EVN - Evolution Mining

[divs4ever]

they recently bought a new project , and have interests and JVs in several smaller miners/explorers , so have plenty of choices on where to park cash

the big question is will copper prices continue to trend higher , given China will be tempted to buy more and more copper from Russia bypassing Western commodity exchanges

 

[bsnews]

IMO your reading way too much into it, it’s about now and that future cash trajectory into the next quarter looks good.

 

[finicky]

'Market Matters' comment on EVN today:

Evolution Mining Ltd (EVN) $3.95​

UBS upgraded their price target for EVN to $4.60, over 16% above yesterday’s close. EVN’s 25% copper exposure is a huge positive for MM, although it does indirectly reduce its leverage to higher gold prices. We believe their $525mn capital raise to purchase the Northparkes Copper-Gold Mine will ultimately prove to have been great timing; remember, only a few weeks ago, BHP failed in its efforts to buy Anglo American primarily to secure its copper assets.

• We like EVN around $4 with a test of $5, a very real possibility over the coming year – MM is long EVN

Not Held

 

[divs4ever]

costs reductions ( and the success/failure of ) is the key factor to watch here

this lot went for synergies over just buying new projects

i hold EVN

 

[finicky]

Afternoon report comment from Market Matters:

• Gold stocks found a base today, and we continue to believe that now is an opportunity to buy – Evolution (EVN) +1.4% is our preferred name.

Not Held

 

[divs4ever]

EXCEPTIONAL RESULTS FROM STEP-OUT DRILLING AT ERNEST HENRY

Key highlights
▪ Underground growth potential – exploration drilling from underground at Ernest Henry has returned exceptional results from extensional drilling to the Bert orebody.

The results include the highest-grade gold intercept ever drilled at Ernest Henry, showing the potential of Bert as an alternate mining front at the operation Ernest Henry

▪ Significant assays results have been received from Bert and Ernie Junior extensional drilling.

Mineralisedintercepts include:
▪ 51.7m (43.0m etw1) grading 4.12g/t gold and 1.65% copper from 93.5m (EH1402)
▪ 37.3m (26.0m etw) grading 1.03g/t gold and 1.59% copper from 469.7m (EH1395)
▪ 72.1m (69.0m etw) grading 0.59g/t gold and 0.88% copper from 134.0m (EH1385)
▪ Both orebodies remain open with strong potential for Mineral Resource growth

Commenting on the new drilling results, Evolution’s Vice President Discovery, Glen Masterman said:‘Drilling results from Bert continue to reinforce the significant growth options at Ernest Henry.

Located adjacent to the north wall of the pit, Bert represents a potential production target that could be mined independently of the underground materials handling system.

We are excited about the opportunity to extend the mineralisation footprint at Bert with further drilling to be completed during FY25.’1 Estimated true width Ernest Henry, Queensland (EVN 100%)Assay results for extensional drilling at Bert and infill drilling immediately north of the mine extension study have been received this quarter with an Ernest Henry record-breaking gold intersection at Bert (see Figure 1).

Approximately 50m down-plunge of the current Bert interpretation, EH1402 has intersected 51.7m (43.0m etw)grading 4.12g/t gold and 1.65% copper.

The intersection includes a high-grade interval of 21.0m (19.0m etw)grading 8.15g/t gold and 2.23% copper.

The high-grade mineralisation is showing good continuity down-plunge,having been previously intersected by four drill holes.2 Further extensional drilling from underground is planned in FY25 to test the down-plunge extension from EH1402.

Northparkes, New South Wales (EVN 80%)

At Northparkes, drilling has recommenced at the Major Tom and E51 prospects. Drilling is designed to follow up previously announced3 high-grade drilling results including 180m grading 0.97% copper and 0.13g/t gold at MajorTom and 142m grading 0.88% copper and 0.14g/t gold at E51.

Holes are planned with the aim of testing scale and continuity of near-surface, copper-rich mineralisation.

Both prospects are within 4km of the plant and straddle the contact between an underlying monzonite stock and overlying volcanic rocks, an important geological position forkey orebodies at Northparkes.

Greenfields Exploration Update

Cloncurry North (EVN earning 80%)4The Cloncurry North project is located within 15km of Ernest Henry.

Evolution recently acquired high-resolution gravity data at the project, identifying new untested drill targets in the same rocks hosting copper and gold mineralisation at Ernest Henry and with a similar geophysical signature.
Drilling is planned to commence on these target areas during the September 2024 quarter.

Lake St. Joseph (100%) and October Gold (EVN earning 75%)4

The field season has commenced at Evolution’s wholly owned Lake St. Joseph project, located ~60km south ofPickle Lake, Ontario, in the Rice Lake – Pickle Lake greenstone belt.

Till sampling and mapping will be completed during the summer months in Canada with the objective of developing future drilling targets.

Exploration will also commence in the September 2024 quarter at the October Gold project in the Abitibi greenstonebelt in Ontario.
The October project is located ~35km north-west and along the same mineralised corridor as the 12Moz Côté Lake mine5 situated 110km south-west of Timmins, Ontario.

i hold EVN

this paired with the quarterly released today should see the share price lift a little

 

[Sean K]

EXCEPTIONAL RESULTS FROM STEP-OUT DRILLING AT ERNEST HENRY

Key highlights
▪ Underground growth potential – exploration drilling from underground at Ernest Henry has returned exceptional results from extensional drilling to the Bert orebody.

The results include the highest-grade gold intercept ever drilled at Ernest Henry, showing the potential of Bert as an alternate mining front at the operation Ernest Henry

▪ Significant assays results have been received from Bert and Ernie Junior extensional drilling.

Mineralisedintercepts include:
▪ 51.7m (43.0m etw1) grading 4.12g/t gold and 1.65% copper from 93.5m (EH1402)
▪ 37.3m (26.0m etw) grading 1.03g/t gold and 1.59% copper from 469.7m (EH1395)
▪ 72.1m (69.0m etw) grading 0.59g/t gold and 0.88% copper from 134.0m (EH1385)
▪ Both orebodies remain open with strong potential for Mineral Resource growth

Commenting on the new drilling results, Evolution’s Vice President Discovery, Glen Masterman said:‘Drilling results from Bert continue to reinforce the significant growth options at Ernest Henry.

Located adjacent to the north wall of the pit, Bert represents a potential production target that could be mined independently of the underground materials handling system.

We are excited about the opportunity to extend the mineralisation footprint at Bert with further drilling to be completed during FY25.’1 Estimated true width Ernest Henry, Queensland (EVN 100%)Assay results for extensional drilling at Bert and infill drilling immediately north of the mine extension study have been received this quarter with an Ernest Henry record-breaking gold intersection at Bert (see Figure 1).

Approximately 50m down-plunge of the current Bert interpretation, EH1402 has intersected 51.7m (43.0m etw)grading 4.12g/t gold and 1.65% copper.

The intersection includes a high-grade interval of 21.0m (19.0m etw)grading 8.15g/t gold and 2.23% copper.

The high-grade mineralisation is showing good continuity down-plunge,having been previously intersected by four drill holes.2 Further extensional drilling from underground is planned in FY25 to test the down-plunge extension from EH1402.

Northparkes, New South Wales (EVN 80%)

At Northparkes, drilling has recommenced at the Major Tom and E51 prospects. Drilling is designed to follow up previously announced3 high-grade drilling results including 180m grading 0.97% copper and 0.13g/t gold at MajorTom and 142m grading 0.88% copper and 0.14g/t gold at E51.

Holes are planned with the aim of testing scale and continuity of near-surface, copper-rich mineralisation.

Both prospects are within 4km of the plant and straddle the contact between an underlying monzonite stock and overlying volcanic rocks, an important geological position forkey orebodies at Northparkes.

Greenfields Exploration Update

Cloncurry North (EVN earning 80%)4The Cloncurry North project is located within 15km of Ernest Henry.

Evolution recently acquired high-resolution gravity data at the project, identifying new untested drill targets in the same rocks hosting copper and gold mineralisation at Ernest Henry and with a similar geophysical signature.
Drilling is planned to commence on these target areas during the September 2024 quarter.

Lake St. Joseph (100%) and October Gold (EVN earning 75%)4

The field season has commenced at Evolution’s wholly owned Lake St. Joseph project, located ~60km south ofPickle Lake, Ontario, in the Rice Lake – Pickle Lake greenstone belt.

Till sampling and mapping will be completed during the summer months in Canada with the objective of developing future drilling targets.

Exploration will also commence in the September 2024 quarter at the October Gold project in the Abitibi greenstonebelt in Ontario.
The October project is located ~35km north-west and along the same mineralised corridor as the 12Moz Côté Lake mine5 situated 110km south-west of Timmins, Ontario.

i hold EVN

this paired with the quarterly released today should see the share price lift a little

Just about the only thing green on my screen today.

Not sure why some of these drill holes extending Bert and Ernie hadn't been put in before. Maybe they have but nothing significant. Looks like the overall orebody is going to go well below the 800mRL. Just need to keep drilling down into the green bits on this cartoon. Going to be lots more copper and gold coming out of this at the right time.

 

[finicky]

I'm almost persuaded .. naah

Afternoon report comment from Market Matters:

• Evolution Mining (EVN) +2.76% was strong on a good quarterly, which is very important for them. Operational issues have plagued them over the years, and a renewed focus on operational delivery is yielding results.
• When a stock has a habit of missing, they get priced on a discount to peers ,and vice versa. EVN is still on a discount, however, operationally, they are getting better – more runs on the board will continue to underpin greater confidence from the market.
• An example of what can happen when an underachiever becomes an over achiever operationally is Sandfire Resources (SFR).

 

[divs4ever]

I'm almost persuaded .. naah

Afternoon report comment from Market Matters:

• Evolution Mining (EVN) +2.76% was strong on a good quarterly, which is very important for them. Operational issues have plagued them over the years, and a renewed focus on operational delivery is yielding results.
• When a stock has a habit of missing, they get priced on a discount to peers ,and vice versa. EVN is still on a discount, however, operationally, they are getting better – more runs on the board will continue to underpin greater confidence from the market.
• An example of what can happen when an underachiever becomes an over achiever operationally is Sandfire Resources (SFR).

the time to be on board with EVN was years back , and maybe add a few at you leisure later ,

lucky for me EVN was cheap ( under $1 ) at the right time

i guess too many think EVN will become another Newcrest or Northern Star , but they seem to be just happy to mine at a profit ( instead of just mining shareholder pockets like some others i have held )

i tend to think of them more as a copper miner , and that seems to have guided me better ( not get too excited over drill results and focus on production data )

 

[mullokintyre]

Picked up a few EVN at 3.90 today.
Mick

 

[divs4ever]

i need a '2' handle before i get interested ( in adding more )

good luck

no dedicated gold miners on my shopping list today

 

[mullokintyre]

i need a '2' handle before i get interested ( in adding more )

good luck

no dedicated gold miners on my shopping list today

If gold falls sufficiently for there to be a 2 in front of EVN, then I probably would not be buying anything in gold.
Mick

 

[divs4ever]

If gold falls sufficiently for there to be a 2 in front of EVN, then I probably would not be buying anything in gold.
Mick

would mostly likely be a general market meltdown ( in the GFC it seemed everything was turned into cash )

but currently have a selection of gold miners ( can never seem to find a silver miner at an attractive price , so went after copper miners instead )

am in no hurry to add more EVN , but then ( more ) NST is so far out of my price range would be more likely to add ZIM

 

[divs4ever]

CYBER SECURITY INCIDENT

Evolution Mining Limited (“Evolution” or “The Company”) became aware on 8 August 2024 of a ransomware attack impacting its IT systems. The Company has been working with its external cyber forensic experts to investigate the incident.

Based on work to date, the Company believes the incident is now contained.

The incident has been proactively managed with a focus on protecting the health, safety and privacy of people,together with the Company’s systems and data.

The Company does not anticipate any material impact on operations.

Evolution has reported the attack to the Australian Cyber Security Centre.

This release has been approved by Evolution Mining’s Executive Chair, Jake Klein.

i hold EVN ( this looks unlikely hit my much lower target price , but i have wrong before )

 

[finicky]

FY24 results look excellent at a glance and a promising FY25 outlook.

Not Held

 

[finicky]

"Evolution will benefit from a rising gold price with around 94% of production over FY25 and FY26 unhedged. The 100,000oz of hedged gold over the next two years relates to the Mungari 4.2 expansion project. There is no copper hedging in place and no gold hedging beyond FY26.18 July 2024"

Welcome to Evolution Mining - Evolution Mining

Creating a Premier global gold company Latest News 2023 Sustainability Report FY23 Sustainability Case Studies FY23 ESG Performance Data Our Story It’s all in the name… we’ve evolved from a small company into a globally relevant gold mining business with a reputation of delivering value for all...

evolutionmining.com.au

PDF

Evolution Mining - Quarterly Report | June 2024​

 

[Sean K]

"Evolution will benefit from a rising gold price with around 94% of production over FY25 and FY26 unhedged. The 100,000oz of hedged gold over the next two years relates to the Mungari 4.2 expansion project. There is no copper hedging in place and no gold hedging beyond FY26.18 July 2024"

Welcome to Evolution Mining - Evolution Mining

Creating a Premier global gold company Latest News 2023 Sustainability Report FY23 Sustainability Case Studies FY23 ESG Performance Data Our Story It’s all in the name… we’ve evolved from a small company into a globally relevant gold mining business with a reputation of delivering value for all...

evolutionmining.com.au

PDF

Evolution Mining - Quarterly Report | June 2024​

What are they going to do with all that cash? I doubt they'll hand it back to shareholders and they'll look for another acquisition and fat bonuses.

 

[divs4ever]

What are they going to do with all that cash? I doubt they'll hand it back to shareholders and they'll look for another acquisition and fat bonuses.

from memory EVN has several interests in junior ( brownfield ) miners and explorers , similar to OZL back in the day

a good chance they will 'earn-in' on selected projects , maybe even buy out a partner or two

 

[finicky]

If I recall your pie chart, you hold EVN @Sean K ? I will be considering it more closely. I have never liked it and the apparently poor high cost Red Lake acquisition confirmed my avoidance. But this result shows they can perform well despite the drag of Red Lake and their guidance is pretty persuasive for FY25. But based on a guess of not much more than 10% ROE for FY24 (I haven't done the sums) it seems about fairly priced on current earnings. But I am an optimist on the 'medium term' gold price and their hedging is trivial which I hadn't known before, so a more valuable company in future possibly.

Not Held

 

[Sean K]

If I recall your pie chart, you hold EVN @Sean K ? I will be considering it more closely. I have never liked it and the apparently poor high cost Red Lake acquisition confirmed my avoidance. But this result shows they can perform well despite the drag of Red Lake and their guidance is pretty persuasive for FY25. But based on a guess of not much more than 10% ROE for FY24 (I haven't done the sums) it seems about fairly priced on current earnings. But I am an optimist on the 'medium term' gold price and their hedging is trivial which I hadn't known before, so a more valuable company in future possibly.

Not Held

Sold both EVN and NST 18 July to concentrate portfolio mentioned in my trading diary. Might have sold EVN too early. Was more interested in their copper push really. I'm more interested in ETFs and juniors at the moment.