Evolution share price lifts as results fall 'in line' with forecasts

The Evolution Mining Ltd (ASX: EVN) share price is tracking higher today amid the release of the company's quarterly earnings and full-year report.

At the time of writing, the ASX gold share is trading 1.3% in the green at $2.34.

In broad market moves, gold is down again today and is trading at US$1,693 per troy ounce. Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) is currently down 1.72%.

Evolution FY22 earnings 'in-line' with forecasts

Key takeouts for the FY22 period, including Q4 FY22, include:

• Group gold production increased 16% to 172,722 ounces in the June 2022 quarter, up from 148,787oz in the March quarter
• All-in sustaining cost (AISC) of $1,290 per ounce for the quarter
• FY22 group gold production of 640,275 ounces
• FY22 AISC of $1,259 per ounce places Evolution "as one of the lowest cost global gold producers"
• Ernest Henry asset in Queensland generated more than $435 million of net mine cash flow in FY22
• Group gold production to grow by 25% over the next two years

What else happened this period for Evolution?

In a boost for the Evolution share price, the company generated a mammoth $435 million of net cash flow from its mining operations in FY22. On this result, the AISC was negative $1,680 per ounce.

Moreover, the company's gold production for the last quarter of 2022 was 16% higher quarter-on-quarter and came in at 172,722 ounces.

Its Mungari operation in Western Australia grew production by 7% to more than 35,000 ounces last quarter, helped by the integration of the Kundana assets, Evolution said.

Finally, it left the period with a cash balance of $572.4 million and net debt of $1.2 billion.

What's next for Evolution Mining?

The company expects group gold production to grow by 25% over the next two years. It guides a 12% increase in FY23 to around 720,000 ounces.

For FY24, the outlook increases a further 11% to 800,000 ounces, give or take 5%.

On this production, Evolution forecasts AISC for FY23 and FY24 at $1,240 per ounce. It also sustained its capital guidance of $190–$240 per annum over the coming two years.

It has a major capital guidance for FY23 of $530–$600 million, and projects around $330–$380 million in FY24.

Evolution share price snapshot

In the last 12 months, the Evolution share price has fallen more than 42%. It is down by a similar amount this year to date.

In fact, the share is in the red across all major timeframes.