Evolution Mining Limited · ASX:EVN
Evolution Mining — Investor Day (September 2018)
120 slides from Evolution Mining's investor day presentation, September 2018
Slide 1: 2018 Investor Day
2018 INVESTOR DAY
Slide 2: Introduction and Market Update
20 18 IN VE STO R DAY INTRODUCTION AND MARKET UPDATE BRYAN O’HARA – GENERAL MANAGER INVESTOR RELATIONS
Slide 3: Safety Briefing
SAFETY You are here BRIEFING Hilton Sydney Hotel State Room Facilities Emergency exits Emergency exits Toilets 3
Slide 4: Evacuation Assembly Point
EVACUATION ASSEMBLY POINT Assembly point on corner of York and Market Street outside the Queen Victoria Building 4
Slide 5: 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 6: Production Target
PRODUCTION TARGET PRODUCTION TARGET FY19 – FY21 Gold Production AISC Sustaining capital Major project capital Period (koz) (A$/oz) (A$/M) (A$M) FY19 720 – 770 850 – 900 105 – 135 150 – 180 FY20 720 – 770 850 – 900 115 – 145 115 – 145 FY21 700 - 750 870 - 920 95 - 125 115 - 145 Cautionary statement c
Slide 7: Investor Day Agenda
INVESTOR DAY AGENDA 9.00am – 11.00am Session One Bryan O’Hara Jake Klein Lawrie Conway Aaron Colleran Glen Masterman Bob Fulker General Manager – Executive Chairman Finance Director and VP – Business VP – Discovery and Chief Operating Officer Investor Relations CFO Development and IR Chief Geologist
Slide 8: Investor Day Agenda
INVESTOR DAY AGENDA 11.20am – 1.00pm Session Two Craig Fawcett Andrew Millar Richard Hay Jason Floyd Jamie Coad General Manager General Manager General Manager General Manager General Manager Cowal Mungari Mt Carlton Cracow Mt Rawdon operation operation operation operation operation 8
Slide 9: Market Update
MARKET UPDATE Australian dollar gold price per ounce A$/oz Australian gold producers in good shape… 1,900 A$ gold price Generating record profits 1,800 Reliable operating performance 1,700 Exciting organic growth opportunities 1,600 Strong balance sheets 1,500 Robust A$ gold price 1,400 Ev
Slide 10: Evolution Snapshot
EVOLUTION SNAPSHOT ASX code EVN Asia Other 3.1% 0.4% Market capitalisation(1) A$4.5B Average daily turnover(2) A$32M UK and Net debt(3) A$72M Europe 18.3% 250,000oz at Australia Forward sales(3) A$1,711/oz 47.9% Payout of 50% of North Dividend policy America after tax earnings 30.3% Van Eck 14.0% Ma
Slide 11: Strategic Vision and Sustainability
2018 INVESTOR DAY STRATEGIC VISION AND SUSTAINABILITY JAKE KLEIN – EXECUTIVE CHAIRMAN
Slide 12: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY Build a reputation for reliability and transparency Reduce All-in sustaining costs Increase free cash flow per share Increase returns via dividends Extend reserve life 12
Slide 13: Portfolio Management
PORTFOLIO MANAGEMENT Group AISC Impact April 2015 Mungari acquisition A$30/oz May 2015 Cowal acquisition A$100/oz August 2016 Ernest Henry economic interest acquisition A$100/oz August 2016 Pajingo divestment A$15/oz September 2017 Edna May divestment A$50/oz Operating cash flow (A$M) Grou
Slide 14: Safety
SAFETY Total Recordable Injury Frequency (TRIF) 24.4 Driving a culture where our people are doing 19.9 the right thing because they want to – not because they have to 12.0 9.6 9.7 8.0 Consistent improvement in Group total 5.5 recordable injury frequency Major work undertaken to improve the quali
Slide 15: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP Five environmental enhancement projects underway Environmental protocols implemented to manage environmental impacts and risk Life of mine environmental management plans developed for all sites Environmental assurance audit program and environmental compliance Per
Slide 16: Socio-Economic Contributions
SOCIO-ECONOMIC CONTRIBUTIONS Social licence to operate score 4.1 out of 5.0 ‘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 A$1B cont
Slide 17: Our People
OUR PEOPLE Attract, engage, develop and retain talent Developing our leaders via bespoke leadership programs Guiding Our Leaders Program (GOLD) completed by 119 of our senior leaders SILVER Program completed by 201 of our front line managers Supporting Graduate Programs and Vacation Employme
Slide 18: Evolution's DNA
EVOLUTION'S DNA Know the opportunity Act boldly Be different Keep an open mind Be humble 18
Slide 19: A Bright Future
A BRIGHT FUTURE Operations Discovery Continued reliable delivery Upgrading our exploration pipeline Intense focus on cost improvements Cowal success to add significant value Developing innovative new technology A$40 – 55M exploration investment in FY19 Business Development Financial Returns Strong t
Slide 20: Financial Discipline and Three Year Outlook
2 0 1 8 I N V E STO R DAY FINANCIAL DISCIPLINE AND THREE YEAR OUTLOOK LAWRIE CONWAY – FINANCE DIRECTOR AND CFO 20
Slide 21: Generating Superior Financial Returns
GENERATING SUPERIOR FINANCIAL RETURNS F Y 1 8 F I N A N C I A L R E S U LTS AISC AIC Low cost A$797/oz 12% 4% A$1,033/oz EBITDA AIC High margin 53% 8% A$612/oz 8% margin margin Group Cash flow High cash cash flow per share generation 4% 2% A$396M 23 cents Strong Gearing Dividends balance 2.7% 83% 7.
Slide 22: Cost Structure
COST STRUCTURE Top seven expense groups account for ~78% of total costs Proactively managing input costs Cost reduction of 10% on A$100M of contracts in past year Other, 22% Continue to competitively test market for cost reductions Employee Major focus on productivity and efficiency improv
Slide 23: Production and Cost Outlook
PRODUCTION AND COST OUTLOOK Production Outlook (koz) Production profile of >700koz for next 3 years 11 770 770 750 22 Decrease from FY18 due to divested asset and grade trending to reserve level Consistent contribution across the portfolio 833 780 720 720 700 Outlook is a base case with upsi
Slide 24: Capital Outlook
CAPITAL OUTLOOK Sustaining Capital Outlook (A$M) Higher sustaining capital at Cowal for next 2 years 145 135 125 Setting up tailings management for extended life FY19: A$20-25M; FY20: A$40-45M; FY21: A$20-25M Consistent sustaining capital at all other sites 116 101 105 115 95 Major project
Slide 25: Return on Investment
RETURN ON INVESTMENT Size of Return on Invested Capital (%) and Asset Payback (%) bubble represents Return on Invested Capital Cracow Mt Carlton 17%p.a. for 24%p.a. for 6.5 years 5 years 100%+ Asset Payback (%) Mt Rawdon 13%p.a. for 6.5 years Cowal 23%p.a. for 50% 3 years Mungari Ernest Henry 20%p.a
Slide 26: Mine Cash Flow
MINE CASH FLOW Mine Cash Flow (A$M)1 812 706 737 733 730 628 272 Strong mine cash flow projected to continue1 244 285 260 240 200 No material decrease from FY18 Grade trending back to reserve 461 540 473 490 428 452 Higher capital investment for future production FY16 FY17 FY18 FY19 FY20 FY2
Slide 27: Capital Management
CAPITAL MANAGEMENT Gearing and Leverage Ratio 1.6 Strong and flexible balance sheet 1.0 Liquidity of A$673M (30 June 2018) 0.6 0.4 Track record of appropriate use of debt 0.1 0.1 32% Gearing of 10-15% in normal environment 24% Gearing of 25-35% for growth or acquisition 15% 16% 4% 3% Wil
Slide 28: Summary
SUMMARY • Sustainable low cost production • Focus on margin over ounces Outlook to FY21 • Investing now to grow production profile • Upside potential taking shape at a number of assets • Low-cost high margin business Costs and margin • Assets self-funding and generating high returns on investments •
Slide 29: Business Development
20 18 IN VE STO R DAY BUSINESS DEVELOPMENT A A R O N CO L L E R A N - V P B U S I N E S S D E V E LO P M E N T A N D I N V E S T O R R E L AT I O N S
Slide 30: M&A Strategy
M&A STRATEGY Improve portfolio quality The rules are reasonably 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 assets Rem
Slide 31: M&A Capability
M&A strategy provides clarity on M&A CAPABILITY how M&A will create value A clear and consistent strategy helps to generate appropriate targets Integration is critically important 2010 Takeover of North Queensland Minerals Provide clear accountability for Deal logic must clearly identify
Slide 32: Current Environment
CURRENT ENVIRONMENT M&A is starting to play an important role in exploration strategy – M&A as exploration leading to increased investment in early stage assets An unprecedented reversal of fortunes – leading to relative merit in Foreign affairs Australian companies looking at assets in North Americ
Slide 33: Delivering on Discovery
20 18 IN VE STO R DAY DELIVERING ON DISCOVERY GLEN M AST ER M A N - VP DIS COVERY 33
Slide 34: Exploration Footprint
EXPLORATION FOOTPRINT Approach: Upgrade the pipeline People Tactics Deposit Styles Geographic Drummond • New, invigorated • Build land positions • Epithermal – Focus Project Mt Carlton world class team in key camps low/intermediate & • Emphasis in A$1–2M A$1–2M • Fostering a • 3D architecture high s
Slide 35: Evolution Pipeline
EVOLUTION PIPELINE Exploration Conceptual/ Project Studies Development Operating Assets Scoping Projects Connors Arc Cowal Mungari E42 OP Regional Mungari Mungari Drummond 150koz OP + UG Basin Cracow Cowal Mt Cowal UG Cowal Regional Carlton Stage H 300koz Mt UG FTL Carlton Tennant OP Creek Mt Marsde
Slide 36: Cowal 'Known' Endowment
COWAL “KNOWN” ENDOWMENT E42 Reserves 3.0Moz Resource 4.1Moz Past Production 2.8Moz Total E42 Endowment >6Moz December 2017 Resource 5.8Moz Au Reserves 3.0Moz Au See the Appendix of this presentation for details of Mineral Resources and Ore Reserves 36
Slide 37: E42 & GRE46: Results ≥ 1.0 g/t Au
E42 & GRE46: RESULTS ≥ 1.0 g/t Au 2 kilometres Inferred Mineral Resource: 5.9Mt at 3.2 g/t Au for 603koz Stage G – current surface 1.6@58.2 1535DD324 MSO shapes 7.5@10.0 Stage H final pit shell 1535DD330 500 metres Area of recent infill drilling & Discovery of Dalwhinnie Lode See the Appendix of thi
Slide 38: Dalwhinnie Lode
DALWHINNIE LODE 86,300mE 86,400mE 86,500mE 86,600mE E46D3170 700mRL 1@7.9 E46D3219 E46RCD3061A 2@16.2 600mRL E46D3171 1@38.0 500mRL MSO E46D3219 shapes 6@67.3 E46D3202 1@17.4 400mRL 1535DD331H 3@69.9 Further information on reported exploration results is provided in the Drill Hole Information Summar
Slide 39: GRE46 Exploration Decline
GRE46 EXPLORATION DECLINE 2 kilometres Stage G – current surface Stage H final pit shell MSO shapes Design details • 2,000 metres, 5.5mW x 5.5mH, 1:7 downward gradient • A$20–22 million development • A$6–7 million underground drilling (36,000m) • Permit submitted with Division of Resources & Geoscie
Slide 40: Planned Underground Drilling
PLANNED UNDERGROUND DRILLING Opportunity Confirm and expand high grade GRE46 resource UG project studies and production permitting Blend 3 – 4g/t Au underground feed and open pit ore to improve head grade Targeting 750 – 1,000ktpa production rate Accelerate underground schedule to match pl
Slide 41: E41 West Block Model
E41 WEST BLOCK MODEL 41
Slide 42: Drilling Constrained
DRILLING CONSTRAINED 42
Slide 43: Mungari – Frog's Leg Deep Target
MUNGARI – FROG'S LEG DEEP TARGET Minimum target size – 50koz to 100koz depending on grade Importance of K2 position in Ora Banda stratigraphy Seeking repeat of “flexure” 320m decline extension, 4,900m drilling Scheduled completion mid-February 43
Slide 44: Ora Banda Camp
ORA BANDA CAMP ~3Moz historic gold production and resources at >3g/t Au Same stratigraphy recognised at Frog's Leg Preservation of the K2 and K2B positions on Evolution tenements (eg Scottish Archer) Gimlet South and Enterprise deposits developed on structures orientated at a high angle to s
Slide 45: Ora Banda Camp
ORA BANDA CAMP Perimeter is a high-grade Gimlet South analogue Scottish Archer is high-grade Frog’s Leg style analogue hosted by parallel structures in the Bent Tree Basalt hosted by similar stratigraphy 1. This information is extracted from the report entitled “March 2018 Quarterly Report” released
Slide 46: HyMap Airborne Mapping Technology
HYMAP AIRBORNE MAPPING TECHNOLOGY CRACOW MT CARLTON Mineralisation at Mt Carlton developed within Cracow high-grade veins develop on the edges of magmatic hydrothermal centres. We identify “hot magmatic-hydrothermal centres spots” as accumulations of low pH clay. 46
Slide 47: Queensland Portfolio
QUEENSLAND PORTFOLIO Drummond Project (Evolution earning 80%) Early-stage epithermal (low-sulfidation) vein project, 520km2 Similar geologic setting to Pajingo Out-cropping veins exposed at a high level in the system, positive geochemical responses Drill-ready targets identified Connors Arc
Slide 48: Innovation and Asset Optimisation
2018 INVESTOR DAY INNOVATION AND ASSET OPTIMISATION B O B F U L K E R – C H I E F O P E R AT I N G O F F I C E R 48
Slide 49: Taking It to the Next Level
TAKING IT TO THE NEXT LEVEL Clear Embed a devolved model expectations Accountability and authority to make agile decisions Delivery at or above target Accountability Working "on" the business – not "within" it Project "Simplification" Asset optimisation Culture and Operational discipline eff
Slide 50: Innovation – Fast Firsts
INNOVATION – FAST FIRSTS Evaluate concepts quickly First to develop Azi Aligner technology in partnership with Minnovare Reduction in hole deviation; reduction in average dilution and downtime; improvement in ore recovery Embraced by industry peers Azi Aligner at Cracow First for High-intens
Slide 51: Innovations in the Pipeline
INNOVATIONS IN THE PIPELINE On the drawing board Data analytics identified business improvement opportunities Power Fragmentation Overall Equipment Effectiveness (OEE) – real time data capture and analysis Glycat to reduce cyanide use Underway World first on-line gold analysis (OLGA) – c
Slide 52: Ernest Henry Operation
2018 INVESTOR DAY ERNEST HENRY OPERATION B O B F U L K E R – C H I E F O P E R AT I N G O F F I C E R
Slide 53: A World Class Asset
A WORLD CLASS ASSET Large scale, long life, low cost asset operated by Glencore History of reliable operational delivery Exceptionally high margins Low capital intensity Opportunity to extend mine life below 1,200mRL 53
Slide 54: Site Overview
54 SITE OVERVIEW 35km north east of Cloncurry, Location Queensland Mining method Underground – sub level cave Minerals Copper and gold Mineralisation type Iron oxide copper-gold Plant capacity 8.5Mtpa Single-line processing circuit Process method producing copper-gold sulphide Cumulative net mine ca
Slide 55: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production1 95koz Gold production 85 – 90koz Copper production1 21kt Copper production 19 – 21kt Tonnes processed1 6,759kt AISC A$(575) – A$(525)/oz Grade processed 0.56g/t Au, 1.12% Cu Sustaining capital A$10 – A$15M AISC1 A$(641)/oz Major capital A$0M Operating
Slide 56: Opportunity Below 1200RL
OPPORTUNITY BELOW 1200RL 1,200mRL Drilling target Evolution's interest: 100% gold produced 30% future copper 1200mRL and silver produced Evolution's interest: Ernest Henry ore body looking west 49% of future copper, Current Mineral gold and silver Resource outline production from new reserves area O
Slide 57: Question and Answer Session
QUESTION AND ANSWER SESSION
Slide 58: Investor Day Agenda
INVESTOR DAY AGENDA 11.20am – 1.00pm Session Two Craig Fawcett Andrew Millar Richard Hay Jason Floyd Jamie Coad General Manager General Manager General Manager General Manager General Manager Cowal Mungari Mt Carlton Cracow Mt Rawdon operation operation operation operation operation
Slide 59: Melbourne Cup Video
20 18 IN VE STO R DAY MELBOURNE CUP VIDEO CLICK HERE
Slide 60: Cowal Operation
2018 INVESTOR DAY COWAL OPERATION C R A I G FAW C E T T - G E N E R A L M A N AG E R
Slide 61: Evolution's Cornerstone
EVOLUTION’S CORNERSTONE Sustainable, reliable, low cost production 3 year net mine cash flow of A$431M Developing a pathway to increase production to >300kozpa Exploration success delivering 10+ years organic mine life extensions Underexplored region offers immense untapped potential 61
Slide 62: Site Overview
Cowal – a world class deposit SITE OVERVIEW Approximately 40km north-east of West Location Wyalong in New South Wales, Australia Mining method Conventional open pit Minerals Gold Structurally hosted epithermal to mesothermal Mineralisation type sheeted veins and shear hosted lodes Grinding, gravity,
Slide 63: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production 258koz Gold production 240 – 250koz AISC A$877/oz AISC A$975 – A$1,075/oz Tonnes processed 7,795kt Sustaining capital A$55 – A$60M Grade processed 1.25g/t Au Major capital A$90 – A$100M Operating mine cash flow A$226M Resource definition A$3 – A$7M Net
Slide 64: Sustainability
SUSTAINABILITY Total Recordable Injury Frequency (TRIF) 20 SAFETY 10 TRIF reduced by 55% to 3.3 as at June 2018 Focus on: 0 Cultural safety COMMUNITY Total local procurement spend of A$28M p.a. ~75% of employees are permanent residents ~6% of employees are Indigenous Partnership with W
Slide 65: Modification Application
MODIFICATION 14 APPLICATION Proposed layout of Integrated Waste Landform (IWL) Integrated Waste Landform (IWL) joining with current waste dump and surrounding TSF Proposed tailings solution to support plant expansion to 9.8Mtpa Footprint contained within existing Mining Lease boundary Key enab
Slide 66: Value Adding Projects
VALUE ADDING PROJECTS A significant investment in Cowal’s future Stage H cutback on track Planned material movement achieved in FY18 Major capital stripping scheduled to be completed in FY21 Float Tails Leach project Stage H cutback On time and on budget Expected to increase recoveries b
Slide 67: Untapped Potential
UNTAPPED POTENTIAL E42 Reserves 3.0Moz Resource 4.1Moz Past Production 2.8Moz Total E42 Endowment >6Moz December 2017 Resource 5.8Moz Au Reserves 3.0Moz Au 67
Slide 68: Preliminary GRE46 UG and In-Wall Ramp
PRELIMINARY GRE46 UG AND IN-WALL RAMP New high-grade intercepts from infill drilling include: Hole ID Intercept *downhole width From 1535DD331B 32m@2.63g/t 753m 1535DD331C 10m@1.6g/t 747m 1535DD331D 24m@1.71g/t 712m 28m@3.82g/t 766m New high-grade infill 5m@16.44g/t 805m drilling results 1535DD331
Slide 69: E41 Open Pit and Underground Potential
E41 OPEN PIT AND UNDERGROUND POTENTIAL 69
Slide 70: Key Takeaways
KEY TAKEAWAYS Current Ore Reserves and Mine Plan to 2032 Underground development on GRE46 to commence in June 2019 half year Planning underway to achieve a consistent production rate in excess of 300kozpa for 20+years 70
Slide 71: Mungari Operation
2018 INVESTOR DAY MUNGARI OPERATION A N D R E W M I L L A R – G E N E R A L M A N AG E R
Slide 72: Unlocking the Potential
U N LO C K I N G T H E P OT E N T I A L 10 year mine life Reliable low cost mill Strategic footprint in world class gold district Opportunity for high-grade discoveries to increase production, lower costs and extend mine life Vastly improved cash flow expected in FY19 72
Slide 73: Site Overview
73 SITE OVERVIEW 600km east of Perth, 20km west of Location Kalgoorlie, Western Australia Kalgoorlie Mining method White Foil: open-pit Frog’s Leg: underground Minerals Gold Mineralisation type Quartz and stockwork veins Process method 3-stage crush and conventional CIL Plant capacity Above nameplat
Slide 74: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production 118koz Gold production 125 – 135koz AISC A$1,181/oz AISC A$1,050 – A$1,100/oz Tonnes processed 1,654kt Sustaining capital A$10 – A$15M Grade processed 2.36g/t Au Major capital A$0 – A$5M Operating cash flow A$71M Resource definition A$2 – A$4M Net mine
Slide 75: Embracing Innovation
EMBRACING INNOVATION Sagging in backs In progress Un-constraining the crushing and leach circuits to increase throughput (1.9 – 2.0Mtpa) Heap leaching studies Floor heave Pillar damage Ore sorting – to deliver highest grade to plant Data analysis of seismicity to identify potential Example i
Slide 76: Sustainability
SUSTAINABILITY SAFETY Significant reduction in TRIF under Evolution ownership from 35 to 8.5 Operational personnel seconded to safety; ownership of safety; focus on small things; training commitments COMMUNITY Strong local community support: e.g. Hannans Primary School adventure playground com
Slide 77: Unlocking the Potential
UNLOCKING THE POTENTIAL Ore Reserves and Mineral Resources provide solid 10 Objective year base load production platform to build on Increase production to 150,000oz per annum Current 10 year mine plan ore sources Frog’s Leg underground White Foil open pit and underground Castle Hill open
Slide 78: Lift in Cash Flow
LIFT IN CASH FLOW Investment in White Foil cutback to deliver increased cash flow FY19 and FY20 Strip ratio reducing to 3.3:1 (FY18: 18.8:1) Stage 3 78
Slide 79: Castle Hill
CASTLE HILL Evolution 100% ownership and unfettered access to the Castle Hill deposit – termination of Norton agreement 25km from Mungari processing plant Mineral Resources of 695,000 ounces and Ore Reserves of 236,000 ounces1 Castle Hill project Kiora, Mick Adam and Wadi deposits Ore Re
Slide 80: Ora Banda Camp
ORA BANDA CAMP Focused exploration program prioritising targets with potential to deliver high grade Recent drilling results illustrating grade potential in the well endowed Ora Banda camp – ~3Moz historic production and resources at >3g/t Au Several areas ineffectively explored for Ora Banda
Slide 81: Key Takeaways
KEY TAKEAWAYS 10 year mine life Reliable low cost mill Strategic footprint in a world-class gold district Opportunity for high-grade discoveries to increase production, lower costs and extend mine life 81
Slide 82: Mt Carlton Operation
2018 INVESTOR DAY MT CARLTON OPERATION R I C H A R D H AY – G E N E R A L M A N AG E R
Slide 83: Exceptional Returns
EXCEPTIONAL RETURNS Three year average net mine cash flow A$101 million Three year average ROIC of 34% One of the highest grade open pit gold mines in the world Innovative culture driving impressive performance Current mine life to FY25 83
Slide 84: Site Overview
SITE OVERVIEW 150km southeast of Townsville, Location Queensland Mining method Open pit Minerals Gold, silver, copper Mineralisation type High-sulphidation epithermal Process method Crush-grind-gravity-flotation Plant capacity 800 – 840ktpa Recovery 90 – 91% Ore Reserves1 4.50Mt @ 4.92g/t for 712koz
Slide 85: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production 112koz Gold production 95 – 105koz AISC A$535/oz AISC A$670 – A$720/oz Tonnes processed 801kt Sustaining capital A$7.5 – A$12.5M Grade processed 5.61g/t Au Major capital A$25 – A$30M Operating cash flow A$140M Resource Definition A$1 – A$3M Net mine cas
Slide 86: Sustainability
SUSTAINABILITY Total Recordable Injury Frequency (TRIF) 20 Safety 10 TRIF reduced from 8.2 to 3.9 in FY18 Critical Controls and Safety Culture focus 0 Environment ISO14001 Certification August 2018 Environmental enhancement project - Kalamia Creek Burdekin waterways improvement reducing ha
Slide 87: Innovative Culture
INNOVATIVE CULTURE M A I N TA I N I N G A LOW CO ST O P E R AT I O N Achieved Successful commercialisation of a refractory high-sulphidation epithermal gold-silver-copper deposit Gravity circuit increased overall recoveries Improved concentrate thickener performance Open pit cutback on budge
Slide 88: Mine Life Extensions
MINE LIFE EXTENSIONS N Open pit Open pit and underground Stage 3 - current Finalising assessment of a Stage 4 open pit with an underground expected to commence in Q1FY20 Underground brings forward mining of high-grade ore N Maintain current owner miner model for open pit mining fleet Open pit
Slide 89: Value Proposition
VALUE PROPOSITION Proven innovative culture maintaining focus on maximising value Continued high cash margin operation Mine life extensions 89
Slide 90: Cracow Operation
2018 INVESTOR DAY CRACOW OPERATION J A S O N F LOY D – G E N E R A L M A N AG E R
Slide 91: Leading Innovation
LEADING INNOVATION Strong history of reserve replacement Consistent operational performance Three year average net mine cash flow ~A$40 million Current mine life to 2023 Exciting exploration potential Motivated team unlocking value through innovation 91
Slide 92: Site Overview
SITE OVERVIEW 500km north-west of Brisbane, Location Queensland Mining method Underground – open stoping Minerals Gold and silver Mineralisation type Low-sulphidation epithermal Plant capacity 550ktpa Process method Conventional crush-grind-CIP Cracow Ore Reserves vs Depletion 1,000 Recovery 93 – 95
Slide 93: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production 90koz Gold production 80 – 85koz AISC A$1,181/oz AISC A$1,250/oz – A$1,300/oz Tonnes processed 529kt Sustaining capital A$17.5M – A$22.5M Grade processed 5.63g/t Au Major capital A$10M – A$15M Operating cash flow A$46M Resource definition A$4M – A$10M N
Slide 94: Sustainability
SUSTAINABILITY Total Recordable Injury Frequency (TRIF) 30 SAFETY 20 TRIF reduced from 25.8 to 14.0 Significant focus in FY18 on fatigue management 10 COMMUNITY High approval rating for social licence to operate from 0 community stakeholders – 2018 Stakeholder Perception Survey Good relation
Slide 95: Ongoing Innovation
ONGOING INNOVATION Fast First and Early Adopter Partnered with Outotec on world-first application of a high-intensity grind mill resulting in a 2% increase in recovery Partnered with Minnovare to develop the Azi Aligner– early adopter Improved drilling accuracy Up to 50% reduction in stope d
Slide 96: Exciting Exploration Potential
EXCITING EXPLORATION POTENTIAL 150,000 ounces added to Ore Reserves1 in December 2017 Key focus areas for further resource growth – Killarney, Sterling Approximately 20% of annual production sourced from outside Mineral Resources and Ore Reserves 1. Prior to mining depletion. See the Appendix
Slide 97: Exciting Exploration Potential
EXCITING EXPLORATION POTENTIAL KLU065 8.4@15.8 Killarney KLU070 1.0@5.9 KLU067 1.0@14.5 KLU057 1.6@7.4 1. This information is extracted from the report entitled “June 2018 Quarterly Report” released to the ASX on 19 July 2018 and available to view on www.evolutionmining.com.au. 97
Slide 98: Exciting Exploration Potential
EXCITING EXPLORATION POTENTIAL CNU216 2.1@12.8 CBK131 CBK330 STU004 1.3@24.7 CNU223 1.6@6.4 1.6@1.4 2.1@20.8 CNU226 0.7@4.3 STU005 1.2@2.3 100 metres Coronation ? ? Sterling ? 350 metres STU001 CNU222a CNU214 2.1@10.8 2.1@1.2 1.2@10.8 1. This information is extracted from the report entitled “Decemb
Slide 99: Key Takeaways
KEY TAKEAWAYS Consistent operational performance and cash flow generation Track record of reserve replacement and exciting exploration potential Empowered team driving innovation 99
Slide 100: Mt Rawdon Operation
2018 INVESTOR DAY MT RAWDON OPERATION J A M I E C OA D – G E N E R A L M A N AG E R
Slide 101: Transitioning to Cash Flow Growth
T R A N S I T I O N I N G TO C AS H F LOW G R OW T H Over 1.5Moz gold produced since 2001 Current mine life to 2025 Talented and motivated local workforce Engaged and supportive community Potential reserve expansion 101
Slide 102: Site Overview
SITE OVERVIEW 75km south west of Bundaberg, Location Queensland Mining method Conventional open-pit Minerals Gold and silver Mineralisation type Volcaniclastic hosted Process method Conventional crush-grind-CIL Mt Rawdon Ore Reserves vs Depletion Plant capacity 3.5Mtpa 1,500 Recovery 88 - 90% 1,000
Slide 103: FY18 Performance FY19 Guidance
FY18 PERFORMANCE FY19 GUIDANCE Gold production 105koz Gold production 95 – 105koz Tonnes processed 3,241kt AISC A$1,000 – A$1,050/oz Grade processed 1.14g/t Au Sustaining capital A$5 – A$10M AISC A$884/oz Major capital A$25 – A$30M Operating cash flow A$69M Exploration A$0 – A$2M Net mine cash flow
Slide 104: Sustainability
SUSTAINABILITY 50 Total Recordable Injury Frequency (TRIF) 40 SAFETY 30 TRIF reduced from 43.1 to 5.1 since November 2011 20 Innovation to reduce manual handling 10 Barrel Mate wins “Peoples Choice Award” – 0 Queensland Mining Industry Health and Safety 2018 COMMUNITY Shared Value Project –
Slide 105: Potential Reserve Expansion
POTENTIAL RESERVE EXPANSION Looking north Current resource model Ore Current Reserve Drilling Pit Design information 0m 400m 400m Area of opportunity 105
Slide 106: Innovative Culture
INNOVATIVE CULTURE Innovations in technology Truck payload optimisation – Titan software CaBolter – underground cable bolter applied in an open pit for faster bolting Driverless drill rig – safety and cost saving benefits Barrel Mate – safety innovation developed at Mt Rawdon Innovative ty
Slide 107: Key Takeaways
KEY TAKEAWAYS Transitioning to cash flow growth Low cost and high margin operation Seven years mine life with growth potential Innovative culture Engaged and motivated workforce 107
Slide 108: Closing Remarks and Q&A
CLOSING REMARKS AND ca— < Q&A = oe
Slide 109: A Business That Prospers Through the Cycle
A BUSINESS THAT PROSPERS THROUGH THE CYCLE High quality, low cost, long life assets Discovery success Financial discipline Strong vision, values and sense of purpose Counter-cyclical investment 109
Slide 110: Appendix
APPENDIX Evolution MINING
Slide 111: Evolution 2017 Gold Mineral Resources
EVOLUTION 2017 GOLD MINERAL RESOURCES EVOLUTION 2017 GOLD ORE RESERVES Group Gold Mineral Resources – December 2017 Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade M
Slide 112: Evolution 2017 Gold Ore Reserves
EVOLUTION 2017 GOLD ORE RESERVES EVOLUTION 2017 GOLD ORE RESERVES Group Gold Ore Reserves – December 2017 Gold Proved Probable Total Reserve Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (k
Slide 113: Evolution 2017 Copper Reserves & Resources
EVOLUTION 2017 COPPER RESERVES & RESOURCES EVOLUTION 2017 GOLD ORE RESERVES 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 Gra
Slide 114: Competent Persons
COMPETENT PERSONS Competent Persons Statement The information in this report that relates to exploration results and exploration targets listed in the table below is based on work compiled by the person whose name appears in the same row, who is employed on a full-time basis by Evolution Mining Limi
Slide 115: Drill Hole Information Summary
DRILL HOLE INFORMATION SUMMARY Cowal CBK131* DD 7201630 223651 268 735.00 -50 94 639.2 2.3 1.3 24.7 CBK330* DD 7201475 223590 284 819.70 -55 84 698.0 2.4 1.7 6.4 CNU214 UG DD 7201290 224302 -194 236.50 -25 265 220.5 1.4 1.2 6.7 CNU216 UG DD 7201290 224302 -194 231.10 -19 267 206.1 2.3 2.1 12.8 CNU22
Slide 116: JORC Code 2012 Assessment and Reporting Criteria
JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA Cracow Section 1 Sampling Techniques and Data Criteria Commentary Sampling Sample types collected at Cracow and used in the reporting of assays were all diamond drill core. Sample intervals for drill core were determined by visual logging of lithology
Slide 117: JORC Code 2012 Assessment and Reporting Criteria
JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA Cracow Section 1 Sampling Techniques and Data Criteria Commentary Verification of Verification of assay results was standard practice, undertaken at a minimum once per year. In 2015, 547 pulp samples from Cracow drillcore were retested at SGS Townsvil
Slide 118: JORC Code 2012 Assessment and Reporting Criteria
JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA Cracow Section 2 Reporting of Exploration Results Criteria Commentary Mineral ML3219, ML3221, ML3223, ML3224, ML3227, ML3228, ML3229, ML3230, ML3231, ML3232, ML3243, ML80024, ML80088, ML80089, ML80114, ML80120, ML80144, EPM15981 and EPM26311 are all w
Slide 119: JORC Code 2012 Assessment and Reporting Criteria
JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA Cracow Section 2 Reporting of Exploration Results Criteria Commentary Diagrams Schematic sections are provided below. Reported resource definition results are not considered exploration results. Sterling plan view showing drilled holes Balanced Assay
Slide 120: Evolution Mining
Evolution MINING