Issue link: http://resourceworld.uberflip.com/i/1207716
48 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 2 0 AUSTRALIAN UPDATE C oming into 2020 Evolution Mining Ltd. [EVN-ASX; CAHPF-OTC], one of Australia's best known gold pro- ducers, is in a sound position being debt free with its Red Lake deal with Newmont bedded down, albeit with a downgrade warning announced just 10 days into the New Year. Getting the bad news out of way, Evolution told the market, in its January announcement, that recent grade con- trol and resource definition drilling in the V2 open pit at its Mt Carlton mine in Queensland "has returned results that have identified the West and East Lode orebodies are narrowing at shallower lev- els than previously modelled." The impact, the company said, is a loss of ore tonnes in areas that were planned to be mined over the remainder of FY20 with an expected estimated production range of 70,000- 75,000 ounces for Mt Carlton (original FY20 guidance: 95,000-105,000 oz). The impact on the company's overall produc- tion for FY20 is "that Group production will be at the bottom end of guidance of around 725,000 ounces." The company says it is also in the pro- cess of re-estimating the Mineral Resources and Ore Reserves at Mt Carlton and the outcomes will be included in the Annual Group Mineral Resources and Ore Reserves Statement to be released February 12. While this is disappointing news, Evolution Mining is in good shape. The company's latest set of numbers, also released on January 10 this year, shows gold production in the September to December 2019 quarter from its mines in Queensland, New South Wales and Western Australia of 170,890 ounces at an All-in Sustaining Cost (AISC) cash cost, plus royalties, sustaining capital, general corporate and administra- tion expense and calculated per ounce sold of AUD $1,069/oz (US $730/oz). Based on a financial year of July 1 to June 30 its year to date, production figure is 362,857 ounces at an AISC of AUD $1,040/oz (US$712/oz). Overall mine operating cash flow is at AUD $233.1 million and net mine cash flow sits at AUD $144.0 million. Importantly, Evolution ended the quarter debt free and with cash at bank of AUD $170.3 million after repay- ing outstanding bank debt of AUD $275.0 million. With a solid track record in Australia, Evolution is about to become a player in the Canadian gold mining space. In November last year it announced it has entered into an agreement with Newmont Goldcorp Corp. [NGT-TSX; NEM-NYSE] to acquire 100% of the well-known Red Lake gold complex, an underground gold mining complex in western Ontario. The operation comprises the Red Lake and Campbell complexes, each consisting of an underground mine and associated process- Evolution Mining now a Red Lake player by Greg Barns WITH A SOLID TRACK RECORD IN AUSTRALIA, EVOLUTION IS ABOUT TO BECOME A PLAYER IN THE CANADIAN GOLD MIN- ING SPACE.