Evolution Mining Limited (ASX: EVN) has delivered a stellar first half for FY25, reporting a record statutory net profit of $365 million for the six months ending 31 December 2024. In a move that will delight shareholders, the company has declared a fully franked interim dividend of 7.0 cents per share—an impressive 250% increase from the prior year.
Strong Safety and Financial Performance
Safety remains a top priority, and Evolution has made significant strides, reducing its total recordable injury frequency rate (TRIF) by approximately 39% to 5.44 from 8.99 a year earlier.
On the financial front, the company has shattered previous records:
- Statutory net profit surged 277% to $365 million.
- Underlying net profit soared 144% to $385 million.
- Underlying EBITDA hit $1,014 million, up 77%.
- Earnings per share (EPS) jumped 251% to 18.4 cents.
- Group cash flow surged 420% to $273 million.
Enhanced Shareholder Returns and Stronger Balance Sheet
Evolution’s 24th consecutive dividend is a testament to its commitment to shareholder value, with the company reinstating its Dividend Reinvestment Plan (DRP) following shareholder feedback.
In addition, Evolution continues to strengthen its balance sheet:
- Gearing reduced to 23% (from 30% in H1 FY24), with a target of 20% by year-end.
- Net debt reduced by 21% to $1.29 billion.
Operational Excellence Across Key Assets
Cowal
- NSW regulatory approval secured to extend open-pit mining by 10 years, with operations extended to 2042.
- Underground mine delivered a 25% increase in gold production, reaching 174,661 ounces.
- Net mine cash flow jumped to $268 million.
Ernest Henry
- Maintained strong performance with a mine extension study due for completion in Q3 FY25.
- Bert Pre-Feasibility Study commenced, targeting completion by Q4 FY25.
Northparkes
- Generated $122 million in cash flow since acquisition.
- E48 sub-level cave Pre-Feasibility Study due in Q3 FY25, with early works well advanced.
Red Lake
- Achieved record net mine cash flow of $44 million.
- Gold production rose 38% to 67,984 ounces.
- AISC improved 16%, reducing to $2,449 per ounce.
Mungari
- Mill expansion is nine months ahead of schedule and tracking $15 million (6%) below budget.
- Early commissioning is expected in Q4 FY25.
Mt Rawdon
- Transitioning to stockpile processing for the remainder of FY25.
- Feasibility Study for the Mt Rawdon Pumped Hydro project progressing well.
FY25 Guidance On Track
Evolution remains on course to meet FY25 production targets of 710,000 – 780,000 ounces of gold and 70,000 – 80,000 tonnes of copper, with an all-in sustaining cost (AISC) of $1,475 – $1,575 per ounce.
Dividend and DRP Details
- Dividend amount: 7.0 cents per share (fully franked)
- Ex-dividend date: 4 March 2025
- Record date: 5 March 2025
- Payment date: 4 April 2025
- Dividend Reinvestment Plan (DRP): Reinstated, with shares issued at a 5% discount.
Evolution Mining’s Managing Director and CEO, Lawrie Conway, expressed confidence in the company’s trajectory:
“We’ve built a strong foundation, and the results speak for themselves—record-breaking financials and robust cash flow generation. With gold prices holding firm and our operations performing exceptionally well, we’re well on track to generate over $2 billion in operating cash flow for the year. This enables us to continue delivering outstanding returns for shareholders.”
