Evolution costs and production down in March quarter

PERTH (miningweekly.com) – Gold miner Evolution Mining has reported record low group all-in sustaining costs (AISC) of A$840/oz during the three months to March, down 7% quarter-on-quarter.

Group gold production during the quarter reached 202 926 oz, which was in line with the 200 000 oz target previously set by the company, but was below the 217 812 oz delivered in the previous quarter.

The Ernest Henry mine, in Queensland, delivered a standout performance in its first full quarter, producing 22 246 oz of payable gold at a negative AISC of A$447/oz, while the Mt Carlton operation, also in Queensland, delivered 25 536 oz of gold at an AISC of A$509/oz, despite a five-day suspension at the end of March during Cyclone Debbie.

The other Queensland operations, Cracow and Mt Rawdon, delivered 21 388 oz and 24 662 oz respectively. The Mungari and Edna May mines in Western Australia produced 33 915 oz and 10 480 oz respectively. In New South Wales, the Cowal operation delivered 64 699 oz in the three months.

During the quarter under review, Evolution sold 193 431 oz of gold at an average price of A$1 600/oz, with deliveries into the gold hedge book totaling 60 495 oz at an average price of A$1 580/oz. The remaining 132 936 oz of gold delivered on spot markets at an average price of A$1 611/oz.

Evolution told shareholders on Thursday that all sites, with the exception of Edna May were cash flow positive for the quarter after meeting all operating and capital expenditure needs.

At Edna May, Evolution continued to invest in the waste stripping in the openpit and the development of the first stage of the underground mine. The company noted that with higher production and lower capital investment at Edna May in the June quarter, an improved financial performance was expected.

Looking ahead, Evolution noted that the company was well on its way to delivering its 2017 production guidance of between 800 000 oz and 860 000 oz, with AISC costs expected to be in the lower-end of guidance of A$900/oz to A$960/oz.