EVOLUTION MINING LIMITED — Regulatory Filings 2017

Aug 16, 2017

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2017 Full Year Financial Results

17 August 2017 Jake Klein – Executive Chairman Lawrie Conway – Finance Director and CFO

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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.

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.

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Continued deliver y

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Record profit

Very strong cash generation

Increasing fully franked dividends A global leader in low-cost production

Investing in the future

Six consecutive years of meeting production and cost guidance

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Safet y

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
A continuous improvement culture driving positive initiatives Total Recordable Injury Frequency Rate
to keep our people safe 24.4 (TRIFR)
 FY17 focus on assurance reviews of critical control plans 19.9

Significant reduction in vehicle incidents achieved
12.0
 NSW Mining HSEC award winner for Project Arrive Alive 9.6 9.7 8.0

Queensland Mining Industry highly commended award for
Evolution’s Health and Wellbeing program
FY12 FY13 FY14 FY15 FY16 FY17
Lost Time Injury Frequency Rate
(LTIFR)
5.3
3.7
2.1
1.8
1.0
0.4
FY12 FY13 FY14 FY15 FY16 FY17
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4

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Hi hli hts g g

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FY17 financial highlights	Units	FY17	FY16	Change
StatutoryProfit after tax	A$M	217.6	(24.3)	-
UnderlyingProfit after tax1	A$M	206.6	134.5	54%
EBITDA	A$M	713.9	607.6	17%
OperatingCash flow	A$M	706.5	628.4	12%
GroupCash flow	A$M	382.0	365.0	5%
EBITDA Margin2	%	49%	46%	7%
AIC Margin	A$/oz	568	463	23%
Gearing	%	15.9%	15.1%	5%
Final dividend3	cps	3	2	50%

1. FY16 underlying profit after tax restated. Refer to “Underlying net profit reconciliation” on slide 20 for full details 2. FY17 excludes Pajingo 3. FY17 fully franked; FY16 unfranked

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O erational erformance and asset ualit p p q y

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Group gold production (koz)
803 844
393 427 438
FY13 FY14 FY15 FY16 FY17
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 Record production up 5%

 Consistent year on year delivery to guidance

 Active portfolio management to improve quality

 FY13: Development of low cost Mt Carlton operation

 FY16: Acquisition of Cowal, Mungari and Phoenix Gold

 FY17: Investment in Ernest Henry and disposal of Pajingo

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Group AISC (A$/oz)
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1,228
1,083 1,036 1,014
907
FY13 FY14 FY15 FY16 FY17
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 Leader in low cost production at A$907/oz (US$684/oz)

 Captured benefits of favourable market in recent years

 Reduction since FY13 – 26% in AUD and 46% in USD

Operating cash flow (A$M)

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707
628
306
168 245
FY13 FY14 FY15 FY16 FY17
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 Operating cash flow up 12% (only 3% higher gold price)

 Portfolio approach generating record results

• Introduction of long life, low cost assets

• No dependence any single asset to drive cash flow

 Exposure to copper revenue in Ernest Henry investment

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Im roved cost rofile p p

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• Changes to the portfolio in past couple of years has delivered favorable reductions in costs

• Realising the benefit of introducing additional copper by-product into portfolio

• Leverage of combined group volumes delivering lower input costs (e.g. grinding media, chemicals, explosives)

• Starting to experience upwards movements in some cost areas

• Current energy market pushing up Group power cost by 20-30%

• Increasing Group All in Sustaining Cost by ~A$10-20 per ounce

• Biggest impact is at Cowal where power cost will increase by approximately 80%

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C1 Cash Cost (A$/oz)
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AISC (A$/oz)

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722
590-650
625
FY16 FY17 FY18 guidance
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1,014
907 850-900
FY16 FY17 FY18 guidance
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Grou EBITDA p

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• Record group EBITDA (cash profit) up 17% to A$713.9M

• Sustained performance from existing assets improved EBITDA by 9.3%

• Immediate and significant impact from investment in Ernest Henry with A$99.2M contribution

FY17 EBITDA A$M FY17 EBITDA (A$M)

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99.2
713.9
3.5
35.5 7.3 (48.5)
0.7
37.3 (28.6)
607.6
EBITDA June Gold Volume Gold Price By Product By Product Price Mine Operating Exploration, Ernest Henry Pajingo EBITDA June
2016 Volume Costs Corporate & (Part-year) (Sold Sep 2016) 2017
Other
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2016 continuing operations

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EBITDA mar ins g

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 Longest life assets generating highest margins

Group EBITDA Margin

 Benefits of diverse portfolio – no dependence on any single asset

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49%
Site EBITDA Margin 46%
40%
FY16
64%
59% 59% 61% 58% 55% FY17 [(1)] 33%
48% 49% 47% 49%
39%
18%
11%
Cowal Ernest Henry Mt Carlton Mt Rawdon Mungari Cracow Edna May FY14 FY15 FY16 FY17Group [(1)]
FY17 Excludes Pajingo
 Group margin up
10+ years [(2) ] 6-8 years [(2)] 3-6 years [(2)] 50% from FY14
EBITDA Contribution EBITDA Contribution EBITDA Contribution
 Delivered by mix of
3-6 years cost reductions; gold
10+
years 24% price and change in
47%
6-8 asset portfolio
years (1) FY17 excludes Pajingo
29% (2) Indicative reserve life based on FY17
production level
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Discover and resource definition y

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 Investment up 19% to A$58.4M

 Discovery focus areas:

• South Gawler – Entered into earn-in JV agreement with Terramin Australia providing pathway to earn up to 80% interest in project

• Mungari Regional – Drilling at Emu and Burgundy extended high-grade mineralisation outside of existing resources

• Tennant Creek – Framework drilling commenced at Edna Beryl

 Successful resource definition program:

• Cowal E42 Stage H cutback drilling delivered an additional 679koz increase in ore reserves in FY17 at conversion cost of <A$15/oz

• Mine life extension at Cracow and underground reserve at Mt Carlton

Discovery & Resource Definition Expenditure (A$M)

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29.0
27.8
25.0
29.4
21.3
16.5
FY16 FY17 FY18 Guidance Mid-
point
Resource Definition Discovery
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8.3
7.0
5.1
4.2
3.1
2.2
Ore Reserves (Moz) Reserve Life ( years) Reserves per Share (oz/1000)
Dec-14 Dec-16
10
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Grou cash flow p

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• Record cash flow from operations underpinning Group strategy

• Sustaining and major capital in line with guidance

• Surplus cash used to accelerate debt reduction

• Higher dividend payout rate approved

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Operating Cash Flow (A$M) Cash after investing (A$M) Net Cash (A$M)
48% of revenue 26% of revenue 16% of revenue
Interest
A$23M
Discovery
Corporate A$29M
A$28M Dividends
Paid [1]
A$52M Free
Ops Cash
Operating Surplus
Cash A$229M
Costs A$382M
A$773M A$707M 54% 60%
48% Capital Mandatory
A$245M Debt
A$100M
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1. Dividends paid stated on a post-DRP basis
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Balance sheet in good shape

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• Significant improvement in liquidity

• Cash and undrawn debt of A$337.4M

• Repayment of A$325.0M of debt during the year

• Syndicated debt at 30 June 2017 of A$435.0M

• Term Facility B: A$40.0M

• Term Facility D: A$395.0M

• No debt payment obligations until April 2018

• Gearing at a manageable level of 15.9%

• Adequate hedging in place out to June 2020

• Total of 458,495oz at A$1,645/oz average

• FY18 hedge 208,495oz at A$1,563/oz average

• Restricted tax loss asset of A$20.0M available for use to offset future profits

Debt Repayments and Commitments (A$M)

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322 325
155
120
80
50 30
FY16 FY17 FY18 FY19 FY20 FY21 FY22
Repayments Commitments
Gearing Gearing and Leverage Ratio Net Debt to
EBITDA
60% 1.56 2.0
50% 1.5
40% 0.56 1.0
0.45
30% 0.5
20% 0.0
32.0%
10% 15.1% 15.9% -0.5
0% -1.0
Jul-15 Jun-16 Jun-17
Gearing Leverage Ratio (Net Debt to EBITDA)
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Dividends

• Dividend policy changed to payout of 50% of earnings

• Final franked dividend up 50% to 3 cents per share

• Commencement of franked dividends

• Total FY17 dividend of A$84.1M (Pre-DRP)

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Dividends Declared A$M (Pre-DRP)
50
29
14 34
7
15
7 7 7
FY13 FY14 FY15 FY16 FY17
Interim Final
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Dividends Declared Cents per Share

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5
3
2 2
1
FY13 FY14 FY15 FY16 FY17
(Final Only)
Cumulative Dividends Declared A$M (Pre-DRP)
171
87
43
7 21
FY13 FY14 FY15 FY16 FY17
FY17 final dividend to be paid on 29 September 2017
13
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FY18 uidance g

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FY18 Guidance	Gold production	C1 cash costs1	All-in sustaining cost1	Sustaining Capital	Major Capital
	(oz)	(A$/oz)	(A$/oz)	(A$M)	(A$M)
Cowal	235,000 - 245,000	660 – 720	950 – 1,000	52.5 – 57.5	85 – 100
Mungari	120,000 - 130,000	860 – 910	990 – 1,050	10 – 15	32.5 – 40
Mt Carlton	100,000 - 110,000	420 – 470	680 – 730	5 – 10	17.5 – 22.5
Mt Rawdon	105,000 - 115,000	670 – 720	850 – 900	5 – 10	20 – 22.5
Edna May	90,000 - 100,000	1,100 – 1,150	1,250 – 1,300	2.5 – 5	10 – 15
Cracow	85,000 - 90,000	810 – 860	1,150 – 1,200	10 – 12.5	10 – 15
Ernest Henry	85,000 - 90,000	(500) – (300)	(200) – (150)	10 – 15	0
Corporate			32 – 37
Group	820,000 - 880,000	590 – 650	850 – 900	95 – 125	175 – 215

1. A copper price assumption of A$7,700/t has been used for by-product credits

Results ali n to strate g gy

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RECORD PROFIT QUALITY PORTFOLIO STRONG BALANCE SHEET A$625/oz MINE OPERATING A$707M UNDERLYING PROFIT A$207M C1 DOWN 13% CASH FLOW UP 12% UP 54% A$907/oz A$382M AISC GROUP CASH FLOW STATUTORY PROFIT A$218M DOWN 11% UP 5% UP A$242M 16% A$568/oz GEARING AIC MARGIN UP 23% A$325M DEBT EBITDA A$714M REPAYMENTS UP 17% 844k oz 3 CENTS PRODUCTION UP 5% FINAL DIVIDEND FULLY FRANKED UP 50%

Attributes of a sustainable old business g

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High quality, low cost, long life assets Discovery success Financial discipline

Strong vision, values and sense of purpose Counter-cyclical investment

Building a business that prospers through the cycle

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Appendix

ASX code: EVN

www.evolutionmining.com.au

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FY18 uidance: discover and non-cash items g y

FY18 Guidance	Depreciation & Amortisation1	Fair Value Unwind		Resource Definition2	Discovery
	A$/oz	A$M		A$M	A$M
Cowal	370 – 410	15.0 – 20.0		2.0 – 3.5	2.5 – 4.5
Mungari	530 – 570	17.0 – 22.0		6.0 – 7.0	10.0 – 12.0
Mt Carlton	400 – 440			1.0 – 2.5	0.0 – 1.0
Mt Rawdon	430 – 470			0.0 – 1.0	0.0 – 1.0
Edna May	270 – 310			0.0	0.0
Cracow	320 – 350			4.0 – 6.0	2.5 – 4.5
Ernest Henry	1,300 – 1,360			0.0	0.0
Corporate				0.0	5.0 – 7.0
Group	480 – 520	32.0 – 42.0		13.0 – 20.0	20.0 – 30.0

1. Depreciation & Amortisation FY18 guidance includes fair value unwind at Cowal & Mungari and amortisation of Ernest Henry prepayment (10-12%). 2. Resource definition is included in the Sustaining Capital guidance on Slide 14

Statutor rofit reconciliation y p

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• Acquisition & Integration costs of A$5.8M after tax relate to Ernest Henry and Pajingo transactions

• Non cash deferred tax adjustment amounting to A$20.4M

• Accounting loss on sale of Pajingo of A$3.6M

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Reconciliation of Underlying to Statutory Profit A$M
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20.4 217.6
206.6 1.2
(7.0) (3.6)
Underlying Profit June Acquisition and Loss on Sale of Tax effect of Non-Cash Deferred Statutory Profit June
2017 Integration Costs Pajingo adjustments Tax Adjustment 2017
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Underl in net rofit reconciliation y g p

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Underlying Net Profit After Tax A$M

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108.9 3.5
14.7 206.6
(45.7) 0.6 8.8
36.0
(4.2)
134.5 2.8 (53.4)
Underlying Gold Volume Gold Price By Product By Product Mine D&A Exploration, Other Fair value Tax Underlying
Profit June Volume Price Operating Corporate & Cowal / Profit June
2016 Costs Interest Mungari 2017
2016
A$M
Underlying profit after income tax as presented at 30 June 2016 226.9
Fair value amortisation included in underlying profit (58.2)
Tax effect of adjustments (34.2)
Underlying profit after income tax 2016 134.5
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• As presented in the 30 June 2016 financial statements, underlying profit excluded the fair value adjustments related to the acquisition of Cowal and Mungari. Following the completion of the purchase price allocation the fair value amortisation is included in underlying profit. All changes were non-cash items. For consistency, the 2016 underlying profit has been amended to reflect this treatment. No change to statutory profit was required. Underlying profit is a non-IFRS measure. If the fair value amortisation was excluded in 2017, underlying profit after tax would have been $238.1 million.

Taxation

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• All unrestricted tax losses utilised during the year to June 2017

• Tax liability of A$36.2M at 30 June 2017, payable in December 2017 with tax instalments thereafter

• Restricted tax losses recorded on balance sheet as an asset amount to A$20.4M.

• A$1.5M for Conquest acquired tax losses restricted by an available fraction of 7.8%

• A$16.4M of La Mancha acquired tax losses restricted by an available fraction of 16.5%

• A$2.5M of Phoenix Gold acquired tax losses restricted by an available fraction of 2.7%

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Income Tax Expense Reconciliation (A$M)
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2.3
71.2
36.2
(37.3)
3.9 19.7
(20.4)
Prima facie tax (30% of Tax - timing and Tax losses utilised Tax payable Tax loss asset Deferred tax liability Income tax expense
profit) permanent recognised
1. The available fraction limits the annual rate at which losses may be recouped against taxable income.
21
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