Shares of EVOLUTION FPO (ASX: EVN) have slipped another 2.9% today after the Australian gold producer announced its fourth quarter production results.
For the three months ended 30 June 2015, Evolution recorded a record quarterly production of 113,821 ounces of gold which represents a 10.2% increase on the 103,305 ounces produced in the three months immediately prior. It achieved this result at an all-in sustaining cost (AISC) of US$816 an ounce (A$1,048).
The strong performance topped off a record year for the group which produced a total 437,570 gold equivalent ounces (compared to guidance of 400,000 to 440,000 ounces) – an increase of 2.3% compared to the 2014 financial year – at an AISC of US$807 an ounce (A$1,036). The result was largely bolstered by a better-than-expected performance from its Edna May mine in Western Australia which exceeded production expectations and recorded below guidance costs.
The miner also benefited from its continued focus on cost-cutting initiatives and a lower Australian dollar which helped to offset the impact of lower gold prices around the world.
Indeed, gold experienced a flash crash during yesterday's session and hit a new five-year low beneath US$1,100 an ounce. Evolution's shares fell almost 15% while Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) dropped 10.1% and 9.6%, respectively.
In regards to 2016, Evolution said that it intends to provide a detailed outlook in August following the completion of the Mungari and Cowal acquisitions that were announced earlier this year. With gold prices falling however, investors might be wise to give Evolution a miss, for now.
