PERTH (miningweekly.com) – Gold miner Evolution Mining is expecting a stronger financial result in the second half of the 2019 financial year, after reporting a 26% fall in after-tax net profit during the six months to December.

Evolution on Wednesday reported a net profit of A$91.1-million, compared with the A$122.5-million in the previous corresponding period, and an underlying net profit after tax of A$92.2-million, down from A$124.7-million in the first half of 2018.

Revenue for the first half was also down by 3%, from A$782.1-million to A$756.2-million.

The miner told shareholders that the lower profit was driven predominantly by the impact of noncash related items, which reduced profits before tax by some A$35.3-million, while cash-related items reduced profits before tax by A$11.3-million.

These charges were partially offset by lower tax expenses and the impact of the divestment of the Edna May operation, which added A$3.7-million to the bottom line.

Earnings before interest, taxes, depreciation and amortization (Ebitda) for the half-year reached A$359.7-million, compared with the A$399.1-million in the previous corresponding period, with an Ebitda margin of 48%, compared with the 53% in the first half of 2018.

“These half-year financial results continue to demonstrate the quality of Evolution’s asset portfolio,” said executive chairperson Jake Klein.

“The exceptionally strong mine operating cash flow of over A$1 000/oz has allowed us to invest heavily in capital projects that will extend mine life and deliver additional high margin ounces.

“We are also increasing our investment in exploration with the ongoing success of the discovery programmes at Cowal and Mungari. Importantly, we have maintained our commitment to return excess cash to shareholders via our interim dividend of 3.5c a share, fully franked,” said Klein.

During the first half of the year, Evolution produced 382 214 oz of gold at an all-in sustaining cost of A$928/oz, with the miner maintaining full-year production and cost guidance for the remainder of the year.

At the end of December, Evolution had a cash balance of A$313.6-million.