Evolution Mining's (ASX:EVN) fiscal first-half results surpassed estimates, driven primarily by the accounting treatment of payments from Canada-based Triple Flag Precious Metals (TPFM), according to a Thursday note by Jarden Research.

The company reported Wednesday that its earnings per diluted share in the fiscal first half rose to AU$0.1832, from AU$ 0.0521 per diluted share a year earlier. Analysts polled by Visible Alpha were expecting EPS of AU$0.16.

Total revenue for the six months ended Dec. 31, 2024, was AU$2.03 billion, up 52% from AU$1.34 billion in the same period last year. Analysts surveyed by Visible Alpha expected AU$1.97 billion.

Under a streaming agreement, known as Triple Flag stream, TPFM is expected to make ongoing payments to EVN equal to 10% of the spot metal price for all metals delivered to TPFM from the company's Northparkes project in New South Wales.

Jarden believes that consensus accounting treatment of this revenue from TPFM drove EVN's outperformance for the day.

The investment firm modeled the revenue from the Triple Flag stream by accounting for the ongoing payments as an obligation and believes this calculation explained the Visible Alpha Revenue estimate miss.

Jarden maintained Evolution Mining's underweight rating but lowered its price target to AU$4.68 from AU$4.72.

Shares of the firm rose 2% in recent Friday trade.