The Evolution Mining Ltd (ASX: EVN) share price is shooting higher on Monday.
At the time of writing, the gold miner's shares are fetching for $3.98 a pop, up 8.45%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is edging 0.31% higher to 7,239.9 points.
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What's driving Evolution Mining shares higher?
With Russia massing its forces around Ukraine for a potential regime change, investors have fled to safe haven assets.
The price of gold has surged toward US$1,860 an ounce, an increase of almost 3% in the past week alone.
This is driving the Evolution Mining share price higher as elevated gold prices translate to bumper profits for the company.
At its most recent report released late last month, Evolution Mining recorded 318,766 ounces of gold produced for 2022. All-in sustaining costs (ASIC) came to A$1,381 (US$985) per ounce.
This means at the current gold price of US$1,860, Evolution is making around US$875 profit for every ounce sold. It's worth noting that this does not include the capital and discovery expenditure used on developing and bringing the assets online.
Furthermore, the company advised that it is on track to deliver its FY22 group guidance given the solid performance above. As such, management is forecasting 670,000 to 725,000 ounces at a sector leading AISC of A$1,135 to A$1,195 per ounce.
Evolution Mining is scheduled to release its half-year results for the 2022 financial year this Wednesday 16 February.
Evolution Mining share price summary
Evolution Mining is an Australian mining and exploration company that owns and operates five mines, mostly based in Australia. They include Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon and Ernest Henry in Queensland, and Red Lake in Ontario, Canada.
Over the past 12 months, the Evolution Mining share price has lost more than 13% in value. A deterioration in commodity prices throughout the latter part of 2021 caused investors to run for the hills.
On valuation metrics, Evolution Mining commands a market capitalisation of around $7.29 billion, with approximately 1.83 billion shares outstanding.
