Gold producer Evolution Mining has sought to put the kibosh on speculation its Mungari mine near Kalgoorlie is about to hit the market.
An Evolution spokesman on Monday said the listed company had “no current plan to sell the asset” — which is the only gold mine the Sydney-based company has in the State.
The denial was in response to an east coast media report at the weekend that suggested there were suitors “interested” in the asset, including China’s Zijin Mining and “other WA gold miners”.
“We have no current plan to sell the asset,” the Evolution spokesman said.
“Our Mungari 4.2 mill expansion project is progressing well, placing it ahead of schedule and within budget. Upon completion, we expect Mungari to be a major cash contributor with annual production of up to 200,000 ounces in the first five years post expansion as part of a mine life of approximately 15 years.”
Evolution is in the process of upgrading the WA asset to double its mill capacity from 2 million tonnes per annum to 4.2mtpa under a $250 million expansion, and is due to finish the works in March 2026.
Mungari produced 123,673oz of gold in 2024 and is one of six mines Evolution runs in Australia and Canada.
The red hot gold market has helped stoke the share prices of Australian gold miners in the past 12 months.
Evolution stock is up more than 33 per cent since this time last year, to $5 with a nearly $10 billion market capitalisation.
Gold prices in US dollar terms are up more than 30 per cent for the year.
With the commodity running hot, Evolution’s chief executive Jake Klein suggested at a WA Mining Club lunch in October that there was “a time for doing deals and a time for making money . . . and this is a time for making money”.
https://thewest.com.au/business/gold/no-current-plan-to-sell-evolution-mining-says-no-deal-afoot-for-kalgoorlie-mungari-mine–c-16868949
