Genesis Minerals Mining Operations: Gold Growth and Cost Trends

Genesis Minerals Limited (ASX: GMD) put out its update for the period to 30 Sep 2026 on 22 Oct 2026. Both trends show up in it.

Cash and equivalents stood at A$598.0 million when the quarter ended on 30 Sep 2026. It also moved closer to a shareholder vote on its Vault Minerals merger. The open question is how long rising costs can be absorbed.

Gold Production Edges Up as Ulysses and Jupiter Post Records

Genesis Minerals gold production reached 72,107 ounces (oz) in the quarter. The June quarter delivered 70,766 oz. The Company sold 71,594 oz at an average of A$5,902 per oz, which brought in A$422.5 million.

Two operations set records. Ulysses, an underground mine, produced a record 17.4 thousand oz of gold for the quarter with a grade of 3.8 g/t.  Jupiter open pit mined 13.1 thousand oz.

Gwalia Grade Dips on Planned Mine Sequencing

Gwalia underground mined 27.4 thousand oz at 4.9 g/t. The June quarter was 29.5 thousand oz at 6.6 g/t. The Company says planned lower-grade stopes caused the dip. It expects Reserve grade again in the December quarter.

Mining Costs Rise Again as Sustaining Capital Jumps

The all-in sustaining cost (AISC) reached A$2,966 per oz. The June quarter was A$2,797 per oz. That makes three quarterly increases in a row. Sustaining capital per oz climbed to A$455 from A$127.

Cash generated by mining operations slipped from A$286 million in the June quarter to A$213 million in September. Net mine cash flow was A$162 million after A$51 million of growth capital.

The Company expects second-half AISC to be lower than the first half. Growth capital includes A$140 million for a new Tower Hill mill. The Vault merger would make that mill unnecessary.

Growth Outlook Rests on Two Open Pits and a Bigger Drill Budget

The Company has two development pits moving and a much larger exploration spend.

• Early mining at Tower Hill is running ahead of schedule, and first ore is still targeted for FY28.
• The Tower Hill Reserve is 17.0 million tonnes at 2.0 g/t for 1.1 million oz, planned as one open pit over 1.4 kilometres of strike.
• At Bruno Lewis, access roads, offices, a workshop and fuel depots are underway or complete. First ore is expected this December quarter.
• A new Leonora Rail Terminal is under construction, with rail laying described as imminent.
• The FY27 exploration budget is A$80 million to A$90 million, and A$19.9 million was spent in the quarter.
• That budget is in line with the A$85 million spent across FY24 to FY26 combined.

Figure 1: Rail terminal earthworks near Leonora supporting the Tower Hill build [Courtesy: Genesis Minerals Limited]

Share Price Data

Industry Outlook: Inflation Is the Sector Pressure Point

Executive Chair Raleigh Finlayson tied the potential synergies to cost inflation across the sector. Diesel is about 5% of the Company’s total costs. The average price received fell to A$5,902 per oz while AISC rose, and the Company is unhedged, so gold price moves will reach results directly.

Completion Would Reshape Reported Earnings, Funding and Capital Spend

Impact on reported earnings: about one month of Vault Minerals earnings is expected in the half-year to 31 Dec 2026. Higher depreciation and non-cash inventory charges will likely reduce statutory NPAT.

Impact on capital spend: completion removes the need for the A$140 million Tower Hill mill.

Impact on funding: the Company is on track to upsize its corporate facility to A$1 billion, subject to completion.

Impact on investor visibility: a long-term Strategic Plan is targeted for the June quarter 2027. Every outcome above remains subject to shareholder and Court approval.

Mining Herald will follow the Scheme Meeting and the Strategic Plan release.

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FAQs

Q1. How much gold did Genesis Minerals produce in the September 2026 quarter?
Ans. It produced 72,107 oz at an AISC of A$2,966 per oz.

Q2. When is the Vault Minerals Scheme Meeting?
Ans. Genesis has announced that the Scheme Meeting is to be held on 11 Nov 2026. If approved by shareholders and the Court, the Scheme will be implemented on 26 Nov 2026.

Q3. What is the FY27 stand-alone production guidance?
Ans. The Company expects 270,000 to 300,000 oz, at an AISC between A$2,750 and A$3,050 per oz.

Q4. When is first ore expected at Bruno Lewis and Tower Hill?
Ans. Bruno Lewis targets the December quarter. Tower Hill targets FY28.

Disclaimer

This article is intended for informational purposes only. If you pay attention to the Australian gold mining sector as an investor, then all the data in the content is from third-party sources. Please check out the complete share price and market data info. Investing carries a high risk, and you should only invest at your own risk. Mining Herald has no involvement in the above-listed company.