Evolution Mining Surges with Record $365M Profit and 250% Dividend Boost
Evolution Mining has reported a landmark first half of FY25 with a 277% jump in statutory net profit and a substantial 250% increase in its interim dividend, underscoring robust operational momentum and shareholder returns.
- Record statutory net profit of $365 million, up 277%
- Interim dividend increased 250% to 7.0 cents per share, fully franked
- Group cash flow surged 420% to $273 million
- Gearing reduced to 23%, targeting 20% by year-end
- Cowal mine granted 10-year open pit extension, production growth across key assets
Robust Financial Performance
Evolution Mining Limited (ASX: EVN) has delivered a record-breaking first half for FY25, posting a statutory net profit of $365 million, a staggering 277% increase compared to the same period last year. Underlying profit also soared 144% to $385 million, supported by a 77% rise in underlying EBITDA to $1.014 billion. This financial strength translated into a 420% surge in group cash flow, reaching $273 million.
The company’s earnings per share climbed to 18.4 cents, up 251%, reflecting operational efficiency and strong commodity prices. The interim dividend was hiked by 250% to 7.0 cents per share, fully franked, marking the 24th consecutive dividend and signaling Evolution’s commitment to returning value to shareholders.
Operational Highlights and Growth Prospects
Operationally, Evolution’s portfolio of long-life, high-margin assets continues to underpin its success. The Cowal mine in New South Wales received regulatory approval to extend open pit mining by 10 years, with overall operations now planned through 2042. This extension, pending a final investment decision in June 2025, supports a 25% increase in gold production at Cowal to 174,661 ounces in H1 FY25.
Other assets also contributed strongly: Ernest Henry maintained consistent performance with ongoing studies for mine extension and new projects; Northparkes has generated $122 million in cash flow since acquisition and is advancing growth projects; Red Lake achieved record net mine cash flow and improved production efficiency; and the Mungari mill expansion is ahead of schedule and under budget, poised to enhance processing capacity.
Balance Sheet Strength and Sustainability
Evolution’s balance sheet shows marked improvement, with gearing reduced from 30% to 23% over the past year and a target of 20% by the end of FY25. This deleveraging enhances financial flexibility amid ongoing capital investments, including sustaining and major mine development projects.
Safety performance also improved significantly, with total recordable injury frequency dropping by approximately 39%, reflecting the company’s focus on sustainable operations alongside growth.
Guidance and Market Outlook
Looking ahead, Evolution remains on track to meet its FY25 production guidance of 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper, maintaining a sector-leading All-in Sustaining Cost (AISC) of $1,475 to $1,575 per ounce. The company anticipates generating over $2 billion in operating cash flow for the full year, bolstered by spot prices exceeding those achieved in H1.
The reinstatement of the Dividend Reinvestment Plan (DRP) further aligns with shareholder interests, offering a discounted share purchase option that could support liquidity and shareholder engagement.
Evolution’s strategic investments in exploration tenements adjacent to Ernest Henry and promising drill results across multiple sites underscore a pipeline for sustained incremental growth, positioning the company well for the medium term.
Bottom Line?
Evolution Mining’s record half-year performance and strategic growth initiatives set the stage for continued shareholder value creation amid evolving market dynamics.
Questions in the middle?
- How will commodity price fluctuations impact Evolution’s full-year cash flow and profitability?
- What are the key risks and timelines associated with the Cowal mine extension final investment decision?
- How will the reinstated Dividend Reinvestment Plan influence shareholder participation and share price dynamics?
