Slide 1: Denver Gold Forum Presentation
ABN 74 084 669 036 Sydney Office P +61 2 9696 2900 For personal use only F +61 2 9696 2901 Level 24 ASX Announcement 175 Liverpool Street Sydney NSW 2022 www.evolutionmining.com.au 21 SEPTEMBER 2020 DENVER GOLD FORUM PRESENTATION Evolution Mining Limited (ASX: EVN) advises that Jake Klein, Executive
Slide 2: Denver Gold Forum – September 2020
For personal use only DENVER GOLD FORUM 20 – 23 SEPTEMBER 2020
Slide 3: 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 4: Evolution Snapshot
EVOLUTION SNAPSHOT Production outlook (koz) For personal use only ASX CODE EVN 850 MARKET CAPITALISATION (1) US$7.3B / A$10.1B 770 730 AVERAGE DAILY TURNOVER(2) US$51M / A$70M 790 670 700 NET DEBT(3) US$142M / A$196M Payout of 50% of FY21 FY22 FY23 DIVIDEND POLICY free cash flow MINERAL RESOURCES(4)
Slide 5: Sustainably Creating Value
SUSTAINABLY CREATING VALUE ▪ 40% more Safety Interactions For personal use only ▪ 18% improvement in TRIF (FY20) ▪ 6,800+ voluntary health sessions ▪ COVID-19 proactive management Economic ▪74% local workforce Healthier ▪ A$1.8B economic contribution1 Contribution and Safer ▪ A$1.2B supplier contrib
Slide 6: Marching Towards the Debt Precipice
MARCHING TOWARDS THE DEBT PRECIPICE For personal use only US National Debt Gold price US$2,070/oz US$26.7T US$0.4T US$35/oz 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Sources: worldometers; usdebtclock.org 5 5
Slide 7: Rising Political Risk
RISING POLITICAL RISK For personal use only Gold mining policy chaos in Philippines 6
Slide 8: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY A portfolio of 6 to 8 assets generating superior returns with For personal use only an average mine life of at least 10 years Embed financial discipline across the business An active pipeline of quality exploration and development projects Open to all quality gold, silv
Slide 9: Quality Drives Value
Gold Equivalent Ore Reserves per share QUALITY DRIVES VALUE (ounces per 1,000 shares) For personal use only 5.5 ▪ Increasing reserves and resources per share 3.1 4.0 4.6 4.6 4.8 without diluting quality ▪ Higher gold price delivering higher cash margins Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 + Co
Slide 10: Portfolio Improvements Creating Value
PORTFOLIO IMPROVEMENTS CREATING VALUE FY20 For personal use only FY19 FY18 FY17 FY16 Red Lake FY15 Edna acquisition Cracow Mungari Ernest May divested acquisition Henry divested Acquisition of economic interest Cowal Pajingo acquisition divested Mungari acquisition Evolution Mining share price chart
Slide 11: FY20 Free Cash Flow
FY20 Free Cash Flow CASH FLOW 800 700 726 693 (A$/oz produced) 600 551 For personal use only 500 467 460 Group is sustaining high cash generation 439 400 ◼ Record FY20 group cash flow of A$542M 300 217 ◼ Peer leading cash flow per ounce produced 200 164 100 ◼ Group cash flow at A$726/oz - Evolution
Slide 12: Capital Management
Dividends CAPITAL MANAGEMENT 0.16 0.14 (% of Revenue vs cents per share declared) 14% 20 18 16 0.12 11% For personal use only Balance Sheet Supports Strategy 14 0.1 8% 12 ◼ Balance Sheet in excellent shape 9 0.08 10 6% ◼ Disciplined capital management to support strategy 0.06 8 6 6 ◼ Strong banking
Slide 13: Cowal
COWAL Mineral Resources: 264.6Mt at 1.06g/t Au for 9.0Moz1 For personal use only Ore Reserves: 142.2Mt at 0.97g/t Au for 4.4Moz1 Total tenement package: 1,583km2 Cowal Ore Reserves (koz) 4,437 3,881 3,633 3,201 3,047 2,847 1,555 Evolution ownership since 2015 Ore Reserves 1.6Moz 4.4Moz Jun 2015 Dec
Slide 14: Pathway to Sustainable Production of 350kozpa
PATHWAY TO SUSTAINABLE PRODUCTION OF 350KOZPA For personal use only Local workforce upskilling Low-risk mining Accommodation Accommodation method Low-risk mining village village Minor plant upgrades method Non-processing Technology In principle support Technology e infrastructure Non-processing enab
Slide 15: Red Lake 11Moz Mineral Resource
RED LAKE 11MOZ MINERAL RESOURCE For personal use only Initial Red Lake JORC 2012 Mineral Resource estimate of 48.1Mt grading 7.1g/t for 11.0Moz Restoring Red Lake to a premier Canadian gold mine producing 300 – 500kozpa 14
Slide 16: Red Lake Transformation
RED LAKE TRANSFORMATION For personal use only Workforce Major shut of Rationalising Initiative Hoist automation restructure Campbell Mill Infrastructure Completed June Timing June 2020 quarter March 2021 quarter Ongoing 2020 quarter A$2M per annum Decommissioning two shafts Major investment to A$16M
Slide 17: Critical Path to Red Lake Stage Transformation
CRITICAL PATH TO RED LAKE STAGE 1 TRANSFORMATION For personal use only Updated Ore Reserve Larger capacity mining fleet Haulage STAGE 2 optimisation WHAT STAGE 1 LONG TERM SUCCESS LOOKS LIKE PRODUCTION SIMPLIFY INCREASE MINING STAGE 1 ✓ Fill Campbell mill ASPIRATION OF CURRENT OPERATION DEVELOPMENT
Slide 18: Ernest Henry
ERNEST HENRY For personal use only ◼ Consistent operational performance ◼ Annual gold production of 85 – 90koz ◼ Attractive copper exposure of ~20kt p.a. ◼ Excellent margin and returns ◼ Free cash flow of A$779 million ◼ Repaid 87% of invested capital ◼ Average annual return of 24% ◼ Three levels of
Slide 19: Mungari
MUNGARI For personal use only Mineral Resources: 50.92Mt at 1.47g/t Au for 2,409koz1 Ore Reserves: 11.63Mt at 1.52g/t Au for 568koz1 ◼ 756km2 footprint in a world-class gold district ◼ Operational turnaround achieved ◼ Mill throughput increased to 2.0Mtpa ◼ Voluntary employee turnover reduced from 2
Slide 20: Quality drives value
For personal use only Quality drives value
Slide 21: Appendix
For personal use only APPENDIX 20
Slide 22: Sustainability Principles
SUSTAINABILITY PRINCIPLES The objective of our sustainability efforts is to deliver long-term stakeholder value through For personal use only safe, low-cost gold production in an environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contribute positively to
Slide 23: Evolution Gold Mineral Resources Dec 2019 Updated
EVOLUTION GOLD MINERAL RESOURCES DEC 2019 UPDATED ( W I T H 3 1 D E C E M B E R 2 0 1 9 R E D L AK E AN D 3 0 AP R I L 2 0 2 0 C O WAL M I N E R AL R E S O U R C E S ) For personal use only Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Competent Tonnes Tonnes Ton
Slide 24: Evolution Gold Ore Reserves Dec 2019 Updated
EVOLUTION GOLD ORE RESERVES DEC 2019 UPDATED (WITH 30 APRIL 2020 COWAL ORE RESERVES AND EXCLUDING RED LAKE ORE RESERVES) For personal use only Gold Proved Probable Total Reserve Gold Gold Gold Competent Tonnes Gold Tonnes Gold Grade Tonnes Gold Person Project Type Cut-Off Metal Metal Metal (Mt) Grad
Slide 25: Evolution Copper MROR Dec 2019 Updated
EVOLUTION COPPER MROR DEC 2019 UPDATED Group Copper Mineral Resource Statement For personal use only Copper Measured Indicated Inferred Total Resource Copper Copper Copper Copper Competent Tonnes Copper Tonnes Copper Tonnes Copper Tonnes Copper Person Project Type Cut-Off Metal Metal Metal Metal (Mt
Slide 26: Financial Highlights
Financials Units FY20 FY19 Change FINANCIAL For personal use only HIGHLIGHTS Statutory Profit after tax A$M 301.6 218.2 38% Underlying Profit after tax A$M 405.4 218.2 86% EBITDA A$M 1,029.4 730.3 41% Operating Mine Cash Flow A$M 1,121.4 771.5 45% Net Mine Cash Flow A$M 736.0 497.8 48% Group Cash Fl
Slide 27: FY21 Guidance: Production, Costs & Capital
FY21 GUIDANCE: PRODUCTION, COSTS & CAPITAL For personal use only All-in Sustaining Sustaining Gold Production Major Capital FY21 Guidance Cost Capital (oz) (A$/oz) (A$M) (A$M) Cowal 205,000 – 230,000 990 – 1,040 12.5 –17.5 170.0 – 180.0 Red Lake 125,000 – 135,000 2,050 – 2,100 55.0 – 60.0 30.0 – 40.
Slide 28: Production Target & Forecast Financials
PRODUCTION TARGET & FORECAST FINANCIALS For personal use only Cautionary statement concerning the proportion of Exploration Targets1 Of Evolution’s Production Outlook, 1.8% is comprised of Exploration Targets. The potential quantity and grade of this exploration target is conceptual in nature and th
Slide 29: Production and Cost Outlook
PRODUCTION AND COST OUTLOOK For personal use only ◼ Production planned to increase to >800koz over the next 3 years Production (koz) ◼ FY21 lower as Cowal processes stockpiles and Red Lake 850 invests in mine development to access to higher volumes of ore 770 ◼ Cowal underground to provide substanti
Slide 30: Capital Outlook
CAPITAL OUTLOOK Sustaining Capital (A$M) 138 135 For personal use only 125 ◼ No material increases in sustaining capital investment expected ◼ Higher sustaining capital in FY21 is investment in Red Lake transformation (A$55 – 60M) ◼ Main investment areas are equipment replacement; tailings 113 110 9
Slide 31: Cost Drivers and Sensitivities
COST DRIVERS AND SENSITIVITIES For personal use only ◼ Top six expense groups account for ~85% of total costs FY21 Key Cost Drivers (%) ◼ Labour is largest expense at 53% Grinding Media/ Other Explosives Diesel 8% ◼ No material increases expected in next few years 4% 4% ◼ Preference is to reward via
Slide 32: For personal use only
For personal use only Evolution MIINTINE