Gold miner Evolution has posted its best quarter of gold production for the financial year. Image by PR HANDOUT IMAGE PHOTO

Mining and Resources

Evolution lifts June quarter gold output

2020-07-24 14:33:23

Gold miner Evolution has posted its best quarter of gold production for the financial year, helped by strong output at its recently-acquired Red Lake mine in Canada.

Group gold production for the June quarter was 218,104 ounces, up 32 per cent from 165,502 ounces in the previous quarter.

The company said Red Lake performed better than expected in its first quarter under Evolution ownership. 

It recorded output of 27,428 ounces at an all-in sustaining cost of $1,943 per ounce, against its guidance of 25,000 ounces at $2,100 an ounce.

Evolution reduced the Red Lake workforce by 114 people to 740 employees in June, which will cut costs.

The miner reported record operating cash flow of $352 million in the quarter, over a third higher than the previous quarter.

The company has benefited from a surge in gold prices as the coronavirus pandemic spurs safe-haven demand. Overnight, gold prices surged to a nine-year peak of $US1,870.01 per ounce as an escalation in US-China tensions stoked demand for the precious metal. 

Evolution made a substantial sale during the quarter, divesting the Cracow gold mine in Queensland to Aeris Resources for $125 million.

The miner is due to publish its full-year results on August 13.