Genesis Minerals has restarted its Laverton mill six months ahead of schedule, which has seen the company boost its production guidance.
The company increased its FY25 production outlook from 162,000–188,000 ounces (oz) to 190,000–210,000oz, and lowered its all-in sustaining cost (AISC) guidance to $2200-2400/oz.
This comes as Genesis produced 36,020oz of gold at an AISC of $2628/oz in the September quarter, slightly higher than its June quarter performance of 34,617oz produced at $2698/oz.
The first gold pour from the Laverton mill is expected in early November 2024, with production expected to ramp up from then on.
“This outstanding performance means we are on track to meet our increased FY25 production and cost guidance while also making significant progress towards our objective of achieving our 325,000oz per annum goal ahead of the FY29 target,” Genesis managing director Raleigh Finlayson said.
The company’s growth strategy, named “ASPIRE 400″, aims to increase production to 325,000oz per annum by FY29.
The early Laverton mill restart is a crucial step in this plan, while other growth initiatives include the acceleration of underground development at Ulysses and ongoing studies at Tower Hill, Hub, and Westralia.
In addition to its operational progress, Genesis increased its ore stockpiles to 469,000 tonnes and strengthened its financial position.
The company reported gold sales of 36,884oz at an average price of $3723/oz, generating revenue of $137.3 million.
Genesis ended the quarter with $177.6 million in cash, bullion, and investments, an increase from $173 million at the end of June 2024.
Meanwhile, Ora Banda Mining achieved record gold production for the September quarter, producing 24,327oz, a 26 per cent increase from the previous quarter.
The company reported no lost time injuries and lifted its cash balance to $48.7 million.
Ora Banda also commissioned its second high-grade mine, Sand King, while its first underground mine, Riverina, reached commercial production.
“This quarter marked a key inflection point for the Company, as we consolidated Riverina Underground as our base load feed source and established our second high-grade underground mine with the commencement of operations at Sand King,” Ora Banda managing director Luke Creagh said.
“The performance this quarter demonstrates the significant value that the company’s underground strategy can deliver, as we generated meaningful cashflow of over $21 million dollars, after spending over $23 million on growth projects whilst noting that Riverina Underground only half fills our processing plant.
“We are looking forward to delivering Sand King over the remainder of this financial year to have our mill full of high-grade feed which is expected to provide another significant inflection of increased production and cashflow”.
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