Evolution Mining has provided an update on the Ernest Henry operation, stating that it is on track to resume mining activities within six weeks following the weather event of 8 March 2023.
The update outlined key activities such as:
- Significant progress in removal of water from the mine with successful restart of the main pump station on the 1,325 level
- Restart of the concentrator with processing of lower grade stockpile material as well as toll treating of third-party material
- Remediation of the main area of water ingress completed
The cash balance at the end of March 2023 was approximately $164 million, after payment of the $200 million deferred settlement amount to Glencore and the $45 million debt repayment in the March 2023 quarter.
The $525 million revolver facility remains undrawn and there are no restrictions preventing Evolution from drawing down on the revolver facility. This confirms the strength of the balance sheet and the transition of the business to net cash generation following a recent period of intensive capital investment in growth projects.
The full impact on the Group FY23 Guidance will be provided in conjunction with the March 2023 quarter results to be released on 20 April 2023.
This will take into consideration the progress of the recovery at Ernest Henry.
Evolution’s Chief Executive Officer and Managing Director, Lawrie Conway, said the safe resumption of mine production at Ernest Henry remains the priority for Evolution.
“The team has made excellent progress in managing the many challenges caused by the extreme weather event and to be on track to resume mining activities within the original time frame is a credit to everyone involved,” Mr Conway said.
“The closing cash balance demonstrates the strength of the balance sheet and the transition of the business to net cash generation with around $96 million generated in the March 2023 Quarter. Additionally, this has been achieved at a gold price materially lower than the current spot gold price.”
