Evolution Mining Winning from Higher Gold Prices 

Gold prices edged slightly higher on Friday and the share price for Evolution Mining Ltd [ASX:EVN] is already reflecting that change. At time of writing, Evolution Mining shares were up 1.53% and trading at $5.98.  

Evolution Mining is an Australian gold company. With a $10 billion market cap, they have projects in both Australia and Canada.   

In Australia, they operate five mines which are fully owned Cowal in New South Wales; Cracow, Mt Carlton and Mt Rawdon in Queensland and Mungari in Western Australia. In 2020 they also took on Red Lake in Ontario, Canada. In addition, Evolution Mining has an economic interest in the Ernest Henry copper-gold operation, located in Queensland.  

So far this year, gold prices in AUD have surged by 22%.  

What’s been pushing gold prices?

While low interest rates and money printing to fight the COVID-19 pandemic have been fuelling the rally, recent tensions between the US and China on the origins and handling of the virus pandemic are also sifting into gold prices.  

The latest strain in US-China relations is coming from Hong Kong, where China is looking to impose a national security law that bans sedition in the city. The proposal has already caused immediate protests in the city, even as the COVID-19 pandemic rages on, and could increase protest and escalation in tensions between the US and China.  

The new law could go through as early as this week.  

Gold is a commodity affected by supply and demand, but it also surges in times of fear and uncertainty, and there is certainly a lot of uncertainty out there right now 

How could all this affect Evolution Mining?

With gold prices surging, the company is on a winning trend.  

 y has confirmed they haven’t seen its operations impacted by the outbreak and their FY20 gold production, excluding Red Lake, is expected to be around 725,000 ounces at an average all in sustaining cost (AISC) of $990 an ounce. Higher gold prices increase the company’s margins 

So far, Evolution Mining has seen an over 66return in the last year.  

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Selva Freigedo 


Selva Freigedo is a research analyst for The Rum Rebellion.

Born in Argentina, her passion for economic analysis started at a young age. Her father was an economist for the Argentinean governments and the family used to discuss politics and economics at the dinner table.

Argentina is a country with an unusual economic history. Growing up there gave Selva first-hand experience on different economic phenomena such as hyperinflation, devaluation and debt default.

Selva has also lived in Brazil, Spain and the USA.

Back in 2000 she was living in the US as the dot com bubble popped…
And in 2008 she was in Spain as the property market exploded and then collapsed…

She has seen first-hand what happens when bubbles burst.

Selva joined Fat Tail Investment Research’s team in 2016, as an analyst. She now writes from her vantage point in Australia, where she settled in 2015.

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