Evolution Mining's fiscal H1'21 net profit soars 55% YOY to record A$228.7M

Australian gold miner Evolution Mining Ltd. booked a record statutory net profit after tax of A$228.7 million in the first half of its fiscal 2021, jumping 55% from A$147.2 million in the year-ago period.

Underlying net profit after tax for the six months also grew 57% year on year to a record A$234 million from A$149.1 million, while EBITDA rose 17% to A$514.6 million, according to a Feb. 17 news release.

The company, however, produced 350,326 ounces of gold during the period, down year on year from 362,857 ounces, at an all-in sustaining cost of A$1,182 per ounce, up from A$1,041/oz.

As of Dec. 31, 2020, Evolution Mining's cash position ballooned to A$438.1 million from A$170.3 million at the end of 2019, with a net bank debt position of A$86.9 million.

The miner declared a fully franked interim dividend of 7.0 cents per share, for an aggregate amount of A$119.6 million to be paid on March 26.

In a separate release, Evolution Mining said its board approved the development of a surface decline at the Red Lake gold mine in Ontario. The capital investment required for the decline is estimated between A$60 million and A$70 million, of which A$15 million is expected to be spent within fiscal 2021.

Red Lake hosts total ore reserves of 2.93 million ounces at 6.9 g/t gold. The decline will allow access into the mine's Upper Campbell area, which hosts ore reserves of 1.85 Moz at 7.4 g/t gold, and the HG Young ore body, which hosts mineral resources of 427,000 ounces at 5.5 g/t gold that may be converted to ore reserves with additional drilling.