Evolution Mining has beaten its September quarter guidance to produce 170,681 ounces of gold with a lower-than-expected all-in sustaining cost (AISC) of $1413 per ounce.
The company is targeting between 670,000 and 725,000 ounces in the 2022 financial year.
This will be supported by Evolution’s completion of the Stage H cut back at the Cowal gold mine in New South Wales due this month, which enables higher quantities of ore to be sourced.
Evolution produced 52,513 ounces of gold at Cowal in the September quarter at an all-in sustaining cost of $1034 per ounce.
The gold miner also received government approval for the Cowal underground project in September, which will extend the Cowal’s mine life to 2040 and increases production to more than 350,000 ounces of gold per year at once developed.
Evolution delivered $193.7 million in mine operating cash flow for the September quarter and a net mine cash flow of $67.5 million.
The company saw improvements in August and September at the Red Lake gold mine in Canada after forest fires in July, producing 23,768 ounces of gold at an AISC of $2697 per ounce in the September quarter.
The busy quarter also saw the company divest its Mt Carlton gold mine in Queensland to Navarre Minerals for $90 million, which reduces its group AISC by $40 per ounce to $1190 per ounce.
“Mt Carlton was Evolution’s first development project and has generated excellent returns for shareholders since it was commissioned in 2013,” Evolution executive chairman Jake Klein said in October.
“With the company focussed on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who can focus on extending the operation’s mine life.”
Evolution also purchased Northern Star’s Kundana assets in Western Australia in July for $400 million. The company processed the first higher grade are from the assets in August.