EVOLUTION MINING LIMITED Group gold production of 202,926 ounces
Record low Group All-in Sustaining Cost1 (AISC) down 7% QoQ to A$840 per ounce (US$637/oz)2
Ernest Henry produced 22,246 ounces of payable gold at a negative AISC of A$(447) per ounce
Mt Carlton produced 25,536 ounces of payable gold at a record low AISC of A$509 per ounce
Operating mine cash flow of A$166.5 million
Net mine cash flow increased by 8% QoQ to A$110.7 million
First net cash received from Ernest Henry of A$24.6 million for November and December 2016 production
A$40.0 million in debt repayments reduced net debt to A$541.2 million
A$27.4 million in cash dividends paid (net of DRP3) - eighth consecutive semi-annual dividend
Board approved Cowal E42 Stage H cutback and Dual Leach Project - mine life secured for 15+ years
Group Ore Reserves increased by 1.14 million ounces (19%) year-on-year to 6.99 million ounces4
Conservative gold price of A$1,350 (US$1,010)5 per ounce used to estimate Ore Reserves
Achieved milestone of three million ounces of gold produced since Evolution's creation in November 2011
On track to comfortably deliver FY17 Group production guidance of 800 - 860koz
Costs expected to be at the lower end of the FY17 AISC guidance range of A$900 - A$960/oz
Units | Sep 2016 qtr | Dec 2016 qtr | Mar 2017 qtr | FY17 YTD | |
Gold produced | oz | 205,307 | 217,812 | 202,926 | 626,046 |
By-product silver produced | oz | 268,175 | 263,183 | 266,359 | 797,718 |
By-product copper produced | t | 345 | 3,501 | 5,419 | 9,265 |
C1 Cash Cost | A$/oz | 753 | 585 | 599 | 645 |
All-In Sustaining Cost | A$/oz | 1,060 | 900 | 840 | 933 |
All-in Cost7 | A$/oz | 1,174 | 1,068 | 1,009 | 1,087 |
Gold sold | oz | 205,858 | 198,782 | 193,431 | 598,070 |
Achieved gold price | A$/oz | 1,708 | 1,603 | 1,600 | 1,638 |
Silver sold | oz | 253,410 | 268,563 | 264,229 | 786,201 |
Achieved silver price | A$/oz | 26 | 22 | 23 | 24 |
Copper sold | t | 295 | 3,507 | 5,374 | 9,176 |
Achieved copper price | A$/t | 6,217 | 7,561 | 7,745 | 7,626 |
Includes C1 cash cost, plus royalty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis
Using the average AUD:USD exchange rate for the March 2017 quarter of 0.7584
Dividend Reinvestment Plan
Refer to ASX releases "Annual Mineral Resources and Ore Reserves Statement" dated 20 April 2017 and "Cowal Project Approvals Secure Production to 2032" dated 16 February 2017 available to view at www.asx.com.au and further details are provided in Appendix 2 of this release
Using the current AUD:USD exchange rate of 0.7500
Production relates to payable production
Includes AISC plus growth (major project) capital and discovery expenditure. Calculated on per ounce sold basis
Group gold production for the March 2017 quarter was 202,926 ounces which was in line with guidance of approximately 200,000 ounces issued in the ASX announcement on 22 March 2017 entitled "Ernest Henry Site Visit and Operating Update" (Dec qtr: 217,812oz). Average C1 cash cost was A$599/oz (Dec qtr: A$585/oz). AISC1 declined 7% to a record low A$840/oz (Dec qtr: A$900/oz). Using the average AUD:USD exchange rate for the quarter of 0.7584, Evolution's Group C1 cash cost equated to US$454/oz and Group AISC to US$637/oz - ranking Evolution as one of the lowest cost gold producers in the world.
In the March 2017 quarter Evolution delivered operating mine cash flow of A$166.5 million and net mine cash flow, post all sustaining and major capital, of A$110.7 million (Dec qtr: operating cash flow A$170.3 million; net mine cash flow A$102.1 million). Evolution made debt repayments totalling A$40.0 million and a dividend payment of A$27.4 million net of the Dividend Reinvestment Plan during the quarter.
As at 31 March 2017, gross debt outstanding under the Senior Secured Syndicated Revolving and Term Facility was A$560.0 million. Net debt was reduced to A$541.2 million.
Ernest Henry was a standout in its first full quarter of attributable production to the Group producing 22,246 ounces of payable gold at a negative AISC of A$(447)/oz. Gold sales of Ernest Henry production commenced in the March 2017 quarter with 14,070oz sold, representing November and December 2016 production. March quarter production of 22,246oz will be delivered and sold during the June 2017 quarter which will be the first quarter in which Evolution receives a full three months of cash proceeds from Ernest Henry.
Mt Carlton delivered another exceptionally strong quarter despite a five day suspension at the end of March during Cyclone Debbie. 25,536 payable ounces of gold were produced at record low costs of C1 A$259/oz and an AISC of A$509/oz.
During the quarter the Board approved the Cowal E42 Stage H cutback and Dual Leach Project. This has secured a mine life for the operation of at least 15 years and creates further asset enhancement opportunities including:
Co-treatment of high-grade oxide stockpiles
Potential to increase throughput to 9.0 - 9.5 million tonnes per annum
Continued drilling to convert significant mineral endowment outside of existing Ore Reserves
Evolution today released its annual Mineral Resources and Ore Reserves3 (MROR) estimates at 31 December 2016. A focus on extending the average mine life of its asset base has resulted in significant year-on-year improvements to mineral inventory with an average Group reserve life now more than eight years. Evolution is committed to building a sustainable business that prospers through the cycle and has therefore used an
unchanged and conservative gold price assumption of A$1,350 per ounce (US$1,010/oz)2 to estimate Reserves. Gold Ore Reserves increased by 1.14 million ounces (19%) year-on-year to 6.99 million ounces after accounting for mining depletion of 913,000 ounces.
Evolution expects gold production in the June 2017 quarter to be above 210,000 ounces and to comfortably deliver its FY17 guidance of 800 - 860koz. AISC are expected to be at the bottom end of the A$900 - A$960/oz guidance range while gated project capital approved by the Board in February for the Stage H cutback and Dual Leach Project at Cowal will add A$20 - A$25/oz to Group AISC in FY17.
33,915 22,246 21,388 24,662Cracow Pajingo
Mt Rawdon
36,503
113,855 62,70510,991
75,524 Mar 2017 qtr ounces 64,699 10,480 25,536Edna May Mt Carlton Cowal Mungari Ernest Henry
YTD FY17 ounces 200,633 49,080 76,754AISC includes C1 cash cost, plus royalty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis
Using the current AUD:USD exchange rate of 0.7500
Refer to "Annual Mineral Resources and Ore Reserves Statement" released 20 April 2017
Group Ore Reserves divided by forecast FY17 annual production
Group total recordable injury frequency rate as at 31 March 2017 was 8.3. The lost time injury frequency rate was 0.5. Assurance reviews of critical control plans for the top five principle hazards throughout the business will continue to be conducted over the next quarter. Group HSE audits were conducted at three operational sites during the quarter.
As at 31 March 2017 | LTI | LTIFR | TRIFR |
Cowal | 0 | 1.1 | 7.5 |
Mungari | 0 | 1.2 | 13.3 |
Mt Carlton | 0 | 0 | 6.1 |
Mt Rawdon | 0 | 0 | 11.1 |
Edna May | 0 | 0 | 8.2 |
Cracow | 0 | 0 | 6.9 |
Group | 0 | 0.5 | 8.3 |
LTI: Lost time injury. A lost time injury is defined as an occurrence that resulted in a fatality, permanent disability or time lost from work of one day/shift or more
LTIFR: Lost time injury frequency rate. The frequency of injuries involving one or more lost workdays per million hours worked. Results above are based on a 12 month moving average
TRIFR: Total recordable injury frequency rate. The frequency of total recordable injuries per million hours worked. Results above are based on a 12 month moving average
March 2017 quarter production and cost summary1March qtr FY17 | Units | Cowal | Mungari | Mt Carlton | Mt Rawdon | Edna May | Cracow | Ernest Henry | Group |
UG lat dev - capital | m | 0 | 266 | 0 | 0 | 0 | 350 | 77 | 694 |
UG lat dev - operating | m | 0 | 820 | 0 | 0 | 0 | 267 | 1,222 | 2,309 |
Total UG lateral development | m | 0 | 1,087 | 0 | 0 | 0 | 617 | 1,299 | 3,003 |
UG ore mined | kt | 0 | 158 | 0 | 0 | 0 | 128 | 1640 | 1,926 |
UG grade mined | g/t | 0.00 | 4.50 | 0.00 | 0.00 | 0.00 | 5.44 | 0.56 | 1.20 |
OP capital waste | kt | 0 | 755 | 705 | 1,289 | 1,716 | 0 | 0 | 4,465 |
OP operating waste | kt | 674 | 1,420 | 147 | 1,294 | 989 | 0 | 0 | 4,524 |
OP ore mined | kt | 2,461 | 203 | 202 | 1,177 | 347 | 0 | 0 | 4,389 |
OP grade mined | g/t | 1.20 | 1.28 | 5.16 | 0.91 | 0.86 | 0.00 | 0.00 | 1.28 |
Total ore mined | kt | 2,461 | 361 | 202 | 1,177 | 347 | 128 | 1,640 | 6,316 |
Total tonnes processed | kt | 1,762 | 406 | 203 | 800 | 526 | 130 | 1,617 | 5,444 |
Grade processed | g/t | 1.38 | 2.77 | 5.31 | 1.09 | 0.69 | 5.43 | 0.56 | 1.37 |
Recovery | % | 82.5 | 93.8 | 88.8 | 87.8 | 89.9 | 94.5 | 79.2 | 86.8 |
Gold produced | oz | 64,699 | 33,915 | 25,536 | 24,662 | 10,480 | 21,388 | 22,246 | 202,926 |
Silver produced | oz | 57,066 | 7,265 | 128,625 | 40,946 | 3,824 | 9,811 | 18,823 | 266,359 |
Copper produced | t | 0 | 0 | 421 | 0 | 0 | 0 | 4,997 | 5,419 |
Gold sold | oz | 63,770 | 33,108 | 25,228 | 24,814 | 10,623 | 21,818 | 14,070 | 193,431 |
Achieved gold price | A$/oz | 1,583 | 1,603 | 1,602 | 1,592 | 1,712 | 1,597 | 1,598 | 1,600 |
Silver sold | oz | 57,066 | 7,265 | 126,495 | 40,946 | 3,824 | 9,811 | 18,823 | 264,229 |
Achieved silver price | A$/oz | 23 | 23 | 23 | 23 | 23 | 21 | 23 | 23 |
Copper sold | t | 0 | 0 | 377 | 0 | 0 | 0 | 4,997 | 5,374 |
Achieved copper price | A$/t | 0 | 0 | 7,994 | 0 | 0 | 0 | 7,726 | 7,745 |
Cost Summary | |||||||||
Mining | A$/prod oz | 226 | 553 | 82 | 410 | 569 | 385 | 346 | |
Processing | A$/prod oz | 405 | 278 | 265 | 439 | 921 | 230 | 362 | |
Administration and selling costs | A$/prod oz | 115 | 82 | 215 | 91 | 268 | 119 | 157 | |
Stockpile adjustments | A$/prod oz | (88) | 138 | (70) | (207) | 23 | 61 | (32) | |
By-product credits | A$/prod oz | (20) | (5) | (232) | (38) | (9) | (10) | (1,755) | (235) |
C1 Cash Cost (produced oz) | A$/prod oz | 638 | 1,046 | 259 | 694 | 1,772 | 784 | (645) | 599 |
C1 Cash Cost (sold oz) | A$/sold oz | 647 | 1,071 | 262 | 690 | 1,749 | 769 | (645) | 602 |
Royalties | A$/sold oz | 41 | 39 | 135 | 82 | 71 | 92 | 134 | 75 |
Gold in Circuit and other adjustments | A$/sold oz | (47) | (60) | (8) | 8 | 7 | (23) | (27) | |
Sustaining capital2 | A$/sold oz | 191 | 163 | 92 | 109 | 6 | 206 | 64 | 142 |
Reclamation and other adjustments | A$/sold oz | 13 | 7 | 28 | 17 | 17 | 6 | 12 | |
Administration costs3 | A$/sold oz | 0 | 35 | ||||||
All-in Sustaining Cost4 | A$/sold oz | 845 | 1,221 | 509 | 907 | 1,849 | 1,049 | (447) | 840 |
Major project capital | A$/sold oz | 0 | 125 | 162 | 181 | 1,233 | 56 | 0 | 134 |
Discovery | A$/sold oz | 9 | 144 | 5 | 0 | (0) | 12 | 0 | 35 |
All-in Cost4 | A$/sold oz | 854 | 1,489 | 676 | 1,089 | 3,082 | 1,117 | (447) | 1,009 |
Depreciation & Amortisation5 | A$/prod oz | 251 | 428 | 510 | 493 | 584 | 539 | 685 | 438 |
1. All metal production is reported as payable. Ernest Henry mining and processing statistics are in 100% terms while costs represent Evolution's cost and |
not solely the cost of Ernest Henry's operation |
2. Sustaining Capital includes 60% UG mine development capital. Group Sustaining Capital includes A$1.97/oz of Corporate capital expenditure |
3. Includes Share Based Payments |
4. For AISC and AIC purposes, Ernest Henry gold production of 22,246oz is classified as sold, adding to actual group sales of 193,431oz less actual Ernest Henry gold sales of 14,070oz for a total of 201,607oz |
5. Group Depreciation and Amortisation includes Corporate Depreciation and Amortisation of A$0.89/oz |
Evolution Mining Limited published this content on 20 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 April 2017 23:10:12 UTC.
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