BMO GLOBAL METALS & MINING CONFERENCE FEBRUARY 2020 J A K E K L E I N – E X E C U T I V E C H A I R M A N
FORWARD LOOKING STATEMENT These materials prepared by Evolution Mining Limited (or “the Company”) include forward looking statements. Often, but not al ways, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance” , or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Compan y’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, ma rket, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which f orward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or forese eab le by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Non-IFRS Financial Information The Company results are reported under International Financial Reporting Standards (IFRS). This presentation also includes non-IFRS information including EBITDA and Underlying Profit. The non-IFRS information has not been subject to audit or review by the Company’s external auditor and should be used in addition to IFRS information. All US dollar values in this presentation are calculated using an AUD:USD exchange rate of $0.67 unless stated otherwise 2
EVOLUTION SNAPSHOT Mineral Resources (4) ASX code EVN 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 US$630 – US$660/oz Payout of 50% of Dividend policy FY20 AISC guidance A$940 – A$990/oz free cash flow Evolution Register Dividends (cents per share) Other 10% Asia 5% 6 4 UK & Europe Australia 12% 44% 3 7 2 3.5 3.5 1 1 2 1 1 1 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 H1 Interim (cps) Final (cps) Major shareholders North America Van Eck 13.1% (1) Based on share price of A$4.51 per share on 19 February 2020 29% (2) Average daily share turnover for one month through to19 February 2020 BlackRock 7.0% (3) As at 31 December 2019 Fidelity 5.1% (4) Excludes Red Lake. Further information can be found on our website, www.evolutionmining.com.au or from the ASX release entitled 3 “Annual Mineral Resources and Ore Reserves Statement” on 12 February 2020
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 development projects Open to all quality gold, silver and copper-gold value accretive investments Red Lake Mt Carlton Ernest Henry Cracow Mt Rawdon Cowal Mungari 4
H1 FY20 HIGHLIGHTS 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 at GRE46 with total Cowal ▪ Record cash flow ▪ Turnaround commenced resources now at 8.6Moz ▪ Strong margins ▪ Transaction due to ▪ New reserves at Ernest complete at end of March ▪ Debt free Henry with the addition of 2020 ▪ Dividend doubled three levels below 1200RL 5
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 local, Actively manage climate Protect and enhance our attracting the most talented management and safety regional and national related risks and reputation as a trusted people and foster a safe, leadership sustainability efforts by opportunities including partner and provide diverse and inclusive achieving an outstanding improving energy efficiency community benefits that workplace level of environmental and the responsible endure beyond the life of our stewardship management of water mines Respect the human rights of Advance the outcomes for Be transparent at all levels of Relentlessly drive for all our stakeholders indigenous peoples and Corporate Governance, operational excellence protect their cultural heritage comply with applicable laws through an innovative culture and regulations and operate and inspired people at the highest standards of delivering to plan financial and ethical behaviour OUR VALUES: SAFETY EXCELLENCE ACCOUNTABILITY RESPECT 6
SUSTAINABILITY ◼ 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 Evolution volunteers ◼ Shared Value Projects ◼ 11 projects approved in last 18 months to provide enduring benefits to our communities ◼ Diversity of our future leaders ◼ Two-thirds of 2020 graduate intake are female Group safety performance (TRIF) ◼ Elevating Sustainability across our business 9.3 8.4 ◼ Dedicated position on Leadership Team 8.3 7.8 ◼ Fiona Murfitt, GM Sustainability, commenced in January 2020 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 7
COWAL WATER SECURITY 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 Eastern Saline Bore impact on production has subsided Field ◼ Increases extraction of saline water by Heavy rainfall recorded at Cowal June 2020 operation in early February ◼ Additional bore fields identified to further de- risk supply Wyangala Dam level rising ◼ Increased focus on recycled water with re-use up to 50% Lachlan River rising ◼ Low reliance on surface fresh water ◼ Less than 20% of daily water requirement 8
FY20 HALF-YEAR FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS Record underlying net Record Earnings EBITDA profit after tax per share 23% to A$441.2M 61% to 8.7cps 62% to A$149.1M Mine operating Record Group Net mine cash flow cash flow cash flow 32% to A$511.8M 48% to A$351.8M 119% to A$242.4M Debt free Red Lake transaction Doubled interim dividend to 7.0cps A$300M debt repaid funds fully fully franked in half-year committed
QUALITY PORTFOLIO ◼ Evolution is among the highest margin producers of the top ten gold miners in the Van Eck Gold Miners Index All-in Sustaining Cost (US$/oz) 1,012 995 983 966 938 897 894 880 713 564 Kirkland Evolution Newcrest Gold Fields Agnico Newmont Kinross Northern Anglogold Evolution Eagle Barrick Ashanti Lake Star ASX primary listing Non-ASX primary listing Source: Company filings 1. AISC reported for December 2019 half-year (six months) for ASX listed companies 2. AISC reported for 2019 calendar year (12 months) for non ASX listed companies. Anglogold Ashanti AISC reported for 2019 YTD to September (nine months) 3. US dollar AISC for ASX listed companies calculated using the average Dec 2019 half-year AUD:USD exchange rate of 0.6846 10
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