Genesis Boosts Gold Resources to 21Moz, Reserves to 5.2Moz via A$639M Deal

Genesis Minerals Expands Footprint in Western Australia

Genesis Minerals Limited (ASX: GMD) has taken a decisive step to consolidate its position in the prolific Leonora and Laverton gold districts of Western Australia by announcing a recommended scheme of arrangement to acquire 100% of Magnetic Resources. Valued at approximately A$639 million through a combination of cash and scrip, this acquisition is set to significantly bolster Genesis’ gold resource and reserve base, while propelling its production ambitions to new heights.

Transforming Growth Strategy with ASPIRE 500

The deal expands Genesis’ pro forma mineral resources to 21.0 million ounces and ore reserves to 5.2 million ounces, underpinning an uplift in its multi-year growth strategy to the aspirational ASPIRE 500 goal; targeting 500,000 ounces of gold production annually. This marks a substantial increase from its previous ASPIRE 400 plan and reflects the company’s confidence in leveraging the combined asset base to unlock operational efficiencies and scale.

Unlocking Synergies and Operational Efficiencies

Magnetic’s flagship Lady Julie project, with a 2.2 million ounce resource grading 1.8 grams per tonne, lies just 20 kilometres from Genesis’ Laverton mill. The proximity of these assets offers compelling synergies, including the potential to combine operations into a single open pit mine, reducing costs and streamlining processing. Genesis is also exploring options to expand milling capacity at Laverton, potentially increasing throughput to 8-9 million tonnes per annum, which would accommodate the enlarged ore feed from the acquisition.

Strong Financial Position and Operational Momentum

Genesis enters this transaction with a robust balance sheet, reporting A$465 million in cash and equivalents as of January 2026 and no bank debt. The company has demonstrated a track record of meeting or exceeding production guidance, with record throughput at the Laverton mill and strong underlying cash flow generation. Capital expenditure for FY26 is guided between A$220-240 million, with exploration budgets of A$40-50 million, reflecting a disciplined approach to growth and resource conversion.

Community and Sustainability Commitments

Beyond the numbers, Genesis continues to prioritise sustainable mining practices and community engagement. The company has secured Native Title and Heritage Agreements with traditional owners in the region and is actively fostering local economic development through education, training, and business opportunities. These efforts underscore Genesis’ commitment to responsible resource development as it scales operations.

Next Steps and Market Implications

The acquisition remains subject to Magnetic shareholder and court approvals, with completion targeted for June 2026. If successful, Genesis will solidify its standing as a leading mid-tier Australian gold producer, bridging the gap between the ASX 50 gold producers and smaller peers. Investors will be watching closely for updates on integration progress, milling expansions, and exploration results that could further enhance the company’s production profile and cost structure.