Genesis posts ‘robust’ gold production, bolsters balance sheet

Genesis Minerals (ASX:GMD) has grown its cash and bullion position by $14 million following a ‘strong’ start to production and cashflow at its Leonora Gold Project over the September quarter. 

The $1.43 billion market capitalisation company says as of 30 September 2023, its cash and bullion stands at $170 million — up from $156 million on June 30 despite the company spending between $8 million and $10 million on project development at the Admiral and Ulysses deposits.  

This achievement was made during Genesis’ first quarter as owner of Leonora.  

Genesis reports gold production for the quarter stands at 34,066 ounces and sits above the recent 120,000-130,000-per-annum production rate for its Gwalia mine on a stand-alone basis. 

The company notes this plays into its long-term strategy to ‘future-proof’ the business, including the ‘prudent’ build-up of surface ore stockpiles for processing. 

Genesis Mining Services is fast-tracking the Admiral open pit to supplement the Gwalia underground mine and fill the 1.4 million-tonne-per-annum (Mtpa) Leonora mill.

The company says as Admiral ramps up over the coming quarters, it expects production at Leonora to gradually increase.

As of 30 September, the company’s surface ore stockpiles stood at 43,000 tonnes — a 38,000-tonne increase since June. 

Genesis announces the Leonora strategic review is progressing as expected, and the company is on track to deliver its maiden 5-year outlook in March 2024.   

These are all key ingredients in our long-term low-cost strategy at Leonora”

Speaking on the production and cashflow results, Genesis Minerals Managing Director Raleigh Finlayson says: “Our team has made outstanding early progress towards re-setting Gwalia mine production, adding Admiral ore to fill the Leonora mill and reducing costs. 

These are all key ingredients in our long-term low-cost strategy at Leonora.”

Genesis Minerals is a gold producer actively working in the tier-one gold mining district of Leonora, Western Australia, with a long-life, 300,000-ounce-per-annum base case ‘margin over ounces’ production plan. 

The company’s Leonora project comprises the Ulysses, Admiral, Orient Well and Puzzle deposits and is located only 30km south of the township of Leonora. 

Genesis Minerals had no band debt and no hedging as of 30 September 2023.

Write to Adam Drought at Mining.com.au

Images: Genesis Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.