PERTH (miningweekly.com) – Gold miner Evolution has reported record quarterly production and cash flows during the period ended December, with the miner also posting its lowest reported costs since its formation.

Group production during the quarter increased to 113 280 oz – the highest quarterly production reported since the company was formed three years ago. The record production compared with the 107 165 oz reported in the previous quarter.

C1 cash costs for the quarter fell to a record low of A$692/oz, while all-in sustaining costs reached A$990/oz.

Evolution told shareholders on Thursday that the increased production was largely driven by record gold production and lower costs at the Edna May mine, in Western Australia, as well as significantly lower costs at the Cracow operation, in Queensland.

The Edna May operation produced a record 29 906 oz of gold during the period, an increase of 40% on the previous quarter, owing to both higher grades and reduced ore dilution. Cost savings at Edna May were also achieved in the areas of electricity, diesel and cyanide, Evolution said.

The cost improvements at Edna May, along with the targeted savings in areas such as drilling and blasting were expected to reduce capital expenditure by more than A$4-million in 2015, compared to budget.

The Cracow mine, meanwhile, delivered 23 280 oz of gold, a 7% increase on the previous quarter. Evolution noted that the operation’s focus on cost management and operational excellence resulted in a 16% decrease in cash costs to A$670/oz during the quarter.

At the Pajingo mine, also in Queensland, Evolution reported lower production of 14 118 oz of gold, compared with 18 067 oz in the previous quarter. The gold miner noted that cash costs for the period increased from A$717/oz in the previous quarter to A$853/oz.

Evolution said that lower grades had contributed to the lower production and higher costs.

Meanwhile, production from the Mt Rawdon project and Mt Carlton projects, both in Queensland, reached 27 066 oz and 18 909 oz, respectively.

Looking ahead, Evolution estimated that the group would produce about 100 000 oz during the three months to March, with the company on Thursday maintaining its full-year production expectations of between 400 000 oz and 440 000 oz, at a C1 cost of between A$750/oz and A$820/oz.

Meanwhile, Evolution on Thursday also reported record cash flow from operations of A$39.9-million during the December quarter, which was driven by the record production.

Some 117 359 oz of gold was sold during the quarter at an average price of A$1 428/oz, while silver by-product sales reached 138 972 oz, at an average price of A$18.30/oz.