Output at the Western Australian operation jumped 30.5% quarter-on-quarter to 25,925 ounces of gold due to higher head grades and improved plant reliability.

The average head grade jumped to 1.32 grams per tonne gold from 1.11gpt gold, while recovery improved to 93% from 90.7% in the June quarter.

The output jump came despite a seven-day planned shutdown.

Cash costs dropped 24% to $A752 an ounce and well below the full-year cost guidance of $840-890/oz.

Evolution executive chairman Jake Klein said terrific progress was made at Edna May, but he wanted to notch up a few solid quarters of production to ensure the increase was sustainable.

“We’re a little reticent to declare victory just yet,” he told investors in a teleconference this morning.

The strong performance at Edna May pushed the company above its quarterly guidance for the group.

Overall, Evolution’s operations delivered 94,446oz gold at cash costs of $732/oz, above the 85,000-90,000oz guidance and in the lower end of the full-year cost guidance of $730-$790/oz.

Klein said the results debunked the myth that the assets were old or “tired”, instead showing they had been revitalised under Evolution’s ownership.

To the Queensland mines, Cracow and Mt Rawdon performed in line with expectations. Pajingo was down due to short-term issues relating to equipment availability and limited access to high-grade ore due to necessary cemented rockfill activities.

During the quarter, Evolution sold 90.960oz gold at an average $1613/oz for revenue of $149.1 million.

The company delivered 34,808oz gold into the Edna May hedge book, including pre-deliveries covering the December and March quarters.

There is 189,369oz at an average delivery price of $1573/oz remaining in the hedge book.

“From a strategic point of view, the desire is to be unhedged,” Klein said.

Meanwhile, the Mt Carlton development project in Queensland remained on schedule to begin commissioning in December, with first concentrate sales in the first quarter of 2013.

The capital cost remained unchanged at $170-$180 million and the mine was expected to be the lowest in the company’s portfolio.

On the exploration side, mineralisation at Greenfinch at Edna May was extended, with a resource estimate due later this quarter.

A resource estimate was also underway at Coronation, part of Cracow, which was a focus during the quarter.

Evolution general manager discovery Adrian Pelliccia said the identification of new high-grade structures at Cracow and the Moonlight prospect at Pajingo was exciting and would be the focus of ongoing work.

He said about 30,000m of drilling was completed during the quarter, with exploration expenditure totalling $7 million from a total FY13 budget of $28 million.

Evolution closed the quarter with $72.6 million.

The company will celebrate the one-year anniversary of its completion next Friday and Klein said he could not be happier with how the company had performed.

Despite tracking ahead of its FY13 guidance, the forecast of 370,000-410,000oz has been maintained for now.

Shares in Evolution fell 4.5% or 8.5c to $1.96.