Evolution Mining: Record Profit, Higher Dividends.
Evolution Mining Reports Record FY26 Profit, Boosts Dividend Payout Policy to 60%.
Key Points
Evolution moved to an unhedged position at the end of FY26 following the final delivery of gold hedges, signaling a shift to greater cash-flow timing uncertainty but potentially higher upside on gold prices.
Mungari mill expansion was completed ahead of schedule and below budget, costing about $212 million (15% under the $250 million budget) for a 4.2 Mtpa mill, and supported a record annual gold production of 186,000 oz with record operating mine cash flow of about $652 million.
Growth projects across Cowal, Northparkes and Ernest Henry carry high internal rates of return, with IRRs ranging from 23% up to 128 for initiatives including the Cowal Open Pit Cutback, Northparkes E48 Sub-Level Cave and Coarse Particle Flotation, Northparkes E22 block cave, and Ernest Henry Bert deposit.
The group ended FY26 with about $1,347 million in cash and $1,329 million in debt, giving total liquidity around $1,873 million and an undrawn $525 million revolving credit facility, with no debt repayments due until FY29.
The final dividend was 21.0 cents per share (fully franked), bringing the full-year dividend to 41.0 cents per share and aligning with a revised policy targeting roughly 60% of annual group cash flow; Evolution also operates a Dividend Reinvestment Plan (DRP) with no discount and a VWAP-based DRP price.
Evolution Mining posted a record statutory profit of $1.475 billion for FY26, a 59% jump from the prior year, driven by soaring gold and copper prices Kalkine Media. The board declared a final dividend of 21 cents per share, fully franked, lifting the full-year payout to 41 cents per share — a 62% increase — and signaling a new policy targeting roughly 60% of annual group cash flow MarketWatch.
The result marks Evolution's 27th consecutive dividend payment. The company ended FY26 with $1.347 billion in net cash and total liquidity of $1.873 billion, with no debt repayments due until FY29 Kalkine Media.
Record Earnings Powered by Gold and Copper Prices
Underlying EBITDA — earnings before interest, tax, depreciation and amortisation — rose 44% to $3.171 billion MarketWatch. Group cash flow surged 76% to about $1.4 billion. Underlying profit after tax hit $1.563 billion, up 63% from the prior year Kalkine Media.
Gold production for the year reached 715,000 ounces. Copper output came in at 66,000 tonnes. The all-in sustaining cost — the full cost to mine each ounce — was roughly $1,717 per ounce Kalkine Media. Evolution also moved to a fully unhedged position at the end of FY26, meaning it now sells all gold at market prices with no price locks in place.
Mungari Expansion Finished Early and Under Budget
The Mungari mill expansion wrapped up ahead of schedule and cost about $212 million — 15% below the $250 million budget Kalkine Media. The new 4.2 million tonne per annum mill helped Mungari set a record annual gold output of 186,000 ounces.
Mungari also generated record operating mine cash flow of about $652 million for the year Kalkine Media. That makes it one of Evolution's standout performers heading into FY27.
Growth Projects Carry Returns as High as 128% IRR
Evolution flagged a pipeline of high-return projects across three key sites Kalkine Media. At Cowal, the Open Pit Cutback and Coarse Particle Flotation projects are included. At Northparkes, the E48 Sub-Level Cave and the E22 block cave are in play. At Ernest Henry, the Bert deposit is under development.
Internal rates of return — a measure of how profitable a project is — range from 23% up to 128% across these initiatives Kalkine Media. IRR above 20% is generally considered strong for mining. These projects underpin Evolution's long-term production growth story.
FY27 Guidance Points to Steady Output and Rising Costs
For FY27, Evolution guided gold production of 660,000 to 730,000 ounces and copper output of 63,000 to 70,000 tonnes MarketWatch. All-in sustaining costs are expected to rise to a range of $1,795 to $1,995 per ounce, up from $1,717 in FY26 Kalkine Media.
The company holds an undrawn $525 million revolving credit facility and carries $1.329 billion in debt, with no repayments required until FY29 Kalkine Media. Shareholders can reinvest dividends through the Dividend Reinvestment Plan, priced at the volume-weighted average share price with no discount TipRanks.
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