Evolution Focusing on Growth After Record Results
Shares in Australian gold miner hit all-time high
Evolution Mining (ASX: EVN) has handed down a record set of half-year financial results on Wednesday, sending its shares to a record high.
The stock rose as much as 8.8% in Australia, outperforming its peers and pushing the company’s market capitalisation towards A$33 billion.
Evolution reported a record underlying net profit after tax of A$785 million, up 104% on the December 2024 half.
Underlying EBITDA was up 57% to a record A$1.58 billion, with the margin improving by 14% to 57%.
Operating mine cashflow was up 75% to a record A$1.73 million, while net mine cashflow was also a record, up 151% to A$1.093 billion after A$406 million of major capital expenditure.
Evolution produced 364,936 ounces of gold and 36,058 tonnes of copper in the December 2025 half at all-in sustaining costs of A$1493 an ounce, reinforcing the company’s position as one of the sector’s lowest cost producers.
The company declared a fully franked interim dividend of A20c per share, up from A7c per share for the same period of 2024, and beating consensus of A17c per share.
Evolution’s year-end cash balance rose by 86% to A$967 million, while gearing dropped from 23% to 6%.
Evolution managing director and CEO Lawrie Conway described today as a milestone day for the company.
“The work we have done executing our strategy since we formed in 2011 has demonstrated to be the right one,” he said during a conference call.
“Today, we have a portfolio which is of the highest quality and are embarking on the next phase of growth, while at the same time delivering high returns for our shareholders, including record dividends.
“We have always said that by focusing on margin, we will make sure that our shareholders benefit. We will bank the cash, invest it wisely, and reward you along the way through share price appreciation and dividends. Today shows that we are meeting that commitment.
“The business is in great shape – probably the best it has ever been – and it is right to be reinvesting in the high margin suite of assets that we have.”
Growth projects approved
Evolution has approved several major organic growth projects.
At Northparkes in New South Wales, the company approved the A$545 million development of the E22 block cave.
At base case metal prices of A$4000/oz of gold and A$14,350/t of copper, the project has a net present value of A$330 million and internal rate of return of 28%, rising to A$600 million and 38%, respectively, at upside metal prices of A$6500/oz of gold and A$18,000/t of copper.
The company also approved the A$75 million Northparkes coarse particle flotation project in the flotation and dewatering areas of the Northparkes plant, generating a rate of return of 23% at base case metal prices or 43% at upside metal prices.
Evolution approved the A$14 million Northparkes expansion study, which includes a prefeasibility study to expand mill capacity from around 7.4 million tonnes per annum to at least 10Mtpa.
The study includes PFS-level studies at MJH, E44, Major Tom and E51 and concept studies at GRP, E48 Lift 2 and E26 Lift 3.
Evolution entered into an amended and restated metal purchase and sale agreement with Triple Flag Precious Metals Corp (TSX/NYSE: TFPM), providing Evolution with an additional upfront capital contribution, the timing of which aligns with the development of the E22 block cave, while also unlocking the potential to develop the gold-rich E44 deposit at Northparkes via a reduced streaming rate over this deposit.
Triple Flag will pay Evolution A$120 million, or US$84.3 million, by mid-December, with Evolution committing to guaranteed minimum deliveries of 45,052oz of gold and 446,200oz of silver from E44 from 2030-2037.
Triple Flag International has an existing 54% gold and 80% silver stream at Northparkes for an ongoing payment of 10% of the spot gold and silver price for each ounce delivered, which is unaffected.
“The collaboration and positive intent of the Triple Flag team has facilitated greater flexibility in evaluating the multiple orebodies at Northparkes,” Conway said.
“It also provides a pathway to develop additional gold-rich deposits.”
At Ernest Henry in Queensland, Evolution has approved the A$160 million development of the Bert deposit to provide incremental mill feed.
Bert is expected to produce around 80,000oz of gold and 35,000t of copper over seven years, generating a A$95 million NPV and 23% IRR at base case metal prices and A$310 million NPV and 48% IRR at upside prices.
“Ernest Henry and Northparkes are reliable cash generators, and the projects announced today will enable us to lift returns through utilisation of latent processing capacity and increasing our gold and copper production,” Conway said.
Evolution has increased its 2026 financial year major capital project guidance from A$365-440 million to A$500-605 million and expects to spend A$900 million to A$1.1 billion per year between FY27 and FY30.
Evolution has also entered into an agreement to acquire the Two Times Fred exploration project from Kootenay Resources Inc (TSXV: KTRI), and a separate agreement that provides an option to acquire the Clisbako exploration project from Vancouver‑based geologist Jim Dawson.
Both projects are in central British Columbia, Canada, and are considered prospective for epithermal gold deposits.
“Our discovery team believe these targets have the potential to become Evolution-scale projects,” Conway said.
“We’ll be extensively drilling these over the next 12 to 15 months.”
Conway said the company remained on track to move to a net cash position by the end of June and had no debt repayments due until FY29.
“Overall, we’re investing in the right projects at the right time so as to improve the returns and the quality of the portfolio,” he said.