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Evolution Mining posts record Q4, FY'16 gold output

EvolutionMining Ltd. booked a record group gold output of 216,644 ounces inthe June quarter, at an all-in sustaining cost of A$1,117 per ounce and C1 cashcost of A$732 per ounce.

Meanwhile, higher-than-estimated AISC was due to unplannedpurchase of land at Cowal, better-than-expected resource definition drillingmeters and opportunistic purchases of low-cost second-hand replacement equipmentfor MountRawdon and Mungari.

The company also reported a record operating mine cash flowof A$184.2 million, after all sustaining and major capital of A$119.5 million.

In the June quarter, Evolution made debt repayments totalingA$115.0 million, in addition to paying one-off acquisition costs of A$20.8million.

Group gold production for fiscal 2016 totaled a record803,476 ounces, representing an 84% year-over-year increase, following theacquisition of theCowal and Mungari operations this fiscal year.

Full financial year production met the mid-range of theupgraded guidance ofbetween 770,000 ounces and 820,000 ounces.

Fiscal year average C1 cash cost of A$722 per ounce waswithin the upgraded guidance range of between A$700 per ounce and A$740 per ounce, while the AISC of A$1,014per ounce also fell within the estimated improved guidance range of betweenA$970 per ounce and A$1,020 per ounce.

The company reported record operating mine cash flow ofA$628.4 million, and net mine cash flow of A$428.2 million, after sustaining CapExof A$107.0 million, and major CapEx of A$93.2 million in the correspondingperiod.   

Evolution is forecasting increased gold production from itsseven mines in the 2017 financial year of 800,000 ounces to 860,000 ounces atall-in sustaining costs of A$985 per ounce to A$1,045 per ounce.

The company expects to produce in excess of 800,000 ouncesannually at lower all-in sustaining costs for at least the next three years.

The company recently doubled its dividend payout to 4% of revenue asa result of increased confidence in its future cash generation.