{"id":53264,"date":"2014-06-25T03:21:54","date_gmt":"2014-06-25T07:21:54","guid":{"rendered":"http:\/\/countingpips.com\/?p=53264"},"modified":"2014-06-25T03:21:54","modified_gmt":"2014-06-25T07:21:54","slug":"why-the-evolution-mining-share-price-fell-today-2","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-the-evolution-mining-share-price-fell-today-2\/","title":{"rendered":"Why the Evolution Mining Share Price Fell Today"},"content":{"rendered":"
June 25, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What happened to the Evolution Mining Share Price?<\/h2>\n

\nShares of Evolution Mining [ASX:EVN]<\/b> fell by 5.41% on Wednesday, closing at $0.70.\n<\/p>\n

Why did this happen to the Evolution Mining Share Price?<\/h2>\n

\nInvestors in gold stocks<\/a> have had a lot to smile about this month, with gold up roughly US$60 per ounce. Gold is trading at US$1,312 per ounce, remaining in a long term bull market (although short term bear market).<\/p>\n

Evolution shareholders have had bragging rights this year; the share price increased close to 100% since its December 2013 low.<\/p>\n

The Evolution run follows the company turning cash flow positive this year. A lack of catalysts, a rising Aussie dollar, and increasing costs have seen the stock sell off. The stock remains up over 50% since the December low.\n<\/p>\n

What now for Evolution Mining?<\/h2>\n

\nEvolution is not a cheap stock. It has significant debt, totalling over $170 million.
\nSaying this, the company pays a small dividend and the management team has a proven track record of reliability.<\/p>

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Looking at the company\u2019s cash generation capability, of concern is a rising Aussie dollar, which would tighten margins. For the December 2013 quarter, the Aussie dollar averaged US92.87 cents. At this time, all-in sustaining (total) costs averaged US$974 per ounce.<\/p>\n

With the Aussie dollar trading just under US94 cents, I\u2019d expect that the all-in sustaining costs could be closer to the US$1,000 mark. This doesn\u2019t include additional capital and exploration costs.<\/p>\n

I\u2019d suggest keeping an eye on the Aussie dollar<\/a>, because it seems to be telling the story.<\/p>\n

Of course, the gold price<\/a> is also an important indicator to watch for the stock.\n<\/p>\n

Jason Stevenson+<\/a>
\n Resources Analyst, Diggers and Drillers<\/em><\/strong><\/p>\n<\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What happened to the Evolution Mining Share Price? Shares of Evolution Mining [ASX:EVN] fell by 5.41% on Wednesday, closing at $0.70. Why did this happen to the Evolution Mining Share Price? Investors in gold stocks have had a lot to smile about this month, with gold up roughly US$60 per ounce. Gold is […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53264","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53264"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53264\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}