Evolution Mining Earnings: Higher Volumes and Prices Drive a Strong Result

No-moat Evolution Mining’s fiscal 2024 result was a material improvement on last year and better than we expected. Adjusted EBITDA of about AUD 1.5 billion increased by two thirds on fiscal 2023. Increased gold and copper sales volumes along with higher prices for both metals more than offset a modest 2% increase in unit costs. Adjusted net profit after tax of about AUD 480 million, or AUD 0.25 per share, more than doubled. The balance sheet is sound, with net debt/EBITDA of 1.1 times down from 1.7 times at end-December 2023. Shareholders were rewarded with an AUD 5 cents per-share fully franked final dividend—up 150% on last year and to be paid in October 2024—for a total fully franked dividend of AUD 7 cents in fiscal 2024, up 75% on last year. The strong result and large increase in the final dividend are likely why the shares have risen 8% today at the time of writing.