Slide 1: 2021 Half Year Financial Results
2021 HALF YEAR FINANCIAL RESULTS Jake Klein – Executive Chairman Lawrie Conway – Finance Director and CFO Glen Masterman – VP Discovery and Business Development 17 February 2021
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 STRONG Record net Sector leading 7c fully 1 FINANCIAL profit1 cash flow per franked RETURNS 57% ounce dividend SIGNIFICANT RESOURCES Mineral Resources 74% Ore Reserves 49% 2 & RESERVES year-on-year to 26.4Moz 9.9Moz year-on-year to UPLIFT Decline to access Transformation RED LAKE 2.9Moz U
Slide 4: Sustainability
SUSTAINABILITY Keeping our people safe ◼ Zero COVID-19 cases at our operations ◼ TRIF1 improved by 6% to 7.9 (December 19: 8.4) ◼ Strong reporting, investigating and learning culture Sustainability performance ◼ Inclusion in Dow Jones Sustainability Index Australia ◼ ‘A’ ranking in MSCI ESG rating a
Slide 5: Financial Highlights
Financials Units H1 FY21 H1 FY20 Change Statutory Profit after tax1 A$M 228.7 147.2 55% Underlying Profit after tax1 A$M 234.0 149.1 57% EBITDA Margin % 52% 49% 6% AIC Margin A$/oz 852 655 30% Earnings Per Share cps 13.4 8.7 55% Mine Cash flow2 A$M 354.0 351.8 1% Group Cash flow2 FINANCIAL A$M 218.1
Slide 6: Record Underlying Net Profit
RECORD UNDERLYING NET PROFIT ◼ Record underlying profit up 57% to A$234.0M ◼ Revenue up 9% due to higher metal prices offset by slightly lower metal sold ◼ Operating costs were in-line with prior period (up ~1%) ◼ Favourable inventory movements relate to stockpile utilisation and grades between two
Slide 7: Strong Margins & Cash Flows
STRONG MARGINS & CASH FLOWS ◼ Sector leading group EBITDA margin up 6% to 52% ◼ High margin at long life assets of Ernest Henry (73%), Cowal (60%) and Mungari (60%) ◼ Good base at Red Lake (34%) which will improve as benefits of transformation programs are realised ◼ Strong improvement at Mt Rawdon
Slide 8: Consistent Dividends
CONSISTENT DIVIDENDS Cumulative Dividends (A$M) ◼ Interim dividend ◼ Fully franked 7 cents per share 851 732 ◼ A$119.6M to be paid on 26 March 2021 459 298 ◼ Equal to 12% of revenue 7 21 43 87 171 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 H1 ◼ Strong yield at 3.5%(1) Cumulative Dividends Declared
Slide 9: Improving Portfolio Quality
IMPROVING PORTFOLIO QUALITY Asset Payback ◼ Track record of improving portfolio quality via M&A and 5.5 5.4 discovery 4.2 ◼ All assets acquired must repay their investment ◼ Ernest Henry repaid and Cowal will be repaid soon 97% 104% ◼ Significant improvement at Mungari last few years 83% ◼ Short pay
Slide 10: Significant Resource and Reserve Growth
SIGNIFICANT RESOURCE AND RESERVE GROWTH ▪ Mineral Resources up 74% year-on-year to 26.4Moz1 ▪ Red Lake Mineral Resource of 11.0Moz Dec 2019 Red Lake Cowal Mungari Mt Rawdon Mt Carlton Ernest Henry Cowal divest Dec 2020 ▪ Cowal Mineral Resource of 9.6 million ounces ▪ Ore Reserves up 49% year-on-year
Slide 11: Cowal 1Moz Underground Ore Reserve
COWAL 1MOZ UNDERGROUND ORE RESERVE Warraga decline Planned Galway decline Mineral Resources GRE46 Ore Reserves Underground E42 Open Open Cowal Mineral Resources of 9.6Moz gold (Dec 2019 – 8.6Moz) Cowal Ore Reserves of 4.6Moz gold (Dec 2019 – 3.6Moz) 11
Slide 12: Ernest Henry
ERNEST HENRY ◼ 2020 drilling program successfully completed ◼ Over 14km of drilling at cost of A$6M (100%) ◼ Additional infill drilling (10km) completed to assist in improving orebody knowledge & understanding ◼ Increased drilling program planned for 2021 ◼ Budget is up 100% on 2020 program ◼ Furthe
Slide 13: Red Lake 2.9Moz Ore Reserve
RED LAKE 2.9MOZ ORE RESERVE Decline HG Young Upper Red Lake MR – 427koz (5.4g/t Au) MR – 1,199koz (6.1g/t Au) Upper Campbell MR – 4,408koz (10.4g/t Au) OR – 1,847koz (7.4g/t Au) Existing Workings Resource Reserve Lower Campbell MR – 1,097koz (6.9g/t Au) OR – 148koz (6.5g/t Au) Cochenour Lower Red La
Slide 14: Campbell Young Dickenson (CYD) Decline Approved
HG Young CAMPBELL YOUNG DICKENSON deposit (CYD) DECLINE APPROVED ▪ Surface decline to access to Upper Campbell ▪ Hosts Ore Reserves of 1.85Moz at an average grade of 7.4g/t Au ▪ Two new mining fronts independent of current shaft constrained infrastructure Reid Shaft Box cut ▪ Production rates expect
Slide 15: Transformation Plan Ahead of Schedule
TRANSFORMATION PLAN AHEAD OF SCHEDULE Stage 1 transformation plan: 200kozpa+ at an AISC <US$1,000 per ounce by 2023 ✓ 11Moz Initial Mineral Resource Geology ✓ 2.9Moz Initial Ore Reserve ✓ Increased development to 1,152m in Jan 21 (Jan 20: 635m) Mining ✓ Building ore stockpile close to mill (Jan 21:
Slide 16: Summary
SUMMARY SIGNIFICANT STRONG RESOURCES & RED LAKE FINANCIAL RESERVES DELIVERING RETURNS UPLIFT 16
Slide 17: Appendix
APPENDIX
Slide 18: Sustainability Principles
SUSTAINABILITY PRINCIPLES The objective of our sustainability efforts is to deliver long-term stakeholder value through safe, low-cost gold production in an environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contribute positively to Actively manage clima
Slide 19: FY21 Guidance: Production and Costs
FY21 GUIDANCE: PRODUCTION AND COSTS Gold production All-in sustaining cost Sustaining Capital Major Capital FY21 Guidance (oz) (A$/oz) (A$M) (A$M) Cowal 205,000 – 230,000 990 – 1,040 12.5 – 17.5 170.0 – 180.0 Red Lake 125,000 – 135,000 2,050 – 2,100 55.0 – 60.0 30.0 – 40.0 Mungari 120,000 – 130,000
Slide 20: FY21 Guidance: Discovery and Non-Cash
FY21 GUIDANCE: DISCOVERY AND NON-CASH Depreciation & Resource Discovery FY21 Guidance Amortisation* Definition** A$/oz A$M A$M Cowal 320 – 370 3.0 – 5.0 35.0 – 45.0 Red Lake 400 – 450 10.0 – 15.0 15.0 – 20.0 Mungari 300 – 350 1.0 – 2.0 8.0 – 13.0 Mt Rawdon 550 – 600 1.0 – 2.0 1.0 – 2.0 Mt Carlton 97
Slide 21: Evolution 2020 Gold Mineral Resources
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 Project Type Cut-Off Metal Grade Metal Grade Metal Grade Metal Gold Metal (Mt) Grade (g/t) (Mt) (Mt) (Mt) (koz) (g/t) (koz) (g
Slide 22: Evolution 2020 Gold Ore Reserves
EVOLUTION 2020 GOLD ORE RESERVES Dec 19 Gold Proved Probable Total Reserve Competent Reserves Tonnes Gold Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Gold Metal Person4 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 2020 Copper Reserves & Resources
EVOLUTION 2020 COPPER RESERVES & RESOURCES Group Copper Mineral Resource Statement Dec 19 Copper Measured Indicated Inferred Total Resource Resources Copper Copper Copper Copper Copper Copper Copper Copper CP3 Tonnes Tonnes Tonnes Tonnes Copper Project Type Cut-Off Grade Metal Grade Metal Grade Meta
Slide 24: Group MROR Growth Since Inception
GROUP MROR GROWTH SINCE INCEPTION Group Mineral Resources growth of 283% Group Ore Reserves growth of 186% Divestments ▪ Reinforces strategy of identifying and acquiring assets with strong mineral endowment where value can be Acquisitions Depletion Growth unlocked by the Discovery team ▪ Reserve lif
Slide 25: Evolution
Evolution MIINTINE