Slide 1: 2020 Half-Year Financial Results
For personal use only 2020 HALF-YEAR FINANCIAL RESULTS 12 FEBRUARY 2020 JAKE KLEIN – EXECUTIVE CHAIRMAN LAWRIE CONWAY – FINANCE DIRECTOR AND CFO
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: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY A portfolio of 6 to 8 assets generating superior returns with For personal use only an average mine life of at least 10 years Build a reputation for sustainability, reliability and transparency Embed financial discipline across the business An active pipeline of quality
Slide 4: Highlights
HIGHLIGHTS For personal use only Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets ▪ Record profit ▪ Future cornerstone asset ▪ 1.1 million ounces added ▪ Record cash flow ▪ Turna
Slide 5: 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 6: Sustainability
SUSTAINABILITY For personal use only ◼ Improvement in safety performance ◼ TRIF reduced to 8.4 from recent peak of 9.3 ◼ Inclusion in Dow Jones Sustainability Index Australia ◼ One of only two ASX listed gold miners ◼ Bushfires and drought assistance ◼ Donation of A$3M and ongoing support from Evolu
Slide 7: Cowal Water Security
COWAL WATER SECURITY For personal use only Executing a water security plan to mitigate drought risk with the objective of long-term self sufficiency ◼ Second pipeline installed across Lake Cowal ◼ Expected to increase pumping capacity by 30% ◼ Three additional bores in Eastern Saline Bore Field 55mm
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS For personal use only Record underlying net Record Earnings profit after tax EBITDA per share 62% to A$149.1M 23% to A$441.2M 61% to 8.7cps Mine operating Net mine Record Group cash flow cash flow cash flow 32% to A$511.8M 48% to A$351.8M 119% to A$242.4M Do
Slide 9: Underlying Net Profit
UNDERLYING NET PROFIT For personal use only ◼ Record underlying profit up 62% to A$149.1M Profit ◼ Revenue up 19% and royalties up 17% due to higher metal prices offset by slightly lower metal sold ◼ Operating costs increase was in line with expectation at ~3% ◼ Inventory movements were due to plann
Slide 10: Mine Operating Costs – Key Drivers
MINE OPERATING COSTS – KEY DRIVERS For personal use only ◼ Operating costs being well controlled with heavy focus on top 7 cost categories ◼ Labour cost and royalties account for net change in operating costs ◼ Employee labour rates moved within the 3½% - 4½% guided range ◼ Other cost changes minima
Slide 11: High EBITDA Margins
HIGH EBITDA MARGINS For personal use only Group EBITDA Margin (%) ◼ High margin at long life assets of Cowal (59%) and Ernest Henry (69%) FY20 H1 ◼ Continued improvement at Mungari and Cracow 49% FY19 48% ◼ Margin at Mt Carlton and Mt Rawdon expected to improve in second half (1) FY18 53% ◼ Group ma
Slide 12: Group Cash Flow
FY20 H1 Mine Cash Flow (A$M) GROUP CASH FLOW 300 512 600 250 500 210 200 400 For personal use only ◼ High margin net group cash flow of A$242M 150 135 300 100 200 ◼ 27% of revenue 49 46 352 142 129 43 50 28 100 ◼ A$640 per ounce 41 18 30 - -7 0 Cowal Ernest Henry Mt Carlton Mungari Mt Rawdon Cracow
Slide 13: Dividends
DIVIDENDS 16% Dividends (% of Revenue vs cents per share declared) 14 13% 14% 12 For personal use only 12% 11% 10 ◼ Interim dividend doubled 10% 8% 8 8% ◼ Fully franked at 7 cents 6% 4 6 6 6% ◼ Equal to 13% of revenue 4% 3% 3% 4 3 7 2% 2% 2 ◼ Strong yield at 3.6%(1)(2) 2% 2 3.5 3.5 1 1 2 1 1 1 1 0%
Slide 14: Red Lake Acquisition
RED LAKE ACQUISITION CANADA For personal use only ▪ Evolution implementing plans to transform Red Lake into a cornerstone asset with annual production in excess of 200koz at an AISC below US$1,000 per ounce ▪ High grade, long life, underground gold mine in Canada’s most prolific gold district ▪ Unde
Slide 15: Red Lake Update
RED LAKE UPDATE For personal use only Mining ▪ Mine plan will focus on mining higher productivity zones ▪ Increase development to 1,000m per month to return to historic ore production rates ▪ Commenced at start of February ▪ Decommission excess fixed assets and mobile equipment Processing ▪ Improve
Slide 16: Red Lake Planned Drilling
RED LAKE PLANNED DRILLING For personal use only Cochenour Shaft Reid Shaft #3 Shaft Surface UPPER RED CAMPBELL LAKE -1000mbs High Speed Tram (HST) ▪ Drilling commenced with 5 rigs focused -2000mbs on Cochenour and Red Lake ▪ Ramping up to 6 – 8 rigs by April 2020 ▪ Initially targeting near mine reso
Slide 17: Annual MROR Highlights
ANNUAL MROR HIGHLIGHTS For personal use only Cowal Mineral Resource of 8.6Moz Cowal GRE46 Dalwhinnie underground ◼ GRE46 Dalwhinnie underground resource Mineral Resource increased 77% to 2.5Moz increased 77% from 1.4Moz to 2.5Moz Cowal Ore Reserve of 3.6Moz ◼ Maiden underground reserve to be declare
Slide 18: Ernest Henry Mine Life Extensions
ERNEST HENRY MINE LIFE EXTENSIONS For personal use only Mineral Resources of 1.3Moz gold and 356t copper Ore Reserves of 0.7Moz gold and 150kt copper ◼ Early addition of three new sub-levels to reserves ◼ 18,000m drill program planned for 2020 calendar year targets extensions to resources and reserv
Slide 19: Summary
SUMMARY For personal use only Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets 19
Slide 20: Appendix
For personal use only Evolution MIINTINE
Slide 21: Evolution 2019 Gold Mineral Resources
EVOLUTION 2019 GOLD MINERAL RESOURCES For personal use only Gold Measured Indicated Inferred Total Resource Dec 18 Gold Gold Gold Gold Gold Gold Gold Gold Resource Tonnes Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Metal Gold Metal (Mt) (Mt) (Mt) (Mt) (koz
Slide 22: Evolution 2019 Gold Ore Reserves
EVOLUTION 2019 GOLD ORE RESERVES For personal use only Gold Proved Probable Total Reserve Dec 18 Cut- Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal CP3 Reserves Gold Project Type Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Metal (koz) Cowal Open pi
Slide 23: Evolution 2019 Copper Reserves & Resources
EVOLUTION 2019 COPPER RESERVES & RESOURCES Group Copper Mineral Resource Statement For personal use only Copper Measured Indicated Inferred Total Resource Dec 18 Copper Copper Copper Copper Copper Copper Copper Copper Resources Cut- Tonnes Tonnes Tonnes Tonnes CP3 Project Type Grade Metal Grade Meta