Evolution says costs to rise as output falls
Evolution expects annual costs to be higher than forecast, as it posted a small drop in gold output.
Evolution Mining says it expects annual costs to be higher than previously forecast partly because of operational problems at one mine, as the company recorded a small drop in first-quarter gold output.
The Australia-based miner raised its projection for fiscal 2020 all-in sustaining costs by $50 a troy ounce, to between $940-$990 an ounce. The change was tied to stability issues at its Mt Rawdon pit and changes to royalty and by-product credit expectations after it revised metal-price assumptions, it said.
Evolution said gold production totalled 191,967 troy ounces in the three months through September, versus 194,886 ounces in the quarter immediately prior.
Still, cash flow was lifted by a jump in gold prices. Evolution said it posted record group free cash flow of $158.6 million, up 45 per cent on the quarter immediately prior.
Dow Jones Newswires