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Highlights
- Record Cash Flow: Q2 operating cash flow surged 31% to AU$561 million, while net mine cash flow climbed 53% to AU$263 million.
- Gold Production: Produced 194,793 ounces of gold at an all-in sustaining cost (AISC) of AU$1,543 per ounce, below sector averages.
- FY25 Guidance: On track to produce 710,000–780,000 ounces of gold and 70,000–80,000 tonnes of copper at an AISC of AU$1,475–AU$1,575 per ounce.
Shares of Evolution Mining Ltd (ASX:EVN) were up 1% on Wednesday morning, trading at AU$5.72, following the release of its quarterly update. The ASX 200 gold stock impressed investors with record cash flow and steady gold production amid a high metal price environment.
Quarterly Performance
For the three months ending 31 December 2024, Evolution Mining reported gold production of 194,793 ounces, a slight quarter-on-quarter increase and in line with consensus estimates. Copper production, however, declined by 2.6% to 18,554 tonnes, slightly missing expectations.
The company maintained a competitive all-in sustaining cost (AISC) of AU$1,543 per ounce (US$959 per ounce), which, while higher than consensus estimates of AU$1,515 per ounce, remains one of the lowest in the sector.
Evolution benefited from an average gold sales price of AU$4,069 per ounce during the quarter, resulting in record operating cash flow of AU$561 million, up 31%, and net mine cash flow of AU$263 million, up 53%.
Management Commentary
Lawrie Conway, Managing Director and CEO of Evolution Mining, expressed satisfaction with the results, stating:
"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. We are on track to meet our guidance for the year, which should provide a significant step up in cash flow compared to FY24."
Conway also highlighted the progress on growth projects, noting that the Mungari expansion is now nine months ahead of schedule and 6% under budget. Recent exploration successes are expected to further enhance the company’s high-margin portfolio.
Outlook
Evolution Mining reaffirmed its FY25 guidance, forecasting production of 710,000–780,000 ounces of gold and 70,000–80,000 tonnes of copper at an AISC of AU$1,475–AU$1,575 per ounce.
Despite an anticipated dip in Q3 production due to scheduled maintenance at Cowal and Ernest Henry, the company remains optimistic about its annual targets. Management emphasized its commitment to delivering strong cash flow and advancing key growth projects.
