How has ASX 200 gold share Evolution Mining managed to surge 89% in 6 months?

Gold shares like Evolution Mining are on a roll.

| More on:
rising gold share price represented by a green arrow on piles of gold block

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Evolution Mining shares have been soaring ahead recently
  • Gold explorers Newcrest and Northern Star have also been storming ahead 
  • The gold price has risen more than 20% in the last six months 

ASX 200 gold stock Evolution Mining Ltd (ASX: EVN) has been charging ahead in the last six months.

The company's share price has soared 89% from $1.85 at market close on 20 October to $3.49 at market close on 20 April. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has risen 20% in the same time.

Let's take a look at what is going on with the Evolution Mining share price.

Has the gold price helped?

Evolution Mining is a gold explorer with mines in New South Wales, Western Australia Queensland and Canada.

ASX 200 gold stocks Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have also risen in the last six months.

Northern Star shares have soared 72.5% since market close on 20 October, while Newcrest Mining shares have surged 73%.

Amid wider market turmoil, the gold price has also had a stellar run in the past six months.

The spot gold price has risen 23% from US$1636.8 an ounce on 20 October to US$2,009 an ounce at the time of writing, according to CNBC.

Copper has also jumped nearly 24% in the same time frame, trading economics data shows.

This lift in the gold price could be giving ASX 200 mining shares including Evolution a boost.

Evolution achieved a 3% lift in the average achieved gold price from US$2,551 an ounce to US$2,639 an ounce in the third quarter of FY23. The company sold 165,758 ounces of gold, up 2.4% on the previous quarter.

The company's realised copper price rose 15%, however, copper sales fell 30.9% during the quarter.

In other news, Evolution on Thursday reported drilling continues to extend mineralisation at the company's Ernest Henry project in Queensland. The results are expected to "drive further growth" of the mineral resource at the project.

Mining activities at the Ernest Henry operation resumed in April following weather impact during the March quarter.

Commenting on these results, Evolution CEO Lawrie Conway said:

We continue to see encouraging drill results from the exploration drill program at Ernest Henry, highlighting the exciting potential for growth at this world class operation.

On 12 January, Evolution advised it had satisfied an earn-in milestone to earn a 75% interest in the Cue Project joint venture with Musgrave Minerals Ltd (ASX: MGV).

Evolution Mining share price snapshot

The Evolution Mining share price has slid 23% in the last year.

This ASX 200 gold share has a market capitalisation of about $6.4 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Gold nugget with a red arrow going down.
Gold

ASX 200 gold shares dive on US election result

Gold shares are going wild this Thursday.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

2 of the best ASX gold stocks you could buy now

Bell Potter is bullish on these gold stocks. Let's find out why.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Gold

Why is this ASX gold share crashing 22% today?

Let's find out why this gold miner is down in the dumps on Tuesday.

Read more »

Gold bars with a share price chart in the background.
Gold

Why ASX 200 gold stocks look 'undervalued' heading into 2025

The ASX Gold Index is up 37% in a year, but gold stocks are still looking undervalued.

Read more »

A mining executive from Red Dirt Metals chats on her mobile phone looking pleased with a mining site and mining truck in the background
Gold

Which soaring ASX gold share now has $200 million more financial firepower?

Funds will be used to expand operations.

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Gold

Hitting new record highs again today, should I buy gold as an investment?

Investors who bought gold a year ago have realised gains of more than 39%.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Gold

2 ASX 200 gold stocks making big news today

The ASX 200 gold miners released some important updates today.

Read more »

Gold bars on top of gold coins.
Gold

Is the ASX gold rush expected to keep enriching investors?

Are the golden days behind us for precious metals miners?

Read more »