Evolution mining: Quarterly Report for December 2023

Evolution Mining has released its quarterly report for December 2023, showcasing significant financial and operational results. Key highlights include:

• Gold production for the quarter was 161,073 ounces, with an All-in Sustaining Cost (AISC) of $1,618 per ounce (US$1,052/oz).
• The company reported a substantial group cash flow of $78.8 million, excluding dividends and Northparkes acquisition funding, marking a $105.2 million increase from the previous quarter.
• Net mine cash flow surged by 85% to reach $131.8 million.
• The company's strong financial position is evident with $191.0 million in cash and a total liquidity of $716.0 million. The revolving credit facility has been completely repaid and remains undrawn.

Northparkes Acquisition

Evolution Mining successfully completed the acquisition of an 80% interest in the Northparkes copper-gold mine. The mine contributed 1,193 tonnes of copper and 1,011 ounces of gold, generating a cash flow of $9.5 million after accounting for the Triple Flag stream commitment.

FY24 Group Guidance

• The company maintains its FY24 guidance, expecting gold production of around 789,000 ounces (+/-5%) and copper production of 62,500 tonnes (+/-5%). The AISC is projected to be around $1,340/oz (+/-5%).
• All operations, with the exception of Red Lake, are on track to meet or exceed their production guidance mid-points. Due to first-half performance issues and revised plans for the second half, Red Lake’s guidance has been adjusted to 125-135,000 ounces.

Operational Performance

• Ernest Henry reported steady production and a net mine cash flow of $103.6 million.
• Progress at Cowal included the continuation of underground ramp-up and nearing completion of the paste plant commissioning.
• Red Lake's production faced challenges due to materials handling constraints and seismic-related restrictions, resulting in a reduction of approximately 13,000 ounces of gold.