MLG increases Leonora exposure with Genesis deal

Staff reporter

ASX-listed mine haulage contractor MLG Oz says it can play a key role in Genesis Minerals’ “right ores in the right mill” strategy for the Leonora gold operations it paid A$630 million (US$422m) for earlier this year under a new three-year contract.

Genesis acquired the Gwalia underground mine, 1.4 million tonnes a year Leonora mill and regional development projects from St Barbara.

MLG says it aims to work closely with Genesis to support its strategic growth plans in the prolific Western Australia gold district.

Its transport deal with Genesis is expected to ramp up through the second half of this financial year and into FY2025, generating A$15-30 million revenue in FY25.

Well-funded client with sustainable production growth underpinned by large, long-life reserves. Strategically aligned with MLG operational position and fleet capacity.

“MLG’s regional position across the Leonora mineral field and strength of our underlying operations across this region ensures we are well placed to grow with Genesis and help them execute on their long-term strategy,” MLG founder and managing director, Murray Leahy, said.

“The Leonora mineral field is currently going through a level of consolidation and growth in processing capacity not experienced before.

“MLG’s large regional presence and scale of support infrastructure located within the region that is currently delivering for our high-quality customer base positions us extremely well to capitalise on these opportunities.”

MLG shares are up about 33% this year, capitalising the company at circa-A$76 million.


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