Evolution Mining Limited (ASX:EVN) announced to the ASX on Wednesday that it had reduced its debt by 28 per cent with a $35m payment. The announcement also underlined the company’s remaining $91.8m corporate credit facility. Evolution Mining’s cash balance at the end of March was $32.5m after making the debt repayment. The company’s post-DRP cash dividend payment to its shareholders came in at $5.6m and its one-off debt refinance establishment fee was $1.2m. Jake Klein, the company’s executive chairman, said the financial standing of the company was in an ideal position. “This is an outstanding result with almost $27.0 million dollars of free cash flow generated during the quarter – by far our best quarter to date,” Mr. Klein said.
The gold mining company also stated that its gold production was in line with guidance for the quarter. At the end of Q1 2015 Evolution produced 103,305 ounces of gold, which was in line with its “approximately 100,000 ounces” projection. The company operates and owns five mines in Cracow, Mt Carlton, Mt Rawdon and Pajingo in Queensland and Edna May in Western Australia. Mr. Klein said that although gold prices have been falling, it is still well above the company’s All-In Sustaining Cost of A$1,083/oz. “This has been achieved despite group gold production being approximately 9 per cent lower than the previous quarter and is a great reflection of the successful inroads our staff continue to make in reducing costs and improving operational efficiency. With gold now trading close to A$1,600 an ounce we are optimistic about our future.”
Shares of Evolution Mining are up 1c, or 1.11 per cent, at 91.5c per share around 12:30pm on Wednesday. Although the one-year return for EVN is at a relatively flat gain of .55 per cent, the share price has advanced 41.09 per cent so far this year.