CAHPF - Evolution Mining: A Massive Q4 Needed To Hit Low End Of Guidance
2024-06-07 12:35:47 ET
Summary
- Evolution Mining Limited is tracking at just ~65% of its annual guidance, with a tough quarter in fiscal Q3 because of unfavorable weather at multiple sites.
- Fortunately, the company's integration of Northparkes has gone smoothly with a solid first quarter out of this asset, and AISC margins improved year-over-year with help from the gold price.
- In this update, we'll dig into the fiscal Q3 results, the fiscal Q4 outlook, and where the stock's updated low-risk buy zone lies.
The Q1 Earnings Season for the Gold Miners Index ( GDX ) was the first step in a turnaround for the industry, with meaningful margin expansion for most producers after a brutal three-year period (2021-2023). This was despite the first quarter typically being a softer production quarter for the group, impacting unit costs because of the lower denominator. Fortunately, Evolution Mining Limited ( CAHPF ) is following this trend with record gold prices helping to deleverage, and it has a monster fiscal Q4 on deck (calendar year Q2) with production expected to come in at record levels (230,000+ ounces).
In this update, we'll dig into the fiscal Q3 results, the Q4 outlook, and where the stock's updated low-risk buy zone lies:
Cowal Mine - Evolution Mining Website
