Slide 1: Acquisition of Ernest Henry Investor Presentation
Pictured: Ernest Henry Acquisition of Ernest Henry Investor Presentation 17 November 2021
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: A Transformative Acquisition
A TRANSFORMATIVE ACQUISITION 1 Aligned with strategy – a world-class asset in a Tier 1 jurisdiction operated to a consistently high standard 2 Immediate material increase in cash flow generation 3 Lowers Group All-in Sustaining Cost Cements Evolution as one of the world's lowest cost gold producers
Slide 4: Sector Leading Low-Cost Position
SECTOR LEADING LOW-COST POSITION CY21 / FY22 Benchmarking AISC1,2,3 (US$/oz) Ernest Henry’s high margins expected to contribute to a ~12% decrease in Group AISC on an annualised basis – supporting an industry leading cost profile among global gold producer peers 6% reduction in FY22 US$1,547- 1,617
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Attributable Production Above 1,200RL 100% 100% 100% +70% Acquiring full ownership of the Ernest Henry operation from Glencore 30% A$1B total consideration comprising A$800M payable at completion and A$200M payable 12 months after completion Gold Copper Funded via existing
Slide 6: Asset Snapshot
ASSET SNAPSHOT 38km north-east of Cloncurry, Queensland Asset Overview A well capitalised asset operated by a highly capable team Commodities Gold, Copper, Silver ~600 employees and contractors, a mixture of residential and Ownership2 100% fly-in fly-out / drive-in drive-out Location Queen
Slide 7: Material Improvement in All Metrics
MATERIAL IMPROVEMENT IN ALL METRICS Copper Production (Cu kt) Ernest Henry generated A$323M of operating cash flow and A$309M of net mine cash flow for Evolution in FY21 ~60 Evolution’s original investment repaid in less than five years 38 Increased copper production drives materially lower AI
Slide 8: Mine Life Extension Opportunity
MINE LIFE EXTENSION OPPORTUNITY Concept study findings give confidence of a 4 – 5 Copper and gold mineralisation year mine life extension down to the 875mRL domains delineated by drilling Project now in Pre-feasibility Study (PFS) with completion expected in the September 2022 quarter PFS acti
Slide 9: Strong Balance Sheet Further Enhanced
STRONG BALANCE SHEET FURTHER ENHANCED Immediate cash flow supports balance sheet structure New US Private Placement of US$200M (A$273M) Debt Gearing (%)1 Facility B term loan aligns to Ernest Henry cash generation Average debt maturity of 6 years 29% 32% 7% Covers for deferred consideratio
Slide 10: Updated FY22 Guidance and Three-Year Outlook
UPDATED FY22 GUIDANCE AND THREE-YEAR OUTLOOK Group Three-Year Outlook No change to Group gold production guidance Evolution FY22 FY23 FY24 Group Copper increases by ~40ktpa to ~60ktpa Half-year benefit in FY22 Gold 830 915 725 Production 775 855 Group AISC reduces by ~12% over three years (k
Slide 11: Organic Growth at All Assets
ORGANIC GROWTH AT ALL ASSETS Underground mine approvals received and development now underway Targeting 350k ounces of production in FY24 Cowal District consolidation with acquisition of Battle North Gold Targeting 350k ounces of production in FY26 Red Lake District consolidation with acqu
Slide 12: Portfolio of Long-Life, High-Margin Assets
PORTFOLIO OF LONG-LIFE, HIGH-MARGIN ASSETS Evolution Portfolio1,2,3 Production Base2 5,000 3,000 Ernest Henry 100koz (economic interest) 2,500 3,500 Ernest Henry 100% LOM AISC Margin (A$/oz)1 Cowal 2,000 Red Lake Mungari 1,500 Mt Rawdon 1,000 500 - - 2 4 6 8 10 12 14 16 18 Mine Life3 (1) LOM AISC Ma
Slide 13: Summary – A Transformative Acquisition
SUMMARY – A TRANSFORMATIVE ACQUISITION Immediate cash Significant World-class flow generation organic growth asset in a Tier 1 and material from mine life mining reduction in cost extension jurisdiction per ounce opportunity 13
Slide 14: Appendix
Pictured: Evolution flotation circuit APPENDIX
Slide 15: Ernest Henry Operation Overview
ERNEST HENRY OPERATION OVERVIEW Mining Overview Processing Overview Underground mining operation employing sub-level caving ore Current ore processing rate of ~6.8Mtpa (8.5Mtpa capacity and extraction method scalable to ~11Mtpa) Underground primary crusher and ore handling system Concentrato
Slide 16: Evolution 2020 Gold Mineral Resources
EVOLUTION 2020 GOLD MINERAL RESOURCES Group Gold Mineral Resource Statement as at 31 December 2020 – excludes Battle North Gold (Bateman Project), Kundana and EKJV assets Dec 19 Gold Measured Indicated Inferred Total Resource CP4 Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes
Slide 17: Evolution 2020 Gold Ore Reserves
EVOLUTION 2020 GOLD ORE RESERVES Group Gold Ore Reserves Statement as at 31 December 2020 – excludes Battle North Gold (Bateman Project), Kundana and EKJV assets Dec 19 Gold Proved Probable Total Reserve Reserves CP4 Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal Gold Metal Pro
Slide 18: Evolution 2020 Copper Resources & Reserves
EVOLUTION 2020 COPPER RESOURCES & RESERVES Group Copper Mineral Resources and Ore Reserves as at 31 December 2020 Dec 19 Copper Measured Indicated Inferred Total Mineral Resource Resource Copper Copper Copper Copper Copper Copper Copper Copper CP2 Tonnes Tonnes Tonnes Tonnes Copper Project Type Cut-
Slide 19: Kundana & EKJV Assets Resources & Reserves
KUNDANA & EKJV ASSETS RESOURCES & RESERVES Kundana and EKJV Assets Mineral Resources Statement1 as at 31 March 2021 Gold Measured Indicated Inferred Total Resource Tonnes Gold Grade Gold Metal Gold Grade Gold Metal Gold Grade Gold Metal Gold Grade Gold Metal Project Tonnes (Mt) Tonnes (Mt) Tonnes (M
Slide 20: Ernest Henry Resources & Reserves
ERNEST HENRY RESOURCES & RESERVES Ernest Henry Gold and Copper Mineral Resources as at 31 December 2020 reported at 100% basis Gold Measured Indicated Inferred Total Mineral Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes Project Type Cut-Off Grade Metal Grade Metal Grad
Slide 21: Evolution Mining
Evolution MINING