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Evolution costs spike as production falls

24th January 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold producer Evolution Mining has revealed lower production and higher costs for the quarter ended December, as unanticipated events late in the quarter impacted operations.

The miner on Thursday noted that the Cowal operation, in New South Wales, experienced a five-day unplanned shutdown during December due to a breakdown of the semi-autogenous grinding mill, which resulted in the loss of some 3 500 oz.

Operations at the Mungari operation, in Western Australia, were also affected as access to the high-grade Mist zone was restricted, while the Mt Rawdon operation, in Queensland, processed ore from lower-grade stockpiles.

Group gold production for the December quarter reached 181 996 oz, compared with the 200 218 oz produced in the previous quarter, while all-in sustaining costs increased from A$885/oz to A$973/oz in the same period.

In the year to date, Evolution produced 382 214 oz of gold.

The Cowal operation delivered 58 244 oz of production during the quarter, while Mungari added 29 992 oz. The Mt Carlton operation, in Queensland, produced 26 101 oz of gold during the quarter, while Mt Rawdon accounted for 20 407 oz and the Cracow operation, also in Queensland, accounted for 22 440 oz. Evolution’s interest in the Ernest Henry mine, also in Queensland, added 24 812 oz to the bottom line.

During the quarter under review, Evolution sold 188 534 oz of gold at an average gold price of A$1 730/oz, with some 37 500 oz delivered into the hedge book at an average price of A$1 686/oz. The remaining 151 034 oz of gold was delivered on spot markets at an average price of A$1 740/oz.

Evolution on Thursday told shareholders that the company was on track to ‘comfortably’ deliver on its production guidance of between 720 000 oz and 770 000 oz for the 2019 financial year, with group all-in sustaining costs for the financial year estimated at between A$850/oz and A$900/oz.

Edited by Creamer Media Reporter

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