Slide 1: Denver Gold Forum
For personal use only Denver Gold Forum September 2017 Lawrie Conway – Finance Director and CFO
Slide 2: Forward looking statement
For personal use only 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”, “expe
Slide 3: Overview
Overview ASX code EVN For personal use only Shares outstanding 1,693M Market capitalisation(1) A$4,060M / US$3,170M Average daily share turnover(2) A$25M / US$20M Net debt(3) A$399M / US$311M Forward sales(3) 458,495oz at A$1,645/oz Dividend policy Payout of 50% of after tax earnings Major sharehold
Slide 4: Diversified mid-tier gold miner
Diversified mid-tier gold miner 1▪ Cowal (100%) For personal use only ▪ ▪ Gold Reserves 2016 (Moz)(1) Gold Resources 2016 (Moz)(1) 3.20 5.04 5▪ Cracow (100%) ▪ Reserve Grade 2016 (Au g/t) 0.85 ▪ Gold Reserves 2016 (Moz)(1) 0.19 ▪ FY17A Au Production (koz) 263 ▪ Gold Resources 2016 (Moz)(1) 0.52 ▪ FY
Slide 5: Upgrading the quality of our asset portfolio
Upgrading the quality of our asset portfolio For personal use only $2,250 Bubble size represents FY17 production Ernest $2,000 Henry (Gold price of A$1,650/oz less FY17 AISC)(1) Current indicative AISC margin (A$/oz) $1,750 $1,500 Group Reserve life ~9 years $1,250 Mt $1,000 Carlton Mt Cowal $750 Ra
Slide 6: High EBITDA margins
High EBITDA margins Longest life assets generating highest margins For personal use only Group EBITDA Margin Benefits of diverse portfolio – no dependence on any single asset 49% Site EBITDA Margin 46% FY16 40% 64% 59% 59% 61% FY17(1) 33% 58% 55% 48% 49% 47% 49% 39% 18% 11% Cowal Ernest Henry Mt
Slide 7: Strong balance sheet
Strong balance sheet Significant improvement in liquidity Debt Repayments and Commitments (A$M) For personal use only Cash and undrawn debt of A$337.4M Repayment of A$325.0M of debt during FY17 322 325 Syndicated debt at 30 June 2017 of A$435.0M 155 Term Facility B: A$40.0M 120 80 50 30
Slide 8: Cowal
Cowal For personal use only July Evolution June 2015 Delivery 2017 MINING MINING PERMIT TO 2024 + 8 years PERMIT TO 2032 2014 2016 1.56Moz1 RESERVES + 2.28Moz2 RESERVES 3.20Moz3 2014 MINERAL RESOURCES 3.43Moz 1 + 2.24Moz2 2016 MINERAL RESOURCES 5.04Moz3 July 2015 – June 2017 GOLD PRODUCTION 501koz A
Slide 9: Additional opportunities at Cowal
Additional opportunities at Cowal Assessing further asset enhancement For personal use only opportunities including: E46 Continued drilling to convert significant mineral endowment E46 East outside of existing reserves E46, E41, Galway and Regal Co-treatment of high-grade oxide E42 stockpile
Slide 10: Ernest Henry
Ernest Henry Ernest Henry ore body looking west Large scale, long life, copper-gold asset operated by For personal use only Glencore Approximately A$600 million recently invested by Glencore in expanding the underground mine to 6.4Mtpa Evolution’s economic interest acquired 1 November 2016: 12
Slide 11: Mt Carlton
Mt Carlton For personal use only March Evolution June 2010 Delivery 2017 FEASIBILITY STUDY OFFTAKE PARTY SECURED ONE OF THE HIGHEST GRADE DELCARED PROJECT OPEN PIT GOLD MINES IN THE UNECONOMIC DEVELOPED BY EVOLUTION AND WORLD COMMISSIONED IN 2013 LIFE OF MINE - 2025 ENTERPRISE VALUE A$51M INITIAL CA
Slide 12: Mungari
Mungari Strategic footprint in world-class Kalgoorlie region For personal use only August 2015: acquired Frog’s Leg, White Foil and brand new 1.7Mpta processing plant January 2016: acquired Phoenix Gold tenements Total tenement package now ~950km2 with very little focus on exploration by pre
Slide 13: Mungari opportunities at depth
Mungari opportunities at depth For personal use only All drilling All drilling All drilling >100m >200m depth depth •Bullant •Mt Pleasant •Bullant •Mt Pleasant •Bullant •Mt Pleasant Zuleika Shear Zone Zuleika Shear Zone Zuleika Shear Zone Kundana Kundana Kundana •Frog’s Leg •Frog’s Leg •Frog’s Leg •
Slide 14: FY18 updated guidance
FY18 updated guidance All-in sustaining All-in sustaining For personal use only Gold production C1 cash costs1 C1 cash costs1,2 FY18 Guidance cost1 cost1,2 (oz) (A$/oz) (A$/oz) (US$/oz) (US$/oz) Cowal 235,000 - 245,000 660 – 720 950 – 1,000 510 – 560 740 – 780 Mungari 120,000 - 130,000 860 – 910 990
Slide 15: Focusing on what matters
Focusing on what matters For personal use only Increasing reserves per share Extending reserve life Reducing All-in sustaining costs Increasing free cash flow per ounce Consistent returns via clear dividend policy A business that prospers through the cycle 15
Slide 16: ASX code: EVN
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 17: FY18 guidance – capital, discovery, D&A
FY18 guidance – capital, discovery, D&A Sustaining Resource Depreciation & Fair Value For personal use only Major Capital Discovery FY18 Capital Definition1 Amortisation2 Unwind Guidance (A$M) (A$M) (A$M) (A$M) (A$/oz) (A$M) Cowal 52.5 – 57.5 85 – 100 2.0 – 3.5 2.5 – 4.5 370 – 410 15 – 20 Mungari 10
Slide 18: Evolution Gold Ore Reserves
Evolution Gold Ore Reserves Gold Proved Probable Total Reserve Competent For personal use only Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person Project Type Cut-Off Tonnes (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Cowal1 Open pit 0.4 43.7 0.71 994 73.02
Slide 19: Evolution Gold Mineral Resources
Evolution Gold Mineral Resources Gold Measured Indicated Inferred Total Resource For personal use only Gold Gold Gold Gold Gold Gold Gold Gold Competent Tonnes Tonnes Tonnes Tonnes Project Type Cut-off Grade Metal Grade Metal Grade Metal Grade Metal Person (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz)
Slide 20: Evolution Copper Reserves and Resources
Evolution Copper Reserves and Resources Group Copper Ore Reserves Statement For personal use only Copper Proved Probable Total Reserve Competent Copper Copper Copper Grade Copper Copper Copper Person Project Type Cut-Off Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Grade (%) Metal (kt) (%) Metal (kt) Grade (
Slide 21: Cowal Ore Reserve growth
Cowal Ore Reserve growth Cowal Ore Reserve Changes For personal use only December 2014 to December 2016 4,000 3,500 87 29 326 494 Reserve ounces (koz) 3,000 309 69 900 2,500 231 2,000 471 1,500 3,200 2,848 1,000 1,555 500 0 2014 Reserve Stockpiles Stage G Stage H Depletion December Additions Model C
Slide 22: FY17 financial highlights
FY17 financial highlights For personal use only Units FY17 FY16 Change Statutory Profit after tax A$M 217.6 (24.3) - 1 Underlying Profit after tax A$M 206.6 134.5 54% EBITDA A$M 713.9 607.6 17% Operating Cash flow A$M 706.5 628.4 12% Group Cash flow A$M 382.0 365.0 5% EBITDA Margin2 % 49% 46% 7% AIC
Slide 23: Operational performance and asset quality
Operational performance and asset quality Group gold production (koz) Record production up 5% in FY17 For personal use only Consistent year on year delivery to guidance Active portfolio management to improve quality 803 844 FY13: Development of low cost Mt Carlton operation 393 427 438 FY1
Slide 24: Mt Rawdon
Mt Rawdon For personal use only Nov Evolution June 2011 Performance 2017 SCHEDULED COMPLETION 2022 + 4 years SCHEDULED COMPLETION 2026 2011 RESERVES 0.9Moz Replacing depletion 2016 RESERVES 0.9Moz LOAD & HAUL Contract Cost benefits and improved LOAD & HAUL Owner operator efficiency Resource drilling
Slide 25: Cracow
Cracow For personal use only Nov Evolution June 2011 Performance 2017 LIFE OF MINE 2014 + 6 years LIFE OF MINE 2020+ 2011 RESERVES 0.2Moz Replacing depletion 2016 RESERVES 0.2Moz MINING Contract Cost benefits and MINING Owner operator productivity improvements Resource drilling over 20 years 802km I
Slide 26: Portfolio management impact on AISC
Portfolio management impact on AISC Acquisition of Mungari economic For personal use only interest in acquisition with La Mancha Ernest (AISC ↓A$30/oz) Henry (AISC ↓A$100/oz) Cowal acquisition Mt Carlton FY10 FY18 (AISC ↓A$100/oz) first concentrate produced FY10 FY17 March 2013 FY10 FY16 Evolution (