Evolution Mining Ltd's Dividend Analysis
Assessing the Upcoming Dividend and Financial Health of Evolution Mining Ltd
Evolution Mining Ltd (CAHPF) recently announced a dividend of $0.02 per share, payable on 2024-04-05, with the ex-dividend date set for 2024-02-27. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Evolution Mining Ltd's dividend performance and assess its sustainability.
What Does Evolution Mining Ltd Do?
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Evolution Mining is an Australian-based gold miner. It sold around 650,000 ounces of gold in fiscal 2023 from five wholly owned mines in Australia and Canada. Formed in 2011 via the merger of Conquest Mining and Catalpa Resources and the purchase of Newcrest Mining's Mt Rawdon and Cracow mines, Evolution has acquired more mines and sold the generally less attractive, higher-cost mines. Cowal and Mungari were purchased in 2015, with an initial interest in Glencore's Ernest Henry mine following in 2016, Red Lake in Canada in 2020, the rest of Ernest Henry in 2022 and an 80% stake in the Northparkes copper and gold mine in December 2023. It had roughly 15 years of gold reserves at the end of December 2023.
A Glimpse at Evolution Mining Ltd's Dividend History
Evolution Mining Ltd has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Evolution Mining Ltd's Dividend Yield and Growth
As of today, Evolution Mining Ltd currently has a 12-month trailing dividend yield of 1.31% and a 12-month forward dividend yield of 1.32%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Evolution Mining Ltd's annual dividend growth rate was -27.30%. Extended to a five-year horizon, this rate increased to -2.60% per year. Based on Evolution Mining Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Evolution Mining Ltd stock as of today is approximately 1.15%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Evolution Mining Ltd's dividend payout ratio is 0.45. Evolution Mining Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Evolution Mining Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Evolution Mining Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Evolution Mining Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Evolution Mining Ltd's revenue has increased by approximately 3.10% per year on average, a rate that underperforms than approximately 69.98% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Evolution Mining Ltd's earnings increased by approximately -23.30% per year on average, a rate that underperforms than approximately 76.98% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -5.00%, which underperforms than approximately 77.25% of global competitors.
Next Steps
In conclusion, while Evolution Mining Ltd's dividend payments remain consistent, the declining dividend growth rate and underperforming growth metrics may raise concerns for investors looking for long-term dividend sustainability. However, the company's solid profitability rank and moderate payout ratio suggest that it has the ability to maintain its dividend payments in the near term. As the mining industry faces various challenges and opportunities, Evolution Mining Ltd's strategic initiatives and resource management will play a crucial role in shaping its future dividend prospects. Investors should continue to monitor the company's financial health and industry trends to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
