Evolution Mining (ASX:EVN) slashes dividend despite profit surge

Highlights

  • Evolution Mining announced a record net profit in FY21 despite challenges posed by the coronavirus pandemic.
  • The company reported a 14% rise in statutory net profit after tax (NPAT) to AU$345.3 million for the year ending 30 June 2021.
  • The gold production stood at 680,788 ounces in FY21, down from FY20’s 746,463 ounces.

Evolution Mining Ltd (ASX:EVN) on Thursday announced a record net profit in FY21 despite challenges posed by the coronavirus pandemic. The company reported a 14% rise in statutory net profit after tax (NPAT) to AU$345.3 million for the year ending 30 June 2021 compared to AU$301.6 million in FY20. The underlying NPAT stood at AU$354.3 million compared to AU$405.4 million in last fiscal.

Evolution Mining also said that its revenue declined 4% to AU$1.86 billion in FY21. The earnings before interest, tax, depreciation and ammortisation (EBITDA) fell 11% to AU$914 million.

The company reported an achieved gold price of AU$2,369 an ounce, higher than last year. Its all-in sustaining cost (AISC) stood at AU$1,215 an ounce.

The gold production stood at 680,788 ounces in FY21, down from FY20’s 746,463 ounces. The net bank debt was AU$459.9 million as of 30 June 2020.

Source: © Tomas1111  | Megapixl.com

What did Evolution’s management say?

Commenting on the financial results, Evolution’s executive chairman Jake Klein said that the company continued to upgrade the quality of the portfolio in FY21 with a commitment to develop the Cowal Underground mine, and complete district consolidations at both Red Lake and Mungari.”

Evolution’s dividend

The company declared a final fully franked dividend of 5 cents per share. This results in an FY21 full year dividend of 12 cents per share fully franked.

The company paid a dividend of 9 cents a share a year ago.

Evolution’s FY22 guidance

Evolution said that it expected FY22 group gold production between 700,000 and 760,000 ounces at AISC guidance of AU$1,220 to AU$1,280 per ounce.

Investment in sustaining capital in FY22 is guided to be between A$125.0 – A$155.0 million, the company said in its ASX filing.

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The Bottom Line

Evolution shares are expected to trade higher during the day on Thursday after strong FY21 earnings update. The stock closed 1.28% up at AU$3.95 on Wednesday. The share price is down 25% so far this year.

READ MORE: Market cheers I3 Energy’s move to increase net operating income guidance

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