🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Evolution Mining more than doubles final dividend amid robust gold and copper demand

Published 14/08/2024, 01:12 pm
Evolution Mining more than doubles final dividend amid robust gold and copper demand
EVNV
-
HG
-

Robust demand for gold and copper has resulted in a record $422 million in annual profit for Evolution Mining Ltd (ASX:EVN), promoting the company to more than double its final dividend and provide an optimistic outlook for the year ahead.

Evolution’s underlying and net profits both surpassed expectations, increasing by 10% and 15% respectively, according to Citi Research, which said, “the market should like today’s result’’ and the guidance was “in line to better than we’d expected”.

The company has forecast continued strong cash flow generation in the 2025 financial year, projecting production of between 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper.

Further, it anticipates an all-in sustaining cost of production of US$996-US$1,063 per ounce of gold this year, compared with the current gold price of US$2,465.

Managing director Lawrie Conway emphasised Evolution's advantageous position, saying, "We are ideally positioned for the current financial year, which will see us continue our high cash generation through planned higher production, at a sector-leading cost position."

Key operational highlights include the successful ramp-up of the Cowal underground mine, which contributed significantly to cash flow, and ongoing positive performance from assets like Ernest Henry and Northparkes.

Evolution remains focused on growth, with projects such as the Mungari 4.2 expansion and developments at Red Lake and Mt Rawdon expected to bolster future cash flows.

With a reduced gearing ratio and strategic positioning in a high-demand market, Evolution Mining's outlook remains positive amidst favourable commodity price trends.

Evolution will pay a fully franked final dividend of 5 cents per share, up from 2 cents.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.