Australian gold and copper miner Evolution Mining’s Mungari operation, in Western Australia, is on the brink of completing its major plant expansion this month – ahead of schedule and 15% below the original budget.

The A$212-million expansion project, designed to lift processing capacity and improve operational flexibility, has already delivered results. During the September quarter, Mungari processed 919 000 t of ore, representing a 48% increase on the previous quarter, while achieving record operating mine cash flow of A$123-million and net mine cash flow of A$43-million.

Mungari’s strong quarter came alongside extensive commissioning work for the new mill and associated infrastructure. Openpit production increased by 25% to 704 000 t, supported by the Castle Hill openpit, which will provide a steady ore feed for the next eight to ten years. Underground mining also advanced, with access to higher-grade stopes expected to drive production growth in coming quarters. The new haul road connecting Castle Hill and the mill is scheduled to be sealed in the December quarter, ensuring reliable year-round deliveries.

Across the group, Evolution achieved a record net mine cash flow of A$366-million in the September quarter – up nearly 20% on the previous record – driven by strong contributions from Mungari, Red Lake, in Ontario, and Northparkes, in New South Wales.

Group cash flow increased the company’s cash balance to A$780-million, despite early repayment of A$170-million in debt originally scheduled for the 2027 financial year. Subsequent to quarter-end, Evolution repaid a further A$110-million, bringing total gross debt reduction since December 2024 to A$485-million. 

Group gold production for the quarter was 174 000 oz, in line with expectations, with Cowal, in New South Wales, producing 71 000 oz at an all-in sustaining cost (AISC) of A$2 314/oz and Mungari delivering 40 000 oz and AISC of A$1 982/oz. Mungari's cost performance is a 22% improvement from the previous quarter as throughput and efficiency increased.

Evolution realised an average gold price of A$5 193/oz during the quarter, up 4% from the June period, while the spot gold price surged above A$6 000/oz in early October. The higher price environment is expected to further strengthen cash flow in the December quarter, with CEO Lawrie Conway emphasising that “banking these additional revenue dollars remains a priority".

Cowal remained the largest cash generator, contributing A$134-million in net mine cash flow, while Ernest Henry, in Queensland, and Northparkes maintained solid copper and gold output and operational reliability.

"Our operations continue to safely and reliably deliver to plan and we are on track to deliver our full-year guidance," said Conway.