Slide 1: 2020 Half-Year Financial Results
2020 HALF-YEAR FINANCIAL RESULTS 12 FEBRUARY 2020 JAKE KLEIN – EXECUTIVE CHAIRMAN LAWRIE CONWAY – FINANCE DIRECTOR AND CFO
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT These materials prepared by Evolution Mining Limited (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”, “plan”, “
Slide 3: 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 Build a reputation for sustainability, reliability and transparency Embed financial discipline across the business An active pipeline of quality exploration and devel
Slide 4: Highlights
HIGHLIGHTS Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets ▪ Record profit ▪ Future cornerstone asset ▪ 1.1 million ounces added ▪ Record cash flow ▪ Turnaround commenced at GRE
Slide 5: 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 6: Sustainability
SUSTAINABILITY ◼ Improvement in safety performance ◼ TRIF reduced to 8.4 from recent peak of 9.3 ◼ Inclusion in Dow Jones Sustainability Index Australia ◼ One of only two ASX listed gold miners ◼ Bushfires and drought assistance ◼ Donation of A$3M and ongoing support from Evolution volunteers ◼ Shar
Slide 7: Cowal Water Security
COWAL WATER SECURITY Executing a water security plan to mitigate drought risk with the objective of long-term self sufficiency ◼ Second pipeline installed across Lake Cowal ◼ Expected to increase pumping capacity by 30% ◼ Three additional bores in Eastern Saline Bore Field 55mm of rainfall recorded
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS Record underlying net Record Earnings profit after tax EBITDA per share 62% to A$149.1M 23% to A$441.2M 61% to 8.7cps Mine operating Net mine Record Group cash flow cash flow cash flow 32% to A$511.8M 48% to A$351.8M 119% to A$242.4M Doubled interim Debt fre
Slide 9: Underlying Net Profit
UNDERLYING NET PROFIT ◼ Record underlying profit up 62% to A$149.1M Profit ◼ Revenue up 19% and royalties up 17% due to higher metal prices offset by slightly lower metal sold ◼ Operating costs increase was in line with expectation at ~3% ◼ Inventory movements were due to planned stockpile drawdowns
Slide 10: Mine Operating Costs – Key Drivers
MINE OPERATING COSTS – KEY DRIVERS ◼ Operating costs being well controlled with heavy focus on top 7 cost categories ◼ Labour cost and royalties account for net change in operating costs ◼ Employee labour rates moved within the 3½% - 4½% guided range ◼ Other cost changes minimal and offset each othe
Slide 11: High EBITDA Margins
HIGH EBITDA MARGINS Group EBITDA Margin (%) ◼ High margin at long life assets of Cowal (59%) and Ernest Henry (69%) FY20 H1 ◼ Continued improvement at Mungari and Cracow 49% FY19 48% ◼ Margin at Mt Carlton and Mt Rawdon expected to improve in second half (1) FY18 53% ◼ Group margin consistently arou
Slide 12: Group Cash Flow
FY20 H1 Mine Cash Flow (A$M) GROUP CASH FLOW 300 512 600 250 500 210 200 400 ◼ High margin net group cash flow of A$242M 150 135 300 100 200 ◼ 27% of revenue 49 46 352 142 129 43 50 28 100 ◼ A$640 per ounce 41 18 30 - -7 0 Cowal Ernest Henry Mt Carlton Mungari Mt Rawdon Cracow EVN Group ◼ Sites cons
Slide 13: Dividends
DIVIDENDS 16% Dividends (% of Revenue vs cents per share declared) 14 13% 14% 12 12% 11% 10 ◼ Interim dividend doubled 10% 8% 8 8% ◼ Fully franked at 7 cents 6% 4 6 6 6% ◼ Equal to 13% of revenue 4% 3% 3% 4 3 7 2% 2% 2 ◼ Strong yield at 3.6%(1)(2) 2% 2 3.5 3.5 1 1 2 1 1 1 1 0% 0 ◼ A$119.3M to be pai
Slide 14: Red Lake Acquisition
RED LAKE ACQUISITION CANADA ▪ Evolution implementing plans to transform Red Lake into a cornerstone asset with annual production in excess of 200koz at an AISC below US$1,000 per ounce ▪ High grade, long life, underground gold mine in Canada’s most prolific gold district ▪ Under-capitalised asset wi
Slide 15: Red Lake Update
RED LAKE UPDATE Mining ▪ Mine plan will focus on mining higher productivity zones ▪ Increase development to 1,000m per month to return to historic ore production rates ▪ Commenced at start of February ▪ Decommission excess fixed assets and mobile equipment Processing ▪ Improve reliability and utilis
Slide 16: Red Lake Planned Drilling
RED LAKE PLANNED DRILLING Cochenour Shaft Reid Shaft #3 Shaft Surface UPPER RED CAMPBELL LAKE -1000mbs High Speed Tram (HST) ▪ Drilling commenced with 5 rigs focused -2000mbs on Cochenour and Red Lake ▪ Ramping up to 6 – 8 rigs by April 2020 ▪ Initially targeting near mine resource COCHENOUR definit
Slide 17: Annual MROR Highlights
ANNUAL MROR HIGHLIGHTS Cowal Mineral Resource of 8.6Moz Cowal GRE46 Dalwhinnie underground ◼ GRE46 Dalwhinnie underground resource Mineral Resource increased 77% to 2.5Moz increased 77% from 1.4Moz to 2.5Moz Cowal Ore Reserve of 3.6Moz ◼ Maiden underground reserve to be declared in CY2020 to support
Slide 18: Ernest Henry Mine Life Extensions
ERNEST HENRY MINE LIFE EXTENSIONS Mineral Resources of 1.3Moz gold and 356t copper Ore Reserves of 0.7Moz gold and 150kt copper ◼ Early addition of three new sub-levels to reserves ◼ 18,000m drill program planned for 2020 calendar year targets extensions to resources and reserves below the 1200mRL ◼
Slide 19: Summary
SUMMARY Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets 19
Slide 20: Evolution
Evolution MIINTINE
Slide 21: Evolution 2019 Gold Mineral Resources
EVOLUTION 2019 GOLD MINERAL RESOURCES Gold Measured Indicated Inferred Total Resource Dec 18 Gold Gold Gold Gold Gold Gold Gold Gold Resource Tonnes Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Metal Gold Metal (Mt) (Mt) (Mt) (Mt) (koz) (g/t) (koz) (g/t) (k
Slide 22: Evolution 2019 Gold Ore Reserves
EVOLUTION 2019 GOLD ORE RESERVES Gold Proved Probable Total Reserve Dec 18 Cut- Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal CP3 Reserves Gold Project Type Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Metal (koz) Cowal Open pit 0.45 - - - 89.43 0.9
Slide 23: Evolution 2019 Copper Reserves & Resources
EVOLUTION 2019 COPPER RESERVES & RESOURCES Group Copper Mineral Resource Statement Copper Measured Indicated Inferred Total Resource Dec 18 Copper Copper Copper Copper Copper Copper Copper Copper Resources Cut- Tonnes Tonnes Tonnes Tonnes CP3 Project Type Grade Metal Grade Metal Grade Metal Grade Me