Evolution posts record production

Evolution Mining has recorded record quarterly and annual production on the back of an “outstanding” result at its Edna May mine, adding to the ranks of gold miners to post impressive results this month.

Sydney-based Evolution reported production of 113,821 ounces in the June quarter and 437,750oz in the 2014-15 financial year.

Its production will be much larger in the current financial year, after it completes the purchase of La Mancha’s Mungari operation in WA and Barrick Gold’s Cowal mine in NSW.

The star operation last year was the Edna May mine in WA, where Evolution lifted production by 23 per cent to 98,766oz – well above the FY15 forecast of 80,000 to 90,000oz.

Costs at Edna May were also below guidance, with an all-in sustaining cost (AISC) of $898/oz.

The strong production report was not enough to offset the weak sentiment in the gold sector, following yesterday’s dramatic fall in the gold price.

Evolution shares slumped 2.5 cents today to close at 94.5 cents, down from about $1.25 early this month.

Most other gold stocks also slumped today, adding to yesterday’s falls, though Northern Star Resources defied the trend, gaining 6 cents to $2.13 per share.

Evolution’s production report followed several other miners reporting record output and stronger financial results in the June quarter.

Northern Star reported record June quarter sales of 152,447oz, lifting annual sales to 580,784oz.

This was around the mid-point of its full-year guidance of 550,000 to 600,000oz.

Other miners posting record June quarter production were Saracen Mineral Holdings (46,563oz) and Doray Minerals (28,180oz).

Melbourne-based St Barbara posted quarterly production of 99,359oz, exceeding the upper end of its guidance range.

Contributors included record production at its Gwalia mine in WA.

Regis Resources announced last week it would resume paying dividends on the back of its strong results.

It is targeting a payment of 5-7 cents per share in the December 2015 quarter.