Highlights

  • Macquarie Research maintains a underperform rating with a target price of AUD 11.00
  • The company reported statutory net profit after tax of AUD 767M, up 110%.
  • The Board declared a fully franked interim dividend of 20 cents per share.
  • Operating mine cash flow reached AUD 1,733M, rising 75% year on year.
  • The Board approved AUD 545M E22 block cave development at Northparkes.
  • The company secured an AUD 120M refundable deposit under an amended agreement.

Evolution Mining Ltd (ASX:EVN) shares rose by 7.81% to AUD 16.15 on 11 February 2026, extending its 12-month gain to 159.65%, Today’s price movement followed the release of its record half-year financial results alongside multiple favourable capital allocation and project updates.

Despite the share price surge and favourable record results, Macquarie Research maintained an underperform rating with a target price of AUD 11.00.

For the six months ended 31 December 2025, Evolution reported statutory net profit after tax of AUD 767M, up 110% from AUD 365M in the prior corresponding period. Underlying net profit after tax increased 104% to AUD 785M.

The company’s underlying EBITDA rose 57% to AUD 1,589M, while EBITDA margin improved to 57%, compared with 50% a year earlier. Operating mine cash flow increased 75% to AUD 1,733M and net mine cash flow climbed 151% to AUD 1,093M after AUD 406M in major capital expenditure. Basic earnings per share more than doubled to 37.96 cents from 18.36 cents.

Cash balance stood at AUD 967M as of 31 December 2025, compared with AUD 520M a year earlier. Net debt declined to AUD 362M, with gearing reduced to 6% from 23% at December 2024.

Dividend doubles amid higher cash flow

The Directors declared a fully franked interim dividend of 20 cents per share for H1 FY26, compared with 7 cents per share in the prior corresponding period. The Dividend Reinvestment Plan will apply with no discount. The company’s dividend policy targets return around 50% of annual Group cash flow, with free cash flow defined as cash flow before debt, dividends and mergers and acquisitions.

Major Northparkes investment and amended streaming framework

Evolution’s Board approved the development of the E22 block cave at Northparkes with a capital investment of AUD 545M, establishing a long-life bulk underground mining operation. The Northparkes Coarse Particle Flotation Project was also approved, involving approximately AUD 75M in plant upgrades across flotation and dewatering circuits.

In addition, an AUD 14M expansion study, including a Pre-Feasibility Study to assess mill capacity expansion and supporting mining studies, was sanctioned to evaluate increased production scale across the asset.

Separately, Evolution entered into an amended and restated metal purchase and sale agreement with Triple Flag. Under the revised terms, Evolution will receive a refundable deposit of AUD 120M payable on 15 December 2026.

The agreement reduces the streaming rate over the gold-rich E44 deposit to 25% of payable gold and 37.5% of payable silver, compared with higher rates under the previous arrangement. In return, Evolution commits to a minimum cumulative delivery of 45koz payable gold and 446koz payable silver between FY31 and FY38. The agreement provides optionality should a Final Investment Decision on E44 not be reached by 31 December 2029, while also creating a pathway to evaluate other gold-dominant deposits within the Northparkes tenement package.

Ernest Henry and Canadian exploration pipeline in Focus

At Ernest Henry, the Board approved development of the Bert deposit with total capital investment of AUD 160M. The deposit is expected to provide incremental feed and utilise existing mill capacity.

In Canada, Evolution entered into an agreement to acquire the Two Times Fred exploration project and secured an option to acquire the Clisbako exploration project in British Columbia, adding drill-ready prospects to its exploration portfolio in a region known for long-life gold and copper operations.

Management outlines capital allocation focus

Managing Director and CEO Lawrie Conway said the half-year result reflected disciplined operations and the company’s ability to benefit from a favourable metal price environment. He noted that the period delivered record financial results, consistent cash flow generation and further balance sheet deleveraging. He stated that the 20 cents per share interim dividend aligns with the company’s commitment to return value to shareholders in the current metal price setting. He also indicated that with a pipeline of high-return projects progressing, the company continues to advance growth initiatives while returning capital to shareholders.

Investor Takeaway

Evolution Mining shares have advanced 159.65% over the past 12 months, with the latest 7.81% move following record earnings, higher cash flow and expanded capital commitments. The results highlight increased profitability, lower gearing and a larger interim dividend, alongside significant approved investments at Northparkes and Ernest Henry.

Despite the operational and financial momentum, Macquarie Research has maintained an underperform rating with a target price of AUD 11.00, implying a gap between the broker’s valuation framework and the current market price of AUD 16.15. The divergence places investor focus on sustainability of earnings, capital allocation outcomes and future metal price assumptions as the company advances its approved growth pipeline.

 

FAQs

Why did Evolution Mining shares rise on 11 February 2026?

The company reported record H1 FY26 earnings, increased cash flow, declared a higher interim dividend, and approved major project investments.

What dividend did Evolution Mining declare for H1 FY26?

A fully franked interim dividend of 20 cents per share was declared, up from 7 cents in the prior corresponding period.

What major projects were approved at Northparkes?

The Board approved the AUD 545M E22 block cave development, a AUD 75M Coarse Particle Flotation Project, and an AUD 14M expansion study, alongside amendments to its metal streaming agreement.