CAHPF - Evolution Mining Limited (CAHPF) Q1 2025 Earnings Call Transcript
2024-07-19 02:03:06 ET
Evolution Mining Limited (CAHPF)
Q1 2025 Earnings Conference Call
July 17, 2024 08:30 PM ET
Company Participants
Lawrie Conway - Managing Director and Chief Executive Officer
Barrie Van Der Merwe - Chief Financial Officer
Glen Masterman - Vice President, Discovery
Conference Call Participants
Daniel Morgan - Barrenjoey
Jon Bishop - Jarden Group
Rahul Anand - Morgan Stanley
Levi Spry - UBS
David Radcliffe - Global Mining Research
Al Harvey - JPMorgan
Andrew Bowler - Macquarie
Alex Barclay - RBC
Jonathan Sharp - CLSA
Anthony Barrett - S&P Global
Matthew Frydman - MST Financial
Presentation
Lawrie Conway
Thank you, Darcy. Good morning, everyone. Joined on the call today by Barrie Van Der Merwe, our Chief Financial Officer; Glen Masterman, our VP, Discovery; and Peter O’Connor, our GM, Investor Relations. Today, we released our June quarterly report and an exploration update.
Firstly, while safely generating cash is definitely king as shown in our quarterly report, I have to start with the exceptional results at the Bert orebody that includes the highest-grade intercept ever drilled at Ernest Henry and definitely one of the best in Evolution’s history of 52 meters grading 4.1 grams per tonne gold and 1.65% copper. Bert is starting to show real potential as an additional mining front for Ernest Henry, and Glen is really excited to talk about that a little later this morning.
The June quarter generated some outstanding results and records to build on the improvements we delivered in the March quarter. The performance in June certainly sees us entering FY ‘25 in excellent shape. On the sustainability front, we achieved our targets or better across all key performance areas. Our total recordable injury frequency reduced by nearly 14% to 7.69% compared to a year ago. We are tracking very well on our targeted 30% reduction in emissions by 2030 with a 14.3% reduction to the end of May over our 2020 baseline.
Our Group cash flow for the quarter was a record $230 million nearly three times the March quarter. At the start of the year, we indicated that the built-in cash flow would occur as the year progressed. The June quarter demonstrates what the portfolio is capable of. Group cash flow for the year of $367 million was delivered at achieved metal prices that were $460 per ounce of gold and US$0.25 per pound for copper below current spot prices.
Gold production was 14% up to 212,000 ounces and copper production was 20,000 tonnes. Our All-in Sustaining Costs reduced by 13% to $1,275 per ounce or US$842 per ounce. This delivered over $240 million in net mine cash flow, which was a quarterly record and is equivalent to $1,170 per ounce. The three charts on the front page of our quarterly report gives a great snapshot of what has been delivered for the year.
Quarter-on-quarter, our operating mine cash flow has built up with the June quarter being nearly double the September quarter. This is on the back of plan quarter-on-quarter increasing production and reducing all-in sustaining cost. As a result, our Group cash flow was more than $250 million higher than the first quarter of the year. This has reduced our gearing materially by 23% over the course of the year.
As outlined on our business update on 12th June, production at Cowal and Mount Rawdon was impacted by weather, while seismicity impacted Red Lake, which were the main drivers to not achieving our Group gold production guidance, which flowed through to our all-in sustaining cost being slightly outside our original guidance, which we ended up achieving for the year....
Evolution Mining Limited (CAHPF) Q1 2025 Earnings Call Transcript