AUS
NZ
UK
CA
USA
IND
Evolution Mining Limited (ASX:EVN) announced that it has acquired 19.9% shareholding in Tribune Resources Limited (ASX:TBR). The company acquired 11.05 million shares for a cash consideration of A$41.3 million. The acquisition was in line with the company's interest in the East Kundana mining operations in which Tribune controls 36.75% stake. The East Kundana mining operations are a joint venture which hosted a total Mineral resource of 10.54Mt grading 6.1g/t for 2.6Moz Au and ore reserves of 6.15Mt grading 6.3g/t for 1.24Moz Au as at 30th June 2018.
Operational Updates:
As per the company's recent announcement, its Cowal operations is developing a pathway to produce more than 300Kozpa. Since the company acquired it in July 2015, Cowal project produced 878Koz, with a net mine cash flow of A$464 million. The company successfully extended the Cowel mine life by eight years from 2024 to 2032 and extended the ore reserve from 1.6Moz to 3.0Moz since the acquisition. The plant throughput also increased from 7.2Mtpa to 8.0Mtpa and a new ore body named as Dalwhinnie lode is also discovered.
The gold production guidance for Cowal for FY19 is in the range of 240â250Koz with the AISC in the range of US$705âUS$780 per ounce.
In the Ernest Henry operations, the company's interest is generating free cash flow in excess of A$200 million per year and drilling is planned to extend the mine life in December 2019 quarter.
The gold production guidance of FY19 is in the range of 85-95koz and copper production guidance for FY19 is in the range of 19â21kt from Ernest Henry.
In Mungari operations the company's objective is to reach 150Koz of production through high-grade discoveries and improvement in plant efficiencies.
The gold production guidance for FY19 is in the range of 125â135Koz with AISC in the range of US$760âUS$780 per ounce from Mungari.
As per the company, Mt Carlton underground mine development will bring access to high-grade Link Zone, and it has a current mine life to FY25 with likely extensions. The gold production guidance is in the range 95â105Koz with AISC in the range of US$485âUS$520 per ounce from Mt Carlton.
As per the company, it is among the top 20 lowest cost producer's gold miners in the Van Eck Gold Miners Index (GDX).
Financial Position:
The company marked a 75% increase in operating cash flow per ounce since FY14 with the operating cash flow of A$580 per ounce in FY14 to A$1,015 per ounce in FY19H and have the balance sheet liquidity of A$664 million with A$314 million as a cash balance. The net bank debt position is at A$41million.
The company marked a debt repayment of A$854 million and a dividend payment of A$343 million since FY15. The hedge book of the company is at 475,000oz at A$1,816/oz.
Share price action:
During the time of writing this report, the share of the company settled the dayâs trading at A$3.640(as on 25th February 2019), down by 1.622% from its previous close. During the session so far, the day's low is marked at A$3.600 and day's high is marked at A$3.690 with an average volume of 8,226,235.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
