EVN - Evolution Mining

[rcw1]

@divs4ever for your favour of consideration...

Are Investors Undervaluing Evolution Mining Limited (ASX:EVN) By 49%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Evolution Mining...

au.finance.yahoo.com

Kind regards
rcw1

 

[rcw1]

What's impressing analysts?​

• Evolution cut to Sell: Citi

Analysts ha ha ha ha ha...

Kind regards
rcw1

 

[Rabbithop]

What's impressing analysts?​

• Evolution cut to Sell: Citi

Analysts ha ha ha ha ha...

Kind regards
rcw1

Good morning Row. And your conclusion???

 

[rcw1]

Good morning Row. And your conclusion???

Hey M8,
Don't necessarily pay any attention to the noise, but concentrate on the numbers in real time as you would be aware.
SP has moved from the $1 and $2 levels now for some time. Still far far away from its 2020 3rd and 4th quarters SP highs.
Note the announcement yesterday re: ... satisfies earn-in milestone to earn a 75% interest in the Cue Joint Venture.

September 2022 1/4erly revealed FY23 guidance unchanged ▪ FY23 production and AISC guidance remains unchanged at 720,000 ounces +/- 5% and $1,240 per ounce +/- 5% (~US$870/oz)

September 2022 quarterly publication:

Group Cash Flow Cash at bank of $398.1 million (30 Jun 2022: $572.4 million) was after payment of the FY22 final dividend of $55.0 million and $45.0 million in scheduled debt repayments during the quarter.
In October 2022, Evolution's undrawn Revolving Credit Facility was renewed for three years to October 2025 with the facility increased from $360 million to $525 million on commercial terms in line with the expiring facility. The performance bond facilities were also renewed for a further three years to October 2025.
This reinforces Evolution’s strong balance sheet with total available liquidity of $923 million. Achieved copper price includes impact from revaluation process during the quotational period (QP) for Ernest Henry sales 12 Includes additional revolver limit, effective 13 October 2022

So then, yeah rcw1 happy to trade EVN so, buy and sell hopefully fast, but hold, too, at rcw1 discretion.

Have a very nice day today Rabbithop.

Kind regards
rcw1

 

[Rabbithop]

Hey M8,
Don't necessarily pay any attention to the noise, but concentrate on the numbers in real time as you would be aware.
SP has moved from the $1 and $2 levels now for some time. Still far far away from its 2020 3rd and 4th quarters SP highs.
Note the announcement yesterday re: ... satisfies earn-in milestone to earn a 75% interest in the Cue Joint Venture.

September 2022 1/4erly revealed FY23 guidance unchanged ▪ FY23 production and AISC guidance remains unchanged at 720,000 ounces +/- 5% and $1,240 per ounce +/- 5% (~US$870/oz)



View attachment 151626

September 2022 quarterly publication:

Group Cash Flow Cash at bank of $398.1 million (30 Jun 2022: $572.4 million) was after payment of the FY22 final dividend of $55.0 million and $45.0 million in scheduled debt repayments during the quarter.
In October 2022, Evolution's undrawn Revolving Credit Facility was renewed for three years to October 2025 with the facility increased from $360 million to $525 million on commercial terms in line with the expiring facility. The performance bond facilities were also renewed for a further three years to October 2025.
This reinforces Evolution’s strong balance sheet with total available liquidity of $923 million. Achieved copper price includes impact from revaluation process during the quotational period (QP) for Ernest Henry sales 12 Includes additional revolver limit, effective 13 October 2022

So then, yeah rcw1 happy to trade EVN so, buy and sell hopefully fast, but hold, too, at rcw1 discretion.

Have a very nice day today Rabbithop.

Kind regards
rcw1

Great to read your reply. I don't own this stock, only on my watchlist and yes, we need to block out those noises. Ok to read n work it out for ourselves. Have a good day.

 

[divs4ever]

QUARTERLY REPORT
HIGHLIGHTS – PERIOD ENDING 31 DECEMBER 2022
Evolution Mining Limited Quarterly Report December 2022
Materially improved operational cash flow and on track to deliver FY23 guidance
▪ Improved safety performance with an 8% reduction in TRIF to 9.32
▪ Higher gold production of 166,404 ounces (3% increase quarter on quarter) and higher copper production
of 15,483 tonnes (7% increase quarter on quarter)
▪ All-in-Sustaining Costs (AISC)1
reduced by 27% to $1,099/oz (US$722/oz)
2
▪ All-in Cost (AIC) reduced by 17% to $2,085/oz against a 6% increase in achieved gold price
▪ Mine operating costs were in line with the prior quarter at $347 million and are being well controlled in the
current inflationary environment
▪ Operating mine cash flow increased by 31% to $270 million
▪ Standout operational performance from Cowal of 73,676 ounces (33% increase) at an AISC of A$1,042/oz
(23% reduction), with record quarterly throughput achieved under Evolution ownership, generating $93
million in mine cash flow before major capital
▪ Ernest Henry generated $142 million in mine cash flow before major capital for the quarter
▪ Cowal Underground is on budget and schedule, with first stope ore due in the June 2023 quarter
Group FY23 guidance unchanged
▪ Group FY23 production and AISC guidance remains unchanged at 720,000 ounces (+/- 5%) and $1,240/oz
(+/- 5%) [~US$870/oz]
Continued exploration success at Ernest Henry3
▪ New drillholes as part of the ongoing exploration program have intersected significant mineralisation widths
below and within the Ernest Henry Mine Extension Pre-Feasibility Study (PFS) area, indicating strong
potential to increase the footprint of the mine and Mineral Resource – a decision has been made to extend
the PFS to incorporate the larger footprint in determining the optimal location of infrastructure. This work is
expected to be completed in the June quarter
Strong liquidity position maintained at quarter end
▪ Cash of $313 million and liquidity of $838 million4 after scheduled debt repayments of $40 million

Commenting on the achievements in the December quarter, Evolution Mining Limited’s (ASX:EVN) Chief
Executive Officer and Managing Director, Lawrie Conway, said:
“We generated very strong operating cash flow this quarter which reinforces our position as one of the lowest
cost, highest margin global gold producers. Our sustained focus on operating and capital costs in the current
environment continues to deliver benefits. Standout operational performance was delivered at Cowal despite
weather impacts, with the highest quarterly throughput achieved since we have owned the asset. We are
confident that our performance at Red Lake will improve as we access more higher-grade ore from the new
Upper Campbell mine.
We remain on track to deliver Group FY23 production and cost guidance with planned quarterly performance
weighted to the second half of the year.
With available liquidity of $838 million, our balance sheet is well positioned to support our growth in low-cost
production.”

part of a larger ann.

===============================================================================

( DYOR )

i hold EVN

will be interesting to see how the market views this

i have been adding to my position over the last two years

i expect i will be even more careful about adding extra in the coming two years

 

[mullokintyre]

QUARTERLY REPORT
HIGHLIGHTS – PERIOD ENDING 31 DECEMBER 2022
Evolution Mining Limited Quarterly Report December 2022
Materially improved operational cash flow and on track to deliver FY23 guidance
▪ Improved safety performance with an 8% reduction in TRIF to 9.32
▪ Higher gold production of 166,404 ounces (3% increase quarter on quarter) and higher copper production
of 15,483 tonnes (7% increase quarter on quarter)
▪ All-in-Sustaining Costs (AISC)1
reduced by 27% to $1,099/oz (US$722/oz)
2
▪ All-in Cost (AIC) reduced by 17% to $2,085/oz against a 6% increase in achieved gold price

I get a bit peeved when co's mix AUD and USD.
In some of the above, they use USD, sometimes they put the AUD figure in brackets afterwards, and sometimes they put figures where you have to guess or extrapolate whether they are USD or AUD.
In the above example, is the IC at 2085/OZ in AUD or USD?
Makes a huge difference otherwise.

▪ Mine operating costs were in line with the prior quarter at $347 million and are being well controlled in the
current inflationary environment
▪ Operating mine cash flow increased by 31% to $270 million

Once again, are the above figures in AUD or USD?
Bit ordinary for my liking.
Mick

 

[divs4ever]

i was expecting 'ordinary '

and agree on currency mixing

i guess next year will be proof in production cost reduction ( which didn't greatly impress me in this report )

 

[divs4ever]

one might ( dangerously ) assume most amounts are in $A unless otherwise stated

if not my sub $2 price target will be coming soon

 

[Dona Ferentes]

On Monday Evolution revealed that the Ernest Henry operation was impacted by a regional weather event last week.

“On the evening of 08 March 2023 all personnel were safely removed from the mine due to water entering mine workings and the operations have suspended production activities.

“Re-entry of the mine was undertaken when it was safe to do so after the cessation of the rainfall event. Over the course of the weekend the Ernest Henry team was able to assess the impact of the event on the mine and commence development of a recovery plan.

“Mining activities are expected to restart in approximately 6 weeks, based on current planning and underground inspections."

 

[Sean K]

It's going to be nothing short of a miracle, or POG through $2075 that might push EVN through the great wall of $3.50 again...

 

[rcw1]

Good morning
EVN believers, some nice news coming out of the company's office today (03/04/23).

Evolution Mining says it is on track to restarting mining operations at Ernest Henry in Queensland within 6 weeks.
The shutdown followed a weather event on 8 March 2023.

Have a very nice day today.

Not holding

Kind regards
rcw1

 

[rcw1]

Good evening
Evolution Mining resumed operations at its weather-affected Ernest Henry mine site.

Activities at the Cloncurry mine site had been paused since it was inundated with water during a significant weather event on March 8, which resulted in staff being evacuated.

Evolution previously noted the weather impact at Ernest Henry would result in lower gold and copper production of about 17,000 ounces and 10,000 tonnes respectively in FY2023 whilst gold and copper production in the March quarter was reduced by some 6400 ounces and near 4100 tonnes respectively.

Kind regards
rcw1

 

[Sean K]

Looks like AUD POG ATHs has given this the boost it needed to get through that resistance level across $3.45 ish. Tested it as support and bounced.

There's still a number of gold stocks lagging the POG by quite a bit. General market sentiment holding them back. Hopefully they catch up to run away POG soon. This really should be attacking six bucks with POG at records.

 

[Sean K]

I think I'd rather NST and EVN hook up. Taking DEG at this stage would be a massive cost with a massive Capex.

With Ramelius Resources trumping a Westgold bid for Musgrave Minerals, and Wyloo completing its Mincor Resources takeover, the mergers and acquisitions market in Western Australia is abuzz with activity.

But the question some are asking is: what’s next?

There are market experts pointing to Evolution Mining as the next candidate for corporate activity.

It’s no secret that Evolution Mining, which has previously used Treadstone Partners as its adviser, has been scouting the market for takeover targets.

Evolution’s management has already made this known to investors.

But some are now narrowing down the prospects, with expectations that a bid for Gold Road Resources or De Grey Mining could be on its agenda.

The company is known to be keen to grow by snapping up production houses cheaply.

Gold Road Resources owns 19.9 per cent of De Grey Mining.

 

[Sean K]

This might have been OK except for the estimated $150m 'weather event' at EH.

I just had a thought that these guys have a MC of about $6.5b and their annual production is 770Koz Au and 50Kt Cu. Not sure what that is in AuEq. They do have a large overall inventory of 30.5Moz au, but it's over 5 projects all over the shop.

DEG have a MC of $2.1b and are potentially going to be producing over 700Koz pa, no Cu. The Capex will be about $1.3b so add that to the MC. Total inventory in one region around 11Moz, so big difference there.

But, just makes me think what DEG might be worth once they get into production. Or, maybe EVN is overs...

EVN hitting some support like a few other mid tier goldies at the moment. Will they hold? Hmmm

 

[finicky]

Good to see a smug, hands on hips, 'women are strong and powerful' gender included female taking credit for a result like this (pic).

Not Held

 

[Rabbithop]

I am with DEG.

 

[Sean K]

Can someone please tell me why I own this?

Asking for a friend.

( I like your new avatar @finicky )

 

[finicky]

It's just me in one of my many reflective moments.
Console yourself you don't hold RRL

Not Held