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
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.