Evolution Mining Ltd (ASX: EVN) shares are on the move on Wednesday.
In morning trade, the ASX 200 gold stock is up 1% to $5.72.
This follows the release of a quarterly update before the market open.
ASX 200 gold stock higher on record-breaking quarter
For the three months ended 31 December, gold production came in at 194,793 ounces. This represents a small quarter on quarter increase and is in line with consensus estimates.
However, copper production was down 2.6% quarter on quarter to 18,554 tonnes and was a touch short of consensus estimates.
This was achieved with an all-in sustaining cost (AISC) of $1,543 per ounce (US$959 per ounce) which it notes is one of the lowest in the sector. Though, it was ahead of the consensus estimate of $1,515 per ounce and Goldman Sachs' estimate of $1,329 per ounce.
But with the ASX 200 gold stock achieving an average gold sales price of $4,069 per ounce for the three months, it was still swimming in cash at the end of December.
In fact, Evolution Mining revealed record operating and net mine cash flow of $561 million (up 31%) and $263 million (up 53%), respectively.
Management believes its record cash flow demonstrates the benefits of a low cost position in a higher metal price environment and reflects its commitment to bank the upside from higher prices.
The ASX 200 gold stock's managing director and chief executive officer, Lawrie Conway, was pleased with the quarter. He said:
Our cash flow materially increased by 54% in the December quarter, reflecting the safe delivery of low cost production and the benefits derived from the high metal price environment. We are on track to meet our guidance for the year, which should provide a significant step up in cash flow compared to FY24.
Our growth projects have progressed very well with the Mungari expansion project now about nine months ahead of schedule and costs 6% below original budget. The excellent exploration results announced today, will serve to enhance our high margin portfolio.
Outlook
As mentioned above, the company is on track to achieve its guidance in FY 2025.
This will mean production of 710,000 ounces to 780,000 ounces of gold and 70,000 tonnes to 80,000 tonnes of copper at an AISC of $1,475 to $1,575 per ounce.
This is despite a softer performance in the current period, with third quarter production planned to be ~25,000 ounces lower. This is due to the previously announced scheduled major shut down at Cowal (28 days) and regular Ernest Henry scheduled maintenance.
