Why is the Evolution Mining share price on the rocks today?

Evolution Mining Ltd (ASX: EVN) shareholders might be wondering why the share price is losing ground today.

The gold miner posted its full-year results on 18 August, reporting a mixed performance across key financial metrics.

Subsequently, the board elected to slash its final dividend by 40% to 3 cents per share.

At the time of writing, the Evolution Mining share price is down 1.48% to $2.335 apiece. That means it has slipped by 13% since the release of the FY 2022 results.

Let’s take a look below at why its shares are falling during morning trade.

What’s weighing down Evolution Mining?

Following the release of the company’s FY 2022 results, investors are offloading Evolution Mining shares as they go ex-dividend today.

The ex-dividend date is particularly important as it determines which shareholders will receive the company’s latest dividend.

If you held Evolution shares at yesterday’s market close, you will be eligible for the fully franked final dividend.

Typically, when a company’s shares trade ex-dividend, the share price tends to fall in proportion to the dividend paid out. However, this can vary depending on how the market is tracking for the day as well as investor sentiment.

For those eligible for Evolution’s final dividend, you’ll will receive a payment on 30 September.

This brings the total dividend for FY 2022 to 6 cents per share, reflecting a 50% reduction from the 12 cents per share declared in the prior corresponding year.

The company’s dividend policy is, whenever possible, to pay a dividend based on group cash flow generated during a year. The policy is targeting a payout ratio of around 50% of cash flow per annum.

Furthermore, the dividend reinvestment plan (DRP) remains suspended with no indication from the board when it will return.

Evolution Mining share price summary

In 2022, the Evolution Mining share price has come under strong selling pressure as the price of gold continues to retreat. Its shares are down 43% year-to-date.

In comparison, the S&P/ASX 200 Resources (ASX: XJR) sector has travelled the other way, up 7% over the same period.

Based on today’s price, Evolution commands a market capitalisation of approximately $4.59 billion and has a dividend yield of 3.20%.

The post Why is the Evolution Mining share price on the rocks today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Hoping to bag the next Evolution Mining dividend? Here’s what to do
• 3 ASX 200 shares trading ex-dividend on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• Can the gold price outshine sticky inflation?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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