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

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Mayne Pharma, Playside, and PYC shares are storming higher

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

Read more »

chip and tech stocks represented by two computer chips side by side
Technology Shares

This little ASX AI stock is soaring 10% today. Here's why

Investors are piling into the ASX AI stock on Friday. But why?

Read more »

A man in a business suit wearing boxing gloves slumps in the corner of a boxing ring representing the beaten-up Zip share price in recent times
Industrials Shares

Beaten-up ASX 200 stock surges 12% on buyout rumour

This ASX 200 building materials stock has been struggling throughout FY24.

Read more »

A person wears a roaring lion mask.
Share Gainers

Guess how much a $3,000 investment in Liontown shares ballooned to in just one month

After a lengthy slide, Liontown shares came roaring back this past month.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Australian Ethical, Cromwell Property, Smartpay, and Xero shares are surging

These ASX shares are having a very strong session. But why?

Read more »

A young woman makes an online travel booking as she sits on some steps with her suitcase next to her.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares snatched defeat from the jaws of victory today.

Read more »

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

Why Droneshield, TechnologyOne, Telix, and Webjet shares are rising today

These shares are having a great session. But why?

Read more »

flying asx share price represented by man flying remote control drone
Share Gainers

Up 246% in a year, here's why the Droneshield share price is racing higher again today

ASX investors are sending the Droneshield share price soaring today. But why?

Read more »