Evolution Mining and Genesis Minerals are celebrating robust gold production achievements as they kick off the 2024–25 financial year (FY25).
Evolution Mining
Evolution Mining reported a significant 14% increase in gold production during the June 2024 quarter, yielding 212,070 ounces (oz) at an all-in sustaining cost (AISC) of $1275/oz. This marks a 13% decrease from the previous quarter.
The company also saw a remarkable 171% rise in quarterly group cash flow. This showed an increase of $230 million from $85 million. Furthermore, Evolution achieved a record quarterly net mine cash flow increase of 74% to $242 million, equivalent to $1170/oz. The Cowal gold mine in New South Wales achieved its highest-ever quarterly production of 94,826oz.
“We had an outstanding June quarter with sector leading cash generation and low costs which showcase the quality of our portfolio,” Evolution managing director and chief executive officer Lawrie Conway said.
For FY24, Evolution generated $367 million in group cash flow and $583 million in net mine cash flow, producing a total of 716,700oz of gold and 67,862 tonnes of copper at an AISC of $1477/oz.
Cowal achieved record annual gold production under Evolution’s ownership, producing 312,644oz in FY24 at an AISC of $1338/oz.
“We achieved multiple records at an operational level and I am particularly pleased that June was the strongest month of the quarter which builds momentum moving into FY25,” Conway said. “This result is a credit to our team.”
Genesis Minerals
Meanwhile, Genesis Minerals accelerated its growth strategy. It reported 34,617oz of gold at an AISC of $2698/oz during the June quarter. This brings Genesis’ FY24 production to 134,451oz at an AISC of $2356/oz, meeting its guidance of 130,000–140,000oz at an AISC of $2300–2400/oz for FY24.
“It was a highly successful quarter on all fronts,” Genesis managing director Raleigh Finlayson said. “We met both production and cost guidance while laying the foundations to accelerate our organic growth strategy.
“This is designed to ensure we achieve our 325,000ozpa (per annum) production target and reduce AISC to $1600/oz ahead of the FY29 date contained in our five-year plan.”
During the quarter, Genesis processed 10,562 tonnes of third-party ore from its Leonora operations in Western Australia. It also increased surface ore stockpiles awaiting processing to approximately 314,000t. This supported their long-term business resilience strategy. Commercial production at the Admiral open pit on May 1 marked a significant milestone for the company.
“We have successfully established a very large inventory which underpins forecast production of 3Moz (million ounces) over 10 years,” Finlayson said.
“We now want to unlock more of its value sooner to capitalise on this enviable position and the buoyant gold price. By accelerating our self-funded organic growth strategy, we can drive rapid growth in free cashflow generation, creating greater shareholder value in the process.
“We are very pleased with the way the pieces of the Genesis jigsaw are coming together.”