Genesis Minerals capped off a stellar quarter with record gold production, a hefty financial boost, and the early restart of its Laverton mill.
Genesis Minerals capped off a stellar quarter with record gold production, a hefty financial boost, and the early restart of its Laverton mill.
The Goldfields miner churned out more than 57,000 ounces of the precious metal in the three months to December, at an average production price of $2,202/oz.
That record coupled with an Australian gold price which rose 14 per cent to $4,341/oz during the quarter helped Genesis grow its cash pile 34 per cent to $238 million.
Some 49,643 ounces of gold were sold by the company for a return of $200.9m.
Genesis Minerals managing director Raleigh Finlayson said the company was well-placed to meet its 2029 goal to produce 325,000 ounces of gold per year.
“It was an outstanding quarter which highlights the substantial free cashflow-generating capacity of the company as we implement our organic growth strategy,” he said.
We are very pleased with the Laverton mill ramp-up, we are making rapid progress on the start of mining at Ulysses and the Tower Hill development is proceeding to plan.
“This excellent operational performance is enabling us to capitalise on the strong gold price, resulting in strong free cash generation.”
Genesis’ Laverton mill was fired up in October, six months ahead of schedule, and ramp-up has gone off without a hitch.
With two mills now operating, Genesis has capacity to process 4.4 million tonnes of ore per year.
The company expects to meet its 190,000 to 210,000-ounce guidance for the 2024-25 financial year.
Genesis’ strong performance comes amid a buoyant gold market which is rubbing off on most of WA’s gold producers.
Regis on Thursday paid off a $300m syndicated loan four months early.
That loan was taken out in 2021 to fund the acquisition of IGO’s 30 per cent stake in AngloGold Ashanti’s Tropicana goldmine
Regis is now working to establish a revolving credit facility, which chief financial officer Anthony Rechichi said would give the company “sufficient flexibility and liquidity” to grow.
The journalist is a Regis Resources shareholder.
