Regis Resources is considering a joint venture for its McPhillamys gold mining project as it continues to assess merger and acquisition opportunities.
“We are interested in de-risking the project and part of that … is bringing in a joint venture partner,” said managing director Jim Beyer.
He said a joint venture would make sense as long as there was reasonable value for shareholders.
“We think it is a great project, but it is something from a financial-commercial risk management point of view (that) could benefit from having a joint venture partner in there with us.”
The $1.3bn gold miner has pinned its growth hopes on its McPhillamys Project in NSW.
But developing the project will come at a significant cost, raising questions about whether it should do a merger or acquisition deal instead.
Regis is yet to make a final investment decision as to whether to proceed with McPhillamys – one of Australia’s largest undeveloped gold deposits suitable for an open pit.
“We will continue to take the project forward and when the time is right, we will make a decision. We are looking at a range of different things to compare with that.”
His comments at the Diggers and Dealers conference in Kalgoorlie come as Regis remains a hot topic of conversation in the Western Australia gold mining community – particularly whether it is holding takeover talks.
Recent speculation has centred on a-tie up with Gold Road Resources, though this is now off the agenda, sources say.
However, Mr Beyer did not put an end to the speculation when questioned by the media on Monday.
“Everybody is always looking at mergers and acquisitions opportunities,” he said.
“This is a small game. Over the years, everyone has chatted to everyone. Anyone we look at has to be valuable to our shareholders.”
Mr Beyer said Regis, which has a 30 per cent interest in the Tropicana gold mine, would not be in a position to approve McPhillamys until late next year or early 2026.
He said that the market understood the financial and physical metrics of projects, but he believed there was still a lack of understanding around permitting value.
He said the market was not recognising the value of its Duketon gold mining project in the North Eastern Goldfields of WA about 130km north of Laverton, which had reasonable cash generating capacity.
While gold miners have enjoyed record prices, some producers have not experienced such a strong uplift to their share prices as a result, with analysts focus on output.
Regis shares closed at $1.60.
Mr Beyer said gaining approvals and access to ground were major obstacles.
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