The following is a summary of the Evolution Mining Limited (CAHPF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Evolution Mining saw a significant increase in net mine cash flow, up by 136% to $203 million.

• Their underlying EBITDA increased by 28% to $573 million, and they managed to reduce their gearing to 29%.

• For FY '24, they expect to produce 789,000 ounces of gold and 62,500 tonnes of copper at a cost of $1,340 per ounce.

• The company is transitioning to positive cash flow with plans to increase this and continue to alleviate debts in the second half of the year.

• There were increases in underlying profit after tax by 54% driven by an increase in EBITDA.

• The company's gearing decreased from 32.8% at the year's end to 29.7%, and they declared a fully franked dividend of $0.02 per share.

• Group cash flow before debt, M&A, and dividends switched from an outflow of $95 million in Q4 FY '23 to a generation of $79 million in Q2 FY '24.

• Available liquidity stands at $716 million with a fully repaid revolving credit facility, thereby providing financial flexibility.

• 95% of the company's production is unhedged for the next 2.5 years.

Business Progress:

• They remain on track to meet FY '24 production and cost guidance.

• Major shutdowns planned at Cowal and Ernest Henry will help to ramp up Cowal underground to reach commercial production by the end of the quarter.

• There is a shift in focus at the Red Lake mine towards margin and productivity rather than raw output.

• The acquisition and integration of Northparkes is progressing well and has significantly contributed to the growth in gold and copper resources and reserves.

• The company plans to rerun the mineral resource at Northparkes to include the ore reserve in the next 6 months.

• The completion of a feasibility study for an extension at Northparkes (E22) is set for the June quarter.

• Throughout FY '24, the company expects its production to increase, driven by the Cowal ramp-up and increases in Red Lake production.

• Continual review of portfolio and focus on capital allocation for necessary projects.

More details: EVOLUTION MINING LTD IR

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