Key Highlights

  • Statutory profit after tax rose 59% to $1.475 billion, while Underlying Profit increased 63% to $1.563 billion.
  • Group Cash Flow increased 76% to $1.389 billion, with underlying EBITDA rising 44% to $3.171 billion.
  • Gold production fell 5% to 715,000 ounces and copper production declined 14% to 66,000 tonnes.
  • The final fully Franked Dividend increased 62% to 21 cents per share, taking the FY26 full-year dividend to 41 cents per share.

Evolution Mining Limited (ASX:EVN) positions itself for growth with a record financial result for FY26, with higher realised Commodity prices contributing to substantial increases in profit and cash generation. Statutory profit after tax reached $1.475 billion, up 59% from $926 million in FY25, while underlying profit after tax increased 63% to $1.563 billion from $958 million.

Underlying EBITDA rose 44% to $3.171 billion, compared with $2.207 billion a year earlier. The underlying EBITDA Margin also increased to 57% from 51%. Earnings Per Share climbed 57% to 73 cents, compared with 46 cents in FY25.

Group cash flow was $1.389 billion, a 76% increase from $787 million. Operating mine cash flow rose 48% to $3.394 billion, while net mine cash flow more than doubled to $2.079 billion from $1.035 billion.

Production Declines Amid Higher Commodity Prices

The financial improvement occurred despite lower production across both major commodities. Gold production declined 5% to 715,000 ounces from 751,000 ounces, while copper production fell 14% to 66,000 tonnes from 76,000 tonnes.

Higher realised prices partly offset the production reductions. Evolution's achieved gold price increased 40% to $6,023 per ounce from $4,300 per ounce, while its achieved copper price rose 25% to $18,051 per tonne from $14,470 per tonne.

At the same time, All-In Sustaining Cost increased 9% to $1,717 per ounce from $1,572 per ounce. The rise in AISC indicates that the year's improved earnings were accompanied by higher unit costs, even as commodity prices increased.

Balance Sheet Moves Into Net Cash

Evolution ended FY26 with a net cash position of $19 million, compared with net Debt of $849 million in FY25. The company positions itself for growth with $1.347 billion of cash and $1.329 billion of debt at year-end, with no debt repayments due until FY29.

During the year, Evolution repaid $280 million of term loans and paid $668 million in dividends. Capital Investment was $1.089 billion, broadly unchanged from $1.092 billion in FY25.

Total Liquidity stood at $1.873 billion, comprising the cash balance and an available $525 million undrawn revolving Credit facility.

Dividend Policy Changes as Cash Returns Increase

The Board increased its targeted dividend payout rate to approximately 60% of annual Group cash flow from the previous 50% policy. The change accompanied a record final fully franked dividend of 21 cents per share, up 62% from 13 cents in FY25.

The final dividend is expected to return approximately $427 million to shareholders. Combined with earlier distributions, the FY26 full-year dividend reached 41 cents per share, representing approximately $833 million returned to shareholders.

The final dividend has an ex-dividend date of 9 September 2026, a Record Date of 10 September and a payment date of 2 October.

FY27 Production and Capital Outlook

For FY27, Evolution expects gold production of 660,000 to 730,000 ounces and copper production of 63,000 to 70,000 tonnes. The company's AISC guidance is $1,795 to $1,995 per ounce.

The guidance range implies that gold production could be below or broadly comparable with FY26's 715,000 ounces, while copper production is expected to remain below the 66,000 tonnes achieved in FY26 at the lower end of guidance.

Planned sustaining capital is $265 million to $325 million, while major mine development capital is expected at $440 million to $500 million. Major project capital is forecast at $570 million to $650 million, with exploration expenditure guided at $130 million to $160 million.

Operations and Growth Projects

Cowal generated record operating mine cash flow of $1.221 billion and net mine cash flow of $852 million. The Open Pit Continuation project remains on schedule within its original $430 million capital budget.

At Mungari, the expanded 4.2 million-tonne-per-year mill supported record annual gold production of 186,000 ounces, compared with 135,000 ounces in FY25. Operating mine cash flow rose to $652 million from $229 million.

Ernest Henry returned to full production during the June quarter after weather-related disruptions affected FY26 output. The company said the extreme rainfall reduced annual production by approximately 12,000 ounces of gold and 8,000 tonnes of copper.

Evolution is also pursuing additional growth through the proposed Acquisition of Carnaby Resources for approximately $213 million in scrip consideration, subject to Shareholder approval. In August, it acquired a 9.9% interest in Arizona Gold & Silver for $12.1 million.

Conclusion

Evolution Mining's FY26 results show a significant increase in profitability and cash generation despite declines in gold and copper production. Higher realised commodity prices supported record earnings, while the move to a net cash position and increased dividend payout target changed the company's capital-return profile. At the same time, higher AISC, lower production and substantial planned development and project expenditure remain important financial considerations as Evolution enters FY27.