Genesis Minerals Meets FY26 Guidance as Tower Hill Mining Accelerates

Steady Production and Strong Cash Flow

Genesis Minerals (ASX:GMD) has once again met its annual gold production guidance, recording 285,400 ounces for FY26, comfortably within its forecast range of 260,000 to 290,000 ounces at an all-in sustaining cost (AISC) of A$2,500-2,700 per ounce. The June quarter alone delivered 70,767 ounces, generating an underlying cash and equivalents increase of approximately A$258 million despite significant outflows linked to acquisitions, growth investments, and tax payments.

This cash build underscores Genesis’ robust operational performance even amid challenges such as a lower gold price, higher diesel costs, and the conclusion of third-party ore purchases. The company’s successful transition of underground mining contracts to Byrnecut at both Gwalia and Ulysses mines has already delivered key mining metrics that meet or exceed FY26 targets within a month of mobilisation.

Tower Hill Project Accelerates Ahead of Schedule

One of the standout developments is the fast-tracking of the Tower Hill open pit project in Leonora. Dewatering of the pit is now complete, and open pit mining has commenced. Genesis has ordered a final fleet of heavy equipment, including a 600-tonne excavator and 240-tonne dump trucks, larger than originally planned, aiming to boost productivity and reduce unit costs through economies of scale.

Additionally, long lead items for a new 3.5-4.0 million tonnes per annum mill have been procured, including SAG and ball mills, crushing equipment, pumps, and screens, with a combined spend of A$24 million. Construction has also started on the Leonora Rail Terminal, which will support the next stage of mining at Tower Hill.

Magnetic Resources Acquisition Completes Expansion

Genesis finalized its acquisition of Magnetic Resources for a total consideration of A$639 million, funded by A$247 million in cash and a A$200 million debt drawdown, alongside the issuance of approximately 28 million shares. This strategic move adds significant gold resources and reserves, positioning Genesis for its aspirational ASPIRE 500 goal of 500,000 ounces annual production.

The acquisition complements ongoing growth initiatives such as the Bruno Lewis project, where reserves have increased by 65% to 280,000 ounces, with open pit mining scheduled to start in the September quarter. The company is now fully reliant on ore mined by its Genesis Mining Services, following the closure of third-party ore sources earlier in the year.

Exploration Budget Nearly Doubles for FY27

Reflecting confidence in its portfolio, Genesis plans a substantial increase in its FY27 exploration budget to A$80-90 million, nearly doubling the FY26 allocation. This budget boost will support drilling along the highly prospective Chatterbox Trend, focusing initially on expanding the Lady Julie deposit. The company’s exploration success and strong cash generation provide the financial foundation for this aggressive approach.

Investors can expect a detailed quarterly report, including updated AISC figures, on 28 July, while a fully funded long-term growth strategy is slated for release in September 2026, promising further clarity on unlocking value from Genesis’ extensive Leonora and Laverton assets.