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EVOLUTION MINING LIMITED — Interim / Quarterly Report 2015
Oct 8, 2015
64885_rns_2015-10-08_faeb3297-290f-4f60-bda0-ec9ef48968ee.pdf
Interim / Quarterly Report
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ASX Announcement
9 October 2015
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ABN: 74 084 669 036 P 02 9696 2900 F 02 9696 2901
Level 30 175 Liverpool Street, Sydney, NSW 2000 www.evolutionmining.com.au
SEPTEMBER 2015 QUARTER SUMMARY
Evolution Mining (ASX:EVN) is pleased to provide a preliminary summary of its production and financial performance in the September 2015 quarter.
Attributable Group gold production for the quarter was 174,169 ounces at an average all-in sustaining cost (AISC)[1] of A$882 per ounce. This equates to an AISC of US$640 per ounce using the average AUD:USD exchange rate for the quarter of 0.726.
With the Cowal and Mungari transactions completed during the quarter, their significant impact on reducing Group costs and increasing cash generation has been immediately evident. Attributable production from Cowal and Mungari reflect 69 days and 37 days of ownership respectively. Total production for the full September quarter was 59,495 ounces for Cowal and 48,538 ounces for Mungari. This equates to a full quarter production from Evolution’s seven operating assets of 216,693 ounces.
Evolution has previously guided FY16 attributable gold production of 730,000 – 810,000 ounces at an AISC of A$990 – A$1,060 per ounce. Group production, cost and capital guidance for FY16 remains unchanged. Evolution will be in a better position to reassess FY16 guidance in January after completing a full quarter of ownership of all assets during the December quarter.
This September 2015 quarter summary is being released ahead of an Evolution investor road show in Asia commencing on 12 October 2015. Full details of Evolution’s quarterly activities will be released on 23 October 2015 and will be accompanied by the usual conference call.
September quarter 2015 Group production and costs
| Attributable production (koz Au) |
C1 cash cost (A$/oz produced) |
All-in sustaining cost1 (A$/oz sold) |
All-in cost2 (A$/oz sold) |
|
| Cowal | 46.4 | 415 | 524 | 529 |
| Cracow | 23.9 | 669 | 940 | 1,024 |
| Edna May | 17.8 | 1,315 | 1,328 | 1,462 |
| Mt Carlton | 24.2 | 495 | 807 | 974 |
| Mt Rawdon | 28.5 | 441 | 700 | 1,115 |
| Mungari | 19.1 | 690 | 968 | 1,031 |
| Pajingo | 14.3 | 941 | 1,284 | 1,445 |
| Evolution | 174.2 | 631 | 882 | 1,015 |
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AISC (All-in sustaining cost) includes C1 cash cost, plus royalty expense, sustaining capital expense, general corporate and administration on a per ounce sold basis. Group gold sales for the quarter were 179,256 ounces.
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AIC (All-in cost) is AISC plus growth (major capital) and discovery expenditure on a per ounce sold basis.
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Mine cash flow
| Mine operating cash flow (A$M) |
Sustaining capex (A$M) |
Major projects capex (A$M) |
Net mine cash flow (A$M) |
|
| Cowal | 40.4 | (1.5) | 0.0 | 38.9 |
| Cracow | 15.5 | (2.6) | (3.8) | 9.1 |
| Edna May | 4.3 | (0.5) | (2.4) | 1.4 |
| Mt Carlton | 29.3 | (3.1) | (4.2) | 22.0 |
| Mt Rawdon | 25.7 | (5.1) | (10.7) | 9.9 |
| Mungari | 22.5 | (1.7) | (1.7) | 19.0 |
| Pajingo | 9.6 | (1.3) | (3.6) | 4.7 |
| Evolution | 147.3 | (15.8) | (26.4) | 105.0 |
Group cash and debt
The Group cash balance at the end of the quarter was A$58.3 million. This was down from the closing balance at 30 June 2015 of A$205.8 million due predominantly to the use of funds to close on the Cowal transaction.
The strong operational results during the quarter allowed Evolution to pay A$77.0 million into the revolver debt facility to reduce Group debt to A$530.0 million and net debt to A$481.8 million.
Gearing (unaudited) peaked at 32% at the end of July following the closing of the Cowal acquisition and prior to new equity being issued to La Mancha. This has been reduced to 23% as at 30 September 2015.
A summary of the cash movement during the quarter is as follows:
| A$ million | |
| Closing balance as at 30 June 2015 | 205.8 |
| Net mine cash flow | 105.0 |
| Corporate and discovery | (10.5) |
| Debt drawdown for Cowal | 607.0 |
| Payment for Cowal | (707.2) |
| Acquisition and integration costs | (22.8) |
| Interest expense | (6.6) |
| Phoenix Gold investment | (5.9) |
| Workingcapital movement including product shipped not receipted | (29.5) |
| Debt repayment | (77.0) |
| Closing balance as at 30 September 2015 | 58.3 |
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For further information please contact:
Bryan O’Hara Group Manager Investor Relations Evolution Mining Limited Tel: +61 2 9696 2900
Michael Vaughan Media Relations Fivemark Partners Tel: +61 422 602 720
About Evolution Mining
Evolution Mining is a leading, growth-focussed Australian gold miner. Evolution operates seven wholly-owned mines – Cowal in New South Wales, Cracow, Mt Carlton, Mt Rawdon and Pajingo in Queensland, and Edna May and Mungari in Western Australia.
Group production for FY15 from Evolution’s five original operating assets (prior to completion of the Cowal and Mungari acquisitions) totalled 437,570 ounces gold equivalent at an All-In Sustaining Cost of A$1,036 per ounce.
Evolution has guided FY16 attributable gold production from all seven operating assets of 730,000 – 810,000 ounces at an AISC of A$990 – A$1,060 per ounce.