EVOLUTION MINING LIMITED - Interim / Quarterly Report 2024

Evolution Mining Limited Directors' Report 31 December 2023

APPENDIX 4D EVOLUTION MINING LIMITED ACN 084 669 036 AND CONTROLLED ENTITIES HALF-YEAR REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

Results for Announcement to the Market

Key Information

	31 December	31 December
	2023	2022	Up / (down)	% Increase/
	$'000	$'000	$'000	(decrease)
Revenues from contracts with customers	1,340,184	1,132,819	207,365	18 %
Earnings before Interest, Tax, Depreciation & Amortisation(EBITDA)	486,773	443,098	43,675	10 %
Statutory profit before income tax	139,275	135,441	3,834	3 %
Profit from ordinary activities after income tax attributable to the members	96,869	100,914	(4,045)	(4) %

Dividend Information

	Amount per share Cents Franked amount per share Cents
Interim dividend for the year ended 30 June 2024	2.0 2.0
Dividend to be paid on 5 April 2024
Final dividend for the year ended 30 June 2023 Dividend fully paid on 6 October 2023	2.0 2.0

Net Tangible Assets

	December	December
	2023	2022
	$	$
Net tangible assetsper share	2.20	2.10

Earnings Per Share

	31 December	31 December
	2023	2022
	Cents	Cents
Basic earningsper share	5.23	5.50
Diluted earningsper share	5.21	5.48

Additional Appendix 4D disclosure requirements can be found in the notes to these financial statements and the Directors' Report attached thereto. This report is based on the condensed consolidated financial statements which have been audited by PricewaterhouseCoopers.

Evolution Mining Limited Directors' Report 31 December 2023

Directors' Report

The Directors present their report together with the condensed consolidated financial report of the Evolution Mining Limited Group, consisting of Evolution Mining Limited ("the Company") and the entities it controlled at the end of, or during, the half-year ended 31 December 2023.

Directors

The Directors of the Group during the half-year ended 31 December 2023 and up to the date of this report are set out below. All Directors held their position as a Director throughout the entire period and up to the date of this report unless otherwise stated.

Jacob (Jake) Klein	Executive Chair
Lawrence (Lawrie) Conway	Managing Director and Chief Executive Officer
Jason Attew	Lead Independent Director
Thomas (Tommy) McKeith	Non-Executive Director
James (Jim) Askew	Non-Executive Director
Andrea Hall	Non-Executive Director
Victoria (Vicky) Binns	Non-Executive Director
Peter Smith	Non-Executive Director
Company Secretary
Evan Elstein

Principal activities

The principal activities of the Group during the period were exploration, mine development, mine operations and the sale of gold and goldcopper concentrate in Australia and Canada. There were no significant changes to these activities during the period.

Key highlights

Key highlights for the half-year ended 31 December 2023 include:

The Group returned to cash generation during the half-year, with a 28% increase in underlying EBITDA to $572.6m and an underlying EBITDA margin of 43% (31 December 2022: 39%).
Net mine cash flow increased 136% to $202.9 million (31 December 2022: $86.0 million) with mine cash flow before major capital increasing $146.4 million to $535.3 million and a $71.0 million decrease in major capital expenditure from $301.8 million to $230.8 million.

Portfolio

Evolution announced the acquisition of an 80% interest in the Northparkes copper-gold mine from CMOC Group Limited ("CMOC") in December 2023. The acquisition successfully completed on 15 December 2023. Total cash consideration of up to US$475 million comprised an upfront cash payment of US$400 million and contingent consideration of up to US$75 million. Sumitomo Metal Mining and Sumitomo Corporation (and affiliates) retained their 20% interest in the Northparkes JV.
To fund the transaction, a $525 million institutional placement was completed in December 2023, and a new $200 million 5-year Term Debt Facility was executed during the period. Evolution also announced a share purchase plan for eligible retail shareholders to support integration costs related to the transaction, which closed on 30 January 2024 and raised $32 million.
As part of the transaction, Evolution agreed to enter into an offtake agreement with IXM S.A. (a subsidiary of CMOC) under which IXM will purchase from Evolution concentrates produced from the Northparkes mine equal to Evolution's 80% attributable interest over the life of mine's existing Ore Reserves. Evolution also assumed the obligations of CMOC Limited as guarantor under the Triple Flag Metal Purchase and Sale Agreement under which Evolution will deliver a defined percentage of its attributable gold and silver production from Northparkes to Triple Flag over the life of the mine.
Studies for accretive organic growth at Evolution's operations advanced well, with exploration drill holes at Cowal and Ernest Henry continuing to return exciting intercepts. During the period, Evolution also entered into earn-in agreements over two prospective early-stage exploration projects: Cloncurry North within 20km of Ernest Henry in North Queensland and October Gold, ~105km southwest of Timmins, Ontario in the Abitibi Greenstone Belt.
The Feasibility Study for the Mt Rawdon Pumped Hydro project advanced well and remains on track for completion in the June quarter FY24. Discussions with potential interested offtake partners and infrastructure investors are ongoing.
Group production and cost guidance is expected to be within the range of 789,000 ounces (±5%), copper production of 62,500 tonnes (±5%) and AISC of $1,340/oz (±5%).

Evolution Mining Limited Directors' Report 31 December 2023

Key highlights for the half-year (continued)

Sustainability

Sustainability has been at the core of Evolution since inception and is integrated into every aspect of the business. This encompasses the people, health, safety, risk, environment, First Nations engagement and broader community relations to ensure Evolution creates value in a socially and environmentally responsible way.
The Group publicly committed transitioning to “Net Zero” greenhouse gas emissions by 2050 (Scope 1 and 2) and a 30% reduction in emissions by 2030 against the FY20 baseline. The FY24 H1 reduction against the Group's FY20 adjusted baseline is currently estimated to be ~16% for operational sites calculated using the market-based method from July 2023. Evolution also demonstrated its commitment to renewables by implementing a Power Purchase Agreement to supply renewable power from a solar farm to Cowal, providing a clear pathway to reducing Evolution’s energy and emissions in line with the commitment by 2030.
In this period, Evolution released its FY23 Sustainability Report, ESG Performance Data, Church of England Tailings Dam Management Disclosure and Modern Slavery Statement. The Group continues to be recognised for its Sustainability performance, maintaining sector leading ratings across ESG reporting Agencies including S&P Global CSA, Sustainalytics, ISS and MSCI and is also recognised in the Dow Jones Sustainability Index Australia. This is supported by external stakeholder engagement that includes improving outcomes in local procurement for local communities and First Nation Partners.
The Group remains committed to continuously improving Sustainability outcomes and is delivering on or better than target across all sustainability leading and lagging metrics. The exception is the Total Recordable Frequency (TRIF) performance with TRIF at 31 December at 8.9 (30 September: 8.3). Evolution's aim is to constantly improve its performance in health and safety and there is a renewed focus on leading indicators, increased reporting, field leadership, action closure discipline and high-quality safety interactions.

Financials

The Group achieved a statutory net profit after tax of $96.9 million for the period (31 December 2022: $100.9 million). Underlying profit after tax increased by $55.0 million to $158.1 million in the half-year (an increase from $103.1 million at 31 December 2022). Underlying EBITDA increased by 28% to $572.6 million (31 December 2022: $446.2 million).
Basic earnings per share was 5.23 cents per share (31 December 2022: 5.50 cents).
Fully franked dividends of $36.7 million (31 December 2022: $55.0 million) were paid during the half-year related to the FY23 final dividend.
Group cash flow (Group cash flow pre acquisition and integration costs, and debt and dividend repayments) totalled $52.4 million, an increase of $169.3 million on the prior period (31 December 2022 outflow of $116.9 million).
The Directors declared a FY24 interim fully franked dividend of 2.0 cents per share, which is the 22nd consecutive dividend (31 December 2022: 2.0 cents). The aggregate amount of the interim dividend to be paid on 5 April 2024 is estimated at $39.5 million.
The Group's key results are as follows:
Total gold production of 319,377oz at an AISC of $1,615/oz.
Operating mine and net mine cash flow of $617.9 million and $202.9 million respectively.
During the period, the Group successfully executed the debt restructure announced in FY23. This involved a new US$200 million (A$306 million) US Private Placement (USPP) and the replacement of the existing A$590 million term loan facilities with a reduced A$300 million four year term loan facility. Additionally, for the Northparkes acquisition, the Group raised a new Term Loan Facility, (“Facility G”), of $200m, under the current Syndicated Facility Agreement. The term of the facility is five years with the first repayment due in Q3 of FY25. During July 2023, the Group received confirmation that its investment grade credit rating remains unchanged from last year.

Operations & Projects

The Cowal underground mine continued to ramp up during the period with the successful commissioning of the paste plant. Commercial production is anticipated at the end of the March 2024 quarter when it reaches an annualised mining rate of >1.4 million tonnes and generates cash at long-term prices.
The contract for the plant expansion at Mungari (Mungari 4.2) was awarded to GR Engineering Services Limited during the period. The contract works are expected to cost $155 million of the project budget of $250 million and will increase the site's processing capacity from 2 million tonnes to 4.2 million tonnes per annum. Early construction works commenced during the December 2023 quarter and commissioning is expected by the end of the March 2026 quarter. The project remains on budget and schedule.
Ernest Henry returned to normal operations after the significant weather event in March 2023, which resulted in the evacuation of the mine and suspension of production activities. Following significant and successful recovery efforts, Ernest Henry has returned to full production, reestablishing the operation as the reliable and consistent performer that it has historically been.

Evolution Mining Limited Directors' Report 31 December 2023

Key highlights for the half-year (continued)

Operations (continued)

The focus at Red Lake is on developing the asset into a consistent and reliable producer that generates cash. Production during the first half was impacted by materials handling constraints at Cochenour and Reid haulage shaft, both of which are now resolved. The development of a new permanent raisebore ore pass at Cochenour is improving the reliability of ore delivery from Cochenour. Production during the period was also impacted by a seismic related restriction at Balmer mine. Access has been re-established since the period end.
Mt Rawdon delivered increased mine cash flow during the first half. Mining at Mt Rawdon is planned to complete early in FY25, while processing of remaining stockpiles is expected to continue until early FY26.

Operating and Financial Review

Evolution is a leading, low-cost Australian gold mining company. As at 31 December 2023, the Group has six operating mines: Cowal and Northparkes in New South Wales; Ernest Henry and Mt Rawdon in Queensland; Mungari in Western Australia and Red Lake in Ontario, Canada.

Evolution’s vision is inspired people creating a premier global gold company that delivers long-term stakeholder value through safe, reliable, low-cost production in an environmentally and socially respectable way. Financial discipline is of core importance and embedded across the entire business. The Group is focused on prospering through the metal price cycle. Evolution believes that this can be best achieved with a portfolio of up to eight assets in Tier 1 jurisdictions generating superior returns, with an average mine reserve life of at least ten years. To achieve this mine life objective, the Group requires an active pipeline of quality exploration and development projects. The Group places equal importance on its ability to remain agile, recognise value and execute on opportunities to improve the portfolio.

The Group remains open to all quality gold, silver and gold-copper value accretive investments.

Profit Overview

The Group achieved a statutory net profit after tax of $96.9 million for the period ended 31 December 2023 (31 December 2022: $100.9 million). The underlying net profit after tax increased 53.3% to $158.1 million for the period (31 December 2022: $103.1 million). The following graph reflects the movements in the Group's profit after tax for the period ended 31 December 2023 compared to the period ended 31 December 2022.

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Evolution Mining Limited Directors' Report 31 December 2023

Key highlights for the half-year (continued)

Profit Overview (Continued)

Gold revenue benefited from a higher achieved gold price of $3,000/oz (31 December 2022: $2,482/oz) whereas the gold price realised on spot sales was $2,992/oz (31 December 2022: $2,593/oz). 8,570 more ounces were sold during the period compared to 31 December 2022.

By-product revenue increased to $378.9 million (31 December 2022: $363.1 million). Northparkes sold 2,046 tonnes of copper and 1,604 ounces of gold, contributing new revenue of $31.4 million. The contribution of Northparkes' copper sales during the period more than offset the impact of the decrease in copper production at Ernest Henry. A higher realised copper price of $12,700/t (31st December 2022: $12,030) drove a further positive impact.

Operating costs excluding Northparkes increased by $53.8 million driven by increased mining activity, inflationary cost impacts, specifically in labour which comprises almost half the cost base, diesel, electricity costs related to new contracts which took effect from 1 January 2023, and mechanical spares.

While movements in inventory, mainly related to concentrate sales at Red Lake and ore stock drawdowns at Mount Rawdon, had a negative impact of $50.8 million on costs, additional revenue from those sales contributed to cash flow.

Stamp Duty and M&A costs of $82.7 million relate predominantly to the Northparkes acquisition and includes $66.0 million of stamp duty and $12.2 million of transaction costs. This stamp duty will be paid in the March FY24 quarter.

The tax expense for the half-year ended 31 December 2023 was $42.4 million, $7.9 million higher than the prior half-year. The effective tax rate in the current half-year is 30.4% compared to 25.5% at 31 December 2022.

The table below shows the reconciliation between the Statutory and Underlying profit.

	31 December	31 December
	2023	2022
	$000	$000
Statutory profit before income tax	139,275	135,441
Transaction and integration costs(includingstampduty)	85,836	3,150
Non-operational costs net of insuranceproceeds	1,691	—
Underlying profit before income tax	226,802	138,591
Income tax expense	(42,406)	(34,527)
Tax effect of adjustments	(26,258)	(945)
Underlying profit after income tax	158,138	103,119

Cash Flow

Operating mine cash flow increased by 30% totalling $617.9 million (31 December 2022: $477.0 million). Total capital investment was $313.5 million, a significant decrease on the prior half-year (31 December 2022: $389.9 million) driven by decreased capital intensity across the Group. Total capital investment included $82.9 million (31 December 2022: $88.1 million) of sustaining capital investment and $230.8 million (31 December 2022: $301.8 million) of major capital investment. The major capital investment related predominantly to the underground project at Cowal, the Mungari 4.2 early works and underground mine development at Red Lake. Mine cash flow before major capital investment was $535.3 million (31 December 2022: $388.9 million). Included in non-operational costs in the following 'Key Results' table is $100.0 million attributable to pre-production expenditure incurred on the development of the underground at Cowal before it reaches commercial production.

Evolution Mining Limited Directors' Report 31 December 2023

Key highlights for the half-year (continued)

Key Results

The condensed consolidated operating and financial results for the current and prior comparative period are summarised below. All dollar figures refer to Australian thousand dollars ($'000) unless otherwise stated.

Key Business Metrics	31 December	31 December
	2023	2022	% Change (ii)
Total underground lateral development(m)	23,704	20,954	13 %
Total underground ore mined(kt)	4,462	4,239	5 %
Total openpit ore mined(kt)	9,337	8,414	11 %
Total openpit waste mined(kt)	7,834	5,611	40 %
Processed tonnes(kt)	10,857	10,666	2 %
Goldgradeprocessed(g/t)	1.11	1.20	(7)%
Goldproduction(oz)	319,377	327,502	(2) %
Silverproduction(oz)	327,437	288,557	13 %
Copperproduction(t)	27,635	29,951	(8) %
Cash(C1)operatingcost($/oz) (i)	1,039	845	(23)%
All in sustainingcost($/oz) (i)	1,615	1,307	(24)%
All in cost($/oz) (i)	2,400	2,292	(5)%
Goldprice achieved($/oz)	3,000	2,482	21 %
Silverprice achieved($/oz)	37	31	19 %
Copperprice achieved($/t)	12,700	12,030	6 %
Total Revenue($'000)	1,340,184	1,132,819	18 %
Cost of sales(excludingD&A) ($'000)	(750,301)	(628,804)	(19)%
Corporate,admin,exploration and other costs(excludingD&A) ($'000)	(24,224)	(21,163)	(14)%
UnderlyingEBIT(i) ($'000)	287,146	445,976	(36)%
UnderlyingEBITDA(i) ($'000)	572,609	446,248	28 %
UnderlyingEBITDA(%) (i) ($'000)	43%	39%	10 %
Statutory profit/(loss) after income tax($'000)	96,869	100,914	(4) %
Underlying profit after income tax($'000)	158,138	103,119	53 %
Operatingmine cash flow($'000)	617,934	476,989	30 %
SustainingCapital($'000)	(82,656)	(88,110)	6 %
Mine cash flow before major capital($'000)	535,278	388,879	38 %
Major Capital($'000)	(230,797)	(301,756)	24 %
Non-Operational Cash Costs($'000)	(101,600)	(1,100)	(9136)%
Net mine cash flow($'000)	202,881	86,023	136 %

(i) Underlying EBITDA, underlying EBIT, Unit cash operating cost, All-in Sustaining Cost (AISC), and All-in Cost (AIC) are non-IFRS financial information and are not subject to audit. Underlying EBITDA is reconciled to statutory profit before income tax in note 1(c) to the financial statements

(ii) Percentage change represents positive/(negative) impact on the business

Evolution Mining Limited Directors' Report 31 December 2023

Mining Operations

Cowal

Key Business Metrics	31 December 2023	31 December 2022	Change
Operatingcash flow($'000)	250,890	154,453	96,437
Sustainingcapital($'000)	(12,141)	(6,632)	(5,509)
Net mine cash flow before major capital($'000)	238,749	147,821	90,928
Major capital($'000)	(61,242)	(162,879)	101,637
Non-Operational Costs($'000)	(99,952)	—	(99,952)
Net mine cash flow($'000)	77,555	(15,058)	92,613
Goldproduction(oz)	139,709	129,155	10,554
All-in SustainingCost($/oz)	1,270	1,185	(85)
All-in Cost($/oz)	1,777	2,427	650

Cowal produced 139,709oz of gold at an AISC of $1,270/oz, supported by higher processing throughput and recovery in the December quarter. Underground ore mined was 313kt at 2.11g/t gold. Total underground development was 5,429m. Open pit total material mined was 8,769kt. Open pit ore mined was 7,131kt at a grade of 0.86g/t gold. Adverse weather conditions in December reduced production from the open pit by ~7,000 ounces of gold.

Cowal returned to significant cash generation, realising net mine cash flow for the half-year of $77.6 million, driven by lower major capital spend of $61.2 (31 December 2022: $162.9 million) after accounting for non-operational costs of $100.0 million related to the establishment and ramp-up of the underground mine before it reaches commercial production. Net mine cash flow before major capital was $238.7 million, an increase of $90.9 million on 31 December 2022 after sustaining capital of $12.1 million,

The Cowal underground mine continues to ramp up with the successful commissioning of the paste plant in the December quarter. The underground mine is expected to reach commercial production at the end of the March 2024 quarter based on achieving an annualised mining rate of >1.4 million tonnes and generates cash at long-term prices.

Major capital spend included the integrated waste landform ($25.7m) and underground mine project ($32.7m). Sustaining capital primarily comprised scheduled maintenance works and upgrades, and resource definition drilling ($3.5m).

Ernest Henry

Key Business Metrics	31 December 2023	31 December 2022	Change
Operatingcash flow($'000)	227,806	258,335	(30,529)
Sustainingcapital($'000)	(17,232)	(30,356)	13,124
Net mine cash flow before major capital($'000)	210,574	227,979	(17,405)
Major capital($'000)	(37,530)	(21,028)	(16,502)
Non-Operational Costs($'000)	5,297	—	5,297
Net mine cash flow($'000)	178,341	206,951	(28,610)
Goldproduction(oz)	40,770	42,409	(1,639)
Copperproduction(t)	26,442	29,951	(3,509)
All-in SustainingCost($/oz)	(1,851)	(2,758)	907
All-in Cost($/oz)	(939)	(2,249)	1,310

Ernest Henry produced 40,770oz of gold and 26,442t of copper at an AISC of negative $1,851/oz, due to higher gold sold and lower achieved copper price which reduced the by-product credits and resulted slightly higher operating costs. Copper production in the half-year was lower than the prior half-year due to planned lower grades based on the stage of mining in the cave.

Development recommenced on the access decline and 1125 production level as the last clean-up from the March 2023 weather event was completed. The mine extension feasibility study continues to progress and remains on track for delivery in the FY25 March quarter.

Ore mined was 3,243kt at an average grade of 0.49g/t gold and 0.87% copper. Underground development was 5,800 metres. Ore processed was 3,300kt at an average grade of 0.49g/t gold and 0.86% copper.

Operating mine cash flow for the half-year was $227.8 million. Net mine cash flow was $178.3 million, post sustaining capital of $17.2 million, major capital of 37.5 million and non-operational costs related to the March 2023 weather event of $5.3 million, net of $18.0 million of insurance receipts.

Major capital expenditure included underground development and ventilation upgrades ($18.7m) and major project development ($8.0m). Sustaining capital expenditure included underground fleet replacement ($5.5m), mine development ($6.2m), resource definition drilling ($1.8m) and various minor projects.

Evolution Mining Limited Directors' Report 31 December 2023

Mining Operations (continued)

Northparkes

Key Business Metrics	31 December 2023
Operatingcash flow($'000)	18,498
Sustainingcapital($'000)	(4,426)
Net mine cash flow before major capital($'000)	14,072
Major capital($'000)	(2,344)
Non-Operational Costs - Stream commitment obligation($'000)	(2,291)
Net mine cash flow($'000)	9,437
Goldproduction(oz)	1,011
Copperproduction(t)	1,193
All-in SustainingCost($/oz)	(5,677)
All-in Cost($/oz)	(4,008)

On 15 December 2023, Evolution completed the acquisition of an 80% interest in Northparkes from CMOC. Northparkes is a well-established copper-gold mine located 27 kilometres north-west of Parkes, NSW, with multiple large-scale porphyry copper and gold deposits suitable for bulk cave mining operations.

Northparkes generated cash during the period 16 - 31 December 2023. The site delivered net mine cash flow of $9.4 million for the period, after allowing for stream commitments.

Integration of the Northparkes operation is progressing well. The Mineral Resources and Ore Reserves estimate for Northparkes, reported in accordance with the JORC Code 2012, was released to ASX in the Group Annual Mineral Resources and Ore Reserves Statement on 14 February 2024 as planned.

Red Lake

Key Business Metrics	31 December 2023	31 December 2022	Change
Operatingcash flow($'000)	50,394	18,014	32,380
Sustainingcapital($'000)	(18,606)	(27,811)	9,205
Net mine cash flow before major capital($'000)	31,788	(9,797)	41,585
Major capital($'000)	(87,366)	(86,152)	(1,214)
Non-Operational Costs($'000)	(4,691)	—	(4,691)
Net mine cash flow($'000)	(60,269)	(96,798)	36,529
Goldproduction(oz)	49,292	61,100	(11,808)
All-in SustainingCost($/oz)	2,908	2,468	(440)
All-in Cost($/oz)	4,379	4,061	(318)

Red Lake produced 49,292oz of gold at an AISC of $2,908/oz. Gold production was impacted by materials handling constraints at Cochenour and Reid haulage shaft in the December quarter, both of which are now resolved. This included the development of a new permanent raisebore ore pass at Cochenour, which is improving the reliability of ore delivery. Production was also impacted by a seismic related restriction at Balmer mine. These constraints collectively resulted in lower than expected gold grade and ore mined.

The focus at Red Lake is for the operation to become a consistent and reliable producer as well as generating positive cash flow. Red Lake's performance in the second half of FY24 is expected to improve. Red Lake’s FY24 production guidance is 125,000 to 135,000oz of gold.

Ore mined was 397kt at an average grade of 4.30g/t gold for the half-year. Total underground lateral development was 7,485m, comprised of 5,820m of capital development and 1,664m of operating. Ore processed was 396kt at 4.34g/t gold.

Mine operating cash flow for the half-year was $50.4 million. Net mine cash flow was negative $60.3 million after investing $18.6 million in sustaining capital, $87.4 million in major capital and $4.7 million in restructuring costs. Net mine cash flow before major capital increased $41.6 million to $31.8 million at 31 December 2023.

Major capital included development at Upper Campbell ($45.2m) and general mine development ($39.1m). Sustaining capital was focused on underground mine development, tailings dam activity and resource definition drilling. One contract jumbo drill rig was demobilised late in the December quarter with capital spend in Upper Campbell expected to reduce over the remainder of FY24.

Evolution Mining Limited Directors' Report 31 December 2023

Mining Operations (continued)

Mungari

Key Business Metrics	31 December 2023	31 December 2022	Change
Operatingcash flow($'000)	48,633	35,263	13,370
Sustainingcapital($'000)	(27,199)	(18,662)	(8,537)
Net mine cash flow before major capital($'000)	21,434	16,601	4,833
Major capital($'000)	(42,141)	(21,038)	(21,103)
Net mine cash flow($'000)	(20,707)	(4,437)	(16,270)
Goldproduction(oz)	56,822	69,844	(13,022)
All-in SustainingCost($/oz)	2,623	2,153	(470)
All-in Cost($/oz)	3,534	2,552	(982)

Mungari produced 56,822oz of gold in the half-year at an average AISC of $2,623/oz. Lower production in the half year was the result of a slower than planned ramp up at the Paradigm mining centre combined with delayed face positions and available stoping fronts at Kundana mining centre. Pleasingly, mining at Paradigm advanced in the December quarter, benefiting from improved ore presentation and a lower stripping ratio. Productivity in the underground is on track to improve with the arrival of two new jumbo drill rigs.

Underground ore mined was 299kt at 3.94g/t gold. Total underground lateral development was 4,919 metres. Open pit total material mined was 4,578kt. Open pit ore mined was 402kt at a grade of 1.30g/t gold.

Higher sales led to an improvement in operating mine cash flow to $48.6 million, whilst net mine cash flow was negative $20.7 million for the halfyear, impacted by an increase in capital spend.

Major capital comprised Mungari 4.2 works ($13.4m) and underground development, the purchase of two jumbo drill rigs ($2.2m) and open pit development ($2.0m). Sustaining capital spend included underground mine development ($18.9m), resource definition drilling ($1.7m) and the TSF lift completed in the December quarter ($1.7m).

Early construction works for the Mungari 4.2 project began during the December quarter, following the award of the construction contract to GR Engineering. The project remains on schedule and budget.

Mt Rawdon

Key Business Metrics	31 December 2023	31 December 2022	Change
Operatingcash flow($'000)	21,752	10,663	11,089
Sustainingcapital($'000)	(3,052)	(4,415)	1,363
Net mine cash flow before major capital($'000)	18,700	6,248	12,452
Major capital($'000)	(174)	(10,659)	10,485
Net mine cash flow($'000)	18,526	(4,634)	23,160
Goldproduction(oz)	31,772	24,994	6,778
All-in SustainingCost($/oz)	2,573	2,518	(55)
All-in Cost($/oz)	2,579	2,923	344

Mt Rawdon produced 31,772oz of gold at an AISC of $2,573/oz for the half-year. During the December quarter productivity remained high, however weather conditions at the end of November and through December saw reduced open pit access.

Total open pit material mined was 3,824kt. Ore mined was 1,804kt at 0.65g/t gold.

Mt Rawdon achieved increased mine operating cash flow of $21.8 million and net mine cash flow of $18.5 million for the half-year, after sustaining capital of $3.1 million.

An update to the Mineral Resources and Ore Reserves estimate for Mt Rawdon, was released to ASX in the Group Annual Mineral Resources and Ore Reserves Statement on 14 February 2024. Depreciation for the half-year has been aligned to the updated reserve base resulting in $10.2 million additional depreciation in the half-year to 31 December 2023. For the full year depreciation is expected to be between $1,350/oz to $1,500/oz.

Mining at Mt Rawdon is planned to complete early in FY25, while processing of remaining stockpiles is expected to continue until early FY26.

Evolution Mining Limited Directors' Report 31 December 2023

Financial Performance

Profit or Loss

Revenue for the half-year ended 31 December 2023 increased by 18% to $1,340.2 million (31 December 2022: $1,132.8 million). This was driven by a combination of higher achieved gold price of $3,000/oz (31 December 2022: $2,482/oz) as well as an increase in sold ounces for the period to 333,375oz (31 December 2022: 324,804oz). Revenue comprised of $999.9 million of gold, $366.6 million of copper and $12.3 million of silver revenue (31 December 2022: $805.9 million of gold, $354.1 million of copper and $9.0 million of silver revenue). Northparkes contribution to revenue during the period was $31.4 million (31 December 2022: nil).

At 31 December 2023 the Group's gold delivery commitments totalled 120,000 ounces at an average price of $3,185/oz for the Australian operations with quarterly deliveries through to June 2026. The first delivery is scheduled for March 2024, with 20,000 ounces committed for delivery during FY24. These hedges were put in place to protect the investment in the Mungari 4.2 Project.

Increased operating costs were predominantly driven by increased mining activity and inflationary cost pressure. Other key driver attributing to the increase in expenses is transaction and integration costs amounting to $85.8 million (31 December 2022: $3.2 million).

The Group achieved a statutory net profit after tax of $96.9 million for the half-year ended 31 December 2023 (31 December 2022: $100.9 million). Underlying net profit after tax was $158.1 million (31 December 2022: $103.1million).

Balance Sheet

Total assets increased by 22% during the half-year to $8,248.2 million (30 June 2023: $6,752.4 million). Cash and cash equivalents increased by $144.9 million driven mainly by net proceeds of $514.8 million from the issue of shares under the $525 million institutional placement, drawdown of a new $200 million 5-year Term Debt Facility executed during the period ("Facility G") and net mine cash flow achieved of $202.9m, net of $36.7 million dividend payments, $31.4 million interest and borrowing costs payments and the $521.0 million net outflow attributable to the acquisition of Northparkes.

The net carrying amount of property, plant and equipment increased by $282.0 million driven by Northparkes assets of $221.0 million and additions of $150.8 million which includes $65.8 million of additions at Cowal and $50.1 million of additions at Red Lake offset by depreciation and amortisation of $80.9 million. Mine development and exploration increased by $976.0 million, which was primarily driven by Northparkes assets of $948.4 based on the preliminary purchase price allocation and additions of $251.1 million which includes additions of $116.5 million at Cowal, $66.6 million at Red Lake and $52.6 million at Mungari offset by deprecation of $197.2 million.

Total liabilities for the Group of $4,400.7 million at 31 December 2023 (30 June 2023: $3,450.6 million), increased by $950.1 million, or 27.5% on the prior period. The key drivers consist of acquiring the stream liability with Triple Flag (refer to Note 11 ' Deferred Revenue' for further detail) amounting to provisional value of $601.6 million, a $113.7 million increase in interest bearing liabilities net of capitalised borrowing costs, a $122.4 million increase in trade and other payables and a $21.8 million net increase in rehabilitation provisions mainly attributable to the acquisition of Northparkes.

Cash Flow

Total cash inflow for the period amounted to $148.4 million (31 December 2022: $258.2 million outflow).

	31 December	31 December
	2023	2022	Change
	$'000	$'000	$'000
Cash flows from operatingactivities	426,657	297,954	128,703
Cash flows from investingactivities	(901,523)	(413,267)	(488,256)
Cash flows from financingactivities	623,296	(142,908)	766,204
Net movement in cash	148,430	(258,221)	406,651
Cash at the beginningof the half-year	46,146	572,427	(526,281)
Effects of exchange rate changes on cash and cash equivalents	(3,539)	(984)	(2,555)
Cash at the end of the half-year	191,037	313,222	(122,185)

Net cash outflows from investing activities were $901.5 million, an increase of $488.3 million from the prior comparative period (31 December 2022: $413.3 million outflow). This increase was driven by net cash outflows of $521.0 million attributable to the acquisition of the Northparkes asset during December 2023.

Net cash inflows from financing activities were $623.3 million, an increase of $766.2 million from the prior comparative period (31 December 2022: $142.9 million outflow). Financing cash inflows during the half-year mainly consisted of net proceeds of $514.8 million from the issue of shares under the $525 million institutional placement in December 2023 to fund the Northparkes transaction. Included within proceeds from interest bearing liabilities was a new $200 million 5-year Term Debt Facility executed during the period ("Facility G"). These were offset by repayments of $705.0 million comprised of an aggregate $415 million on the Revolving Credit Facility (”Facility A”), $250.0 million to settle the Term Loan Facility (”Facility B”) and $40.0 million to settle the Term Loan Facility (”Facility E") . Dividends paid during the period totalled $36.7 million.

Evolution Mining Limited Directors' Report 31 December 2023

Financial Performance (continued)

Taxation

During the half-year, the Group made net income tax payments of $5.2 million (31 December 2022: $39.3 million) and recognised an income tax expense of $42.4 million (31 December 2022: $34.5 million ).

Capital Investment

Capital investment for the half-year totalled $313.5 million (31 December 2022: $389.9 million). The significant decrease on the prior half-year was driven by decreased capital intensity across the Group as its operations transition to a period of increased cash flow generation. Total capital investment consisted of sustaining capital, including near mine exploration and resource definition, of $82.7 million (31 December 2022: $88.1 million) and major capital of $230.8 million (31 December 2022: $301.8 million). The main capital projects included the Underground Project and Integrated Waste Landform tailings facility at Cowal, underground fleet replacement, underground mine development and the Mine Extension Study at Ernest Henry, underground mine development at Red Lake, Mungari 4.2 works, and underground mine development and equipment purchases at Mungari. No material capital expenditure was incurred at Mt Rawdon in the period.

Financing

Total finance costs for the half-year were $63.4 million (31 December 2022: $40.4 million). Included in total finance costs are interest expenses of $47.3 million (31 December 2022: $36.3 million), amortisation of debt establishment costs of $3.2 million (31 December 2022: $1.7 million), discount unwinding on mine rehabilitation liabilities of $9.7 million (31 December 2022: $2.1 million), interest expense on lease liability unwinding of $1.6 million (31 December 2022: $0.3 million) and interest unwind on streaming arrangement with Triple Flag of $1.6 million (31 December 2022: nil).

The increase in interest expense is the result of higher average interest bearing liabilities over the period combined with higher interest rates on term loans than the prior period. Evolution's weighted average borrowing cost remains low at 4.99% which is at fixed rates except for the term loans and revolving credit facility. The term dates and the outstanding balances on each debt facility as at 31 December 2023 are set out below:

Facility Name	Term Date	Facility Size $m	Amount Drawn $m	Available Amount $m
Loan facilities and US Private Placements
RevolvingCredit Facility– FacilityA - $m	12 Oct 2025	$525.0	$0.0	$525.0
Term Loan – FacilityF - $m	22 Aug2027	$300.0	$300.0	$0.0
Term Loan – FacilityG - $m	15 Dec 2028	$200.0	$200.0	$0.0
US Private Placement - USD $m	8 Nov 2028	$200.0	$200.0	$0.0
US Private Placement - USD $m	14 Feb 2031	$200.0	$200.0	$0.0
US Private Placement - USD $m	8 Nov 2031	$350.0	$350.0	$0.0
US Private Placement - USD $m	22 Aug2033	$100.0	$100.0	$0.0
US Private Placement - USD $m	22 Aug2035	$100.0	$100.0	$0.0
Performance bond and guarantee facilities
Performance Bond – FacilityC $m	30 Nov 2024	$220.0	$152.2	$67.8
Performance Bond – FacilityD CAD $m	30 Nov 2024	$125.0	$74.5	$50.5
ANZ Bank Guarantee Facility- $m	31 May2024	$35.0	$0.0	$35.0

Dividends

The Company's dividend policy is, whenever possible, to pay a dividend based on group cash flow generated during the period. The Group's free cash flow is defined as cash flow before debt and dividends and mergers and acquisitions. The Directors assess the group cash flow and outlook for the business with the intention to return excess cash to shareholders and targeting a level around 50% of group cash flow.

The Board has confirmed that the Group is in a sound position to meet its commitment under the policy to pay an interim fully franked dividend for the current period of 2.0 cents per share. The aggregate amount of the interim dividend to be paid on 5 April 2024 is estimated at $39.5 million. Evolution Mining Limited shares will trade excluding entitlement to the dividend on 27 February 2024, with the record date being 28 February 2024.

The Dividend Reinvestment Plan ("DRP") remains suspended.

Significant changes in the state of affairs

There were no significant changes in the nature of the activities of the Group during the period, other than those included in the Key Highlights.

Further information on likely developments in the operations of the Group and the expected results of operations have not been included in this Condensed Consolidated Interim Financial Report because the Directors believe it would be likely to result in unreasonable prejudice to the Group.

Evolution Mining Limited Directors' Report 31 December 2023

Financial Performance (continued)

Events occurring after the reporting period

The Group completed the Share Purchase Plan (SPP) subsequent to the period end. A total of 10.3 million new fully paid ordinary shares will be issued at an issue price of $3.0684, raising approximately $32 million.

On 17 January, the Group made the final working capital payment to CMOC amounting to $32.8 million which was offset by proceeds received from a pre-acquisition shipment. Refer to note 15 - Business Combinations for further details.

Refer to note 4 - Dividends for the interim dividend recommended since the end of the reporting period.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 12.

Rounding of amounts

The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, issued by the Australian Securities and Investments Commission relating to the 'rounding off' of amounts in the Directors' Report and Financial Report have been rounded in accordance with that ASIC Corporations Instrument to the nearest thousand dollars ($'000).

This report is made in accordance with a resolution of Directors.

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Lawrence (Lawrie) Conway Managing Director and Chief Executive Officer

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Andrea Hall Non-Executive Director

Sydney

14 February 2024

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Auditor’s Independence Declaration

As lead auditor for the review of Evolution Mining Limited for the half-year ended 31 December 2023, I declare that to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
(b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Evolution Mining Limited and the entities it controlled during the period.

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Brett Entwistle Partner PricewaterhouseCoopers

Sydney 14 February 2024

PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Evolution Mining Limited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2023

Notes	31 December 2023 31 December 2022
	$'000 $'000
Sales revenue 2 Cost of sales 2 Gross Profit Interest income Other income / (expense) 2 Share based payments expense Corporate and other administration costs 2 Transaction and integration costs 2 Exploration and evaluation costs expensed 7 Finance costs 2 Profit before income tax expense Income tax expense 3 Profit after income tax expense attributable to Owners of Evolution Mining Limited Other comprehensive income Changes in the fair value of equity investments at fair value through other comprehensive income (FVOCI) net of tax (may not be reclassified to profit or loss) Exchange differences on translation of foreign operations (may be reclassified to profit or loss) Loss on cash flow hedge reserve net of tax (may be reclassified to profit or loss) Cost of hedging reserve net of tax (may be reclassified to profit or loss) Other comprehensive loss for the period, net of tax Total comprehensive income for the period Total comprehensive income for the period is attributable to: Owners of Evolution Mining Limited Earnings per share for profit attributable to Owners of Evolution Mining Limited: Basic earnings per share Diluted earnings per share	1,340,184 1,132,819 (1,035,764) (900,747)
	304,420 232,072 1,410 4,686 18,353 (23,641) (7,393) (7,618) (25,059) (22,506) (85,836) (3,150) (3,175) (4,003) (63,445) (40,399)
	139,275 135,441 (42,406) (34,527)
	96,869 100,914
	(790) (14) (27,226) (39,679) (13,752) (17,433)
	6,505 (926)
	(35,263) (58,052)
	61,606 42,862
	61,606 42,862
	61,606 42,862
	Cents Cents 5.23 5.50 5.21 5.48

The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Evolution Mining Limited Condensed Consolidated Balance Sheet As at 31 December 2023

Notes	31 December 2023 30 June 2023
	$'000 $'000
ASSETS
Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax receivables Derivative financial instruments Total current assets Non-current assets Inventories Equity investments at fair value 10 Property, plant and equipment 5 Mine development 7 Exploration and Evaluation 7 Right-of-use assets 6 Deferred tax assets Derivative financial instruments 10 Other non-current assets Total non-current assets Total assets	191,037 46,146 226,769 119,964 326,795 333,395 — 15,532 — 2,426
	744,601 517,463 239,805 193,445 36,008 45,064 2,317,691 2,035,721 4,237,797 3,261,825 465,268 455,318 55,549 55,180 49,897 45,494 66,153 103,737 35,433 39,138
	7,503,601 6,234,922
	8,248,202 6,752,385

LIABILITIES
Current liabilities Trade and other payables Interest bearing liabilities 8 Provisions Derivative financial instruments 10 Lease liabilities 6 Current tax liabilities Deferred revenue 11 Total current liabilities Non-current liabilities Interest bearing liabilities 8 Provisions Derivative financial instruments 10 Deferred tax liabilities Lease liabilities 6 Deferred revenue 11 Other non-current liabilities Total non-current liabilities Total liabilities Net assets	588,488 466,120 13,409 341,273 90,713 78,043 6,364 1,957 23,882 22,523 23,518 — 36,411 —
	782,785 909,916 1,863,719 1,422,159 492,201 468,433 21,556 5,955 551,618 545,178 34,407 35,310 565,180 — 89,242 63,614
	3,617,923 2,540,649
	4,400,708 3,450,565
	3,847,494 3,301,820

EQUITY
Issued capital 9 Other reserves Retained earnings Capital and reserves attributable to owners of Evolution Mining Limited Total equity	3,158,855 2,644,103 68,467 100,542 620,172 557,175
	3,847,494 3,301,820
	3,847,494 3,301,820

The above Condensed Consolidated Balance Sheet should be read in conjunction with the accompanying notes

Evolution Mining Limited Condensed Consolidated Statement of Changes in Equity For the half-year ended 31 December 2023

Notes	Issued capital Share- based payments Financial assets at FVOCI Foreign currency translation Cash flow hedge reserve Retained earnings Total equity $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2022	2,644,103 78,064 (588) 22,623 31,322 478,453 3,253,977
Profit after income tax expense Changes in fair value of equity investments at FVOCI net of tax Exchange differences on translation of foreign operations Cash flow hedge reserve net of tax Cost of hedging net of tax Total comprehensive income Transactions with owners in their capacity as owners: Dividends provided for or paid Recognition of share-based payments	— — — — — 100,914 100,914
	— — (14) — — — (14)
	— — — (39,679) — — (39,679)
	— — — — (17,433) — (17,433)
	— — — — (926) — (926)
	— — (14) (39,679) (18,359) 100,914 42,862


	— — — — — (55,030) (55,030)
	— 7,143 — — — — 7,143
	— 7,143 — — — (55,030) (47,887)

Balance at 31 December 2022	2,644,103 85,207 (602) (17,056) 12,963 524,342 3,248,952
Balance at 1 July 2023 Profit after income tax expense Changes in fair value of equity investments at FVOCI net of tax Transfer of gain on disposal of equity investments at fair value through other comprehensive income to retained earnings Exchange differences on translation of foreign operations Cash flow hedge reserve net of tax Cost of hedging net of tax Total comprehensive income Transactions with owners in their capacity as owners: Issue of share capital - net of costs Dividends provided for or paid 4 Recognition of share-based payments	2,644,103 90,139 (14,491) 32,166 (7,272) 557,175 3,301,820
	— — — — 96,869 96,869
	— — (790) — — — (790)
	— — (2,864) — — 2,864 —
	— — — (27,226) — — (27,226)
	— — — — (13,752) — (13,752)
	— — — — 6,505 — 6,505
	— — (3,654) (27,226) (7,247) 99,733 61,606

	514,752 — — — — — 514,752
	— — — — — (36,736) (36,736)
	— 6,052 — — — — 6,052
	514,752 6,052 — — — (36,736) 484,068

Balance at 31 December 2023	3,158,855 96,191 (18,145) 4,940 (14,519) 620,172 3,847,494

The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Evolution Mining Limited Condensed Consolidated Statement of Cash Flows For the half-year ended 31 December 2023

Notes	31 December 2023 31 December 2022 $'000 $'000
Cash flows from operating activities Receipts from customers, inclusive of GST Payments to suppliers and employees, inclusive of GST Payments for transaction and integration costs Other income Interest received Interest paid Income taxes paid Net cash inflow from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for mine development and exploration Proceeds from sale of property, plant and equipment Proceeds from contingent consideration Proceeds from sale of equity investments Payments for acquisition of subsidiary, net of cash acquired 15 Net cash (outflow) from investing activities Cash flows from financing activities Proceeds from interest bearing liabilities 8 Repayment of interest bearing liabilities 8 Lease liability principal payments 6 Dividends paid 4 Proceeds from issue of shares 9(a) Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents increase at end of half-year	1,308,237 1,162,474 (860,884) (795,982) (7,613) (3,150) 22,474 6,139 1,055 4,685 (31,444) (36,923) (5,168) (39,289)
	426,657 297,954
	(136,266) (245,331) (255,713) (169,831) 829 1,101 3,917 794 6,714 — (521,004) —
	(901,523) (413,267)
	865,764 — (705,000) (80,105) (15,484) (7,774) (36,736) (55,029) 514,752 —
	623,296 (142,908)
	148,430 (258,221) 46,146 572,427 (3,539) (984)
	191,037 313,222

The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023

Contents of the Notes to the Condensed Consolidated Financial Statements

		Page
	Business performance	18
1	Performance by Mine	18
2	Revenue and Expenses	19
3	Income tax expense	22
4	Dividends	22
	Resource assets and liabilities	23
5	Property, plant and equipment	23
6	Leases	24
7	Mine development and exploration	25
	Capital structure, financing and working capital	26
8	Interest bearing liabilities	26
9	Equity and reserves	27
10	Financial assets and financial liabilities	27
	Risk and unrecognised items	28
11	Deferred Revenue	28
12	Contingent liabilities and contingent assets	29
13	Gold delivery Commitments	29
	Other disclosures	29
14	Events occurring after the reporting period	29
15	Business Combinations	30
16	Related party transactions	31
17	Summary of significant accounting policies	32
18	New accounting standards	32
19	Significant changes in the current reporting period	32

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Business Performance

This section highlights the key indicators on how the Group performed during the half-year.

1 Performance by Mine

(a) Description of segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the Leadership Team (the chief business decision makers) in assessing performance and in determining the allocation of resources.

The Group’s operational mine sites and exploration are each treated as individual operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.

Corporate includes share-based payment expenses, metal stream related transactions (see Note 11 - Deferred Revenue) and other corporate expenditures supporting the business during the half-year.

Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation (EBITDA). Underlying EBITDA also excludes financial items not considered to be contributing to underlying profit such as fair value amortisation expenses, transaction and integration costs and gain or loss resulted from acquisition and divestment of subsidiaries.

The Group’s operations are conducted in the mining industry in Australia and Canada. Red Lake is in Canada, and the revenue generated by Red Lake is outside of Australia.

(b) Segment information

The segment information for the reportable segments for the half-year ended 31 December 2023 is as follows:

Ernest Henry Cowal Mungari Red Lake Mt Rawdon $'000 $'000 $'000 $'000 $'000	Northparkes Exploration Corporate Total $'000 $'000 $'000 $'000
Revenue 431,914 432,018 168,432 180,981 95,421	31,418 — — 1,340,184
EBITDA 209,806 291,610 53,879 (1,737) 19,250	15,120 (3,175) (97,980) 486,773
SustainingCapital 17,232 12,141 27,199 18,606 3,052	4,426 287 82,943
Major Capital 37,530 61,242 42,141 87,366 174	2,344 — — 230,797
Total Capital 54,762 73,383 69,340 105,972 3,226	6,770 — 287 313,740

The segment information for the reportable segments for the half-year ended 31 December 2022 is as follows:

	Ernest
	Henry	Cowal	Mungari	Red Lake	Mt Rawdon	Exploration	Corporate	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Revenue	431,149	327,604	168,209	143,650	62,208	—	—	1,132,819
EBITDA	257,982	175,597	43,524	33,515	(7,946)	(4,003)	(55,571)	443,098
SustainingCapital	30,356	6,632	18,662	27,811	4,415	—	234	88,110
Major Capital	21,028	162,879	21,038	86,152	10,659	—	—	301,756
Total Capital	51,384	169,511	39,700	113,963	15,074	—	234	389,866

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

1 Performance by Mine (continued)

(c) Segment reconciliation

	31 December	31 December
	2023	2022
	$'000	$'000
Reconciliation ofprofit before income tax expense
UnderlyingEBITDA	572,609	446,248
Transaction and integration costs	(85,836)	(3,150)
EBITDA	486,773	443,098
Depreciation and amortisation	(285,463)	(271,942)
Interest income	1,410	4,685
Finance costs	(63,445)	(40,399)
Profit before income tax expense	139,275	135,441

Recognition and measurement

Operating segments are reported in a manner consistent with the internal reporting provided to the chief business decision maker.

The Board of Evolution Mining Limited has appointed a Leadership Team which assesses the financial performance and position of the Group, and makes strategic decisions. The Senior Leadership Team has been identified as being the chief business decision maker, consisting of the Key Management Personnel (KMP).

2 Revenue and Expenses

	31 December	31 December
	2023	2022
	$'000	$'000
Revenue from contracts with customers
Gold sales	999,878	805,909
Silver sales	12,310	9,011
Copper sales	366,574	354,084
Gross Revenue	1,378,762	1,169,004
Concentrate treatment, refining and freight deductions1	(38,578)	(36,185)
Net Revenue	1,340,184	1,132,819

Disaggregation of revenue from contracts with customers

Cowal Mungari Mt Rawdon Ernest Henry Red Lake Northparkes	Total
$'000 $'000 $'000 $'000 $'000 $'000	$'000
31 December 2023
Gold sales 426,733 168,172 93,921 125,185 180,884 4,983	999,878
Silver sales 5,284 260 1,500 4,514 97 655	12,310
Copper sales — — — 338,596 — 27,978	366,574
Concentrate treatment, refining and freight deductions — — — (36,380) — (2,198) (38,578)
Total Revenue from contracts with customers 432,017 168,432 95,421 431,915 180,981 31,418 1,340,184

1Ernest Henry, Northparkes and Red Lake concentrate treatment, refining and freight costs classified as a deduction to revenue in line with AASB 15.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

2 Revenue and Expenses (continued)

	Cowal	Mungari	Mt Rawdon	Ernest Henry	Red Lake	Total
	$'000	$'000	$'000	$'000	$'000	$'000
31 December 2022
Gold sales	324,118	167,908	60,914	109,414	143,554	805,909
Silver sales	3,486	300	1,294	3,835	96	9,011
Copper sales	—	—	—	354,084	—	354,084
Concentrate treatment, refining and	—	—	—	(36,185)	—	(36,185)
freight deductions
Total Revenue from contracts with customers	327,604	168,208	62,208	431,148	143,650	1,132,819

Gross revenues of $343.1 million (31 December 2022: $357.9 million) which relate to copper and silver sales are derived from a single external customer relating to Ernest Henry segment. Gross revenue of $494.0 million (31 December 2022: $313.9 million) which relate to gold and silver sales are derived from a single customer relating to Cowal and Mt Rawdon segments. The other major customers include refineries and financial institutions.

Recognition and measurement - revenue from contracts with customers

The Group generates sales revenue primarily from the performance obligation to deliver goods such as gold and concentrate to the buyer. Revenue from contracts with customers is recognised when control of the goods are transferred to the customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

For gold doré sales, revenue is recognised at the point where the doré leaves the gold room at the Group's mine site to the buyer, or when payment is received, or where gold metal credits are transferred to the customer's account. For concentrate sales, revenue is recognised generally when the commodity is delivered for shipment.

The terms of metal in concentrate sales contracts with third parties contain provisional pricing arrangements whereby the final selling price for metal in concentrate is based on prevailing average monthly prices on a specified future period after shipment to the customer (quotation period). Adjustments to the sales price occur based on movements in quoted market prices up to the final settlement price specified in the sales contracts. The period between provisional invoicing and final settlement is typically one to four months. Revenue on provisionally priced sales is recognised based on the estimated fair value of the total consideration receivable.

Recognition and measurement - deferred revenue

Deferred revenue arises from obligations acquired in consideration for future commitments. The accounting for streaming arrangements is dependent on the facts and terms of the streaming arrangement. Revenue from streaming arrangements is recognised when the customer obtains control of the gold and/or silver metal.

The Group identified significant financing components related to its streaming arrangement resulting from a difference in the timing of the acquisition of stream liability and delivery of the metal. Interest expense on deferred revenue is recognised in finance costs.

An adjustment is made to the transaction price per unit each time there is a change in the underlying production profile of Northparkes (typically in the second half of each financial year). The change in the transaction price per unit results in a cumulative catchup adjustment to revenue in the period in which the change is made, reflecting the new production profile expected to be delivered under the streaming agreement. A corresponding cumulative catch-up adjustment is made to accretion expense, reflecting the impact of the change in the deferred revenue balance.

Accounting estimates and judgements

Stream arrangement with Triple Flag

Significant judgment is required in determining the expected delivery of ounces over the term of the Streaming Agreement and their associated cash flows. In undertaking this review, management of the Group is required to make significant estimates of, amongst other things, discount rates, future production volumes, metal prices and reserve and resource quantities. These estimates are subject to various risks and uncertainties which may ultimately have an effect on the deferred revenue recorded related to the Streaming Agreement. Refer to note 11 (Deferred revenue) for further details.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

2 Revenue and Expenses (continued)

	31 December 2023 31 December 2022 $'000 $'000
*Other (expense) / income* Net foreign exchange (loss) / gain Insurance claim Ernest Henry Other	(4,124) (27,817) 18,048 — 4,429 4,176
Total Other Income	18,353 (23,641)

	31 December 2023 31 December 2022 $'000 $'000
*Cost of sales* Mine operating costs Royalty and other selling costs Depreciation and amortisation expense *Corporate and other administration costs* Corporate overheads Depreciation and amortisation expense *Transaction and integration costs* Contractor, consultants and advisory expense Restructuring costs Stamp duty on business combinations *Finance costs* Amortisation of debt establishment costs Unwinding of discount on provisions Interest accretion on the streaming arrangement with Triple Flag Interest expense unwinding - lease liability Interest expense *Depreciation and amortisation* Cost of sales Corporate and other administration costs	710,240 592,633 40,896 37,515 284,628 270,599
	1,035,764 900,747
	24,224 21,163 835 1,343
	25,059 22,506
	15,099 2,231 4,737 919 66,000 —
	85,836 3,150
	3,198 1,688 9,709 2,086 1,591 — 1,642 286 47,305 36,339
	63,445 40,399
	284,628 270,599 835 1,343
	285,463 271,942

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

3 Income tax expense

(a) Income tax expense

	31 December	31 December
	2023	2022
	$'000	$'000
Current tax on profits for the period	36,565	32,282
Deferred tax	5,841	2,245
Total	42,406	34,527

(b) Numerical reconciliation of income tax expense to prima facie tax payable

	31 December	31 December
	2023	2022
	$'000	$'000
Profit before income tax	139,275	135,441
Tax at the Australian tax rate of 30% ( 2022 - 30%)	41,783	40,632
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Adjustments for prior periods tax	—	(4,664)
Share-based payments	2,218	1,099
Dividend - fully franked	(663)	(663)
Other	(610)	(2,484)
Adjustment for difference between Australian and overseas tax rates	(322)	607
Income tax expense	42,406	34,528

4 Dividends

(a) Ordinary shares

	31 December	31 December
	2023	2022
	$'000	$'000
Interim dividend FY24
Interim dividend - 2024 Interim dividend for the year ended 30 June 2024 of 2.0 cents per share fully franked
(31 December 2022: 2.0 cents per share fully franked) to be paid on 5 April 2024	39,510	36,700
Final dividend FY23
Final dividend for the year ended 30 June 2023 of 2.0 cents per share fully franked (30 June 2022: 3.0 cents
per share fullyfranked) paid on 6 October 2023	36,736	55,029
Total dividend	76,246	91,729

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Resource Assets and Liabilities

This section provides information that is relevant to understanding the composition and management of the Group's assets and liabilities.

5 Property, plant and equipment

		Plant and
	Freehold land	equipment	Total
	$'000	$'000	$'000
At 1 July 2023
Cost	26,474	3,542,637	3,569,111
Accumulated depreciation	—	(1,533,390)	(1,533,390)
Net carryingamount	26,474	2,009,247	2,035,721
Half-Year ended 31 December 2023
Carryingamount at the beginningof the half-year	26,474	2,009,247	2,035,721
Additions	—	150,813	150,813
Amounts acquired in business combinations	46,581	174,425	221,006
Disposals	—	(660)	(660)
Depreciation	—	(80,877)	(80,877)
Exchange differences taken to reserve	(745)	(7,567)	(8,312)
Carryingamount at the end of the half-year	72,310	2,245,381	2,317,691
At 31 December 2023
Cost	72,310	4,208,230	4,280,540
Accumulated depreciation	—	(1,962,849)	(1,962,849)
Net carryingamount	72,310	2,245,381	2,317,691
Included in above		484,893
Assets in the course of construction	—	484,893	484,893

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

6 Leases

This note provides information for leases where the Group is a lessee.

The consolidated balance sheet shows the following amounts relating to leases:

	31 December
	2023	30 June 2023
	$'000	$'000
Right-of-use assets
Plant and Machinery	52,295	53,830
Property	3,220	1,242
Office Equipment	34	108
Total Right-of-use assets	55,549	55,180

	31 December 2023	30 June 2023
	$'000	$'000
Lease Liabilities
Current	23,882	22,523
Non-current	34,407	35,310
Total Lease Liabilities	58,289	57,833

The consolidated statement of profit or loss and other comprehensive income shows the following amounts relating to leases:

	31 December	31 December
	2023	2022
	$'000	$'000
Depreciation charge of right-of-use assets
Plant and Machinery	14,525	6,149
Property	957	685
Office Equipment	75	78
Total depreciation charge of right-of-use assets	15,557	6,912

	31 December	31 December
	2023	2022
	$'000	$'000
Other Items
Interest expense	1,642	286
Total Other Items	1,642	286

The total cash outflow in the current half-year was $15.5 million.

The tables below analyse the Group's lease liabilities into relevant maturity groupings based on their contractual maturities.

	Less than	Between 1	Between 2	Over 5	Total	Carrying
	1 year	and 2 years	and 5 years	years	contractual	amount
	$'000	$'000	$'000	$'000	cash flows	$'000
					$'000
At 31 December 2023
Lease liabilities	25,236	21,027	11,295	3,400	60,958	58,289

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

7 Mine development and exploration

		Exploration and
	Producing mines	evaluation	Total
	$'000	$'000	$'000
At 1 July 2023
Cost	6,110,558	460,910	6,571,468
Accumulated amortisation	(2,848,733)	(5,592)	(2,854,325)
Net carryingamount	3,261,825	455,318	3,717,143
Half-year ended 31 December 2023
Carryingamount at the beginningof the half-year	3,261,825	455,318	3,717,143
Additions	234,540	16,602	251,142
Amounts acquired in business combinations	948,435	—	948,435
Transfers	170	(170)	—
Write-off	(191)	(2,984)	(3,175)
Amortisation	(197,186)	—	(197,186)
Exchange differences taken to reserve	(9,796)	(3,498)	(13,294)
Carryingamount at the end of the half-year	4,237,797	465,268	4,703,065
At 31 December 2023
Cost	8,283,540	470,860	8,754,400
Accumulated amortisation	(4,045,743)	(5,592)	(4,051,335)
Net carryingamount	4,237,797	465,268	4,703,065

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Capital Structure and Financing

This section provides information on the Group's capital and financial management activities.

8 Interest bearing liabilities

	31 December 2023	30 June 2023
	$'000	$'000
Current liabilities
Bank loans	15,000	345,000
Less: Borrowingcosts	(1,591)	(3,727)
Total Current liabilities	13,409	341,273
Non-current liabilities
Bank loans	485,000	300,000
US Private Placements	1,388,889	1,131,222
Less: Borrowingcosts	(10,170)	(9,063)
Total Non-current liabilities	1,863,719	1,422,159

For the Northparkes acquisition, the Group raised a new Term Loan Facility, (“Facility G”), of $200m, under the current Syndicated Facility Agreement. The term of the facility is 5 years with the first repayment due in Q3 of FY25.

The repayment periods, facility size and amounts drawn at 31 December 2023 on each facility are set out below:

Facility Name	Term Date	Facility Size $m	Amount Drawn $m	Available Amount $m
Loan facilities and US Private Placements
RevolvingCredit Facility– FacilityA - $m	12 Oct 2025	$525.0	$0.0	$525.0
Term Loan – FacilityF - $m	22 Aug2027	$300.0	$300.0	$0.0
Term Loan – FacilityG - $m	15 Dec 2028	$200.0	$200.0	$0.0
US Private Placement - USD $m	8 Nov 2028	$200.0	$200.0	$0.0
US Private Placement - USD $m	14 Feb 2031	$200.0	$200.0	$0.0
US Private Placement - USD $m	8 Nov 2031	$350.0	$350.0	$0.0
US Private Placement - USD $m	22 Aug2033	$100.0	$100.0	$0.0
US Private Placement - USD $m	22 Aug2035	$100.0	$100.0	$0.0
Performance Bond and Guarantee Facilities
Performance Bond – FacilityC $m	30 Nov 2024	$220.0	$152.2	$67.8
Performance Bond – FacilityD CAD $m	30 Nov 2024	$125.0	$74.5	$50.5
ANZ Bank Guarantee Facility- $m	31 May2024	$35.0	$0.0	$35.0

(a) Secured liabilities and assets pledged as security

Lease liabilities are effectively secured as the rights to the leased assets recognised in the financial statements revert to the lessor in the event of default.

Recognition and measurement

Interest bearing liabilities are initially recognised at fair value less directly attributable transaction costs incurred and subsequently measured at amortised cost. Gains and losses are recognised in the statement of profit or loss when the liabilities are derecognised.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

9 Equity and reserves

(a) Contributed equity

Movements in ordinary share capital

Ordinary shares are fully-paid and have no par value. They carry one vote per share and the rights to dividends. They bear no special terms or conditions affecting income or capital entitlements of the shareholders and are classified as equity.

	Number of shares	$'000
Balance at 1 July 2022	1,833,007,683	2,644,103
Shares issued under Share Purchase Plan	1,360,692	—
Shares issued under Employee Share Scheme (i)	545,760	—
Shares issued under NED EquityPlan	102,184	—
Balance as at 31 December 2022	1,835,016,319	2,644,103

Balance at 1 July 2023	1,835,016,319	2,644,103
Shares issued on vesting of performance rights	1,717,933	—
Shares issued under Employee Share Scheme	449,616	—
Shares issued under NED Equity Plan	164,767	—
Shares issued under institutionalplacement	138,157,895	514,752
Balance as at 31 December 2023	1,975,506,530	3,158,855

10 Financial assets and financial liabilities

(a) Equity Investments at fair value

	31 December 2023	30 June 2023
	$'000	$'000
Listed securities - Non-current
Tribune Resources Ltd	32,892	35,654
Musgrave Minerals Ltd	—	6,186
Emmerson Resources Ltd	2,899	2,949
Riversgold Ltd	173	236
Other	44	39
Total Listed securities - Non-current	36,008	45,064

Evolution's investment in Musgrave Minerals Ltd was sold during August 2023.

Recognition and measurement

Equity Investments at fair value

Changes in the fair value of equity investments are presented and accumulated in a separate reserve within equity and not through profit or loss. Fair value has been determined based on quoted market prices at balance date (level 1 valuation methodology). On disposal of these equity investments, any related balance within the FVOCI reserve is reclassified to retained earnings. These equity instruments are not held for trading but rather intended to be held over the long-term as strategic investments and the group considers this classification to be more relevant.

(b) Hedging Instrument

	31 December 2023	30 June 2023
	$'000	$'000
Cross currency interest rate swaps
Financial assets - current	—	2,426
Financial assets - non-current	66,153	103,737
Financial liability - current	(6,364)	(1,957)
Financial liability- non-current	(21,556)	(5,955)
Total cross currency interest rate swaps	38,233	98,251

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

10 Financial assets and financial liabilities (continued)

Recognition and measurement

The Group entered into derivative financial instruments (fixed to fixed cross currency interest rate swap contracts) to manage its exposure to foreign exchange rate risk arising from the US private placements. Under the cross currency interest rate swap interest rate contracts (CCIRS), Evolution agrees to exchange the fixed USD and fixed AUD interest amounts calculated on agreed notional principal amounts. Such contracts enable Evolution to mitigate the exposure to cash flow variability arising from changes in foreign exchange rates.

Evolution designates the CCIRS contracts as cash flow hedges. As the critical terms of the CCIRS contracts and their corresponding hedged items are the same, Evolution performs a qualitative assessment of effectiveness and it is expected that the value of the CCIRS contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying foreign exchange rates. The main source of hedge ineffectiveness in these hedge relationships is the effect of the counterparty and Evolution’s own credit risk on the fair value of the CCIRS contracts, which is not reflected in the fair value of the hedged item attributable to the change in foreign exchanges rates.

The following tables details various information regarding CCIRS contracts outstanding at the end of the reporting period and their related hedged items.

Cross currency interest rate swaps	31 December 2023 $'000	30 June 2023 $'000
Notional Amount (USD)
Less than 1 year	—	—
1 to 2 years	—	—
2 to 5 years	200,000	—
5 years +	750,000	950,000
Average FX strike rate	0.7166	0.7166
Average (USD) Interest rate	3.7216 %	3.7216 %
Average(AUD)Interest rate	4.4713 %	4.4713 %

11 Deferred Revenue

	31 December 2023
	$'000
Balance at the date of acquisition	600,000
Finance costs	1,591
Balance at the end of the half-year	601,591
Current	36,411
Non-current	565,180
Balance at the end of the half-year	601,591

On 15 December 2023, the Group completed the acquisition of 80% interest in Northparkes Copper-Gold Mine (“Northparkes”) from CMOC. Refer to note 15 Business Combinations for further details. As part of the acquisition,the Group assumed CMOC’s obligations under the Triple Flag Metal Purchase and Sale Agreement (“Streaming /Arrangement”). As per the initial streaming agreement between CMOC and Triple Flag, CMOC received an upfront cash payment US$550 million. The upfront payment is not repayable, and the Group is obligated to deliver gold and silver based on Northparkes’ production. Under the terms of the agreement, Triple Flag is entitled to:

deliveries of gold equal to 54.0% of payable gold production from Northparkes (67.5% of 80% attributable interest) until 630,000 ounces have been delivered to Triple Flag, and 27.0% of payable gold production thereafter (33.75% of 80% attributable interest).
deliveries of silver equal to 80.0% of payable silver production from Northparkes (100.0% of 80% attributable interest) until 9,000,000 ounces have been delivered to Triple Flag, and 40.0% of payable silver production thereafter (50.0% of 80% attributable interest).

The Group is entitled to ongoing cash payments from Triple Flag equivalent to 10% of the prevailing spot prices for the ounces of gold and silver delivered. At the date of the acquisition, the streaming liability was provisionally fair valued at $600.0 million (US$403.6 million) and accounted for as deferred revenue. Deferred revenue is increased as interest expense is recognised based on the discounting of the cash flows arising from the expected delivery of ounces under the streaming agreement.The amount by which the deferred revenue balance is reduced and recognised into revenue is based on the ounces of gold and silver delivered under the stream, similar to the units-of-production method. No revenue was recognised in the half-year in relation to the stream.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

12 Contingent liabilities and contingent assets

(a) Contingent assets

(i) Contingent consideration receivable

The Group recognised contingent consideration assets that arose from the past business divestments.

(b) Contingent liabilities

The Group had contingent liabilities at 31 December 2023 in respect of:

(i) Claims

At the date of this report the Group was unaware of any material claims, actual or contemplated.

(ii) Guarantees

The Group has provided bank guarantees in favour of various government authorities and service providers with respect to site restoration, contractual obligations and premises at 31 December 2023. The total of these guarantees at 31 December 2023 was $393.9 million with various financial institutions (31 December 2022: $345.1 million).

The Group has $32.0 million in bank guarantees placed on behalf of Navarre Mineral Ltd for environmental bonding purposes with the Queensland government which could be called upon if the mine is closed and does not meet its closure obligations. Evolution has no present obligation at 31 December 2023 while the mine is on care and maintenance while the sale process is ongoing.

(iii) Red Lake

The Group recognised a contingent consideration liability on the purchase consideration of Red Lake of $56.1 million.

13 Gold delivery Commitments

Australia	Gold for physical delivery oz Average contracted sales price $/oz Value of committed sales $'000
At 31 December 2023
Within one year Later than one year but not greater than five years	45,000 3,110 139,950 75,000 3,230 242,250
	120,000 3,185 382,200

At 30 June 2023
Within one year Later than one year but not greater than five years	20,000 3,085 61,700 100,000 3,205 320,500
	120,000 3,185 382,200

Gold delivery commitments relate to forward sales relating to the Mungari 4.2 Project. The counterparties to the physical gold delivery contracts are Australia and New Zealand Banking Group Limited ("ANZ"), National Australia Bank Limited ("NAB"), Westpac Banking Corporation (“WBC”), Commonwealth Bank of Australia ("CBA") and ING Group ("ING"). Contracts are settled on a quarterly basis by the physical delivery of gold per the banks instructions. The contracts are accounted for as sale contracts with revenue recognised once the gold has been delivered to ANZ, NAB, WBC, CBA, ING or one of their agents. The physical gold delivery contracts are considered a contract to sell a non-financial item and is therefore out of the scope of AASB 9 Financial Instruments . As a result no derivatives are required to be recognised. The Company has no other gold sale commitments with respect to its current operations.

14 Events occurring after the reporting period

Refer to note 4 - Dividends for the interim dividend recommended since the end of the reporting period.

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Other Disclosures

This section covers additional financial information and mandatory disclosures.

15 Business Combinations

On 15 December 2023, the Group acquired 80% interest in Northparkes Copper-Gold mine to add another long life asset to its portfolio. Sumitomo Metal Mining and Sumitomo Corporation ("Sumitomo entities") retained their 20% interest in the Northparkes JV. Under the Transaction structure, The Group acquired all the shares in CMOC's Australian subsidiary, CMOC Mining Pty Ltd.

The Group assumed the obligations of CMOC Limited as guarantor under the Triple Flag Metal Purchase and Sale Agreement ("Triple Flag Stream"), under which the Group will deliver a percentage of its attributable gold and silver production from Northparkes to Triple Flag over the operation.

The transaction was funded by a A$525 million fully underwritten institutional placement and a new A$200 million 5-year Term Debt Facility. In addition to the Placement, the Group will also undertake a non-underwritten share purchase plan for Group's eligible retail shareholders which will be used to assist with integration costs related to the Transaction and general working capital which closed on 30 January 2024 and raised $32 million.

Details of the purchase consideration for the net assets acquired are as follows:

	$'000
Purchase consideration
Cash paid on 15 December 2023	603,302
Final working capital adjustment paid on 17th January 2024	32,753
Contingent consideration	28,409
Total	664,464

The Contingent Consideration is based on the following terms:

3-years, commencing 1 July 2024 and ending 30 June 2027 (inclusive)
Annual payments to CMOC based on three incremental pricing thresholds as below:
Threshold 1: 25% of incremental revenue per pound of payable Northparkes copper at prices at or above US$ 4.00 per pound (lb) but less than US$ 4.25 per lb; plus
Threshold 2: 35% of incremental revenue per pound of payable Northparkes copper at prices at or above US$ 4.25 per lb but less than US$ 4.50 per lb; plus
Threshold 3: 45% of incremental revenue per pound of payable Northparkes copper at prices at or above US$ 4.50 per lb.

Total payments under the Contingent Consideration are capped at US$ 75 million. The provisional fair value of the contingent consideration of $28.4 million was estimated by calculating the present value of the future expected cash flows.

Fair values disclosed below as at 31 December 2023 are provisional. The finalisation of the valuation work required to determine the fair values of the assets and liabilities acquired will be completed within 12 months of the acquisition date, at the latest.

	Provisional Fair Values
	$'000
Net assets acquired
Cash and cash equivalents	82,298
Trade and other receivables	48,785
Inventories	65,748
Property, plant and equipment	221,006
Mine development and exploration	948,435
Other non-current assets	336
Rehabilitation provision	(39,475)
Other provisions	(17,955)
Trade and other payables	(44,574)
Other liabilities	(140)
Deferred revenue	(600,000)
Total	664,464

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

15 Business Combinations (continued)

(ii) Outflow of cash to acquire subsidiary

	AUD
	$'000
Outflow of cash to acquire subsidiary
Total purchase price payment paid in cash	603,302
Less: cash acquired	(82,298)
Total outflow of cash	521,004

A final working capital payment of $32.7 million (US$22.0 million) was made on 17th January 2024.

( iii) Acquisition and Integration costs

Acquisition and integration costs of $78.2 million were incurred for Northparkes and included in the statement of profit or loss for the period 31 December 2023. Included in this is $66.0 million of stamp duty costs payable in the March 2024 quarter.

(iv) Revenue and profit contribution

The acquired business contributed revenues of $31.4 million and net profit of $7.2 million to the group for the period 15 December 2023 to 31 December 2023. If the acquisition had occurred on 1 July 2023, consolidated revenue and consolidated profit after tax for the half-year ended 31 December 2023 would have been $1,509.7 million and $114.1 million respectively.

16 Related party transactions

(a) Transaction with related parties

Directors fees were paid to Mr Jason Attew and International Mining & Finance Corp, of which Mr James Askew is a Director. Amounts paid in the current financial period are summarized as follows:

	31 December 2023	31 December 2022
	$	$
Related party transactions
International Mining & Finance Corp	82,672	104,433
Jason Attew	80,000	86,440
Total	162,672	190,873

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

17 Summary of material accounting policies

Basis of preparation

This Condensed Consolidated Interim Financial Report for the half-year ended 31 December 2023 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This Interim Financial Report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the Annual Financial Report for the period ended 30 June 2023 and any public announcements made by Evolution Mining Limited during the half-year ended 31 December 2023 in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Australian Securities Exchange.

The accounting policies adopted are materially consistent with those of the previous Annual Financial Report and corresponding Interim Financial Report in the prior period.

At 31 December 2023, Group had a net current liability of $38.2 million (30 June 2023: $392 million). The Directors of the Group note the following considerations relevant to the Group’s ability to continue as a going concern:

as at 31 December 2023, total available cash and cash equivalents of $191.0 million are held by the Group.
The Group completed the Share Purchase Plan (SPP) subsequent to the period end. A total of 10.3 million new fully paid ordinary shares will be issued at an issue price of $3.0684, raising approximately $32.0 million as set out in note 14 to the Financial Statements.
cash flow forecasts show that the Group will generate sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report.

As a result, the Directors are of the view that the Group will be able to meet its debts as and when they fall due and accordingly the Directors have prepared the condensed consolidated financial statements on a going concern basis.

18 New accounting standards

A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.

Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

19 Significant changes in the current reporting period

No matter or circumstances has occurred during the period that has significantly affected, or may have significantly affect, the operations of the Group, the results of those operations or state of affairs of the Group or economic entity in subsequent financial years except the impacts in relation to acquisition of Northparkes (refer to note 15 Business Combinations for details).

Evolution Mining Limited Directors' Declaration For the half-year ended 31 December 2023

In the Directors' opinion:

(a) the condensed consolidated financial statements and notes set out on pages 13 to 32 are in accordance with the Corporations Act 2001 , including:
(i) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting , the Corporations Regulations 2001 and other mandatory professional reporting requirements, and
(ii) giving a true and fair view of the consolidated entity's financial position as at 31 December 2023 and of its performance for the halfyear ended on that date, and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of Directors.

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Lawrence (Lawrie) Conway

Managing Director and Chief Executive Officer

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Andrea Hall

Non-Executive Director

Sydney

14 February 2024

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Independent auditor's review report to the members of Evolution Mining Limited

Report on the half-year financial report

Conclusion

We have reviewed the half-year financial report of Evolution Mining Limited (the Company) and the entities it controlled during the half-year (together the Group), which comprises the Condensed consolidated balance sheet as at 31 December 2023, the Condensed consolidated statement of changes in equity, Condensed consolidated statement of cash flows and Condensed consolidated statement of profit or loss and other comprehensive income for the half-year ended on that date, material accounting policy information and selected explanatory notes and the directors' declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Evolution Mining Limited does not comply with the Corporations Act 2001 including:

giving a true and fair view of the Group's financial position as at 31 December 2023 and of its performance for the half-year ended on that date
complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor's responsibilities for the review of the half-year financial report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibilities of the directors for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement whether due to fraud or error.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999

Liability limited by a scheme approved under Professional Standards Legislation.

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Auditor's responsibilities for the review of the half-year financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group's financial position as at 31 December 2023 and of its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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PricewaterhouseCoopers

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Brett Entwistle Partner

Sydney 14 February 2024

AI assistant

EVOLUTION MINING LIMITED — Interim / Quarterly Report 2024

64885_rns_2024-02-13_d76af418-7878-40fc-b8f8-565228e23825.pdf

APPENDIX 4D EVOLUTION MINING LIMITED ACN 084 669 036 AND CONTROLLED ENTITIES HALF-YEAR REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

Results for Announcement to the Market

Key Information

Dividend Information

Net Tangible Assets

Earnings Per Share

Directors' Report

Directors

Principal activities

Key highlights

Portfolio

Sustainability

Financials

Operations & Projects

Operations (continued)

Operating and Financial Review

Profit Overview

Profit Overview (Continued)

Cash Flow

Key highlights for the half-year (continued)

Key Results

Mining Operations

Cowal

Ernest Henry

Mining Operations (continued)

Northparkes

Red Lake

Mining Operations (continued)

Mungari

Mt Rawdon

Financial Performance

Profit or Loss

Balance Sheet

Cash Flow

Financial Performance (continued)

Taxation

Capital Investment

Financing

Dividends

Significant changes in the state of affairs

Financial Performance (continued)

Events occurring after the reporting period

Auditor's independence declaration

Rounding of amounts

Auditor’s Independence Declaration

Evolution Mining Limited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2023

Evolution Mining Limited Condensed Consolidated Balance Sheet As at 31 December 2023

Evolution Mining Limited Condensed Consolidated Statement of Cash Flows For the half-year ended 31 December 2023

Contents of the Notes to the Condensed Consolidated Financial Statements

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Business Performance

1 Performance by Mine

(a) Description of segments

(b) Segment information

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

1 Performance by Mine (continued)

Recognition and measurement

2 Revenue and Expenses

Disaggregation of revenue from contracts with customers

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

2 Revenue and Expenses (continued)

Recognition and measurement - revenue from contracts with customers

Recognition and measurement - deferred revenue

Accounting estimates and judgements

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

2 Revenue and Expenses (continued)

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

3 Income tax expense

(a) Income tax expense

(b) Numerical reconciliation of income tax expense to prima facie tax payable

4 Dividends

(a) Ordinary shares

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

Resource Assets and Liabilities

5 Property, plant and equipment

Evolution Mining Limited Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2023 (continued)

6 Leases

EVOLUTION MINING LIMITED Interim / Quarterly Report 2024