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Income tax expense lowers Evolution H1 profit

15th February 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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JOHANNESBURG (miningweekly.com) – Australian gold miner Evolution Mining on Wednesday reported a 10% decrease in half-year statutory after-tax profit of A$122.5-million, owing to a higher income tax expense.

The miner, which operates five mines in New South Wales, Queensland and Western Australia, explained that it had used all unrestricted tax losses during the 2017 financial year, and that its income tax expense in the first half of 2018 had increased by A$68.2-million.

Profit before tax surged by 45% to A$175.1-million, driven by lower unit costs, which were offset by a lower achieved gold price. All-in sustaining costs (AISC) decreased by 20% from the December 2016 half-year to A$785/oz.

Underlying after-tax profit increased by 9% to A$124.7-million, from A$114.9-million in the first half of 2017. Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 16% to A$399.1-million.

“These half-year financial results continue to demonstrate the quality of Evolution’s asset portfolio and consistent operational performance. A 20% decline in the AISC contributed to higher Ebitda margins of 53% and a 20% increase in group cash generated to A$176.8-million,” executive chairperson Jake Klein said.

Operating mine cash flows totalled A$415.1-million, representing a 22% year-on-year improvement. Total capital expenditure (capex) declined by 3% to A$122.6-million in the six months under review.

The net mine cash flow increased by 37% to A$292.5-million, after all capex. The major contributors were Ernst Henry (A$107.4-million), Cowal (A$87.3-million) and Mt Carlton (A$57.5-million).

Evolution produced 407 459 oz in the half-year and is aiming for 750 000 oz to 805 000 oz in the full year, at an AISC of A$820/oz to A$870/oz.

 

Edited by Creamer Media Reporter

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