Evolution Mining delivered record FY26 profit and cash flow, declaring a 21-cent final dividend and setting a higher 60% payout policy while advancing key growth projects and acquisitions.
- Record statutory net profit after tax of $1.48 billion
- Group cash flow surges 76% to $1.39 billion
- Final dividend raised 62% to 21 cents per share
- Acquisition of Carnaby Resources expands copper growth
- Strong ESG performance with first Climate Report released
Record Profit and Cash Flow Drive Dividend Upgrade
Evolution Mining Limited (ASX:EVN) posted a standout FY26 performance with statutory net profit after tax soaring 59% to $1.48 billion, underpinned by a 28% revenue lift to $5.56 billion. Underlying EBITDA hit a record $3.17 billion, buoyed by elevated gold and copper prices and robust operational delivery across its six mines in Australia and Canada. The company’s cash flow strength translated into a record full-year dividend of 41 cents per share, up 105%, including a final fully franked dividend of 21 cents, a 62% increase on FY25.
The Board also updated its dividend policy, targeting a payout of 60% of annual Group cash flow, up from the prior 50%, a move that positions Evolution as a sector leader in shareholder returns. The company ended FY26 with a net cash position of $19 million, holding $1.35 billion in cash and an undrawn $525 million revolving credit facility, with no debt repayments due until FY29.
Operational Highlights and Project Progress
Gold production was 715,000 ounces at an all-in sustaining cost (AISC) of $1,717 per ounce, slightly down from FY25’s 751,000 ounces, reflecting planned ramp downs and weather disruptions. Copper output fell 14% to 66,000 tonnes. Cowal remained the top cash generator with record operating mine cash flow of $1.22 billion, while Mungari delivered a transformational year with record gold production of 186,000 ounces following the successful commissioning of its expanded 4.2 million tonnes per annum mill, completed under budget and ahead of schedule.
Northparkes saw production commence from the new E48 sub-level cave, with Board approval granted for the E22 block cave and Coarse Particle Flotation Project, aimed at boosting recoveries. The company amended its streaming agreement with Triple Flag International Ltd, unlocking development potential for the gold-rich E44 deposit and securing a $120 million upfront payment scheduled for December 2026.
Ernest Henry overcame significant weather disruptions in late 2025, returning to full production by April 2026, and secured Board approval for the Bert underground development project, targeting first production in FY29. Red Lake continued consistent delivery, generating a record net mine cash flow of $286 million, while Mt Rawdon processed low-grade stockpiles in its final full year of operation.
Strategic Acquisitions and Portfolio Enhancements
Building on its growth strategy, Evolution announced its intention to acquire Carnaby Resources Ltd for approximately $213 million, expanding copper growth opportunities at Ernest Henry. The acquisition awaits shareholder approval, expected by late October or early November 2026. Additionally, the company took a 9.9% equity stake in Arizona Gold & Silver Inc, linked to the highly prospective Philadelphia Gold-Silver Project in Arizona’s historic Oatman Mining District.
Sustainability and Governance Milestones
Evolution Mining maintained a strong focus on safety and sustainability, reporting a total recordable injury frequency (TRIF) of 5.85 and releasing its inaugural Climate Report aligned with Australian sustainability standards. The company achieved a ~19% reduction in Scope 1 and 2 greenhouse gas emissions relative to its FY20 baseline and earned recognition for sector-leading ESG performance from Sustainalytics, MSCI, and inclusion in the S&P Global Sustainability Yearbook 2026.
Governance updates included the planned retirement of Non-Executive Director Thomas McKeith, effective December 2026, and the appointment of John Vann as his successor.
Executive Remuneration Reflects Strong Performance
Executive remuneration outcomes aligned closely with Evolution’s financial and operational achievements. Short-term incentives were awarded at 119% of target, reflecting strong delivery against safety, production, cash contribution, and cost metrics. Long-term incentives vested at 97%, driven by exceptional shareholder returns, cost performance, and ore reserve growth. The company also introduced minimum shareholding requirements for Non-Executive Directors and leadership team members to enhance alignment with shareholders.
Risks and Uncertainties Remain
Evolution continues to manage risks inherent to the mining sector, including commodity price volatility, regulatory compliance, operational hazards, and climate-related challenges. The company holds insurance against common risks and maintains robust governance and risk management frameworks. A class action alleging disclosure failures related to Red Lake operations is in early stages, with Evolution contesting the claims.
Looking ahead, FY27 guidance anticipates gold production between 660,000 and 730,000 ounces, copper production of 63,000 to 70,000 tonnes, and AISC ranging from $1,795 to $1,995 per ounce. Capital investment is forecast between $1.28 billion and $1.48 billion, supporting sustaining, mine development, and major projects, all on track with budgets and schedules.
Bottom Line?
Evolution Mining’s record FY26 results and upgraded dividend policy underscore its strong cash-generating model and disciplined capital allocation, yet integration of recent acquisitions and operational execution in FY27 will be key to sustaining momentum.
Questions in the middle?
- How will the Carnaby Resources acquisition reshape copper production and margins at Ernest Henry?
- What operational risks could impact the delivery of FY27 guidance amid inflation and weather uncertainties?
- How might ongoing regulatory and climate-related challenges influence Evolution’s long-term asset valuations and cost structures?