Evolution Mining Sets Up FY24 for Cash Flow Growth and Returns: A Look at June Quarter and FY23 Highlights Evolution Mining Limited

A Aussiebull88 2y Staff

Evolution Mining Sets Up FY24 for Cash Flow Growth and Returns: A Look at June Quarter and FY23 Highlights

Evolution Mining Limited has released its Quarterly Report for the June 2023 fiscal year, highlighting key achievements and developments. The company is optimistic about the material increase in cash flow and returns in the upcoming fiscal year, setting the stage for further growth. Here are the highlights of the report:

Improved Safety Performance and Gold Production

Evolution Mining has shown improvement in its safety performance, with a 19% reduction in Total Recordable Injury Frequency (TRIF) year-on-year, reaching a rate of 8. 6. In terms of gold production, the company produced 651,155 ounces in the FY23, which is approximately 1% from the updated FY23 guidance released on April 11, 2023.

Cash Flow and Operational Highlights

The All-in Sustaining Cost (AISC) for FY23 was $1,450 per ounce (US$976/oz). The company generated an operating mine cash flow of $944 million and a mine cash flow before major capital of $747 million.

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However, there was an impact on cash flow due to a weather event at Ernest Henry, amounting to approximately $160 million. Despite this, Evolution Mining still maintains liquidity of $516 million, with an expected improvement in FY24 in line with projected cash flow.

Operational Highlights and Project Developments

Cowal achieved record annual production of 276,314 ounces, with a projected increase of ~15% guided for FY24. Ernest Henry production returned to full capacity by the end of June following a weather event in March. Mungari continued to deliver stable and consistent production, exceeding plans for six consecutive quarters. Red Lake saw a 12% increase in production to 31,562 ounces, along with a record quarter of mine development at 4,173 meters.

As for the project highlights, Cowal successfully completed the Underground Mine Project. The Mungari mill expansion project was also approved, which will extend the mine life to 2038 and increase production to an average of ~200,000 ounces per year for the first five years. Furthermore, the Ernest Henry Mine Extension Pre-Feasibility Study was conducted, extending the mine life to at least 2040.

Extending Mine Life and New Discoveries

Ernest Henry's Ore Reserve estimate was doubled, now standing at 77. 4 million tonnes, with a contained copper of 589 thousand tonnes and contained gold of 1. 1 million ounces. New drilling results at Ernest Henry confirm encouraging extensions to mineralization within the Mine Extension Feasibility Study footprint, with expectations of driving further growth of the Mineral Resource. More updates regarding this will be provided in the September quarter.

Evolution Mining is poised for a fruitful FY24, with a focus on cash flow growth and generating returns. The company's operational highlights, project developments, and discoveries contribute to its long-term strategy of extending mine life and increasing high-margin production.

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Aussiebull88 2y

#ASX:EVN Evolution Mining Sets Up FY24 for Cash Flow Growth and Returns: A Look at June Quarter and FY23 Highlights

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