Genesis Minerals Limited

Genesis reported just over 74,000 ounces of gold production for the December quarter at an all-in sustaining cost of $2,635 an ounce, generating $231 million of mine operating cash flow and $167 million of net mine cash flow after $64 million of growth investment. It sold 71,000 ounces at an average gold price of AUD 6,057 an ounce, up 20% quarter-on-quarter, generating $430 million in sales. Cash and investments increased by $41 million to $404 million, and the company fully repaid the $100 million of corporate debt drawn for the Focus acquisition. First-half FY26 production was just over 147,000 ounces at an AISC of $2,578 an ounce, and management maintained full-year FY26 guidance of 260,000 to 290,000 ounces at an AISC range of $2,500 to $2,700. Growth capital outlook for FY26 was revised to $220 million to $240 million from $150 million to $170 million. Management also estimated unaudited half-year NPAT at $235 million to $245 million, noting this would be up 300% year-over-year and above FY25 NPAT of $221 million.

Raleigh Finlayson framed the CEO transition as a deliberate restructuring to match people to roles and keep execution strong, calling it “business as usual” with the same strategy and culture. He said the change frees him to focus on strategy, including a review of Bardoc, the Focus/Laverton asset base, and the company’s long-term mill expansion and ASPIRE 400 plan. His tone was upbeat and confident, emphasizing reliability, growth, and that Tower Hill and the broader plan are nearing publication in the current half.

Morgan Ball highlighted the financial strength of the quarter, pointing to 71,000 ounces sold at AUD 6,057 an ounce and $430 million in sales, alongside a $41 million increase in cash and investments to $404 million. He noted the company repaid the $100 million debt drawn for the Focus acquisition and said the balance sheet gives Genesis flexibility in capital management. He also said the company’s internal Project TALO cost-out program is on track, stamp duty of $13 million related to the Focus acquisition will be paid in the June quarter, tax losses will be utilized during FY26, and income tax installments are likely to begin in the coming months. He guided to unaudited half-year NPAT of $235 million to $245 million.

Analysts focused on Tower Hill timing, the impact of bringing forward capital, and whether long-lead items could become bottlenecks; management said first ore was originally planned for FY28 but scope exists to bring it forward, with some long-lead items likely to be moved on quickly. Questions also centered on Ulysses’ grade being below reserve grade and the contractor change at Gwalia; management said Ulysses is still in ramp-up with more development ore than stoping ore, so grades should improve as stoping becomes the dominant feed, while Byrnecut was chosen as the optimal Tier 1 contractor and FY26 production and cost guidance remain intact during the transition. Analysts pressed on Laverton recovery and third-party ore; management said third-party ore did not affect Genesis ore recovery, and one final Brightstar campaign of 130,000 to 140,000 tonnes is expected in the March quarter. On the longer-term resource mix, management said a strategic review of Bardoc and a refresh of DFS work are now in scope, with more detail to come in the current half.