Evolution Mining Surges with Record Cash Flow and Extended Cowal Operations

Robust Financial Performance

Evolution Mining’s December 2024 quarterly report reveals a significant uplift in financial and operational metrics, underscoring the company’s resilience and strategic execution amid a buoyant gold price environment. Operating mine cash flow surged to a record $561 million, a 31% increase from the previous quarter, while net mine cash flow rose 53% to $263 million. This robust cash generation reflects Evolution’s low-cost production model, delivering a remarkable margin of 72%, or $2,920 per ounce of gold produced.

The company’s cash balance strengthened to $520 million despite a $99 million dividend payout and scheduled debt repayments, further improving gearing to 22.6%, down from 23.9% in September 2024. With total liquidity exceeding $1 billion, including an undrawn $525 million revolving credit facility, Evolution is well-positioned to fund growth initiatives and navigate market volatility.

Operational Highlights and Safety Gains

Production remained consistent with guidance, delivering 194,793 ounces of gold and 18,554 tonnes of copper. The All-in Sustaining Cost (AISC) held steady at $1,543 per ounce, maintaining Evolution’s status among the sector’s lowest-cost producers. Safety metrics improved markedly, with the Total Recordable Injury Frequency (TRIF) dropping 24% to 5.44, reflecting the company’s ongoing commitment to workforce wellbeing.

Key operations contributed strongly: Cowal achieved a new monthly production record and generated $143 million in net mine cash flow, while Red Lake posted its second consecutive quarter of positive cash flow. Northparkes set a record net mine cash flow of $49 million, benefiting from higher-grade ore and operational efficiencies.

Strategic Growth Projects Accelerate

Evolution’s growth pipeline is advancing ahead of plan. The Mungari 4.2 mill expansion is nine months ahead of schedule and 6% under budget, with early commissioning expected in the June quarter of 2025. This acceleration brings forward approximately $80 million in major capital expenditure originally slated for FY26, enhancing near-term production capacity and cost efficiencies.

Regulatory approval for the Cowal Open Pit Continuation project extends mining operations by a decade to 2042, securing long-term value and regional economic benefits. Meanwhile, feasibility and pre-feasibility studies at Ernest Henry and Northparkes are progressing, supported by encouraging exploration results that expand the resource base and underpin future growth.

Outlook and Market Positioning

Evolution remains on track to meet its FY25 guidance of 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper at an AISC between $1,475 and $1,575 per ounce. The company’s minimal gold hedging position and exposure to rising spot prices, currently around $4,300 per ounce, offer significant upside potential for incremental cash flow in the second half of the fiscal year.

Managing Director Lawrie Conway highlighted the company’s strong cash flow growth, operational discipline, and the strategic value of its high-margin portfolio. With a robust balance sheet, advancing projects, and a supportive commodity price environment, Evolution Mining is well-positioned to capitalize on market opportunities and deliver shareholder value.