01/08/2022 - 15:19

Finlayson keeps lid on Leonora plans

01/08/2022 - 15:19

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Genesis boss Raleigh Finlayson could not be drawn to furnish details on a deal with St Barbara, but conceded the Leonora region was more open to consolidation than it once was.

Finlayson keeps lid on Leonora plans
Genesis Minerals boss Raleigh Finlayson. Photo: Simone Grogan

Genesis boss Raleigh Finlayson has done little to quell speculation regarding a deal with gold mid-tier St Barbara, but says the Leonora region is more open to consolidation than it once was.  

In his Diggers & Dealers address, the Genesis Minerals managing director affirmed that discussions with potential takeover target St Barbara were progressing, but could offer little more in terms of detail.

Negotiations between the two have been in the works for weeks, prompting much speculation as to what a tie-up between Genesis, valued at $407 million, and St Barbara, a $942 million gold producer with assets in Leonora, Canada and Papua New Guinea, would look like.

“Continuing on the theme of openness and transparency, we can confirm discussions with St Barbara are continuing,” Mr Finlayson told the forum.

“The obvious question is why.”

Mr Finlayson said the companies had completed extensive due diligence on each other’s assets and could see operational synergies in striking a deal.

Addressing media, Mr Finlayson clarified a deal was still on the table.

“We remain open on conversations,” he said.

“The basis of that is purely around seeing synergies in the region.”

Though he could not be drawn on further details, he indicated sentiment on the consolidation within the Leonora gold region was more open than it had been in previous years.

“But I would say there’s an openness and willingness not just with us but … others in the region now, which probably should have happened over the course of the last decade,” Mr Finlayson said.

“So we may have lit the fumes on that on those discussions, but for me it’s about making sure deals are getting done as opposed to having the stalemates that have been existing for the best part of a decade.”

His address comes with a $111 million takeover of struggling gold producer Dacian Gold in the works.

Listed backers of that deal include Kerry Stokes’ private company Australian Capital Equity and Mr Raleigh Finlayson’s old haunt Northern Star, of which he was previously managing director.

Genesis shares closed the day up 1.81 per cent to trade at $1.41.

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