Evolution enters FY25 on high note after bumper profits

Evolution Mining has posted a record annual profit and is well-placed heading into 2024-25, according to managing director and chief executive officer Lawrie Conway. The company, whose assets include Cloncurry's Ernest Henry mine, reported a 135 per cent lift in underlying profit to reach $482 million last financial year, and reached a record EBITDA of $1.513 billion. High-margin, high cashflow generation is expected to continue this financial year, with production guidance of 710,000 - 780,000 ounces of gold and 70,000 - 80,000 tonnes of copper across the group. The company expects a combination of a quality portfolio, sector-leading cost position, exposure to copper and disciplined capital allocation to keep the money coming. Evolution also highlighted the positive outlook for commodity prices, with the gold spot price $560 per ounce above the price achieved last financial year. "The record financial performance and excellent progress we have made on deleveraging the balance sheet and the more than doubling of the final dividend, while continuing to invest in our various project opportunities are testament to our strategy and capital allocation discipline," Mr Conway said. "We are ideally positioned for FY25, which will see us continue our high cash generation through planned higher production, at a sector leading cost position." In addition to Ernest Henry, Evolution Mining operates the Mount Rawdon gold mine in Queensland as well as the Cowal and Northparkes sites in New South Wales, Mungari in Western Australia and Red Lake in Canada. The company said Mount Rawdon was expected to deliver a valuable cash contribution in FY25, supplemented by stockpile processing as the operation reaches the end of its mine life. It reported that a feasibility study to develop a pumped hydro scheme at the site after mining was progressing well. Related: Milestone for Mount Rawdon pumped hydro plans Ernest Henry recovered fully from the extreme weather event of 2023-24 and returned to its predictable and reliable performance last year. 'The extension feasibility study is progressing to plan and will take into account the ongoing drilling success,' the company reported. 'Ernest Henry also achieved fully paid back status in FY24 and generated net mine cash flow of $334.1 million.' Evolution has outlined a $500 million life extension project that would take Ernest Henry mining operations out to at least 2040 and has added significantly to the site’s resource inventory since taking full ownership in early 2022.

Evolution enters FY25 on high note after bumper profits

Industry Queensland

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