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Evolution expects decline in gold output for next 3 years amid cost focus

Evolution Mining Ltd. said it expects to produce between 720,000 and 770,000 ounces of gold per year in its 2019 and 2020 fiscal years and between 700,000 and 750,000 ounces in 2021.

Output is expected to decline from the 780,000 ounces produced in fiscal 2018 as the company focuses on prioritizing margins over production growth.

Meanwhile, all-in sustaining costs, or AISC, in the next three years are expected to remain relatively flat, according to the Sept. 4 release.

AISC for 2019 and 2020 are estimated at between A$850 and A$900 per ounce and at between A$870 and A$920 per ounce for 2021. AISC in 2018 totaled A$797 per ounce.

Outlook for the sustaining capital, which totaled A$101 million in 2018, will stand at between A$105 million and A$135 million for 2019, between A$115 million and A$145 million in 2020, and between A$95 million and A$125 million in 2021.

Capital expenditure is anticipated to remain elevated in 2019 due to investment in major projects at Cowal, the company noted, before declining from 2020 onward. Major project capital is estimated between A$150 million and A$180 million in 2019, and drop to between A$115 million and A$145 million for both 2020 and 2021.

Evolution's statutory net profit for its fiscal 2018 increased 21% year over year to A$263.4 million. Sales revenue grew by 4% to A$1.54 billion.