Genesis Minerals Reports Record FY26 Gold Output of 285,402oz Amid Vault Gold Merger Plans and FY27 Expansion

Record FY26 Production and Financial Highlights

Genesis Minerals recorded a historic annual gold production of 285,402 ounces in FY26, comfortably within its guidance range of 260,000 to 290,000 ounces. The all-in sustaining cost stood at A$2,670 per ounce, aligning with the FY26 AISC guidance of A$2,500 to A$2,700 per ounce. The June quarter alone produced 70,766 ounces at an AISC of A$2,797 per ounce, demonstrating robust operational performance despite inflationary challenges affecting the gold mining sector.

During FY26, the company generated underlying cash flow of A$899 million before accounting for growth, exploration investments, debt servicing, and acquisition expenditures. In the June quarter, Genesis achieved an underlying cash increase of A$263.8 million prior to disbursing A$447 million in cash for the Magnetic Resources acquisition, drawing down A$200 million in debt, paying A$13 million in stamp duty, and investing A$83.6 million in growth and exploration. As of 30 June 2026, cash and equivalents totaled A$520.1 million, with net cash of A$320.1 million after accounting for A$200 million in bank debt. The unaudited underlying net profit after tax for FY26 is estimated between A$540 million and A$550 million.

June Quarter Operational Performance and Gold Sales

In the June quarter 2026, Genesis Minerals sold 77,797 ounces of gold at an average price of A$6,175 per ounce, generating revenue of A$480.4 million. Sales exceeded production for the quarter, reflecting drawdown from gold stockpiles. Closing ore stockpiles increased to 53,773 ounces at an average grade of 0.9 grams per tonne, providing operational flexibility for future processing.

Management highlighted disciplined cost control during the quarter, maintaining an AISC of A$2,797 per ounce despite inflationary pressures impacting the industry. Executive Chair Raleigh Finlayson emphasized that "tight cost control in the face of rising inflation across the industry has been a key feature of our results," underscoring this as a critical factor in the company’s financial success.

Acceleration of Tower Hill and Bruno Lewis Open Pit Projects

To support production growth beyond FY27, Genesis Minerals has expedited development of its Tower Hill and Bruno Lewis open pit projects. Tower Hill has completed pit dewatering and commenced open pit mining. The company has ordered the final ground moving support equipment ahead of schedule and started construction of a new Leonora Rail Terminal to support Tower Hill Stage 2 mining operations, reflecting a strong commitment to unlocking production potential.

The Bruno Lewis project is also on an accelerated timeline, with open pit mining scheduled to start in the September quarter 2026. Combined with significant drilling success—21 intercepts exceeding 100 gram-metres reported in the June quarter—these projects position Genesis for substantial production growth. FY27 growth capital expenditure is projected between A$380 million and A$420 million, including A$140 million allocated for a new Tower Hill mill. However, this mill investment may be rendered unnecessary following the Vault merger due to anticipated asset optimisation.

Strategic Magnetic Resources Acquisition Enhances Gold Portfolio

Genesis Minerals finalized the acquisition of Magnetic Resources Limited during the June quarter, adding the high-grade Lady Julie deposit containing 2.2 million ounces of gold and expanding its footprint on the Laverton region’s Chatterbox Trend. Funded through strong cash flows, the A$447 million acquisition enhances near-mine exploration potential and complements existing Laverton operations, supporting accelerated development of Tower Hill and Bruno Lewis.

The Lady Julie deposit significantly bolsters Genesis’ mineral resource base, offering near-term production prospects without extensive greenfield exploration risk. The expanded presence on the Chatterbox Trend positions the company to capitalize on exploration successes across its Western Australian tenure, aligning with its strategy of growing production around existing infrastructure—a focus that will continue post-merger.

FY27 Stand-Alone Production and Cost Guidance

Genesis Minerals projects FY27 stand-alone gold production of 270,000 to 300,000 ounces at an AISC of A$2,750 to A$3,050 per ounce. The company anticipates second-half FY27 AISC to be lower than the first half, reflecting operational efficiencies and growth project ramp-up. Exploration expenditure is budgeted at A$80 million to A$90 million, sustaining investment in future growth across its Western Australian assets.

This guidance is subject to the pending merger with Vault Gold Limited, expected to complete in November 2026. Post-merger, Genesis plans to release a comprehensive long-term strategic plan in the first half of 2027, superseding current stand-alone forecasts and incorporating combined assets, capital optimisation, and synergy realisation.

Genesis-Vault Merger to Form Top 20 Global Gold Producer

Following quarter-end, Genesis Minerals and Vault Gold Limited agreed on a merger via a Vault Scheme of Arrangement, with Genesis acquiring 100% of Vault shares for A$12.6 billion. Completion is targeted for November 2026. The merged company is expected to deliver pro forma annual production of approximately 600,000 to 700,000 ounces, with total resources of 34 million ounces and reserves of 9 million ounces. This will position the combined entity as a Top 20 global gold producer and a Top 3 Australian gold producer by volume.

Management anticipates unlocking around A$2.0 billion in post-tax, undiscounted synergies, including A$1.5 billion unique to this merger. These synergies are expected from economies of scale, enhanced production efficiencies, and operational flexibility due to complementary asset bases. The proximity of Genesis and Vault operations in Western Australia offers significant integration, infrastructure sharing, and portfolio optimisation opportunities. Executive Chair Raleigh Finlayson described the merger as "a rare and highly rewarding opportunity for shareholders of both groups," emphasizing continued focus on disciplined cost management and production growth.

Long-Term Strategic Plan and Merger Timeline

Genesis Minerals has postponed its long-term strategic plan, originally scheduled for release in September quarter 2026, to after the Vault merger completion targeted for November 2026. The comprehensive plan, expected in the first half of 2027, will cover the combined Genesis–Vault entity and include multi-year production and cost assumptions reflecting asset optimisation and synergy realisation.

This timing allows for thorough review of the combined asset portfolio before committing to multi-year guidance, enabling management to optimise capital allocation and present a unified long-term strategy to shareholders. The merger completion timeline accounts for due diligence, regulatory approvals, and integration planning.

Safety Performance and Sustainability Commitment

During the June quarter 2026, Genesis Minerals maintained a strong safety record with one lost-time injury reported. The company recorded a lost-time injury frequency rate (LTIFR) of 0.8 and a serious injury frequency rate (SIFR) of 4.7, reflecting sustained emphasis on workplace safety and risk management. This commitment is vital to operational sustainability and workforce wellbeing.

Transparency in safety metrics aligns with growing investor focus on sustainability performance. Maintaining safety standards amid operational acceleration at Tower Hill and Bruno Lewis demonstrates the company’s effective risk management alongside growth execution.

Exploration Success and Growth Momentum

Genesis Minerals reported notable exploration achievements in the June quarter 2026, with 21 intercepts exceeding 100 gram-metres across its portfolio. This metric, combining intercept length and grade, indicates high-quality mineralisation and exploration success. The widespread nature of these results supports the company’s organic growth strategy alongside development projects like Tower Hill and Bruno Lewis.

FY27 exploration expenditure of A$80 million to A$90 million reflects confidence in asset prospectivity. Highlights include strong drilling results at Leonora and Laverton, reinforcing production growth potential at the Laverton hub. These outcomes contribute to a robust pipeline of future production opportunities, underpinning long-term value creation focused on leveraging existing infrastructure.

Effective Cost Control Amid Inflationary Challenges

Management emphasized disciplined cost control as a key operational strength, achieving FY26 AISC of A$2,670 per ounce within guidance despite sector-wide inflationary pressures. This cost discipline differentiates Genesis from peers and has been described as "an important driver of our overall financial success and a point of difference with much of our peer group." Inflationary pressures are expected to continue in the near term.

Maintaining cost efficiency directly enhances cash flow and returns for shareholders. FY27 AISC guidance of A$2,750 to A$3,050 per ounce, with anticipated second-half improvements, reflects confidence in sustaining this approach. Cost management will be critical for the merged entity’s competitiveness and cash generation, especially as cost control becomes a key differentiator among leading gold producers.