High gold prices + operational excellence = record profit, dividend for Evolution Mining

This interview was recorded 14 August, 2025

After a couple of challenging years where guidance was missed, Evolution Mining (ASX: EVN) set itself a straightforward but challenging goal - return to consistency. What followed in FY25 was a year of operational discipline, cost control, and safe delivery to plan that not only met expectations but shattered records.

As Managing Director and Chief Executive Officer, Lawrie Conway, told me:

“We set out at the start of the year to make sure we got back to more consistent and reliable performance. After a couple of years of missing guidance, we ended up with a record financial performance that has matched the operational performance for the year. 

Our profit was a record at $926 million, up 119%, earnings per share at 46 cents was a record as well, which was up 114%, and we generated just under $800 million of cashflow net for the year". 

In our conversation, as part of Livewire's C-Suite reporting season coverage, Lawrie unpacked the operational improvements that drove the result, the company’s copper growth ambitions, and how major projects like the Mungari and Cowal expansions are setting up the business's future success

We also discussed why Evolution can reward shareholders while still funding long-term growth, safety performance, capital discipline, and M&A strategy in what remains an active gold sector.

For the full experience, watch the video above, or read a summary below. 

INTERVIEW SUMMARY

Delivering on consistency and performance

Lawrie Conway described FY25 as a year where Evolution “delivered the plan” across all four quarters - a stark turnaround from prior years. Operational discipline and cost management were key drivers. 

“Our profits and cash flows were more than double, and yet the gold price only moved up 35%. So it was really on our operational performance where each of the operations contributed,” he explained.

Safety was another standout. “Our recordable injury frequency… reduced by 35% to a real low of five. In the mining industry, five is really at the leading edge… every operation improved their safety performance in the year.” 

The company also focused on “critical controls” to mitigate serious risks, with assurance audits confirming improvement.

Building momentum into FY26

Looking ahead, FY26 guidance remains in the 710,000–780,000 ounce production range. Lawrie called it a “rinse and repeat” strategy: 

“Mungari's production will increase now that we’ve commissioned that plant expansion, Cowal will be a bit lower, so every asset has a role to play”, noted Conway. 

Costs are expected to rise about 4%, but with the gold price ~$800/oz higher than FY25’s realised price, cash flows should improve. The goal, he said, is to “build on that momentum… and reward our shareholders with that cash generation.”

Copper optionality and growth potential

Copper production rose 12% in FY25, driven by a full year of ownership at Northparkes. Copper represented 25% of revenue, down from 30% in FY24 due to weaker prices relative to gold, although the outlook for copper is positive.  

“We believe we can have up to 40% of our revenue from copper,” Lawrie said, either through acquiring another asset or expanding output at Ernest Henry and Northparkes. He sees copper as a natural hedge for gold investors: 

“Gold will trend down at some point and copper will absolutely trend up based on the need… as we go more into renewables.”

Major projects driving future cash flows

The early, under-budget completion of the Mungari mill expansion (“everything that needed to go right, went right”) is already boosting production at record gold prices. Mungari’s output will rise from 130,000 to 200,000 ounces, generating “a lot more cash.”

Those cash flows will help fund the $430 million Cowal open-pit continuation project, extending mine life to 2042. 

“Cowal is probably our number one asset. It’ll be able to fund that cashflow required for the project and still generate cash for the business,” Lawrie said.

Capital discipline and strategic flexibility

Evolution reduced gearing from 33% two years ago to 15% today, while investing $1.1 billion in growth projects and nearly tripling the dividend. 

“That’s $400 million we’ll pay out this year in dividends… about 31% of all the dividends that we’ve paid out to date in one year", said Conway. 

On M&A, the company remains open but patient: “We believe having up to eight [assets] in the portfolio is about the right size and scale, but we don’t have to rush out… every one of our assets has got either mine life extension or expansion opportunities.”