Evolution Mining has approved nearly $800 million in capital investments across key projects, aiming to boost production and returns significantly. The company also expands its exploration footprint in Canada, signaling a robust growth strategy.
- Approval of $545M E22 block cave development at Northparkes
- Northparkes Coarse Particle Flotation Project funded with ~$75M
- $14M Northparkes Expansion Study to increase mill capacity
- $160M investment in Ernest Henry’s Bert deposit development
- Agreements secured for Two Times Fred and Clisbako exploration projects in British Columbia
Strategic Growth Investments Approved
Evolution Mining Limited has announced a significant capital deployment plan, with its Board approving a suite of growth projects designed to enhance production capacity and deliver superior returns. Central to this strategy is the $545 million investment in the E22 block cave at Northparkes, a long-life, low-cost underground mining operation expected to generate an internal rate of return (IRR) of 28% under base metal prices, rising to 38% if prices improve.
Complementing this is the Northparkes Coarse Particle Flotation Project, earmarked for approximately $75 million in capital expenditure. This initiative aims to improve copper recovery rates by around 2% and increase throughput capacity to 8 million tonnes per annum without sacrificing recovery efficiency, with commissioning targeted for the second half of fiscal 2028.
Expanding Capacity and Unlocking Value
Further investment includes a $14 million Northparkes Expansion Study, which will explore increasing mill capacity to 10 million tonnes per annum or more. This study, expected to conclude by fiscal 2027, reflects Evolution’s ambition to scale operations efficiently while maintaining flexibility. The study encompasses pre-feasibility and concept evaluations across multiple deposits, indicating a methodical approach to long-term growth.
At Ernest Henry, the Board has approved a $160 million development of the Bert deposit. This project leverages existing mill capacity and is projected to deliver an IRR of 23% at base case metal prices, surging to 48% at upside prices. The Bert deposit will add incremental feed to the processing plant over an estimated seven-year mine life, enhancing operational flexibility without materially increasing site footprint or risk.
Exploration Footprint Broadens in Canada
In a strategic move to diversify and extend its resource base, Evolution has secured agreements to acquire the Two Times Fred and Clisbako exploration projects in British Columbia, Canada. Both projects cover substantial ground in a region known for hosting large, long-life gold and copper mines. These drill-ready prospects are slated for exploration drilling in the first half of fiscal 2027, underscoring Evolution’s commitment to growth through exploration in world-class terranes.
Managing Director Lawrie Conway emphasised the disciplined capital allocation underpinning these decisions, highlighting expected returns well above the company’s current portfolio average of 18%. He noted that the company’s flexible balance sheet and recent record half-year financial results position Evolution well to sustain higher returns and deliver ongoing shareholder value.
Bottom Line?
With robust project approvals and strategic exploration moves, Evolution Mining is poised for a new growth phase that could reshape its production and value profile.
Questions in the middle?
- How will metal price fluctuations impact the projected returns of these projects?
- What are the timelines and key milestones for the Northparkes Expansion Study and Canadian exploration drilling?
- How will the integration of new projects affect Evolution’s overall production costs and sustainability targets?