Why the Genesis Minerals (ASX:GMD) share price is rocketing 160% today

Genesis Resources’ shares are on the move today. Here’s the details.
The post Why the Genesis Minerals (ASX:GMD) share price is rocketing 160% today appeared first on The Motley Fool Australia. –

The Genesis Minerals Ltd (ASX: GMD) share price has soared into the green during early trade on Wednesday.

Genesis shares are now changing hands at 19 cents apiece, a 160% gain from the market open.

Let’s take a look.

What’s fuelling the Genesis Minerals share price today?

Genesis shares are on the move after the company made a key announcement regarding a capital raise and board restructuring.

The company advised its planned “strategic funding and board restructure”, which is “aimed at delivering extensive financial and management strength” to Genesis.

Overall, the moves are a part of the plan to “grow Genesis into a mid-tier Australian gold company”.

Under the above proposal, Genesis will seek to raise $16 million via a placement at 6 cents per share.

This signifies a 65% discount to the current Genesis Minerals share price. However, just prior to the announcement, it represented just an 18% discount.

The proposal is “led” by “highly regarded gold mining executive”, Raleigh Finlayson, who hails from previous managing director positions at Saracen Mineral Holdings (ASX: SAR) and Northern Star Resources Ltd (ASX: NST), as per the release.

Finlayson will be “appointed managing director of Genesis by no later than 31 March 2022”, and will have performance option rights attached to his tenure.

In addition, former Fortescue Metals Group Limited (ASX: FMG) managing director and CEO Neville Power will be invited to join the board, alongside “highly experienced corporate lawyer” Michael Bowen.

The moves appear to be a big step in credibility for the company, which now has an “enviable team” filling its board, according to the statement.

Genesis’ largest shareholder, Alkane, has advised the company that it “strongly supports the strategic investment and board changes”.

Investors appear to strongly support the changes too and are driving the Genesis Minerals share price into unseen heights during early trade on Wednesday.

What did management say?

Commenting on the announcement, Genesis chairperson Tommy McKeith said:

Raleigh is a highly successful gold miner with an exceptional track record of creating value for
shareholders, growing Saracen from a junior explorer and developer into a $6 billion company at the
time of its merger with Northern Star.

Speaking on the additional appointments to the board, McKeith added:

With Raleigh working alongside Neville, whose vast experience and achievements are widely acknowledged across the Australian business spectrum, and Michael, who is one of Perth’s most highly regarded corporate lawyers, Genesis will have an enviable team in the Boardroom.

Genesis Resources share price snapshot

The Genesis Resources share price wasn’t producing anything exciting before today’s announcement.

It closed yesterday’s session at 7.3 cents, down from around 8 cents a year ago.

It is now up 156% this year to date, and over 130% in the last 12 months – a huge plus for investors who bought Genesis shares back then.

The post Why the Genesis Minerals (ASX:GMD) share price is rocketing 160% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Genesis Resources right now?

Before you consider Genesis Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Genesis Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Vanguard MSCI Index International Shares ETF (ASX:VGS) has more than doubled the ASX 200’s returns in 2021
Why is the Anson resources (ASX:ASN) share price down 16% in a week?
GWR Group (ASX:GWR) share price plunges 21% on iron ore update
AusNet (ASX:AST) share price down 5% amid takeover battle uncertainty
2 ASX shares to potentially buy in this volatility

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!