Evolution Mining Limited moves a step ahead of achieving its objective of over 300,000 ounces per annum. In an early trade today EVN shares jumped as high as 2.239% to $2.740 after the company gets the sooner than expected regulatory approval from the NSW Department of Planning and Environment in respect of increasing processing rate at Cowal.
In an announcement to Australian Securities Exchange, gold miner Evolution Mining Limited said that its Cowal Gold Operation has been granted the regulatory approval from the New South Wales’ Department of Planning and Environment to uplift the plant processing rate by 31%, which means a sharp rise from 7.5 million tonnes per annum processing to 9.8 million tonnes per annum.
This comes after the company has submitted a modification application to the department in March 2018, along with Environmental Assessment stating the detailed measures that will be taken by the company to mitigate any potential environmental impacts from the increased processing rate. Evolution Mining told that Environmental Assessment was highly supported by the community members and was prepared in consultation with them, the Local and State Government agencies and other relevant stakeholders.
Cowal gold operation is an open pit mining operation that is engaged in gold production. The wholly owned project of Evolution Mining Limited, Cowal is located 40km north-east of West Wyalong on the traditional lands of the Wiradjuri People, in New South Wales.
Evolution’s Executive Chairman, Jake Klein stated that this approval outlines a significant step towards the company’s objective of achieving increased Cowal’s annual production rate to over 300,000 ounces per annum. [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]
However, the expansion of processing plant is estimated to surge the capital expenditure by $40-$45 million. As per the current report, the company underway the detailed feasibility studies for the expansion to the March 2019 quarter.
With this enhancement in EVN’s plant processing rate, the gold miner obtains the right of 2.3 mtpa more processing. It will also allow the implementation of a secondary crushing circuit at the processing plant and the development of Integrated Waste Landform to facilitate the storage of ore residual over the life of mine.
As at 5 October 2018 (12:51 PM AEST) the stock of Evolution Mining Limited is trading at $2.735. The share price of EVN rose by 22.94% over the past one year, but in the last three months it has been seen dropping down, recording a 21.41% plunge in past 3-month period. Currently, EVN is trading at a PE of 17.210 x with market capitalization of $4.55 billion.
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