Slide 1: BMO Global Metals & Mining Conference
For personal use only BMO GLOBAL METALS & MINING CONFERENCE F E B R U A RY 2 0 2 0 JAKE KLEIN – EXECUTIVE CHAIRMAN
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT For personal use only 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
Slide 3: Evolution Snapshot
EVOLUTION SNAPSHOT For personal use only ASX code EVN Mineral Resources(4) 15.2Moz Market capitalisation(1) US$5.2B / A$7.7B Ore Reserves(4) 6.6Moz Average daily turnover(2) US$40M / A$60M Reserve price assumption A$1,450/oz Net cash(3) US$114M / A$170M FY20 production guidance 725koz Payout of 50%
Slide 4: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY A portfolio of 6 to 8 assets generating superior returns with For personal use only an average mine life of at least 10 years Build a reputation for sustainability, reliability and transparency Embed financial discipline across the business An active pipeline of quality
Slide 5: H1 FY20 Highlights
H1 FY20 HIGHLIGHTS For personal use only Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets ▪ Record profit ▪ Future cornerstone asset ▪ 1.1 million ounces added ▪ Record cash flow
Slide 6: Sustainability Principles
S U S TAI N AB I L I T Y P R I N C I P L E S The objective of our sustainability efforts is to deliver long-term stakeholder value through safe, low-cost gold production in an For personal use only environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contr
Slide 7: Sustainability
SUSTAINABILITY For personal use only ◼ Improvement in safety performance ◼ TRIF reduced to 8.4 from recent peak of 9.3 ◼ Inclusion in Dow Jones Sustainability Index Australia ◼ One of only two ASX listed gold miners ◼ Bushfires and drought assistance ◼ Donation of A$3M and ongoing support from Evolu
Slide 8: Cowal Water Security
COWAL WATER SECURITY For personal use only Executing a water security plan to mitigate drought risk with the objective of long-term self sufficiency ◼ Second pipeline across Lake Cowal commissioned ◼ Pumping capacity increased by ~40% Risk of potential water related ◼ Three additional bores in Easte
Slide 9: FY20 Half-Year Financial Highlights
FY20 HALF-YEAR FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS For personal use only Record underlying net Record Earnings profit after tax EBITDA per share 62% to A$149.1M 23% to A$441.2M 61% to 8.7cps Mine operating Net mine Record Group cash flow cash flow cash flow 32% to A$511.8M 48% to A$351.8M 119%
Slide 10: Quality Portfolio
QUALITY PORTFOLIO For personal use only ◼ Evolution is among the highest margin producers of the top ten gold miners in the Van Eck Gold Miners Index All-in Sustaining Cost (US$/oz) 983 995 1,012 938 966 880 894 897 713 564 Kirkland Gold Fields Kinross Agnico Northern Evolution Anglogold Newcrest Ne
Slide 11: Group Cash Flow
H1 FY20 Mine Cash Flow (A$M) GROUP CASH FLOW 300 512 600 250 500 210 200 400 For personal use only 135 ◼ Since July 2015 150 300 100 200 ◼ Operating cash flow: A$3.4B 142 43 49 46 352 129 28 50 100 41 ◼ Net mine cash flow: A$2.3B - -7 18 30 0 Cowal Ernest Mt Carlton Mungari Mt Rawdon Cracow EVN Grou
Slide 12: Sector Leading Dividends
SECTOR LEADING DIVIDENDS For personal use only ◼ Committed to investing in growth and returning funds to shareholders ◼ Dividend policy payout of 50% of free cash flow 225 Dividends (US$ per ounce produced) Six months to December 2019 95 93 78 65 54 40 25 7 0 Evolution Northern Star Agnico Eagle Evo
Slide 13: Cowal
COWAL E46 Open Pit For personal use only ▪ Sustainable, reliable, low cost asset ▪ Production objective >300koz p.a. E42 Open Pit GRE46 Dalwhinnie ▪ Float Tails Leach circuit Underground ▪ Plant expansion ▪ 2.5Moz underground resource E41 Open Pits ▪ Underground mine Pre-Feasibility Study Cowal Dece
Slide 14: GRE46 Dalwhinnie Underground
GRE46 DALWHINNIE UNDERGROUND For personal use only ◼ GRE46 Dalwhinnie underground resource Cowal GRE46 Dalwhinnie underground increased by 77% from 1.4Moz to 2.5Moz Mineral Resource increased by 77% to 2.5Moz ◼ Maiden underground Ore Reserve to be declared in CY2020 ◼ Mineralisation remains open at
Slide 15: Ernest Henry
ERNEST HENRY For personal use only ▪ History of reliable operational delivery ▪ Evolution’s interest generated free cash flow of A$129M in the six months to December 2019 ◼ Early addition of three new sub-levels to reserves ◼ 18,000m drill program planned for 2020 calendar year targets extensions to
Slide 16: Red Lake Acquisition
RED LAKE ACQUISITION For personal use only CANADA ▪ Evolution implementing plans to transform Red Lake into a cornerstone asset ▪ High grade, long life, underground gold mine in Canada’s most prolific gold district ▪ Under-capitalised asset with significant turnaround opportunity ▪ Outstanding explo
Slide 17: Red Lake Update
RED LAKE UPDATE For personal use only Exploration Mining Processing ▪ Immense exploration potential a ▪ Mining plan will focus on large ▪ Improve reliability and key driver of the acquisition high productivity zones utilisation of Campbell Mill ▪ Drilling has commenced with 5 ▪ Commenced work to ret
Slide 18: Red Lake Planned Drilling
RED LAKE PLANNED DRILLING For personal use only Cochenour Shaft Reid Shaft #3 Shaft Surface UPPER RED CAMPBELL LAKE -1000mbs High Speed Tram (HST) -2000mbs ▪ Drilling has commenced with 5 rigs focused on Cochenour and Red Lake COCHENOUR ▪ FY21 resource definition and discovery budget of A$20 – 25 mi
Slide 19: Summary
SUMMARY For personal use only Sector leading Portfolio enhanced Material improvement financials supporting through Red Lake in mineral inventory execution of strategy acquisition at high margin assets 19
Slide 20: For personal use only
For personal use only Evolution MIINTINE
Slide 21: FY20 Guidance: Production, Costs & Capital
FY20 GUIDANCE: PRODUCTION, COSTS & CAPITAL For personal use only All-in Sustaining Gold production1 Major Capital FY20 Guidance Sustaining Cost2 Capital (oz) (A$/oz) (A$M) (A$M) Cowal 255,000 – 265,000 930 – 980 25 – 35 130 – 155 Mungari 115,000 – 125,000 1,230 – 1,280 10 – 15 10 – 15 Mt Carlton3 70
Slide 22: FY20 Guidance - Capital
FY20 GUIDANCE - CAPITAL For personal use only Major project capital items ◼ Cowal: Sustaining ◼ Stage H cut-back A$75 – 85M Major Capital FY20 Guidance Capital ◼ IWL A$35 – 40M (A$M) (A$M) ◼ Process plant projects & Other A$ 5 – 10M ◼ Underground Design and PFS Study A$15 – 20M Cowal 25 – 35 130 – 1
Slide 23: Evolution 2019 Gold Mineral Resources
EVOLUTION 2019 GOLD MINERAL RESOURCES For personal use only Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold CP3 Tonnes Tonnes Tonnes Tonnes Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (
Slide 24: Evolution 2019 Gold Ore Reserves
EVOLUTION 2019 GOLD ORE RESERVES For personal use only Gold Proved Probable Total Reserve Gold Grade Gold Metal Gold Grade Gold Metal Tonnes Gold Grade Gold Metal CP3 Project Type Cut-Off Tonnes (Mt) Tonnes (Mt) (g/t) (koz) (g/t) (koz) (Mt) (g/t) (koz) Cowal Open pit 0.45 - - - 89.43 0.96 2,773 89.4
Slide 25: Evolution 2019 Copper Reserves & Resources
EVOLUTION 2019 COPPER RESERVES & RESOURCES Group Copper Mineral Resource Statement For personal use only Copper Measured Indicated Inferred Total Resource Copper Copper Copper Copper Cut- Tonnes Copper Tonnes Copper Tonnes Copper Tonnes Copper CP3 Project Type Metal Metal Metal Metal Off (Mt) Grade
Slide 26: H1 FY20 EBITDA Margins
H1 FY20 EBITDA MARGINS For personal use only Group EBITDA Margin (%) ◼ High margin at long life assets of Cowal (59%) and Ernest Henry (69%) FY20 H1 ◼ Continued improvement at Mungari and Cracow 49% FY19 48% ◼ Margin at Mt Carlton and Mt Rawdon expected to improve in second half (1) FY18 53% ◼ Group
Slide 27: H1 FY20 Mine Operating Costs – Key Drivers
H1 FY20 MINE OPERATING COSTS – KEY DRIVERS For personal use only ◼ Operating costs being well controlled with heavy focus on top 7 cost categories ◼ Labour cost and royalties account for net change in operating costs ◼ Employee labour rates moved within the 3½% - 4½% guided range ◼ Other cost change
Slide 28: Mungari
MUNGARI For personal use only ▪ Strategic footprint in world-class gold district ▪ 10-year base load production platform ▪ Plant throughput increased to 2.0Mtpa ▪ Studies ongoing to optimise the Life of Mine plan to maximise the 2.5Moz Mineral Resource base ▪ 19.9% interest in Tribune Resources ▪ Co
Slide 29: Queensland Operations
QUEENSLAND OPERATIONS For personal use only FY20 GUIDANCE MT CARLTON CRACOW MT RAWDON Gold production 70 – 75koz 82.5 – 87.5koz 80 – 85koz A$1,150 – A$1,200 – A$1,490 – AISC A$1,225/oz A$1,250/oz A$1,540/oz QUEENSLAND EXPLORATION Drummond Exploration Project (Evolution earning 80%) ▪ Early-stage epi
Slide 30: Transformation and Effectiveness Pipeline
TRANSFORMATION AND EFFECTIVENESS PIPELINE For personal use only Production Optimiser | Data Lake | Float Tails Leach | HIG Mill | Tele-remote drilling | OLGA | Geo - Seismic data link | Visual Performance Centres – Operating Collaboration Hub | Titan (excavator load monitoring) | Chrysos- Gamma acti
Slide 31: M&A Strategy
M&A STRATEGY Improve portfolio quality For personal use only ▪ The rules are simple: ▪ Improve the quality of the portfolio ▪ Logical ▪ Value accretive ▪ Opportunistic ▪ But delivery is not simple. It requires the ability to: ▪ Recognise the opportunity ▪ Execute the transaction ▪ Integrate acquired
Slide 32: For personal use only
For personal use only Evolution MIINTINE