Evolution Mining shares surge on quarterly results
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The news: Evolution Mining shares have jumped after it reported strong cash generation and gold production in its quarterly results.
The numbers: The company’s stock was trading 9.95% higher to $4.26 by 12:15pm AEDT.
During the March quarter, the gold miner posted a 7% quarter-on-quarter increase in group cash flow to $85 million and a 12.6% increase in cash balance to $215 million.
It noted that deleveraging of the balance sheet continued, with gearing falling to 28% during the quarter. Revenue was significantly leveraged to spot metal prices, with gold at $3,715 per ounce. Over 95% of gold sales were unhedged and there was no copper hedging.
Gold production rose 15%, and the company noted it expected no change to its FY24 guidance. However, Evolution said production would be at the lower end of the range at around 749,000 ounces and the higher end of the all-in sustaining costs range of around $1,410 per ounce. Copper production was tracking at the high end of the range, at around 65,000 tonnes.
The context: Evolution also announced trecent drilling results are expected to drive resource additions and potential reserve growth adjacent to existing infrastructure at Ernest Henry and Mungari, adding that they were attractive propositions for future production.
Gold prices have soared 20% over the past 12 months as investors have sought safe-haven assets during the current uncertain and volatile investment environment.
What they said: Evolution managing director and CEO Lawrie Conway said: “Our portfolio is well positioned to benefit from high spot gold and copper prices”.
“... Several milestones were achieved with Ernest Henry now fully repaid, Northparkes significant inaugural quarterly cash flow and the cowal underground reaching commercial production, transforming the Cowal operation,” he said.
The source: ASX announcement
