Evolution Mining Limited · ASX:EVN

Evolution Mining — Scotiabank Mining Conference 2023

38 slides from Evolution Mining's conference presentation, Nov 28, 2023

  1. Slide 1: Inspired people creating a premier global gold company

    Inspired people creating a premier global gold company SCOTIABANK MINING CONFERENCE Jake Klein – Executive Chair 28 November 2023

  2. Slide 2: 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

  3. 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

  4. Slide 4: The Case for Gold and Copper

    THE CASE FOR GOLD AND COPPER ¥ Decarbonisation Destabilisation Debt defaults Decoupling Debt rising Financial stress Geopolitical issues 4

  5. Slide 5: Evolution Snapshot

    EVOLUTION SNAPSHOT MARKET A$7.0B / US$4.5B CAPITALISATION1 FY23 OPERATING MINE CASH FLOW6 MINERAL RESOURCES2 30Moz gold, 1.8Mt copper Red Lake ORE RESERVES2 11Moz gold, 1Mt copper US$975/oz FY24 GOLD PRODUCTION ~770koz +/- 5% (+18% vs FY23) GUIDANCE3 FY24 AISC GUIDANCE3 US$880/oz +/- 5% 21 consecuti

  6. Slide 6: Strong Pipeline of Organic Growth Projects

    STRONG PIPELINE OF ORGANIC Red Lake (2038) GROWTH PROJECTS • Focused on stable and consistent production • Targeting 200koz pa (FY24: guidance 170koz ±5%) • Future growth options exist to Ernest Henry (2040) Mt Rawdon increase production by ~30-60% when capex justified • Extension Feasibility Study

  7. Slide 7: Portfolio of Long-Life High Return Assets

    Percentage repaid At acquisition PORTFOLIO OF LONG-LIFE HIGH RETURN ASSETS Current – up to 25% Current – 26-50% Current – 90-99% Current – 100% 400 Return on investment 350 20%+ ROI Annual production target – gold equivalent (koz) 300 Renewable Energy Project Option: Ernest Henry1 Mt Rawdon Pumped H

  8. Slide 8: Delivering Returns and Deleveraging

    DELIVERING RETURNS AND DELEVERAGING ▪ Margin over ounces priority Production (koz) AISC (US$/oz)1 ▪ FY24 production guidance 770koz +/-5% at US$880/oz ▪ FY25-26 targeting ~800koz pa ▪ Cost discipline to optimise margin and manage inflation 975 ~770 651 ▪ Capital Allocation 890 FY23 FY24 Guidance FY2

  9. Slide 9: Summary

    SUMMARY Focus on safe and reliable operational delivery – margin over ounces Organic growth options to deliver long term returns Capital discipline – investing when needed and justified Cash generation benefit – upside at spot prices 9

  10. Slide 10: Appendix 1: FY24 Guidance, Dividends, FY23 Results & FY24 Q1 Results Highlights

    APPENDIX 1: FY24 GUIDANCE, DIVIDENDS, FY23 RESULTS & FY24 Q1 RESULTS HIGHLIGHTS 10

  11. Slide 11: FY24 Guidance: AUD

    FY24 GUIDANCE: AUD Sustaining Major Major Gold (oz) AISC (A$/oz) FY24 Guidance Capital Project Capital Mine Development (+/-5%) (+/-5%) (A$M) (A$M) (A$M) Group 770,000 1,370 190 – 230 325 – 350 125 – 140 Cowal 320,000 1,250 40 – 50 85 – 90 ~5 Ernest Henry 80,000 (2,000) 55 – 62.5 45 – 50 45 – 50 Red

  12. Slide 12: FY24 Guidance: USD

    FY24 GUIDANCE: USD Sustaining Major Major Gold (oz) AISC1 (US$/oz) FY24 Guidance Capital1 Project Capital1 Mine Development1 (+/-5%) (+/-5%) (US$M) (US$M) (US$M) Group 770,000 890 125 – 150 210 – 230 80 – 90 Cowal 320,000 810 25 – 30 55 – 60 ~3 Ernest Henry 80,000 (1,300) 35 – 40 30 – 35 30 – 35 Red

  13. Slide 13: Dividends and Debt

    DIVIDENDS AND DEBT Cumulative dividends declared (A$M) FY23 Final Dividend ▪ Fully franked 4 cents per share (~A$75M) ▪ Over A$1.1B returned to shareholders 1,053 1,128 943 ▪ Ensuring consistent returns to shareholders 732 459 87 ▪ Demonstration of confidence in balance sheet 7 21 43 171 298 FY13 FY

  14. Slide 14: FY23 Financial Highlights

    FY23 FINANCIAL HIGHLIGHTS Financials Units FY232 FY22 Change Statutory Profit After Tax A$M 163.5 323.3 (49%) Underlying Profit After Tax A$M 205.0 274.7 (25%) EBITDA A$M 844.5 898.8 (6%) EBITDA Margin % 38% 44% (14%) Operating Mine Cash Flow A$M 944.1 893.3 6% Capital Investment A$M 798.7 606.4 32%

  15. Slide 15: FY24 Q1 Results Highlights

    FY24 Q1 RESULTS HIGHLIGHTS FY24 guidance maintained1 • 770,000oz gold and AISC of $1,370/oz • AISC 16% to $1,612/oz • Mine operating cash flow 42% to $280M • Ernest Henry resumed normal operations • Key contract awarded for Mungari 4.22 1. See ASX Announcement titled ‘September 2023 Quarterly Report

  16. Slide 16: FY24 Q1 Results Highlights: Exploration Drilling Results - Mungari and Cowal

    FY24 Q1 RESULTS HIGHLIGHTS FY24 guidance 1 Exploration Drillingmaintained Results - Mungari and Cowal1 • 770,000oz gold and AISC of $1,370/oz • Potential for additional high-grade mineralisation: • ✓ AISC Outside16% to $1,612/oz of known Mineral Resources • ✓ Near Mine active mining operating fronts

  17. Slide 17: FY24 Q1 Results Highlights: Cowal Exploration Drilling

    FY24 Q1 RESULTS HIGHLIGHTS FY24 guidance 1 Exploration Drillingmaintained Results - Mungari and Cowal1 • 770,000oz gold and AISC of $1,370/oz • Potential for additional high-grade mineralisation: • ✓ AISC Outside16% to $1,612/oz of known Mineral Resources • ✓ Near Mine active mining operating fronts

  18. Slide 18: FY24 Q1 Results Highlights: Ernest Henry Drilling

    FY24 Q1 RESULTS HIGHLIGHTS Ernest Henry recommenced underground drilling:1,2 ✓ Underground FY24 guidanceprogram recommenced maintained 1 in September 2023 • ✓770,000oz Two rigs gold and drilling AISC from of $1,370/oz underground platforms • ✓AISC Key drill16% to $1,612/oz targets: • Mine✓operating

  19. Slide 19: Earn In Joint Venture Agreement Northern Superior Resources

    EARN IN JOINT VENTURE AGREEMENT NORTHERN SUPERIOR RESOURCES ▪ 6 Nov 2023: Option granted to Evolution by Northern Superior Resources Inc (TSXV:SUP) to acquire 75% stake in NSR’s October Gold Project1: ▪ ~120kms south-west of Timmins in Ontario ▪ Large land package, significant potential in Tier 1 Ge

  20. Slide 20: Sustainability

    SUSTAINABILITY Integrated into everything we do ✓ Health, safety and wellbeing Improving Total Recordable Injury 19% frequency in FY231 ✓ Risk management including climate- related risk ✓ Environmental management including Net Zero progress: reduced absolute water emissions in FY232 ~11% ✓ Community

  21. Slide 21: Appendix 2: Project Updates

    APPENDIX 2: PROJECT UPDATES 21

  22. Slide 22: Projects Appropriately Timed

    PROJECTS APPROPRIATELY TIMED Project FY24 FY25 FY26 FY27 FY28 FY29 Cowal Building to Commissioning underground 320,000+ oz and ramp up Red Lake Pathway to Commissioning (Upper Campbell) 200,000+ oz and ramp up Mungari expansion Commissioning and Mine life to 2038 Execution to 4.2Mtpa ramp up Ernest

  23. Slide 23: Ernest Henry – Significant Growth Potential

    ERNEST HENRY – SIGNIFICANT GROWTH POTENTIAL Feasibility study scheduled for completion in Q3 FY25 Outcomes of Pre-feasibility study: • Mine life extended by 11 years out to 2040 • Compelling economics with high NPV and short payback • A$690M NPV and IRR of 28% at A$2,400/oz & A$12,000/t • A$1,010M N

  24. Slide 24: Cowal – Delivering Growth

    COWAL – DELIVERING GROWTH 24

  25. Slide 25: Cowal – Delivering Growth

    COWAL – DELIVERING GROWTH Current operations – E42 Pit (Stage H) Underground mine development • Increasing ore tonnes and grade • First stope ore delivered in Q3 FY23, 10,000+ • Strip ratio of <1:1 development metres completed in FY23 • Contributes significant proportion of mill feed until • Paste p

  26. Slide 26: Mungari: Long-Term Future on Solid Foundations

    MUNGARI LONG-TERM FUTURE ON SOLID FOUNDATIONS Current state Mill expansion project Future 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: 155

  27. Slide 27: Mill Expansion Unlocks Significant Value

    MILL EXPANSION UNLOCKS SIGNIFICANT VALUE 57000 ▪ Mungari Mill expansion – key enabler for region PRIMARY JAW CRUSHER ▪ Conventional crush and grind circuit, with conventional Key design criteria technologies ▪ Metallurgical testing completed – outcomes favourable Throughput – 4.2Mtpa ▪ Mill capacity

  28. Slide 28: Three Mining Centres

    THREE MINING CENTRES ▪ Three secure, well-known and low-risk ore sources: ▪ Kundana (high grade underground ore source) ▪ Castle Hill (base load open pit ore source) ▪ Paradigm (base load ore source) ▪ Initial mining is focused on the near field deposits ▪ Conventional mining method for Eastern Gold

  29. Slide 29: Red Lake: Focusing on Increasing Margin

    RED LAKE FOCUSING ON INCREASING MARGIN Production (koz) Consistent ▪ Operational flexibility - and stable sufficient contingency +40% ▪ Operational excellence - ~170 operations reliable delivery 115 121 Cultural ▪ Safety and people focus alignment FY22 FY23 FY24 Guidance All-in Sustaining Cost (A$/o

  30. Slide 30: Red Lake Ore Sources

    Red Lake RED LAKE ORE SOURCES Campbell mill Stockpiles Any excess ore to mill stockpiles Cochenour shaft CYD Reid decline Balmer (#3) shaft shaft Services Red Lake only R zone Upper Sulphides Aviation HW7 Cochenour Campbell Lower 30

  31. Slide 31: Mining – Productivity Gains

    Average drill metres per shift across two months1 MINING – PRODUCTIVITY GAINS 36 +22% ▪ Efficiency improving every day 44 ▪ Over 60% reduction in primary equipment (↓ to 39) Stopemaster Simba ▪ Increase in equipment capacity ▪ Introduction of ▪ jumbo bolting ▪ carousel production drill rigs driving

  32. Slide 32: Mining – Productivity Gains

    MINING – PRODUCTIVITY GAINS ▪ 100% improvement in daily loader rates since acquisition ▪ Replacement of old fleet ▪ Introduction of Battery Electric Vehicles (BEV) Loader rates (t/d) 800 700 600 500 400 300 +100% since 200 acquisition 100 - FY20 FY21 FY22 FY23 32

  33. Slide 33: 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 33

  34. Slide 34: Appendix 3: Mineral Resource and Ore Reserve

    APPENDIX 3: MINERAL RESOURCE AND ORE RESERVE 34

  35. Slide 35: Group Gold Mineral Resources at December 2022

    GROUP GOLD MINERAL RESOURCES 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 M I N E R A L R E S O U R C E U P D AT E ) Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Cut-off Tonnes Tonnes Tonnes Gold Metal CP7 Project Type Tonnes (Mt) Grade Me

  36. Slide 36: 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)

  37. Slide 37: 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 A N D M I N E R A L R E S O U R C E U P D AT E S ) Group Mineral Resource – contained copper Copper Measured Indicated Inferred Total Resource Copper CP3 Tonnes Copper Tonnes Copper Cop

  38. Slide 38: Evolution Mining

    Evolution MINING

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