Investors in ASX listed gold miners have had very little to get excited about over the last 12 months and the latest June quarterly production updates are another reminder of just how tough conditions are.
While some companies including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) shone bright with higher production, others struggled to grow production at all.
EVOLUTION FPO (ASX: EVN) made a strong effort over the quarter and unhindered operations helped the company to reach its full year production target of 400,000 – 450,000 ounces (oz), producing exactly 427,703 oz for FY14.
All of Evolution's mines are expected to be cash flow positive at a gold price of $1,400 per oz in FY15 and the company is forecasting production of up to 440,000 oz.
| Company | Gold Production Mar Quarter 2013 (oz) | Gold Production Jun Quarter 2014 (oz) | Change (%) |
| Evolution Mining Limited (EVN) | 101,408 | 111,899 | 10% |
| Silver Lake Resources Limited (SLR) | 49,289 | 44,523 | -10% |
| Beadell Resources Limited (BDR) | 32,507 | 28,089 | -14% |
Source: company releases
Not all gold miners had as much success. Silver Lake Resources Limited (ASX: SLR) saw production fall as mining activities stopped at the company's Murchison Gold Operations which has been placed into care and maintenance.
The fall in production caps off a brutal year for Silver Lake which has had its share price slashed 32%. The June quarter was especially tough for the company's All-In Sustaining Costs (AISCs) which came in at $1,397 per ounce, just $38 clear of Silver Lake's realised gold price for the quarter of $1,435; a margin of just 2.7%.
Another gold miner to drop production was Beadell Resources Ltd (ASX: BDR). Gold production was down 14% on the March quarter as Beadell was impacted by higher than average rainfalls which hampered operations.
It also forced up production costs, with AISCs of $1,273 (US$1,190) per oz again just ahead of the company's average realised gold price of $1,390 (US$1,295).
However despite the jump in costs Beadell is still likely to be one of the lowest cost gold producers around. The company is halfway through its financial year, but is forecasting full-year AISCs of between $864 – $918 (US$805 – US$855) per oz.
