Evolution Mining (EVN) Q1 2025 earnings summary

Executive summary

• Strong start to FY25 with all sites meeting or exceeding plan, improved safety performance (TRIF down 7.5% to 7.2), and robust operational delivery.

• September quarter gold production was 193,554 oz and copper production 19,059 t, with AISC of AUD 1,569/oz (US$1,051/oz), among the lowest in the sector.

• Group cash flow reached AUD 108 million, cash balance rose to AUD 484 million, and total liquidity exceeded AUD 1 billion.

• Gearing reduced to 23.9%, with a target of 20% by year-end, and net debt reduced to AUD 1.35 billion.

• Exploration success at Ernest Henry, Cowal, and Northparkes supports future incremental production.

Financial highlights

• Produced 193,554 oz gold and 19,059 t copper in the quarter; achieved gold price increased 5% to AUD 3,681/oz, with spot price at AUD 3,925/oz.

• All-in sustaining cost (AISC) for continuing operations was AUD 1,569/oz, better than planned.

• Net mine cash flow was AUD 172 million; group cash flow AUD 108 million; cash balance AUD 484 million; total liquidity over AUD 1 billion.

• Red Lake achieved record quarterly cash flow of AUD 27 million; Cowal delivered AUD 125 million net mine cash flow.

• Gross debt at AUD 1.829 billion, net debt reduced to AUD 1.345 billion; undrawn AUD 525 million revolving credit facility committed until Oct 2025.

Outlook and guidance

• On track to deliver FY25 production guidance of 710,000–780,000 oz gold and 70,000–80,000 t copper at AISC AUD 1,475–1,575/oz.

• FY25 operating mine cash flow expected to exceed AUD 1.9 billion at current spot prices, with potential for over AUD 105 million further upside if spot prices persist.

• December quarter expected to see uplift in production and cash flow, with some offset from lower grades at Mount Rawdon and planned shutdowns at Red Lake.

• Mungari mill expansion project ahead of schedule and within budget.

• Gearing targeted to reduce to around 20% by end FY25, with continued investment and increased dividends as debt falls.