Evolution Mining Limited · ASX:EVN
Evolution Mining — BMO Global Metals, Mining & Critical Minerals Conference 2024
28 slides from Evolution Mining's conference presentation, Feb 26, 2024
Slide 1: Inspired people creating a premier global gold company
Inspired people creating a premier global gold company For personal use only THE BMO GLOBAL METALS, MINING & CRITICAL MINERALS CONFERENCE Jake Klein – Executive Chair 26 February 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: Evolution Snapshot
EVOLUTION SNAPSHOT L O N G L IF E, L O W O PER AT ING C O ST PO R T F O L IO MARKET US$3.93B CAPITALISATION1 For personal use only MINERAL RESOURCES2 32.7Moz gold, 4.1Mt copper Red Lake ORE RESERVES2 11.5Moz gold, 1.3Mt copper FY24 GOLD PRODUCTION 789koz +/- 5% GUIDANCE FY24 AISC GUIDANCE3 US$875/oz
Slide 5: Evolution – Positioned to Deliver
EVOLUTION – POSITIONED TO DELIVER INCREASING 1 TAILWINDS FOR 2 HIGH QUALITY 3 CASH GOLD PRICE PORTFOLIO For personal use only GENERATION2 Rising geopolitical Net mine cash flow Long life, low cost, US$133M 136% tensions driving high margin assets in demand for ‘safe- Underlying NPAT Tier 1 jurisdict
Slide 6: Cashflow Momentum – 1H FY24 Results
CASHFLOW MOMENTUM Major capital (US$/oz produced) 1H FY24 RESULTS 602 ▪ Capital intensity is reducing 472 For personal use only ▪ Major capital per ounce 22% lower than FY23 FY23 1H FY24 ▪ Capital guidance unchanged AIC margin (US$/oz) ▪ AIC margin increased ~3.5 times compared to FY23 392 ▪ Lower c
Slide 7: Northparkes
N Australia NORTHPARKES New South Wales Immediate cash flow returns with resource optionality NSW Acquisition Integration Positive start For personal use only Northparkes Generated cash ✓ Positive engagement and delivered to Cowal Completed in with external plan in the first Victoria December stakeh
Slide 8: Ernest Henry
ERNEST HENRY Significant free cash flow delivery ~US$1.2B1 delivered to date For personal use only Current operational status • Mine life to 2040 • FY24 production guidance of 50,000t of copper, 80,000oz of gold (+/-5%) Extension of • FY24 AISC guidance US$(1,306)/oz (+/-5%) mineralisation Future un
Slide 9: Cowal
COWAL Higher cash flows ramping up ▪ Underground mining continues to ramp up with grade ~2.5x open pit; investment nearing completion For personal use only ▪ Open pit operations continuing at E42 – increasing ore tonnes and grade ▪ Net mine cash flow for the half-year of ~US$51M A world class open p
Slide 10: Mungari
Long term returns with Ore Reserve conversion feeding expanded mill MUNGARI ▪ Plant expansion on track, unlocks large regional resource base1,2 For personal use only ▪ Doubles processing capacity to 4.2Mtpa ▪ FY27-32 average production ~200kozpa ▪ Extends life to 15 years at average production of ~1
Slide 11: Red Lake
RED LAKE FOCUSING ON INCREASING MARGIN AND CASH GENERATION For personal use only Decision taken in January 2024 to change plan to deliver improved cash position Focus on margin, reliability, and productivity improvements January performance was on plan Production steps up in March and June quarters
Slide 12: Deleveraging
DELEVERAGING Increasing shareholder returns ▪ FY24 Interim Dividend For personal use only ▪ 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$716M liquidity ▪ Gea
Slide 13: Summary
SUMMARY CASHFLOW GENERATION INCREASING For personal use only HIGH-QUALITY RESOURCES & RESERVES IMPROVING BALANCE SHEET AND LIQUIDITY FOCUS, DELIVERY, PREDICTABILITY 13
Slide 14: For personal use only
For personal use only
Slide 15: Appendix: Financial Summary
For personal use only APPENDIX: FINANCIAL SUMMARY 15
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Financials Units H1 FY24 H1 FY23 Change For personal use only Statutory Profit after tax A$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
Slide 17: Appendix: Sustainability
For personal use only APPENDIX: SUSTAINABILITY 17
Slide 18: Sustainability
SUSTAINABILITY Integrated into everything we do For personal use only TRIF1 Focused on improving health 8.9 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% redu
Slide 19: Appendix: Business Update
For personal use only APPENDIX: BUSINESS UPDATE 19
Slide 20: Business Update
BUSINESS UPDATE ◼ Group Guidance ▪ Production in the range: 789koz Au (±5%) & 62.5kt Cu (±5%) For personal use only ▪ AISC in the range: US$875/oz (±5%) ▪ Remain on track post January performance ◼ March quarter ▪ Major planned semi-annual plant shutdowns - Cowal and Ernest Henry ▪ Cowal UG on track
Slide 21: Business Update
BUSINESS UPDATE ◼ Red Lake ▪ Decision taken in January to change plan to deliver improved cash For personal use only position ▪ Focus on margin, reliability, and productivity improvements ▪ January performance on plan ▪ Production step up in March and June quarters ◼ Projects and capital ▪ Mungari 4
Slide 22: Appendix: Mineral Resource and Ore Reserve
For personal use only APPENDIX: MINERAL RESOURCE AND ORE RESERVE 22
Slide 23: 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 For personal use only ▪ Ore Reserves increased 15% to 11.4Moz of gold and 100% to 1.3Mt of copper GOLD COPPER Mineral
Slide 24: Improving Tier Portfolio
IMPROVING TIER 1 PORTFOLIO 1 Through targeted acquisitions and exploration success For personal use only December Cowal Ernest Mungari Red Mt Northparkes December December 2022 Ernest Henry Marsden Northparkes December 2022 Henry Lake Rawdon 2023 Resource 2023 Resource Resource Resource December Cow
Slide 25: Group Gold Mineral Resources at 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 26: Group Gold Ore Reserves at 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 27: Group Copper Mineral Resources at 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 28: Group Copper Ore Reserves at 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.
Evolution Mining — BMO Global Metals, Mining & Critical Minerals Conference 2024 on 6ix