https://www.miningweekly.com

Evolution swings to A$50m profit on higher output

28th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Gold major Evolution Mining swung to a profit in the financial year ended June 30, on the back of a 9% increase in gold production and reduced capital expenditure (capex).

Evolution reported profit of A$50-million, compared with a net loss of A$307.4-million in the previous financial year. The miner said the increased profit resulted from the completion of construction at Mt Carlton, as well as improved capital budgeting discipline.

“This set of results shows the strength of the Evolution asset portfolio. All of our mines generated positive cash flow and achieved meaningful cost savings, compared to previous years,” said Evolution chairperson Jake Klein.

During the year under review, the company produced 427 703 oz of gold, which was within its guidance, generating a sales revenue of A$634.4-million, up 5% on the 2013 financial year.

Gold production was 9% higher in the year under review owing to the additional gold and silver produced from the Mt Carlton mine, in Queensland. The production growth was partly offset by lower average realised gold prices in the period, Klein pointed out.

As a result of the Mt Cartlon mine coming into production, Evolution's capex declined from the A$374.7-million in 2013, to A$154.3-million in 2014.

The ASX-listed gold miner responded to the lower gold price environment by implementing further productivity and efficiency initiatives across all of its operations and maintaining a strict discipline in relation to discretionary expenditure.

All-in sustaining costs (AISC) for the year under review reached A$1 083/oz, compared with year earlier costs of A$1 228/oz. However, total costs of sales for the period increased by 8%, to A$539.8-million, compared with the A$498.8-million reported in the previous financial year, owing to increased activity at the Mt Carlton mine following the start of commercial production.

Earnings before interest, taxes, depreciation and amortisation declined by 2%, to A$207.5-million during the full year, compared with the A$211.7-million reported in the previous financial year.

“Evolution is in a strong financial position and we are confident of achieving production and cost guidance in the coming year,” Klein added.

Group production was forecast at between 400 000 oz and 440 000 oz for 2015, at an AISC of between A$1 505/oz and A$1 130/oz. Klein pointed out that the production forecast for 2015 was similar to the production levels achieved in 2014 and reflected the steady-state production of all operations.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION