Genesis Minerals (ASX:GMD) announced on Tuesday that it has brought forward the restart of its Laverton mill in WA’s Goldfields to take advantage of near-record gold prices, especially in Australian dollars.
Genesis informed the ASX that it will restart processing at the mill six months earlier than previously planned, with operations set to commence in a month. This decision will allow the company to boost its guidance for 2024–25 gold output.
Genesis now anticipates 2024–25 gold production to be around 190,000–210,000 ounces (oz) at a reduced all-in sustaining cost (AISC) of A$2,200–A$2,400 per ounce, an increase from the previous guidance of 162,000–188,000 ounces.
The earlier restart of the Laverton mill will result in a forecast production of 35,000–45,000 ounces in 2024–25, up from the previous expectation of 14,000–16,000 ounces.
This expected increase in gold production follows Genesis producing 134,451 oz in the year to June, meeting the company’s guidance of 130,000–140,000 oz.
“The expedited start of production at Laverton will deliver significant cash flow benefits this financial year and is particularly valuable given our strong exposure to the high spot gold price,” Genesis CEO Raleigh Finlayson said in Tuesday’s announcement.
“As well as producing significantly more ounces in FY25 as a result of the accelerated start-up, this success means we will enter the next financial year in a stronger position due to the more advanced ramp-up schedule at Laverton.”
Finlayson noted that the increase in gold production will have “positive implications” for the company’s production target of 400,000 oz per year.
“To bring a project into production significantly ahead of schedule is a major achievement,” Finlayson added.
Additionally, the company plans to spend $20 million this financial year on exploration, focusing on its Gwalia areas.
Genesis views the early Laverton mill restart as the first step of its accelerated growth strategy, which aims to achieve 325,000 ounces of gold ahead of the 2029 target date, while also cutting costs faster than outlined in its five-year plan last March.
