Own Evolution Mining shares? Here's why the ASX 200 gold stock is leaping higher

Up 80% in a year, Evolution Mining shares are outpacing the benchmark again today.

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Evolution Mining Ltd (ASX: EVN) shares are up 1.1% during the lunch hour on Thursday, swapping hands for $3.63 apiece. The stock closed up 3.8% yesterday.

Today's strong performance comes despite the wider market sell-off, with the ASX 200 down 1.2% at this same time.

The S&P/ASX 200 Index (ASX: XJO) gold miner got a lift on two fronts on Wednesday, which looks to be sustaining its outperformance today.

First, there was a promising announcement related to exploration success at its Mungari and Cowal projects, located in Western Australia and New South Wales respectively.

"The drilling results announced today highlight the potential for additional high-grade mineralisation outside of known mineral resources and near active mining fronts at both Mungari and Cowal," Evolution's VP Discovery, Glen Masterman said of the drilling programs.

Evolution shares also appear to have received a lingering boost from the miner's third quarter update, covering the three months to 30 September.

Here are the highlights.

Evolution Mining shares enjoying some tailwinds

Investors are snapping up Evolution Mining shares after the company reported September quarter gold production of 158,304 ounces. While this is the lowest quarterly production of the year, that was in line with management's expectations due to scheduled maintenance at its mines.

Shareholders will also be pleased with the 16% decrease in the miner's all-in sustaining costs (AISC). AISC dropped to $1,612 per ounce, down from $1,912 per ounce in the prior quarter.

On the sales front, Evolution Mining sold 163,868 ounces of gold over the three months at an average price of AU$2,907/oz. That's up from 157,437 ounces at AU$2,769/oz last quarter. The miner noted that all sales for the quarter were sold at spot prices.

The achieved copper price for the September quarter also increased, reaching $12,921 per tonne, up from $10,591 per tonne in the prior quarter.

Operating mine cash flow came in at $280 million. And Evolution Mining held $79 million cash as at 30 September, with total available liquidity of $504 million.

Looking at what could impact Evolution Mining shares in the months ahead, the ASX 200 gold miner maintained its FY 2024 guidance of 770,000 ounces of gold at an AISC of $1,370 per ounce.

What did management say?

Commenting on the results helping boost Evolution Mining shares, CEO Lawrie Conway said:

During the September quarter, we delivered gold and copper production in line with our guided FY24 production profile, driving strong operational cash generation. Capital expenditure during the period reflects investment in future growth projects and a reducing intensity level.

We remain on track to deliver our full year guidance and financial deleveraging and with the current spot price around AU$3,000 per once, still has further potential to accelerate.

How have Evolution Mining shares been tracking?

Evolution Mining shares have been stellar performers over the past 12 months, up 80%.

Motley Fool contributor Bernd Struben 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.

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