Gold producer Evolution Mining increases half-year net profit by 11%

(Kitco News) - Gold and copper producer Evolution Mining (ASX: EVN) yesterday reported an 11% increase in statutory net profit of A$101 million for the six months ended 31 December 2022 (HY22) and said it will pay an interim dividend of 2.0 cents per share fully franked, the 20th consecutive dividend.

The company said that EBITDA margins of 39% were recorded in HY22, "reflecting the high-quality portfolio and making Evolution one of the lowest cost global gold producers."

Evolution noted that its mine operating cash flow was A$477 million in HY22 (HY21: A$396 million), adding that half-year gold production was 327,502 ounces at an all-in sustaining cost of A$1,307 per ounce (US$876/oz).

The company also released its annual Mineral Resource and Ore Reserve estimates as at 31 December 2022. Highlights include a 2% year-on-year increase in Mineral Resources to 30.3 million ounces of contained gold (31 December 2021: 29.6Moz) net of mining depletion of 877,000 ounces.

Ore Reserves estimated to contain 10.0 million ounces of gold and 661 thousand tonnes of copper – a decrease of 360,000 ounces of gold (4%) and an increase of 21,000 tonnes of copper (3%) compared with the estimate as at 31 December 2021.

Commenting on the half-year, CEO and Managing Director Lawrie Conway said, "The half-year to 31 December 2022 has delivered strong operating cash flow which reinforces Evolution's position as one of the lowest cost, highest margin global gold producers. With a significant investment in growth projects at our cornerstone assets, supported by a high-quality Mineral Resource and Ore Reserve base, our business is well positioned to deliver a strong second half.

"We remain on track to deliver Group FY23 production and cost guidance with performance weighted to the second half of the year, which was considered when declaring the interim dividend. Evolution's history of dividend payments with over A$1 billion paid since 2013 demonstrates our commitment to maximising shareholder returns."

Evolution operates five wholly-owned mines – Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon and Ernest Henry in Queensland, and Red Lake in Ontario, Canada.