September quarter gold production was 170,681 ounces, higher than guidance of 155,000-167,000oz and representing its best quarter so far this calendar year.

All-in sustaining costs of A$1413 an ounce beat guidance of $1450/oz, while all-in costs were $2038/oz for an AIC margin of $326/oz.

"It was a pleasing outcome and a good way to start the year," Evolution executive chairman Jake Klein said this morning.

A strong performance at Mungari in Western Australia offset a weaker quarter at Red Lake in Canada.

Mungari, which produced almost 35,000oz, benefitted from the $400 million acquisition of the neighbouring Kundana project in August.

Red Lake was interrupted for 10 days by fires.

Chief operating officer Bob Fulker and VP discovery Glen Masterman just returned from Red Lake, while Klein will go to Canada next month.

September quarter group mine operating cashflow was $193.7 million, while net mine cashflow was $67.5 million after growth capital of $89.6 million.

Group cashflow was $30.2 million.

Evolution closed the quarter with $422.2 million cash and net bank debt of $467.8 million after paying $91.6 million in dividends.

The company's production is expected to get better over the remaining quarters of FY22.

Evolution expected the September quarter to represent 22% of full-year production, followed by 25% in the December and March quarters and 28% in the June 2022 quarter.

Full-year guidance is 670,000-725,000oz at AISC of $1200-1260/oz.

Canaccord Genuity analyst Reg Spencer forecasts production of 698,000oz at $1219/oz.

"Production is expected to increase over the remainder of the year as Cowal moves to higher grade Stage H ore from December 2021, the grade profile and throughput rates at Red Lake increase and production at Mungari increases after recent M&A," he said.

Shares in Evolution were up 1.9% to $3.79. Canaccord has a buy rating and $4.20 price target.