Evolution Mining dishes out dividend from overflowing gold coffers as metal stokes record profit

Evolution Mining stock was on a tear after doubling half-year net profit to $767 million and adding an extra 13¢ to shareholder spoils, setting the scene for another bumper season for gold miners.

Off the back of a searing precious metals run in 2025, the Sydney-headquartered miner will tip $545m into building a new underground mine at its Northparkes operation in New South Wales, and $160m into a new deposit at Ernest Henry in Queensland.

Despite a slight pullback in gold production — down 6 per cent to 364,936 ounces during the six months to December — earnings before interest, depreciation and amortisation rose 59 per cent to $1.6 billion.

Evolution’s coffers swelled to $967m by the end of December, adding further to the cash piles listed gold miners have amassed during the commodity’s record streak. Among recent market updates, Regis Resources noted it had a cash and bullion balance of $930m as at December 31, while Greatland Resources had $948m for the same period.

Gold finished 2025 having posted its biggest jump since 1979, which translated to a 48 per cent rise in achieved gold prices for Evolution from $3875/oz to $5726.

That drove another record statutory after-tax profit for the business of $767m. Net mine cashflow rose 161 per cent to just over $1b.

Shareholders are set to see an extra 13¢ per share added to their fully-franked dividend as a result of the strong performance, taking their interim payout to 20¢.

By RBC Capital Markets analyst Alex Barkley’s estimates the dividend represents about 67 per cent of the group’s free cashflow — above Evolution’s historical 50 per cent payout ratio — and beat the investment bank’s expectation of a 16¢ per share payout.

The move will pose questions for how other cashed-up gold miners reward their shareholders. Gold prices took a sharp dip at the end of January after surging to a record and have since been hovering around the $US5000/oz mark.

Shares in Evolution had gained 8.3 per cent shortly before the close at $16.23 for a $32b market capitalisation. The stock is is up 159 per cent on this time last year.

The rise has also buoyed the paper wealth of founding shareholder Jake Klein, whose stake in the miner would be worth more than $177m as of Wednesday, pushing him further up the list of executives making bank as a result of the gold rush.

All-in sustaining costs also moderated slightly, from $1556/oz during the same half in the prior year to $1493/oz.

Evolution managing director and chief executive Lawrie Conway said the miner’s performance reflected its “ability to capture the upside in a favourable metal price environment”.

“Our record dividend of 20¢ per share meets our commitment to reward shareholders in the current high metal price environment<” Mr Conway said.

“With a clear pipeline of high return projects now advancing, we’re positioned for strong, sustainable growth while continuing to return capital to shareholders.”

Evolution recently upgraded its sole WA asset, Mungari, to double its mill capacity from 2 million tonnes per annum to 4.2mtpa under a $250m expansion, which ended up coming in under budget at $250m.

Full-year production is expected to land between 175,000oz and 190,000oz.

Australia’s biggest locally domiciled gold producer Northern Star Resources is due to post its half-year results on Thursday.