The Australian Mining Review

Evolution Mining (ASX: EVN) has moved into a net cash position following a strong March quarter underpinned by higher gold prices and consistent operational delivery.The company generated $406m in group cash flow for the period, finishing the quarter with a $42m net cash position and total cash holdings of $1.37b.Gold production reached 170,000oz for the quarter alongside 11,000t of copper, at an all-in sustaining costs of $2,220/oz.Evolution says it remains on track to meet its FY26 gold production at lower than original cost guidance, with group copper production now expected to come in around the low end of guidance following weather disruptions at Ernest Henry.High-margin operations across the portfolio continued to drive performance, with record net mine cash flows achieved at both Mungari and Red Lake. Mungari delivered 51,000oz of gold for the quarter, while Red Lake maintained steady output above 30,000oz for the fourth consecutive quarter.Evolution managing director and chief executive Lawrie Conway says the results reflects consistent execution and disciplined capital management.“Evolution continues to generate significant cash flows from consistent operational delivery and disciplined capital allocation,” he said.“We have rapidly deleveraged by more than 31% in just over two years, reaching a net cash position by the end of March.”Across the portfolio, Evolution reported no material disruptions linked to the global fuel supply situation, noting existing supply contracts remain in place.The company also advanced several key growth projects during the quarter, including the E22 block cave and coarse particle flotation project at Northparkes and the Bert orebody at Ernest Henry. These developments are progressing on schedule and within budget, according to the miner.

Electrical workers across BHP’s (ASX: BHP) Pilbara operations began protected industrial action this morning.The Electrical Trades Union (ETU) says the action covers 60 workers across BHP’s Pilbara high-voltage network and includes a ban on overtime, out-of-hours callouts between 6pm and 6am (except in situations which may pose a threat to safety), stepping into supervisor roles and mentoring and training of new high-voltage operators.Some measures will run for a two-week period while others are expected to continue indefinitely.ETA WA secretary Adam Woodage says workers had taken a considered and responsible approach to industrial action.“The safety of the community and other workers is non-negotiable and will always come first,” he said.“Our members don’t take this step lightly, but they are serious about getting the company back to the bargaining table, and BHP’s refusal to bargain in good faith has left them with no alternative.”A BHP spokesperson said the company does not expect any operational impacts.CME chief executive Aaron Morey says the unions only motivation is a short-term cash grab.“They are seeking to effectively double remuneration to $400,000 while also dictating rostering and workforce composition,” he said.“Pilbara iron ore workers are already among the best paid in the country, a result that has been achieved through decades of direct bargaining grounded in the understanding that pay rises are only sustainable when linked to productivity gains.”Mr Woodage says this is not an extraordinary ask.“It’s the standard across workplaces in this country,” he said.“This is targeted, proportionate action… our members want to send a clear message to BHP that they want a genuine say in their wages and conditions, and they want to be treated fairly.“Industrial action and the threat of further escalation will recede the moment BHP stops hiding behind its expensive lawyers and starts bargaining properly with the workers who keep the company running.“Under our order, we’ve built in clear escalation points for industrial action, but this can be resolved quickly if BHP comes back to the table in good faith.”

Hancock Prospecting (HPPL) will have to pay royalties from Hope Downs to one of its biggest rivals after the WA Supreme Court upheld Wright Prospecting’s claim involving legacy deeds signed by Gina Rinehart’s father. The decades-long legal battle has culminated in a ruling from Justice Jennifer Smith, who found HPPL is the beneficial owner of the Hope Downs share but upheld Wright Prospecting’s claim to royalties.The proceedings were concerned with formal agreements made decades ago between Lang Hancock, Peter Wright and Don Rhodes. A major consideration was who held the beneficial ownership of the Hope Downs and East Angelas exploration licenses when they were acquired in 1988 and 1989, and who now holds the beneficial interest in the 50% share of the Hope Downs mining lease. Following the ruling, Hancock Prospecting framed the central issue as ownership of the Hope Downs and East Angelas tenements, rather than “the far less significant issue of royalties”. “HPPL welcomes the WA Supreme Court decision which decisively confirms HPPL’s rightful ownership of these tenements firmly rejecting the baseless ownership claims of John, Bianca and Wright Prospecting Pty Ltd (WPPL) in their entirety,” executive director Jay Newby said in a statement. Hope Downs today generates hundreds of millions of dollars in taxes and royalties for the WA Government. “The remaining Rhodes royalty claim historically attributable to HPPL amounts to approximately $4m per annum for Rhodes and for WPPL approximately $14m per annum,” Mr Newby said. Hancock does not expect to shoulder that burden alone. Mr Newby said any amounts payable in royalties and interest are a shared responsibilities with Rio Tinto (ASX: RIO), its partner in Hope Downs.  “ a further royalty contribution in this regard, which will lessen contribution,” he said.  “We will consult with our partner and consider our position on these matters.” Counsel on both sides will have 21 days to lodge their appeals.

When looking for an answer, is the universal response not “just Google it”?Well, you may have noticed a rewiring of our curiosity instincts, with some now ditching the well-loved search engine for AI.In a world that worships productivity, AI is hailed by many as our saviour — increasingly automating boring and monotonous daily tasks, while humans reap the productivity gains.The internet era, ushered in by the likes of Google, expanded the breadth of information we can access at any given time. Like its predecessor, AI has revealed similar concerns around complacency and cognitive decline. The Google effect, or digital amnesia, is a tendency to forget information that is easily accessible on the internet. A 2011 study highlighted how this altered the way people process information: when we no longer use our memory to its fullest extent our neural pathways atrophy, resulting in shortening memory, reduced concentration and declining analytical skills. It could be seen as an erosion of critical thinking.The growing preference for ChatGPT as a search engine is taking this a step further. Instead of using these tools to free up space for thinking, some are now using it as a substitute.If you find that after less than a minute of mental effort your subconscious is nagging you to “just ask ChatGPT”, you may be letting go of your cognitive wheel and becoming a passenger to the “thoughts” of your LLM of choice.A recent MIT study, Your brain on ChatGPT, reported that excessive reliance on AI-driven solutions may contribute to cognitive atrophy like that seen in the Google effect. But the way people use generative AI is fundamentally different to the way they consume the internet. They aren’t looking up the definition of a word to use in an essay and then immediately forgetting it. They are outsourcing their thinking completely.Sure, cognitive outsourcing has its place. I’m from the generation that pretty much can’t get anywhere without a GPS. And I definitely don’t remember anyone’s phone number.But deep thinking was never meant to be efficient; it is a messy and often tedious process. That is what makes it so effective. When we problem solve, our brains traipse through complex challenges, wrestle with opposing sides, sift through possible outcomes and deduce the best course of action.Thinking is part of what makes us human. By removing this human element and streamlining this process with AI, we risk turning into passive consumers rather than active creators.Think of how Waymo, a self-driving car service in the US, is wreaking havoc for commuters.The AI can’t navigate basic — I mean, complex — scenarios like construction zones or how to not hit a cat crossing the street. When faced with such difficult manoeuvres, the cars end up blocking traffic or causing severe emotional distress for pet owners.From Google Maps to inbuilt assisted parking, anyone who drives a car these days outsources some of their thinking. I’m all for the added safety assists in my car, but I am far more comfortable in the driver’s seat than in the backseat of a driverless car.Though I do love my GPS, if the internet imploded today, I like to think I have enough critical thinking skills to read a map and follow street signs. And if world leaders decided to abolish AI tomorrow, I’d maybe be a little annoyed that I had to actually think about how to spell bureaucrat, but I’d get over it.Maybe it’s time we take back control of the wheel and get our brains to do the driving.I’m not suggesting that you refuse to interact with any form of AI and go off the grid. All that will do is isolate you from the future of the modern world. I am suggesting that if you’re struggling to make a decision or come up with an idea, try to remember you don’t need to ask the omniscient being in your computer to do it for you.And watch out for cats when you’re driving.Off the Record is The Australian Mining Review’s weekly column. 

Newmont (ASX: NEM) has halted underground operations at its Cadia gold mine following a 4.5-magnitude earthquake in the area last night.In a statement, Newmont said there had been no reported injuries.“Safety procedures functioned effectively and all underground personnel were accounted for and progressively returned above ground,” the company said.Underground operations have been paused while specialist teams undertake inspections and assessments.Two aftershocks of magnitude 2.4 and 2.2 were recorded in the area after the initial earthquake.

Yancoal (ASX: YAL) will acquire an 80% interest in the Kestrel coal mine as part of its acquisition of KCG.Kestrel, the largest producing underground coal mine in Australia, has a 25 year mine life underpinned by 164mt marketable coal reserves, according to Yancoal.Rio Tinto (ASX: RIO) previously held an 80% stake in the mine, which it sold in 2018 for US$2.25b.Yancoal chief executive Sharif Burra says the acquisition is a strong strategic fit for Yancoal, adding another high-quality, long-life mine to the company’s portfolio.“Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix,” he said.“The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner.”On completion, Yancoal will pay an upfront cash consideration of $2.5b (US$1.85b) plus contingent cash consideration up to a maximum of $771m (US$550m) in total.Completion of the acquisition is targeted for the end of Q3 CY26.