Evolution Mining Limited · ASX:EVN

Evolution Mining — Investor Day (September 2018)

57 slides from Evolution Mining's investor day presentation, Sep 4, 2018

1. Slide 1: 2018 Investor Day

   For personal use only 2018 INVESTOR DAY

2. Slide 2: Introduction and Market Update

   20 18 IN VE STO R DAY INTRODUCTION AND For personal use only MARKET UPDATE BRYAN O’HARA – GENERAL MANAGER INVESTOR RELATIONS

3. Slide 3: Safety Briefing

   SAFETY For personal use only You are here BRIEFING  Hilton Sydney Hotel  State Room  Facilities  Emergency exits Emergency exits Toilets 3

4. Slide 4: Evacuation Assembly Point

   EVACUATION ASSEMBLY POINT For personal use only  Assembly point on corner of York and Market Street outside the Queen Victoria Building 4

5. Slide 5: 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

6. Slide 6: Production Target

   PRODUCTION TARGET For personal use only 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

7. Slide 7: Investor Day Agenda - Session One

   INVESTOR DAY AGENDA 9.00am – 11.00am Session One For personal use only 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

8. Slide 8: Investor Day Agenda - Session Two

   INVESTOR DAY AGENDA 11.20am – 1.00pm Session Two For personal use only 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 oper

9. Slide 9: Market Update

   MARKET UPDATE For personal use only 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

10. Slide 10: Evolution Snapshot

    EVOLUTION SNAPSHOT For personal use only 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

11. Slide 11: Strategic Vision and Sustainability

    For personal use only 2018 INVESTOR DAY STRATEGIC VISION AND SUSTAINABILITY JAKE KLEIN – EXECUTIVE CHAIRMAN

12. Slide 12: Clear and Consistent Strategy

    For personal use only 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

13. Slide 13: Portfolio Management

    PORTFOLIO MANAGEMENT For personal use only 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 Operatin

14. Slide 14: Safety

    SAFETY Total Recordable Injury Frequency (TRIF) 24.4 For personal use only 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 undertake

15. Slide 15: Environmental Stewardship

    ENVIRONMENTAL STEWARDSHIP For personal use only  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 environm

16. Slide 16: Socio-Economic Contributions

    SOCIO-ECONOMIC CONTRIBUTIONS For personal use only  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 o

17. Slide 17: 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 119 of our senior leaders  SILVER Program completed by 201 of our front line managers  Supporting Graduate Programs

18. Slide 18: Evolution's DNA

    EVOLUTION'S DNA For personal use only Know the opportunity Act boldly Be different Keep an open mind Be humble 18

19. Slide 19: A Bright Future

    For personal use only 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 Fina

20. Slide 20: Financial Discipline and Three Year Outlook

    2 0 1 8 I N V E STO R DAY FINANCIAL DISCIPLINE For personal use only AND THREE YEAR OUTLOOK LAWRIE CONWAY – FINANCE DIRECTOR AND CFO 20

21. 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 For personal use only 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 Dividen

22. Slide 22: Cost Structure

    COST STRUCTURE For personal use only  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

23. Slide 23: Production and Cost Outlook

    PRODUCTION AND COST OUTLOOK Production Outlook (koz) For personal use only  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

24. Slide 24: Capital Outlook

    CAPITAL OUTLOOK Sustaining Capital Outlook (A$M) For personal use only  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

25. Slide 25: Return on Investment

    RETURN ON INVESTMENT For personal use only 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 Munga

26. Slide 26: Mine Cash Flow

    MINE CASH FLOW Mine Cash Flow (A$M)1 812 706 737 733 730 For personal use only 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 F

27. Slide 27: Capital Management

    CAPITAL MANAGEMENT Gearing and Leverage Ratio For personal use only 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 acquisiti

28. Slide 28: Summary

    SUMMARY For personal use only • 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 re

29. Slide 29: Business Development

    For personal use only 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

30. Slide 30: M&A Strategy

    M&A STRATEGY Improve portfolio quality For personal use only  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  Integra

31. 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 For personal use only  Integration is critically important  2010 Takeover of North Queensland Minerals  Provide clear accountability for  Deal logic

32. Slide 32: Current Environment

    CURRENT ENVIRONMENT For personal use only 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

33. Slide 33: Delivering on Discovery

    20 18 IN VE STO R DAY DELIVERING ON For personal use only DISCOVERY GLEN M AST ER M A N - VP DIS COVERY 33

34. Slide 34: Exploration Footprint

    EXPLORATION FOOTPRINT For personal use only 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 •

35. Slide 35: Evolution Pipeline

    EVOLUTION PIPELINE For personal use only 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 Tenn

36. Slide 36: Cowal 'Known' Endowment

    COWAL “KNOWN” ENDOWMENT For personal use only 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

37. Slide 37: E42 & GRE46: Results ≥ 1.0 g/t Au

    E42 & GRE46: RESULTS ≥ 1.0 g/t Au For personal use only 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 S

38. Slide 38: Dalwhinnie Lode

    DALWHINNIE LODE For personal use only 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 H

39. Slide 39: GRE46 Exploration Decline

    GRE46 EXPLORATION DECLINE For personal use only 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

40. Slide 40: Planned Underground Drilling

    PLANNED UNDERGROUND DRILLING For personal use only 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 undergroun

41. Slide 41: E41 West Block Model

    E41 WEST BLOCK MODEL For personal use only 41

42. Slide 42: Drilling Constrained

    DRILLING CONSTRAINED For personal use only 42

43. Slide 43: Mungari – Frog's Leg Deep Target

    MUNGARI – FROG'S LEG DEEP TARGET For personal use only  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

44. Slide 44: Ora Banda Camp

    ORA BANDA CAMP For personal use only  ~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 orientate

45. Slide 45: Ora Banda Camp

    ORA BANDA CAMP For personal use only 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 Quar

46. Slide 46: HyMap Airborne Mapping Technology

    HYMAP AIRBORNE MAPPING TECHNOLOGY For personal use only 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

47. Slide 47: Queensland Portfolio

    QUEENSLAND PORTFOLIO For personal use only 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 i

48. Slide 48: Innovation and Asset Optimisation

    For personal use only 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

49. Slide 49: Taking It to the Next Level

    TAKING IT TO THE NEXT LEVEL For personal use only 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  Oper

50. Slide 50: Innovation – Fast Firsts

    INNOVATION – FAST FIRSTS For personal use only 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 

51. Slide 51: Innovations in the Pipeline

    INNOVATIONS IN THE PIPELINE For personal use only 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 go

52. Slide 52: Ernest Henry Operation

    2018 INVESTOR DAY ERNEST HENRY For personal use only 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

53. Slide 53: A World Class Asset

    A WORLD CLASS ASSET For personal use only 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

54. Slide 54: Site Overview

    54 SITE OVERVIEW For personal use only 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

55. Slide 55: FY18 Performance, FY19 Guidance

    FY18 PERFORMANCE FY19 GUIDANCE For personal use only 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 c

56. Slide 56: Opportunity Below 1200RL

    OPPORTUNITY BELOW 1200RL For personal use only 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 fr

57. Slide 57: Question and Answer Session

    For personal use only QUESTION AND ANSWER SESSION

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