Evolution Mining Limited

Record FY26 financial performance (strong shareholder outcome): - Underlying EBITDA: $3.2bn, +44% YoY; margin: 57% (record). - AISC: $1,717/oz; underlying NPAT: $1.6bn (+63% YoY). - Group cash flow: $1.4bn, +76% YoY. - EPS: $0.73/share, +57% YoY. - Surprising/good: the company highlights that FY26 marks its first year after “degearing” and still delivered bumper dividends while maintaining capital investment.

Dividend policy upgrade + record cash return (big positive): - Interim dividend: $0.20/share (fully franked). - Final dividend: $0.21/share (fully franked) → FY26 total dividend: $0.41/share. - Total dividend: $833m, noted as > Evolution’s market cap in early 2015. - Dividend payout target increased: to 60% of annual group cash flow (from 50% previously). - Opportunity: management frames this as “sector-leading” and supported by ~17-year reserve life and confidence in long-term cash generation.

FY27 guidance: strong cash generation, high margin, cost discipline (key forecasts): - Production guidance (FY27): - Gold: 660k–730k oz - Copper: 63k–70k tonnes - Production weighted to 2H (Cowal underground access + Red Lake access). - AISC guidance: $1,795–$1,995/oz (one of the lowest in the sector). - Based on copper price USD 5.72/lb (spot ~15% higher), implying a mild/contained AISC pressure if prices normalize. - Cost escalation assumption: +4% to +5% plus extra sustaining capital (+$50m–$60m annually for fleet/infrastructure reliability). - Cash-flow outlook (at midpoint/current prices): - Operating mine cash flow ~ $3.6bn at current prices (+$200m vs FY26), with group cash flow sufficient for “meaningful dividends”. - If metal prices align closer to consensus: group cash flow ~ $3.4bn (range $3.4–$3.6bn). - Costs sensitivity highlights: copper price matters—management cited that sustained copper at current levels could move cash/AISC by roughly +$190–$210/oz benefit (directionally).