Evolution is primarily a gold miner, but copper is growing by-product making up ~25% of its revenue, with the potential to increase this to ~40 %. They have also made acquisitions aimed at boosting their copper portfolio: e.g., the 80 % stake in the Northparkes NSW mine in 2023 which has notable copper production. For investors wanting exposure to copper via an ASX-listed miner with growth ambitions, EVN is a solid candidate.
We have successfully owned EVN for the above reasons but as we said its more of a gold play than copper which comes with its own risk. BHP only generates 1-2% of its revenue from the precious metal and although its not a case of pastures new we believe its unlikely they would consider EVN for its copper exposure after the rally in precious metals has driven EVN up 4-fold since early 2024.
- We would not buy EVN as a potential acquisition target of BHP, but we still believe it is a high quality Gold miner with a growing exposure to Copper.
MM is bullish towards EVN into 2026
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