PERTH (miningweekly.com) – Gold miner Evolution Mining has reported a 22% year-on-year increase in net profit for the six months ended December, despite a lower average gold price.

During the interim period under review, Evolution reported a net profit of A$43.1-million, with revenue from gold, silver and copper sales increasing by 1% year-on-year to A$325-million.

Evolution executive chairperson Jake Klein said on Wednesday that the increase in net profit was driven by continued gains in cost savings delivered across the company, as well as record production of 220 444 gold equivalent ounces, compared with the 214 396 oz delivered in the first half of 2014.

Earnings before interest, taxes, depreciation and amortisation also increased by 19%, from the A$110.8-million reported in the first half of 2014, to A$131.7-million.

“Evolution continues to deliver reliable and predictable operating performance coupled with strong margin expansion. Our record net profit was achieved despite the gold spot price averaging below A$1 400/oz during the half year, around A$150/oz lower than the current gold price.”

Klein said that this was a direct reflection of Evolution’s ongoing focus on innovation and cost reduction initiatives.

Operating costs during the period reduced by 8%, to A$181.3-million as a result of the stronger focus on cost control over the operating activities. However, this was slightly offset by an increase in reserve and resource figures with the record half-yearly production.

During the interim period, the group average cash costs reached A$710/oz, while the all-in sustaining costs reached A$1 035/oz, both below the full-year guidance range.

Total group capital expenditure for the interim period was A$89.5-million, and Klein said that for the full year, the miner was expected to spend between A$135-million and A$175-million on capital projects.