The Evolution Mining Ltd (ASX: EVN) share price is rising after it announced it has been granted mine approval in NSW.
Evolution Mining is a gold miner that owns and operates four mines across Australia and one mine in Ontario, Canada. It also holds a stake in the Ernest Henry copper-gold mine in Queensland.
Progress on NSW underground mine
The company announced that its Cowal Gold Operation (Cowal) has been granted regulatory approval from the NSW government to develop the underground mine.
Cowal is located near West Wyalong in NSW. The granted approval means the permitted mine life has been extended to 2040.
Evolution mining said that the underground mine is a key contributor to its goal of safely and reliably producing more than 350,000 ounces of gold each year from Cowal. In addition with a new higher grade underground ore source to blend with ore from the E42 open pit.
The company expects that the investment of $380 million into the underground mine will create economic benefits for the region and generate around 160 new jobs during the peak construction phase. Around 230 new long term jobs will be created when the mine is in full operation.
It said that a number of milestones have been achieved with the project. It is currently on schedule and on budget.
Management acknowledged and thanked the NSW councils, community and traditional custodians of the land for their support of the project.
Evolution Mining Executive Chairman Jake Klein said:
“The approval of this new underground mine at Cowal is a significant milestone for this world class operation. We have a bright future at Cowal with permitted mine life extended to 2040, and further job security for our local employees ad contractors.”
Summary thoughts on the Evolution Mining share price
A gold miner is an interesting potential investment. Some investors like to use gold miners as a hedge against asset falls, often sending the prices of gold and gold miners higher when share markets and other assets fall. Time will tell if gold miners continue to be a hedge against volatility.
Specifically on the Evolution Share price, it’s up over 2.5% on the back of this news. However, it is down over 10% in the last month.
Evolution Mining is one of my preferred ideas in this particular sector, with all of its mines in the stable countries of Australia and Canada. It also has a history of paying a pretty good dividend.
So as an alternative idea, Evolution Mining could be one of the ASX dividend shares I would consider. Although it’s not near the top of my income watch list.
I don’t personally use gold or gold miners as a hedge. Instead I look for quality ASX ideas and make sure my valuation techniques are up to scratch, so that my share portfolio is full of investments I believe in throughout every point in the economic cycle.
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