Shares in Evolution Mining dropped nearly 21% to post their biggest drop in about 18 months on Wednesday, after the miner's second-quarter gold production missed analyst expectations.
The stock fell as much as 20.8% to A$2.970, heading for its worst day since June 27, 2022. It hit its lowest level since March 30, 2023 to become the top loser in the benchmark index.
The company produced 161 100 oz of gold in the December quarter, about 2% higher than 158 300 oz gold produced in the September quarter, it said in a statement.
However, gold production for the quarter was 9% below Jefferies forecast and missed consensus estimates by 13%.
Production was impacted by operational constraints at the company's Red Lake project in Canada, with gold production reduced by about 13 000 oz during the quarter.
Brad Smoling, MD at Smoling Stockbroking, said that the production results were not overly concerning.
"I do see the production improving later this year."
The company maintained its group gold production guidance of 789 000 oz for fiscal 2024, in line with analysts' consensus expectations.
"EVN has geared up quite aggressively in 2023. However, I believe this will be a very positive strategy, with the continuation of the rally in the gold price in 2024," Smoling said.
