Slide 1: Denver Gold Forum
For personal use only DENVER GOLD FORUM 16 – 18 SEPTEMBER 2019 L AW R I E C O N WAY – F I N AN C E D I R E C T O R AN D C F O
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT For personal use only 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
Slide 3: Evolution Snapshot
EVOLUTION SNAPSHOT For personal use only Cumulative Dividends (A$M) and ASX code EVN cents per share declared Market capitalisation(1) US$5.6B /A$8.0B 9.5 600 10 Average daily turnover(2) US$42M / A$60M 9 500 7.5 Net cash(3) US$25M / A$35M 8 7 Payout of 50% of free 400 New dividend policy 5 6 cash f
Slide 4: Sustainability Principles
S U S TAI N AB I L I T Y P R I N C I P L E S The objective of our sustainability efforts is to deliver long-term stakeholder value through safe, low-cost gold production in an For personal use only environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contr
Slide 5: Return on Investment
RETURN ON INVESTMENT For personal use only ◼ Disciplined capital investment to ensure all assets generate adequate returns ◼ Average annual returns under Evolution ownership of 12 – 23% across portfolio Bubble size represents midpoint of ◼ Cowal now truly a cornerstone Tier 1 asset FY20 gold product
Slide 6: Quality Portfolio
QUALITY PORTFOLIO For personal use only ◼ Evolution is among the lowest cost / highest margin producers of the top ten gold miners in the Van Eck Gold Miners Index (GDX) All-in Sustaining Cost (US$/oz) EBITDA Margin 66% 925 968 973 1,002 842 886 895 48% 47% 47% 45% 738 661 39% 37% 37% 597 34% 34% Ev
Slide 7: Mine Cash Flow
MINE CASH FLOW 300 FY19 Mine Cash Flow (A$M) 772 800 250 232 232 700 For personal use only 600 200 500 120 ◼ Quality portfolio with over A$3B of operating and 150 222 64 60 62 400 300 100 498 A$2B of net mine cash flow between FY15 – FY19 50 87 85 200 100 - 36 32 36 0 ◼ Five year average gold price
Slide 8: Superior Returns
SUPERIOR RETURNS For personal use only ◼ Sector leading returns to shareholders ◼ Dividend policy recently changed to a payout of 50% of free cash flow Dividends (US$ 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 Newm
Slide 9: Cowal
COWAL E46 OP Reserves 140koz For personal use only ▪ 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 ▪ Pl
Slide 10: Discovery
DISCOVERY FY20 Discovery Guidance A$80-105M For personal use only ◼ Over the last five years: ◼ Discovery budget increased from A$20 million to A$80 – A$105 million ◼ Average reserve life extended from 5 years to 10 years ◼ Reserves per share increased by 42% Drummond ◼ Conservative gold price assum
Slide 11: Transformation and Effectiveness Pipeline
TRANSFORMATION AND EFFECTIVENESS PIPELINE For personal use only Operating Production Optimiser | Float Tails Leach | HIG Mill | Tele-remote drilling Development Projects Glycine Leaching | Data Lake | Gamma activated assay | Geo / Seismic data link | Ore Sorting (Cowal) | Nano Filtration | OLGA Ore
Slide 12: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY For personal use only A portfolio of 6 to 8 assets generating superior returns with an average mine life of at least 10 years Open to all Build a quality gold, reputation for silver and Inspired sustainability, copper-gold reliability and Mt Carlton people transparency
Slide 13: Appendix
For personal use only APPENDIX
Slide 14: FY20 Guidance: Production, Costs & Capital
FY20 GUIDANCE: PRODUCTION, COSTS & CAPITAL For personal use only All-in All-in Sustaining Major Gold production FY20 Guidance Sustaining Cost Sustaining Cost Capital Capital (oz) (US$/oz) (A$/oz) (A$M) (A$M) Cowal 255,000 – 265,000 650 – 690 930 – 980 25 – 35 115 – 135 Mungari 115,000 – 125,000 860
Slide 15: FY20 Guidance - Capital
FY20 GUIDANCE - CAPITAL For personal use only Major project capital items ◼ Cowal: Sustaining Major Capital ◼ Stage H cut-back A$75 – 85M FY20 Guidance Capital (A$M) ◼ IWL A$35 – 40M (A$M) ◼ Process plant projects & Other A$ 5 – 10M ◼ Mt Carlton: Cowal 25 – 35 115 – 135 ◼ Underground development A$3
Slide 16: FY20 Guidance – Discovery and Non-Cash
FY20 GUIDANCE – DISCOVERY AND NON-CASH For personal use only Depreciation & Resource Discovery FY20 Guidance Amortisation(1) Definition(2) (A$M) (A$/oz) (A$M) Cowal 350 – 400 3–5 50 – 60(3) Mungari 300 – 350 1–2 15 – 20 Mt Carlton 650 – 700 1–2 2–4 Mt Rawdon 475 – 525 1–2 0–1 Cracow 400 – 450 5–6 3–
Slide 17: Evolution 2018 Gold Mineral Resources
EVOLUTION 2018 GOLD MINERAL RESOURCES For personal use only Group Gold Mineral Resource Statement – December 2018 Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold CP3 Tonnes Tonnes Tonnes Tonnes Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Met
Slide 18: Evolution 2018 Gold Ore Reserves
EVOLUTION 2018 GOLD ORE RESERVES For personal use only 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 CP3 Project Type Off (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (ko
Slide 19: Evolution 2018 Copper Reserves & Resources
EVOLUTION 2018 COPPER RESERVES & RESOURCES For personal use only 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 Gr
Slide 20: Cowal Dec 2018 Mineral Resources and Ore Reserves
COWAL DEC 2018 MINERAL RESOURCES AND ORE RESERVES EVOLUTION 2017 GOLD ORE RESERVES For personal use only Cowal Gold Mineral Resource Statement - December 2018 Measured Indicated Inferred Total Resource Mineral Resource Tonnes Grade Cont. Metal Au Grade Cont. Metal Au Tonnes Grade Cont. Metal Grade C
Slide 21: Safety
SAFETY For personal use only ◼ Driving a safety culture of doing the right thing because people want to, not because they have to ◼ Safety stop conducted across all sites in July 2019 following recent tragedies in Queensland ◼ Strong focus on addressing rise in TRIF ◼ FY19 performance: ◼ improvement
Slide 22: Our People
OUR PEOPLE For personal use only Attract, engage, develop and retain talent ▪ Developing our leaders via bespoke leadership programs ▪ Guiding Our Leaders Program (GOLD) completed by 142 senior leaders ▪ SILVER Program completed by 282 front line managers ▪ Supporting Graduate Programs and Vacation
Slide 23: Our Communities
OUR COMMUNITIES ▪ Social licence to operate score 4.1 out of 5.0 For personal use only ▪ ‘High approval’ – a high level of social licence compared to other global miners1 ▪ Nine Shared Value projects underway – creating tangible, sustainable legacies in our communities beyond the life of our mine ▪
Slide 24: EBITDA Margins
EBITDA MARGINS Group EBITDA Margin (%) For personal use only ◼ All sites continue to deliver strong operating cash margins FY19 48% ◼ Longest life assets generating highest margins FY18(1) 53% FY19 Site EBITDA Margin FY17(1) 49% FY16 46% 66% 61% 53% 35% 43% 32% FY15 40% Cowal Ernest Henry Mt Carlton
Slide 25: Mine Operating Costs – Key Drivers
MINE OPERATING COSTS – KEY DRIVERS For personal use only FY20 Key Cost Drivers (1) ◼ Market conditions on costs have moved higher from the lows of 12-18 months ago Other ◼ Top seven cost categories comprise ~80% of cost base 21% Employee Labour ◼ Labour costs increased ~3% during FY19 and 25% Diesel
Slide 26: M&A Strategy
M&A STRATEGY Improve portfolio quality For personal use only ▪ The rules are simple: ▪ Improve the quality of the portfolio ▪ Logical ▪ Value accretive ▪ Opportunistic ▪ But delivery is not simple. It requires the ability to: ▪ Recognise the opportunity ▪ Execute the transaction ▪ Integrate acquired
Slide 27: Assets
For personal use only ASSETS
Slide 28: Cowal – Delivering Pathway to 300kozpa
COWAL – DELIVERING PATHWAY TO 300KOZPA For personal use only Underground Exploration Decline Resource definition Integrated and extensional Waste drilling of high grade underground ore Landform body Plant Expansion Life of Mine tails solution 300KOZPA+ Permit increased from 7.5Mtpa to 9.8Mpa Stage H
Slide 29: Cowal Underground
COWAL UNDERGROUND For personal use only Scale 0 200m Section of Cowal GRE46 underground area. Orange shows the outline Long projection of the GRE46 structure looking west showing of the December 2017 mineable shape optimiser (MSO) outlines and the location of drilling completed during the June 2019
Slide 30: Ernest Henry
ERNEST HENRY For personal use only ▪ History of reliable operational delivery ▪ Exceptionally high margins 1,200mRL ▪ Evolution’s interest generated free cash flow of A$222M in FY19 ▪ Planned drilling in December 2019 quarter to extend Drilling target mine life below 1,200mRL Current Mineral Resourc
Slide 31: Mungari
MUNGARI For personal use only ▪ 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 ▪ Recently acqui
Slide 32: Mt Carlton
MT CARLTON N Open pit For personal use only 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 with e
Slide 33: Cracow and Mt Rawdon
CRACOW AND MT RAWDON For personal use only FY20 GUIDANCE CRACOW MT RAWDON Gold production 82.5 – 87.5koz 90 – 100koz US$840 – US$875/oz US$850 – US$880/oz AISC A$1,200 – A$1,250/oz A$1,210 – A$1,250/oz QUEENSLAND EXPLORATION Drummond Exploration Project (Evolution earning 80%) ▪ Early-stage epitherm
Slide 34: For personal use only
For personal use only Evolution MIINTINE