Rising Costs and Market Risks Shadow Evolution Mining’s Record Profit
Evolution Mining Limited has reported a record statutory net profit after tax of $365.1 million for the half-year ended December 31, 2024, driven by strong operational performance and higher gold and copper prices. The company also declared a fully franked interim dividend of 7.0 cents per share, continuing its consistent shareholder returns.
- Record statutory net profit after tax of $365.1 million, up 277%
- Revenue increased 52% to $2.03 billion, boosted by gold and copper prices
- Interim fully franked dividend of 7.0 cents per share declared
- Regulatory approval granted to extend Cowal open pit mining operations by 10 years
- Mungari mill expansion ahead of schedule and under budget
Strong Financial Performance
Evolution Mining Limited has delivered a standout half-year financial result for the period ended 31 December 2024, reporting a record statutory net profit after tax of $365.1 million, a remarkable 277% increase compared to $96.9 million in the prior corresponding period. Underlying profit after tax also set a new record at $385.1 million, up 144% year-on-year.
The company’s revenue surged by 52% to $2.03 billion, underpinned by consistent on-plan production and significantly higher realised prices for gold and copper. Gold sales revenue reached $1.53 billion, supported by an achieved gold price of $3,875 per ounce, while copper sales contributed $528.6 million. This robust top-line growth was complemented by disciplined cost management, despite inflationary pressures in labour and consumables.
Operational Highlights and Growth Projects
Operationally, Evolution Mining maintained steady production with 388,346 ounces of gold and 37,613 tonnes of copper produced, aligning with full-year guidance targets. The Cowal mine demonstrated exceptional performance, producing 174,661 ounces of gold at an all-in sustaining cost (AISC) of $1,692 per ounce, while the Ernest Henry operation delivered 34,463 ounces of gold and 23,596 tonnes of copper with a negative AISC reflecting strong margins.
Significant progress was made on the Mungari mill expansion, which is now ahead of schedule by at least nine months and under budget by approximately 6%. Early commissioning is anticipated in the June 2025 quarter, positioning the company well to increase throughput and lower costs in the second half of the financial year.
Additionally, Evolution secured regulatory approval to extend open pit mining operations at Cowal by 10 years, enabling operations to continue through to 2042. This extension underscores the long-term value of the asset and provides a platform for sustained production growth.
Balance Sheet and Cash Flow Strength
The company’s balance sheet remains robust with cash and cash equivalents increasing to $520.3 million, up $117 million from 30 June 2024. Operating mine cash flow rose 60% to $990.6 million, reflecting strong cash generation from core operations. Evolution also made progress on deleveraging, with gearing improving to 23%.
Capital expenditure increased to $497.8 million, driven by major investments in the Mungari expansion, underground mine development across several sites, and tailings infrastructure. Despite this, net mine cash flow remained strong at $434.7 million.
Shareholder Returns and Leadership Update
Reflecting confidence in its cash flow outlook, Evolution declared a fully franked interim dividend of 7.0 cents per share, marking its 24th consecutive dividend payment. The Dividend Reinvestment Plan (DRP) has been reinstated with a 5% discount for shareholders opting in.
On the leadership front, Executive Chair Jake Klein announced his transition to Non-Executive Chair effective 1 July 2025, after more than a decade at the helm. This change signals a new chapter for the company’s governance as it continues its growth trajectory.
Sustainability and Future Outlook
Evolution Mining continues to embed sustainability into its operations, reporting no material incidents during the half-year and maintaining sector-leading ESG ratings. The company is on track to meet its net zero emissions target by 2050, with a 121% reduction against its FY20 baseline already achieved in FY25 H1.
Looking ahead, Evolution’s portfolio of six operating mines across Australia and Canada, combined with ongoing exploration and development projects, positions it well to navigate metal price cycles and deliver long-term value.
Bottom Line?
Evolution Mining’s record half-year performance and strategic advances set a strong foundation, but market volatility and project execution remain key watchpoints.
Questions in the middle?
- How will evolving gold and copper prices impact Evolution’s second half cash flow and margins?
- What are the implications of the Cowal open pit extension for long-term production and capital allocation?
- How will the leadership transition affect strategic priorities and operational execution?