Slide 1: Business Update Presentation
BUSINESS UPDATE PRESENTATION CLICK TO EDIT MASTERJakeTITLE STYLE Klein – Executive Chairman 1 Lawrie Conway – Finance Director and CFO 27 June 2022
Slide 2: Forward Looking Statement
F O RWA R D L O O K I N G S TAT E M E N T 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”, “
Slide 3: Contents
CONTENTS 1 FY22 Operations Update 2 Update by Operation 3 Production: FY23 Guidance and FY24 Outlook Cost and Capital: 4 FY23 Guidance and FY24 Outlook 3
Slide 4: FY22 Operations Update
FY22 OPERATIONS UPDATE ▪ FY22 gold production expected to be around 640,000oz ▪ FY22 AISC to be around $1,250/oz1 (US$875/oz) ▪ Declining copper price negatively impacting outstanding shipments at Ernest Henry ▪ Sustaining and major capital expected to be at bottom end of guidance ▪ Red Lake on trac
Slide 5: Red Lake
RED LAKE ▪ Production to increase by ~65% over next two years Upper Campbell development ▪ FY23: Up ~35% to ~160,000oz ▪ FY24: Up ~25% to ~200,000oz (from FY23) ▪ FY23 production underpinned by consistent delivery: ▪ Development above 1,200m/mth (for last 9 months) ▪ Campbell and Red Lake Mills proc
Slide 6: Cowal
COWAL Underground mine design ▪ Production to increase by ~40% over next two years ▪ FY23: Up ~20% to ~275,000oz ▪ FY24: Up ~15% to ~320,000oz (from FY23) ▪ Underground project on schedule and budget ▪ Mine development on plan ▪ All material contracts now awarded FY23 Stopes FY24 Stopes FY25+ Stopes
Slide 7: Ernest Henry
ERNEST HENRY ▪ Gold production of ~82,000oz in FY23 and FY24 Underground and surface drilling completed since the May 2021 Mineral Resource update ▪ Higher gold recovery offsetting planned lower grade ▪ Copper production ~55,000t (FY23) and ~50,000t (FY24) ▪ Updated Mineral Resource to be released i
Slide 8: Mungari and Mt Rawdon
MUNGARI AND MT RAWDON Mungari ▪ Production impacted by COVID related absenteeism ▪ Challenging labour market ▪ Plant Expansion Feasibility Study Image TBC ▪ On track for completion by end December 2022 Mungari mill ▪ Construction deferred due to market conditions ▪ Production of ~127,500oz for FY23
Slide 9: Production Guidance & Outlook
PRODUCTION Production (koz) GUIDANCE & OUTLOOK ▪ Increase of 25% in next 2 years 800 (+/-5%) 720 (+/-5%) ▪ Cowal increases 20% in FY23 with higher grade ~640 ore from the open pit and commencement of underground mine continuing into FY24 ▪ Red Lake production at ~160,000oz (FY23) lifting to ~200,000
Slide 10: AISC Guidance & Outlook
All In Sustaining Cost1 AISC GUIDANCE & OUTLOOK ($/oz) ~1,250 1,240 (+/-5%) 1,240 (+/-5%) ▪ Competitive low-cost position maintained ▪ Next two years at $1,240/oz (US$870/oz) ▪ Increased production offsetting the impacts of the current inflated cost market ▪ Focus remains on margin over ounces FY22
Slide 11: Cost Inflation
COST INFLATION Diesel Price (A$/bbl) Labour $240/bbl ▪ Costs expected to be 5% – 6% higher in FY23 ▪ Increase is weighted to variable over fixed pay ▪ Labour represents ~50% of operating costs $105/bbl Diesel ▪ Price currently ~130% higher than July 2021 ▪ Diesel comprises ~5% of operating costs ▪ S
Slide 12: Capital Guidance & Outlook
CAPITAL GUIDANCE & OUTLOOK Sustaining Capital ($M) Major Capital ($M) Sustaining Capital FY23 Guidance ▪ Fleet replacement at Ernest Henry given positive 190-240 190-240 530-600 ~450 view on mine life extension ~150 330-380 ▪ Some FY22 capital deferred and carried over Major Capital FY23 Guidance FY
Slide 13: Summary
SUMMARY REMAINING ONE OF THE LOWEST COST GLOBAL GOLD PRODUCERS PRUDENT AND GATED CAPITAL SPEND – FOCUSED ON MARGIN STRONG BALANCE SHEET PROVEN AND DISCIPLINED MANAGEMENT TEAM 13
Slide 14: Evolution Mining
Evolution MINING