Evolution Mining Limited (ASX:EVN) Reports Strong December Quarter Performance
Cash Flow and Financial Highlights
Evolution Mining Limited (ASX: EVN) reported substantial growth in cash flow for the December quarter, achieving a record operating mine cash flow of $561 million, up 31% from the previous quarter. This led to a net mine cash flow of $263 million, representing an impressive 53% quarter-on-quarter increase. The company’s overall cash flow rose by 54%, reaching $165 million, with a cash balance of $520 million after the payment of a final dividend of $99 million and a $15 million debt repayment.
Operational Achievements
The company maintained robust operational performance, producing 194,793 ounces of gold and 18,554 tonnes of copper during the quarter. With an All-in Sustaining Cost (AISC) of $1,543 per ounce, Evolution continues to rank among the lowest cost producers in the sector. CEO Lawrie Conway stated, “Our cash flow materially increased by 54% in the December quarter, reflecting the safe delivery of low-cost production and the benefits derived from the high metal price environment.”
Production Insights and Future Outlook
Cowal generated a net mine cash flow of $143 million, while Red Lake marked its second consecutive quarter of positive cash flow with $44 million reported for the first half of FY25. The company is on track to meet its FY25 guidance of 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper at an AISC of $1,475 to $1,575 per ounce. The anticipated impact of scheduled maintenance at Cowal in March is expected to lower production by approximately 25,000 ounces compared to the December quarter.
Sustainability and Safety Performance
Evolution Mining demonstrated a significant improvement in safety performance, reducing its Total Recordable Injury Frequency (TRIF) to 5.44, down from 7.12 in the prior quarter. This marks a 24% improvement and reflects the company’s ongoing commitment to health and safety standards.
Growth and Exploration Initiatives
The Mungari mill expansion project is ahead of schedule and under budget, with early commissioning expected in the June quarter of 2025. Additionally, multiple exploration initiatives have been identified to bolster future growth opportunities, particularly at Ernest Henry and Northparkes. The company has acquired 15 exploration tenements to enhance its growth pipeline.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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