Genesis Minerals and Westgold Resources have released their 2023–24 financial results (FY24), with both gold miners demonstrating growth across key business areas.
Genesis Minerals
Following the release of its five-year strategic growth plan earlier this year, Genesis produced 134,451 ounces (oz) of gold, achieving its FY24 guidance of 130,000–140,000oz.
The company achieved strong financial metrics, notably 112.9 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA) and $428.3 million in gold sales revenue.
Genesis also achieved an all-in sustaining cost of $2356/oz, achieving its FY24 guidance of $2300–2400/oz. It also invested $101.2 million in growth capital and exploration during the 12-month period and currently has no bank debt.
“These strong results demonstrate the size of the prize we stand to reap through our growth strategy,” Genesis managing director Raleigh Finlayson said.
“We have established a high-quality asset base with the acquisition of the Leonora assets while maintaining a conservative balance sheet with no bank debt and cash and bullion of $173 million.
“At the same time, our growth outlook is exceptional, both in terms of production and cashflow.”
Genesis is currently preparing to further accelerate its organic growth strategy such as achieving its 325,000oz per annum target.
“This combination of rising production, falling costs and rising cashflow is underpinned by a 10-year mine plan of which more than 90 per cent of the ounces are already in reserves,” Finlayson said.
“Importantly, we also have growing operational flexibility and diversification which, along with no bank debt, further de-risks our exceptional growth outlook.”
Westgold Resources
From finalising a key merger to growing various assets through exploration and drilling, Westgold delivered a bumper FY24.
The company achieved $95 million in net profit after tax, which was a significant 852 per cent increase from the previous financial year.
Westgold also saw a 760 per cent increase in free cash flow to $86 million, following the $273 million it invested in growth capex and exploration, and an EBITDA of $271 million.
“FY24 was a watershed year for Westgold with the Company delivering significant improvement across key financial metrics,” Westgold managing director and chief executive officer Wayne Bramwell said.
“The improvement is testament to the hard work of our people and their commitment to our strategy which prioritises safe and profitable gold production.”
Thanks to its unhedged position, Westgold achieved a nine per cent increase in revenue, with the total amounting to $716 million. It also recorded $263 million in cash, bullion and liquids.
“In FY24, Westgold found a balance between investing in our near-term growth options, maintaining balance sheet strength and delivering shareholder returns,” Bramwell said.
“In FY25, this investment will see our organic growth pipeline deliver increased output from an expanded Bluebird-South Junction mine at Meekatharra and first ore from the iconic Great Fingall near Cue (in Western Australia).
“We will apply the same strategy to our Southern Goldfields assets. Westgold can see the opportunity to increase the scale of Beta Hunt and develop new targets at Higginsville with an intensive drilling campaign expected to unlock substantial value in H2, FY25 (the second half of the 2024–25 financial year).”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
