Genesis Minerals Accelerates Toward 500koz Annual Gold Production with Magnetic Deal and Tower Hill Mill

• Pro forma resource base expands to 21.3Moz with 5.4Moz reserves
• Magnetic Resources acquisition valued at A$639 million expected June 2026
• Tower Hill mill construction underway with A$250-280m capital cost
• Record underlying cash generation of A$253m in Q1 2026 and strong liquidity
• On track for FY26 production guidance of 260-290koz at AISC A$2,500-2,700/oz

Magnetic Acquisition Completes Laverton Puzzle

Genesis Minerals (ASX:GMD) is stepping up its growth trajectory with the imminent completion of its A$639 million acquisition of Magnetic Resources, expected in June 2026. This deal adds 2.4 million ounces of gold resources and 1.0 million ounces of reserves, notably the high-grade Lady Julie project located just 20km from Genesis’ Laverton mill. The acquisition not only expands Genesis’ footprint in the prolific Leonora/Laverton district but also unlocks operational synergies by consolidating adjacent assets, boosting the company’s pro forma resource base to 21.3Moz and reserves to 5.4Moz. Magnetic’s board unanimously supports the scheme, with major shareholders committed to voting in favour, smoothing the path to completion. The deal is funded through a mix of cash and scrip, preserving Genesis’ robust balance sheet and liquidity position. This transaction underpins Genesis’ aspirational production target of 500,000 ounces per annum, branded “ASPIRE 500”.

Genesis’ acquisition strategy follows earlier announcements, including its recommended offer for Magnetic Resources, which set the stage for this transformative expansion. The integration of Magnetic’s assets is expected to enhance the company’s production profile and cost efficiencies, particularly by combining the Lady Julie and Focus assets into a single open pit operation, which is anticipated to reduce strip ratios and improve metallurgical recoveries. The acquisition also strengthens Genesis’ presence along the fast-emerging Chatterbox Trend, offering compelling exploration upside both along strike and at depth. These developments build on Genesis’ recent recommended scheme for Magnetic announcement and represent a significant step in its growth strategy.

Tower Hill Mill Construction Advances

Complementing the acquisition is Genesis’ ongoing construction of a new 3.5-4.0Mtpa mill at Tower Hill, Leonora, with capital costs estimated between A$250-280 million. This facility aims to replace the current diesel-intensive 100km haulage to the Laverton mill, delivering estimated cost savings of A$225 million, effectively offsetting 80-90% of the new mill’s capital expenditure. The Tower Hill deposit itself boasts a shallow, wide, and high-grade open pit with several drill intercepts exceeding 200 grams per tonne, yet only tested to about 450 metres depth despite proximity to deeper deposits like Gwalia. Site works are underway with GR Engineering Services engaged for delivery, and procurement of critical long-lead items is on track. First ore from Tower Hill is targeted for FY28, with further details to be outlined in the September quarter updated long-term plan. This mill is expected to significantly lower unit milling costs and enhance operational flexibility across Genesis’ asset base.

Strong Financial Position and Production Momentum

Genesis reported record underlying cash generation of A$253 million in the March quarter alone, contributing to a total of A$906 million since January 2025. The company’s liquidity remains strong at A$900 million, comprising A$600 million in cash and equivalents and a A$300 million undrawn finance facility, with zero bank debt recorded as of 31 March 2026. This financial strength underpins the company’s ability to fund growth projects, including the Tower Hill mill and ongoing exploration, without compromising its balance sheet. Operationally, Genesis is tracking to the mid-point of its FY26 production guidance of 260-290koz at an all-in sustaining cost (AISC) of A$2,500-2,700 per ounce, driven by rising output from its Leonora and Laverton mines and disciplined cost control.

Per share metrics reinforce Genesis’ operational success, with production per share and earnings per share steadily increasing, alongside a sector-leading return on capital employed (ROCE) of 38% as of December half 2025. The company’s disciplined capital allocation strategy balances growth projects, dividends, community contributions, and exploration, reflecting its commitment to sustainable value creation. This approach is evident in its progressive priorities under the “ASPIRE THIRDS” framework, which segments capital deployment into robust balance sheet maintenance, growth investments, and shareholder returns.

Exploration and Resource Upside in a Premier Gold District

Genesis’ exclusive focus on the Leonora/Laverton district, a prolific gold-producing region in Western Australia, continues to yield exploration upside. The company’s portfolio includes multiple baseload deposits with over +1Moz reserves, including Gwalia, Tower Hill, and Lady Julie, two of which are yet to commence production. The district is supported by two operating mills with a combined capacity of 4.4Mtpa, with potential expansion to 8-9Mtpa to accommodate growth from acquisitions and organic exploration success. Recent drilling at Gwalia has delivered impressive high-grade intercepts, reinforcing the mine’s long-life and quality-focused production strategy. Meanwhile, the Lady Julie project offers potential pit size uplift by removing tenement boundaries and extending mineralisation along the Chatterbox Trend, which remains largely untested at depth and along strike.

Genesis’ exploration program is complemented by a doubling of its FY26 exploration budget to A$40-50 million, targeting resource conversion and new discoveries. The company’s strategic land position and geological expertise position it well to convert its substantial resource base into reserves and production growth. This exploration upside is a critical component of the company’s long-term growth narrative and supports its aspirational production goals.

Positioning Between ASX 50 Gold Producers and the Rest

With a market capitalisation of approximately A$6.7 billion and a resource base rivaling some of the largest ASX-listed gold producers, Genesis is strategically positioning itself to bridge the gap between the ASX 50 gold companies and smaller peers. Its pro forma resource base of 21.3Moz and reserves of 5.4Moz place it in a competitive peer group alongside Northern Star and Evolution, though still with room to grow. The company’s focus on per share metrics and return on capital employed highlights its operational discipline and shareholder focus. This positioning is underscored by its exclusive asset base within a 100km radius in Western Australia, a region renowned for its high-grade and scalable gold projects.

Genesis’ growth strategy, underpinned by acquisitions, mill expansions, and exploration, aims to elevate the company’s production profile and market standing. The upcoming September quarter update on long-term production and cost assumptions will be a key milestone for investors to assess progress against the “ASPIRE 500” ambition.

Bottom Line?

Completion of the Magnetic acquisition and successful commissioning of the Tower Hill mill will be pivotal to Genesis Minerals’ ability to convert its aspirational 500,000-ounce production target into reality.

Questions in the middle?

• Will the Magnetic acquisition deliver the expected operational synergies and resource conversion to support ASPIRE 500?
• How will the capital expenditure and timing of the Tower Hill mill impact Genesis’ production and cost profile in FY28 and beyond?
• What exploration results along the Chatterbox Trend and at Lady Julie could meaningfully expand Genesis’ resource base?