Annual Report
2022
Regis Resources 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.
The Tropicana Gold Project is 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%).
Regis Resources Limited | Annual Report 2022 1
Contents
Chairman's Report
Highlights
Review of Operations
Duketon Gold Project
Tropicana Gold Project
Gold Exploration
Mineral Resources and Ore Reserves
Directors’ Report
Remuneration Report (Audited)
Auditor’s Independence Declaration
Financial Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor’s Report
4
6
10
11
13
14
22
27
39
55
56
61
97
98
ASX Additional Information
105
Leading Australian
Gold Miner
Creating value for our people, our communities and
our shareholders by mining safely and responsibly.
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.
2 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 3
Chairman's Report
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.
Dear Shareholder,
2022 was a year of consolidation for Regis.
Significantly, 2022 represented the first full year of
ownership of our 30% interest in the Tropicana mine and
we remain pleased with its performance, outlook, and
strategic fit. It has delivered significant production and
free cash-flow to Regis, both of which are set to increase
substantially in the near term. Furthermore, exploration
results at depth, reinforce our expectation that Tropicana
will continue to provide these benefits for many years to
come, well beyond existing reserves.
At the same time, we continued to invest in our Duketon
assets through open cut and underground development,
plant modifications, process improvements, resource and
reserve definition drilling and greenfields exploration. Whilst
we had some significant operational challenges in the first
half at Duketon, our team worked well to recover from these
and to position for a stronger future.
Our sustainability journey continued, with commitment to
a solar farm at Duketon as well as other environmental
mitigation and cost-saving initiatives and plans. We
maintained an industry-leading safety performance and
female representation in our workforce continues to be
above industry average. I encourage you to read about
these achievements and other progress in our 2022
Sustainability Report.
Frustratingly, we are still yet to obtain regulatory
On behalf of the Board, I would like to thank our
approval for the development of our McPhillamys project.
management team, led by Managing Director and
Nonetheless, we continue to constructively engage
Chief Executive Officer Jim Beyer and all our staff and
with the relevant regulatory authorities, and we remain
contractors, our joint venture partner AngloGold Ashanti
focussed on delivering the requisite approvals.
and the communities in which we operate. I would also like
to thank Mr Russell Barwick for his contribution during his
The direct and indirect impacts of COVID-19 continued to
require a strong focus to limit the effects on our business.
time on the Board.
Notwithstanding our efforts and planning, the resultant
We look forward to another productive and profitable year
impacts on costs, workforce availability and logistical
ahead, mining safely and responsibly.
constraints, made for a very challenging operating
environment. More recently, a surging diesel price added
Thank you.
to these industry-wide pressures and in combination
with a softening of the USD gold price, resulted in a very
significant downward rating of gold sector valuations
globally.
Whilst our share price performance was very disappointing,
largely because of these sector-wide concerns, our
underlying business continues to strengthen. We expect
production, cashflow and earnings to grow, realising the
benefits of our investments over the past few years. Our
balance sheet remains robust and conservatively geared
and our hedged ounces have reduced significantly.
James Mactier
Non-Executive Chairman
4 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 5
Highlights
Corporate
Operations
Net profit after tax of
$14m
after non-cash adjustments
of $60 million
EBITDA of
$336m
with an EBITDA margin of 33%
Cash and Bullion of
$231m1
at 30 June 2022
Fully franked dividends of
2 cents
per share for FY2022
Further reduction of
hedge book with
77%
of gold sold at spot price
1
Includes bullion on hand valued at $2,637 per ounce
Record gold production of
437,309
ounces at AISC of $1,556 per ounce
Improvement in safety performance
Lost Time Injury Frequency Rate (LTIFR)
reduced to
1.3
more than 40% below industry average
Strong operating cashflow of
$347m
Forth largest gold
producer on the ASX
Exploration & Growth
First full year of
Tropicana Gold Project
(30% interest)
Reserve Life of more than
9 years
Targeting
500,000
ounces by FY2025
Mineral Resources of
9.9m ounces
Two current reliable
cash generating pillars
Ore Reserves of
4.1m ounces
6 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 7
Corporate
Regis delivered a record year of gold production
in FY2022 generating EBITDA of $336 million and
operating cash flows of $347 million. This robust
result demonstrates the quality of the Company’s
Australian operating assets at Duketon and
Tropicana.
This was the Company’s first full year of
ownership of its 30% interest in the Tropicana
Gold Project, with this project continuing to
deliver to expectations.
The Company is the fourth largest gold producer
on the Australian Stock Exchange (ASX) with
437,309 ounces of gold produced at an All-in
Sustaining Cost of $1,556 per ounce. Regis sold a
total of 436,045 ounces of gold during the year at
an average price of A$2,329 per ounce. The profit
result for the year was after non-cash write-
downs and impairments totalling $85 million
($60 million after tax).
The following graphs illustrate the performance
of the Company across financial years for several
metrics.
Cash and bullion on hand at the end of year
was $231 million, after a capital investment of
$219 million in mine development, $78 million in
property, plant and equipment (including payment
of lease liabilities), $22 million in dividends,
$56 million in exploration expenditure (including
McPhillamys) and $2 million in income tax.
The Company paid a total of $22 million in
fully franked dividends during the year and
subsequent to the end of the financial year
declared a 2 cents per share fully franked final
dividend. The final dividend was declared after
consideration of the expected future cashflow
and profitability from the Company’s operations.
Since the commencement of dividend payments
in 2013, the Company has paid a total of
$572 million in fully franked dividends.
The chart opposite details the movement in the
Company's cash reserves over the financial year.
Gold Production & Revenue
Net Profix After Tax
EBITDA
437
1016
361
363
352
373
819
757
654
606
200
174
163
146
30%
20%
10%
0%
14
394
403
313
307
52
47
52
49
336
33
18
19
20
21
22
18
19
20
21
22
18
19
20
21
22
Gold Prodution (koz)
Revenue ($millions)
NPAT ($millions)
NPAT Margin (%)
EBITDA ($millions)
EBITDA Margin (%)
Earnings & Dividend per Share
cents per share
Dividends Declared
cents per share
Cumulative Dividends Paid
$millions
39.3
34.6
32.2
26.4
8
8
8
16.0
16.0
16.0
7.0
1.8 2.0
8
8
8
3
4
18
19
20
21
22
18
19
20
21
EPS
Dividend per share
Final
Interim
572
550
488
407
326
245
170
105
75
2
22
14
15
16
17
18
19
20
21
22
700
600
500
400
300
200
100
0
269
1
2
0
2
e
n
u
J
Movement in Cash & Bullion - FY2022
$millions
378
(219)
(56)
(78)
(39)
255
(2)
(22)
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8 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 9
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.
Review of Operations
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 Gold Mines and surrounding satellite deposits including the Erlistoun Gold Mine, Tooheys Well Gold Mine
and Baneygo Gold Mine; and the Duketon North Operations (“DNO”) comprising the Moolart Well Gold Mine and surrounding
satellite deposits including the Gloster Gold Mine and Dogbolter Gold Mine. The Duketon Gold Project has in excess of
3,000 square kilometres of exploration and mining tenure, covering more than 90% of the Duketon Greenstone Belt.
The Duketon Gold Project produced 315,537 ounces of gold which was within re-stated guidance of 300,000-340,000
ounces for FY2022. With the plant modifications now complete resulting in improved metallurgical recovery, resource
modelling performing to expectation and the Garden Well South Underground Mine coming online, Regis is well positioned
to deliver a strong FY2023. All-in Sustaining Costs for the year increased to A$1,684 per ounce due to increased fuel and
consumables costs while the plant modifications were underway and the inflationary impacts of higher fuel prices.
Operations at the Duketon Gold Project.
Moolart Well
2.5Mtpa
Garden Well
5Mtpa
WA
Perth
Duketon
Kalgoorlie
100km
Rosemont
2.5Mtpa
Operating results for the Duketon Gold Project are summarised below:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
2022
4.43
24.54
5.5
11.55
9.12
1.20
91
316
1,383
1,499
1,684
2021
4.00
27.10
6.8
9.89
9.52
1.27
92
356
1,041
1,148
1,336
10 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 11
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 plants.
Operating results for the year to 30 June 2022 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
2022
3.09
8.88
2.9
8.92
6.11
1.39
90
245
1,319
1,433
1,619
2021
2.50
15.60
6.2
7.03
6.37
1.44
92
271
1,058
1,165
1,368
Production at DSO was 10% lower than the previous year with 244,625 ounces of gold produced at an all-in sustaining cost of $1,619
per ounce. This was due to lower throughput and recovery while plant modifications were made in the second half to allow the higher
grade but more metallurgically difficult Tooheys Well ore to be fed at higher rates. This higher-grade ore was stockpiled until the plant
modifications were completed in the last quarter of the financial year.
AISC increased by 18% due to lower gold production, and higher mining and processing costs, which included increased fuel costs and
reagant usage.
Duketon North Operations
Duketon North Operations (‘DNO’) comprises the Moolart Well, Gloster and Dogbolter pits with all ore processed through the Moolart
Well processing plant.
Operating results for the year to 30 June 2022 were as follows:
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
2022
1.34
15.67
11.7
2.63
3.00
0.81
91
71
1,606
1,726
1,908
2021
1.50
11.51
7.7
2.86
3.15
0.92
91
85
989
1,092
1,174
DNO produced 70,912 ounces of gold for the year at an all-in sustaining cost of $1,908 per ounce. Gold production was down 16% on
the prior year as a result of lower throughput and recovery associated with increased variability in ore mined in the first half of the year.
Lower grade stockpiles were also used as mill feed during this time. AISC increased by 63% on the prior year due mainly to lower gold
production, increases associated with surface haulage and the inflationary impacts of higher fuel and reagant usage.
Tropicana Gold Project
The Tropicana Gold Project is located in the Albany-Fraser Belt,
approximately 330 kilometres north-east of Kalgoorlie in Western Australia.
Tropicana is operated by joint venture partner AngloGold Ashanti Australia
Limited and contains the Tropicana, Havana and Boston Shaker open
pits and the Boston Shaker underground operation. Tropicana holds the
mineral rights to approximately 2,600 square kilometres of WA exploration
tenements that are held in a Joint Venture agreement between Regis (30%)
and AngloGold Ashanti Australia Limited (70%).
WA
Tropicana
Gold Project
Kalgoorlie
Perth
Layout of the Tropicana Mine.
Operating results for the Tropicana Gold Project (at 30%) were as follows (NB. Owned for 2 months in prior year):
Ore mined
Waste mined
Stripping ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost
Cash cost inc royalty
All-in Sustaining Cost
2022
2021
Mbcm
Mbcm
w:o
Mt
Mt
g/t
%
koz’s
A$/oz
A$/oz
A$/oz
0.27
7.61
28.1
1.16
2.87
1.47
90
121
1,081
1,143
1,133
0.05
1.16
25.3
0.17
0.43
1.39
90
17
1,240
1,300
2,121
The first full year of production at Tropicana totalled 121,772 ounces (30%) at an all-in sustaining cost of $1,133 per ounce.
12 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 13
Gold Exploration
Duketon Greenstone Belt geology interpretation
Garden Well Main underground potential takes shape
During the year, a total of 355,681
metres of exploration drilling was
completed with 238,713 metres across
the Group’s tenements at Duketon and
116,968 metres at Tropicana.
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 approximately
2,900 square kilometres.
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.
Drilling continued within the target area down plunge of the Garden Well Main (GWM) pit mineralisation. High grade shoots hosted in
sheared mafic rocks have been identified and diamond drilling continued to test the continuity of the gold mineralisation.
These strong results demonstrate the potential of an additional underground production area at GWM and grow the potential scale of
the system. Work has recently commenced on an exploration decline from the nearby South mine.
Garden Well long section looking west showing high grade intersections under Main pit, and the existing underground mine design at Garden Well South.
14 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 15
Rosemont depth extensions continue to show encouraging results
Moolart Well: extension drilling
Drilling continued during the period at Rosemont to explore the high-grade shoots which extend at depth beneath existing underground
At Moolart Well (Wellington and Buckingham pit areas) drilling continued to test for resources extensions in a shallow plunging shoot
infrastructure and along strike to the south.
south of Buckingham and beneath the final pit design at Wellington.
The Commonwealth prospect is located 10km west of Moolart Well. Infill drilling continues to show promise and the Company is
undertaking further analysis to determine the potential for an additional open pit oxide ore source for Moolart Well.
Tropicana Gold Project
Tropicana, on the western edge of the Great Victoria Desert in Western Australia, is approximately 1,000 kilometres east north east of
Perth. Tropicana holds mineral rights to approximately 2,400 square kilometres of exploration and mining tenements that are held in
Joint Venture agreement between Regis (30%) and Joint Venture Manager AngloGold Ashanti Australia Limited (70%).
Work programmes continue to assess the potential for additional underground mines below the final design limits of the 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.
Rosemont South long section showing high grade intersections
Tropicana long section.
16 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 17
Boston Shaker Underground continuing to grow at Tropicana JV
A third potential production zone shapes up at Havana Underground
Exploration drilling at Boston Shaker has continued to test and confirm the down-plunge mineralisation beyond the boundaries of the
The Havana underground programme is designed to convert a portion of the underground inferred resource to higher confidence
existing resources. Highly significant results were returned during the year highlighting the potential for the Boston Shaker UG resource
indicated. This area lies beneath the base of the planned Havana Pit.
to grow further.
Boston Shaker long-section displaying gram metre pierce points and 0.3g/t Au mineralisation zone and recent high grade intercepts outside of the
current modelled mineralised zone.
Long section of Havana deposit with conceptual UG design and recent intersections
Group Resource & Reserve Growth
Group Mineral Resources and Ore Reserves are respectively.
Table 1: Group Mineral Resources as at 31 December 2021 (Regis Attributable)
Measured
Indicated
Inferred
Total Resource
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
(Mt)
(g/t)
(000s)
Regis Total
40
0.9
1,210
(Mt)
199
(g/t)
(000s)
(Mt)
(g/t)
(000s)
1.1
6,770
48
1.3
1,940
(Mt)
287
(g/t)
(000s)
1.1
9,920
Table 2: Group Ore Reserves as at 31 December 2021 (Regis Attributable)
Regis Total
21
0.8
520
96
1.2
3,620
(Mt)
(g/t)
(000s)
(Mt)
(g/t)
(000s)
(Mt)
117
(g/t)
(000s)
1.1
4,140
Proven
Probable
Total Resource
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
The Company released an updated annual Mineral Resource and Ore Reserve Statement in June 2022. The Group Mineral Resources as
at 31 December 2021, reported in accordance with the JORC Code 2012, are estimated to be 287Mt at 1.1 g/t gold for 9.92Moz gold.
This compares with the estimate at 31 December 2020 of 301Mt at 1.1 g/t Au for 10.36Moz of gold as announced 15 June 2021 post
the acquisition of 30% of Tropicana.
Mineral Resources were estimated using a gold price of $2,015/oz (weighted average).
Boston Shaker Cross-section A-A showing the down-plunge continuation of economic mineralisation down plunge outside of the current modelled
mineralised zone.
18 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 19
A summary of the year on year changes is as follows:
McPhillamys Gold Project
Mineral Resource Changes
from December 2020 to December 2021 (koz)
10,360
9,870
140
9,920
-490
-90
The Definitive Feasibility Study (“DFS”) work continued with a finalised project scope and mine plan completed. Key bidders on the
major contract packages are providing revised pricing and schedule based on latest scope and other project information, noting that
the current inflationary environment continues to put pressure on the capital cost of the project. Finalising the DFS remains linked to
Department of Planning, Industry and Environment (“DPIE”) assessment recommendations.
The Project remains in the penultimate phase of the process, which sees DPIE assess the Development Application (“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 made in FY23.
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.
December 2020
Depletion
December 2020
(Net)
Tropicana
Duketon
December 2021
The Group Ore Reserves as at 31 December 2021, reported in accordance with the JORC Code 2012, are estimated to be 117Mt at
1.1 g/t gold for 4.14Moz gold. This compares with the estimate at 31 December 2020 of 145Mt at 1.0 g/t Au for 4.83Moz of gold as
announced 15 June 2021 post the acquisition of 30% of Tropicana.
Ore Reserves were estimated at the long term gold price of $1,623/oz (weighted average) using the following gold price assumptions:
• Duketon North:
$2,000 /oz
• Duketon South:
$1,600 /oz
• McPhillamys:
$1,600 /oz
•
Tropicana:
$1,633 /oz
A summary of the year on year changes is shown below:
Ore Reserves Changes
from December 2020 to December 2021 (koz)
4,830
4,340
-490
-210
-130
110
30
4,140
December 2020
Depletion
December 2020
(Net)
DNO
Open Pit
DSO
Underground
DNO
Open Pit
Tropicana
December 2021
McPhillamys Gold Project location and NSW tenure.
20 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 21
Mineral Resources and Ore Reserves
22 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 23
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24 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 25
Financial Report
Directors’ Report
Remuneration Report (Audited)
Auditor’s Independence Declaration
27
39
55
Consolidated Statement of Comprehensive Income
57
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
58
59
60
61
97
98
Your directors submit their report for the year ended 30 June 2022.
Directors
The directors of Regis Resources Limited (“Regis” or “Company”) in office since 1 July
2021 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 also 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 qualified 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 ASX-
listed iron ore producer and explorer Mt Gibson Iron Limited 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 29 years’ experience in the
mining industry, including working on gold, nickel, coal and iron ore projects. Mrs Morgan
was 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. Mrs Morgan stepped down as Managing Director and Chief
Executive Officer in September 2021 and remained a Non-Executive Director of Mintrex
Pty Ltd until 30 June 2022. She has wide ranging 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.
26 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 27
Directors’ ReportNotes to the Financial Statements (continued)For the year ended 30 June 2022 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 Chartered Accountants Australia and New Zealand and the
Institute of Chartered Accountants in 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 ASX-
listed Sipa Resources Limited as Managing Director, ceasing on 31 January 2020.
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 (resigned 14 January 2022)
(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.
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.
Dividends
Dividends paid or declared by the Company to members since the end of the previous financial year were:
Declared and paid during the 2022 financial year
Ordinary shares
Declared after year end
Cents
Total amount
per share
$’000
Date of
Payment
3.0
22,627
28 September 2021
After the balance sheet date the following dividends were
Cents
Total amount
proposed by the directors
Ordinary shares
per share
2.0
$’000
15,097
Date of
Payment
28 October 2022
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
• Evaluation and progression of approvals for 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:
• Focus on mining safely and responsibly;
• Deliver value through its existing operations and projects;
• Grow organically through exploration; and
• Assess opportunities for inorganic growth.
Objectives Completed in FY22 that Contribute to Strategy Delivery
During the FY22 year, the Company has delivered in each of these areas of its strategy through:
• A continuing focus on a safe workplace for everyone, every day. This has included a committed and sustained approach to managing
Covid-19 related risks to our people in the workplace. The development a strong safety culture is demonstrated by the Lost Time
Injury Frequency Rate continuing to be well below the industry average;
• A record full year of gold production;
•
Increasing production from Rosemont Underground and the development at Garden Well Underground;
• An increase in the Company’s Resources prior to depletion with potential for further mine life extension at Duketon as a result of
recent exploration;
• The reliable delivery of production from Tropicana, purchased in the prior year; and
• Positive progress made regarding the permitting of the McPhillamys Gold Project, one of Australia’s largest undeveloped open pit
gold projects.
28 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 29
Directors’ ReportDirectors’ Report Objectives Going Forward
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;
Performance relative to the previous financial year
Consolidated net profit after tax was $13.8 million for the full year to 30 June 2022 which was 90.6% lower than the previous
corresponding year result of $146.2 million. Higher gold sales revenue during the year was offset by increased mining and processing
costs, ore stockpile write-downs totalling $74.2 million and a $105.5 million increase in depreciation and amortisation charges for the
period.
Sales
The Company produced 437,309 ounces of gold for the year ended 30 June 2022 with 315,537 ounces from the Company’s Duketon
• Organically increase the Reserve base of the Group by discovering and developing satellite resource positions and extending the
Operations and 121,772 from its 30% interest in Tropicana. Gold sales revenue rose by 18.7% from the previous year with 436,045
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 and permitting of the McPhillamys Gold Project in NSW with a view to developing a significant long-life
gold mine;
• Return value to shareholders through dividends where appropriate; and
• Actively pursue inorganic growth opportunities.
Operating and Financial Review
Overview of the Group
Regis is an 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”) contain the Garden Well Gold Mine (open pit with an underground mine in development), the Rosemont Gold
Mine (open pit and underground), the Erlistoun gold deposit, the Tooheys Well gold deposit and the Baneygo gold deposit. The Duketon
North Operations (“DNO”) comprise the Moolart Well Open Pit Gold Mine, the Gloster gold deposit, Dogbolter Coopers gold deposits and
the Anchor gold deposit where mining was completed early in the current year.
The Company has 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 Havana and Boston Shaker open-pit operations and the Boston Shaker and Tropicana underground operations. The interest in
Tropicana was acquired in the last quarter of the previous financial year.
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)
Impairment of non-current assets
Finance costs
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
2022
$’000
1,015,698
(651,736)
(1,912)
(25,937)
336,113
(294,588)
(11,117)
(11,210)
19,443
(5,668)
13,775
346,994
207,354
(295,883)
(88,529)
2021
$’000
818,835
(394,011)
(402)
(20,431)
403,991
(189,049)
(610)
(2,265)
212,394
(66,196)
146,198
276,286
242,627
(293,821)
(51,194)
1,577,299
1,584,305
Basic earnings per share (cents per share)
1.83
26.37
Change
$’000
196,863
(257,725)
(1,510)
(5,506)
(67,878)
(105,539)
(10,507)
(8,945)
(192,951)
60,528
(132,423)
70,708
(35,273)
(2,062)
(37,335)
(7,006)
(24.54)
Change
%
24%
65%
376%
27%
(17%)
56%
1,622%
295%
(91%)
91%
(91%)
26%
(15%)
1%
(73%)
0%
(93%)
(i) EBITDA is an adjusted measure of earnings before interest (finance costs), taxes, depreciation and amortisation (and impairment of non-current assets).
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
ounces of gold sold at an average price of $2,329 per ounce in 2022 (2021: 367,285 ounces at $2,229 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 220,000 ounces at a fixed price of $1,571 per ounce (2021: 320,000 ounces at a
fixed price of $1,571 per ounce). The Company has committed to deliver a further 100,000 ounces at the same fixed price in the 2023
financial year.
Cost of Sales
Costs of sales including royalties and the write down of ore stockpiles, but before depreciation and amortisation increased by 65.4% to
$651.7 million.
Depreciation and Amortisation
The 55.8% increase in depreciation and amortisation charges was predominantly a result of the addition of assets associated with the
Tropicana Gold Project and the continued development of the underlying Mine Properties assets (Refer Note 14).
Cash Flow from Operating Activities
Cash flow from operating activities was $347.0 million, up 26% on the prior year mainly due to cash flows associated with the Tropicana
acquisition.
During the year, the Company paid (net) $2.4 million of income taxes.
The Company paid a fully franked dividend in FY22 totalling $22.6 million.
Duketon South Operations (“DSO”)
Operating results at the Duketon South Operations for the 12 months to 30 June 2022 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties(ii)
Cash cost per ounce – incl. royalties(ii)
All-in Sustaining Cost (“AISC”)(ii)
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
30 June 2022
30 June 2021
3,085,051
2,500,701
8,876,101
15,597,136
2.9
8,916,874
6,111,534
1.39
90
6.2
7,034,770
6,366,312
1.44
92
Ounces
244,625
270,987
A$/oz
A$/oz
A$/oz
1,319
1,433
1,619
1,058
1,165
1,368
(ii) Cash costs per ounce of production and all-in sustaining costs (“AISC”) per ounce of production are non-IFRS financial information and not subject to
audit. These are comparable measures commonly used in the mining industry and in particular the gold mining industry. The Company follows the World
Gold Council guidelines for reporting AISC. Throughout the financial year and in the following tables, AISC has been reported excluding the impacts of
the write-downs in inventory ore stockpiles as these write-downs predominantly relate to ore mined in previous years (sunk costs) which have not been
processed in the current year and the majority of which is not expected to be processed in the following year. For further details of ore stockpile write-
downs refer to Note 3 and Note 9 to the annual financial statements.
Production at DSO was 10% lower than the previous year with 244,625 ounces of gold produced at an all-in sustaining cost of $1,619
per ounce. This was due to lower throughput and recovery while plant modifications were made in the second half to allow the higher
grade but more metallurgically difficult Tooheys Well ore to be fed at higher rates. This higher grade ore was stockpiled until the plant
modifications were completed in last quarter of the financial year.
AISC increased by 18% due to lower gold production, and higher mining and processing costs, which included increased fuel costs and
chemical usage.
30 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 31
Directors’ ReportDirectors’ Report Duketon North Operations (“DNO”)
Operating results for the 12 months to 30 June 2022 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties(ii)
Cash cost per ounce – incl. royalties(ii)
All-in Sustaining Cost (“AISC”)(ii)
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
30 June 2022
30 June 2021
1,342,547
1,498,524
15,665,908
11,505,350
11.7
2,628,816
3,003,069
0.81
91
7.7
2,858,047
3,151,223
0.92
91
Ounces
70,912
84,566
A$/oz
A$/oz
A$/oz
1,606
1,726
1,908
989
1,092
1,174
DNO produced 70,912 ounces of gold for the year at an all-in sustaining cost of $1,908 per ounce. Gold production was down 16% on
the prior year as a result of lower throughput and recovery associated with increased variability in ore mined in the first half of the year.
Lower grade stockpiles were also used as mill feed during this time.
AISC increased by 63% on the prior year due mainly to lower gold production, increases associated with surface haulage and the
inflationary impacts of higher fuel and chemical usage.
Tropicana Gold Project
Operating results (at 30%) for the 12 months to 30 June 2022 were as follows:
Ore mined
Waste mined
Strip ratio
Ore mined
Ore milled
Head grade
Recovery
Gold production
Cash cost per ounce – pre royalties(ii)
Cash cost per ounce – incl. royalties(ii)
All-in Sustaining Cost (“AISC”)(ii)
30 June 2022
30 June 2021
(12 months)
(2 months)
270,881
45,855
7,607,057
1,161,622
28.1
1,163,220
2,871,648
1.47
90
25.3
174,932
429,554
1.39
90
BCM
BCM
w:o
Tonnes
Tonnes
g/t
%
Ounces
121,772
17,317
A$/oz
A$/oz
A$/oz
1,081
1,143
1,133
1,240
1,300
2,121
The first full year of production at Tropicana totalled 121,772 ounces (30%) at an all-in sustaining cost of $1,133 per ounce. The high
AISC in the prior year was due to low production in the two-month period following acquisition with lower grade stockpiles being used
as mill feed while the Havana open-pit cutback occurred along with a planned mill maintenance shutdown in June 2021.
Exploration
During the year, a total of 355,681 metres of exploration drilling was completed with 238,713 metres across the Group’s tenements at
Duketon and 116,968 metres at Tropicana. The Tropicana exploration drilling comprised 15,405 metres of aircore drilling, 43,524 metres
of RC drilling and 58,039 metres of diamond drilling.
Regis’ exploration for FY22 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
Aircore
11,045
RC Diamond
Total
-
-
11,045
Moolart Well
-
27,266
1,496
28,762
Prospect
Bandya
Baneygo
Ben Hur
7,791
-
-
-
2,672
10,716
Betelgeuse
10,686
1,224
Camel Hump
Claypan
720
-
-
-
Commonwealth
17,693
8,189
Davies Bores
126
Duketon Townsite
2,245
-
-
-
-
-
-
-
927
273
-
-
Mitchell
7,791
2,672
10,716
Petra
11,910
Risden Well
720
927
Rosemont
Speights
26,155
Swansons
126
Swincer
2,245
Terminator
Garden Well
Gilga Well
Gloster
Jester
King Of Creation
Kintyre
Laika
Maverick
-
2,316
11,429
13,745
Thompson Bore
7,462
-
-
-
-
-
6,245
1,081
1,252
11,179
6,081
-
-
1,987
-
-
-
-
-
-
-
7,462
6,245
1,081
1,252
Tooheys Well
Vega
Ventor
White Nile
11,179
Yellow River
694
2,012
-
-
-
-
694
2,012
-
1,929
22,618
24,547
2,344
8,364
1,334
-
-
-
8,573
-
-
-
5,746
5,378
34
-
-
14,802
1,951
8,107
-
-
-
-
-
-
-
2,726
-
-
-
-
2,344
8,364
1,334
5,746
5,378
2,760
8,573
14,802
1,951
8,107
Total
97,228
102,016
39,469
238,713
6,081
1,987
Significant projects advanced during the year ended 30 June 2022 are outlined below.
All drilling results and resource estimations highlighted below 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 South Underground Project
The Garden Well Project is a fully operational open pit gold mine which commenced production in 2013, 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.
Development of the Garden Well South (GWS) Underground mine below the current Garden Well open pit commenced in early 2021.
The Feasibility Study detailed that this additional production source is expected to provide access to material mined of 1.85 million
tonnes at 3.2g/t Au for a total of 190,000 ounces. There is strong potential down plunge of the existing planned mining area and work is
continuing to grow and define additional resources via drilling from underground platforms.
Development of the GWS Underground mine continued with 2,777 metres of capital development achieved during the year.
32 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 33
Directors’ ReportDirectors’ Report Development – McPhillamys Gold Project NSW
Mineral Resource and Ore Reserve Estimates
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.
The Definitive Feasibility Study (“DFS”) work continued with a finalised project scope and mine plan completed. Key bidders on the
major contract packages are providing revised pricing and schedule based on latest scope and other project information, noting that
the current inflationary environment continues to put pressure on the capital cost of the project. Finalising the DFS remains linked to
Department of Planning, Industry and Environment (“DPIE”) assessment recommendations.
The Project remains in the penultimate phase of the process, which sees DPIE assess the Development Application (“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 made in FY23.
Mineral resources 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 resources
and ore reserves, or of Regis’ ability to extract these mineral reserves, could have a material adverse effect on the results of operations
The Company continues to work with the local and surrounding communities to ensure opportunities and impacts presented by the
and financial condition.
project development are communicated and mitigated where practicable.
Tropicana Gold Project
Tropicana, on the western edge of the Great Victoria 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%).
Tropicana currently has a Mineral Resources Estimate of 126 million tonnes at 1.7 g/t Au for 6.95 million ounces (100%) and an Ore
Reserves Estimate of 43 million tonnes at 1.7 g/t Au for 2.38 million ounces (100%).
Work programmes continue to assess the potential for additional underground mines below the final design limits of the 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.
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 the Company’s results of operations and financial condition.
Foreign Exchange Rate Risk
Regis is an Australian business that reports in Australian dollars. 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 the Company’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 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 the Company’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, 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 the Company’s performance and
the value of its assets.
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.
COVID-19
The Regis Management Team has continued to manage the Company’s ongoing response to COVID-19 in cooperation with our
contractors. The COVID-19 situation remains fluid and the Company will continue to monitor and manage for potential impacts,
particularly around labour availability.
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.
Debt and Hedging Covenants
The Company has entered into agreements with financiers and hedge providers that contain various undertakings and financial
covenants. Non-compliance with the undertakings and covenants contained in these agreements could lead to a default event
resulting in the debt becoming due and payable with potentially adverse effects on the financial position of the Company. Management
continually monitor for compliance with the required undertakings and covenants.
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.
34 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 35
Directors’ ReportDirectors’ Report 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.
Peformance Rights
Unissued Shares
Significant Events after the Balance Date
Share issue
Subsequent to year end, 137,675 shares have been issued as a result of the vesting of performance rights.
Payment of Stamp Duty
In July 2022, stamp duty of $38,970,000 was paid in relation to the prior year acquisition of Tropicana.
Dividends
At the date of this report, the Company had the following unissued shares under unvested performance rights.
Vesting Date
30 June 2023
30 June 2024
Number
outstanding
300,087
640,272
At the date of this report, the Company has 48,537 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
On 24 August 2022, the Directors proposed a final dividend on ordinary shares in respect of the 2022 financial year. Refer to Note 6.
or any related body corporate.
Settlement of Property Purchase
Details of performance rights granted to directors and other key management personnel during the year are set out in the remuneration
During the current year, the Group entered into a contract to purchase a property in New South Wales for $22,500,000 for the purposes
of the McPhillamys Project. The purchase was settled in July 2022.
Other than the above matters, 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, Operating and Financial Review,
Material Business Risks or the Significant Events after the Balance Date sections of the Directors’ Report.
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.
Environmental Regulation and Performance
Directors’ Meetings
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
There were no unlisted options exercised by employees during the financial year.
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:
Remuneration,
Risk, Safety,
Nomination and
Environment and
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
10
10
10
10
10
4
10
10
9
10
10
4
4
-
-
4
4
-
4
-
-
4
4
-
4
-
-
4
4
-
4
-
-
4
4
-
-
-
5
5
5
3
-
-
5
5
5
3
J Mactier
J Beyer
F Morgan
S Scudamore
L Burnett
R Barwick(i)
(i) R Barwick resigned on 14 January 2022 as Independent Non-Executive Director.
36 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 37
Directors’ ReportDirectors’ Report Committee Membership
Dear Shareholder,
As at the date of this report, the Company had an Audit Committee, a Remuneration, Nomination and Diversity Committee and a Risk,
The Board, through its independent Remuneration, Nomination and Diversity Committee, reviews annually, the remuneration of the
Remuneration Report (Audited)
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
Audit Committee
and Community Committee
and Diversity Committee
Risk, Safety, Environment
Remuneration, Nomination
✔
Chairperson
✔
Chairperson (from Mar 22)
✔
✔
Chairperson (until Jan 22)
✔
Chairperson
✔
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 111,029 from the holdings as at
30 June 2022 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.
J Mactier
J Beyer
F Morgan
S Scudamore
L Burnett
Auditor Independence and Non-Audit Services
Number of
ordinary shares
111,234
179,450
529,190
44,484
15,897
Company’s Key Management Personnel (KMP) and Non-Executive Directors (NED). It seeks to implement remuneration structures that
are competitive, fair, transparent, non-discriminatory, and aligned with shareholder interests.
KMP 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 LTI. Furthermore, most of the at-risk remuneration is awarded in the form of performance rights and has appropriate gateways,
hurdles, timeframes, clawback rights and discretion.
NED remuneration is on a fixed fee basis plus superannuation. NEDs are encouraged to purchase shares in the Company.
The Company’s FY21 Remuneration Report, which included our intentions for FY22, received strong support from shareholders at the
Annual General Meeting in November 2021.
KMP Remuneration
FY22
As foreshadowed in the FY21 report, the fixed component of KMP total fixed remuneration (TFR) was increased in FY22 to re-calibrate
with our targeted market median level. We had dropped below this level due in part to our decision (supported by our KMP), not to
increase salaries during the onset of the global pandemic in FY21, along with movement in the market since.
The FY22 STI and LTI components of KMP remuneration included various changes from FY21 reflecting the Company’s short-term
priorities and longer-term strategic goals, as well as recognising each KMP’s role and responsibilities. No changes were made to the
overall STI and LTI percentage opportunities. Again, 50% of STI awarded to KMP for FY22 are intended to be issued in the form of
12-month performance rights, the other 50% in cash.
Of particular note, in relation to STI: we broadened our safety-related key performance indicators (KPI) to include our All Injury
Frequency Rate (AIFR); we included development of water use efficiency and carbon emission intensity targets and improvement
plans, and; we added a personal performance component for each KMP. Performance against each KPI and consequent STI and LTI
remuneration outcomes are detailed in this report.
Continued alignment of KMP remuneration with shareholder interest was clearly demonstrated in FY22, a year in which Regis-specific
During the year KPMG, the Group auditor, provided the following non-audit services. The directors are satisfied that the provision of
but predominantly market-wide factors, saw the Company’s share price fall considerably. The percentage of potential STI awarded to
non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The
each KMP in FY22 was 54% to the MD/CEO and 44% to the COO. The deferred equity component of the FY21 awards (via 12-month
nature and scope of each type of non-audit service provided means that auditor independence was not compromised.
performance rights) were issued at a share price of $1.9975. Of the long-term performance rights issued in FY20, only 38% vested at
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
$
393,300
5,175
36,225
434,700
their final test date on 30 June 2022.
FY23
An independent remuneration consultant was again engaged to provide benchmarking data and additional insights into remuneration
structures, levels, and trends in the Australian mining sector. This data was sourced from annual reports published by a selection of
ASX listed mining and mining service companies for the year ended 30 June 2021. The comparator list is larger and broader than the
narrower gold producer peer group that we use for calculating relative TSR (used in LTI) as we recognise that our KMP (and NED) skills
and experience are transferable across different commodities and sectors within the mining industry. From this report, combined with
our own data and experience, it is very clear that employment in the mining industry continues to be very tight and competitive at all
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act is attached to the Directors’
levels.
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.
For FY23, TFR increases of 5% for KMP have been agreed, consistent with our median industry target and significant inflation. The
overall STI and LTI percentage opportunities remain the same.
STI and LTI KPIs similar to FY22 have been utilised for KMP remuneration in FY23. A notable addition is the inclusion in STIs of KPIs
relating to the rate of land rehabilitation and completing actions to improve carbon emission efficiencies and water reuse.
The no-fatality and no catastrophic environmental incident gateways will again apply to 100% of KMP STI payments in FY23 as will the
12-month equity-linked deferral mechanism on 50% of any STI awarded. The Board retains the right to clawback previous payments
made to KMP under circumstances involving fraud, misrepresentation, or malfeasance by KMP.
38 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 39
Directors’ Report Remuneration Report (Audited)
Non-Executive Director Remuneration
Remuneration for NED is in the form of fixed fees (plus superannuation), set at levels which we believe are necessary and appropriate
to attract and retain directors of the calibre, skills and experience we expect, recognising the workload and responsibility they have.
As foreshadowed in the FY21 report, NED fees were increased in FY22 to align them with the targeted median market level (having not
been increased since FY19). No change has been made for FY23 and the proposed aggregate of all NED fees (including superannuation)
remains within the shareholder approved limit of $950,000. The individual performance and contribution of each NED and of the Board
itself is reviewed annually by the Non-Executive Chairman.
The above is not a complete list of changes to our remuneration arrangements. Full details are set out in the following report which I
encourage you to read in its entirety.
Steve Scudamore
Chairman, Remuneration, Nomination and Diversity Committee
This remuneration report for the year ended 30 June 2022 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 2022 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
T Bevan
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
Resigned 14 January 2022
Chief Executive Officer and Managing Director
Full financial year
Chief Operating Officer
Chief Financial Officer
Full financial year
Resigned 11 May 2022
Interim Chief Financial Officer
Commenced 9 May 2022
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 FY22, 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 longer term “at risk” reward opportunity which takes the form of performance rights, subject to meeting
predetermined performance and vesting conditions.
Executive remuneration levels are reviewed at least annually by the Remuneration, Nomination and Diversity Committee.
40 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 41
Remuneration Report (Audited) The chart below provides a summary of the structure of executive remuneration in the 2022 financial year:
Performance linked remuneration
Fixed Remuneration
Base salary + superannuation + benefits
Variable Remuneration
STI Plan
LTI Plan
Performance linked remuneration includes both STI and LTI and is designed to reward KMP for meeting or exceeding their KPIs.
Short Term Incentive
Under the current arrangements, executives have the opportunity to earn an annual incentive. The STI recognises and rewards annual
performance.
FY22
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 FY22, the Chief Executive Officer and Managing Director had a maximum STI opportunity of 70% of total
executives earn?
fixed remuneration (“TFR”), and other executives had a maximum STI opportunity of 60% of total fixed
Cash and Performance Rights
Performance Rights
remuneration.
Remuneration Mix – Target
14%
LTI
Chief Executive
Officer and
Managing
Director
57%
Fixed
Remuneration
19%
STI
Other
Executives
67%
Fixed
Remuneration
22%
LTI
21%
STI
Elements of Remuneration in FY22
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 May 2022, 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 $6,000 exclusive of GST.
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 2022 financial year:
Jim Beyer Stuart Gula
Jon Latto
KPI 1: Safety targets;
• AIFR reduction;
• LTIFR below industry benchmark;
KPI 2: All in sustaining costs relative to guidance;
KPI 3: Production relative to guidance;
KPI 4: Environmental targets;
• No significant environmental incidents
• No significant compliance issues
• Development of carbon emission and water use
targets
KPI 5: Resource Growth
KPI 6: Individual Performance Targets
20%
20%
15%
15%
15%
20%
20%
20%
20%
20%
15%
15%
20%
10%
10%
10%
15%
20%
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.
executive leaves?
If 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).
42 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 43
Remuneration Report (Audited)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.
FY22
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 FY22, 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 FY22 are subject to the following vesting conditions:
1. Relative Total Shareholder Return (50%(i))
Performance against comparator group (ASX code: EVN, NST, PRU, RSG, SBM, WGX, NCM, OGC, SLR,
GOR, RMS, WAF):
Between 50th percentile and the 75th percentile will result in a straight-line pro-rata between 50%
and 100% of Relative TSR performance rights vesting.
Performance and Executive Remuneration Outcomes in FY22
Actual remuneration earned by executives in FY22
The actual remuneration earned by executives in the year ended 30 June 2022 is set out below. This provides shareholders with details
of the remuneration actually paid to executives for performance in FY22 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 2022:
Weighting
Key Performance Indicator
Jim Beyer
Stuart Gula
Jon Latto Metric
Achievement
KPI 1: Safety Targets
20%
20%
15%
Reduction in key safety
50% award
measures:
• AIFR reduction
• Reduction not achieved
• LTIFR of 1.25 below
• LTIFR below industry
DMIRS rate for gold
benchmark
industry of 2.2.
KPI 2: AISC
KPI 3: Production
15%
15%
20%
20%
20%
15%
AISC relative to guidance
Threshold level not achieved
Production relative to
Threshold level not achieved
guidance
2. Life of Mine Reserve Growth in Excess of Depletion (25%)
KPI 4: Environmental Targets
20%
20%
15%
Targets:
92% award
Vesting will depend on the Company’s growth in ore reserves net of depletion over the three-year
performance period. 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. Production Growth (25%)
Annualised gold production as at 30 June 2024 testing date (referencing the board approved budgeted
gold production for FY25) exceeds the current approved Regis LOM Reserves plan (note this includes
current plans for Duketon and Tropicana but excludes McPhillamys) by 20% or more for FY25. Growth in
production can arise from M&A activity.
When is performance
The performance rights issued in FY22 have a three-year performance period with the vesting of the rights
measured?
tested as at 30 June 2024. 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.
• No significant
• No significant
environmental incidents
environmental incidents
• No significant
compliance issues
and no significant
compliance issues
• Development of carbon
emission and water use
targets and plans
• Carbon emission and
water use targets
partially complete
KPI 5: Resource Growth
20%
10%
15%
Resource growth through
100% award
discovery or acquisition
• Resources increased by
1,860koz from December
2020 to December 2021
KPI 6: Individual
10%
10%
20%
Specific individual
60% award
Performance Targets
targets and objectives
that are focused on
personal performance and
organisational improvements
that are commercially
confidential
Based on this assessment, the STI payments for FY22 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
%
54.3%
44.3%
n/a(iii)
%
38.0%
26.6%
n/a(iii)
$
342,300
155,078
-
(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.
(iii) Mr Latto resigned from his position as Chief Financial Officer on 11 May 2022 and therefore was not eligible for FY22 STI rewards.
44 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 45
Remuneration Report (Audited)Remuneration Report (Audited) Performance against LTI measures
Performance and Executive Remuneration Arrangements in FY23
LTI awards granted in FY22 will be subject to testing at the end of the three-year performance period on 30 June 2024. In November
Subsequent to the end of the 2022 financial year, the Board resolved to set STI and LTI hurdles as follows for the 2023 financial year:
2021, after receiving approval from shareholders at the AGM, 450,564 performance rights were granted to Executive Director Mr Jim
Beyer, 156,196 and 189,709 performance rights were granted to executives Mr Stuart Gula and Mr Jon Latto respectively under the
Group’s Executive Incentive Plan (“EIP”). Mr Jon Latto resigned as an executive on 11 May 2022 and forfeited his 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.
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, and 67,350 and 55,661 performance rights were granted to executives Mr Stuart Gula and Mr Jon Latto respectively under the
Group’s EIP. Mr Jon Latto resigned as an executive on 11 May 2022 and forfeited his 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.
LTI awards granted in FY20 were 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 Mr Jon Latto under the Group’s EIP. Mr Jon Latto resigned as an executive on 11
May 2022 and forfeited his 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 ended on 30 June 2022 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: EVN, NCM, NST, OGC, PRU, RSG, SAR,
SBM, WGX, SLR, GOR, RMS)
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
100% award
three-year vesting period.
• 147% growth achieved
McPhillamys
15%
McPhillamys Project progress as determined by
50% award
the Board.
Production
15%
Production growth above the life of mine plan.
100% award
• Production for three year
period above target of
1,146koz
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)
2022
$’000
1,015,943
13,775
1.8
1.8
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
Net assets
1,577,299
1,584,305
835,081
716,464
636,842
Component
Links to FY23 Performance
Total Fixed
Remuneration
(TFR)
Salaries awarded effective 1 July 2022 are used as the basis for determining the value component for the
FY23 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 2023 financial year:
(STI)
KPI 1: Safety targets:
• All Injury Frequency Rate:
Jim Beyer
Stuart Gula
20%
20%
Incoming
CFO
15%
• Threshold: 5% reduction from 30 June 2022 level
(0% awarded);
• Target: 10% reduction from 30 June 2022 level
(33% awarded);
• Stretch: 15% reduction from 30 June 2022 level
(100% awarded);
• Pro-rated between each;
• Total Recordable Injury Frequency Rate:
• Threshold: 5% reduction from 30 June 2022 level
(0% awarded);
• Target: 10% reduction from 30 June 2022 level
(33% awarded);
• Stretch: 15% reduction from 30 June 2022 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: 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;
•
Increased rate of land rehabilitation; completing
actions on water and carbon efficiency plans;
46 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 47
Remuneration Report (Audited)Remuneration Report (Audited) Component
Links to FY23 Performance
Short Term Incentives
(STI)
Jim Beyer
Stuart Gula
KPI 5: Resource growth through discovery (assessed potential
20%
10%
or actual) or acquisition at the discretion of the Board; and
Incoming
CFO
15%
KPI 6: Individual performance targets:
10%
10%
20%
Specific individual targets and objectives that are focussed on
personal performance and organisational improvements that
are commercially confidential.
The Board retains discretion to adjust the STI mechanism and amounts.
Long Term Incentives
The performance rights issued for FY23 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. 8th to 11th of 14 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. 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 2025 testing date (referencing the then Board approved budget
gold production for FY26) 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 2022, will comprise the following gold producers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Evolution Mining Limited
Northern Star Resources Limited
Perseus Mining Limited
Capricorn Metals Limited
St Barbara Limited
Newcrest Mining Limited
Silver Lake Resources Limited
Gold Road Resources Limited
Ramelius Resources Limited
10. West African Resources
11. Westgold Resources Limited
12. Alkane Resources Limited
13. Red 5 Limited
14. Emerald Resources NL
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 Tony Bevan, the Company’s Interim Chief Financial Officer, is employed under a fixed term contract expiring on 14 October 2022.
The contract can be terminated immediately by the Company for reasons of serious misconduct.
Mr Anthony Rechici, the Company’s incoming Chief Financial Officer, due to commence on 3 October 2022, will be 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.
48 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 49
Remuneration Report (Audited)Remuneration Report (Audited) Non-Executive Directors
Table 3: Annual Non-Executive Director fees as at 30 June 2022
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 FY22, total non-executive directors’ fees paid were $742,734 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.
Key Management Personnel Remuneration
Table 1: Remuneration for the year ended 30 June 2022
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
2022
$
Non-executive directors
J Mactier(i)
F Morgan(ii)
190,000
125,156
S Scudamore(iii)
152,500
L Burnett(iv)
R Barwick(v)
137,500
70,056
Executive directors
$
-
-
-
-
-
$
-
-
-
-
-
$
19,000
12,516
15,250
13,750
7,006
$
-
-
-
-
-
$
-
-
-
-
-
J Beyer
780,419
171,150
4,850
81,818
93,224
538,878
$
-
-
-
-
-
-
-
$
%
209,000
137,672
167,750
151,250
77,062
-
-
-
-
-
1,670,339
42.51%
920,395
31.33%
Other executives
S Gula
J Latto
T Bevan
Total
537,810
77,539
348,437
72,000
-
-
4,850
4,850
-
35,333
37,697
-
54,050
210,813
23,779
-
-
-
51,353
466,116
-
72,000
-
-
2,413,878
248,689
14,550
222,370
171,053
749,691
51,353
3,871,584
*
#
+
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. Rights
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 $190,000 per annum are inclusive of all committee fees for roles on the committees shown in Table 2 below.
(ii) Mrs Morgan’s fees include $10,156 for her roles on the committees shown in Table 2 below.
(iii) Mr Scudamore’s fees include $37,500 for his roles on the committees shown in Table 2 below.
(iv) Mrs Burnett’s fees include $22,500 for her roles on the committees shown in Table 2 below.
(v) Mr Barwick’s fees include $8,083 for his roles on the committees shown in Table 2 below.
Table 2: Committee membership from 1 July 2021 to 30 June 2022
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(ii)
✔
✔
Chairperson(ii)
✔
Chairperson
✔
(i) Mr Barwick resigned from the Board on 14 January 2022.
(ii) Mrs Morgan became Chairperson of the Risk, Safety, Environment and Community Committee following Mr Barwick’s resignation from the Board.
Director
James Mactier(i)
Fiona Morgan
Steve Scudamore
Lynda Burnett
Total
Base Fee(ii)
Committee Fees
190,000
115,000
115,000
115,000
535,000
-
15,000
37,500
22,500
75,000
Total
190,000
130,000
152,500
137,500
610,000
(i) Mr Mactier’s fees are inclusive of all committee fees.
(ii) Base fees are exclusive of superannuation.
(iii) Committee membership fees are $7,500 per committee or $15,000 for the committee Chairperson.
Table 4: 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.
(i) Mr Mactier’s fees of $160,000 per annum are inclusive of all committee fees.
(ii) Mrs Morgan’s fees include $5,000 for her roles on committees.
(iii) Mr Scudamore’s fees include $25,000 for his roles on committees.
(iv) Mrs Burnett’s fees include $15,000 for her roles on committees.
(v) Mr Barwick’s fees include $12,000 for his roles on committees.
50 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 51
Remuneration Report (Audited)Remuneration Report (Audited) Table 5: Voluntary information – Non-IFRS – Remuneration received by executives for the year ended 30 June 2022
Table 6: Rights and options over equity instruments granted as compensation
The amounts disclosed below as executive KMP remuneration for 2022 reflect the realised benefits received by each KMP during the
All rights and options refer to rights and options over ordinary shares of Regis Resources Limited, which are exercisable on a one-for-
reporting period. The remuneration values disclosed below have been determined as follows:
one basis.
Fixed remuneration
There were no options granted to KMPs as compensation during the current year.
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.
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:
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
Rights
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 2020 financial year and were issued in July 2021.
Long-term incentives
The value of vested performance rights was determined based on a 5-day VWAP including the date of issue. These performance rights
were granted in the 2019 financial year and subject to testing at the end of the three-year performance period on 30 June 2021. The
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(ii)
S Gula
Short Term Incentives
12 month service
26 Nov 20
$3.67
1 Jul 21
37,816
18,208
11,565
100%
-
condition
shares were issued in October 2021.
12 month service
25 Nov 21
$1.89
1 Jul 22
89,917
42,758
47,758
-
24%
Director
Executive directors
J Beyer
Other executives
S Gula
J Latto
T Bevan
Fixed
Awarded STI
Awarded STI
Remuneration
$
(cash)
$
(shares)
Awarded LTI
Total Value
$
$
$
904,850
179,610
93,148
124,646
1,302,254
592,263
470,869
72,000
95,396
85,410
-
28,487
44,850
-
-
-
-
716,146
601,129
72,000
Total executive KMP
2,039,982
360,416
166,485
124,646
2,691,529
Non-executive directors
742,734
-
-
-
742,734
Total KMP remuneration
2,782,716
360,416
166,485
124,646
3,434,263
The amounts disclosed above are not the same as the remuneration expensed in relation to each KMP in accordance with the
accounting standards ($3,871,584 for 2022, 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.
condition(i)
Long Term Incentives
Relative TSR
Absolute TSR
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
Relative TSR
Ore reserves
McPhillamys
25 Nov 20
25 Nov 20
25 Nov 20
25 Nov 21
25 Nov 21
25 Nov 21
$1.73
$1.05
$4.17
$4.17
$4.17
$4.17
$1.85
$3.43
$3.43
$0.93
$1.78
$1.78
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
-
-
-
-
-
-
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
30 Jun 24
225,282
78,098
94,855
30 Jun 24
112,641
39,049
47,427
30 Jun 24
112,641
39,049
47,427
862,083
331,166
316,383
0%
0%
0%
69%
34%
69%
-
-
-
-
-
-
100%
100%
100%
31%
66%
31%
20%
20%
20%
20%
20%
20%
Value of rights granted during the year
$780,457 $292,458 $347,318
(i) 50% of the STI’s for the year ended 30 June 2021 was paid in performance rights which vested 12 months after the end of the financial year.
• The statutory remuneration shows benefits before they are actually received by the KMPs, noting that some components of the
(ii) Mr Jon Latto resigned as an executive on 11 May 2022 and forfeited all unvested STI and LTI awards
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.
In relation to the performance rights granted in November 2019, the three year performance period during which the performance
rights were tested ended on 30 June 2022. 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 2020 and November 2021, there is a three year
performance period which ends on 30 June 2023 and 30 June 2024, 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 21.
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 2021 to 30 June 2024).
116,126 performance rights vested during the year.
52 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 53
Remuneration Report (Audited)Remuneration Report (Audited) Auditor’s Independence Declaration
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
Granted as
Held at end
of period
30 June
Vested at 30 June 2022
Not
1 July 2021
remuneration
Exercised
Forfeited
2022
Total
Exercisable
exercisable
Rights
J Beyer
J Latto
S Gula
482,368
132,212
78,915
540,480
(97,693)
(100,889)
824,266
48,537
48,537
198,953
(18,208)
(312,957)
-
237,467
(11,565)
-
304,817
-
-
-
-
-
-
-
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:
Non-executive directors
J Mactier
F Morgan
S Scudamore
L Burnett
R Barwick
Executive directors
J Beyer
Other executives
S Gula
J Latto
Total
Held at
On exercise of
Net change
Held at
1 July 2021
options/rights
other
30 June 2022
66,234
529,190
34,484
15,897
5,000
-
-
-
-
-
80,605
97,693
4,692
-
736,102
11,565
18,208
127,466
45,000
-
10,000
-
(5,000)(i)
-
-
(18,208)(ii)
31,792
111,234
529,190
44,484
15,897
-
178,298
16,257
-
895,360
(i) Mr Barwick resigned from the Board on 14 January 2022 and was no longer a KMP at 30 June 2022.
(ii) Mr Latto resigned from his position as Chief Financial Officer on 11 May 2022 and was no longer a KMP at 30 June 2022.
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 2022, services totalling $78,043 (2021: $529,793) have been provided on normal commercial terms to the
Group by Mintrex Pty Ltd. Mrs Morgan was Managing Director and Chief Executive Officer of Mintrex until 30 September 2021 and was a
member of the Board of Mintrex until 30 June 2022. She remains a shareholder. The balance outstanding at 30 June 2022 was $1,154
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, 24 August 2022
54 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 55
Remuneration Report (Audited) 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 2022 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. iii. KPMG Derek Meates Partner Perth 24 August 2022 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 2022 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. iii. KPMG Derek Meates Partner Perth 24 August 2022 Financial Statements
Consolidated Statement of Comprehensive Income
57
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
58
59
60
61
97
98
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2022
Revenue
Cost of goods sold
Gross profit
Other income/(expenses)
Personnel costs
Investor and corporate costs
Occupancy costs
Other 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
3
12
18
5
Consolidated
2022
$’000
2021
$’000
1,015,943
819,162
(945,524)
(582,659)
70,419
236,503
(1,912)
(402)
(15,933)
(8,060)
(1,365)
(1,379)
(11,117)
(11,210)
19,443
(5,668)
13,775
13,775
(14,608)
(4,687)
(767)
(770)
(610)
(2,265)
212,394
(66,196)
146,198
146,198
-
-
13,775
146,198
Total comprehensive income attributable to members of the parent
13,775
146,198
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
1.83
1.82
26.37
26.32
(cents per share)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
56 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 57
Remuneration Report (Audited) Consolidated Balance Sheet
As at 30 June 2022
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
Consolidated
2022
$’000
Note
Current assets
Cash and cash equivalents
Receivables
Current tax assets
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
2021
$’000
242,627
14,832
-
207,354
13,092
8,139
141,033
161,475
183
2,635
183
4,398
372,436
423,515
213,132
324,442
509,104
114,998
736,118
2,301
56,741
185,643
335,618
491,702
18,655
794,640
2,688
60,704
1,956,836
2,329,272
1,889,650
2,313,165
151,339
151,348
-
4,903
28,202
184,444
125,314
295,883
119,687
26,645
567,529
751,973
325
5,975
24,481
182,129
113,624
293,821
103,921
35,365
546,731
728,860
1,577,299
1,584,305
1,096,575
1,095,533
35,961
444,763
35,157
453,615
1,577,299
1,584,305
Consolidated
Share-based
Financial
Retained profits/
Note
Issued
capital
$’000
1,095,533
payment
reserve
$’000
33,440
assets
reserve
$’000
1,717
At 1 July 2021
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
Shares issue transaction costs
24
6
21
-
-
-
-
-
1,046
-
(4)
-
-
-
804
-
-
-
-
-
-
-
-
-
-
-
-
(accumulted
losses)
Total equity
$’000
$’000
453,615
1,584,305
13,775
13,775
-
-
13,775
13,775
-
804
(22,627)
(22,627)
-
-
-
1,046
-
(4)
At 30 June 2022
1,096,575
34,244
1,717
444,763
1,577,299
435,145
29,506
1,717
368,713
835,081
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)
-
-
-
-
-
-
-
-
3,934
-
-
-
-
-
-
-
-
-
-
-
-
146,198
146,198
-
-
146,198
146,198
-
3,934
(61,296)
(61,296)
-
-
-
10,206
659,776
(9,594)
At 30 June 2021
1,095,533
33,440
1,717
453,615
1,584,305
The above statement of changes in equity should be read in conjunction with the accompanying notes.
The above balance sheet should be read in conjunction with the accompanying notes.
58 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 59
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Notes To The Financial Statements
Consolidated
2022
$’000
2021
$’000
Note
1,015,698
790,619
(658,972)
(435,767)
279
(7,567)
(2,444)
459
(1,900)
(77,125)
276,286
Cash flows from operating activities
Receipts from gold sales
Payments to suppliers and employees
Interest received
Interest paid
Income tax paid
Net cash from operating activities
7
346,994
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Payments for exploration and evaluation
Payments for acquisition of assets (net of cash acquired)
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/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
(46,558)
(21,139)
-
(56,246)
-
-
(98,232)
38
(43,899)
(885,001)
(1,036)
(8,050)
(120,886)
(129,598)
(321,922)
(1,088,685)
-
(7,739)
(21,580)
-
(31,026)
(60,345)
(35,273)
242,627
207,354
650,026
(9,594)
(51,089)
293,652
(20,397)
862,598
50,199
192,428
242,627
22
21
6
18
7
The above statement of cash flows should be read in conjunction with the accompanying notes.
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
62
63
63
65
66
67
68
68
69
70
70
70
71
72
74
75
76
78
78
79
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
80
80
81
82
84
85
85
86
88
93
94
94
94
95
95
96
60 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 61
Notes to the Financial Statements (continued) For the year ended 30 June 2022 Notes to the Financial Statements
For the year ended 30 June 2022
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 24 August 2022.
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 2021. 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, unless
otherwise stated. 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.
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 xx
Page xx
Page xx
Page xx
Page xx
Page xx
Page xx
Page xx
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.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting
Performance for the year
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
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,
Both the functional currency of each entity within the Group and the Group’s presentation currency is Australian dollars.
Anchor and Dogbolter-Coopers open-pits, and Duketon South Operations (“DSO”), currently incorporating Garden Well (open-pit and
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.
underground), Rosemont (open-pit and underground), Erlistoun, Tooheys Well and Baneygo open-pits; and the Tropicana Gold Project.
In the prior year, Regis acquired a 30% interest in the Tropicana Gold Project. Tropicana is operated by joint venture partner AngloGold
Ashanti Australia Limited and currently comprises the Havana and Boston Shaker open-pits and the Boston Shaker and Tropicana
underground mines.
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.
62 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 63
Notes to the Financial Statements (continued) For the year ended 30 June 2022 Impairment of
non-current
assets
Depreciation and
Depreciation
capitalised
Total depreciation
and amortisation
recognised in
the statement of
comprehensive
income
Segment result
Segment net
operating profit/
1. Segment Information (continued)
2. Revenue and Other Income/(Expenses)
The following table presents financial information for reportable segments for the years ended 30 June 2022 and 30 June 2021:
Duketon North
Duketon South
Operations
Operations
Tropicana(*)
Unallocated
Total
Continuing
Operations
2022
$’000
2021
$’000
2022
$’000
2021
$’000
2022
$’000
2021
2022
$’000
$’000
2021
$’000
2022
$’000
2021
$’000
Segment revenue
Sales to external
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.
customers
156,799
186,507 551,327 590,396
307,572
41,932
-
-
1,015,698
818,835
Interest
Other revenue
-
-
-
-
-
-
245
327
245
327
Interest income from cash at bank is recognised as it accrues using the effective interest method.
Total segment
revenue
156,799
186,507 551,327 590,396
307,572
41,932
245
327
1,015,943
819,162
Total revenue per
the statement of
comprehensive
income
1,015,943
819,162
Interest expense
185
431
593
668
8,905
780
66
21
9,749
1,900
Revenue
Gold sales
Interest
Gold forward contracts
amortisation
36,052
38,837 170,760 128,152
86,523
21,641
1,589
1,131
294,924
189,761
-
-
-
-
10,822
-
295
610
11,117
610
As part of the risk management policy, the Group has entered into gold forward contracts to manage the gold price of a proportion of
Consolidated
2022
$’000
2021
$’000
1,015,698
818,835
245
327
1,015,943
819,162
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
(336)
(712)
delivered to MBL or its agent.
Open contracts at balance date are summarised in the table below:
294,588
189,049
Continuing Operations
ounces
ounces
2022
2021
2022
$/oz
2021
$/oz
2022
$’000
2021
$’000
2022
$’000
2021
$’000
Within one year:
- Flat forward contracts
100,000
100,000
1,571
1,571
157,114
157,114
(107,180)
(79,142)
Gold for physical
Contracted gold
Value of
delivery
sale price
committed sales
Mark-to-market
Later than one year but not
later than five years:
- Flat forward contracts
120,000
220,000
1571
1,571
188,537
345,651
(134,693)
(176,131)
220,000
320,000
345,651
502,765
(241,873)
(255,273)
(loss) before tax
(14,015)
52,690
25,463 174,634
33,338
6,152 (25,343)
(21,082)
19,443
212,394
Segment assets
Segment assets
at balance date
156,734
118,826 632,129 574,472
1,009,097
1,043,360 531,312 576,507
2,329,272
2,313,165
Mark-to-market has been calculated with reference to the following spot price at period end
$2,616/oz
$2,362/oz
Capital
expenditure for
the year
58,357
40,902 128,301 103,462
105,376
15,447
26,365
49,533
318,399
209,344
(*) The Group has a 30% interest in the Tropicana Gold Project (Tropicana) which is an unincorporated joint venture operated by AngloGold Ashanti
Australia Limited. The Group has determined it does not have control or joint control over Tropicana. Regis has the rights to its 30% interest share of
gold produced by the joint venture and recognises its share of the assets and liabilities in accordance with its 30% interest consistent with the Group’s
accounting policies.
Other income/(expenses)
Rehabilitation provision adjustment
Rental income
Other income
Other expenses
Consolidated
2022
$’000
2021
$’000
(1,855)
(534)
114
1
(172)
(1,912)
50
68
14
(402)
64 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 65
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 3. Expenses
Accounting Policies
Cash costs of production
Cash costs of mining and processing (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 inventories for ore stockpiles, gold in circuit and consumables.
Cost of goods sold
Cash costs of mining and processing
Royalties
Depreciation of mine plant and equipment
Amortisation of mine properties
Write-down of inventory ore stockpiles
Inventory increases of bullion on hand
Depreciation
Consolidated
2022
$’000
2021
$’000
539,625
350,999
43,749
86,935
38,791
71,016
206,853
117,632
74,198
(5,836)
4,346
(125)
945,524
582,659
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 or ore mined as appropriate.
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.
3. Expenses (continued)
Employee benefits (personnel) costs
Wages and salaries
Defined contribution superannuation expense
Share-based payments expense
Employee bonuses
Payroll tax payments
Other employee benefits expense (including FBT)
Less: Amounts capitalised to projects
Employee benefits expense recognised in the statement of
comprehensive income
Amounts included within cost of goods sold
Amounts included within personnel costs
Total
4. Earnings per Share
Accounting Policy
Note
24
Consolidated
2022
$’000
2021
$’000
58,166
48,985
5,625
804
2,022
3,603
1,435
71,655
(10,402)
4,580
3,934
869
3,181
(20)
61,529
(8,686)
61,253
52,843
45,320
15,933
61,253
38,235
14,608
52,843
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.
Consolidated
2022
$’000
2021
$’000
Amortisation
Earnings used in calculating EPS
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
Net profit attributable to ordinary equity holders of the parent
13,775
146,198
concerned.
Depreciation and amortisation
Depreciation expense
Amortisation expense
Less: Amounts capitalised to exploration projects
Consolidated
2022
$’000
88,071
206,853
(336)
2021
$’000
72,129
117,632
(712)
Depreciation and amortisation charged to the statement of comprehensive income
294,588
189,049
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.
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
Weighted average number of ordinary shares adjusted for the effect of dilution
No. shares
No. shares
(’000s)
(’000s)
754,141
485
754,626
1,098
755,724
508,180
46,233
554,413
-
990
555,403
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.
66 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 67
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 5. Current Income Tax
Accounting Policy
Current tax
7.
Cash and Cash Equivalents
Accounting Policy
Cash and cash equivalents
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. Cash at bank earns interest at floating rates based
reporting date, and any adjustment to tax payable in respect of previous years.
on daily bank deposit rates.
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 follows:
Accounting profit before income tax
At the Group’s statutory income tax rate of 30% (2021: 30%)
Share-based payments
Other non-deductible items
Adjustment in respect of income tax of previous years
Income tax expense reported in the statement of comprehensive income
6. Dividends
Declared and paid during the year:
Dividends on ordinary shares
Final franked dividend for 2021: 3 cents per share (2020: 8 cents per share)
Interim franked dividend for 2022: nil (2021: 4 cents per share)
Consolidated
2022
$’000
2021
$’000
(6,021)
65,941
11,689
5,668
255
66,196
19,443
5,833
241
16
(422)
5,668
212,394
63,718
1,180
6
1,292
66,196
Consolidated
2022
$’000
2021
$’000
22,627
-
22,627
40,814
20,482
61,296
Proposed by the directors after balance date but not recognised as a liability at 30 June:
Dividends on ordinary shares
Final dividend for 2022: 2 cents per share (2021: 3 cents per share)
15,097
22,624
Dividend franking account
Amount of franking credits available to shareholders of Regis Resources Limited for
subsequent financial years
93,415
101,391
The ability to utilise the franking credits is dependent upon the ability to declare dividends.
At 30 June 2022, the Group had no undrawn, committed borrowing facilities available (2021: nil). Refer to Note 18.
Cash and cash equivalents in the balance sheet and cash flow statement
Cash at bank and on hand
Consolidated
2022
$’000
207,354
207,354
2021
$’000
242,627
242,627
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 $604,000 (2021: $504,000) on deposit to secure bank guarantees in relation to the Perth office
leases and two office leases in NSW. The amounts will be held for the terms of the leases.
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
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
Note
15
17
Consolidated
2022
$’000
2021
$’000
13,775
146,198
11,117
1,461
124
804
1,856
294,588
1,740
(7,047)
1,763
(325)
2,610
11,690
12,838
610
365
(21)
3,934
534
189,049
(1,084)
(58,076)
(1,479)
(7,145)
7,229
(3,783)
(45)
346,994
276,286
68 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 69
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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 in note 18.
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.
The only 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
2022
$’000
-
8,455
1,443
2,350
95
623
126
13,092
2021
$’000
3,402
6,804
2,730
160
14
698
1,024
14,832
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.
Bullion on hand is predominantly dore held at the refinery which is in the process of being refined into gold bars and dore held at site
which is about to be shipped to the refinery. Bullion also includes gold bars held for sale. Dore is readily refinable into gold bars and
saleable for cash within a 10 day period.
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.
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
Land
Improvements
Equipment
Equipment
Infrastructure
WIP
Consolidated
$’000
$’000
$’000
Net carrying amount at 1 July 2021
55,406
554
164,072
Additions
4,933
-
18,343
Depreciation expense
Transfers between classes
Rehabilitation provision adjustments
Disposals
-
-
-
-
(242)
(39,088)
-
-
-
1,382
17,655
(206)
$’000
1,792
496
(882)
400
-
(1)
$’000
$’000
Total
$’000
102,702
11,092
335,618
995
20,501
45,268
(28,318)
-
(68,530)
2,740
(4,522)
-
(5,362)
-
-
-
12,293
(207)
Net carrying amount at 30 June 2022
60,339
312
162,158
1,805
72,757
27,071
324,442
At 30 June 2022
Cost
60,339
1,882
406,876
5,300
209,742
27,071
711,210
Accumulated depreciation
-
(1,570)
(244,718)
(3,495)
(136,985)
-
(386,768)
Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date are classified as
Net carrying amount
60,339
312
162,158
1,805
72,757
27,071
324,442
current assets, all other inventories are classified as non-current.
Current
Bullion on hand
Ore stockpiles
Gold in circuit
Consumable stores
Non-current
Consolidated
2022
$’000
14,562
82,617
25,536
18,318
141,033
2021
$’000
8,726
106,854
32,427
13,468
161,475
Ore stockpiles (after write-down to net realisable value)
213,132
185,643
At 30 June 2022, all inventories were carried at cost except for a portion of the Duketon and Tropicana ore stockpiles written back to
net realisable value resulting in an expense totalling $48,264,000 and $25,934,000 respectively being recognised in cost of goods sold.
At 30 June 2021, all inventories were carried at cost except for a portion of the Duketon current ore stockpiles written back to net
realisable value resulting in an expense totalling $4,346,000 being recognised in cost of goods sold.
Net carrying amount at 1 July 2020
52,027
804
84,472
1,364
92,397
30,612
261,676
Acquisition – Tropicana Gold Project
(Refer Note 22)
Additions
Depreciation expense
Transfers between classes
Rehabilitation provision adjustments
Disposals
-
3,379
-
-
-
-
-
4
95,598
4,423
564
379
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
70 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 71
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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.
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 2022.
Consolidated
As at
As at
30 June 2022
30 June 2021
Plant & equipment
Furniture & equipment
Buildings & infrastructure
Total right-of-use assets
Right-of-Use Assets
Balance at 1 July 2021
Depreciation charge for the year
Additions to right-of-use assets
Balance at 30 June 2022
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
Amounts recognised in profit or loss
Leases under AASB 16
Interest on lease liabilities
Expenses relating to short-term leases
$’000
44,453
24
12,264
56,741
Consolidated
Plant &
Furniture &
Buildings &
Equipment
Equipment
Infrastructure
Note
22
$’000
41,532
(22,990)
25,911
44,453
24,249
(12,780)
7,481
22,582
41,532
$’000
49
(25)
-
24
57
(58)
50
-
49
$’000
19,123
(7,051)
192
12,264
13,728
(5,574)
3,047
7,922
19,123
Consolidated
2022
$’000
1,717
76
$’000
41,532
49
19,123
60,704
Total
$’000
60,704
(30,066)
26,103
56,741
38,034
(18,412)
10,578
30,504
60,704
2021
$’000
1,235
44
Lease liability recognised
Comprising:
Current
Non-current
Consolidated
As at
As at
30 June 2022
30 June 2021
$’000
$’000
28,202
26,645
54,847
24,481
35,365
59,846
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 2022 totalled $479,479,060
(2021: $348,903,103) and includes non-lease components such as labour.
Amounts recognised in statement of cash flows
Total cash outflow for leases under AASB 16
Includes non-lease components such as labour.
Consolidated
2022
$’000
31,026
2021
$’000
20,397
72 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 73
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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.
Notes to the Financial Statements (continued)
For the year ended 30 June 2021
12. Exploration and Evaluation Assets (continued)
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 whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
Factors that could impact future recoverability include the level of reserves and resources, future technological changes
which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and
changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits
Consolidated
and net assets will be reduced in the period in which the determination is made.
Reconciliation of movements during the year
Balance at 1 July
Expenditure for the period
Acquisition of exploration & evaluation assets – Tropicana
Acquisition of tenements
Impairment
Transferred to mine properties under development
Transferred to mine properties
Balance at 30 June
Impairment
Note
22
15
13
14
2022
$’000
491,702
53,574
-
-
(11,117)
-
(25,055)
509,104
2021
$’000
230,260
46,509
213,300
10,648
(610)
(8,405)
-
491,702
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.
Total impairment losses recognised in the statement of comprehensive income for the year were as follows:
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
2022
$’000
2,305
2021
$’000
2,686
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.
Consolidated
13. Mine Properties under Development
Exploration and evaluation assets
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
2022
$’000
11,117
26,874
73,442
15,978
47,282
159,320
186,208
509,104
2021
$’000
610
20,631
54,310
12,539
41,437
148,259
214,526
491,702
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 are recognised in the statement of comprehensive
income.
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
2022
$’000
18,655
98,673(i)
-
-
(2,330)
114,998
2021
$’000
2,188
8,062(i)
8,405
-
-
18,655
(i) Costs associated with Garden Well Underground and the Tropicana Joint Venture Havana Open Pit cutback (2021: Garden Well Underground).
74 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 75
Notes to the Financial Statements (continued)For the year ended 30 June 2022 14. Mine Properties
Accounting Policies
Pre-strip costs
14. Mine Properties (continued)
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
Net carrying amount at 1 July 2021
a units of production basis, where the unit of account is tonnes of ore mined.
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
Additions
Transfers from exploration and
evaluation
Transfers from pre-production
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
Rehabilitation provision adjustment
Consolidated
Production
Pre-strip
Capital
Stripping Costs
$’000
119,874
55,583
Costs
$’000
98,359
31,223
Development
$’000
46,048
34,080
-
-
-
-
-
-
-
-
-
Other Mine
Properties
$’000
530,359
28
25,055
2,330
38
Total
$’000
794,640
120,914
25,055
2,330
38
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.
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 mined.
Amortisation expense
Net carrying amount at 30 June 2022
(54,411)
121,046
(52,982)
76,600
(36,859)
43,269
(62,607)
(206,859)
495,203
736,118
At 30 June 2022
Cost
275,496
264,928
Accumulated amortisation
(154,450)
(188,328)
Net carrying amount
121,046
76,600
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
100,029
(56,760)
43,269
35,757
29,716
674,203
1,314,656
(179,000)
(578,538)
495,203
736,118
53,928
-
275,939
127,667
94,726
53,924
91,528
44,027
-
-
-
-
-
-
-
-
-
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
At 30 June 2021
Cost
219,912
233,705
Accumulated amortisation
(100,038)
(135,346)
Net carrying amount
119,874
98,359
65,949
(19,901)
46,048
646,759
1,166,325
(116,400)
(371,685)
530,359
794,640
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.
76 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 77
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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.
Exploration and evaluation assets
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
An impairment loss of $11,117,000 (2021: $610,000) has been recognised in relation to tenements that were surrendered, relinquished
immediately in the statement of comprehensive income.
or expired during the year (refer to Note 12).
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(i)
(i)
Includes stamp duty on Tropicana acquisition.
Consolidated
2022
$’000
35,425
55,191
5,634
55,089
2021
$’000
30,833
56,484
4,090
59,941
151,339
151,348
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
2022
$’000
623
1,124
3,156
4,903
768
118,919
119,687
107,493
-
(1,075)
14,196
1,461
2021
$’000
698
252
5,025
5,975
1,453
102,468
103,921
76,985
30,364
(203)
(18)
365
122,075
107,493
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.
78 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 79
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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)
(i) Net of capitalised borrowing costs and interest.
Interest-bearing liabilities
Finance costs
Interest expense
Unwinding of discount on provisions
Secured Bank Loan
Note
11
11
Consolidated
2022
$’000
28,202
28,202
2021
$’000
24,481
24,481
26,645
295,883(i)
322,528
35,365
293,821(i)
329,186
2022
$’000
9,749
1,461
11,210
2021
$’000
1,900
365
2,265
Consolidated
Current
18. Net Debt and Finance Costs (continued)
Interest-bearing liabilities (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
2022
$’000
2021
$’000
Financial assets at amortised cost – term deposit
183
183
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.
In the prior 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
The Group’s holding of these financial instruments exposes it to the following risks:
Resources Pty Ltd and LFB Resources NL;
• Maturity date of 31 May 2024 being three years from Financial Close.;
• 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;
• 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
• Voluntary repayment can be made anytime subject to compliance with the loan agreement.
included throughout this financial report.
During the current year, the Company worked with Bank of America to syndicate this debt to Macquarie Bank Limited, HSBC, National
Australia Bank and Westpac.
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.
80 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 81
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 20. Financial Risk Management (continued)
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
Market Risk
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
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and commodity 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’s revenue is derived from the sale of gold in Australian dollars and costs are mainly incurred in
Australian dollars. However, because gold is globally traded in US dollars, the Group is exposed to foreign currency risk. The Group
hedges its gold ounces in Australian dollars, which provides for some coverage of 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
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
foreign currency risk at reporting date.
risk arises from cash and cash equivalents and gold bullion awaiting settlement. The Group has adopted the policy of dealing with
•
Interest rate risk: The Group is exposed to interest rate risk through its borrowings and cash deposits, which attract variable interest
creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. Cash holdings are with Commonwealth
rates. The Group regularly reviews its current working capital requirements against cash balances and the returns available on short
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
term deposits.
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 2022
($’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
145,705
(145,705)
(145,705)
-
-
-
-
Lease liabilities
Secured bank loan
Total
30 June 2021
($’000)
54,847
(57,428)
(17,010)
(12,336)
(9,036)
(17,829)
(1,217)
295,883
(318,308)
(4,577)
(4,577)
(309,154)
-
-
496,436
(521,442)
(167,293)
(16,913)
(318,190)
(17,829)
(1,217)
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)
-
-
-
-
• 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
2022
$’000
183
(54,847)
(54,664)
2021
$’000
183
(59,846)
(59,663)
207,354
242,627
(295,883)
(293,821)
(88,529)
(51,194)
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.
59,846
(63,264)
(14,649)
(11,271)
(15,155)
(16,183)
(6,006)
Cash flow sensitivity analysis for variable rate instruments
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)
A change of 200 basis points (2021: 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.
Lease liabilities
Secured bank loan
Total
Assets pledged as security
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.
Financial guarantee liabilities
As at 30 June 2022, the Group did not have any financial guarantee liabilities (2021: Nil).
Interest Expense
Increase 2.0% (2021: 1.0%)
Decrease 2.0% (2021: 1.0%)
Consolidated
2022
$’000
(6,000)
6,000
2021
$’000
(252)
252
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.
82 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 83
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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
21. Issued Capital and Reserves (continued)
Accounting Policy (continued)
Balance at 1 July 2020
Net gain on financial instruments recognised in equity
Tax effect of transfers and revaluations
Share-based payment transactions
Balance at 30 June 2021 and 1 July 2021
Net gain on financial instruments recognised in equity
Tax effect of transfers and revaluations
Share-based payment expense
Balance at 30 June 2022
Nature and purpose of reserves
Share-based payment reserve
Share-based
Financial
Total
payment reserve
assets reserve
Reserves
$’000
29,506
-
-
3,934
33,440
-
-
804
34,244
$’000
1,717
-
-
-
1,717
-
-
-
1,717
$’000
31,223
-
-
3,934
35,157
-
-
804
35,961
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.
Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of shares or options are recognised as a
Financial assets reserve
deduction from equity, net of any related income tax effects.
The financial assets reserve records fair value changes on financial assets designated at fair-value through other comprehensive
Ordinary shares – issued and fully paid
Movement in ordinary shares on issue
At 1 July 2020
Issued on exercise of options and performance rights
Dividend reinvestment
Issued on acquisition (Stone Resources Australia Limited)
Issued on acquisition (Tropicana 30% interest)
Transaction costs
At 30 June 2021
Issued on exercise of options and performance rights
Dividend reinvestment
Transaction costs
At 30 June 2022
Consolidated
2022
$’000
2021
$’000
1,096,575
1,095,533
No. shares
(‘000s)
$’000
508,180
435,145
836
2,552
1,823
-
10,206
9,750
240,750
650,026
-
(9,594)
754,141
1,095,533
191
508
-
-
1,046
(4)
754,840
1,096,575
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.
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 prior 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 and Tropicana
underground operations. 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.
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.
84 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 85
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022
22. Tropicana Gold Project Asset Acquisition (continued)
23. Deferred Income Tax (continued)
The value of the assets acquired and liabilities assumed has been allocated on a Fair Value basis. Details of the purchase consideration
Deferred income tax at 30 June relates to the following:
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 2022 there are no unrecognised temporary differences associated with the Group’s investment in
subsidiaries (2021: $nil).
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused
tax losses, to the extent that it is probable that future taxable profits will be available to utilise these deductible temporary differences.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the temporary differences when
they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are only offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred
tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Deferred 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
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
Closing balance at 30 June – net deferred tax (liabilities)/ assets
Consolidated
2022
$’000
433
5,495
597
78
23,977
67,077
17,040
113,512
228,209
(102,895)
125,314
6,937
37,179
284
2,423
56,072
102,895
(102,895)
-
2021
$’000
691
(2,022)
(119)
159
15,027
53,800
4,337
88,103
159,976
(46,352)
113,624
6,107
32,602
168
3,231
4,244
46,352
(46,352)
-
(113,624)
(117,408)
(10,882)
(808)
(255)
4,038
(125,314)
(113,624)
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.
86 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 87
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 23. Deferred Income Tax (continued)
Tax Consolidation
24. Share-based Payments (continued)
Summary of options granted
The Company and its wholly-owned Australian resident entities became part of a tax-consolidated group on 14 December 2006. As a
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in, share options
consequence, all members of the tax-consolidation group are taxed as a single entity from that date. The head entity within the tax-
issued during the year:
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.
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
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
Weighted average share price at the date of exercise
entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this agreement
Weighted average remaining contractual life
2022
No.
WAEP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
No.
545,000
-
-
(545,000)
-
-
-
2022
n/a
n/a
n/a
n/a
WAEP
$3.6923
-
$3.9000
$3.4185
$1.4000
$3.9000
-
2021
$5.41
n/a
$3.90
n/a
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 options share-based payments expense
Performance rights expense
Total expense arising from share-based payment transactions
Consolidated
2022
$’000
-
804
804
2021
$’000
3
3,931
3,934
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.
Range of exercise prices
Weighted average fair value of options granted during the year
Option pricing model
The fair value of the equity-settled share options granted under the ESOP is estimated as at the date of grant using a Black-Scholes
option pricing model taking into account the terms and conditions upon which the options were granted. There were no new grants of
employee options during the years ended 30 June 2022 and 30 June 2021.
Performance Rights
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 Executive Incentive Plan (“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.
Mr Jon Latto resigned as CFO on 11 May 2022 and 58,343 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 Jon Latto were reversed in FY22.
The table below details the terms and conditions of the grant and the assumptions used in estimating fair value:
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 12 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
The vesting of all options is subject to service conditions being met whereby the recipient must meet the eligible employee criteria as
Tranche F
15% of the Performance Rights
Annual production growth above levels contained in the Life of Mine
defined in the Option Plan.
Plan. Growth in production can arise from M&A activity.
88 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 89
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).
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 24. Share-based Payments (continued)
Performance Rights (continued)
24. Share-based Payments (continued)
Performance Rights (continued)
The following table details the terms and conditions of the grant and the assumptions used in estimating fair value:
In September 2020, 592,447 Performance Rights were granted to employees in the form of short-term incentives (STI’s) under the
Tranche A & B
Tranche C & D
Tranche E & F
Tranche G
STI
LTI
Group’s EIP. The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
Tranche
Weighting
Performance Conditions
26 November 2019 26 November 2019 26 November 2019 26 November 2019 26 November 2019
Tranche H
100% of the Performance Rights
Employee being employees of the company as at 11 December 2020
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
$4.62
nil
4.00%
0.73%
35%
$4.62
nil
4.00%
0.73%
35%
$4.62
nil
4.00%
0.73%
35%
$4.62
nil
4.00%
0.77%
35%
$4.62
nil
4.00%
0.77%
35%
3
3
3
0.6
4
1 July 2019
1 July 2019
1 July 2019
1 July 2019
1 July 2019
Test date
30 June 2022
30 June 2022
30 June 2022
1 July 2020
30 June 2023
Remaining performance
period (years)
Nil
Nil
Nil
Nil
1
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).
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 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
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
Test date
30 June 2023
30 June 2023
30 June 2023
1 July 2021
11 December 2020
Remaining performance
period (years)
1
1
1
Nil
Nil
Mr Jon Latto resigned as CFO on 11 May 2022 and 55,661 performance rights lapsed upon the date of the resignation in accordance
The fair value of the Performance Rights granted during FY21 was $4,117,748 and the weighted average fair value was $4.39 (Tranche
with the terms and conditions. In accordance with AASB 2, expenses recognised for Mr Jon Latto were reversed in FY22.
A,D and E: $731,827, $2.64, Tranche G: $248,322, $3.67 and Tranche H: $3,137,599, $5.30).
The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
FY22 Performance Rights
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
In November 2021, a total of 796,467 Performance Rights were granted to the Chief Executive Officer and Managing Director, Mr Jim
Beyer (450,563), and to executives Mr Stuart Gula (189,709) and Mr Jon Latto (156,195) in the form of long-term incentives (LTI’s) under
the Group’s EIP.
Mr Jon Latto resigned as CFO on 11 May 2022 and 156,195 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 Jon Latto were reversed in FY22.
The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
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
Tranche
Weighting
Performance Conditions
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.
Mr Jon Latto resigned as CFO on 11 May 2022 and 18,208 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 Jon Latto were reversed in FY22.
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
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 F
25% of the Performance Rights
The Company’s life of mine reserves growth in excess of depletion
25% 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 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 F, which have
non-market based performance conditions.
In November 2021, a total of 180,433 Performance Rights were granted to the Chief Executive Officer and Managing Director, Mr Jim
Beyer (89,917), and to executives Mr Stuart Gula (47,758) and Mr Jon Latto (42,758) in the form of short-term incentives (STI’s) under
the Group’s EIP.
The fair value at grant date of Tranche G, which has non-market based performance conditions, was estimated using a Black Scholes
Mr Jon Latto resigned as CFO on 11 May 2022 and 42,758 performance rights lapsed upon the date of the resignation in accordance
option pricing model.
with the terms and conditions. In accordance with AASB 2, expenses recognised for Mr Jon Latto were reversed in FY22.
90 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 91
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 24. Share-based Payments (continued)
Performance Rights (continued)
25. Related Parties
Key management personnel compensation
The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:
The key management personnel compensation included in employee benefits expense (Note 3) and share-based payments (Note 24), is
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 2022
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.
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)
Tranche A
Tranche D
Tranche F
Tranche G
25 November 2021
25 November 2021
25 November 2021
25 November 2021
$1.930
Nil
3.25%
1.03%
45%
3
$1.930
Nil
3.25%
1.03%
45%
3
$1.930
Nil
3.25%
1.03%
45%
3
$1.930
Nil
3.25%
0.55%
45%
0.6
Commencement of measurement period
1 July 2021
1 July 2021
1 July 2021
25 November 2021
Test date
30 June 2024
30 June 2024
30 June 2024
1 July 2022
Remaining performance period (years)
2
2
2
Nil
The fair value of the Performance Rights granted during the year was $1,417,191 and the weighted average fair value was $1.45
(Tranche A, D and F: $1,075,631, $1.35, Tranche G: $341,560, $1.89).
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
2022
891,837
976,900
(591,469)
(131,004)
(48,537)
1,097,727
$1.95
1 year
$1.45
2021
925,560
937,401
(226,195)
(685,052)
(59,877)
891,837
$3.59
2 years
$4.39
Key estimates and assumptions
Share-based payments
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.
as follows:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Termination benefits
Share-based payment
Total compensation
Consolidated
2022
$’000
2021
$’000
2,677,117
2,558,379
222,370
171,053
51,353
749,691
214,890
136,075
-
721,634
3,871,584
3,630,977
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
Ultimate Parent
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
% Equity Interest
Investment $’000
2022
100%
100%
100%
100%
100%
100%
2021
100%
100%
100%
100%
100%
100%
2022
30,575
-
-
2021
30,575
-
-
73,941
73,941
-
-
-
-
104,516
104,516
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 2022,
the balance of the loan receivable was $42,381,000 (2021: $39,892,000).
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 2022, the balance of the loan receivable was $125,888,000 (2021: $112,134,000).
In the prior 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 2022, the balance of the loan receivable was $613,811,000 (2021: $615,541,000).
Transactions with key management personnel
For the year ended 30 June 2022, services totalling $78,043 (2021: $529,793) have been provided on normal commercial terms to the
Group by Mintrex Pty Ltd (“Mintrex”). Mrs Morgan was Managing Director and Chief Executive Officer of Mintrex until 30 September 2021
and was a member of the Board of Mintrex until 30 June 2022. She remains a shareholder. The balance outstanding at 30 June 2022
was $1,154 excluding GST (2021: $22,530).
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.
92 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 93
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 26. Parent Entity Information
29. Auditor’s Remuneration
The following details information related to the parent entity, Regis Resources Limited, at 30 June 2022. 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/(loss) for the year
Other comprehensive income for the period
Total comprehensive income for the period
Consolidated
2022
$’000
222,759
1,637,997
1,860,756
153,631
118,284
271,915
2021
$’000
353,503
1,538,100
1,891,603
106,041
169,586
275,627
1,096,575
1,095,533
35,961
456,305
35,157
485,286
1,588,841
1,615,976
(5,967)
144,363
-
-
(5,967)
144,363
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 $2,305,000 of which $630,000 is incurred by the parent entity.
27. Commitments
The Group has exploration expenditure commitments as disclosed in Note 12.
During the current year, the Group entered into a contract to purchase a property in New South Wales for $22,500,000 for the purposes
of the McPhillamys Project. The purchase was settled in July 2022.
28. Contingencies
As at 30 June 2022, the Group did not have any material contingent assets or liabilities (30 June 2021: nil).
Consolidated
2022
$
2021
$
Audit services
KPMG Australia
Audit and review of financial statements
393,300
377,020
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
Share Issue
5,175
-
36,225
-
4,658
20,700
37,778
-
434,700
440,156
39,050
50,770
Subsequent to year end, 137,675 shares have been issued as a result of the vesting of performance rights.
Payment of Stamp Duty
In July 2022, stamp duty of $38,970,000 was paid in relation to the prior year acquisition of Tropicana. At 30 June 2022, this amount is
included in trade and other payables as disclosed in Note 16.
Dividends
On 24 August 2022, the Directors proposed a final year dividend on ordinary shares in respect of the 2022 financial year. Refer to
Note 6.
Settlement of Property Purchase
The purchase of a property in New South Wales was settled in July 2022. Refer to Note 27 for further details.
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.
94 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 95
Notes to the Financial Statements (continued)For the year ended 30 June 2022Notes to the Financial Statements (continued) For the year ended 30 June 2022 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 2022 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 2022.
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, 24 August 2022
31. New Accounting Standards and Interpretations
New standards adopted
The Group has early adopted the Amendments to AASB 116 Property, Plant and Equipment: Proceeds before Intended Use from 1 July
2021. Under the amendments, the Group recognises the proceeds from gold sales from mines which are in the pre-production phase
in the statement of comprehensive income, together with the costs of production. Prior to this adoption any proceeds from sales in
the pre-production phase were deducted from the cost of the mine properties under development asset. These amendments apply
retrospectively and did not have a material impact on the comparative periods presented, and therefore comparative information has
not been restated.
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 2022 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 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
96 Regis Resources Limited | Annual Report 2022
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Notes to the Financial Statements (continued)For the year ended 30 June 2022 Independent Auditor’s Report
Independent Auditor’s Report (continued)
98 Regis Resources Limited | Annual Report 2022
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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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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. Valuation and classification of ore stockpiles A$295,749,000 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 ore stockpiles which will be used to produce gold bullion in the future. The valuation and classification of ore stockpiles is a key audit matter because: • Additional ore stockpiles have been recorded through the continuation of mining activities; 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 ore stockpiles, less 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 costs of ore stockpiles including potential cost increases. • The estimated quantity of gold contained within the ore stockpiles. • Future gold prices expected to prevail when the gold from existing ore stockpiles is processed and sold. • Estimated timing of conversion of ore stockpiles into gold bullion, which drives the classification of 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 ore stockpiles against the requirements of the accounting standards. • Assessing the key assumptions in the Group’s model used to determine the value of 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 gold prices to published external analysts’ data for prices expected to prevail in the future. • Critically evaluating the Group’s classification of ore stockpiles as current or 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. Valuation and classification of ore stockpiles A$295,749,000 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 ore stockpiles which will be used to produce gold bullion in the future. The valuation and classification of ore stockpiles is a key audit matter because: • Additional ore stockpiles have been recorded through the continuation of mining activities; 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 ore stockpiles, less 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 costs of ore stockpiles including potential cost increases. • The estimated quantity of gold contained within the ore stockpiles. • Future gold prices expected to prevail when the gold from existing ore stockpiles is processed and sold. • Estimated timing of conversion of ore stockpiles into gold bullion, which drives the classification of 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 ore stockpiles against the requirements of the accounting standards. • Assessing the key assumptions in the Group’s model used to determine the value of 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 gold prices to published external analysts’ data for prices expected to prevail in the future. • Critically evaluating the Group’s classification of ore stockpiles as current or 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. 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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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 2022 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 2022. • 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: • Valuation and classification of ore stockpiles. • Valuation of exploration and evaluation assets. • Valuation of Property, plant and equipment; Mine properties under development; and Mine properties. 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)
Independent Auditor’s Report (continued)
100 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 101
Valuation of exploration and evaluation assets A$509,104,000 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 22% 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. Valuation of exploration and evaluation assets A$509,104,000 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 22% 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. Valuation of Property, plant and equipment; Mine properties under development; and Mine properties A$1,175,558,000 Refer to Notes 10, 13 and 14 to the Financial Report The key audit matter How the matter was addressed in our audit Valuation of Property, plant and equipment; Mine properties under development; and Mine properties is a key audit matter due to the size of the balance, and the Group’s market capitalization being less than the carrying amount of the Group’s net assets at year-end, which increases the possibility of non-financial assets being impaired. As a result we increased our audit effort in this area. We had particular focus on the Tropicana assets which were acquired in April 2021, given that the acquisition was at fair value upon acquisition. We focused on the significant and judgmental forward-looking assumptions the Group applied in its Tropicana fair value less costs of disposal model (the Model), including: • Forecast sales, production output, production costs and capital expenditure. • Forecast gold prices. • Forecast exchange rates. • Discount rate. • Life of mineral reserves and resources. These assumptions require management to apply significant estimates and judgments, which contributes to our conclusion that the valuation of Property, plant and equipment; Mine properties under development; and Mine properties is a key audit matter. Our procedures included: • We assessed for existence of impairment triggers based on operational and financial performance during the year, in combination with our understanding of the Group’s business. • We compared the life of mineral reserves and resources in the Model to the reserves and resources statement commissioned by the Group for consistency with the cash flow forecasts. • We challenged the appropriateness of key assumptions in the Model, including production output, production costs and capital expenditure, using our knowledge of the Group, their past performance and our industry experience. • We evaluated the sensitivity of the Model by considering reasonably possible changes to key assumptions, including gold price and discount rate. In conjunction with our internal valuation specialists, we: • Assessed the Group’s forecast gold prices and foreign exchange rates used to published views of market commentators. • Independently developed a discount rate range considered comparable using publicly available market data for comparable entities. • Assessed the integrity and methodology of the Group’s fair value less costs of disposal model. Valuation of Property, plant and equipment; Mine properties under development; and Mine properties A$1,175,558,000 Refer to Notes 10, 13 and 14 to the Financial Report The key audit matter How the matter was addressed in our audit Valuation of Property, plant and equipment; Mine properties under development; and Mine properties is a key audit matter due to the size of the balance, and the Group’s market capitalization being less than the carrying amount of the Group’s net assets at year-end, which increases the possibility of non-financial assets being impaired. As a result we increased our audit effort in this area. We had particular focus on the Tropicana assets which were acquired in April 2021, given that the acquisition was at fair value upon acquisition. We focused on the significant and judgmental forward-looking assumptions the Group applied in its Tropicana fair value less costs of disposal model (the Model), including: • Forecast sales, production output, production costs and capital expenditure. • Forecast gold prices. • Forecast exchange rates. • Discount rate. • Life of mineral reserves and resources. These assumptions require management to apply significant estimates and judgments, which contributes to our conclusion that the valuation of Property, plant and equipment; Mine properties under development; and Mine properties is a key audit matter. Our procedures included: • We assessed for existence of impairment triggers based on operational and financial performance during the year, in combination with our understanding of the Group’s business. • We compared the life of mineral reserves and resources in the Model to the reserves and resources statement commissioned by the Group for consistency with the cash flow forecasts. • We challenged the appropriateness of key assumptions in the Model, including production output, production costs and capital expenditure, using our knowledge of the Group, their past performance and our industry experience. • We evaluated the sensitivity of the Model by considering reasonably possible changes to key assumptions, including gold price and discount rate. In conjunction with our internal valuation specialists, we: • Assessed the Group’s forecast gold prices and foreign exchange rates used to published views of market commentators. • Independently developed a discount rate range considered comparable using publicly available market data for comparable entities. • Assessed the integrity and methodology of the Group’s fair value less costs of disposal model. Independent Auditor’s Report (continued)
Independent Auditor’s Report (continued)
102 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 103
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, 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; and • 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. 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, 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; and • 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. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Regis Resources Limited for the year ended 30 June 2022, 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 2022. 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 24 August 2022 Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Regis Resources Limited for the year ended 30 June 2022, 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 2022. 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 24 August 2022 ASX Additional Information
As at 22 September 2022 the following information applied:
1. Securities
(a) Fully Paid Ordinary Shares
The number of holders of fully paid ordinary shares in the Company is 24,959. 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
6,677
9,538
4,056
3,387,462
26,644,915
30,963,953
4,425
114,867,585
263
579,162,010
24,959
755,025,925
2,427
432,861
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
BNP PARIBAS NOMS PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NETWEALTH INVESTMENTS LIMITED
MR COLIN PETROULAS
VASTE DEVELOPMENTS PTY LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
BNP PARIBAS NOMS PTY LTD
MS QIONGQIONG HU
NETWEALTH INVESTMENTS LIMITED
MR ZIDONG CAO + MRS QIONGQIONG HU
BRAZIL FARMING PTY LTD
Number of fully
paid ordinary
Percentage
shares held
interest
226,838,383
87,816,948
87,164,950
64,664,898
7,529,610
7,407,553
6,285,295
5,617,016
3,852,000
3,169,548
2,492,204
2,000,000
1,900,000
1,815,054
1,765,404
1,739,365
1,606,000
1,542,878
1,353,000
1,300,000
30.04
11.63
11.54
8.56
1.00
0.98
0.83
0.74
0.51
0.42
0.33
0.26
0.25
0.24
0.23
0.23
0.21
0.20
0.18
0.17
TOP 20 SHAREHOLDERS OF ORDINARY FULLY PAID SHARES (TOTAL)
517,860,106
68.59
104 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 105
(b) Unlisted Options
At the date of this report, the Company no unissued shares under unlisted options.
(c) Unlisted Performance Rights
Performance rights issued under employee incentive scheme
Unvested 2021 performance rights (Test date: 30 June 2023)
Unvested 2022 performance rights (Test date 30 June 2024)
Number of
holders
Number of
rights held
6
2
300,087
640,272
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 as disclosed in substantial shareholder notices received by the Company are:
Name
Van Eck Associates Corporation
3. On-Market Buy-Back
There is no current on-market buy-back of the Company’s securities.
4. Corporate Governance Statement
Number of fully paid
Percentage
ordinary shares held
interest
73,372,718
9.72
The Company’s 2022 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
Information on the Group Mineral Resources and Ore Reserves is disclosed in the Review of Operations section commencing on page 24
of this Annual Report.
The information in this report relating to the Group Mineral Resources and Ore Reserves is extracted from an ASX Announcement
entitled “Annual Mineral Resource and Ore Reserve Statement” dated 8 June 2022 in accordance with the JORC Code (2012) and can be
viewed on the Company’s website at: www.regisresources.com.au/investor-centre/asx-announcements
The Company confirms that the Group Mineral Resources and Ore Reserves are based on, and fairly represents, information prepared by
the Competent Persons named in the relevant market announcement.
The Company also confirms that it is not aware of any new information or data that materially affects the information included in the
relevant market announcement and that all material assumptions and technical parameters underpinning the Mineral Resource and Ore
Reserves estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms
that the form and context in which the Competent Person’s findings are represented have not been materially modified from the original
market announcement.
Competent Persons Statement
The table below is a listing of the names of the Competent Persons who are taking responsibility for reporting Regis’ results and
estimates. This Competent Person listing includes details of professional memberships, professional roles, and the reporting activities
for which each person is accepting responsibility for the accuracy and veracity of Regis’ results and estimates. Each Competent Person
in the table below has provided Regis with a sign-off for the relevant information provided by each contributor in this report.
Professional Association
Competent
Company of
Code
Activity
Person
Membership
Number
Employment
Activity responsibility
A
B
D
D
E
F
G
H
Mineral
Resource
Robert Barr
MAusIMM
991808
Ore Reserve
Jonathon Bayley
MAusIMM
110609
Ore Reserve
Lilong Chen
MAusIMM
220749
Andrew Grieve
MAIG
4274
Mineral
Resource
Mineral
Resource
Duketon Open Pit Mineral Resources
(except Ventnor)
Duketon Underground Mineral Resources
McPhillamys Mineral Resources
Discovery Ridge Mineral Resources
Duketon Open Pit Ore Reserves
McPhillamys Open Pit Ore Reserves
Duketon Underground Ore Reserves
Ventnor Open Pit Mineral Resource
Regis
Resources
Regis
Resources
Regis
Resources
Cube
Consulting
Fraser Clark
MAusIMM
226390
AngloGold
Tropicana Open Pit and Underground
Ashanti
Mineral Resources
Ore Reserve
Jo Endersbee
MAusIMM
334537
Ore Reserve
Glenn Reitsema
MAusIMM
228391
Exploration
Kevin Joyce
MAIG
4718
AngloGold
Ashanti
AngloGold
Ashanti
Regis
Resources
Tropicana Open Pit Ore Reserves
Tropicana Stockpile Ore Reserves
Tropicana Underground Ore Reserves
Exploration Results
• MAusIMM = Member of the Australasian Institute of Mining and Metallurgy and MAIG = Member of the Australian Institute of Geoscientists.
•
•
•
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 Resources personnel are full-time employees of Regis Resources Limited; all AngloGold Ashanti personnel are full time employees of AngloGold
Ashanti.
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:
•
•
Proof of their current membership to their respective professional organisations 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.
106 Regis Resources Limited | Annual Report 2022
Regis Resources Limited | Annual Report 2022 107
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
(resigned 14 January 2022)
Company Secretary
Elena Macrides
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
2022 represented the first full year
of ownership of our 30% interest in
the Tropicana mine and we remain
pleased with its performance,
outlook, and strategic fit.
108 Regis Resources Limited | Annual Report 2022
Notes to the Financial Statements (continued)For the year ended 30 June 2022
www.regisresources.com.au
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