CAHPF - Evolution Mining: Digging Into The Recent Acquisition

• Evolution Mining announced the acquisition of assets in the Eastern Goldfields in Western Australia for ~$296 million from Northern Star Resources.
• This deal adds significant reserves to the company's Mungari asset, not only extending the mine life but translating to a material increase in the average reserve grade.
• Combined with growth plans at Cowal and RL, Evolution now has 3 assets with 12+ year mine lives and an enviable compound annual production growth rate of ~6.9% to FY2024.
• While I was not elated with the ~6% share dilution in the deal, Evolution paid the right price for the assets and looks very reasonably valued at current levels.

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