Latest news with #GenesisMinerals
Sky News AU
22-07-2025
- Business
- Sky News AU
ASX 200 up 0.2 per cent in first 30 minutes of trading after suffering more than $35b wipeout on Monday
The ASX 200 is up once again after suffering one of its worst days in months, during which billions of dollars were wiped from investors' portfolios. Australian stocks were up 0.2 per cent in the first 30 minutes of trading on Tuesday, with Insignia Financial leading the surge off the back of a 13.5 per cent jump. The superannuation and financial advisor's rise comes after it received a $3.2b takeover bid from US private equity firm CC Capital. Genesis Minerals is up 5.4 per cent while mining technology company Imdex has jumped 5.2 per cent and West African Resources has risen five per cent. It follows the index diving on Monday, with the bourse sinking about 1.1 per cent and investors losing more than $35b. The major indexes in Wall Street were generally in positive territory with the Nasdaq rising 0.4 per cent, the S&P 500 adding 0.1 per cent and the Dow Jones finishing flat on Monday. London's FTSE 250 rose 0.5 per cent, Germany's DAX jumped 0.1 per cent and the STOXX Europe 600 shed 0.1 per cent. New Zealand's NZX 50 Index is down about 0.4 per cent on Tuesday after the ANZ-Roy Morgan Consumer Confidence index showed households were less optimistic about the state of the economy. Meanwhile, Japan's Nikkei 225 is up 1.1 per cent and South Korea's KOSPI 200 is flat since trading began on Tuesday.
Business Recorder
09-07-2025
- Business
- Business Recorder
Australian shares slide as Trump broadens tariff war; RBNZ decision in focus
Australian shares fell on Wednesday, led by losses in gold and mining stocks, after US President Donald Trump said he would impose a 50% tariff on imported copper and warned of levies on foreign-made drugs. The S&P/ASX 200 index fell 0.7% to 8,535.10 by 0034 GMT. The benchmark ended flat on Tuesday. Gold stocks dropped more than 5%, tracking lower bullion prices. The sub-index hit its lowest level since April 10. Mining stocks lost 0.8%. Gold miners with exposure to copper Evolution Mining and Genesis Minerals dropped 7.4% and 4.4%, respectively. Sandfire Resources and Capricorn Metals shed 5.5% and 4.9%, respectively. Trump told reporters at a White House meeting that he would announce the copper tariff later in the day but gave no timeline, while US Commerce Secretary later told CNBC that it would likely take effect by late July or August 1. Trump also said he plans to announce tariffs on imported pharmaceuticals which could reach 200%, but would give drugmakers about one year 'to get their act together.' Healthcare stocks lost 0.6%, with sector major CSL down 0.7%. Meanwhile, the Reserve Bank of Australia blindsided markets on Tuesday by keeping its cash rate unchanged at 3.85% as board members chose to wait for clearer proof that inflation is losing steam. Financials skidded 0.8%, with National Australia Bank down 0.2%. ANZ, Westpac and Commonwealth Bank of Australia shed between 0.1% and 0.4%. Bucking the broader trend, energy stocks were up 0.4% as oil prices edged higher. Sector heavyweights Woodside Energy advanced 1.2%, while Santos gained 0.8%. New Zealand's benchmark S&P/NZX 50 index fell 0.9% to 12,748.12. Later in the day, the Reserve Bank of New Zealand (RBNZ) is expected to keep interest rates on hold, according to a Reuters poll.
News.com.au
06-07-2025
- Business
- News.com.au
Kristie Batten: Brightstar maps path to 200,000ozpa of gold
One of Australia's top mining journalists, Kristie Batten, writes for Stockhead every week in her regular column placing a watchful eye on the movers and shakers of the small cap resources scene. It's been a busy couple of weeks for Brightstar Resources (ASX:BTR) as ticks off milestones on the road to its goal of becoming a 200,000 ounce per annum gold producer by 2029. The up-and-comer is already ramping up to become a 35,000-40,000ozpa gold producer from its Second Fortune and Fish underground mines via an ore processing agreement with Genesis Minerals. But the company has bigger aspirations of becoming a gold producer in its own right and in the process, becoming a major player in the Eastern Goldfields. A week ago, Brightstar released a definitive feasibility study for the staged development of its Menzies and Laverton gold projects. Based on a maiden open pit reserve of 210,500oz at 1.63 grams per tonne gold, the project would produce 338,528oz, or an average of 70,000ozpa, over five years at all-in sustaining costs of $2991 an ounce. Using a base case gold price of $4500/oz, the project returned a pre-tax net present value of $203 million and an internal rate of return of 48%. Increasing the gold price to around $5000/oz, which is closer to spot, increases the NPV to $316 million and IRR increases to 73%. The company has signed a memorandum of understanding to process Menzies ore through the Paddington mill for up to two years while the Laverton plant is being built. Total project peak funding requirements for the Menzies and Laverton projects is $120 million, while payback from the commissioning of the plant, expected in early 2027, is one year. Brightstar has received letters of intent or term sheets from multiple domestic and offshore commercial banks, as well as interest from non-bank lenders for debt financing of up to 70% of the capital requirements. The company has also received a non-binding term sheet from an offshore precious metals specialist investment company for a funding package comprising a gold doré offtake and equity financing at a premium for A$120 million. Brightstar managing director Alex Rovira described Laverton and Menzies as 'a really financeable project with great return on investment'. The bigger prize A prefeasibility study is also underway for Brightstar's larger Sandstone project, due for completion next year. Sandstone hosts shallow resources of 1.5Moz at 1.5g/t gold and Brightstar has 80,000m of drilling planned across the project this year. The PFS will consider a 3-5 million tonne per annum open pit development. The company is aiming to move straight into a DFS on Sandstone next year, with the aim of making a final investment decision in early 2027, coinciding with first gold from Laverton and Menzies. Brightstar is aiming to self-fund at least part of the Sandstone development from its other operations. 'We see Sandstone as the flagship, tier one asset within our portfolio and the ability to fund that from existing and near-term operations is important,' Rovira said. Canaccord Genuity analyst Tim McCormack is modelling a $250 million, 3Mpta operation which would pour first gold in the June quarter of 2029. 'We expect the project to support production of around 130,000ozpa at an AISC of $2655/oz for six years,' he said. McCormack maintained a speculative buy rating and $1.50 price target for Brightstar, which is more than three times its Friday closing price of 46c. Deal brewing Brightstar has been one of the more acquisitive juniors in the gold space. Over the past two years, Brightstar has merged with Kingwest Resources, acquired unlisted Linden Alliance, merged with Alto Metals and bought Gateway Mining's Montague project. In October last year, Brightstar revealed it had made an offer to Sandstone neighbour Aurumin (ASX:AUN) over a potential joint venture. Last week, the two companies announced they were in merger talks, which would create a larger Sandstone project with a resource of 2.4Moz. Under the proposed deal, Brightstar would offer one share for every 4.6 Aurumin shares held, implying a value of 11.7c per Aurumin share, a 17% premium to the previous close. The companies are carrying out mutual due diligence. 'For context, Aurumin's ground is encapsulated entirely within our portfolio,' Rovira said. 'They have 900,000 ounces of resources, and importantly, the old mill site where Troy Resources mined and operated, so a potential transaction here delivers some great open pit resources that would be perfect to go through any mill in the district, but also key licences, permits and infrastructure.' Rovira pointed out that there were no major mills within 100km of Sandstone, but there were a handful of other junior companies with resources in that radius. 'We think ultimately there's a lot more consolidation that should happen in Sandstone that will be for the betterment of all sets of shareholders and the market in general,' he said. 'I'd love to have a business here in Sandstone that's underpinned by 3-4 million ounces of resources, on mining leases, that is near-term development. 'That opportunity, in my view, doesn't exist anywhere else in the Eastern Goldfields of WA. 'That would underpin a significant valuation for this business in the future, but also probably importantly, it would be a very opportune target for the mid-tier sector, which is looking for growth opportunities, so we're excited about the opportunity that we can build out here in Sandstone.'
Yahoo
24-06-2025
- Business
- Yahoo
Is There An Opportunity With Genesis Minerals Limited's (ASX:GMD) 32% Undervaluation?
The projected fair value for Genesis Minerals is AU$6.48 based on 2 Stage Free Cash Flow to Equity Genesis Minerals' AU$4.43 share price signals that it might be 32% undervalued Analyst price target for GMD is AU$4.61 which is 29% below our fair value estimate Does the June share price for Genesis Minerals Limited (ASX:GMD) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$213.7m AU$306.1m AU$312.8m AU$319.9m AU$327.9m AU$336.5m AU$345.6m AU$355.3m AU$365.3m AU$375.8m Growth Rate Estimate Source Analyst x4 Analyst x5 Analyst x5 Est @ 2.28% Est @ 2.48% Est @ 2.62% Est @ 2.72% Est @ 2.79% Est @ 2.84% Est @ 2.87% Present Value (A$, Millions) Discounted @ 6.9% AU$200 AU$268 AU$256 AU$245 AU$235 AU$226 AU$217 AU$209 AU$201 AU$193 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$2.3b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$376m× (1 + 2.9%) ÷ (6.9%– 2.9%) = AU$9.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$9.9b÷ ( 1 + 6.9%)10= AU$5.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$7.3b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of AU$4.4, the company appears quite undervalued at a 32% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Genesis Minerals as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 0.906. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Genesis Minerals Strength Debt is not viewed as a risk. Weakness No major weaknesses identified for GMD. Opportunity Annual earnings are forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Genesis Minerals, we've compiled three relevant elements you should consider: Financial Health: Does GMD have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does GMD's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Sky News AU
03-06-2025
- Business
- Sky News AU
ASX 200 surges on trade war hopes as IDP Education plunges 40+ per cent after voicing international student concerns
The ASX 200 is up on Tuesday after a late recovery in the US on hopes Donald Trump will speak with Chinese President Xi Jinping this week to simmer trade tensions. Gold miners are soaring with Genesis Minerals up 6.7 per cent, Westgold Resources jumping 4.6 per cent and Newmont Corporation rising 4.4 per cent in the first 40 minutes of trading. The index is up 0.7 per cent after going backwards on Monday despite massive surges with Brickworks and Soul Patts after inking a $14b merger. IDP Education has plummeted more than 40 per cent after the company revealed it expects earnings to halve from global uncertainty around the intake of international students. "Continued uncertainty has impacted IDP student enrolment pipeline size and conversion rates in the important May and June pipeline build given the timing of the fall intake in the UK, Canada and the US, as well as the second semester intake in Australia," the company told shareholders. Wall Street surged late on Monday after the White House suggested it was looking to set up a phone call between Trump and Xi Jinping this week. White House press secretary Karoline Leavitt informed reporters of this on Monday, making her the third top Trump aide to forecast an imminent call between the two leaders to iron out differences on last month's tariff agreement in Geneva, among larger trade issues. It was not immediately clear when the two leaders will speak. US treasury secretary Scott Bessent told CBS' "Face the Nation" on Sunday that Trump and Xi would speak "very soon" to iron out trade issues including a dispute over critical minerals and China's restrictions on exports of certain minerals. The Dow Jones rose 0.1 per cent, the S&P 500 finished up 0.4 per cent and the Nasdaq jumped 0.7 per cent on Monday. London's FTSE 250 Index finished flat, Germany's DAX Index sank 0.3 per cent and the STOXX Europe 600 shed 0.1 per cent on Monday. New Zealand's is flat since opening on Tuesday, while Japan's Nikkei 225 is up 0.2 per cent and South Korea's KOSPI 200 is flat. -With Reuters
