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.