Evolution Mining (EVN) Q2 2025 earnings summary

Executive summary

• Record mine cash flows: operating mine cash flow of AUD 561 million (+31% QoQ) and net mine cash flow of AUD 263 million (+53% QoQ), with group cash flow up 54% to AUD 165 million and cash balance rising to AUD 520 million after dividend and debt repayment.

• Safety performance improved, with TRIF reduced to 5.44 (24% improvement QoQ), and all operations achieving single-digit TRIFs.

• Major projects, including Mungari expansion and Cowal open-pit extension, are progressing ahead of schedule and under budget, with Cowal open pit extension approved.

• At the halfway mark of FY25, 52% of gold production guidance and 55%-56% of cash flow guidance achieved, with group production just under 195,000 ounces of gold and 19,000 tons of copper for the quarter.

Financial highlights

• Record operating and net mine cash flow of AUD 561 million and AUD 263 million, respectively, for the quarter, with group cash flow up 54% to AUD 165 million.

• Cash balance increased by AUD 36 million to AUD 520 million after paying AUD 99 million in dividends and AUD 15 million in debt repayment.

• Gearing reduced to 22.6%, marking the fifth consecutive quarter of net debt reduction.

• All-in Sustaining Cost (AIC) per ounce for continuing operations at AUD 1,550 (AISC at AUD 1,543/oz), among the lowest in the sector.

• Operating mine cash flow margin at 72% or $2,920/oz.

Outlook and guidance

• On track to deliver FY25 production guidance of 710,000–780,000 ounces of gold and 70,000–80,000 tons of copper at AIC of AUD 1,475–1,575 per ounce.

• Operating mine cash flow for the year could exceed $2 billion at current spot prices.

• March quarter 2025 production expected ~25,000oz lower due to scheduled shutdowns at Cowal and Ernest Henry.

• Gearing expected to fall to 20% or less by year-end, with continued investment and shareholder returns.

• Mungari expansion commissioning in June quarter, nine months ahead of schedule, expected to boost production towards 200,000 ounces next year.