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Evolution increases gold production in June quarter, says Red Lake mine output up 17%

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(Kitco News) – Evolution Mining (ASX: EVN) announced yesterday that its gold production for the June 2022 quarter was 16% higher than the prior quarter at 172,722 ounces (Mar qtr: 148,787oz).

The company said that in Australia, Cowal gold production increased 14% to 60,899oz, Ernest Henry gold and copper production were both higher this quarter, Mungari production increased to 35,561oz of gold (Mar qtr: 33,296oz ), and Mt Rawdon produced 16,304oz of gold (Mar qtr: 11,281oz).

Evolution added that in Canada, the Red Lake gold mine transformation focused on operational improvements during the quarter and the operation is now consistently achieving the key metrics required to deliver the FY23 guidance.

Importantly, the company noted that consistent mining performance contributed to the Campbell and Red Lake plants achieving a record for quarterly ore processing at 258,000 tonnes. This, along with an 8% higher processed grade, lifted production 17% from the prior quarter to 38,620 ounces, Evolution said.

The company’s all-in sustaining cost (AISC) was $1,290 per ounce (Mar qtr: $990/oz). The company explained that AISC was higher than the previous quarter largely due to a lower realized copper price with an average of four month’s material open at any point in time.

The company’s gold production is expected to grow by 25% over next two years: Guidance for FY23 is an increase of 12% to around 720,000 ounces +/- 5%, with FY24 outlook increasing a further 11% to 800,000 ounces +/- 5%.

Evolution said it generated cash flow of $66.3 million during the quarter, adding that operating mine cash flow was again strong at $228.0 million, supporting capital investments in major project capital primarily at Cowal and Red Lake. Cash at bank was $572.4 million (31 Mar 2022: $537.8M).

Evolution Mining operates five wholly-owned gold mines – Cowal in New South Wales, Mungari in Western Australia, Mt Carlton and Mt Rawdon in Queensland, and Red Lake in Ontario, Canada. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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