Evolution Mining Limited (ASX: EVN) reported its December 2019 quarter update to investors today.
The gold miner reported mine operating cash flow of $233.1 million, the FY20 year to date figure is $511.8 million. Net mine cash flow was $144.4 million, the FY20 year to date was total is $351.8 million.
Evolution Mining reported group free cash flow of $83.8 million with the FY20 year to date figure being $242.4 million.
As a result of the strong cash flow Evolution Mining was able to repay $275 million of outstanding debt and the net cash position increased by $78.6 million to $170.3 million.
In terms of production the company produced 170,890 ounces of gold at an all-in sustaining cost (AISC) of AU$1,069 per ounce (which was US$730 per ounce in US dollar terms). That brings the FY20 year to date production to 362,857 ounces at an ASIC of AU$1,041 per ounce, or US$713 per ounce.
During the quarter Evolution Mining made an acquisition of the high grade, long life Red Lake gold complex in Ontario, Canada, which is expected to close at the end of March 2020.
Evolution Mining said that Cowal’s GRE46 and Dalwhinnie ore bodies continue to return “exceptional” drilling results which is expected to inform an upgrade in size and classification of the current underground mineral resource of 1.4 million ounces. The Board has approved the commencement of a pre-feasibility mine design study for an underground mine.
Evolution Mining’s guidance remains unchanged, it’s expecting FY20 gold production to be around 725,000 ounces with an AISC of AU$940 to AU$990 per ounce.
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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.