Slide 1: 2023 Investor Day Session 2 Presentation
ABN 74 084 669 036 Sydney Office P +61 2 9696 2900 F +61 2 9696 2901 Level 24 ASX Announcement 175 Liverpool Street Sydney NSW 2022 5 JUNE 2023 www.evolutionmining.com.au 2023 INVESTOR DAY SESSION 2 PRESENTATION Evolution Mining Limited (ASX: EVN) is today hosting an Investor Day. The entire event w
Slide 2: Investor Day - Session Two
INVESTOR DAY - SESSION TWO 1
Slide 3: Forward Looking Statement
FORWARD LOOKING STATEMENT These materials prepared by Evolution Mining Limited (“Evolution” or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend
Slide 4: Production Target
PRODUCTION TARGET Mungari Production Target and relevant proportions of Mineral Resources and Ore Reserves underpinning the Production Target The Mungari Production Target of 1.9Moz to 2.7Moz between FY24 and FY38 comprises 3% Proved Ore Reserves, 49% Probable Ore Reserves, 19% Indicated Mineral Res
Slide 5: Investor Day Agenda
INVESTOR DAY AGENDA 11.00am – 1.00pm AEST Session two Peter O’Connor Bob Fulker Bonnie Coxon Glen Masterman Jake Klein General Manager - Chief Operating Officer General Manager - Vice President - Executive Chair Investor Relations Cowal Discovery Welcome back Operations update – Cowal – Current Grow
Slide 6: Operations
OPERATIONS D EL IVER IN G SH A R EH O L DER R ET U R N S 5
Slide 7: Delivering Shareholder Returns
DELIVERING SHAREHOLDER RETURNS The Future1 Principles Qualities Red Lake +15 year mine life targeting +200kozpa Low and expansion once justified Accretive to Operating shareholders Mungari Risk 15 year mine life at ~155kozpa2 Improve (~200kozpa+ FY27-32) Geological portfolio Upside Ernest Henry qual
Slide 8: Red Lake
RED LAKE F O C U S O N M A R G IN, F R EE C A SH F L O W A N D PAYB A C K W H IL ST EA R N IN G T H E R IG H T TO G R O W 1 Red Lake 2 Mungari 3 Ernest Henry 4 Cowal 7
Slide 9: Six Months of Reflection
SIX MONTHS OF REFLECTION Roster harmonisation Alignment at all levels of the organisation Driving consistency through the operation Workforce aligned to performance linked bonus (quarterly performance bonus with positive cash trigger) Ensuring consistent supervision Supervisors aligned with
Slide 10: Red Lake Foundations in Place
RED LAKE FOUNDATIONS IN PLACE Fewer, focused, work areas in close proximity Current Three mining fronts and mechanised mining established Delivery Decoupled from Shaft operations Scaled to fit slide Cochenour Ramp Breakthrough 51 Level FY24 Campbell Ramp Breakthrough 11 Level FY24 Opening Campbell M
Slide 11: Foundations for Future Operations – Embracing Technology
FOUNDATIONS FOR FUTURE OPERATIONS – EMBRACING TECHNOLOGY Achieving Development Stabilising mined tonnes Implementation of short interval control Modern equipment, bigger fleet, drive Improved stope performance through Increased use of loader tele-remote and sizes improving consistency improved drill
Slide 12: Red Lake A Cornerstone Asset Earning the Right to Grow
RED LAKE A CORNERSTONE ASSET EARNING THE RIGHT TO GROW Red Lake Transforming to a cornerstone asset Acquired in 2020 Strategy consistent with the Evolution playbook Reasons for patient optimism Ernest Henry World class district Mt Rawdon Geological endowment ~12Moz in Mineral Resource1 Mungari
Slide 13: Mungari
MUNGARI U N L O C K ING L O N G T ER M R ET U R N S IN K A L G O ORL IE 1 Red Lake 2 Mungari 3 Ernest Henry 4 Cowal 12
Slide 14: Foundations Established Over Past 2 Years
FOUNDATIONS ESTABLISHED OVER PAST 2 YEARS Operational life = Reserves or Project Inventory / March Qtr annualised production Operational stability: Quarter on Quarter delivery 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Harmonised working structures $2,600 Agnew Standardised renumeratio
Slide 15: Mill Expansion Unlocks Significant Value
MILL EXPANSION UNLOCKS SIGNIFICANT VALUE 57000 Mungari Mill expansion – key enabler for region Key Design Criteria Conventional Crush and Grind circuit, with conventional technologies Throughput – 4.2Mtpa Metallurgical testing completed – outcomes favourable Gravity Recovery – ~50% Mill capa
Slide 16: 5Moz+ Endowment – Main Hubs
5MOZ+ ENDOWMENT 1 – 3 MAIN HUBS Discovery opportunity to sustain ~200kozpa to FY38+ Near-mine extension opportunities at Kundana supported by potential for discovery of new lodes Paradigm’s Arina lodes are open Drilling around regional open-pits such as Castle Hill will provide additional mi
Slide 17: Long Term Future on Solid Foundations
LONG TERM FUTURE ON SOLID FOUNDATIONS Current state Mill expansion project Future potential Key messages 2.0Mtpa 4.2Mtpa nominal 15-year mine life Simple plant design processing processing Reduced AISC capacity capacity Unlocks regional ~18% lower ore sources LOM Production Pathway to Average: 1
Slide 18: Ernest Henry Mine Extension PFS
ERNEST HENRY MINE EXTENSION PFS L IF E O F M IN E TO AT L EA ST 2 0 4 0 = U N R EC OGN ISED VA L U E 1 Red Lake 2 Mungari 3 Ernest Henry 4 Cowal 17
Slide 19: Performance Supports Investment in Extension
PERFORMANCE SUPPORTS INVESTMENT IN EXTENSION Resuming normal operations Ernest Henry production outcomes On track to normal operation by end of June 0 Reserve update – Gold and copper metal doubled Weather event -500 23.88 impacted Ore Reserve contained Copper up ~103% to 21.09 21.34 21.75 -
Slide 20: Doubling of Ore Reserve
DOUBLING OF ORE RESERVE Ore Reserve Ore Tonnes (Mt) Cu Metal (kt) Cu Grade (%) Au Metal (koz) Au Grade (g/t) December 2022 34.3 290 0.85 495 0.45 June 2023 Total 77.4 589 0.76 1,109 0.45 Change 126% 103% -10% 124% - Mineral Resource Ore Tonnes (Mt) Cu Metal (kt) Cu Grade (%) Au Metal (koz) Au Grade
Slide 21: Pre-Feasibility Key Attributes
PRE-FEASIBILITY KEY ATTRIBUTES Completed mining NPV of ~$690M for extension1 Pre-feasibility study design Capex ~$450M – $500M Available December 2022 Mineral Resource BERT Infrastructure and mine development Not yet committed and majority spend in FY27-28 1650 RL Crush and convey provides
Slide 22: Feasibility Approved to Progress
FEASIBILITY APPROVED TO PROGRESS Completed mining Feasibility Study to include: Pre-feasibility study design Available December 2022 Mineral Resource BERT Updated Mineral Resource and Ore Reserve Updated mine design, mining schedule, and cost estimate 1650 RL Future study Key threats and opp
Slide 23: Delivering Shareholder Returns
DELIVERING SHAREHOLDER RETURNS The Future1 Principles Qualities Red Lake +15 year mine life targeting +200kozpa Low and expansion once justified Accretive to Operating shareholders Mungari Risk 15 year mine life at ~155kozpa2 Improve (~200kozpa+ FY27-32) Geological portfolio Upside Ernest Henry qual
Slide 24: Cowal – Life of Mine to 2040
COWAL – LIFE OF MINE TO 2040 M O V I N G T O + 3 2 0 , 0 0 0 O U N C E P E R AN N U M O F S AF E , R E L I AB L E , L O W - C O S T P R O D U C T I O N
Slide 25: Cowal – Cornerstone Asset
COWAL – CORNERSTONE ASSET June 2015 June 2023 Ore Reserves 1.6Moz 4.3Moz1 Mineral Resources 3.4Moz 8.8Moz1 Mine life 2024 2040 Plant capacity 7.2Mtpa ~9.0Mtpa Sustainable, reliable, low-cost production Gold production 1.7Moz3 Successfully delivered the major capital project – Operating cash flow
Slide 26: Open Pit Mining
OPEN PIT MINING L AR G E O P E N P I T P R O V I D I N G Current operations – E42 Pit (Stage H) L O N G - T E R M O R E B AS E L O AD Mature operation performing well Increasing ore tonnes and grade Strip ratio of <1:1 Contributes significant proportion of mill feed until FY26 Generates
Slide 27: Underground Operations
UNDERGROUND OPERATIONS L AR G E H I G H E R G R AD E S TO P I N G M I N E PROVIDING LONG-TERM ORE SOURCE Surface infrastructure and underground mine development ongoing Currently being executed on schedule within $380M budget First stope ore delivered in Q2 FY23 ahead of schedule Over 8,000
Slide 28: Open Pit Continuation (OPC) Project
OPEN PIT CONTINUATION (OPC) PROJECT Study to extend open pit operations by ~10 years and total mine life by approximately two years to 2042 Production aligned to the completion of E42 stage H Flexibility in project development based on pit sequencing and Stage H stockpile availability E41W E46
Slide 29: Continued Growth Options From Reliable Asset
CONTINUED GROWTH OPTIONS FROM RELIABLE ASSET GRE46 Long Section – View West Pursuing growth to add additional Ore Reserves in near-term mining areas Infill drilling highlighting increased thicknesses and grades relative to GRUD0888 current Dalwhinnie model 39m (27.3etw) @ 4.1g/t GRUD0962 RDU0014
Slide 30: Growth Pipeline
ae PIPELINE a @P Zr, Evolution . MINING
Slide 31: Delivering Our Growth Pipeline
DELIVERING OUR Group Mineral Resources growth since inception (koz) GROWTH PIPELINE Divestments Reinforces strategy of identifying and acquiring assets in the Depletion Growth right geological address where strong mineral endowment Acquisitions can continue to be unlocked by the Discovery team C
Slide 32: Cowal Growth
COWAL GROWTH To view the animation, click here. Further information on exploration results is provided in the Drill Hole Information Summary and JORC Code 2012 Table 1 presented in the Appendix of this presentation. Reported intervals are downhole widths as true widths are not currently known. An es
Slide 33: Mungari: Securing Our Future Growth
MUNGARI: SECURING OUR FUTURE GROWTH A’ A A’ Near-term reserve growth between reserve and resource shells Castle Hill Plan View A$2,400/oz Pit Shell Higher drilling density (MII)8 increases confidence in grade continuity for A$1,450/oz Pit Shell (MIIU) resource classification upgrade and conversi
Slide 34: Mungari Growth
MUNGARI GROWTH To view the animation, click here. 1 Red Lake 2 Mungari 3 Ernest Henry 4 Cowal 33
Slide 35: Vrify Link – Ernest Henry
VRIFY LINK – ERNEST HENRY To view the interactive model, click here. Ernest Henry exploration results provided in the 3D interactive model are extracted from the following ASX releases available to view at www.evolutionmining.com.au: “Drilling continues to extend mineralisation at Ernest Henry” date
Slide 36: Key Takeaways
KEY TAKEAWAYS Cowal: grade upside in the underground with excellent potential to replace and grow reserves Mungari: resource upside with potential to sustain +200Koz production rate Ernest Henry: growth options to keep the mill processing at its current operating rate until 2040 and beyond 35
Slide 37: Mt Rawdon Pumped Hydro
MT RAWDON PUMPED HYDRO A U N IQ U E R EN EWA B L E EN ER G Y STO R A G E PR O J EC T 36
Slide 38: Renewables – A Great Opportunity
RENEWABLES – A GREAT OPPORTUNITY AUSTRALIA 2022 Storage – Grid-scale 36% batteries, pumped wind and solar 2030 hydro etc RENEWABLE 82% RENEWABLE NOW NEEDED NOW NEEDED 2GW 15GW 16GW 44GW Queensland MT RAWDON QUEENSLAND 2022 2032 Now to 2035 23% 70% 25GW Grid-scale wind / solar 2035 RENEWABLE RENEWA
Slide 39: Mt Rawdon Pumped Hydro – A Strategic Asset
MT RAWDON PUMPED HYDRO – A STRATEGIC ASSET Lowest risk and cost of capacity pumped hydro project in Australia 38
Slide 40: Mt Rawdon Pumped Hydro – A Strategic Asset
MT RAWDON PUMPED HYDRO – A STRATEGIC ASSET Up to 2GW Up to 10 hours 20,000MWh Showcase for of continuous storage repurposing generation Significant Size: 2GW power for 10 hours a day – can power 2 million homes during peak periods Ownership: 50 / 50 JV with ICA Partners, an Australian leader in
Slide 41: Rapidly Advancing
RAPIDLY ADVANCING Feasibility study well advanced No fatal flaws identified to date Commercially robust attractive project On track for “project go” in 2024 Progress Timeline Co-ordinated project status October 2022 Geotechnical deep drilling campaign March 2023 Original equipment manufactur
Slide 42: Pathway to Commercialisation
PATHWAY TO COMMERCIALISATION Informal Expressions of Negotiation with Agreements Financial close discussions interest shortlisted parties finalised FY2024 Q1 FY2024 Q2 FY2024 Q3 Dec 2024 Strong sector interest Transaction Price ($B) Purchaser Commercial Infrastructure power investors producers CWP R
Slide 43: Thinking Differently
THINKING DIFFERENTLY Sy \ * \ \\ Evolution)
Slide 44: Appendix
Evolution MINING
Slide 45: Guidance
GUIDANCE Evolution MINING
Slide 46: Previous Outlook to FY24 Guidance
PREVIOUS OUTLOOK TO FY24 GUIDANCE PRODUCTION AISC/oz MAJOR CAPITAL Red Lake 30koz lower as Previous FY24 Outlook of Previous FY24 Outlook of previously announced $1,240/oz updated for: $330-380M updated for: Lower production Cowal at Red Lake $50/oz underground $20-30M timing (from Higher gold price
Slide 47: FY24 Guidance: Capital
FY24 GUIDANCE: FY24 Capital Guidance ($M) CAPITAL Sustaining Capital Consistent run-rate for asset mine life 325-350 190-230 Major Project Capital 125-140 Mungari Sustaining capital Major mine development Major project capital Mill expansion $75 - $80M Satellite Mine infrastructure $25 - $30M
Slide 48: Mineral Resources and Ore Reserves
MINERAL RESOURCES AND ORE RESERVES 47
Slide 49: Ernest Henry Total Ore Reserve at June 2023
ERNEST HENRY TOTAL ORE RESERVE AT JUNE 2023 Proved Probable Total Ore Reserve Project Cut-off (flow Tonnes Copper Copper Tonnes Copper Copper Tonnes Copper Copper model) (Mt) Grade (%) Metal (kt) (Mt) Grade (%) Metal (kt) (Mt) Grade (%) Metal (kt) Ernest Henry 0.75 CuEq 17.6 1.07 189 15.2 0.58 87 32
Slide 50: Group Gold Mineral Resources at December 2022
GROUP GOLD MINERAL RESOURCES AT 31 DECEMBER 2022 Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Cut-off Tonnes Tonnes Tonnes Gold Metal CP6 Project Type Tonnes (Mt) Grade Grade Grade Metal Grade Metal Grade (g/t Au) (Mt) (Mt) (Mt) (koz) (g/t) (g/t) (g/t) (koz) (g/
Slide 51: Group Gold Ore Reserves at December 2022
GROUP GOLD ORE RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E U P D AT E ) Gold Proved Probable Total Reserve Competent Cut-off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person8 Project Type (g/t Au) (Mt)
Slide 52: Group Resources & Reserves at December 2022
GROUP RESOURCES & RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E U P D AT E ) Group Mineral Resource – contained copper Copper Measured Indicated Inferred Total Resource Copper CP1 Tonnes Copper Tonnes Copper Copper Tonnes Copper Copper Tonnes Copper
Slide 53: Exploration Results
EXPLORATION RESULTS 52
Slide 54: Competent Person’s Statement
COMPETENT PERSON’S STATEMENT Cowal Exploration results The information in this report that relates to the Cowal exploration results is based on work compiled by Zachary Murphy who is employed on a full-time basis by Evolution Mining Limited and is a Member of the Australian Institute of Geoscienti
Slide 55: Cowal Drill Hole Information Summary
COWAL DRILL HOLE INFORMATION SUMMARY Northing Hole Easting Elevation Hole Length Azimuth Hole ID MGAz55 Dip From (m) Interval (m) ETW (m) Au (g/t) Cu (%) Type MGAz55 (m) (m) (m) (Grid) (m) RDU0016 DDH 6278609 538380 -64 839.6 -41.5 323.5 355 1 0.75 17.9 NA 388 7 5.25 3.49 NA 400 5 3.75 12.72 NA incl
Slide 56: Section 1 – Sampling Techniques and Data
SECTION 1 – SAMPLING TECHNIQUES AND DATA Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Holes in this report consist of conventional diamond core drilling. Sampling • Collar and down hole surveys were utilised to accurately record final locations. All samples were logged prio
Slide 57: Section 1 – Sampling Techniques and Data
SECTION 1 – SAMPLING TECHNIQUES AND DATA Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Resource Definition diamond core is cut with a diamond saw or chisel and the remaining core retained. Core is cut to preserve the bottom of hole orientation line. Diamond Sub-sampling core
Slide 58: Section 1 – Sampling Techniques and Data
SECTION 1 – SAMPLING TECHNIQUES AND DATA Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Sample check assays are sent to Umpire laboratories at a ratio of 1:20 samples. Verification of • The quality control / quality assurance (QAQC) process ensures the intercepts are represen
Slide 59: Section 1 – Sampling Techniques and Data
SECTION 1 – SAMPLING TECHNIQUES AND DATA Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Chain of custody protocols to ensure the security of samples are followed. Sample • Prior to submission samples are retained on site. Samples sent to SGS West Wyalong are collected by an S
Slide 60: Section 2 – Reporting of Exploration Results
SECTION 2 – REPORTING OF EXPLORATION RESULTS Cowal Section 2 Reporting of Exploration Results Criteria Commentary • The Cowal Mine is located on the Western side of Lake Cowal in central New South Wales, approximately 38km north of West Wyalong and 350km west of Sydney. Mineral • Drilling at GRE46 d
Slide 61: Section 2 – Reporting of Exploration Results
SECTION 2 – REPORTING OF EXPLORATION RESULTS Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Mineralisation within the drilling area is bounded by large north-south trending structures, however there are strong, internal, oblique structural controls. Drillholes are typically o
Slide 62: Section 2 – Reporting of Exploration Results
SECTION 2 – REPORTING OF EXPLORATION RESULTS Cowal Section 2 Reporting of Exploration Results Criteria Commentary Diagrams Additional images provided during core display session • Geology section view of GRUD0962 – 36600mN – view • Geology section view of RDU0014 – 37000mN – view • Geology section v
Slide 63: Section 2 – Reporting of Exploration Results
SECTION 2 – REPORTING OF EXPLORATION RESULTS Cowal Section 2 Reporting of Exploration Results Criteria Commentary Diagrams 7750DD541 1590DD295 4m (3ETW) @ 9.0g/t Au, 1.0% Cu 16m (12ETW) @ 2.7g/t Au 1m (0.75ETW) @ 4.64g/t Au • Plan view of South Cowal DD collars • Section through 7750DD541 – 6263200m
Slide 64: Section 2 – Reporting of Exploration Results
SECTION 2 – REPORTING OF EXPLORATION RESULTS Cowal Section 2 Reporting of Exploration Results Criteria Commentary • Significant intercepts reported are only those areas from select holes where mineralisation was identified. Balanced • These assay results have not been previously reported. reporting
Slide 65: Evolution Mining
Evolution MINING