ANNUAL
2024
REPORT
ACN 124 772 041
Acknowledgement of Country
In the spirit of reconciliation, we acknowledge the Traditional
Owners and Custodians of country throughout Australia on which
we live and work.
Darlot
Kakarra Part A
Marlinyu Ghoorlie
Nyalpa Pirniku
Whadjuk Noongar
We recognise the continuing connection to lands, waters and
communities. We pay our respect to the Elders past, present and
emerging for they hold the memories, the traditions, the culture
and hopes of Aboriginal and Torres Strait Islander Australia.
Our Operations
Perth
Kalgoorlie
LeonoraLaverton
Our Vision and Values
FY24 Highlights
Letter to Shareholders
Strategic Outlook
Board & Leadership Team
Safety & Health
Sustainability
People First
Review of Operations
Financial Review
Risk Management
Mineral Resources and Ore Reserves Statement
Annual Financial Report
Additional Information
2
4
6
7
9
14
18
26
28
44
48
50
55
129
Contents
1
5
Our Vision & Values
6
The trusted Australian gold miner –
Progressive, high-quality, +400koz pa.
Our Core Values drive our culture and leadership.
ASPIRE - Always aim higher.
2
Admiral Open Pit Mine
3
FY24 Highlights
Safety
TRIFR
20%
0.0
FY24: 8.3 FY23: 10.4
FY24: 0.0 FY23: 0.0
LTIFR
Diversity
Workforce
Community
Environment
Local Suppliers
Community Investment
544%
FY24: A$354k FY23: A$55k
80%
Water Recycled
Significant Incidents
67%*
0
*through processing facilities
FY23: 0
4
FY23: 0.3%
Board: 29%
FY23: 0%
Employees: 20%
FY23: 27.5%
Female representation
Indigenous representation
2.4%
Personnel
Local Employees
Leonora & Laverton:
Kalgoorlie:
Staff: 331
Contractors: 588
3%
2.4%
Financial
FY24 Highlights
Share Price
Operational
Resources
Reserves
15.2Moz
3.3Moz
Underlying EBITDA
Underlying NPAT
Gold Sales
124%
FY24: $428.3M FY23: $77M
FY24: $114.3M FY23: ($92.8M)
FY24: $27.8M FY23: ($115.7M)
Growth Capital
35%
Cashflow from Operating Activities
A$136.2M
FY23: ($37.6M)
30Jun24: $1.755 30Jun23: $1.30
AISC
$2,356/oz
EPS
126%
FY24: 7.74c FY23: (29.56c)
$86.5M
FY23:15Moz
FY23:3.9Moz
FY23: N/A
456%
Production
501%
# Operations
3
FY23:1
FY24: 134.5koz FY23: 22.3koz
223%
5
Dear Shareholder
It is with pleasure that I welcome you to the Annual Report of Genesis Minerals for the 12 months to 30 June 2024.
2024 has been a good year for Genesis, starting as it did with completion of the Leonora gold acquisition and concluding with
acceleration of the Company’s production growth strategy.
During the year itself, substantial progress was made in advancing the operations and strategic choices necessary to aspire to
the +400,000oz a year gold producer target set by the Board.
From an operational viewpoint, we have seen significant benefits from the work undertaken at the Gwalia underground mine
and the start of open pit mining at the nearby Admiral deposit, as shown by meeting the Company’s production and cost
guidance for FY24. We are confident that our ongoing programs to continue improving safety, efficiency and mine life will
deliver meaningful returns.
The past year also saw Genesis take a further step in its growth strategy with the acquisition of the remaining 20 per cent of
Dacian Gold. Securing this full ownership of Dacian was important given its capacity to play a key role in increasing Genesis’
total production in the Leonora region of Western Australia.
With the Dacian acquisition completed, the Company then acquired the Bruno-Lewis and Raeside gold projects from Kin
Mining. These were strategic purchases as Bruno-Lewis is able to be part feed for the Laverton Mill acquired as part of the
Dacian deal while Raeside can provide high-grade ore to our Leonora Mill.
The acquisitions referred to above combine to provide a strong, sustainable foundation on which Genesis can build a genuine
mid-tier ASX-listed gold producer with strong investor appeal. As part of our ongoing positioning of the Company to meet
global investor demand, we continue to drive our ESG credentials, with increased Board and employee diversity and work
underway for publication of our inaugural Sustainability Report.
At the time of writing, our strategy continues to build momentum, with studies underway designed to accelerate the Company’s
growth plan. This involves the possibility of bringing forward the increase in annual production to +325,000z, which is currently
targeted for 2029. This growth strategy is underpinned by a 3.3Moz Reserve, which sits within the wider resource of 15.2Moz.
Yours faithfully,
Anthony (Tony) Kiernan AM
Chair, Genesis Minerals Limited
Letter to Shareholders
L: Managing Director. Raleigh Finlayson
R: Chair, Anthony Kiernan
As I noted at the outset, the achievements of the past year have been excellent.
Our management team, staff and contractors have worked diligently to deliver
inventory and production increases, effective and successful asset acquisition and
a pipeline of growth opportunities. On behalf of the Board, I thank them for their
commitment to the Company’s success. I also thank our shareholders for their
strong support as we have laid the foundations for a high-quality ASX gold
producer offering scale and growth.
6
Strategic Outlook
ASPIRE 400
In March 2024 Genesis announced the “ASPIRE 400” strategic plan , clearly outlining the Company’s long-term
objectives to all stakeholders.
1
Plan on a page - ASPIRE
“ASPIRE 400” was uniquely constructed via a “bottom-up” approach. The process commenced in September 2023
with site-based workshops, initially focused on vision and core values. Other key inputs included a strategic review of
all assets and detailed analysis of industry and market trends.
ASPIRE 400 built from the shop floor
This work culminated in the official launch of “ASPIRE 400” in March 2024, with a Capital Markets Day in Sydney
immediately followed by a stakeholder site visit to Leonora and a global investor road show.
7
The 10-year outlook is 91% in Reserves and conservatively assumes no further exploration or M&A success. After
rising to 325,000 ounces in year 5 (FY29), production ranges from 320-350,000 ounces per annum in years 6-10
(FY30-34).
Genesis is now focused on accelerating production growth to 325,000 ounces per annum and reducing all-in-sustaining
costs ahead of the 5/10-year plan. Initiatives to expedite growth include the potential earlier re-start of the Laverton mill,
acceleration of underground development at Ulysses and ongoing early development works at Tower Hill.
Group production and cost outlook
10-YEAR PLAN
Also in March 2024, Genesis announced updated Group Resources of 15.2 million ounces and Group Reserves of 3.3
million ounces , 100% in the Leonora District. The Reserves support a 10-year group production outlook with total
production of 3 million ounces.
2
3
1. ASX announcement 21st March 2024 “Five-year Strategic Plan";
2. ASX announcement 21st March 2024 “Growth strategy underpinned by robust Reserves";
3. Refer to the PRODUCTION OUTLOOK (pages 11-18) in the ASX announcement 21st March 2024 “Growth strategy underpinned by robust Reserves" for the
material assumptions relating to the production target; Genesis confirms that all the material assumptions underpinning the production target in that announcement
continue to apply and have not materially changed. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty
that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.
ASPIRE 400: Low capital NPV boost
8
Anthony Kiernan AM LLB
Non-Executive Chair – appointed 1 October 2022
Mr Kiernan is a former solicitor with extensive experience in the management and operation of listed public companies. As both a
lawyer and general consultant, he has practiced and advised extensively in the fields of resources and business generally. He is a
Member of the Order of Australia.
Mr Kiernan has served as a Director of the following listed companies in the three years immediately before the end of the 2024
financial year:
Pilbara Minerals Limited (ASX:PLS) - July 2016 to January 2024
NT Minerals Limited (ASX:NTM) - April 2021 to March 2023
Dacian Gold Limited (ASX:DCN) - September 2022 to March 2023
Northern Star Resources (ASX:NST) - February 2021 to November 2021
Raleigh Finlayson AdMineSurvey, BSc (Mine & Eng Surveying), GradDipMinEng, GradCertAppFin
Managing Director – appointed 21 February 2022
Raleigh Finlayson is a Mining Engineer with over 20 years’ of technical and operational experience in multiple disciplines
including both underground and open pit operations. He was previously the Managing Director of Saracen Mineral Holdings and
Northern Star Resources.
During his 14 year tenure at Saracen, Mr Finlayson was initially the Chief Operating Officer responsible for the feasibility study
and development of Saracen’s first operating gold mine, the Carosue Dam Operations. He was promoted to the role of Managing
Director in 2013 and was responsible for the acquisition, feasibility study and development of Saracen’s second operating gold
mine, Thunderbox, and subsequently the purchase of 50% of the KCGM Superpit from Barrick Gold. Saracen grew from a market
cap of $53m in 2008 to $6.0bn in 2021 before merging with Northern Star.
Mr Finlayson has previously served as a Director of the following listed companies in the three years immediately before the end
of the 2024 financial year:
Northern Star Resources (ASX:NST) - February 2021 to July 2021
Our Board of Directors
Michael Bowen LLB, BJuris, BCom, CPA
Non-Executive Director – appointed 19 November 2021
Mr Bowen is an experienced corporate lawyer with deep knowledge of the Australian resources sector and the regulatory regimes
around mine development and operation.
Mr Bowen is highly regarded for his advisory expertise on a broad range of domestic and cross-border transactions including
mergers and acquisitions, capital raisings, re-constructions, risk management, due diligence and general commercial and
corporate law. He is currently Non-Executive Chair of Lotus Resources Limited (ASX:LOT) and Non-Executive Director of Emerald
Resources NL (ASX:EMR).
Mr Bowen has served as a Director of the following listed companies in the three years immediately before the end of the 2024
financial year:
Lotus Resources Limited (ASX:LOT) - February 2021 to present
Emerald Resources NL (ASX:EMR) - September 2022 to present
Omni Bridgeway Limited (ASX:OBL) - 2001 to November 2022
Gerard Kaczmarek B.Ec (Acc), CPA, AICD
Non-Executive Director – appointed 20 March 2018
Mr Kaczmarek has extensive experience predominantly in the resource sector, specialising in finance and company management
with several emerging and leading mid-tier Australian gold companies. Mr Kaczmarek was Chief Financial Officer and Company
Secretary for Saracen Mineral Holdings (ASX:SAR) from 2012 to 2016. He served as Chief Financial Officer and Company
Secretary at Troy Resources (ASX:TRY) from 1998 to 2008 and from 2017 to 2019. Earlier in his career, he held a range of
positions with the CRA / Rio Tinto group and was Chief Financial Officer and Company Secretary for a number of other mid-tier
and junior mining companies.
Mr Kaczmarek has served as a Director of the following listed companies in the three years immediately before the end of the
2024 financial year:
Dacian Gold Limited (ASX: DCN) - February 2023 to February 2024
*
*
9
KEY
Board of Directors
Exploration & Growth Committee
People & Culture Committee
Audit & Finance Committee
Denotes Committee Chair
*
Risk & Sustainability Committee
Michael Wilkes B.Eng (Mining), MBA
Non-Executive Director - appointed 1 October 2022
Mr Wilkes is a mining professional with substantial experience, mainly in gold and base metals specialising in project
development, construction, and operations. During his career he has been responsible for the successful greenfield development
of 4 major gold and copper mines, each creating substantial value for shareholders, local communities and Governments with
aggregate annual production of over 600koz of gold and 200kt of copper.
He is currently Non-Executive Chair of Kingston Resources Limited (ASX:KSN) and Andromeda Metals Limited (ASX:ADN). In the
last 10 years of his executive career he was President and CEO of Canadian and Australian listed OceanaGold Corporation
(ASX:OGC), during which time he was also a member of the Board Administration Committee for the World Gold Council and the
Advisory Board for the Sustainable Minerals Institute at the University of Queensland.
Mr Wilkes has served as a Director of the following listed companies in the three years immediately before the end of the 2024
financial year:
Kingston Resources Limited (ASX:KSN) - July 2018 to present
Andromeda Metals Limited (ASX:ADN) - April 2022 to present
Dacian Gold Limited (ASX:DCN) - September 2021 to September 2022
Jacqueline Murray B.Eng (Geological), MBA
Non-Executive Director – appointed 1 July 2023
Ms Murray is a Partner at Resource Capital Funds (RCF), a mining-focused, global alternative investment firm, and has
considerable hands-on experience within the mining industry.
She has experience in mining M&A and financing project development in various jurisdictions and commodities. Ms Murray
joined RCF in 2012 after working in business analysis and improvement roles with BHP Billiton. Prior to this she spent the early
years of her career in geotechnical engineering roles in underground and open pit operations within BHP Billiton and WMC
Resources.
Ms Murray has served as a Director of the following listed companies in the three years immediately before the end of the 2024
financial year:
Technology Metals Australia (ASX:TMT) - October 2021 to February 2023
Karen Lloyd PhD (Mining and Metallurgical Engineering), BSc Hons (Geology) MBA, FAusIMM
Non-Executive Director – appointed 1 April 2024
Dr Lloyd is a highly qualified mining engineer and geologist. Dr Lloyd’s previous roles include Chief Strategy Officer at Genmin
Limited, Associate Principal at SRK Consulting, Principal Corporate Advisory at Coffey Mining, Senior Investment Analyst at CITIC
Pacific Mining and Senior Geotechnical and Mine Planning Engineer at BHP Billiton.
She is currently a Non-Executive Director of publicly-unlisted Tungsten Metals Group and leads independent consultancy Jorvik
Resources.
Dr Lloyd has served as a Director of the following listed companies in the three years immediately before the end of the 2024
financial year:
Lightning Minerals Ltd (ASX:L1M) - April 2022 to September 2023
Geoff James
Company Secretary to 29 August 2024
Geoff James is a Chartered Accountant and
member of the Governance Institute. He is an
experienced finance professional with over 20
years’ experience in senior management roles.
Joanne Steer
Company Secretary from 29 August 2024
Jo holds degrees in Arts and Law (First Class
Honours) from the University of Western
Australia and is a Graduate of the Australian
Institute of Company Directors. Jo was
admitted to the Supreme Courts of Western
Australia and New South Wales in 2008 and to
the High Court of Australia in 2009.
*
*
10
Director Skills Matrix
Leadership & People
Management
Financial & Technology
Corporate Transactions
Strategic Planning, Business
Development & Commercial
Sustainability &
Environment
Risk Management
Investor Relations
People, Culture &
Remuneration
Metallurgy & Mineral
Processing
Health & Safety
Legal, Governance &
Compliance
Community & Government
Relations
Geology & Exploration
Targeting
Project Studies &
Engineering
Project Design &
Construction
Mining Operations &
Decommissioning
KEY
Expert
Well-developed
Comprehensive
Fair
Background
None
11
Raleigh Finlayson
Managing Director
Raleigh is a Mining Engineer with over 20 years of technical and operational experience in multiple disciplines including both
underground and open pit operations. He was previously the Managing Director of Saracen Mineral Holdings (ASX:SAR) and
Northern Star Resources (ASX:NST).
During his 14 year tenure at Saracen, Mr Finlayson was initially the Chief Operating Officer responsible for the feasibility study
and development of Saracen’s first operating gold mine, the Carosue Dam Operations. He was promoted to the role of Managing
Director in 2013 and was responsible for the acquisition, feasibility study and development of Saracen’s second operating gold
mine, Thunderbox, and subsequently the purchase of 50% of the KCGM Superpit from Barrick Gold.
Saracen grew from a market cap of $53m in 2008 to $6.0bn in 2021 before merging with Northern Star.
Leadership Team
Morgan Ball
Chief Financial Officer
Morgan has more than 30 years of Australian and international experience in the resources, logistics and finance industries and is
currently the CFO for Genesis Minerals Limited. He was formerly the CFO of ASX50 gold producer, Northern Star Resources
Limited (ASX: NST) and before that was the CFO of Saracen Mineral Holdings Limited (ASX: SAR), prior to its merger with
Northern Star.
From 2013 to 2016, Morgan was Managing Director of BCI Minerals Ltd (ASX: BCI) and has held senior financial and commercial
roles with WMC Resources, Brambles and P&O. He holds a Bachelor of Commerce degree from the University of Western
Australia and is a member of the Institute of Chartered Accountants and a Fellow of FINSIA (formerly the Securities Institute of
Australia).
Morgan was previously a Non-Executive Director of Dacian Gold (ASX:DCN) and Chalice Mining (ASX:CHN).
Matt Nixon
Chief Operating Officer
Matt is a qualified mining engineer with more than 14 years’ experience in operational, technical and executive roles in successful
underground and open pit operations across multiple commodities. He holds a Bachelor of Mining Engineering from the University
of NSW, a Western Australian First Class Mine Manager’s Certificate and is a graduate of the Australian Institute of Company
Directors.
He has previously held senior roles at numerous WA gold operations, including St Barbara’s (ASX: SBM) Gwalia and Northern
Star’s (ASX: NST) flagship Jundee Operations, as well as serving as Chief Executive of Labyrinth Resources (ASX:LRL) between
February 2021 and June 2023 where he led LRL through a transformational period of portfolio evaluation, administrative
rectification, project acquisition, Company rebranding and strategic reset.
Troy Irvin
Corporate Development Officer
Troy is a proven mining executive, specialising in business development, investor relations and corporate strategy. From 2015 to
2021 he was Corporate Development Officer at Saracen Mineral Holdings. Mr Irvin also spent a decade working in institutional
sales and research at a leading stockbroking firm. He brings deep relationships in the global capital markets, particularly with
funds investing in natural resources.
Troy has tertiary qualifications in Mining Engineering (WA School of Mines in Kalgoorlie) and Applied Finance and Investment.
Troy was previously a Non-Executive Director of Dacian Gold (ASX:DCN).
Kellie Randell
General Manager - People & Culture
Kellie has over 20 years of experience spanning across a range of operational, corporate and senior HR roles for global
organisations in Australia, Canada, North America, Papua New Guinea and Africa.
Kellie has led multi-disciplinary and globally diverse portfolios for some of the world’s largest resource companies including
Barrick Gold, Newmont, Rio Tinto, BHP and South32 and has a proven ability to lead across cultures. Her experience includes
strategic and operational HR management, talent and leadership development, organisational design and effectiveness, inclusion
and diversity, and HR capital projects for greenfields and brownfields projects.
Kellie holds a Post Graduate Diploma of Business (Human Resource Management) from Edith Cowan University, Western
Australia.
12
Andrew Francis
General Manager Technical Services
Andrew is a mining engineer from the Western Australia School of Mines with more than 15 years of Australian and international
experience in the resources sector and is currently the General Manager – Technical Services for Genesis Minerals Limited.
Andrew has extensive history in operational and project management, planning, evaluation, and startup across multiple disciplines
including underground, open pit and shaft sinking operations across multiple commodities.
Andrew was formerly the Chief Operating Officer of Bardoc Gold Limited (ASX: BDC) and prior to this he has held numerous
management, operational and technical roles with leading mining, contracting, and consulting companies including Northern Star
Resources Limited, Barrick Gold, Gold Fields Australia, MMG Limited, Entech and Byrnecut Mining Pty Ltd.
Paul Kline
General Manager - Leonora
Paul holds a Bachelor of Mining Engineering (Hons IIB) from the University of NSW, a Western Australian First Class Mine
Manager’s Certificate and is an accomplished Mining leader with over 15 years industry experience in a range of senior site
leadership roles.
Paul’s most recent roles have been with Nyrstar as General Manager, and with Newcrest at their Red Chris Mine as the Manager
Open Pit and Underground. Earlier in his career Paul has worked across a variety of operations in Australia, including Telfer, Cadia
and Granny Smith.
Zane Randell
General Manager - HSEC & Sustainability
Zane is a seasoned leader with over 25 years in the mining industry. Prior to joining Genesis as General Manager Health, Safety,
Environment, Community and Sustainability, he was the Group Manager, Health, Safety and Environment for Perenti (ASX: PRN)
before moving to their Contract Mining Division as Head of HSE and Training (Australia). He has previously held senior leadership
roles both in Australia and internationally in health and safety for Fortescue Metals Group (ASX: FMG), Rio Tinto (ASX: RIO),
Newcrest Mining (ASX: NML), and Barrick Gold (NYSE: GOLD).
Zane holds a Bachelor of Science (Geology) from the University of Western Australia and a Postgraduate Diploma of Occupational
Health and Safety from Curtin University.
Lee Stephens
General Manager - Laverton
Lee has over 30 years of technical and operational experience within the mining industry including both open pit and underground
operations. He held several senior management roles with Saracen Minerals including the General Manager of Operations role for
both Thunderbox and Carosue Dam Gold Mines.
In 2020 Lee managed the Saracen Minerals transition of ownership at KCGM. He previously held management positions with
several mining companies and contractors throughout Western Australia. Lee is the holder of a Western Australia Quarry
Managers Certificate of Competency and holds a Grade 1 Authorised Mine Surveyors Certificate of Competency.
Lee was previously a Non-Executive Director of Dacian Gold Limited (ASX:DCN).
13
Safety & Health
14
Tagging on at Gwalia Underground
TRIFR
20%
FY24: 8.3 FY23: 10.4
0.0
FY24: 0.0 FY23: 0.0
LTIFR
Our commitment to safety and health is unwavering. Focus areas include:
Prevention of fatalities and life-altering injuries through Critical Risk Management
Improving safe working practices through engaged collaboration between leaders and the
workforce
Enhancing well-being, productivity and continuous improvement through a psychologically-
safe workforce
In addition to regular safety meetings, workshops and training, our senior leaders invest
significantly in “field time”. This is an opportunity for Board and management to better
understand work practices, and provide coaching and support to improve safety and overall
performance.
In all forums, our culture fosters open communication, with our people empowered to share
their insights, concerns and ideas to improve.
Framework and Approach
Genesis’ takes a risk-based, practical approach to managing safety and health, underpinned by
our Health and Safety Policy.
In FY24 we developed the Plan-Do-Check-Act system, and in FY25 we will focus on refining
management standards, procedures and other supporting tools as we strive for continuous
improvement.
FY24 SAFETY PERFORMANCE
Genesis’ Health & Safety Management System
15
Mine Safety Management System
After considerable consultation with our workforce, our Mine Safety Management System (MSMS) is being utilised by all our
operations.
The MSMS is a comprehensive framework that integrates policies, systems, procedures, and plans to ensure Genesis
systematically achieves, monitors and improves the desired level of health and safety performance at our operations. The
MSMS is designed and established to ensure, as far as reasonably practicable, that the health and safety of our workers is at
the forefront of everything we do and our risks are managed in accordance with our Risk Management Standard and
Procedure.
Prevention of Fatalities and Life-Altering Injuries
Our primary focus remains on the prevention of fatalities and life-altering injuries, underscored by a robust approach to the
management of Principal Mining Hazards and other critical risks.
In FY24, we made significant strides in identifying and controlling critical risks across our operations given a core aspect of
developing our MSMS has been the engagement of our people in identifying and understanding our Principal Mining Hazards
and the development of appropriate Principal Mining Hazard Management Plans. We have identified a number of Principal
Mining Hazards, with their associated management plans detailing the approach for managing these risks to as low as
reasonably practicable. In accordance with our Risk Management Standard, the approach for managing these risks is always to
work from higher order controls, with preference being to eliminate risk altogether, and where this is not reasonably
practicable, all efforts will be made to ensure that controls are resilient and designed to increase the likelihood of successful
completion of all activities and reduce the risk of exposure to harm.
In FY25, we will further strengthen our approach to managing single and multiple fatality risks beyond our Principal Mining
Hazard program and existing approaches for managing critical risks. We will consolidate our existing process and implement a
standardised and robust Critical Risk Management program, aligned to industry best practice and International Council for
Mining and Metals guidelines.
Emergency Preparedness and Response
Genesis has robust emergency management and response processes, structured to address crisis and emergency
management at various levels. At the pinnacle of this system is the Crisis Management Team (CMT), overseen by our corporate
office. This team is responsible for strategic decision-making during crises, ensuring coordinated responses that protect our
employees, stakeholders, and assets. The CMT is prepared to handle large-scale emergencies that could impact our operations
and reputation, drawing on a comprehensive understanding of potential risks and response strategies.
At the site level, Emergency Management teams focus on localised response planning and execution. These teams are trained
and equipped to handle emergencies specific to the operational environment, such as mine incidents, environmental hazards,
and other operational disruptions. They ensure that emergency response plans are tailored to the unique characteristics of
each site, considering factors such as geographical location, operational scope, and local community impact.
Finally, at the incident scene level, our Emergency Response Teams (ERT) are the first responders to any emergencies. These
teams are composed of trained personnel skilled in various aspects of emergency response, including firefighting, medical aid,
road accident rescue, vertical rescue and hazardous material response. They work closely with local emergency services and
have access to state-of-the-art equipment and resources to manage incidents effectively. Regular drills and training exercises
ensure that these teams are prepared to act swiftly and efficiently, minimising potential harm to individuals and mitigating risks
to our operations.
16
In November, Genesis ERT members competed in the WA Chamber of Minerals and Energy Underground Emergency Response
Competition in Kalgoorlie. Out of 14 entrants, our newly-formed team achieved fifth place overall, second place for Team
Safety, third place for Search and Rescue and third place for Breathing Apparatus Skills. Matt Arnold, Gwalia Underground
Mining Manager, placed second in the Incident Management Team event. These results are a strong demonstration of our
commitment to excellence and application of our ASPIRE Core Values.
2023 Genesis CME Underground Mines Rescue Competition Team
17
Sustainability
18
Leonora Golden Gift Basketball Tournament
Sustainability
Sustainability is not just a commitment; it is a fundamental value ingrained in our DNA.
Our success is closely linked with all our stakeholders, and our Vision and Values reflect our dedication to
sustainability and our actions towards responsible and sustainable mining.
By integrating Sustainability throughout every aspect of our business, we strive to create enduring value for all our
stakeholders through dependable, safe, environmentally and socially responsible practices.
Aligned to our value of People First, the safety, health and wellbeing of our people is paramount and central to
everything we do. Similarly, our relationship with local communities, including the Traditional Owners of the lands
on which we operate, is a vital aspect of our strategic plan for sustainable growth throughout the region.
Throughout the year, and in our plans for the future, we place a heavy emphasis on social responsibility.
In FY25, we will continue to build our Sustainability foundations, including undertaking a materiality assessment
to inform our progressive ESG and Sustainability strategy, completing a gap assessment against the International
Financial Reporting Standards (IFRS) standards S1 and S2, and corresponding Australian Sustainability Reporting
Standards ASRS 1 and ASRS 2, and develop and alignment roadmap considering existing disclosure frameworks.
Additionally, Genesis will publish an inaugural Sustainability Report for FY25, preceding an ESG investor
roadshow.
At Genesis we strive for:
Compliance: We comply with all applicable environmental regulations, laws, and standards
relevant to our operations.
Pollution Prevention: We implement measures to prevent and minimise pollution, including
the proper management of waste materials and the reduction of emissions.
Resource Efficiency: We aim to minimise our environmental footprint by efficiently using
resources such as water, energy, and raw materials in our mining processes.
Biodiversity Conservation: We assess and manage potential impacts on biodiversity and
ecosystems in and around our mining sites. We work to protect and restore biodiversity
wherever feasible.
Rehabilitation and Closure: We plan for mine closure from the outset of operations,
implementing progressive rehabilitation programs to restore mined areas where possible
and promote post-mining land use that benefits local communities and the environment.
Continuous Improvement: We set environmental performance objectives, regularly monitor
our performance, and strive for continuous improvement through innovation and best
practices.
Environmental Compliance and Systems
During FY24, Genesis maintained strong environmental compliance across all operations, with
no significant environmental incidents, no material regulatory non-compliances, and no fines.
Our commitment to rigorous environmental management practices, a robust environmental
compliance program inclusive of internal and external assurance and ongoing employee training
contributed to this achievement.
Throughout the year, our primary environmental management focus was on identifying and
managing compliance obligations, particularly within our newly acquired operations. The
integration of our assets involved significant effort from a number of teams and external
stakeholders to align environmental management systems and practices across the business
into a united framework. This includes harmonising procedures, conducting comprehensive
assessments, and implementing necessary controls to ensure strict adherence to regulatory
requirements.
We continue to prioritise environmental sustainability and regulatory compliance across all
operations, and are seeing continous improvement in the application of standards and practices.
During the period, our Environmental team successfully consolidated environmental monitoring
data from all operations. This provides enhanced visibility of environmental data across the
organisation. With centralised data we now have improved capabilities for understanding
performance, identifying trends and transparent reporting.
FY24 ENVIRONMENTAL PERFORMANCE
Water Recycled
Significant Incidents
67%*
0
*through our processing facilities
FY23: 0
19
Water
The protection of water and minimising wastage is crucial. At the Leonora processing plant, significant efforts are directed
towards reusing water sourced from the dewatering of underground workings and return of water from the Tailings Storage
Facility. Throughout FY24, approximately 67% of the water utilised in our processing facilities was recycled.
Closure and Rehabilitation
In FY24, substantial efforts were dedicated to rehabilitating exploration sites, addressing both current disturbances and legacy
impacts inherited through our acquisitions. Throughout the reporting period, a total of 64 hectares were successfully
rehabilitated, underscoring our commitment to environmental stewardship and responsible land management practices in our
operations.
Tailings Management
During FY24, we undertook extensive geotechnical investigations of our operating Tailings Storage Facility (TSF) at Leonora to
strengthen our understanding of the facility, identify areas for improvement and provide independent assurance of our control
programs. This work will aid in refining future designs and the ongoing safety and integrity of our operations.
A key enhancement of our control systems for the Leonora TSF was the upgrading of existing instrumentation and installing
additional Vibrating Wire Piezometers. A significant advancement was the implementation of a remote monitoring system for
these piezometers, integrating all instruments into a cloud-based solution. This upgrade provides real-time access to critical
data, improving our ability to manage and respond to potential geotechnical challenges promptly.
These initiatives highlight Genesis’ proactive approach to TSF safety, reliability and stability. By employing advanced
geotechnical techniques and leading practice monitoring technologies, we ensure compliance with our environmental and
safety standards, maintain our operational integrity and provide opportunities to improve our current practices.
Additionally, approximately 42% of the tailings generated at Leonora during the year were re-mined and used as paste for
backfilling underground mining voids. This method stabilises underground workings and reduces the need for surface storage
facilities, minimising environmental impacts and enhancing operational efficiency.
The operations, surveillance, and maintenance procedures for the Leonora TSFs were also updated to document improvements
in practices that ensure the safe and efficient storage of tailings. This includes adhering to established design principles and
complying with legislative requirements and public expectations.
At the Laverton operation, currently in care and maintenance, efforts were focused on ensuring licencing and infrastructure
was being maintained and prepared for a restart of operations, whilst also conducting a number of closure studies, particularly
on growth media assessment and TSF cover modelling. These studies assessed soil conditions, nutrient levels, and suitability
for supporting post-mining vegetation. The goal was to develop effective strategies for restoring vegetation cover and
biodiversity. The TSF cover modelling involved designing engineered covers to prevent erosion, control water infiltration, and
minimise environmental impacts.
Environmental Approvals
For the successful development of the Tower Hill project, a comprehensive series of baseline environmental studies are being
undertaken or finalised. The studies cover a wide range of factors, including noise, dust, water, biodiversity, and materials
characterisation. These elements are essential for assessing the project's potential impact on the environment and local
community, and developing mitigation strategies as appropriate. The insights gained from these studies will also ensure the
project meets or exceeds all environmental and regulatory standards and contributes to the improvement of the local
environment and amenity.
20
In FY24, Genesis implemented the use of Unmanned Aerial Vehicles (UAVs) to collect water samples for the purpose of
surface water monitoring.
This innovative approach eliminates the need for personnel to physically access potentially hazardous areas near water
bodies and within the pit environment. UAVs provide a cost-effective and environmentally friendly alternative by reducing
the footprint and disturbance typically associated with traditional sampling methods, while maintaining the integrity and
reliability of the sampling process.
11
Case Study
21
FY24 SOCIAL PERFORMANCE
Stakeholder Engagement
Genesis is committed to fostering and maintaining positive, sustainable relationships with our local communities, and
understand that a positive and mutually beneficial relationship is critical to the success of our operations. We embrace our
social obligations and aspire to be a valued and supportive member of the communities in which we operate. We value
proactive engagement within our communities through regular consultation that is built on mutual respect and strong
communication.
Genesis is in the process of developing a Stakeholder Engagement Plan that will govern our interactions with all stakeholders in
the vicinity of our operations.
Community Relations
Genesis has strengthened community connections through ongoing consultation with the community, support of community
events such as the Golden Gift in Leonora, and through financial and in-kind donations for initiatives that align with our Core
Values as set out in our Sponsorships and Donations policy. An overview of various engagement initiatives is summarised
below.
Initiatives
544%
80%
Community Investment
Local Suppliers
FY24: A$354k FY23: $55k
Shooting Stars
Shooting Stars is a school-based engagement program for Aboriginal and Torres Strait Islander girls and young women which
has been operating in Leonora since 2018. We are proud to be a major partner of the program which offers advocacy, support,
opportunities and the tools and resources that open the door to self-determination, empowering each young woman to reach
her full potential.
Our Leonora employees take part in community exhibition games with the girls and enjoy seeing how they are developing not
only on the netball court, but within themselves.
22
NAIDOC Week 2024 Netball Tournament
FY23: N/A
Warnkarunku Day
Meaning “good health, good healing”, Warnkarunku was the name for the holistic experience for local children focusing on
various aspects of health, from mental wellbeing to personal hygiene, empowering youth with essential knowledge to help
address gaps in Indigenous health.
100 students from Leonora, Laverton and Menzies attended the Leonora Community Resource Centre’s day in May where they
explored many topics including the impact of sugar on the body, the importance of nutritious food choices and exercise, the
principles of good hygiene, techniques for putting an unconscious patient into the lateral position, the benefits of mindfulness,
ear health, and the importance of making good financial choices.
With Sodexo’s assistance, we had a great day out supporting our community, discussing healthy eating whilst getting kids
involved making fruit snacks.
Hygiene Appeal
Every child deserves access to essential hygiene products to thrive both academically and personally. Following a request from
the school, we reached out to our employees to support a Hygiene Appeal. Thanks to their generous donations plus those from
Swick Mining Services, we were able to make up over 100 bags of supplies, ensuring every student at Leonora District High
School would receive a hygiene kit to take home.
Laverton School Mystery Night
Genesis had the privilege of being invited to attend Laverton School's annual High School Mystery Night. This special night
celebrates the kids' commitment to attendance and improved grades.
We were so pleased to donate some new bikes as prizes to be given out on the night and join in the fun as well!
Leonora Golden Gift
In June, we were the Platinum sponsor of the Leonora Golden Gift event which has been running since 2003. An initiative of the
Shire of Leonora, it’s primarily an athletic carnival, but includes free community event by a free concert, bowls tournament,
fireworks, kid's entertainment, market stalls and other street performances.
Blazers Basketball
Throughout FY24, Genesis actively participated in weekly training sessions and matches with the Leonora basketball team, the
Blazers. These sessions provide valuable practice opportunities for the local team, with Genesis also providing meals and other
support. This dedication culminated in the Blazers' success at regional competitions, with Leonora proudly hosting its first
major basketball tournament in 40 years.
Go Blazers!
Christmas Kindness Appeal
A record amount of fundraising was donated by our staff this year as well as a very generous contribution from our contractor
Big Yellow Mining Pty Ltd.
The funds were allocated to:
A food drive for Foodbank, providing meals for those struggling to put food on the table.
A Santa sack full of toys, school supplies and activities for children at the Mount Margaret Remote Community
Hampers full of goodies for the elderly in Leonora
23
Indigenous Relations
Our operations are all subject to Native Title Determinations or Claims, and we recognise the relevant traditional owners over
the lands in which we work. Indigenous people are considered to be key stakeholders and we are dedicated to fostering a deep
understanding and appreciation of indigenous culture, traditions, and heritage within our workplace.
Indigenous Engagement
We are focused on developing and maintaining strong relationships with the local traditional owners and commit to engaging
with all relevant Indigenous people whose land we operate on. We are in the process of developing an Indigenous Engagement
Plan to define opportunities and methods for meaningful engagement and consultation with Indigenous peoples, planned for
roll-out during FY25.
Heritage Management
We acknowledge the physical and spiritual heritage that is located over the lands in which we operate and are focused on
protecting indigenous and cultural heritage within our operations. Genesis has implemented the following processes to support
the protection of heritage sites:
review all planned activities to identify areas that would benefit from further consultation with the relevant native title
parties, and/or where a planned activity may impact a heritage site;
conduct heritage surveys and desktop studies as required to identify areas of cultural significance – this data is captured in
our company-wide spatial datasets;
obtain final sign off from our cross-functional teams for planned activities and new disturbance as governed by our Surface
Disturbance Permit process – this includes review and sign off by the Land and Environmental departments; and
consultation with the Native Title parties and other relevant knowledge holders (as required) where proposed activities
impact on a heritage site in order to determine if the activity will proceed.
“These games have been a fantastic addition to our local basketball program. We are appreciating the enthusiasm, the
competitiveness and great energy provided by these wonderful workers from Genesis. It gives our kids invaluable competition
and games experience, and it gives opportunity for community and family to come and see a fantastic brand of basketball
being played. It also gives these FIFO workers a chance to really engage with the community, develop relationships, help their
own physical and mental health as well as be a part of something with strong purpose.”
-Rene, Blazers Coach
24
We are working towards finalising a Cultural Heritage Management Plan for our Leonora operations which will outline measures
to be taken before, during, and after an activity is undertaken in order to manage and protect Aboriginal cultural heritage.
Cultural Awareness Training
We are committed to improving our workforce’s understanding of Indigenous culture and heritage. In FY24, Genesis took a
significant step forward by committing to and implementing comprehensive cultural awareness training for our workforce at
Leonora. These training programs were designed to equip our employees with the essential knowledge and sensitivity needed
to cultivate strong, respectful, and collaborative relationships with indigenous communities. Our ongoing commitment to
cultural education underscores our respect for indigenous heritage and our determination to support and engage with the
communities we work alongside.
Agreement Making
Genesis collaborates with the traditional owners of the Darlot, Nyalpa Pirniku, Marlinyu Ghoorlie, and Kakarra Part A Native Title
parties, and we operate under various Heritage Protection Agreements which govern our heritage management processes.
We have recently signed a Negotiation Protocol with Darlot and are working towards finalising a Mining Agreement which will
govern our exploration and mining activities, monitoring and reporting requirements, and indigenous community support.
Indigenous Businesses and Employment
Genesis recognises the importance of engaging Indigenous Businesses in the procurement process to promote sustained
benefits for the Indigenous peoples and their communities. This includes encouraging entrepreneurship and providing
opportunities to develop skills to establish and manage a business. We have developed an Indigenous Procurement
Engagement plan to effectively engage Indigenous businesses which focusses on supporting suppliers and businesses within
the regions in which we operate.
We are also focused on increasing indigenous employment and training opportunities for local traditional owners and broader
Indigenous peoples.
In FY25, we will continue to focus on community engagement. Other focus areas include undertaking a materiality assessment
to inform our progressive ESG and Sustainability strategy, completing a gap assessment against the International Financial
Reporting Standards (IFRS) standards S1 and S2, and corresponding Australian Sustainability Reporting Standards ASRS 1 and
ASRS 2, and developing an alignment roadmap considering existing disclosure frameworks. Additionally, in FY25 Genesis will
publish an inaugural Sustainability Report, preceding an ESG investor roadshow.
Governance
We believe that corporate governance is essential to sustainable value creation. As such, Genesis is committed to maintaining
high standards in all aspects of reporting and corporate governance.
Our commitment to good governance practices, operating ethically and with integrity is guided by our policies which are
available to all internal and external stakeholders on our website (www.genesisminerals.com.au).
Genesis’ 2024 Corporate Governance Statement, which provides detailed information about governance, and Appendix 4G
which sets out the Company’s compliance with the recommendations in the fourth edition of the ASX Corporate Governance
Council’s Principles and Recommendations are both available on the corporate governance section of our website.
25
People First
26
Geology team members at Gwalia Core Shed
FY24 saw the foundations of our People First Framework come together which encapsulates
how we interact with each other, with our stakeholders, and within our community. This
Framework, guided by our ASPIRE core values, will underpin existing and future policies, ways
of working, systems and programs, with a strong ethical foundation that sets out our obligations
and responsibilities.
Our focus of developing and enabling our talent continued across the organisation, with
succession planning of key leadership roles and preparing future talent critical to our ongoing
success.
27
The maturity of our rewards framework progressed, to remain externally competitive and reflect
our Company growth whilst ensuring alignment of incentives with Shareholder Returns. .
Encouragingly we have over 85% of our employees as Genesis shareholders.
Genesis supports and promotes a working environment which values equity and diversity with
various initiatives implemented across the organisation during the year. Our initiatives include
targeted recruitment campaigns, the introduction of apprentice and trainee programs and a
committed support network.
Furthermore, we welcomed a diverse and eager group of graduates, apprentices, students and
trainees to the Genesis team. We look forward to supporting their journey and that of all our
employees with the ability to offer a full range of career opportunities within the business and
locally within Western Australia.
Board: 29%
FY23: 0%
Employees: 20%
FY23: 27.5%
FY23: 0.3%
Female
representation
Indigenous
representation
2.4%
Personnel
Local Employees
Leonora & Laverton:
Kalgoorlie:
Staff: 331
Contractors: 588
3%
2.4%
Review of Operations
28
Production
501%
FY24: 134.5koz FY23: 22.3koz
Genesis delivered a strong first year of operational performance in FY24, achieving midpoint of
guidance with 134,451oz of gold produced at an all-in sustaining cost (AISC) of A$2,356/oz,
despite investing A$101.3 million in genuine growth capital and exploration across our Leonora
and Laverton operational hubs. Significant improvements in safety were achieved across all
operations in both measurable performance metrics and leading indicators.
This excellent result was underpinned by the Gwalia underground mine that was acquired in
June 2023 and supported by two new operations established during the year at Leonora
Operations. Admiral open pit commenced in August 2023, followed by the Ulysses underground
in March 2024, both located approximately 40km south of the Gwalia processing facility, with
commercial production declared at Admiral in May 2024.
Total mined ore for the full year was 1,279,322t, sourced from Gwalia and Admiral, at a grade of
3.56g/t for 146,489oz of contained gold. Aligned with Genesis’ strategy to future-proof the
business, ore stockpiles increased from 5,000t at the beginning of the year to over 300,000t at
30 June 2024.
Production
The Leonora mill, located at Gwalia, processed 1,039,269t of Genesis ore from Gwalia and
Admiral at a grade of 4.24g/t and a recovery of 95.0% during FY24 for a total of 134,451oz.
To satisfy and close out legacy toll milling and ore purchase obligations inherited by Genesis via
acquisition of the Leonora assets, an additional 167,169t was processed during the year. This
resulted in a total of 1,039,269t milled for the full year, with monthly performance during the
June quarter of FY24 demonstrating a 1.35mtpa milling rate, achieved well ahead of the Five-
Year Plan forecast.
Upon taking ownership of the Leonora Operations, Genesis immediately commenced a
disciplined capital allocation process to mill infrastructure, focussing on overdue maintenance of
leach tanks and repair of concrete and steel framework.
Ulysses Portal
OPERATIONS PERFORMANCE
29
Cashflow from Operating Activities
A$136.2M
AISC
$2,356/oz
Admiral Open Pit Mine
FY23: (A$37.6M)
Leonora
30
Genesis Mining Services at Admiral Operations
Leonora Assets
Gwalia Operations
The Gwalia underground mine delivered 723,128 ore tonnes at 5.40g/t for total contained ounces
of 125,612. Stoping focus was placed on the high grade “Heart of Gold” sequence of the South
West Branch lode between the 1700 and 1820 levels, which was a key element of Genesis’
strategy to implement a ‘quality over quantity’ approach to operation of the mine.
A reduction in the size of the trucking fleet from 14 to 11 and the jumbo fleet from 5 to 2 during
the year not only improved the cost profile but also increased overall efficiency.
Total mine development during FY24 amounted to 3,494m, with 48% of advance attributed to
capital and 52% to operating. The Hoover decline advanced to below the 1900 level, 1.9km
below surface.
Admiral Operations
The Admiral open pit mine was commenced in August 2023 following the mobilisation of the
maiden Genesis Mining Services fleet and personnel in parallel with the construction and
commissioning of mine infrastructure, including workshop and administration buildings.
During FY24, Admiral delivered 556,195 ore tonnes at a grade of 1.17g/t for total contained
ounces of 20,876. Commercial production was announced in May 2024 and the pit advanced to
a depth of 40m by the end of the year, with 276,772t processed at the Leonora Operations mill
and a closing stockpile of approximately 280,000t.
Ulysses Operations
During FY24 final works on the Ulysses West open pit were completed, paving the way for
successful establishment of the portal in March 2024 for Genesis’ newest underground mine. All
site infrastructure was established and a total of 639m of capital development advance was
achieved up to 30 June 2024, 55% ahead of the schedule articulated in Genesis’ Five-Year Plan.
As Ulysses moves toward ore production in FY25, Genesis will be able to deliver its strategy of
filling the Leonora processing facility with high grade ore for the first time since FY15.
31
Laverton
32
Laverton Mill
The 3.0Mtpa Laverton Mill was initially commissioned (by Dacian Gold) in March 2018 and
includes a SAG grinding, ball milling and pebble crushing comminution circuit followed by a
conventional gravity and CIL process. The mill has been on “warm” care and maintenance since
April 2023 when Dacian made the decision to cease processing.
Care and maintenance activities continued at Laverton to preserve the processing plant and
associated facilities in a state of readiness for a pending decision on recommencement of
operations. Maintaining the site in a powered state at all times has resulted in a project schedule
that regularly rotates and tests all electrical and mechanical equipment. Required statutory
inspections and repairs have been carried out during the year on all required equipment and
infrastructure.
The search for a processing water supply carried out over the previous 12 months has identified
the new Lake Carey borefield to the north of the processing plant. Environmental and
engineering studies have been progressed with the construction of Stage 1 planned for H1
FY25. The construction of this infrastructure will integrate the current Mt Morgans borefield, the
new Lake Carey borefield and a water access agreement with Poseidon Nickel (ASX:POS) for the
South Windarra pit. The finalisation of approvals and engineering will provide a long-term water
solution for the restart of the Laverton operations.
The Bruno-Lewis Project was acquired from Kin Mining (ASX:KIN) as part of the Cardinia West
and Raeside deal completed during FY24. 140koz of Bruno-Lewis Open Pit Ore Reserves was
declared in March 2024.
Jupiter mining studies have been progressed during FY24 resulting in an increased Reserve of
100koz released in March. Planning is underway for a recommencement of mining at Jupiter in
FY25 to support the restart of milling.
Genesis’ Laverton Operation is centred around the Laverton Mill and has several ore sources
including (in the near term):
• Ore stockpiles adjacent to the Mill;
• Jupiter Open Pit; and
• Bruno-Lewis Open Pit.
Reflecting the synergies associated with the Genesis regional strategy, ore from the Admiral
Open Pit and the Tower Hill Open pit may also be processed through the Laverton Mill.
Laverton Assets
33
Genesis Mining Services
34
Genesis Mining Services fleet at Admiral Open Pit Mine
Genesis Mining Services (GMS) is the Company’s “internal mining contractor”. GMS is an
integral contributor to the delivery of the Company’s 5/10 Year Plan and will provide operational
flexibility and synergies, consistency of delivery, lower operating costs and lower “ownership
costs”.
During the year, Genesis continued to “bed down” its GMS Division including:
Finalising its corporate and site leadership team;
Establishment of its first Open Pit fleet;
Employment of Operators to “move with this fleet”;
Introduction of a Fleet Management System and Operational Reporting Systems;
Policy development and finalisation; and
Roll out of operational procedures and establishment of risk management tools.
The GMS Division commenced operations at the Admiral Open Pit project during FY24. The
Admiral fleet is comprised of 2 excavators, 5 dump trucks, 1 grader, 1 dozer, 1 water cart and
miscellaneous support equipment.
During the year the planning and purchase of the second fleet for the commencement of Hub
Open Pit was finalised. Forecast for delivery in Q1 FY25, the makeup of the second fleet is
identical to the current Admiral fleet.
Employment of additional employees to carry out the Hub mining activities was well advanced at
the end of FY24.
35
Development Projects
36
Clearing at Hub
HUB
The Hub Open Pit development commenced in Q4 FY24. The diversion of the Nambi Rd during
this period allows the commencement of mining in FY25 to proceed. Site infrastructure
establishment was also commenced during the same period with the office, workshop and pit
dewatering work underway. Mining is scheduled to begin in Q1 FY25 with ore delivered to the
Gwalia processing plant in Q2 FY25.
In Q4 of FY24, the A$7.5m acquisition of the Leonora Lodge was completed earlier than planned.
Leonora Lodge will provide accommodation for the workforce and facilitate compression of the
Tower Hill construction timeframe.
The decision to bring the acquisition forward was motivated by:
Positive implications for the Tower Hill development timeframe stemming from the early
advice from the EPA to not assess the project; and
Strongcash position of Genesis heading into June 2024
Further growth in the 1.0Moz Reserve is anticipated given significant extensional upside. Tower
Hill has only been drill-tested to ~450m depth despite being immediately adjacent to the Gwalia
mine (>2km depth). A second stage of drilling is planned to infill plus test high grade shoot
extensions and parallel structures in this highly fertile system.
37
“the EPA determined to not assess that proposal on the basis the matters could be
largely managed through secondary approvals”
(ie Tower Hill can be managed via the standard WA mining approval process)
TOWER HILL
Tower Hill is a shallow high-grade deposit located just over 1km north of the Gwalia mine with a
Reserve estimate of 15.4Mt @ 2.0g/t for 1.0Moz, located in one planned open pit. We are
continuing to advance the project, aiming to commence development in FY27 and deliver first
ore in FY28.
Achievements through FY24 included:
Progression of community and stakeholder engagement, including stakeholder impact
assessments, community briefings and Shire meetings
Strengthening of Genesis’ important relationship with the Darlot Native Title group, through
collaborative on the ground discussions
Early advice received from the Environmental Protection Authority (EPA, WA Government):
Dewatering of 660 million litres from the pit
Advancement of technical work for development approvals, including mine design,
geotechnical, noise, dust, and blast impact assessments, hydrology and hydrogeology
studies
Progression of approvals for termination of the rail line to the south of the planned pit with
significant positive engagement with the State Government and several other stakeholders
including Arc Infrastructure
Geology & Exploration
38
Geology team members at Gwalia Core Shed
*West Lode (WL) - Location of results up-dip of Enlarged Area; 14m@15.0g/t and 6m @8.4g/t
^Main Lode (ML) - Location of results up-dip of Enlarged Area; 3m@46.7g/t and 4m @13.8g/t and 3m@41.8g/t
LEONORA
The Leonora Gold Project is located within the prolific Leonora District of the northern goldfields,
Western Australia. There is significant opportunity for growth through the extension of known
Resources and new discoveries with Resources remaining open, along strike and at depth.
During the year a significant program of target ranking across the portfolio was undertaken post
the consolidation of the tenure package. From this, the highest priority targets were identified to
be drilled through the year.
Gwalia long section highlighting drill results
Gwalia
Drilling at Gwalia has focused on building confidence in the existing Resource at Gwalia primarily
within the Heart of Gold. Significant results from this drilling include: 6.7m @ 329g/t, 15.0m @
12.5g/t and 10.2m @ 18.7g/t.
Drilling continues to show significant results from within South-West Branch as well as the other
subsidiary lodes.
Admiral
Grade control drilling occurred at Admiral on a campaign basis as mining progressed deeper
within the pit. Significant results include: 10m @ 6.8g/t and 8.0m @ 3.4g/t.
Drilling within the greater Admiral area was limited during the year with focus being placed on
the mining areas however drilling is planned to be completed to progress the other deposits in
the area.
Puzzle
A RC program was completed at Puzzle North to close out open areas of the Resource as well as
infill gaps. Results were incorporated into a Resource model to be used for mine planning
purposes.
Ulysses
A small Aircore program was carried out across the greater Ulysses area targeting areas of
potential. Results received further refined the geological understanding and will be used to guide
future exploration.
39
Tower Hill long section highlighting drill results
Tower Hill
A phase of diamond drilling was conducted at Tower Hill to test extensions along the high grade shoots. Significant results
include: 54m @ 1.9g/t, 40m @ 2.5g/t and 29m @ 2.7g/t.
Tower Hill is still open down dip and further drilling is planned to extend the deposit as well as testing for parallel structures.
LAVERTON
Our Laverton tenure is located within the prolific Laverton District of the northern goldfields, Western Australia. Significant
growth opportunities remain at the Laverton Gold Project through the extension of known Resources and new discoveries with
Resources remaining open, along strike and at depth.
Jupiter
During the year no drilling was undertaken at Jupiter however a large amount of technical work was completed to gain a better
understanding of the deposit and its growth potential. One outcome of this work was the identification of shallow dipping, high
grade lodes below the current pit.
Jupiter Long Section
40
Westralia
No on ground exploration was undertaken on the Westralia complex during the year however a technical review of the geology
and mineralisation was undertaken and has identified target areas to be followed up.
Bruno-Lewis
Since acquiring the Bruno-Lewis deposits from KIN Mining in February 2024 work has been done on refining the Resource
model as well as a phase of drilling. Results received have further identified both supergene mineralisation as well as primary
hosting structures that will be used to refine the mine plan.
Redcliffe (Hub)
No on ground exploration work has been done at the Redcliffe deposits during the year however geological efforts have been
focused on readying the high grade Hub deposit for mining.
Hub Long Section
Bardoc Gold Project
Bardoc is situated between Kalgoorlie and Menzies and contains over 3.0Moz of Resource. No on ground exploration was
conducted during the year however technical review of all available data was undertaken to ensure a full understanding of the
geological setting and mineralisation.
41
Business Development &
Investor Relations
42
Examining Admiral Core Samples on Investor Day - March 2024
Business Development
Business development activities in FY24 were consistent with Genesis’ “ASPIRE 400” strategic
plan, with the key tenet being to up-tier the portfolio.
FY24 highlights included:
Acquisition of 100% of Dacian - On 7th December 2023, Genesis announced that it had
acquired 100% of Dacian, following completion of the compulsory acquisition process.
Dacian’s Laverton Gold Project comprises a portfolio of open pit and underground Mineral
Resources, a 2.9Mtpa conventional carbon-in-leach processing plant (currently on care and
maintenance), and highly prospective exploration tenure.
Acquisition of Bruno-Lewis / Raeside - On 14th December 2023, Genesis announced it has
entered into a binding agreement to acquire the Bruno-Lewis and Raeside gold projects
from KIN Mining (ASX: KIN) for consideration of A$53.5m (A$15.0m cash plus 21,917,532
new Genesis shares). Bruno Lewis and Raeside offer scale, shallow mineralisation, low strip
ratios and significant quantities of oxide ore that will enable high milling productivity.
Following an intense period of corporate activity, including completion of the acquisition of St
Barbara’s (ASX:SBM) Leonora Assets at the end of FY23, Genesis is focused on accelerated
organic growth.
Investor Relations
During the year Genesis presented at several conferences and conducted road shows to existing
and prospective investors, analysts and stockbrokers. Events included:
Diggers and Dealers Conference, Kalgoorlie, August 2023
Denver Gold Forum, Colorado, September 2023
UBS Australasia Conference, Sydney, November 2023
BMO Global Metals, Mining and Critical Minerals Conference, Florida, February 2024
Euroz Rottnest Conference, Rottnest Island, March 2024
Macquarie Australia Conference, Sydney, May 2024
Canaccord Global Metals and Mining Conference, California, May 2024
Various investor mine site visits, Leonora and Laverton
Various investor presentations in Australia and globally
Each presentation is available on the ASX www.asx.com.au and the Company website
www.genesisminerals.com.au.
Genesis’ Business Development Strategy
43
Financial Review
44
Gwalia Processing Plant
Overview
The table below sets out the financial performance of the Group for the 12 months ended 30
June 2024. Following the implementation of the Company’s Leonora consolidation strategy, the
large variances between the 30 June 2024 and 30 June 2023 reporting periods primarily relate
to reporting the Leonora Operations following the completion of the acquisition of the St Barbara
Limited Leonora Assets on 30 June 2023, as well as (to a lesser extent) the ramping down of
the Laverton Operations (previously Dacian Gold Limited) which were placed in temporary Care
and Maintenance in late FY23.
45
Income Statement
Revenue for the year ended 30 June 2024 increased by 470% to $438.6 million (30 June 2023: $77.0 million). The increase in
revenue was mainly attributable to higher gold production of 134,451 ounces (30 June 2023: 22,378 ounces) following
completion of the acquisition of the St Barbara Leonora Assets on 30 June 2023. In addition, total gold sold equalled 135,341
ounces (30 June 2023: 29,738 ounces) and the average gold price achieved was $3,164/oz (30 June 2023: $2,588/oz).
The Group achieved a statutory net profit of $82.8 million for the year (30 June 2023: Net Loss ($117.2 million)) reflecting the
enlarged business operations for the period compared to last year. The tax benefit of $44.5 million for the year is reflective of
the recognition of previously unrecognised tax losses.
Balance Sheet
The net assets recognised in the 30 June 2023 financial statements in relation to the acquisition of the St Barbara Leonora
assets (completed on 30 June 2023) were based on a provisional assessment of their fair value in accordance with AASB 3. In
line with the Accounting Standard, during FY24 these fair values were revised, and the June 2023 comparative information has
been restated to reflect the revised final amounts.
Total assets increased by 19% during the year ended 30 June 2024 to $1,209.0 million (30 June 2023: $1,018.4 million). This
increase was primarily driven by ongoing development at the Gwalia and Ulysses underground mines and the Admiral open pit
mine. In addition, Genesis purchased (via an asset finance facility) the first Genesis Mining Services open pit fleet, now
operating at Admiral, as well as commencing early development works at the potential Tower Hill open pit mine and initial
preparation and work on re-starting the Laverton Mill.
46
Total liabilities for the Group increased to $217.6 million (30 June 2023: $166.6 million), primarily relating to the financing of
the acquisition of the Genesis Mining Services fleet. Borrowings (current and non-current) increased to $45.2 million (30 June
2023: $11.3 million) accordingly. The Group had no bank debt at the end of FY24.
Cashflow
Total cash outflow for the period amounted to $10.2 million (FY23: $165.4 million inflow).
Cash inflow from operating activities increased by $173.8 million to $136.2 million (FY23: outflow of $37.6 million) primarily
attributable to higher gold production of 134,451 ounces (FY23: 22,378 ounces) following completion of the acquisition of the
St Barbara Leonora Assets on 30 June 2023.
Cash outflow from investing decreased by $183.2 million to $177.1 million (FY23: outflow of $360.3 million) primarily due to
the acquisition of the St Barbara Leonora assets completed in FY23. FY24 cash outflow from investing is mainly in relation to
the ongoing development at the Gwalia and Ulysses underground mines and the Admiral open pit mine, establishment of the
Genesis Mining Services open pit fleet, early development works at Tower Hill and progress on the Laverton Mill restart.
Financing cash flows for the period resulted in a net inflow of $30.6 million (FY23: inflow of $563.3 million). Net proceeds from
the issue of share capital of $10.6 million (following the exercise of legacy options) were received in addition to $24.4 million of
proceeds relating to the financing of the Genesis Mining Services fleet, partially offset by $4.4 million of lease repayments.
47
Risk Management
48
Emergency Response Team exercise
In FY24, Genesis developed and implemented key components of our Risk Management
framework, including a comprehensive Risk Management Policy, a Risk Management Standard,
and detailed Risk Management and Management of Change Procedures. These tools are
designed to enable our people to systematically identify, assess, and manage risks across all
areas and functions withing the organisation.
A dedicated Board sub-committee (Risk and Sustainability Committee) oversees this framework,
ensuring a strategic approach to risk management that aligns with our ASPIRE Core Values and
corporate governance principles. The Committee plays a pivotal role in monitoring, reviewing,
and guiding the company's risk management policies and practices, ensuring that risk
management is integrated into the fabric of our business operations.
A notable achievement in FY24 has been the development of a comprehensive, consolidated risk
register for the entire newly consolidated business. With assets acquired from multiple
organisations, risk and control information was previously held in many different formats.
Workshops were held with teams across the business which enabled a comprehensive register
of risks and controls to be established. A final workshop was facilitated with the Executive Team
where the top risks and existing control mechanisms were reviewed, with additional actions
identified to further improve the risk controls. Finally, these top business risks and controls were
presented to the Board of Directors.
An independent review of our material safety risks was commissioned during the year. The
findings confirmed the appropriateness of the approach Genesis is taking to manage our safety
and health risks, including validation and prioritisation of further improvements already identified
in our plans.
Our Risk Management Policy emphasises the importance of developing a culture that empowers
employees to actively engage in identifying, assessing, and managing risks as an integral part of
the decision-making process. This cultural commitment is supported by a robust risk
management system that involves the participation of all employees and contractors. We provide
comprehensive information, instruction, training, and supervision to all workers, equipping them
with the skills needed to identify and manage risks effectively.
To ensure our risk management practices remain current and effective, the Board and
management routinely review all occupational, operational, strategic, and emerging risks. With
the addition of our Emergency and Crisis Management systems across the business, this further
enhances our preparedness and response capabilities.
Genesis is committed to complying with all applicable legislation, regulations, and codes of
practice relevant to the industry. This commitment extends to the transparent communication of
our Risk Management Policy to all stakeholders. By fostering a transparent and inclusive
approach, we aim to ensure the safety and well-being of every person associated with our
company activities, responsible stewardship of the local environment, and maintaining the
integrity and sustainability of our business operations in the interest of positive benefit for all our
stakeholders.
49
Admiral Open Pit Mine
Measured
Indicated
Inferred
Total
Deposit
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Leonora
Gwalia
4,100
4.0
520
24,000
4.4
3,400
4,500
4.6
680
33,000
4.4
4,600
Harbour Lights
–
–
–
13,000
1.7
670
1,200
2.0
73
14,000
1.7
750
Tower Hill
–
–
–
18,000
2.5
1,400
1,400
3.0
130
19,000
2.5
1,500
Ulysses
1,600
3.8
190
4,100
3.5
460
2,200
2.9
210
7,900
3.4
850
Admiral Group
–
–
–
6,500
1.4
300
8,400
1.0
280
15,000
1.2
580
Orient Well Group
–
–
–
3,700
1.1
130
4,300
1.1
160
8,000
1.1
290
Puzzle Group
–
–
–
7,000
1.1
240
2,000
0.9
58
9,000
1.0
300
Laterite Deposits
–
–
–
570
0.7
12
200
0.7
4
770
0.7
17
Total Leonora
5,600
3.9
710
76,000
2.7
6,600
24,000
2.0
1,600
110,000
2.6
8,900
Laverton
Cardinia West Group
770
1.2
31
8,000
1.1
270
3,700
0.9
100
13,000
1.0
410
Raeside Group
–
–
–
2,200
2.0
140
970
2.1
64
3,100
2.0
200
Westralia Group
310
4.5
45
3,700
4.0
470
6,400
2.9
590
10,000
3.3
1,100
Jupiter Group
620
1.2
23
11,000
1.0
370
13,000
1.1
440
24,000
1.1
830
Mt Marven OP
–
–
–
1,200
1.2
45
340
1.2
13
1,500
1.2
58
Maxwells OP
–
–
–
170
0.9
5
500
0.8
12
660
0.8
17
Stockpiles
–
–
–
–
–
–
3,200
0.4
41
3,200
0.4
41
Total Laverton
1,700
1.8
99
26,000
1.5
1,300
28,000
1.4
1,300
55,000
1.5
2,700
Bardoc
Aphrodite
–
–
–
18,000
2.0
1,200
7,900
2.0
500
26,000
2.0
1,700
Zoroastrian
–
–
–
4,500
2.4
350
2,500
2.2
180
7,000
2.3
520
Excelsior
–
–
–
9,600
1.0
310
1,700
0.8
41
11,000
1.0
350
Bardoc Satellite OP
150
2.3
11
4,300
1.6
220
5,000
1.6
250
9,400
1.6
480
Total Bardoc
150
2.3
11
36,000
1.8
2,000
17,000
1.8
970
53,000
1.8
3,000
Redcliffe
GTS
–
–
–
930
1.9
56
1,400
1.2
51
2,300
1.4
110
Hub
160
4.6
24
660
3.9
82
850
2.3
62
1,700
3.1
170
Nambi
–
–
–
720
2.7
62
850
2.8
76
1,600
2.7
140
Redcliffe Other
–
–
–
–
–
–
7,200
1.1
260
7,200
1.1
260
Total Redcliffe
160
4.6
24
2,300
2.7
200
10,000
1.4
450
13,000
1.6
670
Group Total
7,600
3.4
840
40,000
2.2
10,000
79,000
1.7
4,300
30,000
2.1
15,000
Group Resources and Reserves
Genesis released its annual update of Mineral Resources and Ore Reserve estimates in the Company’s ASX Announcement
dated 21 March 2024 entitled “Genesis underpins +300,000oz pa growth strategy with robust 3.3Moz Reserve”.
Mineral Resources
The updated 2024 Genesis Minerals Resources Estimate is 230 Mt @ 2.1 g/t Au for 15.0 Moz, in line with the previous 2023
Mineral Resource Estimate of 220 Mt @ 2.2 g/t Au for 15.0 Moz.
The Group Mineral Resources Estimate as at 30 June 2024 is shown below:
Mineral Resources & Ore Reserves Statement
Notes:
All figures reported to two significant figures. Rounding errors may occur.
Mineral Resources are inclusive of Ore Reserves.
Mineral Resources are reported at various gold price guidelines between A$2500 and A$2800/oz Au.
Rounding may result in apparent summation differences between tonnes, grade and contained metal content.
50
Proved
Probable
Total
Deposit
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t Au)
Ounces
(000s)
Leonora
Gwalia
460
4.2
62
6,200
5.4
1,100 6,700
5.3 1,100
Tower Hill
-
-
-
15,000
2.0
1,000
15,000
2.0
1,000
Admiral
-
-
-
2,300
1.6
120
2,300
1.6
120
Orient Well
-
-
-
1,200
1.2
46
1,200
1.2
46
Puzzle
-
-
-
2,700
1.3
110
2,700
1.3
110
Ulysses Open Pit
820
2.6
69
620
1.9
38
1,400
2.3
110
Ulysses Underground
490
4.1
64
1,600
3.6
180 2,100
3.7
250
Total Leonora
1,800
3.4
200
30,000
2.7
2,600
32,000
2.7
2,800
Laverton
Jupiter OP
640
1.0
21
7,100
0.9
210
7,700
0.9
230
Bruno Lewis OP
-
-
-
3,900
1.1
140
3,900
1.1
140
Total Laverton
640
1.0
21
11,000
1.0
350
12,000
1.0
370
Bardoc
Aphrodite
-
-
-
-
-
-
-
-
-
Zoroastrian
-
-
-
790
3.8
97
790
3.8 97
Total Bardoc
-
-
-
790
3.8
97
790
3.8
97
Redcliffe
Redcliffe-Hub
-
-
-
580
3.4
65
580
3.4
65
Redcliffe-GTS
-
-
-
640
2.2
46
640
2.2
46
Total Redcliffe
-
-
-
1,200
2.8
110
1,200
2.8
110
Grand Total
2,400
2.8
220
43,000
2.3
3,100
45,000
2.3
3,300
Ore Reserves
Genesis has completed an updated Ore Reserve Estimate based on the 2024 Mineral Resource Estimate. The updated 2024
Genesis Minerals Reserve Estimate is 45 Mt @ 2.3 g/t Au for 3.3 Moz which is down from the previous 2023 Ore Reserve
Estimate of 41 Mt @ 3.0 g/t Au for 3.9 Moz.
The Ore Reserve estimated is supported by existing operational performance and costs, Pre-Feasibility or Feasibility level
studies and forms a subset of the company’s Production Target. A detailed financial model was generated for the Ore Reserves
on a standalone basis and has been used to determine the economic parameters for the Ore Reserve Estimate.
The Ore Reserve has been completed in accordance with the 2012 JORC Code. The Ore Reserve is based on the Measured and
Indicated portion of the Mineral Resource Estimate. The Ore Reserve estimate represents the portion of the Production Target
based on Measured and Indicated Mineral Resources only. No Inferred material has been included in the Ore Reserve estimate.
The Group Ore Reserve Estimate for the Group as at 30 June 2024 is shown below:
Notes:
All figures reported to two significant figures. Rounding errors may occur.
Ore Reserves are based on a gold price of A$2,400/ounce.
The Company confirms that it is not aware of any new information or data that materially affects the information included in
that original market announcement dated 21 March 2024 and the Company confirms that all material assumptions and technical
parameters underpinning the Mineral Resource estimates in that market announcement continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented
have not materially changed from the original market announcement.
Mineral Resource estimates in this report are reported inclusive of Ore Reserve estimates.
51
Estimation Governance Statement
The Company ensures that all Mineral Resource and Ore Reserve calculations are subject to appropriate levels of governance
and internal controls. Exploration Results are collected and managed by competent qualified geologists and overseen by the
Company’s Exploration Manager. All data collection activities are conducted to industry standards based on a framework of
quality assurance and quality control protocols covering all aspects of sample collection, topographical and geophysical
surveys, drilling, sample preparation, physical and chemical analysis and data and sample management. Mineral Resource and
Ore Reserve estimates are prepared by qualified Competent Persons and are subject to internal and external review as
appropriate.
Competent Persons’ Statements
The information in this report that relates to Exploration Results for Gwalia and Tower Hill is based on information, and fairly
represents, information and supporting documentation compiled by Mr. Andrew de Joux who is a Member of the Australasian
Institute of Mining and Metallurgy. Andrew de Joux is a full-time employee of Genesis Minerals Limited and has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Andrew de Joux consents to the inclusion in the statement of the
matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at Gwalia, Ulysses, Admiral, Orient Well, Laterite and Puzzle
Deposits and Harbour Lights is based on information, and fairly represents, information and supporting documentation
compiled by Mr. Timothy Sanders who is a Member of the Australian Institute of Geoscientists. Timothy Sanders is a full-time
employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Timothy Sanders
consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at Tower Hill is based on information, and fairly represents,
information and supporting documentation compiled by Mr. Paul Hazelwood who is a Member of the Australasian Institute of
Mining and Metallurgy. Paul Hazelwood is a full-time employee of Genesis Minerals Limited and has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Paul Hazelwood consents to the inclusion in the statement of the matters based on his
information in the form and context in which it appears.
Mr. Alex Whishaw, a member of Australasian Institute of Mining and Metallurgy, compiled the Mineral Resource estimate for
Westralia, Jupiter, Mt Marven, Maxwell and Redcliffe Deposits and for estimated Stockpiles in 2024. Mr. Alex Whishaw had
sufficient experience relevant to the style of mineralization, type of deposit, and activity undertaken to qualify as a Competent
Person as defined by the JORC Code (2012 Edition).
Mr. Michael Millad, a member of the Australasian Institute of Mining and Metallurgy, compiled the Mineral Resource estimate
for Bruno-Lewis in 2024. Mr. Michael Millad had sufficient experience relevant to the style of mineralization, type of deposit,
and activity undertaken to qualify as a Competent Person as defined by the JORC Code (2012 Edition).
Mr. Jamie Logan, a member of the Australasian Institute of Mining and Metallurgy, compiled the Mineral Resource estimate for
Raeside Group and Kyte in 2024. Mr. Jamie Logan had sufficient experience relevant to the style of mineralization, type of
deposit, and activity undertaken to qualify as a Competent Person as defined by the JORC Code (2012 Edition).
52
Ms. Jane Bateman, a fellow of the Australasian Institute of Mining and Metallurgy, compiled the Mineral Resource estimate for
the Bardoc deposits in 2024. Ms. Jane Bateman had sufficient experience relevant to the style of mineralization, type of
deposit, and activity undertaken to qualify as a Competent Person as defined by the JORC Code (2012 Edition).
Mr. Timothy Sanders, a Member of the Australian Institute of Geoscientists, has reviewed the Mineral Resource estimates for
Westralia, Jupiter, Mt Marven, Maxwell, Redcliffe Deposits, estimated Stockpiles, Bruno-Lewis, Raeside Group, Kyte and the
Bardoc Deposits as compiled by the aforementioned Competent Persons. Timothy Sanders is satisfied that the work of these
previous Competent Persons has been undertaken to industry standards and in accordance with the JORC Code (2012 Edition).
Timothy Sanders confirms that the Mineral Resource estimates as reported in this document, to the best of their knowledge,
fairly represent the data compiled by the respective Competent Persons. Timothy Sanders has provided the necessary review
and validation to support the inclusion of these estimates in the report. Timothy Sanders consents to the inclusion in this
report of the matters based on the information in the form and context in which it appears.
The information in this report that relates to Ore Reserves at Tower Hill, Jupiter, Bruno-Lewis, Hub, GTS, Admiral, Ulysses,
Orient Well and Puzzle Open Pits is based on information, and fairly represents, information and supporting documentation
compiled by Mr. Christopher Burton who is a Member of the Australasian Institute of Mining and Metallurgy. Christopher
Burton is a full-time employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Christopher Burton consents to the inclusion in the statement of the matters based on his information in the form and context
in which it appears.
The information in this report that relates to Ore Reserves at Ulysses Underground is based on information, and fairly
represents, information and supporting documentation compiled by Mr. Jonathan Wall who is a Member of the Australasian
Institute of Mining and Metallurgy. Jonathan Wall is a full-time employee of Genesis Minerals Limited and has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Jonathan Wall consents to the inclusion in the statement of the
matters based on his information in the form and context in which it appears.
The information in this report that relates to Ore Reserves at Zoroastrian is based on information, and fairly represents,
information and supporting documentation compiled by Mr. Andrew Francis who is a Member of the Australasian Institute of
Mining and Metallurgy. Andrew Francis is a full-time employee of Genesis Minerals Limited and has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Andrew Francis consents to the inclusion in the statement of the matters based on his
information in the form and context in which it appears.
53
5
54
Aerial Photo - Gwalia Mine Site
Annual Financial Report
For the year ended 30 June 2024
Contents
Directors Report
Remuneration Report
Auditor's Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor's Report
56
61
83
84
85
86
87
88
123
124
55
Directors Report
56
Admiral Operations
DIRECTORS REPORT
Genesis Minerals Limited – Annual Financial Report
57
The Directors present the financial statements of Genesis Minerals Limited (Genesis) and its controlled subsidiaries for the year ended 30 June
2024.
Directors
The names of the Company’s Directors in office during the year and until the date of this report are set out below. Directors were in office for this
entire period unless otherwise stated.
Anthony Kiernan (AM)
(Non-Executive Chair)
Raleigh Finlayson
(Managing Director)
Michael Bowen
(Non-Executive Director)
Gerard Kaczmarek
(Non-Executive Director)
Karen Lloyd
(Non-Executive Director) – Appointed 1 April 2024
Jacqueline Murray
(Non-Executive Director)
Michael Wilkes
(Non-Executive Director)
Company Secretary
Geoff James – Resigned effective 29 August 2024
Joanne Steer – Appointed effective 29 August 2024
Directors' Meetings
The number of meetings of the Company’s Board of Directors and each Board Committee held during the year ended 30 June 2024, and the
number of meetings attended by each Director were as follows:
Director
Board
Meetings
Audit & Finance
Committee
Risk &
Sustainability
Committee
Audit, Risk &
Sustainability
Committee
People &
Culture
Committee
Exploration &
Growth
Committee
A
B
A
B
A
B
A
B
A
B
A
B
Anthony Kiernan
12
12
1
1
-
-
-
-
4
4
-
-
Raleigh Finlayson
12
12
-
-
2
2
-
-
-
-
1
1
Michael Bowen
12
11
1
-
-
-
1
1
4
4
-
-
Gerard Kaczmarek1
10
10
1
1
-
-
1
1
4
4
-
-
Karen Lloyd2
2
2
-
-
1
1
-
-
-
-
1
1
Jacqueline Murray
12
12
-
-
3
3
-
-
-
-
2
2
Michael Wilkes
12
11
-
-
3
3
1
1
-
-
2
2
1 Gerard Kaczmarek was not entitled to attend two Board meetings due to a conflict of interest whilst a director of Dacian Gold Limited (in which Genesis had a controlling interest).
2 Karen Lloyd appointed as Non-Executive Director on 1 April 2024.
A = the number of meetings the Director was entitled to attend
B = the number of meetings the Director attended
Director Diversity
DIRECTORS REPORT
58
Genesis Minerals Limited – Annual Financial Report
Directors’ interests
The following relevant interests of each Director in the share capital of the Company and its related body corporates as at the date of this report
are shown below:
Director
Ordinary
Shares
FY25 Share
Rights
FY24 3 Year
Performance
Rights
FY24 4 & 5 Year
Strategic
Growth
Retention
Rights
Options @
$1.05
Expiring
25/11/243
Options @
$1.22
Expiring
10/12/24
Options @
$1.05
Expiring
25/11/253
Anthony Kiernan
279,087
22,509
-
-
-
-
-
Raleigh Finlayson
19,913,211
-
1,100,000
3,220,000
12,250,000
-
12,250,000
Michael Bowen
1,382,980
16,882
-
-
-
-
1,500,000
Gerard Kaczmarek
503,402
16,882
-
-
-
58,334
-
Karen Lloyd2
-
16,882
-
-
-
-
-
Jacqueline Murray1
-
-
-
-
-
-
-
Michael Wilkes
176,392
16,882
-
-
-
-
-
1 Jacqueline Murray (appointed as Non-Executive Director on 1 July 2023) is an employee of Resource Capital Funds Management LLC, manager of Resource Capital Fund VII L.P.
(“RCF VII”). RCF VII is a shareholder in Genesis Minerals Limited and Jacqueline is therefore prohibited from personally owning shares in Genesis.
2 Karen Lloyd was appointed as a Non-Executive Director on 1 April 2024 and was not eligible to participate in the FY24 NED Share Rights allocation.
3 These options were issued to Raleigh Finlayson and Michael Bowen as part of the strategic funding and Board restructure initiative announced to the ASX on 22 September 2021.
No further options have been issued to Directors.
Dividends
No dividend was declared or paid during the current or previous year.
Principal Activities
The principal activities of the Group during the period were gold mining, project development and exploration activities in Western Australia
Operating and Financial Review
During the period, the Group consolidated its landholding in the Leonora region of Western Australia. Further to this, the Group will continue to
progress its strategy of establishing a premium West Australian gold producer targeting +300koz per annum from its Leonora and Laverton
Operations.
DIRECTORS REPORT
Genesis Minerals Limited – Annual Financial Report
59
A review of the operations and financial position of the Group and its business strategies and prospects is set out in the Operating and Financial
Review on pages 28-47.
Significant Changes in the State of Affairs
During the financial year there were no significant changes in the state of affairs of the Group other than that referred to in the financial statements
or notes thereto.
Events Subsequent to the Reporting Date
On 12 July 2024, the Group sold its non-core 100% interest in Metallo Resources Pty Ltd (“Metallo”) to Ordell Minerals Limited (“Ordell”). The
consideration received for the sale included the following:
•
4 million shares in Ordell; and
•
1 million options exercisable at $0.25 and 1 million options exercisable at $0.35 in Ordell, expiring 5 years from the date of issue.
In addition, deferred consideration is payable by Ordell as follows:
•
upon the announcement of a JORC-compliant Mineral Resource in excess of 500,000 ounces of gold on the Metallo tenements, Ordell will
either (at its election) pay further cash consideration of $800,000 or issue shares to Genesis equal to $800,000 calculated on the 20-day
volume weighted average price (VWAP) of the Ordell Shares trading on ASX immediately prior to the announcement of the Mineral Resource
or, if there is no announcement, of the achievement of the Mineral Resource; and
•
on the announcement of a decision to commence the first commercial mining activities on the Metallo tenements, Ordell will either (at its
election), pay further cash consideration of $1,600,000 or issue Shares to Genesis equal to $1,600,000 calculated on the 20-day VWAP of
the Ordell Shares trading on ASX immediately prior to the announcement of the decision.
Subsequent to 30 June 2024, the Company acquired $16.4 million of mining equipment financed through unused asset finance lease facilities.
Company Secretary, Geoff James has resigned and been replaced by the Company’s Head of Legal, Joanne Steer effective 29 August 2024.
Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Group,
the results of those operations or the state of affairs of the Group in subsequent financial years.
Likely Developments and Expected Results
All information regarding likely developments and expected results is contained in the “Operating and Financial Review” section in this report.
Environmental Regulation and Performance
The Group’s mining and exploration activities are subject to significant conditions and environmental regulations under the Commonwealth and
Western Australia State Governments. So far as the Directors are aware, all activities have been undertaken in compliance with all relevant
environmental regulations.
Officer’s Indemnities and Insurance
During the year the Company has paid an insurance premium to insure certain officers including those of the Company. The officers of the
Company covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal
proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Company.
The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. Disclosure of the nature of the
liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
The Company has not provided any insurance for an auditor of the Company.
Proceedings on Behalf of The Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or
to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those
proceedings. No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the
Corporations Act 2001.
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Genesis Minerals Limited – Annual Financial Report
Non-Audit Services
The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience
with the Group are important. The Directors consider the general standard of independence for auditors imposed by the Corporations Act 2001
before any engagements are agreed.
No non-audit services were provided by Hall Chadwick, the Group’s auditor, during the year. Further details of remuneration of the auditor are set
out in Note 26.
Rounding off
The Company is of a kind referred to in ASIC Instrument 2016/191 dated 24 March 2016 and in accordance with that instrument, amounts in the
Financial Statements and Directors’ Report have been rounded to the nearest thousand dollars, unless otherwise stated.
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act is set out on Page 83.
Corporate Governance
Genesis’ 2024 Corporate Governance Statement, which provides detailed information about governance, and Appendix 4G which sets out the
Company’s compliance with the recommendations in the fourth edition of the ASX Corporate Governance Council’s Principles and
Recommendations, will be lodged with the ASX at the same time as this report and will be available in the corporate governance section of the
Company’s website at https://genesisminerals.com.au/sustainability/corporate-governance/ .
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61
REMUNERATION REPORT (AUDITED)
LETTER FROM THE CHAIR OF THE PEOPLE AND CULTURE COMMITTEE
Dear Fellow Shareholder,
On behalf of the Genesis Board, I am pleased to present our Remuneration Report for the financial year ended 30 June 2024 (FY24).
During FY24, Genesis made a rapid transition from junior explorer to gold producer (with a market capitalisation of ~A$2.0 billion) and was added
to the ASX 200 Index in September 2023. Pleasingly, this transition saw a 35% increase in our share price over the year.
Our first 12 months as a Leonora gold producer was highly successful, with output of 134,451oz at an All-In-Sustaining-Cost (AISC) of A$2,356/oz,
achieving guidance of 130-140koz at an AISC of A$2,300-2,400/oz. Importantly TRIFR reduced from 10.4 in July 2023 to 8.3 at the end of the
period.
Other positive outcomes for Genesis during FY24 included the introduction of our Vision to be “The trusted Australian gold miner - Progressive,
high quality, +400koz pa”, supported by our ASPIRE Core Values. We also established a 10-year group production outlook, including outstanding
growth in the 5 years to FY29 with production rising to 325koz pa and AISC falling to A$1,600/oz.
We enter FY25 well placed to increase production and lower costs into the backdrop of a buoyant gold price.
Prior to FY24, Genesis had implemented a unique remuneration structure for Key Management Personnel (KMP) reflecting low base salaries (well
below market) with remuneration heavily weighted towards at-risk equity performance components, ensuring alignment with our shareholders.
As noted and detailed in last year’s Remuneration Report, following the acquisition of St Barbara’s Leonora gold assets, the Company’s
Remuneration Policy was benchmarked against our peer group and updated for FY24 to reflect the Company’s rapid evolution into an ASX 200
gold producer.
Short Term Incentive (STI) Outcomes
For FY24, the Company’s STI plan was aligned with internally funded growth and focused on four main categories:
•
Licence to Operate
•
Gold Production
•
AISC
•
Cash balance
Importantly, the Company introduced “No Fatalities” and “No Major Environmental Events” Gateways that will apply to 100% of STIs.
The overall STI outcome for FY24 was 67% and the Board has not applied any discretion in the calculation of this result.
Long Term Incentive (LTI) Outcomes
Shareholders overwhelmingly supported the Company’s long term growth strategy at the November 2023 AGM, approving (in relation to the
Managing Director) the issuance of two types of LTIs in FY24:
•
FY24 LTI Performance Rights that will be measured over a 3-year period; and
•
A one-off grant of Strategic Growth Retention Rights to be measured over 4 and 5-year periods.
The performance measures associated with these LTIs are aligned with shareholder returns and were set out in detail in the FY23 Remuneration
Report. We have detailed these measures here again in this year’s Remuneration Report.
No LTIs were issued in FY23.
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Genesis Minerals Limited – Annual Financial Report
Introduction of Non-Executive Director remuneration initiatives
In FY24, a Minimum Shareholding Requirement was introduced for Non-Executive Directors. The Chair and Non-Executive Directors are now
required to hold 50% of their base fee in shares within three years of the date of commencement of Directorship.
Further, Non-Executive Directors may on a full year basis take up to A$40,000 of Chair fees or A$30,000 of Non-Executive Director Fees in
Genesis Share Rights.
The Committee and Board members remain conscious of the need to balance the attraction and retention of quality employees in a competitive
market with a remuneration framework that is aligned with our shareholder’s interests.
On behalf of the Board, I invite you to review our FY24 Remuneration Report and welcome your ongoing feedback and engagement with respect
to our remuneration approach.
Yours sincerely
Mr Michael Bowen
People and Culture Committee Chair
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63
Table of Contents
This Remuneration Report (Report) forms part of the Annual Report and has been prepared in accordance with Section 300A of the Corporations
Act 2001 (Act) and the Company’s policies regarding Key Management Personnel (KMP) governance. This information has been audited as
required by section 308(3C) of the Act.
The Report outlines the remuneration approach and arrangements in place for KMP of Genesis Minerals Limited (Genesis, or the Company) for
the Financial Year ended 30 June 2024 (FY24).
This Report contains the following sections:
SECTION 1 - Who is covered by this Remuneration Report
Page 63
SECTION 2 - FY24 Remuneration Summary
Page 64
SECTION 3 - Remuneration Strategy and Supporting Principles
Page 65
SECTION 4 - Remuneration Governance
Page 65
SECTION 5 - Executive Remuneration Strategy and Components for FY24
Page 66
SECTION 6 - FY24 Executive Remuneration Outcomes
Page 70
SECTION 7 - FY24 Non-Executive Director Remuneration
Page 72
SECTION 8 - Planned Remuneration for FY25
Page 73
SECTION 9 - Statutory Remuneration Tables and Additional Disclosures
Page 76
1.
Who is covered by this Remuneration Report
This Report outlines the remuneration details and outcomes for Genesis’s KMP. For the purposes of this report, KMP are classified as individuals
who possess the authority and responsibility for planning, directing and controlling the major activities of the Company, whether directly or
indirectly, including any Director (whether Executive KMP or a Non-Executive Director) of Genesis.
The KMP members over FY24 comprised of the following:
•
Executive KMP
•
Non-Executive Directors.
The table below outlines each of the KMP of Genesis. Unless otherwise indicated, these individuals served their role as KMP for the full Financial
Year (ending 30 June 2024).
Name
Position
Term as KMP
Executive KMP
Raleigh Finlayson
Managing Director / Chief Executive Officer
Full Year
Morgan Ball
Chief Financial Officer
Full Year
Matt Nixon
General Manager, Leonora Operations
Chief Operating Officer
Part Year: 1 August 2023 to 28 April 2024
From 29 April 2024
Troy Irvin
Corporate Development Officer
Full Year
Lee Stephens
General Manager, Laverton Operations
Full Year
Former Executives
There were no KMP resignations between 30 June 2023 and 30 June 2024
Non-Executive Directors
Anthony Kiernan
Non-Executive Chair
Full Year
Michael Bowen
Non-Executive Director
Full Year
Gerard Kaczmarek
Non-Executive Director
Full Year
Karen Lloyd
Non-Executive Director
Part Year: Appointed 1 April 2024
Jacqueline Murray
Non-Executive Director
Full Year
Michael Wilkes
Non-Executive Director
Full Year
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Genesis Minerals Limited – Annual Financial Report
2.
FY24 Remuneration Summary
As detailed in our FY23 Remuneration Report, with the rapid transition to an ASX 200 gold producer in FY24, the Company carried out a review
of Executive KMP remuneration arrangements against relative peers and market trends in order to remain externally competitive, retain key
personnel and support shareholder interests. This is acknowledging that Executive KMP were on a significantly below market base salaries prior
to FY24. The table below provides a high-level overview of the FY24 remuneration outcomes, per element.
Executive KMP
Fixed
Remuneration
Increases reflect the
Company’s rapid
move from explorer
to ASX 200 gold
producer and
developer
Managing Director: Increase from $300,000 1 to $927,5001 to $777,5001,2
Chief Financial Officer: Increase from $100,0003 to $550,0003
Corporate Development Officer: Increase from $100,0003 to $325,0003
General Manager, Leonora Operations then Chief Operating Officer: Increase from $325,0003 to
$450,0003,4 to $500,0003,5
General Manager, Laverton Operations: Increase from $100,0003 to $325,0003 to 360,0003,4
See Section 9: Statutory Remuneration Tables and Additional Disclosures, for more detail
1 Inclusive of statutory superannuation
2 Salary reduced effective 1 December 2023 upon shareholder approval of one-off, long dated Strategic Growth Retention
Rights.
3 Exclusive of statutory superannuation capped at the maximum contribution base
4 Effective 1 January 2024
5 Effective 29 April 2024 upon promotion to COO
Short-Term
Incentive
(“STI”) outcomes
67% of Maximum
Awarded
The STI rewards KMP for achieving key business outcomes that are critical to the success of the Company.
These are measured on an annual basis, against specific Key Performance Indicators (KPIs).
The STI was assessed and yielded a 67% Group Scorecard achievement. Due to not all KPI targets being
successfully met, 33% of the maximum STI opportunity was forfeited by KMP.
A total of $1,094,262 was paid to KMP for the FY24 STI.
See Section 6: FY24 Executive Remuneration Outcomes for more details
Long-Term
Incentive
(“LTI”) outcomes
5,200,000
Performance Rights
vested in FY24
Performance Rights issued in FY22 vested in FY24 following completion of the acquisition of the Leonora
Operations from St Barbara Limited (ASX: SBM).
5,200,000 vested into shares, and 3,200,000 of these shares are escrowed until the June quarter of FY25.
See Section 6: FY24 Executive Remuneration Outcomes for more details
Non-Executive
Director (NED) fees
Increases reflect the
Company’s rapid
move from explorer
to ASX 200 gold
producer and
developer
$1,100,000
Aggregate
NED fee pool
To align NED fees with relative peers and the market, the Company’s NED fees increased effective 1 Jan
2024 as follows:
Non-Executive Chair: Increase from $140,000 to $200,000pa inclusive of superannuation.1
Non-Executive Directors: Increase from $80,000 to $130,000pa inclusive of superannuation1.
Committee Chair fees introduced of $15,000pa inclusive of superannuation1.
Committee Member fees introduced of $7,500pa inclusive of superannuation1.
1 To align NED remuneration with shareholder interests a Minimum Holding Policy has been introduced.
Further, NEDs may on a full year basis take up to $40,000 of NED Chair Fees or $30,000 of NED Fees in
GMD Share Rights.
See Section 7: FY24 Non-Executive Director Remuneration for more details
Other Changes to
KMP Remuneration
in FY24
Shareholders approved the Company’s updated Equity Incentive Plan (EIP) which, further to shareholder
feedback, included provisions reflecting that:
•
only a Relevant Proportion of unvested incentives would vest upon a Change of Control, subject to
Board discretion; and
•
The definition around Good Leavers was tightened.
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Genesis Minerals Limited – Annual Financial Report
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3.
Remuneration Strategy and Supporting Principles
Our remuneration strategy aligns employee compensation with shareholder returns by linking rewards to delivery of our key performance metrics.
This approach ensures that individual performance drives company success and reflects in shareholder value, fostering a shared commitment to
achieving long-term goals.
The remuneration strategy, decision making and remuneration outcomes that yield as a result, are guided by the following principles:
Integration and alignment
Market competitive
Pay for performance
Internal equity
Flexibility
Remuneration is integrated
into management processes
and is aligned to business
strategy, performance
objectives, outcomes and
maximising shareholder
returns
Remuneration is competitive
relative to the labour market
in which we operate and
reflect an individual’s
“worth”.
Remuneration practices will
reward employees
commensurate with their skills,
experience and performance,
their contribution, and
business outcomes.
Any differentiation between
employees will be based on
criteria that is fair,
consistent, and objective.
The remuneration
framework will be
sufficiently flexible to
adjust to changing
economic conditions.
4.
Remuneration governance
All remuneration decision making pertaining to KMP is supported by a robust remuneration governance framework. This framework exists to
ensure that all remuneration matters are objectively considered, particularly in the context of ongoing remuneration enhancements.
The table below provides a high-level summary of the governance role fulfilled by various internal and external parties:
Board of Directors (Board)
The Board is responsible for:
•
determining and reviewing remuneration arrangements for the Directors and Executive KMP.
•
considering the recommendations made regarding remuneration matters from the People and Culture Committee.
•
endorsing the remuneration structures of the Executive KMP (inclusive of Fixed and Variable Pay elements).
People and Culture
Committee
(the Committee)
The Committee assists the Board in:
•
the determination of KMP remuneration, as well as reviewing, considering and making recommendations to the Board
on the remuneration and incentives that should be offered to each Executive and Non-Executive Director.
•
reviewing and making recommendations on the remuneration policy pertaining to Executive KMP that provides an
appropriate balance between the Company’s desire to attract and retain the calibre of Executive KMP needed to fuel the
growth of Genesis, whilst guarding against the payment of excessive remuneration.
•
providing an appropriate balance between fixed and incentive pay, reflecting short and long-term performance
objectives appropriate to the Company’s circumstances and strategy.
•
reviewing and approving the remuneration framework applied in the Company and making recommendations to the
Board, as appropriate.
The 2024 Corporate Governance Statement provides further information on the role of this Committee, under Principle 8.
Remunerate Fairly and Responsibly. This document is available to be viewed on the Company website at
https://genesisminerals.com.au/sustainability/corporate-governance/
Furthermore, the People and Culture Committee Charter delineates the roles and responsibilities undertaken by this
Committee, as it pertains to remuneration aspects. These are represented in further detail on Pages 2 and 3 of the Charter
and can be accessed via the same Corporate Governance website link provided above.
External Remuneration
Consultants
To ensure the Committee and Board remain fully informed and aligned to relevant remuneration market trends, external
advice regarding remuneration related issues, from independent remuneration consultants may be sought, from time to time.
During FY24, the Committee engaged with RemSmart Pty Ltd for support regarding market benchmarking of Executive and
broader employee remuneration.
No remuneration recommendations as defined in section 9B of the Corporations Act 2001 were provided by the consultant
during the period.
Securities
Trading Policy
The Company’s Securities Trading Policy can be accessed via this link under the Additional Policies heading:
https://genesisminerals.com.au/sustainability/corporate-governance/
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5.
Executive Remuneration Strategy and Components for FY24
The Company’s approach to remuneration comprises of a combination of remuneration elements, including Total Fixed Remuneration, Short Term
Incentives and Long Term Incentives. The combination of these elements has been carefully considered and the remuneration framework has
consequently been updated to align with Genesis’ 5-year strategy, which has been designed to unlock the next stage of the Company’s growth.
The table below provides a summary of the Company’s approach for FY24 to each Executive KMP remuneration component:
Remuneration Structure
Fixed Remuneration
Variable Remuneration
Component
Total Fixed Remuneration (TFR)
Short-term incentives (STI)
Long-term incentives (LTI)
Purpose
Provides remuneration that is reflective
of the technical acumen, knowledge,
and experience of the Executive.
Rewards Executives for achieving
key business measures, based on
exceeding the Company’s FY24
budget targets.
Focuses Executives on business
performance and linking this with
long term business growth and
associated shareholder wealth
creation.
What is provided
Base salary and Superannuation is paid
in accordance with legislation to the
maximum contribution base.
Cash payment
Paid in equity, currently via the
mechanism of Performance
Rights
How it works
Base salary takes into consideration
market practice of comparable
companies in the Industry, Individual
and Company Performance and on
external advice sought (as required).
Superannuation is paid in accordance
with legislation to the maximum
contribution base.
Short Term Incentives (STI) are
reviewed on an annual basis, which
may necessitate changes to KPIs,
weightings, gateways and the like.
The Performance Rights issued
to Executives are measured
against set KPIs that measure
Company performance and are
aligned with shareholder value.
These Performance Rights are
subject to a 3-year performance
period, which is subject to
vesting conditions (including
ongoing employment) needing to
be met to enable the equity
payment.
How it is market positioned
Remuneration is positioned in line with market benchmarking commensurate with roles of similar breadth and
complexity within the company’s comparator group and broader industry group taking into consideration business
critical roles and exceptional individual performance.
What it achieves
Allows us to attract and retain key talent
to deliver on business strategy and
provide internal equity.
Incentivises performance aligned to
business strategy and performance
outcomes.
Align reward with long-term
shareholder experience.
Create ownership in the
Company.
A Reward Framework Aligned with Maximum Shareholder Returns
5.1 Fixed Remuneration
The fixed remuneration offered to Executive KMP during FY24, as well as terms of employment under their Executive Service Agreement are
outlined below:
Name
Position Held
Total Fixed
remuneration
$p.a.#
Employee Notice
Period
Company Notice
Period
Raleigh Finlayson
Managing Director / Chief Executive Officer
777,500
3 months
6 months
Morgan Ball
Chief Financial Officer
577,500
2 months
3 months
Matt Nixon1
General Manager, Leonora Operations
Chief Operating Officer
477,500
527,500
3 months
3 months
3 months
3 months
Troy Irvin
Corporate Development Officer
352,500
2 months
3 months
Lee Stephens
General Manager, Laverton Operations
387,500
2 months
3 months
1 Commenced role as General Manager, Leonora Operations effective 1 August 2023, promoted to Chief Operating Officer effective 29 April 2024.
# Total Fixed Remuneration p.a. is inclusive of superannuation, which is capped at the FY24 Superannuation Contribution Limit of $27,500.
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67
5.2 Short Term Incentive
The following table outlines the FY24 STI arrangements in detail:
FY24 STI
What is the STI
opportunity?
The STI opportunity is set as a percentage of fixed remuneration.
Managing Director / Chief Executive Officer – Maximum Target Opportunity: 100%
Other Executive KMP – Maximum Target Opportunity: 50%.
What is the performance
period?
The STI is measured annually, according to the Company’s Financial Year.
The FY24 STI commenced on 1 July 2023 and ended 30 June 2024.
What is the gateway(s)?
For the STI to be paid, two “gates” must be passed. These are:
•
No fatality within the Group; and
•
No serious environmental event effecting the Groups’ licence to operate.
In the event of either of the above, the default position is zero STI awarded across the Company.
How is performance
assessed and FY24 STI
Outcomes
Performance is assessed against four Group KPI measures, with varying weightings applied to each KPI. An Executive KMP’s
actual award is based on meeting or exceeding these measures.
The KPIs and outcomes for FY24 are as follows:
1.
License to Operate, consisting of Safety (50%) and Environment (50%) measures.
Total aggregate weighting = 25%
Safety: There is a downward trend / reduction to the rolling Total Recordable Injury Rate (TRIFR) – for the Performance
Period, specifically:
Decrease in TRIFR
STI Outcome
(% of Target
Opportunity)
Weighting
Performance
Outcome
Award
Up to 10%
50% of target
12.5%
100%
12.5%
Above 10 to 15%
80% of target
TRIFR decreased by
more than 15% in
FY24.
>15% or more
100% of target
Environment: There are no serious Environmental regulatory non-compliances recorded or reputational damage over the
Performance Period, specifically:
Condition
STI Outcome
(% of Target
Opportunity)
Weighting
Performance
Outcome
Award
Any recorded incident is
managed, does not result in
actions taken by regulatory
bodies or result in reputational
damage
70% of target
12.5%
100%
12.5%
There were no
Environmental
regulatory non-
compliances recorded
or reputational
damage.
Compliance with license
conditions and there is no
reputational damage
100% of target
2.
Gold Production
Total weighting = 25%
Gold Production: meets or exceeds budget for the Performance Period.
Condition
STI Outcome
(% of Target
Opportunity, pro-rata)
Weighting
Performance
Outcome
Award
Production above budget by
10%
100% of target
25%
0%
0%
Production for FY24
was slightly below
budget.
Production above budget
between 5 – 10%
80% of target
Production above budget by
less than 5%
70% of target
Production equal to budget
50% of target
Production below budget
0% of target
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3.
All In Sustaining Cost (AISC)
Total weighting = 25%
AISC: at or below budget for the Performance Period.
Condition
STI Outcome
(% of Target
Opportunity, pro-
rata)
Weighting
Performance
Outcome
Award
Costs below budget by >10%
100% of target
25%
67%
16.7%
AISC for FY24 were
below budget by
<5%.
Costs below budget between
5 – 10%
80% of target
Costs below budget by < 5%
70% of target
Costs at budget
50% of target
Costs above budget
0% of target
4.
Cash Balance
Total weighting = 25%
Improve balance sheet strength by exceeding budgeted closing cash balance as of 30 June 2024.
Condition
STI Outcome
(% of Target
Opportunity, pro-rata)
Weighting
Performance
Outcome
Award
Exceed budgeted cash balance
by 20%
100% of target
25%
100%
25%
FY24 year-end cash
balance exceeded
budget year end
cash balance by
more than 20%.
Exceed budgeted cash balance
by 15%
75% of target
Exceed budgeted cash balance
by 10%
50% of target
At budgeted cash balance or
exceed by up to 10%
25% of target
Below budgeted cash balance
0% of target
Overall Outcome
67%
How is the STI award
treated at cessation of
employment?
In the event that an Executive KMP’s employment terminates prior to the end of a financial year, the Executive KMP may or may
not receive a pro-rata payment, depending on both the timing within the relevant FY and the circumstances of the cessation of
employment.
5.3 Long Term Incentive (LTI)
The following table outlines the FY24 LTI arrangements in detail:
FY24 LTI
What is the LTI opportunity?
The LTI opportunity is set as a percentage of fixed remuneration.
Managing Director / Chief Executive Officer – Target Opportunity: 150%
Other Executive KMP – Target Opportunity: 100%.
The number of Performance Rights granted in respect of FY24 were offered pursuant to the approved Genesis Equity
Incentive Plan Rules and the associated performance conditions, of which greater detail is given below.
The allocation to the Managing Director was approved by shareholders at the November 2023 AGM.
What is the performance period?
The LTI is measured over a 3-year performance period.
The FY24 LTI commenced 1 July 2023 and ends 30 June 2026.
How is performance assessed?
The measures against which the LTI is assessed during the performance period are as follows:
•
Share Price Growth (weighted 20%): measures the extent of growth experienced in the existing Share Price.
This is an absolute measure.
•
Relative Total Shareholder Return (rTSR) (weighted 20%): measures the growth in a Company’s share price
performance against the ASX 200 Mining & Metals Index over the Performance Period, where 12 Peer
Companies (listed in the FY23 Remuneration Report and the 2023 AGM Notice of Meeting) of a similar size and
complexity to Genesis have been selected to determine the Relative TSR Measure.
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•
Environmental, Social and Governance (ESG) (weighted 30%): measures a variety of ESG imperatives,
ranging from the development and implementation of a Group Stakeholder Engagement plan to setting and
delivering on the Group’s diversity measures.
•
Return on Capital Employed (ROCE) (weighted 30%): measures the profitability of the Company and the
efficiency with which it utilises its capital.
How is the LTI vesting
determined?
For the Share Price Growth hurdle, the proportion of awards may vest in accordance with the following schedule:
Share Price Growth Hurdle Vesting Conditions
Percentage vesting
Calculated by comparing the Company’s 20-day VWAP on 30 June 2023 to 30 June 2026.
Below 20% increase
Nil
> 20% to 40% increase
0 - 50% vest pro-rata
> 40% to75% increase
50% - 100% vest
pro rata
> 75% increase
100%
For the rTSR hurdle, the proportion of awards may vest in accordance with the following schedule:
rTSR Vesting Conditions
Percentage vesting
Calculated by comparing the Company’s TSR to its Peer Group based on the 20-day VWAP at 30 June 2023 to
30 June 2026.
Below 50th percentile TSR
Nil
At 50th percentile TSR
50%
50th – 75th percentile TSR
50% - 100% vest pro rata
Above 75th percentile TSR
100%
For the ESG hurdle, the proportion of awards may vest in accordance with the following schedule:
ESG Vesting Conditions
Percentage vesting
Development and material implementation of the Groups inaugural sustainability
report.
40%
Group Stakeholder Engagement Plan:
Plan Developed
Plan Implemented
10%
10%
Group Aboriginal Heritage and Native Title Engagement Plan:
Plan Developed
Plan Implemented
10%
10%
Set and deliver the Group’s diversity measures, including:
Increasing female representation (target 25% for full vesting)
Increasing Aboriginal employment in the overall workforce through the
implementation of training and development programme (target 3% for full
vesting)
10%
10%
For the ROCE hurdle, the proportion of awards may vest in accordance with the following schedule:
ROCE Vesting Conditions
Percentage vesting
ROCE calculated as EBIT expressed as a % of average total capital employed
Less than or equal to the average annual weighted average cost of capital
(WACC) over the three-year period commencing on 1 July 2023
0%
WACC + 2.5%
50%1
WACC + between 2.5% and 6%
50% to 100% pro rata
WACC + 6%
100%
1 If threshold is not achieved (WACC + 2.5%), the outcome will be Nil with no provision for pro-rata.
When do the awards expire?
Awards will become exercisable and may vest subject to performance over a three-year Performance Period. Awards
will expire one year after the conclusion of the Performance Period.
What happens to the awards at
cessation of employment?
If an Executive ceases to be a Genesis employee as a Good Leaver, the employee will retain vested Awards and will
retain the relevant pro-rata portion of incentives with the balance to lapse. All unvested Awards lapse in Bad Leaver
circumstances, with any other treatment subject to Board discretion.
What happens to the awards in
the event of a Change of Control?
In the event of a change of control, only the relevant pro-rata portion of the unvested incentives would vest if a
Change of Control were to occur, with the balance being subject to Board discretion.
5.4 Once-Off Issue of Strategic Growth Retention Rights
Following shareholder approval (in relation to the Managing Director), Executive KMP were issued with once-off, longer term Strategic Growth
Retention Rights, linked to measures aligned with shareholder returns, to ensure that the Company retains all Executives who collectively play a
critical role in the delivery of results and shareholder returns, over the long-term (and in concert with the five-year strategic plan). Approval at the
REMUNERATION REPORT
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Genesis Minerals Limited – Annual Financial Report
November 2023 AGM of this once-off issue, triggered a reduction in the Managing Director’s fixed remuneration from $900,000 to $750,000 per
annum exclusive of superannuation.
The Strategic Growth Retention Rights were issued in two tranches:
•
Tranche 1 being measured against a performance period between 1 July 2023 to 30 June 2027 (i.e. 4 years).
•
Tranche 2 will be measured against a performance period between 1 July 2023 to 30 June 2028 (i.e. 5 years).
Vesting of the Strategic Growth Retention Rights will be based on the achievement of Board-approved targets and ongoing employment. These
targets essentially form a scorecard of growth-specific measures and are represented below, together with their split weights and vesting
parameters:
Scorecard for Tranche 1: 4 -year performance period and Tranche 2: 5 -year performance period
Category
Weighting
Vesting Parameters
Calculated by comparing the Company’s 20-day VWAP on 30 June 2027 and 30 June 2028 to the equity raise issue price associated with the St Barbara
Leonora Asset Acquisition.
Share Price Growth
25%
• Below 20% increase: 0% vest
• >20% to 40% increase: 0% to 50% vest pro rata
• >40% to 75% increase: 50% to 100% vest pro rata
• >75% increase: 100% vest
Calculated by comparing the Company’s TSR to its Peer Group based on the 20-day VWAP on 30 June 2027 and 30 June 2028 vs the equity raise issue
price associated with the St Barbara Leonora Asset Acquisition.
Relative TSR Growth
25%
• Below 50th percentile: 0% vest
• 50th to 75th percentile: 50% to 100% vest pro rata
• >75th percentile: 100% vest
Measured by comparing the relevant Reserve Statements at 30 June 2023 to 30 June 2027 and 30 June 2028.
Reserve Growth
25%
• Negative growth: 0% vest
• Depletion replaced: 50% vest
• Depletion replaced to a 20% increase: 50 to 100% vest pro rata
• >20% increase: 100% vest
Measured by comparing St Barbara’s Leonora production for FY23 to the Company’s production in FY27 and FY28.
Production Growth
25%
• Production increase <75%: 0% vest
• Production increase 75% to 100%: 0% to 50% vest pro rata
• Production increase 100% to 150%: 50% to 100% vest pro rata
• Production increase >150%: 100% vest
6.
FY24 Executive Remuneration Outcomes
Company Financial Performance over the past five years
The table and graphs below, set out the Company’s Financial Performance for the past five years, up to and including the current financial year.
Statutory key performance indicators of Genesis over the last five years
2020
2021
2022
2023
2024
Gold & Silver Sales ($'000)
-
-
-
76,963
428,820
Net profit / (loss) after tax ($’000)
(5,851)
(16,350)
(46,354)
(117,231)
82,829
Basic earnings per share (cents)
(7.43)
(8.46)
(18.38)
(29.56)
7.74
Share Price at End of Year ($)
0.52
0.68
1.265
1.305
1.755
Undiluted Market Capitalisation at
End of Year ($’000)
70,614
144,591
319,078
1,342,587
1,968,993
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71
The above financial performance measures have improved materially, as the Company evolved from being an exploration company to a gold
production company. Over the last year, the Company has moved from a net loss to a net profit after tax and our undiluted market capitalisation
as at year end was ~$2.0bn. The significant market capitalisation growth has resulted in the Company being added to the ASX 200.
6.1 Fixed Remuneration
The People & Culture Committee together with the Board, regularly reviews Executive remuneration levels against other peer companies and
market comparators, based on a number of factors such as market capitalisation, sector, jurisdiction, number of operations and stage of operations.
Over the last Financial Year, the Company has grown exponentially from a market capitalisation standpoint and as noted above, the Company
had deliberately set the Executive’s KMP well below market remuneration relative to other comparative ASX 200 listed gold mining entities, whilst
the strategy was bedded down. Following the successful implementation of the building blocks for the Leonora organic growth strategy, a
recalibration of remuneration was required to align with the shifting scope, complexity and demand of each Executive role.
The Board will continue to monitor remuneration levels and appropriate remuneration arrangements will be put in place for any new appointments
in line with the Company’s remuneration strategy.
Executive KMP
Position
2024 Total Fixed
Remuneration1
2023 Total Fixed
Remuneration1
Current members
Raleigh Finlayson
Managing Director / Chief Executive Officer
$777,500
$300,000
Morgan Ball
Chief Financial Officer
$577,500
$110,500
Matt Nixon2
Chief Operating Officer
$527,500
Nil2
Troy Irvin
Corporate Development Officer
$352,500
$110,500
Lee Stephens
General Manager, Laverton Operations
$387,500
$110,500
1 Total Fixed Remuneration p.a consists of base salary + superannuation as at 30 June 2024 and where applicable, excludes remuneration received whilst appointed, on an interim
basis, as a Non-Executive Director of Dacian (ASX: DCN) whilst DCN was an ASX listed company.
2 Matt Nixon commenced employment on 1 August 2023 as General Manager, Leonora Operations and was promoted to COO effective 29 April 2024.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2020
2021
2022
2023
2024
Gold & Silver Sales ($'000)
-150,000
-100,000
-50,000
0
50,000
100,000
2020
2021
2022
2023
2024
Net profit / (loss) after tax ($’000)
-35
-30
-25
-20
-15
-10
-5
0
5
10
2020
2021
2022
2023
2024
Basic EPS per share (cents)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2020
2021
2022
2023
2024
Undiluted Market Capitalisation at End of
Year ($’000)
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72
Genesis Minerals Limited – Annual Financial Report
6.2 Short Term Incentive
In FY24, the STI Gateways associated to safety and environment were both achieved, and in accordance with the assessment approach,
performance achievement attained relating to the KPIs as outlined in section 5.2, resulted in a 67% STI outcome for Executive KMP.
The STI Award is pro-rated based on length of service and time in role where there has been a change during the performance period.
STI Outcomes by Executive KMP
Overall STI outcomes for FY24 (paid in August 2024) are outlined below:
Performance Outcome
/ Achievement
Incentive Outcomes
Executive KMP
Group Scorecard
(% of maximum
achieved)
Target STI
Opportunity ($)
Maximum STI
Opportunity ($)
% of maximum
STI earned
% of maximum
STI forfeited
Total STI
Payment ($)
Cash
Raleigh Finlayson
67%
$777,500
$777,500
67%
33%
$520,925
Morgan Ball
$288,750
$288,750
67%
33%
$193,462
Matt Nixon
$196,9791
$196,979
67%
33%
$131,976
Troy Irvin
$176,250
$176,250
67%
33%
$118,087
Lee Stephens
$193,750
$193,750
67%
33%
$129,812
TOTAL
$1,094,262
1 Matt Nixon’s STI target opportunity and outcome is pro-rated based on length of service and relevant time in both GM and COO roles accordingly.
6.3 Long Term Incentive
Performance Rights issued in FY22 vested in FY24 following completion of the acquisition of the Leonora Operations from St Barbara Limited
(ASX: SBM). For KMP, 5,200,000 vested into shares, and 3,200,000 of these shares are escrowed until the June quarter of FY25. The fair value
of the Performance Rights that vested into shares for KMP is $9,380,000.
There were no LTIs issued in FY23 and no further LTI plans were due to vest in FY24 or FY25. Details of the vesting outcomes for current “on-
foot” LTI plans which have a performance period ending in the future will be outlined in future Remuneration Reports.
Please refer to Section 9 – Statutory Tables and Additional Disclosures for further details regarding details relating to Options, Performance Rights,
Strategic Growth Retention Rights (once-off) and Share Rights granted and/ or issued to KMP.
7.
FY24 Non-Executive Director Remuneration
The Board is responsible for ensuring that NED fee arrangements are appropriate and comparable, relative to companies of a similar size,
complexity and industry.
7.1
Policy Fees
The Company’s NED fee policy is designed to support the attraction, retention and engagement of the high calibre of NEDs required to support
management and the Company in setting and delivering its strategic objectives.
Board and Committee fees were reviewed and benchmarked against industry and ASX peer data, taking into consideration the rapid growth, size
and complexity of the Company. To align with market practice, the Board approved a number of changes to Board and Committee fees that were
applied effective 1 January 2024 as follows:
Policy fees are summarised in the table below:
Board and Committee Fees per annum1
Chair2
Member
2024 (effective 1/1/24)
2023
2024 (effective 1/1/24)
2023
Board3
$200,000
$140,000
$130,000
$80,000
Audit and Finance Committee4
$15,000
Nil
$7,500
Nil
Exploration and Growth Committee5
$15,000
Nil
$7,500
Nil
People and Culture Committee6
$15,000
Nil
$7,500
Nil
Risk and Sustainability Committee7
$15,000
Nil
$7,500
Nil
1 Board and Committee fees are inclusive of statutory Superannuation.
2 The Chair of the Board does not receive additional Committee fees.
3 Non-Executive Directors can elect to receive a portion of their director fees as Share Rights, see section 7.2.
4 The Audit and Finance committee was newly constituted in FY24 and was borne out of the Audit, Risk and Sustainability Committee.
5 The Exploration and Growth Committee was newly constituted in FY24.
6 The Remuneration and Nomination Committee was renamed in FY24 to the People and Culture Committee.
7 The Risk and Sustainability Committee was newly constituted in FY24 and was borne out of the Audit, Risk and Sustainability Committee.
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Genesis Minerals Limited – Annual Financial Report
73
7.2 NED Share Rights Plan
A NED Share Rights Plan has also been introduced which provides the Board with the ability to issue NED Share Rights and align with shareholder
interests. These Rights can be granted via a NED fee sacrifice provision. For NEDs who have fulfilled a full year of service, up to $40,000 of NED
Chair Fees can be sacrificed and up to $30,000 of NED Member Fees1 may be received in Share Rights.
7.3 Minimum Shareholding Policy
A Minimum Shareholding Requirement applies for Non-Executive Directors1, where both the Chair and the Non-Executive Directors are required
to hold 50% of their NED base fee in shares. This requirement needs to be achieved within three years of the date of commencement as a Director,
based on the value paid for the holding, at the time of the acquisition.
1Jacqueline Murray was appointed as Non-Executive Director on 1 July 2023. She is an employee of Resource Capital Funds Management LLC, manager of Resource Capital Fund
VII L.P. (“RCF VII”). RCF VII is a shareholder in Genesis Minerals Limited and Jacqueline is therefore prohibited from personally owning shares in Genesis.
Details regarding Share Rights granted to NEDs in FY24 are outlined in Section 9: Statutory Remuneration Tables and Additional Disclosures.
8.
Planned Remuneration for FY25
During FY24 the Committee and Board reviewed the Executive Remuneration Framework which included input and feedback from selected market
data, as well as shareholders and proxy advisors.
Generally, no material changes are planned for Executive KMP remuneration arrangements for FY25 in line with the Company’s remuneration
strategy and the focus on delivering outcomes to maximise shareholder returns and employee rewards.
Remuneration
Element
FY25 Approach
Total Fixed
Remuneration
Total fixed remuneration will remain generally consistent with FY24 with no material increases planned for Executive
KMP.
STI
The Company has confirmed the FY25 STI KPIs with the majority of the FY24 KPIs retained with the addition of a fifth
KPI, Strategic Delivery.
This new KPI has a weighting of 20% and has been added to promote accountability and commitment to the achievement
of our key growth deliverables relating to our five-year strategic plan.
Weightings pertaining to the KPIs have been adjusted to accommodate the additional KPI and to place greater focus on
critical targets essential to business success.
The maximum STI target opportunity for Executive KMP is unchanged from FY24 (refer to section 5.2).
The metrics and associated weightings for FY25 STI are as follows:
KPI
Objectives
Weighting
Gateway for any STI to be considered: - No fatalities & No catastrophic environmental event
KPI 1 (25%):
License to Operate
• Safety
• Environment
• Critical Risk management program implemented & leaders complete
control verifications
o
50-75% compliance – 50%1 - 80% (pro rata)
o
75-85% compliance – 80% - 100% (pro rata)
o
>85% compliance – 100%
1 Below 50% compliance – Nil outcome
• Reduction of TRIFR
o
Decrease by up to 5% - 50% (pro rata)
o
Decrease by >5-10% - 50% - 100% (pro rata)
o
Decrease by >10% - 100%
• No serious Environmental regulatory non-compliance
o
Recorded non-compliance is managed with no regulatory action
– 70%1
o
Compliance with license conditions – 100%
1 If this threshold is not achieved then – Nil outcome
10%
7.5%
7.5%
KPI (25%):
Production
• Gold Recovered (Target set at Budget)
o
Stretch: Budget +7.5% - 100% (pro rata)
o
Threshold: Budget -7.5% - 50%1
1 If this threshold is not achieved then – Nil outcome
25%
REMUNERATION REPORT
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Genesis Minerals Limited – Annual Financial Report
KPI 3 (25%): AISC
• AISC (Target set at Budget)
o
Stretch: Budget -$100/oz - 100% (pro rata)
o
Threshold: Budget +$100/oz - 50%1
1 If this threshold is not achieved then – Nil outcome
25%
KPI 4 (10%):
Net Cash Balance
• Net Cash (Target set at Budget)
o
Stretch: Budget +7.5% - 100% (pro rata)
o
Threshold: Budget -7.5% - 50%1
1 If this threshold is not achieved then – Nil outcome
10%
KPI 5 (15%):
Projects
• Progressing growth opportunities (5% allocation each, no pro-rata)
o
Commence mining at Hub Open Pit in line with targeted Qtr in
Budget
o
Restart Laverton Mill in line with targeted Qtr in Budget
o
First stope production at Ulysses Underground in line with
targeted Qtr in Budget
15%
LTI
The Company’s FY25 LTI KPIs, measures and outcomes continue to focus on and promote accountability and commitment
to the achievement of our key growth deliverables related to our five-year strategic plan and beyond.
The performance measurement period is 1 July 2024 to 30 June 2027.
The maximum LTI target opportunity for Executive KMP is unchanged from FY24 (refer to section 5.3).
The metrics and associated weightings for FY25 LTI are as follows:
Measure
Vesting Conditions
Weighting
Shareholder Returns (40%)
Absolute Share Price
Calculated by comparing 20-Day VWAP at 30 June 2027 to 20-day VWAP at 30
June 2024.
• Below 20% increase – Nil vest
• 20% to 35% increase – 0 to 50% vest (pro-rata)
• 35% to 60% increase – 50% to 100% vest (pro-rata)
• >60% increase – 100% vest
20%
Relative TSR
Calculated by comparing GMD TSR from 1 July 2024 to 30 June 2027 to Peer
Group TSR (see Peer Group below).
• Below 50th % – Nil vest
• At 50th % – 50% vest
• 50th to 75th % – 50% to 100% vest (pro-rata)
• >75th % - 100% vest
20%
Financial performance
(20%)
EPS
If cumulative EPS growth (from 30 June 2024 to 30 June 2027) is:
• Negative – Nil vest
• Up to 5% p.a. growth over measurement period – 50% vest (pro-rata)
• 5% to 10% p.a. growth over measurement period – 50% to 100% vest
(pro-rata)
• >10% p.a. growth over measurement period – 100% vest
20%
Strategy Delivery (30%)
Production
Cumulative 5YP target refers to GMD 5YP released to ASX on 21 March 2024 for
the 3-year period from FY25 to FY27
• Below cumulative 5YP target – Nil vest
• Achieve cumulative 5YP target – 50% vest
• Up to 10% above cumulative 5YP target – 50 to 100% vest (pro-rata)
• >10% above cumulative 5YP target – 100% vest
10%
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Genesis Minerals Limited – Annual Financial Report
75
AISC
Cumulative 5YP target refers to GMD 5YP released to ASX on 21 March 2024 for
the 3-year period from FY25 to FY27
• >5% higher than 5YP target – Nil vest
• Within 5% higher to 5YP target – up to 50% vest (pro-rata)
• Up to 5% lower than 5YP target – 50 to 100% vest (pro-rata)
• >5% lower than 5YP target – 100% vest
10%
Reserves
Reserve calculation based on GMD R&R Update released to ASX on 21 March
2024.
• Negative movement – Nil vest
• Depletion replacement – 50% vest
• Depletion replacement + 10% uplift – 50 to 100% vest (pro-rata)
• Depletion replacement + >10% uplift – 100% vest
10%
ESG (10%)
Diversity
• Increase Indigenous employment by 5 to 10% - 50 to 100% vest (pro rata)
• Increase below 5% - Nil vest
• Increase # of females employed in Superintendent (or equivalent) positions
or above by 10 to 20% - 50 to 100% vest (pro rata)
• Increase below 10% - Nil vest
2.5%
2.5%
Community
• Increase $ spend with majority owned indigenous businesses by 10 to 20%
- 50 to 100% vest (pro rata)
• Increase below 10% - Nil vest
5%
The FY25 Peer Companies for the Relative TSR measure:
#
Company
ASX
#
Company
ASX
1
Bellevue
BGL
6
Pantoro
PNR
2
Capricorn
CMM
7
Ramelius
RMS
3
Catalyst
CYL
8
Regis
RRL
4
Ora Banda
OBM
9
Red 5
RED
5
Gold Road
GOR
10
Westgold
WGX
Performance Rights to be granted to Executive KMP in respect of the 2025 financial year (FY25 Performance Rights)
will be offered pursuant to the Genesis Equity Incentive Plan Rules approved by the Board and Shareholders.
NED Fees
Board and Committee fees were reviewed and benchmarked against industry and ASX peer data in January 2024.
Further monitoring of market trends and review of NED fees will be carried out annually to ensure NED remuneration
remains fair and competitive.
The NED Share Rights Plan, which provides the Board with the ability to issue NED Share Rights and align with
shareholder interests, will continue in FY25 as per the conditions set out and explained under 7.2 of this report.
REMUNERATION REPORT
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Genesis Minerals Limited – Annual Financial Report
9.
Statutory Remuneration Tables and Additional Disclosures
9.1: Statutory Remuneration Table of FY24 KMP remuneration for the year ended 30 June 2024
The following table sets out a consolidated total remuneration view for Executive KMP in FY24 and FY23, calculated in accordance with statutory accounting requirements.
1 Amortised value of equity settled share based payments for issue of share rights (FY24) and options (FY23). Remuneration in the form of options is no longer offered to Non-Executive Directors. Options were last issued in FY22 before Genesis was added to the ASX
200.
2 Anthony Kiernan appointed as Non-Executive Chair on 1 October 2022. Short-Term remuneration for FY23 includes $17,128 received from Dacian Gold Limited for the period he was appointed as Non-Executive Director from 28 September 2022 to 28 February 2023.
3 Gerard Kaczmarek – Cash fees includes $23,333 (FY23: $13,487) received from Dacian Gold Limited for the period he was appointed as Non-Executive Director from 28 February 2023 to 9 February 2024.
4 Karen Lloyd appointed as Non-Executive Director on 1 April 2024.
5 Jacqueline Murray appointed as Non-Executive Director on 1 July 2023.
6 Michael Wilkes appointed as Non-Executive Director on 1 October 2022. Short-Term remuneration for FY23 includes $37,500 received from Dacian Gold Limited for the period he was appointed as Non-Executive Chair from 1 July 2022 to 28 September 2022.
7 Thomas McKeith resigned as Non-Executive Chair on 30 September 2022.
8 Neville Power resigned as Non-Executive Director on 30 September 2022.
9 Jacqueline Murray is an employee of RCF Management LLC, manager of Resource Capital Fund VII L.P. (“RCF VII”). RCF VII is a shareholder in Genesis Minerals Limited and Jacqueline is therefore prohibited from personally owning shares in Genesis. Karen Lloyd
was not eligible to apply for FY24 NED Share Rights.
KMP
Year
Short term
benefits
Post- employment
benefits
Name
Cash
fees
Superannuation
Share-based
payments1,9
Total
Proportion of remuneration
represented by share based
payments
NED
$
$
$
$
Anthony Kiernan2
FY24
135,135
14,865
20,000
170,000
11.8%
(Chair)
FY23
112,150
11,776
-
123,926
-%
Michael Bowen
FY24
91,216
10,034
15,000
116,250
12.9%
FY23
62,518
6,564
582,978
652,060
89.4%
Gerard Kaczmarek3
FY24
114,550
12,600
15,000
142,150
10.6%
FY23
76,005
7,980
3,656
87,641
4.2%
Karen Lloyd4
FY24
25,901
2,849
-
28,750
-%
FY23
-
-
-
-
-%
Jacqueline Murray5
FY24
104,785
2,643
-
107,428
-%
FY23
-
-
-
-
-%
Michael Wilkes6
FY24
101,250
-
15,000
116,250
12.9%
FY23
97,500
3,750
-
101,250
-%
Thomas McKeith7
FY24
-
-
-
-
-%
FY23
13,699
1,438
6,058
21,195
28.6%
Neville Power8
FY24
-
-
-
-
-%
FY23
9,041
-
582,978
592,019
98.5%
77
Genesis Minerals Limited – Annual Financial Report
KMP
Year
Short term benefits
Post-
employment
benefits
Name
Cash
salary
Bonus
payment
Other
benefits1
Superannuation
Movement in leave
provisions2
Short term
incentive3
Long term
incentive4
Total Rem
Package (TRP)
$
Variable
Remuneration as %
of TRP
Executive KMP
$
$
$
$
$
$
%
Raleigh Finlayson
(MD/CEO)
FY24
812,500
-
7,947
27,500
30,497
520,925
1,129,086
2,528,455
65.3%
FY23
272,727
-
7,545
27,273
18,305
-
4,957,705
5,283,555
93.8%
Morgan Ball5
(CFO)
FY24
574,800
-
7,947
28,600
74,602
193,462
1,801,484
2,680,895
74.4%
FY23
130,462
-
7,545
24,198
7,825
100,000
1,153,641
1,423,671
88.1%
Matt Nixon6
(COO)
FY24
384,366
176,250
1,295
27,500
45,601
131,976
468,506
1,235,494
48.6%
FY23
-
-
-
-
-
-
-
-
-
Troy Irvin7
(CDO)
FY24
349,800
-
-
28,600
38,648
118,087
1,531,677
2,066,812
79.8%
FY23
106,666
-
-
21,700
9,998
100,000
1,153,641
1,392,005
90.1%
Lee Stephens8
(GM, Laverton)
FY24
342,500
-
1,942
27,500
33,978
129,812
1,161,677
1,697,409
76.1%
FY23
124,103
-
1,350
23,531
7,654
100,000
769,094
1,025,732
84.7%
1 Other benefits consist of provision of car parking.
2 Consists of movement in annual leave and long service leave provisions recognised in accordance with the Company’s leave policies.
3 67% of maximum STI opportunity achieved for FY24. Payment will be made in FY25.
4 Amortised value of equity settled share based payments for issue of Performance Rights and Strategic Growth Retention Rights. Raleigh Finlayson’s FY22 performance rights were fully expensed during FY23, as there was no retention requirement attached. In
contrast, the FY22 performance rights for Morgan Ball, Troy Irvin, and Lee Stephens are being expensed over a three-year retention period.
5 Morgan Ball – Cash salary for FY24 includes director fees of $24,800 (FY23: $30,462) and superannuation for FY24 includes $1,100 (FY23: $3,198) received from Dacian Gold Limited for the period he was appointed as Non-Executive Director from 28 September
2022 to 9 February 2024. Short term incentive for FY23 consists of Business Development bonus for execution of Leonora consolidation strategy involving Dacian Gold and St Barbara.
6 Matt Nixon – appointed as General Manager, Leonora Operations on 1 August 2023 and promoted to Chief Operating Officer effective 29 April 2024. A sign-on retention bonus of $176,250 was paid in June 2024.
7 Troy Irvin - Cash salary for FY24 includes director fees of $24,800 (FY23: $6,666) and superannuation for FY24 includes $1,100 (FY23: $700) received from Dacian Gold Limited for the period he was appointed as Non-Executive Director from 2 May 2023 to 9
February 2024. Short term incentive for FY23 consists of Business Development bonus for execution of Leonora consolidation strategy involving Dacian Gold and St Barbara.
8 Lee Stephens - Cash salary for FY23 includes director fees of $24,103 and superannuation for FY23 includes $2,531 received from Dacian Gold Limited for the period he was appointed as Non-Executive Director from 28 September 2022 to 2 May 2023. Short term
incentive for FY23 consists of Business Development bonus for execution of Leonora consolidation strategy involving Dacian Gold and St Barbara.
DIRECTORS’ REPORT
78
Genesis Minerals Limited – Annual Financial Report
9.2: Equity Instrument Disclosures
Share Holdings
The number of shares in the Company held during the financial year by each Director of Genesis and other KMP of the Group are set out below:
Year
Balance at start
of year
Exercise of
options
Exercise of
Performance
Rights
Other changes
Balance at end of
year
Non-Executive Directors
Anthony Kiernan1
2024
192,987
-
-
75,000
267,987
2023
-
-
-
192,987
192,987
Michael Bowen2
2024
944,099
430,556
-
-
1,374,655
2023
861,112
-
-
82,987
944,099
Gerard Kaczmarek3
2024
430,468
64,609
-
-
495,077
2023
388,974
-
-
41,494
430,468
Karen Lloyd
2024
-
-
-
-
-
2023
-
-
-
-
-
Jacqueline Murray9
2024
-
-
-
-
-
2023
-
-
-
-
-
Michael Wilkes4
2024
-
-
-
168,067
168,067
2023
-
-
-
-
-
Executive KMP
Raleigh Finlayson5
(MD/CEO)
2024
13,885,432
6,027,779
2,000,000
(2,000,000)
19,913,211
2023
12,055,556
-
1,000,000
829,876
13,885,432
Morgan Ball6
(CFO)
2024
1,348,007
301,390
1,200,000
(150,000)
2,699,397
2023
602,779
-
600,000
145,228
1,348,007
Matt Nixon
(COO)
2024
-
-
-
-
-
2023
-
-
-
-
-
Troy Irvin7
(CDO)
2024
1,410,247
301,390
1,200,000
(311,637)
2,600,000
2023
602,778
-
600,000
207,469
1,410,247
Lee Stephens8
(GM, Laverton)
2024
663,031
2,235
800,000
(100,000)
1,365,266
2023
138,550
-
400,000
124,481
663,031
Total
2024
18,874,271
7,127,959
5,200,000
(2,318,570)
28,883,660
Total
2023
14,649,749
-
2,600,000
1,624,522
18,874,271
1 Anthony Kiernan – “Other changes” in FY24 consists of 75,000 shares purchased on market.
2 Michael Bowen – “Exercise of options” in FY24 consist of the exercise of 430,556 free attaching options issued in FY22 for participation in a share placement and entitlement offer.
3 Gerard Kaczmarek – “Exercise of options” in FY24 consists of the exercise of 58,334 options issued in FY21 and 6,275 free attaching options issued in FY22 for participation in a
share placement and entitlement offer.
4 Michael Wilkes - “Other changes” consists of 168,067 shares purchased on market during FY24.
5 Raleigh Finlayson - “Exercise of options” in FY24 consist of the exercise of 6,027,779 free attaching options issued in FY22 for participation in a share placement and entitlement
offer. “Other changes” in FY24 consists of 2,000,000 shares sold on market.
6 Morgan Ball - “Exercise of options” in FY24 consist of the exercise of 301,390 free attaching options issued in FY22 for participation in a share placement and entitlement offer.
Shares received on the exercise of Performance Rights in FY23 and FY24 are subject to an ongoing 3-year escrow period. “Other changes” in FY24 consists of 150,000 shares
sold on market.
7 Troy Irvin - “Exercise of options” in FY24 consist of the exercise of 301,390 free attaching options issued in FY22 for participation in a share placement and entitlement offer.
Shares received on the exercise of Performance Rights in FY23 and FY24 are subject to an ongoing 3-year escrow period. “Other changes” in FY24 consists of 311,637 shares
sold on market.
8 Lee Stephens - “Exercise of options” in FY24 consist of the exercise of 2,235 free attaching options issued in FY22 for participation in a share placement and entitlement offer.
Shares received on the exercise of Performance Rights in FY23 and FY24 are subject to an ongoing 3-year escrow period. “Other changes” in FY24 consists of 100,000 shares
sold on market.
9 Jacqueline Murray is an employee of RCF Management LLC, manager of Resource Capital Fund VII L.P. (“RCF VII”). RCF VII is a shareholder in Genesis Minerals Limited and
Jacqueline is therefore prohibited from personally owning shares in Genesis.
DIRECTORS’ REPORT
Genesis Minerals Limited – Annual Financial Report
79
Option Holdings
NED Option Holdings related to historical transactions prior to the Company’s admission to the ASX 200. Options are no longer issued to NEDs.
The number of options over ordinary shares in the Company held during the financial year by each Director of Genesis and other KMP of the
Group are set out below:
Year
Balance at
start of year
Granted as
remuneration
Exercised
during period
Lapsed or
cancelled
Balance at
end of year
Vested and
exercisable
Non-Executive Directors
Anthony Kiernan
2024
-
-
-
-
-
-
2023
-
-
-
-
-
-
Michael Bowen
2024
1,930,556
-
(430,556)
-
1,500,000
1,500,000
2023
1,930,556
-
-
-
1,930,556
1,930,556
Gerard Kaczmarek
2024
122,943
-
(64,609)
-
58,334
58,334
2023
122,943
-
-
-
122,943
122,943
Karen Lloyd
2024
-
-
-
-
-
-
2023
-
-
-
-
-
-
Jacqueline Murray
2024
-
-
-
-
-
-
2023
-
-
-
-
-
-
Michael Wilkes
2024
-
-
-
-
-
-
2023
-
-
-
-
-
-
Executive KMP
Raleigh Finlayson
(MD/CEO)
2024
30,527,779
-
(6,027,779)
-
24,500,000
24,500,000
2023
30,527,779
-
-
-
30,527,779
30,527,779
Morgan Ball
(CFO)
2024
841,390
-
(301,390)
-
540,000
540,000
2023
841,390
-
-
-
841,390
841,390
Matt Nixon
(COO)
2024
-
-
-
-
-
-
2023
-
-
-
-
-
-
Troy Irvin
(CDO)
2024
841,390
-
(301,390)
-
540,000
540,000
2023
841,390
-
-
-
841,390
841,390
Lee Stephens
(GM, Laverton)
2024
242,235
-
(2,235)
-
240,000
240,000
2023
242,235
-
-
-
242,235
242,235
Total
2024
34,506,293
-
(7,127,959)
-
27,378,334
27,378,334
Total
2023
34,506,293
-
-
-
34,506,293
34,506,293
The options disclosed in the above table were issued in FY22 and prior years at various exercise prices. No further options have been issued.
Details of the options granted in previous years which are amortised and included in FY23 remuneration (FY24: nil) for KMP are set out below:
KMP
Number of
Options
Issued
Grant Date
Expiry
Date
Year in
which
grant
vests
Exercise
Price
$
Fair Value
Per Option
at Grant
Date
% vested
during
FY24
% forfeited
during
FY24
%
exercised
during
FY24
Michael Bowen
1,500,000
25/11/2021
25/11/2025
2023
$1.050
$0.999
-%
-%
-%
Gerard Kaczmarek
58,334
10/12/2020
10/12/2024
2023
$1.220
$0.305
-%
-%
-%
The options disclosed in the above table were issued in FY22 and prior years before Genesis was admitted to the ASX 200. No further options have been issued. All balances,
exercise prices and fair values in the table have been restated as required for the consolidation of capital (10 to 1 basis) completed on 10 January 2022.
DIRECTORS’ REPORT
80
Genesis Minerals Limited – Annual Financial Report
Performance Rights Holdings
The number of Performance Rights held during the financial year by executive KMP of the Group are set out below:
Year
Balance at
start of
year
Granted as
remuneration1
Exercised
during period
Lapsed or
cancelled
Balance at
end of year
Vested and
exercisable
Value of Rights
Granted during
FY24
($)
Executive KMP
Raleigh Finlayson
(MD/CEO)
2024
2,000,000
1,100,000
(2,000,000)
-
1,100,000
-
1,707,420
2023
3,000,000
-
(1,000,000)
-
2,000,000
-
-
Morgan Ball2
(CFO)
2024
1,200,000
458,000
(1,200,000)
-
458,000
-
723,182
2023
1,800,000
-
(600,000)
-
1,200,000
-
-
Matt Nixon
(COO)
2024
-
418,000
-
-
418,000
-
660,022
2023
-
-
-
-
-
-
-
Troy Irvin2
(CDO)
2024
1,200,000
279,000
(1,200,000)
-
279,000
-
440,541
2023
1,800,000
-
(600,000)
-
1,200,000
-
-
Lee Stephens2
(GM, Laverton)
2024
800,000
279,000
(800,000)
-
279,000
-
440,541
2023
1,200,000
-
(400,000)
-
800,000
-
-
Total
2024
5,200,000
2,534,000
(5,200,000)
-
2,534,000
-
3,971,706
Total
2023
7,800,000
-
(2,600,000)
-
5,200,000
-
-
1 Performance Rights issued in FY24 are subject to a 3-year performance measurement period ending 30 June 2026.
2 Shares received on the exercise of Performance Rights in FY23 and FY24 are subject to an ongoing 3-year escrow period.
Share Rights Holdings
The number of share rights held during the financial year by Non-Executive Directors of Genesis are set out below:
Year
Balance at
start of
year
Granted as
remuneration1
Exercised
during period
Lapsed or
cancelled
Balance at
end of year
Vested and
exercisable2
Value of Rights
Granted during
FY24
($)
Non-Executive Directors
Anthony Kiernan
2024
-
11,100
-
-
11,100
11,100
20,000
2023
-
-
-
-
-
-
-
Michael Bowen
2024
-
8,325
-
-
8,325
8,325
15,000
2023
-
-
-
-
-
-
-
Gerard Kaczmarek
2024
-
8,325
-
-
8,325
8,325
15,000
2023
-
-
-
-
-
-
-
Karen Lloyd3
2024
-
-
-
-
-
-
-
2023
-
-
-
-
-
-
-
Jacqueline Murray4
2024
-
-
-
-
-
-
-
2023
-
-
-
-
-
-
-
Michael Wilkes
2024
-
8,325
-
-
8,325
8,325
15,000
2023
-
-
-
-
-
-
-
Total
2024
-
36,075
-
-
36,075
36,075
65,000
Total
2023
-
-
-
-
-
-
-
1 Non-Executive Directors were issued with share rights in FY24 in lieu of receiving director fees for the 6-month period 1 January 2024 to 30 June 2024.
2 Non-Executive Director share rights are not subject to performance conditions. The share rights are subject to a service-based vesting condition and automatically vest at the end
of the financial year provided the relevant Non-Executive Director remains as a director.
3 Karen Lloyd was not granted share rights in FY24 due to only being appointed to the Board effective 1 April 2024.
4 Jacqueline Murray is an employee of RCF Management LLC, manager of Resource Capital Fund VII L.P. (“RCF VII”). RCF VII is a shareholder in Genesis Minerals Limited and
Jacqueline is therefore prohibited from personally owning shares in Genesis.
Once-Off Strategic Growth Retention Rights
Further to receiving shareholder approval (in relation to the Managing Director) at the Company’s November 2023 AGM, the number of Strategic
Growth Retention Rights held during the financial year by executive KMP of the Group are set out below:
DIRECTORS’ REPORT
Genesis Minerals Limited – Annual Financial Report
81
Year
Balance at
start of
year
Granted as
remuneration1
Exercised
during period
Lapsed or
cancelled
Balance at
end of year
Vested and
exercisable
Value of Rights
Granted during
FY24
($)
Executive KMP
Raleigh Finlayson2
(MD/CEO)
2024
-
3,220,000
-
-
3,220,000
-
5,030,445
2023
-
-
-
-
-
-
-
Morgan Ball
(CFO)
2024
-
2,000,000
-
-
2,000,000
-
2,816,250
2023
-
-
-
-
-
-
-
Matt Nixon
(COO)
2024
-
1,220,000
-
-
1,220,000
-
1,717,913
2023
-
-
-
-
-
-
-
Troy Irvin
(CDO)
2024
-
1,220,000
-
-
1,220,000
-
1,717,913
2023
-
-
-
-
-
-
-
Lee Stephens
(GM, Laverton)
2024
-
1,220,000
-
-
1,220,000
-
1,717,913
2023
-
-
-
-
-
-
-
Total
2024
-
8,880,000
-
-
8,880,000
-
13,000,434
Total
2023
-
-
-
-
-
-
-
1 Strategic Growth Retention Rights issued in FY24 are subject to 4 and 5-year performance measurement periods ending 30 June 2027 and 30 June 2028.
2 Raleigh Finlayson – annual base salary was reduced from $900,000 to $750,000 following the grant of the Strategic Growth Retention Rights.
9.3: Loans to Directors or other KMP
There were no loans to directors or key management personnel during the year. (2023: nil).
9.4: Other Transactions and Balances with Key Management Personnel and Director-related entities
Key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over
the financial or operating policies of these entities.
One of these entities transacted with the Group in the reporting period. The terms and conditions of the transactions with key management
personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on
similar transactions to non-key management personnel related entities on an arm’s length basis.
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control
or significant influence were as follows:
Transaction Value
Balance outstanding as at
Key Management
Person
Transaction
2024
$
2023
$
30 June 2024
$
30 June 2023
$
Michael Bowen1
Legal Fees
86,409
1,103,772
5,765
3,699
1 Payable to Thomson Geer, a law firm in which Michael Bowen is a partner. Balance outstanding represents the amount of work performed but not invoiced until after the end of the
financial year.
9.5: Voting and Comment Made on the Group’s 2023 Annual General Meeting
The Company received 99.01% of “yes” votes on its remuneration report for the 2023 financial year. The Company did not receive any specific
feedback at the AGM or throughout the year on its remuneration practices.
DIRECTORS’ REPORT
82
Genesis Minerals Limited – Annual Financial Report
END OF REMUNERATION REPORT.
Signed in accordance with a resolution of the Directors made pursuant to S.298(2) of the Corporations Act 2001.
On behalf of the Directors,
DATED at Perth this 29th day of August 2024
Mr. Michael Bowen
People and Culture Committee Chair
29 August 2024
To the Board of Directors
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead audit director for the audit of the financial statements Genesis Minerals LimitedACN 124 772 041for the financial year
ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
•
any applicable code of professional conduct in relation to the audit.
Yours faithfully
HALL CHADWICK WA AUDIT PTY LTD
D M BELL CA
Director
Dated this 29th day of August 2024
Perth, Western Australia
84
Genesis Minerals Limited – Annual Financial Report
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
Note
Consolidated
30 June
2024
$’000
30 June
2023
$’000
Revenue
3
438,593
76,963
Cost of goods sold
4
(346,741)
(91,065)
Gross profit / (loss)
91,852
(14,102)
Corporate employee expenses
4
(14,373)
(5,066)
Share-based employee expenses
22
(10,603)
(11,257)
Borrowing and finance costs
4
(6,912)
(1,531)
Interest income
6,562
2,741
Exploration and growth
14
(14,704)
(25,991)
Other expenses
4
(11,860)
(51,965)
Asset write down
(1,701)
-
Loss on revaluation of investment in subsidiary
4
-
(10,060)
Profit / (Loss) before income tax
38,261
(117,231)
Income tax benefit
5
44,568
-
Net profit / (loss) for the period after tax
82,829
(117,231)
Attributable to:
Equity holders of the parent
83,996
(111,769)
Non-controlling interests
(1,167)
(5,462)
82,829
(117,231)
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in the fair value of cash flow hedges at fair value through other
comprehensive income
21
(357)
-
Other comprehensive income for the period, net of tax
(357)
-
Total comprehensive profit / (loss) for the period attributable to the
members of the parent entity
82,472
(117,231)
Attributable to:
Equity holders of the parent
83,639
(111,769)
Non-controlling interests
(1,167)
(5,462)
82,472
(117,231)
Proft/ (Loss) per share attributable to ordinary equity holders of
Genesis Minerals Limited:
Basic earnings per share (cents per share)
6
7.74
(29.56)
Diluted earnings per share (cents per share)
6
7.43
(29.56)
Genesis Minerals Limited – Annual Financial Report
85
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Note
Consolidated
30 June
2024
$’000
30 June
2023
$’000
Restated *
Current assets
Cash and cash equivalents
9
171,290
181,538
Receivables
10
11,886
3,348
Inventories
11
41,596
27,381
Total current assets
224,772
212,267
Non-current assets
Investments
86
-
Property, plant and equipment
12
280,867
266,439
Right-of-use assets
13
12,791
8,884
Exploration and evaluation assets
14
287,874
236,442
Mine properties
15
356,093
294,356
Derivative financial instruments
20
1,824
-
Deferred tax assets
5
44,721
-
Total non-current assets
984,256
806,121
Total assets
1,209,028
1,018,388
Current liabilities
Trade and other payables
16
87,282
66,226
Provisions
17
4,903
4,157
Borrowings
18
12,928
4,341
Total current liabilities
105,113
74,724
Non-current liabilities
Provisions
17
77,926
84,852
Borrowings
18
32,275
6,987
Derivative financial instruments
20
2,333
-
Total non-current liabilities
112,534
91,839
Total liabilities
217,647
166,563
Net assets
991,381
851,825
Equity
Issued capital
21
1,132,546
1,011,428
Reserves
21
(11,918)
40,051
Accumulated losses
(129,247)
(213,243)
Equity attributable to equity holders of the parent
991,381
838,236
Non-controlling interests
-
13,589
Total equity
991,381
851,825
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
*Refer to Note 8. Comparatives have been restated in accordance with provisional requirements of AASB3.
86
Genesis Minerals Limited – Annual Financial Report
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Note
Consolidated
Issued
capital
$’000
Share-
based
payments
Reserve
$’000
Transactions
with non-
controlling
interests
reserve
$’000
Fair Value
through other
comprehensive
income Reserve
$’000
Accumulated
losses
$’000
Total
$’000
Non-
controllin
g interests
$’000
Total equity
$’000
Balance at 1 July 2022
100,045
30,067
-
-
(101,474)
28,638
-
28,638
Loss for the year
-
-
-
-
(111,769) (111,769)
(5,462)
(117,231)
Other comprehensive
income
-
-
-
-
-
-
-
-
Total comprehensive loss
for the year
-
-
-
-
(111,769) (111,769)
(5,462)
(117,231)
Shares issued
21
921,832
-
-
-
-
921,832
-
921,832
Share issue costs
21
(10,449)
-
-
-
-
(10,449)
-
(10,449)
Share-based payments
expense
22
-
11,257
-
-
-
11,257
-
11,257
Non-controlling interests
arising on a business
combination
8
-
-
-
-
-
-
41,846
41,846
Acquisition of non-
controlling interests
8
-
-
(1,273)
-
-
(1,273)
(22,795)
(24,068)
Balance at 30 June 2023
1,011,428
41,324
(1,273)
(213,243)
838,236
13,589
851,825
Balance at 1 July 2023
1,011,428
41,324
(1,273)
-
(213,243)
838,236
13,589
851,825
Profit for the year
-
-
-
-
83,996
83,996
(1,167)
82,829
Other comprehensive loss
-
-
-
(357)
-
(357)
-
(357)
Total comprehensive profit
for the year
-
-
-
(357)
83,996
83,639
(1,167)
82,472
Shares issued
21
129,666
-
(73,533)
-
56,133
-
56,133
Share issue costs
21
(9,652)
-
-
-
(9,652)
-
(9,652)
Share-based payments
expense
22
1,104
9,499
-
-
10,603
-
10,603
Acquisition of non-
controlling interests
21
-
-
12,422
-
12,422
(12,422)
-
Balance at 30 June 2024
1,132,546
50,823
(62,384)
(357)
(129,247)
991,381
-
991,381
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
Genesis Minerals Limited – Annual Financial Report
87
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
Note
Consolidated
30 June
2024
$’000
30 June
2023
$’000
Cash flows from operating activities
Gold sales
428,286
80,374
Interest received
6,259
2,442
Other income
550
414
Interest paid
(2,830)
(50)
Payments for exploration and growth
(14,365)
(28,103)
Payments to suppliers and employees
(281,658)
(92,653)
Net cash inflow/ (outflow) from operating activities
9
136,242
(37,576)
Cash flows from investing activities
Payments for exploration and evaluation assets
(22,534)
(4,519)
Payments for mine properties expenditure
(92,252)
(6,182)
Payments for Leonora working capital adjustments
(13,864)
Payments for plant and equipment
(49,769)
(4,618)
Proceeds from disposal of assets
1,510
9
Payments to acquire investments
(150)
-
Acquisition of subsidiary, net of cash acquired
-
26,665
Payment for acquisition of Leonora operations from St Barbara Limited
-
(371,658)
Net cash (outflow) from investing activities
(177,059)
(360,303)
Cash flows from financing activities
Proceeds from issue of share capital
12,571
566,328
Share issue transaction costs
(1,973)
(580)
Repayment of borrowings
-
(200)
Proceeds from borrowings
24,399
-
Transaction costs associated with borrowings
-
(8)
Repayment of lease liabilities
(4,428)
(2,242)
Net cash inflow from financing activities
30,569
563,298
Net (decrease)/ increase in cash and cash equivalents
(10,248)
165,419
Cash and cash equivalents at the beginning of the period
9
181,538
16,119
Cash and cash equivalents at the end of the period
9
171,290
181,538
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
88
Genesis Minerals Limited – Annual Financial Report
Note 1
Summary of Material Accounting Policies
This note provides a list of the material accounting policies adopted in the preparation of these consolidated financial statements to the extent
they have not already been disclosed in the other notes below. These policies have been consistently applied to all the years presented, unless
otherwise stated. The consolidated financial statements are for the Group consisting of Genesis Minerals Limited and its subsidiaries.
(a) Reporting Entity
Genesis Minerals Limited (“Genesis” or the “Company”) is a company limited by shares, incorporated and domiciled in Australia, whose shares
are publicly traded on the Australian Securities Exchange.
A description of the nature of operations and principal activities of Genesis and its subsidiaries (collectively, the “Group”) is included in the Directors’
Report, which is not part of these financial statements.
(b) Basis of Preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian
Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International Financial
Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB).
The financial statements were authorised for issue in accordance with a resolution of the Directors on 29 August 2024.
Historical cost convention
These financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial
assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and derivative financial
instruments.
Functional and presentation currency
The financial statements are presented in Australian dollars, which is Genesis’ functional and presentation currency.
Rounding of Amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission,
relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand
dollars ($’000) unless otherwise stated.
New and amended accounting standards and policies adopted by the Group
The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
(‘AASB’) that are mandatory for the current period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Accounting Standards issued but not yet effective
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 30
June 2024 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are not expected
to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions
Critical accounting estimates
The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires management to exercise
its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in notes.
(c) Goods and Services Tax (“GST”) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax
authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable
to, the tax authority is included in other receivables or other payables in the statement of financial position.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
89
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable
from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
(d) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities (subsidiaries) at year end is
contained in Note 24.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
Adjustments are made to bring into line any dissimilar accounting policies that may exist.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profits and losses
resulting from intra-group transactions have been eliminated. Subsidiaries are consolidated from the date on which control is obtained to the date
on which control is disposed. The acquisition of subsidiaries is accounted for using the acquisition method of accounting.
(e) Other Accounting Policies
Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial
statements, are provided throughout the notes to the financial statements. Where possible, wording has been simplified to provide clearer
commentary on the financial report of the Group. Accounting policies determined non-significant are not included in the financial statements.
The Notes to the Financial Statements
The notes include information which is required to understand the financial statements and is material and relevant to the operations and the
financial position and performance of the Group. Information is considered relevant and material if, for example:
•
the amount is significant due to its size or nature;
•
the amount is important for understanding the results of the Group;
•
it helps to explain the impact of significant changes in the Group’s business; or
•
it relates to an aspect of the Group’s operations that is important to its future performance.
•
The notes are organised into the following sections:
•
Performance for the year;
•
Operating assets and liabilities;
•
Capital structure and risk.
Other disclosures.
A brief explanation is included under each section.
Performance for the Year
This section of the notes provides further information on key line items relevant to the financial performance of the Group. It includes profitability,
the resultant return to shareholders via earnings per share and dividends.
Note 2
Segment Information
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors in assessing
performance and determining the allocation of resources.
Reportable segments disclosed are based on one operating segment. The Group’s sole activity is mineral production, exploration and development
of mineral interests in the Leonora and Laverton regions (which is in close proximity to each other), wholly within Australia. Given the Company
strategy and location of the assets, all key operational decisions in relation to the different assets are made from a consolidated perspective. This
encourages production efficiencies and costs saving as well as the ongoing realisation of synergies that cannot be realised if the operational
decisions are considered in isolation. Therefore, the Company has aggregated all operating segments into the one reportable segment being
mineral production, exploration and development.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
90
Genesis Minerals Limited – Annual Financial Report
Note 3
Revenue
Accounting Policies
Gold Sales
Under AASB 15, revenue is recognised when a customer obtains control of the goods or services. Determining the timing of the transfer of control
requires judgement. With the sale of gold bullion, this occurs when physical bullion, from a contracted sale, is transferred from the Company’s
account into the account of the buyer.
30 June
2024
$’000
30 June
2023
$’000
Revenue from contracts with customers
Gold Sales
428,286
76,752
Silver Sales
534
211
Toll Milling Revenue
9,773
-
438,593
76,963
Gold forward contracts delivery commitments
During the financial year, Genesis policy allowed it to enter into gold forward sale contracts to manage the gold price of a proportion of gold sales.
The treatment of forward sale contracts is discussed further below.
The forward sale contracts are settled by the physical delivery of gold as per the contract terms. The gold forward sale contracts are accounted
for as gold sales contracts with revenue recognised once the gold has been delivered to the counterparties. Consistent with the gold sales revenue
recognition policy, the physical gold delivery contracts are considered to sell a non-financial item and therefore do not fall within the scope of
AASB 9: Financial Instruments. Refer to Note 23 for information on forward sale contracts.
Note 4
Expenses
Accounting Policies
Costs of production
Costs of production is a component of cost of goods sold and includes direct costs incurred for mining, processing and mine site administration,
net of costs capitalised to mine properties, pre-strip and production stripping assets. This category also includes movements in the cost of
inventory.
30 June
2024
$’000
30 June
2023
$’000
Cost of goods sold
Costs of production
252,820
65,974
Ore purchase
15,555
-
Royalties
17,106
1,626
Depreciation of mine plant and equipment
47,278
21,585
Amortisation of mine properties
26,067
1,880
Change in inventories
(12,085)
-
346,741
91,065
Depreciation & Amortisation
Depreciation is calculated on units of production, straight-line or written down value basis over the estimated useful life of the assets as follows:
Class of Fixed Asset
Useful Life
Office equipment and fixtures
3 - 5 years
Computer equipment & software
2 - 5 years
Motor Vehicles
3 - 5 years
Plant and equipment
3 - 10 years / units of production
Buildings
3 - 15 years
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
91
Note 4
Expenses
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
Mine properties are amortised on a unit-of-production basis over the reserve of the relevant mining area. The unit of account is tonnes of ore
mined.
Employee expenses
Corporate Employee expenses
Salaries and wages
9,978
3,309
Director fees and consulting expenses
701
432
Superannuation
1,088
493
Other employment expenses
2,606
832
14,373
5,066
Borrowing and finance costs
Unwind of rehabilitation and restoration provision discount
3,402
1,213
Transaction costs
380
37
Interest expense on borrowings
3,130
281
6,912
1,531
Other expenses
Other expenses
Costs associated with Dacian takeover and acquisition of Leonora operations
from St Barbara1
-
43,307
Administration & corporate
9,256
8,030
Loss on sale of assets
1,686
-
Non-production depreciation
918
628
11,860
51,965
1 Costs include ~$32 million for estimated stamp duty on the acquisition of the Leonora operations.
Loss on revaluation of investment in subsidiary
Loss on remeasurement of the carrying value of the pre-control interest held in
Dacian Gold Limited using the closing share price of Genesis Minerals at the
date of control on 21 September 2022 of $0.965
-
10,060
-
10,060
Key estimates and assumptions
Unit-of-production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating / amortising life-of-mine specific assets which results in a depreciation /
amortisation charge proportionate to the depletion of the anticipated remaining life-of-mine production. Each item’s economic life, which is
assessed annually, has due regard for both its physical life limitations and to present assessments of the available reserve of the mine property
at which it is located.
Borrowings and finance costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets
30 June
2024
$’000
30 June
2023
$’000
Depreciation and Amortisation
Depreciation expense – recognised in cost of goods sold
47,278
21,585
Depreciation expense – other
918
628
Amortisation expense
26,067
1,880
74,263
24,093
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
92
Genesis Minerals Limited – Annual Financial Report
that necessarily take a substantial period of time to get ready for their use or sale. Other borrowing costs are expensed in the period in which
they are incurred.
Note 5
Income tax
Accounting Policy
Current Tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognised for temporary timing differences at the tax rates expected to apply when the assets are recovered
or liabilities are settled, based on those tax rates which are enacted or substantially enacted for each jurisdiction. The relevant tax rates are
applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is
made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised
in relation to those timing differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not
affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts
will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in
controlled entities where the parent is able to control the timing of the reversal of the temporary differences and it is probable that the differences
will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
Key Estimates and Assumptions
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Group’s future taxable income
against which the deferred tax assets can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic
limits or uncertainties in various tax jurisdictions.
To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax
assets recorded at the reporting date could be impacted. Additionally, future changes in the tax laws in Australia could limit the ability of the Group
to obtain tax deductions in future periods.
(a)
Tax Expense
30 June
2024
$’000
30 June
2023
$’000
Current tax expense
-
-
Deferred tax expense
17,020
-
Recognition of previously unrecognised deferred tax assets
(61,588)
Total income tax benefit as per income statement
(44,568)
-
During the year the Group performed an assessment to identify its carry forward tax losses and assessed the ability to utilise these losses in
accordance with tax law. Accordingly, during the year Genesis recognised a deferred tax asset as it was deemed probable that they will be able
to be utilised against future taxable profits.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
93
(b)
Numerical Reconciliation Between Tax Expense and Pre-Tax Net Profit or (Loss)
30 June
2024
$’000
30 June
2023
$’000
Net profit/ (loss) before tax
38,261
(117,231)
Corporate tax rate applicable
30%
30%
Income tax expense/(benefit) on above at applicable corporate rate
11,478
(35,169)
Increase/(decrease) in income tax due to tax effect of:
Share based payments
3,180
3,377
Non-deductible expenses
2,354
3,057
Current year tax losses not recognised
-
15,462
Donations
8
289
Movement in unrecognised temporary differences
(61,588)
13,629
Deductible equity raising costs
-
(645)
Income tax (benefit) reported in Profit or Loss and Other Comprehensive Income
(44,568)
-
(c)
Deferred Tax Assets and Liabilities
30 June 2023
$’000
Charged / credited to
income
$’000
Charged / credited to
equity
$’000
30 June 2024
$’000
Deferred tax assets
Inventories
-
701
-
701
Mine properties
(3,737)
28,506
-
24,769
Investments
-
19
-
19
Derivatives
-
-
152
152
Provisions
6,942
18,101
-
25,043
Other payables
(194)
208
-
14
Borrowings
382
(382)
-
-
Leases
-
4,080
-
4,080
Tax losses
-
55,373
-
55,373
Borrowing costs
-
114
-
114
‘s40-880 costs
545
2,064
-
2,609
Other
19
(19)
-
-
Total
3,957
108,765
152
112,874
Deferred tax liabilities
Property, plant and equipment
(6,341)
(55,216)
-
(61,557)
Exploration
2,384
(8,980)
-
(6,596)
Total
(3,957)
(64,196)
-
(68,153)
Net deferred tax asset
-
44,569
152
44,721
Deferred tax liabilities are set-off against deferred tax assets pursuant to set-off provisions.
Tax consolidation
The Company and its 100% owned controlled entities have formed a tax consolidated group. The head entity of the tax consolidated group is
Genesis Minerals Limited. Members of the tax consolidated group have entered into a tax sharing agreement that provides for the allocation of
income tax liabilities between the entities should the head entity default on its tax payment obligations. No amounts have been recognised in the
financial statements in respect of this agreement on the basis that the possibility of default is remote.
Members of the tax consolidated group have entered into a tax funding agreement which specifies the manner in which the head entity charges
a group liability to members of the consolidated group in order to fund the ongoing group liability.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
94
Genesis Minerals Limited – Annual Financial Report
Genesis Minerals Limited recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and credits
assumed from controlled entities within the tax consolidated group.
Note 6
Earnings per Share
Accounting Policy
Earnings per share (“EPS”) is the amount of post-tax profit attributable to each share. The Group presents basic and diluted EPS data for ordinary
shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period.
Diluted EPS takes into account the dilutive effect of all potential ordinary shares, being unlisted employee share options and performance rights
on issue.
30 June
2024
30 June
2023
Cents
Cents
a) Basic earnings per share
7.74
(29.56)
Cents
Cents
b) Diluted earnings per share
7.43
(29.56)
c) Profit/ (Loss) used in calculation of basic and diluted loss per share
$’000
$’000
Profit/ (Loss) after tax from continuing operations of members of the parent
83,996
(111,769)
d) Weighted average number of shares
No.
No.
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share
1,085,089,796
378,135,183
Note 7
Dividends
No dividends were paid or proposed during the financial year ended 30 June 2024 (30 June 2023: nil).
Operating Assets and Liabilities
This section of the notes shows cash generation, the assets used to generate the Group’s trading performance and the liabilities incurred as a
result. Liabilities relating to the Group’s financing activities are addressed in the Capital Structure, Financial Instruments and Risk section (refer
to Note 18).
Note 8
Business combination and acquisition of non-controlling interests
Accounting Policy
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets
are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: fair values of the assets transferred; liabilities incurred
to the former owners of the acquired business; equity interests issued by the Group; fair value of any asset or liability resulting from a contingent
consideration arrangement; and fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured
initially at their fair values at the acquisition date. The application of acquisition accounting requires significant judgement and estimates to be
made, which are discussed below. The Group engages independent third parties where required to assist with the determination of the fair value
of assets acquired, liabilities assumed, non-controlling interest, if any, and goodwill, based on recognised business valuation methodologies.
The income valuation method represents the present value of future cash flows over the life of the asset using:
•
financial forecasts, which rely on managements estimates of reserve quantities and exploration potential, costs to produce and develop
reserves, revenues, and operating expenses;
•
long-term growth rates;
•
appropriate discount rates; and
•
expected future capital requirements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
95
The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalised for any differences between the
assets.
The cost valuation method is based on the replacement cost of a comparable asset at the time of the acquisition adjusted for depreciation and
economic and functional obsolescence of the asset and estimates of residual values.
The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-
controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred.
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over the acquisition date fair value of
the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the
subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain
purchase.
If the initial accounting for the business combination is not complete by the end of the reporting period in which the acquisition occurs, an estimate
will be recorded. Subsequent to the acquisition date, but not later than one year from the acquisition date, the Group will record any material
adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition.
Acquisition of Leonora Operations from St Barbara Limited (2023)
Genesis announced on 17 April 2023 (and subsequently amended on 15 May 2023), that it had entered into a binding agreement with St Barbara
Limited (ASX:SBM) (St Barbara) to acquire St Barbara's Leonora operations in Western Australia (Leonora Acquisition). The Leonora
Acquisition included St Barbara’s Leonora assets, in addition to the acquisition of 100% of St Barbara’s shareholding in Bardoc Gold Pty Ltd.
The Leonora Acquisition replaced the previously announced scheme of arrangement with St Barbara and the scheme implementation deed
between the parties was terminated.
The consideration for the Leonora Acquisition consisted of cash of $370 million (plus adjustments for agreed working capital position) and the
issue of 205 million Genesis shares.
In connection with the Leonora Acquisition, Genesis announced a capital raising of A$470 million (before costs) at a price of A$1.15 per share via
a two-tranche placement of fully paid ordinary shares (Shares) to professional and sophisticated investors (Placement).
All necessary shareholder approvals for the Leonora Acquisition and Placement were received on 20 June 2023 and the Leonora Acquisition was
completed on 30 June 2023.
Of the 205 million shares issued to St Barbara, 203,421,818 shares were subsequently transferred to shareholders of St Barbara Limited on 11
July 2023 pursuant to a pro rata in-specie distribution.
The estimated consideration payable for the Leonora Acquisition as at the date of acquisition of 30 June 2023 was as follows:
Consideration
$’000
Cash
370,000
Working capital adjustment
15,522
Shares – 205 million valued at the closing price of Genesis on 30 June 2023 of $1.305
267,525
Total consideration
653,047
The fair value of the identifiable assets and liabilities for the Leonora Acquisition as at the date of acquisition of 30 June 2023 are set out in the
table below. The net assets recognised in the 30 June 2023 financial statements were based on a provisional assessment of their fair value in
accordance with AASB 3. Genesis had 12 months from the date of acquisition to finalise the fair value of the net assets acquired. This 12-month
period ended on 30 June 2024 and fair values have been revised following a purchase price allocation valuation process and the June 2023
comparative information has been restated to reflect the revised final fair values in accordance with the provisional accounting principles of AASB3.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
96
Genesis Minerals Limited – Annual Financial Report
Fair value recognised
on acquisition
Restated fair values
$’000
$’000
Receivables
1,419
647
Inventories
31,814
27,248
Property, plant and equipment
110,069
186,193
Right-of-use assets
1,380
1,356
Exploration and evaluation assets
156,902
198,026
Mine properties
389,978
280,699
Total assets
691,562
694,169
Provisions – employee leave liabilities
4,817
5,566
Provisions - rehabilitation
30,215
32,143
Provisions - royalty
1,523
2,057
Borrowings
1,380
1,356
Total liabilities
37,935
41,122
Total identifiable net assets at fair value
653,627
653,047
Cash flow on
acquisition
$’000
Cash paid on acquisition1
371,658
1 Cash paid to 30 June 2023 includes $1,658,000 for estimated working capital adjustment.
Acquisition of Dacian Gold Limited
On 5 July 2022, Genesis Minerals Limited (Genesis or GMD) announced its intention to acquire Dacian Gold Limited (Dacian or DCN) by way of
a unanimously recommended off-market takeover bid by Genesis for all of the fully paid ordinary shares in Dacian (Dacian Shares) (Offer).
Under the Offer, subject to the satisfaction or waiver of various conditions, Dacian Shareholders were entitled to receive 0.0843 fully paid ordinary
shares in Genesis (Genesis Shares) for every 1 Dacian Share held (Offer Consideration).
On 21 September 2022, Genesis announced it had acquired a relevant interest in a majority of the voting shares in Dacian. Accordingly, with the
Offer being unconditional, Genesis had acquired control of Dacian effective on 21 September 2022 with a relevant interest of 57.73%. Since
obtaining control, Genesis progressively increased its interest in Dacian to hold a relevant interest of 80.08% as at the Offer close date of 20
February 2023.
Genesis measured the non-controlling interest in Dacian at the proportionate share of its interest in Dacian’s identifiable net assets.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
97
The fair value of the identifiable assets and liabilities of Dacian as at the date of acquisition of 21 September 2022 were as follows:
Fair value recognised
on acquisition
$’000
Cash and cash equivalents
39,254
Receivables
2,201
Inventories
21,659
Property, plant and equipment
83,503
Right-of-use assets
9,311
Exploration and evaluation assets
17,258
Mine properties
7,215
Deferred hedging assets
1,260
Total assets
181,661
Trade and other payables
33,680
Provisions – employee leave liabilities
1,723
Provisions - rehabilitation
37,449
Borrowings
9,805
Total liabilities
82,657
Total identifiable net assets at fair value
99,004
Non-controlling interest
41,846
Purchase consideration transferred
57,158
Cash flow on
acquisition
$’000
Net cash acquired with the subsidiary
39,254
Cash paid on initial placement in Dacian
(12,589)
Net cash flow on acquisition
26,665
From 21 September 2022 to 20 February 2023, Genesis acquired an additional 22.35% interest in Dacian, increasing its ownership interest to
80.08%. The additional interest acquired in Dacian is as follows:
$’000
Purchase consideration transferred
22,795
Carrying value of additional investment in Dacian
(24,068)
Difference recognised in transactions with non-controlling interests reserve
(1,273)
The net assets recognised in the 30 June 2023 financial statements were based on a provisional assessment of their fair value in accordance with
AASB 3. Genesis had 12 months from the date of acquisition to finalise the fair values of the net assets acquired. This 12-month period ended on
21 September 2023 and fair values are now final.
The financial results of Dacian were consolidated into the Genesis group for the first time as from 21 September 2022. The acquisition of Dacian
contributed revenue of $76.9 million and a net loss of $24.8 million for the year ended 30 June 2023.
In the 2024 financial year Genesis acquired the remaining 19.92% increasing its ownership interest to 100%.
Note 9
Cash and Cash Equivalents
Accounting Policy
Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash
at bank earns interest at floating rates based on daily deposit rates.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
98
Genesis Minerals Limited – Annual Financial Report
30 June
2024
$’000
30 June
2023
$’000
Cash at bank
67,342
128,767
Short-term deposits
103,948
52,771
171,290
181,538
At 30 June 2024, $5,387,990 (30 June 2023: $4,000,000) was reserved on deposit as Restricted Cash with National Australia Bank and Westpac
Banking Corporation in respect of cash backed guarantees for supplier agreements.
There were no other amounts included in cash and cash equivalents that are held in reserve as at 30 June 2024.
Reconciliation of profit/(loss) after tax to net cash inflow/(outflow) from operating activities:
30 June
2024
$’000
30 June
2023
$’000
Profit/ (Loss) from ordinary activities after income tax
82,829
(117,231)
Depreciation and amortisation
74,263
24,093
Net loss on sale of assets
1,686
53
Assets written off
1,701
1,580
Loss on revaluation of investment in subsidiary
-
10,060
Share-based payments expense
10,603
11,257
Unwind of rehabilitation interest
3,402
1,213
Movement in assets and liabilities:
(Increase) in operating receivables
(8,216)
(3,778)
(Increase) in inventories
(14,215)
(31,949)
(Increase) in deferred tax assets
(44,722)
-
Increase in employee leave provisions
714
3,311
Increase in operating trade and other payables
28,197
63,815
Net cash inflow/(outflow) from operating activities
136,242
(37,576)
Note 10 Receivables
Accounting Policy
Receivables are initially recognised at fair value and subsequently at the amounts considered receivable (financial assets at amortised cost).
Balances within receivables do not contain impaired assets, are not past due and are expected to be received when due.
The Group does not have trade receivables in relation to gold sales. Prepayments relate to annual insurance payments. The only material
receivables at year end are for GST and fuel tax credits receivable from the Australian Taxation Office and therefore, the Group is not generally
exposed to credit risk in relation to its receivables.
Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value.
30 June
2024
$’000
30 June
2023
$’000
GST receivable
4,402
1,517
Prepayments
2,742
1,362
Other receivables
4,742
469
11,886
3,348
Note 11 Inventories
Accounting Policy
Gold bullion, gold-in-circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Cost
is determined by the weighted average method and comprises direct costs and an appropriate portion of fixed and variable overhead costs,
including depreciation and amortisation, incurred in converting ore into gold bullion. Net realisable value (“NRV”) is the estimated selling price in
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
99
the ordinary course of business (including delivery into scheduled hedges), less estimated costs of completion, depreciation, amortisation and the
costs of selling the final product, including royalties.
Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is measured on a weighted average
basis. Inventories expected to be sold (or consumed in the case of stores) within 12 months after reporting date are classified as current assets,
all other inventories are classified as non-current.
30 June
2024
$’000
30 June
2023
$’000
Ore Stockpiles(i)
16,580
2,215
Gold in circuit(i)
12,028
14,307
Mine spares and stores
12,988
10,859
41,596
27,381
(i) Carried at net realisable value.
Key Estimates and Assumptions
Inventories
Net realisable value tests are performed at each reporting date and represent the estimated future sales price of the product based on the lower
of the prevailing spot metals price or anticipated gold price realised from delivery into forward gold sales contracts at the reporting date, less
estimated costs to complete production and bring the product to sale, including depreciation and amortisation.
Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based
on assay data, and the estimated recovery percentage. Stockpile tonnages are verified by periodic surveys.
Note 12 Property, Plant and Equipment
Accounting Policy
The value of property, plant and equipment is measured as the cost of the asset, less accumulated depreciation and impairment. The cost of the
asset also includes the cost of replacing parts that are eligible for capitalisation, the cost of major inspections and an initial estimate of the cost of
dismantling and removing the item from site at the end of its useful life (rehabilitation provisions). Changes in the rehabilitation provisions resulting
from changes in the size or timing of the cost or from changes in the discount rate are also recognised as part of the asset cost.
Derecognition and disposal
An item is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no further economic benefits. Any gain or
loss from derecognising the asset (the difference between the proceeds on disposal and the carrying amount of the asset) is included in the
income statement in the period the item is derecognised.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
100
Genesis Minerals Limited – Annual Financial Report
Impairment
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the Group
makes an estimate of the asset’s recoverable amount.
There were no indications as at 30 June 2024 that an asset required impairment testing.
Office Equip
& Fixtures
$’000
Computer
Equip. &
Software
$’000
Motor
Vehicles
$’000
Plant &
Equipment
$’000
Buildings
$’000
Capital WIP
$’000
Total
$’000
Year ended 30 June 2024
Cost
925
5,529
4,472
367,922
9,794
32,380
421,022
Accumulated depreciation
(417)
(3,121)
(1,759)
(133,814)
(1,044)
-
(140,155)
Net Book Value
508
2,408
2,713
234,108
8,750
32,380
280,867
Movements
Opening net book value
1,720
1,826
866
235,762
9,572
16,693
266,439
Additions
90
990
441
44,437
-
15,687
61,645
Disposals
(7)
-
(321)
(3,318)
-
-
(3,646)
Transfers
(1,070)
498
3,044
(2,606)
163
-
29
Transfers from stores
-
-
-
198
-
-
198
Depreciation expense
(225)
(906)
(1,317)
(40,365)
(985)
-
(43,798)
Closing net book value
508
2,408
2,713
234,108
8,750
32,380
280,867
Year ended 30 June 2023
Cost - Restated
1,917
4,042
2,878
330,019
9,631
16,693
365,180
Accumulated depreciation
(197)
(2,216)
(2,012)
(94,257)
(59)
-
(98,741)
Net Book Value
1,720
1,826
866
235,762
9,572
16,693
266,439
Movements
Opening net book value
2
57
51
158
91
-
359
Acquisition of subsidiary –
Dacian Gold Limited
126
709
801
78,441
-
3,426
83,503
Acquisition of Leonora
operations from St Barbara
Limited
1,666
1,233
292
169,388
9,475
4,140
186,194
Additions
-
100
6
3,437
38
9,222
12,803
Disposals
(39)
(11)
(79)
(222)
-
(95)
(446)
Transfers from Stores
-
-
-
4,320
-
-
4,320
Depreciation expense
(35)
(262)
(205)
(19,760)
(32)
-
(20,294)
Closing net book value
1,720
1,826
866
235,762
9,572
16,693
266,439
Note 13 Right-of-Use Assets
Accounting Policy
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-
of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
101
at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
The Group has lease contracts for various items of water treatment equipment and power infrastructure used in its operations as well as the
corporate head office premises. These leases have lease terms up to 5 years. The net book value of leased assets at 30 June 2024 is $12.8
million (30 June 2023: $8.9million).
The Group also has certain leases of assets with lease terms of 12 months or less for equipment for which the assets are of low value and applies
the short-term lease and lease of low-value assets recognition exemptions.
30 June
2024
$’000
30 June
2023
$’000
Cost
29,587
21,633
Accumulated depreciation
(16,796)
(12,749)
Net book value
12,791
8,884
Movements:
Opening net book value
8,884
-
Acquisition of subsidiary – Dacian Gold Limited
-
9,311
Acquisition of Leonora operations from St Barbara Limited
-
1,356
Additions
8,599
136
Disposals
(293)
-
Depreciation expense
(4,399)
(1,919)
Closing net book value
12,791
8,884
Note 14 Exploration and Evaluation Assets
Accounting Policy
Exploration and evaluation costs are expensed in the year they are incurred, apart from acquisition costs. During the year $14.7 million was
expensed (2023: $26 million).
Capitalised exploration and evaluation expenditures in relation to specific areas of interest continue to be recognised as an exploration and
evaluation asset where the following conditions are satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii)
at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area
of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation
to, the area of interest are continuing.
Exploration and evaluation costs include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated
activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative
costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a
particular area of interest.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
102
Genesis Minerals Limited – Annual Financial Report
30 June
2024
$’000
30 June
2023
$’000
Opening carrying amount
236,442
22,017
Acquisition of subsidiary – Dacian Gold Limited
-
17,258
Acquisition of Leonora operations from St Barbara Limited
-
198,024
Acquisition of Bruno Lewis tenements from Kin Mining NL
41,829
-
Acquisition of Raeside tenements from Kin Mining NL
14,808
-
Additions – acquisition of mineral tenements
35
9
Capitalisation of royalties
1,999
-
Acquisition of vendor royalty
-
6,500
Transfer to mine development – Admiral Project
-
(7,312)
Transfer to mine development – Ulysses Project
(7,239)
-
Disposals
-
(54)
Closing net book value
287,874
236,442
Impairment
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration
and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (or the cash generating
unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss
(if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation
asset is tested for impairment and the balance is then reclassified to mine properties in development.
There were no indications as at 30 June 2024 that an asset required impairment testing.
Key Estimates and Assumptions
Impairment of exploration and evaluation assets
The future recoverability of capitalised exploration and evaluation expenditure is dependent upon a number of factors, including whether the Group
decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact future recoverability include the level of reserves and resources, future technological changes which could impact the
cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and net assets will
be reduced in the period in which the determination is made.
Exploration commitments
The Group has certain obligations for payment of tenement rent, shire rates and to perform minimum exploration work on mineral leases held.
These obligations may vary over time, depending on the Group’s exploration programmes and priorities.
Note 15 Mine properties
Accounting Policies
Mine Properties Under Development
Mine properties under development represents the costs incurred in preparing mines for production and includes plant and equipment under
construction and operating costs incurred before normal production commences. These costs are capitalised to the extent they are expected to
be recouped through the successful exploitation of the related mining leases. Once production commences, these costs are transferred to
property, plant and equipment and mine properties, as relevant, and are depreciated and amortised using the units-of-production method based
on the estimated economically recoverable reserve to which they relate or are written off if the mine property is abandoned.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
103
Mine Properties in Production
Other mine properties represent expenditure in respect of exploration, evaluation, feasibility and pre-production operating costs incurred by the
Group previously accumulated and carried forward in mine properties under development in relation to areas of interest in which mining has now
commenced. Other mine properties are stated at cost, less accumulated amortisation and accumulated impairment losses.
Other mine properties are amortised on a unit-of-production basis over the economically recoverable reserve of the mine concerned. The unit of
account is tonnes of ore mined.
Deferred Stripping
Stripping activity costs incurred in the development phase of an open pit mine are capitalised as part of the cost of constructing the mine and
subsequently amortised over the life of the mine on a units-of-production basis.
Stripping activity incurred during the production phase of a mine is assessed as to whether the benefit accruing from that activity is to provide
access to ore that can be used to produce ore inventory, or whether it in addition provides improved access to ore that will be mined in future
periods.
To the extent that the benefit from the stripping activity is realised in the form of inventory produced, the Group accounts for those stripping activity
costs in accordance with AASB 102 Inventories. A stripping activity asset is brought to account if it is probable that future economic benefits
(improved access to that ore body) will flow to the Group, the component of the ore body for which access has been improved can be identified
and costs relating to the stripping activity can be measured reliably.
The amount of stripping activity costs that are capitalised is determined based on a comparison of the stripping ratio in the relevant period with
the life-of-mine stripping ratio. To the extent that there is a period of sustained stripping that exceeds the average life-of-mine stripping ratio, mine
waste stripping costs are capitalised to the stripping activity asset. Such capitalised costs are amortised over the life of that component on a units-
of-production basis. Changes to the life-of-mine are accounted for prospectively.
Impairment
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the Group
makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating
unit is considered impaired and is written down to its recoverable amount.
In assessing the fair value less cost of disposal, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the cash generating unit.
It is reasonably possible that the underlying metal price assumption may change which may then impact the estimated life of mine determinant
and may then require a material adjustment to the carrying value of mining plant and equipment, mining infrastructure and mining development
assets. Furthermore, the expected future cash flows used to determine the fair value less cost of disposal of these assets are inherently uncertain
and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together
with economic factors such as metal spot prices, discount rates, estimates of costs to produce reserves and future capital expenditure.
An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no
longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at the re-valued amount, in which
case the reversal is treated as a re-valuation increase.
After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value,
on a systematic basis over its remaining useful life.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
104
Genesis Minerals Limited – Annual Financial Report
There were no indications as at 30 June 2024 that an asset or CGU required impairment testing.
30 June
2024
$’000
30 June
2023
$’000
Cost
382,160
294,356
Accumulated amortisation
(26,067)
-
Net book value
356,093
294,356
Movements:
Opening carrying amount
294,356
-
Acquisition of subsidiary – Dacian Gold Limited
-
7,215
Acquisition of Leonora operations from St Barbara Limited
-
279,888
Transfer from exploration – Admiral Project
-
7,312
Transfer from exploration – Ulysses Project
7,239
Impairment
-
(1,580)
Change in rehabilitation provision
(10,098)
1,580
Additions
92,364
1,821
Asset write off
(1,701)
-
Amortisation expense
(26,067)
(1,880)
Closing net book value
356,093
294,356
Key Estimates and Assumptions
Production Stripping Costs
The Group defers advanced stripping costs incurred during the production stage of its operations. This calculation requires the use of judgements
and estimates, such as estimates of tonnes of waste to be removed over the life of the mining area and economically recoverable reserves
extracted as a result. Changes in a mine’s life and design may result in changes to the expected stripping ratio (waste to mineral reserves ratio)
and amortisation which is calculated on a units of production basis. Any resulting changes are accounted for prospectively.
Determination of mineral resources and reserves
The Group uses the concept of life-of-mine as an accounting value to determine the amortisation of mine properties in production and deferred
stripping costs. In determining life-of-mine, the Group prepares ore resource and reserve estimates in accordance with JORC Code 2012,
guidelines prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia. The estimate of these resources and ore reserves, by their very nature, require judgements,
estimates and assumptions.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves, and assumptions that are valid at the time of
estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves
and may ultimately result in reserves being restated.
Note 16 Trade and other payables
Accounting Policy
Trade and other payables are initially recognised at the value of the invoice received from a supplier and subsequently measured at amortised
cost. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and
generally paid within 30 days of recognition.
30 June
2024
$’000
30 June
2023
$’000
Trade and other payables
10,995
1,626
Accrued expenses
76,287
64,600
87,282
66,226
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
105
Note 17 Provisions
Accounting Policy
Rehabilitation and Restoration
Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with current environmental and
regulatory requirements.
Full provision is made based on the net present value of the estimated cost of restoring the environmental disturbance that has occurred up to the
reporting date. To the extent that future economic benefits are expected to arise, these costs are capitalised and amortised over the remaining
lives of mines.
Annual increases in the provision relating to the change in the net present value of the provision are recognised as finance costs. The estimated
costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances. Cost
estimates are not reduced by the potential proceeds from the sale of assets or from plant clear-up closure.
Employee Benefits
The provision for employee benefits represents annual leave and long service leave entitlements accrued by employees.
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of the employees’ services up to
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
Long service leave
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their
service up to reporting date, plus related on costs. The benefit is discounted to determine its present value and the discount rate is the yield at
the reporting date on high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations.
30 June
2024
$’000
30 June
2023
$’000
Current:
Employee leave liabilities
4,653
3,907
Royalty provision
250
250
4,903
4,157
Non-current:
Employee leave liabilities
1,744
1,774
Royalty provision
1,557
1,807
Rehabilitation provision
74,625
81,271
77,926
84,852
Provision for rehabilitation (current and non-current)
Balance at the start of the financial year
81,271
6,744
Acquisition of subsidiary – Dacian Gold Limited
-
37,449
Acquisition of Leonora operations from St Barbara Limited
-
32,143
Provisions recognised/ re-measured during the year
(10,098)
3,722
Unwinding of discount
3,452
1,213
Balance at the end of the financial year
74,625
81,271
Key Estimates and Assumptions
Rehabilitation Obligations
The provision for rehabilitation and restoration costs is based on the net present value of the estimated cost of restoring the environmental
disturbance that has occurred up to the reporting date. Significant estimates and assumptions are made in determining the provision for mine
rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include an estimate of the extent and costs
of rehabilitation activities, technological changes, regulatory changes, cost increases as compared to the inflation rates and changes in discount
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
106
Genesis Minerals Limited – Annual Financial Report
rates. These uncertainties may result in future actual expenditure differing from the amounts currently provided. Genesis engaged an independent
consultant to prepare a rehabilitation cost estimate for all the company’s projects as at 30 June 2024. The provision at reporting date represents
management’s best estimate of the present value of the future rehabilitation costs required.
Capital Structure, Financial Instruments and Risk
This section provides further information about the Group’s contributed equity, financial liabilities, related financing costs and its exposure to
various financial risks. It explains how these risks affect the Group’s financial position and performance and what the Group does to manage
these risks.
Note 18 Borrowings and Finance Costs
Accounting Policies
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of borrowings
using the effective interest rate method.
Fees paid on establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the
facility will be drawn down. In this case, the fee is deferred until the drawdown occurs and amortised over the period of the remaining facility.
Finance Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over
the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the
lease, if the lease term reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories)
in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the
interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index
or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
The Group applies the short-term lease recognition exemption to its short-term leases of equipment (i.e., those leases that have a lease term of
12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition
exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
Unwinding of discount on provisions
The unwinding of discount on provisions represents the cost associated with the passage of time. Rehabilitation provisions are recognised at the
discounted value of the present obligation to restore, dismantle and rehabilitate each mine site with the increase in the provision due to the
passage of time being recognised as a finance cost in accordance with the policy described in Note 17.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
107
30 June
2024
$’000
30 June
2023
$’000
Current:
Asset finance facility
6,289
366
Lease liabilities
6,639
3,975
12,928
4,341
Non-Current:
Asset finance facility
26,120
2,250
Lease liabilities
6,155
4,737
32,275
6,987
Asset finance facility
Genesis Minerals (Leonora) Pty Ltd, Genesis Mining Services Pty Ltd and Genesis Mining Services (SPV 1) Pty Ltd, all 100% subsidiaries of
Genesis Minerals Limited, have entered into asset finance lease facilities with Global Credit Investments Pty Ltd ($25M), Caterpillar Financial
Australia Limited ($23M) and Komatsu Australia Corporate Finance Pty Ltd ($23M) to finance the purchase of mining fleet equipment. The facilities
have a 5 -year term expiring 2028 - 2029 with a combined average interest rate of 8.73%. The interest rates are a combination of fixed and BBSY
+ margin. The facilities contain typical financial covenants and are secured over the assets acquired and are supported by a parent company
guarantee issued by Genesis Minerals Limited. The unused facility available at 30 June 2024 was $23.98 million.
Note 19 Financial Instruments
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents information about the Group’s
exposure to the specific risks, and the policies and processes for measuring and managing those risks. The Board of Directors has the overall
responsibility for the risk management framework and has adopted a Risk Management Policy.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from transactions with customers and investments.
Gold Bullion Sales
Credit risk arises from the sale of gold bullion to the Group’s customers and the risk is considered to be low.
Trade and other receivables
The nature of the business activity of the Group does not result in material trading receivables. The receivables that the Group does experience
through its normal course of business are short-term and the risk of non-recovery of receivables is considered to be low.
Other
In respect of derivative financial instruments, the Group’s exposure to credit risk arises from potential default of the counterparty, with a maximum
exposure equal to the mark-to-market of these instruments. The Group does not hold any credit derivatives to offset its credit exposure.
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level of credit risk, and as such, no
disclosures are made.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity
is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company’s reputation.
Liquidity risk is managed by monitoring its cash reserves and forecast spending. Management is cognisant of the future demands for liquid finance
resources to finance the Group’s current and future operations, and consideration is given to the liquid assets available to the Group before
commitment is made to future expenditure or investment.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting
agreements:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
108
Genesis Minerals Limited – Annual Financial Report
Carrying
amount
$’000
Contractual
cash flows
$’000
6 months or
less
$’000
6-12 months
$’000
1-2 years
$’000
2-5years
$’000
2024
Trade & other payables
10,995
10,995
10,995
-
-
-
Accrued expenses
76,287
76,287
76,287
-
-
-
Asset finance facilities
32,409
41,868
3,767
3,912
9,099
25,090
Lease liabilities
12,794
13,278
3,510
3,510
6,258
-
Derivative financial instruments
2,333
2,333
-
-
1,591
742
134,818
144,761
94,559
7,422
16,948
25,832
2023
Trade & other payables
1,626
1,626
1,626
-
-
-
Accrued expenses
64,600
64,600
31,911
32,689
-
-
Asset finance facilities
2,616
3,181
267
267
535
2,112
Lease liabilities
8,712
9,146
2,125
2,121
4,900
-
77,554
78,553
35,929
35,077
5,435
2,112
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, commodity prices and equity prices will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimising any return.
Commodity Price Risk
The Group’s exposure to commodity price risk arises largely from Australian dollar gold price fluctuations. The Group’s exposure to movements
in the gold price is managed from time-to-time through the use of Australian dollar gold forward contracts and zero cost collars. The gold forward
sale contracts do not meet the criteria of financial instruments for accounting purposes on the basis that they meet the normal purchase/sale
exemption because physical gold will be delivered into the contract. Further information relating to these forward sale contracts is included in
Note 3. No sensitivity analysis is provided for these contracts as they are outside the scope of AASB 9 Financial Instruments. The zero-cost
collars meet the criteria of financial instruments for accounting purposes and are accounted for as a cash flow hedge under AASB 9. See Note 20
for further information.
Interest rate risk
The Group’s exposure to interest rate risk mainly arises from cash holdings and borrowings which are held at variable rates. At the reporting date,
the Group had the following exposure to interest rate risk on financial instruments.
Carrying amount ($)
30 June
2024
$’000
30 June
2023
$’000
Variable rate instruments
Cash and cash equivalents
67,342
128,778
Borrowings
(23,531)
-
43,811
128,778
Foreign Currency/Equity risk
The Group’s exposure to foreign currency risk arises from ad hoc purchases in US Dollars and Yen.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss before tax by the amounts
shown below. This analysis assumes that all other variables remain constant.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
109
30 June
2024
$’000
30 June
2023
$’000
Interest Revenue
Increase 1.0%
673
129
Decrease 1.0%
(673)
(129)
Interest Expense
Increase 1.0%
235
-
Decrease 1.0%
(235)
-
Fair values
Fair values versus carrying amounts
The carrying amounts and estimated fair values of all the Group’s financial instruments recognised in the financial statements are materially the
same. The methods and assumptions used to estimate the fair value of financial instruments are disclosed in the respective notes.
Note 20 Derivative Financial Instruments
The Group has the following derivative financial instruments in the following line items in the statement of financial position:
30 June
2024
$’000
30 June
2023
$’000
Zero-cost collars
Derivative financial instruments – non-current assets (puts)
1,824
-
Derivative financial instruments – non-current liabilities (calls)
(2,333)
-
Total zero-cost collars
(509)
-
The group’s risk management strategy is to hedge against the price risk associated with fluctuations in the market price of gold for a specified
portion of the monthly production. The use of a zero-cost collar ensures a minimum price for the hedged portion while capping the potential upside.
Refer Note 21 for fair value adjustment recognised during the year.
The zero-cost collar is accounted for as a cash flow hedge. At each reporting date or when there is a significant change in circumstances that
could affect hedge effectiveness, an assessment of whether the hedge effectiveness and other criteria are still being met will be carried out.
Hedge effectiveness is calculated by the extent of offset between the cumulative changes in the fair value of the hedged item (hypothetical
derivative) attributable to the hedged risks and the cumulative changes in the fair value of the intrinsic value of the collar. Ineffectiveness is
measured as the amount of the cumulative changes in value of the hedging instrument is greater than the cumulative fair value changes in the
hedged item. The fair value changes in the intrinsic value of the zero-cost collar will be recognised as follows:
•
Effective portion: Changes in the fair value of the hedging instrument that are designated and qualify as effective hedges will be recognised
in other comprehensive income (OCI).
•
Ineffective portion: Any ineffective portion of the hedge will be recognised immediately in profit or loss.
The time value component of the zero-cost collar is not part of the hedging relationship. All subsequent movements in time value are recorded in
a separate time value reserve OCI.
The effective date of the hedging instrument is 29 May 2024 with settlement every month between October 2025 and September 2026. The
following table reflects the impact on equity and profit and loss relating to zero-cost collars as at 30 June 2024:
Total Hedging
(Loss)
recognised in
OCI
$’000
Ineffectiveness
Recognised in
Profit or Loss
$’000
Line Item in
the Statement
of Profit or
Loss
$’000
Cost of
Hedging
Recognised in
OCI
$’000
Amount
Reclassified
from OCI to
Profit or Loss
$’000
Line Item in
the Statement
of Profit or
Loss
$’000
Highly probable forecast sales
(357)
-
-
-
-
-
Year ended 30 June 2024
(357)
-
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
110
Genesis Minerals Limited – Annual Financial Report
Note 21 Issued capital and reserves
Issued Capital
30 June
2024
No.
30 June
2023
No.
30 June
2024
$’000
30 June
2023
$’000
Issued share capital
1,121,933,336
1,028,802,175
1,132,546
1,011,428
Share movements during the year
Balance at the start of the year
1,028,802,175
252,235,487
1,011,428
100,045
Acquisition of Dacian Gold Ltd
46,894,583
71,698,683
73,533
79,388
Acquire Leonora operations from St Barbara
Limited
-
205,000,000
-
267,525
Acquisition of Kin Mining NL tenements
21,917,532
-
38,500
-
Share issues
4,687,855
493,383,206
6,168
572,000
Exercise of options
12,539,523
2,909,801
12,569
2,919
Exercise of performance rights
7,091,668
3,574,998
-
-
Less takeover transaction costs
-
-
(8,685)
-
Less share issue costs
-
-
(967)
(10,449)
Balance at the end of the year
1,121,933,336
1,028,802,175
1,132,546
1,011,428
As at 30 June 2024, the Company had issued 7,553,242 shares to employees that are subject to escrow requirements. For shares that have
been issued pursuant to the exercise of vested rights, employees are required to remain employed during the escrow period to be eligible to
retain the shares (subject to Board discretion). The escrow period applies over a range of dates from April 2025 to February 2027.
Reserves
Nature and purpose of reserves
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of equity incentives issued. The movement in the reserve is reconciled as
follows:
30 June
2024
$’000
30 June
2023
$’000
Balance at the start of the year
41,324
30,067
Recognition of share-based payments for equity incentives
9,499
11,257
Balance at the end of the year
50,823
41,324
Transactions with non-controlling interest reserve
Transactions with non-controlling interests reserve is used to recognise transactions with non-controlling interests that do not result in a loss of
control. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to
reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and the
consideration paid or received is recognised in the reserve. The movement in the reserve is reconciled as follows:
30 June
2024
$’000
30 June
2023
$’000
Balance at the start of the year
(1,273)
-
Recognition of adjustment on acquisition of ownership interest in Dacian Gold Limited (refer
Note 8)
(61,111)
(1,273)
Balance at the end of the year
(62,384)
(1,273)
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve is used to recognise the effective portion of gains or losses on derivatives that are
designated and qualify as cash flow hedges. The movement in the reserve is reconciled as follows:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
111
30 June
2024
$’000
30 June
2023
$’000
Balance at the start of the year
-
-
Loss arising on changes in fair value of zero-cost collar – time value reserve
(700)
-
Gain arising on changes in fair value of zero-cost collar designated as cash flow hedges
191
-
Tax effect on fair value of hedge
152
-
Balance at the end of the year
(357)
-
Total Reserves
30 June
2024
$’000
30 June
2023
$’000
Share based payments reserve
50,823
41,324
Transactions with non-controlling interests reserve
(62,384)
(1,273)
Fair value through other comprehensive income reserve
(357)
-
Balance at the end of the year
(11,918)
40,051
Other Disclosures
This section provides information on items which require disclosure to comply with Australian Accounting Standards and other regulatory
pronouncements.
Note 22 Share-Based Payments
Accounting Policy
The Group has adopted an Equity Incentive Plan together with a Tax Exempt Share Plan to assist in the reward, retention and motivation of
employees. These plans were approved by a resolution of the shareholders of the Company on 27 November 2023. Equity incentives in the form
of shares, options and rights are issued to eligible participants (equity-settled transactions).
The cost of these equity-settled transactions is measured by reference to the fair value of the equity instruments at the date at which they are
granted. The fair value is determined by using an appropriate valuation model.
The fair value of shares issued under the Tax Exempt Share Plan is measured using the Company’s 5 trading day volume weighted average
share price prior to grant date.
The fair value of options is determined by using option pricing models depending on the nature of the vesting conditions. The valuation relies on
the use of certain assumptions. If the assumptions were to change, there may by an impact on the amounts reported. For ordinary shares which
are traded on the stock exchange, the fair value is determined by reference to the closing price of the security on the measurement date. The
value of the options is allocated to the Statement of Profit or Loss over the vesting period.
The fair value of rights is measured as follows:
•
for performance hurdles that are subject to market-based vesting conditions, the fair value has been determined by using a Monte Carlo
simulation model; and
•
for performance hurdles that are subject to non-market vesting conditions, the fair value has been determined by using a Black-Scholes
formula where the value of the rights is equal to the Company’s share price at the grant date, less an adjustment for the dividends foregone
(if any) during the performance period.
The valuation of rights relies on the use of certain assumptions. If the assumptions were to change, there may by an impact on the amounts
reported. The value of the rights is allocated to the Statement of Profit or Loss over the vesting period.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the underlying
Shares to which the equity instrument relates (market and non-vesting conditions) if applicable. The cost of equity-settled transactions is
recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled,
ending on the date on which the relevant employees become fully entitled to the award (the vesting period).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
112
Genesis Minerals Limited – Annual Financial Report
Non-market vesting conditions, including service-based vesting conditions, are taken into account when considering the number of rights expected
to vest. At the end of each reporting period, the Group revises its estimate of the number of performance rights which are expected to vest based
on the non-market vesting conditions. Revisions to the prior period estimate are recognised in profit or loss and equity.
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects:
•
the extent to which the vesting period has expired; and
•
the Group’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market-based performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The statement of profit or loss charge or credit for a period represents the movement in cumulative
expense recognised as at the beginning and end of that period.
No expense is recognised for share-based incentives that do not ultimately vest, except for incentives where vesting is only conditional upon
market and non-vesting conditions.
If the terms of a share-based incentive are modified, as a minimum, an expense is recognised as if the terms had not been modified. In addition,
an expense is recognised for any modification that increases the total fair value of the incentive, or is otherwise beneficial to the employee, as
measured at the date of modification.
If a share-based incentive is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the
award is recognised immediately. However, if a new award is substituted for the cancelled incentive and designated as a replacement award on
the date that it is granted, the cancelled incentive and new awards are treated as if they were a modification of the incentive, as described in the
previous paragraph.
The expense recognised for share-based payments is as follows:
30 June
2024
$’000
30 June
2023
$’000
Expense to recognise the movement in the fair value of options and performance rights
9,499
11,257
Other
1,104
-
Total share-based payments expense
10,603
11,257
Options and Rights
At the discretion of the Board, eligible participants may be issued with options or rights.
Each option or right issued converts into one ordinary share of Genesis Minerals Limited on exercise. No amounts are paid or payable by the
recipient on receipt of the option or right. Options and performance rights neither carry rights to dividends nor voting rights. Options may be
exercised at any time from the date of vesting to the date of their expiry by paying the exercise price. Rights may be exercised at any time once
the relative performance hurdle has been satisfied prior to expiry date.
Nil options were issued during the year (2023: nil). 213,335 options were exercised during the year (2023: 155,001), nil options lapsed during the
year (2023: nil) and nil options expired (2023: nil).
Details of the options on issue during the current and previous year are set out below:
Grant Date
Expiry Date
Fair Value at
Valuation Date
Exercise
Price
Number Issued
30 June 2024
Number Vested
and Exercisable at
30 June 2024
Number Issued
30 June 2023
Number Vested
and Exercisable at
30 June 2023
10/12/20
10/12/23
$0.270
$1.140
-
-
213,335
213,335
25/11/21
25/11/24
$0.938
$1.050
12,250,000
12,250,000
12,250,000
12,250,000
10/12/20
10/12/24
$0.305
$1.220
213,335
213,335
213,335
213,335
25/11/21
25/11/25
$0.999
$1.050
12,250,000
12,250,000
12,250,000
12,250,000
25/11/21
25/11/25
$0.999
$1.050
3,000,000
3,000,000
3,000,000
3,000,000
11/04/22
11/04/26
$1.082
$2.240
1,420,000
1,420,000
1,420,000
1,420,000
09/05/22
09/05/26
$0.675
$2.240
150,000
150,000
150,000
150,000
Total
29,283,335
29,283,335
29,496,670
29,496,670
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
113
The movement in options on issue during the current and previous year is reconciled as follows:
Number of
Options
Weighted Average
Exercise Price
Weighted
Average
Contractual Life
(days)
Options outstanding at 30 June 2022
29,651,671
$1.115
1,087
Issued during the year
-
-
-
Exercised during the year
(155,001)
$1.060
-
Expired during the year
-
-
-
Lapsed during the year
-
-
-
Options outstanding at 30 June 2023
29,496,670
$1.115
727
Issued during the year
-
-
-
Exercised during the year
(213,335)
$1.140
-
Expired during the year
-
-
-
Lapsed during the year
-
-
-
Options outstanding at 30 June 2024
29,283,335
$1.115
365
Details of the rights on issue during the current and previous year are set out below:
Description
Year of
Grant
Measurement
Date
Weighted Average
Fair Value Per Right
at Grant Date
Number of rights
30 June 2024
No.
Number of rights
30 June 2023
No
Performance Rights
2022
Vested Jul 23
$1.719
-
7,091,668
Performance Rights
2024
30 June 2026
$1.573
5,325,000
-
Strategic Growth Retention Rights
- Tranche 1
2024
30 June 2027
$1.468
6,646,000
-
- Tranche 2
2024
30 June 2028
$1.492
6,862,000
-
NED Share Rights
2024
30 June 2024
$1.802
36,075
-
Relocation Share Rights
- Tranche 1
2024
30 June 2024
$1.905
27,000
-
- Tranche 2
2024
30 June 2025
$1.905
27,000
-
Total
18,923,075
7,091,668
The movement in rights on issue during the current and previous year is reconciled as follows:
30 June
2024
No.
30 June
2023
No.
Rights outstanding at the start of the year
7,091,668
10,825,000
Issued during the year
19,019,825
-
Exercised during the year
(7,091,668)
(3,608,331)
Cancelled on cessation of employment
(96,750)
(125,001)
Rights outstanding at the end of the year
18,923,075
7,091,668
Performance Rights
During the financial year, 5,421,750 performance rights were issued (2023: nil), valued at $8,530,928 (2023: $nil), 7,091,668 were exercised
during the year (2023: 3,608,331), 96,750 were cancelled on cessation of employment (2023: 125,001) and nil expired (2023: nil). 5,325,000
performance rights remain on issue at 30 June 2024.
The performance rights issued during the financial year have a three-year measurement period from 1 July 2023 to 30 June 2026. The performance
rights will only vest if the employee remains employed during the measurement period and the following performance measures are met:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
114
Genesis Minerals Limited – Annual Financial Report
Performance Category
Weighting
Vesting Parameter
Share Price Growth
20%
o
Below 20% increase - 0% vest
o
>20% to 40% increase - 0% to 50% vest pro rata
o
>40% to 75% increase - 50% to 100% vest pro rata
o
>75% increase - 100% vest
Relative Total Shareholder Return (TSR)
Growth
20%
o
Below 50th percentile - 0% vest
o
At 50th percentile - 50% vest
o
>50th to 75th percentile – 50% to 100% vest pro rata
o
>75th percentile - 100% vest
Environmental, Social, Governance
(ESG)
30%
o
Development and material implementation of the Group’s inaugural Sustainability
Report – 40% vest
o
Group Stakeholder Engagement Plan:
o
Plan developed - 10% vest
o
Plan implemented – 10% vest
o
Group Aboriginal Heritage & Native Title Engagement Plan:
o
Plan developed - 10% vest
o
Plan implemented – 10% vest
o
Set & deliver the Group’s diversity measures:
o
Increasing female representation - 10% vest
o
Increasing aboriginal employment in the workforce through the
implementation of training & development programs – 10% vest
Return on Capital Employed (ROCE)
30%
o
Below the average annual weighted average cost of capital (WACC) over the
performance period - 0% vest
o
WACC plus 2.5% - 50% vest
o
WACC plus 2.5% to 6% - 50% to 100% vest pro rata
o
Above WACC + 6% - 100% vest
The peer group for Relative TSR assessment is as follows:
Company
ASX Code
Company
ASX Code
1.
Bellevue
BGL
7.
Ora Banda
OBM
2.
Calidus
CAI
8.
Ramelius
RMS
3.
Capricorn
CMM
9.
Red 5
RED
4.
De Grey
DEG
10.
Regis
RRL
5.
Evolution
EVN
11.
Silver Lake
SLR
6.
Gold Road
GOR
12.
Westgold
WGX
Details of the performance rights that vested and were exercised into shares during the year are set out below:
Performance Hurdle
Number of
Performance
Rights Vested
Delineation of a JORC Code 2012 Ore Reserve of a minimum of 1,000,000 oz of gold
3,574,999
First production of gold by the GMD Group
3,516,669
Total Vested
7,091,668
Strategic Growth Retention Rights
During the financial year, 13,508,000 once-off longer term strategic growth retention rights were issued (2023: nil), valued at $19,993,965 (2023:
$nil). During the year, nil were exercised, cancelled or expired (2023: nil). 13,508,000 strategic growth retention rights remain on issue at 30 June
2024.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
115
The strategic growth retention rights were issued in two tranches. Tranche 1 has a four-year measurement period from 1 July 2023 to 30 June
2027 and Tranche 2 has a five-year measurement period from 1 July 2023 to 30 June 2028. The strategic growth retention rights will only vest if
the employee remains employed during the respective measurement periods and the following performance measures are met:
Performance Category
Weighting
Vesting Parameter
Share Price Growth
25%
o
Below 20% increase - 0% vest
o
>20% to 40% increase - 0% to 50% vest pro rata
o
>40% to 75% increase - 50% to 100% vest pro rata
o
>75% increase - 100% vest
Relative TSR Growth
25%
o
Below 50th percentile - 0% vest
o
50th to 75th percentile - 50% to 100% vest pro rata
o
>75th percentile - 100% vest
Reserve Growth
25%
o
Negative growth - 0% vest
o
Depletion replaced - 50% vest
o
Depletion replaced to a 20% increase - 50 to 100% vest pro rata
o
>20% increase - 100% vest
Production Growth
25%
o
Production increase <75% - 0% vest
o
Production increase 75% to 100% - 0% to 50% vest pro rata
o
Production increase 100% to 150% - 50% to 100% vest pro rata
o
Production increase >150% - 100% vest
The peer group for Relative TSR assessment is as follows:
Company
ASX Code
Company
ASX Code
1.
Bellevue
BGL
7.
Ora Banda
OBM
2.
Calidus
CAI
8.
Ramelius
RMS
3.
Capricorn
CMM
9.
Red 5
RED
4.
De Grey
DEG
10.
Regis
RRL
5.
Evolution
EVN
11.
Silver Lake
SLR
6.
Gold Road
GOR
12.
Westgold
WGX
Non-Executive Director (NED) Share Rights
During the financial year, 36,075 NED share rights were issued (2023: nil), valued at $64,989 (2023: $nil). During the year, nil were exercised,
cancelled or expired (2023: nil).
The NED share rights were issued in lieu of non-executive directors receiving director fees for the 6-month period from 1 January 2024 to 30 June
2024. The NED share rights will only vest if the relevant non-executive director remains in their position as non-executive director on 30 June
2024. 36,075 NED share rights were subsequently exercised into shares in July 2024.
Relocation Share Rights
During the financial year, 54,000 relocation share rights were issued (2023: nil), valued at $102,854 (2023: $nil). During the year, nil were
exercised, cancelled or expired (2023: nil).
The relocation share rights were issued in two tranches. The relocation share rights will only vest if the relevant employee remains employed at
the respective dates of 30 June 2024 and 30 June 2025. 27,000 relocation share rights were subsequently exercised into shares in July 2024.
Tax Exempt Shares
During the financial year, 153,242 shares were issued to eligible employees under the Company’s Tax Exempt Share Plan (2023: nil), valued at
$193,000 (2023: $nil). The shares are subject to a 3 year escrow period ending 22 February 2027.
Fair Value of Rights Issued
The fair value of rights issued during the year has been determined using the following inputs:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
116
Genesis Minerals Limited – Annual Financial Report
Assumptions
Performance Condition
Valuation
(Grant) Date
Number of
Rights
Fair Value
per Right at
Grant Date
Share Price
at
Grant Date
Expected
Volatility
Volatility of
Comparator
Index
Correlation
between
Genesis and
Index
Future
Dividend Rate
(% pa)
Discount Rate
(% pa)
Probability of
Meeting
Performance
Hurdle and
Service
Condition
Vesting
Year
Expiry
Year
Issue of 4 & 5-year Strategic Growth Retention Rights to Executive KMP
T1 - Share Price Growth
8/09/2023
860,000
$1.2300
$1.590
70%
N/A
N/A
0%
3.7%
100%
2027
2027
T2 - Share Price Growth
8/09/2023
860,000
$1.2810
$1.590
70%
N/A
N/A
0%
3.8%
100%
2028
2028
T1 - Relative TSR
8/09/2023
860,000
$1.1780
$1.590
70%
40%
0.42
0%
3.7%
100%
2027
2027
T2 - Relative TSR
8/09/2023
860,000
$1.2160
$1.590
70%
40%
0.37
0%
3.8%
100%
2028
2028
T1 - Reserve Growth
8/09/2023
860,000
$1.5900
$1.590
70%
N/A
N/A
0%
3.7%
100%
2027
2027
T2 - Reserve Growth
8/09/2023
860,000
$1.5900
$1.590
70%
N/A
N/A
0%
3.8%
100%
2028
2028
T1 - Production Growth
8/09/2023
860,000
$1.5900
$1.590
70%
N/A
N/A
0%
3.7%
100%
2027
2027
T2 - Production Growth
8/09/2023
860,000
$1.5900
$1.590
70%
N/A
N/A
0%
3.8%
100%
2028
2028
Issue of 4 & 5-year Strategic Growth Retention Rights to Managing Director
T1 - Share Price Growth
27/11/2023
402,500
$1.3970
$1.760
70%
N/A
N/A
0%
4.2%
100%
2027
2027
T2 - Share Price Growth
27/11/2023
402,500
$1.4440
$1.760
70%
N/A
N/A
0%
4.2%
100%
2028
2028
T1 - Relative TSR
27/11/2023
402,500
$1.2870
$1.760
70%
40%
0.44
0%
4.2%
100%
2027
2027
T2 - Relative TSR
27/11/2023
402,500
$1.3300
$1.760
70%
40%
0.39
0%
4.2%
100%
2028
2028
T1 - Reserve Growth
27/11/2023
402,500
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2027
2027
T2 - Reserve Growth
27/11/2023
402,500
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2028
2028
T1 - Production Growth
27/11/2023
402,500
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2027
2027
T2 - Production Growth
27/11/2023
402,500
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2028
2028
Issue of 3 Year FY24 Performance Rights to Managing Director
Share Price Growth
27/11/2023
220,000
$1.2900
$1.760
70%
N/A
N/A
0%
4.2%
100%
2026
2026
Relative TSR
27/11/2023
220,000
$1.1910
$1.760
70%
40%
0.46
0%
4.2%
100%
2026
2026
ESG
27/11/2023
330,000
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2026
2026
ROCE
27/11/2023
330,000
$1.7600
$1.760
70%
N/A
N/A
0%
4.2%
100%
2026
2026
Issue of 3 Year FY24 Performance Rights to Executive KMP
Share Price Growth
15/12/2023
845,000
$1.3150
$1.795
70%
N/A
N/A
0%
3.8%
100%
2026
2026
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
117
Assumptions
Performance Condition
Valuation
(Grant) Date
Number of
Rights
Fair Value
per Right at
Grant Date
Share Price
at
Grant Date
Expected
Volatility
Volatility of
Comparator
Index
Correlation
between
Genesis and
Index
Future
Dividend Rate
(% pa)
Discount Rate
(% pa)
Probability of
Meeting
Performance
Hurdle and
Service
Condition
Vesting
Year
Expiry
Year
Relative TSR
15/12/2023
845,000
$1.1950
$1.795
70%
40%
0.47
0%
3.8%
100%
2026
2026
ESG
15/12/2023
1,267,500
$1.7950
$1.795
70%
N/A
N/A
0%
3.8%
100%
2026
2026
ROCE
15/12/2023
1,267,500
$1.7950
$1.795
70%
N/A
N/A
0%
3.8%
100%
2026
2026
Issue of 4 & 5-year Strategic Growth Retention Rights to Employees
T1 - Share Price Growth
22/12/2023
399,000
$1.3800
$1.755
70%
N/A
N/A
0%
3.6%
100%
2027
2027
T2 - Share Price Growth
22/12/2023
453,000
$1.4300
$1.755
70%
N/A
N/A
0%
3.6%
100%
2028
2028
T1 - Relative TSR
22/12/2023
399,000
$1.2510
$1.755
70%
40%
0.44
0%
3.6%
100%
2027
2027
T2 - Relative TSR
22/12/2023
453,000
$1.2970
$1.755
70%
40%
0.40
0%
3.6%
100%
2028
2028
T1 - Reserve Growth
22/12/2023
399,000
$1.7550
$1.755
70%
N/A
N/A
0%
3.6%
100%
2027
2027
T2 - Reserve Growth
22/12/2023
453,000
$1.7550
$1.755
70%
N/A
N/A
0%
3.6%
100%
2028
2028
T1 - Production Growth
22/12/2023
399,000
$1.7550
$1.755
70%
N/A
N/A
0%
3.6%
100%
2027
2027
T2 - Production Growth
22/12/2023
453,000
$1.7550
$1.755
70%
N/A
N/A
0%
3.6%
100%
2028
2028
Issue of FY24 NED Share Rights
Service Condition
31/12/2023
36,075
$1.8015
$1.790
N/A
N/A
N/A
N/A
N/A
100%
2024
2024
Issue of FY24 Relocation Share Rights to Employees
Service Condition
17/03/2024
27,000
$1.9047
$1.920
N/A
N/A
N/A
N/A
N/A
100%
2024
2024
Service Condition
17/03/2024
27,000
$1.9047
$1.920
N/A
N/A
N/A
N/A
N/A
100%
2025
2025
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
118
Genesis Minerals Limited – Annual Financial Report
Key Estimates and Assumptions
Share-Based Payments
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at
which they are granted. The fair value is determined using an appropriate valuation model. The valuation basis and related assumptions are
detailed above. The accounting estimates and assumptions relating to the equity settled transactions would have no impact on the carrying value
of assets and liabilities within the next annual reporting period but may impact expenses and equity.
Note 23 Commitments & contingencies
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets it has an interest in.
Outstanding exploration commitments
30 June
2024
$’000
30 June
2023
$’000
Within one year
10,966
10,432
Greater than one year but less than five years
43,863
41,728
54,829
52,160
Gold delivery commitments
Gold for physical
delivery oz
Contracted sales price
$/oz
Value of committed
sales
$’000
Within one year
13,500
3,648
49,248
Greater than one year but less than five years
4,500
3,719
16,734
18,000
3,666
65,982
The counterparty to the physical gold delivery forward contracts is Westpac Banking Corporation. Contracts are settled by the physical delivery of
gold as per the contract terms. The contracts are accounted for as sale contracts with revenue recognised once gold has been delivered to the
scheduled counterparty. The physical gold delivery contracts are considered a contract to sell a non-financial item and therefore do not fall within
the scope of AASB 9 Financial Instruments. Hence, no derivatives are recognised. The contracted sales price is rounded to the nearest dollar.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
119
Note 24 Related Party Disclosures
(a)
Controlled Entities
Ownership Interest
30 June
2024
%
30 June
2023
%
Parent Entity
Genesis Minerals Limited1
Subsidiaries
Genesis Minerals (Laverton) Pty Ltd (formerly Dacian Gold Limited)1
100
80.08
Genesis Minerals (Leonora) Pty Ltd1
100
100
Genesis Mining Services Pty Ltd1
100
100
Metallo Resources Pty Ltd1,2
100
100
Ulysses Mining Pty Ltd1
100
100
Wholly-Owned Subsidiaries of Genesis Minerals (Laverton) Pty Ltd (formerly Dacian
Gold Limited)
Dacian Gold Mining Pty Ltd1
100
80.08
Mt Morgans WA Mining Pty Ltd1
100
80.08
Redcliffe Project Pty Ltd (formerly NTM Gold Limited)1
100
80.08
Wholly-Owned Subsidiaries of Genesis Mining Services Pty Ltd
Genesis Mining Services (SPV 1) Pty Ltd1
100
100
Wholly-Owned Subsidiaries of Genesis Minerals (Leonora) Pty Ltd
Bardoc Gold Pty Ltd1
100
100
Wholly-Owned Subsidiaries of Bardoc Gold Pty Ltd
Admiral Gold Pty Ltd1
100
100
Excelsior Gold Pty Ltd1
100
100
Spitfire Global Pty Ltd1
100
100
Starpart Holdings Pty Ltd1
100
100
Wholly-Owned Subsidiaries of Excelsior Gold Pty Ltd
Aphrodite Gold Pty Ltd1
100
100
GPM Resources Pty Ltd1
100
100
1 These entities are parties to a deed of cross guarantee with Genesis Minerals Limited dated 1 March 2024 (as amended from time to time) in
accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785. For the purposes of that deed and that ASIC Instrument,
the 'closed group' comprises Genesis Minerals Limited and all of these entities (Closed Group). Refer to Note 24(d) for further information.
2 The Group sold its 100% interest in Metallo Resources Pty Ltd on 12 July 2024. Refer to Note 27 for further information
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
120
Genesis Minerals Limited – Annual Financial Report
(b)
Parent Entity
Financial statements and notes for Genesis Minerals Limited, the legal parent entity, are provided below:
Parent
30 June
2024
$’000
30 June
2023
$’000
Financial position
Current assets
157,524
154,015
Non-current assets
810,537
755,292
Total assets
968,061
909,307
Current liabilities
49,984
57,368
Non-current liabilities
4,305
114
Total liabilities
54,289
57,482
Shareholders’ equity
Issued capital
1,132,546
1,011,428
Reserves
(23,067)
41,324
Accumulated losses
(195,707)
(200,927)
Total equity
913,772
851,825
Financial performance
Profit/ (Loss) for the year
5,220
(99,453)
Other comprehensive income
357
-
Total comprehensive loss
5,577
(99,453)
(c)
Commitments
The parent company has issued various parent company guarantees for key supplier agreements.
(d)
Guarantees entered into by companies within the Group in relation to the debts of its subsidiaries.
The group entities identified in Note 24(a) (Relevant Entities) have entered into a deed of cross guarantee with the Company dated 1 March
2024 (as amended from time to time) (Deed of Cross Guarantee) in accordance with ASIC Corporations (Wholly-owned Companies) Instrument
2016/785 (ASIC Instrument).
Subject to compliance with the conditions of that ASIC Instrument, the Relevant Entities are relieved from the requirement to prepare and lodge
an audited financial report and directors' report.
The effect of the Deed of Cross Guarantee is that each party to the Deed of Cross Guarantee guarantees the debts of the other parties to the
Deed. That liability only arises upon a winding up of a party to the Deed of Cross Guarantee.
(e)
Transactions with related parties
In September 2022 Genesis secured a controlling interest in Dacian and appointed three representative directors on the Dacian Board. As
announced on 15 November 2022 the two companies entered a secondment agreement and a management services agreement designed to
leverage off each other’s resources to secure synergies from the group. During the year ended 30 June 2024 Dacian invoiced Genesis $1,410,000
under these arrangements and Genesis invoiced Dacian $1,453,000 under these arrangements.
Note 25 Key Management Personnel
(a)
Directors and Key Management Personnel
The following persons were Directors or Key Management Personnel of the Company during the current and prior financial year:
Anthony Kiernan
Non-Executive Chair
Raleigh Finlayson
Managing Director
Michael Bowen
Non-Executive Director
Gerard Kaczmarek
Non-Executive Director
Karen Lloyd
Non-Executive Director (appointed 1 April 2024)
Jacqueline Murray
Non-Executive Director
Michael Wilkes
Non-Executive Director
Tommy McKeith
Non-Executive Chair (resigned 30 September 2022)
Neville Power
Non-Executive Director (resigned 30 September 2022)
Morgan Ball
Chief Financial Officer
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Genesis Minerals Limited – Annual Financial Report
121
Matt Nixon
Chief Operating Officer (from 29 April 2024)
Troy Irvin
Corporate Development Officer
Lee Stephens
General Manager, Laverton Operations
There were no other persons employed by, or contracted to, the Company during the financial year, having responsibility for planning, directing
and controlling the activities of the Company, either directly or indirectly.
(b)
Key management personnel compensation
Details of Key Management Personnel remuneration are contained in the Audited Remuneration Report in the Directors’ Report. A summary of
total compensation paid to Key Management Personnel during the year is as follows:
(c)
Other key management personnel transactions with Directors and Director-related entities
Key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over
the financial or operating policies of these entities.
One of these entities transacted with the Group in the reporting period. The terms and conditions of the transactions with key management
personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on
similar transactions to non-key management personnel related entities on an arm’s length basis.
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control
or significant influence were as follows:
Key Management Person
Transaction
Transaction Value
Balance Outstanding as at
2024
$
2023
$
30 June 2024
$
30 June 2023
$
Michael Bowen1
Legal Fees
86,409
1,103,772
5,765
3,699
1 Payable to Thomson Geer, a law firm in which Michael Bowen is a Partner. Balance outstanding represents the amount of work performed but not invoiced until after the end of
the financial year.
Note 26 Auditor’s Remuneration
Hall Chadwick WA Audit Pty Ltd
Audit and review of financial statements
325,156
186,100
Total
325,156
186,100
Note 27 Events subsequent to the reporting date
On 12 July 2024, the Group sold its non-core 100% interest in Metallo Resources Pty Ltd (“Metallo”) to Ordell Minerals Limited (“Ordell”). The
consideration received for the sale included the following:
•
4 million shares in Ordell; and
•
1 million options exercisable at $0.25 and 1 million options exercisable at $0.35 in Ordell, expiring 5 years from the date of issue.
30 June
2024
$
30 June
2023
$
Short-term benefits
4,326,446
1,321,311
Leave entitlement
223,326
43,782
Post-employment benefits
182,691
128,210
Share-based payments
6,157,430
9,209,751
Total Key Management Personnel remuneration
10,889,893
10,703,054
30 June
2024
$
30 June
2023
$
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
122
Genesis Minerals Limited – Annual Financial Report
In addition, deferred consideration is payable by Ordell as follows:
•
upon the announcement of a JORC-compliant Mineral Resource in excess of 500,000 ounces of gold on the Metallo tenements, Ordell will
either (at its election) pay further cash consideration of $800,000 or issue shares to Genesis equal to $800,000 calculated on the 20-day
volume weighted average price (VWAP) of the Ordell Shares trading on ASX immediately prior to the announcement of the Mineral Resource
or, if there is no announcement, of the achievement of the Mineral Resource; and
•
on the announcement of a decision to commence the first commercial mining activities on the Metallo tenements, Ordell will either (at its
election), pay further cash consideration of $1,600,000 or issue Shares to Genesis equal to $1,600,000 calculated on the 20- day VWAP of
the Ordell Shares trading on ASX immediately prior to the announcement of the decision.
Subsequent to 30 June 2024, the Company acquired $16.4 million of mining equipment financed through unused asset finance lease facilities.
Company Secretary, Geoff James has resigned and been replaced by the Company’s Head of Legal, Joanne Steer effective 29 August 2024.
Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Group,
the results of those operations or the state of affairs of the Group in subsequent financial years.
Note 28 Consolidated Entity Disclosure Statement
Name of Entity
Type of Entity
Trustee or
participant in
Joint Venture
% of
share
capital
held
Country of
incorporation
Australian
resident or
foreign resident
for tax purposes
Foreign tax
jurisdiction of
foreign residents
Genesis Minerals Limited
Body Corporate
n/a
Australia
Australian
n/a
Genesis Minerals (Laverton) Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Genesis Minerals (Leonora) Pty Ltd
Body Corporate
Participant in
Joint venture
100
Australia
Australian
n/a
Genesis Mining Services Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Metallo Resources Pty Ltd
Body Corporate
Participant in
Joint venture
100
Australia
Australian
n/a
Ulysses Mining Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Dacian Gold Mining Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Mt Morgans WA Mining Pty Ltd
Body Corporate
Participant in
Joint venture
100
Australia
Australian
n/a
Redcliffe Project Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Genesis Mining Services (SPV 1) Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Bardoc Gold Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Admiral Gold Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Excelsior Gold Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Spitfire Global Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Starpart Holdings Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
Aphrodite Gold Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
GPM Resources Pty Ltd
Body Corporate
n/a
100
Australia
Australian
n/a
123
Genesis Minerals Limited – Annual Financial Report
DIRECTORS’ DECLARATION
In the opinion of the Directors of Genesis Minerals Limited:
(a)
the financial statements and notes set out on Pages 84-122 are in accordance with the Corporations Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the financial year ended
on that date;
(b)
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable;
(c)
there are reasonable grounds to believe that the Company and those entities identified in Note 24(a) as members of the 'closed group' will
be able to meet any liabilities to which they are, or may become, subject because of the deed of cross guarantee identified in Note 24(d);
(d)
a statement that the attached financial statements are in compliance with International Financial Reporting Standards has been included
in the notes to the financial statements and
(e)
in the directors’ opinion, the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
DATED at Perth this 29th day of August 2024
Raleigh Finlayson
Managing Director
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENESIS MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Genesis Minerals Limited (“the Company”) and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
ACN 124 772 041
a.
the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1(b).
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report. These matters were addressed in the context of our audit of the financial report as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Business Combination
As disclosed in Note 8 of the financial statements on
30 June 2023, the Group acquired the Leonora
Operations from St Barbara Limited. The acquisition
constituted a business combination in accordance
with AASB 3 Business Combinations (“AASB 3”) and
in preparing the 2023 financial report the acquisition
was accounted for on a provisional basis. In
accordance with AASB 3, the Group subsequently
finalised the assessment of the fair value of the
assets and liabilities acquired following a purchase
price allocation valuation process. Accordingly, the
comparative statement of financial position has been
restated to reflect the final fair values in accordance
with the requirements of AASB 3.
Accounting for the business combination constituted
a key audit matter due to the size and scope of the
transaction, and the complexities inherent in
assessing the fair value of the assets and liabilities
acquired.
Our audit procedures included, but were not limited
to:
•
Reviewing the acquisition agreement to
understand the key terms and conditions of
the transaction;
•
Assessing the fair value of the consideration
transferred with reference to the terms of the
acquisition agreement;
•
Verifying the acquisition date assets and
liabilities acquired to underlying supporting
documentation;
•
Assessing
the
independent
expert’s
purchase
price
allocation
report
and
associated workings to assess the basis for
the valuation of the assets and liabilities
acquired
including
key
inputs
and
assumptions; and
•
Assessing the appropriateness of the
disclosures included in Note 8 of the
financial report.
Provision for Rehabilitation
As disclosed in Note 17 in the financial statements
as at 30 June 2024 the Group recorded a provision
for rehabilitation of $74.625 million.
Accounting for the provision for rehabilitation
constituted a key audit matter due to:
•
The significance of the balance; and
•
The complexities inherent with estimating
Our audit procedures included, but were not limited
to:
•
Assessing with reference to internal and
external data, management’s assessment
of the rehabilitation provision and related
calculations;
•
Assessing the independence, competence
and objectivity of the expert engaged by
Key Audit Matter
How our audit addressed the Key Audit Matter
rehabilitation provisions and judgement
required in light of mine plans and the
changing cost environment.
management;
•
Assessing the accuracy of the calculations
used
to
determine
the
rehabilitation
provision including the discount rate and
inflation rates applied; and
•
Assessing the appropriateness of the
disclosures included in Note 17 of the
financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error and the Group
disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In Note
1(b), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of
Financial Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for
our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2024.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of Genesis Minerals Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
D M BELL CA
Director
Dated this 29th day of August 2024
Perth, Western Australia
Additional Information
129
Additional Information
Twenty Largest Shareholders
Shareholder Name
Number of Shares
% of Shares
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
340,253,084
30.33
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
244,088,809
21.75
CITICORP NOMINEES PTY LIMITED
181,525,363
16.18
BNP PARIBAS NOMS PTY LTD
29,484,000
2.63
UBS NOMINEES PTY LTD
25,931,077
2.31
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
21,223,406
1.89
NATIONAL NOMINEES LIMITED
19,613,475
1.75
WROXBY PTY LTD
18,760,454
1.67
MSH GROUP PTY LTD
12,055,556
1.07
BOTSIS HOLDINGS PTY LTD
11,218,000
1.00
BNP PARIBAS NOMINEES PTY LTD
10,651,618
0.95
KIN MINING N L
9,480,465
0.84
STEFEAD INVESTMENTS PTY LTD
6,997,320
0.62
WYLLIE GROUP PTY LTD
5,926,144
0.53
MSH GROUP PTY LTD
5,833,334
0.52
WARBONT NOMINEES PTY LTD
4,201,470
0.37
MR KENNETH JOSEPH HALL
4,149,377
0.37
BNP PARIBAS NOMINEES PTY LTD
3,792,684
0.34
CITICORP NOMINEES PTY LIMITED
2,898,837
0.26
BNP PARIBAS NOMINEES PTY LTD
2,870,840
0.26
TOTAL
960,955,313
85.65
As at 16 August 2024
131
Additional Information
Substantial Shareholders
An extract of the Company's Register of Substantial Shareholders (who hold 5% or more of the issued capital) is set
out below:
Shareholder Name
Number of Shares
% of Shares
AUSTRALIANSUPER PTY LTD
198,033,263
17.65
VAN ECK ASSOCIATES CORPORATION
87,836,022
7.83
STATE STREET CORPORATION
89,240,693
7.95
PARADICE INVESTMENT MGT
66,453,737
6.00
VANGUARD GROUP
56,111,053
5.00
As at 16 August 2024
132
Distribution of Shareholders
Analysis of numbers of shareholders by size of holding:
Distribution
Number of Shareholders
Shares Held
1-1,000
12,636
4,686,023
1,001-5,000
6,692
15,396,302
5,001 - 10,000
1,647
11,719,786
10,001 - 100,000
1,818
49,137,415
More than 100,000
234
1,041,056,885
TOTALS
23,027
1,121,996,411
There are 4,858 shareholders holding less than a marketable parcel of ordinary shares.
Additional Information
Unquoted Securities
Unlisted Options
83.67% (24,500,000) of all Unlisted Securities are held by Managing Director, Raleigh Finlayson
Voting Rights
In accordance with the Company's Constitution, voting rights in respect of ordinary shares are on a show of hands whereby each
member present in person or by proxy shall have one vote and upon a poll, each share will have one vote. Unlisted options and
performance rights to not have voting rights.
Restricted Securities
The Company has the following fully paid ordinary shares issued to employees that are subject to escrow requirements:
133
As at 16 August 2024
Number of Shares
Shares escrowed until 11/04/2025
5,300,000
Shares escrowed until 27/05/2025
1,850,000
Shares escrowed until 22/02/2027
143,714
Total
7,293,714
On-Market Buy Back
There is no current on-market buy-back in place.
Schedule of Exploration Tenements
Refer to the ASX Announcement - Quarterly Activities Report - June 2024 dated 18 July 2024
Distribution
Number of Shareholders
Shares Held
1-1,000
0
0
1,001-5,000
0
0
5,001 - 10,000
0
0
10,001 - 100,000
4
313,335
More than 100,000
7
28,970,000
TOTALS
11
29,283,335
Directors
Company Secretary
Geoff James - to 29 August 2024
Joanne Steer - from 29 August 2024
Registered Office and Principal Place of Business
Level 7, 40 The Esplanade
Perth WA 6000
Australia
Telephone:
Website:
Email:
Auditor
Hall Chadwick WA Audit Pty Ltd
238 Rokeby Road
SUBIACO WA 6008
Share Registry
Computershare Investor Services
Level 17, 221 St Georges Terrace
Perth WA 6000
Stock Exchange Listing
The Company's shares are quoted on the Australian Securities Exchange
ASX Code
GMD
ACN
124 772 041
Anthony Kiernan
Raleigh Finlayson
Michael Bowen
Gerard Kaczmarek
Jacqueline Murray
Karen Lloyd
Michael Wilkes
Independent Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
+61 8 6323 9050
www.genesisminerals.com.au
info@genesisminerals.com.au
XX
Corporate Directory
134