Genesis Minerals Secures $250M Gold Acquisition Near Laverton, Doubling Resource Base

About Genesis Minerals Limited

Genesis Minerals Limited (ASX: GMD) is an Australian gold exploration and development company primarily operating in Western Australia. They focus on exploring and developing gold deposits, aiming to advance their projects towards production. Their main activities include drilling, resource definition, and feasibility studies to unlock the potential of their key gold assets. Genesis often looks to expand its portfolio through acquisitions and partnerships to build a sustainable gold production business. Genesis Minerals Limited is listed on the ASX with a share price of $4.50 (AUD) as of market close on 10/06/2025.

Resource expansion

Genesis Minerals’ recent acquisition of the Laverton Gold Project marks a significant step in expanding its resource base and operational capacity. The project adds approximately 4 million ounces of gold resources to Genesis’ portfolio, substantially increasing its total gold resources. This acquisition effectively boosts the company’s ounces of gold per share, enhancing the underlying value for shareholders and strengthening Genesis’ position in the Australian gold sector.

A key feature of this acquisition is its classification as a “bolt-on project.” Bolt-on projects are strategic additions that complement and integrate seamlessly with existing operations, enabling companies to maximise efficiency and accelerate growth. In this case, the Laverton Project is located just 30 kilometres from Genesis’ current 3 million tonnes per annum (Mtpa) Laverton processing facility. This proximity allows for direct operational synergies, as ore from the new project can be processed at the existing mill, reducing the need for substantial additional capital investment.

The integration of open-pit and underground ore from the Laverton Project into Genesis’ current milling operations is expected to enhance throughput, optimise production schedules, and improve overall cost efficiency. By leveraging existing infrastructure and expertise, Genesis can rapidly scale up production without the typical delays associated with greenfield projects. This synergy reduces operating costs and shortens the timeline to production, creating earlier cash flow generation.

Strategically, this bolt-on acquisition aligns with Genesis Minerals’ broader “ASPIRE 400” growth plan, which aims to increase annual gold production to 400,000 ounces. The addition of 4 million ounces of resources provides a solid foundation to support this target and deliver sustainable growth. The transaction strengthens Genesis’ resource base and liquidity, positioning the company for further exploration and value creation, all while delivering tangible benefits to shareholders through increased resource ounces per share and enhanced operational efficiencies.

Financing the acquisition

Genesis Minerals financed the A$250 million acquisition of the Laverton Gold Project through a combination of existing cash reserves and an upsized A$225 million corporate revolving credit facility. Before the acquisition, Genesis held approximately A$650 million in liquidity, which reduced to around A$400 million post-transaction, maintaining strong financial flexibility and a strong liquidity position to capitalise on future opportunities. The purchase price for the gold Genesis Minerals gained in the acquisition equates to about A$63 per ounce of gold resources (the average cost for a comparable transaction is $165). The forecasted profit margin on the acquired gold is $284/oz, reflecting a favourable acquisition cost relative to market value. This financing structure allows Genesis to expand its resource base cost-effectively while preserving liquidity for future opportunities.

The financing approach adopted by Genesis Minerals to secure the Laverton Gold Project reflects a prudent balance between leveraging available credit facilities and preserving cash reserves, thereby minimising dilution or excessive leverage. By utilising an upsized corporate revolving credit facility, Genesis not only ensures immediate access to funds but also maintains flexibility to manage debt levels strategically over time. This approach mitigates refinancing risks and supports operational continuity while enabling the company to deploy capital efficiently. From a financial perspective, the acquisition’s structure is likely to enhance Genesis’s balance sheet by increasing asset backing and potential future cash flows without significantly impairing liquidity ratios. Moreover, maintaining a strong liquidity position post-acquisition positions.

Production and Cost Forecasts

Genesis Minerals’ acquisition of the Laverton Gold Project is expected to significantly boost production and lower costs over the next several years. According to slide 6 of the latest corporate presentation, the company is forecasting annual gold production to increase from approximately 150,000 ounces in FY25 to around 325,000 ounces by FY29. Which shows a forecasted productivity growth of over double the current productivity in just 4 years, which has been attributed to the recent acquisition. This substantial productivity growth also aids Genesis Minerals in achieving their “ASPIRE 400” growth plan.

On the cost front, the company now expects all-in sustaining costs (AISC) to be in the range of A$2,200 to A$2,400 per ounce in FY25. Which is a decline from previously forecasted costs for this period. All-in sustaining costs per ounce are expected to continually decline as the new acquisition doubles the amount of produced gold while utilising existing capital to aid mining and production.

By FY27, AISC is forecast to decline significantly to around A$1,400 per ounce—a reduction of over 35% from FY25 levels. This drop will be driven by economies of scale creating lower haulage and processing costs per unit and optimised ore blending. Combined with a strong gold price environment caused by global economic uncertainty regarding trade tensions, this positions Genesis to generate over A$100 million in free cash flow by FY27, up from approximately A$40 million in FY25. The acquisition and rapid integration of the Laverton Project are thus set to materially improve Genesis Minerals’ production capacity and cost profile in the near term.