Good as gold: Evolution moves into record territory

Evolution Mining's Cowal site.

Evolution Mining has finished the September quarter with record financial results on the back of the surging Australian dollar gold price.

The mine operating cash flow of $278.7 million is a 30 per cent increase on the previous quarter and the net mine cash flow of $207.4 million is a 36 per cent improvement.

Evolution’s financial returns were generated from total gold production of 191,967 ounces across its Australian operations.

Cowal, New South Wales, was one of Evolution’s standouts for the quarter, producing a record 75,807 ounces at an all-in sustaining cost (AISC) of $885 per ounce, delivering record net mine cash flow of $89.9 million.

Queensland’s Ernest Henry site was also a top performer, with 23,378 ounces at an AISC of $414 per ounce and a record net mine cash flow of $66.1 million.

Gold sales increased at a higher realised price during the September quarter, with 205,188 ounces of gold sold at an average price of $2111 per ounce, compared with June’s 190,810 ounces at $1858 per ounce.

It was also a big month for exploration, with infill drilling completed at Western Australia’s Mungari Boomer prospect, intercepting a laminated vein with visible gold and other base metal sulphides.

At the nearby Kintore project, drilling intercepted a shear hosted tonalite mineralisation, with a second phase of drilling planned for the December quarter.

Looking ahead, Evolution’s 2020 financial year gold production guidance remains unchanged at 725,000 to 775,000 ounces.

The AISC guidance, however, has increased by $50, from $940 per ounce to $990 per ounce.

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