Evolution Mining Ltd Rise in capital expenditure

Rise in capital expenditure:Evolution Mining Ltd (ASX: EVN) had reported that revenue for the H1FY17 grew by 17% yoy to A$711.2 million while operating costs for the period were at A$667 per ounce (US$503/oz) with AISC of A$978 per ounce (US$738/oz) placing Evolution among global leaders in low cost gold production. Mining operations were cash positive with $339.4 million (H1 FY16: A$289.3 million) representing a 17% yoy improvement. During H1FY17, capital expenditure surged by 46% to $125.8 million and had a significant impact on the resulting net mine cash flow of A$213.6 million (H1 FY16: A$202.9M). Evolution has guided FY17 group gold production guidance to 800,000 – 860,000 ounces at an AISC of A$900 – A$960 per ounce. Discovery remains an integral part of Evolution’s growth strategy. Discovery expenditure for the period was A$15.6 million. The company has further committed $25.0 – A$30.0 million to invest on discovery in on key projects at Cowal, Mungari and Mt Carlton in FY17. The group has reported that Mt Carlton gold mine in North Queensland had resumed operations post the passing of Tropical Cyclone Debbie. Over the past one month, the stock has moved up by 16.7% on account of gold price movement, better results and optimistic outlook for the remaining FY17. However, the stock is trading at higher levels and costs do raise some concerns. We give an “Expensive” recommendation at the current market price of $2.45

To read the complete report CLICK HERE. To get your free report CLICK HERE 


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
Copyright © 2015 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s