PERTH (miningweekly.com) – Australian gold miner Evolution Mining has reported record operating cash flows, net mine cash flows and free cash flows for the quarter ended June, on the back of higher gold production and higher gold prices.
Gold production for the quarter ended June increased to 218 104 oz, compared with the 165 502 oz delivered in the previous quarter, Evolution reported on Thursday.
Gold production from the Cowal mine, in New South Wales, remained steady at 60 594 oz, compared with the 60 554 oz in the previous quarter, while production at Ernest Henry, in Queensland, increased from 20 261 oz to 28 183 oz in the same period.
The Mungari mine, in Western Australia, also saw production increase from 32 721 oz to 37 178 oz, while Mt Rawdon, in Queensland, produced 25 982 oz, up from the 16 434 oz produced in the March quarter. Mt Carlton and Cracow, both in Queensland, remained steady at 14 991 oz and 23 747 oz respectively.
Evolution told shareholders that the company also made good progress at the Red Lake mine, in Ontario, where it is planning to restore operations to above 200 000 oz/y. The Red Lake project produced 27 428 oz of gold in the first quarter under Evolution’s ownership, beating the targeted 25 000 oz.
Gold sales for the quarter were up from 167 374 oz to 218 685 oz compared with the March quarter, with achieved gold prices increasing from A$2 366/oz to A$2 500/oz in the same period.
Evolution’s group cash flows improved by 69% in the quarter under review, to A$187.9-million, after allowing for A$16.2-million of restructuring costs at Red Lake and Mt Carlton, while net mine cash flows for the quarter reached a record A$224.5-million on the back of the higher metal prices.
Record quarterly net mine cash flows were reported for Ernest Henry, Mungari, Mt Rawdon and Cracow, Evolution said, contributing to an annual record net mine cash flow of A$736-million.