Evolution Mining shares slump 5% after profit drop

The news: Gold miner Evolution Mining has posted a statutory net profit after tax of $163.5 million, down almost 50% on the year before. Flooding halted production for months at one of its mines, but Evolution says it has restructured its debts and is focused on cash generation in the coming years.

The numbers: Evolution's net profit dropped 49% from $323.3 million to $163.5 million, earnings per share sunk 50% to 8.9 cents and its final dividend was down a third to two cents. In what the miner called a "groundwork year", it lifted its capital investment 32% to $798.7 million. Evolution's share price was trading 5% down at $3.35 before 1pm AEST.

The context: Evolution's Ernest Henry operation was temporarily halted in March after heavy rainfall shut down the underground mine, pushing the miner behind on cost and production guidance before returning to full production in June. Evolution said the incident cost roughly $160 million in lost revenue and another $24 million in recovery costs.