Genesis Minerals posts strong FY25 profit surge, flags higher output for FY26
Genesis Minerals (ASX:GMD) has delivered a sharp uplift in earnings on the back of higher production and stronger gold prices, though its shares fell more than 3% today as investors weighed increased cost guidance.
Strong financial and operating performance
The gold producer reported a 256% rise in underlying earnings (EBITDA) to $454.1 million and a 127% increase in net profit after tax to $221.2 million for the year to June 30, 2025. Revenue more than doubled to $920.1 million, underpinned by a 59% jump in gold output to 214,311 ounces — above the company’s upgraded guidance range of 190,000–210,000 ounces.
All-in sustaining costs (AISC) were steady at A$2,398 an ounce, broadly in line with guidance. Cash and bullion holdings climbed to A$263 million, even after a A$250 million cash outlay to acquire Focus Minerals’ Laverton project.
Strategic acquisition and growth outlook
The Laverton acquisition, completed late in FY25, added 4 million ounces of resources and lifted Genesis’ reserves to 4.2 million ounces. Managing director Raleigh Finlayson said the deal “will help us drive production growth, which will in turn reduce unit costs while providing increased flexibility and further de-risking our business.”
The company is progressing studies into staged mill expansions at both its Leonora and Laverton operations, part of its “ASPIRE 400” strategy to accelerate output towards 400,000 ounces a year.
Guidance and investment plans
For FY26, Genesis is targeting production of 260,000–290,000 ounces, up around 28% at the mid-point, with AISC expected to rise to between $2,500 and $2,700 an ounce. Growth capital expenditure is forecast at $150 million–170 million and exploration spend at $40 million–50 million, both stepping up from FY25 levels.
The company said it would release an updated long-term growth plan in the first half of calendar 2026.
Despite the strong results and upbeat guidance, shares in Genesis were trading down more than 3% as of 4 pm AEST on Thursday.
Source: https://www.proactiveinvestors.com.au/