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Evolution share price on watch after delivering record Q1 cash flows

The Evolution Mining Ltd (ASX: EVN) share price could be on the move on Tuesday after the gold miner released its quarterly update.

How did Evolution perform in the first quarter?

Evolution broke a number of records during the quarter. According to the release, the company achieved record mine operating cash flow of A$278.7 million. This was a 30% increase on the prior quarter.

It also reported record net mine cash flow of A$207.4 million and record group free cash flow of A$158.6 million. Which was an increase of 36% and 45%, respectively, on the prior quarter.

This left the company with a net cash position of A$91.7 million, up from A$35.2 million at the end of FY 2019.

The positive result was driven by the rising gold price and strong quarterly gold production of 191,967 ounces. This included record production at Cowal of 75,807 ounces. Evolution achieved this with an All-in Sustaining Cost (AISC) of A$1,018 per ounce (US$698/oz) and an All-in Cost (AIC) of A$1,330 per ounce (US$912/oz).

Full year guidance.

Evolution has retained its FY 2020 gold production guidance of 725,000 to 775,000 ounces.

However, it has lifted its cost guidance. Management has increased its AISC guidance by A$50 to the range of A$940 to A$990 an ounce.

This comprises a A$20/oz increase from impact of upgraded metal price assumptions on royalties and by-product credits and a A$30/oz increase due to stability issues in Mt Rawdon pit west wall. The latter has required a revised mine plan.

Despite this, Evolution continues to generate sector leading cash margins per ounce.

Elsewhere in the sector today, the Newcrest Mining Limited (ASX: NCM) share price could be on the move after announcing an expansion of its Cadia operation and the Blackham Resources Ltd (ASX: BLK) share price will be on watch after signing a joint venture agreement for the Wilunua West Gold Project.

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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.

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