Genesis Hits 57,055oz Gold Production, Cash Up 34% to A$238m

Operational Breakthroughs Drive Record Production

Genesis Minerals Limited (ASX: GMD) has delivered a standout December quarter, achieving record gold production of 57,055 ounces at an all-in sustaining cost (AISC) of A$2,202 per ounce. This performance marks a significant step forward in the company’s growth trajectory, underpinned by the early restart of the Laverton mill, which came online six months ahead of the original schedule outlined in the March 2024 Five-year Plan.

The ramp-up of the Laverton mill has been smooth and efficient, contributing to a combined processing capacity of 4.4 million tonnes per annum across two mills at the Leonora production centre. This enhanced capacity is a cornerstone of Genesis’ “ASPIRE 400” strategy, targeting a production milestone of 325,000 ounces per annum by FY29 while driving down costs.

Robust Financial Position and Upgraded Guidance

Genesis’ financial health remains robust, with cash and equivalents swelling 34% quarter-on-quarter to A$237.5 million, bolstered by gold sales revenue of A$200.9 million at an average price of A$4,047 per ounce. The company remains debt-free, having secured a A$130 million undrawn financing facility to enhance balance sheet flexibility without immediate drawdown.

Reflecting operational momentum, Genesis upgraded its FY25 production guidance to 190,000–210,000 ounces at an AISC range of A$2,200–2,400 per ounce, up from previous estimates. The company’s half-year unaudited net profit after tax (NPAT) is estimated between A$55 million and A$65 million, signaling strong profitability amid a supportive gold price environment.

Project Development and Exploration Success

Progress at key development projects remains on track. The Tower Hill deposit, a high-grade open pit resource near Gwalia, has secured critical approvals including Section 18 heritage clearance and environmental permits, with mining proposals submitted and stakeholder agreements targeted by mid-2025. First ore from Tower Hill is expected in FY28, adding to Genesis’ production pipeline.

Exploration continues to yield promising results, particularly at Gwalia underground and Admiral open pit, where high-grade drill intercepts reinforce the long-term mine plan. The company is also re-evaluating the Westralia resource with a view to unlocking value through bulk open pit mining, leveraging the lean Genesis Mining Services model.

Strategic Growth and Operational Flexibility

Genesis’ strategy to accelerate growth is supported by strong operational cash flow, with net mine cash flow of A$50 million after investing A$28 million in growth capital during the quarter. The company’s ability to process third-party ore through ore purchase agreements with Brightstar Resources and Kumarina Resources further enhances cash flow and asset utilisation.

Managing Director Raleigh Finlayson highlighted the company’s confidence in meeting or exceeding its production and financial targets ahead of schedule, emphasizing the strength of the organic growth strategy and the company’s debt-free position. The early Laverton mill restart and progress at Ulysses underground and Tower Hill development projects position Genesis well for sustained growth.