Up 29% since February, why is this ASX 200 gold stock tumbling today?

The ASX 200 gold stock is under selling pressure on Wednesday. But why?

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Shares in S&P/ASX 200 Index (ASX: XJO) gold stock Evolution Mining Ltd (ASX: EVN) are taking a tumble today.

Evolution Mining shares closed yesterday at $3.76 apiece. In earlier trade today, shares were swapping hands for $3.64, down 3.2%. After some likely bargain hunting, the Evolution Mining share price has recovered to $3.72 a share, down 1.2%.

Despite that recovery, the ASX 200 miner is trailing the benchmark, with the ASX 200 down a lesser 0.6% at time of writing. And in a better comparison of apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 0.5%.

Here's what's happening.

What's pressuring the ASX 200 gold stock

When analysing share price moves among ASX 200 gold stocks, the first point of call is the gold price.

The yellow metal slipped 0.1% overnight to trade for US$2,313.96 per ounce, down from highs north of US$2,425 per ounce on 20 May. But the gold price remains up more than 14% in 2024, with most analysts forecasting further gains ahead.

So, that's unlikely to be why the ASX 200 gold stock is underperforming today.

That underperformance is more likely linked to the miner's market update.

This morning, Evolution Mining reported that its June quarter gold production had taken a hit from inclement weather and earthquakes.

According to the release:

The Cowal and Mt Rawdon operations have been impacted by continued high levels of rainfall. Restrictions to open-pit operations at Cowal and Mt Rawdon have necessitated the processing of lower grade stockpile ore at various stages during the past two months to maintain full processing feed rates.

Management said the rain had not impacted the underground operations at Cowal. The planned ramp-up would continue at the mine following the successful commencement of commercial production in April.

As for those earthquakes hampering the ASX 200 gold stock, the company said:

Material handling systems at Red Lake have been disrupted by localised seismic events at the Balmer and Cochenour areas. Mining rates have improved materially this quarter and there is a high level of mined ore available underground but haulage rates available via alternative systems have lowered near-term capacity

All told, the net impact of the heavy rains and earthquakes on Evolution's gold production quarter to the end of May is around 26,000 ounces.

On the plus side of the ledger, the company reported that "significantly higher cash flow" had delivered a current cash balance of more than $320 million.

That works out to a quarter-to-date cash flow of some $145 million. And that's after Evolution Mining paid its FY 2024 interim dividend, which totalled around $40 million.

Evolution Mining share price snapshot

Despite today's dip, the Evolution Mining share price remains up 11% since this time last year.

The ASX 200 gold stock has gained 29% since the market close on 28 February.

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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