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Evolution delivers dividend with record profits

gold mining

Evolution Mining has cashed out a record profit of $345.3 million for the 2020-21 financial year following historic high copper revenue for the company.

This was underpinned by $914.2 million in earnings before interest, taxes, depreciation and amortisation (EBITDA).

Evolution executive chairman Jake Klein said the record profit will result in a $0.5 per share full franked dividend.

“I am proud of Evolution’s achievements during the 2021 financial year amid the challenging backdrop of the COVID-19 pandemic,” Klein said.

“Our teams have risen to the challenge to deliver a record net profit and maintain our sector leading margins.

“The fully franked final dividend of $0.5 cents per share is our 17th consecutive dividend, with $943 million in dividends paid to shareholders since our maiden dividend in 2013.”

The company finished the year with a 26 per cent increase to copper revenue at $236.9 million due to a 33 per cent higher copper price.

However, total revenue for the company including gold decreased by 4 per cent to $1.8 billion.

Evolution sold 677,150 ounces of gold with the higher gold price offset by lower production.

The company recorded $197.2 million in operating costs for the first year of operating the Red Lake mine in Canada.

Further development at the Cowal underground mine was approved in July with a planned $380 investment.

“We continued to upgrade the quality of the portfolio with our commitment to develop the Cowal underground mine, and district consolidations completed at both Red Lake and Mungari to further enhance those cornerstone operations,” Klein said.

“Evolution is well placed to deliver an exceptional, high-margin growth pipeline.”

The company produced 680,788 ounces of gold for the 2020-21 financial year, down from 746,463 in the previous year.

Evolution also held a strong all in sustaining cost (AISC) of $1250 per ounce.

The company finalised its $400 million deal with Northern Star on August 18 to acquire part of its West Australian gold assets.

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