Slide 1: Acquisition to Elevate Mungari to a Cornerstone Asset
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Acquisition to Elevate Mungari to a Cornerstone Asset Investor Presentation 22 July 2021
Slide 2: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER IMPORTANT: You must read the following before continuing This presentation is issued by Evolution Mining Limited (“Company” or “Evolution” or “EVN” or the “Group”). This presentation has been prepared in relation t
Slide 3: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER Reserves and resources reporting of Evolution and the Acquisition Assets Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia
Slide 4: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER Financial data All dollar values are in Australian dollars (“$”or “A$”) unless stated otherwise. The financial information for the Company included in this presentation has been prepared in accordance with Australi
Slide 5: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER Future performance (continued) These factors may include, but are not limited to, risks and uncertainties associated with the ongoing impacts of COVID-19, changes in commodity prices, foreign exchange fluctuations
Slide 6: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER Not an offer (continued) The distribution of this presentation (including an electronic copy) outside Australia and New Zealand may be restricted by law. If you come into possession of this presentation, you should
Slide 7: Important Notices and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES IMPORTANT NOTICES AND DISCLAIMER Disclosure The underwriter, together with its affiliates, is a full service financial institution and commercial bank engaged in various activities, which may include trading, financing, financial advisory, investm
Slide 8: Production Target & Forecast Financials
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PRODUCTION TARGET & FORECAST FINANCIALS Group Three-Year FY22 FY23 FY24 Outlook Production (oz) 700,000 – 760,000 815,000 – 875,000 940,000 – 1,010,000 AISC (A$/oz)1 1,220 – 1,280 1,125 – 1,185 1,170 – 1,230 Sustaining Capex (A$/M) 125 – 155 120 –
Slide 9: Table of Contents
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TABLE OF CONTENTS 1 Transaction Overview 10 2 Transaction Highlights 16 3 Overview of the Acquisition Assets 21 4 Transaction Funding 26 5 Evolution: A Premier Global Mid-Tier Gold Company 31 6 Appendices 39 9
Slide 10: Transaction Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRANSACTION OVERVIEW Section I
Slide 11: Elevating Mungari to create Evolution's fourth cornerstone asset
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRANSACTION OVERVIEW Elevating Mungari to create Evolution’s fourth cornerstone asset Map of the Acquisition Assets and Mungari ◼ A logical, value accretive and opportunistic acquisition of a portfolio of Legend high grade underground operating mi
Slide 12: Transaction Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRANSACTION SUMMARY ◼ Evolution Mining Limited (ASX:EVN) (“Evolution”) has agreed to acquire the Acquisition Assets from Northern Star Resources Limited (ASX:NST) (“Northern Star”) for total consideration of A$400mm, payable in cash upon closing o
Slide 13: Consistent with Strategy
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES CONSISTENT WITH STRATEGY Clear and Consistent Strategy Transaction Fit Builds on strong existing Maduwongga, Marlinyu Ghoorlie and community Build a reputation for sustainability, reliability and transparency ✓ partnerships in Kalgoorlie region an
Slide 14: Enhances Portfolio Quality
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ENHANCES PORTFOLIO QUALITY Increases scale, quality and mine life at Mungari 3,000 Ernest Henry Production Base2 2,500 100koz LOM AISC Margin (A$/oz)1 Acquisition Assets extend Mungari’s mine 2,000 life and support Mungari mill expansion to Cowal
Slide 15: Pro-Forma Metrics
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PRO-FORMA METRICS The addition of the Acquisition Assets elevates Mungari to become Attractive production growth pipeline in low-risk jurisdictions Evolution’s fourth cornerstone asset: Evolution Group production profile (Gold, koz) 940 – 1,010 ◼
Slide 16: Transaction Highlights
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRANSACTION HIGHLIGHTS Section II
Slide 17: Investment Highlights
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INVESTMENT HIGHLIGHTS ◼ Anticipated to increase cash flow and extends mine life to position Mungari as Evolution’s fourth cornerstone asset Acquisition of high ◼ Displaces lower grade mill feed and supports Mungari mill expansion to underpin 200ko
Slide 18: A Fourth Cornerstone Asset
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES A FOURTH CORNERSTONE ASSET Positions Mungari as a cornerstone asset within the Evolution portfolio to achieve gold production objective of 200koz p.a. post mill expansion ◼ Provides significantly improved operational optionality through Doubling M
Slide 19: Operational Synergies
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OPERATIONAL SYNERGIES The close proximity of the Mungari mill to the Acquisition Assets provides a platform to realise material operational synergies Map of the Acquisition Assets and Mungari Resource Grade Haulage to Haulage to Acquisition of hig
Slide 20: World Renowned Greenstone Gold Terrane
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES WORLD RENOWNED GREENSTONE GOLD TERRANE Large pipeline of attractive exploration projects across ~1,027km2 tenement package ◼ Multiple operating mines in the region creates greater optionality and flexibility ◼ Project pipeline bolstered by highly
Slide 21: Overview of the Acquisition Assets
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OVERVIEW OF THE ACQUISITION ASSETS Section III
Slide 22: Acquisition Assets Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ACQUISITION ASSETS OVERVIEW Two operating gold mines with further development potential ◼ The Acquisition Assets principally comprises two operating assets and a near-term development project Acquisition Assets Ore Reserve & Mineral Resources ‒ Ku
Slide 23: Kundana Operation Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES 1 KUNDANA OPERATION OVERVIEW Current Ownership ◼ 100% Northern Star Resources Kundana core sample1 ◼ ~600km east of Perth Location ◼ ~20km west of Kalgoorlie (~8km north of Mungari) ◼ 25 mining leases, one prospecting lease and nine exploration Te
Slide 24: EKJV Operation Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES 2 EKJV OPERATION OVERVIEW ◼ 51% Northern Star Resources EKJV Long Section by Grade2 Current Ownership Hornet Pit Shells ◼ 49% Rand Mining Limited & Tribune Resources Limited1 North ◼ ~600km east of Perth Location Pode ◼ ~20km west of Kalgoorlie (~
Slide 25: Carbine Project Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES 3 CARBINE PROJECT OVERVIEW Current ownership ◼ 100% Northern Star Resources ◼ ~57km from Kalgoorlie Location ◼ ~43km northwest of Mungari and ~19km north west from Carbine optimised pit shell1 Evolution’s Castle Hill tenements ◼ 6 mining leases, 7
Slide 26: Transaction Funding
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRANSACTION FUNDING Section IV
Slide 27: Equity Capital Raising Details
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES EQUITY CAPITAL RAISING DETAILS Placement size and ◼ Fully underwritten institutional placement to raise approximately A$400mm (“Institutional Placement”)1 structure ◼ Approximately 104mm New Shares to be issued under the Institutional Placement, e
Slide 28: Sources and Uses of Funds
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SOURCES AND USES OF FUNDS ◼ The proceeds from the Institutional Placement will be used to Sources of Funds A$mm fund the acquisition of the Acquisition Assets Institutional Placement 400 ◼ Transaction costs, including stamp duty, will be funded fr
Slide 29: Placement and SPP Timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PLACEMENT AND SPP TIMETABLE Event Date1 (2021) Record date for SPP 7:00pm (Sydney time), Wednesday, 21 July Trading halt and announcement of Institutional Placement and SPP Thursday, 22 July Institutional Placement bookbuild Thursday, 22 July Anno
Slide 30: Pro Forma Capitalisation
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PRO FORMA CAPITALISATION Evolution to maintain a strong balance sheet post Transaction and Equity Raising ◼ Evolution’s decision to fully equity Standalone Equity Pro Forma fund the acquisition of the Acquisition Pro Forma Capitalisation UoM Evolu
Slide 31: A Premier Global Mid-Tier Gold Company
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES A PREMIER GLOBAL MID-TIER GOLD COMPANY Section V
Slide 32: Evolution Snapshot
Pictured: Mungari Processing Facility NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES EVOLUTION SNAPSHOT ◼ Evolution is among Australia’s leading gold producers, with a diversified portfolio of low-cost, long-life assets across Australia and
Slide 33: Sustainability: Integrated into Everything We Do
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SUSTAINABILITY: INTEGRATED INTO EVERYTHING WE DO Keeping our people healthy and safe ◼ Through strong collective leadership Evolution continues to operate safely through COVID-19 with no material impact on operations Creating value in the areas we
Slide 34: Portfolio Snapshot
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PORTFOLIO SNAPSHOT HIGH QUALITY PORTFOLIO Growth strategy focused on sustainable high margin ounces Safe and reliable long-life, low-cost cornerstone operations Focused portfolio of 6-8 assets in Tier 1 jurisdictions Mt Carlton Ernest Henry (Au, C
Slide 35: FY21 Operating Results
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES FY21 OPERATING RESULTS ◼ Strong cash flow expected to underpin future growth ‒ Operating mine cash flow of A$937 million and net mine cash flow of A$555 million ◼ Production of 681koz ounces delivered to original guidance of 670 – 730koz and was ~
Slide 36: Organic Growth Strategy
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ORGANIC GROWTH STRATEGY Executing a growth strategy focused on sustainable high margin ounces Cowal Expansion Investment in the development of the Cowal Underground project and longer-term Cowal Targets by FY24 development of satellite open pits i
Slide 37: Capital Management
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES CAPITAL MANAGEMENT Successful track record of portfolio optimisation, supported by prudent financing strategy Robust Balance Sheet Debt Repayment Schedule 1 ◼ Modest gearing of 15% as at 30 June 2021 (A$M) ◼ Cash and liquidity of A$815M2 ◼ Strong
Slide 38: Track Record of Disciplined M&A
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES TRACK RECORD OF DISCIPLINED M&A Successful track record of portfolio optimisation through disciplined approach to M&A Acquisition: Acquisition: Divestment: Divestment: Addition of Acquisition Assets Evolution acquired Cowal from Divestment: Catalp
Slide 39: JORC Code Mineral Resources and Ore Reserves
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES JORC CODE MINERAL RESOURCES AND ORE RESERVES Appendix A
Slide 40: Evolution 2020 Gold Mineral Resources
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES EVOLUTION 2020 GOLD MINERAL RESOURCES Gold Measured Indicated Inferred Total Resource Dec 19 Resource Gold Gold Gold Gold Gold Gold Gold Tonnes Gold Tonnes Tonnes Tonnes CP4 Gold Metal Project Type Cut-Off Metal Grade Metal Grade Metal Grade Metal
Slide 41: Evolution 2020 Gold Ore Reserves
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES EVOLUTION 2020 GOLD ORE RESERVES Dec 19 Gold Proved Probable Total Reserve Reserves Gold Gold Gold CP4 Tonnes Gold Tonnes Gold Grade Tonnes Gold Gold Metal Project Type Cut-Off Metal Metal Metal (Mt) Grade (g/t) (Mt) (g/t) (Mt) Grade (g/t) (koz) (
Slide 42: Evolution 2020 Copper Resources & Reserves
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES EVOLUTION 2020 COPPER RESOURCES & RESERVES Group Copper Mineral Resource Statement Dec 19 Copper Measured Indicated Inferred Total Resource Resources Copper Copper Copper Copper Copper Copper CP3 Tonnes Copper Tonnes Copper Tonnes Tonnes Copper Pr
Slide 43: Acquisition Assets Resources & Reserves
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ACQUISITION ASSETS RESOURCES & RESERVES Acquisition Assets Mineral Resource Statement1 Gold Measured Indicated Inferred Total Resource Gold Gold Tonnes Gold Grade Tonnes Gold Gold Metal Tonnes Gold Gold Metal Tonnes Gold Metal Project Metal Grade
Slide 44: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS Appendix B
Slide 45: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS 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, silver and co
Slide 46: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS General Risks (continued) Geological and ▪ There is a risk that unforeseen geological and geotechnical difficulties may be encountered when developing and mining Ore Reserves, such as unusual or unexpected geological conditions, pit wall
Slide 47: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS General Risks (continued) Regulatory risks ▪ Evolution’s operations are subject to various Federal, State, Provincial and local laws and plans including those relating to mining, prospecting, development, permit and licence requirements,
Slide 48: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS Risks specific to the Transaction (continued) Risks in relation to ability ▪ Evolution intends to process its share of EKJV ore through Evolution's Mungari Mill to reduce processing costs of that ore. Depending on the outcome of the curr
Slide 49: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEY RISKS Risks specific to the Transaction (continued) Inherited liabilities ▪ If the Transaction completes, Evolution may become directly or indirectly liable for liabilities that have been incurred by or in relation to the Acquisition Assets, a
Slide 50: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SUMMARY OF UNDERWRITING AGREEMENT Appendix C
Slide 51: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SUMMARY OF UNDERWRITING AGREEMENT Evolution has entered into a placement agreement “Placement Agreement” under which the underwriter has agreed to fully underwrite the Placement, subject to the terms and conditions of the Placement Agreement betwe
Slide 52: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SUMMARY OF UNDERWRITING AGREEMENT (vi) (quotation) ASX does not, or states that it will not, grant official quotation of all the Placement shares on the unconditional basis (or on a conditional basis provided such condition would not, in the reaso
Slide 53: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES SUMMARY OF UNDERWRITING AGREEMENT (xx) (change in directors) a change to the board of directors (other than the chief executive officer or chief financial officer) of Evolution; (xxi) (debt covenants) Evolution or any group member is in breach of
Slide 54: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFER RESTRICTIONS Appendix D
Slide 55: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person,
Slide 56: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFER RESTRICTIONS Hong Kong (2/2) No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsew
Slide 57: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES INTERNATIONAL OFFER RESTRICTIONS Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this docum
Slide 58: Not for release or distribution in the United States
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES