Photo by: Bloomberg
PERTH (miningweekly.com) – Gold producer Evolution will be prioritising margins over production growth in the next three years, with the miner projecting a decrease in output over the next three years.
The company stated that it would produce about 700 000 oz/y for at least the next three years, compared with 801 187 oz delivered in the 2018 financial year. The projected decrease in production stems from asset divestments and grade trending to reserve level.
Evolution on Tuesday told investors that the company’s capital expenditure would remain elevated in the 2019 financial year, as it invested in major projects at the Cowal mine, but this was expected to decline from the 2020 financial year onwards.
In 2019 and 2020, Evolution will spend between A$70-million to A$75-million, with a further A$60-million to A$65-million capital spend targeted for the 2021 financial year.
On the Cowal plant expansion, Evolution will spend between A$40-million and A$45-million over 2020/21, while the Mt Rawdon cutback will see the company spend between A$25-million and A$30-million in 2019, and a further A$25-million to A$30-million will be spent in 2021 on the Mungari regional pits and the White Foil underground operation.
Furthermore, Evolution will be investing between A$40-million and A$55-million on exploration in 2019.
All-in sustaining costs (AISC) for 2019 and 2020 have been estimated at between A$850/oz and A$900/oz, while 2021 AISC would be slightly higher at between A$870/oz and A$920/oz.