EVN +9.55%: reported a mixed but positive March-quarter operational update – while gold and copper production both fell, the company remains on track to deliver FY26 targets, expecting cash flow to strengthen into the June quarter after cutting FY26 cost guidance.
Third-Quarter Result:
- Gold production: 170,137oz, -11% q/q
- All-in sustaining costs: $2,220/oz
- Net Mine Cash Flow: $486 million
- Copper production: 10,768 tonnes -40% q/q
Production declined across the group during the quarter, though Cowal remained the key contributor with ~70koz produced. Ernest Henry was impacted earlier in the period but returned to normal production by quarter end, while Red Lake and Mungari delivered steady output.
Of critical importance, and on every investor’s mind at present, is the impact of the global fuel crisis – management said it’s closely monitoring the global fuel supply situation, though no material operational disruptions have been experienced to date. The company is on track to meet FY26 production targets and now expects to deliver those ounces at lower than the original cost guidance, a positive given current cost pressures across the sector. At spot gold prices the company is forecasting roughly $3.6bn of operating mine cash flow in FY26.
The update was a little lighter on production, but the cost outlook and strong cash flow profile remain supportive in the current gold price environment.
MM remains long and bullish EVN
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