The Evolution Mining Ltd (ASX: EVN) share price is down 3.8% in early trade on Thursday.
Shares in the S&P/ASX 200 Index (ASX: XJO) gold miner closed yesterday trading for $3.53. At the time of writing, shares are swapping hands for $3.40.
For some context, the ASX 200 is down 1.13% at this same time.
This comes following the release of Evolution's full-year results for the financial year ending 30 June (FY23).
Read on for the highlights.
Evolution Mining share price slides as dividends cut
- Statutory net profit after income tax (NPAT) of $164 million, down from $323 million in FY22
- Underlying NPAT of $205 million, down from $275 million in FY22
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $845 million, down from $899 in FY22
- Final dividend of 2.0 cents per share, fully franked, down from 3.0 cents per share in FY22
What else happened during the year?
Evolution Mining produced 651,155 ounces of gold in FY23 at an all-in sustaining cost (AISC) of $1,450 per ounce (US$1,033 per ounce).
95% of production is unhedged, potentially enabling the miner to benefit from rising gold prices. And gold production was up from the 640,275 ounces delivered in FY22.
But costs were also up from FY22's AISC of $1,259 per ounce (US$914 per ounce), potentially throwing up some headwinds for the Evolution Mining share price today.
EBITDA margins also contracted to 38%, down from 44% the prior year.
Operating mine cash flow increased to $944 million, up from $893 million in FY22.
And the ASX 200 gold miner completed a debt restructuring, which management said resulted in additional balance sheet flexibility without increasing the company's overall debt level.
On the sustainability front, the miner continued to progress on its net zero commitment, achieving a roughly 9% reduction in its absolute emissions compared to the FY20 baseline.
Separately, Evolution Mining reported today on a further increase in the mineral resource at its Ernest Henry project. The miner announced an increase of 120,000 ounces of contained gold and 89,000 tonnes of contained copper prior to mining depletion, compared to the 31 December 2022 mineral resource estimate.
What did management say?
Commenting on the results that look to be pressuring the Evolution Mining share price today, Lawrie Conway said:
We are well placed to deliver on our FY24 strategic objectives given the position of the business at the end of FY23. The FY23 results were impacted by a number of external events partially offset by higher metal prices.
What's next?
Looking at what might impact the Evolution Mining share price in the year ahead, Conway said:
In FY24, planned lower capital expenditure profile, anticipated lower all-in sustaining cost and higher production levels will see us move to stronger cash generation.
This is underpinned by the move into commercial production of our recent projects at Cowal and Red Lake, and the resumption of normal operations at Ernest Henry.
Evolution Mining share price snapshot
Despite today's dip, the Evolution Mining share price remains up 26.5% since this time last year.
