Strong Gold Production Results Propel Evolution Mining and Genesis Minerals into FY25

Evolution Mining and Genesis Minerals have reported impressive gold production results as they head into the 2024–25 financial year (FY25).

Evolution Mining

Evolution Mining achieved a 14 percent increase in gold production during the June 2024 quarter, producing 212,070 ounces (oz) of gold at an all-in sustaining cost (AISC) of $1275/oz, which is 13 percent lower than the previous quarter. The company recorded a remarkable 171 percent increase in quarterly group cash flow, rising from $85 million to $230 million. Additionally, Evolution saw a 74 percent increase in quarterly net mine cash flow, reaching $242 million, equivalent to $1170/oz.

The Cowal gold mine in New South Wales set a new production record, producing 94,826oz during the quarter. Evolution's managing director and CEO, Lawrie Conway, highlighted the strong performance, stating, “We had an outstanding June quarter with sector-leading cash generation and low costs which showcase the quality of our portfolio.”

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. Conway noted, “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. This result is a credit to our team.”

Genesis Minerals

Genesis Minerals, while accelerating its growth strategy, produced 34,617oz 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 FY24 guidance of 130,000–140,000oz at an AISC of $2300–2400/oz.

Genesis managing director Raleigh Finlayson described the quarter as highly successful, stating, “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 awaiting processing increased to about 314,000t under Genesis’ first 12 months of ownership, aligning with the company’s long-term strategy to “future-proof” the business.

On May 1, commercial production commenced at the Admiral open pit, located approximately 40km from the Leonora mill in WA. Finlayson stated, “We have successfully established a very large inventory which underpins forecast production of 3Moz (million ounces) over 10 years. We now want to unlock more of its value sooner to capitalize 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.”