PERTH (miningweekly.com) – Gold miner Evolution has reported a 16% increase in production during the three months to June, compared with the quarter ending March.

Gold production in the June quarter increased to 172 722 oz, up from the 148 787 oz produced in the March quarter, while gold sales remained fairly on par at 161 066 oz, down slightly from the 162 015 oz in the previous quarter.

Copper production in the June quarter reached 15 301 t, with 15 728 t of copper sold in the same period.

Deliveries into the Australian hedge book totalled 25 000 oz at an average price of A$1 882/oz and 10 000 oz were delivered into the Canadian hedge book at an average price of C$2 267/oz. The remaining 126 066 oz were sold in the spot market comprising 101 394 oz delivered at an average price of A$2 615/oz and 24 671 oz delivered at an average price of C$2 388/oz.

Evolution on Thursday reported that production at the Cowal mine, in New South Wales, increased by 14% during the June quarter to 60 899 oz, as the new underground mine continued to ramp up.

In Queensland, the Ernest Henry gold and copper mine produced 21 337 oz of gold and 15 301 t of copper, while Mt Rawdon produced 16 304 oz of gold. The Mungari operation, in Western Australia, contributed 35 561 oz of gold during the three months under review, while Red Lake, in Ontario, contributed 38 620 oz, a 17% increase on the March quarter production.

Meanwhile, Evolution reported that all-in sustaining costs for the June quarter were higher at A$1 290/oz, up from the A$990/oz in the March quarter, owing to a lower realised copper price.

For the full year, Evolution’s group gold production reached 640 275 oz, with all-in sustaining costs (AISC) reported at A$1 259/oz. Gold sales in the full year reached 641 413 oz, at an average gold price of A$2 425/oz, while 39 293 t of copper were sold at an average price of 12 546/t.

Looking ahead, Evolution is expecting gold production to increase by 25% over the next two years, and the miner has set a production target of 720 000 oz for the 2023 financial year, and 800 000 oz for the 2024 financial year.

Group AISC for both 2023 and 2024 is expected to reach A$1 240/oz.

The gold miner is expected to spend between A$530-million and A$600-million on major capital expenditure in 2023, and a further A$330-million to A$380-million in 2024, while sustaining capital expenditure for both years has been maintained at between A$190-million and A$240-million a year.