Genesis Minerals dips despite hiking gold production outlook
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The news: Genesis Minerals shares lowered on the ASX despite the gold producer increasing its FY25 production outlook due to an earlier re-start at its Laverton mill.
The numbers: Genesis shares fell 4.6% to $2.17 by 1pm, as part of a wider sell off in gold stocks as global prices of the precious metal flatlined.
The Perth-based miner said that its Laverton mill will re-start in October, six months earlier than previously expected. The mill has been on "hot" care and maintenance since March 2023. Its refurbishment is around 60% complete and on track for commissioning in October 2024 for first gold production in the December quarter.
Genesis consequently lifted its full-year production outlook from between 162,000 and 188,000 ounces to between 190,000 and 210,000 ounces. All-in sustaining cost guidance has been reduced to $2,200 to $2,400 per ounce from $2,250 to $2,450 per ounce.
The context: Genesis' Laverton site, the smaller of its two major projects, is being developed to resume production as a safer and more sustainable mine, and is expected to overtake the miner's flagship Leonora site for volume around FY32.
What they said: "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," said Genesis managing director Raleigh Finlayson.
"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," he said.
The source: ASX announcement
