Evolution Mining (EVN) H2 2024 earnings summary

Executive summary

• Achieved record net profit, underlying EBITDA, and earnings per share for FY24, with statutory profit after tax up 158% to $422 million and underlying profit up 135% to $482 million.

• Portfolio strengthened by Northparkes acquisition, which exceeded expectations and contributed significant cash flow.

• Leadership team fully staffed, with a focus on delivering FY25 guidance and maintaining operational discipline.

• Sustainability improvements included a 13% reduction in injury frequency and a 14.3% reduction in emissions, progressing toward 2030 targets.

• Positioned for continued high-margin cash generation and delivery in FY25.

Financial highlights

• Underlying net profit after tax up 135% to $482 million; statutory profit after tax up 158% to $422 million.

• Underlying EBITDA reached a record $1,513 million, up 67% year-over-year; EBITDA margin increased from 38% to 47%.

• Group cash flow improved by $483 million, moving from an outflow to an inflow of $367 million; net mine cash flow surged to $583 million.

• Full-year dividend up 75% to 7c per share; final dividend more than doubled to 5c per share, fully franked.

• Gearing reduced from 33% to 25%; liquidity position increased to $928 million.

Outlook and guidance

• FY25 production guidance: 710,000–780,000 ounces of gold and 70,000–80,000 tons of copper at AISC of $1,475–$1,575/oz.

• High cash flows anticipated, with operating and mine cash flow before major capital potentially reaching $1.8 billion and $1.6 billion, respectively, at spot prices.

• Only ~6% of FY25 gold production hedged; copper entirely unhedged.

• Continued deleveraging, disciplined capital investment, and further dividend increases expected.

• Major capital projects to proceed only as needed; no new major projects approved for FY25.