Genesis Minerals delivered record gold production and a robust cash build in December 2025, while accelerating development at its Tower Hill project ahead of schedule.
- Record quarterly gold production of 74,261oz at A$2,635/oz AISC
- Underlying cash build of A$216 million, ending quarter with A$404 million cash and no bank debt
- Leonora underground mining contract awarded to Byrnecut with mobilisation planned for May 2026
- Tower Hill project development accelerated with growth capital guidance increased to A$220-240 million
- Strong safety performance with zero lost time injuries and new native title agreements signed
Record Production and Financial Strength
Genesis Minerals Limited (ASX – GMD) has reported a standout December quarter, achieving record gold production of 74,261 ounces at an all-in sustaining cost (AISC) of A$2,635 per ounce. This performance contributed to a half-year total of 147,139 ounces at an AISC of A$2,578 per ounce, underscoring the company’s operational efficiency amid industry-wide cost pressures.
Financially, Genesis strengthened its position with an underlying cash build of A$216 million during the quarter, boosting cash and equivalents to A$404 million and maintaining zero drawn bank debt. Gold sales generated revenue of A$432.2 million at an average price of A$6,057 per ounce, supporting an unaudited half-year net profit after tax (NPAT) estimated between A$235 million and A$245 million.
Operational Highlights and Contract Awards
Operationally, the ramp-up at the Jupiter open pit continues to provide a reliable baseload feed to the adjacent Laverton mill, while underground mining at Gwalia and Ulysses delivered strong production and development advances. Notably, Genesis has awarded the Leonora underground mining contract to Byrnecut Australia Pty Ltd, a leading global contractor with extensive experience in Australian underground operations. Full mobilisation is planned for early May 2026, promising enhanced operational continuity and expertise.
Open pit mining at Admiral and Hub continues with strategic pre-stripping to extend mine life, and the company maintains its FY26 production guidance of 260,000 to 290,000 ounces at an AISC range of A$2,500 to A$2,700 per ounce.
Tower Hill Project Accelerates Growth Strategy
Genesis is advancing its flagship Tower Hill project ahead of schedule, a shallow high-grade deposit with a probable reserve of 15 million tonnes at 2.0 grams per tonne for 1 million ounces. Key milestones achieved include signing rail agreements with Western Australian authorities and operators, execution of a mining agreement with the Darlot People, and receipt of essential environmental and mining permits.
Operational readiness is progressing rapidly with site establishment works set to commence in the March quarter. The company has increased its FY26 growth capital guidance to A$220-240 million, up from the previous A$150-170 million, reflecting the accelerated development timeline and inclusion of the Leonora rail project costs.
Importantly, the proximity of Tower Hill to the Leonora mill, just one kilometre away, offers significant cost-saving potential compared to the previously assumed 100-kilometre haul to the Laverton mill. This could translate into operating cost savings estimated at A$225 million, enhancing the project’s economic attractiveness.
Sustainability and Community Engagement
Safety remains a priority, with zero lost time injuries recorded during the quarter and a low lost time injury frequency rate of 0.7. Environmental compliance was maintained with no significant non-compliance events reported. Genesis also strengthened its community and indigenous partnerships by signing a Native Title Mining and Heritage Agreement with the Wangkatja Tjungula Aboriginal Corporation, covering key project areas and reinforcing its commitment to sustainable and respectful operations.
Exploration and Future Outlook
Exploration activities continued with A$11.9 million invested during the quarter, targeting extensions and new mineralisation at Leonora and Laverton. The company plans to release an updated long-term plan in the June half of 2026, which will include outcomes from studies on staged processing plant expansions and the integration of Tower Hill ore processing at an expanded Leonora mill.
Executive Chair Raleigh Finlayson highlighted the company’s achievements and outlook – “We have met or exceeded all our operational targets while making strong progress on our growth agenda. Our record production was accompanied by tight cost control, a significant achievement given the cost pressures across the industry. We look forward to unveiling details of our longer-term plan later this half, including the mill expansion strategy, to capitalise on the strength of the long ore position we have established.”
Bottom Line?
Genesis Minerals’ strong quarter sets the stage for accelerated growth, but market watchers will keenly await the June update on Tower Hill’s full potential.
Questions in the middle?
- How will the expanded Leonora mill impact operating costs and production timelines?
- What are the risks and contingencies associated with the accelerated Tower Hill development?
- How might gold price volatility affect Genesis’s unhedged exposure and future cash flows?