Rising Costs and Legal Risks Loom Despite Evolution Mining’s Record FY25
Evolution Mining Limited has reported a landmark FY25 with statutory net profit soaring 119% to $926.2 million and record gold and copper output across its portfolio. Key projects like Mungari’s mill expansion and Cowal’s open pit extension are progressing ahead of schedule, underpinning a confident outlook.
- 119% increase in statutory net profit to $926.2 million
- 46% rise in underlying EBITDA to $2.2 billion
- Record gold production at Cowal, Northparkes, and Red Lake
- Mungari mill expansion commissioned nine months early
- Final fully franked dividend of 13.0 cents per share declared
Record Financial Performance
Evolution Mining Limited has delivered a standout financial year for FY25, with statutory net profit after tax more than doubling to $926.2 million, up 119% from the prior year. Underlying EBITDA also surged 46% to a record $2.2 billion, driven by higher metal prices and increased production volumes. This robust performance reflects the company’s operational discipline and strategic execution across its diversified portfolio.
Operational Highlights and Portfolio Growth
The company achieved record annual gold production at its flagship Cowal, Northparkes, and Red Lake mines, with Northparkes contributing its first full year under Evolution ownership. The Mungari mill expansion project was commissioned nine months ahead of schedule and under budget, positioning the operation for commercial production in the first half of FY26. Meanwhile, Cowal’s Open Pit Continuation project received board approval, extending mine life by over a decade to 2042, securing long-term production visibility.
Cash Flow Strength and Balance Sheet
Evolution’s cash flow generation was equally impressive, with operating mine cash flow rising 49% to $2.29 billion and net mine cash flow increasing 78% to $1.04 billion. Capital investment rose 48% to $1.09 billion, reflecting disciplined spending on growth projects including Mungari and Cowal. The company reduced net debt and reaffirmed its investment-grade credit rating, maintaining financial flexibility to support future growth.
Sustainability and Risk Management
Safety metrics improved significantly, with a 35% reduction in total recordable injury frequency. Evolution advanced its sustainability agenda, achieving a 16% reduction in greenhouse gas emissions against a FY20 baseline and progressing climate risk assessments across its operations. The company continues to engage proactively with First Nations partners and local communities, underpinning its social licence to operate.
Executive Remuneration and Governance
The remuneration report highlights strong alignment between executive pay and company performance, with short-term incentives awarded at 113% of target and long-term incentives vesting at 95%. The board remains focused on attracting and retaining leadership talent to drive continued operational excellence and shareholder value creation.
Looking Ahead
With key projects advancing and a strengthened balance sheet, Evolution Mining is well positioned to sustain its growth trajectory. The company declared a fully franked final dividend of 13.0 cents per share, marking its 25th consecutive dividend, and will offer a dividend reinvestment plan with a 5% discount. Investors will be watching closely as the company moves towards commercial production at Mungari and further develops its Northparkes and Cowal assets.
Bottom Line?
Evolution Mining’s record FY25 sets a high bar, but execution on growth projects and market conditions will be critical to sustaining momentum.
Questions in the middle?
- How will commissioning of the Mungari mill expansion impact FY26 production and costs?
- What are the implications of the class action litigation related to Red Lake disclosures?
- How will evolving commodity prices and currency fluctuations affect future cash flow and profitability?