Genesis Minerals Limited (ASX: GMD) is pleased to report a landmark June quarter in terms of its strategy of building a premium Australian gold business with sustainable, high quality, +300,000 ounces per annum production.
On 30th June 2023, Genesis completed the acquisition of St Barbara's (ASX:SBM) (St Barbara) Leonora assets, including: Gwalia underground mine 1.4Mtpa Leonora mill
Tower Hill project
Zoroastrian project
In connection with the acquisition, Genesis raised A$470 million (before costs) during the quarter at a price of A$1.15 per share via a two-tranche placement of fully paid ordinary shares to professional and sophisticated investors. Genesis paid St Barbara A$370m cash (funded by the A$470 million equity raising) plus 205m Genesis shares. Genesis enters the new financial year as a growing gold producer with a dominant position in the prolific Leonora District. Genesis will complete a strategic review of Gwalia in the December half 2023 and provide a five-year outlook to the market in the March quarter 2024. With A$156 million cash at 30th June 2023 (excluding Dacian) and no corporate bank debt the Company is well funded to appropriately invest in Leonora and deliver the long-term benefits of more production at lower cost and lower risk. The cash balance is before payment of approximately A$40m of transaction costs. In October 2023, Genesis will deliver its first quarterly report after the acquisition of St Barbara's Leonora assets. This report will include maiden quarterly production and cost performance from the Gwalia mine under new Genesis ownership (starting with the September quarter 2023).
Managing Director Raleigh Finlayson said Genesis was delighted to have completed the Leonora transaction and join the Western Australian gold producer peer group. 'We now look forward to demonstrating the transformational nature of the acquisition by delivering a long life, 'margin over ounces' Leonora business plan,' Mr Finlayson said. 'Most pleasingly, strong progress has been made towards the successful integration of St Barbara's and Genesis' people and projects. 'The next six months will be focused on a strategic review of Gwalia, with our team committed to re-building the foundations to ensure a new lease of life for this prolific gold asset.'
Admiral open pit
The Admiral open pit is located 40km trucking distance from the Leonora mill and is the maiden assignment for Genesis Mining Services (GMS, Genesis' in-house open pit mining arm). The open pit has been fast-tracked and right-sized to fill the 1.4Mtpa Leonora mill over the next 2 years, with 1.5Mt of ore scheduled from Admiral over this period. The establishment of surface infrastructure is well advanced and new GMS equipment is arriving on site in preparation for delivery of first ore in the December quarter
The ability of Admiral to fill the Leonora mill over the next 2 years affords Genesis the flexibility to optimally match Ulysses underground development with the equipment and labour requirements of the Gwalia underground mine. The Leonora mill has been under-utilised since 2015. The addition of initially Admiral and then Ulysses ore will lower the processing costs (better utilisation of high fixed cost mill) and ultimately enable a lower cost 'quality over quantity' mining strategy at Gwalia
There was no production during the quarter with the processing plant and associated infrastructure in care and maintenance. Final gold recovery from gold-in-circuit was completed early in the quarter with gold sold of 2,039oz for an average sale price of A$2,990/oz. Ongoing project development activities include mining studies and the expansion of water supply and tailings storage capacity. The targeted outcome is a robust, low risk, sustainable mine plan that will underpin the resumption of operations. Exploration continues to advance targets with the potential to deliver the next generation of large-scale gold deposits. Dacian had cash of A$25.2 million at 30th June 2023, before creditor and other commitments. Refer to Dacian ASX announcement 31st July 2023 'Quarterly Activities Report - June 2023' for full details covering Dacian's June quarter.
Corporate structure
Ordinary shares on issue: 1,029m
Unquoted securities: 49m
Market capitalisation: A$1.5b (share price A$1.475)
Cash (30th June): A$156.2m
Substantial shareholders: AustralianSuper Pty Ltd 17.8%
Resource Capital Fund VII L.P. 7.6%
Paradice Investment Management 6.3%
This announcement is approved for release by Raleigh Finlayson, Managing Director, Genesis.
Contact:
Troy Irvin
Tel: +61 8 6323 9050
Email: investorrelations@genesisminerals.com.au
Competent Person Statements
The information in this report that relates to Exploration Results is based on information compiled by Mr. Andrew de Joux, a Competent Person who is a member of The Australian Institute of Geoscientists. Mr de Joux is a fulltime employee of Genesis Minerals Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr de Joux consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources at Ulysses, Admiral, Orient Well, Laterite and Puzzle Deposits and for estimated Stockpiles are based on information, and fairly represents, information and supporting documentation compiled by Mr. David Price who is a Member of the Australasian Institute of Mining and Metallurgy. David Price is a contract employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. David Price consents to the inclusion in the statement of the matters based on her information in the form and context in which it appears. The information in this report that relates to Ore Reserves at Admiral, Ulysses, Orient Well and Puzzle Open Pits is based on information, and fairly represents, information and supporting documentation compiled by Mr. Christopher Burton who is a Member of the Australasian Institute of Mining and Metallurgy. Christopher Burton is a full-time employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Christopher Burton consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears. The information in this report that relates to Ore Reserves at Ulysses Underground is based on information, and fairly represents, information and supporting documentation compiled by Mr. Jonathan Wall who is a Member of the Australasian Institute of Mining and Metallurgy. Jonathan Wall is a full-time employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Jonathan Wall consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears.
Forward Looking Statements
Some statements in this report regarding estimates or future events are forward looking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward looking statements include, but are not limited to, statements preceded by words such as 'planned', 'expected', 'projected', 'estimated', 'may', 'scheduled', 'intends', 'anticipates', 'believes', 'potential', 'could', 'nominal', 'conceptual' and similar expressions. Forward looking statements, opinions and estimates included in this report are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results to differ from estimated results and may cause the Company's actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for among other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward looking statements will prove to be correct.
GENESIS MINERALS LIMITED 
