase in the cost of sales. During the
year, the Company paid $77.1 million of income taxes.
The Company continued to provide strong returns to shareholders through the payment of two fully franked dividends in FY21 totalling
$61.3 million.
Duketon South Operations (“DSO”)
Operating results at the Duketon South Operations for the 12 months to 30 June 2021 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties
Cash cost per ounce – incl. royalties
All-in Sustaining Cost (“AISC”)
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
30 June 2021
30 June 2020
2,500,701
2,800,054
15,597,136
19,557,651
6.2
7,034,770
6,366,312
1.44
92
7.0
7,234,482
6,371,894
1.35
94
Ounces
270,987
259,858
A$/oz
A$/oz
A$/oz
1,058
1,165
1,368
859
963
1,218
Production at DSO increased by 4% from the previous year with 270,987 ounces of gold produced at an all-in sustaining cost of $1,368
per ounce. The increase in production was achieved following the first full year contribution from the Rosemont Underground which saw
grades continue to lift as development progressed into the higher-grade Main Zone. Recovery at DSO was impacted by an increase in the
proportion of some metallurgically difficult ore from Tooheys Well.
AISC increased by 12% primarily due to higher open pit drill and blast costs at the satellite pits with harder rock surfaces and deeper in-pit
mining in addition to an increase in capital development costs from the Rosemont Underground operations.
Regis Resources Limited | Annual Report 2021 27
Directors’ Report Duketon North Operations (“DNO”)
Operating results for the 12 months to 30 June 2021 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties
Cash cost per ounce – incl. royalties
All-in Sustaining Cost (“AISC”)
30 June 2021
30 June 2020
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
1,498,524
11,505,350
7.7
2,858,047
3,151,223
0.92
91
1,363,821
6,811,692
5.0
2,745,313
2,999,498
1.04
92
Ounces
84,566
92,184
A$/oz
A$/oz
A$/oz
989
1,092
1,174
1,071
1,184
1,324
DNO produced 84,566 ounces of gold for the year at an all-in sustaining cost of $1,174 per ounce. Gold production was down 8% on the
prior year as a result of a decrease in processed head grade at the Moolart Well mill. Lower recovery at Moolart Well was impacted by lower
ore grades and harder, more metallurgically difficult material which was encountered earlier than expected.
AISC decreased by 11% on the prior year driven by a lower strip ratio attributable to AISC following an increase in the Growth Capital work
for the reporting period.
Tropicana Gold Project
Operating results (at 30%) from 1 May 2021 to 30 June 2021 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties
Cash cost per ounce – incl. royalties
All-in Sustaining Cost (“AISC”)
30 June 2021
30 June 2020
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
45,855
1,161,622
25.3
174,932
429,554
1.39
90
Ounces
17,317
A$/oz
A$/oz
A$/oz
1,240
1,300
2,121
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Production from the acquisition date of 30 April 2021 totalled 17,317 ounces (30%) at an all-in sustaining cost of $2,121 per ounce. The
high AISC reflected a combination of high strip ratios and low production in the two-month period due to relatively low mill head grades as
stockpiles are utilised while the Havana open-pit cutback continues to progress along with a planned mill maintenance shutdown in June.
28 Regis Resources Limited | Annual Report 2021
Directors’ Report Exploration
During the year, a total of 253,275 metres of exploration drilling was completed across the Group’s tenements at Duketon. At Tropicana
during May and June 2021, 29,433 metres of exploration drilling was completed, with 12,402 metres being aircore drilling, 6,628 metres
being RC drilling and 10,403 metres being diamond drilling.
Regis’ exploration for FY21 reflects the Company’s growth strategy which continues to test for near mine extensions and new greenfield
targets across the Company’s tenure in the Duketon Greenstone Belt.
The table below breaks down the drilling activity (in metres) by Prospect at Duketon:
Aircore
RC Diamond
Total
Prospect
RC Diamond
Total
Prospect
Baneygo
Beamish
Bella Well
Ben Hur
-
3,313
2,474
-
1,034
-
-
5,787
2,478
1,034
Matts Bore
Mitchell
Moolart North
28,774
484
29,258
Moolart Well
2,478
-
-
-
-
3,428
25,520
Betelgeuse
15,065
6,276
1,728
23,069
Mt Maiden
-
-
-
-
-
-
-
1,153
2,314
2,224
O’Connor Reward
Risden Well
Rosemont
15,366
Rosemont West
3,125
2,916
Russel’s Find
Somerset
278
Swincer
13,791
13,791
Ten Mile Bore
479
479
Terminator
18,620
3,141
21,761
The Patch
Butchers Well
1,153
-
Campervan
Claypan
-
2,314
2,224
-
Commonwealth
13,760
1,606
Doris Well
Duketon Townsite
3,125
2,414
Fisher Well
Garden Well
Giles
Gloster
-
-
-
-
-
502
278
-
-
Granite Peak Bore
2,085
Hermans
Kintyre
-
330
-
-
-
Lancefield North
-
6,985
Little Well
327
-
-
1,056
2,085
1,056
Thompsons Bore
1,156
3,535
Tooheys Well
330
Ventnor
6,985
White Nile
-
6,610
5,203
-
-
-
3,912
-
-
-
-
-
327
Total
95,567
106,482
51,226
253,275
Aircore
20,212
1,146
2,929
-
2,489
-
600
552
4,202
7,102
-
-
405
-
-
-
416
-
-
-
-
-
1,212
2,279
-
390
24,161
24,551
-
-
-
-
-
-
-
20,212
1,146
3,428
25,520
2,929
416
2,489
-
-
-
-
-
-
-
-
600
552
4,202
7,102
1,212
2,279
405
4,691
3,912
6,610
5,203
Significant projects advanced during the year ended 30 June 2021 are outlined below.
All drilling results and resource estimations highlighted in this report are detailed fully in announcements to the ASX made by the Company
throughout the year, along with the associated JORC 2012 disclosures.
Development – Garden Well Underground Project
The Garden Well Project is a fully operational open pit gold mine which commenced production in September 2012, having stand-alone
crushing, grinding, Carbon in Leach (‘CIL’) processing and tailings storage facilities. The Garden Well deposit lies in the Duketon Greenstone
Belt (‘DGB’) in the north-eastern part of the Archean Yilgarn Craton of Western Australia. The DGB is characterised by a strong North-South
structural trend defined by major faults and shear zones, regional folds and granite batholiths.
In December 2020, the Company’s board approved the development of a new underground mine under the current Garden Well open pit
based on a positive Feasibility Study on the Garden Well South (GWS) Underground Gold Project. The maiden Mineral Resource Estimate
is 2.4 million tonnes at 3.6g/t Au for 270,000 ounces with the total material mined in the Feasibility Study including 1.85 million tonnes at
3.2g/t Au for 190,000 ounces. Considerable opportunity exists for mineralised extensions down plunge of the current Mineral Resource.
Development of the GWS Underground Project commenced in the March 2021 quarter with portal completion and 470 metres of capital
development achieved during the year.
Regis Resources Limited | Annual Report 2021 29
Directors’ Report Development – McPhillamys Gold Project NSW
The 100% Regis owned McPhillamys Gold Project is one of Australia’s larger undeveloped open pittable gold resources. The Project is
located approximately 250 kilometres west of Sydney in Central West NSW, a well-established mining district. The current Ore Reserve for
the McPhillamys Gold Project is 61 million tonnes at 1.0g/t Au for 2.02 million ounces.
During the year, the assessment phase of the McPhillamys Development Application (‘DA’) reached another milestone with the Amendment
Report and Responses to Submissions submitted to the Department of Planning, Industry and Environment (‘DPIE’) for assessment. The
Project is now in the penultimate phase of the process which sees DPIE assess the DA and make its recommendation to the Independent
Planning Commission (‘IPC’). Regis notes that the final decision by the government is still to be made and it is anticipated a recommendation
by DPIE to the IPC has the potential to be in the first half of FY22.
The Company continues to work with the local and surrounding communities to ensure opportunities and impacts presented by the project
development are communicated and mitigated where practicable.
Ben Hur Project
In September 2020, the Company completed the acquisition of valuable resource and tenement holdings from Stone Resources Australia
Limited. The acquisition included the Ben Hur Mineral Resource of 5.8 million tonnes at 1.6g/t Au for 290,000 ounces which is located
approximately 30 kilometres south of the Garden Well mill.
The local stratigraphy consists of mafic and minor ultramafic units within a sequence of sheared metasediments and felsic volcaniclastic
rocks. Mineralisation is analogous to the Baneygo and Rosemont deposits situated north-west along strike from Ben Hur, where gold is
hosted within a stockwork of quartz stringers. The primary lode is proximal to the sheared footwall of a differentiated quartz dolerite sill.
Following the acquisition of Ben Hur, Regis immediately commenced infill drilling to confirm and expand the existing Mineral Resource.
Infill and extensional drilling consisted of 144 RC holes for 28,774 metres with drill spacing across the deposit reduced to 25m x 25m. 3
diamond holes for 484 metres were completed to gain geotechnical information for mine design purposes.
In April 2021, the Company reported a 34% growth in the Mineral Resource to 10.3 million tonnes at 1.2g/t Au for 390,000 ounces and
declared a maiden Ore Reserve Estimate of 3.5 million tonnes at 1.1g/t Au for 130,000 ounces.
Rosemont Underground Project
The Rosemont Project commenced in March 2013 and is a fully operational open pit gold mine with a stand-alone crushing and grinding
plant, piping an ore slurry to the Garden Well Carbon in Leach (‘CIL’) plant. The geology at Rosemont has gold hosted in a steeply dipping
quartz-dolerite unit intruding into a mafic-ultramafic sequence. Gold mineralisation is associated with quartz-albite-carbonate-chlorite-
sulphide alteration of the quartz dolerite unit which varies from 5 metres to greater than 100 metres wide.
Commercial production was declared from 1 June 2020 at the Rosemont Underground Project with 721,000 tonnes ore mined and 7,995
lineal metres of development achieved during the year. Deep drilling continued at Rosemont to explore the high-grade shoots which
extend at depth beneath existing underground infrastructure. During the period 24,161 metres of diamond drilling was completed to
test down plunge extensions of high-grade gold mineralisation outside the current underground resource domains with the Company
announcing an updated Mineral Resource of 2 million tonnes at 5.2g/t Au for 340,000 ounces.
Gloster Project
The Gloster Gold Project is hosted in a package of intermediate volcanics and intrusives. The gold mineralised system is structurally
complex, consisting of steeply dipping shears and multiple flat lying mineralised vein sets beneath the existing pit. Mineralised zones are
characterised by several metres of quartz-carbonate-sulphide veins with visible gold. Gloster currently has an open-pit Resource of 16
million tonnes at 0.7g/t Au for 390,000 ounces, including Ore Reserves of 1.5 million tonnes at 1.1g/t Au for 54,000 ounces.
Mineralised shoots persist to 500 metres beneath the open-pit and consist of a narrow, high grade, strike limited quartz veins. During the
year, Regis completed 18,620 reverse circulation (‘RC’) and 3,141 diamond drilling metres to test these mineralised structures beneath
the open-pit and provide additional information on grade continuity to inform the mineralsation model.
Tropicana Gold Project
Tropicana, on the western edge of the Great Sandy Desert in Western Australia, is approximately 1,000 kilometres east north east of Perth.
Tropicana holds the mineral rights to approximately 2,600 square kilometres of WA exploration tenements that are held in Joint Venture
agreement between Regis (30%) and Joint Venture Manager AngloGold Ashanti Australia Limited (70%).
The Tropicana gold deposits are hosted by high metamorphic granulite-grade gneissic rocks in the shear-bounded Plumridge Terrain,
which is within the western edge of the Proterozoic age Albany-Fraser belt. Tropicana currently has a Mineral Resources Estimate of 145
million tonnes at 1.6g/t Au for 7.64 million ounces (100%) and an Ore Reserves Estimate of 49 million tonnes at 1.7g/t Au for 2.69 million
ounces (100%).
Work programmes are underway to assess the potential for additional underground mines below the final design limits of the Tropicana,
Havana and Havana South open pits. In addition, significant near mine and regional exploration programs continue around Tropicana to
unlock new discoveries and mine life extensions.
30 Regis Resources Limited | Annual Report 2021
Directors’ Report
Material Business Risks
The material business risks faced by Regis that may have an impact on the financial and operating performance of the Company are:
Gold Price
Regis revenues are exposed to fluctuations in the gold price. Volatility in the gold price creates revenue uncertainty and requires careful
management of business performance to ensure that operating cash margins are retained despite a fall in the spot gold price. The risks
associated with such fluctuations and volatility may be reduced by any gold price hedging that Regis may undertake. A declining gold
price can also impact operations by requiring a reassessment of the feasibility of mine plans and certain projects and initiatives. The
development of new ore bodies, commencement of development projects and the ongoing commitment to exploration projects can all
potentially be impacted by a decline in the prevailing gold price. Even if a project is ultimately determined to be economically viable, the
need to conduct such a reassessment could potentially cause substantial delays and/or may interrupt operations, which may have a
material adverse effect on Regis’s results of operations and financial condition.
Foreign Exchange Rate Risk
Regis is an Australian business that reports in Australian dollars. Regis’s revenue is derived from the sale of gold in Australian dollars and
costs are mainly incurred by its business in Australian dollars. However, because gold is globally traded in US dollars, Regis is exposed
to foreign exchange risk. Therefore, movements in the US$/A$ exchange rate may adversely or beneficially affect Regis’s results of
operations and cash flows. The risks associated with such fluctuations and volatility may be reduced by any currency hedging Regis may
undertake, though there is no assurance as to the efficacy of such currency hedging. Regis hedges its gold ounces in Australian dollars,
which, given Regis’s revenue is derived from sale of gold in US dollars, provides for some coverage of foreign exchange risk.
Operational Risk
Drilling, mining and processing activities carry risk and as such, activities may be curtailed, delayed or cancelled as a result of a number of
factors outside Regis’s control. These include geological conditions, technical difficulties, securing and maintaining tenements, weather,
residue storage and tailings dam failures and construction of efficient processing facilities. The operation may be affected by force
majeure, fires, labour disruptions and availability, landslides, and the inability to obtain adequate machinery, engineering difficulties and
other unforeseen events. As with most mines, reserves, resources and stockpiles are based on estimates of grade, volume and tonnage.
The accuracy and precision of these estimates will depend upon drill spacing and other information such as continuity, geology, rock
density, metallurgical characteristics, mining dilution and costs, etc. which evolve as the mine moves through different parts of the ore
body. Regis endeavours to take appropriate action to mitigate these operational risks (including by properly documenting arrangements
with counterparties, and adopting industry best practice policies and procedures) or to insure against them, but the occurrence of any one
or a combination of these events may have a material adverse effect on Regis’s performance and the value of its assets.
Mineral Resource and Ore Reserve Estimates
Mineral resource and ore reserves are estimates only and no assurance can be given that the anticipated tonnages and grades will be
achieved, that the indicated level of recovery will be realised or that mineral reserves could be mined or processed profitably. There are
numerous uncertainties inherent in estimating mineral resources and ore reserves, including many factors beyond Regis control. Such
estimation is a subjective process, and the accuracy of any reserve or resource estimate is a function of the quantity and quality of
available data and of the assumptions made and judgements used in engineering and geological interpretation. Short term operating
factors in relation to the mineral reserves, such as the need for the orderly development of ore bodies or the processing of new or
different ore grades, may cause mining operations to be unprofitable in any particular accounting period. In addition, there can be no
assurance that gold recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during
production. Fluctuation in gold prices, results of drilling, metallurgical testing, changes in production costs, and the evaluation of mine
plans subsequent to the date of any estimate may require the revision of such estimates. The volume and grade of reserves mined and
processed, and recovery rates, may not be the same as currently anticipated. Any material reductions in estimated mineral resource and
ore reserves, or of Regis’ ability to extract these mineral reserves, could have a material adverse effect on Regis results of operations and
financial condition.
Effectiveness of Regis Gold Price Hedging
Regis currently has certain gold price hedging arrangements in place and may in the future choose to or be required to enter into further
gold price hedging arrangements. Although gold price hedging activities may protect Regis in certain instances, they may also limit the
price that can be realised on the proportion of recovered gold that is subject to any hedges, in the event that the market price for gold
exceeds the hedged contract price (meaning rising gold prices could result in part of Regis’ gold production being sold at less than the
prevailing spot price at the time of the sale). In this event, Regis’ financial performance may be adversely affected.
Regis Resources Limited | Annual Report 2021 31
Directors’ Report COVID-19
Regis’ Management Team has continued to manage the Company’s ongoing response to COVID-19 which has been coordinated in
cooperation with our contractors. COVID-19 is not currently impacting on production, however the situation remains fluid and the Company
will continue to monitor for potential impacts.
The Company is maintaining a range of measures across its business consistent with advice from State and Federal health authorities and
commensurate with the community risk profile. These measures help ensure the health and welfare of our employees and their respective
communities.
To date there have been no confirmed cases of COVID-19 across the business.
Climate Change
The current and future activities of Regis, including development of its projects, mining volumes, mining exploration and production
activities may be affected by factors such as seasonal and unexpected weather patterns, heavy rain, floods, droughts and other weather
and climatic conditions. The effects of changes in rainfall patterns, water shortages and changing storm patterns and intensities may
adversely impact the costs, production levels and financial performance of Regis’ operations.
Changes to climate related regulations and government policy have the potential to impact on our financial results. These changes
may include the imposition of a carbon tax on carbon output or the implementation of new taxes on diesel fuel which would impact the
Company given its current reliance on diesel across its operations.
Government Policy and Permits
In the ordinary course of business, mining companies are required to seek governmental permits for exploration, expansion of existing
operations or for the commencement of new operations. The duration and success of permitting efforts are contingent upon many
variables not within the control of Regis. There can be no assurance that all necessary permits will be obtained, and, if obtained, that the
costs involved will not exceed those estimated by Regis.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs other than those listed in the review of operations above.
Significant Events after the Balance Date
Share issue
Subsequent to year end, 67,589 shares have been issued as a result of the vesting of performance rights.
Dividends
On 30 August 2021, the directors proposed a final dividend on ordinary shares in respect of the 2021 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.
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.
32 Regis Resources Limited | Annual Report 2021
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.
Share Options
Unissued Shares
At the date of this report, the Company had no unissued shares under unlisted options.
Shares Issued as a Result of the Exercise of Options
During the financial year, employees exercised unlisted options to acquire 311,395 fully paid ordinary shares in Regis Resources Limited
at a weighted average exercise price of $3.42 per share.
Peformance Rights
Unissued Shares
At the date of this report, the Company had the following unissued shares under unvested performance rights.
Vesting Date
30 June 2022
30 June 2023
Number
outstanding
361,290
492,828
At the date of this report, the Company has 59,877 unissued shares relating to vested performance rights.
Performance rights holders do not have any right, by virtue of the performance rights, to participate in any share issue of the Company
or any related body corporate.
Details of performance rights granted to directors and other key management personnel during the year are set out in the remuneration
report.
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 Limited | Annual Report 2021 33
Directors’ Report Directors’ Meetings
The number of directors’ meetings held (including meetings of Committees of the Board) and number of meetings attended by each of the
directors of the Company during the financial year are:
Directors’ Meetings
Audit Committee
Diversity Committee
Community Committee
No.
No.
No.
No.
Scheduled
No.
Scheduled
No.
Scheduled
No.
Scheduled
No.
to Attend
Attended
to Attend
Attended
to Attend
Attended
to Attend
Attended
Remuneration,
Risk, Safety,
Nomination and
Environment and
J Mactier
J Beyer
F Morgan
S Scudamore
L Burnett
R Barwick(i)
17
17
16
17
17
17
17
17
16
16
16
13
6
-
-
6
6
-
6
-
-
6
6
-
3
-
-
3
3
2
3
-
-
3
3
2
-
-
5
5
5
5
-
-
5
5
5
4
(i) Mr Barwick stepped down from the Remuneration, Nomination and Diversity Committee on 25 November 2020.
Committee Membership
As at the date of this report, the Company had an Audit Committee, a Remuneration, Nomination and Diversity Committee and a Risk,
Safety, Environment and Community Committee of the Board of Directors.
Members of the committees of the Board during the year were:
Director
James Mactier
Fiona Morgan
Steve Scudamore
Lynda Burnett
Russell Barwick(i)
Audit Committee
and Community Committee
and Diversity Committee
Risk, Safety, Environment
Remuneration, Nomination
✓
Chairperson
✓
✓
✓
✓
Chairperson
✓
Chairperson
✓
✓
(i) Mr Barwick stepped down from the Remuneration, Nomination and Diversity Committee on 25 November 2020.
Directors’ Interests in the Shares and Options of the Company
As at the date of this report, the interests of the directors in the shares of the Company increased by 37,816 from the holdings as at 30
June 2021 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.
Number of
ordinary shares
66,234
118,421
529,190
34,484
15,897
5,000
J Mactier
J Beyer
F Morgan
S Scudamore
L Burnett
R Barwick
34 Regis Resources Limited | Annual Report 2021
Directors’ Report Auditor Independence and Non-Audit Services
During the year KPMG, the Group auditor, provided the following non-audit services. The directors are satisfied that the provision of non-
audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature
and scope of each type of non-audit service provided means that auditor independence was not compromised.
KPMG Australia received or are due to receive the following amounts for the provision of audit and non-audit services:
Audit and review of financial statements
Assurance services
Other advisory services
$
377,020
25,358
37,778
440,156
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 Instrument 2016/191 dated 24 March 2016 and in accordance with that Instrument, amounts
in the Financial Statements and Directors’ Report have been rounded to the nearest thousand dollars, unless otherwise stated.
Regis Resources Limited | Annual Report 2021 35
Directors’ Report Remuneration Report
Dear Shareholder,
The Board, through its independent Remuneration, Nomination and Diversity Committee, reviews the Company’s Key Management
Personnel (“KMP”) and Non-Executive Director (“NED”) remuneration in order to implement remuneration structures that align with our
Principles of Remuneration, as detailed in this report.
For KMPs, remuneration comprises both fixed and variable components and is significantly weighted towards the variable, at-risk
components of Short-Term Incentives (“STI”) and Long-Term Incentives (“LTI”). Within the variable component, a greater emphasis is
placed on LTIs. NEDs are remunerated on a fixed fee basis.
KMP Remuneration
FY21
In light of the then uncertainties surrounding the pandemic and in keeping with our objective of weighting remuneration towards variable
at-risk incentive opportunities, the Board decided to keep KMP total fixed remuneration (“TFR”) the same as in FY20 but made various
changes to the level and composition of the STIs and LTIs. Furthermore, we sought to improve transparency of how these amounts were
calculated.
Of particular note, we increased the weighting of safety in the STIs and included the impact of achievement of market guidance targets
relating to All In Sustaining Costs (“AISC”) and production levels. We also customised STIs for each KMP to more accurately reflect the roles
and responsibilities of individual KMP within the Company.
Alignment of KMP remuneration with shareholder interest was clearly demonstrated in FY21, a year in which our share price declined
significantly. The percentage of FY21 STIs actually awarded to each KMP was less than in FY20 and less than 50% of the 2019 LTIs vested
at the final test date on 30 June 2021. Further, the value to KMPs of the 50% of FY20 STI payments that were awarded to them in shares
at a price of $5.12 per share on 29 September 2020 vested on 30 June 2021 when the share price was $2.42 per share.
For FY21, as detailed in this report, the Board has approved between 60-65% of the maximum STI opportunity for individual KMPs. This
was determined following a review of the performance over the year against the Company-wide and individual measures set out at the
beginning of the financial year. Of this award, 50% will continue to be paid in cash within three months of the end of the financial year, with
the remaining 50% in performance rights which will vest 12 months after the end of the financial year.
In relation to LTIs awarded in FY21, we increased the maximum percentage opportunity for the Chief Executive Officer and Managing
Director, reflecting peer comparison and our emphasis on longer term remuneration and equity participation. The weighting towards
relative Total Shareholder Return (TSR) was increased but we retained two Company specific objectives, being Reserve Growth and the
successful development of the McPhillamys Gold Project.
At 30 June 2021, the FY19 performance rights for the Chief Executive Officer and Managing Director were subject to testing against the
pre-set vesting conditions. On review and as set out in this report, the conditions in relation to relative and absolute TSR and EPS growth
were not met over the period. However reserve growth was achieved, the underground development commenced at Rosemont and very
substantial progress was made at McPhillamys (taking into account factors beyond his control). Accordingly, 37.5% vesting was approved
by the Board.
FY22
An independent remuneration consultant was engaged to provide benchmarking data and additional insights into remuneration structures
and levels in the Australian mining sector. This data was sourced from annual reports published by similar sized ASX listed mining and
mining service companies for the year ended 30 June 2020. This list was larger and broader than the narrower gold producer peer group
that we use for calculating relative TSR as we recognise that our KMPs (and NEDS) skills and experience are transferable across different
commodities and sectors within the mining industry.
As noted above no increase was made to TFR for KMP in 2021. For FY22, increases have been agreed and targeted around the 50th
percentile of the survey comparator group.
Various changes have been made to the composition of STIs and LTIs in accordance with our short term priorities and longer term
strategic goals and reflecting each KMP’s role and responsibilities. The STI metrics now include a further environmental component
relating to carbon emissions and water usage. The LTI measures for FY22 continue to reflect relative TSR performance against other ASX-
listed significant gold producers as well as our own reserve and production growth targets over the next three years.
The no-fatality and no catastrophic environmental incident gateways will again apply to 100% of KMP STI payments in FY22.
36 Regis Resources Limited | Annual Report 2021
Remuneration Report
Non-Executive Director Remuneration
Remuneration for NEDs comprises fixed fees (plus superannuation) which are set at levels which we believe are necessary and appropriate
to attract and retain the quality and diversity of NEDs that we expect and in recognition of the workload and responsibility they have
as directors. These fees were last increased in FY19 (apart from changes made in FY20 for the formation of the RSEC Committee). The
Committee, referencing the independent survey, recommended fees for FY22 be increased to levels generally targeting the median survey
results. The proposed aggregate of all NED fees for FY22 (including superannuation) remains well within the existing shareholder approved
limit of $950,000 (which is also less than the median of the survey group). The individual performance and contribution of each NED and
of the Board itself is reviewed annually by the Non-Executive Chairman. All NEDs purchased shares in the Company in FY21.
The above is not a complete list of changes to our remuneration arrangements. Full details are set out in the following report and I
encourage you to read in its entirety.
Steve Scudamore
Chairman, Remuneration, Nomination and Diversity Committee
Regis Resources Limited | Annual Report 2021 37
This remuneration report for the year ended 30 June 2021 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.
Key Management Personnel
Details of KMPs of the Company and Group and their movements during the year ended 30 June 2021 are set out below:
Name
Position
Term as KMP
Non-executive directors
J Mactier
F Morgan
S Scudamore
L Burnett
R Barwick
Executive directors
J Beyer
Other executives
S Gula
J Latto
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Chief Executive Officer and Managing Director
Full financial year
Chief Operating Officer
Chief Financial Officer
Full financial year
Full financial year
Principles of Remuneration
The Remuneration, Nomination and Diversity Committee is charged with formulating the Group’s remuneration policy, reviewing each
director’s remuneration and reviewing the Chief Executive Officer and Managing Director’s remuneration recommendations for KMPs to
ensure compliance with the Remuneration Policy and consistency across the Group. Recommendations of the Remuneration, Nomination
and Diversity Committee are put to the Board for approval.
Remuneration levels for KMP are set to attract, retain and incentivise appropriately qualified and experienced directors and executives.
The Company rewards executives with a level and mix of remuneration appropriate to their position, responsibilities and performance, in
a way that aligns with the business strategy. The Company has implemented an Executive Incentive Plan for executive directors and other
KMPs which sets out the performance hurdles for both Short Term Incentives (“STI”) and Long Term Incentives (“LTI”).
The objectives and principles of the Company’s remuneration policy include:
• To align the objectives and remuneration of the executive director and other KMP with the interests of shareholders and reflect
Company strategy;
• To provide competitive rewards to attract, retain and incentivise high calibre executives;
• To be appropriate relative to others in the Company;
• To be non-discriminatory; and
• For total remuneration to include a competitive fixed component and an “at risk” component based on performance hurdles and key
performance indicators (“KPI”).
In FY21, the STI represented the annual component of the “at risk” reward opportunity which is payable 50% in cash and 50% in performance
rights (which vest 12 months after the end of financial year) upon the successful achievement of financial and non-financial KPIs. These
KPIs are chosen to represent the key drivers of short term success for the Company with reference to Regis’ long term strategy.
The LTI refers to the “at risk” reward opportunity which takes the form of performance rights, being the issue of shares in Regis in the
future, subject to meeting predetermined performance and vesting conditions.
Executive remuneration levels are reviewed at least annually by the Remuneration, Nomination and Diversity Committee.
38 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) The chart below provides a summary of the structure of executive remuneration in the 2021 financial year:
Fixed Remuneration
Base salary + superannuation + benefits
Variable Remuneration
STI Plan
LTI Plan
Cash and Performance Rights
Performance Rights
Remuneration Mix – Target
41%
LTI
Chief Executive
Officer and
Managing
Director
41%
Fixed
Remuneration
32%
LTI
Other
Executives
50%
Fixed
Remuneration
18%
STI
18%
STI
Elements of Remuneration in FY21
Fixed remuneration
Fixed remuneration consists of base remuneration (including any fringe benefits 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 at least annually by the Remuneration, Nomination and Diversity Committee through a process that
considers individual and overall performance of the Group. In addition, external consultants and industry surveys may provide analysis
and advice to ensure the KMP’s remuneration is competitive in the market place, as required. In March 2021, The Reward Practice Pty Ltd
reviewed the existing remuneration arrangements of the Company’s KMPs and made recommendations to the Remuneration, Nomination
and Diversity Committee. Fees to The Reward Practice Pty Ltd for this engagement totalled $16,000 exclusive of GST.
Performance linked remuneration
Performance linked remuneration includes both STI and LTI and is designed to reward KMP for meeting or exceeding their KPIs.
Regis Resources Limited | Annual Report 2021 39
Remuneration Report (Audited) Short Term Incentive
Under the current arrangements, executives have the opportunity to earn an annual incentive. The STI recognises and rewards annual
performance.
FY21
How is it paid?
Any STI award is paid 50% in cash and 50% in performance rights (which vest 12 months after the end of
financial year), after the assessment of annual performance. If Shareholders do not approve the proposed
issue of the Performance Rights to the Chief Executive Officer and Managing Director the payment will be
made in cash.
How much can current
In FY21, the Chief Executive Officer and Managing Director had a maximum STI opportunity of 70% of total
executives earn?
fixed remuneration, and other executives had a maximum STI opportunity of 60% of total fixed remuneration.
An overarching review by the Board of each individual’s performance against agreed performance measures
and a review of quantitative factors around the Company’s performance and the macro economic environment
will determine the achievable percentage (between 0%-100%) of the maximum potential STI available to be
awarded, subject further to the level of achievement against detailed KPI’s listed below.
This maximum achievable STI percentage will automatically be 0% in a given financial year in the event of a
work-related fatality or catastrophic environmental event at any of the Company’s managed operations in
that year.
How is performance
A combination of specific Company KPIs are chosen to reflect the core drivers of short term performance and
measured?
also to provide a framework for delivering sustainable value to the Group and its shareholders.
The following KPIs were chosen for the 2021 financial year:
Jim Beyer Stuart Gula
Jon Latto
KPI 1: Safety targets;
20%
20%
10%
• TRIFR 20% reduction;
• LTI 20% reduction;
KPI 2: All in sustaining costs relative to guidance;
KPI 3: Production relative to guidance;
KPI 4: Environmental targets;
KPI 5: Growth targets to be apportioned:
• Approval of McPhillamys Project site works;
• Exploration success on the Company’s tenements
or M&A;
• Commencement of new underground project
15%
15%
10%
30%
15%
15%
10%
20%
15%
15%
5%
20%
KPI 6: Implementation of Company-wide leadership and
10%
10%
-
safety culture improvement program; and
KPI 7: Business improvement targets:
• McPhillamys financing strategy delivered;
• Review and upgrade of ERP and other Company
related planning and reporting systems; or
• Completion of the McPhillamys DFS.
-
-
-
-
-
10%
25%
10%
-
When is it paid?
The STI award is determined after the end of the financial year following a review of performance over the
year against the STI performance measures by the Remuneration, Nomination and Diversity Committee. The
Board approves the final STI award based on this assessment of performance and 50% of the award is paid in
cash within 3 months after the end of the financial year and the remaining 50% is paid in performance rights
which vest 12 months after the end of financial year subject to shareholder approval for Directors.
What happens if
If an executive is terminated for cause before the end of the financial year, no STI is awarded for that year. If
executive leaves?
an executive ceases employment during the performance period by reason of redundancy, ill health, death,
or other circumstances approved by the Board, the executive will be entitled to a pro-rata cash payment
based on assessment of performance up to the date of ceasing employment for that year (subject to Board
discretion).
What happens if there
In the event of a change of control, a pro-rata cash payment will be made based on assessment of
is a change of control?
performance up to the date of the change of control (subject to Board discretion).
40 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Long Term Incentives
Under the current arrangements, annual grants of performance rights are made to executives to align remuneration with the creation of
shareholder value over the long-term.
FY21
How is it paid?
Executives are eligible to receive performance rights (being the issue of shares in Regis in the future).
How much can current
In FY21, the Chief Executive Officer and Managing Director had a maximum LTI opportunity of 100% of total
executives earn?
fixed remuneration, and other executives had a maximum LTI opportunity of 65% of total fixed remuneration.
An overarching review by the Board of each individual’s performance against agreed performance measures
and a review of quantitative factors around the Company’s performance and the macro economic environment
will determine the achievable percentage (between 0%-100%) of the maximum potential LTI available to be
awarded, subject further to the level of achievement against detailed KPI’s listed below.
How is performance
The vesting of performance rights are subject to a number of vesting conditions. The performance rights
measured?
issued in FY21 are subject to the following vesting conditions:
1. Relative Total Shareholder Return (50%(i))
Performance against comparator group (ASX code: EVN, NST, PRU, RSG, SAR, SBM, WGX, NCM, OGC, SLR,
GOR, RMS):
Between 50th percentile and the 75th percentile (i.e. 7th to 9th of 12 companies) will result in a straight-
line pro-rata between 50% and 100% of Relative TSR performance rights vesting.
2. Life of Mine Reserve Growth in Excess of Depletion (25%)
Vesting will depend on the Company’s growth in ore reserves net of depletion over the three-year
performance period, calculated at the percentage that the Company’s ore reserves as reported at 30
June 2023 (as per Reserve Report) represent of the Company’s ore reserves as at 30 June 2020 (as per
Reserve Report). Growth in reserves can arise from M&A activity.
If there are no new additions to Ore Reserves then nil vest.
As new reserves are added from nil to 120% of depletion, this will result in a straight-line pro-rata
between zero and 100% of the Reserve Growth performance rights vesting.
3. McPhillamys Project Performance (25%)
The McPhillamys project has been completed within 10% of the Definitive Feasibility Study capital cost
estimate (including owner’s costs but excluding contingencies) and production and operating costs have
been within 10% of the DFS estimates for a continuous period of at least 30 days. This will result in 100%
of McPhillamys Project performance rights vesting.
When is performance
The performance rights issued in FY21 have a three-year performance period with the vesting of the rights
measured?
tested as at 30 June 2023. Any performance rights that do not vest will lapse after testing. There is no re-
testing of performance rights.
What happens if
Where an executive ceases to be an employee of any Group Company:
executive leaves?
1. Due to termination for cause, then any unvested rights will automatically lapse on the date of the
cessation of employment; or
2.
Due to any other reason, then a proportion of any unvested rights will lapse equivalent to the
proportion of time remaining in the period during which the relevant vesting conditions must be
satisfied and the remaining unvested rights will continue and are still capable of vesting in accordance
with the relevant vesting conditions at the end of that period, unless the Board determines otherwise.
What happens if there
If a matter, event, circumstance or transaction occurs that the Board reasonably believes may lead to a
is a change of control?
change of control, the Board may in its discretion determine the treatment and timing of any unvested
rights and must notify the holder of any changes to the terms of the rights as a result of such a decision. If
a change of control occurs and the Board hasn’t made such a decision, all unvested rights will vest.
Are executives eligible
Executives are not eligible to receive dividends on unvested performance rights.
for dividends?
(i) Represents the maximum award if stretch targets are met.
Regis Resources Limited | Annual Report 2021 41
Remuneration Report (Audited) Performance and Executive Remuneration Outcomes in FY21
Actual remuneration earned by executives in FY21
The actual remuneration earned by executives in the year ended 30 June 2021 is set out below. This provides shareholders with details of
the remuneration actually paid to executives for performance in FY21 year and the value of LTIs that vested during the period.
Performance against STI measures
A combination of financial and non-financial measures is used to measure performance for STI rewards. Company performance against
those measures is as follows for 2021:
Weighting
Key Performance Indicator
Jim Beyer
Stuart Gula
Jon Latto Metric
Achievement
KPI 1: Safety Targets
20%
20%
10%
Reduction in key safety
100% award
measures:
• TRIFR 20% reduction;
TRIFR reduced by 78%
• LTI 20% reduction.
LTI reduced by 63%
KPI 2: AISC
KPI 3: Production
15%
15%
15%
15%
15%
15%
AISC relative to guidance.
Threshold level not achieved
Production relative to
Threshold level not achieved
guidance.
KPI 4: Environmental
10%
10%
5%
No significant environmental
100% award
Targets
incidents;
No significant compliance
No significant environmental
issues.
incidents and no significant
compliance issues
KPI 5: Growth Targets
30%
20%
20%
Growth targets to be
apportioned:
• Approval of McPhillamys
Not Delivered
Project site works;
100% award
• Exploration success on
Ben Hur and
the Company’s tenements
Tropicana acquisition
or M&A;
100% award
• Commencement of new
Commencement of Garden
underground project.
Well Underground
KPI 6: Leadership and
10%
10%
-
Implementation of company-
100% award
Safety Culture Improvement
Program
KPI 7: Business
Improvement Targets
• McPhillamys financing
strategy
• Upgrade ERP and
systems
• McPhillamys DFS
-
-
-
wide leadership and safety
culture improvement program.
-
-
10%
McPhillamys financing
100% award(i)
strategy delivered.
25%
Review and upgrade of ERP
100% award
and other Company related
planning and reporting
systems.
10%
-
Completion of the McPhillamys
Not delivered
DFS
(i) The Board used its discretion to award this on the basis of the successful financing of the Tropicana acquisition.
Based on this assessment, the STI cash payments for FY21 to executives were recommended as detailed in the following table:
Name
Jim Beyer
Stuart Gula
Jon Latto
Position
Chief Executive Officer and Managing Director
Chief Operating Officer
Chief Financial Officer
Achieved STI(i)
of TFR
STI Awarded(ii)
Percentage
%
65.0%
60.0%
65.0%
%
45.5%
36.0%
39.0%
$
359,220
190,793
170,820
(i) Achieved STI reflects the percentage of the maximum STI opportunity;
(ii)
Paid 50% in cash and 50% in performance rights which vest 12 months after the end of financial year.
42 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Performance against LTI measures
LTI awards granted in FY21 will be subject to testing at the end of the three-year performance period on 30 June 2023. In November
2020, after receiving approval from shareholders at the AGM, 154,353 performance rights were granted to Executive Director Mr Jim
Beyer, 67,350 and 55,661 performance rights were granted to executives Mr Stuart Gula and Mr Jon Latto respectively under the Group’s
Executive Incentive Plan (“EIP”). Further details of the grant, including performance conditions and the calculation of fair value is disclosed
in the Note 24 to the financial statements.
LTI awards granted in FY20 will be subject to testing at the end of the three-year performance period on 30 June 2022. In November
2019, after receiving approval from shareholders at the AGM, 129,433 performance rights were granted to Executive Director Mr Jim
Beyer and 58,343 performance rights were granted to executive Mr Jon Latto under the Group’s EIP. Further details of the grant, including
performance conditions and the calculation of fair value is disclosed in the Note 24 to the financial statements.
LTI awards granted in FY19 were subject to testing at the end of the three-year performance period on 30 June 2021. In November 2018,
after receiving approval from shareholders at the AGM, 160,766 and 129,187 performance rights were granted to Executive Directors Mr
Jim Beyer and Mr Paul Thomas respectively, under the Group’s EIP. Mr Paul Thomas retired from his position as Executive Director on 19
August 2019 and forfeited LTI awards. Further details of the grant, including performance conditions and the calculation of fair value is
disclosed in the Note 24 to the financial statements.
A number of performance conditions determined the vesting of the performance rights. The outcome of these performance conditions as
tested for the three-year period ending on 30 June 2021 were as follows:
Performance Condition
Weighting
Metric
Achievement
Relative TSR
20%
Relative Total Shareholder Return measured on
Threshold level not achieved
a sliding scale against a select peer group of
comparator companies. (ASX code: DCN, EVN,
NCM, NST, OGC, PRU, RSG, SAR, SBM, WGX)
Absolute TSR
EPS
20%
15%
Absolute Total Shareholder Return.
Threshold level not achieved
Absolute Earnings Per Share measured against
Threshold level not achieved
a pre-determined target set by the Board (as an
average across three 12-month periods)
Reserves
15%
Reserve growth in excess of depletion over the
98% award
three-year vesting period.
McPhillamys
15%
McPhillamys Project targets as determined by
50% award
the Board.
Rosemont Underground
15%
Rosemont underground targets as determined
100% award
by the Board.
Statutory performance indicators
The Company aims to align its executive remuneration to its strategic and business objectives and the creation of shareholder wealth.
The table below shows measures of the Group’s financial performance over the past five years as required by the Corporations Act 2001.
However, these measures are not directly used in determining the variable amounts of remuneration to be awarded to KMPs, as discussed
above. As a consequence, there may not always be a direct correlation between the statutory key performance measures and the variable
remuneration awarded.
Revenue
Net profit/(loss) after tax
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
2021
$’000
819,162
146,198
26.37
26.32
2020
$’000
756,657
199,517
39.26
39.18
2019
$’000
654,807
163,150
32.18
32.12
2018
$’000
606,495
174,231
34.60
34.35
2017
$’000
543,799
138,163
27.59
27.29
Net assets
1,584,305
835,081
716,464
636,842
538,392
Regis Resources Limited | Annual Report 2021 43
Remuneration Report (Audited) Performance and Executive Remuneration Arrangements in FY22
Subsequent to the end of the 2021 financial year, the Board resolved to set STI and LTI hurdles as follows for the 2022 financial year:
Component
Links to FY22 Performance
Total Fixed
Remuneration
(TFR)
Salaries awarded effective 1 July 2021 are used as the basis for determining the value component for the
FY22 STI and LTI.
The maximum STI opportunity that each KMP can earn are:
• Chief Executive Officer and Managing Director 70%
• Other executives 60%
The maximum LTI opportunity that each KMP can earn are:
• Chief Executive Officer and Managing Director 100%
• Other executives 65%
Short Term Incentives
The following KPIs were chosen for the 2022 financial year:
Jim Beyer
Stuart Gula
Jon Latto
(STI)
KPI 1: Safety targets:
• All Injury Frequency Rate:
20%
20%
15%
• Threshold: 5% reduction from 30 June 2021 level
(0% awarded);
• Target: 10% reduction from 30 June 2021 level
(33% awarded);
• Stretch: 15% reduction from 30 June 2021 level
(100% awarded);
• Pro-rated between each;
• Keep LTIFR below the most recently reported annual
Department of Mines, Industry Regulation and Safety
Reportable LTIs for the Gold Mining Industry (or
equivalent if not available);
KPI 2: All in sustaining costs relative to guidance:
15%
20%
20%
• Adjusted for gold and fuel price:
• Threshold: mid-point (0% awarded);
• Stretch: at the bottom of range (100% awarded);
• Pro-rated up from mid-point to bottom;
KPI 3: Production relative to guidance;
15%
20%
15%
• Threshold: mid-point (0% awarded);
• Stretch: 5% above mid-point (100% awarded);
• Pro-rated up from mid-point to 5%;
KPI 4: Environmental, social and governance targets:
20%
20%
15%
• No significant environmental incidents;
• No significant environmental compliance issues;
• Development of carbon emission intensity and water use
efficiency targets and improvement plans;
KPI 5: Resource growth through discovery (assessed
20%
10%
15%
potential or actual) or acquisition at the discretion of the
Board; and
KPI 6: Individual performance targets:
10%
10%
20%
Specific individual targets and objectives that are focussed
on improving business efficiency and cost management
along with other objectives that are commercially
confidential.
The Board retains discretion to adjust the STI mechanism and amounts.
44 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Component
Links to FY22 Performance
Long Term Incentives
The performance rights issued for FY22 will be subject to a three year vesting period and the following
(LTI)
vesting conditions:
1. Relative Total Shareholder Return (50%(i))
Performance against comparator group(ii):
Between 50th percentile and the 75th percentile (i.e. 7th to 9th of 12 companies) will result in a straight-line
pro-rata between 50% and 100% of Relative TSR performance rights vesting.
2. Life of Mine Reserve Growth in Excess of Depletion (25%)
Vesting will depend on the Company’s growth in ore reserves net of depletion over the three-year
performance period, calculated at the percentage that the Company’s ore reserves as reported at
31 March 2024 (as per December 2023 Reserve Report) represent of the Company’s ore reserves as at
31 March 2021 (as per December 2020 Reserve Report).
If there are no new additions to Ore Reserves then nil vest.
As new reserves are added from nil to 120% of depletion, this will result in a straight-line pro-rata between
zero and 100% of the Reserve Growth performance rights vesting.
Growth in reserves can arise from M&A activity.
3. Production Growth (25%)
Annualised gold production as at 30 June 2024 testing date (referencing the then Board approved budget
gold production for FY25) exceeds the current approved Regis LOM Base Case Plan by 20%.
Growth in production can arise from M&A activity.
(i) Represents the maximum award if stretch targets are met.
(ii) The Comparator Group, for LTI purposes, from 1 July 2021, will comprise the following gold producers:
1.
2.
3.
4.
5.
Evolution Mining Limited
Northern Star Resources Limited
Perseus Mining Limited
Resolute Mining Limited
St Barbara Limited
6. Westgold Resources Limited
7.
8.
9.
Newcrest Mining Limited
Oceana Gold Corporation Limited
Silver Lake Resources Limited
10. Gold Road Resources Limited
11. Ramelius Resources Limited
12. West African Resources
Regis Resources Limited | Annual Report 2021 45
Remuneration Report (Audited) Service Contracts
The Group has entered into service contracts with each KMP. The service contract outlines the components of remuneration paid to
each KMP 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 KMP and any changes required to meet the
principles of the remuneration policy.
Each KMP, except as specified below, is subject to a notice period of 1 month which the Company may pay in part or full of the required
notice period. The KMPs are also entitled to receive, on termination of employment, statutory entitlements of accrued annual and long
service leave, and any accrued superannuation contributions would be paid to their fund. In the case of a genuine redundancy, executives
would receive their statutory entitlements based on completed years of service.
Mr Jim Beyer, the Company’s Chief Executive Officer and Managing Director, is employed under a contract with the following termination
provisions:
Notice Period
Payment in Lieu of Notice
Rights on Termination
Entitlement to Options and
Employer initiated termination:
• without reason
3 months plus 9 months’ salary 12 months
• with reason
Not less than 3 months
Not less than 3 months
• serious misconduct
0 – 1 month
Employee initiated termination
3 months
0 – 1 month
Not specified
Change of control
1 month plus 12 months’ salary Not specified
Options – 1 month to exercise,
extendable at Board discretion
Rights – refer to LTI details
As above
As above
Mr Stuart Gula, the Company’s Chief Operating Officer, is employed under a contract with the following termination provisions:
Notice Period
Payment in Lieu of Notice
Rights on Termination
Entitlement to Options and
Employer initiated termination:
• without reason
3 months plus 9 months’ salary 12 months
• with reason
Not less than 3 months
Not less than 3 months
• serious misconduct
0 – 1 month
Employee initiated termination
3 months
0 – 1 month
Not specified
Change of control
1 month plus 12 months’ salary Not specified
Options – 1 month to exercise,
extendable at Board discretion
Rights – refer to LTI details
As above
As above
Mr Jon Latto, the Company’s Chief Financial Officer, is employed under a contract with the following termination provisions:
Notice Period
Payment in Lieu of Notice
Rights on Termination
Entitlement to Options and
Employer initiated termination:
• without reason
3 months plus 9 months’ salary 12 months
• with reason
Not less than 3 months
Not less than 3 months
• serious misconduct
0 – 1 month
Employee initiated termination
3 months
0 – 1 month
Not specified
Change of control
1 month plus 12 months’ salary Not specified
Options – 1 month to exercise,
extendable at Board discretion
Rights – refer to LTI details
As above
As above
If, in the opinion of the board a KMP acts fraudulently or dishonestly, is in material breach of their obligations to the Company, is knowingly
involved in a material misstatement of financial statements or engages in behaviour that results in the satisfaction of vesting conditions
in circumstances that in the reasonable opinion of the board have caused or are likely to cause long term detriment to the Company, then
regardless of whether or not the KMPs employment with the Company has terminated, the Board may:
(i) deem any unexercised incentives of the KMP to have lapsed;
(ii) adjust the KMPs current or future performance-based remuneration; and
(iii) take any other action that the board considers appropriate, including requiring any benefits obtained under an Executive Incentive
Plan by the KMP or their nominee to be returned, repaid or cancelled or alter the outcome on them vesting.
Non-Executive Directors
Total remuneration for all non-executive directors, last voted upon by shareholders at the 2019 AGM, is not to exceed $950,000 per
annum including superannuation. In FY21, total non-executive directors’ fees paid were $719,415 per annum including superannuation.
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 additional services to the Company and in these cases they are paid fees in line with
industry rates.
46 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Key Management Personnel Remuneration
Table 1: Remuneration for the year ended 30 June 2021
Post
Employ-
Long-term
Share-
based
Short Term
ment
benefits
Payment
Non-
Accrued
annual &
Termin-
Salary &
Cash
Monetary
Super-
long service
Options &
ation
Perfor-
mance
Fees
Rewards
Benefits*
annuation
leave#
Rights+
payments
Total
Related
2021
$
Non-executive directors
J Mactier(i)
F Morgan(ii)
160,000
115,000
S Scudamore(iii)
135,000
L Burnett(iv)
R Barwick(v)
125,000
122,000
Executive directors
$
-
-
-
-
-
$
-
-
-
-
-
$
15,200
10,925
12,825
11,875
11,590
$
-
-
-
-
-
$
-
-
-
-
-
J Beyer
671,084
179,610
3,739
68,495
59,037
470,842
Other executives
S Gula
J Latto
Total
470,969
95,396
387,692
85,410
3,739
3,739
45,980
38,000
41,957
91,814
35,081
158,977
2,186,745
360,416
11,217
214,890
136,075
721,633
$
-
-
-
-
-
-
-
-
-
$
%
175,200
125,925
147,825
136,875
133,590
-
-
-
-
-
1,452,807
44.77%
749,855
24.97%
708,899
34.47%
3,630,976
*
#
+
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.
Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.
Represents the statutory remuneration expensed based on fair value at grant date of options and rights over the vesting period of the award. Options have
vested during the year for KMPs as detailed in Table 5. Table 5 reflects the realised benefits of share-based payments for the year.
(i) Mr Mactier’s fees of $160,000 per annum are inclusive of all committee fees for roles on the committees shown in Table 2 below.
(ii) Mrs Morgan’s fees include $5,000 for her roles on the committees shown in Table 2 below.
(iii) Mr Scudamore’s fees include $25,000 for his roles on the committees shown in Table 2 below.
(iv) Mrs Burnett’s fees include $15,000 for her roles on the committees shown in Table 2 below.
(v) Mr Barwick’s fees include $12,000 for his roles on the committees shown in Table 2 below.
Table 2: Committee membership from 1 July 2020 to 30 June 2021
Director
James Mactier
Fiona Morgan
Steve Scudamore
Lynda Burnett
Russell Barwick(i)
Audit Committee
and Community Committee
and Diversity Committee
Risk, Safety, Environment
Remuneration, Nomination
✓
Chairperson
✓
✓
✓
✓
Chairperson
✓
Chairperson
✓
(i) Mr Barwick stepped down from the Remuneration, Nomination and Diversity Committee on 25 November 2020.
Table 3: Annual Non-Executive Director fees as at 30 June 2021
Director
James Mactier(i)
Fiona Morgan
Steve Scudamore
Lynda Burnett
Russell Barwick
Total
Base Fee(ii)
Committee Fees
$160,000
$110,000
$110,000
$110,000
$110,000
$600,000
-
$5,000
$25,000
$15,000
$10,000
$55,000
Total
$160,000
$115,000
$135,000
$125,000
$120,000
$655,000
(i) Mr Mactier’s fees are inclusive of all committee fees.
(ii) Base fees are exclusive of superannuation.
(iii) Committee membership fees are $5,000 per committee or $10,000 for the committee Chairperson.
Regis Resources Limited | Annual Report 2021 47
Remuneration Report (Audited) Table 4: Remuneration for the year ended 30 June 2020
Post
Employ-
Long-term
Share-
based
Short Term
ment
benefits
Payment
Non-
Accrued
annual &
Termin-
Salary &
Cash
Monetary
Super-
long service
Options &
ation
Perfor-
mance
Fees
Rewards
Benefits*
annuation
leave#
Rights+
payments
Total
Related
2020
$
Non-executive directors
J Mactier(i)
F Morgan(ii)
160,000
115,000
S Scudamore(iii)
127,477
L Burnett(iv)
R Barwick(v)
R Kestel(vi)
71,475
38,462
52,722
Executive directors
$
-
-
-
-
-
-
J Beyer
707,134
193,426
P Thomas(vii)
111,844
-
Other executives
S Gula(viii)
J Latto
K Massey(ix)
238,277
59,154
405,000
93,130
$
-
-
-
-
-
-
4,463
1,116
2,232
4,463
$
$
15,200
10,925
12,110
6,790
3,654
5,009
-
-
-
-
-
-
$
-
-
-
-
-
-
68,495
64,947
315,905
6,253
(54,347)
(387,279)
22,636
38,475
21,375
-
33,333
39,047
Total
2,027,391
345,711
12,274
189,711
34,355
(32,328)
-
-
-
164
(30,953)
-
$
-
-
-
-
-
-
-
-
-
-
-
-
$
%
175,200
125,925
139,587
78,265
42,116
57,731
-
-
-
-
-
-
1,354,370
37.61%
(322,413)
-
343,674
17.21%
613,447
21.55%
(30,789)
-
2,577,114
*
#
+
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.
Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.
Represents the statutory remuneration expensed based on fair value at grant date of options and rights over the vesting period of the award. Options have
vested during the year for KMPs as detailed in Table 6. Table 6 reflects the realised benefits of share-based payments for the year. Where the amount is
negative this represents a reversal of expense previously recognised where the KMP has foregone the LTI due to resignation or retirement.
(i) Mr Mactier’s fees of $160,000 per annum are inclusive of all committee fees for roles on the committees shown in Table 2 and Table 3 below.
(ii) Mrs Morgan’s fees include $5,000 for her roles on the committees shown in Table 2 and Table 3 below.
(iii) Mr Scudamore’s fees include $17,477 for his roles on the committees shown in Table 2 and Table 3 below.
(iv) Mrs Burnett was appointed Non-Executive Director on 27 November 2019. Mrs Burnett’s fees include $8,577 for her roles on the committees shown in
Table 2 and Table 3 below.
(v) Mr Barwick was appointed Non-Executive Director on 11 March 2020. Mr Barwick’s fees include $4,615 for his roles on the committees shown in Table
3 below.
(vi) Mr Kestel retired as a Non-Executive Director of Regis Resources Limited on 26 November 2019. Mr Kestel’s fees include $8,111 for his roles on the
committees shown in Table 2 below up to the date of his retirement from Regis Resources Limited on 26 November 2019.
(vii) Mr Thomas retired as Executive Director on 19 August 2019 and continued in the role of Chief Operating Officer until his resignation on 30 September
2019. The Annual and Long Service Leave amount for Mr Thomas is negative due to the accrual being inclusive of superannuation benefits however
superannuation benefits are not paid out on cessation of employment, Mr Thomas was also not eligible for long service leave upon termination. The
Options and Rights amount for Mr Thomas is negative as this relates to the reversal of the previously recognised expense associated with 242,822
performance rights accumulated in FY18 & FY19 which were forfeited upon resignation.
(viii) Mr Gula was appointed as Chief Operating Officer on 19 December 2019.
(ix) Mr Massey resigned as Chief Financial Officer effective from 1 July 2019. The Annual and Long Service Leave amount for Mr Massey is negative due to the
accrual being inclusive of superannuation benefits however superannuation benefits are not paid out on cessation of employment.
48 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Table 5: Voluntary information – Non-IFRS – Remuneration received by executives for the year ended 30 June 2021
The amounts disclosed below as executive KMP remuneration for 2021 reflect the realised benefits received by each KMP during the
reporting period. The remuneration values disclosed below have been determined as follows:
Fixed remuneration
Fixed remuneration includes base salaries received, payments made to superannuation funds, the taxable value of non-monetary benefits
received and any once-off payments such as sign-on bonuses or termination benefits. See Table 1 above for details. Fixed remuneration
excludes any accruals of annual or long service leave.
Short-term incentives
The cash STI benefits represent the bonuses that were awarded to each KMP in relation to the prior financial year and were paid in the
current financial year. The value of vested performance rights was determined based on a 5-day VWAP including the date of issue. These
performance rights are in relation to the 2019 financial year and were issued in July 2020.
Long-term incentives
There were no LTI performance rights awarded during the year.
Fixed
Awarded STI
Awarded STI
Remuneration
$
(cash)
$
$
(shares)
Awarded LTI
Total Value
Director
Executive directors
J Beyer
Other executives
S Gula
J Latto
793,234
193,426
166,299
533,719
441,739
59,154
93,130
-
-
Total executive KMP
1,768,692
345,710
166,299
Non-executive directors
719,415
-
-
Total KMP remuneration
2,488,107
345,710
166,299
$
-
-
-
-
-
-
$
1,152,959
592,873
534,869
2,280,701
719,415
3,000,116
The amounts disclosed above are not the same as the remuneration expensed in relation to each KMP in accordance with the accounting
standards ($3,983,075 for 2021, see Table 1 above). The directors believe that the remuneration received is more relevant to users for
the following reasons:
• The statutory remuneration expensed is based on fair value determined at grant date but does not reflect the fair value of the equity
instruments when they are actually received by the KMPs.
• The statutory remuneration shows benefits before they are actually received by the KMPs, noting that some components of the
remuneration may not be received at all.
• Share-based payment awards are treated differently under the accounting standards depending on whether the performance
conditions are market conditions (no reversal of expense) or non-market conditions (reversal of expense where shares fail to vest),
even though the benefit received by the KMP is the same (nil where equity instruments fail to vest).
The accuracy of information in this section has been audited together with the rest of the remuneration report.
Regis Resources Limited | Annual Report 2021 49
Remuneration Report (Audited) Table 6: Rights and options over equity instruments granted as compensation
All rights and options refer to rights and options over ordinary shares of Regis Resources Limited, which are exercisable on a one-for-one
basis.
There were no options granted to KMPs as compensation during the current year.
Performance rights that were granted as compensation to each KMP during the current year and in previous years and which have vested
during or remain outstanding at the end of the year are provided as follows:
Rights
Granted
Fair Value at
Number of rights to
year
year
% Vested
% Forfeited
during the
during the
Incentives
Grant Date
Grant Date
Test Date
J Beyer
J Latto
S Gula
Short Term Incentives
12 month service
26 Nov 19
$4.51
1 Jul 20
30,890
-
-
100%
condition
12 month service
25 Nov 20
$3.67
1 Jul 21
37,816
18,208
11,565
-
condition(i)
Long Term Incentives
Relative TSR
Absolute TSR
23 Nov 18
23 Nov 18
Earnings per share
23 Nov 18
Ore reserves
McPhillamys
Rosemont
Underground
Relative TSR
Absolute TSR
23 Nov 18
23 Nov 18
23 Nov 18
26 Nov 19
26 Nov 19
Earnings per share
26 Nov 19
Ore reserves
McPhillamys
26 Nov 19
26 Nov 19
Production growth
26 Nov 19
Relative TSR
Ore reserves
McPhillamys
25 Nov 20
25 Nov 20
25 Nov 20
$0.77
$0.83
$3.89
$3.89
$3.89
$3.89
$1.73
$1.05
$4.17
$4.17
$4.17
$4.17
$1.85
$3.43
$3.43
30 Jun 21
32,153
30 Jun 21
32,153
30 Jun 21
24,115
30 Jun 21
24,115
30 Jun 21
24,115
30 Jun 21
24,115
-
-
-
-
-
-
30 Jun 22
25,887
11,669
30 Jun 22
25,887
11,669
30 Jun 22
19,415
30 Jun 22
19,415
30 Jun 22
19,415
30 Jun 22
19,414
8,751
8,751
8,751
8,752
-
-
-
-
-
-
-
-
-
-
-
-
0%
0%
0%
98%
50%
100%
-
-
-
-
-
-
30 Jun 23
77,177
27,831
33,675
30 Jun 23
38,588
13,915
16,838
30 Jun 23
38,588
13,915
16,838
513,258
132,212
78,916
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Value of rights granted during the year
$546,196 $107,513
$91,814
(i) 50% of the STI’s for the year ended 30 June 2020 was paid in performance rights which vested 12 months after the end of the financial year.
In relation to the performance rights granted in November 2018, the three year performance period during which the performance rights
were tested ended on 30 June 2021. Any performance rights which did not vest lapsed after testing. There is no re-testing of performance
rights. In relation to the performance rights granted in November 2019 and November 2020, there is a three year performance period
which ends on 30 June 2022 and 30 June 2023, respectively.
In addition to a continuing employment service condition, vesting of the performance rights is conditional upon the Group achieving
certain performance hurdles. Details of the performance criteria are included in the long-term incentives discussion on page 41.
The value of rights granted during the year is the fair value of the rights calculated at grant date. The total value of the rights granted is
included in the table above. This amount is allocated to remuneration over the vesting period (i.e. in years 1 July 2020 to 30 June 2023).
90,767 performance rights vested during the year.
50 Regis Resources Limited | Annual Report 2021
Remuneration Report (Audited) Table 7: Rights and options over equity instruments
The movement during the reporting period, by number of options and performance rights over ordinary shares in the Company held,
directly, indirectly or beneficially, by each key management person, including their related parties, is as follows:
Held at start
of period
Held at end
of period
Vested at 30 June 2021
Granted as
Net change
30 June
Not
1 July 2020
remuneration
Exercised
other
2021
Total
Exercisable
exercisable
Rights
J Beyer
J Latto
S Gula
321,089
192,169
(30,890)
58,343
-
73,869
78,915
-
-
-
-
-
482,368
59,877
59,877
132,212
78,915
-
-
-
-
-
-
-
There were no options granted to KMPs during the year.
Table 8: 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 KMP, including their related parties, is as follows:
Held at
On exercise of
Net change
Held at
1 July 2020
options/rights
other
30 June 2021
Non-executive directors
J Mactier
F Morgan
S Scudamore
L Burnett
R Barwick
Executive directors
J Beyer
Other executives
S Gula
J Latto
Total
45,000
510,780
13,813
6,000
-
29,000
2,000
-
606,593
-
-
-
-
-
-
-
-
-
21,234
18,410
20,671
9,897
5,000
66,234
529,190
34,484
15,897
5,000
51,605
80,605
2,692
-
4,692
-
129,509
736,102
Unless stated otherwise, “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
For the year ended 30 June 2021, services totalling $529,793 (2020: $173,965) have been provided on normal commercial terms to the
Group by Mintrex Pty Ltd (“Mintrex”), of which Mrs Morgan is Managing Director, Chief Executive Officer and a shareholder. The Company
engaged Mintrex during the financial year to engineer feasibility level plant designs for the McPhillamys Gold Project. Mrs Morgan and
Mintrex have structured their management of this engineering project to ensure she has no involvement in the control or direction of the
work. The balance outstanding at 30 June 2021 was $22,530, exclusive of GST.
Other than the ordinary accrual of personnel expenses at balance date and transactions disclosed above, 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 James Mactier
Non-Executive Chairman
Perth, 30 August 2021
Regis Resources Limited | Annual Report 2021 51
Remuneration Report (Audited) Auditor’s Independence Declaration
52 Regis Resources Limited | Annual Report 2021
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Regis Resources Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Regis Resources Limited for the financial year ended 30 June 2021 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 30 August 2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Regis Resources Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Regis Resources Limited for the financial year ended 30 June 2021 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 30 August 2021 Financial Statements
Consolidated Statement of Comprehensive Income
54
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
55
56
57
58
93
94
Regis Resources Limited | Annual Report 2021 53
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2021
Revenue
Cost of goods sold
Gross profit
Other income/(expenses)
Investor and corporate costs
Personnel costs
Share-based payment expense
Occupancy costs
Other corporate administrative expenses
Impairment of non-current assets
Finance costs
Profit before tax
Income tax expense
Profit from continuing operations
Profit attributable to members of the parent
Other comprehensive income
Other comprehensive (loss)/income for the period, net of tax
Total comprehensive income for the period
Note
2
3
2
24
12
18
5
Consolidated
2021
$’000
2020
$’000
819,162
756,657
(582,659)
(452,011)
236,503
304,646
(402)
(1,365)
(4,687)
(10,674)
(3,934)
(767)
(770)
(610)
(2,265)
212,394
(66,196)
146,198
146,198
(3,408)
(10,062)
(144)
(245)
(1,052)
(1,686)
(2,024)
284,660
(85,143)
199,517
199,517
-
-
146,198
199,517
Total comprehensive income attributable to members of the parent
146,198
199,517
Basic earnings per share attributable to ordinary equity holders of the parent
(cents per share)
Diluted earnings per share attributable to ordinary equity holders of the parent
4
4
26.37
39.26
26.32
39.18
(cents per share)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
54 Regis Resources Limited | Annual Report 2021
Consolidated Balance Sheet
As at 30 June 2021
Consolidated
2021
$’000
Note
Current assets
Cash and cash equivalents
Receivables
Inventories
Financial assets
Other current assets
Total current assets
Non-current assets
Inventories
Property, plant and equipment
Exploration and evaluation assets
Mine properties under development
Mine properties
Intangible assets
Right-of-use assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Income tax payable
Provisions
Lease liabilities
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Long term borrowings
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained profits
Total equity
7
8
9
19
9
10
12
13
14
11
16
17
11
23
18
17
11
21
21
2020
$’000
192,428
7,799
74,430
270
2,778
242,627
14,832
161,475
183
4,398
423,515
277,705
185,643
335,618
491,702
18,655
794,640
2,688
60,704
63,503
261,676
230,260
2,188
275,939
2,572
38,034
1,889,650
874,172
2,313,165
1,151,877
151,348
325
5,975
24,481
182,129
113,624
293,821
103,921
35,365
546,731
728,860
74,181
7,471
3,994
15,856
101,502
117,408
-
75,845
22,041
215,294
316,796
1,584,305
835,081
1,095,533
435,145
35,157
453,615
1,584,305
31,223
368,713
835,081
The above balance sheet should be read in conjunction with the accompanying notes.
Regis Resources Limited | Annual Report 2021 55
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Note
Issued
capital
$’000
435,145
-
-
-
-
-
Consolidated
Share-based
Financial
Retained profits/
payment
assets
(accumulted
reserve
reserve
$’000
29,506
$’000
1,717
-
-
-
3,934
-
-
-
-
-
-
-
-
-
-
-
-
losses)
$’000
Total
equity
$’000
368,713
835,081
146,198
146,198
-
-
146,198
146,198
-
3,934
(61,296)
(61,296)
-
-
-
10,206
659,776
(9,594)
At 1 July 2020
Profit for the period
Other comprehensive income
Total other comprehensive income for
the year, net of tax
Total comprehensive income for
the year, net of tax
Transactions with owners in their capacity as owners:
Share-based payments expense
Dividends paid
Dividends reinvested
Issued capital
24
6
10,206
21
659,776
Shares issue transaction costs
(9,594)
At 30 June 2021
1,095,533
33,440
1,717
453,615
1,584,305
At 1 July 2019
Profit for the period
Other comprehensive income
Total other comprehensive income for
the year, net of tax
Total comprehensive income for
the year, net of tax
Transactions with owners in their capacity as owners:
Share-based payments expense
Dividends paid
24
6
Shares issued, net of transaction costs
At 30 June 2020
434,880
29,362
1,717
250,505
716,464
-
-
-
-
-
265
435,145
-
-
-
144
-
-
-
-
-
-
-
-
199,517
199,517
-
-
199,517
199,517
-
144
(81,309)
(81,309)
-
265
29,506
1,717
368,713
835,081
The above statement of changes in equity should be read in conjunction with the accompanying notes.
56 Regis Resources Limited | Annual Report 2021
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from gold sales
Payments to suppliers and employees
Interest received
Interest paid
Proceeds from rental income
Income tax paid
Net cash from operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Payments for exploration and evaluation
Note
7
Consolidated
2021
$’000
2020
$’000
790,619
755,791
(435,767)
(348,923)
459
(1,900)
-
(77,125)
276,286
1,007
(1,105)
35
(63,792)
343,013
(21,139)
(51,135)
38
21
(43,899)
(37,118)
Payments for acquisition of assets (net of cash acquired)
22
(885,001)
Payments for acquisition of exploration assets
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
Net proceeds from borrowings
Payment of lease liabilities
Net cash generated/(used) in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
(1,036)
(8,050)
(129,598)
-
(21,281)
(57,307)
(77,524)
(1,088,685)
(244,344)
650,026
(9,594)
(51,089)
293,652
(20,397)
862,598
50,199
192,428
242,627
279
(14)
(81,309)
-
(13,894)
(94,938)
3,731
188,697
192,428
21
6
18
7
The above statement of cash flows should be read in conjunction with the accompanying notes.
Regis Resources Limited | Annual Report 2021 57
Notes To The Financial Statements
Basis of preparation
Performance for the year
1. Segment Information
2. Revenue and Other Income
3. Expenses
4. Earnings per Share
5. Current Income Tax
6. Dividends
7. Cash and Cash Equivalents
Operating assets and liabilities
8. Receivables
9. Inventories
10. Property, Plant and Equipment
11. AASB 16 Leases
12. Exploration and Evaluation Assets
13. Mine Properties under Development
14. Mine Properties
15. Impairment of Non-Financial Assets
16. Trade and Other Payables
17. Provisions
59
60
60
62
63
64
65
65
66
67
67
67
68
69
71
72
73
75
75
76
Capital structure, financial instruments and risk
18. Net Debt and Finance Costs
19. Financial Assets
20. Financial Risk Management
21. Issued Capital and Reserves
Other disclosures
22. Tropicana Gold Project Asset Acquisition
23. Deferred Income Tax
24. Share-based Payments
25. Related Parties
26. Parent Entity Information
27. Commitments
28. Contingencies
29. Auditor’s Remuneration
30. Subsequent Events
31. New Accounting Standards and Interpretations
77
77
78
78
81
82
82
83
85
89
90
91
91
91
91
92
58 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements
For the year ended 30 June 2021
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 2
516 Hay 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 30 August 2021.
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 Instrument 2016/191;
• 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 2020. Refer to Note 31 for further details;
• does not early adopt Accounting Standards and Interpretations that have been issued or amended but are not yet effective. Refer to
Note 31 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 25.
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.
Regis Resources Limited | Annual Report 2021 59
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
Note 9
Note 12
Note 14
Note 15
Note 17
Note 23
Note 24
Expenses
Inventories
Exploration and evaluation assets
Mine properties
Impairment
Provisions
Deferred income tax
Share-based payments
Page 63
Page 67
Page 71
Page 73
Page 75
Page 76
Page 83
Page 85
The 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 risk;
• Other disclosures.
A brief explanation is included under each section.
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 Chief Executive Officer and
Managing Director and his executive management team (the chief operating decision makers). The Group has three reportable segments
which comprise the Duketon Gold Project; being Duketon North Operations (“DNO”), currently comprising Moolart Well, Gloster, Anchor,
Dogbolter-Coopers and Petra open-pits, and Duketon South Operations (“DSO”), currently incorporating Garden Well (open-pit and
underground), Rosemont (open-pit and underground), Erlistoun, Tooheys Well and Baneygo open-pits. During the period, Regis acquired
a 30% interest in the Tropicana Gold Project. Tropicana is operated by joint venture partner AngloGold Ashanti Australia Limited and
comprises the Tropicana, Havana and Boston Shaker open-pits and the Boston Shaker underground.
Unallocated items comprise corporate administrative costs (including personnel costs, share based payments, occupancy costs and
investor and corporate costs), interest revenue, finance costs, net gains and losses on derivatives, exploration and evaluation assets
relating to areas of interest where an economically recoverable reserve is yet to be delineated, cash, derivative assets and income tax
assets.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, conduct exploration
and evaluation activities (excluding Tropicana due to it being managed by the joint venture partner) and develop mine properties.
60 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 1.
Segment Information (continued)
The following table presents financial information for reportable segments for the years ended 30 June 2021 and 30 June 2020:
Duketon North
Duketon South
Operations
Operations
Tropicana(i)
Unallocated
Total
Continuing
Operations
2021
$’000
2020
$’000
2021
$’000
2020
$’000
2021
$’000
2020
2021
$’000
$’000
2020
$’000
2021
$’000
2020
$’000
Segment revenue
Sales to external
customers
186,507 203,384 590,396 552,407
41,932
Other revenue
-
-
-
-
-
Total segment
revenue
186,507 203,384 590,396 552,407
41,932
Total revenue per
the statement of
comprehensive
income
Interest expense
431
84
668
931
780
Impairment of
non-current
assets
Depreciation and
-
-
amortisation
38,837
17,837 128,152
89,619
21,641
Depreciation
capitalised
Total depreciation
and amortisation
recognised in
the statement of
comprehensive
income
Segment result
Segment net
operating profit/
-
-
-
-
-
-
-
327
-
818,835
755,791
866
327
866
327
866
819,162
756,657
819,162
756,657
21
90
1,900
1,105
610
1,686
610
1,686
1,131
1,155
189,761
108,611
(712)
(288)
189,049
108,323
(loss) before tax
52,690
78,877 174,634 223,402
6,152
-
(21,082)
(17,619)
212,394
284,660
Segment assets
Segment assets
at balance date
118,826 110,192 574,472 551,479 1,043,360
576,507
490,206
2,313,165
1,151,877
Capital
expenditure for
the year
40,902
23,958 103,462 131,986
15,447(ii)
49,533
45,164
209,344
201,108
(i)
Includes two months of P&L activity from 30 April 2021;
(ii) Excludes balances acquired on 30 April 2021 (refer Note 22).
Regis Resources Limited | Annual Report 2021 61
Notes to the Financial Statements (continued) For the year ended 30 June 2021 2.
Revenue and Other Income
Accounting Policies
Gold sales
The Group recognises revenue from gold sales when it satisfies the performance obligation of transferring control of gold inventory to
the customer. The Group’s assessment is that this generally occurs when the sales contract has been entered into and the customer has
physical possession of the gold, as this is the point at which the customer obtains the ability to direct the use and obtains substantially all
of the remaining benefits of ownership of the asset. The transaction price is determined based on the agreed upon price and the number
of ounces delivered. Payment is due upon delivery into the sales contract.
Interest
Interest income from cash at bank is recognised as it accrues using the effective interest method.
Revenue
Gold sales
Interest
Gold Forward Contracts
Consolidated
2021
$’000
2020
$’000
818,835
755,791
327
866
819,162
756,657
As part of the risk management policy, the Group has entered 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.
Open contracts at balance date are summarised in the table below:
Gold for physical
Contracted gold
Value of
delivery
sale price
committed sales
Mark-to-market
Continuing Operations
ounces
ounces
2021
2020
2021
$/oz
2020
$/oz
2021
$’000
2020
$’000
2021
$’000
2020
$’000
Within one year:
- Flat forward contracts
100,000
-
1,571
-
157,114
-
(79,142)
-
- Spot deferred contracts
-
399,494
-
1,614
-
644,716
-
(388,179)
Later than one year but not
later than five years:
- Flat forward contracts
220,000
-
1,571
-
345,651
-
(176,131)
-
320,000
399,494
502,765
644,716
(255,273)
(388,179)
Mark-to-market has been calculated with reference to the following spot price at period end
$2,362/oz
$2,586/oz
Other income/(expenses)
Rehabilitation provision adjustment
Rental income
Exploration rent refunds
Other income
Other expenses
62 Regis Resources Limited | Annual Report 2021
Consolidated
2021
$’000
(534)
50
-
68
14
(402)
2020
$’000
(210)
35
25
-
(1,215)
(1,365)
Notes to the Financial Statements (continued)For the year ended 30 June 2021 3.
Expenses
Accounting Policies
Cash costs of production
Cash costs of production is a component of cost of goods sold and includes 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(i)
Amortisation of mine properties(i)
Depreciation
Consolidated
2021
$’000
2020
$’000
355,220
306,744
38,791
71,016
117,632
582,659
37,361
50,626
57,280
452,011
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 run of mine ore included in the life of mine plan for 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 assets is charged to the statement of comprehensive income 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
• Buildings and infrastructure: 3 – 10 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 run of mine ore included in the life of mine plan for the mine
concerned.
Depreciation and amortisation
Depreciation expense(i)
Amortisation expense(i)
Less: Amounts capitalised to exploration projects
Consolidated
2021
$’000
72,129
117,632
(712)
2020
$’000
51,331
57,280
(288)
Depreciation and amortisation charged to the statement of comprehensive income
189,049
108,323
(i) The increase in depreciation and amortisation charges was predominantly a result of an increase in the underlying Mine Properties assets (Refer Note 14),
the Rosemont Underground operations being in commercial production for the full year and the addition of assets associated with the Company’s interest
in the Tropicana Gold Project.
Key estimates and assumptions
Unit-of-production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets which results in a
depreciation/amortisation charge proportionate to the depletion of the anticipated run of mine ore 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.
Regis Resources Limited | Annual Report 2021 63
Notes to the Financial Statements (continued) For the year ended 30 June 2021 3.
Expenses (continued)
Employee benefits expense
Wages and salaries
Defined contribution superannuation expense
Share-based payments expense
Employee bonuses
Other employee benefits expense
Less: Amounts capitalised to projects
Employee benefits expense recognised in the statement of
comprehensive income
4.
Earnings per Share
Accounting Policy
Note
24
Consolidated
2021
$’000
2020
$’000
48,985
47,381
4,580
3,934
869
3,161
61,529
(8,686)
4,410
144
1,072
3,979
56,986
(9,628)
52,843
47,358
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 and performance
rights on issue.
Earnings used in calculating EPS
Net profit attributable to ordinary equity holders of the parent
146,198
199,517
Consolidated
2021
$’000
2020
$’000
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
Performance rights
No. shares
No. shares
(’000s)
(’000s)
508,180
46,233
554,413
-
990
507,869
296
508,165
97
926
Weighted average number of ordinary shares adjusted for the effect of dilution
555,403
509,188
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.
64 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 5.
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
Deferred income tax
Relating to the origination and reversal of temporary differences
Income tax expense 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 fol-lows:
Accounting profit before income tax
At the Group’s statutory income tax rate of 30% (2020: 30%)
Share-based payments
Other non-deductible items
Adjustment in respect of income tax of previous years
Deductible equity raising costs
Consolidated
2021
$’000
2020
$’000
65,941
59,038
255
66,196
26,105
85,143
212,394
63,718
1,180
6
1,292
-
284,660
85,398
4
43
(301)
(1)
Income tax expense reported in the statement of comprehensive income
66,196
85,143
6.
Dividends
Declared and paid during the year:
Dividends on ordinary shares
Final franked dividend for 2020: 8 cents per share (2019: 8 cents per share)
Interim franked dividend for 2021: 4 cents per share (2020: 8 cents per share)
Consolidated
2021
$’000
2020
$’000
40,814
20,482
61,296
40,654
40,654
81,308
Proposed by the directors after balance date but not recognised as a liability at 30 June:
Dividends on ordinary shares
Final dividend for 2021: 3 cents per share (2020: 8 cents per share)
22,624
40,668
Dividend franking account
Amount of franking credits available to shareholders of Regis Resources Limited for
subsequent financial years
101,391
61,321
The ability to utilise the franking credits is dependent upon the ability to declare dividends.
Regis Resources Limited | Annual Report 2021 65
Notes to the Financial Statements (continued) For the year ended 30 June 2021 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 2021, the Group had no undrawn, committed borrowing facilities available (2020: nil). Refer to Note 18.
Cash and cash equivalents in the balance sheet and cash flow statement
Cash at bank and on hand
Consolidated
2021
$’000
242,627
242,627
2020
$’000
192,428
192,428
Restrictions on Cash
The Group is required to maintain a minimum cash balance of $50 million in its Proceeds Account with Macquarie Bank Limited.
The Group is required to maintain $504,000 (2020: $503,000) on deposit to secure bank guarantees in relation to the Perth office leases
and two office leases in NSW. The amount will be held for the term of the lease.
Note
15
17
Consolidated
2021
$’000
2020
$’000
146,198
199,517
610
365
(21)
-
-
3,934
534
1,686
919
130
-
(25)
144
210
189,049
108,323
(1,084)
(58,076)
(1,479)
(7,145)
7,229
(3,783)
(45)
(751)
3,409
(552)
(4,754)
3,498
26,105
5,154
276,286
343,013
Reconciliation of profit after income tax to net cash inflow from operating activities
Net profit for the year
Adjustments for:
Impairment of non-current assets
Unwinding of discount on provisions
Loss on disposal of assets
Unrealised (loss)/gain on derivatives
Rent refunds
Share-based payments
Rehabilitation provision adjustment
Depreciation and amortisation
Changes in assets and liabilities
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in other current assets
Increase/(decrease) in income tax payable
Increase/(decrease) in trade and other payables
Increase/(decrease) in deferred tax liabilities
Increase/(decrease) in provisions
Net cash from operating activities
66 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 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 77.
8.
Receivables
Accounting Policy
Receivables are initially recognised at fair value and subsequently at the amounts considered receivable (financial assets at amortised
cost). Balances within receivables do not contain impaired assets, are not past due and are expected to be received when due.
Trade receivables include $3.4 million in relation to gold sales made on 30 June 2021. The only other material receivables at year end are
for GST and fuel tax credits receivable from the Australian Taxation Office and therefore, the Group’s exposure to credit risk in relation to
its receivables is not material.
Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value.
Current
Gold awaiting settlement
GST receivable
Fuel tax credit receivable
Security deposits for land acquisition
Interest receivable
Dividend trust account
Other receivables
9.
Inventories
Accounting Policy
Consolidated
2021
$’000
3,402
6,804
2,730
160
14
698
1,024
14,832
2020
$’000
-
4,819
1,959
100
28
619
274
7,799
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
2021
$’000
106,854
32,427
8,726
13,468
161,475
2020
$’000
48,545
13,759
8,601
3,525
74,430
185,643
63,503
At 30 June 2021, a portion of Dogbolter, Moolart Well, Erlistoun and Tooheys Well ore stockpiles were written back to net realisable value
resulting in an expense totalling $4,346,000 being recognised in cost of goods sold. All other inventories were carried at cost.
At 30 June 2020, all inventories were carried at cost except for a portion of Rosemont ore stockpiles written back to net realisable value
resulting in an expense totalling $115,000 being recognised in cost of goods sold.
Regis Resources Limited | Annual Report 2021 67
Notes to the Financial Statements (continued) For the year ended 30 June 2021 9.
Inventories (continued)
Key estimates and assumptions
Inventories
Net realisable value tests are performed at each reporting date and represent the estimated forecast sales price of the gold
when it’s expected to be realised, 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.
10. 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.
Freehold
Leasehold
Plant &
Furniture &
Buildings &
Capital
Consolidated
Net carrying amount at 1 July 2020
52,027
Acquisition – Tropicana Gold Project
$’000
(Refer Note 22)
Additions
Depreciation expense
Transfers between classes
Rehabilitation provision adjustments
Disposals
-
3,379
-
-
-
-
Land
Improvements
Equipment
Equipment
Infrastructure
$’000
804
-
4
$’000
84,472
95,598
4,423
$’000
1,364
564
379
$’000
WIP
$’000
Total
$’000
92,397
30,612
261,676
11,403
2,635
110,200
2,377
8,140
18,702
(254)
(20,892)
(530)
(33,354)
-
(55,030)
-
-
-
485
35
(49)
17
-
(2)
29,793
(30,295)
86
-
-
-
(0)
121
(51)
Net carrying amount at 30 June 2021
55,406
554
164,072
1,792
102,702
11,092
335,618
At 30 June 2021
Cost
55,406
1,882
370,752
4,410
219,536
11,092
663,078
Accumulated depreciation
-
(1,328)
(206,680)
(2,618)
(116,834)
-
(327,460)
Net carrying amount
55,406
554
164,072
1,792
102,702
11,092
335,618
Net carrying amount at 1 July 2019
45,044
Additions
6,983
Depreciation expense
Transfers between classes
Rehabilitation provision adjustments
Disposals
-
-
-
-
1,078
25
93,786
8,943
(299)
(22,062)
-
-
-
2,185
1,770
(150)
1,070
74,499
27,511
242,988
287
(407)
414
-
-
16,817
21,989
55,044
(19,811)
-
(42,579)
16,289
(18,888)
-
4,603
-
-
-
6,373
(150)
Net carrying amount at 30 June 2020
52,027
804
84,472
1,364
92,397
30,612
261,676
At 30 June 2020
Cost
52,027
1,878
272,506
3,456
183,337
30,612
543,816
Accumulated depreciation
-
(1,074)
(188,034)
(2,092)
(90,940)
(282,140)
Net carrying amount
52,027
804
84,472
1,364
92,397
30,612
261,676
68 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 11. AASB 16 Leases
Accounting Policy
The nature of the Group’s leasing activities includes service contracts for mining services, drilling, haulage, and power generation
contracts. Additionally, office leases and office equipment have also been included.
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Group uses the definition of a lease in AASB 16.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by
the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the
lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use
asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of
the following lease payments:
•
Fixed payments (including in-substance fixed payments), less any lease incentives receivable.
• Variable lease payments that are based on an index or a rate.
• Amounts expected to be payable by the lessee under residual value guarantees.
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option.
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental
borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value
in a similar economic environment with similar terms and conditions.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future
lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable
under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination
option or if there is a revised in-substance fixed lease payment.
Right-of-use assets are measured at cost comprising the following:
•
The amount of the initial measurement of the lease liability.
• Any lease payments made at or before the commencement date less any lease incentives received.
• Any initial direct costs.
• Any restoration costs.
The right-of-use asset is subsequently depreciated using the straight-line method. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for remeasurements of the lease liability.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in
profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are assets with a replacement value
of less than $5,000.
Lease liability recognised
Comprising:
Current
Non-current
Consolidated
As at
As at
30 June 2021
1 July 2020
$’000
$’000
24,481
35,365
59,846
15,856
22,041
37,897
Regis Resources Limited | Annual Report 2021 69
Notes to the Financial Statements (continued) For the year ended 30 June 2021 11. AASB 16 Leases (continued)
Right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments relating to that lease recognised in the balance sheet as at 30 June 2021.
Consolidated
As at
As at
30 June 2021
1 July 2020
Plant & equipment
Furniture & equipment
Buildings & infrastructure
Total right-of-use assets
Right-of-Use Assets
Balance at 1 July 2020
Depreciation charge for the year
Additions to right-of-use assets
Acquisition of right-of-use assets –
Tropicana Gold Project
Balance at 30 June 2021
Balance at 1 July 2019
Depreciation charge for the year
Additions to right-of-use assets
Balance at 30 June 2020
Amounts Recognised in Profit or Loss
Leases under AASB 16
Interest on lease liabilities
Expenses relating to short-term leases
$’000
41,532
49
19,123
60,704
Note
22
Consolidated
Plant &
Furniture &
Buildings &
Equipment
Equipment
Infrastructure
$’000
24,249
(12,780)
7,481
22,582
41,532
18,256
(7,555)
13,548
24,249
$’000
57
(58)
50
-
49
125
(68)
-
57
$’000
13,728
(5,574)
3,047
7,922
19,123
15,114
(5,003)
3,617
13,728
Consolidated
2021
$’000
1,235
44
$’000
24,249
57
13,728
38,034
Total
$’000
38,034
(18,412)
10,578
30,504
60,704
33,945
(12,625)
17,165
38,034
2020
$’000
1,068
63
The majority of the Group’s service contracts that contain leases are structured as variable payments, which are not included in the
measurement of lease liabilities under AASB 16. Variable lease payments for the year ended 30 June 2021 totalled $348,903,103(i)
(2020: $326,776,000).
Amounts Recognised in Statement of Cash Flows
Total cash outflow for leases under AASB 16
(i)
Includes non-lease components such as labour.
Consolidated
2021
$’000
20,397
2020
$’000
13,894
70 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 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 exploration & evaluation assets – Tropicana
Acquisition of tenements(i)
Impairment
Transferred to mine properties under development
Balance at 30 June
Note
22
15
13
Consolidated
2021
$’000
230,260
46,509
213,300
10,648
(610)
(8,405)
491,702
2020
$’000
185,748
37,326
-
21,402
(1,686)
(12,530)
230,260
(i) On 2 September 2020 the Company acquired a resource and tenement package from Brightstar Resources Limited (ASX: BTR), formerly Stone Resources
Australia Limited (ASX: SHK), for $9.75 million in Regis shares and a cash consideration of $0.25 million.
Impairment
Exploration and evaluation assets are assessed for impairment if (i) the period for which the right to explore in the area has expired
during the period or will expire in the near future, and is not expected to be renewed, (ii) substantive expenditure on further exploration
for and evaluation of mineral resources is neither budgeted nor planned, (iii) sufficient data exists to determine technical feasibility and
commercial viability and (iv) 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
Duketon North Operations
Duketon South Operations
Duketon Gold Project satellite deposits
Regional WA exploration
NSW exploration
Tropicana Gold Project
20,631
54,310
12,539
41,437
148,259
214,526
491,702
15,796
31,952
8,408
37,841
136,263
-
230,260
Key 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
wheth-er 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.
Regis Resources Limited | Annual Report 2021 71
Notes to the Financial Statements (continued) For the year ended 30 June 2021 12. Exploration and Evaluation Assets (continued)
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
2021
$’000
2,686
2020
$’000
1,906
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 run of mine ore included in the life of mine plan to which they relate or are written off if the
mine property is abandoned. Any proceeds from sales in the pre-production phase is deducted from the cost of the asset.
Balance at beginning of period
Pre-production expenditure capitalised
Transferred from exploration
Transferred to inventory
Transferred to mine properties
Balance at end of period
Note
12
14
Consolidated
2021
$’000
2,188
8,062(ii)
8,405
-
-
18,655
2020
$’000
44,163
45,649(i)
12,530
(9,427)
(90,727)(i)
2,188
(i) Costs associated with Dogbolter-Coopers, Petra, Baneygo and Rosemont Underground net of $21.2 million in pre-production sales.
(ii) Costs associated with Garden Well Underground.
72 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 Notes to the Financial Statements (continued)
For the year ended 30 June 2021
14. Mine Properties
Accounting Policies
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 run of mine ore included in the life of mine plan 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 run of mine
ore included in the life of mine plan), on a unit of production basis. The unit of account is tonnes of ore mined.
Capital development costs
Costs associated with extraction of waste material in order to gain access to the ore at underground mining operations are considered
capital development costs. Capital development costs are stated at cost, less accumulated amortisation and accumulated impairment
losses.
The capital development asset is amortised over the expected recoverable ounces of the mine concerned. The unit of account is ounces
recovered.
Other mine properties
Other mine properties represent 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.
Regis Resources Limited | Annual Report 2021 73
14. Mine Properties (continued)
Other mine properties are amortised on a unit-of-production basis over the run of mine ore included in the life of mine plan of the mine
concerned. The unit of account is tonnes of ore milled.
Net carrying amount at 1 July 2020
Additions
Acquisition – Tropicana Gold Project
(Note 22)
Transfers from pre-production
Rehabilitation provision adjustment
Amortisation expense
Net carrying amount at 30 June 2021
At 30 June 2021
Cost
Accumulated amortisation
Net carrying amount
Net carrying amount at 1 July 2019
Additions
Transfers from pre-production
Rehabilitation provision adjustment
Amortisation expense
Net carrying amount at 30 June 2020
At 30 June 2020
Cost
Accumulated amortisation
Net carrying amount
Production
Pre-strip
Capital
Consolidated
Stripping Costs
$’000
94,726
53,924
-
-
-
Costs
$’000
91,528
44,027
Development
$’000
35,757
29,716
Other Mine
Properties
$’000
53,928
-
Total
$’000
275,939
127,667
-
-
-
-
-
-
509,338
509,338
-
(672)
-
(672)
(28,776)
119,874
(37,196)
98,359
(19,425)
46,048
(32,235)
(117,632)
530,359
794,640
219,912
(100,038)
119,874
60,673
47,009
7,760
-
(20,716)
94,726
165,988
(71,262)
94,726
233,705
(135,346)
98,359
82,080
16,080
21,608
-
(28,240)
91,528
189,678
(98,150)
91,528
65,949
(19,901)
46,048
-
2,573
33,660
-
(476)
646,759
1,166,325
(116,400)
(371,685)
530,359
794,640
24,960
167,713
-
27,699
9,117
65,662
90,727(i)
9,117
(7,848)
(57,280)
35,757
53,928
275,939
36,233
(476)
35,757
138,093
529,993
(84,165)
(254,054)
53,928
275,939
(i) Costs associated with Dogbolter-Coopers, Petra, Baneygo and Rosemont Underground net of $21.2 million in pre-production sales.
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.
74 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 15.
Impairment of Non-Financial Assets
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 of disposal 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
Exploration and Evaluation Assets
Consolidated
2021
$’000
610
2020
$’000
1,686
Note
12
An impairment loss of $610,000 (2020: $1,686,000) has been recognised in relation to tenements that were surrendered, relinquished or
expired during the year.
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 initially recognised at the value of the invoice received from a supplier and subsequently measured at
amortised cost. 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 (including stamp duty)
Consolidated
2021
$’000
30,833
56,484
4,090
59,941
151,348
2020
$’000
30,178
28,343
3,886
11,774
74,181
Regis Resources Limited | Annual Report 2021 75
Notes to the Financial Statements (continued) For the year ended 30 June 2021 17. Provisions
Accounting Policies
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.
When 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
Long service leave
Rehabilitation
Non-current
Long service leave
Rehabilitation
Provision for rehabilitation
Balance at 1 July
Provisions raised during the year
Provisions used during the year
Provisions re-measured during the year
Unwinding of discount
Balance at 30 June
Consolidated
2021
$’000
698
252
5,025
5,975
1,453
102,468
103,921
76,985
30,364
(203)
(18)
365
107,493
2020
$’000
619
291
3,084
3,994
1,944
73,901
75,845
61,456
7,497
(1,089)
8,202
919
76,985
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.
76 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 Capital Structure, Financial Instruments and Risk
This section outlines how the Group manages its capital, related financing costs and its exposure to various financial risks. It explains how
these risks affect the Group’s financial position and performance and what the Group does to manage these risks.
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 consistently monitor future cash flows against expected expenditures. 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.
18. Net Debt and Finance Costs
The carrying amounts of the Group’s current and non-current borrowings approximate their fair value.
Current interest-bearing liabilities
Lease liabilities
Non-current interest-bearing liabilities
Lease liabilities
Secured bank loan
(i) Net of capitalised borrowing costs and interest of $6.3 million.
Interest-Bearing Liabilities
Finance costs
Interest expense
Unwinding of discount on provisions
Secured Bank Loan
Note
11
11
Consolidated
2021
$’000
24,481
24,481
35,365
293,821(i)
329,186
Consolidated
2021
$’000
1,900
365
2,265
2020
$’000
15,856
15,856
22,041
-
22,041
2020
$’000
1,105
919
2,024
During the year, the Group entered into a secured Syndicated Facility Agreement with Bank of America for the acquisition of the Tropicana
Gold Project. The terms of the facility include:
• A Syndicated Debt Facility of $300 million;
• First ranking security over the assets of Regis Resources Limited, AFB Resources Pty Ltd, AFB Resources SPV Pty Ltd, Duketon
Resources Pty Ltd and LFB Resources NL;
• Maturity of three years from Financial Close (31 May 2021);
• Bullet repayment on maturity;
• Floating interest rate (range of BBSY + 180bps to 220bps dependent on Net Leverage Ratio);
•
Interest Cover and Net Leverage Ratio financial covenants;
• Voluntary repayment can be made anytime subject to compliance with the loan agreement.
Subsequent to the end of the period, the Company worked with Bank of America to syndicate this debt to Macquarie Bank Limited, HSBC,
National Australia Bank and Westpac.
Regis Resources Limited | Annual Report 2021 77
Notes to the Financial Statements (continued) For the year ended 30 June 2021 18. Net Debt and Finance Costs (continued)
Transaction costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the
period of borrowings using the effective interest rate method.
Fees paid on establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some
or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs and amortised over the period of the
remaining facility.
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 Assets
Accounting Policy
Financial assets are initially recognised at fair value, plus transaction costs that are directly attributable to its acquisition and subsequently
measured at amortised costs or fair value depending on the business model for those assets and the contractual cash flow characteristics.
Equity Instruments
Equity instruments are normally measured at fair value through profit or loss (“FVTPL”) unless the Group chooses, on an instrument-by-
instrument basis on initial recognition, to present fair value changes in other comprehensive income (“FVOCI”). This option is irrevocable
and only applies to equity instruments which are neither held for trading nor are contingent consideration in a business combination.
Gains and losses on equity instruments measured at FVOCI are not recycled through profit and loss or disposal and there is no impairment
accounting. All gains and losses are recorded in equity through other comprehensive income.
Consolidated
2021
$’000
2020
$’000
Current
Financial assets at amortised cost – term deposit
183
270
20. Financial Risk Management
The Group holds financial instruments for the following purposes:
• Financing: to raise finance for the Group’s operations or, in the case of short-term deposits, to invest surplus funds. The principal types
of instruments used include bank loans, cash and short-term deposits.
• Operational: the Group’s activities generate financial instruments, including cash, receivables and trade payables.
• Risk management: to reduce risks arising from the financial instruments described above, including commodity swap contracts.
It is, and has been throughout the year, the Group’s policy that no speculative trading in financial instruments shall be undertaken.
The Group’s holding of these financial instruments exposes it to the following risks:
• Credit risk
• Liquidity risk
• Market risk, including foreign currency risk, interest rate risk and commodity price 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. These risks affect the fair value measurements applied by the Group. Further quantitative disclosures are
included throughout this financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Audit
Committee is responsible for developing and monitoring financial risks and the Risk, Safety, Environment and Community Committee is
responsible for developing and monitoring all other risk management policies. The committees report regularly to the Board of Directors
on their activities.
78 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 20. Financial Risk Management (continued)
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 Risk, Safety, Environment and Community 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. Credit risk
arises from cash and cash equivalents and gold bullion awaiting settlement. The Group has adopted the policy of dealing with creditworthy
counterparties as a means of mitigating the risk of financial loss from defaults. Cash holdings are with Commonwealth Bank of Australia
and Macquarie Bank Limited, Australian banks regulated by APRA with a short-term S&P rating of A-1+ and A-1 respectively. The Group
has determined that it currently has no significant exposure to credit risk as at reporting date given banks have investment grade credit
ratings.
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 risking damage to the Group’s reputation.
The Group uses 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 and meeting debt covenant compliance
which excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters and
pandemics.
The following table analyses the Group’s financial liabilities, including net and gross settled financial instruments, into relevant maturity
periods based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the
contractual undiscounted cash flows and hence will not necessarily reconcile with the amounts disclosed in the balance sheet.
30 June 2021
($’000)
Carrying
Contractual
6 mths or
More than
amount
cash-flows
less
6-12 mths
1-2 years
2-5 years
5 years
Trade and other payables
147,258
(147,258)
(147,258)
-
-
-
-
Lease liabilities
Secured bank loan
Total
59,846
(63,264)
(14,649)
(11,271)
(15,155)
(16,183)
(6,006)
293,821
(317,114)
(2,852)
(2,852)
(5,705)
(305,705)
-
500,925
(527,636)
(164,759)
(14,123)
(20,860)
(321,888)
(6,006)
30 June 2020
($’000)
Trade and other payables
Lease liabilities
Total
Assets pledged as security
Carrying
Contractual
6 mths or
More than
amount
cash-flows
less
6-12 mths
1-2 years
2-5 years
5 years
69,949
37,897
(69,949)
(69,949)
-
-
(39,288)
(8,602)
(8,389)
(14,177)
107,846
(109,237)
(78,551)
(8,389)
(14,177)
-
(8,120)
(8,120)
-
-
-
Members of the Regis Group (being Regis Resources Limited, AFB Resources Pty Ltd, AFB Resources SPV Pty Ltd, Duketon Resources
Pty Ltd and LFB Resources NL) have granted an all-asset security including guarantees in respect of amounts outstanding under the
Syndicated Facility Agreement and in respect of the Company’s hedging obligations with Macquarie Bank Limited. The Group is also
required to comply with covenants under the Common Terms Deed with Macquarie Bank Limited.
The lease liabilities are secured by the related assets. Ownership of the assets remains with the original equipment suppliers until all
contractual payments have been made.
Financial guarantee liabilities
As at 30 June 2021, the Group did not have any financial guarantee liabilities (2020: Nil).
Regis Resources Limited | Annual Report 2021 79
Notes to the Financial Statements (continued) For the year ended 30 June 2021 20. Financial Risk Management (continued)
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, commodity prices 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.
• 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.
•
Interest rate risk: The Group is exposed to interest rate risk through its borrowings and cash deposits, which attract variable interest
rates. The Group regularly reviews its current working capital requirements against cash balances and the returns available on short
term deposits.
• Commodity price risk: The Group’s exposure to commodity price risk is purely operational and arises largely from gold price fluctuations
or in relation to the purchase of inventory with commodity price as a significant input, such as diesel. The Group’s exposure to
movements in the gold price is managed through the use of gold forward contracts (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. No sensitivity analysis is provided for these contracts as they are outside
the scope of AASB 9 Financial Instruments.
Interest rate risk
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Term deposits
Lease liabilities
Variable rate instruments
Cash and cash equivalents
Secured bank loan
Consolidated
2021
$’000
183
(59,846)
(59,663)
242,627
(293,821)
(51,194)
2020
$’000
270
(37,897)
(37,627)
192,302
-
192,302
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change at
reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss before tax by the
amount shown below. The analysis assumes that all other variables remain constant.
Interest Expense
Increase 1.0%
Decrease 1.0%
Consolidated
2021
$’000
(252)
252
2020
$’000
-
-
A sensitivity analysis has not been disclosed in relation to the variable interest rate cash on deposit as the result has been determined to
be immaterial to the statement of comprehensive income for both the current and prior financial years.
80 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 20. Financial Risk Management (continued)
Fair Values
The carrying amounts and estimated fair values of all of the Group’s financial instruments recognised in the financial statements are
materially the same. The methods and assumptions used to estimate the fair value of the financial instruments are disclosed in the
respective notes.
Valuation of financial instruments
For all fair value measurements and disclosures, the Group uses the following to categorise the method used:
• Level 1: the fair value is calculated using quoted prices in active markets.
• Level 2: the fair value is estimated using inputs other than quoted prices included in Level 1, that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices). The most frequently applied valuation techniques include forward
pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates, and spot and forward rate curves of the underlying commodity.
• Level 3: the fair value is estimated using inputs for the asset or liability that are not based on observable market data. The Group does
not have any financial assets or liabilities in this category.
For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers have occurred between
Levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as
a whole) at the end of each reporting period. There were no transfers between levels during the year.
21.
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
Movement in ordinary shares on issue
At 1 July 2019
Issued on exercise of options
Transaction costs
At 30 June 2020
Issued on exercise of options
Dividend reinvestment
Issued on acquisition (Stone Resources Australia Limited)
Issued on acquisition (Tropicana 30% interest)
Transaction costs
At 30 June 2021
Consolidated
2021
$’000
2020
$’000
1,095,533
435,145
No. shares
(‘000s)
$’000
507,869
434,880
311
-
279
(14)
508,180
435,145
836
2,552
1,823
-
10,206
9,750
240,750
650,026
-
(9,594)
754,141
1,095,533
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.
Regis Resources Limited | Annual Report 2021 81
Notes to the Financial Statements (continued) For the year ended 30 June 2021
21.
Issued Capital and Reserves (continued)
Balance at 1 July 2019
Net gain on financial instruments recognised in equity
Tax effect of transfers and revaluations
Share-based payment transactions
Balance at 30 June 2020 and 1 July 2020
Net gain on financial instruments recognised in equity
Tax effect of transfers and revaluations
Share-based payment expense
Balance at 30 June 2021
Nature and Purpose of Reserves
Share-based payment reserve
Share-based
Financial
Total
payment reserve
assets reserve
Reserves
$’000
29,362
-
-
144
29,506
-
-
3,934
33,440
$’000
1,717
-
-
-
1,717
-
-
-
1,717
$’000
31,079
-
-
144
31,223
-
-
3,934
35,157
The share-based payment reserve is used to record the value of share-based payments and performance rights provided to employees,
including KMP, as part of their remuneration, as well as non-employees.
Financial assets reserve
The financial assets reserve records fair value changes on financial assets designated at fair-value through other comprehensive income.
Other Disclosures
This section provides information on items which require disclosure to comply with Australian Accounting Standards and other regulatory
pronouncements.
22. Tropicana Gold Project Asset Acquisition
During the year, Regis acquired a 30% non-operator interest in the Tropicana Gold Project located in the Albany-Fraser Belt, approximately
330 kilometres north-east of Kalgoorlie in Western Australia. Tropicana is operated by joint venture partner AngloGold Ashanti Australia
Limited and contains the Tropicana, Havana and Boston Shaker open pits and the Boston Shaker underground operation. The Tropicana
acquisition had an acquisition date for accounting purposes of 30 April 2021.
The Tropicana Joint Venture (JV) in Western Australia was formed in 2002 between AngloGold Ashanti Australia Ltd (70% and manager) and
Independence Group NL - IGO (30%) and as of 31 May 2021, Regis Resources Ltd acquired the IGO 30% stake.
Tropicana is on the western edge of the Great Sandy Desert in Western Australia, approximately 1,000 kilometres east north east of Perth.
Tropicana holds the mineral rights to approximately 2,600 square kilometres of WA exploration tenements that are held in a JV agreement
between Regis (30%) and Joint Venture manager AngloGold Ashanti Australia Limited (70%).
As at 31 December 2020, Tropicana Mineral Resources Estimate was 7.64 million ounces (100%) and 2.29 million ounces (30%). Tropicana
Ore Reserve Estimate was 2.69 million ounces (100%) and 0.81 million ounces (30%) (refer to ASX Announcement dated 15 June 2021
‘Mineral Resource and Ore Reserve Growth with the Inclusion of Tropicana’ for full details).
Cash Paid to IGO
Purchase cost (including transaction costs) at 30 April 2021
Less: Regis transaction costs
May 2021 net revenue adjustments
Cash acquired on acquisition
Payment for acquisition of assets (net of cash acquired) at 31 May 2021
$’000
947,509
(46,994)
(11,936)
(3,578)
885,001
The group has determined that the transaction does not constitute a business combination in accordance with AASB 3 Business
Combinations. The acquisition of the net assets has therefore been accounted for, as an asset acquisition. When an asset acquisition
does not constitute a business combination, the assets and liabilities are allocated a carrying amount based on their relative fair values
in an asset purchase transaction.
82 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 22. Tropicana Gold Project Asset Acquisition (continued)
The value of the assets acquired and liabilities assumed has been allocated on a Fair Value basis. Details of the purchase consideration
and the net assets acquired are as follows:
Net Assets Acquired
Cash and cash equivalents
Trade and Other Receivables
Inventory
Property Plant and Equipment
Right-of-use Asset
Exploration & Evaluation Asset
Mine Properties
Total Assets
Trade and Other Payables
Lease Liability
Rehabilitation Liabilities
Total Liabilities
Total Purchase Consideration
23. Deferred Income Tax
Accounting Policy
Note
10
11
12
14
11
17
$’000
3,578
2,332
157,346
110,200
30,504
213,300
509,338
1,026,598
(18,221)
(30,504)
(30,364)
(79,089)
947,509
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 2021 there are no unrecognised temporary differences associated with the Group’s investment in
subsidiaries (2020: $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.
Regis Resources Limited | Annual Report 2021 83
Notes to the Financial Statements (continued) For the year ended 30 June 2021 23. Deferred Income Tax (continued)
Deferred income tax at 30 June relates to the following:
Consolidated
Deferred tax liabilities
Receivables
Inventories
Borrowing costs
Prepayments
Property, plant and equipment
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
Trade and other payables
Provisions
Expenses deductible over time
Mine properties under development
Share issue costs
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
Income tax (expense)/benefit recognised in equity
2021
$’000
691
(2,022)
(119)
159
15,027
53,800
-
88,103
155,639
(42,015)
113,624
6,107
32,602
168
(4,337)
3,231
4,244
42,015
(42,015)
-
(117,408)
(255)
4,038
2020
$’000
588
8,521
-
205
23,150
39,513
-
76,799
148,776
(31,368)
117,408
1,410
23,766
3
1,222
-
4,967
31,368
(31,368)
-
(91,305)
(26,103)
-
Closing balance at 30 June – net deferred tax (liabilities)/assets
(113,624)
(117,408)
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.
84 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 23. Deferred Income Tax (continued)
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.
24. Share-based Payments
Accounting Policy
The value of options or performance rights 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 or performance rights (the vesting period),
ending on the date on which the relevant employees become fully entitled to the option or performance right (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 or performance right;
• The current best estimate of the number of options or performance rights 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.
Recognised share-based payments expense
Employee share-based payments expense
Performance rights expense
Total expense arising from share-based payment transactions
Consolidated
2021
$’000
3
3,931
3,934
2020
$’000
(91)
235
144
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 2014 Share Option Plan (the “Option Plan”). The objective of the Option
Plan is to assist in the recruitment, reward, retention and motivation of eligible persons of the Group. Under the Option Plan, the board
or Remuneration, Nomination and Diversity Committee may issue eligible employees with options to acquire shares in the future at an
exercise price fixed by the board or Remuneration, Nomination and Diversity 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 Option Plan.
Regis Resources Limited | Annual Report 2021 85
Notes to the Financial Statements (continued) For the year ended 30 June 2021 24. Share-based Payments (continued)
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
545,000
$3.9000
1,625,000
2021
No.
WAEP
2020
No.
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
-
-
-
-
(545,000)
$3.9000
-
-
-
-
-
-
Weighted average share price at the date of exercise
Weighted average remaining contractual life
Range of exercise prices
Weighted average fair value of options granted during the year
Option Pricing Model
WAEP
$3.6923
-
$3.9000
$3.4185
$1.4000
$3.9000
-
2020
$5.48
1 year
-
(400,000)
(675,000)
(5,000)
545,000
(50,000)
2021
$5.41
n/a
$3.90
$1.40 - $3.90
n/a
n/a
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. There were no new grants of employee
options during the year ended 30 June 2021 and 30 June 2020.
Performance Rights
FY19 Performance Rights
In November 2018, 373,924 performance rights were granted to the executive directors Mr Jim Beyer and Mr Paul Thomas, and other
executives, Mr Kim Massey under the Group’s Executive Incentive Plan (“EIP”).
Mr Paul Thomas resigned as COO on 30 September 2019 and 129,187 performance rights lapsed on the date of his resignation in
accordance with terms and conditions. In accordance with AASB 2, expenses recognised for Mr Paul Thomas were reversed in FY20.
Mr Kim Massey resigned on 1 July 2019 and 83,971 performance rights lapsed upon the date of the resignation in accordance with the
terms and conditions. In accordance with AASB 2, expenses recognised for Mr Kim Massey were reversed in FY19.
The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
Tranche
Weighting
Performance Conditions
Tranche A
20% of the Performance Rights
The Company’s relative total shareholder return (“TSR”) measured
against the TSR’s of 10 comparator mining companies
Tranche B
Tranche C
20% of the Performance Rights
The Company’s absolute TSR measured against specific thresholds
15% of the Performance Rights
The growth in the Company’s earnings per share (“EPS”) measured
against specific thresholds
Tranche D
15% of the Performance Rights
The growth in the Company’s Ore Reserve measured against specific
thresholds
Tranche E
15% of the Performance Rights
McPhillamys progress against timetable and budget including permitting
and scheduling
Tranche F
15% of the Performance Rights
Rosemont Underground against specific performance requirements
The fair value at grant date of Tranches A and B was estimated using a Monte Carlo simulation, and a Black Scholes option pricing model
was used to estimate the fair value at grant date of Tranches C, D, E and F, which have non-market-based performance conditions.
86 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 24. Share-based Payments (continued)
The table below details the terms and conditions of the grant and the assumptions used in estimating fair value:
Item
Grant date
Value of the underlying security at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period (years)
Commencement of measurement period
Test date
Remaining performance period (years)
Tranche A & B
Tranche C & D
Tranche E & F
23 November 2018
23 November 2018
23 November 2018
$4.34
nil
4.30%
2.11%
35%
3
$4.34
nil
4.30%
2.11%
35%
3
$4.34
nil
4.30%
2.11%
35%
3
1 July 2018
1 July 2018
1 July 2018
30 June 2021
30 June 2021
30 June 2021
Nil
Nil
Nil
The fair value of the Performance Rights granted during FY19 was $426,480 and the weighted average fair value was $2.65.
FY20 Performance Rights
In November 2019, 764,794 performance rights were granted to the Executive Director Mr Jim Beyer, CFO Mr Jon Latto and other
executives, under the Group’s EIP.
The performance conditions that the Board has determined will apply to 129,433 and 58,343 LTI Performance Rights granted to Mr Jim
Beyer and Mr Jon Latto respectively, are summarised below:
Tranche
Tranche A
Tranche B
Tranche C
Weighting
Performance Conditions
20% of the Performance Rights
The Company’s relative total shareholder return (“TSR”) measured
against the TSR’s of 12 comparator mining companies
20% of the Performance Rights
The Company’s absolute TSR measured against specific thresholds
15% of the Performance Rights
The growth in the Company’s earnings per share (“EPS”) measured
against specific thresholds
Tranche D
15% of the Performance Rights
The growth in the Company’s Ore Reserve measured against specific
thresholds
Tranche E
15% of the Performance Rights
McPhillamys progress against timetable and budget including permitting
and scheduling
Tranche F
15% of the Performance Rights
Annual production growth above levels contained in the Life of Mine
Plan. Growth in production can arise from M&A activity.
The fair value at grant date of Tranches A and B was estimated using a Monte Carlo simulation, and a Black Scholes option pricing model
was used to estimate the fair value at grant date of Tranches C, D, E, and F, which have non-market based performance conditions.
30,890 STI Performance Rights were granted to Mr Jim Beyer in FY20 with the balance of the 2019 Performance Rights (being
546,128 Performance Rights) granted to senior executives vesting progressively over a four-year period from 1 July 2019 to 30 June 2023
(Tranche G).
The following table details the terms and conditions of the grant and the assumptions used in estimating fair value:
Item
Grant date
Value of the underlying
security at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period
(years)
Commencement of
measurement period
Test date
Remaining performance
period (years)
Tranche A & B
Tranche C & D
Tranche E & F
Tranche G
STI
LTI
26 November 2019 26 November 2019 26 November 2019 26 November 2019 26 November 2019
$4.62
nil
4.00%
0.73%
35%
3
$4.62
nil
4.00%
0.73%
35%
3
$4.62
nil
4.00%
0.73%
35%
3
$4.62
nil
4.00%
0.77%
35%
0.6
$4.62
nil
4.00%
0.77%
35%
4
1 July 2019
1 July 2019
1 July 2019
30 June 2022
30 June 2022
30 June 2022
1 July 2019
1 July 2020
1 July 2019
30 June 2023
1
1
1
Nil
2
The fair value of the Performance Rights granted during FY20 was $3,178,560 and the weighted average fair value was $4.16 (Tranche A-F:
$574,477, $3.06, and Tranche G: $2,604,083, $4.51).
Regis Resources Limited | Annual Report 2021 87
Notes to the Financial Statements (continued) For the year ended 30 June 2021 24. Share-based Payments (continued)
FY21 Performance Rights
In November 2020, a total of 277,364 Performance Rights were granted to the Chief Executive Officer and Managing Director, Mr Jim
Beyer (154,353), and to executives Mr Stuart Gula (67,350) and Mr Jon Latto (55,661), in the form of long-term incentives (LTI’s) under
the Group’s EIP. The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
Tranche
Weighting
Performance Conditions
Tranche A
50% of the Performance Rights
The Company’s relative total shareholder return (RTSR) measured against
the RTSRs of 12 comparator mining companies
Tranche D
Tranche E
25% of the Performance Rights
The Company’s life of mine reserves growth in excess of depletion
25% of the Performance Rights
McPhillamys Project targets as determined by the Board
The fair value at grant date of Tranche A, which has market-based performance conditions, was estimated using a Monte Carlo simulation,
and a Black Scholes option pricing model was used to estimate the fair value at grant date of Tranches D and E, which have non-market-
based performance conditions.
In November 2020, a total of 67,589 Performance Rights were granted to the Chief Executive Officer and Managing Director, Mr Jim Beyer
(37,816), and to executives Mr Stuart Gula (11,565) and Mr Jon Latto (18,208) in the form of short-term incentives (STI’s) under the Group’s
EIP. The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
Tranche
Weighting
Performance Conditions
Tranche G
100% of the Performance Rights
Mr Jim Beyer, Mr Jon Latto and Mr Stuart Gula being an employee of the
company as at 1 July 2021
The fair value at grant date of Tranche G, which has non-market based performance conditions, was estimated using a Black Scholes
option pricing model.
In September 2020, 592,447 Performance Rights were granted to employees in the form of short-term incentives (STI’s) under the Group’s
EIP The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
Tranche
Weighting
Performance Conditions
Tranche H
100% of the Performance Rights
Employee being employees of the company as at 11 December 2020
The fair value at grant date of Tranche H, which has non-market based performance conditions, was estimated using a Black Scholes
option pricing model.
The table below details the terms and conditions of the grant and the assumptions used in estimating fair value:
Item
Grant date
Value of the
underlying security
at grant date
Exercise price
Dividend yield
Risk free rate
Volatility
Performance period
(years)
Commencement of
measurement period
Test date
Remaining
performance period
(years)
Tranche A
Tranche D
Tranche E
Tranche G
Tranche H
25 November 2020
25 November 2020
25 November 2020
25 November 2020 14 September 2020
$3.75
Nil
3.50%
0.11%
45%
3
$3.75
Nil
3.50%
0.11%
45%
3
$3.75
Nil
3.50%
0.11%
45%
3
$3.75
Nil
3.50%
0.09%
45%
0.6
$5.34
Nil
3.50%
0.22%
45%
0.2
1 July 2020
1 July 2020
1 July 2020
25 November 2020 14 September 2020
30 June 2023
30 June 2023
30 June 2023
1 July 2021
11 December 2020
2
2
2
Nil
Nil
The fair value of the Performance Rights granted during the year was $4,117,748 and the weighted average fair value was $4.39 (Tranche
A,D and E: $731,827, $2.64, Tranche G: $248,322, $3.67 and Tranche H: $3,137,599, $5.30).
88 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 24. Share-based Payments (continued)
Summary of Performance Rights
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Issued during the year
Vested and unissued during the year
Outstanding at the end of the year
Weighted average share price at the date of issue
Weighted average remaining contractual life
Weighted average fair value of Performance Rights granted during the year
Key estimates and assumptions
Share-based payments
2021
925,560
937,401
(226,195)
(685,052)
(59,877)
891,837
$3.59
2 years
$4.39
2020
559,185
764,794
(398,419)
-
-
925,560
-
2 years
$4.16
The Group is required to use key assumptions, such as volatility, 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.
25. Related Parties
Key Management Personnel Compensation
The key management personnel compensation included in employee benefits expense (Note 3) and share-based payments (Note 24), is
as follows:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payment
Total compensation
Consolidated
2021
$’000
2020
$’000
2,558,379
2,039,665
214,890
136,075
721,634
189,711
34,355
203,311
3,630,977
2,467,042
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, other than advised elsewhere in this report.
Subsidiaries
The consolidated financial statements include the financial statements of Regis Resources Limited and the subsidiaries listed in the
following table:
Name
Duketon Resources Pty Ltd
Artane Minerals NL
Rosemont Gold Mines Pty Ltd
LFB Resources NL
AFB Resources SPV Pty Ltd
AFB Resources Pty Ltd
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
% Equity Interest
Investment $’000
2021
100%
100%
100%
100%
100%
100%
2020
100%
100%
100%
100%
n/a
n/a
2021
30,575
-
-
2020
30,575
-
-
73,941
73,941
-
-
-
-
104,516
104,516
Regis Resources Limited | Annual Report 2021 89
Notes to the Financial Statements (continued) For the year ended 30 June 2021 25. Related Parties (continued)
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 Pty Ltd 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 Pty Ltd has no fixed date of repayment and is non-interest-bearing. As at 30 June 2021,
the balance of the loan receivable was $39,892,000 (2020: $30,935,000).
A loan is made by the Company to LFB Resources NL and represents the subsidiary’s share of payments for exploration and evaluation
expenditure. The loan outstanding between the Company and LFB Resources NL has no fixed date of repayment and is non-interest-
bearing. As at 30 June 2021, the balance of the loan receivable was $112,134,000 (2020: $98,508,000).
During the year, a loan was made by the Company to AFB Resources Pty Ltd and represents the Company’s share in the Tropicana Gold
Project. The loan outstanding between the Company and AFB Resources Pty Ltd has no fixed date of repayment and is non-interest-
bearing. As at 30 June 2021, the balance of the loan receivable was $615,541,000.
Transactions With Key Management Personnel
For the year ended 30 June 2021, services totalling $529,793 (2020: $173,965) have been provided on normal commercial terms to the
Group by Mintrex Pty Ltd (“Mintrex”), of which Mrs Morgan is Managing Director, Chief Executive Officer and a shareholder. The Company
engaged Mintrex during the financial year to engineer feasibility level plant designs for the McPhillamys Project. Mrs Morgan and Mintrex
have structured their management of this engineering project to ensure she has no involvement in the control or direction of the work.
The balance outstanding at 30 June 2021 was $22,530 (2020: $66,285) exclusive of GST.
Other than the ordinary accrual of personnel expenses at balance date and transactions disclosed above, there are no other amounts
receivable from and payable to key management personnel and their related parties.
26. Parent Entity Information
The following details information related to the parent entity, Regis Resources Limited, at 30 June 2021. 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
Reserves
Retained profits
Total equity
Net profit for the year
Other comprehensive income for the period
Total comprehensive income for the period
Consolidated
2021
$’000
353,503
1,538,100
1,891,603
106,041
169,586
275,627
1,095,533
35,157
485,286
1,615,976
2020
$’000
277,055
878,338
1,155,393
101,486
185,320
286,806
435,145
31,223
402,219
868,587
144,363
196,670
-
-
144,363
196,670
Members of the Regis Group (being Regis Resources Limited, AFB Resources Pty Ltd, AFB Resources SPV Pty Ltd, Duketon Resources
Pty Ltd and LFB Resources NL) have granted an all-asset security including guarantees in respect of amounts outstanding under the
Syndicated Facility Agreement and in respect of the Company’s hedging obligations with Macquarie Bank Limited.
Total exploration expenditure commitments (Note 12) are $2,686,000 of which $672,000 is incurred by the parent entity.
90 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 27. Commitments
The Group has exploration expenditure commitments as disclosed in Note 12.
28. Contingencies
As at 30 June 2021, the Group did not have any material contingent assets or liabilities (30 June 2020: nil).
29. Auditor’s Remuneration
Audit services
KPMG Australia
Consolidated
2021
$
2020
$
Audit and review of financial statements
377,020
260,708
Assurance services
Regulatory assurance services
Other assurance services
Other services
Other advisory services
Taxation compliance services
Total KPMG remuneration
Other auditors
Other audit services
30. Subsequent Events
Dividends
4,658
20,700
37,778
-
-
-
9,100
55,890
440,156
325,698
50,770
-
On 30 August 2021, the directors proposed a final dividend on ordinary shares in respect of the 2021 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.
Regis Resources Limited | Annual Report 2021 91
Notes to the Financial Statements (continued) For the year ended 30 June 2021 31. New Accounting Standards and Interpretations
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 2021 but have not been applied in preparing this financial
report. Except where noted, the Group has evaluated the impact of the new standards and interpretations listed below and determined
that the changes are not likely to have a material impact on its financial statements.
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
The amendments clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves a business as
defined in AASB 3 Business Combinations. Any gain or loss resulting from the sale or contribution of assets that does not constitute a
business, however, is recognised only to the extent of unrelated investors’ interests in the associate or joint venture.
AASB 2015-10 defers the mandatory effective date (application date) of AASB 2014-10 so that the amendments are required to be
applied for annual reporting periods beginning on or after 1 January 2022 instead of 1 January 2018.
Application date of Standard: 1 January 2022
Application date for Group: 1 July 2022
AASB 2020-3 Amendments to Australia Accounting Standards – Annual Improvements 2018-2020 and Other Amendments
The subject of the principal amendments to the Standards are set out below:
AASB 1 First-time Adoption of Australian Accounting Standards
The amendment allows a subsidiary that becomes a first-time adopter after its parent to elect to measure cumulative translation
differences for all foreign operations at the carrying amount that would be included in the parent’s consolidated financial, based on the
parents date of transition, if no adjustment were made for consolidation procedures and for the effects of the business combination in
which the parent acquired the subsidiary.
AASB 9 Financial Instruments
The amendment clarifies that an entity includes only fees paid or received between the borrower and the lender and fees paid or received
by either the borrower or the lender on the other’s behalf when assessing whether the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability.
AASB 116 Property, Plant and Equipment
The amendment requires an entity to recognise the sales proceeds from selling items produced while preparing property, plant and
equipment for its intended use and the related costs in profit or loss, instead of deducting the amounts received from the cost of the
asset.
Without a detailed assessment being performed at this stage, this amendment will be expected to have an impact on the presentation of
net profit after tax, net assets and financial position for the year ending 30 June 2023.
AASB 137 Provisions, Contingent Liabilities and Contingent Assets
The amendment specifies the costs an entity includes when assessing whether a contract will be loss-making consists of the incremental
costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.
Application date of Standard: 1 January 2022
Application date for Group: 1 July 2022
AASB2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current
The amendments require a liability be classified as current when companies do not have a substantive right to defer settlement at the
end of the reporting period.
AASB 2020-6 defers the mandatory effective date of amendments that were originally made in AASB 2020-1 so the amendments are
required to be applied for annual reporting periods beginning on or after 1 January 2023 instead of 1 January 2022.
Application date of Standard: 1 January 2023
Application date for Group: 1 July 2023
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting
Estimates
The amendments provide a definition of and clarifications on accounting estimates and clarify the concept of materiality in the context
of disclosure of accounting policies.
Application date of Standard: 1 January 2023
Application date for Group: 1 July 2023
92 Regis Resources Limited | Annual Report 2021
Notes to the Financial Statements (continued)For the year ended 30 June 2021 Directors’ Declaration
In accordance with a resolution of the directors of Regis Resources Limited, I state that:
1.
In the opinion of the directors:
(a) The financial statements, notes and additional disclosures included in the directors’ report designated as audited, of the
Company and the Group are in accordance with the Corporations Act 2001, including:
(i) Giving a true and fair view of the Group’s financial position as at 30 June 2021 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 and Group will be able to pay its debts as and when they become
due and payable.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive
Officer and Chief Financial Officer for the financial year ended 30 June 2021.
3.
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 James Mactier
Non-Executive Chairman
Perth, 30 August 2021
Regis Resources Limited | Annual Report 2021 93
Independent Auditor’s Report
94 Regis Resources Limited | Annual Report 2021
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Regis Resources Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Regis Resources Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises the: • Consolidated Balance Sheet as at 30 June 2021 • Consolidated statement of comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters The Key Audit Matters we identified are: • Tropicana Asset Acquisition; • Valuation and classification of non-current ore stockpiles; and • Valuation of exploration and evaluation assets. Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Regis Resources Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Regis Resources Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises the: • Consolidated Balance Sheet as at 30 June 2021 • Consolidated statement of comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters The Key Audit Matters we identified are: • Tropicana Asset Acquisition; • Valuation and classification of non-current ore stockpiles; and • Valuation of exploration and evaluation assets. Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Regis Resources Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Regis Resources Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises the: • Consolidated Balance Sheet as at 30 June 2021 • Consolidated statement of comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters The Key Audit Matters we identified are: • Tropicana Asset Acquisition; • Valuation and classification of non-current ore stockpiles; and • Valuation of exploration and evaluation assets. Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Independent Auditor’s Report (continued)
Regis Resources Limited | Annual Report 2021 95
Tropicana Asset Acquisition A$947,509,000 Refer to Note 22 to the Financial Report. The key audit matter How the matter was addressed in our audit The Group’s acquisition of its 30% non-operator interest in the Tropicana Gold Project (Tropicana) on 30 April 2021 (the acquisition date) for $947,509,000 was a significant transaction for the Group. This is a key audit matter due to: • The size and nature of the transaction having a pervasive impact on the Group’s financial statements; • The level of judgement used by the Group in determining the accounting approach required as either a business combination (in accordance with AASB 3 Business Combinations) or an asset acquisition. The difference in the accounting for the acquisition as a business or an asset is significant and could impact the recognition and measurement of amounts reported in the Financial Report; • The level of judgement used by the Group to determine the date of acquisition. A different acquisition date could significantly impact the amounts recorded in the Financial Report. • Judgements made by the Group relating to the purchase price allocation. The Group engaged an external expert to assist in performing a valuation assessment, which included the identification and measurement of acquired assets and liabilities. The most significant assumptions the Group applied in its assessment of the allocation of purchase consideration was the fair value of mine properties and exploration and evaluation assets acquired, which included: o Life of mineral reserves and resources estimates; and o Reserve and resource multiples. These conditions required significant audit effort and greater involvement by senior team members and our valuation specialists. Our procedures included: • We read the Asset Sale Agreement related to the acquisition to understand the structure, key terms and conditions, and nature of the purchase consideration. Using this, we evaluated the accounting treatment of the purchase consideration and transaction costs against the criteria in the accounting standards. • We involved senior audit team members to assess the accounting treatment for the transaction as an asset acquisition. We analysed the conclusions reached by the Group comparing to accounting interpretations, industry practice and accounting literature. • We challenged and assessed the Group’s evaluation of the acquisition date against the criteria in the accounting standards. We focussed on the Group’s evaluation of the satisfaction of conditions precedent under the Asset Sale Agreement. • We assessed the scope, competence and objectivity of the Group’s external expert involved in estimating the purchase price allocation. • We read the external valuation report and worked with our valuation specialists to assess and challenge the key assumptions used in the purchase price allocation. We challenged the Group’s approach and methodology to valuing the identified mineral interest in comparison with accepted industry practice and the requirements of the accounting standards. • We assessed the scope, competence and objectivity of the Group’s external expert involved in the estimation of mineral reserves and resources. • We assessed the reasonableness of reserve and resource multiples applied by comparing them to recent transactions and comparable companies. • We assessed the Group’s disclosures of the quantitative and qualitative considerations in relation to the asset acquisition, by comparing these disclosures to our understanding of the acquisition and the requirements of the accounting standards. Tropicana Asset Acquisition A$947,509,000 Refer to Note 22 to the Financial Report. The key audit matter How the matter was addressed in our audit The Group’s acquisition of its 30% non-operator interest in the Tropicana Gold Project (Tropicana) on 30 April 2021 (the acquisition date) for $947,509,000 was a significant transaction for the Group. This is a key audit matter due to: • The size and nature of the transaction having a pervasive impact on the Group’s financial statements; • The level of judgement used by the Group in determining the accounting approach required as either a business combination (in accordance with AASB 3 Business Combinations) or an asset acquisition. The difference in the accounting for the acquisition as a business or an asset is significant and could impact the recognition and measurement of amounts reported in the Financial Report; • The level of judgement used by the Group to determine the date of acquisition. A different acquisition date could significantly impact the amounts recorded in the Financial Report. • Judgements made by the Group relating to the purchase price allocation. The Group engaged an external expert to assist in performing a valuation assessment, which included the identification and measurement of acquired assets and liabilities. The most significant assumptions the Group applied in its assessment of the allocation of purchase consideration was the fair value of mine properties and exploration and evaluation assets acquired, which included: o Life of mineral reserves and resources estimates; and o Reserve and resource multiples. These conditions required significant audit effort and greater involvement by senior team members and our valuation specialists. Our procedures included: • We read the Asset Sale Agreement related to the acquisition to understand the structure, key terms and conditions, and nature of the purchase consideration. Using this, we evaluated the accounting treatment of the purchase consideration and transaction costs against the criteria in the accounting standards. • We involved senior audit team members to assess the accounting treatment for the transaction as an asset acquisition. We analysed the conclusions reached by the Group comparing to accounting interpretations, industry practice and accounting literature. • We challenged and assessed the Group’s evaluation of the acquisition date against the criteria in the accounting standards. We focussed on the Group’s evaluation of the satisfaction of conditions precedent under the Asset Sale Agreement. • We assessed the scope, competence and objectivity of the Group’s external expert involved in estimating the purchase price allocation. • We read the external valuation report and worked with our valuation specialists to assess and challenge the key assumptions used in the purchase price allocation. We challenged the Group’s approach and methodology to valuing the identified mineral interest in comparison with accepted industry practice and the requirements of the accounting standards. • We assessed the scope, competence and objectivity of the Group’s external expert involved in the estimation of mineral reserves and resources. • We assessed the reasonableness of reserve and resource multiples applied by comparing them to recent transactions and comparable companies. • We assessed the Group’s disclosures of the quantitative and qualitative considerations in relation to the asset acquisition, by comparing these disclosures to our understanding of the acquisition and the requirements of the accounting standards. Tropicana Asset Acquisition A$947,509,000 Refer to Note 22 to the Financial Report. The key audit matter How the matter was addressed in our audit The Group’s acquisition of its 30% non-operator interest in the Tropicana Gold Project (Tropicana) on 30 April 2021 (the acquisition date) for $947,509,000 was a significant transaction for the Group. This is a key audit matter due to: • The size and nature of the transaction having a pervasive impact on the Group’s financial statements; • The level of judgement used by the Group in determining the accounting approach required as either a business combination (in accordance with AASB 3 Business Combinations) or an asset acquisition. The difference in the accounting for the acquisition as a business or an asset is significant and could impact the recognition and measurement of amounts reported in the Financial Report; • The level of judgement used by the Group to determine the date of acquisition. A different acquisition date could significantly impact the amounts recorded in the Financial Report. • Judgements made by the Group relating to the purchase price allocation. The Group engaged an external expert to assist in performing a valuation assessment, which included the identification and measurement of acquired assets and liabilities. The most significant assumptions the Group applied in its assessment of the allocation of purchase consideration was the fair value of mine properties and exploration and evaluation assets acquired, which included: o Life of mineral reserves and resources estimates; and o Reserve and resource multiples. These conditions required significant audit effort and greater involvement by senior team members and our valuation specialists. Our procedures included: • We read the Asset Sale Agreement related to the acquisition to understand the structure, key terms and conditions, and nature of the purchase consideration. Using this, we evaluated the accounting treatment of the purchase consideration and transaction costs against the criteria in the accounting standards. • We involved senior audit team members to assess the accounting treatment for the transaction as an asset acquisition. We analysed the conclusions reached by the Group comparing to accounting interpretations, industry practice and accounting literature. • We challenged and assessed the Group’s evaluation of the acquisition date against the criteria in the accounting standards. We focussed on the Group’s evaluation of the satisfaction of conditions precedent under the Asset Sale Agreement. • We assessed the scope, competence and objectivity of the Group’s external expert involved in estimating the purchase price allocation. • We read the external valuation report and worked with our valuation specialists to assess and challenge the key assumptions used in the purchase price allocation. We challenged the Group’s approach and methodology to valuing the identified mineral interest in comparison with accepted industry practice and the requirements of the accounting standards. • We assessed the scope, competence and objectivity of the Group’s external expert involved in the estimation of mineral reserves and resources. • We assessed the reasonableness of reserve and resource multiples applied by comparing them to recent transactions and comparable companies. • We assessed the Group’s disclosures of the quantitative and qualitative considerations in relation to the asset acquisition, by comparing these disclosures to our understanding of the acquisition and the requirements of the accounting standards. Independent Auditor’s Report (continued)
96 Regis Resources Limited | Annual Report 2021
Valuation and classification of non-current ore stockpiles A$185,643,000 Refer to Note 9 to the Financial Report. The key audit matter How the matter was addressed in our audit Significant judgement is required to be exercised by the Group in assessing the value and classification of non-current ore stockpiles which will be used to produce gold bullion in the future. The valuation and classification of non-current ore stockpiles is a key audit matter because: • Additional non-current ore stockpiles have been recorded through the continuation of mining activities and through the Tropicana asset acquisition; and • Significant judgement is required by us in evaluating and challenging the key assumptions within the Group’s assessment of net realisable value and estimated timing of processing into gold bullion. The Group’s assessment is based on a model which estimates future revenue expected to be derived from gold contained in the non-current ore stockpiles, less selling costs and future processing costs, to convert stockpiles into gold bullion. We placed particular focus on those assumptions listed below which impact the valuation and classification of ore stockpiles: • Future processing and selling costs of non-current ore stockpiles. • The estimated quantity of gold contained within the non-current ore stockpiles. • Future commodity prices expected to prevail when the gold from existing non-current ore stockpiles is processed and sold. • Estimated timing of conversion of non-current ore stockpiles into gold bullion, which drives the classification of non-current ore stockpiles as current or non-current assets. Assumptions are forward looking or not based on observable data and are therefore inherently judgmental to audit. Our procedures included: • Testing the Group’s inventory reconciliations which utilise underlying data such as production and processing costs, geological survey reports, mill production reports and metallurgical survey reports. • Assessing the methodology applied by the Group in determining the value of non-current ore stockpiles against the requirements of the accounting standards. • Assessing the key assumptions in the Group’s model used to determine the value of non-current ore stockpiles by: o Comparing future processing costs to previous actual costs, and for consistency with the Group’s latest life of mine plan. o Comparing the estimated quantity of gold contained within stockpiles to the Group’s internal geological survey results and historical trends. We assessed the scope, competence and objectivity of the Group’s internal expert involved in preparing the geological survey results. o Comparing commodity prices to published external analysts’ data for prices expected to prevail in the future. o Assessing the relevance of current processing and selling costs for future production taking into consideration the Group’s planned changes in operations. • Critically evaluating the Group’s classification of non-current ore stockpiles as non-current by assessing the estimated timing of processing the stockpiles against the Group’s latest life of mine plan and the historical operating capacity of the Group’s processing plants. Independent Auditor’s Report (continued)
Regis Resources Limited | Annual Report 2021 97
Valuation of exploration and evaluation assets A$491,702,000 Refer to Note 12 to the Financial Report. The key audit matter How the matter was addressed in our audit The valuation of exploration and evaluation assets (E&E) is a key audit matter due to: • The significance of the E&E balance (being approximately 21% of the Group’s total assets); and • The greater level of audit effort to evaluate the Group’s application of the requirements of the industry specific accounting standard AASB 6 Exploration for and Evaluation of Mineral Resources, in particular the presence of impairment indicators. The presence of impairment indicators would necessitate a detailed analysis by the Group of the value of E&E, therefore given the criticality of this to the scope and depth of our work, we involved senior team members to challenge the Group’s determination that no such indicators existed. In assessing the presence of impairment indicators, we focused on those that may draw into question the commercial continuation of E&E activities. In performing the assessments above, we paid particular attention to: • The Group’s compliance with key license conditions to maintain current rights to tenure for an area of interest, particularly minimum expenditure requirements; • The ability of the Group to fund the continuation of activities for areas of interest; and • Results from latest activities regarding the potential for a commercial viable quantity of reserves and the Group’s intention to continue E&E activities in each area of interest as a result. Our procedures included: • We evaluated the Group’s accounting policy to recognise exploration and evaluation assets using the criteria in the accounting standard. • We tested the Group’s current right of tenure and compliance with minimum expenditure requirements for a sample of exploration licences by checking the ownership of the relevant license and expenditure recorded to government registries. • We obtained corporate budgets which we compared for consistency to areas of interest with capitalised E&E, for evidence of the ability to fund the continuation of activities. • We evaluated Group documents, such as minutes of board meetings, internal management plans and reports lodged with relevant government authorities for consistency with the Group’s stated intentions for continuing exploration and evaluation activities in certain areas, the potential for commercially viable quantities of reserves to exist and information regarding the results of activities. We assessed this through interviews with key operational and finance personnel and announcements made by the Group to the ASX. • We looked for any inconsistency regarding the existence of reserves to the treatment of E&E and the requirements of the accounting standard. Independent Auditor’s Report (continued)
98 Regis Resources Limited | Annual Report 2021
Other Information Other Information is financial and non-financial information in Regis Resources Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor's Report. The Directors are responsible for the Other Information. The Other Information we obtained prior to the date of this Auditor’s Report was the Directors Report. The Chairman’s Report, Highlights, Corporate, Review of Operations, and ASX Additional Information are expected to be made available to us after the date of the Auditor's Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report. Independent Auditor’s Report (continued)
Regis Resources Limited | Annual Report 2021 99
Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Regis Resources Limited for the year ended 30 June 2021, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2021. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Derek Meates Partner Perth 30 August 2021 Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Regis Resources Limited for the year ended 30 June 2021, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2021. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Derek Meates Partner Perth 30 August 2021 ASX Additional Information
As at 22 September 2021 the following information applied:
1.
Securities
(a)
Fully Paid Ordinary Shares
The number of holders of fully paid ordinary shares in the Company is 24,980. On a show of hands every holder of fully paid ordinary
shares present or by proxy, shall have one vote. Upon a poll, each share shall have one vote. The distribution of holders of fully paid
ordinary shares is as follows:
Category
Holding between
1-1,000 Shares
Holding between
1,001 - 5,000 Shares
Holding between
5,001 - 10,000 Shares
Holding between
10,001-100,000 Shares
Holding more than
100,001 Shares
Holding less than
A marketable parcel
Number of
Number of
shareholders
shares
6,661
9,966
4,121
3,999
3,357,445
27,597,180
31,407,683
100,684,342
233
591,161,552
24,980
754,208,202
1,785
241,346
The Company’s fully paid ordinary shares are quoted on the Australian Securities Exchange using the code RRL.
The top 20 shareholders are as follows:
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR COLIN PETROULAS
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
CS THIRD NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
ROLLASON PTY LTD
CITICORP NOMINEES PTY LIMITED
VASTE DEVELOPMENTS PTY LIMITED
NETWEALTH INVESTMENTS LIMITED
AMP LIFE LIMITED
NETWEALTH INVESTMENTS LIMITED
Number of fully
paid ordinary
Percentage
shares held
265,797,050
82,234,557
69,391,630
37,640,130
15,463,448
7,831,085
7,727,500
6,307,586
6,160,436
6,160,224
5,875,447
5,679,560
4,307,329
2,282,096
2,199,485
1,920,865
1,900,000
1,698,276
1,463,716
1,331,812
interest
35.24%
10.90%
9.20%
4.99%
2.05%
1.04%
1.02%
0.84%
0.82%
0.82%
0.78%
0.75%
0.57%
0.30%
0.29%
0.25%
0.25%
0.23%
0.19%
0.18%
TOP 20 SHAREHOLDERS OF ORDINARY FULLY PAID SHARES (TOTAL)
533,372,232
70.72%
(b) Unlisted Options
The Company has no unissued shares under unlisted options.
100 Regis Resources Limited | Annual Report 2021
(c) Unlisted Performance Rights
Performance rights issued under employee incentive scheme
Unvested 2019 performance rights (Test date: 30 June 2022)
Unvested 2020 performance rights (Test date: 30 June 2023)
Number
of holders
Number of
rights held
13
13
361,290
492,828
Performance rights do not carry a right to vote. Voting rights will be attached to the unissued shares when the performance rights have
been exercised.
2.
Substantial Shareholders
The substantial shareholders of the Company are:
Name
Van Eck Associates Corporation
Equitable Holdings, Inc.
The Vanguard Group, Inc.
3. On-Market Buy-Back
Number of fully
paid ordinary
Percentage
shares held
81,609,836
43,666,178
38,123,514
interest
10.82%
5.79%
5.06%
There is no current on-market buy-back of the Company’s securities.
4. Corporate Governance Statement
The Company’s 2021 Corporate Governance Statement has been released as a separate document and is located on our website at
http://www.regisresources.com.au/about-us/corporate-governance.html
5. Mineral Resources and Ore Reserves
Group Mineral Resources compliant with JORC Code 2012 as at 31 December 2020 are estimated to be 301 million tonnes at 1.1g/t gold
for 10.4 million ounces of gold, compared with the estimate at 31 March 2020 of 249 million tonnes at 1.0g/t gold for 7.70 million ounces
Group Mineral Resources
2,300
10,360
7,700
270
390
300
of gold.
s
e
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O
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a
s
u
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h
T
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
31-Mar-20
Depletion
Model Update
New Deposits
Tropicana (30%)
31-Dec-20
Mineral Resources are reported inclusive of Ore Reserves and include all exploration and resource definition drilling information, where
practicable, up to 31 December 2020 and have been depleted for mining to 31 December 2020.
Mineral Resources are constrained by optimised open pit shells developed with operating costs and a long-term gold price assumption of
A$2,000 per ounce at Duketon and McPhillamys and A$2,170 per ounce at Tropicana for the purpose of satisfying “reasonable prospects
for eventual extraction” (JORC 2012).
Regis Resources Limited | Annual Report 2021 101
Group Ore Reserves
Group Ore Reserves compliant with JORC Code 2012 as at 31 December 2020 are estimated at 145 million tonnes at 1.0g/t Au for 4.8
million ounces of gold, compared with the estimate at 31 March 2020 of 104 million tonnes at 1.1g/t Au for 3.6 million ounces of gold.
The change in the Group Ore Reserve from March 2020 to December 2020 is as follows:
31 March 2020 (ROM Ore only)
Depleted by Processing to 31 December 2020
31 March 2020 Net of Depletion
31 December 2020 (ROM Ore only)
31 December 2020 (LG ore addition)
31 December 2020 (Total Ore Reserve – Duketon)
31 December 2020 (Total Ore Reserve – Tropicana (30%))
31 December 2020 (Total Ore Reserve)
*
Numbers may not add due to rounding errors
Total Ore
Reserve*
Tonnes
Gold Grade
Gold Metal
(Mt)
104
(7)
97
105
25
130
15
145
(g/t)
1.1
1.2
1.1
1.1
0.4
1.0
1.7
1.0
(koz)
3,620
(280)
3,340
3,700
310
4,020
810
4,830
The update of Group Ore Reserves for Duketon and McPhillamys resulted in a 34% increase in tonnes and 20% increase in ounces after
allowing for depletion by processing. Tropicana added 15 million tonnes @ 1.7g/t gold for 810,000 ounces.
Group Ore Reserves
810
4,830
3,620
150
250
0
s
e
c
n
u
O
d
n
a
s
u
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T
5,000
4,000
3,000
2,000
1,000
0
31-Mar-20
Duketon North
Duketon South
McPhillamys
Tropicana (30%)
31-Dec-20
A gold price of A$1,600 per ounce was used for the overall assessment of the Group Ore Reserves. This is unchanged from March 2020
Ore Reserves Annual Report.
All components of the Group Ore Reserves are subject to an economic test including all estimated capital, operating and closure costs.
Varying gold prices of up to $2,200 per ounce are used to assess individual components of the Group Ore Reserves where certain
circumstances are appropriate, for example near term timelines.
102 Regis Resources Limited | Annual Report 2021
Duketon North Operation
The DNO Mineral Resource compliant with JORC Code 2012 as at 31 December 2020 is 55 million tonnes at 0.8 g/t Au for 1.34 million
ounces, compared to 52 million tonnes at 0.8 g/t Au for 1.28 million ounces at 31 March 2020.
The DNO Ore Reserve compliant with JORC Code 2012 as at 31 December 2020 is 21 million tonnes at 0.7 g/t Au for 470 thousand ounces,
compared to 11 million tonnes at 0.9 g/t Au for 320 thousand ounces at 31 March 2020.
The Ore Reserves are partly composed of 10 million tonnes at 1.0 g/t gold for 330 thousand ounces of gold of ROM Ore. ROM ore is defined
as Ore that will be mined and delivered to the mill during normal operations.
In addition to ROM Ore, the Group Ore Reserves contain 11 million tonnes of Low Grade (LG) Ore at 0.4 g/t gold for 140 thousand ounces.
This is Ore that is stockpiled separately during mining and will be processed at the end of the operation when mining has ceased or on
short term occasions if insufficient feed is available to keep the mills fully utilised.
The change in the DNO Ore Reserve from March 2020 to December 2020 is as follows:
31 March 2020 (ROM Ore only)
Depleted by Processing to 31/12/20
31 March 2020 Net of Depletion
31 Dec 2020 (ROM Ore only)
31 Dec 2020 (LG Ore addition)
31 Dec 2020 (Total Ore Reserve)
% Variation Net of Depletion
*
Numbers may not add due to rounding errors
Total Ore Reserve – DNO*
Tonnes
Gold Grade
Gold Metal
(Mt)
11
2
8
10
11
21
+152%
(g/t)
(koz)
0.9
0.9
0.9
1.0
0.4
0.7
320
70
250
330
140
470
+88%
The Ore Reserve estimation review resulted in a 152% and 88% increase in the tonnes and ounces respectively, after allowing for
depletion by mining.
The increase in ROM ore is derived by the addition of three new mining areas at Moolart Well known as Buckingham, Eindhoven and
Mitchell.
Buckingham
Eindhoven
Mitchell
Total (ROM Ore only)
31 Dec 2020 (LG Ore addition)
31 Dec 2020 (Total Ore Reserve)
*
Numbers may not add due to rounding errors
Additional Probable Ore Reserves – Moolart Well*
Tonnes
Gold Grade
Gold Metal
(Mt)
(g/t)
(koz)
2
1
0
4
4
8
0.9
0.8
0.8
0.8
0.4
0.6
60
40
10
100
50
150
The three Ore Reserves listed above facilitate extending the design life of the Moolart Well processing facility. These extensions have
been assessed taking into account the fact that Regis have been operating continuously in the Moolart Well area for over 10 years, and
therefore has a good understanding of the geology, processing performance, mining parameters and attendant costs.
The Competent Person is satisfied that given the current spot price of gold, and the long term forecast that Regis Resources is using, that
the project will be economic over the life of the Ore Reserves. In consideration of the post mining treatment of Low Grade Ore across the
remainder of DNO, the life of DNO has now been extended to FY2028.
Regis Resources Limited | Annual Report 2021 103
Duketon South Operation
The DSO Mineral Resource compliant with JORC Code 2012 as at 31 December 2020 is 122 million tonnes at 1.0 g/t Au for 4.04 million
ounces, compared to 116 million tonnes at 1.0 g/t Au for 3.73 million ounces at 31 March 2020.
The DSO Ore Reserve compliant with JORC Code 2012 as at 31 December 2020 is 48 million tonnes at 1.0 g/t Au for 1.52 million ounces,
compared to 33 million tonnes at 1.2 g/t Au for 1.28 million ounces at 31 March 2020.
The Ore Reserves are partly composed of 34 million tonnes at 1.2 g/t gold for 1.34 million ounces of gold of ROM Ore. ROM ore is defined
as Ore that will be mined and delivered to the mill during full normal operations.
In addition to ROM Ore, the Group Ore Reserves contain 14 million tonnes of Low Grade (LG) Ore at 0.4 g/t gold for 0.18 million ounces.
This is Ore that is stockpiled separately during mining and will be processed at the end of the operation when mining has ceased or on
short term occasions if insufficient feed is available to keep the mills fully utilised.
The change in the DSO Reserve from March 2020 to December 2020 is as follows:
31 March 2020 (ROM Ore only)
Depleted by Processing to 31/12/20
31 March 2020 Net of Depletion
31 Dec 2020 (ROM Ore only)
31 Dec 2020 (LG Ore addition)
31 Dec 2020 (Total Ore Reserve)
% Variation Net of Depletion
*
Numbers may not add due to rounding errors
Total Ore Reserve – DSO*
Tonnes
Gold Grade
Gold Metal
(Mt)
(g/t)
(koz)
33
5
28
34
14
48
+72%
1.2
1.3
1.2
1.2
0.4
1.0
1,280
210
1,070
1,340
180
1,520
+43%
The Ore Reserve estimation review resulted in a 72% and 43% increase in the tonnes and ounces respectively, after allowing for depletion
by mining.
The increase in ROM ore is derived by the addition of three new mining areas at DSO. These are Garden Well Open Pit Stage 7, the Garden
Well UG, and the Ben Hur Open Pits.
Garden Well Stg 7
Garden Well Underground
Ben Hur
Total (ROM Ore only)
31 Dec 2020 (LG Ore addition)
31 Dec 2020 (Total Ore Reserve)
*
Numbers may not add due to rounding errors
Additional Probable Ore Reserves – Duketon South*
Tonnes
Gold Grade
Gold Metal
(Mt)
(g/t)
(koz)
6
1
3
10
3
14
1.0
3.4
1.2
1.3
0.4
1.1
210
100
120
420
50
470
For the Garden Well open pit, on the 1st January 2021 there was a wall failure on the north eastern wall of the pit. The effect of the slip
was to potentially remove 100 koz of Ore Reserves. It was decided to account for this in the Reserves despite the date of the slip.
In order to recover this potential loss of Ore Reserve, multiple cut back designs were evaluated for economic potential, from which Garden
Well Stage 7 has now been added. Stage 7 not only recovers the potentially lost material but also increases the Ore Reserves of the
Garden Well Open Pit.
The total Ore Reserves for the Garden Well Open pit (excluding existing stockpiles) is 14 Mt at 1.0 g/t for 450 koz of ROM Ore, with a further
6 Mt at 0.4 g/t for 80 koz of LG Ore. This Ore Reserve underpins the life of the DSO for up to seven years.
104 Regis Resources Limited | Annual Report 2021
Duketon Low Grade Reserves
Over the ten years of mining at the Duketon operations, a significant amount of low grade material (internally referred to previously as
Mineralised Waste – now referred to as Low Grade Ore) has been separately stockpiled. This material has not previously been included as
part of the declared Ore Reserves. However, it has been considered this material could be processed at the end of the life of the operation.
Due to the size of the current stockpiles of Low Grade Ore, studies were carried out on the costs of processing this material and the
metallurgical recoveries that would be expected. These studies gave Regis Resources the confidence to declare this Low Grade material
(both in current stockpiles, and those yet to be mined) as Ore Reserves.
The formal declaration of this Low Grade Ore is to inform the market of the current expected life and production of the operations. Both
DNO and DSO now have a production life out to FY2028.
Low Grade Ore is treated as waste when initially optimising and designing Open pits and treated as by-product material while mining for
ROM Ore. This ensures that the Low Grade Ore Reserves do not unduly influence mine design decisions that might be uneconomic.
New South Wales
There is no change in Mineral Resources or Ore Reserves at the combined NSW projects from March 2020 to December 2020.
Tropicana Gold Project
The Tropicana Mineral Resources compliant with JORC Code 2012 as at 31 December 2020 are estimated to be 145 million tonnes at 1.6
g/t gold for 7.64 million ounces of gold (100%) and 44 million tonnes at 1.6 g/t gold for 2.29 million ounces of gold (30%).
The Tropicana Ore Reserves compliant with JORC Code 2012 as at 31 December 2020 are estimated to be 49 million tonnes at 1.7 g/t gold
for 2.69 million ounces of gold (100%) and 15 million tonnes at 1.7 g/t gold for 0.81 million ounces of gold (30%).
Tropicana Ore Reserves as at 31 December 2020 is as follows:
Ore Reserves – Tropicana Gold Mine (100%)
Tonnes
Gold Grade
Gold Metal
Estimate
Open Pit
Underground
Stockpiles
Total
JORC Class
(Mt)
(g/t)
Proved
Probable
Subtotal
Proved
Probable
Subtotal
Proved
Proved
Probable
Tropicana Total
Tropicana (30%)
4
25
28
0
3
3
18
22
27
49
15
2.2
2.0
2.0
3.1
3.5
3.4
0.9
1.1
2.2
1.7
1.7
(koz)
255
1,624
1,879
27
282
309
506
788
1,906
2,694
807
•
•
Open pit ORE block cut-off >0.7g/t Au for fresh rock, otherwise >0.6g/t Au; Underground ORE block cut-off 2.7g/t Au
Some totals and averages are affected by rounding
Regis Resources Limited | Annual Report 2021 105
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Regis Resources Limited | Annual Report 2021 107
Competent Persons Statement
The information in this statement that relates to the Mineral Resources or Ore Reserves listed in the previous tables is based on work
compiled by the person whose name appears below. Each person named in the table below are Members of The Australasian Institute
of Mining and Metallurgy (AusIMM) and have sufficient experience which is relevant to the style of mineralisation and types of deposits
under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the JORC Code 2012.
Each person named in the table below consents to the inclusion in this report of the matters based on their information in the form and
context in which it appears.
Competent Persons for JORC Code 2012 reportable results and estimates
Code
Activity
Competent Person
Association
Regis relationship and role
Activity responsibility
Professional
Mineral
Resources
Vanessa O’Toole
AusIMM
Group Resource Geologist
Duketon and McPhillamy
estimates
Ore Reserves
Jonathon Bayley
AusIMM
Group Mining Engineer
Duketon open pit estimates
Ore Reserves
Lilong Chen
AusIMM
Snr UG Engineer
Duketon (Rosemont) UG
estimate
Ore Reserves
Nigel Bennett
AusIMM
Ore Reserves
Quinton de Klerk
AusIMM
Mineral
Resources
Fraser Clark
AusIMM
G, H
Ore Reserves
Joanne Endersbee
AusIMM
Glenn Reitsema
AusIMM
Principle Engineer – Mining
Duketon (Garden Well) UG
Plus
estimate
Principle Engineer – Cube
McPhillamys open pit
Consulting
estimates
Manager Mine Geology
(AGAA)
Manager Integrated Planning
(AGAA)
Tropicana Estimates
Tropicana open pit estimates
Senior Planning Engineer
Tropicana underground
(AGAA)
estimates
A
B
D
D
E
F
•
•
•
•
AusIMM = Member of the Australasian Institute of Mining and Metallurgy.
Information in this report that relates to Mineral Resources or Ore Reserves is based on the information compiled by the relevant Competent Persons
and activities listed above.
All Regis personnel are full-time employees of Regis Resources Limited; all AGAA personnel are full time employees of AGAA.
All the Competent Persons have provided Regis with written confirmation that they have sufficient experience that is relevant to the styles of
mineralisation and types of deposits, and the activity being undertaken with respect to the responsibilities listed against each professional above, to
qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves – the JORC Code 2012 Edition.
•
Each Competent Person listed above has provided to Regis by e-mail:
•
•
A declaration that they are a current member of their respective professional organisation as listed above;
A signed consent to the inclusion of information for which each person is taking responsibility in the form and context in which it appears in this
report, and that the respective parts of this report accurately reflect the supporting documentation prepared by each Competent Person for the
respective responsibility activities listed above; and
•
Confirmation that there are no issues that could be perceived by investors as a material conflict of interest in preparing the reported information.
Forward Looking Statements
This ASX announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining
and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected
by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including
but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, Reserve estimations, loss of
market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market
conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be
relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors,
many of which are outside the control of Regis Resources Ltd. Past performance is not necessarily a guide to future performance and
no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other
forecast.
108 Regis Resources Limited | Annual Report 2021
During the year, Regis acquired a 30%
non-operator interest in the Tropicana Gold
Project located in the Albany-Fraser Belt,
approximately 330 kilometres north-east of
Kalgoorlie in Western Australia.
Regis Resources Limited | Annual Report 2021 109
Notes to the Financial Statements (continued) For the year ended 30 June 2021 Level 2, 516 Hay Street
SUBIACO WA 6008
T +61 8 9442 2200
F +61 8 9442 2290
E enquiries@regisresources.com
www.regisresources.com.au
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