Evolution share price hits a multi-year high following results release

The Evolution Mining Ltd (ASX:EVN) share price has hit a new multi-year high following the release of its preliminary full year results…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In morning trade the Evolution Mining Ltd (ASX: EVN) share price has continued its positive run and hit a new multi-year high following the release of its preliminary full year results.

At the time of writing the gold miner's shares are up 1.5% to $4.50.

How did Evolution perform in FY 2019?

In the final quarter of FY 2019 the company delivered gold production of 194,866 ounces, which was up almost 11% quarter on quarter from 175,901 ounces.

This meant the company finished the year with total gold production of 753,001 ounces, which was towards the upper end of its guidance range of 720,000 ounces to 770,000 ounces.

One slight disappointment was that its all-in sustaining cost (AISC) came in at A$924 an ounce over the 12 months, which was higher than its guidance of A$850 to A$900 an ounce.

Management advised that this was caused by both operational and non-operational factors.

At the Mungari mine the company saw an improvement in its performance in June, but slight delays in some of the Frog's Leg Mists stopes resulted in an overall lower than anticipated grade processed.

Whereas at the Mt Rawdon mine the company was unable to extract sufficient higher-grade ore as it transitioned back into the northern end of the pit.

In addition to this, metal prices in the June quarter negatively impacted its AISC due to higher royalties (higher achieved gold price) and lower by-product credits (lower achieved copper price).

Nonetheless, Evolution's executive chairman, Jake Klein, was very pleased with the company's performance over the 12 months and particularly its significant cash generation. Evolution finished the period with a cash balance of $335.2 million.

He said: "The outstanding cash generation of our business reflects the quality of our portfolio, moving us to a net cash position at the end of the year. This cash generating capacity of the business is expected to continue in FY20. Notwithstanding this, we are disappointed we did not deliver to our cost guidance in FY19. We are determined to remain focused on margin and operating efficiencies which is reflected in our guidance for FY20. This will ensure we maintain our position as one of the lowest cost gold producers in the world and continue to generate superior returns for our shareholders."

Looking ahead, FY 2020 group gold production is expected to be in the range of 725,000 to 775,000 ounces of gold with an AISC of between A$890 and A$940 per ounce.

Elsewhere in the industry today, the OceanaGold Corp (ASX: OGC) share price has pushed higher after providing an update on its Didipio injunction and the Newcrest Mining Limited (ASX: NCM) share price is up slightly ahead of a testimony by Fed Chair Jerome Powell tonight. Mr Powell is expected to elaborate on the U.S. Federal Reserve's interest rate plans.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

three men stand on a winner's podium with medals around their necks with their hands raised in triumph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week this Friday.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Share Gainers

3 ASX 200 stocks storming higher in this week's sinking market

Investors have sent these three ASX 200 stocks soaring this week. But why?

Read more »

Two smiling work colleagues discuss an investment at their office.
Share Gainers

Why 4DMedical, Develop Global, EOS, and Maas shares are racing higher today

These shares are ending the week on a high. But why?

Read more »

Six smiling health workers pose for a selfie.
Healthcare Shares

Up 657% in a year, 4DMedcial shares rocketing another 20% today on big US news

ASX investors can’t get enough of 4DMedical shares today. Let’s see why.

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 broke its losing streak to inch higher today.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Consumer Staples & Discretionary Shares

Bapcor shares soar 12% on the appointment of a new CEO

The market’s strong reaction reflects a clear message: investors are ready for a reset.

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Share Gainers

Why Bapcor, IDP Education, Netwealth, and Ora Banda shares are pushing higher today

These shares are catching the eye with solid gains on Thursday. But why are they rising?

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Healthcare Shares

This ASX stock is going parabolic, and I think it's still a buy

4DMedical shares are up nearly 500% in 2025, but improving revenue visibility suggests the growth story may not be over.

Read more »