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.
