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Highlights

  • Evolution Mining is a gold mining company that owns five wholly owned mines
  • In 1HFY24, revenue of EVN grew by 18% YoY to AUD 1,340.20 million
  • Australian Super has highest stake in EVN with a shareholding of nearly 14.01%

Australia-based Evolution Mining Limited (ASX: EVN) is a gold mining firm that owns and operates five wholly owned mines. Two mines are located in Queensland, one in New South Wales, one in Western Australia and one in Canada. The company also has an 80% share in Northparkes, located in New South Wales.

In the first half of the financial year 2024 (1HFY24), the company reported a more than 18% YoY increase in revenue to AUD 1,340.20 million, backed by an increase in sold ounces and increased gold price. The period saw 28.33% YoY jump in underlying EBITDA to AUD 572.60 million, backed by topline growth in 1HFY24. Underlying net profit after tax in 1HFY24 increased by 53.35% YoY to AUD 158.10 million.

Top 10 shareholders of EVN

The top 10 shareholders of EVN have around 45.33% shareholding in the company, while the top four have 33.62% shareholding. Australian Super and Van Eck Associates Corporation have maximum stake in the company, with a shareholding of 14.01% and 11.09%, respectively.

Recent business update

Through an ASX update 11 March 2024, the company revealed that its director, Jason Attew, augmented its interest in the company by purchasing 10,935 shares at AUD 3.30 apiece. This transaction demonstrates the Attew confidence in EVN’s future performance and prospects.

On 6 March 2024, the company informed about the appointment of Nancy Guay as its chief technical officer (CTO). In her role, she will look after multiple technical functions such as long-term planning, projects, studies and technical services.

Outlook

The company expects to see improved performance in the latter half of FY24. Gold production from Red Lake mine is expected to fall in the range of 125,000 – 135,000 ounces. The company informed that the Mungari 4.2 project is on a scheduled date and within budget.

The company expects to deliver gold production of 789,000 ounces (+5%), copper production of 62,500 tonnes (+5%) and AISC of AUD 1,340 per ounce (+5%). Sustaining capital expenditure is expected to fall in range of AUD 190 million to AUD 230 million. Moreover, the company highlighted that the capital expenditure is expected to drop by almost AUD 80 million over FY23.

Share performance of EVN

EVN shares closed 1.49% up at AUD 3.4 apiece on 19 Mrach 2024. With this, in the last one year, EVN’s share price has jumped 19.72% and in the last six months, it has declined by nearly 8.11%.

The 52-week high of EVN is AUD 4.23, recorded on 4 December 2023, while the 52-week low is AUD 2.72, recorded on 20 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 19 March 2024. The reference data in this report has been partly sourced from REFINITIV.