Key Highlights

• The final Dividend was 21.0 cents per share, fully franked, approximately $427 million, up from 13 cents.

• FY27 guidance, based on assumed prices of A$5,700 per ounce gold and A$18,000 per tonne copper, is:.

• Evolution proposes to acquire Carnaby Resources for approximately $213 million in scrip, subject to Shareholder approval expected between late October and early November 2026.

• The full-year dividend was 41.0 cents, approximately $833 million.

How did Evolution Mining Limited (ASX:EVN) move from net Debt to net cash in a single year, and what does it plan to do with the flexibility? The FY26 results, announced on 19 August 2026 for the year ended 30 June 2026, show underlying EBITDA of $3,171 million, group Cash Flow of $1,389 million and net cash of $19 million, compared with net debt of $849 million a year earlier. The company raised its dividend payout policy, set FY27 guidance that points to lower gold and slightly lower copper output, and has a pending Acquisition and several projects in construction. The story is one of encouraging cash generation set against a more modest production outlook.

The central development: Earnings up, production down

- Underlying EBITDA: $3,171 million, up 44%, a 57% margin.

- Statutory net profit after tax: $1,475 million, up 59%.

- Underlying net profit after tax: $1,563 million, up 63%.

- Earnings per share: 73 cents, compared with 46 cents.

- Group cash flow: $1,389 million, up 76%.

- Gold production: 715,000 ounces, down 5% from 751,000 ounces.

- Copper production: 66,000 tonnes, down 14% from 76,000 tonnes.

- All-In Sustaining Cost (AISC): $1,717 per ounce, compared with $1,572.

- Achieved gold price: $6,023 per ounce.

Profit rose while production fell and unit costs increased, so the achieved gold price largely explains the result.

Dividends and balance sheet

The final dividend was 21.0 cents per share, fully franked, approximately $427 million, up from 13 cents. The full-year dividend was 41.0 cents, approximately $833 million. The payout policy was raised to about 60% of group cash flow, from about 50%.

Cash was $1,347 million and debt was $1,329 million, giving net cash of $19 million. Total Liquidity was $1,873 million, including a $525 million undrawn revolving facility, and no debt repayments are due until FY29. Near-term refinancing pressure appears limited, although net cash is small relative to guided spending.

FY27 guidance

FY27 guidance, based on assumed prices of A$5,700 per ounce gold and A$18,000 per tonne copper, is:

- Gold: 660,000 to 730,000 ounces.

- Copper: 63,000 to 70,000 tonnes.

- AISC: $1,795 to $1,995 per ounce.

- Sustaining capital: $265 million to $325 million.

- Major mine development: $440 million to $500 million.

- Major project capital: $570 million to $650 million.

- Exploration: $130 million to $160 million.

- Depreciation and amortisation: $1,000 to $1,155 per ounce.

The gold range straddles FY26 output of 715,000 ounces, and the AISC range lies above the FY26 outcome.

Asset highlights

- Cowal: record FY26 operating mine cash flow of $1,221 million. The Open Pit Continuation Project is on schedule and within its $430 million budget. FY27 guidance is 285,000 to 305,000 ounces of gold at AISC of $2,200 to $2,400 per ounce.

- Mungari: record FY26 gold production of 186,000 ounces. The 4.2 million tonne a year mill expansion cost $212 million, 15% under budget. FY27 guidance is 185,000 to 205,000 ounces at AISC of $2,500 to $2,650 per ounce.

- Northparkes (80% share): E48 sub-level cave production commenced, and the board approved the E22 block cave and the Coarse Particle Flotation Project. FY27 guidance is 20,000 to 25,000 ounces of gold and 23,000 to 27,000 tonnes of copper, with a negative AISC because of by-product credits.

- Ernest Henry: FY27 guidance is 50,000 to 60,000 ounces of gold and 40,000 to 43,000 tonnes of copper.

Proposed Carnaby Resources acquisition

Evolution proposes to acquire Carnaby Resources for approximately $213 million in scrip, subject to shareholder approval expected between late October and early November 2026. Investors should check the latest ASX announcements.

Business model and exposure

Evolution is a gold and copper producer, so it has exposure to both commodities. Copper provides diversification, and the negative AISC at Northparkes shows how by-product credits can affect unit costs. Revenue depends on ounces and tonnes sold and on prices, while earnings depend on costs.

Sector and competitive position

Evolution competes with other gold and copper miners for projects, labour and equipment. Its advantages are portfolio spread and cash generation, while costs per ounce are rising and gold guidance straddles last year's output.

Risks to monitor

- Gold and copper price movements, since guidance assumes A$5,700 per ounce and A$18,000 per tonne.

- Rising unit costs, as the FY27 AISC range is above FY26.

- Delivery of projects at Cowal, Mungari and Northparkes within budget.

- Integration and approval risk around Carnaby.

- Capital intensity: development and project spending is high in FY27.

- The dividend policy's link to cash flow.

What to watch next

The release reviewed gave no explanation for the lower FY27 gold range beyond the guidance itself, so management commentary on mine sequencing, ore grade and costs will be informative.