Slide 1: Acquisition of Northparkes Investor Presentation
ACQUISITION OF NORTHPARKES Investor Presentation 05 December 2023 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Important Notices (1/3)
IMPORTANT NOTICES (1/3) The following disclaimer applies to this investor presentation and you are advised to read this carefully before reading or making any other use of this presentation or any information contained in this presentation. This presentation has been approved by the Board of Directo
Slide 3: Important Notices (2/3)
IMPORTANT NOTICES (2/3) Not financial product advice This presentation is not a financial product or investment advice, a recommendation to acquire New Shares or accounting, legal or tax advice and does not and will not form any part of any contract for the acquisition of New Shares. It has been pre
Slide 4: Important Notices (3/3)
IMPORTANT NOTICES (3/3) Underwriter The underwriter (“Underwriter”) has acted as lead manager and underwriter to the Placement. The SPP is not underwritten. Neither the underwriter nor its Extended Parties (defined below) have authorised, permitted or caused the issue, lodgement, submission, dispatc
Slide 5: Table of Contents
TABLE OF CONTENTS 1 Northparkes opportunity 2 Transaction summary 3 Northparkes overview and highlights 4 Transaction funding 5 Appendices 5
Slide 6: Northparkes Opportunity
01 NORTHPARKES OPPORTUNITY 6
Slide 7: Acquisition of Northparkes (80%)
ACQUISITION OF NORTHPARKES (80%) Established, long-life copper-gold asset with significant upside potential Australia Queensland N On strategy Creating a portfolio of long-life gold & copper assets New South Wales Immediate cash generating asset NSW Strong YTD1 CY2023 cash flows Northparkes Well-est
Slide 8: Acquisition Aligns with Strategy
ACQUISITION ALIGNS WITH STRATEGY Delivering long-term stakeholder value with a business that prospers through the cycle Clear and consistent strategy Transaction fit Create sustainable value for stakeholders Proven strong social licence and in an environmentally and socially ✓ community support resp
Slide 9: In Our Sweet Spot
IN OUR SWEET SPOT Canada Red Lake Compelling opportunity – vendor ✓ redeploying capital in other geographies Australia Supportive, high-quality partners in ✓ Sumitomo Group and Triple Flag Ernest Henry Mt Rawdon Long mine life ~30 years with ✓ geological upside in our backyard Mungari Northparkes Co
Slide 10: Transaction Summary
1 02. TRANSACTION SUMMARY Evolution
Slide 11: Transaction Summary
TRANSACTION SUMMARY ▪ Evolution Mining (“Evolution” or the “Company”) has entered into a binding agreement to acquire an 80% interest in the Northparkes Copper-Gold Mine (“Northparkes” or “Northparkes JV”) from CMOC Group Limited (“CMOC”) (the “Transaction”), for total cash consideration of up to US
Slide 12: Transaction Summary Cont
TRANSACTION SUMMARY CONT ▪ The upfront cash consideration is to be funded via a combination of a new A$200m Term Debt Facility and a fully underwritten 11 A$525m institutional placement (“Placement”) Transaction funding ▪ In addition to the Placement, Evolution announces a non-underwritten share pur
Slide 13: Northparkes Acquisition Snapshot
NORTHPARKES ACQUISITION SNAPSHOT Immediate cash Attractive Ore Reserve Consistent with flow supports exposure to growth upside our long-asset life deleveraging copper strategy ~A$120m FY24E 25kt of Cu 5x ~30 year cash flow YTD CY231 to Evolution2 The current ratio of Mineral mine life Resource to Or
Slide 14: FY24E Evolution Post-Acquisition
FY24E EVOLUTION POST-ACQUISITION 1 FY24E Evolution Gold (oz) Copper (t) AISC (A$/oz) Sustaining Capital Major Project Capital Major Mine Guidance (see slide 31) (+/-5%) (+/-5%) (+/-5%) (A$m) (A$m) Development (A$m) Group 789,000 62,500 1,340 200 – 245 335 – 365 135 – 155 Northparkes2 19,000 12,500 1
Slide 15: Structure and Stream Overview
STRUCTURE AND STREAM OVERVIEW Triple Flag Stream Structure Sumitomo Group ▪ CMOC entered into a Stream agreement in 2020 with Triple Flag ▪ Triple Flag to make ongoing payments equal to 10% of spot metal price Sumitomo Sumitomo Metal Mining Corporation Key terms delivered 13.3% 6.7% ▪ Evolution will
Slide 16: Northparkes Overview and Highlights
03 NORTHPARKES OVERVIEW AND HIGHLIGHTS 16
Slide 17: Overview of Northparkes
OVERVIEW OF NORTHPARKES Asset overview1 Northparkes site layout Commodities ▪ Copper, Gold, Silver Evolution ownership ▪ 80% Mine Life ▪ ~30 years Operator ▪ Evolution Location ▪ New South Wales, Australia Tailing storage Mine type & mining method ▪ Block caving + Sub-level caving + Open pit ▪ Permi
Slide 18: Northparkes Highlights
NORTHPARKES HIGHLIGHTS Multiple large-scale porphyry copper and gold deposits 1 Suitable for bulk cave mining operation in an area well known to Evolution Significant Mineral Resource base 2 Potential to increase mine life through conversion to Ore Reserves Cash flow generation mode after significan
Slide 19: Northparkes Highlights (1/3)
NORTHPARKES HIGHLIGHTS (1/3) Positioned in a well-endowed mining region in NSW Experienced in the mining region Potential for further discoveries ▪ Positioned in one of Australia’s most Regional geology Mining lease Mining areas prospective Gold / Copper belts (Lachlan Fold Belt) ▪ Concentrated mini
Slide 20: Northparkes Highlights (2/3)
NORTHPARKES HIGHLIGHTS (2/3) A long-life asset with a low capital intensity option for growth A world-class multi-decade asset Development optionality for growth Options are preserved for ▪ Mine-life ~30 years. Majority of current production future extension of E22 sourced from E26 block cave – capi
Slide 21: Northparkes Highlights (3/3)
NORTHPARKES HIGHLIGHTS (3/3) Significant Mineral Resource base with potential to grow Ore Reserves Significant Mineral Resource conversion opportunity We are growing our future with strategic investments Northparkes2 ▪ Potential for expansion and life extension opportunities is supported by a large
Slide 22: Transaction Funding
TRANSACTION FUNDING Evolution 22
Slide 23: Transaction Funding Overview
TRANSACTION FUNDING OVERVIEW Transaction funding1 comprised of A$525m placement and A$200m new debt Funding mix reflects Evolution’s commitment to balance sheet management Dividend policy unchanged No corporate debt repayment until Q3 FY25 1. In conjunction with the placement, Evolution is undertaki
Slide 24: Debt Overview
DEBT OVERVIEW Acquisition supported by a new A$200m debt facility Debt overview Debt maturity profile (A$m) ▪ Long term debt maturity aligned with mine life Long-term debt 74% of total (6-12 year tenor) − Average debt tenor of 6.8 years with 74% long-term debt 477 ▪ Pro forma gearing of 34% (pre SPP
Slide 25: Equity Raising Details
EQUITY RAISING DETAILS Equity raising comprising A$525m placement and SPP ▪ Fully underwritten A$525m institutional placement to eligible investors under Evolution’s ASX Listing Rule 7.1 Offer size and capacity (“Placement”) structure ▪ Approximately 138.2 million new fully paid ordinary shares (“Ne
Slide 26: Use of Funds and Capital Structure
USE OF FUNDS AND CAPITAL STRUCTURE Sources and uses of funds Evolution’s pro-forma capital structure2 Sources A$m Evolution Transaction Evolution Key metrics Units Standalone funding Pro-forma7 Placement 525 Share price A$/sh 4.14 3.80 4.12 New debt facility 200 (x) Shares outstanding m 1,840 138 1,
Slide 27: Equity Raising Timetable
EQUITY RAISING TIMETABLE Event Date1 Placement Trading halt and launch of Placement 5 December 2023 Trading halt lifted and announcement of completion of Placement 6 December 2023 Settlement of Placement Shares 8 December 2023 Allotment of Placement Shares 11 December 2023 Share Purchase Plan Record
Slide 28: Outstanding Quality Portfolio
OUTSTANDING QUALITY PORTFOLIO Red Lake (2038)1 Mt Rawdon ▪ Targeting consistent production of Ernest Henry (2040)1 ~200koz pa ▪ Stable cash generation ▪ Innovative option on transition to ▪ Copper and gold exposure renewable energy source ▪ LOM supported by current following resource depletion in fe
Slide 29: Questions
QUESTIONS Evolution _— — rr ae
Slide 30: Appendices
05 APPENDICES 30
Slide 31: Appendix: Supporting Materials
APPENDIX: SUPPORTING MATERIALS 31
Slide 32: FY24E Guidance
FY24E GUIDANCE 1 Major Mine Gold (oz) Copper (t) AISC (A$/oz)5 Sustaining Major Project FY24 Guidance Development (+/-5%) (+/-5%) (+/-5%) Capital (A$m) Capital (A$m) (A$m) Group 789,000 62,500 1,340 200 – 245 335 – 365 135 – 155 Northparkes2,3,4 19,000 12,500 150 10 – 15 10 – 15 10 – 15 (6 months to
Slide 33: Northparkes Timeline
NORTHPARKES TIMELINE Northparkes has a long history of delivering on growth and expansion Discovery Growth Expansion 1976 1993-94 2012 Discovered E22 by Peko-Wallsend (roadside First mining operation (UG block cave mining at Milling capacity expanded to 6.4Mtpa traverse) E26 and open-cut mining at E
Slide 34: Mining Overview
MINING OVERVIEW Underground operations Equipment and site overview ▪ E48 first lift (E48L1) − Commissioning completed in mid-2011 (block caving method) − 100% automated mining achieved in October 2015 − E48 scheduled to be completed within EVN’s FY24 − E48 second lift (E48L2) is part of the LOM plan
Slide 35: Processing Overview
PROCESSING OVERVIEW Processing overview Processing plant ▪ General ~$200m − Plant includes surface crusher, stockpiles, grinding mills, froth flotation new surface area and storage secondary − Traditional sulphide flotation process is used to recover copper and precious metals into copper concentrat
Slide 36: Water and Supporting Infrastructure
WATER AND SUPPORTING INFRASTRUCTURE Abundant water supply and contracted power Power infrastructure and water supply ▪ Water supply − Water sourced from onsite and offsite locations including imported water from various licenses − 11 water licenses from Forbes − 6.5GL annual water consumption in 202
Slide 37: People and Community
PEOPLE AND COMMUNITY Northparkes people and community Northparkes’ community initiatives ▪ Residential mine site − Steady state workforce of 330 − ~98% of workforce residing in the local government areas of Parkes and Forbes with very low staff turnover ▪ Personnel and safety − Turnover of 17% on a
Slide 38: Abbreviations
ABBREVIATIONS Abbreviation Definition A$m Australian dollars in millions Ag Silver AISC All-in Sustaining Cost Au Gold AuEq Gold equivalent BC Block cave CMOC CMOC Group Limited Cu Copper CuEq Copper equivalent EVN Evolution FY Financial year GL Giga litre kt Thousand tonne LTM Last twelve months Mt
Slide 39: Appendix: Mineral Resource and Ore Reserve
APPENDIX: MINERAL RESOURCE AND ORE RESERVE 39
Slide 40: Group Gold Mineral Resources at December 2022
GROUP GOLD MINERAL RESOURCES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 M I N E R A L R E S O U R C E U P D AT E ) Gold Measured Indicated Inferred Total Resource CP7 Cut-off Tonnes Gold Gold Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal Project Type (
Slide 41: Group Gold Ore Reserves at December 2022
GROUP GOLD ORE RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E U P D AT E ) Gold Proved Probable Total Reserve Cut-off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal CP9 Project Type (g/t Au) (Mt) (g/t) (koz) (M
Slide 42: Group Resources & Reserves at December 2022
GROUP RESOURCES & RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E A N D M I N E R A L R E S O U R C E U P D AT E S ) Group Mineral Resource – contained copper Copper Measured Indicated Inferred Total Resource CP3 Tonnes Copper Copper Tonnes Copper Cop
Slide 43: Northparkes Mineral Resources as at December 2022
NORTHPARKES MINERAL RESOURCES AS AT 31 DECEMBER 2022 Northparkes – Mineral Resource Measured Indicated Inferred Total Resources Total Contained Metal Copper Gold Silver Copper Gold Silver Copper Gold Silver Copper Gold Silver Copper Gold Silver Tonnes Tonnes Tonnes Tonnes Deposit Grade Grade Grade G
Slide 44: Northparkes Ore Reserves as at December 2022
NORTHPARKES ORE RESERVES AS AT 31 DECEMBER 2022 Northparkes – Ore Reserves Proven Probable Total Reserves Contained Metal Recovery CMOC 80% Share Copper Gold Silver Copper Gold Silver Copper Gold Silver Copper Gold Copper Gold Silver Tonnes Tonnes Tonnes Tonnes Copper Gold Silver Deposit Grade Grade
Slide 45: Appendix: Key Risks
APPENDIX: KEY RISKS Evolution 45
Slide 46: Key Risks - General
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - GENERAL There are various risks associated with investing in Evolution, as with any stock market investment. This section sets out: ▪ existing business and operational risks for Evolution - these risks are generally common to gold, sil
Slide 47: Key Risks - General
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - GENERAL Fluctuations in gold, silver and copper prices ▪ Evolution's revenues are exposed to fluctuations in gold, silver and copper prices. Volatility in these prices creates revenue uncertainty and requires careful management of busi
Slide 48: Key Risks - General
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - GENERAL Water sources ▪ The effects of changes in rainfall patterns, water shortages and changing storm patterns and intensities may adversely impact the costs, production levels and financial performance of Evolution’s operations. The
Slide 49: Key Risks - Transaction
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - TRANSACTION Completion ▪ There is no certainty that the Transaction will occur. While there are no conditions precedent to the Share Sale and Purchase Agreement, completion of the Transaction, and the ability of Evolution to achieve it
Slide 50: Key Risks - Transaction
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - TRANSACTION Employees ▪ The day-to-day operation of the Northparkes Mine is to a significant degree dependent upon the efforts of senior leadership personnel. While Evolution has every intention for the existing senior leadership team
Slide 51: Key Risks - Investments
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS - INVESTMENTS Dividends ▪ Any future determination as to the payment of dividends by Evolution will be at the discretion of the Directors and will depend on the financial condition of Evolution, future capital requirements and general bu
Slide 52: Appendix: Underwriting Agreement
APPENDIX: UNDERWRITING AGREEMENT 52
Slide 53: Underwriting Agreement (1/2)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES UNDERWRITING AGREEMENT (1/2) Evolution has entered into an underwriting agreement with the underwriter (the Underwriter) in respect of the Placement dated 5 December 2023 (Underwriting Agreement), pursuant to which the Underwriter has agreed to fu
Slide 54: Underwriting Agreement (2/2)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES UNDERWRITING AGREEMENT (2/2) In addition, the Underwriter may terminate its obligations under the Underwriting Agreement on the occurrence of any of the following events during the same period as above, provided that it has reasonable grounds to b
Slide 55: Appendix: International Offering Restrictions
APPENDIX: INTERNATIONAL OFFERING RESTRICTIONS 55
Slide 56: International Offering Restrictions (1/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFERING RESTRICTIONS (1/3) International Selling Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distrib
Slide 57: International Offering Restrictions (2/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFERING RESTRICTIONS (2/3) Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been au
Slide 58: International Offering Restrictions (3/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFERING RESTRICTIONS (3/3) United Arab Emirates The New Shares have not been, and are not being, publicly offered, sold, promoted or advertised in the United Arab Emirates other than in compliance with the laws of the United Arab Em
Slide 59: Evolution Mining
Evolution MINING