Slide 1: Acquisition of Red Lake
ACQUISITION OF RED LAKE 26 NOVEMBER 2019
Slide 2: Important Notes and Disclaimer
IMPORTANT NOTES AND DISCLAIMER Information in relation to Evolution This presentation contains summary information about Evolution Mining Limited (the “Company” or “Evolution”) and its subsidiaries and their activities which is current as at the date of this presentation. The information in this pre
Slide 3: Important Notes and Disclaimer (Continued)
IMPORTANT NOTES AND DISCLAIMER (CONTINUED) Not financial product advice This presentation is not a financial product or investment advice, a recommendation to acquire securities or accounting, legal or tax advice and does not and will not form any part of any contract for the acquisition of securiti
Slide 4: Table of Contents
TABLE OF CONTENTS 1. Transaction and Red Lake overview 5 2. Evolution – a leading mid-tier gold miner 20 3. Australian assets overview 28 Appendix 36 4
Slide 5: 1. Transaction and Red Lake Overview
1. TRANSACTION AND RED LAKE OVERVIEW 5
Slide 6: Acquisition of Red Lake Gold Complex
ACQUISITION OF RED LAKE GOLD COMPLEX ▪ High grade, long life, underground gold mine in Canada’s most prolific gold district ▪ Under-capitalised asset with significant turnaround opportunity CANADA ▪ Outstanding exploration potential with historical head grades of +20g/t Au ▪ Tier-1 mining friendly j
Slide 7: Transaction Summary
TRANSACTION SUMMARY Transaction ▪ Evolution to acquire 100% of the Red Lake Gold Complex in Ontario, Canada, from Newmont Goldcorp Corporation overview ▪ Acquisition consideration comprising US$375 million (A$551 million)1 payable in cash upon closing of the transaction and up to an additional US$10
Slide 8: High-Grade Asset in One of Canada's Most Prolific Gold Districts
HIGH-GRADE ASSET IN ONE OF CANADA’S MOST PROLIFIC GOLD DISTRICT Investment phase required to rejuvenate operations and transform into cornerstone asset ▪ Evolution’s aim is for Red Lake to become a cornerstone asset with annual production in excess of 200koz per annum at an All-in Sustaining Costs (
Slide 9: Red Lake Overview
RED LAKE OVERVIEW Current ownership ▪ Newmont Goldcorp 100% Location ▪ North western Ontario, Canada Tenement package ▪ ~460km2 Commencement year ▪ Mining operations commenced in 1949 Production ▪ Gold Plant capacity ▪ 1.1Mtpa CY2018A production ▪ 276koz @ US$988/oz and AISC CY2019F production ▪ 150
Slide 10: Mining
Cochenour Shaft MINING Reid Shaft No. 1 Shaft New Red Lake No. 3 Shaft Level Upper Red Lake Campbell Cochenour High Speed Tram (HST) Lower Red Lake ▪ Red Lake Complex currently uses a combination of long hole stoping, mechanised underhand or overhand cut-and-fill techniques Deep Red Lake ▪ Campbell
Slide 11: Processing
PROCESSING Two mills with total capacity of 1.1Mtpa – Red Lake and Campbell Complex Ore milled (kt) ▪ Red Lake Complex consists of the crushing plant, processing plant and paste fill plant 900 ▪ Facilities utilise conventional crushing and grinding, 623 769 582 gravity concentration and CIP. The pro
Slide 12: Immense Regional Exploration Upside
IMMENSE REGIONAL EXPLORATION UPSIDE Historic production of over 25Moz at +20g/t ▪ One of the largest, highest grade gold camps in North America with a 457km2 land package in a highly prospective district ▪ Mineral Resource1: 19.4Mt at 11.2g/t Au for 7.0Moz ▪ Ore Reserve1: 9.2Mt at 7.0/t Au for 2.1Mo
Slide 13: Significant Mine Life Extension Potential
SIGNIFICANT MINE LIFE EXTENSION POTENTIAL Cochenour Shaft Reid Shaft #3 Shaft Surface -1000mbs Breccia Zone Wilmar JV High Speed Tram (HST) -2000mbs Arsenopyrite Zone Wilmar JV 1000m Cochenour HG Young Composite Long Section Aviation Complex Short-term mine Other near-mine Mineralisation Existing mi
Slide 14: Foothold in Premier High Grade Gold District
FOOTHOLD IN PREMIER HIGH GRADE GOLD DISTRICT Major projects within 150km Regional opportunity ▪ Acquisition of Red Lake establishes a ‘beach-head’ operation for Evolution in one of Canada’s most prolific gold districts ▪ Six active joint ventures in addition to 100% owned tenements totaling over 45,
Slide 15: Pro Forma Acquisition Metrics
PRO FORMA ACQUISITION METRICS Production and AISC1 25% increase in Ore Reserves (pre Evolution re-certification)2 A$1,200/oz Cracow Marsden Red A$965/oz Planned 3% 11% Lake turnaround phase Mt Cowal 21% Cowal 910koz Rawdon 52% 41% at Red Lake aimed 750koz 8% at increasing Mungari Marsden Group produ
Slide 16: Long Life with Margin Expansion Opportunity
LONG LIFE WITH MARGIN EXPANSION OPPORTUNITY Bubble size represents (Gold price of A$2,150/oz less FY20F AISC guidance)(1) midpoint of 3,000 FY20 gold Ernest production Henry guidance 2,000 Current indicative AISC margin (A$/oz) Mt Planned turnaround phase Carlton at Red Lake aimed at Cowal 1,000 Cra
Slide 17: Enhance Position as Leading Mid-Tier Producer
ENHANCE POSITION AS LEADING MID -TIER PRODUCER 1,800 1,600 (Gold price of A$2,150 less CY19 guidance AISC)1 Evolution 1,400 Kirkland Evolution + Lake Indicative AISC margin (A$/oz) 1,200 Red Lake 1,000 Centerra 800 Endeavour Saracen³ B2 Gold Northern Star 600 Yamana 400 IAMGOLD Bubble size reflects
Slide 18: Strong Balance Sheet Maintained
STRONG BALANCE SHEET MAINTAINED ◼ Red Lake Transaction funded by new debt tranche Red Lake facility amortisation schedule (A$M) ◼ 5-year term loan of A$600 million ◼ 3-year performance bond facility of C$125 million ◼ Existing facilities renewed for 3-years 120 140 ◼ Revolver facility of A$360 milli
Slide 19: Continuation of Portfolio Upgrade Strategy
CONTINUATION OF PORTFOLIO UPGRADE STRATEGY ▪ Historical production of more than 25Moz at an average grade of +20g/t ▪ Mineral Resources and Ore Reserves support a current 13 year Life of Mine Plan ▪ Located on a large 457km2 land package in a Tier-1 gold mining jurisdiction Acquisition of high-grade
Slide 20: 2. Evolution – A Leading Mid-Tier Gold Miner
2. EVOLUTION – A LEADING MID-TIER GOLD MINER 20
Slide 21: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY A portfolio of 6 to 8 assets generating superior returns with an average mine life of at least 10 years Open to all Build a quality gold, reputation for silver and Inspired sustainability, copper-gold people reliability and value transparency accretive creating investme
Slide 22: Diversified Portfolio in Tier 1 Jurisdictions
DIVERSIFIED PORTFOLIO IN TIER 1 JURISDICTIONS Cowal Mungari Mt Carlton Mt Rawdon Cracow Ernest Henry Red Lake3 Gold Reserves 3.88 0.63 0.62 0.57 0.19 0.75 Au, 136kt Cu 2.05 (Moz)1 Gold Resources 7.42 2.51 0.82 1.00 0.45 1.47 Au, 387kt Cu 6.97 (Moz)1 Reserve Grade 0.9 1.80 4.00 0.70 5.10 0.54 Au,1.05
Slide 23: Sustainability Principles
S U S TAI N AB I L I T Y P R I N C I P L E S The objective of our sustainability efforts is to deliver long-term stakeholder value through safe, low-cost gold production in an environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contribute positively to lo
Slide 24: Snapshot
SNAPSHOT ASX code EVN Cumulative Dividends (A$M) and Market capitalisation1 A$6.6B cents per share declared 9.5 Average daily turnover2 A$60M 600 10 9 Net cash3 A$92M 500 7.5 8 Targeting a payout of 7 New dividend policy 400 50% of free cash flow 5 6 300 5 FY20 production guidance4 725 – 775koz 200
Slide 25: Delivery of Portfolio Upgrade Strategy
DELIVERY OF PORTFOLIO UPGRADE STRATEGY FY19 FY20 FY17 FY18 FY15 FY16 FY13 FY14 Red Lake FY12 Ernest Edna May divested acquisition Henry Mungari acquisition of acquisition with economic La Mancha interest Mt Carlton Evolution Cowal first concentrate Pajingo formed produced March acquisition divested
Slide 26: Mine Cash Flow
MINE CASH FLOW 300 FY19 Mine Cash Flow (A$M) 772 800 250 232 232 700 600 200 500 120 ◼ Quality portfolio with over A$3B of operating and A$2B 150 400 222 64 60 62 498 300 of net mine cash flow between FY15 – FY19 100 200 50 87 85 100 - 36 32 36 0 ◼ Five year average gold price achieved of A$1,640/oz
Slide 27: Superior Returns
SUPERIOR RETURNS ◼ Sector leading returns to shareholders ◼ Dividend policy recently changed to targeting a payout of 50% of free cash flow Dividends (US$ per ounce produced) 194 Six months to June 2019 87 82 73 65 52 35 24 9 0 Evolution Evolution Newcrest Northern Star Agnico Eagle Newmont Barrick
Slide 28: 3. Overview of Australian Assets
3. OVERVIEW OF AUSTRALIAN ASSETS 28
Slide 29: Cowal
COWAL E46 OP Reserves 140koz ▪ Sustainable, reliable, low cost asset E42 OP Reserves 3.3Moz ▪ Developing a pathway to produce OP Resources 4.5Moz GRE46 >300kozpa Past production 3.3Moz OP Reserves 25koz Total endowment 7.8Moz UG Resources 1.4Moz ▪ Float Tails Leach circuit ▪ Plant expansion ▪ Stage
Slide 30: Cowal Underground
COWAL UNDERGROUND Scale 200m 0 Section of Cowal GRE46 underground area. Orange shows the outline of the Long projection of the GRE46 structure looking west showing the location December 2017 mineable shape optimiser (MSO) outlines and yellow shows of drilling completed during the September 2019 quar
Slide 31: Ernest Henry
ERNEST HENRY ▪ History of reliable operational delivery ▪ Exceptionally high margins 1,200mRL ▪ Evolution’s interest (100% gold production and 30% copper production) generated free cash flow of A$222M in FY19 Drilling target ▪ Planned drilling in December 2019 quarter to extend mine life below 1,200
Slide 32: Mungari
MUNGARI ▪ Strategic footprint in world-class gold district ▪ 10 year base load production platform ▪ 1.6Mtpa low cost plant performing above nameplate ▪ Studies underway to optimise the Life of Mine plan in an effort to maximise the 2.5Moz Mineral Resource base ▪ 19.9% interest in Tribune Resources
Slide 33: Mt Carlton
MT CARLTON N Open pit Stage 3 - ▪ Generating exceptional returns current ▪ Net mine cash flow has averaged ~A$100M per year between FY16 – FY19 N ▪ Underground mine development commenced to bring forward access to high-grade Link Zone Open pit ▪ Current mine life to FY25 Stage 4a ▪ Crush Creek earn-
Slide 34: Cracow and Mt Rawdon
CRACOW AND MT RAWDON FY20 GUIDANCE CRACOW MT RAWDON Gold production 82.5 – 87.5koz 80 – 85koz AISC A$1,200 – A$1,250/oz A$1,490 – A$1,540/oz QUEENSLAND EXPLORATION Drummond Exploration Project (Evolution earning 80%) ▪ Early-stage epithermal (low-sulphidation) vein project (520km2) Connors Arc Explo
Slide 35: Discovery
DISCOVERY ◼ Over the last five years: FY20 Discovery Guidance A$80-105M1 ◼ Discovery budget increased from A$20 million to A$80 – A$105 million1 ◼ Average reserve life extended from 5 years to 10 years ◼ Reserves per share increased by 42% Drummond ◼ Conservative gold price assumptions: Project Mt C
Slide 36: Appendix
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Slide 37: Evolution 2018 Gold Mineral Resources
EVOLUTION 2018 GOLD MINERAL RESOURCES Group Gold Mineral Resource Statement – December 2018 Gold Measured Indicated Inferred Total Resource Gold Gold CP3 Tonnes Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal Project Type Cut-Off Grade Metal (Mt) (Mt) Grade (g/t) (koz) (Mt) Grad
Slide 38: Evolution 2018 Gold Ore Reserves
EVOLUTION 2018 GOLD ORE RESERVES Group Gold Ore Reserve Statement – December 2018 Gold Proved Probable Total Reserve Cut- Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal CP4 Project Type Off (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (koz) Cowal1 Open pit 0.4
Slide 39: Evolution 2018 Copper Reserves & Resources
EVOLUTION 2018 COPPER RESERVES & RESOURCES Group Copper Mineral Resources Statement Copper Measured Indicated Inferred Total Resource Copper Copper Copper Copper Copper Copper Copper Copper Cut- Tonnes Tonnes Tonnes Tonnes CP3 Project Type Grade Metal Grade Metal Grade Metal Grade Metal Off (Mt) (Mt
Slide 40: Red Lake 30 June 2018 Reserves & Resources
RED LAKE 30 JUNE 2018 RESERVES & RESOURCES Red Lake Mineral Resource Statement Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Cut- Tonnes Tonnes Tonnes Tonnes Project Type Grade Metal Grade Metal Grade Metal Grade Metal Off (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (k
Slide 41: Evolution
Evolution MIINTINE