Evolution Mining Posts Record FY26 Cash Flow and Meets Production Targets

FY26 Delivers on Production and Cost Promises

Evolution Mining (ASX:EVN) closed FY26 with a strong operational and financial showing, hitting its group guidance for gold and copper production while maintaining sector-leading cost discipline. The company produced 715,000 ounces of gold and 66,000 tonnes of copper at an all-in sustaining cost (AISC) of $1,717 per ounce, comfortably within its forecast range.

The June quarter alone contributed 180,000 ounces of gold and 19,000 tonnes of copper, with a notable 23% quarter-on-quarter improvement in AISC to $1,706 per ounce, signalling improved operational efficiency heading into FY27.

Record Cash Flows and Strong Balance Sheet

Cash flow performance was a highlight, with FY26 group cash flow reaching a record $1.389 billion at a high margin of $1,958 per ounce. Operating mine cash flow hit $3.394 billion, while net mine cash flow stood at $2.079 billion, underscoring robust cash generation across the portfolio.

The company maintained a net cash position with $1.347 billion in cash and no debt repayments due until FY29. Total liquidity, including an undrawn $525 million revolving credit facility, stood at $1.872 billion at the end of the quarter.

Evolution also paid a record interim dividend of $406 million during the quarter, marking the 26th consecutive dividend payment and reflecting confidence in ongoing cash flow generation.

Operations and Growth Projects Progressing Nicely

Operationally, key sites performed well with Ernest Henry returning to full production after weather disruptions, and the Mungari mill expansion completed, increasing throughput to 4.2 million tonnes per annum. Cowal’s Open Pit Continuation (OPC) project saw mining commence at the E46 pit on schedule, while development at Northparkes’ E22 block cave and Ernest Henry’s Bert project is set to ramp up in FY27.

Northparkes also advanced its Coarse Particle Flotation project and commenced a study on expanding mill capacity, supporting longer-term production growth. The company’s full unhedged position on gold and copper gives it exposure to commodity price upside after completing a 120,000-ounce hedge program at Mungari.

FY27 Outlook Flags Inflationary Pressures and Capital Investment

Evolution will release detailed FY27 guidance alongside its full-year financial results on 19 August 2026. Preliminary outlook notes no material production capacity changes except for the planned cessation at Mt Rawdon.

Inflation remains a concern, expected to increase AISC by 4-5%, or approximately $150-160 per ounce. To maintain operational reliability, sustaining capital expenditure is projected to rise by $50-60 million, with additional mine development spending of $130-160 million planned at Northparkes, Cowal, and Ernest Henry, reflecting timing within existing project budgets.

Exploration and Future Growth Options

Exploration activity continues to expand with $15.4 million spent in the June quarter across multiple sites, including new drilling at the Two Times Fred project in British Columbia and Corella near Ernest Henry. The company anticipates increasing exploration investment by $45-60 million in FY27 to capitalize on ongoing discovery success and greenfield opportunities.

Evolution’s FY27 Life of Mine plan identifies multiple organic growth options beyond FY30, with studies and investments of $70-90 million expected to commence next year, aiming to extend production and mine life.