What are the latest operational and financial results at Red Lake and across Evolution Mining?

At Red Lake, FY25 was the year we proved the asset can be consistent, reliable, safe, and cash generative. Production rose about 13%. We generated approximately C$66 million of free cash flow for the year and reduced AISC below C$2,500/oz. We produced just under 128,000 oz, and, importantly, we achieved record annual ore tonnes mined and processed, surpassing 1 million t/y through the Red Lake and Campbell mills for the first time in the site’s history. Those results helped the group deliver to guidance, achieve record profits and record cash flows, and increase the dividend payout in FY25.

How has the higher gold price shaped your priorities?

We continue to prioritize margin over ounces, so we do not set a production target. At Red Lake, delivering 30,000 to 40,000 oz/quarter safely and profitably is the focus. Inflation pressure is lower than two to three years ago, which helps, but we remain disciplined on cost even as prices rise. 

What specific steps are you taking to lower Red Lake’s AISC further in FY26?

Over the last 12-18 months, we have strengthened the site team, embedded reliability, and added contingency into plans so that we can maintain volumes. For FY26, we expect a production profile similar to FY25 with a marginally lower AISC as we continue to get the best out of the asset.

How are you managing seismic risk and other geotechnical hazards?

Geotechnical engineers have a major say in where and how we mine. Before entering any area, we assess expected conditions and determine ground support requirements. If conditions dictate, we will exit an area early. We plan for that possibility by maintaining contingency and resilience in the schedule so that if we encounter seismicity, we have alternative stopes to move to. 

How are you strengthening workforce stability, local hiring, and alignment at Red Lake?

We established a consistent roster, a consistent organizational structure, and a harmonized remuneration framework across the operation. With better operating consistency in H2 FY24 and throughout FY25, our quarterly performance bonus scheme began to pay out. The entire workforce received a bonus every quarter last year, and in Q1 FY25, they received their highest ever. Turnover is low, approximately 80–85% of the workforce is local and long-term in the area, and engagement scores show people feel connected and listened to.

Why are you expanding tailings capacity at Red Lake, and what is the opportunity in reprocessing historical tailings?

After five years of ownership, we now operate the Red Lake and Campbell mills continuously. We are investing this year to consolidate into the Red Lake tailings facility to support an extended operation that will last for the next 15 - 20 years. In parallel, we are studying the reprocessing of historical tailings. With 75 years of operation, multiple facilities contain material that includes ounces-per-ton grades. The technical team is excited about the value potential. Consolidating into one active facility and closing others enables us to evaluate those reprocessing options responsibly.

What is your outlook for Ontario as a jurisdiction, and what should we expect from Red Lake and the broader Evolution Mining portfolio over the next year?

We will continue to engage closely with local stakeholders and First Nations partners. The government has made strong commitments to streamline permitting and approvals, and we ask that those commitments be delivered. 

At Red Lake this year, we expect a profile like last year, with slightly lower costs, a higher gold price, and strong cash flow following a record Q1. We are advancing tailings reprocessing studies and opportunities to extend mine life. 

Across the group, every asset has growth or life-extension potential: at Cowal we approved a A$430 million project that adds 10 years of open-pit mining and takes mine life to 2042; at Ernest Henry we are pursuing cave extension and a second orebody to increase production; at Northparkes we are advancing extraction options across a 600-million t resource that underpins 75 years of life; and at Mungari we completed a plant expansion that doubles processing capacity, lifts production by about 50%, and reduces AISC by about 16–17% for the first five years post expansion.