Genesis Minerals Views Leonora Goldfields from Lofty Height of Project Cherry Picker

THE CONFERENCE CALLER: Genesis Minerals (ASX: GMD) managing director Raleigh Finlayson pumped up one takeover while hosing down scuttlebutt of another when addressing the opening day audience at the 2022 Diggers & Dealers Mining Forum in Kalgoorlie.

Proving that old news travels fast, the auditorium at the Goldfields Arts Centre was chock-a-block for Mr Merger’s presentation of delegates anxious to hear what they already knew about the
agreed $111 million takeover agreement announced this month between explorer Genesis and miner Dacian Gold (ASX: DCN).

Genesis has hardly made a secret of its mergers and acquisitions strategy to achieve its aim to become a premium Australian gold producer, and has fingered Dacian as a natural pairing in the Leonora mining district.

The all-scrip transaction would combine Genesis’ own high-grade Ulysses project and organic growth opportunities with Dacian’s large-scale strategic milling infrastructure at the Mt Morgans project.

Seen as a ‘win-win’ proposition the deal would accelerate development of Ulysses’ high-grade core of 363,000 ounces at 6.4 grams per tonne gold while avoiding the $150-160 million price tag of establishing a stand-alone processing facility, adding further potential to increase production rates.

But why stop there?

The transaction has already set the Goldfields rumour mill in motion with those who are smarter than others in these matters pointing out possible future mergers and acquisitions activity in the Leonora district.

Most of the speculation focused on St Barbara (ASX: SBM) and its substantial Resources and infrastructure as a possible target.

This would be big, creating a company that would boast the size and quality of assets to bridge the gap between the individual enterprises with that of ASX100 status miners.

To keep things interesting, Finlayson acknowledged Genesis had reopened discussions with St Barbara, among numerous regional opportunities – so, nothing to see here.

“A further consolidation would offer the potential to hold a dominant resource and reserve position in Leonora coupled with the flexibility of optimised deposits and regional processing power,” he said.

While St Barbara itself has also talked about the prospects for consolidation in the region, Finlayson warned there were no assurances the current talks would lead to a transaction.