Evolution makes strides on back of positive cash returns

Evolution Mining continues to invest in extending its mine life and production growth across the Cowal operations in New South Wales and Mt Carlton in Queensland.

In October 2018, Evolution Mining received an approval to increase the Cowal gold operation’s processing rate by 31 per cent.

At Mt Carlton, Evolution undertook three projects totalling $60 million to include an underground development, stage four pit cut-back and plant modifications.

During this period, Evolution reported a mine operating cashflow of $387.9 million and a net profit after tax of $91.1 million.

All operations delivered positive cash flow after meeting their operating and capital needs, with major cash flow contributors to include Ernest Henry in Queensland ($108.1 million), Mt Carlton ($37.5 million) and Cowal ($36.8 million).

These half-year financial results continued to demonstrate the quality of Evolution’s asset portfolio, according to Evolution’s executive chairman Jake Klein.

“The exceptionally strong mine operating cash flow of over $1000 per ounce has allowed us to invest heavily in capital projects that will extend mine life and deliver additional high margin ounces,” Klein said.

“We are also increasing our investment in exploration with the ongoing success of the discovery programs at Cowal and Mungari.”

Evolution will commence development works of the Galway-Regal-E46 (GRE46) exploration decline at Cowal in the March 2019 quarter, having received an approval in October last year.

The decline will allow Evolution to conduct further resource definition and discovery drilling at GRE46, as well as further drilling to delineate the Dalwhinnie Lode.

Exploration drilling has also continued with success at Mungari’s Scottish Archer and Ora Banda projects.

Evolution’s full-year production and cost guidance remains unchanged, indicating a planned improved operational performance during the second half of the 2019 financial year.

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