Genesis Minerals Doubles Profit and Declares Maiden Dividend on Growth Surge

Record Profit and Production Drive Maiden Dividend

Genesis Minerals (ASX:GMD) delivered a standout FY26, with net profit after tax soaring 172% to A$601.8 million, propelled by a 33% increase in gold production to 285,402 ounces. The company’s all-in sustaining cost (AISC) rose modestly to A$2,670 per ounce but remained within guidance, underscoring tight cost control amid inflationary pressures.

Revenue almost doubled to A$1.74 billion, fuelled by both higher output and a stronger average realised gold price of A$6,009 per ounce. Operating cash flow more than doubled to A$935 million, enabling Genesis to declare its maiden fully franked dividend of 5.0 cents per share, a milestone reflecting confidence in the company’s financial resilience and growth trajectory.

Magnetic Acquisition Bolsters Laverton Portfolio

During the year, Genesis completed the A$620 million acquisition of Magnetic Resources NL, adding the high-grade 2.2 million ounce Lady Julie gold deposit near Laverton. This transaction significantly enhances Genesis’ presence on the prolific Chatterbox Trend and complements its existing Laverton assets, promising operational synergies and exploration upside.

The Lady Julie project, located just 20 kilometres from the Laverton mill, is expected to feed both open pit and underground ore to the 3 million tonne per annum processing facility, further underpinning production growth. The acquisition was funded by a combination of cash and the issue of 28 million Genesis shares, and accounted for as an asset acquisition per accounting standards.

Vault Merger Creates Australian Gold Powerhouse

Genesis and Vault Minerals Limited have agreed to merge via a scheme of arrangement, creating a new Australian gold major with a pro forma market capitalisation of approximately A$12.6 billion. The combined entity will produce between 600,000 and 700,000 ounces annually, with resources of 34 million ounces and reserves of 9 million ounces.

The merger is expected to unlock around A$2 billion in post-tax, undiscounted synergies over the next decade, largely due to the close proximity of their Leonora operations. Key cost savings include deferring the planned Tower Hill mill construction by utilising Vault’s King of the Hills processing plant and potentially removing the need for Laverton mill expansion. Vault shareholders will receive 0.7629 Genesis shares plus A$0.475 in cash per Vault share, valuing Vault at about A$5.6 billion, a 15.7% premium to its closing share price at announcement.

The merger is on track for completion in November 2026, with Genesis shareholders expected to own approximately 60% of the enlarged group. The combined company aims to release a new strategic plan in the first half of 2027, reflecting the merged portfolio and optimised operations.

Operational Highlights and Growth Projects

Genesis met or exceeded its FY26 production and cost guidance for the third consecutive year, with strong operational performance at its Leonora and Laverton assets. Key projects advanced include the fast-tracked Tower Hill open pit, with mining commenced ahead of schedule, and the Jupiter open pit at Laverton, which restarted in July 2025 and is expected to come into commercial production in FY27.

Growth capital expenditure totalled approximately A$275 million, supporting mine development at Ulysses, Jupiter, Hub, and the start-up of Bruno Lewis. Exploration investment rose to around A$51 million, focusing on resource conversion and extensions across the portfolio.

Financial Strength and Capital Management

Genesis ended FY26 with cash, bullion, and investments of A$520 million, up 81% from the prior year, and net assets of A$2.08 billion, a 66% increase. The company’s senior corporate financing facility was upsized to A$300 million with improved terms, and net debt stood at A$200 million, drawn to partly fund the Magnetic acquisition.

Underlying cash generation before acquisitions, debt movements, and exploration investment was around A$899 million, highlighting strong free cash flow. The maiden dividend declaration balances rewarding shareholders with maintaining capital flexibility for growth.

Sustainability and Governance Progress

Genesis reinforced its commitment to sustainability, reporting its second voluntary sustainability report and inaugural mandatory climate disclosures. The company continues to embed robust risk management practices, focusing on safety, environmental stewardship, Indigenous engagement, and community investment. The Board conducted an independent effectiveness review, with favorable outcomes and planned governance enhancements.

Executive Remuneration and Leadership

Following strong FY26 performance, Genesis reviewed executive remuneration, promoting Matt Nixon from COO to CEO and Raleigh Finlayson from Managing Director to Executive Chair. The Board approved remuneration increases reflecting the company’s growth and market position. The FY26 short-term incentive outcomes averaged 80% of maximum, aligned with safety, production, cost, and strategic milestones. Long-term incentives remain focused on shareholder returns and growth objectives.

Lee Stephens was appointed Chief Operating Officer post-year end, bringing extensive operational experience to support the company’s next growth phase.