Tax expense crimps gold miner's profit

Evolution Mining's first-half profit has slid 10 per cent to $122.5 million as the gold miner's tax expense grew, though shareholders will still get a higher dividend.

Evolution said it used all of its unrestricted tax losses in the 2016/17 financial year, meaning its tax expense in the six months to December 31 was $68.2 million higher than in the prior corresponding period.

The miner's profit before tax rose 45 per cent to $175.1 million, driven by increased sales and a 20 per cent fall in costs.

Evolution owns three mines in Queensland, one in NSW and another in Western Australia, and has a stake in a copper and gold mine in Queensland.

The company's production dropped four per cent from a year earlier to 407,459 ounces of gold, while costs of $785 per ounce were down from $978 per ounce.

Evolution expects to produce 750,000 to 805,000 ounces of gold for the full year, at a cost of $820 to $870 per ounce.

Shares in Evolution Mining were up 8.5 cents, or 3.1 per cent, at $2.875 at 1445 AEDT.

TAX COSTS HURT EVOLUTION MINING'S PROFIT

* First-half net profit down 10pct to $122.5m

* Revenue up 10pct to $782.1m

* Interim dividend up 1.5 cents to 3.5 cents, fully franked

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