Evolution on track to deliver “over $1.9b operating cash flow” in FY25

Evolution Mining (ASX: EVN) has followed its record FY24 performance, with the company announcing it’s on track to achieve over $1.9b of operating cash flow by the end of FY25.

In Q1 FY25, Evolution generated mine cash flow of $429m, with all operations delivering positive cash flow and major contributions coming from the Cowal and Red Lake operations.

Looking at production, 193,554oz of gold and 19,059t of copper was produced, and with an all-in sustaining cost (AISC) of $1569/oz, Evolution remains one of the lowest cost producers in the sector.

Evolution managing director and chief executive Lawrie Conway says it’s satisfying to start the new financial year in a positive way.

“We have seen the benefits of the foundation laid during the second half of FY24 to ensure safe and reliable delivery in FY25, continuing the momentum of high margin cash flow generation,” he said.

“The September quarter delivered exactly that.

“With spot prices well above the achieved prices in the September quarter and the business delivering to plan, we are on track for over $1.9b of operating cash flow for the year.”

Cowal

The company’s Cowal operation in NSW continues to deliver significant cash flow, with operating mine cash flow and net mine cash flow of $165m and $125m, respectively.

The underground mine is continuing to ramp up, with mined ore increasing across the last four quarters and is now at a 2mtpa run rate.

A total of 83,245oz of gold was produced at Cowal at an AISC of $1581/oz.

Ernest Henry

While Evolution’s Ernest Henry operation in Queensland delivered $97m in operating mine cash flow in the September quarter, this is expected to increase given the current spot copper price is 4% higher than the average price of $13,536/t recorded in the quarter.

Consistent and reliable operations ensured the operation produced 17,200oz of gold and 11,878t of copper, and this was in line with scheduled shutdown work at the mine and processing plant.

A mine extension feasibility study remains due for completion by the end of the March 2025 quarter and work to advance the underground decline access and required mine ventilation system upgrades continue to ensure a successful execution of the extension work.

Northparkes

Northparkes in NSW generated operating mine cash flow of $35m and while it was lower due to scheduled concrete shipments, a higher cash flow will be evident in the December quarter.

In the quarter, Northparkes celebrated its first 30 years of operations, with a further 30 years confirmed following the successful planned maintenance of the hoisting system.

Just under 9000oz of gold and over 7100t of copper was produced.

Mungari

At Evolution’s Mungari operation in WA, operating mine cash flow increased for the fourth consecutive year to $44m, while gold production increased 12% from the prior corresponding period to 32,096oz.

Major capital totalled $84m for the quarter and was driven by the Mungari 4.2 expansion project, development of the UG mine, construction of the Castle Hill Village and fleet additions.

Mt Rawdon

After mining operations concluded during the quarter, processing will continue at Mt Rawdon in Queensland until stockpiles are exhausted at the end of FY25.

Net mine cash flow totalled $21m, which was ahead of Evolution’s expectations.

Red Lake

Red Lake in Ontario, Canada, generated record net mine cash flow and the second highest production under Evolution’s ownership, with net mine cash flow increasing 208% to $27m.

Gold production for the September quarter increased 13% to 37,319oz and AISC decreased 11% to $2267oz.