PERTH (miningweekly.com) – Gold miner Evolution Mining has reported record profits and earnings before interest, taxes, depreciation and amortization (Ebitda) for the half-year ended December.

Statutory net profits for the six months under review increased by 55% on the previous corresponding period, to A$228.7-million, while underlying net profits increased by 57%, to a record A$234-million.

Ebitda for the six months to December also increased by 17%, to a record A$514.6-million, while mine operating cash flows increased by 4%, to a record A$5312.2-million, and net mine cash flow by 1%, to a record A$353.9-million.

“These record half-year financial results continue to demonstrate the quality of Evolution’s asset portfolio. Our ongoing focus on margin has ensured we remain sector leaders in terms of Ebitda margins and free cash flow per ounce,” said executive chairperson Jake Klein on Wednesday.

Gold production for the interim period reached 350 326 oz, at an all-in sustaining cost of A$1 182/oz.

“The fully franked interim dividend of 7c a share is our sixteenth consecutive dividend and reflects the priority we place on ensuring our shareholders benefit from our high cash generation. Importantly, the outstanding discovery success we have had at growing the mineral resource and ore reserves at our key long life, high margin assets reflect the sustainability of this strong cash generation,” Klein said.

Evolution has reported a 49% increase in ore reserves year-on-year, to 9.9-million ounces, while mineral resources increased by 74%, to 26.4-million ounces.

The Evolution board has approved the development of the Galway exploration decline, at its Cowal operation, which is the mine’s second decline and this will enable additional drilling to increase underground ore reserves, and will be used for future production.

The 2 300 m decline has already received regulatory approval.

Evolution during the interim period also submitted the significant state development application and the modification development application to the New South Wales Department of Planning, Industry and Environment for the development of the Cowal underground mine.

Evolution last year announced a maiden underground ore reserve of 804 000 oz for the underground operation, with the mineral resource increasing to 2.9-million ounces.

The underground operation is expected to have a production rate of between 1.5-million and 2-million tonnes a year, which would supplement the openpit feed and support Cowal production reaching more than 300 000 oz/y.