Evolution Mining shares jumped 8.3 per cent after the company announced a doubling of its underlying profit to $785 million. The gold miner also declared a bumper interim dividend of 20¢ per share, exceeding both RBC Capital Markets and broader market forecasts. Evolution Mining is an Australian gold mining company focused on discovering, developing, and operating gold mines. It owns and operates a portfolio of mines across Australia and Canada, always looking to expand.
RBC Capital Markets analyst Alex Barkely noted the company’s first half results were broadly in line with expectations. Stronger cash flow and the higher-than-anticipated dividend more than offset higher costs. The underlying EBITDA of $1.589 billion aligned with consensus estimates but fell short of RBC’s projections. Costs were higher than expected and weighed on overall profit figures.
The 20¢ per share interim dividend represents approximately 67 per cent of free cash flow. RBC also highlighted the approval of the Northparkes E22 block cave and the Ernest Henry Bert project as positive steps towards value-accretive growth for the company. These projects are expected to contribute significantly to future earnings and production.
Despite the positive news, RBC maintained its underperform rating on Evolution Mining with a price target of $10.10. The broker acknowledged that the company’s project pipeline and strong cash generation provide support for the stock’s performance.
