Evolution Mining rallies after delivering record cash flow
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The news: Shares in Evolution Mining jumped after the gold miner reported record operating mine cash flow of $1.1 billon, up 57% from the September quarter, and reaffirmed it remains on track to deliver its FY26 production guidance.
Shares rose 7.18% to $14.48 per share at 12:18pm AEDT.
The context: Evolution reported group operating cash flow of $412 million, a 110% increase from the prior corresponding period. Underlying Group cash flow rose 176% to $541 million.
The company's cash balance increased 24% year-on-year to $967 million for the December quarter, following the FY25 final dividend payment. Evolution has no debt repayments due until FY29.
Net mine cash flow for the quarter was $727 million, close to a 100% increase from the prior quarter, driven by stronger production contributions from Cowal, Red Lake, Mungari and Northparkes. The company said all operations delivered positive net mine cash flow during December quarter.
Evolution maintained its FY26 production guidance of 710,000 to 780,000 ounce of gold and 70,000 to 80,000 tonnes of copper. Copper production is expected to be lower due to the bad weather conditions at the Ernest Henry operation.
What they said: "Evolution delivered another consistent quarter representing eight consecutive quarters of delivery to plan in a rising metal price environment with minimal hedging has generated record cash flow and sector-leading cost performance," Evolution Mining CEO Lawrie Conway said.
"We continue to bank the benefits of higher metal prices, which is ultimately delivering value for shareholders."
The source: ASX
