Evolution Mining needs to "pause" and focus on generating as much value as it can from a strengthened portfolio of gold mines, argues shareholder Allan Gray.

Allan Gray, which cut its stake in Evolution from 6.2 per cent to about 3.3 per cent last year, says the gold miner should avoid the temptation to immediately replace its Pajingo gold mine, which it agreed to sell to Chinese-owned junior Minjar Gold this week.

Evolution has said it is comfortable with a portfolio of six to eight assets, and the sale of Pajingo would leave it with six. 

Speaking to the company's full year results on Wednesday, chairman Jake Klein said it was "continually looking" at potential acquisitions, but would only pounce on opportunities that improved the quality of its portfolio.

"I don't think the time to buy very cheap gold assets is here now and I hope they err on the 'six' end of the spectrum rather than the 'eight'," Allan Gray Australia chief investment officer Simon Mawhinney said.

"You can see Evolution's portfolio of assets is moving towards one of quite varied quality to one more of reasonably good if not very good quality assets. I would like to see a period of consolidation or pause, [see Evolution] get some more runs on the board and just carry on with the status quo for a while."

Mr Mawhinney said the company's history of well-timed acquisition and divestment decisions was an "absolute credit" to its management.

"I am more inclined to give this management team the benefit of the doubt, but still I think it would be wise for them to sit on their hands for a while," he said.

Mr Mawhinney's comments came as Evolution swung to a $24.35 million statutory net loss after tax for the full year, a steep deterioration from a profit of $100.1 million a year earlier, largely due to costs from three new acquisitions, impairments of goodwill and impairments on Pajingo.

However record production due to the integration of its new Cowal and Mungari operations, the recent strength in the gold price and continued cost reduction efforts saw the miner report a record underlying profit after tax of $226.9 million, up from $106.1 million a year earlier.

Revenue soared 100 per cent to $1.3 billion, including $720 million from the company's five existing operations which was an eight per cent increase on the previous corresponding period.

Evolution chief financial officer Lawrie Conway said the result gave the miner a "solid base" for the 2017 financial year, "where we will see the benefit of a full-year contribution from Cowal and Mungari, continued pressure on input costs, the gold price which is approximately $150 per ounce above the FY16 achieved price and lower interest expenses based on our lower debt level".

Chairman Jake Klein said there was potential for dividend payments to be boosted further if cash was not reinvested back into the business given its "positive outlook" for coming years.

"If prices stay where they are today and we generate the cash we are expecting we have said it is not our intention to build up large amounts of cash on the balance sheet," Mr Klein said.

Mr Klein's comments come less than two months after the company announced it would double its dividend rate to 4 per cent of sales revenue, a change reflected in its 2¢ per share final unfranked dividend.

Shares in Evolution, which have climbed more than 150 per cent over the past 12 months, closed 17¢ lower on Wednesday at $2.48.

Mr Klein said Evolution had not looked at packaging any of its other assets for divestment with Pajingo, although this was something it had previously considered. He said the sale process attracted strong interest, including from a number of locally-listed gold producers seeking to grow their portfolios.

Mr Mawhinney said the sale of Pajingo was a "positive development" and while Evolution's full-year result was "a little bit messy" what mattered was the company was generating very strong cashflow. The miner reported net mine cash flow of $428.2 million.