Evolution Mining Ltd (ASX:EVN) shares fall despite full-year profit jump

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The Evolution Mining Ltd (ASX: EVN) share price is down 1.93% to $2.80 despite lifting full-year profit by 21% to $263.4 million.

Revenue for the 12 months to June 30 rose 4% to $1.54 billion, due to the strong performance of its Ernest Henry mine in Queensland and the sale of the Edna May gold mine to smaller rival Ramelius Resources.

Evolution’s executive chairman Jake Klein said despite gold production decreasing by 5% to 801,187 ounces, the company achieved record results.

“Evolution achieved records on almost every other metric which is the result of prioritising profitability over production and focusing on high quality, low cost, long life assets,” he said in a statement on Friday.

The company said productivity improvements and cost efficiencies helped it deliver a 12% fall in average all-in sustaining costs to a record low of $797 per ounce.

Evolution Mining has declared a fully-franked final dividend of 4 cents per share, up from 3 cents a year ago.

Outlook

For the 2018/19 financial year, Evolution is forecasting lower gold production at 720,000-770,000 ounces, while costs are likely to be higher, in the range of $850-900 per ounce.

The Evolution Mining Ltd share price has gained 5.28% since the beginning of 2018, compared to the S&P/ASX 200 Index, which has gained 4.33%.

with AAP

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au