The Evolution Mining Ltd (ASX: EVN) share price is up 2% after the gold miner reported its FY19 result.
Evolution Mining was formed in November 2011 and is one of Australia’s largest gold miners. It owns five mines, being Cowal in New South Wales, Cracow, Mt Carlton and Mt Rawdon in Queensland and Mungari in Western Australia. Evolution also has a stake in the Ernest Henry copper-gold mine that will deliver 100% of future gold and 30% of future copper and silver produced from an agreed life of the mine area, outside of the life of the mine area Evolution will have a 49% interest in future copper, gold and silver production.
Evolution Mining’s FY19 Result
The miner reported sales revenue of $1.51 billion, down 2%, with gold production of 753,001 ounces. EBITDA (click here to learn what EBITDA means) fell by 8% to $730.3 million, the all-in sustaining cost (AISC) for the year was AUD$924 per ounce or US$661 per ounce, making it one of the lowest cost producers in the world, according to Evolution.
Operating mine cash flow declined by 5% to $771.5 million and net mine cash flow dropped by 8% to $497.8 million. Net profit after tax (NPAT) came in at $218.2 million, which was down 13% on FY18’s underlying result and down 17% on FY18’s statutory result.
Evolution Mining’s balance sheet improved to a net cash position of $35.2 million, last year it had net debt of $71.8 million. Cash increased to $335.2 million and bank debt reduced to $300 million from $395 million a year ago.
The company increased the final dividend by 50% to 6 cents per share. This brings the total dividend for the year to 9.5 cents per share, up 26.7%.
The gold spot price is around AUD$450 higher than the AUD$1,760 per ounce price achieved in FY19, so FY20 could be a pleasing result. But I’m generally not a fan of commodity businesses, I’d rather invest in reliable businesses like the ones in the free report below.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.