Join our daily newsletter At The Bell to receive exclusive market insights
WA-based gold explorer Genesis Minerals (ASX:GMD) reported robust financial results for the first half of FY24 after-market on Thursday, raking in a statutory net profit of A$14.8 million.
This comes as the company moves a step closer to establish itself as a major player in Western Australia’s gold industry, with the aim to produce 300,000 ounces annually.
The company is confident it can achieve that; its sales revenue for the half was up from $43.8m in 2022 to $209.1m and its EBITDA went from $-28 million to $46.6 million.
Where Genesis produced 13.4 koz of gold by the end of December 2022, that number went up to 69.4 koz a year later to close out 2023.
According to its report, Genesis Minerals’ net profit was driven by solid gold sales revenue of A$209.1 million generated from the sale of 70,077 ounces of gold.
Genesis ended the year with A$192 million in cash and bullion, and no corporate bank debt. The company also invested A$44.5 million in ‘growth capital,’ and exploration, during the reporting period.
Progress towards the goal of 300,000 ounces per annum seems quite evident, with multiple key initiatives underway.
These include the commencement of underground development at the Ulysses deposit, a strategic acquisition of deposits from Kin Mining (ASX:KIN), ongoing mining expansion at the Admiral open pit, and development activities at the Tower Hill deposit.
“Genesis has put the building blocks in place to deliver on its stated strategy of establishing a premium 300,000oz gold producer and we look forward to presenting our five-year outlook to our shareholders later this month,” Managing Director Raleigh Finlayson said.
The 5-year outlook will lay the foundation for the company’s future growth trajectory, guided by a robust business plan centered on maximizing margins over production volumes.
GMD has been trading at $1.91.
