The Evolution Mining Ltd (ASX: EVN) share price is up 3% after the ASX gold share reported a big increase in profits in the FY26 half-year result.
Evolution Mining is one of the larger ASX gold shares. It has five mines in Australia and one in Canada.
Evolution Mining HY26 result
Here are some of the highlights for the six months to 31 December 2025:
- Underlying EBITDA (EBITDA explained) grew 57% to $1.6 billion
- Operating mine cashflow grew 75% to $1.73 billion
- Underlying net profit jumped 104% to $785 million
- Net mine cashflow soared 151% to $1.09 billion
- Statutory net profit grew 110% to $767 million
- Group cashflow rose 123% to $608 million
- Interim dividend per share up 186% to $0.20
What drove the financials?
Aside from operational performance, the ASX gold share’s result was driven by the big increase in the gold price.
The amount of gold produced declined by 6% to 364,936 ounces. But, the gold price achieved by the business jumped by 48% to $5,726 per ounce.
As part of its operations, Evolution Mining produced 36,058 tonnes of copper, with the achieved copper price rising by 24% to $17,167 per tonne.
While revenue soared, production costs decreased. The gold all-in sustained cost improved by 4% to $1,493 per ounce.
Thanks to the huge increase in cashflow, the company’s net debt improved 72% to $362 million, with gearing reducing to 6% (down from 23% in HY25).
Evolution Mining dividend decision
The ASX gold share said that its dividend policy is to pay a dividend based on the group cash flow.
The directors assess the cash flow and outlook for the business, with the intention to return excess cash to shareholders, targeting a dividend payout ratio of around 50% of annual group cashflow.
Management commentary
The Evolution Mining CEO and Managing Director Lawrie Conway said:
Our half-year result reflects the strength of our operating discipline and our ability to capture the upside in a favourable metal price environment. We delivered record financial performance, robust and reliable cash flows and continued to deleverage the balance sheet.
Our record dividend of 20 cents per share meets our commitment to reward shareholders in the current high metal price environment. With a clear pipeline of high-return projects now advancing, we’re positioned for strong, sustainable growth while continuing to return capital to shareholders.
Growth projects approved
The ASX gold share made a couple of announcements in addition to its result.
Firstly, it has approved a number of projects.
It’s going to develop the E22 block cave at Northparkes with a capital investment of $545 million, aiming for a rate of return of 28% at base case metal prices. It also approved a capital investment of $75 million for the Northparkes coarse particle flotation project and a $14 million expansion study.
At Ernest Henry, the company approved the development of the Bert deposit, aiming for a 23% rate of return at base case metal prices. This has a cost of $160 million.
The ASX gold share also entered into an agreement to acquire the Two Times Fred exploration project with an option to buy the Clisbako exploration project, with both located in British Columbia.
Northparkes
It has also entered into an amended and restated Northparkes metal and purchase agreement with Triple Flag.
This provides the ASX gold share with an additional upfront capital contribution. The timing aligns with the development of the E22 block back and unlocks the potential to develop the gold-rich E44 deposit at Northparkes.
E44 is a gold-rich near-surface orebody that is not part of the current Northparkes life of mine plan but was studied prior to Evolution ownership.
Evolution Mining said it will receive an advance amount, via a refundable deposit, of A$120 million, payable on 15 December 2026.
The streaming rate will be reduced to 25% of payable gold production (down from 67.5% previously) and 37.5% of payable silver production (down from 100% previously).
Triple Flag will make payments to Evolution equivalent to 10% of the prevailing spot price for any ounces of gold and silver delivered from E44.
Evolution will commit to a binding minimum of 45,000 ounces of gold and 446,000 ounces of silver between FY31 and FY38.
If a final investment decision (FID) on E44 is not reached by 31 December 2029, Evolution Mining may elect to repay the refundable deposit plus a compensation payment.
Final thoughts on the Evolution Mining share price
The ASX gold share is clearly capitalising on the higher gold price and has intentions to produce significantly more from its project portfolio.
It has rocketed close to 150% over the last year, so I don’t think the miner is good value to buy right now unless the gold price were to soar further. I’m not willing to bet on that happening. However, I’d be very happy if I were shareholder with strong profits and rising dividends.
But, there are other ASX dividend shares I’d rather buy today which aren’t valued so highly by the market.
