Sandvik’s $42m order from Evolution Mining

Gold miner Evolution Mining (ASX: EVN) has placed a major underground equipment order from Sandvik, worth about $42m (SEK 300m).

The order was booked in the second quarter this year, with deliveries scheduled to begin this third quarter and continue over the next 12 months.

The order includes Sandvik’s advanced underground loaders, trucks and development drills to be implemented in different mine sites around Australia.

Sandvik Mining and Rock Solutions president Mats Eriksson says “we are very pleased that we continue to be a trusted partner to Evolution Mining and that we strengthen our partnership further as they renew big part of their fleet”.

Evolution Mining currently operates six mines, being five wholly-owned mines – Cowal in NSW, Ernest Henry and Mt Rawdon in Queensland, Mungari in WA, Red Lake in Ontario, Canada, and an 80% share of Northparkes in NSW.

The miner acquired Ernest Henry from Glencore in January 2022, followed by Northparkes majority in December last year.

As one of the lowest cost gold producers globally, Evolution Mining produced 651,555oz of gold in FY23 at an AISC of $1450/oz. Market capitalisation is $6.4b.

Sandvik aims to have a fully electric underground hard rock offering by 2030 and believes that more than 50% of equipment sales in underground hard rock mining will be electrified.