How Genesis Minerals’ Laverton Acquisition Fuels Ambitious Growth Plans

Robust Financial Performance

Genesis Minerals Limited (ASX, GMD) has reported a remarkable financial and operational performance for the fiscal year ended June 30, 2025. The company’s EBITDA soared by 256% to A$454.1 million, while net profit after tax (NPAT) more than doubled, reaching A$221.2 million. These results were driven by a 59% increase in gold production to 214,311 ounces, comfortably exceeding the company’s upgraded guidance range. Sales revenue also doubled to A$920.1 million, supported by a strong average realised gold price of A$4,417 per ounce.

Strategic Acquisition Bolsters Growth Pipeline

In a transformative 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 mineral resources to Genesis’ portfolio, significantly enhancing its inventory and optionality around the Laverton mill. The Laverton assets, located approximately 30 kilometres from Genesis’ existing mill, enable operational synergies and unlock the potential to process Tower Hill ore at the Leonora mill, reducing haulage costs and strengthening the economics of planned mill expansions.

Accelerating the ASPIRE 400 Strategy

Genesis is advancing its ASPIRE 400 growth strategy, which aims to accelerate production growth to capitalise on the strong gold price environment. The company is actively progressing studies on staged expansions of both the Laverton and Leonora mills, with the goal of increasing throughput and lowering unit costs. This strategy is complemented by a ‘future-proofing’ approach designed to diversify ore sources and protect margins against gold price volatility, thereby de-risking the business.

Outlook and Capital Deployment

Looking ahead to FY26, Genesis has set an ambitious production target of 260,000 to 290,000 ounces at an all-in sustaining cost (AISC) of A$2,500 to A$2,700 per ounce. Growth capital expenditure is forecast between A$150 million and A$170 million, reflecting a near 30% increase from FY25, with significant investments planned in open pit development, underground infrastructure, and milling capacity expansions. Exploration spend is also set to nearly double to A$40 million to A$50 million, focusing on near-mine and regional targets to extend mine life and discover new resources.

Financial Strength and Risk Management

Genesis enters FY26 with a robust balance sheet, boasting A$412 million in available liquidity and A$100 million drawn on a recently upsized A$225 million revolving credit facility. The company maintains a modest hedging program to manage downside risk while retaining exposure to gold price upside. Additionally, the accumulation of significant ore stockpiles, valued at approximately A$315 million at spot prices, forms part of the company’s strategy to de-risk future production and support mill expansions.

Looking Beyond FY26

Genesis plans to update its multi-year growth plan by mid-2026, incorporating the outcomes of ongoing mill expansion studies and the integration of the Laverton acquisition. The company envisions a structural reduction in unit costs beginning in FY28, driven by the ramp-up of the high-grade Tower Hill deposit and enhanced milling efficiencies. With a clear focus on scaling production beyond 400,000 ounces annually, Genesis aims to solidify its position as a trusted, progressive Australian gold producer.