2 Gold Stocks With Low Production Costs
As gold prices continue to hover near record highs in 2025 amid inflationary pressures, rising global uncertainty, and central bank buying, investors are increasingly turning to gold stocks with low production costs. These cost-efficient miners tend to outperform during both bull and bear cycles, as their lean operations allow them to maintain strong margins regardless of short-term price swings.
Two ASX-listed companies that stand out in this category are Evolution Mining (ASX: EVN) and West African Resources (ASX: WAF). Both have built reputations for operational efficiency, disciplined cost management, and sustainable production growth — making them highly attractive options for investors seeking steady returns and exposure to gold’s long-term potential.
Evolution Mining: Consistently Low-Cost Gold Production
Evolution Mining has long been one of Australia’s most respected mid-tier gold producers, known for balancing cost control with consistent output. The company’s diverse portfolio of high-quality assets across Australia and Canada gives it a strong foundation to weather market volatility.
1. Production strength:
In FY25, Evolution delivered a solid gold output of 750,512 ounces, complemented by 76,261 tonnes of copper production. This diversification adds resilience, as copper exposure provides an additional earnings stream when gold prices face pressure.
2. Competitive cost base:
One of Evolution’s biggest strengths lies in its low operating costs. The company’s all-in sustaining cost (AISC) averaged around US$1,100 per ounce in FY25 — significantly below the global industry average of roughly US$1,350–US$1,400 per ounce. This allows Evolution to maintain wide profit margins and strong free cash flow even in a volatile gold price environment.
3. Financial momentum:
FY25 was a standout year financially. Revenue rose 35% year-over-year to $4.35 billion, while net profit doubled to $926 million, showcasing both volume growth and cost efficiency. This performance highlights Evolution’s ability to translate operational gains into tangible shareholder value.
4. Growth and exploration:
Looking ahead, Evolution forecasts steady gold production in FY26, supported by ongoing exploration programs at its flagship assets such as Cowal and Ernest Henry. The company is also evaluating expansion opportunities and potential acquisitions that fit within its disciplined low-cost framework.
5. Investor confidence:
Evolution’s consistent dividend payouts and history of capital discipline make it a favorite among institutional investors. Its commitment to cost control, environmental responsibility, and shareholder returns reinforces its standing as one of the ASX’s most reliable gold producers.
West African Resources: Low-Cost Gold Growth in West Africa
While Evolution represents established Australian mining excellence, West African Resources (ASX: WAF) brings a different kind of growth story — one driven by expansion in high-grade West African gold belts. The company operates in Burkina Faso, one of Africa’s emerging mining destinations, and has quickly become a standout performer thanks to its exceptional cost efficiency and strong production outlook.
1. Expanding production base:
West African Resources operates two major gold projects — Sanbrado and Kiaka — both designed for long mine lives and low costs. Combined, these operations are expected to deliver over 420,000 ounces of gold annually from 2025 onwards, firmly positioning WAF among the top ASX-listed producers.
2. Industry-leading cost profile:
The company’s FY24 AISC averaged just US$1,240 per ounce, well below the global average. Importantly, WAF sells its gold unhedged, meaning it benefits directly from rising gold prices, further amplifying its profitability and cash generation.
3. Strong financial performance:
In H1 FY25, WAF generated $472.88 million in revenue and an operating cash flow of $136.58 million, reflecting both operational efficiency and robust pricing. These strong results have allowed the company to fund its major expansion projects while maintaining a healthy balance sheet.
4. Growth on the horizon:
The Kiaka gold mine, now in the final stages of construction, is expected to produce its first gold in Q3 2025. Once operational, it will effectively double the company’s total production. Ongoing exploration around Sanbrado and potential satellite deposits further enhance the company’s long-term growth profile.
5. Strategic advantage:
Operating with minimal hedging gives West African Resources high leverage to any upside in gold prices. Combined with long mine lives and efficient capital allocation, this positions the company well for sustained growth and strong shareholder value creation.
Why These Stocks Stand Out
Both Evolution Mining and West African Resources deliver what most gold investors look for — low costs, stable operations, and growth visibility. But beyond these fundamentals, they also bring distinct strengths to the table:
- Low-cost advantage:
Their AISCs sit comfortably below the global average, ensuring solid profitability even if gold prices moderate. - Geographical diversity:
Evolution’s Australian base offers political and operational stability, while WAF’s West African assets provide access to some of the world’s most productive gold regions. - Growth-ready portfolios:
Both companies are investing in exploration and expansion rather than relying solely on existing mines — a sign of sustainable, forward-looking management.
Key Considerations for Investors
While both Evolution and WAF boast strong fundamentals, investors should remain aware of sector-specific risks:
- Commodity price volatility:
Gold prices can fluctuate sharply due to shifts in interest rates, inflation expectations, or geopolitical tensions. - Geopolitical exposure:
WAF’s operations in Burkina Faso involve higher jurisdictional risk compared to Australia, though the company has a proven track record of operating effectively in the region. - Operational and exploration risks:
Mining projects always face uncertainties related to grades, production, or expansion timelines.
Nonetheless, their low-cost operations provide a crucial cushion against many of these risks — offering a layer of protection that higher-cost producers lack.
Conclusion
In a gold market where margins matter more than ever, Evolution Mining (ASX: EVN) and West African Resources (ASX: WAF) stand out as two of the best low-cost gold producers on the ASX.
Evolution represents dependable Australian mining strength with a diversified metals base and a proven track record of shareholder returns. West African Resources, on the other hand, offers high-growth potential through its expanding operations in West Africa and impressive cost discipline.
Together, they provide investors with a powerful combination of stability and growth — Evolution as the steady performer with consistent cash flows, and WAF as the emerging powerhouse with a fast-rising production profile.
For investors seeking exposure to gold without taking on excessive cost or operational risk, these two companies could shine the brightest in 2025 and beyond.
Disclaimer:
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