Evolution Mining Limited (ASX:EVN) reports that its gold production for the March 2020 quarter was 165,502 ounces (Dec qtr: 170,890oz) at an AISC of A$991/oz (Dec qtr: A$1,069/oz).
Using the average AUD:USD exchange rate for the quarter of 0.6584, Group AISC equated to US$652/oz –ranking Evolution as one of the lowest cost gold producers in the world.
As at 31 March 2020, Evolution had cash in the bank of A$168.9 million and bank debt of A$570.0 million post draw down of the Red Lake facility on
31 March 2020 to fund the acquisition. By the date of this report on 23 April 2020 the cash balance and liquidity had increased to approximately A$240.0
million and A$600.0 million respectively.
Evolution delivered mine operating cash flow and net mine cash flow of A$257.4 million and A$159.7 million respectively (Dec qtr: A$233.1M;
A$144.4M). Mine capital expenditure increased to A$97.7 million (Sep qtr: A$88.7M).
Standout operational performances for the quarter:
▪ Mungari produced 32,721oz at an AISC of A$1,099/oz generating record net mine cash flow of A$31.9 million
▪ Cracow produced 22,227oz at an AISC of A$1,150/oz generating record net mine cash flow of A$27.6 million
▪ Ernest Henry produced 20,261oz at an AISC of A$(188)/oz generating net mine cash flow of A$59.6 million
Increased cash flow
▪ Mine operating cash flow increased 10% quarter-on-quarter (QoQ) to A$257.4 million
▪ Net mine cash flow increased 11% QoQ to A$159.7 million
▪ Record net mine cash flow at Mungari (A$31.9 million) and Cracow (A$27.6 million)
▪ Group free cash flow increased 33% QoQ to A$111.5 million
▪ Total liquidity of A$528.9 million including cash of A$168.9 million and an undrawn A$360.0 million revolver
FY20 Group production, excluding Red Lake, is expected to be around 725,000 ounces at an AISC at the top end of guidance of A$990 per ounce.
Should current spot metal prices be maintained during the June quarter, net cash flow is expected to be A$90 – 95 million higher but AISC would be
negatively impacted by ~A$20 – 25/oz due to higher royalties and lower by-product credits. The majority of the higher production in the June quarter is
expected to come from Mt Rawdon accessing higher grade ore in the open pit and Mt Carlton achieving first production from the higher-grade