Ernest Henry pushes Evolution to new heights

25th January 2017 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold miner Evolution Mining has reported record production of 217 812 oz during the December quarter, helped by the acquisition of the Ernest Henry mine from Evolution Mining in November last year.

The miner told shareholders that as a result of the high production, average C1 cash costs declined by 22% compared with the previous quarter, to a record low of A$585/oz.

The Ernest Henry mine, in Queensland, delivered 14 257 oz of gold during the quarter, while the Cowal operation, in New South Wales, also achieved record gold production of 71 903 oz during the quarter under review.

The Mungari mine, in Western Australia, delivered 41 645 oz of gold during the quarter, while the Mt Carlton and Mt Rawdon operations, both in Queensland, delivered 25 674 oz and 25 983 oz of gold respectively.

The Edna May mine, in Western Australia, produced 18 588 oz of gold during the quarter, while Cracow, also in Queensland, delivered 19 763 oz.

Evolution told shareholders on Wednesday that the company was on track to deliver on its full-year production guidance of between 800 000 oz and 860 000 oz, at an all-in sustaining cost of between A$900/oz and A$960/oz.

Meanwhile, the miner noted that in the December quarter, the company delivered operating mine cash flow of A$170.3-million and net mine cash flow of A$102.1-million, allowing for debt repayments of A$70-million.

At the end of the quarter, Evolution had outstanding debt of A$600-million.