PERTH (miningweekly.com) – Gold miner Evolution Mining has updated its production guidance for the 2023 financial year after halting production at its Ernest Henry mine following severe weather in March.

Group production for the 2023 financial year is now targeted for 660 000 oz, down from the 720 000 oz previously guided, with all-in sustaining costs (AISC) increasing from A$1 240/oz to A$1 390/oz. Copper production for the year is targeted at 48 000 t.

Prior to the weather event at Ernest Henry, Evolution was tracking to the lower end of group production guidance and below the group AISC guidance of $1 240/oz. Copper production was tracking above the guidance of 55 000 t by approximately 2 000 t.

Evolution on Wednesday reported that during the March quarter, group gold production reached 163 910 oz and copper production reached 9 668 t, with AISC reported at A$1 291/oz.

The impact of the weather event at Ernest Henry reduced gold and copper production during the March quarter by 6 400 oz and 4 100 t respectively, while production from the Red Lake operation improved by around 13% in the same period, to 28 178 oz following a 7% increase in grades and a 5% increase in processed tonnes.

“The performance for the March quarter was solid despite the weather event impact at Ernest Henry. The team has continued to perform exceptionally to safely resume mining activities and I am extremely proud of their response. Red Lake has improved during the quarter with further improvements expected in the June quarter,” said CEO and MD Lawrie Conway.

“The events at Ernest Henry are the main reason for the updated guidance of 660 000 oz at an AISC of A$1 390/oz. Once Ernest Henry returns to normal operating rates, Evolution will resume its sector-leading low-cost high-margin position.”

The recovery plan at Ernest Henry remains on track to restart mining activities within the previously announced six-week timeframe.

Meanwhile, Evolution told shareholders that sustaining capital is expected to be at or below the lower end of guidance of A$190-million to A$240-million while major capital is expected to be at the bottom end of the guidance range of A$530-million to A$600-million.