Evolution Mining Ltd (EVN.AU) shares plummeted 5.03% during intraday trading on Wednesday, as the gold miner faced selling pressure following a negative analyst assessment.

Morningstar trimmed its fair value estimate for Evolution Mining by 4% to A$4.5, noting that gold prices continue to fall and gold miners' shares remain expensive, trading at 30% to 180% above fair value. The investment research firm also reduced fair value estimates for other Australian gold miners including Northern Star Resources and Perseus Mining.

The broader gold mining sector has been under pressure, with the ASX Gold Index down 16.2% so far this year as of the last close. Morningstar noted that despite recent declines, gold prices are still up about 150% since late 2022 on worries over tariffs, geopolitical issues, Western government fiscal deficits and debt levels, and a weaker U.S. dollar.