Strong Q4 helps Evolution hit FY target
Evolution Mining has lifted output and cut costs in the June quarter, helping it easily hit full-year production and cost guidance.
Australia's second largest gold miner produced 218,079 ounces in the three months to June 30, nearly 7.5 per cent more than the prior quarter and its highest ever quarterly output.
That helped it push up full-year production to 844,124 ounces of gold, near the top end of its 800,000 to 860,000 ounce guidance range.
"Evolution's diversified portfolio delivered across the board in the June 2017 quarter," the company said in a statement.
"Ernest Henry, Mt Carlton, Edna May and Cracow all produced their best quarter of the financial year."
All-in sustaining cost dropped to $825 an ounce for the quarter, taking the full-year figure to $905 an ounce, an improvement of 11 per cent over the previous year and within the targeted $900 to $960 an ounce range.
Royal Bank of Canada analyst Paul Hissey called its a strong quarter capping off a good year for the company.
"While this result was strong, we take a step back and consider options for Evolution given most of the company's assets are performing well," he said.
"While the company has stated they are pursuing a turnaround strategy at Edna May (mine), speculation persists around the assets ongoing place within the company."
Recent media reports have speculated that Evolution has been approached by a number of potential buyers for the Edna May mine in WA.
The company last year sold its Pajingo gold mine in Queensland to Chinese-owned Minjar Gold for about $50 million as part of efforts to improve its asset portfolio.
On Thursday, the company said it had realised record operating cash flow of $200.4 million in the June quarter, boosting full-year cash flow by 12 per cent to $706.5 million.
The strong cash flow helped it repay $125 million of debts during the quarter, taking net debt to $399 million, it said.
By 1130 AEST, Evolution shares were up 1.9 per cent to $2.19 in a firm Australian market.
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