Regis Resources (RRL.AX): McPhillamys De-Risked and Back on Track; Upgrade to the Growth Story
Report Coverage
- Broker
- Citi
- Region
- Australia
- Report Type
- Company Report
- Primary Focus
- McPhillamys Gold Project PFS and growth de-risking
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Report Summary
Citi analyzes Regis Resources' release of a new Pre-Feasibility Study (PFS) for the McPhillamys Gold Project using an alternative Integrated Waste Landform (IWL) design with filtered tailings co-disposed in the mine waste dump. The project delivers an NPV5.5% of A$1.13 billion and a post-tax IRR of 21.8% at A$4,000/oz gold, with 190koz average annual production at AISC of A$1,718/oz, while the reinstated 1.89Moz Ore Reserve and SSI permitting status meaningfully de-risk the development pathway toward FID in 1H CY28.
Key Takeaways
- McPhillamys PFS delivers NPV5.5% of A$1.13bn and post-tax IRR of 21.8% at a conservative A$4,000/oz gold price (vs. spot ~A$6,000/oz), implying significant operating leverage upside.
- The 1.89Moz Ore Reserve (56Mt @ 1.1g/t, 100% Probable) has been reinstated after the 2024 Section 10 declaration had previously impaired the project.
- Alternative IWL design uses filtered tailings co-disposed on Regis-owned land outside the Section 10 area, with SSI status granted by NSW meaningfully de-risking the permitting pathway.
- Pre-production capital of A$1.08bn (including A$78m contingency) is a modest A$74m above the original 2024 DFS but ~10% below Visible Alpha consensus expectations.
- FID now targeted for 1H CY28, re-establishing McPhillamys as a credible near-FID growth project and materially upgrading the RRL-VAU merger growth pipeline.
- Citi maintains a Neutral rating with a A$8.10 target price based on NAV 0.7x and 4x FY26 EV/EBITDA, with McPhillamys risked at 40% in the valuation.
Why This Report Matters
The McPhillamys PFS re-establishes Regis Resources as a credible gold growth story after the 2024 Section 10 setback, materially upgrading the combined entity's development pipeline ahead of the pending RRL-VAU merger and providing investors with renewed visibility on a ~190koz/pa production addition.
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This summary is for users researching the Citi Regis Resources (RRL.AX) report. It helps users review Regis Resources (RRL.AX): McPhillamys De-Risked and Back on Track; Upgrade to the Growth Story coverage, key takeaways, and related broker or sector research paths across McPhillamys Gold Project PFS, integrated waste landform design, gold mine permitting de-risking; Regis Resources, Vault Minerals.
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