Evolution Mining Limited · ASX:EVN
Evolution Mining — Macquarie Australia Conference 2024
30 slides from Evolution Mining's conference presentation, May 9, 2024
Slide 1: Inspired people creating a premier global gold company
Inspired people creating a premier global gold company MACQUARIE AUSTRALIA CONFERENCE Jake Klein – Executive Chair 9 May 2024
Slide 2: Production Target
PRODUCTION TARGET Mungari Production Target and relevant proportions of Mineral Resources and Ore Reserves underpinning the Production Target The Mungari Production Target of 1.9Moz to 2.7Moz between FY24 and FY38 comprises 3% Proved Ore Reserves, 49% Probable Ore Reserves, 19% Indicated Mineral Res
Slide 3: Forward Looking Statement
FORWARD LOOKING STATEMENT These materials prepared by Evolution Mining Limited ('Evolution' 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
Slide 4: Warren Buffett quote on enduring moat
“A truly great business must have an enduring 'moat' that protects excellent returns on invested capital.” – Warren Buffet 44
Slide 5: Evolution Snapshot
EVOLUTION SNAPSHOT MARKET $7.40B CAPITALISATION1 MINERAL RESOURCES2 32.7Moz gold, 4.1Mt copper Red Lake ORE RESERVES2 11.4Moz gold, 1.3Mt copper FY24 GOLD PRODUCTION ~749koz GUIDANCE FY24 AISC GUIDANCE3 ~$1410/oz 22nd consecutive dividend declared - Ernest Henry DIVIDENDS over $1.1 billion in total
Slide 6: Building the Moat
BUILDING THE MOAT Geological upside Motivated seller Change opportunity Synergies “Be fearful when others are greedy, and be greedy when others are fearful.” – Warren Buffet 6 6
Slide 7: Northparkes (80%)
NORTHPARKES (80%) On strategy, quality addition to the portfolio Significant Reserve and Resource Long-life, quality asset Mineral Resource1 Production – FY24E 421Mt @ 25kt Cu, 38koz Au2 NSW 0.55% Cu, ~30 year mine life Ore Reserve 1 0.19g/t Au 75Mt, 0.51% Cu, 0.27g/t Au Bought from CMOC – motivated
Slide 8: Ernest Henry
ERNEST HENRY Significant free cash flow delivery Returned ~$2.0B since acquisition1 ▪ All acquisition and capital costs repaid ▪ Acquired economic interest 2016 ($880M), full ownership in S N 2022 ($1.0B) Significant resource and reserve upgrades2 ▪ Doubled Ore Reserve to 77.4Mt (Jan 2022 to June 20
Slide 9: Cowal
COWAL A world class open pit and underground operation with mine life to 2040 Production outlook favourable Cash flow generation increasing ▪ Positioned to deliver ~320koz in FY24 up 22% since ▪ $850M returned since 2016 ($690M acquisition cost) acquisition and 16% year-on-year ▪ Higher cash flow as
Slide 10: Red Lake
RED LAKE Focusing on increasing margin and cash generation Prioritising margin, reliability, and productivity improvements March quarter performance was on plan Next step in production profile 140-150koz per annum Significant Mineral Resource of 11.6Moz – options for longer mine life and/or further
Slide 11: Mungari
MUNGARI Unlocking large regional resource opportunity Three secure, well known and low risk ore sources1,2 ▪ FY27-32 average production ~200kozpa ▪ Extends life to 15 years at average production of 155koz pa Plant expansion on schedule and budget ▪ Mungari 4.2 doubles milling capacity to 4.2Mtpa2 ▪
Slide 12: Growing Resources per Share
GROWING RESOURCES PER SHARE Mineral Resources growth – gold1 (oz/’000 shares) 18 2.5 ▪ Discovering ounces at less than $50/oz of gold 17.2 ▪ Evolution has added 12.8Moz of gold and 812kt 2.2 Mineral Resources growth – copper 16 of copper primarily through drilling 2.0 (t/’000 shares) 14 1.5 12 10 9.
Slide 13: Our Portfolio
OUR PORTFOLIO Gold company with a copper (green) tinge ~32% of revenue from copper1 ~34% of Mineral Resources comprised of copper2 1. Revenue reported for March quarter FY24 2. Copper Mineral Resources have been converted to gold equivalent for comparison using the formula [Cu (t) * Cu spot price ($
Slide 14: Summary
SUMMARY CASHFLOW GENERATION INCREASING WITH UPSIDE TO SPOT METAL PRICES POSITIONED WELL FOR FY25 AND BEYOND DISCIPLINED CAPITAL ALLOCATION SENIOR MANAGEMENT TEAM IN PLACE 14
Slide 15: Appendix: Financial Summary
APPENDIX: FINANCIAL SUMMARY 15
Slide 16: Group Production
GROUP PRODUCTION Moving into FY25 Group ▪ Production to increase in FY25 FY24 production estimate Cowal ▪ Ramp up of underground Group gold ~749koz ▪ E42 moving towards end of Stage H Group copper ~65kt ▪ Major process plant shutdown in H2 (~28 days) ▪ A planned material increase in gold production
Slide 17: Cost Drivers
COST DRIVERS Inflation Resilient but slowing. Likely impact in FY25 ▪ Labour at ~5% for ~$65-70/oz ▪ Other costs at ~3% for ~$35-40/oz Stockpiles Utilisation of stockpiles at Mt Rawdon and Cowal ▪ Cash benefit using stockpile but higher non-cash cost in terms of AISC Sustaining capital FY24 Guidance
Slide 18: Summary
SUMMARY Long life, low cost portfolio in Tier 1 jurisdictions with multiple organic growth options Cash generation momentum with material upside to spot metal prices ▪ Operations have detailed plans to deliver June quarter ▪ Higher June quarter production at spot metal prices materially increases ca
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Financials Units H1 FY24 H1 FY23 Change Statutory Profit after tax A$M 97 101 (4%) Underlying Profit after tax A$M 158 103 54% Underlying EBITDA1 A$M 573 446 28% Underlying EBITDA Margin % 43% 39% 10% Capital Investment A$M 314 390 (19%) Net Mine Cash Flow A$M 203 86 136% Gearin
Slide 20: Production Highlights
PRODUCTION HIGHLIGHTS Gold Sep Qtr Dec Qtr Mar Qtr QoQ Units FY24 YTD produced FY24 FY24 FY24 Change (%) Cowal oz 67,861 71,848 78,109 9% 217,818 Ernest Henry oz 20,399 20,371 18,534 (9)% 59,305 Northparkes oz – 1,011 8,402 – 9,413 Red Lake oz 25,197 24,095 30,415 26% 79,707 Mungari oz 28,692 28,130
Slide 21: Deleveraging
DELEVERAGING Increasing shareholder returns ▪ FY24 Interim Dividend ▪ Fully franked 2.0 cents per share (~A$39M) ▪ Payment date: 5 April 2024 ▪ Record date: 28 February 2024 ▪ Balance Sheet ▪ Strong balance sheet with flexibility for shareholder returns - A$716M liquidity ▪ Gearing at 29.7%, down fr
Slide 22: Appendix: Sustainability
APPENDIX: SUSTAINABILITY 22
Slide 23: Sustainability
SUSTAINABILITY Integrated into everything we do TRIF1 Focused on improving health 7.86 and safety outcomes Maintained low-risk scores, including Level 1 for ‘Environment’ and 2 for ‘Social’ (scale from 10-1 with “1” Net zero progress: being the highest possible rating) ~16% reduction in emissions 1H
Slide 24: Appendix: Mineral Resource and Ore Reserve
APPENDIX: MINERAL RESOURCE AND ORE RESERVE 24
Slide 25: Growing Resources and Reserves
GROWING RESOURCES AND RESERVES 1 Scale, longevity and a diverse portfolio with copper differentiation ▪ Mineral Resources increased 8% to 32.7Moz of gold and 134% to 4.1Mt of copper ▪ Ore Reserves increased 15% to 11.4Moz of gold and 100% to 1.3Mt of copper GOLD COPPER Mineral Resource (Moz Au) Ore
Slide 26: Group Gold Mineral Resources at 31 December 2023
GROUP GOLD MINERAL RESOURCES AT 31 DECEMBER 2023 Gold Measured Indicated Inferred Total Resource Cut-off Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Gold Metal CP9 Project Type (g/t Au) (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (koz) (Mt) Grade (g/t) (koz) (Mt) Gra
Slide 27: Group Gold Ore Reserves at 31 December 2023
GROUP GOLD ORE RESERVES AT 31 DECEMBER 2023 Gold Proved Probable Total Reserve Competent Cut-off Tonnes Gold Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Gold Metal Project Type Person10 (g/t Au) (Mt) Grade (g/t) (koz) (Mt) (g/t) (koz) (Mt) Grade (g/t) (koz) Cowal1 Stockpiles 0.45g/t Au 40.4
Slide 28: Group Copper Mineral Resources at 31 December 2023
GROUP COPPER MINERAL RESOURCES AT 31 DECEMBER 2023 Copper Measured Indicated Inferred Total Resource Copper CP6 Tonnes Copper Tonnes Copper Copper Tonnes Copper Copper Tonnes Copper Copper Project Type Cut-off Grade (Mt) Metal (kt) (Mt) Grade (%) Metal (kt) (Mt) Grade (%) Metal (kt) (Mt) Grade (%) M
Slide 29: Group Copper Ore Reserves at 31 December 2023
GROUP COPPER ORE RESERVES AT 31 DECEMBER 2023 Copper Proved Probable Total Reserve CP5 Tonnes Copper Copper Tonnes Copper Copper Tonnes Copper Copper Project Type Cut-Off (Mt) Grade (%) Metal (kt) (Mt) Grade (%) Metal (kt) (Mt) Grade (%) Metal (kt) Ernest Henry1 Underground 0.50 – 0.75% CuEq 24.6 1.
Slide 30: Evolution Mining
Evolution MINING
Evolution Mining — Macquarie Australia Conference 2024 on 6ix