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Profit falls but Evolution in full swing

Evolution profit

Evolution Mining conceded it didn’t meet performance expectations in the 2021–22 financial year (FY22), where the company’s net profit after tax (NPAT) decreased by 6 per cent year-on-year.

The gold miner reported an NPAT of $323.3 million for FY22 ($345.3 million in FY21), which came off the back of 640,275 ounces (oz) of total gold production at an all-in sustaining cost (AISC) of $1259/oz.

Evolution said its FY22 profit was influenced by the acquisition and divestment of assets, higher achieved gold and copper prices offsetting lower production, and higher operating costs at existing assets due to increased activities and slightly higher input costs.

The gold miner completed its acquisition of Northern Star Resources’ Kundana assets in August 2021, and in October 2021 it divested its Mt Carlton gold mine in Queensland to Navarre Minerals.

In January, Evolution completed its move to acquire full ownership of the Ernest Henry operation in Queensland.

Ernest Henry is poised to bring Evolution plenty of success in the future. The gold miner recently announced a mineral resource upgrade for the operation, with contained copper jumping 28 per cent and contained gold rising 24 per cent.

Evolution produced 84,145oz of gold at a record low AISC of negative $1680/oz from Ernest Henry in FY22, which it said was assisted by gold production being delivered to plan and the operation’s copper sales of 38,271 tonnes sold at $12,545/t.

The company said the Ernest Henry acquisition has positioned it as one of the lowest-cost gold producers in the world.

Evolution predicts gold production to increase by about 25 per cent in the coming years, with 720,000oz expected in FY23 and 800,000oz in FY24, while AISC will be maintained at around $1240 per ounce in these years.

Evolution said it paid $146.6 million of fully franked dividends in FY22 ($273.4 million in FY21), declaring a final fully franked dividend of $0.03 per share – the company’s 19th consecutive dividend ($0.05 in FY21).

An estimated $55 million will be paid on September 30 as part of the final dividend.

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