PERTH (miningweekly.com) – Australian gold miner Evolution Mining has reported higher production in its June quarter, compared with the previous quarter, hitting its full year production targets.
However, the miner this week warned of lower outputs in the 2019 financial year.
Gold production in the June quarter reached 202 254 oz, up from the 191 474 oz produced in the March quarter. Copper production during the period reached 5 643 t.
The Cowal mine, in New South Wales, produced 63 777 oz during the quarter, while Mungari, in Western Australia, produced 30 169 oz. In Queensland, the Mt Carlton mine produced 26 708 oz, while Mt Rawdon produced 31 244 oz, and Cracow delivered 26 154 oz.
Ernest Henry, also in Queensland, contributed 24 202 oz during the three months to June.
In the full year, gold production reached 810 187 oz, which was in line with the guidance of 750 000 oz to 805 000 oz, with Evolution reporting its seventh consecutive year of achieving production and cost guidance.
The Mt Carlton, Cowal, Cracow and Ernest Henry operations all bet the top end of their respective production guidance.
In the full-year, Evolution reported a record low all-in sustaining cost (AISC) of A$797/oz, compared with the guidance of between A$820/oz and A$870/oz.
Gold sold during the quarter reached 208 239 oz, and some 798 101 oz was sold in the 12 months to June, with Evolution reporting a record operating mine cash flow of A$221.9-million for the quarter, and a net mine cash flow of A$136-million in the same period.
However, Evolution this week told shareholders that gold production in the 2019 financial year was expected to be between 720 000 oz and 770 000 oz, with AISC estimated at between A$850/oz and A$900/oz.
In the September quarter, gold production is expected to be between 190 000 oz and 195 000 oz, with AISC forecast to be some A$100/oz higher than the June quarter, and the highest cost quarter of 2019. This is primarily owing to planned lower grades at some sites, treatment of stockpile material at Mt Rawdon, the timing of sustaining capital and the impact of a possible lower copper price.