Evolution Mining has moved into a net-cash position as the gold and copper producer seeks to convert its financial strength into a production advantage while developing several projects.
After ending the 2026 financial year (FY26) with record cash flow and entering a net cash position, the gold and copper producer has entered an investment-heavy period across several of its Australian operations.
Its growth pipeline includes new mining areas at Cowal, the E22 block cave, processing improvements at Northparkes, and the development of the Bert deposit at Ernest Henry.
Evolution generated record group cash flow of $1.39 billion in FY26, up 76 per cent from the previous year. Net mine cash flow more than doubled to $2.08 billion, while statutory net profit increased 59 per cent to $1.48 billion.
The company produced 714,728oz of gold and 65,636 tonnes of copper during the year at an all-in sustaining cost of $1717/oz. The company finished September with $1.47 billion in cash and a net-cash position of $141 million, while its major organic projects remained on schedule and budget.
The miner invested almost $1.090 billion in total capital across its portfolio during FY26, including $849.8 million in major capital. That spending supported developments at Cowal, Northparkes and Ernest Henry, as well as the completion of the Mungari mill expansion.
Mungari provided an early indication of the potential returns from that investment strategy. The expanded 4.2-million-tonne-per-annum processing plant was commissioned ahead of schedule and completed for $212 million, below its original $250 million budget.
The Western Australian operation subsequently produced a record 186,115oz during FY26, up 38 per cent, while operating mine cash flow increased from $228.5 million to $651.6 million.
At Cowal in New South Wales, Evolution is advancing a $430 million open-pit continuation project to establish four satellite pits alongside the existing operation. Ore mining began at E46, the first of those deposits, during the June quarter.
Cowal remains Evolution’s largest cash generator, contributing $851.7 million in net mine cash flow during FY26 despite gold production declining as the operation processed lower-grade stockpiles.
“Cowal delivered record cash generation in a year when we celebrated 20 years of continued operations, with the OPC Project set to underpin the operation’s future for many years to come. At Mungari, the successful commissioning and ramp-up of the expanded processing plant generated record production and cash flow, providing a platform for future growth across our Western Australian operation,” Evolution Mining managing director and chief executive officer Lawrie Conway said in the annual report.
The scale of Evolution’s copper ambitions is most evident at Northparkes and Ernest Henry.
The Northparkes investment builds on a record FY26 in which the operation generated $430.8 million in operating mine cash flow and $234.5 million in net mine cash flow.
At Ernest Henry in Queensland, development of the approximately $160 million Bert project is underway. The deposit is planned as a separate underground stoping operation that would use existing processing capacity, with first production targeted for FY29 and an estimated seven-year mine life.
“The strength of the copper market reinforces a strategic decision we made more than a decade ago to diversify our portfolio through our investment in Ernest Henry and, subsequently, Northparkes. At the time, we recognised the long-term role copper would play in global growth and the energy transition. That conviction remains unchanged today,” Evolution Mining chair Jake Klein said in the annual report.
“Consistent with that long-term view, we recently announced the proposed acquisition of Carnaby Resources and the Greater Duchess Copper Project. Located near Ernest Henry, the project represents a compelling opportunity to strengthen our position in the prospective Cloncurry region of Queensland and complement the significant organic growth opportunities already available within our existing copper business.”
Despite the slower operational start, Evolution maintained its FY27 guidance and generated $185 million in group cash flow.
Conway said the company expected its production profile to strengthen after the opening quarter.
“With a production profile that is set to grow in the quarters ahead, significant cash flows are expected in FY27,” he said.