Can Evolution Sustain Growth After Tripling Dividend and Cutting Gearing?

Record Financial Performance in FY25

Evolution Mining Limited has reported a standout financial year for FY25, posting record underlying profits of $958 million and a net profit after tax of $926 million. The company’s EBITDA surged to $2.16 billion, reflecting a robust 51% margin, underscoring the strength of its operations amid favourable commodity prices. This performance was driven by consistent delivery across all operations, including Cowal’s ramp-up of higher-grade underground gold production and a full-year contribution from Northparkes.

Cash flow generation was equally impressive, with group cash flow reaching $787 million, a 114% increase from the previous year. This strong cash position enabled Evolution to triple its final dividend to 13 cents per share, fully franked, marking a significant return to shareholders and reflecting confidence in the company’s financial health and future prospects.

Operational Highlights and Project Progress

Production guidance for FY25 was met with 751,000 ounces of gold and 76,000 tonnes of copper produced, maintaining Evolution’s position as a leading gold and copper miner. Key projects such as the Mungari mill commissioning and Cowal’s underground ramp-up were delivered on time and under budget, with the Cowal OPC project approved, setting the stage for continued growth.

Looking ahead to FY26, the company projects stable production between 710,000 and 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper. All-in sustaining costs (AISC) are expected to range between $1,720 and $1,880 per ounce, reflecting disciplined cost management despite inflationary pressures. Capital expenditure guidance for FY26 is set between $780 million and $980 million, approximately $200 million lower than FY25, signaling a focus on efficient investment.

Balance Sheet Strength and Sustainability Commitments

Evolution’s balance sheet remains robust, with gearing reduced to 15% from 25% a year earlier, and an investment-grade credit rating reaffirmed. The company maintains minimal gold hedging, positioning itself to benefit from current high metal prices. This financial flexibility supports ongoing project sequencing and shareholder returns.

On the sustainability front, Evolution is integrating environmental and social governance into its operations, targeting a 30% reduction in emissions by 2030 and net zero emissions by 2050 relative to an adjusted FY20 baseline. The company also reported a 35% improvement in total recordable injury frequency, reflecting its commitment to health and safety.

Robust Mineral Resources and Ore Reserves

Evolution’s mineral resources and ore reserves remain strong, underpinning its long-term production profile. The company continues to invest in exploration and mine development across its portfolio, including Cowal, Mungari, Northparkes, Red Lake, and Ernest Henry, ensuring a pipeline of projects to sustain future growth.

With a well-sequenced growth strategy, disciplined capital allocation, and a commitment to sustainability, Evolution Mining appears well-positioned to navigate the evolving market landscape while delivering value to shareholders.