Evolution Mining tackles debt with $35 million payment

Evolution Mining has made a voluntary debt repayment of $35 million, reducing the company’s overall debt by 28 per cent.

The gold miner said its corporate revolving credit facility now stands at $91.8 million.

Evolution also reported a preliminary gold production result for the March 2015 Quarter of 103,305 ounces – in line with guidance of ‘approximately 100,000 ounces’.

The Company’s cash balance at 31 March 2015 was A$32.5 million (31 December 2014: A$47.4 million) after accounting for the voluntary debt repayment of A$35.0 million, a post-DRP cash dividend payment to Evolution shareholders of A$5.6 million, and a one-off debt refinance establishment fee of A$1.2 million.

Commenting on the financing and production update, Evolution’s Executive Chairman, Jake Klein, said it was a great result for the company.

“This is an outstanding result with almost A$27.0 million dollars of free cash flow generated during the quarter – by far our best quarter to date,” Klein said.

“This has been achieved despite group gold production being approximately 9 per cent lower than the previous quarter and is a great reflection of the successful inroads our staff continue to make in reducing costs and improving operational efficiency. With gold now trading close to A$1,600 an ounce we are optimistic about our future”.

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