Evolution Mining has continued its strong cash flow momentum in the December quarter, delivering record results as disciplined operations and rising metal prices underpin its FY26 outlook.
The gold producer reported record operating mine cash flow of $1.1 billion ($5469 per ounce), up 57 per cent on the September quarter, reflecting consistent delivery to plan and sector-leading cost performance.
Record net mine cash flow of $727 million ($3759/oz) was also achieved, with operations delivering cash flow improvements of between 55 and 140 per cent. At the group level, Evolution generated record cash flow of $412 million ($2130/oz) and underlying group cash flow of $541 million ($2797/oz).
December quarter production totalled 191,000 ounces of gold and 18,000 tonnes of copper, with all-in sustaining costs (AISC) of $1275/oz, which the company said placed it among the lowest-cost producers in the sector. The company remains on track to deliver FY26 production at costs below its original guidance.
Evolution’s balance sheet strengthened further during the quarter, with cash rising by $187 million to $967 million. Gearing improved to six per cent, down from 11 per cent at September 2025 and 33 per cent at December 2023, with no debt repayments due until November 2028.
Operationally, Cowal maintained its position as a world-class asset, generating net mine cash flow of $284 million at $3564/oz. Mungari delivered record quarterly production of 50,000 ounces, placing the operation on track to achieve its targeted 200,000 ounces per annum following the commissioning of the expanded mill. The site achieved an annualised processing rate of 4.1 million tonnes per annum for the quarter.
At Ernest Henry, around 300 millimetres of rainfall in a 24-hour period late in the quarter resulted in water ingress and a temporary suspension of underground operations. Evolution confirmed all personnel were safely accounted for, with no injuries reported. Recovery activities are progressing, with only short-term impacts expected. The weather event is forecast to reduce FY26 production by 7,000–8,000 ounces of gold and 4,000–5,000 tonnes of copper.
Group production guidance remains unchanged at 710,000–780,000 ounces of gold and 70,000–80,000 tonnes of copper, with copper output expected toward the lower end of the range. Group AISC guidance has been revised down to $1,640–$1,760/oz, a six per cent improvement on original guidance.
Managing director and chief executive officer Lawrie Conway said consistent delivery in a rising price environment continued to translate into strong cash generation and shareholder value.
Read more: Strategy rather than luck is key to industry growth, says Evolution’s Jake Klein
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