Evolution Mining shares: After a year of outperformance, is it still a buy?

Is this a good time to jump on the gold miner?

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Key points

  • Evolution Mining's share price has surged 100% over the last year, driven by a strong performance in the gold market, with significant contributions from its fully-owned and partially-owned mines.
  • The company's latest quarterly update highlights a core net mine cash flow of $366 million, enabling it to reduce debt significantly, balance its financial position with $780 million in cash, and present an upside cash flow projection of $570 million.
  • Analyst opinions on Evolution Mining are mixed, with most suggesting that the stock may be fairly or over-valued; price targets vary widely, indicating uncertainty about the stock's future performance.

The Evolution Mining Ltd (ASX: EVN) share price has been one of the strongest performers in the S&P/ASX 200 Index (ASX: XJO) over the last year, rising approximately 100%.

The business currently operates six months, with five of those being wholly-owned. That includes Cowal in New South Wales, Ernest Henry and Mt Rawdon in Queensland, Mungari in Western Australia and Red Lake in Ontario, Canada. It also as an 80% share of Northparkes in New South Wales.

Gold miners have benefited significantly from the huge increase in the gold price – miners can deliver significant operating leverage because of how additional revenue for their production can significantly add onto the net profit because costs don't go up at the same speed.

The ASX gold share is capitalising

The company recently released its update for the three months to September 2025, which revealed cord net mine cash flow of $366 million.

Evolution Mining is using this big uptick in profits to reduce debt. Gearing is now at 11% and all bank terms are now repaid after the end of the quarter. Its cash balance increased to $780 million after debt repayments of $170 million during the quarter.

The ASX gold share said its projected upside for cash flow is around $570 million based on the current (at the time of the announcement) spot gold and copper prices.

But, the company has already risen strongly, so it's worthwhile asking whether this is the right time to consider buying the ASX gold share or not.

Mixed ratings on the Evolution Mining share price

After a very strong run-up of the Evolution Mining share price, the ASX gold share appears to have grown into (or beyond) a fair valuation, according to most analysts.

A collation of analyst ratings on the business by CMC Markets says there is currently one buy rating, five hold ratings and seven sell ratings on the business. That certainly suggests that experts are more pessimistic than optimistic at this stage.

Of those analysts, the average price target is $9.89, which suggests a possible decline of more than 5% from where it is today. A price target says where analysts think the share price will go in 12 months from now.

But, there is a significantly wide gap between what experts think could happen next.

One analyst's price target suggests the Evolution Mining share price could keep rising to $12.35 while another one implies a possible decline all the way back to $6.70. Time will tell who is right.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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