Slide 1: Delivering on Strategy
2018 DIGGERS AND DEALERS DELIVERING ON STRATEGY JAKE KLEIN – EXECUTIVE CHAIRMAN 7 AUGUST 2018
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: Snapshot FY18 Performance
SNAPSHOT FY18 PERFORMANCE ASX code EVN Gold production 801koz Market capitalisation(1) A$4.8B A$797/oz AISC (4) Average daily turnover(2) A$33M US$618/oz Net debt(3) A$72M Operating cash flow A$812M 250,000oz at Net mine cash flow A$540M Forward sales(3) A$1,711/oz Net debt reduction A$326M Payout o
Slide 4: Top ASX Gold Companies
TOP 10 ASX GOLD COMPANIES 16.5 Market Capitalisation (A$B)1 Healthy mid-tier sector 4.8 4.4 2.6 2.5 2.2 1.6 1.0 0.6 0.6 Newcrest Evolution Northern Star Oceana Regis St Barbara Saracen Resolute Gold Road Westgold 1. Based on closing prices on 31 July 2018. Anglogold Ashanti and Kirkland Lake omitted
Slide 5: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY Build a reputation for reliability and transparency Reduce All-in sustaining costs Increase free cash flow per share Increase returns via dividends Extend reserve life 5
Slide 6: Portfolio Management FY16 – FY18
PORTFOLIO MANAGEMENT Group AISC Impact April 2015 Mungari acquisition A$30/oz May 2015 Cowal acquisition A$100/oz August 2016 Ernest Henry economic interest acquisition A$100/oz August 2016 Pajingo divestment A$15/oz September 2017 Edna May divestment A$50/oz FY16 – FY18 Production: 2.45Mo
Slide 7: Investing in the Future
INVESTING IN THE FUTURE Reserve Life (1) (Years) Cowal Stage H cutback Cowal Float Tails Leach project Cowal plant expansion (subject to Mod 14 and Board approval) 8.8 9.6 8.3 7.3 Mungari White Foil cutback and regional open 5.1 pits Mt Carlton mine life extensions – Stage 4 FY15 FY16 FY17
Slide 8: Quality Asset Portfolio
QUALITY ASSET PORTFOLIO $2,500 Ernest Henry (Gold price of A$1,650/oz less FY18 AISC)1 Current indicative AISC margin (A$/oz) $2,000 Margin $1,500 Group average AISC margin A$850/oz Mt >9 year reserve life Carlton $1,000 Mt Rawdon Cowal $500 Cracow Mungari Mine Life $0 - 2 yrs 4 yrs 6 yrs 8 yrs 10 y
Slide 9: Safety Culture
SAFETY CULTURE Total Recordable Injury Frequency 24.4 (TRIF) Driving a culture where our people are doing 19.9 the right because they want to – not because they have to 12.0 9.6 9.7 8.0 5.5 ▪ Consistent improvement in Group total recordable injury frequency FY12 FY13 FY14 FY15 FY16 FY17 FY18 Act Lik
Slide 10: Success at Cowal
SUCCESS AT COWAL Gold production 759koz since acquisition1 A$431M net mine cash flow since acquisition Average return on invested capital (ROIC) of 23% p.a. Mine life extended by 8 years to 2032 Mod 14 application to increase plant throughput from 7.5Mtpa to 9.8Mtpa Float Tails Leach pro
Slide 11: Cowal Exploration
Mineral Resources 6.1Moz1 COWAL EXPLORATION Ore Reserves 3.0Moz1 FY19 discovery budget increased to A$15 – 20 million ▪ Includes development of GRE46 exploration decline Galway-Regal-E46 (GRE46) ▪ 603koz maiden underground Mineral Resource1 ▪ Recent step out drilling confirmed potential for addition
Slide 12: Ernest Henry
ERNEST HENRY Ernest Henry ore body looking west Since acquisition1: ▪ Gold production – 155koz ▪ Copper production – 34kt 1200 RL ▪ Net mine cash flow – A$301 million ▪ Average ROIC – 21% p.a. Drilling target Cumulative net mine cash flow (A$M) 301 Opportunity 243 189 Extend mine life below 1200mRL
Slide 13: Mt Carlton
MT CARLTON CASH CAPTIAL MINE FLOW RETURNS LIFE A$101M per year 24% p.a. 2025 average net mine average ROIC Current Life of Mine cash flow over the past Initial capital of Underground / Stage three years A$263M repaid by 4 pit Feasibility Study December 2016 progressing well – decision expected Decem
Slide 14: Mungari
MUNGARI 10 year mine life with material upside1 Strategic footprint in a world-class Kalgoorlie region 1.6Mtpa plant consistently performing above nameplate Cash flow to increase with White Foil cutback complete Recent Castle Hill acquisition adds >2 years to mine life FY19 exploration
Slide 15: Mt Rawdon and Cracow
MT RAWDON CRACOW FY18 net mine cash flow: A$50 million FY18 net mine cash flow: A$37 million Substantial increase in cash generation post Current Life of Mine to 2023 completion of open pit cutback Strong history of reserve replacement Current Life of Mine to 2025 Recent resource defin
Slide 16: A company shouldn't get addicted to being shiny
“A company shouldn’t get addicted to being shiny, because shiny doesn’t last.” Jeff Bezos, CEO Amazon Global Sector Challenges Australian Sector Challenges ▪ Resource nationalism ▪ Cost pressures ▪ Loss of investor confidence ▪ Skills shortages ▪ Lack of discoveries 16
Slide 17: A Business That Prospers Through the Cycle
A BUSINESS THAT PROSPERS THROUGH THE CYCLE High quality, low cost, long life assets Discovery success Financial discipline Strong vision, values and sense of purpose Counter-cyclical investment 17
Slide 18: Evolution Mining
Evolution MINING
Slide 19: Evolution 2017 Gold Ore Reserves
EVOLUTION 2017 GOLD ORE RESERVES EVOLUTION 2017 GOLD ORE RESERVES Group Gold Ore Reserves – July 2018 Gold Proved Probable Total Reserve Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz)
Slide 20: Evolution 2017 Gold Mineral Resources
EVOLUTION 2017 GOLD MINERAL RESOURCES EVOLUTION 2017 GOLD ORE RESERVES Group Gold Mineral Resources – July 2018 Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes CP3 Project Type Cut-Off Grade Metal Grade Metal Grade Metal Grade Metal
Slide 21: Evolution 2017 Copper Reserves & Resources
EVOLUTION 2017 COPPER RESERVES & RESOURCES EVOLUTION 2017 GOLD ORE RESERVES Group Copper Mineral Resources Statement Copper Measured Indicated Inferred Total Resource Copper Copper Copper Copper Copper Copper Copper Copper Cut- Tonnes Tonnes Tonnes Tonnes CP3 Project Type Grade Metal Grade Metal Gra
Slide 22: Diversified Mid-Tier Gold Miner
DIVERSIFIED MID-TIER GOLD MINER STABLE MINING JURISDICTION 2 3 4 5 6 Cowal Mungari Mt Mt Cracow Ernest Group (100%) (100%) Carlton Rawdon (100%) Henry Total (100%) (100%) (economic interest) Gold Reserves (Moz)1 3.05 0.83 0.71 0.67 0.24 0.90 7.22 6 3 Copper Reserves (kt)1 371 28 165 Gold Resources (