Australia-based Evolution Mining’s (ASX: EVN) Red Lake mine in Ontario, acquired in 2020, has shown signs of recovery after a difficult period, managing director and CEO Lawrie Conway said in an interview.
At Red Lake, Evolution faced challenges in achieving consistent and reliable production over the past few years, but recent improvements have set the stage for a more stable output and lower costs moving forward. The company guides to grow its overall gold output 4% in the coming 12 months to about 745,000 oz. gold, with Red Lake contributing 125,000-145,000 oz. at costs likely to drop by 10% year on year.
“Red Lake is starting to show some really positive signs of being resilient, sustainable and generating positive cash flow for us,” Conway said during the Americas Gold Forum last month in Colorado Springs. “It does have a pretty critical role to play for us in the portfolio.”
Despite this progress, the company’s Australian assets will do the heavy lifting, the CEO said. Its Cowal mine’s new underground operations will add US$250-US$350 million in free cash flow annually over the next five years, he projected. The Ernest Henry mine, with a feasibility study likely to extend its life to 2040, is expected to generate $300-$400 million in free cash flow each year.
Watch the full interview below with The Northern Miner’s western editor, Henry Lazenby.
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