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The Mining Evolution Ltd. (ASX: EVN) The share price was crushed in 2021. Shares of the Australian gold miner fell 6.4% on Tuesday and are now down 36.6% year-to-date .

Yesterday’s crisis saw Evolution hit a new low of 52 weeks. The company now has a market cap of $ 6.1 billion, but things have been tough for shareholders.

So what’s driving down the valuation of the Australian miner right now?

Why Evolution Mining’s share price crashes to 52-week low

There was no price-senNews from the Australian miner since he announced the finalization of his share purchase plan on August 26.

However, as an ASX resource share, the underlying commodity prices can often tell a story.

Evolution is targeting 700,000-760,000 ounces of gold production in fiscal 2022 after posting underlying earnings of $ 354.3 million the previous fiscal year. Naturally, global gold prices will have an important role to play in the group’s revenue in fiscal year 2022.

At the moment, things are not looking so good. Gold prices slipped more than 1% overnight to a nearly 6-month low as US yields rose higher.

Gold has historically been viewed as a safe haven and a good hedge against inflation. Raising interest rates is one of the tools used by central banks to curb spending and reduce inflation. This means that fears of higher interest rates usually spell bad news for gold prices.

It also brought bad news for the Evolution Mining share price. Australian gold mine stocks remain under pressure as investors monitor monetary policy and yields around the world.

A rate hike earlier than expected by the US Federal Open Market Committee (FOMC) could see Evolution’s valuation drop even lower. However, nothing is certain in the markets, especially in the current climate.

This means that investors will be watching the Evolution Mining share price closely given its current levels.


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