Genesis Minerals (ASX:GMD) used its December-quarter teleconference to outline another period of record production, strong cash generation, and progress on its growth pipeline, while also detailing changes to its leadership structure. Management said the company is tracking toward the upper end of production guidance and the lower end of cost guidance at the halfway mark of FY2026.
Leadership realignment and governance
Executive Chair Raleigh Finlayson said the company’s leadership changes—Matt Nixon’s promotion to Chief Executive Officer and Finlayson’s move into an executive chair role—were timed to align responsibilities with upcoming operational and strategic work.
Finlayson also said the company’s previous chair, Tony Keenan, will become Lead Independent Director to maintain corporate governance standards. He characterized the transition as “business as usual,” with the same strategy and culture, and said he remains heavily invested in the company.
Record production, costs, and cash flow
CEO Matt Nixon reported that Genesis produced “just over” 74,000 ounces during the December quarter at an all-in sustaining cost (AISC) of AUD 2,635 per ounce. The quarter generated AUD 231 million of mine operating cash flow and AUD 167 million of net mine cash flow after investing AUD 64 million into growth assets including Tower Hill, Ulysses Underground, and Jupiter Open Pit.
Nixon said safety performance was strong, with zero lost time injuries during the quarter and an improved serious injury frequency rate of 4.2.
For the first half, Genesis produced “just over” 147,000 ounces at an AISC of AUD 2,578 per ounce, which management said positions the company well to meet maintained FY2026 guidance of 260,000 to 290,000 ounces at an AISC of AUD 2,500 to AUD 2,700 per ounce.
Executive Chair Finlayson said the quarter’s production was accompanied by “tight cost control” despite industry cost pressures. He also highlighted an underlying cash build of more than AUD 200 million and said the company ended the quarter with more than AUD 400 million in cash and equivalents and no bank debt.
Tower Hill milestones and higher FY2026 growth capital
Management emphasized progress at the Tower Hill project during the December quarter, with Nixon saying several development milestones were achieved that enabled operational readiness activities to progress ahead of schedule and allowed site establishment works to commence in the current March quarter.
Milestones cited by Nixon included:
- Approval of the Stage One mine development and closure plan and receipt of a Native Vegetation Clearing Permit
- An agreement with the PTA, ARC Infrastructure, and Aurizon to enable shortening of the Leonora rail line
- Execution of a mining agreement with the Darlow people
- A second mining agreement executed late in the quarter with the Ngaanyatjarra People
To accelerate Tower Hill, Nixon said capital investment has been brought forward into FY2026, lifting the company’s full-year growth capital outlook to AUD 220 million to AUD 240 million from AUD 150 million to AUD 170 million previously. Finlayson said Genesis continues to lay the groundwork for its “Aspire 400” accelerated growth strategy, including what he called a milestone December quarter at Tower Hill.
In Q&A, Finlayson said there is “scope” to bring forward Tower Hill timing compared with the company’s original plan, but he declined to provide details ahead of the upcoming plan update, reiterating that the full plan would be articulated “just around the corner.” He also said Genesis is monitoring long-lead mill expansion items and indicated there are “a couple of things” the company may move on “reasonably quickly,” with more detail to come in the full plan.
Operational performance across Leonora and Laverton
In Leonora underground, Nixon said the mines delivered 289,000 tonnes at 4.6 grams per tonne for 42,783 ounces, representing a 24% quarter-on-quarter improvement in tonnes and a 34% increase in ounces. At Gwalia, the company mined just over 32,000 ounces at 5.6 grams per tonne from 178,000 tonnes as stoping continued through the “Heart of Gold.”
At Ulysses, development and ramp-up continued, with Nixon reporting a record 1.6 kilometers of lateral advance and 10,500 ounces mined at 2.9 grams per tonne from 111,000 tonnes—up 46% from the September quarter. Responding to a question on Ulysses grades being below reserve grade, Nixon said development ore still comprises a high percentage of feed and that grades are expected to improve as more stoping ore becomes dominant. He added that Ulysses is intended to provide 500,000 to 600,000 tonnes per annum longer term, and said the mine is on track from its current run rate.
Genesis also confirmed a contractor transition in Leonora underground, with Nixon noting the company completed a competitive tender process and issued a letter of intent to Byrnecut Australia. Byrnecut is expected to mobilize in early May after the concurrent contract term by Macmahon, which Nixon thanked for its contribution at Gwalia and Ulysses. In response to analyst questions, management said the company is maintaining FY2026 production and cost guidance through the transition and pointed to productivity as a key lever for output and cost performance.
Leonora open pits delivered 330,000 tonnes at 1.0 grams per tonne for 11,000 ounces, with work focused on cutbacks at Admiral and pre-stripping for Stage Two at Hub. Nixon said volumes are expected to increase significantly in the second half, particularly in the June quarter, and total material movement at the two open pits exceeded 6 million tonnes hauled.
At the Laverton operations, Nixon said Jupiter open pit ramp-up continued, with “just shy” of 3,000 ounces mined at 0.7 grams per tonne from 133,000 tonnes and total material movement of 3.5 million tonnes.
Mill performance was described as excellent. Nixon reported 365,000 tonnes processed at Leonora at 4.0 grams per tonne and 92.8% recovery for just over 43,000 ounces recovered. Laverton processed 759,000 tonnes at 1.5 grams per tonne and 83.8% recovery for just over 31,000 ounces. Nixon said 38% of Laverton feed was third-party ore at 79.2% recovery, while Genesis ore recovery remained consistent at 91.2%. In Q&A, Nixon said different ore types from third-party partners, including refractory elements, did not impact Genesis ore recovery during the quarter. He said one final third-party campaign from Brightstar of roughly 130,000 to 140,000 tonnes is expected in the March quarter, which would close out third-party ore purchase agreement commitments.
Sales, balance sheet, and outlook items
CFO Morgan Ball said Genesis sold 71,000 ounces in the December quarter at an average realized gold price of AUD 6,057 per ounce, up 20% quarter on quarter, generating AUD 430 million in sales. Cash, bullion, and investments increased by AUD 41 million to AUD 404 million.
Ball said the company fully repaid the AUD 100 million in corporate debt drawn seven months earlier to fund the Focus Laverton acquisition, describing it as an example of balance sheet flexibility.
On costs, Ball said the company is tracking to the lower half of guidance year to date and highlighted internal cost reduction initiatives under “Project TALO” (Think and Act Like Owners). He said the company set an ambitious internal cost-out target and is on track to achieve it.
Ball also said Genesis finalized its stamp duty position related to the Focus Laverton acquisition and expects to make an AUD 13 million payment in the June quarter. He added that the company expects to utilize remaining tax losses during FY2026 and said it is likely Genesis will begin paying income tax installments “in the coming months.”
For the half year, Ball said the company estimated unaudited net profit after tax (NPAT) of AUD 235 million to AUD 245 million, which he said was up 300% from the corresponding period and above FY2025 full-year NPAT of AUD 221 million. The company expects to release half-year accounts on Feb. 19.
Genesis also said it invested AUD 11.9 million in exploration during the quarter, including drilling to test the upper 1,000 meters of Gwalia and starting the “Made in Genesis” drilling program at Beasley Creek. Management said a geological results update is expected in the coming months.
About Genesis Minerals (ASX:GMD)
Genesis Minerals Limited engages in the exploration and development of gold deposits in Western Australia. It owns 100% interests in the Leonora Gold project located to the north of Kalgoorlie; 65% interest in the Barimaia Gold project located in the Murchison district of Western Australia; and St Barbara’s Leonora assets comprising Gwalia underground mine and Leonora mill, as well as Tower Hill, Zoroastrian, Aphrodite, and Harbour Lights projects. The company was incorporated in 2007 and is based in Perth, Australia.
