I think Evolution selling Cracow is well-timed and also in line...

I think Evolution selling Cracow is well-timed and also in line with the strategy of a large gold producer that is moving into the ranks of the major players in the industry. They know what they need to let go of and hold larger mines instead. Given the downgrade at Mount Carlton, we can see that perhaps they are aware that these smaller mines are no longer worth their while. Selling it to smaller gold producers will potentially provide value accretion for both them and their buyer. In the case of Aeris buying Cracow, this gives another junior producer an opportunity to sink their teeth into something and make a name for themselves.

I look at how mine recycling has made some companies become a formidable player in the industry, look at Northern Star (acquiring Kalgoorlie and Plutonic in 2014), Ramelius Resources (acquiring Vivien in 2014), Evolution themselves (acquiring Ernest Henry in 2016) and also Red 5 (acquiring King of the Hills in 2017).

Evolution Mining should focus on bigger mines. Red Lake Complex looks really juicy but two steps backwards first before charging forward. No pain no gain. Looking good for me to hold longer term and even accumulating more should it head below $4.80.