Evolution Mining Issues 16.7 Million Shares at $8.73 in Dividend Reinvestment Plan

Dividend Reinvestment Plan Details

Evolution Mining Limited has revealed the pricing and participation details for its Dividend Reinvestment Plan (DRP) tied to the fully franked final dividend for the fiscal year ended 30 June 2025. The DRP price was calculated at $8.7298 per share, reflecting a 5% discount to the volume weighted average price of Evolution shares over the five trading days following the dividend record date. This discount is a common incentive to encourage shareholders to reinvest dividends back into the company.

Participation in the DRP was notably strong, with 55.65% of Evolution’s ordinary shares electing to reinvest their dividends. This level of engagement translates into the issuance of approximately 16.7 million new shares, a significant capital event that will slightly expand the company’s share base. The new shares are expected to be allocated on 3 October 2025, coinciding with the payment of the final dividend to shareholders who opted out or partially participated in the DRP.

Implications for Shareholders and Capital Structure

The DRP’s pricing mechanism and participation rate suggest a healthy shareholder confidence in Evolution Mining’s prospects. By offering a 5% discount, the company balances rewarding shareholders with maintaining share price stability. The issuance of new shares will dilute existing holdings to some extent, but the reinvestment supports Evolution’s capital base without the need for external financing.

Shareholders who chose not to participate will receive a final dividend of 13 cents per share on the same date, providing a direct cash return. This dual approach caters to different investor preferences, whether seeking income or growth through reinvestment.

Production Guidance and Operational Outlook

Alongside the DRP announcement, Evolution Mining reaffirmed its production guidance for the 2026 financial year. The company expects to produce between 710,000 and 780,000 ounces of gold, alongside 70,000 to 80,000 tonnes of copper. These targets come with an All-in Sustaining Cost (AISC) range of $1,720 to $1,880 per ounce, a key metric reflecting the cost efficiency of its mining operations.

Operating six mines across Australia and Canada, including wholly owned sites like Cowal and Ernest Henry, Evolution remains a significant player in the gold mining sector. Maintaining steady production guidance signals operational stability amid fluctuating commodity markets.

Looking Ahead

As the DRP shares are allocated and the final dividend paid in early October, investors will be watching closely for any market reaction to the increased share count and the company’s ongoing operational performance. Evolution’s ability to sustain production and manage costs will be critical in supporting its share price and dividend policy going forward.