The stock of Evolution Mining Limited (ASX: EVN) jumped as high as 6.273% after the EVN’s Board has given green signal to Mt Carlton underground mine development.
In today’s announcement to ASX, Evolution Mining Limited told that it has received the Board approval to advance underground development of higher-grade Link zone at Mt Carlton. The Board has also approved for Stage 4 pit cut-back as well as plant modification requirement.
Mt Carlton is 100% Evolution owned project located on the traditional lands of the Birriah People, 150km south of Townsville Queensland, Australia. With the mine life at least to the year 2025, Mt Carlton contains gold, silver and copper metals. The deposit is mainly divided into two zones, the large gold rich V2 deposit and the silver dominant A39 deposit.
But at what cost is this development coming?
Australian gold miner Evolution Mining Limited estimates to spend ~$60 million for the development. This outlines the total estimated capital expenditure required for the development of underground mine and plant modification, of which $10 million is reported to be spent in Fiscal Year 2019 while the remaining ~$50 million over three years from FY20 to FY22.
Further, the group informed that FY19 capital cost component was included in FY19 guidance of $25 - $30 million in capital at Mt Carlton.
Evolution’s Executive Chairman, Jake Klein stated that company continue to focus on margin growth and profitability. He told that Mt Carlton is an extremely high margin asset in Evolution’s portfolio which has generated more than $100 million net cash flow every year over the past three years.
The miner said on Thursday that the Board’s approval allows to advance production of high margin ounces at Link zone of Mt Carlton. After the start of underground development, the company intends to commence drilling at ‘promising’ drill intersection that currently do not form part of underground resources or reserves.
Meanwhile, the Evolution Mining Limited has recently moved closer to its target of 300,000 ounces per annum. This comes after the miner receives sooner than expected regulatory approval from the NSW Government for increasing processing rate at Cowal.
In an announcement dated 5 October 2018, 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. However, the expansion of processing plant is estimated to surge the capital expenditure by $40-$45 million.
Evolution Mining Limited second quarter results for the period ending 30 September 2018 is scheduled to be released on 15 October 2018.
Market sentiments were remarkably bullish in today trading session for EVN as it has gone up by 6.27% or $0.170. The stock of Evolution Mining Limited last traded at $2.880 on 11 October 2018. EVN has seen a stock performance of +18.86% over the past one year, but it has witnessed a plunge of 20.53% in the last three months.
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