The Evolution Mining share price has dumped 20% in a month. What’s next?

The Evolution Mining Ltd (ASX: EVN) share price has fallen on hard times over the past month.

Investor concerns about a more aggressive rate hike by the US central bank are weighing down the price of gold.

In turn, this is negatively impacting Evolution Mining shares which tanked to a multi-year low of $2.10 earlier this week.

At Thursday’s market close, the gold miner’s shares finished with a small gain of 1.87% to $2.18.

However, despite ending in the green, the share is still down 21% in a month.

In comparison, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is around 13% lower over the same period.

Let’s take a look at what might be ahead for the ASX 200 gold miner.

Evolution eyes improved performance for FY23/24

Investors will be closely watching the next moves from Evolution following the appointment of Lawrie Conway as its first CEO and managing director.

The change comes as the company is seeking to turn its fortunes around after disappointing shareholders with its preliminary results.

However, Evolution founder Jake Klein will remain in his role as executive chair at least until the end of 2024.

The share of responsibilities between Conway and Klein will aim to deliver on the company’s growth projects, in particular the Cowal underground mine development and the new Upper Campbell underground mine at Red Lake.

Klein touched on the new appointment, saying:

The creation of this role will allow us to continue to deliver on both Evolution’s strategic ambitions and operational performance and establishes the organisational structure for the next chapter of growth and development.

Lawrie will bring a necessary whole of business focus as we progress the implementation of our vision of building Evolution into a premier, global gold company.

On a positive note, Evolution said it had started FY 2023 well with July and August operational performance in line with plans.

Production is planned to increase by 12.5% to around 720,000 ounces this year.

This is expected to then further lift by another 11% to around 800,000 ounces in FY 2024.

All-in sustaining cost (AISC) is anticipated to be maintained at roughly $1,240 per ounce for both financial years.

While the outlook looks rosy, where the Evolution share price goes from here also depends on the price of the yellow metal.

If gold continues to fall as it has done in the past month, this will mean a loss of revenue for Evolution.

Evolution Mining share price summary

A tough 12 months marred by inflationary pressures and the ailing gold price has led the Evolution share price to tumble by 42%.

After reaching a 52-week high of $4.75 in mid-April, the share has waddled away by about 55%.

Evolution has a price-to-earnings (P/E) ratio of 12.48 and commands a market capitalisation of approximately $4 billion.

The post The Evolution Mining share price has dumped 20% in a month. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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