How Genesis Minerals’ Laverton Buy Fuels Record Gold Output and Growth Ambitions
Genesis Minerals delivered record FY25 gold production, exceeding guidance, and completed a transformative A$250 million acquisition of Focus Minerals’ Laverton project, enhancing its ASPIRE 400 growth strategy.
- Record FY25 gold production of 214,311oz, beating guidance
- A$250 million acquisition of Focus Minerals’ Laverton project adds 4Moz resources
- Strong operational safety with zero lost time injuries and stable costs
- Tower Hill development on track for FY27 mine start and FY28 first ore
- Senior financing facility increased to A$225m, supporting growth investments
Record Production and Operational Excellence
Genesis Minerals Limited (ASX, GMD) closed FY25 on a high note, reporting a record June quarter gold production of 61,469 ounces and a full-year total of 214,311 ounces. This performance exceeded the company’s upgraded guidance range of 190,000 to 210,000 ounces, while maintaining all-in sustaining costs (AISC) within the forecast A$2,200 to A$2,400 per ounce range despite inflationary pressures in the mining sector.
Operational safety remained a priority, with zero lost time injuries recorded during the quarter and a low Lost Time Injury Frequency Rate (LTIFR) of 0.8. The company’s focus on sustainable and safe mining practices underpins its strong operational delivery.
Strategic Acquisition Accelerates Growth
In a significant strategic move, Genesis completed the acquisition of Focus Minerals’ Laverton Gold Project for A$250 million in cash. This bolt-on acquisition adds a substantial 4 million ounces of gold resources located approximately 30 kilometers from Genesis’ existing Laverton mill. The deal enhances Genesis’ portfolio optionality and supports its ASPIRE 400 accelerated growth strategy, which aims to bring forward production increases beyond the original 10-year outlook.
The acquisition also enables operational synergies, such as processing Tower Hill ore at the Leonora mill, reducing haulage costs by an estimated A$225 million and allowing for potential staged expansions of both the Leonora and Laverton mills. This flexibility is expected to underpin future production growth and cost efficiencies.
Project Development and Exploration Momentum
Genesis continues to advance key projects, with the Tower Hill development progressing on schedule for mine development in FY27 and first ore production in FY28. The company has initiated operational readiness activities and is exploring multiple mill expansion scenarios to accommodate increased throughput enabled by the Laverton acquisition.
Exploration investment remains robust, with A$7.2 million spent in the June quarter, focusing on resource definition and drilling across the portfolio. The Jupiter open pit mine is poised to commence mining in the September quarter, supported by the delivery of new mining fleet equipment.
Financial Strength and Governance Enhancements
Genesis reported gold sales revenue of A$314 million at an average price of A$5,046 per ounce. The company’s cash position remains strong with A$287 million in cash and equivalents after drawing A$100 million from an upsized A$225 million senior corporate financing facility to fund the Laverton acquisition. Net cash stood at A$187 million at quarter-end.
Governance was bolstered by the appointment of two new directors with extensive mining and project development experience, enhancing the board’s capability to support the company’s ambitious growth plans. Meanwhile, the company maintained modest gold price protection positions to balance exposure to market fluctuations.
Looking Ahead
Genesis anticipates releasing updated FY26 production and cost guidance in the September quarter, reflecting the impact of recent acquisitions and ongoing project developments. The company’s ASPIRE 400 strategy remains firmly on track, with multiple growth levers and operational flexibility positioning Genesis well for sustained expansion.
Bottom Line?
With record production behind it and strategic assets now consolidated, Genesis Minerals is poised to accelerate growth, but the market will watch closely for how it manages expansion costs and execution risks.
Questions in the middle?
- How will the Laverton acquisition reshape Genesis’ capital expenditure and production profile in FY26 and beyond?
- What are the detailed plans and timelines for the proposed mill expansions at Leonora and Laverton?
- How will inflationary pressures and royalty costs impact Genesis’ cost control efforts going forward?