Slide 1: 2017 Diggers & Dealers
For personal use only 2017 Diggers & Dealers 7 August 2017 Jake Klein – Executive Chairman
Slide 2: Forward looking statement
For personal use only 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”, “expe
Slide 3: Overview
Overview ASX code EVN For personal use only Shares outstanding 1,683M Market capitalisation(1) A$3,720M Average daily share turnover(2) A$25M Net debt(3) A$399M Forward sales(3) 458,495oz at A$1,645/oz Dividend policy 4% of revenue Major shareholders La Mancha 28%(4), Van Eck 11% Group gold producti
Slide 4: Australia's 2nd largest gold miner
Australia’s 2nd largest gold miner 1 Cowal (100%) For personal use only Gold Reserves 2016 (Moz)(1) 3.20 Gold Resources 2016 (Moz)(1) 5.04 Reserve Grade 2016 (Au g/t) FY17A Au Production (koz) 0.85 263 5 Cracow (100%) FY17A AISC (A$/oz) 833 Gold Reserves 2016 (Moz)(1) 0.19 FY17 Net M
Slide 5: Gold price
Gold price use only 1,800 A$ per ounce 1,600 Price per ounce For personal 1,400 1,200 US$ per ounce 1,000 30-Jun-14 31-Dec-14 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17 5
Slide 6: The investor dilemma
The investor dilemma More than half of the companies in Evolution’s peer group delivered NEGATIVE returns over the three For personal use only year period to 30 June 2017 Share price movement (30 June 2014 – 30 June 2017) 314% 257% 177% 171% 133% 95% 56% 52% 18% -5% -11% -15% -33% -37% -47% -49% -
Slide 7: Attributes of a sustainable gold business
Attributes of a sustainable gold business For personal use only High quality, low cost, long life assets Discovery success Financial discipline Strong vision, values and sense of purpose Counter-cyclical investment Building a business that prospers through the cycle 7
Slide 8: Upgrading the quality of our asset portfolio
Upgrading the quality of our asset portfolio For personal use only $2,250 Bubble size represents FY17 production $2,000 Ernest Henry (Gold price of A$1,600/oz less FY17 AISC)(1) Current indicative AISC margin (A$/oz) $1,750 $1,500 Group Reserve life > 8 years $1,250 Mt $1,000 Carlton $750 Mt Cowal R
Slide 9: Mt Carlton
Mt Carlton For personal use only March Evolution June 2010 Delivery 2017 FEASIBILITY STUDY OFFTAKE PARTY SECURED ONE OF THE HIGHEST GRADE DELCARED PROJECT OPEN PIT GOLD MINES IN THE UNECONOMIC DEVELOPED BY EVOLUTION AND WORLD COMMISSIONED IN 2013 LIFE OF MINE 2025 ENTERPRISE VALUE A$51M INITIAL CAPI
Slide 10: Cowal
Cowal For personal use only July Evolution June 2015 Delivery 2017 MINING MINING PERMIT TO 2024 + 8 years PERMIT TO 2032 2014 2016 RESERVES 1.56Moz1 + 2.28Moz2 RESERVES 3.20Moz3 2014 MINERAL RESOURCES 3.43Moz1 + 2.24Moz2 2016 MINERAL RESOURCES 5.04Moz3 July 2015 – June 2017 GOLD PRODUCTION 501koz AD
Slide 11: Ernest Henry
Ernest Henry Ernest Henry ore body looking west Large scale, long life, copper-gold asset operated by For personal use only Glencore Approximately A$600 million recently invested by Glencore in expanding the underground mine to 6.4Mtpa Evolution’s economic interest acquired 1 November 2016: 12
Slide 12: High margin business
High margin business EBITDA Margin For personal use only 64% 61% 59% 59% 58% 55% 49% 48% 47% 49% 46% 49% 39% 18% 11% Cowal Mungari Mt Carlton Mt Rawdon Edna May Cracow Ernest Henry Group* FY16 FY17 *Group excludes Pajingo Group AISC1 (per ounce) Operating Mine Cash Flow (A$M) US$1,259 A$1,228 A$1,08
Slide 13: The discovery paradox
The discovery paradox 60 gold deposits exceeding two million ounces discovered between 1997 and 2011 For personal use only Approximately 500 million ounces of gold or copper-gold resource inventory Porphyry deposits accounted for 43% Only one of these porphyry deposits has since been develop
Slide 14: Reserve growth
Reserve growth Organic growth through intensive discovery and resource definition drilling programs For personal use only Acquisition of high quality, low cost ounces December 2014 → December 2016: Ore Reserves increased by 218% Reserves per share increased by 33% 1 Reserve life increase
Slide 15: Mungari exploration
Mungari exploration FY17 aggressive exploration program delivered For personal use only strong results >A$19M expenditure & >150km drilling Resource definition drilling extends high grade mineralisation beyond existing resources Emu – 23.7m (14.2m etw) grading 13.7g/t Au (EMUD004) Burgundy
Slide 16: Vision
Vision For personal use only Be known as a company that is good for your career Move meaningfully down the Bradley curve for risk Improve operational efficiency and productivity Develop an ore body we have discovered Inspired people creating Australia’s premier gold company 16
Slide 17: ASX code: EVN
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 18: Evolution Gold Ore Reserves
Evolution Gold Ore Reserves Gold Proved Probable Total Reserve For personal use only Competent Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person Project Type Cut-Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Cowal1 Open pit 0.4 43.70 0.71 994 73.0
Slide 19: Evolution Gold Mineral Resources
Evolution Gold Mineral Resources Gold Measured Indicated Inferred Total Resource For personal use only Competent Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes Person Project Type Cut-off Grade Metal Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz)
Slide 20: Evolution Copper Reserves and Resources
Evolution Copper Reserves and Resources Group Copper Ore Reserves Statement For personal use only Copper Proved Probable Total Reserve Competent Copper Copper Copper Grade Copper Copper Copper Person Project Type Cut-Off Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Grade (%) Metal (kt) (%) Metal (kt) Grade (
Slide 21: Cowal Ore Reserve growth
Cowal Ore Reserve growth Cowal Ore Reserve Changes For personal use only December 2014 to December 2016 4,000 3,500 87 29 326 494 Reserve ounces (koz) 3,000 309 69 900 2,500 231 2,000 471 1,500 3,200 2,848 1,000 1,555 500 0 2014 Reserve Stockpiles Stage G Stage H Depletion December Additions Model C
Slide 22: Our Evolution
Our Evolution Acquisition of Mungari For personal use only economic acquisition interest in with La Mancha Ernest Cowal Takeover of Henry acquisition Phoenix Tennant Gold Creek JV Puhipuhi with acquisition FY10 FY17 Mt Carlton Emmerson exploration project first concentrate Resources FY10 FY16 produc
Slide 23: Additional opportunities at Cowal
Additional opportunities at Cowal Assessing further asset enhancement For personal use only opportunities including: E46 Co-treatment of high-grade oxide stockpiles to bring forward treatment E46 East Increased gold production of 10 – 12koz per annum Secondary crushing E42 Increase through
Slide 24: Mt Rawdon
Mt Rawdon For personal use only Nov Evolution June 2011 Performance 2017 SCHEDULED COMPLETION 2022 + 4 years SCHEDULED COMPLETION 2026 2011 RESERVES 0.9Moz Replacing depletion 2016 RESERVES 0.9Moz LOAD & HAUL Contract Cost benefits and improved LOAD & HAUL Owner operator efficiency Resource drilling
Slide 25: Cracow
Cracow For personal use only Nov Evolution June 2011 Performance 2017 LIFE OF MINE 2014 + 6 years LIFE OF MINE 2020+ 2011 RESERVES 0.2Moz Replacing depletion 2016 RESERVES 0.2Moz MINING Contract Cost benefits and MINING Owner operator productivity improvements Resource drilling over 20 years 802km I
Slide 26: Edna May
Edna May Turnaround progressing under new management post strategic review For personal use only Significant increase in gold production and decrease in AISC in June 2017 quarter Production from underground to commence in FY18 Mineral Resources 848koz Au Ore Reserves 426koz Au Greenfinch 6