Slide 1: Inspired people creating a premier global gold company
Inspired people creating a premier global gold company 2022 HALF YEAR FINANCIAL RESULTS & MROR Jake Klein – Executive Chairman Lawrie Conway – Finance Director and CFO Glen Masterman – VP Discovery & BD 16 February 2022 1
Slide 2: Forward Looking Statement
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”, “expect”, “intend”, “plan”, “
Slide 3: Highlights
HIGHLIGHTS Growth Additional Ernest PORTFOLIO 14+ Years 1 opportunities in Henry contribution TRANSFORMED Average Mine Life Tier 1 jurisdictions from H2 FY22 Margin STRONG EBITDA Margin expansion with 3c fully 2 FINANCIAL growing copper franked RETURNS 44% dividend exposure CONTINUED Mineral Resourc
Slide 4: Accelerating Sustainability
ACCELERATING SUSTAINABILITY Keeping our people healthy and safe TRIF1 improvement of ~50% at Mungari since June 21 COVID-19 – Increasing impact but being well managed Sustainability performance Climate risk reduction (including water and emissions) to meet “Net Zero future” commitments2
Slide 5: Creating Real Shareholder Value
CREATING REAL SHAREHOLDER VALUE Cowal Mine life at Consistent strategy acquisition 8 Last 6 months have been transformative Mine life now 6.5 19 High-quality operations in Tier 1 jurisdictions Return Years owned Remaining Life 16%* Gold Ore Reserves reported at A$1,450/oz price Red Lake assu
Slide 6: A Transformative 2021
A TRANSFORMATIVE 2021 DELIVERED IN LAST 12 MTHS FUTURE OPPORTUNITIES ONCE DELIVERED Cowal Development of Cowal Cowal underground approval 350koz production underground Stage H stripping completed from FY24 Open pit feasibility studies Red Lake District consolidation with acquisition Mini
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Financials Units H1 FY22 H1 FY21 Change Statutory Profit after tax A$M 90.8 228.7 (60%) Underlying Profit after tax A$M 100.1 234.0 (57%) EBITDA A$M 393.3 514.6 (24%) EBITDA Margin % 44% 52% (15%) Operating Cash flow A$M 396.4 531.2 (25%) Capital Investment A$M 273.1 172.7 (57%)
Slide 8: Statutory Net Profit
STATUTORY NET PROFIT Immediate positive impact from portfolio changes via Kundana acquisition Lower revenue was driven predominantly by lower gold volume at Mt Rawdon and Red Lake Cowal and Mungari open pits transitioning to ore (A$21M) main driver to volume cost change – no cash impact High
Slide 9: Cost Drivers
COST DRIVERS FY22 H1 Key Cost Drivers1 Other 13% No material change in cost drivers Royalties Employee Diesel 3% Labour 4% Labour comprises ~52% of cost base Reagents 32% 5% Top 7 cost types comprise 87% of total costs Power 6% Cost pressures have been building in last ~6 months Maintenance
Slide 10: Strong Operating Cash Margins
STRONG OPERATING CASH MARGINS Sector leading group EBITDA margin despite a drop in this period EBITDA Margin High margin maintained at Ernest Henry (74%) and Cowal (54%) Mungari will benefit from Kundana 56% acquisition going forward 45% Encouraging progress being made early in 73% 74% H2 at
Slide 11: Dividends and Debt
DIVIDENDS AND DEBT Cumulative Dividends (A$M) FY22 Interim Dividend Fully franked 3 cents per share (~A$55M) 943 998 Allows for increased Ernest Henry cash flow in H2 732 459 Balances growth investment & shareholder returns 7 21 43 87 171 298 Payment date: 25 March 2022 FY13 FY14 FY15 FY16
Slide 12: Resources and Reserves Growth
RESOURCES AND RESERVES GROWTH 10,333 See the Appendix for information on Mineral Resources and Ore Reserves 12
Slide 13: Growth Opportunities at Mungari
GROWTH OPPORTUNITIES AT MUNGARI Significant Mineral Resource of almost 5 million ounces and Ore Reserve of 1.2 million ounces District consolidation along the highly prospective Zuleika shear zone Potential for further extensions at Kundana and East Kundana Plant expansion a key enabler to m
Slide 14: Excellent Potential for Further Growth at Ernest Henry
EXCELLENT POTENTIAL FOR FURTHER GROWTH AT ERNEST HENRY Pre-feasibility Study (PFS) on a mine extension underway Glencore concept study cut off at the 875mRL Evolution PFS will consider a larger mine area down to the 775mRL Further growth opportunity with mineralisation intersected 300m verti
Slide 15: Growth Since Inception
GROWTH SINCE INCEPTION Divestments Group Mineral Resources growth of 329% Acquisitions Growth Group Ore Reserves growth of 195% Depletion Re-enforces strategy of identifying and acquiring assets with strong mineral endowment where value Evolution Evolution can be unlocked by the Discovery team Nov
Slide 16: Summary
SUMMARY PORTFOLIO TRANSFORMED STRONG MARGINS AND BALANCE SHEET HIGH-QUALITY RESOURCES & RESERVES STRONG FOCUS ON DELIVERY 16
Slide 17: Appendix
APPENDIX
Slide 18: Sustainability Principles
SUSTAINABILITY PRINCIPLES The objective of our sustainability efforts is to deliver long-term stakeholder value through safe, low-cost gold production in an environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contribute positively to Actively manage clima
Slide 19: FY22 Guidance and Three-Year Outlook
FY22 GUIDANCE AND THREE- YEAR OUTLOOK Evolution Group FY22 FY23 FY24 830 915 725 Gold Production 855 (koz) 670 775 ~60 ~60 Copper 38 Production (kt)1 34 1,195 1,050 955 AISC2 1,135 990 (A$/Gold oz) 895 Sustaining 150 – 175 150 – 190 155 – 195 Capex (A$/M)3 Major Capital 440 – 505 530 – 600 325 – 395
Slide 20: FY22 Guidance: D&A
FY22 GUIDANCE: D&A Depreciation & FY22 Guidance Amortisation A$/oz Cowal 410 – 460 Red Lake 330 – 380 Mungari 420 – 470 Mt Rawdon 700 – 750 Ernest Henry 1,900 – 1,950 Corporate Mt Carlton 993 Group 630 – 680 20
Slide 21: Evolution 2021 Gold Mineral Resources
EVOLUTION 2021 GOLD MINERAL RESOURCES Gold Measured Indicated Inferred Total Resource Dec 20 Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes CP6 Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Metal Gold Metal (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g
Slide 22: Evolution 2021 Gold Ore Reserves
EVOLUTION 2021 GOLD ORE RESERVES Gold Proved Probable Total Reserve Dec 20 Competent Reserves Tonnes Gold Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Gold Metal Person7 Gold Metal Project Type Cut-Off (Mt) Grade (g/t) (koz) (Mt) (g/t) (koz) (Mt) Grade (g/t) (koz) (koz) Cowal1 Open pit 0.45 2
Slide 23: Evolution 2021 Copper Reserves & Resources
EVOLUTION 2021 COPPER RESERVES & RESOURCES Group Copper Mineral Resource Statement Copper Measured Indicated Inferred Total Resource Dec 20 Resources Copper Copper Copper Copper CP1 Tonnes Copper Tonnes Copper Tonnes Copper Tonnes Copper Copper Project Type Cut-Off Metal Metal Metal Metal (Mt) Grade
Slide 24: Evolution Mining
Evolution MINING