Evolution Mining has reported a record-breaking first half of FY26 with statutory net profit soaring 110% to $767 million and a fully franked interim dividend of 20 cents per share. Strong operational discipline and favourable metal prices underpin this robust performance.
- Statutory net profit up 110% to $767 million
- Underlying EBITDA margin improves to 57%
- Record operating mine cash flow of $1.73 billion
- Gearing reduced to 6%, down from 23%
- Interim dividend raised to 20 cents per share, fully franked
Record Half-Year Financial Performance
Evolution Mining Limited (ASX – EVN) has delivered a standout first half for FY26, reporting a statutory net profit after tax of $767 million, more than doubling the $365 million recorded in the same period last year. Underlying net profit also surged by 104% to $785 million, reflecting the company’s ability to capitalise on a favourable metal price environment while maintaining operational discipline.
The company’s underlying EBITDA margin climbed to 57%, up 14 percentage points from 50% in the prior corresponding period, signalling improved cost efficiency and strong cash generation. Operating mine cash flow reached a record $1.73 billion, a 75% increase year-on-year, while net mine cash flow after capital expenditure more than doubled to $1.09 billion.
Strong Balance Sheet and Shareholder Returns
Evolution’s balance sheet shows marked improvement, with gearing reduced to a low 6% from 23% a year earlier, underscoring the company’s commitment to deleveraging. Cash reserves nearly doubled to $967 million, providing a solid buffer for ongoing investments and operational needs.
Reflecting this robust financial position, the board declared a fully franked interim dividend of 20 cents per share, nearly tripling the 7 cents paid in the first half of FY25. The dividend reinvestment plan will be available with no discount, offering shareholders flexible options to increase their holdings.
Operational Highlights and Outlook
While gold and copper production volumes dipped slightly by 6% and 4% respectively, these declines were more than offset by higher metal prices, with gold prices up 48% year-on-year. The company’s all-in sustaining cost per ounce remained steady at $1,493, supporting strong margins.
Managing Director Lawrie Conway emphasised the company’s focus on operational discipline and growth, noting a clear pipeline of high-return projects advancing. The company’s portfolio includes six mines across Australia and Canada, with production guidance for FY26 set between 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper.
Looking ahead, Evolution is poised to sustain its growth trajectory while continuing to return capital to shareholders, balancing investment in development with shareholder rewards.
Bottom Line?
Evolution Mining’s record half-year results set a high bar, but sustaining growth amid fluctuating production and metal prices will be the next test.
Questions in the middle?
- How will Evolution manage the slight decline in gold and copper production going forward?
- What impact will ongoing growth projects have on future profitability and cash flow?
- Will the company maintain its aggressive dividend policy if metal prices soften?