Finder makes money from featured partners, but editorial opinions are our own.

Is the Evolution (EVN) share price losing its shine?


Even before today's slide, shares in the gold miner had lost more than 10% value in the last month alone.

Gold mining giant Evolution Mining (ASX: EVN) is among the worst performing shares on the ASX on Monday, sliding more than 20% in early trade to a 52-week low of $2.68.

By comparison, shares in rivals such as Newcrest (ASX: NCM), Regis Resources (ASX: RRL) and Northern Star Resources (ASX: NST) were down a relatively more modest 4–5%.

Why is the EVN stock price sliding?

Part of the decline is because ASX-listed gold stocks have been under pressure in recent weeks due to the sharp volatility in gold prices that has seen the precious metal see-saw between US$1,900 and US$1,800 an ounce over the last 6 weeks.

Widespread concerns of an impending global recession because of sharply rising interest rates is feeding into this volatility.

Last week, the ASX gold stocks sub index skidded nearly 11% for its worst week in nearly 6 months as the uncertainty kept investors away from the safe haven asset.

Coupled with falling gold prices was Monday's earnings update by Evolution Mining for its FY22 guidance and also outlook for FY23 and FY24.

Evolution now expects full year production to be lower at 640,000 ounces, despite its June quarter output likely to be 15% higher than in the preceding 3 months.

Evolution produced 680,788 ounces of gold in FY21 at an all-in sustaining cost (AISC) of AUD$1,215 per ounce to be among the lowest-cost gold producers in the world.

It had forecast an even lower range of AUD$1,135 – AUD$1,195 per ounce for FY22, but now expects this to jump to $1,250 per ounce.

Longer term outlook

The company said the final reported AISC for FY22 will largely depend on the closing copper price for June, which it uses to revalue "unsettled concentrate shipments" from its key Ernest Henry mine in Queensland.

For the current year, sustaining costs and major capital expenditure are both expected to be at the lower end of their guidance ranges of $150 million–$175 million and $440 million–$505 million, respectively.

Meanwhile, group production for FY23 is now expected to increase 12% from the current year to 720,000 ounces, while the outlook for FY24 is expected to increase a further 11% to 800,000 ounces.

Evolution executive chairman Jake Klein admitted these production levels were lower than previous estimates, primarily due to the restoration of its Red Lake mine in Canada being achieved a year later than planned.

But he also sought to reassure shareholders.

"Aligned with our strategy, during this period of increasing costs and a challenging labour market, all planned expenditure will be thoroughly assessed and gated with a focus on ensuring we continue to prioritise margins over volume and earn an appropriate return on capital," he said in a statement to the ASX.

Considering buying EVN shares?

If you are keen to buy shares in Evolution Mining or other gold producers, you should consider investing through an online share trading platform.

Keep in mind that not all platforms offer the same list of stocks. Some offer US stocks only, so make sure to select a platform that offers ASX-listed stocks.

Choose from the dozens available for Australian investors. Compare the features and fees from the plethora of trading platforms available.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

Get more from Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site