In major news on Australian stocks, Evolution Mining Limited (AU:EVN) shares surged by 7.5% today after the miner released positive quarterly results for the three months ended March 31, 2024. In the third quarter, Evolution Mining achieved a 15% rise in gold production as compared to the previous quarter, totaling 185,252 ounces of gold.
Remarkably, the improved production was achieved at a 9.6% lower AISC (all-in-sustaining cost) of AU$1,464 per ounce. The average realised price for the quarter was AU$3,171 per ounce, which was 3% above the previous quarter’s price.
Evolution Mining is a leading gold miner, currently operating six mines across Australia and Canada, with five of them being fully owned.
Snapshot of EVN’s Quarterly Report
For the March quarter, Evolution Mining’s cash flow reached AU$85 million, marking an increase of 7.5% from the previous quarter. Among its mines, Northparkes yielded AU$37 million in net cash flow during its first full quarter of ownership.
Meanwhile, in copper production, the company reported a growth of 42% to 19,909 tonnes in the March quarter as compared to the December quarter.
Speaking of the outlook, Evolution Mining kept its FY24 guidance unchanged. For the full year, gold production is anticipated to come in at the lower end of the range, around 749,000 ounces, while the AISC is expected to be at the higher end of the range, approximately $1,410 per ounce. Moreover, copper production is progressing at the upper end of the range, nearing about 65,000 tonnes.
Moving forward, Evolution will also gain from the rising gold and copper prices, given that roughly 95% of its gold remains unhedged, and there is no hedging for copper.
Is Evolution Mining a Good Stock to Buy?
According to TipRanks’ consensus, EVN stock has received a Moderate Buy rating based on a total of 11 recommendations, including nine Buys and two Sells. The Evolution Mining share price forecast is AU$3.69, which is 11.83% below the current trading levels.
