PERTH (miningweekly.com) – Gold miner Evolution has reported a 21% surge in underlying net profits after tax for the 2018 financial year, on the back of a 4% increase in sales revenues.
Underlying net profits after tax for the full year ending June reached A$250.8-million, while statutory net profit after tax also increased by 21%, to A$263.4-million.
Sales revenue for the full year was up 4% on 2017, to A$1.54-billion, despite a 5% decline in gold production, which reached 801 187 oz. A total of 798 101 oz of gold was sold in the full year.
“These results demonstrate the continue delivery of Evolution’s strategy of improving the quality of our asset portfolio to build a business that prospers through the cycle,” said Evolution executive chairperson Jake Klein.
“Despite lower production, Evolution achieved records on almost every other metric which is the result of prioritizing profitability over production and focusing on high quality, low cost, long-life assets.”
All-in sustaining costs for the full year reached record lows of A$797/oz, which was a 12% decrease on the 2017 figures, and well below the original guidance of between A$820/oz and A$870/oz.
Operating mine cash flows for the full year were up by 15%, to A$811.8-million, while net mine cash flow increased by 17% on the previous year, to A$539.9-million, with all mines contributing positive cash flows after capital investment.
Meanwhile, group operating costs decreased from A$719.7-million to A$705.5-million, largely as a result of the sale of the Edna May operation during the year, which Evolution said resulted in the decrease of A$61.5-million on the prior year.
This was offset by the inclusion of a full 12 months of operating costs from the Ernest Henry mine, which accounted for an increase of A$52.3-million to A$116.4-million.
Looking ahead, Evolution is forecasting gold production of between 720 000 oz and 770 000 oz for the 2019 financial year, with C1 costs expected to be between A$560/oz and A$610/oz, while group all-in sustaining costs are expected to be between A$850/oz and A$900/oz.
Evolution is expected to spend between A$150-million and A$180-million in 2019 on growth and exploration projects, with between A$70-million and A$75-milion of this spend going on the expansion of the Cowal operation, and between A$6-million and AR9-million on the Float Tails Leach project