Join our daily newsletter At The Bell to receive exclusive market insights
Genesis Minerals Ltd (ASX:GMD) has seen its share price fall more than 5% despite telling investors that its outlook for gold production during the 2025 fiscal year had increased, with processing from the Laverton mill in Western Australia to restart six months earlier than expected.
At 12:31 AEST, shares in Genesis were trading at $2.16: a fall of 5.07% since the market opened.
According to the company announcement, Laverton mill would kick off processing in October 2024 – six months earlier than what Genesis’ five-year plan (published in April) had predicted.
This is only the first step in the company’s ‘accelerated growth strategy’ which has also seen gold production guidance jump to a range of 190,000-210,000 ounces for FY25, up from a previously stated range of 162,000-188,000 ounces – largely based on an anticipated increase in production from Laverton.
The latter project is expected to pull in between 35,000 and 45,000 ounces of gold in FY25, up from guidance of between 14,000 and 16,000 ounces. Production from the company’s Leonora operations is set to remain steady with a mid-point of 160,000 ounces.
Managing Director Raleigh Finlayson said a higher gold price was something the company was keeping an eye on as it reported these results.
“The expedited start of production at Laverton will deliver significant cashflow benefits
this financial year and is particularly valuable given our strong exposure to the high spot gold price,” he said.
“As well as producing significantly more ounces in FY25 as a result of the accelerated start up, this success means we will enter next financial year in a stronger position due to the more advanced ramp up schedule at Laverton.
“This is consistent with our strategy to increase annual production to the targeted 325,000oz ahead of the 2029 timetable outlined in the five-year plan with positive implications for our aspirational production goal of 400,000oz a year.
“To bring a project into production significantly ahead of schedule is a major achievement. I would like to thank our team and contract partners for their huge efforts in delivering this superb result.”
