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Evolution celebrates financial milestone

Evolution Mining has released its 2023–24 half-year financial report, declaring its 22nd consecutive dividend to be paid to shareholders.

The major miner delivered statutory net profit after tax of $97 million for the half-year, with a significant uplift of 53 per cent in underlying net profit after tax of $158 million, a $55 million increase from the same period in the last financial year (H1 FY23).

Evolution’s underlying earnings before interest, taxes, depreciation, and amortisation increased by 28 per cent to $573 million from the $446 million recorded in H1 FY23.

The company also saw a 30 per cent increase in operating mine cash flow to $618 million, a significant increase from the $477 million recorded in H1 FY23.

“The first half of FY24 (the 2023–24 financial year) saw Evolution return to net cash generation, realising the benefit of capital invested in growth projects over the past couple of years,” Evolution managing director and chief executive officer Lawrie Conway said.

“This will see us deliver increased cash flows in the second half of FY24, and beyond, as we deliver on our commitment to building free cash flow, deleveraging and increasing shareholder returns.

“Based on the positive cash generation and outlook for the year, we have declared our 22nd consecutive dividend of 2.0 cents per share.”

Evolution also recorded a 15 per cent increase in gold ore reserves and 100 per cent increase in copper ore reserves.

As a result, the company’s gold ore reserves now equal 11.5 million ounces and its copper ore reserves total 1.3 million tonnes.

“We are also pleased to announce sizeable increases in our annual mineral resource and ore reserve estimates today, which incorporate JORC compliant mineral resource and ore reserve estimates for Northparkes,” Conway said.

“The feasibility study for the E22 orebody is progressing and we anticipate the outcomes of that study to be available early in the June 2024 quarter, which will inform future mining options at the asset.”

Evolution also saw success in its operations, with its Cowal underground mine continuing its ramp up with the successful commissioning of the paste plant.

The company anticipates commercial production to begin at the end of the March 2024 quarter when it reaches an annualised mining rate of more than 1.4 million tonnes and generates cash at long-term prices.

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