Why Evolution Mining’s Share Price Has Been Rising over the Last Year

Gold prices have been rising significantly, amid growing global uncertainty pushing investors to look for ‘safer’ investment options.

It’s little surprise that gold miners like Evolution Mining Ltd [ASX:EVN] have been enjoying this instability over the last year. The last month in particular saw Evolution Mining’s share price rise from 11 June to 9 July $3.85 to $4.42 respectively…a 14.8% increase.

At  time of writing, shares of EVN are trading at $4.32, a slight fall of 2.38%.

Related: Discover the three major catalyst for gold prices and what effect they could have in 2019.

Record gold prices to thrust Evolution Mining to net cash position

Today, Evolution Mining announced its preliminary 2019 financial year operating results, as well as next year’s guidance.

Gold production between the June 2019 quarter, sat around 194,886 ounces, with an All-in Sustaining Cost (ASIC) of $915 per ounce.

Additionally, the company says cash generation of $109.4 million has thrust Evolution to a net cash position of $35.2 million as of 30 June.

Evolution’s Executive Chairman, Jake Klein commented on the results:

The outstanding cash generation of our business reflects the quality of our portfolio, moving us to a net cash position at the end of the year. This cash generating capacity of the business is expected to continue in FY20.

Notwithstanding this, we are disappointed we did not deliver to our cost guidance in FY19. We are determined to remain focused on margin and operating efficiencies which is reflected in our guidance for FY20.

This will ensure we maintain our position as one of the lowest cost gold producers in the world and continue to generate superior returns for our shareholders.

Evolution Mining’s share price outlook

When looking at the value or potential value of a company, it’s best to carry out your own research.

However, a good place to start is to look at how the company’s share price has performed.

In the case of Evolution Mining, its share price has been gradually climbing over the past five years.

Many see gold as a ‘safe haven’ to store wealth during volatile and uncertain times. As such, we’ve seen the price of gold spike in volatile times, and then settle back down. This is the very nature of bull markets, as you’ll see prices soar and over extend amid investor excitement.

But as we’ve seen, nothing is for certain. It’s up to you to choose the best avenue in the gold market, should you consider it. Whether that be in gold stocks or physical gold, never invest more than you’re prepared to lose.

More to come.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: In a brand-new Money Morning report titled ‘Three Reasons to Add Gold to Your Portfolio’, Greg reveals three reasons gold could be a valuable addition to your portfolio. Read more about it here for free.


Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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