{"id":8253,"date":"2023-06-05T11:10:38","date_gmt":"2023-06-05T01:10:38","guid":{"rendered":"https:\/\/yinghuiinternational.com\/?p=8253"},"modified":"2023-06-21T11:11:24","modified_gmt":"2023-06-21T01:11:24","slug":"the-evolution-of-ernest-henry","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2023\/06\/05\/the-evolution-of-ernest-henry\/","title":{"rendered":"The Evolution of Ernest Henry"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><img loading=\"lazy\" decoding=\"async\" height=\"50\" width=\"50\" srcset=\"https:\/\/secure.gravatar.com\/avatar\/9e3d2b44edb453bde841751b1ee7ead4?s=100&amp;d=mm&amp;r=g 2x\" src=\"https:\/\/secure.gravatar.com\/avatar\/9e3d2b44edb453bde841751b1ee7ead4?s=50&amp;d=mm&amp;r=g\" alt=\"\"><a href=\"https:\/\/www.australianresourcesandinvestment.com.au\/author\/tom-parkerprimecreative-com-au\/\">TOM PARKER<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.australianresourcesandinvestment.com.au\/wp-content\/uploads\/2023\/06\/shortcut_ernest_henry.jpeg\" alt=\"Evolution Ernest Henry\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The Ernest Henry operation. Image: Evolution<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Evolution Mining has doubled the copper and gold reserves and extended the mine life to 2040 since it&nbsp;<a href=\"https:\/\/www.australianresourcesandinvestment.com.au\/2022\/01\/06\/evolution-complete-at-ernest-henry\/\" target=\"_blank\" rel=\"noreferrer noopener\">purchased the Ernest Henry mine<\/a>&nbsp;outright in January 2022.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The completion of Ernest Henry\u2019s mine-extension pre-feasibility study (PFS) \u2013 announced on Monday \u2013 has seen the mine\u2019s ore reserve increase 126 per cent from a December 2022 estimate to 77.4 million tonnes, with contained copper increasing 103 per cent to 589,000 tonnes and contained gold jumping 124 per cent to 1.11 million ounces.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The PFS indicates the mine extension could deliver approximately 655,000 ounces of payable gold and 375,000 tonnes of payable copper, delivering an internal rate of return of 28 per cent (based on a base case of $2400 per ounce of gold and $12,000 per tonne of copper). This equates to a net-present value (NPV) of $690 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Capital costs would be $450\u2013500 million, with 60 per cent of this supporting development below the 750mRL (metres relative level). Majority of the capital would not be required until the 2026\u201327 and 2027\u201328 financial years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ever since Evolution acquired 100 per cent of Ernest Henry, the company has been aggressively exploring the project, regularly announcing resource upgrades and increases in the mine\u2019s copper potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Evolution has also announced its board has greenlit capital investment for the&nbsp;<a href=\"https:\/\/announcements.asx.com.au\/asxpdf\/20230605\/pdf\/05qbnsrvy0ltg6.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">expansion of its Mungari plant<\/a>&nbsp;in WA, with a $250 million investment to boost throughput from 2 million tonnes per annum (Mtpa) to 4.2Mtpa.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMungari has demonstrated its capacity to consistently and reliably deliver approximately 135,000 ounces per annum in recent years,\u201d Evolution managing director and chief executive officer Lawrie Conway said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis plant expansion unlocks the very large regional resource base, reduces all-in-sustaining costs (AISC) by 18 per cent to $1750 per ounce, extends the mine life out to 15 years, and grows production to over 200,000 ounces post commissioning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe expansion was always envisaged and formed part of our due diligence when we acquired the Kundana and East Kundana properties in 2021. Having successfully integrated the operations, this is now the next logical phase of making Mungari a cornerstone asset of Evolution.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Evolution has also announced a restructure of its debt profile which it said will unlock an additional $445 million of liquidity over the next three years. The restructure included a $US200 million ($303 million) US private placement (USPP) and the replacement of existing $590 million term loan facilities with a reduced four-year, $300 million loan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Subscribe to&nbsp;<\/em><a href=\"https:\/\/www.australianresourcesandinvestment.com.au\/subscribe\/\"><em>Australian Resources &amp; Investment<\/em><\/a><em>&nbsp;and receive the latest news on commodity prices, resource developments, executive movements and more.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TOM PARKER The Ernest Henry operation. Image: Evolution Evolution Mining has doubled the copper and gold reserves and extended the mine life to 2040 since it&nbsp;purchased the Ernest Henry mine&nbsp;outright in January 2022. The completion of Ernest Henry\u2019s mine-extension pre-feasibility study (PFS) \u2013 announced on Monday \u2013 has seen the mine\u2019s ore reserve increase 126 &hellip; <a href=\"https:\/\/yinghuiinternational.com\/index.php\/2023\/06\/05\/the-evolution-of-ernest-henry\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;The Evolution of Ernest Henry&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[37,206],"tags":[],"class_list":["post-8253","post","type-post","status-publish","format-standard","hentry","category-clients","category-goldcopper"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-297","jetpack-related-posts":[{"id":8383,"url":"https:\/\/yinghuiinternational.com\/index.php\/2023\/08\/19\/evolution-updates-ernest-henry-mineral-resource\/","url_meta":{"origin":8253,"position":0},"title":"Evolution updates Ernest Henry mineral resource","author":"yinghui","date":"August 19, 2023","format":false,"excerpt":"OLIVIA THOMSON Evolution Mining has released an updated mineral resource estimate for its Ernest Henry project. Ernest Henry\u00a0is located 38km north-east of Cloncurry, Queensland\u00a0and is a large-scale copper-gold operation. Its mine life was\u00a0extended\u00a0in June of this year. As of June 30, the Ernest Henry mineral resource is estimated at 101.5\u2026","rel":"","context":"In &quot;Clients&quot;","block_context":{"text":"Clients","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/clients\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/04\/Evolution-1024x447.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/04\/Evolution-1024x447.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/04\/Evolution-1024x447.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/04\/Evolution-1024x447.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":8255,"url":"https:\/\/yinghuiinternational.com\/index.php\/2023\/06\/21\/rio-tinto-to-invest-in-stronger-us-copper-supply\/","url_meta":{"origin":8253,"position":1},"title":"Rio Tinto to invest in stronger US copper supply","author":"yinghui","date":"June 21, 2023","format":false,"excerpt":"ALEXANDRA EASTWOOD Major miner Rio Tinto is looking to invest more in its Kennecott operation near Salt Lake City, Utah, in a bid to strengthen its copper supply in the US. To do so, Rio will increase production from underground mining at the site while also improving the health of\u2026","rel":"","context":"In &quot;Gold and Copper&quot;","block_context":{"text":"Gold and Copper","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/goldcopper\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8235,"url":"https:\/\/yinghuiinternational.com\/index.php\/2023\/06\/07\/glencore-sells-copper-mine-for-us1-1-billion\/","url_meta":{"origin":8253,"position":2},"title":"Glencore sells copper mine for $US1.1 billion","author":"yinghui","date":"June 7, 2023","format":false,"excerpt":"ALEXANDRA EASTWOOD Image: Glencore CSA Mine Coal miner Glencore will sell its CSA copper mine in Cobar, New South Wales, to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion). CSA is an established, high-grade producing, long-life underground copper mine with an estimated current mine life of over 15 years,\u2026","rel":"","context":"In &quot;Clients&quot;","block_context":{"text":"Clients","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/clients\/"},"img":{"alt_text":"Glencore","src":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/03\/CSA-mine-1024x684.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/03\/CSA-mine-1024x684.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/03\/CSA-mine-1024x684.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2019\/03\/CSA-mine-1024x684.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":2591,"url":"https:\/\/yinghuiinternational.com\/index.php\/2018\/01\/30\/edna-may-gold-mine-sold\/","url_meta":{"origin":8253,"position":3},"title":"Edna May gold mine sold","author":"yinghui","date":"January 30, 2018","format":false,"excerpt":"Evolution Mining posts Q4 report, gold down 14.4% January 30, 2018News\u00a0\u00a0Ewen Hosie \u00a0 Evolution Mining has posted its fourth quarter 2017 operational report, and overall gold output fell by 14.4 per cent, when compared with third quarter results, to 186,488 ounces (oz). This was largely attributable to the company\u2019s\u00a0sale of\u2026","rel":"","context":"In &quot;Mines and Quarry&quot;","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/d9lhxyivbnow1.cloudfront.net\/wp-content\/uploads\/2017\/10\/17100917\/Evolution_Site_Map-600x270.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d9lhxyivbnow1.cloudfront.net\/wp-content\/uploads\/2017\/10\/17100917\/Evolution_Site_Map-600x270.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/d9lhxyivbnow1.cloudfront.net\/wp-content\/uploads\/2017\/10\/17100917\/Evolution_Site_Map-600x270.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":8803,"url":"https:\/\/yinghuiinternational.com\/index.php\/2024\/08\/10\/evolution-gold-miner\/","url_meta":{"origin":8253,"position":4},"title":"Evolution Gold Miner","author":"yinghui","date":"August 10, 2024","format":false,"excerpt":"Gold prices will \u2018be higher in 2025\u2019: Evolution Olivia Thomson Image: Phawat\/stock.adobe.com Amid the Australian gold price\u00a0reaching\u00a0$3680 per ounce on August 5, Evolution Mining executive chair Jake Klein predicted that the price will continue to soar. \u201cSince we emerged from the fog of COVID-19 in 2022 and the associated travel\u2026","rel":"","context":"In &quot;Clients&quot;","block_context":{"text":"Clients","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/clients\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/yinghuiinternational.com\/wp-content\/uploads\/2024\/08\/evolution-gold-miner.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/yinghuiinternational.com\/wp-content\/uploads\/2024\/08\/evolution-gold-miner.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/yinghuiinternational.com\/wp-content\/uploads\/2024\/08\/evolution-gold-miner.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/yinghuiinternational.com\/wp-content\/uploads\/2024\/08\/evolution-gold-miner.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/yinghuiinternational.com\/wp-content\/uploads\/2024\/08\/evolution-gold-miner.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":8281,"url":"https:\/\/yinghuiinternational.com\/index.php\/2023\/05\/03\/a-farewell-to-oz-bhp-completes-takeover\/","url_meta":{"origin":8253,"position":5},"title":"A farewell to OZ \u2013 BHP completes takeover","author":"yinghui","date":"May 3, 2023","format":false,"excerpt":"TIMOTHY BOND BHP is now officially the parent company of OZ Minerals, with OZ set to be removed from the ASX today. \u201cThis acquisition strengthens BHP\u2019s portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles,\u2026","rel":"","context":"In &quot;Clients&quot;","block_context":{"text":"Clients","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/clients\/"},"img":{"alt_text":"bhp, oz minerals","src":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2022\/11\/shutterstock_2141361587-1024x589.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2022\/11\/shutterstock_2141361587-1024x589.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2022\/11\/shutterstock_2141361587-1024x589.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.australianmining.com.au\/wp-content\/uploads\/2022\/11\/shutterstock_2141361587-1024x589.jpg?resize=700%2C400&ssl=1 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