Evolution (ASX:EVN) reports net profit of AU$323M in FY22, shares fall

August 18, 2022 10:41 AM AEST | By Bhawna Gupta
 Evolution (ASX:EVN) reports net profit of AU$323M in FY22, shares fall
Image source: © George7378 | Megapixl.com

Highlights

  • Evolution Mining reported statutory net profit of AU$323.3 million for FY22.
  • The company reported a strong EBITDA margin of 44% throughout the year.
  • A total of 640,275 ounces of gold were produced by Evolution Mining in FY22.

Gold mining company Evolution Mining Limited (ASX:EVN) today (18 August 2022) reported its statutory net profit of AU$323.3 million for the financial year ended 30 June 2022.

The company said in an ASX filing that AU$55 million had been paid to shareholders by the Directors in the form of a fully franked final dividend of 3.0 cents per share (30 June 2021: 5.0 cents per share). Since 2013, AU$1,053 million has been distributed to stockholders in 19 consecutive dividend payments.

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 18 August 2022

Meanwhile, shares of Evolution were trading at AU$2.64 each, down 2.04% on ASX at 10.37 AM AEST.  ASX 200 Materials Index was 1.15% down at 16,267.20 points today at 10.39 AM AEST.

Key highlights of the FY22 report

  • Net Zero pledge progress, including a 7% increase in emissions intensity.
  • A statutory net profit of AU$323.3 million, which was AU$345.3 million in FY21 after income taxes.
  • An underlying net profit of AU$274.7 million as compared with AU$354.3 million in FY21 after income taxes.
  • Strong EBITDA margin of 44%, which was 49% in FY21, while the EBITDA was AU$898.8 million in FY22 (FY21:AU$914.2 million).
  • Cash flow from operations at the mine was AU$893.3 million (FY21:AU$937.3 million).
  • A total of 640,275 ounces of gold were produced, with an all-in sustaining cost of AU$1,259 an ounce (US$914/oz).
  • Operating mine and net mine cash flow of AU$893.3 million and AU$284.1 million were reported, respectively.
  • As a result of the yearly review procedure, the investment grade credit rating was reaffirmed.

Besides this, Evolution further reported that approximately 104 million brand-new, fully paid ordinary Evolution shares were successfully placed with institutional investors for AU$400 million at a price of AU$3.85 per share in July 2021.

Image Source: © Bwylezich | Megapixl.com

Road ahead

Evolution Mining implemented its strategy in the last 12 months by purchasing of Kundana and the East Kundana Joint Venture (EKJV- Evolution's interest is 51%) which helped the company to consolidate the Mungari operation.

These portfolio adjustments have significantly raised its quality and will provide its shareholders with higher long-term returns.

Even though its operational performance over the last 12 months fell short of both the company's and its shareholders' expectations, the company’s operations finished FY22 in a position to perform better than usual in FY23.

Production is anticipated to rise by 12.5% in FY23 to about 720,000 ounces and 11% in FY24 to over 800,000 ounces. In FY23 and FY24, the All-in Sustaining Cost (AISC) is anticipated to stay constant at about AU$1,240 per ounce.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.