How has ASX 200 gold share Evolution Mining managed to surge 89% in 6 months?

Gold shares like Evolution Mining are on a roll.

| More on:

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

Key points
  • Evolution Mining shares have been soaring ahead recently
  • Gold explorers Newcrest and Northern Star have also been storming ahead 
  • The gold price has risen more than 20% in the last six months 

ASX 200 gold stock Evolution Mining Ltd (ASX: EVN) has been charging ahead in the last six months.

The company's share price has soared 89% from $1.85 at market close on 20 October to $3.49 at market close on 20 April. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has risen 20% in the same time.

Let's take a look at what is going on with the Evolution Mining share price.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

Has the gold price helped?

Evolution Mining is a gold explorer with mines in New South Wales, Western Australia Queensland and Canada.

ASX 200 gold stocks Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have also risen in the last six months.

Northern Star shares have soared 72.5% since market close on 20 October, while Newcrest Mining shares have surged 73%.

Amid wider market turmoil, the gold price has also had a stellar run in the past six months.

The spot gold price has risen 23% from US$1636.8 an ounce on 20 October to US$2,009 an ounce at the time of writing, according to CNBC.

Copper has also jumped nearly 24% in the same time frame, trading economics data shows.

This lift in the gold price could be giving ASX 200 mining shares including Evolution a boost.

Evolution achieved a 3% lift in the average achieved gold price from US$2,551 an ounce to US$2,639 an ounce in the third quarter of FY23. The company sold 165,758 ounces of gold, up 2.4% on the previous quarter.

The company's realised copper price rose 15%, however, copper sales fell 30.9% during the quarter.

In other news, Evolution on Thursday reported drilling continues to extend mineralisation at the company's Ernest Henry project in Queensland. The results are expected to "drive further growth" of the mineral resource at the project.

Mining activities at the Ernest Henry operation resumed in April following weather impact during the March quarter.

Commenting on these results, Evolution CEO Lawrie Conway said:

We continue to see encouraging drill results from the exploration drill program at Ernest Henry, highlighting the exciting potential for growth at this world class operation.

On 12 January, Evolution advised it had satisfied an earn-in milestone to earn a 75% interest in the Cue Project joint venture with Musgrave Minerals Ltd (ASX: MGV).

Evolution Mining share price snapshot

The Evolution Mining share price has slid 23% in the last year.

This ASX 200 gold share has a market capitalisation of about $6.4 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

ASX gold shares tumble as bull run faces its first big test in 1Q CY26

ASX gold shares soared before a commodities sell-off and a new war sent them into the red.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

Why Northern Star, Newmont, and Evolution shares are rising today

ASX gold stocks move higher as bullion recovers to US$4,575 an ounce.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Gold

After a major resource upgrade, how undervalued are Greatland shares looking?

There's a lot to like in this company's most recent news, analysts say.

Read more »

A man in a business suit scratches his head looking at a graph that started high then dips, then starts to go up again like a rollercoaster.
Broker Notes

Down 38% in March, should you buy the dip on Northern Star shares?

A leading analyst provides his outlook for Northern Stars beaten down shares.

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
Gold

This ASX gold explorer could more than double according to the team at Canaccord Genuity

Their WA project is progressing nicely.

Read more »

A few gold nullets sit on an old-fashioned gold scale, representing ASX gold shares.
Gold

Guess which ASX 200 gold stock is lifting off today on record breaking news

Investors are bidding up the ASX 200 gold stock as the miner eyes a record year ahead.

Read more »

A dollar sign embedded in ice, indicating a share price freeze or trading halt
Gold

This ASX stock is halted after plunging nearly 18% in 2 sessions

A trading halt and planned raising have put Dateline shares back in focus.

Read more »

Female miner smiling in front of a mining vehicle.
Gold

Why is this ASX gold stock storming 10% higher today?

A major boost in gold resources has lit a fire under the stock.

Read more »