S&P/ASX 200 Index (ASX: XJO) gold stock Evolution Mining Ltd (ASX: EVN) is edging lower today.
Evolution Mining shares closed yesterday trading for $7.90. In morning trade on Tuesday, shares are changing hands for $7.79 apiece, down 1.4%.
For some context, the ASX 200 is down 0.1% at this same time.
But don't feel too bad for shareholders. Amid a fast-rising gold price, Evolution Mining shares have surged 98% over the past 12 months.
Here's what investors are poring over today.
ASX 200 gold stock reaps rewards of higher prices
Evolution Mining released its March quarterly update this morning.
The ASX 200 gold stock reported 179,778 ounces of gold production for the three months along with 19,450 tonnes of copper, in line with expectations.
The gold was produced at an all-in sustaining cost (AISC) of AU$1,616 per ounce (US$1,014/oz).
The miner's achieved gold price increased by 11% during the quarter to $4,512 per ounce. Management noted that the current spot gold price is around $630 per ounce higher at $5,140 per ounce, which they said will drive more cash generation during the June 2025 quarter.
And the ASX 200 gold stock has a fairly limited amount of hedging in place, with no copper hedging and gold hedging of 65,000 ounces to be delivered over the next 15 months at AU$3,239 per ounce.
Higher gold prices saw Evolution Mining's cash flow increase by 25% to $207 million. The miner's cash balance increased by $141 million to $661 million, after debt repayments of $60 million.
Evolution spent $9 million on exploration in the March quarter.
What did management say?
Commenting on the ASX 200 gold stock's results, Evolution Mining CEO Lawrie Conway said, "Consistency in operational performance delivered a material increase in group cash flow to $207 million, up 25% compared to December".
Conway added:
We maintain our commitment on capital discipline and banking the significant cash being generated in the high metal price environment. We are on track to meet FY 2025 guidance with even stronger cash generation expected to continue in the June quarter.
Today we also announced the project approval which will extend the Cowal operations to 2042, contributing an additional 2 million ounces of gold in incremental production. Cowal is a world class operation and this project reflects that position with an expected return on investment of ~71% based on the spot gold price.
We also commenced commissioning of the expanded Mungari mill, which was completed 9 months ahead of schedule and 9% under original budget.
Evolution Mining maintained its full-year FY 2025 guidance of 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper at an AISC of $1,475 to $1,575 per ounce.
