Australian gold producer Evolution Mining has announced a significant decrease in its annual net profit due to unforeseen circumstances. Heavy rainfall caused the partial flooding of its Ernest Henry operation in March, resulting in the evacuation of the underground mine and a lengthy recovery process.

For the year ending in June, Evolution Mining recorded a net profit of 163.5 million Australian dollars (US$105.0 million), down from last year's figure of A$323.3 million. Directors have declared a final dividend of 2.0 Australian cents per share, compared to 3.0 cents in the previous year.

Chief Executive Lawrie Conway commented, "The FY23 results were impacted by a number of external events partially offset by higher metal prices." Earnings before interest, taxes, depreciation, and amortization also saw a decline of 6%, reaching A$844.5 million.

Evolution Mining fell short of its revised annual gold production and cost targets, attributing the shortfall to the disruption caused by the wet weather at the Ernest Henry mine. The company produced 651,155 troy ounces of gold over the 12-month period, below the estimated 660,000 ounces provided to investors in April. Copper output and all-in sustaining costs also missed their expectations.

Although Ernest Henry returned to full capacity by the end of June, the heavy rainfall cost Evolution Mining approximately A$160 million in lost revenue and an additional A$24 million in recovery costs.

Looking ahead, the company aims to increase its gold and copper production while reducing costs during the current fiscal year. Conway stated, "In FY24, planned lower capital expenditure profile, anticipated lower all-in sustaining costs, and higher production levels will see us move to stronger cash generation. This is underpinned by the move into commercial production of our recent projects at Cowal and Red Lake, and the resumption of normal operations at Ernest Henry."

Chinese Developer Country Garden Faces Downgrade

Statement from Hawaii Gov. Josh Green

Leave A Reply

Your email address will not be published. Required fields are marked *

Related posts

Berkshire Hathaway Inc. Cl B Sees Modest Decline in Stock Price
News

Berkshire Hathaway Inc. Cl B Sees Modest Decline in Stock Price

Berkshire Hathaway Inc. Cl B (BRK.B) experienced a slight dip in stock price, underperforming compared to its competitor...

The Parallels Between Rome and America
News

The Parallels Between Rome and America

Discover the parallels between the Roman Republic and America, and how they have influenced history and society.

Park Hotels & Resorts Reports Strong Q3 Results
News

Park Hotels & Resorts Reports Strong Q3 Results

Park Hotels & Resorts experiences a stock surge and reports impressive Q3 revenue and adjusted funds from operations. CE...

European Union Approves Korean Air Lines' Acquisition of Asiana Airlines
News

European Union Approves Korean Air Lines' Acquisition of Asiana Airlines

Korean Air's acquisition of Asiana Airlines is approved by the European Union, resolving competition concerns and ensuri...