Evolution Mining and Genesis Minerals have welcomed bumper gold production results as miners head into the 2024–25 financial year (FY25).
Evolution Mining
Evolution delivered a 14 per cent increase in gold production during the June 2024 quarter, with 212,070 ounces (oz) of gold produced at an all-in sustaining cost (AISC) of $1275/oz, 13 per cent lower than the prior quarter.
The company saw a record quarterly group cash flow increase of 171 per cent, going from $85 million to $230 million.
Evolution also delivered a record quarterly net mine cash flow increase of 74 per cent to $242 million, which is equivalent to $1170/oz.
The Cowal gold mine in New South Wales produced 94,826oz during the quarter, an all-time record for the operation.
“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 delivered $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 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
Amid accelerating its growth strategy, Genesis produced 34,617oz at an AISC of $2698/oz during the June quarter.
The total brings Genesis’ FY24 production to 134,451oz at an AISC of $2356/oz, with the company achieving its FY24 guidance of 130,000–140,000oz at an AISC of $2300–2400/oz.
“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 June quarter, Genesis processed 10,562 tonnes (t) of third-party ore from its Leonora operations in Western Australia under its short-term ore purchase agreement with Linden Gold Alliance.
Surface ore stockpiles from Leonora that were awaiting processing increased to about 314,000t under Genesis’ first 12 months of ownership, which is in line with the company’s long-term strategy to “future-proof” the business.
On May 1, commercial production was also declared at the Admiral open pit, which is located around 40km trucking distance from the Leonora mill in WA.
“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.”
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