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Introduction & Market Context
Evolution Mining Ltd (ASX:EVN) released its June 2025 quarterly report on July 16, highlighting record cash flow generation and successful delivery of its full-year production guidance. The gold and copper producer has capitalized on favorable metal prices while maintaining operational discipline, resulting in a strengthened balance sheet and positive outlook for FY26.
The company’s stock closed at $7.70 on July 16, down 1.1% for the day, but remains near the upper range of its 52-week trading band of $3.66-$9.77, reflecting overall market confidence in the miner’s performance.
Quarterly Performance Highlights
Evolution Mining delivered a strong finish to FY25, with June quarter production reaching 182,388 ounces of gold and 19,197 tonnes of copper. The quarter saw record operating mine cash flow of $697 million, driving a 49% increase in group cash flow to $308 million ($1,724/oz).
All-in sustaining costs (AISC) for the quarter were $1,562 per ounce, benefiting from consistent production and effective cost control despite inflationary pressures in the mining sector.
As shown in the quarterly production breakdown by mine:
The company’s cash position strengthened significantly during the quarter, increasing by approximately $100 million after meeting stream commitments, paying its 24th consecutive dividend, and making $145 million in early debt repayments.
Full Year FY25 Results
For the full fiscal year 2025, Evolution Mining successfully met its original group guidance with gold production of 750,512 ounces and copper production of 76,261 tonnes. The company achieved this through what it described as "consistent and reliable operational performance" across its portfolio of assets.
Annual AISC came in at $1,572 per ounce, which included $40-45 per ounce of higher royalty costs linked to higher-than-planned gold prices. The company generated record annual group cash flow of $787 million ($1,051/oz) and record annual operating mine cash flow of $2,288 million.
The following chart illustrates the company’s balance sheet improvement throughout FY25:
Balance Sheet Improvements
Evolution Mining made significant progress in strengthening its financial position during FY25. The company reduced its gross debt by $220 million over the year, with no further debt commitments until July 2026. This debt reduction, combined with increased cash reserves, helped lower the gearing ratio from 25% at the start of FY25 to 15% by year-end.
The cash balance at the end of June 2025 stood at $760 million, up from $403 million at the beginning of the fiscal year. With an undrawn revolving credit facility of $525 million, Evolution’s total liquidity reached approximately $1.3 billion, providing substantial financial flexibility for future operations and growth initiatives.
The detailed cash flow breakdown demonstrates the company’s strong financial performance:
Project Updates and Growth Initiatives
Evolution Mining highlighted several key projects advancing across its portfolio. The Mungari mill expansion was commissioned in April 2025, with commercial production expected during the first half of FY26. The mill processed 620,000 tonnes of ore during the June quarter, with management noting the "potential to extend high-grade mining fronts is increasing in line with recent drilling results."
The company also approved the Cowal Open Pit Continuation (OPC) project, which involves a capital investment budget of $430 million over seven years. Major project works are scheduled to commence in FY26.
At Ernest Henry, the Mine Extension Feasibility Study was completed in the June quarter, while the E42 Stage H at Cowal is on track to complete mining in FY26 before progressing to Stage I.
The company’s safety performance also showed significant improvement, with the Total (EPA:TTEF) Recordable Injury Frequency (TRIF) reaching its lowest level at 4.98, representing a 35% improvement year-over-year.
The following chart shows the company’s improving safety performance:
FY26 Guidance and Outlook
Looking ahead to FY26, Evolution Mining has provided production guidance of 710-780,000 ounces of gold and 70-80,000 tonnes of copper. The company noted there will be a change in production mix, with Mungari ramping up to a 200,000 ounce per annum rate, Cowal completing Stage H, Northparkes completing E31 open pits, and Ernest Henry processing planned lower grade material.
Group AISC is guided at $1,720-1,880 per ounce for continuing operations. The company cited well-controlled inflation at approximately 4%, which equates to $105-125 per ounce. Additionally, Cowal and Northparkes will process a larger proportion of stockpiled ore during FY26, resulting in a higher non-cash component of the AISC of $75-90 per ounce.
Group capital investment for FY26 is guided at $780-980 million, approximately $200 million below FY25 capital investment levels. The company expects "significant high-margin cash generation again in FY26," supported by its operational performance and favorable metal prices.
The comprehensive FY25 performance and FY26 guidance are summarized in this overview:
Evolution Mining’s full FY25 financial results are scheduled for release on August 13, 2025, which will provide additional details on the company’s performance and strategic direction.
Full presentation:
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