Up 30% in a month, why the Evolution Mining share price can keep climbing: expert

The Evolution Mining Ltd (ASX: EVN) share price has been on a tear over the past month, leaping 30%.

It’s been a solid month for ASX gold stocks overall, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gaining 16.5% compared to the 6.5% gain posted by the S&P/ASX 200 Index (ASX: XJO).

Still, the Evolution Mining share price increase leaves those gains far behind.

But that doesn’t mean the gold miner can’t keep the good times rolling.

Why the Evolution Mining share price can keep climbing

Investment advisor at Seneca Financial Solutions Arthur Garipoli is decidedly bullish on Evolution Mining.

According to Garipoli (courtesy of The Bull), “Potentially slowing interest rate increases and a peaking US dollar should support the gold price, so we believe there’s good value in the gold sector.”

Garipoli pointed to an improving outlook at the miner’s projects, which should offer support for the Evolution Mining share price.

“Metrics at EVN projects, including the challenging Red Lake, are improving. We believe guidance is conservative,” he said. “We like the company’s outlook and see potential upside from here.”

On its quarterly report for the three months ending 30 September, Evolution maintained its production and all in sustaining cost (AISC) guidance for FY23 at approximately 720,000 ounces at a cost of around AU$1,240 (US$870) per ounce.

Evolution said its Red Lake transformation is continuing with the first stope ore mined from the upper Campbell mine having the highest-grade Ore Reserve at Red Lake. The gold grade processed at the project for the reported quarter increased by 14%.

How has the ASX 200 gold miner performed longer-term?

Like most ASX gold stocks, the Evolution Mining share price has fallen alongside gold prices in 2022, leaving the miner’s shares down 34% year to date.

But if Garipoli has it right, shareholders could see this past month’s positive trend continue into 2023.

The post Up 30% in a month, why the Evolution Mining share price can keep climbing: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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