Gold miner Evolution Mining has lifted its full year production guidance after strong output from recently acquired mines took production to record levels.
Australia's second largest gold miner now expects to produce between 770,000 and 820,000 ounces of gold in 2015/16, up at least 5 per cent from its previous guidance of 730,000 to 810,000 ounces.
The miner also expects all-in costs to be slightly lower at between $970 to $1,020 per ounce, down from its previous $990 to $1060 forecast range.
Evolution shares rose on the news despite a weak market. The stock gained 4.5 cents, or 3.04 per cent, to $1.525.
The miner said production in the December quarter hit 203,700 ounces, a 17 per cent jump on the prior quarter, thanks to a full quarter of production from its Cowal mine in NSW and Mungari mine in Western Australia. It generated cash flow of $97.8 million for the quarter.
Evolution snared the Mungari gold mine and processing plant in April 2015 through a deal with La Mancha Resources, and followed it up with a $US550 million deal to acquire the Cowal mine from Barrick Gold.
"We are making very healthy cash margins on all our assets," chairman Jake Klein told analysts.
"I see the trend continuing given our strong cash generation and the falling Australian dollar."
The company expects to use its cash to continue to focus on reducing its debt levels.
The miner is likely to benefit further from a takeover of smaller rival Phoenix Gold, whose mines near Kalgoorlie will feed Evolution's Mungari processing plant.
Evolution has already acquired more than 95 per cent of Phoenix's shares, and is now proceeding with compulsory acquisition of the balance.
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