Evolution Mining (EVN) Q4 2024 earnings summary

Executive summary

• Record quarterly group cash flow of AUD 230 million, nearly tripling the March quarter, and full-year group cash flow of AUD 367 million, achieved at metal prices below current spot levels.

• Gold production rose 14% to 212,070 ounces and copper production reached 20,318 tons for the quarter; all-in sustaining costs (AISC) fell 13% to AUD 1,275/oz.

• Deleveraging target met, with gearing reduced from 33% to 25% and year-end liquidity at AUD 930 million.

• Sustainability targets met or exceeded, including a 14.3% reduction in emissions since 2020 and a 14% drop in total recordable injury frequency.

• Major exploration success at the Bert ore body at Ernest Henry, with the highest-grade intercept in site history, indicating strong future mining potential.

Financial highlights

• FY24 group cash flow was AUD 367 million; net mine cash flow was AUD 583 million, or AUD 812/oz.

• All operations were cash flow positive before major capital each quarter.

• Achieved gold price in June quarter was AUD 3,512/oz, up 11% sequentially; copper price AUD 15,569/t, up 18%.

• Total available liquidity at 30 June 2024 was AUD 928.3 million, including an undrawn AUD 525 million revolving credit facility.

• Dividend of AUD 39.7 million paid in June quarter.

Outlook and guidance

• FY 2025 guidance and full-year results to be released in August; current outlook expects flattish production and cost increases of 5% for labor and 3% for other costs.

• 94% of gold production for FY25 and FY26 is unhedged, positioning for upside from rising gold prices.

• Red Lake expected to be cash positive in FY 2025, with operational improvements and redundancy measures in place.

• Cowal positioned to generate strong cash flow over the next five years, with sustaining capital averaging AUD 40–50 million annually.

• Mungari 4.2 expansion on track to transform the operation by FY 2026.