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Evolution considers sale of Cracow gold mine

The Cracow gold mine. Image: Evolution Mining.

Evolution Mining has confirmed media speculation that it is evaluating the divestment of the Cracow gold mine in Queensland.

The Cracow mine is an underground gold operation which started operating in 2004, with a mine life that is estimated to go until 2023.

Evolution produced 80,983 ounces of gold at Cracow in the 2019 financial year, meeting its 80,000 to 85,000-ounce guidance range, at an all-in sustaining cost of $1272 per ounce.

The gold producer reinstated its strategy of improving the quality of its assets over time, including the continuous evaluation of both acquisition and divestment opportunities.

“Evolution has consistently stated that a key objective of its business strategy is to improve the quality of its asset portfolio,” Evolution stated in an ASX announcement.

“This includes evaluating a wide range of acquisition and divestment opportunities Evolution believes are in the best interests of shareholders.

“A sale of Cracow would be consistent with this strategy. No agreement has been entered into at this stage regarding the divestment of the asset.”

While Evolution has not formed an agreement yet, the company will make further announcements should any decisions be made, in accordance with its continuous disclosure obligations.

Evolution is aiming to hit a production guidance of 82,500 to 87,500 ounces at an all-in sustaining cost of between $1200 and $1250 per ounce at the Cracow mine this financial year.

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