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Evolution's Edna May, Mount Rawdon gold mines disappoint in FY'16

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Evolution's Edna May, Mount Rawdon gold mines disappoint in FY'16

AlthoughEvolution MiningLtd.'s EdnaMay and MtRawdon mines in Australia improved production and lowered theirall-in sustaining costs in the June quarter, the two operations for the 2016financial year.

Forthe full year, the Edna May mine in Western Australia produced 71,028 ounces atan all-in sustaining cost of A$1,504 per ounce compared to the prior year,which fell short of the expected 82,500 ounces to 90,000 ounces at all-insustaining cost of between A$1,225 per ounce and A$1,325 per ounce.

COOMark Le Messurier conceded the mine had a "disappointing year," butstressed Evolution is working to improve the operation.

"Accessto the base of the pit was established where the high-grade sits and thereforegrade and gold production will improve markedly," he said during a July 21conference call following the release of Evolution's .

"Moreattention will be paid to long-term planning fundamentals going forward as themine becomes more complex. We are confident Edna May will be a valuablecontributor to Evolution."

Excavationof the underground portal started in July and higher grades are expected in theSeptember quarter as mining progresses in the stage-one pit floor.

Meanwhile,the Mount Rawdon mine in Queensland, Australia, produced 85,002 ounces at anall-in sustaining cost of A$1,024 per ounce in fiscal 2016, compared toguidance of 87,500 ounces to 97,500 ounces at an all-in sustaining cost ofbetween A$880 per ounce and A$940 per ounce.

"Thisyear was an anomaly for Rawdon and we are planning to produce 100,000 ounces[annually] for the next five years," Le Messurier said.

Theshortfall in production was due to storm events in the December quarter of 2015and March quarter of this year that restricted access to stage three ore in thepit floor.

However,despite the poor performance of Edna May and Mount Rawdon, CFO Lawrie Conwaysaid all seven operations returned to being cash positive for the quarterdespite high levels of CapEx.

"Froma financial perspective, the June quarter rounded out an exceptional year forthe company," he said during the conference call.

Evolutionreported record operating and net mine cash flow of A$184.2 million and A$119.5million, respectively, for the quarter, lifting full-year operating and netmine cash flow to A$628.4 million and A$428.2 million, respectively, which wasalso a record.