Evolution Mining Falls Short of Gold Production and Cost Guidance

by Warren Seah

Evolution Mining has reported that it fell short of its revised annual gold production and cost guidance due to weather-related disruptions at its Ernest Henry mine. Despite its efforts to overcome the challenges caused by wet weather, the company’s output for the 12 months through June stood at 651,155 troy ounces of gold, slightly below the updated target of approximately 660,000 oz that was provided to investors in April. Similarly, the annual copper output of 47,348 metric tons was just shy of the revised guidance of around 48,000 tons.

During fiscal year 2023, Evolution’s all-in sustaining costs averaged AUD 1,450 per ounce, compared to the target of AUD 1,390/oz outlined in April. Although the Ernest Henry mine returned to full capacity before the end of June, the heavy rainfall on March 8 resulted in a loss of approximately AUD 160 million in cash flow.

Despite these setbacks, Evolution Mining has maintained its fiscal 2024 guidance. The company aims to achieve a 17% increase in gold output, reaching 770,000 oz, and a 5% increase in copper production, amounting to 50,000 tons. Evolution anticipates that all-in sustaining costs will average AUD 1,370/oz.

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