Good early progress at Gwalia

Company News

by Glenn Dyer

Genesis Minerals (ASX:GMD) acquired the Leonora assets, primarily the Gwalia mine, from St Barbara in July after a months-long takeover process. The contribution for the September quarter marks their initial impact.

During the quarter, Genesis reported gold production of 34,066 ounces (oz), surpassing the recent 120,000–130,000 ounce production rate for Gwalia on a stand-alone basis.

Genesis anticipates further improvements as they conclude their strategic review and fast-track the Admiral open pit to complement the Gwalia underground mine, as well as enhance the 1.4Mtpa Leonora mill. Production in Leonora is expected to rise as Admiral ramps up in the upcoming quarters.

Despite spending between $8–10 million on project development for the Admiral project and work at the Ulysses prospect, cash and bullion holdings increased by about $14 million over the quarter, resulting in a total of $170 million as of September 30.

Genesis CEO Raleigh Finlayson emphasised the company's commitment to a long-term strategy focused on profit margins over marginal ounces. The ongoing review aims to guide Genesis towards becoming a 300,000+ ounce per year producer.

Finlayson stated, "Our team has made outstanding early progress towards re-setting Gwalia mine production, adding Admiral ore to fill the Leonora mill, and reducing costs. These are all key ingredients in our long-term low-cost growth strategy at Leonora."

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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