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Evolution Mining climbs to 4-year high on upbeat Q2 production, bullion prices

The Cowal mine in New South Wales

The Cowal mine in New South Wales

22nd January 2025

By: Reuters

  

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Shares of Australia's Evolution Mining rose to a four-year high on Wednesday after the country's second-biggest gold miner reported an improved, better-than-expected output in the second quarter of fiscal 2025, boosted by strong bullion prices.

Evolution's stock rose as much as nearly 2% to A$5.77, its highest level since November 18, 2020, marking 14 sessions of gains in 15. The stock was among the top 10 gainers in the ASX gold sub-index.

The rally comes on the heels of renewed strength in prices of the yellow metal, as markets flocked to the safe-haven asset amid uncertainty surrounding US President Donald Trump's potential tariffs.

The company reported a quarterly group gold production of 194 793 oz, compared with 161073 oz a year earlier.

Evolution Mining, with operations in Canada, saw its Cowal mining operations in New South Wales supporting a huge margin of the company's production. It logged 91 417 oz this quarter, compared with 71 848 oz last year.

The company's cash flow surged 54% to A$165-million, with potential for further improvement in the second half, driven by high gold prices.

The "2Q25 results demonstrated signs of operational stability and were positive at the margin with a second quarter of positive cash flows from Red Lake and strong production from Cowal," analysts at Jefferies said in a note.

The miner expects a 25 000-oz production drop in the March quarter due to planned mine shutdowns, but remains on track to achieve its full-year gold and copper outlook.

Edited by Reuters

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