Evolution Mining has announced a lower-than-average performance for the first half of FY27. The ASX-listed miner has issued its quarterly report for the 33 months to 14 October 2026. It mined 154koz of gold and 18kt of copper in its Australian and Canadian operations.
Overall, however, group AISC finished at $1,653/oz, which was lower than the low end of the guidance. According to Evolution Mining’s quarterly report, the miner is on track for all key FY27 measures, Lawrie Conway said at the time of the report.
Evolution Mining Cost Outlook Holds Firm
The Evolution Mining cost outlook is unchanged after the first quarter. For FY27, guidance was continued at a group level for all measures. AISC was trading at $1,653/oz, one of the lowest prices in the industry, as reported by the company. Spending was held down due to copper exposure and cost discipline. The AISC margin increased to 73% compared to 71% in the June quarter.
Prices also helped. The gold price achieved was $6,115/oz, 3% up from the previous quarter. A record was made with a price of $20,876/,t which was 8% higher. Evolution is10 per cent unhedged and will maintain a full exposure to both metals. AISC guidance is based on $5 700/oz gold price and $18 000/t copper price.
Evolution Mining reported an AISC margin of 73% for its September 2026 quarter.
Evolution Mining Gold Production Slips on Weather and Power
Evolution Mining gold production fell to 154koz, from 180koz in the June quarter. The high-quality underground ore was not easily accessible due to heavy rain in August at Cowal. Crews took from llower-gradestockpiles to produce 65koz of Cowal. A new underground mining contractor also started during the quarter. Ramp-up was the typical issue of a contractor changeover.
Two other sites were affected by power issues. No power interruptions were planned, and Mungari managed to produce 40koz as a result of several unauthorised outages. About 60 unplanned external outages at Red Lake negatively affected mining and mill stability, with the AISC increasing to $3,172/oz.
Production there slowed to 21koz, and AISC dropped to $4,349/oz, but management projects an increase in quarters to come, with the production weighted to the second half of the year.
Evolution Mining Gold Margins Drive Strong Cash Flow
With very strong margins came very solid cash generation as highlighted by these September quarter numbers:
- The difference between operating and net mine cash flow was $775M and $466M, respectively.
- All operations recorded a positive net mine cash flow in the quarter.
- The record net mine cash flow was set by Ernest Henry at $186M.
- Group cash flow was at $185M or $1,185/oz.
Growth Projects Stay on Schedule
According to management, its organic projects are on schedule and on budget. On this page, you can see where they are now:
- $72M (Evolution share) was approved by the Board for the Northparkes Concentrate Regrind and Filtration Project.
- The goal for that project is to increase the gold and copper recovery by 2% and 1,% respectively.
- The expected returns are in the range of 30-37%, and completion is expected by Q1 FY29.
- There is no change in the Cowal OPC budget of $430M over seven years to FY31.
- At Ernest Henry, the Bert project’s mining contractor is now on site.
Balance Sheet, Exploration and Corporate Moves
The balance sheet improved, and the deals and exploration continued:
- Net cash increased to $141M, reflecting a cash balance of $1,470M.
- The total liquidity stood at $1,995M, including the undrawn $525M credit facility.
- Drilling at Ernest Henry hit 61.3m @ 1.26% Cu and 0.77g/t Au.
- Shareholders of Carnaby Resources will vote on 26 October, and the results will be finalised by around mid-November.
- On 2 October 2026, a record 21 cent dividend, valued at $429 million, was paid.
Also Read: Strata Minerals Defines Maiden 42,000oz Zelica Gold Resource
Frequently Asked Questions
Q1: What were Evolution Mining’s AISC for the September 2026 quarter?
A1: Group AISC was $1,653/oz. That was a 73% margin, which was less than the bottom of the range.
Q2: What value was Evolution Mining’s production of gold?
A2: It yielded 154koz of gold and 18kt worth of copper. Gold production fell below 180koz in the June quarter.
Q3: What caused a decrease in production?
A3: Mungari and Red Lake were affected by power failures, and Cowal was hit by heavy rain during August. Mungari yielded 40koz while Red Lake yielded 21koz.
Q4: How does the business have cash available?
A4: Cash stood at $1,470M, with net cash of $141M. The total value of liquidity was $1,995M.
Disclaimer:
This article is based on the Evolution Mining September 2026 quarterly report and is for general information purposes only. It is not financial advice and/or investment advice. Production and cost/cash flow data are unaudited, forward-looking statements, including those in the FY27 guidance, and involve risks including commodity prices, weather and power. Investors are advised to seek the advice of a licensed adviser before taking a decision on EVN shares.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
