Ernest Henry delivers for Evolution Mining

The article below is from Industry Queensland about Ernest Henry delivering for Evolution Mining. (Reprinted courtesy IQ Industry News)

 

Ernest Henry delivers for Evolution Mining

Ernest Henry is on track to deliver more than $400 million of mine cash flow for new owners Evolution Mining this financial year.

Evolution Mining took 100 per cent ownership of the Cloncurry copper-gold site from Glencore in January in a $1 billion deal after previously holding a significant stake in the operation’s output.

In a business update today, Evolution said the integration of the asset had progressed well.

The company expects results in December from the Ernest Henry Extension Pre-Feasibility Study, informed by about 42km worth of drilling carried out since May last year.

In a positive sign for that study, Evolution has outlined $65 million to $80 million in sustaining capital to be spent at Ernest Henry for the 2023 financial year. The company has plans for fleet replacement at the site given the positive outlook on mine life extension.

A further $35 million to $45 million is panned in major capital spending.

Evolution expects to see gold production of about 82,000oz out of Ernest Henry in FY23 and FY24 and copper production of about 55,000t (FY23) and 50,000t (FY24).

In addition to Ernest Henry, Evolution operates the Cowal mine in New South Wales, Mount Rawdon in southern Queensland, Mungari in Western Australia, and Red Lake in Ontario, Canada.

Group production for FY23 is guided to increase about 12 per cent to 720,000 ounces and the outlook for FY24 is expected to increase a further 11 per cent to 800,000 ounces.

Evolution said the production levels were lower than previously planned primarily due to the Red Lake transformation being achieved a year later than expected.

The FY23 AISC guidance and FY24 AISC outlook is expected to be in line with the current year at approximately $1240 per ounce, give or take 5 per cent.

Evolution said the costs were higher than previously outlined due to industry-wide cost pressures and the lower production at Red Lake. However, this level continued to place Evolution as one of the lowest cost global gold producers.

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