Genesis Minerals has reported a remarkable fourfold increase in net profit after tax to A$238 million for the first half of FY26, driven by a 58% rise in gold production and robust margins. The company’s strong cash position and accelerated growth plans position it well for the year ahead.
- Interim NPAT rises 298% to A$238 million
- Gold production up 58% to 147,139 ounces
- Sales revenue jumps 142% to A$820.3 million
- Cash and bullion increase to A$373.3 million with zero corporate debt
- Tower Hill project development progressing ahead of schedule
Robust Financial Performance
Genesis Minerals Limited (ASX: GMD) has delivered an outstanding financial result for the six months ended 31 December 2025, with net profit after tax soaring to A$238 million, nearly four times the previous corresponding period. This surge reflects a combination of increased gold production, strong operational margins, and a favourable gold price environment.
Sales revenue more than doubled to A$820.3 million, supported by gold sales of 146,482 ounces at an average realised price of A$5,590 per ounce. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 172% to A$418 million, underscoring the company’s improved profitability and operational efficiency.
Production Growth and Cost Control
Gold production rose 58% to 147,139 ounces, achieved at an all-in sustaining cost (AISC) of A$2,578 per ounce, slightly higher than the prior period but within guidance. The company maintained its full-year production outlook of 260,000 to 290,000 ounces at an AISC range of A$2,500 to A$2,700 per ounce, signalling confidence in ongoing operational performance.
Genesis also demonstrated disciplined capital management, repaying A$100 million of corporate debt drawn to finance the acquisition of Focus Minerals’ Laverton assets. The company ended the half with no drawn debt and a strong cash and bullion position of A$373.3 million, up from A$263.1 million six months earlier.
Accelerated Growth Strategy and Tower Hill Progress
Growth capital and exploration expenditure totalled A$134.9 million during the period, reflecting an aggressive push to expand production capacity and resource base. Notably, the Tower Hill project development is advancing ahead of schedule, with operational readiness activities progressing well. This has prompted an upward revision of FY26 growth capital guidance to A$220–240 million, including costs related to the Leonora rail project.
Executive Chair Raleigh Finlayson highlighted the company’s strong cashflow and robust balance sheet as key enablers for continued expansion. He emphasised that the current results provide a clear view of the cash generation potential from the accelerated growth strategy, with further details expected in the company’s updated long-term growth plan due in the September quarter of 2026.
Liquidity and Risk Management
Genesis holds A$629 million in available liquidity, comprising cash, bullion, liquid investments, and an undrawn A$225 million debt facility. The company employs modest hedging strategies to protect against downside gold price risk while maintaining exposure to potential upside, with derivative instruments covering approximately 49,500 ounces.
Looking ahead, Genesis anticipates becoming liable for income tax instalments in the June 2026 half, as it expects to fully utilise its carried-forward tax losses during FY26.
Bottom Line?
With record profits and a strong balance sheet, Genesis Minerals is well poised to accelerate its growth trajectory, but investors will watch closely for the upcoming detailed strategy update and execution at Tower Hill.
Questions in the middle?
- How will the accelerated development at Tower Hill impact production and costs in FY27 and beyond?
- What are the implications of the upcoming income tax instalments on cashflow and profitability?
- How will Genesis balance growth capital expenditure with maintaining financial flexibility amid gold price volatility?