2018 DIGGERS AND DEALERS DELIVERING ON STRATEGY JA K E K L E I N – E X E C U T I V E C H A I R M A N 7 A U G U S T 2 0 1 8
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”, “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 Company’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, market, 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 forward 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 foreseeable 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. 2
FY18 SNAPSHOT PERFORMANCE ASX code EVN Gold production 801koz Market capitalisation (1) A$4.8B A$797/oz AISC (4) US$618/oz Average daily turnover (2) A$33M Operating cash flow A$812M Net debt (3) A$72M Net mine cash flow A$540M 250,000oz at Forward sales (3) A$1,711/oz Net debt reduction A$326M Payout of 50% of Cash dividends paid A$110M Dividend policy after tax earnings Group AISC Van Eck 13.7% US$1,259 Major shareholders La Mancha 9.6% A$1,083 A$1,228 A$1,036 A$1,014 Mineral Resources 14.3Moz A$907 US$995 A$797 Ore Reserves 7.2Moz US$867 (1) Based on share price of A$2.88 per share on 31 July 2018 US$739 (2) Average daily share turnover for one month through to 31 July 2018 US$684 (3) As at 30 June 2018 US$618 (4) Includes C1 plus royalties, sustaining capital, corporate and admin expense USD costs calculated using the average AUD:USD exchange rate for FY18 of 0.7752 FY13 FY14 FY15 FY16 FY17 FY18 (5) This information is extracted from the reports entitled “Annual Mineral Resources and Ore Reserves Statement” released on 19 April 2018 and “Restructure of Ownership of Castle Hill Gold Deposit” 3 released to ASX on 18 July 2018 and both available and available to view at www.evolutionmining.com.au.
TOP 10 ASX GOLD COMPANIES Market Capitalisation (A$B) 1 16.5 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 4 1. Based on closing prices on 31 July 2018. Anglogold Ashanti and Kirkland Lake omitted due to low ASX average daily turnover
CLEAR CL EAR AND AND CONS ONSISTENT ENT STR TRATE TEGY Build a reputa tati tion on f for or reliability ty a and trans anspar arency ncy Red educe A e All-in s in sus ustaining aining co costs Incr ncreas ase free cas cash h flo low p per s shar hare Incr ncreas ase retur urns ns v via d ia div ivid idend nds Exten end res eser erve l e life e 5
PORTFOLIO MANAGEMENT Group AISC Impact A$30/oz April 2015 Mungari acquisition A$100/oz May 2015 Cowal acquisition A$100/oz August 2016 Ernest Henry economic interest acquisition A$15/oz August 2016 Pajingo divestment A$50/oz September 2017 Edna May divestment Production: 2.45Moz FY16 – FY18 Net mine cash flow: A$1,430M three year Debt repayments: A$687M performance Cash dividends paid: A$193M Cash balance increase: A$266M 6
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) 9.6 8.8 8.3 7.3 Mungari White Foil cutback and regional open 5.1 pits Mt Carlton mine life extensions – Stage 4 FY15 FY16 FY17 FY18 FY19 and/or underground (subject to Board approval) Mt Rawdon cutback FY19 discovery investment Cracow high intensity grinding A$40 – A$55 million (1) Reserve life calculated by dividing 31 December Ore Reserves by the relevant year’s annual financial year production. FY19 reserve life uses midpoint of production guidance 7
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 rgin Group a Gr p aver erage ge Marg AISC margin AISC m $1,500 A$85 A$ 850/ 0/oz oz >9 yea >9 y ear r res eser erve l life Mt Carlton $1,000 Mt Cowal Rawdon $500 Mungari Cracow Mine ine L Lif ife $0 - 2 yrs 4 yrs 6 yrs 8 yrs 10 yrs 12 yrs 14 yrs Indicative reserve life based on reserve ounces divided by FY18 production Source: Data sourced from Company reported figures and guidance where available 1. This information is extracted from the reports entitled “Annual Mineral Resources and Ore Reserve Statement” released by Evolution to ASX on 19 April 2018 and is available to view 8 on www.evolutionmining.com.au.
SAFETY CULTURE Total Recordable Injury Frequency (TRIF) 24.4 Driving a culture where our people are doing 19.9 the right because they want to – not because 12.0 they have to 9.7 9.6 8.0 5.5 Consistent improvement in Group total recordable injury frequency FY12 FY13 FY14 FY15 FY16 FY17 FY18 Act Like an Owner Program Inspired by a sense of ownership to challenge the status quo and deliver operational improvements across our business Evolution’s Mines Rescue Group who participated in the NSW Mines Rescue Challenge 9
SUCCESS AT COWAL Gold production 759koz since acquisition 1 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 project to increase recoveries by 4 – 6% (completion December 2018 quarter) Exploration success creating exciting organic growth pipeline Challenge Increase production to a sustainable 300,000 ounces p.a. 10 1. Acquisition completed in July 2015
Mineral Resources 6.1Moz 1 COWAL EXPLORATION Ore Reserves 3.0Moz 1 FY19 discovery budget increased to A$15 – 20 million Includes development of GRE46 exploration decline Galway-Regal-E46 (GRE46) 603koz maiden underground Mineral Resource 1 Recent step out drilling confirmed potential for additional underground resources E41 West Drilling confirmed down dip continuation of a high grade structure East Giral 7km long anomaly oulined through aircore drilling Long projection of the GRE46 structure looking west showing the drill results received during the June 2018 quarter 2 1. This information is extracted from ASX release entitled “Annual Mineral Resources and Ore Reserves Statement” released on 19 April 2018 and is available on www.evolutionmining.com.au. See the appendix of this slide deck for further details 2. This information is extracted from ASX release entitled “June 2018 Quarterly Report” released on 19 July 2018 and is available on www.evolutionmining.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information in the original market announcement Reported intervals are down hole widths as true widths are not currently known 11
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