Slide 1: 2020 Full Year Financial Results
2020 FULL YEAR FINANCIAL RESULTS 13 AUGUST 2020 JAKE KLEIN – EXECUTIVE CHAIRMAN LAWRIE CONWAY – FINANCE DIRECTOR AND CFO
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: Production Target & Forecast Financials
PRODUCTION TARGET & FORECAST FINANCIALS Cautionary statement concerning the proportion of Exploration Targets1 Of Evolution’s Production Outlook, 1.8% is comprised of Exploration Targets. The potential quantity and grade of this exploration target is conceptual in nature and there has been insuffici
Slide 4: Sustainability
SUSTAINABILITY ◼ A healthier and safer workplace for our people and the environment ◼ Strong audit assurance results with independent validation ◼ Site safety interactions increased by 67% ◼ Transparent and proactive reporting culture ◼ Weekly incident review and learning discussions ◼ Inclusion in
Slide 5: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY A portfolio of 6 to 8 assets generating superior returns with 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 exploration and devel
Slide 6: Highlights
HIGHLIGHTS Strategy execution 3 Year Outlook: Red Lake 11Moz delivering sector Increasing production Mineral Resource2 leading financials and lower AISC ▪ Potential to optimise a large ▪ Record profit ▪ FY23 production > 800koz long-life mining operation ▪ Record cash flow ▪ Low cost FY23 AISC of ▪
Slide 7: Financial Highlights
Financials Units FY20 FY19 Change FINANCIAL HIGHLIGHTS Statutory Profit after tax A$M 301.6 218.2 38% Underlying Profit after tax A$M 405.4 218.2 86% EBITDA A$M 1,029.4 730.3 41% Operating Mine Cash Flow A$M 1,121.4 771.5 45% Net Mine Cash Flow A$M 736.0 497.8 48% Group Cash Flow1 A$M 541.8 291.6 86
Slide 8: Record Underlying Net Profit
RECORD UNDERLYING NET PROFIT ◼ Record underlying profit up 86% to A$405.4M ◼ Revenue up 29% and royalties up 20% due to higher metal prices and increased metal sold ◼ Operating costs well controlled with an increase of only 1.2%1 ◼ Inventory movements were due to planned stockpile drawdowns at Cowal
Slide 9: High EBITDA Margins and Mine Cash Flow
HIGH EBITDA MARGINS AND MINE CASH FLOW EBITDA Margin ◼ Group EBITDA margin up 10% to 53% FY19 FY20 ◼ Good first quarter at Red Lake at 37% ◼ High margin at long life assets ◼ Cowal (60%) 66%69% 61%45% ◼ Ernest Henry (69%) 53%60% 37% 48%53% 35%52% 32%41% ◼ Improvements delivered at Mungari and Mt Raw
Slide 10: Group Cash Flow
GROUP CASH FLOW 1,480 Group Cash Flow (A$/oz) ◼ Group is sustaining high cash generation ◼ Record group cash flow of A$542M 109 986 ◼ Excellent margins on per ounce basis 385 106 726 ◼ Net mine cash at A$986/oz 52 102 ◼ Group cash flow at A$726/oz ◼ Increase of 88% vs 29% higher gold price Operating
Slide 11: Dividends
Dividends DIVIDENDS 0.16 0.14 (% of Revenue vs cents per share declared) 14% 20 18 16 0.12 11% 14 0.1 8% ◼ Final dividend: 9 12 0.08 6% 10 ◼ Fully franked at 9 cents (A$153M) 0.06 8 6 6 0.04 3% 3% 4 ◼ Payment date: 25 September 2020 0.02 3 7 4 1 2 3.5 3.5 2 1 1 2 ◼ Record date: 25 August 2020 0 FY15
Slide 12: FY21 Guidance: Production and Cost
FY21 GUIDANCE: PRODUCTION AND COST PRODUCTION ◼ Cowal processing low grade stockpiles to end of FY21 FY21 Gold Production AISC (A$/oz) ◼ Full year at Red Lake offsets removal of Cracow Guidance ◼ Mungari slightly lower as open pit grade declines partially offset by sustained higher throughput (2Mtpa
Slide 13: FY21 Guidance: Capital
FY21 GUIDANCE: CAPITAL SUSTAINING CAPITAL Sustaining ◼ Main change is investment in Red Lake transformation Major Capital FY21 Guidance Capital ◼ Replacement mobile fleet (A$10-15M) (A$M) ◼ Shaft decommissioning (A$6-8M) (A$M) ◼ Resource definition (A$10-15M) Cowal 12.5 –17.5 170.0 – 180.0 ◼ Major m
Slide 14: Production and Cost Outlook
PRODUCTION AND COST OUTLOOK Production (koz) ◼ Production planned to increase to >800koz over the next 3 years ◼ Commencement of Cowal underground from late FY22 is expected to provide substantial uplift in production ◼ Red Lake transformation on track to achieve >200koz/yr in FY23 790-850 ◼ Mungari
Slide 15: Capital Outlook
CAPITAL OUTLOOK Sustaining Capital (A$M) ◼ No material increases in sustaining capital investment expected ◼ Main investment areas are equipment replacement; tailings management; process plant upgrades and Resource Definition programs 112.5-137.5 110-135 95-125 ◼ Main major capital investment for ex
Slide 16: Red Lake Mineral Resource
RED LAKE MINERAL RESOURCE Key Highlights ◼ Initial JORC Code 2012 Mineral Resource estimate of 48.1Mt grading 7.1g/t for 11.0 million ounces ◼ Including Upper Campbell estimate of 12.9Mt grading 10.5g/t for 4.3 million ounces ◼ Potential to optimise a large, long life mining operation ◼ Presents sig
Slide 17: 11 Million Ounce Resource
11 MILLION OUNCE RESOURCE HG Young Upper Campbell 427koz 4,339koz grading 5.5g/t Au grading 10.5g/t Au Upper Red Lake 1,192koz grading 6.1g/t Au Lower Campbe 1,116koz ; grading 6.9g/t Au Lower Red Lake 2,398koz grading 6.1g/t Au ea 4 © Cochenour 4 1,502koz “ grading 4.9g/t Au
Slide 18: Red Lake History
RED LAKE HISTORY 1949 1991 1996 2002 2006 2012 2020 Mining commences McEwen Four year labour Discovery of the Dickenson and Cochenour haulage Evolution Mining in the region, restructures strike begins Deep Sulphide Campbell mine drift completed, now acquires the Red delivering 29Moz companies to for
Slide 19: Red Lake Operations – Orebodies Projected to Surface
RED LAKE OPERATIONS – O R E B O D I E S P R O J E C T E D T O S U R FAC E 9,510 Level 19
Slide 20: Upper Campbell – UG Face Sampling for Ore Control
UPPER CAMPBELL – U G FAC E S AM P L I N G ( ≥ 3 G P T ) F O R O R E C O N T R O L Upper Red Lake Upper Campbell Existing workings (treated as voids in the model) 100 m 9,510 Level (150m below surface) 20
Slide 21: Upper Campbell – Historic Drilling Results
UPPER CAMPBELL – H I S TO R I C D R I L L I N G R E S U LT S ( ≥ 3 G P T ) Upper Red Lake Upper Campbell 100 m 9,510 Level (150m below surface) 21
Slide 22: Upper Campbell – Evolution Block Model
UPPER CAMPBELL – E V O L U T I O N B L O C K M O D E L ( ≥ 3 G P T ) Upper Red Lake Upper Campbell 100 m 9,510 Level (150m below surface) 22
Slide 23: Upper Campbell – Model Classification and MSO Outlines
UPPER CAMPBELL – M O D E L C L AS S I F I C AT I O N AN D M S O O U T L I N E S Upper Red Lake Upper Campbell 100 m 9,510 Level (150m below surface) 23
Slide 24: Summary
SUMMARY Strategy execution 3 Year Outlook: 11Moz Red Lake delivering sector Increasing production Mineral Resource leading financials and lower AISC 24
Slide 25: Appendix
APPENDIX Evolution MINING
Slide 26: 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 environmentally and socially responsible manner Be an employer of choice Demonstrate robust risk Contribute positively to lo
Slide 27: FY21 Guidance: Production, Costs & Capital
FY21 GUIDANCE: PRODUCTION, COSTS & CAPITAL All-in Sustaining Sustaining Gold Production Major Capital FY21 Guidance Cost Capital (oz) (A$/oz) (A$M) (A$M) Cowal 205,000 – 230,000 990 – 1,040 12.5 –17.5 170.0 – 180.0 Red Lake 125,000 – 135,000 2,050 – 2,100 55.0 – 60.0 30.0 – 40.0 Mungari 120,000 – 13
Slide 28: FY21 Guidance: Discovery and Non-Cash
FY21 GUIDANCE: DISCOVERY AND NON-CASH Depreciation & Resource Discovery FY21 Guidance Amortisation(1) Definition(2) (A$M) (A$/oz) (A$M) Cowal 320 – 370 3–5 35 – 45 Red Lake 400 – 450 10 – 15 15 – 20 Mungari 300 – 350 1–2 8 – 13 Mt Rawdon 550 – 600 1–2 1–2 Mt Carlton 975 – 1,025 0–1 3 Ernest Henry 1,
Slide 29: 3 Year Outlook: FY21 – FY23
3 YEAR OUTLOOK: FY21 – FY23 3 Year Outlook FY21 FY22 FY23 Production (oz) 670,000 – 730,000 700,000 – 770,000 790,000 – 850,000 AISC (A$/oz) 1,240 – 1,300 1,220 – 1,280 1,125 – 1,185 Sustaining Capex ($M) 112.5 – 137.5 110.0 – 135.0 95.0 – 125.0 Major Capital ($M) 260.0 – 290.0 250.0 – 280.0 220.0 –
Slide 30: Evolution Gold Mineral Resources Dec 2019 Updated
EVOLUTION GOLD MINERAL RESOURCES DEC 2019 UPDATED ( W I T H 3 1 D E C E M B E R 2 0 1 9 R E D L AK E AN D 3 0 AP R I L 2 0 2 0 C O WAL M I N E R AL R E S O U R C E S ) Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Competent Tonnes Tonnes Tonnes Tonnes Project Typ
Slide 31: Evolution Gold Ore Reserves Dec 2019 Updated
EVOLUTION GOLD ORE RESERVES DEC 2019 UPDATED (WITH 30 APRIL 2020 COWAL ORE RESERVES AND EXCLUDING RED LAKE ORE RESERVES) Gold Proved Probable Total Reserve Gold Gold Gold Competent Tonnes Gold Tonnes Gold Grade Tonnes Gold Person Project Type Cut-Off Metal Metal Metal (Mt) Grade (g/t) (Mt) (g/t) (Mt
Slide 32: Evolution Copper MROR Dec 2019 Updated
EVOLUTION COPPER MROR DEC 2019 UPDATED Group Copper Mineral Resource Statement Copper Measured Indicated Inferred Total Resource Copper Copper Copper Copper Competent Tonnes Copper Tonnes Copper Tonnes Copper Tonnes Copper Person Project Type Cut-Off Metal Metal Metal Metal (Mt) Grade (%) (Mt) Grade
Slide 33: Evolution
Evolution MIINTINE