The Evolution Mining Ltd (ASX: EVN) share price is catching the eye on Wednesday.
In morning trade, the gold miner's shares are up 9% to $4.16.
Investors have been bidding the company's shares higher following the release of its FY 2024 results.
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Evolution Mining share price jumps on FY 2024 results
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 67% to $1,513 million
- Underlying net profit after tax up 135% to a record of $482 million
- Fully franked final dividend up 150% to 5 cents per share
What happened in FY 2024?
For the 12 months ended 30 June, Evolution Mining delivered record earnings from its portfolio of gold and copper operations.
This was underpinned by double digit increases in production across both commodities, higher prices, and lower costs. This ultimately boosted the miner's EBITDA margin from 38% to 47% for the year, which led to underling EBITDA increasing 67% to $1,513 million.
Things were even better on the bottom line with underlying net profit after tax surging 135% to a record of $482 million.
Management commentary
Evolution Mining's managing director and CEO, Lawrie Conway, was very pleased with the company's performance in FY 2024. Conway said:
The record financial performance and excellent progress we have made on deleveraging the balance sheet and the more than doubling of the final dividend, while continuing to invest in our various project opportunities are testament to our strategy and capital allocation discipline.
The good news for the Evolution Mining share price is that Conway is very positive on the company's outlook. He adds:
We are ideally positioned for FY25, which will see us continue our high cash generation through planned higher production, at a sector leading cost position. Thank you to all our employees and stakeholders who contributed to our achievements this year.
Guidance
Evolution Mining expects its strong form to continue in FY 2025. It has provided the following guidance:
- Production of 710,000 to 780,000 ounces of gold
- 70,000 to 80,000 tonnes of copper
- All-in Sustaining Cost (AISC) of A$1,475 – A$1,575 per ounce (FY24: $1,477)
Management notes that this leaves it well-placed to generate bumper free cash flow. Particularly given how the spot gold price is notably higher than what it averaged in FY 2024. It said:
Cash flow will be generated from the combination of the quality portfolio, sector leading cost position, exposure to copper, disciplined capital allocation, and the outlook for commodity prices, with the gold spot price $560 per ounce above the FY24 achieved price.
