Evolution Mining Share Price Down on Mt Carlton Update (ASX:EVN)

Evolution Mining Share Price Down on Mt Carlton Update (ASX:EVN)

At time of writing, the share price of Evolution Mining Ltd [ASX:EVN] is down 1.42%, trading at $5.23.

The EVN share price pushed as low as $5.12 before midday, then edged back up towards the end of trading.

Its strong run up the charts over the last five years transformed EVN into an Aussie gold behemoth:

ASX EVN Share Price Chart 1 - Evolution Mining

Source: tradingview.com

Today’s update outlined a resource reduction at their Mt Carlton project.

Market expert Shae Russell predicts five knock-on effects of the recent market crash that could be even bigger threats to the average investor’s wealth than the crash itself.

EVN share price down on resource reduction, gold range bound

Here are the key takeaways from Evolution’s announcement today:

  • Reduction of approximately 75,000 ounces from the Mt Carlton Life of Mine Plan
  • FY20 gold production estimated to now be 60,000 ounces
  • FY21 gold production estimated to now be 50,000 ounces
  • Non-cash impairment for FY20 of between AU$75–100 million post-tax is now expected

The news came following a grade control infill program of 204 drill holes.

And where’s the gold price heading at the moment?

Nowhere fast it seems, as the gold price in AUD terms is range bound:

ASX EVN Share Price Chart 2 - Evolution Mining

Source: tradingview.com

Since 11 June, the gold price has operated in a range of 2%.

Outlook for gold price and Evolution mining

The long-term case for gold remains intact, I believe.

You can see a trend line that takes in the lows of the gold price in AUD, and we are well above that for now:

ASX EVN Share Price Chart 3 - Evolution Mining

Source: tradinview.com

Simple 20- and 50-day moving averages are included.

It’s punched below the 20-day moving average and as before, is range bound as of the last week.

Short term then, there could be some selling pressure if equities continue to pick up steam.

It seems that it would take some monumental disaster it to throw off the current rally.

The market appears to be brushing off a range of concerns varying from civil unrest in the US, a flare up of the US–China trade war and the risk of second wave of cases.

The same thinking applies to the EVN share price as a company whose margins depend on the price of gold.

If you want to learn about the range of ‘innovations’ taking place in the world of monetary policy, and get the gold bull case in exquisite detail, you can download Shae Russell’s latest report right here.


Lachlann Tierney,

For The Daily Reckoning Australia