Evolution jumps after strong FY result, outlook
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Evolution Mining jumped nearly 9% to $4.15 after the gold producer more than doubled full-year net profit and lifted its final dividend.
The company also outlined a strong guidance for FY25, with a production target of 710,000 to 780,000 ounces of gold, along with 70,000 to 80,000 tonnes of copper.
RBC Capital Markets analyst Alex Barkley called it a "decent result overall" and said there were no major shocks for FY25 with gold production and capex guidance broadly in-line with expectations.
RBC has an 'underperform' recommendation on the stock with a $3.30 price target.
What they said: "Some one-off accounting contributed to profit and loss beats, and underlying free cash flow was slightly ahead, albeit cash was pre-flagged at Q4. Overall, a fairly neutral outcome. However, avoiding more negative FY25 guidance may be seen as a positive to some in the market," the analyst said in a note.
Evolution Mining lifts dividend after FY profit jump
The news: Evolution Mining has lifted its dividend after more than doubling its full-year net profit on the back of higher gold prices and output.
The numbers: Net profit for the year to 30 June jumped 158% to a record $422.3 million, while revenue was up 44% to $3.22 billion. It comes after the company reported a 10% increase in gold production to 716,700 ounces, along with a 43% jump in copper production at 67,862 tonnes. It will pay a final dividend of 5 cents a share compared with 2 cents a share a year earlier.
The context: Evolution’s results were boosted by a rising gold price through the year, helping it achieve an average price of $3,190 per ounce, an improvement of 23% over the previous year. That helped boost its earnings margin and cut debt leverage. The company is now targeting production of 710,000-780,000 ounces of gold in FY25, along with 70,000-80,000 tonnes of copper.
“We are ideally positioned for FY25, which will see us continue our high cash generation through planned higher production, at a sector leading cost position,” CEO Laurie Conway said.
The source: ASX
