Shares in Evolution Mining rose 0.9% to $3.36 yesterday after it reported a solid March quarter production effort and narrowed its full year guidance range.
Evolution expects gold production in the June quarter to be similar to the March quarter, and forecast overall group production for the 2018 financial year to be 790,00 – 805,000 ounces, from a previous guidance of 750,000 – 805,000.
The miner revealed a lift in gold production in the March quarter in the report and a fall in costs, The company produced 191,474 ounces of gold in the three months to March 31, down from 202,926 ounces in the prior corresponding period but up on the December quarter.
The quarter-on-quarter rise was driven by strong production from Evolution’s Queensland mines, Mt Rawdon and Ernest Henry.
Mt Rawdon produced 30,625 ounces of gold, up from 21,418 in the December quarter and Evolution says it expects production at Mt Rawdon to be more than 25,000 ounces in the June quarter, but warned full year production will likely be below the guidance range of 105,00 – 115,000.
The Ernest Henry mine contributed 22,839 ounces and is expected to deliver full year gold production above the top end of the 85,000- 90,000 ounces guidance range.
The company said its All-in Sustaining Cost in the quarter was a record low $A768 an ounce or $US604), while operating mine cash flow of $A174.8 million.
Capex or the year to June will be in the range of $A170 to $A180 million against the earlier guidance of $A170 to $A205 million.
The company also updated its reserves yesterday. Gold Mineral Resources increased by 68,000 ounces to 14.24 million ounces after accounting for mining depletion of 842,000 ounces and divestment of 848,000 ounces at Edna May. The largest offset was due to resource extensions at Cowal of 1.04 million ounces.
Copper Mineral Resources decreased 88,000 tonnes to 946,000 tonnes after accounting for mining depletion and the re-estimation of Marsden Mineral Resources.
Group Ore Reserves: Gold Ore Reserves increased by 58,000 ounces to 7.05 million ounces after accounting for mining depletion of 842,000 ounces and divestment of 426,000 ounces at Edna May. Cracow and Mungari both added to Ore Reserves post mining depletion. A Maiden Ore Reserve for Marsden has been included contributing 835,000 ounces.
Copper Ore Reserves rose 352,000 tonnes to 564,000 tonnes after accounting for mining depletion and the addition of 371,000 tonnes at Marsden (its Maiden Ore Reserve).
