(ASX EVN) presented its financial performance and FY 2019 guidance today. The presentation was done at the Bank of America Merrill Lynch Global Metals, Mining & Steel Conference in Barcelona today. Since the presentation, the EVN share price rallied more than 7%.
Evolution Mining improved portfolio quality and, high margins on long-life assets, and EBITDA margin of 48% for the H1 FY 2019.
About Evolution Mining
Evolution Mining Ltd (ASX EVN) is Australia’s premier gold mining company. It owns and operates five gold operations in Queensland, New South Wales, and Western Australia.
It has high-quality assets named Cowal in New South Wales, Cracow, Mt Carlton, Ernest Henry, and Mt Rawdon in Queensland, and Mungari in Western Australia.
The company was founded in 2010 and has been evolving ever since.
Mining & Steel Conference Presentation
In the half-yearly presentation, Evolution Mining reported that it has a clear and consistent strategy. It has upgraded its portfolio asset quality, reduced costs, and grown free cash flow per share.
The positive outlook led to the leap of more than 7% in the EVN share price.
The EBITDA margin for H1 FY 2019 was reported to be 48%, with assets generating high returns of up to 23% per annum. The company was proud to announce that Mt Carlton and Cracow have fully repaid all the invested capital.
Financially, Evolution Mining has balance sheet liquidity of AUD 606 million, with a cash balance of AUD 256 million.
The net bank debt is at AUD 74 million as the company has repaid AUD 879 million of debt since FY 2015. With most of the debt already paid back, the earnings will now be distributed as dividends to shareholders.
The financial guidance for FY 2019 looks promising with total gold production aimed at 720,000 to 770,000 oz and all-in sustaining cost of AUD 850-900 per oz. The company also presented positive guidance for three years 2019 to 2021 and a promising production target.
Evolution Mining remains committed towards environmental enhancement and socio-economic contributions with its environment enhancement projects, environment management plans, and environment compliance policies.
Dividend Policy of Evolution Mining
Evolution Mining (ASX EVN) has consistently paid to its shareholders. The dividend per share was reported to be AUD 0.03, AUD 0.035, AUD 0.04, and AUD 0.035 for the last four quarters, respectively.
This indicates a high dividend yield for shareholders of the company. The company has repaid most of its debt, so the earnings are largely distributed among the shareholders as dividends.
The stock of Evolution Mining (ASX EVN) is a good buy at the moment as the company is demonstrating growth in terms of financial and overall asset quality.
It looks to be a good investment looking at both long-term and short-term returns. The company is experiencing an upward trend both in terms of the EVN share price and dividend payout.
The future outlook for the next three years is also promising based on production guidance, AISC guidance, sustaining capital guidance, and major project capital guidance.
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