Evolution gold production down on last year’s record

Surface activities at Mt Carlton. Image: Evolution Mining.

Evolution Mining produced 200,218 ounces (oz) of gold in the quarter ending September 30. This represented a slight fall from the previous quarter (202,254oz) but better than March 2018 (191,474oz) and December 2017 (186,480oz).

The latest quarterly production results have failed to replicate September 2017’s record production of 220,971oz, resulting in a year-on-year (YoY) fall of 20,753oz.

While the gold major hasn’t managed to top its production figures from the 2017 financial year, Evolution cited its Cowal and Mungari mines in New South Wales and Western Australia, respectively, as successes.

The Cowal mine produced 61,260oz of gold, down from the 70,140oz haul posted in September 2017. However, Evolution highlighted the “exceptional financial performance” of the Cowal mine, posing $24 million net cash flow – up 413 per cent from the previous quarter. This is reflective of the NSW project’s continued expansion to 9.8Mt/y capacity.

Additionally, year-on-year production was up at Mungari to 35,120oz (30,353oz in September 2017).

This pattern continued with Evolution’s Mt Carlton and Mt Rawdon operations in Queensland: Mt Carlton was down YoY to 26,197oz (29,994oz in September 2017) while Mt Rawdon was up YoY to 29,712oz (21,766oz in September 2017).

Evolution reported that it has lowered its bank debt in the quarter by $20 million to $375 million. The company’s hedge book stands at 212,500oz at a $1715/oz average.

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