ASX 200 gold share Evolution Mining gains on increased production and falling costs

S&P/ASX 200 Index (ASX: XJO) gold share Evolution Mining Ltd (ASX: EVN) is marching higher on Tuesday. The Evolution share price was up more than 2% in early trade and is currently up 0.3% at $3.26 per share.

This comes on the heels of this morning’s release of the gold miner’s December quarterly report along with updates on several of its gold projects.

Below we look at the highlights from the quarter just gone.

ASX 200 gold share gains as costs fall

The Evolution Mining share price is in the green after the miner reported a 3% quarter-on-quarter increase in gold production to 166,404 ounces.

Copper production was up 7% from the prior quarter to 15,483 tonnes.

On the cost side, the ASX 200 gold share reported a 27% reduction in all-in-sustaining costs (AISC), which dipped to $1,099 per ounce (US$722/oz). This came alongside a 6% increase in the miner’s achieved gold price.

These factors saw Evolution Mining’s operating mine cash flow grow 31% to $270 million for the quarter.

The company reported it held $313 million in cash with liquidity of $838 million after scheduled debt repayments of $40 million.

Both its Cowal and Ernest Henry projects were highlighted as standout performers. Ongoing exploration drilling at Ernest Henry has intersected significant mineralisation indicating a potential expansion.

Evolution also reported on promising assay results just in from a diamond drilling campaign at its Cue Joint Venture with Musgrave Minerals Ltd (ASX: MGV) in Western Australia’s Murchison district.

What did management say?

Commenting on the results sending the ASX 200 gold share higher, Evolution CEO Lawrie Conway said:

We generated very strong operating cash flow this quarter which reinforces our position as one of the lowest cost, highest margin global gold producers. Our sustained focus on operating and capital costs in the current environment continues to deliver benefits.

What’s next for the ASX 200 gold share?

Evolution Mining maintained its FY23 production and AISC guidance at 720,000 ounces (+/- 5%) and $1,240 ounces (+/- 5%).

“We remain on track to deliver Group FY23 production and cost guidance with planned quarterly performance weighted to the second half of the year,” Conway said.

Evolution Mining share price snapshot

As you can see in the chart below, the Evolution Mining share price took a tumble as gold prices retraced mid-2022. Over the past 12 months, the ASX 200 gold share is down 18%.

The post ASX 200 gold share Evolution Mining gains on increased production and falling costs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• ‘Upwards trend to continue’ for this ASX 200 gold share: expert
• ‘No signs of weakness’: Expert names 2 ASX shares to buy just starting their rise

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.

from The Motley Fool Australia https://ift.tt/A4rZVTR