- Evolution Mining’s (EVN) share price dips after the company releases its June quarterly report, proposing a subdued final dividend payment
- EVN shareholders can expect final dividends of between 4 cents and 6 cents per share, its lowest offer in around two years
- The company ended June with $160.1 million in the bank and net debt of $620 million after it completed its purchase of Battle North Gold
- EVN’s gold mines produced a total of 169,146 ounces over the quarter and 660,788 ounces at the end of FY21, slightly below its guidance
- Company shares are trading down 4.95 per cent at $4.71
Evolution Mining’s (EVN) share price has dipped after the company released its June quarterly report, proposing a subdued final dividend payment.
EVN shareholders can expect final dividends for FY21 of between 4 cents and 6 cents per share, its lowest offer in around two years.
The company previously awarded an interim dividend of 7 cents per share in March and a final dividend for FY20 of 9 cents per share.
In terms of financials, the gold producer ended June with $160.1 million in the bank and net debt of $620 million.
The balance comes after EVN completed its purchase of Battle North Gold, spending just over $350 million buying the mining stock.
The company’s gold mines produced a total of 169,146 ounces of gold over the quarter, with an all-in sustaining cost of $1239 per ounce.
That took its entire gold production for FY21 to 660,788 ounces, which is towards the bottom end of expectations — 2 per cent below the production guidance of 695,000 ounces.
Looking ahead, EVN’s board has approved the development of the Cowal underground mine in NSW.
Executive Chairman Jake Klein said production was also planned to increase by at least 30 per cent, to over 900,000 ounces, during the three-year period to FY24.
“Cowal is undoubtedly a world-class asset and a key asset in the Evolution portfolio. Today, the Board has approved the development of an underground mine that contributes to our goal of Cowal producing 350,000 ounces of low-cost gold a year and extend its mine life out beyond 17 years,” Mr Klein said.
“The Board has also approved a plan that accelerates the restoration of Red Lake to a premier Canadian gold mine producing low-cost gold in excess of 350,000 ounces per year.
“Both operations demonstrate the outstanding organic growth opportunities within Evolution’s portfolio that will grow production by 35 per cent to over 900,000 ounces of low-cost gold over the next three years.”
Following Friday’s wide-ranging quarterly update, company shares were trading down 4.95 per cent at $4.71 per share at 1:33 pm AEST.