The S&P/ASX 200 Index (ASX: XJO) is having a bumpy, yet overall positive day of trading so far this Thursday. At the time of writing, the ASX 200 has gained a decent 0.17%. But the same cannot be said of the Evolution Mining Ltd (ASX: EVN) share price.
Evolution shares opened decidedly lower this morning. After closing at $3.74 a share yesterday, the ASX 200 gold miner started its Thursday out at just $3.66 – more than a 2% drop at the time. The Evolution share price then sank as low as $3.57 a share before recovering significantly to the $3.76 we see at present (up 0.53%).
So what's going on here that might be prompting such a volatile time for Evolution shares this Thursday?
Well, this indecisive share price performance from Evolution probably has something to do with the new quarterly report the company released this morning just before market open.
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Evolution Mining share price wobbles on quarterly report
Evolution revealed that its gold production for FY2023 came in at 651,155 ounces, a 1% improvement over the April guidance figures. This was achieved at an all-in sustaining cost (AISC) of US$976 ($1,450) per ounce. Evolution also advised that it hit an operating mine cash flow of $944 million for the year.
The company also reiterated its guidance for FY2024. That pencilled in a 17% increase in gold production to 770,000 ounces at an AISC of US$890 per ounce, alongside 50,000 tonnes of copper.
Here's some of what Evolution CEO Lawrie Conway had to say about these numbers:
Our focus during the quarter has been on ensuring… improving cash flows and achieving returns at a lower rate of capital intensity. Importantly, Evolution is entering a period of increased cash generation as the Group transitions to higher production rates and margins.
As we move into FY24, we have a strong pipeline of quality projects that will drive increased margins and extend the mine life of our assets. This includes the drilling results released today which further enhance the Ernest Henry mine extension project, and are expected to drive further growth of the Mineral Resource.
These will be incorporated in the updated Mineral Resource estimate to be completed in the September quarter.
So clearly investors aren't too sure what to make of this report, judging by the erratic share price performance of Evolution Mining today. Even so, Evolution shares remain up a pleasing 23.5% or so in 2023:
At the time of writing, the current Evolution share price gives this ASX 200 gold share a market capitalisation of $6.9 billion. That's alongside a dividend yield of 1.33%.
