Record quarterly Group gold production of 203,700 ounces
Group All-In Sustaining Cost1 (AISC) of A$1,016 per ounce (US$732/oz)2
Record quarterly production from Mt Carlton of 30,026 ounces at an AISC of A$507 per ounce (US$365/oz)
Continued strong cash flow from operations of A$97.8 million
Early debt repayment of A$50 million plus a further A$25 million repaid in January 2016
Phoenix Gold acquisition finalised - materially increasing Mungari resources and ground holding
High grade intersections3 from drilling programs targeting mine life extensions:
Mt Carlton (V2): 10m (5.7m*) grading 22.0g/t gold from 69m (HC15DD1147)
Mungari (Frog's Leg): 17.2m (11.8m*) grading 4.5g/t gold from 185m (FLRD110)
Upgraded FY16 Group guidance to:
Production of 770,000 - 820,000 ounces (increased from 730,000 - 810,000 ounces)
C1 cash costs of A$700 - A$740 per ounce (decreased from A$715 - A$795 per ounce)
AISC of A$970 - A$1,020 per ounce (decreased from A$990 - A$1,060 per ounce)
Units | Jun quarter FY15 | Sep quarter FY16 | Dec quarter FY16 | FY16 YTD | |
Gold produced | oz | 113,821 | 174,169 | 203,700 | 377,869 |
By-product silver produced | oz | 111,580 | 170,202 | 169,767 | 348,199 |
C1 Cash Cost | A$/oz | 690 | 631 | 759 | 700 |
All-In Sustaining Cost1 | A$/oz | 1,048 | 882 | 1,016 | 954 |
All-in Cost4 | A$/oz | 1,318 | 1,015 | 1,164 | 1,095 |
Gold sold | oz | 111,783 | 179,256 | 205,863 | 385,119 |
Achieved gold price | A$/oz | 1,533 | 1,559 | 1,536 | 1,547 |
Silver sold | oz | 112,681 | 178,432 | 169,767 | 348,199 |
Achieved silver price | A$/oz | 21 | 20 | 20 | 20 |
Includes C1 cash cost, plus roy alty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis
All US dollar prices in this report hav e been calculated using the av erage AUD:USD exchange rate f or the Dec 2015 quarter of 0.7204
Reported interv als are down hole widths as true widths are not currently known. *An estimated true wid th (etw) is prov ided
Includes AISC plus growth (major project) capital and discov ery expenditure. Calculated on per ounce sold basis
Group gold production for the December 2015 quarter was a record 203,700 ounces. This was a 17% increase compared to the prior quarter (Sep qtr: 174,169oz) reflecting the first full quarter of production from
the Cowal and Mungari assets. Average C1 cash cost for the quarter was A$759/oz (Sep qtr: A$631/oz) and AISC1 was A$1,016/oz (Sep qtr: A$882/oz).
Using the average AUD:USD exchange rate for the quarter of 0.7204, Evolution's Group costs equated to: C1 US$547/oz and AISC of US$732/oz.
Evolution continued its strong financial performance in the December 2015 quarter with a net mine cash flow of A$97.8 million (Sep qtr: A$105.0 million). All sites again produced positive net mine cash flow.
Mt Carlton was a standout performer achieving record production of 30,026 ounces at a C1 cash cost of A$337/oz (US$243/oz) and AISC of A$507/oz (US$365/oz). Higher production and lower unit costs were due to the mined grade continuing to significantly outperform the Ore Reserve estimate.
The strong operational cash flow allowed Evolution to make early repayments totalling A$50.0 million into its Senior Secured Syndicated Facility during the December quarter. Subsequent to the end of the quarter, an additional A$25.0 million early repayment was made. Since the beginning of September 2015 total debt outstanding has been reduced by A$152.0 million to A$455.0 million. Outstanding debt comprises of A$130.0 million in the Senior Secured Syndicated Revolver Facility and A$325.0 million in the Senior Secured Syndicated Term Facility. The Group cash balance at 31 December 2015 was A$45.3 million.
The Company's commitment to exploration is now yielding exciting results with good drill intercepts reported at most of the operations. Highlights include the potential for mine life extension at Mt Carlton and Mungari following successful drilling programs. At Mt Carlton, a drilling program testing the strike and dip extensions of the V2 open pit high-grade bonanza lodes returned significant intersections including 10m (5.7m etw) grading 22.0g/t Au from 69m (HC15DD1147). At Mungari significant intercepts included 6.9m (5.1m etw) grading 8.4g/t Au (FLRD105) from resource definition drilling testing extensions to Frog's Leg high-grade mineralisation.
Evolution's takeover offer for Phoenix Gold closed on 30 December 2015 with Evolution having a relevant interest in 95.67% of all Phoenix shares on issue. Evolution is now proceeding with the compulsory acquisition of the remaining Phoenix shares on issue.
Cracow Pajingo
Mt Rawdon
40,692
59,782
Edna May Mt Carlton Cowal
54,792
FY16 Dec qtr ounces 19,777101,211
FY16 YTD ouncesMungari
30,026
54,239
36,035AISC includes C1 cash cost, plus roy alty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis f ollowing transition to "All-in" cost metric calculation to World Gold Council standards in FY 16. Prev iously reported on a per ounce produced basis. Prior periods hav e not been restated
Revised FY16 Group guidanceThe strong operational performance in the first half of FY16 has allowed Evolution to upgrade its Group production and cost guidance.
FY16 Group guidance has been upgraded to:
Production of 770,000 - 820,000 ounces (increased from 730,000 - 810,000 ounces)
C1 cash costs of A$700 - A$740 per ounce (decreased from A$715 - A$795 per ounce)
AISC of A$970 - A$1,020 per ounce (decreased from A$990 - A$1,060 per ounce)
Cowal FY16 AISC guidance has been decreased to A$800 - A$850 per ounce (from A$860 - A$950 per ounce).
Mt Carlton's outperformance due to consistent positive grade reconciliation is expected to continue. Evolution expects Mt Carlton to materially exceed the top end of original FY16 production guidance of 80,000 - 87,500 ounces and deliver costs below the bottom end of guidance (C1: A$525 - A$575/oz; AISC: A$760 - A$810/oz).
Group total recordable injury frequency rate as at 31 December 2015 was 11.5 (30 Sep 2015: 13.6). The lost time injury frequency rate was 1.1 (30 Sep 2015: 1.3). During the quarter Evolution continued to focus on the reduction of vehicle incidents. The Evolution 100,000 km health challenge was held during the quarter with 680 participants over a 6-week period walking 142,384 km.
As at 31 Dec 2015 | LTI | LTIFR | TRIFR |
Cowal | 0 | 0 | 10.7 |
Mungari | 1 | 2.6 | 14.1 |
Mt Rawdon | 0 | 0 | 8.3 |
Edna May | 1 | 3.7 | 7.4 |
Cracow | 0 | 0 | 19.0 |
Pajingo | 0 | 0 | 21.6 |
Mt Carlton | 0 | 2.2 | 4.4 |
Group | 2 | 1.1 | 11.5 |
LTI: Lost time injury. A lost time injury is defined as an occurrence that resulted in a fatality, permanent disability or time lost from w ork of one day/shift or more
LTIFR: Lost time injury frequency rates. The frequency of injuries involving one or more lost w orkdays per million hours w orked. Results above are based on a 12 month moving average
TRIFR: Total recordable injury frequency rate. The frequency of total recordable injuries per million
hours w orked. Results above are based on a 12 month moving average
December Qtr FY16 | Units | Cow al | Mungari | Mt Raw don | Edna May | Cracow | Pajingo | Mt Carlton | Group |
UG lat dev - capital | m | - | 381 | - | - | 660 | 487 | - | 1,527 |
UG lat dev - operating | m | - | 345 | - | - | 625 | 405 | - | 1,374 |
Total UG lateral dev elopment | m | - | 726 | - | - | 1,284 | 891 | - | 2,902 |
UG ore mined | kt | - | 196 | - | - | 116 | 101 | - | 413 |
UG grade mined | g/t | - | 5.28 | - | - | 5.74 | 5.80 | - | 5.54 |
OP capital waste | kt | - | 234 | 3,205 | 635 | - | - | 623 | 4,697 |
OP operating waste | kt | 935 | 1,990 | 142 | 1,457 | - | - | 106 | 4,630 |
OP ore mined | kt | 2,279 | 366 | 522 | 538 | - | - | 220 | 3,926 |
OP grade mined | g/t | 1.08 | 1.38 | 0.95 | 0.94 | - | - | 7.40 | 1.42 |
Total ore mined | kt | 2,279 | 562 | 522 | 538 | 116 | 101 | 220 | 4,339 |
Total tonnes processed | kt | 1,736 | 406 | 804 | 759 | 121 | 109 | 194 | 4,128 |
Grade processed | g/t | 1.18 | 3.32 | 0.84 | 0.81 | 6.12 | 5.49 | 6.51 | 1.76 |
Recov ery | % | 82.9 | 93.9 | 90.2 | 92.1 | 93.2 | 94.0 | 89.3 | 88.0 |
Gold produced | oz | 54,792 | 40,692 | 19,777 | 18,266 | 22,120 | 18,026 | 30,026 | 203,700 |
Silv er produced | oz | 51,282 | 5,660 | 26,407 | 7,999 | 14,274 | 16,147 | 53,669 | 175,438 |
Copper produced | t | - | - | - | - | - | - | 298 | 298 |
Gold sold | oz | 52,820 | 43,894 | 21,894 | 19,183 | 22,891 | 17,273 | 27,907 | 205,863 |
Achiev ed gold price | A$/oz | 1,518 | 1,536 | 1,551 | 1,588 | 1,540 | 1,538 | 1,515 | 1,536 |
Silv er sold | oz | 51,282 | 5,660 | 26,407 | 7,999 | 14,274 | 16,147 | 47,998 | 169,767 |
Achiev ed silv er price | A$/oz | 20 | 20 | 20 | 20 | 21 | 20 | 20 | 20 |
Copper sold | t | - | - | - | - | - | - | 301 | 301 |
Achiev ed copper price | A$/t | - | - | - | - | - | - | 6,455 | 6,455 |
Cost Summary | |||||||||
Mining | A$/prod oz | 286 | 521 | 154 | 590 | 380 | 478 | 72 | 343 |
Processing | A$/prod oz | 468 | 250 | 496 | 538 | 209 | 229 | 242 | 351 |
Administration and selling costs | A$/prod oz | 105 | 58 | 136 | 134 | 118 | 123 | 213 | 120 |
Stockpile adjustments | A$/prod oz | (116) | (66) | 206 | 29 | 60 | (0) | (93) | (29) |
By -product credits | A$/prod oz | (19) | (3) | (27) | (9) | (13) | (18) | (97) | (26) |
C1 Cash Cost (produced oz) | A$/prod oz | 725 | 760 | 965 | 1,282 | 754 | 812 | 337 | 759 |
C1 Cash Cost (sold oz) | A$/sold oz | 752 | 704 | 871 | 1,221 | 729 | 848 | 362 | 751 |
Roy alties | A$/sold oz | 49 | 34 | 79 | 63 | 94 | 81 | 114 | 67 |
Gold in Circuit and other adjustments | A$/sold oz | (45) | 85 | 89 | 133 | 53 | (14) | (75) | 23 |
Sustaining capital1 | A$/sold oz | 28 | 113 | 158 | 60 | 221 | 272 | 67 | 111 |
Reclamation and other adjustments | A$/sold oz | 56 | 21 | 30 | 17 | 13 | (20) | 38 | 28 |
Administration costs2 | A$/sold oz | 4 | 37 | ||||||
All-in Sustaining Cost | A$/sold oz | 839 | 961 | 1,227 | 1,494 | 1,109 | 1,166 | 507 | 1,016 |
Major project capital | A$/sold oz | 0 | 34 | 477 | 144 | 75 | 67 | 140 | 104 |
Discov ery | A$/sold oz | 9 | 44 | 1 | 1 | 35 | 60 | 9 | 44 |
All-in Cost | A$/sold oz | 848 | 1,039 | 1,705 | 1,639 | 1,218 | 1,292 | 657 | 1,164 |
Depreciation & Amortisation³ | A$/prod oz | 312 | 532 | 490 | 422 | 427 | 221 | 589 | 428 |
Group Sustaining Capital includes a reduction of A$1.03/oz for Corporate capital expenditure fromproject capitalisations
Includes Share Based Payments
Group Depreciation and Amortisation includes Corporate Depreciation and Amortisation of A$1.33/oz
Evolution Mining Limited issued this content on 27 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 January 2016 21:48:51 UTC
Original Document: http://www.evolutionmining.com.au/wp-content/uploads/2016/01/160127-Dec-2015-Quarterly-Report-_F.pdf