Thoughts on Genesis Minerals (GMD)
Hi Team , Would appreciate your thoughts on GMD they seem to be in a good position with more mines opening up as they have the highest grade open pits in WA . Do they pay a dividend ? Cheers Craig
The Latest Q&A
Answer
Hi Craig,
Last month saw $3.6bn gold miner GMD deliver strong earnings results:
- 1H Revenue of $338.7mn, up 57% YoY.
- 1H EBITDA of $153.6mn v $53.6mn YoY.
- 1H Net Profit of $59.8mn v $22.9mn YoY.
However, the stock did receive downgrades from Macquarie and Bell Potter on valuation grounds having rallied three-fold from its 2023 low. GMD is well positioned moving forward, especially if gold continues to rally: The company has announced its ‘ASPIRE 400’ growth strategy aiming to elevate its gold production from 140,000 ounces in the fiscal year 2024 (FY24) to 325,000 ounces by FY29, totalling approximately 1.3 million ounces over this period.
GMD doesn’t currently pay a dividend and is unlikely to do so in the foreseeable future as it plans for growth, but we like the stock under $3, in line with our medium-term bullish outlook for precious metals.
