02 Aug Evolution Mining head advises caution
Jake Klein, head of Evolution Mining has warned miners and investors of caution despite high commodity and strong market prices for gold.
Klein told delegates at Kalgoorlie’s Diggers and Dealers conference he believed now was the time for patience in light of this year’s revaluation of the Australian growth sector.
Two years ago, Evolution was worth approx. $550 million, and producing around 430,000 ounces of gold a year.
Having acquired two major flagship assets – the Mungari gold mining hub outside of Kalgoorlie, and the Cowal gold mine in New South Wales – the company is now worth around $4 billion, and is tipping production of 800,000 to 860,000oz this financial year.
Klein explained: “The biggest opportunity for value creation is our existing asset base. But all other options are on the table – acquisitions, divestments, M&A. But all looked at through the lens of whether it will improve the quality of our portfolio.”
“We are also determined not to fall into the trap of believing the gold price will rise forever, but are building a business that recognises the cyclicality of the commodity we produce, ” he said.