ASX:GMD
Genesis Minerals Ltd
Investment Summary
The fund managers believe that Genesis Minerals Ltd is in a strong position, evidenced by recent performance metrics. In their opinion, the company's record gold production and improved cost efficiencies during the December quarterly have set it on track to achieve the top end of its FY25 guidance. The restart of the Laverton mill is also a key milestone, with production expected to escalate significantly. Furthermore, the fund managers are optimistic about Genesis' long-term growth trajectory, supported by its strategic M&A initiatives and a robust operational team. They highlight the miner's ability to maintain production guidance amidst volatile gold prices and political uncertainties. The prospect of a fully funded 10-year plan, aiming for 3 million ounces of gold, with 91% of ounces in reserve, enhances its investment appeal. Overall, the managers exhibit confidence in Genesis' organic growth potential and operational resilience.
Commentary From The Managers
Blackwattle Investment Partners
31 Mar 2025
$3.71
- Genesis Minerals rose +16.7% in the month.
- Astute M&A in 2022-23 laid the foundations for impressive growth.
- Laverton mill restarted and ramped up to nameplate capacity.
- Production set to climb from 50koz today to 135koz by FY29.
- Genesis has a fully funded 10-year plan to produce 3 million ounces of gold.
- 91% of ounces already in reserve provides a high level of certainty.
- Assets like the Westralia pit not yet included in mine plan.
- A fantastic team demonstrates passion, focus, and owner mentality.
Blackwattle Investment Partners
31 Jan 2025
$3.19
- Genesis Minerals rose 29.2% in January on the back of sustained strength in gold prices.
- December quarterly results exceeded consensus expectations across all metrics.
- Record gold production was achieved, contributing to the positive outlook.
- Lower costs and higher cash generation were also reported.
- The Laverton mill has been restarted and is performing ahead of its 3.0Mtpa nameplate capacity.
- Genesis Minerals is on track to reach the upper end of its upgraded FY25 guidance.
- Blackwattle Investment Partners continues to hold because of the strong operational performance and positive outlook.
Clime
31 Jan 2025
$3.19
- GMD's December quarterly report delivered a strong outcome.
- Production exceeded expectations.
- The miner is on track to surpass FY25 production guidance of 210koz.
- GMD has benefited from continued strength in gold prices.
- This strength is driven by ongoing central bank purchasing and heightened political uncertainty.
- Clime maintains conviction in GMD's operational capability.
- There is an expansive organic growth pipeline at GMD.
Blackwattle Investment Partners
30 Sept 2024
$2.06
- Genesis Minerals fell 9% during the month despite positive developments.
- The Laverton mill will restart in October, six months earlier than anticipated in the March 2024 Five-year Plan.
- FY25 gold production guidance was increased from 162-188koz to 190-210koz.
- The price of gold rose 5.2% to US$2,635/oz.
- Genesis was among several gold stocks that underperformed relative to the commodity.
- Blackwattle Investment Partners remains positive due to Genesis's organic growth profile and high-quality management team.
- Notably, Genesis outperformed over the September quarter with a rise of 17.4% compared to gold's +13.2%.
Blackwattle Investment Partners
31 July 2024
$2.09
- Genesis Minerals rose 19.1% in July following a solid June Quarterly update.
- The update was in-line with market expectations.
- Genesis flagged a potential acceleration of organic growth.
- This acceleration could pull forward production ounces in the 5-year plan.
- Blackwattle Investment Partners continues to hold due to the positive outlook based on these developments.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.