Evolution Mining (EVN) Q2 2025 earnings summary

Executive summary

• December quarter delivered a 54% increase in cash flow to AUD 165 million, with strong safety improvements and all operations achieving single-digit TRIFs; TRIF reduced to 5.44, a 24% improvement QoQ.

• Record mine cash flows: operating mine cash flow of AUD 561 million (+31% QoQ) and net mine cash flow of AUD 263 million (+53% QoQ), driven by strong production and higher gold prices.

• Group cash flow up 54% to AUD 165 million; cash balance increased to AUD 520 million after dividend and debt repayment.

• Mungari mill expansion ahead of schedule and under budget; Cowal open pit extension approved, extending operations to 2042.

• At the halfway mark of FY25, the company is well positioned for a significant step up in cash flow compared to last year.

Financial highlights

• Record operating and net mine cash flow of AUD 561 million and AUD 263 million, respectively, for the quarter.

• Group cash flow of AUD 165 million, up 54% from the September quarter; cash balance increased by AUD 36 million to AUD 520 million after paying AUD 99 million in dividends and AUD 15 million in scheduled debt repayment.

• Gearing reduced to 22.6%, marking the fifth consecutive quarter of net debt reduction.

• All-in Sustaining Cost (AISC) for continuing operations was AUD 1,550 per ounce, slightly improved from the previous quarter; group AISC at AUD 1,543 per ounce, among the lowest in the sector.

• Operating mine cash flow margin at 72% or AUD 2,920 per ounce.

Outlook and guidance

• On track to deliver FY25 production guidance of 710,000–780,000 ounces of gold and 70,000–80,000 tons of copper at an AISC of AUD 1,475–1,575 per ounce.

• Operating mine cash flow for the year could exceed AUD 2 billion at current spot prices.

• March quarter 2025 production expected to be about 25,000 ounces lower due to scheduled shutdowns at Cowal and Ernest Henry.

• Expecting to reduce gearing to 20% or less by year-end while investing in growth and shareholder returns.

• Mungari plant expansion commissioning scheduled for June quarter, nine months ahead of schedule.