As gold prices show no signs of slowing down, Evolution Mining has posted a strong performance in its March 2024 quarterly.
The company delivered a 15 per cent increase in gold production during the period, with 185,252 ounces (oz) of gold produced at an all-in sustaining cost (AISC) of $1464/oz, 9.6 per cent lower than the prior quarter.
Evolution’s group cash flow increased by 7.5 per cent to $85 million as the company enjoyed an average realised price of $3171/oz across the three months.
The gold miner also recorded an all-in cost margin of $947/oz, which represents a 40 per cent increase quarter on quarter.
“We continue to see increased cash generation with the cash balance up 13 per cent to $215 million and gearing improving to 28 per cent,” Evolution managing director and chief executive officer Lawrie Conway said.
Evolution’s gold production will be at the lower end of its FY24 range, which is about 749,000oz and at the higher end of the AISC range of about $1410/oz. Copper production is tracking at the high end of the FY24 range at around 65,000 tonnes.
All the company’s operations were delivered to plan, including successful planned major shutdowns at the Cowal and Ernest Henry mines.
While wet weather at the Cowal, Mungari and Mount Rawdon operations reduced production by about 8000 ounces, the Cowal underground mine transitioned to commercial production at the end of the quarter, with a 1.5-million-tonne annualised mining rate achieved in March.
“Our portfolio is well positioned to benefit from high spot gold and copper prices with 95 per cent of gold production unhedged and no copper hedging,” Conway said.
“Several milestones were achieved with Ernest Henry now fully repaid, Northparkes significant inaugural quarterly cash flow ($37 million) and the Cowal underground reaching commercial production, transforming the Cowal operation.”
Alongside its March quarterly results, Evolution revealed that exploration carried out at the Ernest Henry copper-gold operation in Queensland and Mungari copper-gold operation in Western Australia has returned “significant” assay results.
Drilling highlights from the Ernie Junior orebody at Ernest Henry include:
- 40.4m (33m estimated true width) grading 0.64 grams per tonne (g/t) gold and 1.14 per cent copper from 434m (EH1356)
- 38m (28m etw) grading 1.02g/t gold and 0.77 per cent copper from 484m (EH1356)
- 39.4m (25m etw) grading 0.76g/t gold and 1.19 per cent copper from 439.6m (EH1339A).
Mineralised intercepts from the Kundana orebody at Mungari include:
- 0.26m (0.26m etw) grading 420g/t gold from 385.8m (XMRT23026)
- 0.20m (0.18m etw) grading 373g/t gold from 336.7m (XMRT23028)
- 0.22m (0.22m etw) grading 52g/t gold from 352.7m (XMDT23002).
“The drilling results released today underscore our belief in the potential for future mineral resource growth in areas adjacent to existing and planned infrastructure at Ernest Henry and Kundana,” Evolution vice president discovery Glen Masterman said.
“At Ernest Henry, we have demonstrated mineralisation is continuous from the main orebody, through the Ernie Junior horizon, and now up to 300m north of the current (feasibility) study footprint.
“At Kundana, drilling confirms extensions of the Genesis vein along strike towards the previously mined Barkers ore body and at depth beyond boundaries of the existing mineral resource.”
Evolution has no debt repayment commitments until the December 2024 quarter.
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