Evolution Mining posted record annual profit and dividend, buoyed by a sharp rise in gold and copper prices, and announced plans to increase its dividend payout ratio.

The miner on Wednesday reported a net profit of 1.48 billion Australian dollars, equivalent to US$1.05 billion, for the fiscal year ended June 30, up from A$926.2 million a year earlier. Directors declared a final dividend of 21 Australian cents a share, up from 13 cents a year ago.

Both were record highs owing to a surge in metal prices. Evolution was paid 25% more for its copper than a year earlier, and 40% more for its gold.

Analysts had projected a net profit of A$1.59 billion and a final dividend around 23 Australian cents, according to consensus estimates collated by Visible Alpha.

The miner's board approved an updated dividend policy targeting a payout of 60% of group cash flow, up from 50% previously.

"This improvement over the previous policy ensures shareholders benefit from the exceptional cash flows being generated by the business," the company said.

Among its guidance for fiscal 2027, Evolution forecast gold production of between 660,000 and 730,000 troy ounces. That compares to gold output of 715,000 ounces in fiscal 2026, down 5% on year, and consensus expectations of 704,000 ounces.

Evolution's guidance signals it can sustain its "high-margin, high-cash generation position," said Chief Executive Lawrie Conway.

"This will further build our balance sheet flexibility as we continue to invest in high-return organic growth projects and deliver high returns to our shareholders," he said.