Evolution Mining produces healthy June quarter

THE BOURSE WHISPERER: Evolution Mining (ASX: EVN) released details of gold production for the June quarter from its portfolio of wholly-owned operations in Queensland and Western Australia.

Evolution’s group gold production for the quarter totalled 112,526 ounces of gold.

This represents a 34 per cent increase on the March quarter, which the company indicated was highlighted by the performance from Mt Rawdon of 35,165 ounces.

FY13 gold production totalled 392,886 ounces, marking a 13 per cent increase on FY12 production of 346,979 ounces, which Evolution said fell within its original and unchanged guidance of 370,000 to 410,000 ounces.

“It is very pleasing to have again delivered a production result that is consistent with our market guidance and is testament to the benefits of having a diverse portfolio of assets, which allows us to deliver a level of operational predictability that is not possible in single asset companies,” Evolution Executive Mining chairman Jake Klein said in the company’s announcement to the Australian Securities Exchange.

“It is also a reflection of the high-performance culture that exists within the company.”

 

Production results for the June quarter and FY13 totals. Source: Company announcement

 

Evolution provided a list of productivity and efficiency improvements it is implementing across the company.

These include:

–    Mining and processing configurations have been reviewed to eliminate higher cost, lower value activities and optimise throughput capacity;

–    Changes to mining fleet to improve productivity;

–    All major capital projects are being reviewed to ensure expenditure is tightly controlled;

–    Supply chain management and inventory control is under renewed focus;

–    All significant contracting and supplier partners are being approached to identify opportunities to improve terms and pricing; and

–    Corporate office recruitment has been suspended and contract labour across all sites and offices is under review.

“Evolution was, in many ways, created for the current market conditions,” Klein said.

“Over the past 18 months we have made significant capital investments in our operations which now provide us with great optionality to respond and optimise our operations for the prevailing gold price environment.

“In addition, we are seeing the benefits of the Australian dollar weakening and input prices starting to fall.

“Our capital investment program has peaked and we are in a strong financial position which gives us confidence that we will emerge as a stronger company.

“We are entering a very interesting and exciting time in the Australian gold sector.”