March quarter gold production was 161,316 ounces of gold at all-in sustaining costs of A$1268 an ounce.

Canaccord Genuity had forecast 182,000oz at $1102/oz.

"Output at all assets excluding Red Lake was below our estimates, with Mt Rawdon the greatest delta," analyst Reg Spencer said.

Mt Rawdon was the company's lowest production contributor, with gold output of 11.930oz at elevated AISC of $2400/oz, due to heavy rainfall in Queensland.

When asked if the asset was under review for potential divestment, Evolution executive chairman Jake Klein said its entire portfolio was constantly being reviewed.

"I think Mt Rawdon had a soft quarter due to the rain," he said.

"One quarter is not reflective of its position in the portfolio."

Mt Carlton in Queensland produced 12,117oz at AISC of $2090/oz.

The high-cost assets were offset by Ernest Henry, which, due to copper credits, posted record low AISC of negative $1027/oz.

Group mine operating cashflow for the quarter was $194.4 million, bringing the year-to-date figure to $725.5 million.

Net mine cash flow was $101.2 million, of which Ernest Henry contributed $74.8 million and Cowal in New South Wales contributed $18.7 million.

Group cashflow was $39.9 million.

All-in costs for the quarter were $1760/oz for an AIC margin of $468/oz.

Chief financial officer Lawrie Conway said the AIC margin for the year-to-date was about $731/oz.

Evolution improved its AISC guidance to $1190-1220/oz from $1240-1300/oz and narrowed its production guidance to 695,000-710,000oz from 670,000-730,000oz.

Canaccord is forecasting 714,000oz at $1222/oz.

Sustaining capital guidance was improved to $100-110 million from $112.5-137.5 million, while major capital guidance was unchanged at $260-290 million.

Klein said the June quarter would be "materially better" and the strongest of the financial year.

"The March quarter was planned and budgeted to be a lower production quarter," he said.

Evolution closed the quarter with cash of $333 million and net bank debt of $166.9 million, after paying the FY21 dividend of $119.6 million.

Conway said the company expected to be in a net cash position by the end of the year.

During the quarter, Evolution announced the C$343 million takeover of Toronto-listed Battle North Gold Corporation, which owns ground next to the Red Lake operation.

The company was also rumoured to be involved in the bidding process for IGO's 30% stake in the Tropicana mine in Western Australia, which was ultimately won by Regis Resources with a cash bid of A$903 million.

"We didn't acquire [Tropicana] so you can draw your own conclusions," Klein said.

Klein said Evolution would continue to look for opportunities.

"Motivated sellers in a rising gold price environment are hard to find so it's up to [VP discovery and business development] Glen [Masterman] and his team to find geological upside," he said.

Shares in Evolution rose 0.6% to $4.76, the highest since early February.