Regis Resources (ASX:RRL) Posts Record Profit- Is It Still a Buy After a 164% Rally?

Regis Resources: Record Profit After a Big Rally

Regis Resources (ASX: RRL) delivered the best half-year result in its history, and it was not even close. Profit jumped 267% to A$323 million, gold sales hit A$1.09 billion, and the dividend tripled to 15 cents per share, fully franked. For investors who got in early, the stock is up 164% over the past year. The shares are now trading near their 52-week high, and most analysts rate it a Hold with an average price target around A$8.00 to A$8.20, though bull-case targets now reach as high as A$10.00. The question is simple: Is there still money to be made here, or has the market already priced in the good news?

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Regis Resources Transforms Into a Cash Machine as Gold Prices Soar

The numbers behind this result tell a clear story. Regis Resources produced 186,917 ounces of gold at A$2,850 per ounce while selling that gold at an average price of A$5,968 per ounce. That is a massive gap between what it costs to dig gold out of the ground and what the market pays for it. The result was A$621 million in EBITDA at a 57% margin.

What really stands out, though, is the balance sheet transformation. Regis now sits on A$930 million in cash and gold bullion with zero debt. Just 12 months ago, the company owed A$300 million. That kind of turnaround does not happen often.

The company has also introduced a new dividend policy, committing to pay out 25% to 50% of its cash generation as fully franked dividends twice a year. This is important because it shifts Regis from being purely a gold price bet into something that also pays you to hold it. If gold prices stay strong, shareholders could see growing income on top of any capital gains.

McPhillamys- The Billion-Dollar Wildcard Investors Cannot Ignore

There is one more piece to the Regis story that could change everything. The McPhillamys Gold Project in New South Wales contains at least 2.26 million ounces of gold. At current gold prices around US$4,900 per ounce, that resource is potentially worth over US$11 billion if fully developed.

The problem is that the project has been stuck since August 2024, when a government heritage protection order blocked the site for its tailings dam. Regis Resources took an A$192 million write-down and put the project on hold.

But management has not given up. They are fighting the decision in the Federal Court, with a ruling expected around April or May this year. They have also submitted plans for an alternative waste storage design that could allow the project to move forward without starting the approvals process from scratch. A final investment decision is not expected before early 2028, but any positive news could give the share price a serious boost.

The Investor’s Takeaway

We believe Regis Resources is now one of the strongest mid-tier gold producers on the ASX. The operational results are excellent, the balance sheet is rock solid, and the dividend policy adds a new reason to own it.

That said, the stock looks fairly priced rather than cheap after such a strong run. Analysts see limited upside from here unless gold keeps climbing or McPhillamys gets back on track.

For current holders, the results support staying in. For new investors looking to buy, waiting for a pullback or a McPhillamy’s catalyst would likely offer a better entry point.