Evolution Mining reiterates guidance as board approves Cowal extension
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The news: Evolution Mining reiterated its full-year production guidance after its third-quarter result left the gold and copper miner on track to meet its annual target, and after its board approved the extension of its Cowal gold mine in New South Wales.
The numbers: Evolution kept its FY25 guidance unchanged at between 710,000 and 780,000 ounces of gold and between 70,000 and 80,000 ounces of copper, at an all-in sustaining cost of between $1,475 and $1,575 per ounce.
The miner produced 179,778 ounces of gold in the third quarter, lower than the first two quarters. It has recorded 568,124 ounces in the financial year to date, leaving it on track to achieve full-year guidance.
Group copper production hit 19,450 in the March quarter, an improvement on the previous two quarters, taking output to 57,063 ounces for the financial year to date.
Evolution also confirmed that it will extend open pit mining at its Cowal project by 10 years to 2042, adding an additional 2 million ounces in incremental production.
The context: Board approval of the Cowal extension follows approvals by the federal government and the NSW Department of Planning, Housing and Infrastructure.
The miner said additional open pit mining will enable full development of the site's underground potential, targeting higher grade or in the underground mine.
What they said: "Cowal is undoubtedly a world class asset and a key asset in the Evolution portfolio," said Evolution's managing director and CEO Lawrie Conway.
"Today, the board has approved the project which has compelling returns of 71% at current spot gold price and a short payback period.
"It will contribute to the goal of sustaining Cowal's current production rate, while at the same time delivering significant economic benefits of all stakeholders."
