Gold miner Evolution Mining hits out at Australia’s handling of Covid pandemic
Evolution Mining has hit out Australia’s handling of the Covid-19 pandemic, noting that of its five mine sites, the only one open to company visitors is in Canada.
Evolution Mining has hit out Australia’s handling of the Covid-19 pandemic, noting that of its five mine sites, the only one open to company visitors is in Canada.
The pandemic is proving troubling for the company, with tight labour markets in Western Australia and lockdowns blocking travel.
Chief executive Jake Klein said Evolution has five assets around the world “and the only one our people can legally visit is in Red Lake, Canada.”
“Australia has gone from leading this pandemic to being a laggard,” he said.
“There is only one solution out of this mess and that is to get everyone vaccinated. It is really important for our mental health our industry and our country.”
The company noted it was dealing with price increase in labour and contractor rates, with costs up 3.5 per cent. However, this was offset by lower power and fuel costs.
Mr Klein said he was concerned about the role border restrictions were playing in WA “given the heated labour market”.
The company said it was well placed to deliver in the coming year with a high growth pipeline of projects.
“We continued to upgrade the quality of the portfolio with our commitment to develop the Cowal Underground mine, and district consolidations completed at both Red Lake and Mungari to further enhance those cornerstone operations,” he said.
The miner delivered a profit of $345.3m, up 14 per cent on the back of higher gold prices. This is despite an overall decline in revenues which fell 11.19 per cent to $914.2m.
Gold production fell to 680,788 ounces, down from 746,463 last year.
Evolution’s copper sales of $236.9m were also boosted by higher prices.
Evolution has flagged a guidance of 700,000-760,000 ounces of gold production in the coming year.
The company said it expected to spend $125m-$150m on capital investments, largely on its Red Lake and Cowal mines to extend their lifespans.
Evolution recently acquired the Battle North mine for $C343m to accelerate growth at its Red Lake site.
Evolution’s board has also approved development at the Cowal underground mine, with a planned investment of $380m to fund the site.
Evolution will also likely spend $440m-$510m on major capital works in the coming year, including the underground mine at Cowal. The development will extend the Cowal project’s life for 17 years.
Evolution has also completed the deal to acquire Northern Star Resources, paying $400m cash via a fully underwritten institutional placement and share purchase plan.
