Genesis Minerals (GMD) RRS Summer Series Melbourne summary

Sector overview and market sentiment

• Gold price in AUD remains strong at over $4,000/oz, supporting improved sentiment for gold stocks.

• Gold stocks are still under-owned and trade at lower earnings multiples compared to the broader market.

• Larger generalist investors are expected to return as higher gold prices flow into earnings.

Growth strategy and operational highlights

• Focus on accelerating production, reducing costs, and increasing free cash flow.

• Rapid transformation from a $150M explorer in 2021 to a $2.8B producer through aggressive M&A.

• Current production goal is 400,000 oz per annum, with no debt and $172M in cash and bullion as of September 30.

• Management holds 3.1% of shares, with strong domestic and growing offshore institutional ownership.

Asset base and production plan

• Two main production centers: Leonora (1.4Mtpa) and Laverton (3Mtpa), with Laverton restarted six months ahead of schedule.

• 3.3M oz in reserves, with two-thirds in Gwalia and Tower Hill deposits.

• 10-year base plan underpinned by over 90% reserves, featuring 20% CAGR in production over the first five years.

• All-in sustaining costs projected to decline from AUD 2,300 to AUD 1,600/oz by FY2029.