Cardinal Health
Annual Report 2022

Plain-text annual report

Evolution Mining — a leading, globally relevant gold miner Formed in November 2011, Evolution has evolved to become a leading, globally relevant gold mining company. We operate five wholly-owned mines in Australia and Canada and in FY22 produced 640,275 ounces of gold at a sector leading low All-in Sustaining Cost (AISC) of $1,259 per ounce: ■ Cowal in New South Wales ■ Ernest Henry and Mt Rawdon in Queensland ■ Mungari in Western Australia ■ Red Lake in Ontario, Canada Our focus on upgrading the quality of our portfolio towards long-life, low-cost, high-margin assets in the safe jurisdictions of Australia and Canada has positioned us well to prosper through all market cycles while generating superior shareholder returns. FY23 Group gold production guidance is 720,000 ounces of gold at an All-in Sustaining Cost of $1,240 per ounce (+/- 5%) and FY24 Group gold production is forecasted to increase to 800,000 ounces at an unchanged All-in Sustaining Cost of $1,240 per ounce (+/- 5%). 11 years of Evolution Together we can become the best gold company in the world 2022 Ernest Henry – acquisition of full ownership delivering an immediate and material increase to cash flow generation and lowering Group AISC by ~$190/oz in FY23 Maiden debt private placement totalling US$550M, and investment grade rating Mt Carlton Divestment Non-core asset for total consideration of up to $90M Mungari – Cornerstone asset 2021 Battle North Acquisition Proximal to Red Lake Unlocking value and extending mine life through acquiring proximal deposits Acquisition of Kundana Operations, EKJV (51%), Carbine Project and WKJV (75%) elevates Mungari to a cornerstone asset Cracow Divestment Lowering Group AISC1,2 by A$20/oz 2020 Red Lake – Cornerstone asset Red Lake Acquisition Unlocking value in an under-capitalised asset with significant mine life 2019 Evolution’s inaugural entry in the Dow Jones Sustainability Index – Australia One of only two gold companies Edna May Divestment Divested due to low margins3 (18%) compared to the rest of the Group (49%), reducing Group AISC by A$50/oz Ernest Henry – Cornerstone asset Ernest Henry Economic Interest Reducing Group AISC by A$100/oz 2017 2016 Evolution enters ASX 100 Marsden Acquisition Strategic acquisition of the nearest known sizeable copper-gold deposit to Cowal Pajingo Divestment Divested due to lack of strategic fit in the portfolio, reducing Group AISC costs by A$15/oz Cowal – Cornerstone asset Cowal Acquisition Reducing Group AISC by A$100/oz and extending portfolio mine life 2015 Mungari Acquisition Reducing Group AISC by A$30/oz and extending portfolio mine life 2013 Mt Carlton produces first concentrate Reducing Group AISC by A$25/oz 2012 2011 Evolution enters ASX 200 1 Cost reductions refer to contribution to Group AISC for a given financial year 2 Based on FY20 performance 3 Based on EBITDA margin Conquest Mining and Catalpa Resources merge to form Evolution Mining November 2011 Evolution Formed 2 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 3 Executive Chair’s report Executive Chair’s report We acknowledge that we as a Company, like the rest of the industry, also have work to do in ensuring the psychological safety for all of our people. For Evolution, in essence this means a workplace where people believe they can speak up and that is inclusive and diverse; where at a minimum, it is free of any form of bullying, prejudice or sexual harassment. We are absolutely committed to this. Our sustainability performance is outlined in detail in the Sustainability Report and I would encourage you to review some of the excellent work we are doing in our local communities and environments. Evolution’s efforts and enhanced reporting in this area has been recognised by key ratings agencies including the Dow Jones Sustainability Index Australia and maintaining our ‘AA’ rating from MSCI. In July 2021 we announced our commitment to reducing greenhouse gas emissions in alignment with the climate change goals of the Paris Agreement. Evolution is committed to reducing our greenhouse gas emissions (Scope 1 and 2) by 30% by 2030; and achieving net zero greenhouse gas emissions by 2050. Our seriousness about reaching these commitments was emphasised by a 7% improvement in our carbon emission intensity per tonne mined in FY22. There is still much more work to do in this area but this is encouraging early progress on this important journey. We are looking at new and innovative ways to reduce our environmental impact and enhance our sustainability performance to achieve our net zero commitment. In this regard, we are fortunate to have identified a truly unique opportunity at Mt Rawdon to create a multi-generational infrastructure asset. Our plan, which is advancing rapidly, is to convert the open pit into a 1-2 gigawatt pumped hydro battery at the conclusion of mining in the coming years. Evolution is working on this opportunity with ICA Partners, which originated the concept some three years ago and will be co-owners of the project. We have commenced engagement with potential offtake partners and have grown increasingly confident of the potential to demonstrate this as both a model mine closure as well as creating significant value for Evolution shareholders. Operationally, in FY22, Evolution produced 640,275 ounces of gold at an All-in Sustaining Cost (AISC) of A$1,259 per ounce (US$914/oz) which remains in the lowest quartile. This translated into an EBITDA margin of 44% and the second highest statutory net profit after tax in our history of A$323.3 million, a 6.4% decrease on the record prior year. Operating mine cash flow totalled A$893.3 million before total capital investment of A$606.4 million. This enabled us to return $146.6 million to our shareholders through our 18th and 19th consecutive dividends at the half-year and full-year financial results respectively. During the period we acquired the balance of Ernest Henry from Glencore which, in time, could become one of the most important transactions in Evolution’s history. Ernest Henry is a world-class asset in Australia and one which we already knew extremely well thanks to our successful investment in the asset in 2016. On behalf of the Board of Directors of Evolution Mining Limited, it is my pleasure to present you with the Company’s 2022 Annual Report. This incorporates our Sustainability Report which supports our objective to deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way. Since we formed Evolution in 2011 we have had a consistent strategy built around the pillars of assembling a great team, focusing exclusively on the Tier One jurisdictions of Australia and Canada, operating a concentrated portfolio of high-quality assets in well- endowed, geologically prospective gold districts and continually seeking opportunities to improve the quality of our portfolio. We continued to stay true to our strategy in FY22 and completed three transactions which I believe have delivered a step change to the quality of our asset portfolio. At the same time, the period was also extremely challenging and we fell short on the operational delivery which we pride ourselves on. We have learnt lessons and made changes within our business to return to our high standards. At Evolution we are driven to provide a workplace where our people are safe and healthy. This relies on the commitment, leadership, teamwork, engagement and involvement of our entire workforce. Increased reporting and field leadership have been a major focus in FY22 which saw overall health and safety improve across the Group. The total recordable injury frequency (TRIF) was 10.66 (including six months of full ownership of Ernest Henry) as at 30 June 2022. We will make every effort to keep improving our safety performance. The acquisition delivered an immediate and substantial increase in cash flow generation, lowered our AISC and has clear growth potential. Subsequent to the end of the period, in August 2022, we were very pleased to release an updated Mineral Resource estimate for Ernest Henry that captured 119 new drill holes and resulted in a 28% increase in the contained copper to 1.13 million tonnes and a 24% increase in contained gold to just over 2 million ounces. The upgrade will form part of a study into a mine life extension due for completion in December 2022 and gives us high confidence in this future of this cornerstone asset. Our second major acquisition of the period related to the consolidation of the Mungari district through the acquisition of Kundana and the East Kundana Joint Venture interest owned by Northern Star Resources. This transaction resulted in Evolution becoming one of the largest tenement holders in the Kalgoorlie region. The Kundana assets are located close to our Mungari processing infrastructure which will give us the opportunity to capture valuable synergies and improve both operational flexibility and longevity of Mungari. We also further upgraded the quality of our portfolio through the sale of Mt Carlton to Navarre Minerals. Total consideration for the sale is up to $90 million with the sale closing in December 2021. Mt Carlton was Evolution’s first development project and we appreciate the contribution of its employees, contractors, suppliers, the traditional custodians of the land the Birriah People, and the local community to its success. Within our portfolio we have several important growth projects underway or under consideration. I have already mentioned the mine life extension study underway at Ernest Henry and we are also completing a Feasibility Study into a potential plant expansion at Mungari which will be considered when cost inflation and labour market conditions in Western Australia stabilise. At Red Lake, we continue to make progress with the transformation underway. Key physical metrics including production and grade having improved over the year and are now at the rates required to deliver the site FY23 production guidance of 160,000 ounces. This is being achieved through efficiencies on the mining side, optimisation on the processing side and the huge effort of our people. We have a clear pathway to achieving the goal of 300,000 ounces per annum, thus restoring Red Lake to a premier long-life, low-cost Canadian gold mine. Yours faithfully JAKE KLEIN EXECUTIVE CHAIR 4 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 5 1 Using the average AUD:USD exchange rate of 0.7258 for the 12 months of FY22 Contents Contents Contents FY22 achievements Operations Discovery Mineral Resources and Ore Reserves FY22 Sustainability Report Chief Financial Officer’s review Board of Directors Annual Financial Report Shareholder information Corporate information 8 17 26 36 44 137 139 142 240 242 This report has been authorised for release by the Evolution Board of Directors Forward looking statements This report prepared by Evolution Mining Limited (or “the Company”) includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. All amounts are expressed in Australian dollars unless stated otherwise. 6 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 7 FY22 achievements FY22 achievements Operational & financial Portfolio transformation Sustainability 640,275oz Gold production AISC $1,259/oz1 (US$914/oz)2 Among the lowest cost gold producers in the world $893M Operating mine cash flow $323.3M Statutory net profit after tax 44% Strong EBITDA margin $146.6M Payout in fully franked dividends 2 major growth projects in execution, and five further growth studies underway US$550M Maiden debt private placement and investment grade rating Acquisition of 100% of Ernest Henry Cementing Evolution’s position as one of the lowest cost gold producers in the world Acquisition of Kundana assets3 Elevating Mungari to Evolution’s fourth cornerstone asset Mt Carlton divestment Non-core asset 34% Decrease in Injury Severity year-on-year due to risk reduction activities 84% Increase in Hazard reporting year-on-year 42% Reduction in freshwater demand per tonne milled (compared to FY20 baseline) 7% Reduction in emissions intensity per tonne of material mined compared to FY20 baseline 30% Female graduate hires in the workplace at the end of FY22 72% Local employment across our operations $2.03B Contribution to the Australian and Canadian economies $164M Contribution to local and regional businesses and organisations4 including $133M Direct spend with local organisations – a 32% increase year-on-year Mineral Resources and Ore Reserves 12% Increase in Gold Mineral Resource year-on-year5 63% Increase in Copper Mineral Resource year-on-year5 27% Increase in Ore Reserve year-on-year 5% Increase in Gold Ore Reserve year-on-year 1 All-in Sustaining Cost includes C1 cash cost, plus royalties, sustaining capital, general corporate and administration expenses on a per ounce sold basis. Excludes Mt Carlton from 1 October 2021 due to divestment, and includes 100% ownership of Ernest Henry from 1 January 2022 2 Calculated using an average AUD:USD exchange rate of 0.7258 for FY22 3 Kundana Assets represent 100% interest in the Kundana Operations; a 51% interest in the East Kundana Joint Venture; a 100% interest in certain tenements comprising the Carbine Project; and a 75% interest in the West Kundana Joint Venture 4 Local and regional organisations are defined by postcode in relation to geographical proximity to Evolution mine sites 5 Excludes the 30 June 2022 Mineral Resource update at Ernest Henry FY22 achievements Sustainability objective To deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way Values driven culture Our values guide our behaviours and the decisions we make in the workplace every day Company vision Inspired people creating a premier global gold company Consistent corporate strategy founded on: ß A business that prospers through the cycle ß Create sustainable value for stakeholders in an environmentally and socially responsible way ß High performing culture with values and reputation as non-negotiables ß Willing to take appropriate geological, operational and financial risks ß A portfolio of up to 8 assets in Tier 1 jurisdictions generating superior returns ß Financial discipline around margin and appropriate capital returns Safety Think before we act, every job, every day Excellence We take pride in our work, deliver our best and always strive to improve Accountability It is my responsibility, I own it – good or bad Respect We trust each other, act honestly and consider each other’s opinions 8 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 9 FY22 achievements FY22 achievements Progress on the execution of our growth strategy at our four cornerstone assets FY22 FY23 OBJECTIVE Cowal ■ Underground Mine development ■ Integrated Waste Landform construction ■ Commenced mining ore at Stage H Ernest Henry ■ Full ownership acquired - exceptional returns delivered ■ Material increase to Mineral Resource ■ Mine Extension Pre-feasibility Study progressing Red Lake ■ Continued mining operational transformation ■ Resources and Reserves expansion ■ Campbell, Young And Dickenson (CYD) Decline development ■ Processing optimisation - record throughput at Campbell and Red Lake plants Mungari ■ Acquired and integrated Kundana assets – district consolidation, resources more than doubled, higher grade ore ■ Cowal Underground completion FY23 ■ Open Pit Continuation Feasibility Study due FY23 320kozpa low-cost production outlook in FY24 and longer term goal of 350kozpa ■ Updated Ore Reserve ■ Mine Extension Pre-feasibility Study due FY23 Mine life extension beyond FY26 ■ Continued mining operational transformation ■ Production from new high-grade mining front at Upper Campbell ■ Mill Optimisation Study 200koz production outlook in FY24 and longer term goal of 300kozpa+ low-cost production ■ Plant Expansion Feasibility Study by December 2022 Opportunity for 200kozpa production through plant expansion 10 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 11 FY22 achievements FY22 achievements Key performance metrics since inception Gold production (koz) Ore Reserve growth since inception (Moz) 4 4 8 3 0 8 1 0 8 3 5 7 0 2 7 0 0 8 9 1 7 1 8 6 0 4 6 3 9 3 8 2 4 8 3 4 0 8 2 9 9 . . 3 0 1 0 7 . 0 7 . 5 7 . 6 6 . 9 5 . 1 . 3 4 2 . 2 2 . 2 1 Y F 3 1 Y F 4 1 Y F 5 1 Y F 6 1 Y F 7 1 Y F 8 1 Y F 9 1 Y F 0 2 Y F 1 2 Y F 2 2 Y F 1 3 2 Y F 1 4 2 Y F 2 1 c e D 3 1 c e D 4 1 c e D 5 1 c e D 6 1 c e D 7 1 c e D 8 1 c e D 9 1 c e D 0 2 c e D 1 2 c e D Reserve life2 (years) Cumulative dividends declared ($M) (pre-dividend reinvestment plan) . 5 9 . 3 6 1 . 5 . 7 9 . 2 8 4 8 . . 7 9 0 9 . . 9 5 1 . 0 4 1 3 5 0 , 1 3 4 9 2 3 7 9 5 4 8 9 2 1 7 1 7 1 2 3 4 7 8 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 3 1 Y F 4 1 Y F 5 1 Y F 6 1 Y F 7 1 Y F 8 1 Y F 9 1 Y F 0 2 Y F 1 2 Y F 2 2 Y F 1 Denotes production guidance and outlook published 27 June 2022 (+/-5%) 2 Reserve life is total gold Ore Reserves divided by Group production (calendar year used for production) 12 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 13 FY22 achievements FY22 achievements Progress on our Net Zero strategy Key FY22 achievements toward our Net Zero commitments of 30% emissions reduction target by 2030 and Net Zero by 2050 included: Building a reputation for quality and transparency in the reporting of our Sustainability performance ■ Emissions baseline and forecast validated ■ Value chain emissions map developed ■ Climate scenario analysis for energy and emissions and water security modelled at Cowal ■ High-level site decarbonisation roadmaps developed ■ Scoping and feasibility studies conducted on electric vehicle use at sites ■ 7% reduction in emissions intensity per tonne mined (compared to FY20 baseline) We proactively participate in a range of Sustainability surveys to help inform understanding and improve our Sustainability performance. Our Environmental, Social and Governance rating recognition over the past 12 months includes: Phase 1 Phase 2 Phase 3 TRANSITION TO 100% RENEWABLE ENERGY (~2/3 of current emissions are Scope 2) Target >30% renewables Wind, solar energy sources New storage technologies Develop value chain partnerships Target greater % of renewables Green hydrogen Further develop value chain partnerships Leverage disruptive technologies (not required to achieve 100%) Optimise value chain partnerships ELECTRIFICATION OF FLEET & EQUIPMENT (~1/3 of current emissions are Scope 1) Energy effi ciency initiatives/ low emission technologies Further leverage disruptive technology Electric material movement (BEV & FCEV) Green hydrogen Mine-of-the future design Electrifi ed underground operations BIODIVERSITY INVESTMENT & MANAGEMENT Explore/invest off set and biodiversity management options Alignment to Task Force on Nature-Related Financial Disclosures Verifi ed and assured biodiversity off sets r e v e L n o i t c u d e R s n o i s s i m E ) % 0 7 ~ ( y g r e n e e l b a w e n e R ) % 0 2 ~ ( n o i t a c fi i r t c e l E ) % 0 1 ~ ( t n e m e g a n a m y t i s r e v i d o B i Inclusion in the 2021 Dow Jones Sustainability Index Australia (one of only three gold companies) – a score of 53 was achieved, a 4% increase from FY21 (industry average of 34) A high rating of ‘AA’ (on a scale of AAA-CCC) by Morgan Stanley Capital International (MSCI) – scoring 5.9 compared to the industry average of 4.7. Placed among the top five industry leaders for Labor Management, Anticompetitive Practices and Business Ethics & Fraud Improved ESG Risk Rating from ’40.2’ in FY21 to ’29.2’ in FY22 and ranked 24 out of 123 companies in the precious metals industry and 19 out of 96 in the gold subindustry in Sustainalytics’ 2021 ESG ratings ISS ESG ratings: improved ESG scores including a Level 1 (highest) for Environment and Level 2 for Social Australasian Reporting Awards: Silver and Bronze for Evolution’s Annual and Sustainability Reports 2021 Winner of the 2022 NSW Minerals Council Health, Safety, Environment and Community Excellence Award Now 2030 2040 30% reduction target 2050 Net Zero target 14 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 15 Chief Operating Officer’s review The 12 months of FY22 was one of the busiest and most exciting periods of Evolution’s history. I’d like to start by recognising our people, who continue to demonstrate their tenacity and dedication to our pursuit of being a premier global gold company. On top of the day to day running our operations, we also completed three transformative deals in the period which have enhanced our portfolio and future growth options. The quantum of additional work that goes into the pre-transaction due diligence and post-deal integration is extensive and without our people, these transactions would not have been possible. With the Kundana and Ernest Henry transactions, we now have five substantial growth projects across our assets in varying stages of maturity: Red Lake CYD Decline, Cowal Open Pit Continuation (OPC) Feasibility Study, Mungari Plant Expansion Feasibility Study, Ernest Henry Mine Extension Pre-Feasibility Study and the Mt Rawdon Pumped Hydro. These projects are vital to the future of our business and require a constant focus to ensure they are delivering the best outcomes. In November 2021 my team was expanded to include a General Manager – Projects to provide cover for these important growth options. Operations We are committed to an improved health and safety performance with a heavy focus on leading indicators, increased reporting, field leadership, action closure discipline and high-quality safety interactions. This focus saw overall improvements in these leading indicators across the Group, with delivery on or better than target. The total recordable injury frequency (TRIF) was 10.66 (including six months at Ernest Henry) at 30 June 2022. Mungari showed significant improvement throughout the year, reducing their TRIF by 60% from 30 June 2021 through increased leader time in field. Our people demonstrated resilience and strong risk management through the COVID-19 pandemic. Operations were maintained, supported by protocols developed to minimise risks to our people and communities that allowed safe production during this challenging time. Notwithstanding these measures, regulatory isolation requirements resulted in high levels of COVID-19 related absenteeism across many of our sites which adversely impacted performance during the year. We continued to assist our local communities impacted by the pandemic by providing direct and indirect support, contributing over $2.5 million since the pandemic began. Sustainability performance remains a prerequisite to our success as a business, and year by year becomes an increasingly important element of our social licence. In FY22, we continued to focus on addressing greenhouse gas emissions by assessing initiatives to improve energy efficiency and to identify lower-carbon energy sources. Each operation developed a high-level decarbonisation roadmap with a near-term focus on renewables, medium- term focus on investing in low emission technologies and longer-term focus on biodiversity management. We also continued to collaborate with industry partners to develop technological solutions for emissions reductions through groups such as the Electric Mine Consortium. On the production front, we finished FY22 with 640,275 ounces produced at an AISC of $1,259 per ounce (US$914/oz). Production was below guidance, driven largely by the slower ramp up at Red Lake and weather and geotechnical challenges at Mt Rawdon. Excluding these, the other sites delivered to within 5% of their plans despite impacts from COVID-19, La Nina and inflationary effects faced during the year. We have learned a lot from Red Lake’s performance and their FY23 plan has been geared towards delivery. We have built and fostered a culture where our people ‘Act Like an Owner’ (ALO) by treating Evolution as if it is their own business. In FY22, 97 Group ALO initiatives were approved that delivered significant value for the business through change, improved safety, innovation, cost reductions and efficiency gains. On a related note, our Data Enabled Business Improvement (DEBI) innovation program also saw huge success in FY22 with over $32 million in value added to the business versus a target of $21 million. We have lifted the FY23 target back up to A$40 million and look forward to seeing what initiatives Ernest Henry and a consolidated Mungari will bring. 16 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 17 Operations Operations Operations Cowal The Cowal operation is a world-class open pit gold operation located 350km west of Sydney and operated by Evolution since July 2015. It is situated within the Bland Shire on the traditional lands of the Wiradjuri People. The operation also works closely with the Lachlan and Forbes Shires. Cowal was the highest gold producer in the Group, achieving 227,105 ounces of gold produced at an AISC of $1,245 per ounce. Production was within 5% of guidance, despite significant impacts from COVID-19 and significant weather events affecting the mining plan. Operating mine cash flow was $247.4 million, sustaining capital was $30.9 million and major capital was $229.9 million in line with supporting the operation’s growth plans. Capital expenditure in FY22 consisted of investment in major projects including Underground Mine Development, construction of the Integrated Waste Landform (IWL) tailings facility, and Stage H mine development. Gold production in FY23 is guided to increase to 275,000 ounces at an AISC of $1,250 per ounce (+/- 5%) and production is forecast to increase to 320,000 ounces in FY24 as underground production ramps up. The development of the Cowal Underground Mine with a planned capital investment of $380 million is progressing well and is on budget and schedule for critical path activity, with cost inflation absorbed within the project contingency. All material contracts have now been executed. Approximately 6,450 metres of underground development has been completed to 30 June 2022 and first production ore is on schedule for the June 2023 quarter. The development of the Underground Mine will enable Cowal’s production to grow to a goal of 350,000 ounces of low-cost gold a year and extend its mine life to 2040, while injecting significant economic benefit for all stakeholders. The Underground Mine will provide a higher-grade ore source that will be blended with the current E42 open pit and stockpile ore. We are in the early stages of developing a proposed extension of the current open pit plan, referred to as the Open Pit Continuation (OPC) Project. The OPC Project will extend the current approved mining operations by two years (from 2040 until 2042). Visit our website for regular updates about the OPC Project, as it progresses through the environmental impact assessment. https://evolutionmining.com.au/cowal/ Note: All metal production is reported as payable In terms of building our team, we are proud that our graduate program received a record of more than 1,200 applications for 31 positions in Australia and Canada. We were overwhelmed by the exceptional energy, talent and capacity of the individuals who applied in what is now the eighth year of this important program. We know we are developing the future leaders of our business and our industry. Looking ahead, the upgrades made to our portfolio in FY22, together with the growth projects and studies underway, provide us with a strong outlook. In the next few years, our production is planned to increase by around 25% while maintaining a very low-cost position. In FY23, production is forecast to increase by 12.5% to around 720,000 ounces and increase by a further 11% to around 800,000 ounces in FY24. All-in Sustaining Cost (AISC) is expected to be maintained at around A$1,240 per ounce in FY23 and FY24. Our focus in FY23 will remain on what matters the most: keeping our people healthy and safe, strengthening our values driven culture, and reliably delivering to plan. The activity in FY22 has positioned us well with a quality portfolio of low- cost, long-life assets with immense opportunity for growth. I am excited for what the future brings for Evolution and our people as we continue to elevate our business in pursuit of our vision and strategy Yours faithfully BOB FULKER CHIEF OPERATING OFFICER Ernest Henry Queensland Mt. Rawdon Queensland Mungari Western Australia Cowal New South Wales Red Lake Canada 18 Annual Report | www.evolutionmining.com.au Annual Report | evolutionmining.com 19 Operations Operations Red Lake The Red Lake operation is an underground gold mine in north-western Ontario and is situated in one of the highest-grade Archean gold camps in Canada, on the traditional lands of the Wabauskang and Lac Seul First Nation Peoples. Acquired in April 2020, an operational transformation plan is underway to restore Red Lake to a premier Canadian gold mine with a production goal of greater than 300,000 low-cost ounces per annum. The Red Lake operation post transformation will consist of the Red Lake, Campbell, Cochenour and McFinley mining areas that will provide ore to the Campbell, Red Lake and Bateman mills. A Mill Optimisation Study is currently underway to determine the most value-accretive use of our processing facilities. In our second year of ownership, Red Lake produced 115,276 ounces of gold at an AISC of $2,519 per ounce. FY22 performance was below plan largely due to COVID-19 related absenteeism and procurement delays. Performance improved progressively throughout the year with positive quarterly trends on underground development metres, ore mined, grade, ore haulage and tonnes processed, and the operation is now operating at the run rates required for FY23 production guidance. Operating mine cash flow was $35.2 million, sustaining capital was $45.8 million and major capital was $153.4 million in line with supporting the operation’s transformation and growth plans. Production is planned to increase by approximately 65% over next two years with FY23 production to increase by 35% to approximately 160,000 ounces and FY24 production to increase by a further 25% to approximately 200,000 ounces (+/- 5%). FY23 AISC is guided at $1,880 per ounce (+/- 5%). Notable milestones achieved in FY22 include: ■ Development metres consistently above the 1,200m per month target ■ Continued improvements in drill and blast performance including a significant increase in production drilling driving increased drill stocks and improved stope turnover rates ■ First ore mined from the higher grade MMTP and Aviation zones ■ CYD decline development nearing completion – provides independent access to the Upper Campbell and HG Young ore bodies where 16 million tonnes at 9.4g/t gold for 4.8 million ounces of Red Lake’s 53.6 million tonnes at 6.8g/t gold for 11.7 million-ounce Mineral Resource estimate is situated ■ Record throughput performance at Campbell and Red Lake process plants in March processing 90,000 tonnes which is the highest throughput achieved in the history of the operation. The Campbell mill achieved a record 2,163tpd during the mill expansion trial period1. ■ Commissioned first underground battery electric loader and the mining control room which will drive operational efficiency improvements ■ Commissioned new locomotives for the High Speed Tram which has enabled a significant increase in ore haulage from Cochenour to Reid shaft 1 Permission granted for the daily throughput restriction of 2,000tpd to be lifted for a limited trial in the June 2022 half-year to support the Campbell mill expansion The Mine Extension Pre-feasibility Study from the 1,125RL to 775RL is progressing well and due for completion by December 2022. The study will benefit from the results of the current surface drilling programs targeting the ore body at a more optimal angle, and the updated Mineral Resource estimate at 30 June 2022, which resulted in a material increase (~24%) in the reported Mineral Resource to 88.3 million tonnes at 1.28% copper and 0.73g/t gold. Ernest Henry The Ernest Henry copper-gold operation is a large-scale, long-life asset located 38km north-east of Cloncurry, Queensland on the traditional lands of the Mitakoodi people. The operation commenced as an open pit mine in 1998 and transitioned to underground mining in 2011. The operation employs a low-cost and highly efficient sub- level caving ore extraction method. On 6 January 2022, we acquired a transformational 100% ownership of Ernest Henry (economic effective date 1 January 2022) resulting in a material uplift in production and cash flow from this asset in FY22. Gold production in FY22 was 84,145 ounces at a record low AISC of negative $1,680 per ounce driven by the increased copper production in H2 FY22 following 100% ownership. Operating mine cash flow was $474.2 million, sustaining capital was $28.0 million and major projects capital was $10.8 million. FY23 production is planned to be approximately 82,000 ounces of gold and 55,000 tonnes of copper at an AISC of negative $2,600 (+/- 5%). 20 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 21 Operations Operations An operational transformation plan is underway to restore Red Lake to a premier Canadian gold mine with a production goal of greater than 300,000 low-cost ounces per annum Reid and Campbell shafts, Red Lake, Ontario, Canada. Image capturing the Northern Lights. Mungari The Mungari operation is located 600km east of Perth and 20km west of Kalgoorlie in Western Australia. There are currently two registered native title claims over the majority of the Mungari tenements – the Maduwongga People and the Marlinyu Ghoorlie People. Our local communities are Coolgardie and Kalgoorlie. The acquisition of a portfolio of high-grade underground mines (Kundana assets) within 8km of Mungari’s plant elevated Mungari to our fourth cornerstone asset, creating a pathway to production of 200,000 ounces per annum. Mungari now consists of three operating underground mines, an open pit and a 2 million tonne per annum plant. The integration of the Kundana assets is well underway to create “One Mungari” with standardised systems and processes, and the sharing of equipment and workforce across what were previously three separately run operations. Cost reductions are continuing through site synergies and contract consolidations which will continue through FY23. Mungari contributed 138,035 ounces to the Group’s overall gold production, a 19% increase on FY21, at an average AISC of $1,931 per ounce. Operating mine cash flow was $84.8 million, sustaining capital was $30.3 million and major projects capital was $41.8 million. Mungari achieved throughput of 1,861,000 tonnes at an average grade of 2.77g/t gold with gold recoveries of 91.2%. Gold production of approximately 127,500 ounces (+/- 5%) is planned in FY23 and FY24. FY23 AISC is guided at $2,040 per ounce (+/- 5%). The Plant Expansion Feasibility Study currently underway will provide the option to grow to grow to a 4.2 million tonne per annum processing capacity and the pathway to 200,000 ounces per annum, subject to and is due for completion in December 2022. Gold bars from Mungari ore being stamped 22 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 23 Operations Operations FY23 guidance and FY24 outlook Group production for FY23 is guided to increase 12% on FY22 to 720,000 ounces (+/- 5%) and the outlook for FY24 is expected to increase a further 11% to 800,000 ounces (+/- 5%). This will deliver a total increase of 25% over the two years. The FY23 AISC guidance and FY24 AISC outlook is expected to be approximately $1,240 per ounce (+/- 5%) (~US$870/oz), continuing to place Evolution as one of the lowest cost, global gold producers. Sustaining capital is guided to be approximately $190 – $240 million in FY23 with the same outlook for FY24. Capital in FY23 includes fleet replacement at Ernest Henry given the confidence of a mine life extension. The main driver to the change to the FY24 outlook is at Cowal, due to higher underground mine development rates linked to the latest mine plan. The guidance for FY23 major capital remains unchanged at $530 – $600 million while the outlook for FY24 has been lowered to $330 – $380 million. The majority of this capital is for development of the Cowal Underground mine; the transformation of Red Lake; and progressing studies on growth opportunities at Cowal Open Pits, Ernest Henry Extension, and Plant Expansion at Mungari. The guidance and outlook for both sustaining and major capital is also being impacted by some investment in FY22 being deferred or delayed into FY23. For further information on Production Targets and Forecast Financials, refer to the ASX release titled “Business Update” dated 27 June 2022 available to view at www.evolutionmining.com.au. The Company confirms that all material assumptions underpinning the production targets and forecast financial information derived from the production targets in the 27 June 2022 release continue to apply and have not materially changed. FY23 guidance Group Cowal Ernest Henry Red Lake Mungari Mt Rawdon Corporate FY24 outlook Group Cowal Ernest Henry Red Lake Mungari Mt Rawdon Gold production (oz) (+/- 5%) AISC1 ($/oz) (+/- 5%) Sustaining capital ($M) Major capital ($M) 720,000 275,000 82,500 160,000 127,500 75,000 1,240 1,250 (2,600) 1,880 2,040 1,950 190 – 240 40 – 50 65 – 80 50 – 60 30 – 40 5 – 7.5 0 – 2.5 Gold production (oz) (+/- 5%) AISC1 ($/oz) (+/- 5%) Sustaining capital ($M)  1,240 190 – 240 800,000 320,000 80,000 200,000 125,000 75,000 530 – 600 325 – 360 35 – 45 130 – 150 40 – 45 Major capital ($M) 330 – 380  (1) AISC is based on Gold price of $2,400/oz (royalties) and Copper price of $12,500/t (By-product credits) Mt Rawdon The Mt Rawdon Operation is located 75km south-west of Bundaberg, Queensland and is surrounded by the traditional lands of the Byellee, Gooreng Gooreng, Gurang and Taribelang Bunda people who make up the Port Curtis Coral Coast Native Title Group. Our local communities are Mt Perry, Gin Gin, Biggenden and Gayndah. Evolution has owned and operated Mt Rawdon since November 2011. Mt Rawdon produced 60,004 ounces of gold at an AISC of $1,782 per ounce in FY22. The production result was lower than plan with extreme weather events creating operational challenges due to instability in the North Wall during the March quarter. Processing throughput was strong but production was impacted due to processing of low grade stockpiles whilst the wall issues were being managed. Access to higher grade ore was re-established in the June 2022 quarter. Operating mine cash flow was $39.8 million, sustaining capital was $8.3 million and major projects capital was $22.6 million. Gold production is planned to be approximately 75,000 ounces (+/- 5%) in FY23 and FY24. FY23 AISC is guided at $1,950 per ounce (+/- 5%). Evolution is progressing a Feasibility Study into the Mt Rawdon Pumped Hydro (MRPH) Project, which is reviewing the conversion of the existing open pit into a 1-2GW pumped hydro project post mine life. The Feasibility Study is being completed with our partner, Ironstone Capital Australia, and is due for completion in June 2023. Evolution will retain a 50% share of the MRPH Project if the project proceeds. The MRPH Project is currently planned to be commissioned in 2028 and will support the Queensland government’s target of achieving 50% renewable energy by 2030 as well as the Federal government’s 43% 2030 emissions reduction target. The project also delivers on our social responsibility commitment of leaving a positive legacy for the communities in which we operate beyond the life of the mine. Mt Carlton Mt Carlton was divested effective from 1 October 2021. For the three months under the Group’s ownership, Mt Carlton produced a total of 15,710 ounces at an AISC of $1,823 per ounce. Mine operating cash flow was $11.8 million. Net mine cash flow was $8.2 million, generated post sustaining capital of $2.7 million and major capital of $1.0 million. 24 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 25         Discovery Discovery Discovery Discovery "We have a world-class exploration team and have acquired assets in highly endowed gold districts" We are committed to organic growth by the discovery of new gold deposits at our existing operations and across our portfolio of greenfield exploration projects. We focus on safely and responsibly finding new deposits that have the potential to deliver long-life, low-cost mines that improve the quality of our portfolio. We have a world-class exploration team and have acquired assets in highly endowed gold districts. Our Discovery group had another outstanding 12 months in FY22. This year we brought several projects to decision points (Connors Arc, Murchison, E39) and took over direct management of the rapidly progressing Cue Joint Venture Earn-In. We also staked a large (>750 km2) new greenfields tenement package in Ontario, Canada called Lake St. Joseph about 200km east of Red Lake. We continued to invest significantly in the technical development of our people and provided opportunities for them to upskill and gain experience across our diverse portfolio. Our Discovery strategy is simple. We focus on safely and responsibly finding new deposits that have the potential to deliver long-life, low-cost mines that improve the quality of our portfolio. We focus exploration for epithermal and greenstone gold mineralisation because we believe we have the right combination of skills and expertise to discover these types of deposits. However, we are also willing to consider other mineralisation styles if we believe they can deliver high quality opportunities that improve overall portfolio quality. Our area selection and project evaluation methodologies consider the following technical characteristics to help rank and prioritise where we are willing to go: ■ Key mineral systems elements such as geologic architecture, fluid and metal sources, and the drivers and traps capable of producing world-class gold deposits ■ Footprint scales demonstrating size and grade potential for an Evolution-scale mining operation. Distribution patterns of low-level gold, pathfinder elements and alteration mineral associations that demonstrate evidence of large hydrothermal systems always rank highly ■ Navigating to gold using the right data layers to enable determination of where we are in a system and to vector to gold quickly and effectively. We believe strongly in integrating geological observations with project-wide multi-element geochemistry, airborne and handheld spectral analysis and fit-for-purpose geophysical techniques It is critical to definitively test the best targets early. Clear program objectives and results that inform technical and, in some cases, good judgment calls to persist with a target or alternatively to walk away, are vital to our strategy We hold highly prospective tenements in New South Wales, Queensland, Western Australia and Ontario, Canada. At the end of FY22, our Discovery team was exploring approximately 6,447km2 of granted tenements and mining leases with applications for 97km2 pending. These tenements are either 100% owned by Evolution or subject to earn-in or joint venture agreements. Total expenditure for FY22 was $58.8 million. A total of 140km of drilling was completed across the Group. Drilling expenditure in FY23 is guided to be approximately $60-$65 million. In FY23, approximately 72% of our discovery investment will be directed to resource growth and to deliver new discoveries near our operating mines. 26 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 27 Analysing RC sample spoils using an ASD Terraspec Halo mineral analyser Discovery Discovery Mineral Resource growth since inception (Moz)1 Ore Reserve growth since inception (Moz) Cost of adding Mineral Resources $35-40/oz . 2 4 1 . 2 4 1 4 1 . 7 4 1 . 2 5 1 . 8 6 4 5 . 5 . 6 9 4 2 6 2 . Cost of adding Ore Reserves $50-55/oz 0 7 . 9 5 . 1 . 3 4 2 . 2 2 . 5 0 7 7 . . . 3 0 1 9 9 . 6 6 . Cowal We have grown the Mineral Resources and Ore Reserves of the world class Cowal orebody since acquisition in 2015 by 6.2 million ounces and 3.0 million ounces respectively11. The Cowal Mineral Resource is now estimated at 305.3 million tonnes at 0.98g/t gold for 9.62 million ounces and the Ore Reserve is estimated at 138 million tonnes at 1.03g/t gold for 4.59 million ounces. Further growth opportunities include extensions to the Cowal Underground and expansion of the E42 pit and satellite pits. FY22 drilling resulted in the refinement of the geological interpretation of the Dalwhinnie, Galway and Endeavour zones within the GRE46 underground orebody. The Cowal Underground Mineral Resource is now estimated at 35.7 million tonnes at 2.41g/t gold for 2.77 million ounces and Reserves are estimated at 14.4 million tonnes at 2.31g/t gold for 1.07 million ounces. Underground diamond drilling ahead of pre-production infill drilling was undertaken to build grade-controlled stopes for early years of the underground production schedule at GRE46. Drilling focused on the Galway and upper Dalwhinnie zones. Surface diamond drilling to support geotechnical and metallurgical Ore studies into open pit extensions around the E42 open pit was conducted. Early-stage exploration continued at E39 located 5km south of E42. The drilling targeted porphyry copper style mineralisation and returned strongly anomalous copper intervals over variable widths. A last round of drilling is being planned to test two remaining areas where there is sufficient space to host the scale of intrusive system that would be required to deliver an economic success albeit at higher grades than have been encountered to date. 2 1 c e D 3 1 c e D 4 1 c e D 5 1 c e D 6 1 c e D 7 1 c e D 8 1 c e D 9 1 c e D 0 2 c e D 1 2 c e D 2 1 c e D 3 1 c e D 4 1 c e D 5 1 c e D 6 1 c e D 7 1 c e D 8 1 c e D 9 1 c e D 0 2 c e D 1 2 c e D 1 The Group Gold Mineral Resources are reported as at 31 December 2021 and therefore exclude an additional 405koz in the interim Ernest Henry Mineral Resource update which was depleted to 30 June 2022 (reported on 1 August 2022) Ernest Henry core yard 28 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 29 Location map of Cowal resource definition and regional projects in FY22 11 Information on Mineral Resources and Ore Reserves is proved on pages 36 to 43 of this Annual Report Discovery Discovery Ernest Henry A material increase to the Mineral Resource was reported on 1 August 2022. The Mineral Resource is now estimated at 88.3 million tonnes at 1.28% copper and 0.73g/t gold for 1.13 million tonnes of copper and 2.07 million ounces of gold net of mining depletion as of 30 June 2022 (Dec 2021: 71.4Mt, 885kt copper, 1.67Moz gold). Further growth potential exists with mineralisation intersected 300m vertically below the Mine Extension Pre-Feasibility Study (below the 775mRL). The Mineral Resource classifications were also significantly upgraded with 10.9 million tonnes (82% increase) of Indicated Mineral Resources upgraded to the Measured resource category and 6.2 million tonnes (19% increase) of Inferred Mineral Resources upgraded to Indicated resource category. The new model includes 30,159 metres of new drilling from 119 drillholes for a total aggregate increase of 28% in contained copper and 24% in contained gold, along with upgrades to the Mineral Resource classifications. The update includes all drilling results to 31 May 2022 and the model is depleted for mining to 30 June 2022. The Mineral Resource was estimated into an interpreted 0.7% copper grade shell consistent with the previous estimate completed by Glencore. Surface drilling commenced in the June quarter targeting specific areas between the 1,200mRL and 775mRL which have been difficult to access by the underground drilling. The purpose of the surface holes is to drill the ore body at a more optimal angle, continue upgrading resource classification and to further delineate extensions of mineralisation where they remain open within the Pre- feasibility Study window. Future underground drilling will link to extending the decline and establishing better drill positions to intersect extensions of the orebody at depth. The Mine Extension Pre-feasibility Study, due for completion by December 2022, will benefit from the results of the current surface drilling programs and the results of the updated Mineral Resource estimate. Drilling results will be included in the December 2022 Mineral Resource and Ore Reserve update. Red Lake Red Lake is one of the largest, highest grade gold camps in North America with historical production of over 25 million ounces with head grades exceeding 20 grams per tonne. The region has outstanding potential with little exploration in rock types not previously considered prospective and represents some of the greatest resource and exploration upside in the Evolution portfolio. The Mineral Resource at 31 December 2021 is estimated at 53.6 million tonnes at 6.82g/t gold for 11.7 million ounces, an increase of 689,000 ounces (6%) compared to December 2020 estimate. This estimate includes the Maiden Mineral Resource of the Bateman Gold Project of 5.1 million tonnes at 4.60g/t gold for 757,000 ounces. FY22 resource definition drilling focused on reserve conversion priorities anticipated to come into the production schedule over the next 12 to 24 months at Red Lake and Campbell. Step-out drilling targeted the gap between the Deep Sulphides and Aviation areas as well as the down-plunge extension of Cochenour. Discovery drilling at Lower Campbell tested the continuity of high-grade mineralisation along the Western R-Zone structural corridor. Results confirmed grade continuity and highlight an opportunity for significant resource potential between these intercepts at the bottom of the Lower Campbell Mineral Resource. Drilling is planned to extend the Mineral Resource into the 550m gap to FY22 drill intercepts. At the Bateman project, drilling has confirmed extensions to known mineralisation within the McFinley deposit adjacent to the historic property boundary. In FY23, a focus remains on converting the substantial resource base, especially at the higher grade Upper Campbell orebody, and testing near mine high-grade zone like targets. Regionally, our focus is on targets within younger volcanic packages that show the potential for a stand-alone mine or displace higher cost ounces in the mine plan. Schematic north-south section looking west of the Ernest Henry orebody showing a total of 119 drillholes totalling 30,159 metres included in this Mineral Resource update. A total of 71 drillholes (green) totalling 16,726m had assay results while 48 drillholes (pink) totalling 13,433m were awaiting assay results Plan view of Red Lake belt showing extent and location of Evolution tenements 30 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 31 Discovery Discovery Mungari Upside potential at Mungari, particularly Kundana, was reinforced by drilling in FY22 which delineated new areas of high-grade mineralisation very close to existing areas of development. Resource extension drilling at Kundana included several holes drilled 30 to 50m beyond the main Xmas ore body structure to intersect and extend the Xmas Hangingwall Lode (Genesis). An Inferred Mineral Resource for the Xmas Hangingwall Lode was updated to 65,000 tonnes at 46.7g/t gold for 97,000 ounces at 31 December 2021. Drilling results are important because they locate and extend the vein structure down dip and along strike. Future drilling will target the high-grade lode portion of the structure with the aim of expanding the Mineral Resource into these locations. The vein averages 30cm wide and has been modelled along the same structural position as the Skinner’s trend at Raleigh and is interpreted to link to a similar position in the hangingwall of the Strzelecki Lode. The Strzelecki hangingwall position has not been effectively tested and represents a new target opportunity at Kundana with a strike potential of 500m. Mary Fault drilling at Rubicon/Hornet/Pegasus (RHP) underground at East Kundana supports the potential for a future resource. Mungari Mineral Resources are estimated at 76.1 million tonnes at 2.00g/t gold for 4.9 million ounces. Ore Reserves are estimated at 20.6 million tonnes at 1.86g/t gold for 1.2 million ounces. Inclined long section view showing significant intersections (>4g/t gold) from diamond drilling targeting the interpreted extension of the Western R Zone structure at Lower Campbell (development unsliced) This information is extracted from ASX releases entitled “March 2022 Quarterly Report” dated 21 April 2022 and “December 2021 Quarterly Report’ dated 27 January 2022 available to view at www.evolutionmining.com.au. Evolution confirms that it is not aware of any new information or data that materially affects information included in these releases. Evolution confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market release. Reported intervals are downhole widths as true widths are not currently known. An estimated true width (etw) is provided. The Red Lake Competent Person for the reporting of exploration results is Daniel Macklin Location map of Mungari resource definition and regional projects Diamond and sonic drilling on East Bay during the 2021-2022 winter, Bateman plant in the background 32 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 33 Discovery Discovery Cue project, WA (earning 75%) In September 2019, we entered into an earn-in joint venture agreement with Musgrave Minerals Limited (ASX:MGV) (“Musgrave”) over the Cue exploration project. Cue is located in the Murchison Province of central Western Australia which hosts a gold endowment in excess of 30 million ounces. We commenced to act as the Earn-in Manager from 1 January 2022. The Cue project is approximately 30km south of Cue and is prospective for Archaean greenstone gold deposits. The Cue joint venture covers a prospective mineralised trend which is north of Musgrave’s Lena and Break of Day resources to the south. Large parts of the fertile trend are poorly tested and extend under younger lake cover which is potentially obscuring mineralisation. Diamond drilling in FY22 focused on delineating the scale of the new high-grade zone identified in FY21 at West Island as well as testing additional gold-in-regolith aircore anomalies and defining new diamond drilling targets through aircore drilling. Diamond drilling confirmed the geological model developed at West Island whereby mineralisation is hosted in multiple mineralised sulphide lodes of limited strike constrained by the favourable dolerite host unit. Results from aircore drilling continues to delineate the favourable dolerite unit along strike which is important for hosting the better grades at West Island and has extended the gold mineralised footprint to 1.6km. Drilling in FY23 is planned to continue to delineate the potential scale of mineralisation at West Island and to determine how best to domain and model gold mineralisation. Schematic cross section of mineralised horizons at Kundana Xmas HW (Genesis) resource Plan view of mineralisation trends at Kundana including Xmas hangingwall Map showing the location and geology of the Cue project 34 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 35 Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves Group Mineral Resources As at 31 December 2021, Group Mineral Resources are estimated to contain approximately 29.6 million ounces of gold and 1.4 million tonnes of copper. This represents an increase of approximately 3.25 million ounces of gold (~12%) and 541 thousand tonnes of copper (~63%) compared with the estimate as at 31 December 2020. Group Ore Reserves As at 31 December 2021, Group Ore Reserves are estimated to contain approximately 10.3 million ounces of gold and 640 thousand tonnes of copper. This represents an increase of approximately 449 thousand ounces of gold (~5%) and 135 thousand tonnes of copper (~27%) compared with the estimate as at 31 December 2020. The Group Mineral Resource Statement as at 31 December 2021 is provided in Tables 3 and 5 and accounts for mining depletion of in situ Mineral Resources of 576,000 ounces of gold and 21,000 tonnes of copper. Mineral Resources are reported inclusive of Ore Reserves but exclude mined areas and areas sterilised by mining activities. The Ernest Henry Mineral Resource estimate undertaken by Glencore includes all exploration and resource definition drilling information up to 31 March 2021 and has been depleted for mining to 31 December 2021. The Group Ore Reserve Statement as at 31 December 2021 is provided in Tables 4 and 6 and accounts for mining depletion of in situ Ore Reserves of 520,000 ounces of gold and 21,000 tonnes of copper. Commodity price assumptions Evolution commodity price assumptions used to report the December 2021 Mineral Resources and Ore Reserves cut-off grades are unchanged and are provided below. An AUD:CAD exchange rate assumption of 0.9 has been used for Red Lake. Gold: A$1,450/oz for Ore Reserves, A$2,000/oz for Mineral Resources Silver: A$20.00/oz for Ore Reserves, A$26.00/oz for Mineral Resources Copper: A$6,000/t for Ore Reserves, A$9,000/t for Mineral Resources All open pit Mineral Resource estimates are reported within optimised pit shells which have been developed using a A$2,000/oz price assumption and take into account forecast mining costs and metallurgical recoveries. All underground Mineral Resources (except Ernest Henry) are reported within underground mining shapes (MSOs) using a A$2,000/oz price assumption and take into account forecast mining costs and metallurgical recoveries. Whilst no cut-off grade has been explicitly applied for reporting the Ernest Henry June 2022 Mineral Resource, only blocks within the 0.7% Cu grade shell were reported. The sub-level caving mining method applied at the Ernest Henry operation does not allow blocks to be selectively mined. Consequently, all blocks contained within the interpreted 0.7% Cu grade shell no matter their estimated grade (inclusive of low grade and waste material) are reported within the reported Mineral Resource. Prior to reporting, the Mineral Resource was depleted for mining activities and sterilisation. All open pit Ore Reserve estimates are reported within detailed pit designs and all underground Ore Reserves are reported within mineable underground shapes. Pit designs and underground mining shapes have taken into account all applicable modifying factors, forecast mining costs and metallurgical recoveries and have been developed subject to an economic test to verify that economic extraction is justified. The economic test includes all applicable capital costs and is performed via a sensitivity analysis using a range of assumed gold prices from A$1,450 to A$2,200 per ounce and considers a range of financial metrics including AISC, NPV and FCF. Assets may use different assumptions within this range during optimisation or financial modelling stages depending on specific requirements as documented in their individual statements. Glencore commodity price assumptions used to estimate the Ernest Henry December 2021 Ore Reserves cut-off grades are: gold price of US$1,300/oz, copper price of US$6,500/t and exchange rate of AUD:USD of 0.75. JORC 2012 and ASX listing rules requirements This annual statement of Mineral Resources and Ore Reserves has been prepared in accordance with the 2012 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012) and the ASX Listing Rules. Changes since 31 December 2021 Mineral Resources and Ore Reserves statement Evolution’s Mineral Resources and Ore Reserves Statement as at 31 December 2021 was released to the ASX on 16 February 2022 in the report titled “Annual Mineral Resources and Ore Reserves Statement”. Subsequently, an updated Mineral Resource estimate for Ernest Henry as at 30 June 2022 was completed and released to the ASX on 1 August 2022 in the report titled ‘Material Increase in Ernest Henry Mineral Resource.’ Both releases are available to view at www.evolutionmining.com.au. The Ernest Henry Mineral Resource is now estimated at 88.3 million tonnes at 1.28% copper and 0.73g/t gold for 1.13 million tonnes of contained insitu copper and 2.07 million ounces of contained insitu gold net of mining depletion (Table 1). The new model includes 30,159 metres of new drilling from 119 drillholes for a total aggregate increase of 28% in contained copper and 24% in contained gold, along with upgrades to the Mineral Resource classifications. The Mineral Resource was estimated into an interpreted 0.7% copper grade shell consistent with the previous estimate completed by Glencore. Evolution is not aware of any other new information or data that materially affects the information contained in the Annual Mineral Resource and Ore Reserve Statement 31 December 2021 other than changes due to normal mining depletion during the six months ended 30 June 2022. All material assumptions and parameters underpinning the estimates in the original release continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original releases. Table 1: Ernest Henry – Total Mineral Resource at 30 June 2022    Measured  Indicated  Inferred  Total Resource  Tonnes (Mt)  Copper grade (%)  Copper insitu tonnes (kt)  Gold grade (g/t)  Gold insitu ounces (koz)  24.2  1.38  335  0.77  600  38.5  1.29  498  0.74  911  25.7  1.16  298  0.68  560  88.3  1.28  1,129  0.73  2,071  Dec 2021  Total Resource  71.4  1.24  885  0.73  1,674  Note: Ernest Henry Mineral Resource is reported within an interpreted 0.7% Cu mineralised envelope which includes internal dilution of material below 0.7% Cu. Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding. Mineral Resources are reported inclusive of Ore Reserves. Ernest Henry Mineral Resource Competent Person is Phil Micale. Governance and internal controls Evolution reports its Mineral Resources and Ore Reserves on an annual basis, with Mineral Resources inclusive of Ore Reserves. Reporting is in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and the ASX Listing Rules. All Mineral Resource and Ore Reserve estimates and procedures are subject to internal and external review by qualified professionals. All Competent Persons named by Evolution are suitably qualified and experienced as per minimum acceptable requirements defined in the JORC Code 2012 Edition. Prior to the public release of the Mineral Resource and Ore Reserve estimates, Competent Persons experience and qualification are reviewed by Evolution’s Mineral Resource and Ore Reserve Committee. Competent Persons’ statement The information in this report that relates to the 31 December 2021 Mineral Resources and Ore Reserves listed in the table below is based on, and fairly represents, information and supporting documentation prepared by the Competent Person whose name appears in the same row, who is employed on a full-time basis by Evolution Mining Limited (except for Aaron Meakin and Dean Basile) and is a Member or Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), Australian Institute of Geoscientists (AIG) or Recognised Professional Organisation (RPO) and consents to the inclusion in this report of the matters based on their information in the form and context in which it appears. Each person named in the table below has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Aaron Meakin and Dean Basile are employed on a full- time basis by CSA Global and MiningOne respectively. The information in this report that relates to the 30 June 2022 Ernest Henry Mineral Resource is based on information compiled by Phil Micale who is a full time employee of Evolution Mining. Mr Micale is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Micale consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Evolution employees acting as a Competent Person may hold equity in Evolution Mining Limited and may be entitled to participate in Evolution’s executive equity long-term incentive plan, details of which are included in Evolution’s annual Remuneration Report. Annual replacement of depleted Ore Reserves is one of the performance measures of Evolution’s long-term incentive plans. 36 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 37 Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves Table 2: Competent Persons list for the December 2021 Mineral Resources and Ore Reserve estimates Deposit Competent Person Membership Cowal Mineral Resource James Biggam AusIMM Cowal Open Pit Ore Reserve Dean Basile AusIMM Cowal Underground Ore Reserve Joshua Northfield AusIMM Bateman Gold Project Mineral Resource Jason Krauss Red Lake Mineral Resource Jason Krauss AIG AIG Red Lake Ore Reserve Brad Armstrong Professional Engineers - Ontario Mungari Mineral Resource Brad Daddow AIG Mungari Open Pit Ore Reserve Mungari Underground Ore Reserve Ernest Henry Mineral Resource Ernest Henry Ore Reserve Mt Rawdon Mineral Resource Mt Rawdon Ore Reserve Marsden Mineral Resources Marsden Ore Reserve Chris Honey Peter Merry Aaron Meakin Michael Corbett Justin Watson Martin Sonogan James Biggam Anton Kruger AusIMM AusIMM AusIMM AusIMM AusIMM AusIMM AusIMM AusIMM Status Member Chartered Professional (Mining) Member Member Member Member Member Member Member Member Member Member Member Member Fellow Member number 112082 301633 211952 4711 4711 100152392 7736 204346 306163 113056 307897 205253 313927 112082 221292 Drilling at Lake Cowal 1 2 0 2 r e b m e c e D 1 3 t a s a t n e m e t a t S e c r u o s e R l i l a r e n M d o G p u o r G : l 3 e b a T e c r u o s e R 0 2 c e D 7 P C e c r u o s e R l a t o T d e r r e f n I d e t a c i d n I d e r u s a e M l d o G l d o G l a t e M ) z o k ( 5 4 6 6 , 9 1 0 3 , 4 6 6 9 , 3 5 0 , 1 1 3 5 0 , 1 1 9 3 7 , 1 8 4 4 6 8 1 , 2 5 8 8 3 4 1 , 1 3 5 0 , 1 7 8 3 1 7 3 6 2 , l d o G e d a r G ) t / g ( s e n n o T ) t M ( 2 8 0 . 0 5 2 . 4 0 . 1 9 1 . 7 9 1 . 7 2 2 . 1 5 9 2 . 9 3 . 1 4 5 0 . 1 6 0 . 7 2 0 . 6 2 . 1 0 3 . 1 . 7 2 5 2 . 5 7 3 . 2 0 9 2 . 8 7 4 . 8 7 4 . 4 4 4 . 7 4 1 . 9 4 . 7 0 5 . 7 8 5 . 0 3 2 1 . 5 9 . 0 9 2 6 1 1 1 2 2 2 3 3 3 4 5 1 l d o G l a t e M ) z o k ( 2 5 8 6 , 6 6 7 2 , 8 1 6 9 , 5 8 9 0 , 1 7 5 7 2 4 7 , 1 1 4 3 1 , 2 7 6 7 2 , 2 0 9 4 , 0 3 6 4 7 6 , 1 3 5 0 , 1 l d o G e d a r G ) t / g ( s e n n o T ) t M ( l d o G l a t e M ) z o k ( l d o G e d a r G ) t / g ( s e n n o T ) t M ( 9 7 0 . 1 4 2 . 8 9 0 . 5 0 7 . 0 6 4 . 2 8 6 . 1 2 . 1 5 0 4 . 0 0 2 . 0 5 0 . 3 7 0 . 7 2 0 . . 6 9 6 2 . 7 5 3 9 2 9 1 9 9 . 3 5 0 3 0 2 9 , 1 . 5 8 4 3 1 0 4 , 8 7 0 . 2 3 2 . 8 1 . 1 6 6 6 . 7 3 4 . 1 . 5 . 6 3 5 . 8 4 5 2 . 1 2 1 . 6 7 . 2 9 3 4 . 1 7 . 0 3 2 1 2 2 4 5 3 4 4 , 4 3 6 . 8 5 4 6 8 0 , 1 4 4 5 , 1 4 8 2 7 5 2 2 6 3 . 1 8 5 3 . 1 4 2 . 6 4 0 . 9 6 0 . 2 2 0 . . 3 7 3 . 3 3 1 . 6 0 5 . 7 8 1 0 3 . 7 . 1 2 . 5 0 1 4 9 . . 9 9 1 . 7 5 . 9 5 2 1 . 3 l d o G l a t e M ) z o k ( 5 5 5 5 , 6 7 7 , 1 1 3 3 7 , 8 6 9 6 , 5 3 3 3 0 3 7 , 6 7 6 , 1 7 8 3 , 1 3 6 0 3 , 1 8 4 8 0 8 1 3 0 , 1 l d o G e d a r G ) t / g ( 3 8 0 . 7 4 2 . 9 9 0 . 0 3 7 . 3 9 4 . 4 1 . 7 8 1 . 1 6 2 4 . 5 7 . 1 5 5 0 . 8 7 0 . 7 2 0 . s e n n o T ) t M ( . 5 7 0 2 . 4 2 2 . 9 9 2 2 . 7 9 2 1 . 2 8 . 1 3 . 3 4 4 1 . 0 1 . 5 4 5 . 2 7 2 . 2 2 3 . 8 9 1 1 l d o G l a t e M ) z o k ( 7 6 3 - 7 6 3 4 - 4 - 5 9 2 5 9 2 5 6 4 9 2 - l d o G e d a r G ) t / g ( 6 4 0 . - 6 4 0 . 0 2 4 . - 0 2 4 . - 9 3 5 . 9 3 5 . 2 3 0 . 9 6 0 . - s e n n o T ) t M ( ff O - t u C e p y T j t c e o r P . 8 4 2 - . 8 4 2 0 0 . - 0 0 . - 7 . 1 7 . 1 . 3 6 . 3 3 1 - 5 3 0 . 0 5 . 1 t i p n e p O d n u o r g r e d n U l a t o T 0 3 3 . 0 5 2 . d n u o r g r e d n U d n u o r g r e d n U 0 4 0 . 0 8 . 1 1 2 0 . 0 2 0 . l a t o T t i p n e p O d n u o r g r e d n U l a t o T l a t o T l a t o T l a t o T e k a L d e R n a m e t a B 3 e k a L d e R 1 i r a g n u M 4 i r a g n u M 1 i r a g n u M 1 l a w o C l a w o C 1 l a w o C 2 y r n e H t s e n r E 1 n o d w a R t M 6 n o t l r a C t M 5 n e d s r a M l a t o T 9 1 6 9 2 , 8 3 . 1 . 5 8 6 6 7 7 5 8 , 0 1 . 2 . 0 7 2 1 7 1 0 0 2 , 6 2 . 1 . 5 5 9 4 5 2 0 , 1 9 6 0 . 1 . 6 4 r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e c r u o s e R l i a r e n M d e t r o p e r e h T . l e p o e v n e d e s i l i a r e n m u C % 7 0 d e t e r p r e t n . i n a i n h t i w e r a s e c r u o s e R l i a r e n M y r n e H t s e n r E d e t r o p e r e h T 2 s e l i p k c o t s s e d u c n l I 1 . s e v r e s e R e r O f o e v i s u c n l i d e t r o p e r e r a s e c r u o s e R l a r e n M i l d e h ) z o k 2 4 1 ( t i s o p e d n o c a F e h t l s e d u c x e l e t a m i t s e e c r u o s e R l a r e n M i i r a g n u M e h T . u A t / g 8 . 1 s i ff o - t u c d n u o r g r e d n u e g a r e v a e h T . t i s o p e d r e p u A t / g 1 6 2 o t . u A t / g 6 5 . 1 m o r f y r a v s ff o - t u c e c r u o s e R l i a r e n M d n u o r g r e d n U i r a g n u M . t i s o p e d ) u A t / g 2 3 ( g n u o Y G H d n a ) u A t / g 0 3 ( . r u o n e h c o C r o f t p e c x e u A t / g 3 3 . s i ff o - t u c e c r u o s e R l i a r e n M e k a L d e R 3 4 e g n a h c x E , 0 0 5 6 : ) t / S U $ ( e c i r P r e p p o C , 0 0 3 1 : ) z o / S U $ ( e c i r P d o G l : s n o i t p m u s s a l e c i r p e r o c n e G g n i s u d e fi i t s u j s i d n a n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m ff o t u c u C % 7 0 a . n o d e s a b e c r u o s e R l i a r e n M d e t r o p e r . 5 7 0 . : ) S U U A ( : e t a R e h T . e c r u o s e R l i a r e n M d e t r o p e r e h t i n h t i i w d e n a t n o c d o g u t i s n l i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i e r e h d e t s i l t n e n o p m o c l l y n o d o g e h T . e c r u o s e R l i a r e n M d e t r o p e r e h t f o t n e n o p m o c d o g d n a l . i g n d n u o r o t l e u d y e s i c e r p m u s t o n y a m d n a n o i s i c e r p e t a i r p o r p p a t c e fl e r o t s e r u g fi i t n a c fi n g i s o t d e t r o p e r s i a t a D n i h t w o r G g n o r t S “ d e l t i t l e s a e e r X S A s e c r u o s e R r a t S n r e h t r o N n i i d e d v o r p s i t i s o p e d n o c a F e h t l n o n o i t a m r o f n I . i i . ) % 5 2 2 1 ( g n n M d n a R d n a % 5 7 6 3 d t L . s e c r u o s e R e n u b i r T , i i % 1 5 g n n M n o i t u o v E ( l e r u t n e V t n o J i a n a d n u K t s a E e h t y b . m o c d t l r s n w w w . t a w e v o t i l e b a l i a v a d n a 1 2 0 2 y a M 3 d e t a d ” s e c r u o s e R d n a s e v r e s e R s i e r e h d e t s i l t n e n o p m o c l l y n o d o g e h T . e c r u o s e R l i a r e n M d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e c r u o s e R l i a r e n M n e d s r a M d e t r o p e r e h T 5 e u n e v e r e h t f o % 0 0 1 o t s t h g i r g n n r a e i t s e r e t n i i c m o n o c e i i n a d a h g n n M n o i t u o v E l , ) 2 2 0 2 y r a u n a J 1 f o s a e v i t c e ff e ( y r n e H t s e n r E f o p h s r e n w o i l l u f f o n o i t i s i u q c a o t r o i r P : n o s i r a p m o c 0 2 0 2 r e b m e c e D y r n e H t s e n r E e h t n o e t o N e h T . a e r a d e e r g a e h t e d i s t u o e c r u o s e R y r n e H t s e n r E e h t m o r f d e c u d o r p r e v l i s d n a r e p p o c , l d o g e r u t u f f o % 9 4 d n a , a e r a e n m i f o e f i l d e e r g a n a m o r f d e c u d o r p r e v l i s d n a r e p p o c e r u t u f f o % 0 3 d n a n o i t c u d o r p d o g e r u t u f l m o r f . l e c r u o s e r d o g y r n e H t s e n r E l a t o t e h t f o % 7 7 e t u t i t s n o c s e r u g fi 0 2 0 2 r e b m e c e D d e t r o p e r e h T . t s e r e t n i i c m o n o c e f o s i s a b e h t n o e r e h d e t r o p e r s i e c r u o s e R y r n e H t s e n r E 0 2 0 2 r e b m e c e D t a w e v o t i l e b a l i a v a d n a 2 2 0 2 y r a u r b e F 6 1 n o X S A e h t o t d e s a e e r l ” t n e m e t a t S s e v r e s e R e r O n a s e c r u o s e R l a r e n M i l a u n n A “ d e l t i t n e t r o p e r e h t n i i d e d v o r p e r a s e v r e s e R e r O d n a s e c r u o s e R l i a r e n M n o i t u o v E e h t l f o s l i a t e d l l u F l ) l a b o G A S C ( i n k a e M n o r a A . 5 ; n o s t a W n i t s u J . 4 ; w o d d a D d a r B . 3 ; s s u a r K n o s a J . 2 ; i m a g g B s e m a J . 1 o t r e f e r s e t o N ) P C ( n o s r e P t n e t e p m o C s e c r u o s e R l l i a r e n M d o G p u o r G 1 2 0 2 r e b m e c e D 5 1 d e t s e v d n o t l r a C t i M 6 7 e c r u o s e R l i a r e n M d e t r o p e r e h t i n h t i i w d e n a t n o c d o g u t i s n l i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s t c e ff a y l l a i r e t a m t a h t a t a d r o n o i t a m r o f n i w e n r e h t o y n a f o e r a w a t o n s i t i t a h t s m r fi n o c n o i t u o v E l . 2 2 0 2 t s u g u A 1 n o d e s a e e r l s a w 2 2 0 2 e n u J 0 3 t a s a e c r u o s e R l i a r e n M y r n e H t s e n r E d e t a d p u n A . . . i i u a m o c g n n m n o i t u o v e w w w l . e h t t a h t s m r fi n o c y n a p m o C e h T . d e g n a h c y l l a i r e t a m t o n e v a h d n a l y p p a o t e u n i t n o c e s a e e r l e h t n i s e t a m i t s e i e h t g n n n p r e d n u i s r e t e m a r a p d n a s n o i t p m u s s a l a i r e t a m l l a t a h t d n a e s a e e r l l i a n g i r o e h t n i d e d u c n l i n o i t a m r o f n i e h t . e s a e e r l l i a n g i r o e h t m o r f d e fi d o m y i l l a i r e t a m n e e b t o n e v a h d e t n e s e r p e r a i s g n d n fi ’ s n o s r e P t n e t e p m o C e h t i h c h w n i t x e t n o c d n a m r o f 38 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 39                                                             Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves l d o G l a t e M ) z o k ( 7 4 5 3 , 5 4 0 , 1 3 9 5 4 , 9 2 9 2 , 5 3 9 1 4 4 5 4 8 9 3 5 2 5 7 1 8 8 6 1 4 8 8 9 , l d o G e d a r G ) t / g ( s e n n o T ) t M ( 8 8 0 . 9 5 2 . 4 0 . 1 0 9 6 . 7 5 3 . 5 3 . 1 1 4 . 1 2 6 0 . 0 5 0 . 9 3 0 . 1 8 0 . 8 0 . 1 . 3 5 2 1 . 6 2 1 . 9 7 3 1 . 2 3 1 . 3 0 . 7 9 . 0 0 1 1 . 0 2 . 6 2 3 . 2 5 6 4 6 . 1 2 3 4 5 6 7 8 l d o G l a t e M ) z o k ( 0 2 5 3 , 9 6 0 , 1 9 8 5 4 , 5 3 9 2 , 8 9 4 6 3 7 4 3 2 , 1 0 0 3 9 5 4 7 1 8 l d o G e d a r G ) t / g ( s e n n o T ) t M ( 9 8 0 . 1 3 2 . 3 0 . 1 0 0 7 . 6 4 4 . 3 3 . 1 6 8 . 1 9 5 0 . 9 4 0 . 9 3 0 . . 6 3 2 1 . 4 4 1 . 0 8 3 1 1 . 3 1 . 5 3 . 2 7 1 . 6 0 2 . 7 5 1 . 0 9 2 . 2 5 6 l d o G l a t e M ) z o k ( 4 6 1 , 3 9 6 0 , 1 3 3 2 4 , 5 3 9 2 , 5 6 3 7 8 5 2 5 9 0 6 2 7 1 2 7 1 8 l d o G e d a r G ) t / g ( 9 9 0 . 1 3 2 . 5 1 . 1 0 0 7 . 3 3 4 . 9 2 . 1 6 7 . 1 4 6 0 . 5 3 0 . 9 3 0 . s e n n o T ) t M ( . 7 9 9 . 4 4 1 1 . 4 1 1 1 . 3 1 6 2 . . 2 4 1 . 8 6 1 . 6 2 1 . 2 9 1 . 2 5 6 l d o G l a t e M ) z o k ( 6 5 3 - 6 5 3 - 2 3 1 9 4 1 2 8 2 0 4 1 4 2 - l d o G e d a r G ) t / g ( 6 4 0 . - 6 4 0 . - 9 8 4 . 4 5 . 1 7 2 2 . 9 3 0 . 7 7 0 . - s e n n o T ff O - t u C ) t M ( . 9 3 2 - . 9 3 2 - . 8 0 0 3 . 9 3 . 1 . 3 . 8 9 - ) t / g ( 5 4 0 . 0 8 . 1 0 5 4 . 2 8 4 . 3 7 0 . t i p n e p O d n u o r g r e d n U l a t o T l a t o T d n u o r g r e d n U t i p n e p O l a t o T 3 e k a L d e R 4 i r a g n u M 5 , 1 i r a g n u M 1 i r a g n u M 1 l a w o C l a w o C l a w o C e p y T j t c e o r P 3 3 0 . t i p n e p O 1 n o d w a R t M d n u o r g r e d n U 2 y r n e H t s e n r E 0 3 0 . t i p n e p O 7 n o t l r a C t M 6 n e d s r a M . 3 5 8 2 3 3 3 0 1 , 4 1 . 1 7 . 1 8 2 4 1 4 9 , 2 2 . 1 0 . 1 4 2 9 1 9 0 7 0 . . 7 0 4 l a t o T d e t s i l t n e n o p m o c l l y n o d o g e h T . e v r e s e R e r O d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e v r e s e R e r O n e d s r a M d e t r o p e r e h T 6 ) u A t / g 5 2 ( . l l e b p m a C r e p p U d n a . ) u A t / g 0 3 ( g n u o Y G H , ) u A t / g 1 . 4 ( l l e b p m a C r e w o L d n a r u o n e h c o C r o f t p e c x e u A t / g 5 4 s i . ff o - t u c e v r e s e R e r O e k a L d e R u A t / g 3 7 0 s i . ff o - t u c t i p n e p o e g a r e v a e h T . t i s o p e d r e p u A t / g 0 8 0 o t . u A t / g 1 6 0 m o r f . y r a v s ff o - t u c e v r e s e R e r O t i P n e p O i r a g n u M ) u A t / g 0 9 2 ( g e L . ’ s g o r F d n a ) u A t / g 8 0 4 ( . a n a d n u K r o f t p e c x e u A t / g 2 8 4 s i . ff o - t u c e v r e s e R e r O d n u o r g r e d n U i r a g n u M 3 4 5 e v o b a d e t r o p e r s e v r e s e R e r O 1 2 0 2 r e b m e c e D . 5 7 0 . : ) S U U A ( : e t a R e g n a h c x E , 0 0 5 6 : ) t / S U $ ( e c i r P r e p p o C , 0 0 3 1 : ) z o / S U $ ( e c i r P d o G l : s n o i t p m u s s a e c i r p e r o c n e G s e s u l e v r e s e R e r O d e t r o p e r y r n e H t s e n r E 2 i g n d n u o r o t l e u d y e s i c e r p m u s t o n y a m d n a n o i s i c e r p e t a i r p o r p p a t c e fl e r o t s e r u g fi i t n a c fi n g i s o t d e t r o p e r s i a t a D s e l i p k c o t s s e d u c n l I 1 l l y n o d o g e h T . e v r e s e R e r O d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e v r e s e R e r O y r n e H t s e n r E d e t r o p e r e h T . u C % 7 0 . . e v r e s e R e r O d e t r o p e r e h t i n h t i i w d e n a t n o c d o g f o t n u o m a l e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i e r e h d e t s i l t n e n o p m o c e v r e s e R e r O d e t r o p e r e h t i n h t i i w d e n a t n o c d o g u t i s n l i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i e r e h n o t n A . 8 ; t t e b r o C e k M i . 7 ; n a g o n o S n i t r a M . 6 ; y e n o H s i r h C . 5 ; y r r e M r e t e P . 4 ; g n o r t s m r A d a r B . 3 ; l d e fi h t r o N a u h s o J . 2 ; ) e n O g n n M i i ( e l i s a B n a e D . 1 o t r e f e r s e t o N ) P C ( n o s r e P t n e t e p m o C e v r e s e R e r O d o G p u o r G l 1 2 0 2 r e b m e c e D 5 1 d e t s e v d n o t l r a C t i M 7 8 r e g u r K e c r u o s e R y r n e H t s e n r E e h t m o r f d e c u d o r p r e v l i s d n a r e p p o c , l d o g e r u t u f f o % 9 4 d n a , a e r a e n m i f o e f i l d e e r g a n a m o r f d e c u d o r p r e v l i s d n a r e p p o c e r u t u f f o % 0 3 d n a n o i t c u d o r p d o g e r u t u f l m o r f e u n e v e r e h t f o l d o g y r n e H t s e n r E l a t o t e h t f o % 6 8 e t u t i t s n o c s e r u g fi 0 2 0 2 r e b m e c e D d e t r o p e r e h T . t s e r e t n i i c m o n o c e f o s i s a b e h t n o e r e h d e t r o p e r s i e v r e s e R y r n e H t s e n r E 0 2 0 2 r e b m e c e D e h T . a e r a d e e r g a e h t e d i s t u o % 0 0 1 o t s t h g i r g n n r a e i t s e r e t n i i c m o n o c e i i n a d a h g n n M n o i t u o v E l , ) 2 2 0 2 y r a u n a J 1 f o s a e v i t c e ff e ( y r n e H t s e n r E f o p h s r e n w o i l l u f f o n o i t i s i u q c a o t r o i r P : n o s i r a p m o c 0 2 0 2 r e b m e c e D y r n e H t s e n r E e h t n o e t o N d n a 2 2 0 2 y r a u r b e F 6 1 n o X S A e h t o t d e s a e e r l ” t n e m e t a t S s e v r e s e R e r O n a s e c r u o s e R l a r e n M i l a u n n A “ d e l t i t n e t r o p e r e h t n i i d e d v o r p e r a s e v r e s e R e r O d n a s e c r u o s e R l i a r e n M n o i t u o v E e h t l f o s l i a t e d l l u F . e v r e s e r l a i r e t a m l l a t a h t d n a e s a e e r l l i a n g i r o e h t n i d e d u c n l i n o i t a m r o f n i e h t s t c e ff a y l l a i r e t a m t a h t a t a d r o n o i t a m r o f n i w e n y n a f o e r a w a t o n s i t i t a h t s m r fi n o c n o i t u o v E l . . . i i u a m o c g n n m n o i t u o v e w w w l . t a w e v o t i l e b a l i a v a ’ s n o s r e P t n e t e p m o C e h t i h c h w n i t x e t n o c d n a m r o f e h t t a h t s m r fi n o c y n a p m o C e h T . d e g n a h c y l l a i r e t a m t o n e v a h d n a l y p p a o t e u n i t n o c e s a e e r l e h t n i s e t a m i t s e i e h t g n n n p r e d n u i s r e t e m a r a p d n a s n o i t p m u s s a . e s a e e r l l i a n g i r o e h t m o r f d e fi d o m y i l l a i r e t a m n e e b t o n e v a h d e t n e s e r p e r a i s g n d n fi 0 2 c e D 2 s e c r u o s e R r e p p o C ) t k ( l a t e M 0 6 5 1 3 3 3 1 4 0 9 1 P C e c r u o s e R l a t o T d e r r e f n I d e t a c i d n I d e r u s a e M r e p p o C 5 4 4 , 1 4 7 0 . . 4 4 9 1 1 1 3 7 0 . 1 . 0 9 2 9 6 9 4 6 0 . 1 . 2 5 1 5 6 1 5 2 . 1 . 3 3 1 l a t o T 1 2 0 6 5 5 8 8 6 4 0 . . 0 3 2 1 7 4 2 . 1 4 . 1 7 4 0 3 4 2 0 . 7 1 . 1 1 . 3 . 9 5 2 3 5 5 6 1 4 6 4 0 . 9 2 . 1 . 8 9 1 1 - - - . 2 2 3 5 6 1 5 2 . 1 . 3 3 1 r e p p o C r e p p o C l a t e M ) t k ( e d a r G ) % ( s e n n o T ) t M ( r e p p o C l a t e M ) t k ( r e p p o C e d a r G ) % ( s e n n o T ) t M ( ) t k ( l a t e M ) % ( e d a r G ) t M ( r e p p o C r e p p o C s e n n o T r e p p o C l a t e M ) t k ( r e p p o C e d a r G ) % ( s e n n o T ) t M ( ff O - t u C ) % ( . 2 0 . 7 0 e p y T j t c e o r P l a t o T l a t o T 2 n o t l r a C t M n e d s r a M t s e n r E y r n e H e r e h d e t s i l t n e n o p m o c l y n o r e p p o c e h T . e c r u o s e R l i a r e n M d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e c r u o s e R l i a r e n M n e d s r a M d e t r o p e r e h T 1 . s e v r e s e R e r O f o e v i s u c n l i d e t r o p e r e r a s e c r u o s e R l a r e n M i . i g n d n u o r o t l e u d y e s i c e r p m u s t o n y a m d n a n o i s i c e r p e t a i r p o r p p a t c e fl e r o t s e r u g fi i t n a c fi n g i s o t d e t r o p e r s i a t a D u C % 7 0 a . e v o b a e r a s e c r u o s e R l i a r e n M d e t r o p e r y r n e H t s e n r E . 5 7 0 . : ) S U U A ( : e t a R e g n a h c x E , 0 0 5 6 : ) t / S U $ ( e c i r P r e p p o C , 0 0 3 1 : ) z o / S U $ ( e c i r P d o G l : s n o i t p m u s s a e c i r p e r o c n e G s e s u l e c r u o s e R l i a r e n M d e t r o p e r y r n e H t s e n r E 2 e c r u o s e R l i a r e n M d e t r o p e r e h t i n h t i w d e n a t n o c i r e p p o c u t i s n i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i 1 2 0 2 r e b m e c e D 1 3 t a s a t n e m e t a t S e c r u o s e R l a r e n M i r e p p o C p u o r G : l 5 e b a T e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e c r u o s e R l i a r e n M y r n e H t s e n r E d e t r o p e r l e h T e p o e v n e d e s i l i a r e n m u C % 7 0 d e t e r p r e t n . i n a i n h t i w ff o - t u c e c r u o s e R l i a r e n M d e t r o p e r e h t i n h t i w d e n a t n o c i r e p p o c u t i s n i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i e r e h d e t s i l t n e n o p m o c l y n o r e p p o c e h T . e c r u o s e R l i a r e n M d e t r o p e r ) A S C ( i n k a e M n o r a A . 2 ; i m a g g B s e m a J . 1 : o t r e f e r s e t o N ) P C ( n o s r e P t n e t e p m o C s e c r u o s e R l i a r e n M p u o r G 1 2 0 2 r e b m e c e D 5 1 d e t s e v d n o t l r a C t i M 3 4 1 2 0 2 r e b m e c e D 1 3 t a s a t n e m e t a t S e v r e s e R e r O r e p p o C p u o r G : l 6 e b a T 8 s e v r e s e R 0 2 r e b m e c e D 8 P C e v r e s e R l a t o T l e b a b o r P d e v o r P l d o G 1 2 0 2 r e b m e c e D 1 3 t a s a t n e m e t a t S e v r e s e R e r O d o G p u o r G l : l 4 e b a T 40 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 41                       Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves d e t r o p e r e h T . . u C % 7 0 e v o b a d e t r o p e r s e v r e s e R e r O . 5 7 0 . : ) S U U A ( : e t a R e g n a h c x E , 0 0 5 6 : ) t / S U $ ( e c i r P r e p p o C , 0 0 3 1 : ) z o / S U $ ( e c i r P d o G l : s n o i t p m u s s a e c i r p e r o c n e G s e s u l e v r e s e R e r O d e t r o p e r y r n e H t s e n r E e h T 2 n o i t a t n e s e r p r o f s i e r e h d e t s i l t n e n o p m o c l y n o r e p p o c e h T . e v r e s e R e r O d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e v r e s e R e r O d e t s i l t n e n o p m o c l y n o r e p p o c e h T . e v r e s e R e r O d e t r o p e r e h t f o t n e n o p m o c d o g d n a l r e p p o c e h t h t o b t n u o c c a o t n i i g n k a t n o i t c a r t x e i c m o n o c e f o s t c e p s o r p e b a n o s a e r l s t e e m e v r e s e R e r O n e d s r a M d e t r o p e r e h T 1 e v r e s e R e r O d e t r o p e r e h t i n h t i w d e n a t n o c i r e p p o c u t i s n i f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p n o i t a t n e s e r p r o f s i e r e h i g n d n u o r o t l e u d y e s i c e r p m u s t o n y a m d n a n o i s i c e r p e t a i r p o r p p a t c e fl e r o t s e r u g fi i t n a c fi n g i s o t d e t r o p e r s i a t a D 5 1 7 3 9 2 1 0 2 c e D 3 s e v r e s e R r e p p o C ) t k ( l a t e M 4 P C e v r e s e R l a t o T l e b a b o r P d e v o r P r e p p o C 1 2 5 0 5 1 7 3 9 6 2 7 5 0 . 3 9 0 . . 2 5 6 . 0 9 2 1 7 3 0 3 1 7 5 0 . 8 6 0 . . 2 5 6 . 2 9 1 - 9 3 1 - 1 4 . 1 - . 8 9 . 3 0 . 7 0 l a t o T l a t o T 0 4 6 8 6 0 . . 2 4 9 1 0 5 9 5 0 . . 4 4 8 9 3 1 1 4 . 1 . 8 9 2 y r n e H t s e n r E 3 n o t l r a C t M 1 n e d s r a M l a t o T r e p p o C r e p p o C l a t e M ) t k ( e d a r G ) % ( s e n n o T ) t M ( r e p p o C l a t e M ) t k ( r e p p o C ) % ( e d a r G s e n n o T ) t M ( r e p p o C r e p p o C l a t e M ) t k ( e d a r G ) % ( s e n n o T ) t M ( ff O - t u C ) % ( e p y T j t c e o r P e h t f o % 0 0 1 o t s t h g i r g n n r a e i t s e r e t n i i c m o n o c e i i n a d a h g n n M n o i t u o v E l , ) 2 2 0 2 y r a u n a J 1 f o s a e v i t c e ff e ( y r n e H t s e n r E f o p h s r e n w o i l l u f f o n o i t i s i u q c a o t r o i r P : n o s i r a p m o c 0 2 0 2 r e b m e c e D y r n e H t s e n r E e h t n o e t o N . e v r e s e R e r O d e t r o p e r e h t i n h t i w d e n a t n o c i r e p p o c f o t n u o m a e h t s t n e s e r p e r d n a l y n o s e s o p r u p t t e b r o C e k M i . 2 ; r e g u r K n o t n A . 1 : o t r e f e r s e t o N ) P C ( n o s r e P t n e t e p m o C e v r e s e R e r O p u o r G 1 2 0 2 r e b m e c e D 5 1 d e t s e v d n o t l r a C t i M 3 4 e h t e d i s t u o e c r u o s e R y r n e H t s e n r E e h t m o r f d e c u d o r p r e v l i s d n a r e p p o c , l d o g e r u t u f f o % 9 4 d n a , a e r a e n m i f o e f i l d e e r g a n a m o r f d e c u d o r p r e v l i s d n a r e p p o c e r u t u f f o % 0 3 d n a n o i t c u d o r p d o g e r u t u f l m o r f e u n e v e r t s e n r E l a t o t e h t f o % 8 3 e t u t i t s n o c s e r u g fi 0 2 0 2 r e b m e c e D d e t r o p e r e h T . e v r e s e r i e n m e r i t n e e h t t o n d n a t s e r e t n i i c m o n o c e f o s i s a b e h t n o e r e h d e t r o p e r s i e v r e s e R y r n e H t s e n r E 0 2 0 2 r e b m e c e D e h T . a e r a d e e r g a . e v r e s e r r e p p o c y r n e H t s e n r E l a t o t e h t f o % 5 3 d n a e c r u o s e r r e p p o c y r n e H o t l e b a l i a v a d n a 2 2 0 2 y r a u r b e F 6 1 n o X S A e h t o t d e s a e e r l ” t n e m e t a t S s e v r e s e R e r O n a s e c r u o s e R l a r e n M i l a u n n A “ d e l t i t n e t r o p e r e h t n i i d e d v o r p e r a s e v r e s e R e r O d n a s e c r u o s e R l i a r e n M n o i t u o v E e h t l f o s l i a t e d l l u F s n o i t p m u s s a l a i r e t a m l l a t a h t d n a e s a e e r l l i a n g i r o e h t n i d e d u c n l i n o i t a m r o f n i e h t s t c e ff a y l l a i r e t a m t a h t a t a d r o n o i t a m r o f n i w e n y n a f o e r a w a t o n s i t i t a h t s m r fi n o c n o i t u o v E l . . . i i u a m o c g n n m n o i t u o v e w w w l . t a w e v i e r a i s g n d n fi ’ s n o s r e P t n e t e p m o C e h t i h c h w n i t x e t n o c d n a m r o f e h t t a h t s m r fi n o c y n a p m o C e h T . d e g n a h c y l l a i r e t a m t o n e v a h d n a l y p p a o t e u n i t n o c e s a e e r l e h t n i s e t a m i t s e i e h t g n n n p r e d n u i s r e t e m a r a p d n a . e s a e e r l l i a n g i r o e h t m o r f d e fi d o m y i l l a i r e t a m n e e b t o n e v a h d e t n e s e r p 42 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 43     FY22 Sustainability Report FY22 Sustainability Report “Guided by our Sustainability purpose, we foster trusted partnerships that enable safe, reliable and sustainable operations centred on the wellbeing of our people, the environment and the communities in which we operate. We take pride in managing our business in a way that creates value for all stakeholders” James Askew Board Risk and Sustainability Committee Chair We acknowledge our First Nation Partners and Indigenous Peoples throughout Australia and Canada and recognise their continuing connection to land, waters and community. We pay our respects to them and their cultures; and to Elders past, present and emerging. 44 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 45 FY22 sustainability snapshot FY22 sustainability snapshot FY22 sustainability snapshot Safety, Wellbeing and Risk $2.5M 100% in direct and indirect support to our people and community since COVID-19 pandemic began of material and critical actions closed as per target 34% reduction in Injury Severity (compared to FY21) during a period of significant change Safe and successful integration of two new acquisitions and one divestment Active reporting, learning and sharing culture supported by weekly risk-based storytelling sessions 84% increase in hazard reporting compared to FY21 Environment 752 hectares of land rehabilitated on mine sites Progress on Net Zero commitments 43% reduction in fresh water demand per dry tonne milled (compared to FY20 baseline) 7% reduction in emissions intensity per tonne of material mined (compared to FY20 baseline) Detailed climate scenario study for Cowal >70% renewable electricity at Red Lake Community and First Nation engagement 2 specific First Nation Partner Shared Value Projects (SVPs) implemented - the Galari Agricultural Company and Gidarjil Murra Wolka Creations Indigenous Art business. Upgraded the Mt Perry Summit walk to a safe and marketable Class 3 Standard, stimulating local tourism and economic development and providing training to 15 Gidarjil Indigenous trainees Economic Active engagement with Local Communities, First Nation Partners and Indigenous Peoples Strong partnerships through locally supported projects and engagement 4 High approval Indigenous trainees engaged for two-year Certificate of Agriculture, accredited through on the job training with Galari Agricultural Company Social Licence to Operate score of 4.00 out of 5 in 2022 Independent Stakeholder Perception Survey, and a high ‘Reputation’ which was rated 4.04 out of 5 $2.38M2 committed to six Shared Value Projects (~34% increase compared to FY21) $2.03B contribution to the Australian and Canadian economies3 $3.5M1 in direct community investment (9% increase compared to FY21) $133M in local spend (32% increase compared to FY21) $164M contribution to local and regional businesses4 and organisations (26% increase compared to FY21) 1 All amounts are expressed in Australian dollars unless stated otherwise 2 Shared Value Project spend was $885K in FY22 3 Economic contributions include supplier payments, wages, dividend payments, interest, taxes, royalties, community investment, payments to providers of capital and payments to financial institutions (interest) 4 Local and regional organisations are defined by postcode in relation to geographical proximity to Evolution mine sites 46 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 47 FY22 sustainability snapshot FY22 sustainability snapshot People Introduction of leader-led Inclusion and Diversity initiatives 100% of employees had meaningful values and culture conversations with a senior people leader 30% of the Graduate Development program hires in FY22 were females 72% local employment across our operations (compared to 67% in FY21) Analysis and alignment of gender pay parity as a key component of the FY22 Remuneration review 20% females in management positions (increase from 17% in FY21) 82% of employees choosing to stay in a competitive market Environmental, Social and Governance ratings performance S&P Global CSA SAM Corporate Sustainability Assessment S&P Global: Inclusion in 2021 Dow Jones Sustainability Index Australia and 4% improvement in year-on-year score. ARA – Australian Reporting Awards MSCI MSCI rating score of ‘AA’ for resilience to long-term ESG risks.6 Governance ISS Achieved increased ESG scores7, including a Level 1 (the highest) for Environment and a Level 2 for Social. 100% of all integrated assets5 internally and externally audited and verified with oversight from the Board Risk and Sustainability Committee Tailings Storage Facility (TSF) Governance Committee providing effective oversight of TSF management Sustainalytics Significant upgrade in ESG Rating moving from a ‘Severe Risk’ rating to a ‘Medium Risk’ Rating; ranked in the top 21st percentile8 globally. Transparency with ESG reporting agencies including being recognised for transparent and quality reporting by the Australasian Reporting Awards (ARA) Published 2021 Modern Slavery Statement, and updated Supplier Code of Conduct and Procurement Statement 5 Ernest Henry was integrated into Evolution during second half of the financial year and will be audited following completion of integration as part of the FY23 assurance plan Continued alignment with four key Environmental, Social and Governance (ESG) frameworks including Global Reporting Initiative (GRI) and Task Force on Climate-Related Financial Disclosures (TCFD) 6 The use by Evolution of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Evolution by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI 7 October 2021 8 Gold Industry 9 In FY21, the Galari Project was in feasibility stages and has now been launched as of FY22 48 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 49 ‘Silver’ award for the 2021 Annual Report and ‘Bronze’ Award for the 2021 Sustainability Report Shared Value Projects New ■ Yalga-binbi Girls Academy Program ■ Kalgoorlie-Boulder Chamber of Commerce & Industry (KBCCI) treasure trail ■ University of Queensland’s Research for Early Cancer Diagnosis Using Gold (extending to long haul COVID-19) ■ Murra Wolka Project ■ Burnett Mary Regional Group Elliot Heads Wetlands, research centre and seagrass nursery ■ Galari Agricultural Company9 – Progress from study phase to business set up and launch Ongoing ■ University of Queensland sustainable transformational reuse and economic alternatives for mine waste study ■ 1770 Cultural Immersion festival ■ Mt Rawdon Pumped Hydro ■ Red Lake Fire Recovery Support – Emergency services capability uplift The Executive Chair on Sustainability at Evolution The Executive Chair on Sustainability at Evolution The Executive Chair on Sustainability at Evolution On behalf of the Evolution team, I am pleased to present our FY22 Sustainability Report which describes the progress we are making on delivering long-term stakeholder value through safe, low-cost gold production in an environmentally and socially responsible way. Evolution’s commitment to Sustainability has always been core to us. It drives our thinking about who we are and how we maintain our relevance for the future. Work is such a big part of people’s lives, so we create a place where we have a positive impact on the lives of our people and communities. On a global scale, we collectively experienced many challenges throughout FY22. The COVID-19 pandemic has impacted each of us in some way and is likely to continue to do so throughput FY23. We adapted to the challenges of COVID-19, floods and fires and adopted new ways to accomplish key goals whilst supporting the people and local communities to remain healthy and safe. I’m proud of Evolution’s collective response and ongoing resilience, care and dedication. I also reflect on the collective world’s response which has demonstrated the importance of collaboration, and that acting together, we have the best chance to solve some of the world’s biggest problems. The past year was a milestone for Evolution’s progress on Sustainability. It marked the fifth year of publishing the annual Sustainability Report and the tenth anniversary of our business. We also acquired Ernest Henry in Queensland, and the Kundana Assets in Western Australia, and divested Mt Carlton in Queensland. Acting on the Evolution Values of Safety, Excellence, Accountability and Respect, we worked throughout FY22 to deliver strong Sustainability performance focused on the health, safety and wellbeing of our people and local communities. The relationships we have built with the local communities and our First Nation Partners are strong, and the Shared Value Projects reflect that we have listened and worked collaboratively with the communities in which we operate. It is this improvement and ongoing commitment that will continue to underpin the mutual respect that exists. We were pleased to see the performance for Sustainability was delivered to target or better across all key metrics of health, safety, environment, water, emissions, First Nation engagement, community, risk and progress on Net Zero. However, we are never satisfied with our performance in this area, so our focus to improve is relentless. We recognise the right to work for fair wages in safe and healthy conditions as a fundamental human right and we ensure that the sites are designed to protect the safety and health of all workers. We will continue to protect the health and safety of all employees and local communities. Our people are our most important asset and we remain committed to fostering a more diverse and inclusive workplace where all people feel respected, connected, and are able to do their best work. In FY22, close to 200 of our leaders completed Leading Inclusion training on inclusive practices, behaviours and processes including hiring practices. We are also committed to increasing female and Indigenous participation across the business to benefit from the different perspectives and experiences that people from different backgrounds bring. At Evolution, we want our workplace to be free of any prejudice, bullying and harassment, where people are physically and psychologically safe, healthy, and well. As such, we have also reviewed and acted on learnings from the inquiry held by the West Australian government into sexual harassment against women in the fly-in, fly-out workforce and Rio’s external review of its workplace culture. Significant social contributions through business activities included a $2.03 billion contribution to the Australian and Canadian economies, with a $164 million contribution to the local and regional businesses and organisations. Examples of Shared Value Projects and partnerships are highlighted in this report, which we are proud and excited to showcase. Protection of the environment is one of the greatest challenges the world faces and climate change is one of largest issues accelerating the focus towards greater ESG action. Whether protecting biodiversity, ensuring climate resilience at our operations, managing water use or delivering reductions in emissions, Evolution acknowledges action is critical for a transition to a net zero carbon emissions business. We have a pathway to decarbonisation which includes the assessment of potential investment in renewable energy and investment in green technologies. We have continued to focus on addressing greenhouse gas emissions by assessing initiatives to improve energy efficiency, and to identify lower carbon energy sources. In FY22 we achieved a reduction in our emissions, both absolute and intensity (per tonne of material mined) compared to the FY20 emissions baseline. We also commenced a feasibility study for the pumped hydro energy storage scheme which could extend the commercial activity at Mt Rawdon and deliver a material amount of renewable energy and storage to the Queensland grid. Investor focus on ESG factors continues to accelerate. Improving the quality of our Sustainability reporting and disclosure has been a priority in recent years. To enhance transparent and efficient communication, we continued to align reporting with the Global Reporting Initiative (GRI), United Nations Global Compact (UNGC), Sustainable Development Goals (SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD). Our enhanced reporting has been recognised by key ratings agencies including the Dow Jones Sustainability Index Australia and maintaining our ‘AA’ rating from MSCI. We published a second Modern Slavery Statement and continued work towards meeting our compliance obligations arising from the Australian Modern Slavery Act 2018. We are also pleased to include the second United Nations Global Compact “Communication on Progress” within this Report. We believe that appropriate disclosure is essential to the management of Evolution’s sustainability strategy and targets. We are confident that this Report is accurate, balanced, and informative and provides the level of accountability and transparency that we continually strive for. Looking ahead to FY23 and beyond, we will continue to listen to our stakeholders and protect our people and the environment. We will enhance the ESG risk mitigation processes and develop a more comprehensive approach to addressing climate-related risks and exploring opportunities around increasing renewable sources, and investment in technology and biodiversity management, linked to our Net Zero roadmap. Sustainability is at the heart of who we are, and we are committed to continually improving our performance in FY23. I would like to acknowledge and thank all staff, contractors, our First Nation Partners and local communities for their dedication and ongoing contribution to Evolution’s sustainability efforts which are making a measurable impact. Yours faithfully, JAKE KLEIN EXECUTIVE CHAIR 50 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 51 About Evolution About Evolution About Evolution Evolution Mining (Evolution) was formed in November 2011 and has evolved to become a leading, globally relevant gold mining company. Evolution operates five wholly owned mines in Australia and Canada and in FY22 produced 640,275 ounces of gold at a sector leading low All-in Sustaining Cost of $1,240 per ounce: ■ Cowal in New South Wales on the lands of the Wiradjuri People Corporate strategy Our Corporate strategy has remained consistent, founded on: ■ A business that prospers through the cycle ■ Creating sustainable value for stakeholders in an environmentally and socially responsible way ■ A high performing culture with values and reputation as ■ Ernest Henry in Queensland on the lands of the non-negotiables Mitakoodi People ■ Red Lake in Ontario, Canada on the traditional territory of Treaty 3 on the lands of the Wabauskang and Lac Seul First Nations ■ Mungari in Western Australia, on the lands of the Maduwongga People and the Marlinyu Ghoorlie People ■ Mt Rawdon in Queensland located within the traditional lands of the Byelee, Gooreng, Gurang and Taribelang Bunda People who make up the Port Curtis Coral Coast (PCCC) native title claim group Company vision Inspired people creating a premier global gold company Sustainability purpose To deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way ■ Being willing to take appropriate geological, operational and financial risks ■ A portfolio of up to 8 assets in Tier 1 jurisdictions generating superior returns ■ Financial discipline centred around margin and appropriate capital returns “We are committed to operating in a way that protects and empowers people, respects human rights, fosters socio- economic development and safeguards the environment” Fiona Murfitt, VP Sustainability Our values Our values guide behaviours and decisions in the workplaces every day Safety Think before we act, every job, every day Accountability It is my responsibility, I own it – good or bad Excellence Respect We take pride in our work, deliver our best and always strive to improve We trust each other, act honestly and consider each other’s opinions Our approach to Sustainability To aid the cross-referencing of this Report’s information on our material topics to elements of the GRI Sustainability Reporting Standards and other ESG frameworks, a separate ESG Performance Data document has been prepared and links with this Report. It is available online at https://evolutionmining.com.au/sustainability/ Management approach information Management approach information related to each material topic is available in this Report and on the Evolution Mining website at https://evolutionmining.com.au/sustainability/ Information integrity and report audit We are committed to reporting our Sustainability performance annually and consistently improving data and information collection processes to ensure better quality data, transparency and insights. In the preparation of the Report, quality and relevant information was gathered, recorded, analysed and disclosed to prepare it in a way that is readily available for examination. Assurance reporting is undertaken on National Pollutant Inventory (NPI) and greenhouse gas (GHG) emissions as part of the submission to National Greenhouse and Energy Reporting Act 2007 (NGER Act). Technical experts have also been engaged to complete a range of internal and external audit processes. Contact We welcome feedback and invite readers to send any comments or enquiries about this report to Fiona Murfitt - VP Sustainability at esgreporting@evolutionmining.com.au This Sustainability Report discloses Evolution’s Sustainability related performance for the financial year ended 30 June 2022. Boundary and scope Our FY22 Sustainability Report (Report) marks the fifth year of annual reporting on the Sustainability topics that are most material to the business and stakeholders. This Report is for the period from 1 July 2021 to 30 June 2022 and discloses the Sustainability-related performance of businesses within Evolution. It has been approved for release by our Board of Directors. The Report covers operations at our 100% owned gold mines in Australia and Canada: Cowal in New South Wales, Mt Rawdon in Queensland, Mungari in Western Australia, Red Lake in Ontario and exploration activities in Australia and Canada. In FY22, we acquired full ownership of the Ernest Henry operation 10 in Queensland, Kundana Assets11 in Western Australia and divested the Mt Carlton operation12 in Queensland. Due to the period of ownership, summaries on Ernest Henry and Mt Carlton are provided in relevant sections. Unless specified, all figures in the report include the abovementioned operations for the period of ownership. The Report should be read in conjunction with our FY22 Annual Report for information pertaining to our financial Sustainability and performance. Reporting approach This Report is prepared in accordance with the Global Reporting Initiative (GRI) standards (Core Option), ensuring it presents a full and balanced picture of our material topics and related impacts, as well as how these impacts are managed. We engage with key internal and external stakeholders to ensure we understand, and report on, material Sustainability risks and opportunities. The comprehensive independent materiality assessment ensures the Sustainability performance and reporting continues to align with the priorities of key stakeholders. This Report is also aligned with the Task Force on Climate-Related Financial Disclosures (TCFD), the United Nations Global Compact (UNGC) and the United Nations Sustainable Development Goals (SDGs). 10 Effective date 1 January 2022 11 Effective date 18 August 2021; Kundana Assets represent 100% interest in the Kundana Operations; a 51% interest in the East Kundana Joint Venture; a 100% interest in certain tenements comprising the Carbine Project; and a 75% interest in the West Kundana Joint Venture 12 Effective date 15 December 2021 52 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 53 Environment Environment Environment “Being responsible environmental stewards is a critical part of our business. By using natural resources and energy efficiently, recycling and reusing waste, and working to protect nature, we deliver long-term value to all stakeholders and leave a positive legacy” Lawrie Conway, Finance Director and Chief Financial Officer FY22 highlights: ■ Environmental standards embedded at all operations ■ No catastrophic or major (material) environmental with a focus on environmental stewardship events (including tailings) ■ Further aligned disclosures with the recommendations ■ Zero significant environmental fines of TCFD through climate scenario study ■ Over 70%13 of electricity at Red Lake coming from ■ Progress on Net Zero commitments renewable sources ■ 7% reduction in emissions intensity per tonne of material mined (compared to adjusted FY20 baseline) ■ Enhanced environmental stewardship through governance and assurance practices ■ Detailed climate scenario study and decarbonisation roadmap for Cowal ■ 7,038 hectares of land within the current mining footprint ■ 42% reduction in fresh water demand per dry tonne ■ 752 hectares of land rehabilitated on mine sites milled (compared to FY20 baseline) ■ Over $275,000 contributed to improve or enhance environmental outcomes 13 Renewable electricity purchased from grid 54 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 55 Environment Approach Environmental stewardship is essential in maintaining our social licence and trust within the communities in which we operate. In accordance with the Sustainability and Strategic Planning Policy and Standards, we incorporate environmental management into all areas of operations to manage the risks and potential impacts through all cycles of the business. We operate beyond legal compliance through application of the Evolution risk framework to deliver against the social licence obligations. Environment Environmental stewardship strategic approach Continuous feedback and improvement Mining life cycle Proactive environmental management Environmental stewardship pillars Response-driven environmental management EXPLORATION DEVELOPMENT PRODUCTION ■ Brownfield ■ Cowal ■ Cowal and Greenfield projects ■ Jurisdictions include Canada, Australia and Joint Ventures Underground ■ CYD Decline development at Red Lake ■ Ernest Henry ■ Mt Rawdon ■ Mungari ■ Red Lake POST-CLOSURE ■ No mines are at the closure stage PROGRESSIVE REHABILITATION ■ Cowal Waste Rock emplacements ■ Pumped Hydro Energy Storage for Mt Rawdon ■ All operations have historic and ongoing progressive rehabilitation ■ Rehabilitation of Exploration sites undertaken in accordance to the schedule We strive for sustainable consumption and production processes at all sites, to ensure we leave a positive legacy that supports the needs of present and future generations. Our strategic approach on environmental stewardship comprises both proactive and sustained environmental management, underpinned by continuous feedback and improvement. Evolution governance framework Risk based approach to planning (includes climate related risk) Surface and groundwater Effluent, tailings and waste management Efficient land use and nature conservation Embedded environmental stewardship Air and GHG emissions Environmental management system Application of technology and innovation Circular economy evaluations Climate change Heritage protection Post mine land use Sustainable planning Stakeholder engagement Stakeholder environmental capacity building Environmental performance transparency/Reporting Timeous and effective response to events/mitigation of environmental harm Assurance: Material risk program Climate Change adaptation and mitigation plans Continuous feedback and improvement During FY22, we continued to: ■ Embed environmental stewardship across all operations through integration of our Sustainability Performance Standards and Strategic Planning Standards ■ Build capability and environmental awareness through alignment with global standards and frameworks ■ Address climate related risk including water security risk to reduce raw water demand ■ Plan for and manage extreme weather events such as flooding and forest fire ■ Assess and implement energy efficiency and greenhouse gas (GHG) emissions reduction initiatives ■ Monitor noise, vibration and air emissions to confirm the effectiveness of the mitigating measures for the protection and well-being of the environment and local communities ■ Follow strict protocols for storage, handling, labelling, and disposal of hazardous materials, including fuels, chemicals and wastes for the protection of the workforce and the environment ■ Monitor surface water, groundwater, land and nature to ■ Consult with stakeholders including the local protect and enhance environmental values communities on mine planning and post mine land use 56 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 57 Environment Environment “We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner and therefore we need to reimagine energy as we know it. This is a both a challenge and an opportunity. It is clear to me, and to our stakeholders, that if we are to play our part, we must act now – this is the right thing for the world and the smart thing for Evolution” Bob Fulker, Chief Operating Officer Climate risk and Net Zero commitment (material topic) Approach We acknowledge that climate change presents an emerging and increasing risk that will impact our operations, stakeholders and the communities within which we operate. It is an increasingly important issue for investors and stakeholders, who are seeking to understand the impact of climate change across their portfolios. A changing climate also threatens the well-being of local communities. We are committed to understanding and managing the potential implications of climate change on the business and stakeholders. Responding to climate change is governed at Board level through the Risk and Sustainability Committee. The Leadership Team has primary responsibility for the design and implementation of an effective position on, and response to, climate change related risk. Robust engagement with a variety of stakeholders (including investors, policymakers, peer companies, non-governmental organisations and communities) informs our climate change strategy and operational objectives. Milestone commitments in addressing the global issue of climate change include: Evolution’s climate change milestone commitments ■ Recognition of extreme weather, water security and health and well-being in the risk register ■ Emissions planning standard ■ Conceptual adoption of the TCFD framework ■ Focused commitment through emission reduction planning, strategic group approach to renewable energy sources, finanical modelling for Emissions reduction funding potential Pre-FY19 FY20 FY20 FY21 FY22 ■ Release of Climate Risk Position Statement ■ Identification of physical and transitional Risks including extreme weather, water security, and energy and emissions as physical risks and acknowledgement of transitional risks and pandemic ■ Release of Net Zero Commitment, joining UN Global Compact, reissue of climate risk position statement, alignment with ESG reporting frameworks, independent materiality assessment Net Zero commitment In FY21, we committed to reducing our carbon emissions by 30% (by 2030) and Net Zero by 2050 in line with the Paris Agreement. This commitment recognised that climate change is one of the most pressing problems facing all of us and that we need to take serious action if we are to have a future business, clean and productive environment and healthy society. The figure below illustrates the key levers and actions that will guide us on our pathway to achieving our Net Zero commitment. The key levers are: 1. Transition to renewables ■ Development of renewable solutions such as pumped hydro at Mt Rawdon (refer to Case Study below) ■ 2/3 of our emissions are Scope 2 2. Investment in low-emissions technologies ■ Transition to electric fleet or gaseous based fleet ■ Driven by industry and other key partners incl. government, industry associations, community groups etc ■ 1/3 of our emissions are Scope 1 3. Biodiversity investment and management ■ Changing value of our ecosystems including nature, biodiversity and rehabilitation (linked to Task Force on Nature Related Financial Disclosures) Conceptual pathway to Net Zero commitment  Phase 1 Phase 2 Phase 3 TRANSITION TO 100% RENEWABLE ENERGY (~2/3 of current emissions are Scope 2) Target >30% renewables Wind, solar energy sources New storage technologies Develop value chain partnerships Target greater % of renewables Green hydrogen Further develop value chain partnerships Leverage disruptive technologies (not required to achieve 100%) Optimise value chain partnerships ELECTRIFICATION OF FLEET & EQUIPMENT (~1/3 of current emissions are Scope 1) Energy effi ciency initiatives/ low emission technologies Further leverage disruptive technology Electric material movement (BEV & FCEV) Green hydrogen Mine-of-the future design Electrifi ed underground operations BIODIVERSITY INVESTMENT & MANAGEMENT Explore/invest off set and biodiversity management options Alignment to Task Force on Nature-Related Financial Disclosures Verifi ed and assured biodiversity off sets r e v e L n o i t c u d e R s n o i s s i m E ) % 0 7 ~ ( y g r e n e e l b a w e n e R ) % 0 2 ~ ( n o i t a c fi i r t c e l E ) % 0 1 ~ ( t n e m e g a n a m y t i s r e v i d o B i Now 2030 2040 30% reduction target 2050 Net Zero target 58 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 59 Environment Environment The key pillars of work that shape our approach to achieving our Net Zero commitment are presented in the figure below. Progress made in FY22 toward achieving our Net Zero commitment is summarised in the figure below. Evolution’s approach to Net Zero FY22 actions undertaken toward achieving Net Zero 1 3 5 7 EMISSIONS AND DATA FORECASTING • Current and forecast emissions data split by value chain emissions EMISSIONS REDUCTION PATHWAYS • Combining scenarios & financial impact assessment to design abatement pathways that are aligned with science Renewables Strategy VALUE CHAIN PARTNERSHIPS • Understand current and future value chains and emissions • Build partnerships across the value chain to meet common needs INTERNAL AND EXTERNAL REPORTING • ESG Reporting • Consistency between public statements and activities • Employee engagement • Industry Association position consistency 2 TCFD ALIGNMENT/ CLIMATE SCENARIO ANALYSIS • Assessing physical and transition risks (regulatory, market, & stakeholders) under various scenarios (RCP, NGS etc.) 4 OPERATIONAL EMISSIONS OPTIMISATION • Optimising emissions reduction projects between cost and strategic advantage (i.e. NPV) • Portfolio optimisation 6 PROJECT DEVELOPMENT AND DEPLOYMENT • Financing • Capital allocation • Strategic impacts • Operational structure In FY22, our mitigation and adaptation strategies to climate-related risks were further strengthened including: mapping our value chain emissions to better understand emissions-intensive activities; integrating climate change measures into strategic planning; increased focus on value chain partnerships; and continued education and awareness-raising on our Net Zero approach and performance. To align with climate science and the curbing of climate change aligned with the Paris Agreement targets, additional validation of the decarbonisation roadmap was completed. In the medium-term, this will focus primarily on the energy value chain, with a reduction in reliance on fossil fuels, moving to electricity generated by renewables. The longer-term focus will be on storage and ways to replace diesel fuel in mobile fleets. We have also established a dedicated Net Zero Project as part of the FY23 Balanced Business Plan, which will build upon progress made in FY22. It will continue to embed our commitment to Net Zero into the capital investment process as well as the business planning and operational delivery processes. EMISSIONS AND DATA FORECASTING 1 • Validated emissions baseline on Life of Mine forecast dataset • Validation against the Greenhouse Gas Protocol • Value chain emissions mapped  - focused on grinding, ventilation and surface haulage TCFD ALIGNMENT/ CLIMATE SCENARIO ANALYSIS 2 3 EMISSIONS REDUCTION PATHWAYS • Conducted gap analysis against Task Force on Climate-Related Financial Disclosures - currently at 90% • Climate Scenario analysis at Cowal -  water security and energy & emissions  • Developed high-level site decarbonisation roadmaps • Cowal Energy Audit  undertaken and  findings fed into decarbonisation roadmap • Renewables Approach: a draft sourcing strategy with renewables component developed for all assets 4 OPERATIONAL EMISSIONS OPTIMISATION VALUE CHAIN PARTNERSHIPS 5 INTERNAL AND EXTERNAL REPORTING 7 • Decarbonisation Evaluation Tool:  draft NPV and decarbonisation tool  developed for assessing investment potential of decarbonisation projects • Decarbonisation opportunities identified across the  operations • Member of Electric Mine Consortium:  focused on emissions reduction through electrification and other technologies • Sustainability Advantage: participation in the Net Zero Emissions Leadership Accelerator Pilot • Sustainable Procurement Framework developed  focused on energy procurement (renewables) Performance: emissions (intensity) performance tracking well against the readjusted FY20 carbon emissions baseline Governance We integrate climate change considerations into the overall business strategy through strong governance and risk management, supported by risk management protocols and the Climate Risk Position Statement14. The management of this applies ongoing continual improvement reflecting the transitional risk nature connected to emissions, which includes a dynamic reporting environment. We support the Paris Agreement to avoid climate change and recognise activities either directly or indirectly generate GHG emissions. Climate-related risks are actively reported and supported by FY22 targets established to reduce emissions and improve water security; prepare for extreme weather and health events; and to adopt responsible water management practices. The Board is informed, via the Risk and Sustainability Committee, on progress against our climate risk targets as a minimum three times a year. In FY22, the Board approved our approach towards a Net Zero future and also approved a Net Zero strategic project for FY23 (as part of the Balanced Business Plan). In alignment with the TCFD framework strategy and risk management pillars, we consider short, medium, and long-term risks as noted below15: ■ Short-term: risks which may materialise in the current annual reporting period ■ Medium-term: risks that may materialise over a 2-5 year timeframe ■ Long-term: risks which may fundamentally impact the viability of our long-term business strategy and legacy extending 5-10-20 years The inclusion of ESG factors within the remuneration strategy (referenced in the Remuneration section of the 2022 Annual Report) reinforces the importance we place on delivering on our ESG commitments. This strengthens the link between management remuneration and the management of climate risks. 14 Climate Risk Position Statement 15 All time horizons (i.e. short, medium and long term) were considered for each risk e.g for extreme weather events, we looked at cyclone (short term), droughts (medium-term) and climate change long term 60 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 61 Environment Environment Strategy We are acutely aware of the potential social, environmental, infrastructure and financial impacts that the effects of climate change have on our operations. We also recognise the crucial role of the mining sector in contributing towards the shift to operating in a low- carbon economy. Our response to climate change is integrated into our business strategy. A strategic approach to managing environmental impacts and conserving natural resources for climate related risk management has been developed. Our approach acknowledges that climate change influences the overall business through: ■ Physical climate-related parameters ■ Regulatory pressures from host countries ■ The Paris Agreement and alignment to science-based climate targets ■ Community vulnerability in countries of operation Climate scenario analysis While accurately predicting how future policies and climate impacts would unfold is challenging, scenario analysis can help highlight the range of risks that climate change may present. In FY22, we completed scenario analysis of our largest asset, Cowal. Cowal was selected to allow a comparison of outcomes and to develop a deeper understanding to inform future scenario analysis activities across the portfolio. The scenario analysis exercise was aligned with the recommendations of the TCFD. Scenarios included: 1. Business-as-usual scenario where the world warms over 4°C above pre-industrial temperatures (SSP5- 8.5 ‘Hot House World’) 2. Mid-range scenario (SSP2-4.5 ‘Slow and Steady’) 3. Well-below 2°C-aligned scenario (SSP1-2.6 ‘Speedy Net Zero’) The main sources of information for the scenario analysis were the Intergovernmental Panel on Climate Change (IPCC) (for physical risks) and the Network for Greening the Financial System (NGFS) (for carbon pricing). The analysis identified risks such as decreased annual precipitation and water shortage from extended drought and river flooding due to precipitation extremes, electricity grid reliability and the potential impact of a carbon price, at Cowal. These risk factors had previously been identified and were further assessed. In stress-testing against these scenarios, we’ve focused on indicators that can be used to support internal decision-making, while also informing stakeholders of our position. Resilience measures will continue to be reviewed and refined as the analysis evolves over time, including options to incorporate more quantitative information. Climate-related risks and opportunities Our sites are in a range of climatic zones with varying vulnerabilities to both acute and chronic physical risks, including extreme weather events; natural disasters; resource shortages; changes in the patterns and intensity of rainfall and storms; water shortages; and changing temperatures. Risk Risk description Water security: Physical – chronic ■ If extreme climatic events worsen with increased water stress, floods, droughts, sea level rises, as predicted by the climate models, further proactive management and mitigation measures may be required to ensure that operations do not experience business interruption and loss of production ■ Water-related infrastructure such as water supply reservoirs, dam spillways and river levees have been designed for historic rainfall patterns Carbon pricing: Markets Transition – policy ■ In response to climate change, governments will seek to reduce emissions from industry through the implementation of rapidly rising carbon pricing mechanisms, such as emission trading schemes or a carbon tax ■ This change presents a risk as there may be a period when increased carbon costs cannot be passed through to customers Each operation coordinates regular emergency scenario drills in preparation for extreme weather events. Examples of the scenario drills include inrush, fire, flood, cyclone and significant hazardous spill response. Opportunities associated with emerging low-carbon and more energy-efficient technologies are being tracked and assessed by operations and integrated into the business strategies, including fuel-switching, negotiation of contracts to increase the use of renewable and lower- carbon energy sources, and improving energy efficiency. Climate-related opportunities to support local communities have also been identified. We have historically assisted neighbours, local government, emergency services and communities during flood, drought and wildfire events. Climate-related risks and opportunities have been included in the strategic planning integrated across the business. The potential likelihood, severity, and materiality of these risks and opportunities to operations and communities have been proactively assessed and forecasted. They have informed the reporting requirements and targets outlined in: ■ Site Emergency Response Plans inclusive of Trigger Action Response Plans at all operations ■ Pre-wet season planning at Ernest Henry and Mt Rawdon ■ Detailed design of the Integrated Waste Landform at Cowal Regular monitoring of water level depths during extreme weather conditions and the dissemination of extreme weather preparation training at Mt Rawdon are examples of Evolution’s resilience methods to managing extreme weather events (or extreme climate-related natural hazards). Opportunity Opportunity description Operational efficiency ■ Driving decarbonisation through operational efficiency will play a key role in mitigating climate change ■ Energy savings in diesel consumption can be gained through activities such as improved payload management, idle time management and logistics and haulage optimisation ■ Opportunity to return economic value while also reducing air pollutants emitted from construction and mining operations -generating greater income or returns for the same or lower cost than an alternative may present commercial advantage to Evolution Resource efficiency Water ■ Potential for long-term climate change to impact water availability and quality ■ Demon strated efficiency in water use and management which provide enhanced corporate reputation and/or investor ratings and new business opportunities and commercial advantage to Evolution Carbon pricing ■ Acknowledged global and national carbon price trends (operations are subject to an environmental levy payment for Scope 2 emissions) ■ Developed a robust direct (Scope 1) and indirect (Scope 2) accounting program, including resetting an emissions baseline and validating it in accordance with the GHG Protocol ■ Conducted a CO2 abatement cost review focussing on marginal abatement cost curves (MACC) ■ Working on short and long-term plans to decarbonise the operations by 2050 (despite exposure to carbon price being lower than others in the industry due to Evolution’s lower emissions intensity). This includes plans to migrate to renewable energy sources and the consideration of renewable fuel, electric fleet and/or hydrogen fuel adoption ■ Tested various carbon price forecasts for Australia and Canada as part of pre-feasibility and feasibility projects 62 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 63 Environment Risk management Risk management (including that of climate change related risks) is embedded into the day-to-day operational business processes. Business risks associated with climate change impacts (including regulatory risks, physical climate parameter changes and others) are noted as significant risks to operations. Various risk management measures have been implemented, including conducting climate change risk and vulnerability assessments to be continuously updated, integrating climate-related risks into mainstream risk management plans and processes. Climate-related risks and opportunities have been included in the strategic planning integrated across the business. We manage physical climate risks through a risk management framework and in alignment with the Sustainability and Strategic Planning Policy16 and TCFD. The potential likelihood, severity, and materiality of these risks and opportunities to operations and communities have been proactively assessed and forecasted. All material risks and actions, including those related to climate change, are documented and kept current for managing and reporting purposes. Our risk assessment process is founded on site-specific exposures, including those related to climate change such as wildfires, cyclones, floods and landslides at a more regional level. With respect to physical risks, our operations are located in very different climatic regions. We are actively managing risks and opportunities, improving energy efficiency, responsibly managing water use and preparing and managing for extreme weather and health events. Climate risk management process Risk management framework Risk analysis and management Reporting oversight Risk audit Clear roles, responsibilities and accountabilities Sustainability and Strategic Planning Policy Sustainability Performance Standards Climate Risk Position Statement Risk Management Guidelines (ISO 31000) for effective and integrated risk management Consideration of climate-related risks are assessed using the same approach applied to all risks assessed by the business Management’s oversight of climate risk is supported by proactive reporting and effective escalation (eg quarterly to Board Risk and Sustainability Committee) Decision-making is supported by connected and insightful climate risk analysis Audit (internal and external) for Board to provide confidence around management of climate (both physical and transitional) risks Critical controls for climate risk are being managed effectively Learning and continual improvement Environment The climate-related physical risks and mitigation identified as applicable to the business are presented in the following table. Climate-related risk Risk Mitigation Water security ■ Reduced water availability with the potential for water security implications to the business plan Extreme weather events ■ Material damage to the receiving environment, assets and infrastructure; disruptions to operations and supply chains ■ Reduce raw water demand to support communities and agriculture ■ Increase reuse of mine affected water through design, construction and operation of process plant and tailings facilities ■ Reduce total water demand through mine design and process improvements ■ ■ Investigate water saving technologies such as dry stacking of tailings and optimised processing Increase use of hypersaline and low-quality water not suitable for other industries and communities ■ Real time dust, weather and stability monitoring including open cut and underground mine and tailings ■ Mitigation barriers to protect sensitive receptors ■ Innovative dust suppression e.g. engineered tailings cover pre-snow fall at Red Lake ■ Engineered design, construction and operation of all significant infrastructure including buildings and plant ■ Trigger Action Response Plans for incoming threat of cyclone/fire/flood/dust/storm etc Energy and emissions ■ Footprint/demand creep ■ Developing energy regulation, market demand for sustainably produced commodities and supplier surety ■ Measures, targets – quantify scope 1, 2, 3 carbon emissions ■ Energy audits ■ Emission reduction planning ■ Partnering with industry for accelerated energy efficiency ■ Internal carbon pricing modelling/assessment ■ Technology and innovation pathways Extreme health events ■ Food, water and viral borne illness which could be confined to site, the community or global ■ Health and wellbeing programs and practice ■ Fatigue management and onsite medical care ■ Food and water standards and process ■ Pandemic response plans including protection of communities and First Nation Partners and Indigenous Peoples ■ Personal proximity devices for close contact tracing ■ Specialist support and advice These risks and uncertainties could materially affect performance, future prospects or reputation. Material risks are escalated to the Risk and Sustainability Committee and, as appropriate, to the Board. 16 Sustainability and Strategic Planning Policy 64 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 65 Environment Metrics and targets We calculate key metrics and use targets to measure and monitor our performance and progress in managing climate- related risks and opportunities in line with our strategy and risk management process. Our FY22 performance is presented in the table below. Metrics and targets Status Summary of progress in FY22 Goal: 30% reduction in emissions by 2030 and Net Zero by 2050 (Scope 1 and 2) ■ Validated emissions baseline and forecast (in accordance with the Greenhouse Gas Protocol) ■ Developed value chain emissions map ■ Modelled Net Zero pathway under a 1.5 degrees celsius and 2 On track degrees celsius scenario ■ Developed site decarbonisation roadmaps which will be integrated into site level emissions reduction plans in FY23 ■ Conducted scoping and feasibility studies for electric vehicle All operations complete 100% actions in emission reduction plans Achieved use at sites Key highlights: ■ CGO: 100% of underground vents work on demand, monitored by sensors ■ CGO: Emission Reduction management plan developed against life of mine plan ■ MGO: 100kg of old uniforms recycled via ‘Upparel’ ■ MGO: Plastic wrap changed to a biodegradable wrap ■ MRO: Processing Plant Compressors were upgraded and improved the energy efficiency by 16% ■ MRO: Wind turbine and solar options trialled for telecommunications and weather towers. ■ RLO: Ventilation on Demand; ON post blasting only ■ RLO: New BEV Scoop ordered to site with a total of four BEVs in service. CASE STUDY: Electric Mine Consortium The Electric Mine Consortium (EMC), comprising Evolution and other partner companies, has been collaborating for over 12 months towards the goal of fully electrified mines. 1. Energy storage 2. Heavy underground equipment 3. Light and auxiliary equipment In this short period, the collaborative approach has been heralded as an example of inter-company collaboration on key global challenges. The EMC noted that “never in our experience have we seen this level of depth in engagement and sharing between companies in such a short space of time”. Throughout the consortium process, significant understanding has been gained of the broader industry challenge of decarbonisation, and the role in which electrification of mining operations can play. The EMC has developed six working groups, each of which aim to address a certain challenge area associated with the transition to electrification. These are as follows: 4. Surface and long haulage 5. Mine design 6. Electrical infrastructure The EMC is emerging as a key vehicle for the decarbonisation of the mining industry and will remain dynamic as the external environment continues to shift. Environment Task Force on Climate-Related Financial Disclosures We recognise the recommendations of the TCFD, and that operations may be impacted by future changes in climate. In FY19, a strategic framework for climate change which addressed governance, emissions assessments, targets and initiatives, opportunities and threats and communication was developed. Since then, we have integrated a strategic climate focus to align with the TCFD recommendations on Governance, Strategy, Risk Management, and Metrics and Targets. In FY22, a gap analysis of our TCFD disclosures was independently conducted. The analysis validated Evolution’s alignment to the TCFD framework as over 90% compliant. Disclosure alignment with the recommendations of the TCFD framework has been enhanced. This included stress testing climate scenarios for Cowal and advance understanding and disclosures of climate-related financial impacts to the business. Clarifying the impact of climate-related issues on operations and communicating mitigation measures support our relevance for the decades to come. Evolution’s approach to TCFD alignment Governance Emission assessments Targets and initiatives Opportunities and threats Communication O R K E W FY22:  TCFD Focus Area M A R F C I G E T A R T S Governance Strategy Risk management Metrics and targets “Clarifying the impact of climate-related issues on operations and communicating mitigation measures supports our relevance for the decades to come” Fiona Murfitt, VP Sustainability Criteria for updating baseline Based on guidance from the GHG Protocol17, we will update the baseline if there is a change greater than +/- 10 percent to our Scope 1 and 2 baseline year emissions as a result of a major change in calculation methodology or a change in Company profile (divestments/ acquisitions). Refer to the FY22 ESG Performance Summary Data document for our TCFD index and detailed disclosures. Near-term emissions reduction strategy In the near-term, electricity supply greening is the main source of decarbonisation. As site decarbonisation roadmaps are further developed and executed, energy and emissions reduction work is being done at each site to reduce consumption and wasted energy, and improvement mechanisms are being shared across the business. Options for renewable energy projects, site- level efficiencies and conversion of power purchase agreements are being studied. This includes the Pumped Hydro Project at Mt Rawdon which has the potential to make a significant contribution towards Queensland’s renewable energy ambitions. Four major areas of emissions present opportunities for decarbonisation: power supply, mobile equipment, stationary combustion and process emissions. To decarbonise these emission sources and ultimately achieve the goal of Net Zero emissions, activities to deliver cost competitive reductions have been prioritised. 17 GHG Protocol refers to a set of comprehensive global standards issued by the World Resources Institute and World Business Council for Sustainable Development to provide a framework to measure and report Scope 1, 2 and 3 GHG emissions from private and public sectors and across value chains. 66 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 67 Environment Environment Mt Rawdon open pit Our progress on reducing emissions and supporting climate action to date includes: ■ ■ ~30% of all electricity purchased from the grid was renewable Increasing transparency on climate disclosure by formally supporting the TCFD ■ Collaborating with the Electric Mine Consortium to reduce our carbon footprint through learning and sharing planning and evaluation techniques and technology and innovation Existing solutions are actively being evaluated and emerging technologies are being monitored to determine the current and future viability of options. To work towards Net Zero, we also continue to evaluate, monitor and advance opportunities to: ■ Apply technology and innovation to lower emissions (e.g. software monitoring of grinding efficiency, adoptions of alternate/green reagents in processing) ■ Assess the potential for using emerging technologies such as carbon capture and storage ■ Work with industry partners to advance carbon- reduction technologies for mining We continue to collaborate with partners as well as our supply and value chain partners to identify emissions reduction opportunities, including membership with the Electric Mine Consortium. CASE STUDY: Renewable powered weather station and the Mt Rawdon Pumped Hydro project In keeping with our commitment to Net Zero and local community engagement, the Mt Rawdon operation is focused on a transition to renewable energy. Initiatives during the operating phase include a renewable powered weather station and for the post mine transition a Pumped Hydro Feasibility Study for energy storage. Mt Rawdon operation partnered with a regional wind power company, Diffuse Energy, in a project to transition their weather station fuel free. The weather station is currently run on solar and has a backup that uses a diesel generator to provide electricity. The Maintenance team collaborated with Diffuse Energy to install a wind turbine fan onto the weather station. The $2,500 project supports a study into the feasibility of similar equipment at the site. The project further boosts the onsite usage of solar energy and strengthens it with wind-generated electricity. The weather station is set to be completely emissions-free, and reliant on 100% renewable energy, contributing to emissions reductions and leading to a reduction in operating costs. Integrated solar and wind will help to support the installation of a regulator and battery capable of storing energy generated by both renewable sources. We are progressing a Feasibility Study on the Mt Rawdon Pumped Hydro (MRPH) Project, which is reviewing the conversion of the existing open pit into a 1-2GW pumped hydro project at the end of the mine’s operating life. The MRPH Project is being progressed in partnership with Infrastructure Capital Australia Partners and the Feasibility Study is expected to be completed in FY23. Over the past year the MRPH Project has progressed its design, stakeholder engagement, environmental surveys and connection to the grid and while also commencing in parallel with the permitting process, with the results to date giving us further confidence in that the viability of the MPRH project. The MPRH Project is currently planned to be commissioned in 2028 and can support the Queensland government’s target of achieving 50% renewable energy by 2030 as well as the Federal government’s 43% 2030 emissions reduction target by potentially providing support to firm the supply of up to 6,000MW of additional renewable generation (subject to the MRPH project’s final configuration). The MRPH use of the lower pit will be integrated into the site’s progressive closure and rehabilitation, providing ongoing jobs for the local community and extend the mines contribution to the State economy and the broader National Electricity Market (NEM). Planning with decision-makers and experienced partners is ongoing. Further information is provided on our website. Mt Rawdon mine site - potential future pumped hydro electricity generation plant Energy and emissions (material topic) Approach We aim to reduce energy consumption and increase the use of renewable energy, while enhancing operational productivity. When measuring emissions performance we apply a location-based method18, which reflects the average emissions intensity of grids on which energy consumption occurs. Detailed monthly capture and analysis of the energy and emissions performance is conducted in alignment with the Evolution Sustainability Standards19. Our Net Zero commitment was based on the baseline data derived from an aggregate of all Evolution assets’ emissions profile in FY20. The baseline has since been recalculated and aligned with the GHG Protocol due to the divestment of Mt Carlton and acquisition of Ernest Henry and Kundana assets. This adjustment is reflected below in our emissions performance. Operations are proactively engaged in achieving the medium-term and long-term emissions targets through understanding their carbon footprint, developing industry partnerships and investigating technology pathways as outlined in the ‘Climate Risk’ section. We recognise our contribution to greenhouse gas emissions, not only in terms of direct emissions, but also in terms of the value chain and indirect emissions. Our Scope 1, 2 and 3 emissions are externally validated, with Scope 1 and 2 included in this Report. The Scope 3 emissions are estimated values in anticipation of increasing data collection and achieving greater transparency in our greenhouse gas reporting and we will continue to review and evaluate these over the coming year. Performance The FY22 Group emissions performance compared to FY20 is provided in the table below. GHG emissions FY22* FY20 (adjusted baseline)** Change (%) Greenhouse gas emissions Scope 1 (t CO2-e) 221,168 Greenhouse gas emissions Scope 2 (t CO2-e) 463,753 Total of Scope 1 and Scope 2 (t CO2-e) 684,921 222,928 477,450 700,378 -1% -3% -2% *FY22 emissions actuals exclude three-month control of Mt Carlton and include 12-month data for Ernest Henry noting only six months of control **FY20 emissions baseline validated in accordance with the GHG Protocol **FY20 emissions baseline includes current/acquired assets and excludes divested asset (Mt Carlton) GHG emissions broadly correlate with the energy-consumption trends because Scope 1 reflects emissions from consumption of fuel while Scope 2 reflects emissions from consumption of electricity. In FY22, the total consumption of energy from fuels and electricity continued to trend downwards with a 2% net reduction. Red Lake are currently benchmarking the adoption of renewable energy for Evolution with 72% of their electricity from renewable sources. Direct investment in renewable energy is the preferred strategy to address the transition to Net Zero emissions with opportunity presenting through continuous greening of the grid in each jurisdiction Evolution operates in. Solar and wind powered weather station at Mt Rawdon 18 Greenhouse Gas Protocol 19 Sustainability Performance Standards 68 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 69 Environment Environment FY22 renewable vs non-renewable electricity (GJ) consumption (%) Renewable vs non-renewable electricity consumption FY16 - FY22 (GWh) FY22 Total energy consumption by operation (GJ) 30% 70% 6 4 5 2 9 4 3 4 4 8 1 4 9 1 4 4 4 5 5 1 5 4 6 3 8 0 8 6 0 3 4 8 8 2 1 3 2 6 1 Y F 7 1 Y F 8 1 Y F 9 1 Y F 0 2 Y F 1 2 Y F 2 2 Y F Renewable electricity Non-renewable electricity Renewable electricity (GWh) Non-renewable electricity (GWh) Scope 2 emissions Scope 2 emissions reflect two thirds of emissions, with Cowal operations in NSW contributing almost half of all emissions. There will be an increased focus in FY23 on efficiencies improvement plans, looking to integrate solutions where they will have the most impact. FY22 Scope 1 and Scope 2 emissions by operation (t CO2-e) FY21 vs FY22 Total emissions (Scope 1 and Scope 2) by operation (t CO2-e) 9 2 3 9 9 1 , 5 7 3 , 1 0 1 l a w o C 1 4 2 0 3 , 7 0 6 6 , 4 1 2 4 7 , 4 7 2 5 4 , 7 1 4 3 6 , 3 8 1 , 9 2 e k a L d e R i r a g n u M n o d w a R t M 1 9 0 0 2 1 , 7 6 7 4 1 , y r n e H t s e n r E , 4 0 7 0 0 3 , 8 3 2 0 9 2 l a w o C 8 4 8 6 3 , 6 3 3 8 2 , e k a L d e R 4 7 7 6 6 1 , 8 8 4 9 1 1 , 6 0 3 3 3 1 , 8 5 8 4 3 1 , 2 6 0 5 9 , 0 0 6 2 9 , i r a g n u M n o d w a R t M y r n e H t s e n r E Greenhouse gas emission Scope 2 (t CO2-e) Greenhouse gas emission Scope 1 (t CO2-e) FY22 FY21 Ernest Henry, 18% Mt Rawdon, 10% Mungari, 16% Cowal, 35% Red Lake, 20% Scope 3 GHG Emissions Our (internal) Scope 3 emissions reporting is underpinned by the following principles: ■ Transparency in the methodology and selection of material sources – since Scope 3 is voluntary, we are very clear about the path we’ve taken ■ Setting a good foundation and structure for reporting ■ Continuous improvement around disclosures in future years According to the GHG Protocol, there are 15 reporting categories to consider when calculating Scope 3. In FY22, as a step towards progress around Scope 3 GHG emissions associated with the value chain, we have: ■ ■ Internally calculated Scope 3 emissions across five categories aligned with the Greenhouse Gas Protocol, including four categories from upstream activities and one category from downstream Identified which categories should be included and which can reasonably be excluded without significantly impacting Evolution’s final emissions footprint ■ Validated data through third party Scope 3 emissions will continue to be tracked and audited and will be fully disclosed in future reports. Energy and GHG emissions intensity Intensity ratios allow the analysis of energy consumption and GHG emissions data in the context of an organisation specific metric. We use the “per tonne mined” intensity metric, as it enables us to analyse data in the context of activity at all sites. The FY22 emissions intensity performance compared to FY20 baseline is presented below. Emissions intensity (CO2-e) FY22 (adjusted baseline)* % change Emissions intensity per tonne material mined (t Scope 1 and Scope 2 CO2-e/tonne) 0.0140 0.0151 7% * Adjusted FY20 emissions baseline to include current assets and exclude divested asset (Mt Carlton) FY20 70 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 71 Environment Environment GHG emissions intensity FY20 - FY22 (t CO2-e/tonne of material mined) Effluents and waste (material topic) Approach We ensure that the waste and product materials generated from mining and processing are handled, stored and disposed of appropriately. The most substantial waste stream was mineral waste. Mineral waste is defined as excess material removed from the mine void in order to reach the ore body and remaining materials after the extraction of mineral from ore during processing. All mineral wastes were handled in accordance with the Evolution Sustainability Performance Standards and licence conditions. Operations managed waste in accordance with a site- specific Waste Management Plan. Non-hazardous waste streams such as cardboard, glass and plastic were recycled, and general household waste were diverted to landfill. Each operation is unique in terms of potential for acid mine drainage (AMD), neutral mine drainage (NMD) and saline drainage (SD) potential generation through mineral waste movement and placement. Where management of potentially problematic material is uncertain or known to occur, the operation implements progressive rehabilitation activities to ensure the receiving environment is not impacted during the operational and closure phases. Management of mineral waste was achieved by application of an integrated planning approach. All mineral waste was geochemically categorised prior to mining, haulage, treatment, placement and encapsulation prior to rehabilitation. The integrated planning approach ensures protection of environmental values of the natural environment where we operate. Performance In FY22, the operations produced 27,088,189 tonnes of waste rock to extract 22,815,747 tonnes of ore. This represented a 1.19 ratio of waste to ore and a decrease from the 3.3 FY21 ratio20. Moving less waste rock has contributed to the efficiency across the operations. The strip ratio decreased largely due to the inclusion of Ernest Henry which uses a block caving mining methodology. All material mined at Ernest Henry is combined and processed thus zero waste is reported for Ernest Henry. The strip ratio at Cowal reduced from 4.39 in FY21 to 1.25 in FY22. A higher proportion of waste was mined in FY20 and FY21 due to the mining of the cutback. The strip ratio at Mungari also reduced from 3.85 in FY21 to 2.87 in FY22. Waste to ore strip ratio by operation FY20 - FY22* 7 5 1 0 0 . 8 4 1 0 0 . 7 2 1 0 0 . 0 0 3 0 0 . 3 5 2 0 0 . 0 8 2 0 0 . 9 6 1 0 0 . 7 4 1 0 0 . 5 2 1 0 0 . 4 9 0 0 0 . 0 2 1 0 0 . 8 1 1 0 0 . 1 8 1 0 0 . 7 0 2 0 0 . 0 1 2 0 0 . 1 5 1 0 0 . 9 2 1 0 0 . 0 4 1 0 0 . Cowal Red Lake Mungari Mt Rawdon Ernest Henry Evolution Aggregate FY20 FY21 FY22 and storage. The electric fleet brings the opportunity to save on maintenance, cooling, and ventilation costs with reducing expenditures related to diesel and power usage. This cost-saving and energy efficiency has similarly been seen in the recent changes to the underground vent fan timers which are vital in clearing the drives post blasting of headings. After assessing the timer programming, the functionality of the fan timer switch was altered so that operators can run them when needed rather than running automatically. This project resulted in a 10% decrease in total site electricity demand for two (2) 1-hour events each day. This is now an embedded practice. A 7% reduction in emissions intensity (per tonne of material mined) was achieved in FY22 compared to the FY20 baseline (0.015 CO2-e/t). The performance of 0.014 CO2-e/t material mined was within the target range. The decrease in emissions intensity per tonne of material mined are mainly attributed to efficiency improvements at Cowal (19%), Mungari (26%) and Red Lake (7%). These efficiency improvements can be attributed to a lower demand for diesel and electricity per tonne of material mined. Evolution assumed control of Ernest Henry in January 2022 and are exploring opportunities to improve performance in coming years through a transition to renewables and application of innovative technology. Case Study: Reducing emissions through battery electric vehicles and operational shifts Each operation is empowered to implement emission reductions specific to their operating strategy. For example, Red Lake is pursuing fleet replacement and energy efficiency through deepening partnerships with Epiroc and Prairie Machine (Rokion) who are battery electric vehicle (BEV) service providers, and through operational changes via fan timers for the underground ventilation. Red Lake has leveraged off Epiroc’s offering of conversion kits to transform diesel-powered loaders easily and seamlessly to battery-electric driven. Two converted diesel-powered Scooptram ST1030 machines have been ordered for deployment underground. Two Scooptram ST14 battery loaders designed based on the diesel ST14 version have also been ordered and are scheduled for delivery in 2022. Three Rokion electric light vehicles, two R100s and an R400 have also been ordered. These items have been risk assessed in the field, have dedicated charge stations and are capable of online data capture 7 3 5 . 9 3 4 . 5 2 . 1 7 6 0 . 6 5 0 . 8 8 . 1 5 8 3 . 7 8 2 . 5 5 . 1 5 8 . 1 2 4 2 . 3 4 6 . 9 1 . 4 3 5 3 . 6 0 3 . 0 3 3 . 9 1 . 1 Cowal Red Lake Mungari Mt Rawdon Mt Carlton Total Strip ratio FY20 Strip ratio FY21 Strip ratio FY22 *The strip ratio for Ernest Henry is 0 due to the Block cave mining method; all the material being mined is considered ore. Scooptram ST14 battery loaders 20 Adjusted FY20 figure to include current assets and exclude divested asset (Cracow). 72 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 73 Environment Environment Non-Mineral waste Responsible management of non-mineral waste at our operations is formalised through the implementation of comprehensive waste management plans. These plans specify how the different types of waste produced by activities are to be managed, including identification of opportunities for waste minimisation, recycling and reuse. During FY22, approximately 16,015 tonnes of non-mineral waste was generated, of which 68% was classified as non-hazardous waste. All waste generated was stored and recycled or disposed of following applicable waste regulations and the site waste management plans. Recycling of non-mineral waste increased by 15% in comparison to FY21, resulting 38% of the total non- mineral waste being recycled across our operations. CASE STUDY: Recycled core trays & biodegradable sump lining In line with growing discussions on circular economies and reducing waste, we remain committed to being innovative in the management of waste. At exploration sites across Australia, this innovation has been seen with trays that hold the core samples. A few exploration sites have started utilising Discoverer core trays which are made of recycled plastics. By utilising Discoverer’s products, we are contributing to the 1.5 million kilograms of kerbside plastic saved from landfills by Discoverer each year. Tailings management (material topic) Approach We are committed to tailings management aligned with global best practice for safety, the environment and communities during all phases of the facility lifecycle. The tailings management approach is open and transparent, including a full list of tailings facilities (provided in the Church of England Tailing Disclosure21). The tailings facilities are planned, designed, constructed and operated in alignment with leading industry practices and guidelines. In alignment with the Global Industry Standard on Tailings Management Standard (GISTM)22, tailings management further integrates climate change, stakeholder engagement, emergency management, local communities, receiving environment, dam safety and post mine land use. Review and Assurance Tailings risk assurance is achieved through rigorous design, construction and operations management, routine inspections and monitoring and independent review and audit processes. Risk reduction is our highest priority, and we are working toward this through continual review and improvements of design and operation practices to reduce the risk. Currently, a portion of the tailings is repurposed at Mungari and Red Lake to stabilise underground operations. This practice will include the Cowal operation in 2023 as the underground mine is developed. Discovery team looking at core samples 21 Church of England Tailing Disclosure 22 Global Industry Standard on Tailings Management Standard Performance Material risk management: All sites have a Critical Control program and regularly report on verification outcomes. Monitoring and surveillance: All sites employ monitoring and surveillance systems to monitor the facility performance over time. Where applicable, real-time monitoring is utilised and satellite monitoring is also included for all the facilities. This information is integrated into a management system with triggers and response by all sites for active facilities. Site-based responsible person: Sites are required to identify a Responsible Person to ensure ownership and proper management of the tailings facility. Dam safety inspections: Formal dam safety inspections are conducted at least annually by the Designer/Engineer of Record, and reports are issued to the Responsible Person for action on recommendations. Independent review: We require operations to review all designs and conduct dam safety reviews at regular intervals. Where facilities have a High or Extreme Consequence Classification it is required that the operation engage an Independent Tailings Review Board (ITRB) (LOD3). Red Lake established an ITRB in 2020 and other operations that complete annual tailings dam risk reviews aligned with the requirements of GISTM. Mt Rawdon will complete an ITRB in 2023. Tailings governance: LOD2 tailings assurance is undertaken annually with each operation conducting a quarterly performance review focusing on impoundment stability, integrity, risk review and the planning coordination. Evolution Group, supported by external advisors, provide oversight as to whether the tailings facility design and performance meet accepted standards/codes of practice. Performance reports are provided to the Tailings Governance Committee and Risk and Sustainability Committee. Tailings risk was controlled and further reduced in FY22 by: 7 active tailings facilities globally 14Mt ORE mined from open pit 8.8Mt ORE mined from underground 640,273 gold ounces recovered 21.3Mt discharged to tailings 24% tailings reuse at Red Lake for paste fill – 162 kt 14% tailings reuse at Mungari for paste fill – 267 kt Improved drainage recovery systems in new construction at Cowal and Mungari Internal and external training from operator to Board level Continuation of quarterly Tailings Governance meetings at site and Group and oversight by the Risk and Sustainability Committee Independent biennial governance audit for all operations and Independent Tailings Review Board for Red Lake Recertification for Cowal and Red Lake to the International Cyanide Management Code Studies – dry stacking, enhanced thickening, reprocessing of tailings, in-pit deposition Board and Leadership Team Tailings Awareness workshop Tailings Community of Practice – Material risk review; collaborative development of Bowtie and Critical Control Plans 74 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 75 Environment Environment Environmental compliance (material topic) Approach The operations are subject to environmental regulation in the various jurisdictions in which it operates. Permitting, approvals and legal compliance are crucial for the effective management of mining-related activities to protect environmental values as well as the interests and rights of local communities. Permit and licence provision supports minimum requirements to ensure the health and safety of the communities and the protection of the environment. Operating under relevant licence conditions, all operations are required to provide annual compliance reports to demonstrate conformity with current legal and other obligations supported by assurance activity. A uniform internal reporting system is used across all sites. All environmental events, including non- conformance of any regulation or law are assessed according to their actual or potential environmental consequence. Given levels of environmental incidents are tracked based on factors such as spill volume, incident location (onsite or offsite) potential or actual environmental impacts and legal obligation. These levels include: I (insignificant), II (minor), III (moderate), IV (major), V (catastrophic). Performance In FY22, there were no significant fines paid (> US$10,000) related to environmental impacts. There were no material environmental incidents in FY22 (major or catastrophic) and one reportable event (classified at a moderate level) were notified to the relevant government authority and the relevant agreed action was taken. Cyanide destruction systems are adopted to reduce the concentration of cyanide discharged to the facilities and Cowal and Red Lake have been recertified against the International Cyanide Management Code. Air quality Approach We are committed to monitoring and mitigating its impacts on air quality. The management of dust and other airborne pollutants mitigates the impact on sensitive receptors and occupational health issues. The management and minimisation of air emissions by mining operations is required to protect sensitive receptors in the vicinity of the operations. Air quality is managed according to the Sustainability Performance Standards, sites’ licence to operate and regulations to ensure that air emissions remain within the specified emissions limits. Air quality monitoring equipment is used to track and validate the performance and efficiency in of air quality management. Air quality monitoring is carried out by third-party accredited laboratories on a quarterly basis and externally reported. We continually seek ways to improve air quality at all operations. Performance In FY22, all operations were in full compliance with regulated limits for particulate emissions. Monitoring of depositional dust at the operations met licence conditions. Refer to the FY22 ESG Performance Summary Data document for performance around air emissions related to GHG emissions. Water management (material topic) Approach We acknowledge access to safe, clean water is a basic human right and central to maintaining healthy ecosystems, to communities’ livelihoods and quality of life and to the business’ Sustainability. Globally, the social, cultural, environmental, ecological and economic value of water has led to greater scrutiny of responsible water use and expectations from stakeholders for improved resource stewardship. This increased awareness of water security, the acknowledgement of the human right to water and sanitation, and recognition of environmental linkages, such as climate change, form the basis of our strategic approach to securing and efficiently using water as a resource. The Executive Chair is responsible for our water management strategy and performance; the performance is governed at the Board level through the Risk and Sustainability Committee. Our water strategy and operational objectives are informed by robust engagement with a variety of stakeholders, including investors, policymakers, peer companies, non-governmental organisations and local communities. We seek to minimise operational water consumption, make effective use of water in the processes, and ensure that any effluents are treated to meet required water quality standards. While the operations are not located in areas of high-water stress, each operation maintains water management plans and site-wide water balances to guide responsible water use throughout the mine lifecycle and in the context of the local catchment. Water-related activities are regulated by relevant legislation in each jurisdiction and are subject to set quality and quantity thresholds. Performance Total water withdrawn increased in FY22. The increase in water withdrawn was due to the inclusion of Ernest Henry operation, East Kundana Joint Venture and Kundana operations at Mungari. Water security improved by a decrease in freshwater demand: 0.31kL/dry tonne milled (42% improvement in FY22 compared to FY20 baseline). The aim is to maximise the reuse of mine affected water (MAW) to reduce the demand for external raw water supply which reduces competition for agricultural and other industries and communities. No Evolution operations are in high to extremely high baseline water stress areas according to definitions set in the WBCSD Global Water Tool, WRI Aqueduct Global Water Tool or Water Footprint Network. Total water reuse increased by 24% between FY21 and FY22. Notable increases in water reuse were recorded at Cowal (10%) and Mungari (17%), demonstrating the increased focus and planning associated with water reuse at all operations. Water reuse FY18 - FY22 (ML) 0 8 6 8 , 8 1 0 7 , 5 9 1 , 9 5 4 5 8 , 8 8 0 , 1 1 5 7 4 9 , 2 5 7 2 1 , 2 0 8 , 1 1 0 7 8 , 1 2 3 6 6 4 1 , 8 1 Y F 9 1 Y F 0 2 Y F 1 2 Y F 2 2 Y F Each operation manages the hazardous chemicals lifecycle in accordance with the minimum standards outlined in the Sustainability Policy and Standards. The use of hazardous chemicals is regulated by relevant legislation in each jurisdiction and is subject to specific licences, approvals and is inspected routinely by the regulator. The Sustainability assurance program also completes audits at each site to ensure minimum standards are being met and to identify best practice learnings are shared across the business. Performance Total water use (ML) ■ Cyanide Code compliance at Red Lake and Cowal Water recycled/reused (ML) *Actuals reported as per assets owned at time of reporting Detailed information on our water withdrawal, discharge and consumption by source and region can be found in the FY22 ESG Performance Data document. In FY22, the water withdrawn intensity per tonne of ore processed increased by 23%. The increase is attributed to the inclusion of acquired assets Ernest Henry, East Kundana Joint Venture and Kundana in the water intensity measure. This is a whole of site water demand measured as per DTM. Mungari with the inclusion of East Kundana Joint Venture and Kundana has a relatively high-water intensity of 3.10 kL/tonne; and Red Lake has a water intensity of 4.11 kL/tonne. Noting that Red Lake is the only Evolution site to operate an Autoclave and be undertaking extensive reclamation activities in the treatment of legacy Arsenic Trioxide materials from underground workings. Our future efforts in water management will include continued focus on water security – mitigation of the effects of extreme weather events (drought and flood) through a reduction of total water demand, increase in water reuse, water storage and stormwater, sediment and erosion control best practice controls. Hazardous chemicals management (material topic) Approach The operations have specific management plans and guidelines governing collection, separation, storage, reuse, and disposal of waste, reflecting local legislation and the commitments in the environmental impact assessments. Waste generation and disposal, including the activities of waste disposal contractors, are monitored across all operations according to regulatory requirements and internal procedures. Hazardous chemicals including the use of explosives, cyanide and other dangerous goods are essential to mining and processing activities. We recognise the need to ensure hazardous chemicals are managed through their lifecycle in accordance with risk management principles to avoid risk to human health and ecosystems. ■ Permit and or licence compliance for all explosives, dangerous goods, chemicals and radiation devices ■ Chemical approval required prior to entering operations including risk assessment ■ Emergency response spill scenario training at all operations ■ Internal Audit and review validated by external auditors Land use and biodiversity (material topic) Approach We have an important role in biodiversity stewardship – contributing to the proper assessment of biodiversity conditions, minimising habitat degradation, and planning for habitat restoration during the life of mine cycle. Local stakeholders are valuable sources of knowledge concerning biodiversity, and we work closely with the local communities to identify sensitive areas and monitor any potential impacts. We incorporate all stakeholder concerns into the environmental stewardship approach. Our biodiversity strategy is linked to the stage of development of projects. As an example, at all operations, including exploration, biodiversity risks are actively mitigated through ongoing field mapping of fauna and flora, as well as land disturbance permit process. Sensitive flora and fauna are only impacted where the internal and external permitting process have been met and no other alternative is available. We strive to apply the mitigation hierarchy with the ambition of no net loss in protecting biodiversity and ecosystems. We do not conduct exploration or mining operations in protected areas and commit to the protection of World Heritage Sites. Biodiversity Management Plans which meet the requirements of the Sustainability Performance Standard are in place at all sites, where required, and are regularly reviewed. All activities are monitored in accordance with obligations. Biodiversity assessments are undertaken in the project planning phase to identify risk of impact biodiversity and mitigation opportunities which inform the development of operational plans at each site in alignment with the standard. 76 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 77 Environment Performance ■ No impact to any World Heritage Site ■ Disturbance permitting process embedded at all mine MRO Sustainability Superintendent, Paul Wright, notes that “Everyone associated with the local area and Evolution can be proud of this trail”. Social Social and exploration projects Mine Closure: Rehabilitation (material topic) ■ Annual review of biodiversity management plans Approach ■ 7,038 hectares of land are currently managed under biodiversity management plans related directly to mining ■ Receiving environment protection through sediment and erosion control including the Cowal Lake Protection Bund ■ Partnerships with conservation NFP including Lake Cowal Foundation and Burnett Mary Regional Group ■ The status of disturbed and rehabilitated land at the operations can be found in the FY22 ESG Performance Data document. CASE STUDY: Mt Perry summit walk opening The creation of the Mt Perry summit nature walk was the result of a partnership between Evolution, the Mt Perry Community Development Board, Gidarjil Development Corporation, North Burnett Regional Council, and Queensland Parks and Wildlife Service. Throughout FY22, the walk was upgraded to a safe and marketable Class 3 Standard, signage was implemented, tourism and local economic development were stimulated, and training was provided to 15 Indigenous trainees. Trainees were trained in land management and construction qualifications while building the track. In August 2021, after two years of planning and a year of construction, the new and improved Mt Perry summit walk was officially launched. Created by local indigenous trainees, with support from expert rangers and other project partners, the walk is now open to the public who can witness the diverse vegetation communities from dry rainforest to fern-clad hillsides, and various fauna such as wallabies, koalas, short-beaked echidna, and the rainbow bee-eater. The objective of our mine closure plans is to ensure that the environment where mining activities take place is restored to long-term sustainability, which may be a similar condition to what existed before mining took place, or a condition suitable for another use. We have obligations to make operational and financial provisions to ensure the mine closure plans, rehabilitation and remediation activities are completed. Closure planning is progressed at sites and financial provisions updated accordingly. We plan for closure from the earliest stages in the life of mines, ensuring allocation of adequate resources for closure activities to be properly implemented, managed and monitored throughout the active-closure and post-closure phases. The Mine Closure Planning Standard requires the use of a responsible approach to land management through the operational phase and into closure. Closure planning requires the definition of site-specific closure objectives and completion criteria for each operation. Closure plans require to be developed to a level of detail that reflects the stage of each mine’s life cycle, and they are updated in accordance with the Standard and regulatory requirements reflecting operational changes and progressive rehabilitation requirements. Progress reports on implementation and compliance with ongoing reclamation commitments are submitted to regulatory authorities and third-party auditors annually. Performance ■ Enhanced stakeholder engagement in the planning phase considered business as usual ■ ■ 7,038 hectares of land disturbed by mining activity 752 hectares of land rehabilitated ■ Site Closure Plans – 100% of all operational sites ■ Annual Mine Closure Assurance Audit and Mine Closure Insurance Audit (LOD3) ■ Ongoing wetlands trial at Mt Rawdon ■ $416 million23 financial assurance approved by regulators at 30 June, 2022 (refer to table below) Operation Type Financial Assurance Cowal Ernest Henry Mungari Mt Rawdon Red Lake Surety bond Levy Levy Levy Letter of credit $64,902,072 $183,253,493 $49,473,395 $47,294,858 C$63,386,000 23 Red Lake’s rehabilitation liability converted from C$ to A$ using exchange rate as at 30 June, 2022 78 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 79 Environment Health, Safety and Wellbeing Health, Safety and Wellbeing FY22 highlights COVID-19 management supported people and the community with minimal operational interruption 96% of actions in Safety Improvement Plans completed 100% of material and critical actions closed as per target $2.5M in direct and indirect support to our people and community since COVID-19 pandemic began Refreshed audit program completed with positive independent assessment of the protocols Leading safety metric improvements – proactive reporting, field interactions, action close out Active reporting, learning and sharing culture supported by weekly risk-based storytelling sessions Safe and successful integration of two new acquisitions and one divestment 34% reduction in Injury Severity (compared to FY21) during a period of significant change Increased services to meet demand for mental health and wellbeing support during COVID-19 ZERO fatalities A strong culture of hazard reporting continues with hazard reporting up 84% in FY22 compared to FY21 80 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 81 Health, Safety & Wellbeing Health, Safety & Wellbeing Work health, safety & wellbeing (material topic) Approach Health, Safety and wellbeing has long been a core value and strategic priority for Evolution. We are committed to providing workplaces where our people including contractors and business partners are physically and psychologically safe, healthy, and well. We take a holistic approach to risk identification and management to provide a healthy and safe working environment for our people. Risk management principles are applied that seek to eliminate where practicable. Where this is not possible, risk is managed within agreed tolerability levels. This is supported through the ongoing review and improvement of risk including bowtie risk assessments for material and critical safety risks and the identification and active management of critical controls associated with these. In FY22, there were no work-related fatalities for Evolution controlled locations or activities, and we continue to build on efforts to improve health and safety performance, reduce incident frequency and prevent the recurrence of incidents. We believe that every injury is preventable, with an ambition that we create a workplace where people can thrive and contribute - where people go home better than what they arrived. The workforce remained actively involved in health and safety throughout FY22 by participating in working groups, pandemic crisis management teams, special projects, business improvement initiatives, health and safety committees. All activity sought ongoing engagement, supported by designated employee health and safety representatives. We are never satisfied with our Health and Safety performance and continual improvement requires a collective effort across all levels of the organisation. Evolution’s workforce is expected to comply with health and safety requirements, supported by systems and processes, including the Sustainability and Strategic Planning Policy, and the associated Standards. Health and Safety performance is measured using a combination of lead and lagging indicators, with performance targets established during the annual business planning process. The primary lagging indicator for measuring health and safety performance, and for benchmarking against peers, is the Total Recordable Injury Frequency (TRIF). TRIF is a Group-wide key performance indicator (KPI) and the achievement of our annual safety targets forms part of the remuneration package for employees and executives. Other lagging indicators include the Lost Time Injury Frequency (LTIF). All frequencies are calculated based on a 1,000,000 work-hours formula using OSHA principles. Leading indicators are also measured and reported on a monthly basis including proactive reporting ratios, training compliance rates, field interactions, investigations closed on time and an action close out on time calculation. The Injury Severity rate looks at incidents in terms of the actual number of days that were lost on average. By continually striving to improve the health and safety of our work practices, we can have a direct and positive effect on the stakeholders, including our employees, contractors, suppliers, and those who live and work in the communities where we operate. Governance, risk management & assurance A strong health and safety culture is promoted across the business through governance, with the Board being ultimately responsible for Evolution’s health and safety performance. The Leadership Team is accountable for developing and implementing health and safety systems and processes to deliver performance standards, with General Managers accountable for performance at each operation. We have health and safety committees at each operation to support the leadership in decision making, risk assessment, monitoring performance, and ensuring widespread sharing of health and safety information. Health and safety improvement plans have been implemented across the business to achieve continuous improvement in performance that is aligned with the Risk management framework. This plan establishes clear accountability for health and safety performance, details the controls and practices for minimising hazards, and ensures effective audits of health and safety systems. There is also a requirement for regular reviews and updates of these plans, informed by worker feedback. Staying safe on site requires constant vigilance, education, training and a high awareness of risk. We strive to create strong safety culture grounded in risk and hazard awareness. Some of the ways we work to embed a safety culture include: ■ Leadership training: Site inductions, values training and leadership essential training is undertaken annually. It is also an expectation linked to targets and plans that management undertake regular field safety interactions ■ Daily pre-start briefings: Each department holds a health and safety briefing at the beginning of each shift to discuss safety activities and review any incident that may have occurred, including the findings and actions, to consider how they relate to their own hazards and controls ■ Monthly safety toolbox meetings: Each month education and awareness campaigns on a wide range of safety topics such as food safety, vehicle incidents, hand injuries, fatigue management or the safe handling of tools are completed ■ Regular safety inspections: All equipment and tools are inspected at the start of each shift to ensure they are fit for purpose. Regular personal protective equipment (PPE) inspections are also conducted. It is a clear expectation that workers comply with all requirements and that they must not change or tamper with any safety devices (including PPE) ■ Review, share and learn sessions: These calls are undertaken weekly to share learnings related to incidents so learnings can be shared to prevent recurrence. This also promotes learning through active storytelling and are supported by a two-page report on the incident ■ Near miss reporting: We do not just report incidents after they have happened. We also support proactive reporting that includes any near-miss incidents, which we view as an important early warning system that can help prevent more serious incidents from occurring. This includes reporting for all incidents related to drugs and alcohol. Random testing occurs across all operations ■ Investigations and learning: Investigations, both proactive and reactive and the sharing of outcomes are a fundamental part of the approach to health and safety. Incidents and any failure to adhere to established obligations are investigated under a fair and just system. All investigations outcomes are available online and are also shared via a weekly incident update called the “daily flash” report Each incident is thoroughly reviewed and assessed by the site Health, Safety and Environment (HSE) team to identify the root cause and corrective actions to prevent recurrence. The more near misses and hazards that are reported, the better we can understand the risks on site and work to manage and mitigate them. Hazard identification and mitigation Risk register Each operation is supported by a risk register that identifies the key risks associated with its operation. Each risk is ranked according to its potential severity and is supported by the risk source and the mitigating controls required to reduce the potential severity to an acceptable level. Scheduled risk reviews are conducted at a site leadership team-level and a regular review of safety management across the business is undertaken as a minimum annually. All leading and lagging indicators, and progress against safety targets are reviewed. Additionally, all identified corrective and preventative actions related to the lagging indicators are assessed to ensure that they remain relevant and effective or if additional mitigations are required. The risk register is updated as necessary to include any additional key risks or controls which may have been identified during a review of the performance indicators. Incident reporting It is mandatory for all employees and contractors to report near-misses and incidents for investigation. The level of investigation required is dependent on the potential severity as determined through the Evolution risk assessment matrix (RAM). Any event rated moderate on the RAM is investigated and remedial actions identified, with any High or Material events investigated using a root cause analysis methodology. All investigations are recorded within the incident management system along with all corrective and preventative actions which are tracked and reported through to completion. Hazard reporting All workers are trained in hazard recognition, avoidance and reporting. All hazards, regardless of the potential severity, are entered into a hazard reporting system including the corrective and preventative actions. No hazard identified may be left uncontrolled and the hazard reporting system is monitored on a daily basis to track the close out of the corrective and preventative actions. Any action overdue its target date triggers a reporting and escalation process to the relevant level of authority. Take 5 Prior to the commencement of tasks, workers are required to stop and assess the job at hand to identify and control any potential hazards that may have not already been addressed. The assessment is guided by a ‘Take 5’ type checklist that assists in ensuring that all possible controls are in place. Controls may include additional hazard identification and/or controls through a job safety analysis ‘JSA/JHA’, additional PPE, additional training, or supervisor intervention. Training One of the important ways we embed safety culture is through training which is integral to managing health and safety. We continued to hold regular health and safety meetings to review key hazards, risks and required safeguards such as new-worker inductions, emergency response and evacuation drills, crisis management training, and basic hazard awareness and task familiarisation. We also increased awareness, communications campaigns, and training for employees and contractors to support COVID-19 education and prevention awareness, both on site and in the local communities. Site-specific performance improvement, capability programs and cultural initiatives are implemented as required. The approach to training includes building the value of the importance of the topic – “the why”. It includes an awareness and education component to help workers understand the importance of staying safe on site, the objectives of our policies and procedures along with communication of procedures and standards and the dissemination of technical knowledge. Site-specific induction packages are completed prior to arriving on site. These training packages allow operational teams to receive site-specific information and transition to site in a more streamlined manner. A robust health and safety induction program is provided for employees, contractors, sub-contractors and visitors. This provides an overview of the business, vision and values; key policies and procedures; and critical health, safety and environmental information. It is compulsory for all employees, contractors, sub-contractors and visitors at Evolution’s sites to complete the safety induction, which is deemed valid for two years post completion. It is mandatory for all employees and contractors to attend health and safety training relevant to their position and the area in which they operate. Training packages highlight the hazards associated with their position or work area and the relevant controls that are in place to mitigate these risks. The training material includes a strong practical component to increase comprehension of the training. It is reviewed regularly to ensure that the material remains relevant, and employees and contractors are refreshed periodically. On average, each employee received 47 hours of health and safety related training in FY22, largely associated with annual refresher training. We continue to streamline the training processes, conducting analysis of training systems and onboarding process for all personnel joining the business. Communication Regular health and safety bulletins and notices are displayed on noticeboards, circulated amongst the mail groups and discussed in the pre-shift meetings. The content of these notices includes topics such as updates or amendments to any policies or procedures, serious injuries or incidents and the controls implemented to prevent a recurrence, and a monthly update on safety performance against performance indicators. 82 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 83 Health, Safety & Wellbeing Health, Safety & Wellbeing A company-wide communication called the “Daily Flash Report” is also sent out which includes an update on incidents for the last 24 hours and a summary of the month’s performance. The “Daily Flash Report” is also used to share investigation findings once released as well as other important health and safety information such as industry alerts, monthly performance reports, general communications, and shared learnings. These reports are retained and stored on the intranet to ensure all workers have full access to this information both current and historical. Performance In FY22 we focused on building a learning and proactive culture so that people fully understand the controls in place relating to material and critical risks that keep them healthy and safe in the workplace. Each operation implemented initiatives to help reduce the risk of incidents and to minimise the risk of injuries and illnesses. Performance was variable across the sites ranging from “excellent” to “requiring improvement” (at one operation where the majority of injuries occurred). Tailored programs and plans were designed to address the specific needs of each site and were measured and tracked which focus on leadership, in field interactions, behaviours and “seeing” hazards. There has been ongoing commitment to the review of material actions to ensure these are addressed and 100% closed out. This is reviewed on a weekly basis, reported on monthly and independently verified. There were 7024 recordable injuries during FY22, with 1825 being lost-time injuries, resulting in a TRIF of 10.3726. Whilst the TRIF met the 10.75 target, the performance is never at a place where we are satisfied, and we continue to strive for improvement. The types of recordable injuries experienced shifted to injuries of a lower order, demonstrating a reduction in higher order or those where a more severe injury could have occurred. This was further supported with improvement in leading indicators such as reporting and communication of serious incidents and their casual factors, proactive significant incident reporting, field interactions and closure of investigations and actions on time. This trend supports an improved culture of reporting and is evidence that controls are operating to prevent the most serious consequence. The focus on risk management was also supported by the inclusion of a new material risk review process as part of the FY22 assurance program. A deep dive into the critical controls of six material risks across all sites was conducted. This provided detailed analysis into the current performance across the business and identified areas of improvement and shared learnings. This new process and findings were assessed and verified through an external review and audit. We are continually learning, improving, and sharing how we create safe and healthy workplace with an emphasis on preventing serious outcomes. There will be an increase in use of technology and data driven insights to reduce risk in the future. Safety performance comparison1 FY22 Number of safety interactions 45,096 Number of hazards reported 24,607 Significant incidents reviewed with senior management (%) 100 Proactive significant incidents 27 TRIF2 TRIF target LTIF3 Fatalities 10.664 10.75 2.81 0 FY21 49,107 13,337 100 38 9.62 5.25 2.49 0 FY20 54,287 13,415 100 34 6.76 5.50 2.07 0 FY19 32,588 13,040 100 n/a 8.31 4.95 1.75 0 Total hours worked 7,128,241 5,612,323 5,323,912 4,570,433 1 Safety performance includes both employees and contractors and all assets, including Ernest Henry 2 Total Recordable Injury Frequency (TRIF) is calculated as (total number of recordable injuries [including fatalities, lost time injuries, restricted work and medical treatment injuries] x 1,000,000) / total hours worked 3 Lost Time Injury Frequency (LTIF) is calculated as (total lost time injuries x 1,000,000) / total hours worked 4 10.37 excluding Ernest Henry 24 80 recordable injuries including Ernest Henry 25 20 lost-time injuries including Ernest Henry 26 Excluding Ernest Henry Contractor health and safety We communicate minimum expectations regarding contractor health and safety requirements as a component of the procurement process for all sites and projects. These expectations form an integral part of the signed agreements and subsequent contract reviews with each contractor or business partner. Communication is critical and includes the provision of information on site specific risks and we collaboratively review the way tasks are designed and undertaken. We are clear in communicating the requirements and accountability for supervision to ensure work is being carried out safely and in line with Evolution’s Performance Standards. We operate a ‘one team’ approach and report and review all incidents including near misses from all workers, including contractors. Like all employees, contractors are required to follow safe work practices, report all incidents and to stop work if they are unable to control the hazards of the task or implement robust controls to safely perform the task. Where a contractor does not follow safe practices, work must cease until remedial actions have been taken. This may include implementing written procedures for high-risk tasks within the contractor’s scope; documenting training for all personnel; conducting fit-for-purpose audits of machinery, materials, PPE and emergency equipment used by the contractor; and re- inducting their employees to Evolution’s site-safety requirements. Emergency preparedness Emergency response programs are in place at all operations and are rigorously reviewed and assessed to enable the business to be prepared to respond to an incident and/or an emergency. The emergency response teams comprise of workers with additional training in emergency protocols, procedures and equipment. The emergency response programs include extensive emergency drills and training, such as mine rescue scenarios / training, fire drills, CPR first-aid training, and training in the use of hazardous materials suits and other safety equipment. Emergency response and crisis management Emergency response action: to commence immediately to prevent loss of life, damage to the environment or property and to minimise harm Level 1 response: Operations Emergency Response Team (ERT) action at a site level Level 2 response: Incident Management Team (IMT) action from site and local external involvement Level 2.5 response: Customised grouping of Leadership Team (CMT sub-team), if required in support of a site, operations or exploration IMT level 2 activation Level 3 response: Crisis Management Team (CMT) leadership support and management The framework above outlines how we respond to an emergency or crisis. This framework is supported by the Crisis Management plan that outlines the roles, responsibilities and processes to be followed by the Group Crisis Management Team (CMT) in the event of a crisis, and/or the site Incident Management Team (IMT), both at a site and at a Group level. FY22 has been a year where there has been an ongoing and active CMT and IMTs application with responses to floods, fires and ongoing management of COVID-19 across all locations. Specific examples where IMTs have been established with support from a CMT include COVID-19 at all locations, cyclones at Mt Carlton, flood and rain events at Cowal, Red Lake and Mt Rawdon and forest fires at Red Lake. The capability of 234 members in the Emergency Response Team (ERT) continued to be built to support operations and to assist the communities through significant incidents or threatening situations. Emergency response teams maintain close working relationships with community-based emergency responders and provide additional support and resources to local responders in the event of a serious off-site incident. In cases of disaster and irregular weather events such as floods and forest fires, our emergency responders are ready and prepared to assist community-based response teams to protect workers, assets and neighbours. Wellbeing We pursue a preventative approach in promoting a healthy lifestyle and this is done by raising the employees’ awareness of their own physical and mental health status with the expectation that this will inspire employees to make key positive lifestyle changes. A healthy workforce results in reduced absenteeism (which can be costly in both business and personal terms) and fosters an engaged and motivated workforce functioning as part of a complete team. Health-related campaigns are regularly communicated and discussed through pre-shift meetings to promote awareness, management, and preventative measures. The range of topics covered are identified based on prevalent medical conditions, and include common noncommunicable diseases, communicable diseases, mental wellbeing, personal hygiene, fatigue management and the effect that seasonal environmental changes may have on the body. Mental health There is an increased focus on the mental health of the workforce. A mentally healthy workplace is a shared responsibility between Evolution and its employees. During the year, the following mental health initiatives were undertaken: ■ Community events including R U OK? Day, Mental Health Month, Movember, and the Blue Tree Project ■ Engaged psychologists and specialists to run information sessions on mental health awareness and provide COVID-19 specific health information ■ Supported training specific to psychological safety All employees and their families continue to have access to the Employee Assistance Program (EAP), which provides confidential professional counselling and support to employees with personal or work-related difficulties. During FY22, 50 staff accessed 172 EAP sessions. Benefits of both consultation types are leveraged to support the workforce. Capitalising on the benefits of an integrated care model requires strong leadership, professional commitment, quality and governance, and good management structures. A proposed integrated health and wellness 84 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 85 Health, Safety & Wellbeing Health, Safety & Wellbeing people are briefed prior to departing on any medium to high-risk travel locations and support is also provided in ensuring the safety of our people during the COVID-19 global pandemic. Given that geopolitical locations of the operations, travel is also generally restricted from geopolitical sensitive locations. Strict governance and sig off protocols remain in place for all overseas travel with oversight and approval required from the respective Leadership Team member. Vehicle safety Our road safety approach focuses on vehicle design and condition, road design and maintenance, traffic management rules as well as driver skills and behaviour. An Evolution Community of Practice (CoP) has been formed to champion a program of activities aimed at reducing vehicle incident and near misses across the business. This is focused on reducing risk through both driver behaviour and targeting technological solutions to improve the safety outcomes of vehicle operations. Performance 100% of charter airlines in use through FY22 have undergone the required third-party audit, confirming compliance to regulatory and Evolution minimum standards. There were no aviation related events in FY22. Vehicle safety was an element of the FY22 assurance audits with a Material Risk Review completed of the Critical Controls identified at each site in relation to Vehicle Interactions risks. Whilst improvement opportunities were identified across all sites, there were no risks requiring immediate action to be taken. Action plans have been developed to address critical control improvements from all audits which are tracked and reported on through site risk review meetings and findings will also be linked for learning to the CoP for vehicle safety. service at Evolution will continue to support an integrated approach to care, where mental, physical and psychosocial health care with wellbeing initiatives so assessment, treatment and management of mental health issues are focused on the needs of the individual. Ways of working Significant changes to the way we work have been made in response to the COVID-19 pandemic. Employees have been supported to find new ways to connect virtually, develop and implement innovative solutions, and perform their roles with increased agility. The most recent employee engagement survey highlighted the value our employees place on flexible working and the manner in which it has been delivered. Evolution’s flexible work environment has been a core strength in supporting the employees during this time, aided by employee-defined ways of working charters and our Pandemic Leave Policy. Fatigue management We recognise the risks associated with employee fatigue and the responsibility in providing the necessary resources through policies, awareness, empowerment and tools to mitigate the risks and maintain productivity. As part of the employees’ duty of care requirements, all individuals have an obligation that they arrive to work in a satisfactory physical, mental and emotional state. It is regularly communicated that every employee is empowered to stop a work activity that they consider hazardous and to report without prejudice, any issues of fatigue to their supervisor. Accommodation areas are structured to ensure that employees’ welfare needs are addressed and that there is suitable rest between shifts by implementing noise and time curfews in these areas so that they are conducive to an uninterrupted sleep. To ensure that the controls in place are effective, a fatigue investigation checklist is completed for all incidents potentially related to fatigue to identify any possible areas for improving fatigue management. This is supported by mandatory fatigue training to be undertaken as part of induction at operations. CASE STUDY: Little Wings Sponsorship We operate in regional communities and acknowledge like many rural and regional areas, there can be obstacles in gaining specialist medical care. A donation from Evolution allowed one-year-old Heath Barber to board his last charity flight home from Westmead Children’s hospital, following his final appointment in Sydney. Little Wings applied for a grant from the 2021 Cowal Partnering Program to support the non-profit. The successful grant application means the non-profit can stay in the air providing free, professional, and safe transport services to sick children, like Heath, in rural and regional NSW. This sponsorship and donation supports the resilience of the community and the health and wellbeing of the people within it. Flight from Westmead Children’s Hospital Transport safety (material topic) Definition: Road and aviation incidents - includes transportation to/from and within the site. Approach The risk related to transport safety (road and aviation) varies based on the activities of the operations, the location of assets and the local environments in which we operate. These activities include the movement of people, delivery of products or transporting goods and equipment. Minimum standards have been developed to define key requirements related to transport safety and are outlined within the Aviation and Travel, and Fixed and Mobile Equipment Standards held under the Sustainability Standards. Vehicle Interaction and Aviation have been identified as Material risks at a Group level which require bowtie risk assessments and critical control plans to be in place. Verification activities are undertaken to verify critical controls are effective and functioning as designed. The Sustainability assurance program incorporates verification against the two Standards and the material risk program across all operations and the wider business. If any deviation is identified, an action plan is developed and the nonconformance is escalated to the Leadership Team. Aviation safety The Evolution Group Sustainability team takes a lead role in managing the risks and ensuring effective control of risks associated with the Aviation and Travel Standard providing travel related security, emergency recovery and management across the business. Aviation services are reviewed and approved by Group in consultation with key industry and regulatory bodies, with external specialist support engaged to assess specific aviation technical matters and obligations. International SOS have been engaged to support the health, safety and security of our people as they travel internationally and domestically. Travel is registered, 86 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 87 People and Culture People and Culture People and Culture “Evolution has always focused on creating a positive and agile culture where our values underpin everything we do. We are equally committed to creating a fair, inclusive and diverse workplace that supports us in attracting and retaining talent” Paul Eagle, VP People and Culture People and Culture FY22 highlights Introduction of leader-led Inclusion and Diversity initiatives 100% of employees had meaningful values and culture conversations with a senior people leader 30% of the Graduate Development program hires in FY22 were females Continued to engage our employees, seek feedback and actively work on making Evolution the highlight of our people’s careers, maintaining strong engagement results despite the impact of COVID-19 Built cultural awareness through training and collaboration with local Indigenous communities 82% of employees choosing to stay in a competitive market 20% females in management positions (increase from 17% in FY21) Analysis and alignment of gender pay parity as a key component of the FY22 Remuneration review 72% local employment across our operations (compared to 67% in FY21) Updated Evolution Leave Procedure to provide employees with benefits that address key social issues such as closing the superannuation gap for primary care givers on parental leave and supporting victims of domestic violence 88 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 89 People and Culture People and Culture Approach Our people underpin our success, supported by our values. We work hard to strengthen our culture of respect and transparency, and we actively listen to our people and address concerns. We are focused on attracting and retaining the best talent and providing a dynamic workplace that offers a range of experiences, career development opportunities, and an inclusive environment where all employees are treated with dignity and respect. We are an equal opportunity employer who does not discriminate on the grounds of gender, race, age, ethnicity, nationality, disability, sexual orientation, relationship status, religion or other attributes. We are committed to respecting differences and enabling a diverse mix of people to work effectively together, by creating an environment where all people feel respected, connected, and can do their best work. We have a range of policies in place that outline the expected standards of behaviour and create the basis for an inclusive and diverse workforce, including our code of conduct, Inclusion & Diversity Policy, and Whistleblower Policy. Performance As of 30 June 2022, Evolution employed 2,689 permanent, fixed term and casual employees, compared to 1,977 in FY21. The acquisitions during the financial year expanded the workforce with the addition of 588 employees at Ernest Henry, 186 employees at East Kundana and 125 at Kundana. During FY22 we also divested our Mt Carlton operation which reduced our workforce by 149. 82% of our employees chose to stay with Evolution which is a strong result given a competitive market. Gender Mix Participation Female representation in the workforce decreased from 20% in FY21 to 19% in FY22 due to acquisitions and divestments with female representation at Ernest Henry lower than that at Mt Carlton. Whilst the overall representation of female representation decreased, the number of females in management positions increased to 20.1% in FY22 from 17% in FY21. Approximately 30% of the Graduate Development Program hires were females. Indigenous Participation The focus remains on growing a pipeline of Indigenous candidates, and proactively identifying experienced external talent with the skillsets needed by the organisation. Indigenous makes up 6% of the Evolution workforce. Inclusion and Diversity (material topic) Approach We recognise the benefits of having an inclusive and diverse workforce, where people’s diverse experiences, perspectives and backgrounds are valued and utilised. We aim to have everyone at Evolution feel respected, comfortable and confident to bring their best work-self to work every day and to grow both professionally and personally. Our people are the most significant enabler as they drive business performance and success. It is our role to ensure that the workforce feels equipped, engaged and motivated to succeed. We do this by providing a safe workplace (physically and psychologically), a supportive team, strong leadership, meaningful work and career and development pathways for those who have the appetite and ambition. Our refreshed Inclusion and Diversity Policy outlines our commitments and applies to all aspects of employment, including recruitment, training and development, remuneration and performance management. We believe in equal pay for work of equal value and continue to identify and address any gender pay gap issues. In the FY22 Remuneration review we analysed the remuneration of employees specifically addressing gender-based pay parity and alignment with market conditions. We report annually to Workplace Gender Equality Agency (WGEA) and use the report and industry comparisons to look for improvements in policies and practices to address any gender pay disparities within Australia. In FY22, our leave procedure was updated to close the superannuation gap for people on parental leave. This will see primary carers superannuation topped up on their return to Evolution following their primary parental leave for the period of up to 12 months. In addition, to support the important issue of domestic violence, employees are able to access an additional 5 days of paid domestic violence leave in addition to those entitlements already provided for under the Fair Work Act. Inclusion awareness/Inclusion and Diversity project We launched the Inclusion awareness project in FY22 to support our values driven culture, the communities where we operate and our people to feel like they are included and belong at Evolution. Inclusion drives more positive diversity, and diverse backgrounds and thinking, respectful teamwork, innovative outcomes and stronger business results. We: ■ Established a group of Inclusion Awareness (IA) project champions representing all sites and their interests to provide input and two-way feedback into Evolution’s Inclusion and Diversity efforts ■ Adopted a leader led approach to educating our leaders and employees around Inclusion and Diversity and establishing a baseline of what good looks like in this space ■ Developed fit for purpose learning modules for our people, offering face to face and online content ■ Managers once removed held “Living our Values” conversations to check in on culture, values and inclusion at Evolution ■ Conducted site audits of their inclusive practices, facilities and symbols ■ Launched an Inclusion and Diversity intranet portal page & Podcast – a Yarn or Two, and developed Inclusion and Diversity story videos, featuring Evolution people ■ Surveyed our people to see what they thought about being their best selves at work and the supportive culture. We remain dedicated to achieving a high performing culture with values and reputation as non-negotiables as outlined in our strategy. With strong support from the Board and Leadership Team, the Inclusion and Awareness project will continue in FY23 (renamed as the I&D Project), as we recognise it is critical that we further increase momentum in this area and building on an inclusive and diverse culture is something that takes time and continual focus ■ Actively communicated and discussed topical reports such as the Rio report to support open dialogue on expectations and planning for our Inclusion & Diversity activities Performance During FY22, our workforce achieved 19 per cent female representation, and employees identifying as Indigenous accounted for 6 percent of our workforce. Refer to the FY22 ESG Performance Data document for more information about Evolution’s inclusion and diversity performance based on age, gender and Indigenous representation. As at 30 June 2022 As at 30 June 2021 Australian industry average at April 2022 Overall female representation 19% Management female representation 20% Non-management female representation 18.9% Overall Indigenous representation 6% 20% 17% 20.2% 7% 19% N/A N/A N/A We undertook a range of inclusion and diversity related initiatives during the reporting period which included: ■ Education of leaders on inclusive practices, behaviours and processes including hiring practices ■ Continued to develop awareness and capability, through the onboarding and refresher onboarding programs, whereby we do not tolerate any form of unlawful discrimination, harassment or bullying or any other type of unethical behaviours that are not in keeping with Evolution’s values ■ Reviewed and modified the Induction program to highlight our commitment to inclusion and diversity ■ Reviewed the Leave Policy and Procedure that delivers more favourable entitlements and benefits for Parental Leave, Community Leave and Domestic Violence Leave and Review of the Inclusion and Diversity Policy In FY21, we launched the Cultural Recognition Position Statement which reaffirmed our commitment to the reconciliation process. Promoting Indigenous culture and building the cultural awareness of our workforce is critical to building relationships based on trust and respect. In FY22, to further embed the commitment we developed an Indigenous Relations approach which outlines how we work in partnership to build cultural awareness, knowledge and competency into our business practice, empowering our people to be informed and considered in our approach to partnerships, inclusion and diversity and advancing outcomes for First Nation Partners and Indigenous Peoples. In FY23, we will launch an Australian focused cultural competency program which outlines learning options to build awareness of Aboriginal and Torres Strait Islander cultures, histories and achievements. Cultural competency is about personal, ongoing development and education and this training will support the development of Evolution leaders and First Nation relationship managers. Cultural recognition Other activities include: Our vision for cultural recognition is one where all First Nation Partners and Indigenous Peoples have equal access to opportunities and resources, are treated equally in all relationships and their cultures and histories are celebrated and respected. Through cultural recognition, our capacity to engage and collaborate effectively and authentically will be enhanced and improve the outcome for all parties. Engagement occurs via our Sustainability teams, which informs and supports the functions and sites to help them understand Indigenous cultural protocols. These teams also work with community leaders and recognised Indigenous businesses to develop plans that effectively deliver work across homelands which respect their ongoing traditional custodianship and provide lasting employment and subcontractor scope of work opportunities. ■ Participating in National Reconciliation week and NAIDOC week celebrations ■ Holding smoking ceremonies conducted by local Traditional Owners at the commencement of projects ■ Providing support systems to the business to increase procurement with Aboriginal and Torres Strait Islander businesses ■ Including a supported prequalification process for inclusion of Indigenous businesses into our supply chains ■ Working with several Indigenous joint venture partners to enable growth and expanded employment opportunities for their people 90 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 91 People and Culture People and Culture ■ Embedding best practice cultural heritage monitoring within large-scale on-country project deliveries ■ Nomination of traditional custodian business, Gidarjil Development Corporation, for an industry award celebrating Indigenous excellence ■ Development and distribution of Acknowledgement of Country and land acknowledgement resources and protocols ■ In FY23, implementation of Indigenous trainee and apprenticeship programs at Mt Rawdon and Mungari, and an Indigenous employment program at Ernest Henry We are committed to increasing our cultural competency and capability, and to being an organisation that demonstrates leadership and respects Indigenous communities right across Australia and Canada. CASE STUDY: NDRL Indigenous All Stars game Mt Rawdon and the Gidarjil Development Corporation proudly came together to host the inaugural Northern Districts Rugby League All Stars game in Gin Gin on 4 September 2021. The Mt Rawdon team was integral in organising and hosting the event and were also major sponsors of the game. The Mt Rawdon team had been eager to support the significant inaugural event within the local area that could hopefully become an annual showcase event for the region. Highlights of the day included a men’s and women’s All Stars game, a smoking ceremony, cultural dancing, and family entertainment. The jerseys utilised by the teams were also created by a local Indigenous artist, Chern’ee Sutton, who noted “It’s one thing to see a jersey worn in one of the big stadiums, but it’s another to see my design used in my local community” [Source: BundabergNow]. The day was met with overwhelmingly positive feedback with media attention across the region and from the QRL and NRL. In the BundabergNow news platform, Mt Rawdon’s Sustainability Manager Paul Wright was proud in saying “We believe this sporting event is a great opportunity to build on the positive relationships within (the) community and demonstrate true reconciliation across the region and showcase some of the local sporting talent.” Employee engagement (material topic) We understand that an engaged and high performing workforce is essential for the success and growth of the business. Bi-monthly voluntary employee engagement (via the Teamgage platform) surveys are conducted, providing people with an opportunity to let their leaders and team members know what is important to them. The survey is an important opportunity for people at all levels of the workforce to provide honest feedback on how Evolution performs across a range of key areas including excellence, accountability, honest conversations, safety, collaboration, respect, wellbeing, culture and belonging. The results of the survey demonstrate that we successfully sustained or improved over the period against key culture measures, which are aligned to our values. Our overall combined engagement score was 79, which is a strong result, representing a slight uplift from FY21. In FY22, in line with our Inclusion and Diversity focus, questions were added in addressing how comfortable our people felt in bringing their best self to work, and how supportive their site/team culture was in enabling this. These questions received scores of between 71 – 91, representing an encouraging result. To address the valuable feedback from this survey, people leaders consult with their teams to create and implement action plans designed to improve the team effectiveness and the environment within which they go about their daily work. Talent attraction and retention (material topic) Talented people are very important to the business, and we are always keen to identify, attract and retain team members who are highly skilled, and strongly aligned with our values. We develop employees by engaging and investing in their futures through a variety of internal and external development offerings. We encourage people to take up opportunities for development that complement their individual needs, short and long-term career goals and are aligned to business requirements. We focus on developing people both personally and professionally, which enables us to build organisational capability and capacity. Training and education Extensive training is provided to increase or improve skills and knowledge that mitigate the risk of health and safety incidents, meet compliance requirements, and increase employees’ understanding of their responsibilities towards the environment. All staff participate in annual performance and career development reviews covering their on-the-job performance, Company values and training and development needs and goals. In FY22 the continued focus on development, leadership and retention was measured through: ■ 81.5% of people fulfilling their stated development goals ■ Improved continuity in our leadership pipeline effectively retaining and attracting top talent in the management group ■ 30% of our leaders participating in dedicated leadership development training, including three cohorts in the senior leader coaching program and GOLD mid-senior leadership program ■ All leaders at the superintendent level and above participated in a multi-year leading inclusion program aimed at leading with an inclusive mindset and behaviours ■ 41% of vacant roles appointed through succession and internal candidates, against a target of 35% ■ Delivery of a total of 128,306 training hours in FY22: an average of 47 hours per employee (compared to 59 in FY21) The rollout of our refreshed Leadership Development suite of programs continued, underpinned by the leadership behaviours. The leadership suite includes leadership essentials; practical bite-sized learning for all leaders, delivered on site; and leader induction, which is aimed at supporting new and emerging leaders around the fundamentals of being an effective leader. The upgraded GOLD mid-senior development program was delivered, focused on building leaders who are values driven, resilient, agile, commercially minded, inclusive and delivery focused. The Leader as Coach program was also introduced in FY22 to support coaching capability with senior leaders. Graduate program Our Graduate program has been delivering diversity and equality in the graduate talent pipeline underpinned by a robust and engaging recruitment and selection process since 2013. A seventh cohort of new graduates were welcomed to the business in January 2022. Across their two-year journey, the graduates are supported and encouraged to flourish in both their personal and professional development through formal workshops and webinars, customised development assessments and learning, mentoring, exposure to the senior Leadership Team and a dedicated development plan. In FY22, we undertook several initiatives to enhance employee attraction and recruitment and better position Evolution to achieve its ambitious growth plans over the next two to three years. Initiatives included: ■ Launching an Employee Value Proposition project to uncover why people join and stay, the main drivers around their employee experience and the key channels and approaches we can leverage to source great talent ■ Learning from the “Living our Values” conversations with our people, stay interviews, data from exit interviews, and employee surveys, to help inform employee retention initiatives ■ Formalising flexible work arrangements, allowing employees to work in ways that better suit their lifestyle while maintaining access to development and career progression opportunities ■ Enhancing the Employee Referral program to supplement existing recruitment strategies. This program incentivises current employees to refer suitably qualified and skilled candidates to Evolution. Between November 2021 and May 2022, 11% of new starters were a result of referrals from Evolution employees ■ Continuing to review job advertisement templates to ensure employment messaging attracts a diverse workforce ■ Consolidated the reporting of recruitment statistics through enhanced recruitment dashboards We reviewed feedback from the candidate, hiring manager and onboarding surveys to enhance our hiring and onboarding practices and experience. Social media channels, e.g., LinkedIn and Facebook, are used to showcase diversity through sharing employee stories, community initiatives and local activities. Partnerships with Work180, JT Academy, Gold Industry Group and other local and community associations helped to deliver targeted talent attraction messaging to the candidate market. Retention rate Strong levels of retention have been maintained across the workforce in a highly contested and competitive market. This reflects the targeted work undertaken to attract and retain quality people to and within the business. We continue to provide an environment where employees want to do their best work, learn and develop and experience the highlight of their career. Recognising and rewarding our people We have built a culture where our people ‘Act Like an Owner’ (ALO) by treating Evolution as if it is their own business. In FY22, 97 Group ALO initiatives were generated that delivered significant value for the business through change, improved safety, innovation, cost reductions and efficiency gains. We are in our eighth year of offering all eligible Australian based employees $1,000 worth of Evolution shares, through the employee share offering program, enabling our employees to be owners of the business. We undertake an annual pay and bonus review, aimed at recognising and rewarding employee outcomes aligned to organisational goals as well as the efforts of our people throughout the year. 92 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 93 People and Culture Community Employee relations Our approach to employee relations focuses on direct engagement with employees, establishing and maintaining strong working relationship with employees and unions, being proactive in consulting on any change, and providing open forums for employees to raise concerns. We ensure compliance with employment law obligations and pay in accordance with enterprise agreements, minimum wages and other employment terms. We ensure competitive remuneration by comparing within the industry and AON remuneration surveys. We actively manage recruitment and seek redeployment or retraining for employees affected by workplace changes. Where we are unable to redeploy employees, our redundancy and outplacement programs support employees with the transition. We have a range of communication channels available to our workers, including the employees direct supervisor or manager, the people and culture representative, regular team meetings at each sites and functions, the intranet, incident reporting, informal channels through management, and grievance mechanisms, which also includes an independent 24/7 whistleblowing hotline. Performance All our employees have the right to freedom of association. In FY22, 29% of our employees were covered by collective bargaining agreements. There were no strikes, lockouts or work stoppages of significance at our sites in FY22. No operations have been identified as being at risk for incidents of child labour or having young workers exposed to hazardous work. We have a strict proof of age requirements for its workforce upon hiring that prevent anyone under the legal industrial working age from obtaining employment at any of our operation or exploration sites. Similarly, operations are not considered to be at risk for incidents of forced or compulsory labour and this is also referenced in our Modern Slavery Statement published annually27. Non-discrimination Through the Code of Conduct and Inclusion & Diversity Policy, we are committed to creating an environment where differences are respected, and the working environment is diverse and inclusive. We do not permit discrimination, bullying or harassment at any level of Evolution or in any part of the employment relationship. In the event that there is a suspected breach of our Code of Conduct, or if concerns are raised, particularly in relation to bullying or harassment, the People and Culture team determine the appropriate course of action to ensure we deliver on our policies, relevant legislative requirements and also our values. Case Study: Meet Beau Garland, one of our graduates Beau began his journey with Evolution in November 2020 as graduate geophysicist in the Discovery function. With multiple opportunities available to him at the time, Evolution stood out as the ‘right fit’ for Beau due to such an accommodating and friendly interview process, a warm and welcoming work environment, and a culture that encouraged social and professional connections. In his first year of the graduate program, Beau worked on several projects to support his ongoing learning and development. He was appreciative of the opportunity to work extensively on the QGIS project, which will be rolled out to all of Evolution’s exploration sites to improve access to data in the geophysics space from FY23. Geophysicist graduate, Beau Garland, using an ASD TerraSpec Halo Mineral Identifier 27 2021 Modern Slavery Statement Community “We aim to contribute to the prosperity of our local communities and countries across all stages of the life cycle of the assets by creating direct employment opportunities, as well as supporting local businesses through procurement of goods and services, community investments and payments to governments, whilst minimising our negative impacts” Glen Masterman, VP Discovery 94 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 95 Community Community Community FY22 highlights Active engagement with Local Communities, First Nation Partners and Indigenous Peoples 0 zero material community impact Incidents 100% of actions in Community Relations plans and First Nation Engagement plans completed $3.5M in direct community investment in FY22 0 zero material Cultural Heritage incidents $133M in local spend (32% increase compared to FY21) 123 456 new Shared Value Projects in FY22 Approach Our success depends on our ability to maintain a strong social licence to operate. We work as a trusted partner with the local communities, respecting local culture, and manage risks and opportunities associated with our activities. Our approach is to: ■ Build engaged and lasting relationships with the communities in which we operate ■ Uphold fundamental human rights ■ Protect cultural heritage and First Nation partnerships ■ Invest in meaningful community projects and sustainable development ■ Respect cultures, customs and values while engaging in open and inclusive dialogue We aim to deliver enduring prosperity and lasting benefits to the communities in which we operate through investment, community development, capacity building and social infrastructure improvement. The communities near the sites experience the most direct social, environmental and economic impacts of the business. By providing competitive wages and benefits, prioritising local procurement, contributing our fair share of taxes and royalties, and investing in community programs and infrastructure, we work hard to support the development goals of the local communities and governments. Understanding and proactively managing these benefits and impacts is integral to the success of the operations. We recognise genuine and effective stakeholder engagement involves building relationships based on mutual trust, respect and understanding. The importance of consulting with people in making decisions that affect their lives is expressed in the principle of free, prior and informed consent (FPIC), which is applicable to the rights of Indigenous Peoples in international law. FPIC is also applicable to other ‘land-connected peoples’, such as traditional and local communities living in rural areas near mining sites. Our community stakeholder engagement efforts are aimed at a continuous, iterative process of communication and negotiation spanning the entire planning and project cycles. Each operation is responsible for developing and implementing a Community Relations plan and First Nation Engagement plan, which is approved annually and for which the Executive Chair is ultimately accountable. Operations provide updates on their plans on a monthly basis to Group office. We have dedicated Community Relations teams that manages engagement with local communities, pastoralists, private landowners, First Nation Partners and Indigenous Peoples and local government as part of tenement applications, regulatory approval processes and ongoing operations. The team also works closely with our First Nation Partners to ensure continued identification, recognition and protection of all Cultural Heritage. The team carries out heritage surveys across all operations in alignment with the individual heritage agreements with Traditional Owner groups and within the guidelines. These surveys inform the location and design of the operations to avoid areas of heritage significance. We have several agreements in place with Traditional Owners, which outline a range of obligations such as heritage protocols, employment and business opportunities, community engagement, cultural awareness training, health and education initiatives, and work ready programs. We continue to proactively work with Traditional Owners to identify further opportunities to collaborate. We have created a Lead, Indigenous Relations & Community Partnerships role to manage and support stakeholder, community and Indigenous engagement activities. This position is to ensure we have a consistent and accessible resource in the local communities that can support future Indigenous employees and businesses. This resource is supported by the broader Sustainability function at Group and site that supports the development of durable and genuine relationships with the local community and First Nation partnerships. During FY22, we strengthened community connections by: ■ Developing deeper relationships with members of the communities in which we operate, including non- government entities ■ Building awareness of projects to ensure they are known and understood prior to approval processes ■ Engaging with non-government conservation organisations and individuals ■ Conducting Evolution focused community forums ■ Participating in existing local community forums and local shire meetings ■ Establishing relationships with schools and developing work experience programs at mine sites for local high schools ■ Hosting business development and employment sessions ■ Further investing in community development partnerships at a local level ■ Supporting school NAIDOC events, Country Week events, regional fairs and community festivals CASE STUDY: Immunostorm Chip developed by University of Queensland and Evolution provides life-saving early warning diagnostics In 2019, Evolution invested $900,000 over three years into a partnership with the University of Queensland (UQ) to support research and development of early diagnosis technologies for cancer using gold nanoparticles. This partnership resulted in an Immunostorm Chip technology which positioned Evolution and UQ as innovators in the biotechnology industry and improved health and wellbeing globally. With the cancer test now progressing through commercialisation, and contextualised by a global pandemic, this partnership has turned its attention to early detection for COVID-19 patients at risk of long-term, damaging immune responses. Given the sudden emergence of COVID-19, it has been a challenge for medical experts to predict who will develop a cytokine storm, which refers to the uncontrolled release of cytokines resulting in hyperinflammation which damages tissue. We extended our partnership and increased the investment into the gold particle 96 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 97 Community Community Cultural Heritage (material topic) Approach The identification and preservation of Indigenous heritage is fundamental to Evolution’s approach to operating sustainably and commitment to preserving and promoting the First Nation Partners and Indigenous Peoples’ history and culture. The destruction of culturally sensitive land in Australia made many of us in the industry challenge and re- validate our own standards, protocols and processes. We reaffirmed the importance of the protection of Cultural Heritage at all levels of the business. As the short-term custodians of the land in which we operate, we respect the role of First Nation Partners and Indigenous Peoples and consider environmental and Cultural Heritage as both an honour and a responsibility. We value the partnerships we have built and are committed to working together to protect their Cultural Heritage and advance outcomes for First Nation Partners and Indigenous Peoples. Our nine Sustainability Principles are closely aligned with the UN Sustainable Development Goals with one principle focusing on ‘Advancing the outcomes for Indigenous Peoples and protect their Cultural Heritage’. We have developed a set of Social Responsibility Performance Standards that sit within the Sustainability Standards. Sections 5.1 and 5.2 of the Social Responsibility Performance Standards outline performance requirements related to planning, performance and review of Cultural Heritage management and Traditional Custodians and First Nation Peoples engagement. Protecting Indigenous and historical Cultural Heritage is a critical element of our management practices. Prior to any development, we conduct archaeological assessments to ensure cultural and heritage rights are protected. Where there is significant archaeological and Cultural Heritage present in or around the operations, we have Cultural Heritage management plans. These include avoidance of disturbing significant sites, or, if unavoidable, minimising impacts and appropriately relocate or excavate any sites. Artefacts uncovered during project activities are recorded, documented and submitted to the appropriate government department. We work closely with Indigenous Nations to identify and preserve Cultural Heritage sites and to incorporate traditional knowledge studies where appropriate. We also educate employees on respecting the customs and traditions of the local communities, and support activities to promote the culture of the host communities. In addition, we ensure that cultural sites are identified in the impact assessments and marked on maps so that they are not destroyed or damaged by our activities. Each of our projects and operations undergo regular Sustainability audit and assurance programs that assess performance against these standards and identify opportunities for improvement. Sustainability audits conducted in FY22 highlighted good alignment across all operations in understanding and implementation of the Social Responsibility Performance Standards. The results of the audits for all operations provide Evolution with greater assurance that current governance practices are adequate to ensure the protection of Cultural Heritage, relationships and values. Performance As outlined in the Social Responsibility Performance Standards, the site Community Relations teams liaise with the First Nation Partners and Indigenous Peoples and oversee the relationship agreements in place. The Australian and Canadian operations and exploration projects operate under Collaboration Agreements, Native Title Agreements, Cultural Heritage Agreements and/or Exploration Agreements with our First Nation Partners and Indigenous Peoples. These agreements are negotiated in good faith, fairly and equitably and ensure we work in partnership with First Nation Partners and Indigenous Peoples to support opportunities that promote and support self-determination including: ■ Enabling them to maintain, control, protect and develop their Cultural Heritage, traditional knowledge and cultural expressions. These can include Cultural Heritage management plans which prescribes steps to be taken when undertaking operational or exploration activity that has the potential to uncover or disturb Cultural Heritage. Heritage agreements may also have provisions to promote cultural awareness training across sites ■ Supporting the improvement and sustainability of their social and economic conditions including negotiated royalties or consideration to employment and training opportunities and awareness of business opportunities that may arise within the operational footprint ■ In Canada, agreements with First Nation Partners outline mutual commitments and responsibilities to engage and consult on cultural resource surveys, and identifications of culturally sensitive sites, among many other environmental provisions. The agreements provide substantive avenues for Indigenous Nations to discuss with Evolution regarding environmental matters, from the earliest stages of the projects to closure and reclamation Each operation and project is required to maintain documentary evidence of the status of actions, implementation and achievement against an agreed commitment. Any Cultural Heritage near misses or incidents must be immediately reported to enable a review of any incident or near miss to ensure we understand, learn and widely communicate findings from the frontline, with the stakeholders and to the Board. Cultural Heritage impact or material changes are included in the Risk and Sustainability Committee Report as a standing report item for discussion and review. During FY22, there were no new significant sites identified through work conducted by Evolution. Information regarding these sites is shared with the Traditional Owners, and where required in law, with the relevant government departments. Section 18 of the Aboriginal Heritage Act 9WA) enables land users to seek consent to disturb Aboriginal sites if it is deemed such impact is unavoidable. In FY22, Evolution sought no Section 18 clearances for Mungari, our Western Australia operation. CASE STUDY: National Aboriginal Day & the blanket exercise Following Canada’s National Aboriginal day in June, the Red Lake operation acknowledged the day on site through a blanket exercise that served as an interactive demonstration of the removal of First Nation Partners from the land. University of Queensland’s Dr Alain Wuethrich analysing the immunostorm chip nanotechnology device which has been leveraged to detect warning signals of this storm. Such a device illustrates the potential for gold-based products in medicine, provides critical medical information to guide clinical decisions in triage, ensures efficient allocation of resources, and saves lives. Indigenous stakeholder outcomes (material topic) Approach We are committed to respecting and enhancing the rights, interests, concerns, traditional land uses and cultural activities of the First Nation Partners and Indigenous Peoples within the communities in which we operate. For operations whose activities can directly or indirectly affect Indigenous Peoples, the Social Responsibility Performance Standards require the establishment of formal procedures and processes related to Indigenous Community engagement, economic inclusion and Cultural Heritage conservation, while meeting applicable legislative requirements. The Stakeholder Engagement Standard and Guidance provide direction on our relationships with Indigenous Communities by outlining specific requirements around engagement, communication, integration of community input, monitoring and review. We are taking action to make cultural recognition and reconciliation a part of the business and culture through the site First Nation engagement plans focused on fostering trusting relationships for cultural recognition, promoting the rights and outcomes of First Nation Partners and Indigenous Peoples and building capacity in cultural inclusion, skills and knowledge across sites and Group office. This has been enhanced by including guest speakers to share knowledge and experience in building effective and respectful relationships in planning sessions, National Reconciliation Week events and Leadership Team meetings. Indigenous Peoples, including First Nation Peoples in Canada, are often highly impacted by mining. In Canada, the mining industry is the single largest employer of First Nation Peoples and contributes to the sustainable development of Indigenous communities across the country. As identified by the Truth and Reconciliation Commission of Canada, Canada’s private sector has an important role to play in helping to reconcile historical injustices faced by Indigenous Peoples. As a mining company with a Canadian operation, Evolution has a responsibility to meaningfully consult First Nation communities and provide equitable access to employment, training and educational opportunities. We are also committed to increasing Indigenous participation year-on-year in the business through apprentice, trainee, graduate and employment programs, and through Indigenous business opportunities. This commitment will be underpinned by the Indigenous Procurement Approach, which is under development and will be finalised in FY23 and will provide a guide for all local procurement plans. The Community Relations teams at Group and sites work with the First Nation Partners and Indigenous Peoples, contractors and educational institutions to provide and support training and employment opportunities to Indigenous Peoples. The General Manager of the site is responsible for First Nation engagement at a local level. We aim to develop strong relationships that incorporate a comprehensive approach to supporting self- determination and with the aim of building appropriate skills, capabilities and resources that ensure long-term success and positive outcomes for their communities. Performance In FY22, there were no disputes relating to land use, customary rights of local communities and Indigenous Peoples, or incidents of violations involving rights of Indigenous Peoples. Refer to the FY22 ESG Performance Data document for activities that take place in or near areas where Indigenous Peoples are located. 98 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 99 Community Community The educational activity-built understanding among the team by prompting reflection on Canada’s history of Indigenous and non-Indigenous peoples. It simulated pre-contact, treaty-making, colonisation, and resistance. The activity forms one element of Evolution’s overall commitment to enhancing cultural awareness and competency across the whole organisation, and actions are underpinned by close engagement with the First Nation Partners and Indigenous Peoples. CASE STUDY: 1770 Cultural Connections Immersion Festival & Yarning tent The 1770 Cultural Connections Immersion Festival returned in 2021 to deliver cultural education, immersion, and engagement to support reconciliation in the Burnett region, and across the wider community and nation. 2021 marked the second year the 1770 Cultural Connections Immersion Festival was run and attracted 1,600 visitors across the two-day event. We committed to a three-year Shared Value Project as a major sponsor of the event and hosting local and visiting Elders in the yarning tent. The yarning tent provided a physical space where people could come together and speak with the Elders, as well as take a break and relax in the shade. Our sponsorship was highly praised by Dr Kerry Blackman – CEO, Gidarjil Development Corporation who, like us, was eager to hear that the mayor has agreed to support the festival into perpetuity. This reaffirmed our dedication to ensuring sustainable, positive legacies for the communities we operate in. We will continue to sponsor the event in 2022 and 2023 and remain an active member of the festival organising committee. Evolution yarning tent set up at 1770 Cultural Connections Immersion Festival CASE STUDY: Murals at Mungari Six Kalgoorlie-Boulder artists worked with the Mungari team to create a new backdrop for the administration buildings which will help ensure more links to the Indigenous culture remain a daily part of life and work at Mungari operations. Capturing the stories of local Indigenous families for generations to come a series of colourful Dreamtime murals are in line with our approach to integrating Sustainability into everything we do. A team of Indigenous local artists painted artistic impressions of wildlife, flora, and fauna which are now permanently displayed to not only aesthetically improve the surroundings but also help to pass down the stories of local Indigenous elders and keep their messages present, visible, and top of mind. Our Mungari Integration Lead Ann-Marie Schell led the team of artists which included Danielle Champion and Em Sanders. The murals are based on Dreamtime stories of Seven Sisters – a story that Danielle’s grandmother passed down throughout the generations of her own family. New totems, created from local land branches, are also displayed across the site adding to the new murals and acknowledgement of country signage. Schell reflected, “I am truly grateful to Danielle for sharing her stories and artwork, allowing us to experience the beauty of a Dreamtime story as we arrive at work.  The artwork has created many conversations, and many have commented that it brightens their day”. Murals based on Dreamtime stories of Seven Sisters at Mungari offices Community engagement (material topic) Approach We understand the responsibility of being a major community employer and partner. Across Australia and Canada, we employ local people, use a mix of national and local suppliers, and support economies more broadly through taxes and other government payments. We aim to create sustainable partnerships and opportunities for our people to be involved in their community. It is important that we are an integral part of the local communities and work to understand expectations, share information and resolve issues as they arise. We work to make a positive contribution to the communities, with management plans in place to ensure responsible operations, and we work collaboratively on issues and opportunities. Many of our sites have established community consultation committees, providing a regular forum for open discussion between Evolution, community representatives and other stakeholders about the environmental management and performance of the operations. We have established direct and regular two-way communication with communities using a variety of forums, which we tailor to their unique needs. We have worked with the communities to establish trusting relationships and obtain and maintain their support. We deliver critical infrastructure including health and education facilities and supplies, which will support their living standards for generations to come. Performance 2022 stakeholder perception survey In FY22, the fifth biennial stakeholder perception survey was conducted to gauge stakeholder sentiment within communities local to the operating sites, focusing on reputation, quality of relationship and communication. The stakeholder perception survey was undertaken by Deloitte acting as an independent external facilitator. Each site provided a list of identified stakeholders who were invited to participate in in-depth telephone interviews. A total of 96 in-depth surveys were undertaken with key stakeholders, supported by a public opinion poll involving 153 participants contacted and surveyed within the postcodes of operational communities. The stakeholder mix included local community and environment groups, education providers, employees, government bodies, local residents and businesses and Indigenous Groups. This make-up was distinct from the 2020 stakeholder perception survey participants, leading to a change in score. There was widespread acceptance of our activities and an overall Social Licence to Operate score of 4.00 out of 5, placed at the ‘high approval’ category. For comparison, Deloitte prescribes the mean score in over 2,000 cases of social licence studied globally as 3.39. Our ‘Reputation’ score was rated 4.04 out of 5. The direction of Evolution’s reputation in 2021 was largely positive, with 39% of stakeholders interviewed saying that our reputation was improving. The Social License to Operate score was strengthened through stakeholder relationship development and increased economic and other impacts. In FY23 and beyond, we will further leverage our social capital and collaborate on projects to help increase community resilience and broaden the economic foundations and opportunities within local communities. We will also build upon relationships with local councils and industry bodies to develop regional solutions for ongoing economic viability. Reputation score from 2022 stakeholder perception survey Range Category 5.00 4.30 3.93 3.56 3.08 2.40 1.00 Full trust High approval Low approval High acceptance Low acceptance Withdrawn Evolution score 4.00 CASE STUDY: Little Finds project The COVID-19 pandemic left a negative impact on creatives, the arts, retail, tourism, and small business sectors. To stimulate the local economy, business, and creatives, Evolution partnered with E13, Euphorium, the Department of Local Government and Lotterywest to fund the Little Finds project. The project activates often unseen areas of the city with creative urban interventions to instil a sense of wonder, surprise, and delight throughout the main precinct. The urban installation has been funded to install over 20 new unique and unexpected artworks in the CBD of Kalgoorlie from January 2022 to mid-2022. The project provides quality outdoor entertainment for locals, visitors, and tourists, contributing to the liveability of Kalgoorlie- Boulder, and also the community pride. In early June 2022, Little Finds was launched with a community event and a final map of all Little Finds around town being distributed. This event also marked the end of Stage 1 of Little Finds, and the beginning of Stage 2 of a new artistic venture ‘Junkadelic’ which is similarly produced by Euphorium and E13 and currently comprises four sculptures installed in the Community Gardens and Karkula Park. Evolution Mungari Team members proudly saw the #littlefinds project develop and grow into a sustainable and financially self-sufficient project supporting art and creativity. The Perch (2022) #littlefindsevolutionmining by Em Anders 100 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 101 Community Community Community investment Approach We have an established tradition of supporting local initiatives in the communities in which it operates and have expanded support to nationally and globally relevant programs. Maintaining existing partnerships, and actively engaging local stakeholders, enables us to understand local sentiments, needs, challenges, and aspirations for sustainable development which supports our ability to innovate and target the community investment programs, including Shared Value Projects and sponsorships and donations. Our approach to community investment remains contextual and targeted for each site, while upholding our values, Sustainability Principles, and the core guiding principles presented below. Each site has a Community Relations team that is equipped and responsible for identifying, assessing, and implementing its own community investment initiatives, including Shared Value Projects. Tools used for identifying and assessing initiatives are updated with changing local and operational conditions. The site General Managers are responsible for overseeing community investment projects and their contributions to sustainable development. We have a growing focus on storytelling and sharing community successes and lessons from these projects throughout the business and wider. CASE STUDY: Gratitude project Evolution and Bland Shire Council joined forces to help recognise the wonderful work being done in the community throughout the COVID-19 pandemic. The Gratitude project was launched in September 2021 with the aim of recognising essential workers or individuals who helped keep the community going throughout the toughest times of the pandemic. The project encouraged the community to nominate residents who went “above and beyond” and consistently turned up to work to serve the community during times of isolations and lockdowns. All nominations were entered into a weekly draw for a chance to win a $100 Why Leave Town card. More than 50 nominations were entered into the draw, casting a spotlight on the positive contributions of neighbours, colleagues, family, and friends. By October 2021, over $4,000 was directed back to the community in the form of gift cards from over 30 applications. Local MP Steph Cooke, who is Minister for Emergency Services and Resilience, submitted a community recognition statement in parliament about the project. She said “Congratulations and thank you to Bland Shire Council and Evolution for creating such an amazing project.” Later, at a gala awards ceremony in Sydney, the Bland Shire Council was announced as the winner of the Local Government Professionals New South Wales Community Partnerships award for the Gratitude project. Charmaine Saltner, Lead, Indigenous Relations & Community Partnerships commented “this is a great reflection of the success of the project and demonstrates that it doesn’t take a big financial investment to make a big impact”. The sentiment was supported by Renee Pettit, Community and External Relations Officer at Cowal who noted “the care factor has more of an impact”. Final winners of The Gratitude project drawn by Cowal Community & External Relations Officer Renee Pettit, Michael McCormack MP and Bland Shire Mayor Brian Monaghan Our community investment program is underpinned by four guiding principles: Community investment guiding principles Attraction and retention Build community advocacy Enhance outcomes for First Nation Groups and ATSI* people Innovation and industry relevance ß Raise awareness and strengthen reputation of Evolution / mining sector in broader community ß Attract younger generation to careers with Evolution / the mining sector ß Grow Evolution’s brand as employer of choice ß Demonstrate industry relevance (now and future) ß Foster trust in mining/ gold sector ß Touch the hearts of our local, regional and national communities ß Grow understanding of modern mining practices ß Demonstrate our respect and accountability for any disturbance ß Partnerships that build capacity for the future ß Develop/support actions to help close the gap: ß Health ß Education ß Employment ß Unlock value for Evolution / mining sector ß Support leading practice and new approaches in: ß Environment ß Safety ß Discovery ß Operations ß Technology ß Community outcomes * Aboriginal or Torres Strait Islander Performance Direct community investment Total direct community investment expenditures across our operations and Group office in FY22 were approximately $3.5 million, and supported the following impact areas: Community investment breakdown FY22 (%) Arts, Culture and Sport 5% Other* 9% Environmental Stewardship 10% Infrastructure Capability 20% Local Economic Development 9% Skills, Education and Training 15% Community Resilience 19% Health and Wellbeing 13% *'Other' refers to impacts external of the provided impact areas. 102 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 103 Community Community The following table highlights key Shared Value Projects at the operations: Shared Value Project Site Purpose Impact area Outcomes Shared Value Project Site Purpose Impact area Outcomes Red Lake Fire Recovery Support (ongoing from FY21) Red Lake Enhancing emergency capabilities within Red Lake with physical resources such as a fire truck and volunteers Community Resilience ■ Arrival of an equipped and modern fire truck in May 2022 ■ More volunteers from Red Lake and information sharing during the 2021/2022 fire season University of Queensland Research for COVID-19 immune response using gold Group Extending the partnership with UQ to adapt research on gold nanoparticles for early detection of long haul COVID-19 impacts Health and Wellbeing ■ An Immunostorm Chip technology that can assist in predicting who will develop cytokine storms which are associated with long-term tissue damage ■ Enhanced knowledge sharing and technological capacity in the face of a global pandemic ■ Evolution and UQ have been positioned as innovators in biotechnology ■ Increased potential for gold-based products in medicine and diagnostics ■ Enhanced partnership with the University of Queensland Through community investment we aim to provide a framework that addresses challenges faced by local stakeholders and catalyses long-term socio-economic development in local communities. To do so, we must strengthen the institutions that support local economies, and build the skills and capabilities that diversify economic activity. Where possible we seek to leverage other development resources and sources of funding available through partnership with other bodies. Through our community investment we aim to be consistent with and supportive of other local development initiatives and plans. Galari Agricultural Company Cowal Strengthening a partnership with the Wiradjuri Condobolin Corporation to address significant youth unemployment within the Lachlan Region, including young Indigenous men and women Indigenous Stakeholder Outcomes, and Skills, Education and Training ■ Addressing the shortfall in employment Lachlan Shire ■ Revitalisation of the Galari farm ■ Two trainees being trained in land management ■ Potential to train 80 young individuals each year in agriculture and horticulture ■ Enhanced commitment to and capability of First Nation Partners and Indigenous Peoples in the region ■ Evolution investment of $800,000 ■ A scalable framework for expanding the business, and others in the future Kalgoorlie Treasure Trail – Little Finds project Mungari Following the negative impact of COVID-19 on local business, tourism and creatives, Evolution partnered with local business Euphorium to install unique and hidden artworks around the CBD of Kalgoorlie ■ Over 15 new unique, unexpected/hidden artworks installed in the CBD of Kalgoorlie Arts, Culture and Sport, and Local Economic Development ■ Entertainment provided for locals, visitors and tourists, e.g. through maps ■ Art plaques commemorating the partnership ■ A financially self-sufficient project transitioning into its second and third stages of Junkadelic Yalga-Binbi Institute Girls Academy Mt Rawdon Capitalising on the existing Yalga-Binbi Institute project to facilitate a Girls Academy for the Year 7 to 12 bracket across the Wide Bay Burnett Central Queensland Region 1770 Cultural Connection Immersion Festival Mt Rawdon Continuing Evolution’s support of the 1770 Cultural Connections Immersion Festival as a major sponsor in 2022 ■ Education opportunities for young girls across schools, including in Maryborough, Hervey Bay, Cherbourg, Murgon, Bundaberg, and Gladstone Region Skills, Education and Training, and Inclusion and Diversity ■ Promotion of self-worth, health and employment outcomes ■ Workshops on leadership, health and wellbeing, Indigenous bushfood lessons, language, etc ■ Consolidating and strengthening of the Yalga- Binbi Institute, enabling other ventures Cultural Heritage, Community Engagement, Indigenous Stakeholder Outcomes, Inclusion and Diversity ■ Cultural education, immersion and engagement activities ■ A yarning tent providing a spacious and shaded environment allowing for the 1600 festival visitors to discuss with Elders and rest ■ Mayor has agreed to support the festival into perpetuity, supporting Evolution’s commitment to sustainable, positive legacies for the communities 104 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 105 Community Community CASE STUDY: Gidarjil Murra Wolka art project The Gidarjil Development Corporation, building upon their successes of the recent purchase of the Murra Wolka business and construction of a Cultural Tourism Hub at the new Mon Repos Turtle Centre, aim to develop a community-based project in the PCCC region where artists can be engaged to produce new products specific to the PCCC tribal groups. This proposed project aims to provide sustainable solutions to local employment options and opportunities building on the existing goodwill and success of the Yalga-Binbi Environmental Training Centre. It could potentially enable long-term sustained income earning potential for numerous artists across the region with employment/income earning capacity for 8 to 10 Indigenous People in the PCCC region. Our contribution has the potential to generate sustainable employment for Indigenous communities in the region and provide employment and training opportunities for manufacturing, retail, distribution, and local artists is in line with our values and partnership approach. currently have two trainees who are being trained in land management. In the long-term, it will potentially provide training support for 80 youths each year in agriculture, shearing, fencing, and fishing. This project supports the establishment and long-term viability of the GAC and strengthens our commitment to the First Nation Partners and Indigenous Peoples of the area, our Native Title Deed, and the ongoing success of the Wiradjuri Condobolin Corporation. In late May 2022, ABC TV Landline shared the story of the Golden Gift which was about our support for the WCC and GAC which is creating positive and sustainable change for its trainees and wider community. WCC Chair, Ally Coe, commented he was “terribly excited” to see his dream and legacy take shape. In July, the GAC was officially launched with a NAIDOC Week celebration and ceremony. Galari Agricultural Company opening ceremony during NAIDOC Grievances Approach We have an established grievance mechanism through which community members or other stakeholders can express any concerns, issues or grievances about real or perceived actions by a project that cause them concern. The intent of the community grievance mechanism is to ensure issues and grievances are managed consistently and in accordance with relevant policies and procedures. A well-designed grievance mechanism and procedure brings benefits to Evolution and the communities in which we operate, by ensuring the timely response to issues and grievances. The procedure assists us to: ■ Facilitate early resolution of grievances ■ Provide an open and responsive grievance management process ■ Enable the Community teams to resolve grievances in a consistent and effective manner ■ Avoid issues escalating ■ Identify risks and trends to inform strategies or work plans and identify improvement opportunities ■ Meet compliance requirements MRO Community Relations officer Anita Ward holding examples of Murra Wolka art CASE STUDY: Galari Agricultural Company Evolution and the Wiradjuri Condobolin Corporation (WCC) have extended a close working relationship with the official approval, lease arrangement, and progression of the Galari Agricultural Company (GAC). Supported by our investment of $800,000 over three years, the mission of the GAC is to profitably run a livestock enterprise focused on sheep and wool production whilst providing training to and employment of Indigenous peoples. The farming and training enterprise will be owned and operated by the WCC. In 2019, the Lachlan Shire’s unemployment rate was 7.2% compared to the state average of 4.5%. The GAC Performance All operations have a grievance mechanism in place to ensure that stakeholders can voice concerns about Evolution activities and impacts and that these concerns are documented in a transparent, accountable manner and addressed in a timely fashion. Refer to the FY22 ESG Performance Data document for the total number of grievances filed through grievance mechanisms at the operations in FY22. Local employment (material topic) Approach We make it a priority to draw our workforce from the local communities to ensure that the economic benefit of employment remains in the local communities. Due to the developed regions where we operate, we have been fortunate to have the ability to source our workforce locally. However, it is occasionally necessary to source specific skills, levels of experience, or technical expertise from abroad. This strategy helps build strong working relationships with local communities. Performance 72% FY22 local employment across our operations CASE STUDY: Revival of the West Wyalong newspaper wins the NSW Mining HSEC Award for Community Excellence We are extremely proud to congratulate Cowal Gold Operations as the winner for the 2022 NSW Mining HSEC Awards for Community Excellence. The closure of the 126-year-old West Wyalong Advocate in early 2021 signalled the loss of a voice and history to the West Wyalong community and the loss of Cowal Gold operation’s communication with the local community. Rather than sitting idly by the Cowal Community Relations team of Mark Hartig, Steff Wills and Renee Pettit partnered with owners, community stakeholders, and the Bland Shire Council to revive the paper with an independent Board of Directors through the not for profit, West Wyalong Advocate Foundation. This community partnership resulted in the revival and publication of the West Wyalong advocate on the 14th of May 2021. Since then, the Advocate and Evolution have been met with overwhelming positivity – event organisers and businesses are thrilled to have their services and functions being publicised again, and community members have perceived the revival as a gift at a time when so many regional areas are losing their local voice. Cowal has been praised by the community as a “white knight” and has received significant media attention following the revival. On the 25th of July, the project received the coveted NSW Mining award for Community Excellence. NSW Mining HSEC Conference & Awards 2022 CASE STUDY: West Wyalong community welcomes opening of cinema The red carpet has been rolled out and a little piece of Hollywood finally returned to West Wyalong at the grand opening of the Tivoli Theatre cinema at the historic Masonic Hall. The dream to bring movie magic back to the West Wyalong community has been realised through $150,000 in funding from the Federal Government, $450,000 from the New South Wales Government, and $300,000 from Evolution. It was a community-initiated project with many calling out for the much-wanted facility. Bland Shire General Manager Ray Smith was proud of the community’s eagerness for the project and facility itself which will serve as a state-of-the-art 85-seat cinema and a multi-purpose venue for private functions, public meetings, art exhibitions, charity events, conferences, and drama productions. John Penhall, Cowal General Manager noted that the opening was an exciting milestone for West Wyalong, adding to the social life of the town. The theatre will carry on the rich history of its namesake and provide a lasting positive legacy for West Wyalong. Cowal General Manager, John Penhall, attending cinema opening 106 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 107 Community Community Sustainable procurement (material topic) FY22 highlights: ■ $133M million local spend (32% increase compared to FY21) ■ 62%* of medium and high-risk suppliers assessed for modern slavery and human rights risks in FY22 ■ Second Modern Slavery Statement released ■ Standard contract terms updated to consider modern slavery risks and expectations * 62% of questionnaires issued were returned in FY22 Approach We are committed to conducting business in a responsible way, and we expect the same commitment from the contractors and suppliers. We seek contractors and suppliers who share our corporate values, follow high standards of governance and compliance with all applicable laws and our policies, and are committed to following our way of doing business. Sustainable procurement is a powerful lever for influencing the Sustainability performance and business conduct of suppliers. By integrating Sustainability into procurement policies and practices, businesses can manage Sustainability risks and opportunities, minimise adverse impacts and promote positive environmental, social and economic outcomes. Exploration & discovery ■ Drilling contractors ■ Surveying ■ Geology and geophysical contractors Analytical laboratories ■ Health and Safety specialists ■ Earthmoving contractors Environmental and water consultants Support services ■ Site accommodation management ■ PPE and PPC services ■ Power, communication and IT services Insurance ■ Legal and specialist support Medical, health and safety services Labour supply ■ Employee benefits ■ Water and waste management Mining ■ Mining and haulage contractors, ■ Fuel, oil and tyre supply plant and equipment ■ Cement and ground support supply ■ Explosives supply and blasting services Fleet, maintenance, parts and equipment ■ Blasting software and consultants ■ Mining communications Geotechnical services Processing ■ Operations and maintenance ■ Chemicals and reagents supply contractors ■ Laboratory services Civil ■ Supply of grinding media and contractors Fuel and gas supply flocculants Transportation ■ Freight services ■ Haulage services ■ Port services Evolution’s supply chain ■ Stevedoring ■ Shipping Bus services ■ Air charter services Travel service Evolution supply chain We strive to improve the supply chain’s social and ethical footprint, and work with suppliers that share our values. We expect our suppliers to comply with all applicable legislation and to demonstrate that they have the attributes set out in the Modern Slavery Statement, Supplier Code of Conduct and Procurement Statement, which are approved by the Board. The Human Rights Standard and Modern Slavery Business Guide supports the Supplier Code of Conduct, which outlines Evolution’s commitment to: ■ Prohibit any form of forced labour, including child labour, slave labour and human trafficking ■ Work to comply with obligations under the Modern Slavery Act 2018 (Cth) by undertaking risk assessments to identify areas of the business and supply chains where there is a risk of modern slavery practices, and take necessary action to address those risks ■ Make contractual commitments with suppliers that encourage them to adhere to our Supplier Code of Conduct ■ Communicate this approach and commitment to human rights to all stakeholders, including employees, contractors and suppliers Suppliers are required to be accountable for their actions and commit to ensuring they conduct their business in alignment with our values and behaviours. We have also included a requirement in our contracts, for which contractors must maintain awareness and compliance. In FY22, we implemented a risk-based, phased approach to our Sustainable Supplier Risk Management program, including pre-qualification questionnaires related to key Sustainability topics, risk analysis and segmentation, and mitigation plans, where appropriate. We recognise the opportunity to create a positive impact on communities by making considered choices about how and where we source the goods and services we need to operate the business. Key sustainable procurement activities continue to focus on the following areas: ■ Identifying, assessing, and addressing modern slavery risks ■ Supporting regional communities ■ Increasing Indigenous participation ■ Supporting small businesses In FY22, we have further strengthened Sustainability as a performance driver in Evolution procurement by: ■ Developing the second Modern Slavery Statement which aims to increase business awareness of modern slavery risks and improve transparency across global supply chains ■ Allocating more resources to lead the business in promoting ethical sourcing practices and work closely with the Sustainability team executing on our Indigenous engagement and procurement strategies ■ Conducting Sustainability and business conduct evaluations as part of the tender processes ■ Participating in the Modern Slavery Communities of Practice (United Nations Global Compact) ■ Implementing the process to identify suppliers that are at higher risk of modern slavery incidents ■ Requiring high-risk suppliers to complete Modern Slavery Self-Assessment Questionnaires (SAQs) ■ Holding awareness sessions with the procurement team on sustainable procurement and modern slavery ■ Business endorsement on three sustainable procurement focus areas which align with identified material risks and with Company goals for FY23. These include a focus on: ■ Net Zero ■ Modern slavery ■ Indigenous procurement Evaluation of Sustainability and business conduct in tenders In FY22, we implemented a more detailed evaluation criteria for Sustainability and business conduct as part of its standard tender process. Evaluation criteria for Sustainability and business conduct include considerations of corporate governance, the presence of Sustainability policies, programs and reporting, the quantification of greenhouse gas (GHG) emissions and initiatives to reduce GHG emissions, policies or practices to enhance inclusion and diversity, business ethics and conduct, as well as community support. Environmental and health and safety considerations include a range of policies and management plans, risk assessments, incident reporting and performance metrics. Any person entering an Evolution site is required to complete a corporate safety induction and a site specific or workplace specific induction. Modern slavery and human rights (material topic) Approach We are committed to operating responsibly and establishing and adhering to the highest ethical standards. We reject any activities which may cause or contribute to modern slavery, including forced or bonded labour, child labour, human trafficking, slavery, servitude, forced marriage or deceptive recruiting for labour or services. Respect for human rights is a core value of Evolution. Our approach to human rights is supported by the conviction that the activities can and should have a positive impact on the lives, livelihoods and rights of individuals and communities. We acknowledge that the operations could potentially cause, contribute to, or be directly linked to negative human rights impacts. We seek to prevent and mitigate adverse impacts and to contribute to the promotion of broader societal respect for, and protection of, human rights. 108 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 109 Community Community As a signatory to the UNGC, we have committed to advancing all ten principles of the UNGC, including principles One and Two: human rights and respect for human rights, as outlined in the United Nations Universal Declaration of Human Rights. One of our nine Sustainability Principles, human rights, underpins the Human Rights Performance Standard, as part of the Sustainability Performance Standards. The Human Rights Performance Standard establishes principles and actions for how we identify, prevent, mitigate, track and report on human rights risks and issues associated with projects and operations. The Standard draws on the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the UNGC, and its key principles are incorporated across the processes and systems. Our second Modern Slavery Statement was approved in FY22, and a commitment within the statement is to undertake further questioning, review and assessment of suppliers considered to be at higher risk of modern slavery in their supply chains. We consider that any form of modern slavery is unacceptable and acknowledge our responsibility in helping to eradicate it. During FY22, we continued to apply a rigorous methodology to manage modern slavery risks. We are working to progressively understand the multiple tiers of suppliers that form the extended supply chain. Our risk assessment process sets a base level identification of modern slavery risk by considering country risk, and product/service category risk. We have collaborated with each of the sites to determine medium to high-risk suppliers and have issued 109 questionnaires on human rights and modern slavery risks to those identified suppliers. The assessments to date have not identified any modern slavery practices in the operations or supply chain, however we recognise this is an ongoing process and remain vigilant. In FY22, we: ■ Updated modern slavery self-assessment questionnaire (SAQ) toolkit to understand the risk of modern slavery in business operations and their supply chains ■ Amended supplier contracts to require them to conduct their business in a manner that is consistent with the Modern Slavery Act 2018 (Cth) ■ Rolled out Human rights and modern slavery training across our Australian workforce: ■ 12% of our Australian workforce and 100% of our Australian procurement team received training (outside of general induction training when onboarding new employees which includes a modern slavery component) ■ Our Australian workforce completed over 236 training hours. The training module includes: ● The basic principles of the Modern Slavery Act 2018 (Cth) ● How employees can identify and prevent modern slavery and human trafficking ● What employees can do to ‘flag’ potential modern slavery and human trafficking issues to relevant parties within the business Local and regional procurement Approach Procuring goods and services from local and regional suppliers helps share the economic value in the communities in which we operate. Progress is monitored by tracking direct procurement spend (paid by Evolution) and indirect spend (paid by subcontractors to Evolution). Our approach is based on local economic procurement decisions and processes that have significant and positive impacts on local economies, with associated benefits to businesses and communities in the regions where we operate. Local and regional procurement practices focus on: ■ Promoting an open and shared culture across all our workplaces ■ Providing ongoing training and education ■ Upholding equal opportunities, diversity and anti- We engage with local communities. This includes hosting information evenings with key contractors and their communities to discuss subcontracting, supply and employment opportunities on various projects. Performance In FY22, $164 million was spent directly with local and regional suppliers, including $133 million with local suppliers, a 32% increase compared to FY21. The increase in this spend was due to efforts to more actively identify opportunities to include local, regional and Indigenous suppliers. ● What external help is available to identify and discriminatory practices ■ Hiring employees, contractors and suppliers from the local community prevent modern slavery For more information, see the 2021 Modern Slavery Statement provided on the website. Performance In FY22, our assets were internally audited and verified, including human rights and modern slavery risks, against our Human Rights Performance Standard. No incidents or violations of human rights, including the rights of Indigenous peoples, freedom of association, child labour, youth labour with exposure to high-risk work, or forced labour involving our employees were recorded during the reporting period; however, we recognise this is an ongoing process and continue to review. We requested 109 Modern SAQs from our suppliers during the year and no modern slavery risks were identified in our supply chain during FY22. While no instances of modern slavery were identified, several discussions were held with suppliers to better understand their current business practices and encourage them to work towards having robust policies and processes to identify, investigate and remedy the risk of modern slavery in their supply chain. We continue to monitor and assess the high-risk supplier base to ensure their understanding of our commitment towards sustainable procurement practices across ours supply chain. 110 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 111 Community Governance We understand that our commitment to responsible business principles is fundamental to our success and ability to be a trusted partner with our stakeholders. Evolution’s corporate governance framework ensures robust oversight and management accountability for all aspects of the business including sustainability. Everyone who works for or on behalf of Evolution is held to high standards that are expected to be consistently met Evan Elstein, Company Secretary and VP Information Technology Governance FY22 highlights 100% of all integrated assets internally and externally audited and verified with oversight from the Board Risk and Sustainability Committee $2.5M in direct and indirect support to our people and community since COVID-19 pandemic began Representation with industry working groups in all jurisdictions addressing transitional risk Published 2021 Modern Slavery Statement, and updated Supplier Code of Conduct and Procurement Statement 95% compliance on cyber awareness training (against a target of >90%) 0 Zero reported cases of bribery or corruption Environmental – no material non- conformance, positive self-reporting of minor/technical non-conformance Strategic uplift in the integration of Sustainability Principles, Policies and Standards Published second Modern Slavery Statement TSF Governance Committee providing effective oversight of TSF management Alignment of disclosures with GRI, TCFD and ASX Corporate Governance Recommendation 7.428 28 ASX Corporate Governance Principles and Recommendations 112 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 113 Governance Governance Our Sustainability Principles Sustainability is integrated into every aspect of the business to ensure we deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way. Our approach is guided by nine Sustainability Principles which align with the UNSDGs. Strategy focus Our Sustainability strategy focuses on value creation to advance our Sustainability performance through: Sustainability: Integrated Into Everything We Do Evolution’s Sustainability Principles 1 Be an employer of choice attracting the most talented people and foster a safe, diverse and inclusive workplace 3 Contribute positively to local, regional and national sustainabil- ity efforts by achieving an outstanding level of environmental stewardship 5 Protect and enhance our reputation as a trusted partner and provide community benefits that endure beyond the life of our mines Demonstrate robust risk management and safety leadership 2 6 Advance the outcomes for indigenous peoples and protect their Cultural Heritage Actively manage climate related risks and opportunities including improving energy efficiency and the responsible management of water 4 8 Be transparent at all levels of Corporate Governance, comply with applicable laws and regulations and operate at the highest standards of financial and ethical behaviour Respect the human rights of all our stakeholders 7 Relentlessly drive for operational excellence through an innovative culture and inspired people delivering to plan 9 Unlock potential through leadership to develop protective behaviours Assurance to promote ongoing improvement Disciplined, consistent and reliable management – the right way every time Health, safety and wellbeing Governance and assurance Risk management including climate-related risk Shared stories strengthen reputation. Resilient to change with improved disclosure Storytelling and ESG reporting Collective Leadership Environment Commitment to reduction in environmental footprint Cultural Heritage and Indigenous engagement Water and emissions Protect Cultural Heritage and First Nation Partner relationships Community management Our 'Net Zero' future Social licence to operate through targeted community plans ■ Unlocking potential through leadership to develop proactive behaviours ■ Disciplined, consistent and reliable risk management (including climate related risk) – the right way every time ■ A commitment to reduction in environmental footprint ■ Our Net Zero future ■ Further enhancing our Social Licence to Operate through targeted community plans ■ Protecting Cultural Heritage and First Nation Partner relationships ■ Strengthening reputation through shared stories supported by a strong reporting culture. ■ Resilience to transitional risk through improved disclosures ■ Assurance to promote ongoing and continual improvement 114 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 115 Governance Governance Sustainability and Strategic Planning Policy The Sustainability and Strategic Planning Policy29 outlines how Sustainability is integrated into the business. These policies focus on the holistic management of risks in: Voluntary ESG disclosures and commitments to initiatives We voluntarily aligns or adheres to the ESG-related industry reporting frameworks and initiatives presented in the figure below. This allows us to demonstrate our commitment to high standards of environmental, social and governance policy and performance. This transparency also allows external stakeholders to hold us to account. ■ Health, safety and wellbeing ■ Environment ■ Cultural Heritage ■ Human Rights ■ Risk-based decision making ■ Reporting, learning excellence, innovation, and continuous improvement ■ Crisis and emergency management and corporate governance ■ Accountabilities for risk, sustainability and strategic planning Sustainability and Strategic Planning Standards The Sustainability Standards30 and Strategic Planning Standards support the Sustainability and Strategic Planning Policy in providing the minimum risk and Sustainability requirements to be met or exceeded in all areas of the business, including operations, exploration and Group activities. Integrated risk management framework Integrated risk management framework Sustainability Principles Sustainability & Strategic Planning Policy Sustainability & Strategic Planning Standards Management System, Operating Processes and Procedures Assurance program In FY22, the internal audit process for assessing compliance with these standards was reviewed and uplifted from an implementation model to a compliance framework. Eleven of the standards were assessed along with five Material Risks across each of the operations. The revised process was part of continual improvement to help identify and lift operational control. The new process and all audit findings were independently verified by third-party auditors with positive results received on the uplift in the overall assurance process. 29 Sustainability and Strategic Planning Policy 30 Sustainability Performance Standards Evolution’s voluntary ESG disclosures and commitments to industry and international Initiatives Voluntary disclosures Industry initiatives International business initiatives Global Reporting Initiative (‘GRI’) standards ■ Reporting of ESG performance in accordance with GRI requirements since FY21 International Cyanide Management Code (‘ICMC’) ■ Cowal and Red Lake recertified to ICMC in FY22 United Nations Guiding Principles on Business and Human Rights (‘UNGP’) ■ 2021 Modern Slavery Statement aligned with the UNGP Task Force on Climate- related Financial Disclosures (‘TCFD’) ■ Commenced reporting in line with TCFD in FY20 ■ 90% aligned with TCFD in FY22 The Greenhouse Gas Protocol: A corporate accounting and reporting standard ■ GHG emissions disclosed in accordance with this standard Global Industry Standard on Tailings Management (‘GISTM’) ■ Tailings management approach integrates climate change, stakeholder engagement, emergency management, our communities, receiving environment, dam safety and post mine land use United Nations Global Compact (‘UNGC’) Sustainability Development Goals (‘SDGs’) ■ Joined UN Global Compact in 2021 ■ Communication of Progress to the UNGC reported annually ■ Positively contributing to progress on all 17 SDGs through our activities and initiatives ■ Collaborative efforts with government, civil society and other businesses Sustainability materiality assessment In this Report, a material Sustainability topic is one that reflects our most significant economic, environmental and/or social impacts, or one that could substantively influence the assessments and decisions of our stakeholders, in accordance with guidance from the GRI. The content of this report was determined through an independent materiality assessment undertaken in FY21. The materiality assessment helped identify the most important environmental, social and governance issues for key external and internal stakeholders. We use this input to help prioritise Sustainability actions, inform our Sustainability strategy and ensure we report on the issues that are most important to our stakeholders. The annual process for determining material Sustainability topics follows a three-year cycle and involves four phases: identification, prioritisation, validation, and report and review. The first year (FY21) involved intensive consultation and research to identify a full list of topics that were analysed by internal experts and external stakeholders and validated by the Leadership Team. Sustainability topics in the mining industry are relatively consistent year over year, given the long- term nature of operations. As such, the second year and upcoming third year will build on the results from the first year. The assessment is updated to reflect emerging issues. 116 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 117 Governance Governance Evolution’s materiality process 1 2 3 4 Identify Material sustainability issues are identified by considering both internal and external factors, including a review of current and emerging sustainability topics in the media impacting the industry, risk assessments, internal policy, peer benchmarking and regular internal and external stakeholder engagement Prioritise Topics are ranked based on their importance to the business and external stakeholders using a range of inputs, before being classified as high, medium or low Validate The classification of topics is validated by our Leadership Team and the Board’s Risk & Sustainability Committee Report and Review Additional sustainability topics have also been included in this Report to meet expectations of stakeholders and other reporting requirements. Material topics will be reviewed internally on an annual basis and continue the full external refresh cycle every three years Materiality matrix ß Cyber Security ß Employee Engagement ß Hazardous Chemicals Management ß Transport Safety ß Governance and Compliance ß Indigenous Stakeholder Outcomes ß Stakeholder Engagement ß Talent Attraction and Retention ß Effluents and Waste ß Innovation and Technology ß Crisis Response (inc. Pandemic) ß Community Engagement ß Cultural Heritage ß Energy and Emissions  ß Work Health, Safety and Wellbeing ß Climate Risk ß Diversity and Inclusion ß Tailings Management ß Environmental Compliance  ß Land Use and Biodiversity ß Local Employment ß Mine Legacy and Rehabilitation ß Water Management ß Anti-Bribery and Corruption ß Modern Slavery and Human Rights ß Sustainable Procurement Influence on stakeholder assessments & decisions ➤ Priority 1 Priority 2 Priority 3 Priority 4 l s e p i c n i r P y t i l i b a n i a t s u S n o i t u o v E d n a l s l a o G t n e m p o e v e D e b a n l l i a t s u S s n o i t a N d e t i n U e h t t s n i a g a d e p p a m s c i p o T l a i r e t a M ➤ s t c a p m i l a i c o s & , c i m o n o c e f o e c n a c fi n g S i i l a t n e m n o r i v n e N V E y t i l i i b a n a t s u S l s e p i c n i r P t n e m n g i l A s t c a p m i e h t o t d n o p s e r d n a t p a d a o t n o i t a s i n a g r o e h t f o y t i l i b A e m e r t x e s a h c u s s k s i r l a c i s y h p s e d u l c n I . e g n a h c e t a m i l c f o s k s i r y r a n o i t i s n a r t d n a s t n e v e r e h t a e w N V E s e u s s i l a i r e t a m k s i r e t a m i l C e t s a w c i n a g r o n i d n a c i n a g r o , e t s a w l a i r t s u d n i , k c o r e t s a W e t s a W d n a s t n e u ffl E 4 3 4 3 3 3 3 4 8 2 8 2 9 8 8 2 5 1 6 1 1 6 1 5 7 1 1 l e b a w e n e r , y c n e i c ffi e y g r e n e , s e p y t l e u f s a h c u s s t c e p s a g n d u l c n i i s n o i s s i m e n o b r a c f o n o i t c u d e r d n a t n e m e g a n a m , g n i r o t i n o M , d e t i d u A . n o i t a r o t s e r d n a n o i t c e t o r p s m e t s y s o c e d n a y t i s r e v d o B i i i e d n a y c d n a s n o i s s i m e r i a , s e g r a h c s i d l a t n e m n o r i v n e d e e w d n a t s e p , e r i F . e c a p n l i l s n a p t n e m e g a n a m d n a d e p p a m , e s i o N . e . i : i g n d u l c n i s t c a p m i d n a s t n e d i c n i l d e t a u g e R i l s e g o o n h c e t s n o i s s i m e d n a y g r e n E l a t n e m n o r i v n E e c n a i l p m o C d n a e s U d n a L y t i s r e v d o B i i l e r u s o C e n M i s a h c u s s e s u e r u t u f l r o f e b a t i u s r o e t a t s l a r u t a n o t d n a l i s e g e t a r t s g n i r o t s e R : d n a e s u e r , e s u r e t a w f o y c n e i c ffi e , y t i l a u q , l y p p u s f o y t i r u c e S d n a y t i n u m m o c n o s t c a p m i l a i t n e t o P . s e i t i n u t r o p p o g n i l c y c e r t n e m e g a n a M r e t a W t n e m n o r i v n e y r t s u d n i y g r e n e n a e l c , e r u t l u c i r g a , n o i t a v r e s n o c n o i t a t i l i b a h e R m a e r t s e t s a w g n n m i i t n a c fi n g i s i t s o M t n e m e g a n a M s g n i l i a T / n o i t c a s n a r T t n e u d u a r F l , e s u s i m t n e m p u q E i , e r u l i a f t n e m p u q E i g n i t r o p e r t n e r a p s n a r t , y c i l o p t s u b o r , t c u d n o c s s e n i s u b l a c i h t E n o i t a n o s r e p m I y t i r g e t n i o t t n e m t i m m o C d n a y r e b i r B - i t n A n o i t p u r r o C y t i r u c e S r e b y C d n a e c n a n r e v o G w e c n a i l p m o C s u o d r a z a h f o l a s o p s i d d n a t r o p s n a r t , g n i l d n a h , e g a r o t s , e s U s l a c i m e h C s u o d r a z a H s d o o g s u o r e g n a d r e h t o d n a s e v i s o p x e g n d u l c n i l i s l a c i m e h c t n e m e g a n a M l a n o i t i d a r T , s r e m o t s u c , s r o t s e v n i h t i w t n e m e g a g n e d n a g n i t r o p e R y m o n o c e r a u c r i c l , n o i t a m o t u a , e r u t c u r t s a r f n i l , s e b a w e n e r , n o i t a s i t i g d i i l , s e g o o n h c e t w e N c t e s e i t i r o h t u a l a c o l , s r o t a u g e r l , s r e n w O d n a , y t i r u c e s , s n o i t a r o p r o c s u o n e g d n I i , s e u s s i l a t n e m n o r i v n e , s t h g i r n a m u h : l y b i s n o p s e r s e c i v r e s d n a s d o o g e s a h c r u P t c u d n o c r e i l p p u s o t n o i t a t r o p s n a r t m o r f t s u d d a o R . s t n e d i c c a i n o i t a v a d n a d a o R i i s e t i s g n n m e h t n h t i i w d n a g n i r e v i l e D . s e c n a v e i r g d n a s n o i t a t c e p x e y t i n u m m o c g n g a n a M i . t n e m e g a g n e y t i n u m m o c i s u o n e g d n I - n o n d n a s u o n e g d n I i i l g n p o e v e d n i n i t s e v n i d n a s t n e m e e r g a l a i c fi e n e b y l l a u t u m n o . s e i t i n u m m o c l a c o l r u o d n a h t l a e h r e h t o d n a , e r fi h s u b , I D V O C o t e c n e i l i s e r s s e n i s u B d n a l s e c a p t c e t o r p o t s e i t i n u m m o c s u o n e g d n I i h t i i w g n k r o W d n a s s e n d e r a p e r p s s e n i s u B . s e i c n e g r e m e l a t n e m n o r i v n e y t i u n i t n o c t n e m e g a g n e s u o n e g d n I i . e c n a c fi n g i s i l a r u t l u c f o s m e t i t n e m e g a g n E r e d o h e k a t S l d n a n o i t a v o n n I l y g o o n h c e T t n e m e r u c o r p e b a n a t s u S i l t n e m e g a g n E y t i n u m m o C y t e f a S t r o p s n a r T . c n i ( e s n o p s e r s i s i r C ) c i m e d n a P e g a t i r e H l a r u t l u C h t l a e h d n a y t i n u m m o c , s e i t i n u t r o p p o n o i t a c u d e d n a c i m o n o c E l r e d o h e k a t S s u o n e g d n I i l s r e d o h e k a t s s u o n e g d n I i r o f s e m o c t u o s e m o c t u O , t c u d n o c f o e d o c , i p h s r e d a e l l a c i h t e , e r u t l u c l a n o i t a s i n a g r O s n o i t i d n o c k r o w e b x e fl i l t n e m e g a g n E e e y o p m E l a y b d e w o l l o f , l e b i s s o p e r e h w s l a c o l l y o p m e o t t n e m t i m m o C I O F F r e v o n o i t a c o e r l r o f e c n e r e f e r p t n e m y o p m E l l a c o L h c u s s e s u e r u t u f r o f l e b a t i u s r o e t a t s l a r u t a n o t d n a l g n i r o t s e R y r t s u d n i y g r e n e n a e l c , e r u t l u c i r g a , n o i t a v r e s n o c s a y c a g e L : l e r u s o C e n M i , y a p r i a f , s r u o h k r o W . n o i t a l s i g e l y r e v a l s n r e d o m n a i l a r t s u A d n a l y r e v a S n r e d o M y c n e r a p s n a r t i n a h c l y p p u s i s t h g R n a m u H , i i g n n a r t d e t e g r a t l , t n e a t d e c n e i r e p x e d n a w e n o t g n i l a e p p A d n a n o i t c a r t t A t n e a T l l t n e m p o e v e d d n a h t w o r g r e e r a c n o i t n e t e R , y t e f a s r o t c a r t n o c d n a e e y o p m E l . h t l a e h l a t n e m d n a l a c i s y h P d n a y t e f a S , h t l a e H k r o W i e n e g y h l a n o i t a p u c c o g n e b i l l e W i g n n a r t i s s e n e r a w a l a r u t l u C . ’ i g n n m n i i n o i t a p i c i t r a p f o n g i s e d e v i s u l c n i d n a i y t i s r e v d f o s m r o f l l A l e a m e f ‘ : A E G W h t i w d e n g i l a y g e t a r t s r e d n e G l . s e c a p k r o w n o i s u l c n I d n a y t i s r e v D i 118 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 119 Environmental Governance Social Material topics - definition and alignment with the UNSDGs               Governance Performance (Progress against key targets) In FY22, a number of measures and targets were used to quantify our progress toward key strategic objectives for FY22. Performance against these goals, measures and targets were aligned with the Sustainability Principles and the FY22 Balanced Business Plan (BBP). The BBP is designed to be a balanced scorecard supported by five key business pillars: Zero Harm and Sustainability, People, Operations, Growth and Financial Outcomes. In FY22, our Sustainability related targets and measures were met or exceeded against relevant business pillars and all supporting project objectives. Notably, we made significant progress towards Evolution’s Net Zero commitment in addition to delivering agreed actions with the communities in which we operate (including Community Relations and First Nation Engagement). The target of energy and emissions per tonne mined was also met and is discussed in more detail in the Environment section. Whilst we achieved our targets for health and safety, with the Total Recordable Injury Frequency (TRIF) delivered better than target, we acknowledge that there will always be more work to do. Each operation was actively involved in implementing robust plans and initiatives to help reduce the risk of incidents and to minimise the risk of injuries and illness. Improvements were also seen in leading safety metrics such as increased proactive reporting, leadership, field interactions, action close out and participation in weekly learning calls. There has been ongoing commitment to the review of material actions to ensure these are addressed and closed out on time (100% for FY22). These actions are reviewed on a weekly basis and reported on monthly, demonstrating a high level of confidence in reporting. The table below provides a snapshot of our Sustainability performance against key FY22 targets and objectives. Objectives and targets Timeframe Progress against targets and objectives Progress against targets Environment Achieve <0.54kL freshwater demand per dry tonne milled (DTM) FY22 Progress on Net Zero commitment 2050 100% of actions in emission reduction plans completed Ongoing/ FY22 ■ Achieved 0.31 kL freshwater demand per dry tonne milled (DTM) against a target of 0.54 ■ Completed third party validation of FY20 baseline with inclusion of acquisitions (Ernest Henry and Kundana assets) ■ Completed value chain assessment for all current operations ■ Developed robust direct (Scope 1) and indirect (Scope 2) accounting program, including resetting emissions baseline Conducted a CO2 abatement cost review focussing on marginal abatement cost curves (MACC) ■ Externally validated modelling of emissions data including all input modelling (developed a draft NPV and decarbonisation tool for assessing investment potential of decarbonisation projects) ■ Further validated decarbonisation roadmap against a 1.5 and 2-degree scenario ■ Completed energy audit and decarbonisation roadmap for Cowal with Mungari scheduled for FY23 ■ 7% reduction in emissions intensity per tonne of material mined compared to the adjusted baseline year of FY20 ■ Conducted independent audit of Scope 3 emissions ■ Developed draft sourcing strategy with a focus on renewables ■ 100% of actions in emissions reduction plans completed Health and safety Total recordable injury frequency (TRIF - per million work hours at or below 10.75 excluding Ernest Henry ■ Zero fatalities FY22 ■ Recorded 10.37 TRIF (excluding Ernest Henry)31. All locations were within target except Red Lake ● ● ● ● Objectives and targets Timeframe Progress against targets and objectives Environment Bow ties completed for material risks 100% of actions closed for material and critical risks 100% of actions in targeted Safety Improvement Plans completed FY22 ■ 100% validated with no major gap FY22 ■ 100% closed and validated in third party audit Ongoing/ FY22 ■ 96% of actions in Safety Improvement Plans completed (4% not delivered due to training related COVID restrictions) Data insights project - INX FY22 ■ Delivered - Embedded a new reporting system to drive better data insights People Increase engagement and progress scores in Evolution’s Employee Teamgage Survey Deliver dedicated inclusion and diversity project. FY22 ■ Engagement score slightly increased from 78 in FY21 to 79 in FY22 FY22 ■ Launched an Inclusion and Awareness project in FY22 100% of people having meaningful values and culture conversations FY22 ■ 100% of employees had meaningful values and culture conversations with a senior people leader Community 100% of actions in First Nation Partner and community plans completed Zero material Cultural Heritage incidents ESG FY22 ■ ■ 100% of actions in Community plans completed 100% of actions in First Nation Engagement Plans completed FY22 ■ Zero material Cultural Heritage incidents ■ Evolution participates in external third-party performance benchmarking initiatives and Sustainability related assessments, including environment, social and governance (ESG) ratings agencies. The higher levels of transparency have been recognised through improvements in Evolution’s ESG scores by key ESG ratings agencies. Refer to ‘Commitments and Recognition’ section for more information on Evolution’s ESG scores and the uplift achieved from FY21 to FY22 ■ Completed TCFD gap analysis ■ Completed scenario analysis (energy and emissions and water security) for Cowal, as part of further alignment with TCFD recommendations Externally validated third party performance FY22 TCFD alignment FY22 ● Achieved Governance Progress against targets ● ● ● ● ● ● ● ● ● ● ● 31 10.66 TRIF including Ernest Henry 120 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 121 Governance Governance Stakeholder engagement (material topic) Approach We recognise the wide range of stakeholders where the business operations have an impact and acknowledge the importance of delivering against our obligations. We believe that what is important to our stakeholders is important for us to meet our strategic objectives. This requires ongoing and effective engagement, where we provide transparent and timely information and actively encourage feedback from all stakeholders. The Stakeholder Engagement Performance Standard ensures a consistent approach to engaging with communities, employees and other stakeholders. Each of the sites use a systematic and recurring stakeholder mapping process (e.g. social impact assessment) to identify and prioritise stakeholders from direct and indirect influence areas, and those interested in, or potentially affected by site activities. CASE STUDY: Burnett Mary Regional Group Elliot Heads Wetlands, Research Centre and Seagrass Nursery The Burnett Mary Regional Group (BMRG) aims to strengthen their research capability bringing together existing projects and developing additional research and education facilities across the region. Partnership with BMRG is focused on the development of Elliot Heads Wetland, Research Centre and Seagrass Nursery and incorporating Sustainability into the development of this new community. The vision is to establish a coastal and marine research centre, seagrass nursery and wetland trail, accessible to the community. All of which would be connected to the Cultural Heritage of the Traditional Owners of the region, highlighting their connection to Land & Sea Country and traditional practices. In FY23, we will contribute towards the purchase of the Elliot Heads research area, support the development of the proposed Elliot Heads Wetland, Research Centre and Seagrass Nursery, and contribute to the broader Eco-Trail project. Engagement with Local and Indigenous communities All operations, exploration sites, projects and closed properties identify, prioritise and directly engage with local and Indigenous communities. Work in this area is focused on: ■ Disclosing and appropriately communicating accurate and timely information ■ Maintaining an open dialogue so all parties can fully understand each other’s views and concerns ■ Engaging in decision-making around all activities ■ Collaborating on issues of mutual interest ■ Maintaining Evolution’s ability to operate ■ Understanding the potential impact of all activities on the rights of Indigenous communities Those responsible for engagement with local communities and First Nation Partners and Indigenous Peoples are trained to conduct dialogue that is focused on building and maintaining relationships and addressing issues important to those communities. This helps enable engagement that is productive and constructive, and that directly contributes to the building and maintenance of long-term, trust-based relationships. The table below provides an overview of stakeholder groups engaged in FY22, key interests and concerns, and how we generally respond to them. Updates on stakeholder engagement are provided to the Board Risk and Sustainability Committee three times per year. Stakeholder type How we listen What matters How we respond Frequency of engagement More info Daily, weekly, monthly, quarterly, half-yearly and annually Sustainability Report: People & Culture Regular corporate schedule and teleconferences As and when required Annual Report Corporate Governance Statement ■ Communities of ■ Health and practice safety including mental health and wellbeing ■ Weekly business updates from the Executive Director ■ Feeling engaged and a sense of belonging, and being enabled to do their job ■ Regular performance feedback ■ Communication ■ Promote Evolution’s values ■ Ongoing safety, health and wellbeing initiatives ■ Career & ■ Weekly staff development opportunities meeting with the Leadership Team ■ Fostering a values-led organisational culture that optimises performance ■ Site prestart meetings ■ Site townhalls and updates ■ General Manager updates ■ Mine life ■ Consistent financial returns ■ Management ■ Investor briefings of financial and non-financial risks ■ Full-year and half-year results briefings ■ High-quality corporate governance ■ Annual General Meeting ■ ASX ■ Sustainability announcements and Climate change risk management ■ Health and safety performance ■ Cultural Heritage management ■ Commitment to global best- practice ESG reporting frameworks ■ Targeted specific meetings ■ Local ■ Regular employment and contracting opportunities community consultations and communication Employees and contractors ■ Regular feedback sessions, performance reviews and personal development plans ■ Regular employee surveys (Teamgage) ■ Group and site townhalls and team meetings Investors and analysts ■ Regular meetings with investor representatives and financiers First Nation Partners and Indigenous Peoples ■ Regular community and Cultural Heritage meetings ■ Stakeholder perception surveys ■ Community grievance mechanism ■ Community events and information sessions ■ Economic benefits ■ Cultural Heritage management ■ Cost of living and potential impacts on local services ■ Cultural safety Regular schedule of meetings As and when required Sustainability Report: Community ■ Targeted community investment programs, Shared Value Projects etc. ■ Deliver on Cultural Heritage and Native Title agreements ■ Regular participation at cultural events Elliot Heads development area ■ Local social media channels ■ Mine life 122 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 123 Governance Governance Stakeholder type How we listen What matters How we respond Frequency of engagement More info Government and regulators ■ Ongoing dialogue with regulators, government agencies and broad range of political stakeholders ■ Economic benefits ■ Environmental, Cultural Heritage, social and financial performance ■ Climate change and greenhouse gas emissions ■ Regulatory compliance ■ Transparency ■ Cultural Heritage ■ Regular engagement with all levels of government ■ Direct submissions to state and federal governments’ consultation processes ■ Contribute to industry and business associations Regular schedule of meetings Sustainability Report: Environment As and when required Sustainability Report: Community Non-government organisations ■ Input into social and environmental impact assessments ■ Regular participation in industry forums and associations ■ Climate change and greenhouse gas emissions ■ Cultural Heritage ■ Environmental impacts ■ Transparency ■ Human rights ■ Engagement on Shared Value Projects ■ Commitment to international climate initiatives and reporting frameworks ■ Partnerships for environmental research ■ Engaged in the United Nations Global Compact As and when required Sustainability Report: Community Suppliers and contractors ■ Supplier networking events ■ Workshops with local business networks ■ Regular reciprocal supplier performance reviews ■ Embedded supplier relationship management with Tier 1 suppliers ■ Supplier feedback survey ■ Supply opportunities for projects ■ Health and safety ■ Supporting Indigenous and local contractors ■ Technology and innovation ■ Capable and effective employees ■ Collaborate to deliver tangible safety improvements ■ Collaborate to improve Indigenous engagement outcomes ■ Support programs to develop local business capacity and capability As and when required Sustainability Report: Sustainable Procurement CASE STUDY: Cowal-sourced gold used to create the 2022 Melbourne Cup Excitingly, gold from the Cowal operation is being used to create the 2022 Melbourne Cup trophy. This is the fourth time Evolution gold has been used to create the Cup, and the second time for the Cowal operation. In keeping with the country tour of the Cup, the regional community of central western NSW in conjunction with local partners across government, business, and education celebrated the occasion. Regional events included street parades, fashion events, and sporting and educational opportunities for local families and businesses. Truck operator Kacie Quaid with The Lexus Melbourne Cup at Cowal Industry associations Involvement with memberships and industry associations enables us to keep current regarding matters of public policy, emerging sector and Sustainability trends, regulatory updates, stakeholder interests and the sharing of industry best practices. We may not align with every element of an association’s public position, but where there is a benefit in constructive dialogue or advocacy, membership is maintained. In FY22, Evolution was either a member of, or a participant in, the associations listed below: Organisation Board representation Health, environment and community representation New South Wales Minerals Council Queensland Resources Council Chamber of Minerals and Energy of Western Australia Gold Industry Group (Australia) Lake Cowal Foundation (Australia) Ontario Mining Association (Canada) West Wyalong Advocate Yes Yes No Yes Yes No Yes NSW Government Sustainability Advantage N/A United Nations Global Compact Electric Mine Consortium No N/A Yes Yes Yes Yes Yes Yes N/A Yes Yes (Modern Slavery Communities of Practice) Yes Commitments and recognition We participate in external third-party performance benchmarking initiatives and Sustainability related assessments, including environment, social and governance (ESG) ratings agencies. The higher levels of transparency have been recognised through improvements in our ESG scores by key ESG ratings agencies. Evolution’s ESG performance Agency FY22 score FY21 score Performance trend Sustainalytics 29.2 40.4 ISS32,33 MSCI S&P Global Environment: 1 Environment: 6 Social: 2 Social: 8 AA 53 AA 51 Improved Improved Maintained Improved 32 2021 scores 33 Updated October 21, 2021 124 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 125 Governance Governance MSCI Governance & compliance (material topic) A high rating of AA (on a scale of AAA-CCC) was achieved in FY22 in the MSCI Ratings assessment, scoring 5.9 compared to the industry average of 4.7. We were placed among the top five industry leaders for Labor Management, Anticompetitive Practices and Business Ethics & Fraud. S&P Global CSA SAM In November 2021, a score of 53 was achieved, a 4% increase from FY21 (industry average of 34). Evolution is one of only three gold companies on the Dow Jones Sustainability Index - Australia. ISS Achieved a significant improvement in ISS score across the ‘Social’ category (from ‘8’ to ‘2’) and ‘Environment’ category (from ‘6’ to ‘1’) (scale from 10-1 with “1” being the highest possible rating). Sustainalytics Improved ESG Risk Rating from ’40.2’ in FY21 to ’29.2’ in FY22 (on a scale of 0-40+ with ‘0’ being ‘negligible risk’ (best) and ‘40+’ being ‘severe risk’ (worst). This is a marked improvement from FY21 and also from FY20 (when the score was 45). We are ranked 24 out of 123 companies in the precious metals industry and 19 out of 96 in the gold subindustry. United Nations Global Compact We were proud to become a signatory of the UNGC in FY21, joining the global business community in a commitment to sustainable business practices, aligning our strategies with the UNGC’s Ten Principles on human rights, labour, the environment and anti-corruption, the United Nations SDGs and related 2030 SDG targets. The Sustainability Principles align with the UNGC Principles and SDGs. 34 35 Approach We are committed to ensuring that our obligations and responsibilities to its various stakeholders are supported through its corporate governance practices. We believe that adopting and operating in accordance with high standards of corporate governance enhances our sustainable long-term performance and value creation for all stakeholders. Our 2022 Corporate Governance Statement reports against the ASX Corporate Governance Council’s Fourth Edition Corporate Governance Principles and Recommendations. Throughout the reporting period that ended 30 June 2022, the Directors believe that our governance arrangements align with the fourth edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations. As per Recommendation 7.4, the Sustainability Report provides detailed information on the management of Evolution’s material environmental and social risks, with a specific focus on climate risks, in alignment with the TCFD. Board of Directors Ultimate responsibility and accountability for our Sustainability strategy, priorities and performance is with the Board of Directors. The Board is also the body that formally reviews and approves our Sustainability Report. The Board is supported by the following committees: ■ Audit Committee ■ Risk and Sustainability Committee ■ Nomination and Remuneration Committee The Risk and Sustainability Committee oversees the development and implementation of our Sustainability goals, policies and standards on matters of workplace health and safety; environmental, social governance and risk, human rights and workforce engagement. The Committee advises the Board on matters including good industry practice, Sustainability performance, compliance and licence to operate risk. The Committee formally reviews and approves the Report and ensures that all material topics are covered. The Executive Chair has ultimate accountability/responsibility for Evolution’s Sustainability performance (covering emissions, water, health and safety, community and risk). June 2022, the Evolution Board has eight members, six are independent, non-executive directors (67% male and 33% female) and two are executive members (100% male). The Board is structured to ensure that the Directors’ skills and experience align with our goals and strategic direction. The functions and responsibilities for the Board and each committee is set out in the respective charters. Information on Board members and charters are available on the website. Governance framework STAKEHOLDERS BOARD OF DIRECTORS EXECUTIVE CHAIR BOARD SUB COMMITTEES NOMINATION AND REMUNERATION AUDIT RISK AND SUSTAINABILITY DELEGATION OF AUTHORITY LEADERSHIP TEAM TSF COMMITTEE SENIOR MANAGEMENT INVESTMENT MANAGEMENT COMMITTEE CORPORATE CULTURE, VALUES AND BEHAVIOUR PERFORMANCE STANDARDS, POLICIES AND PROCEDURES INTEGRATED RISK MANAGEMENT The material changes to policies in FY22 were the consolidation of the Sustainability Policy and Strategic Planning Policy into a single document36, publication of the second Modern Slavery Statement37 , Procurement Statement 38, publication of Cultural Recognition Statement and updated Supplier Code of Conduct39. Policies are available to view in the Corporate Governance section of the website. The following policies were reviewed in the last financial year: ■ Anti-Bribery and Corruption Policy ■ Continuous Disclosure Policy ■ Inclusion and Diversity Policy ■ External Communications Policy ■ Shareholder Communication Policy Australasian Reporting Awards Board diversity Evolution has been recognised by Australia’s leading reporting awards, winning SILVER for our FY21 Annual Report and BRONZE for the Report at this year’s Australasian Reporting Awards. We recognise the benefits that diversity provides to our Board of Directors. A diverse mix of skills, expertise, experience, perspectives, age, and characteristics leads to diversity of thought and a more robust understanding of opportunities, issues, and risks, thereby creating the opportunity for improved decision outcomes. As of 30 ■ Sustainability and Strategic Planning Policy (includes Safety, Health and Wellbeing, Environment, Tailings Storage Facility (TSF), Social Responsibility and Cultural Heritage, Planning and Performance Reporting) ■ Cultural Recognition Position Statement (internal document) Linking remuneration to Sustainability To reflect our commitment to Sustainability, 30% of the annual short-term incentive plan (STIP) is linked to the achievement of specific Sustainability targets each year. An additional element was included within the overall strategic objectives component in FY22 focused on progress against the Net Zero commitment. More information on the Group’s remuneration policy can be found in the FY22 Annual Report. 34 Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers 35 The use by Evolution Mining of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Evolution Mining by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI 36 Sustainability and Strategic Planning Policy 37 Modern Slavery Statement 38 Procurement Statement 39 Supplier Code of Conduct 126 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 127 Governance Governance Many communities were affected by the drought, forest fires and flooding experienced in Australia and Canada in FY22. We contributed over $600,000 in donations to forest fire and drought relief and offered in-kind flood relief through our volunteers and Community Investment program. CASE STUDY: Flood Relief following Wyangala spill In early November 2021, heavy rains and riverine flooding threatened to cause damage across the region of the Cowal operation. On November 11, the Wyangala Dam in the Lachlan Valley was on watch as significant rainfall had refilled the reservoir and threatened to exceed storage capacity. The next day, the dam was spilling over with Forbes and Condobolin expecting the Lachlan River to continue to rise in the coming days. There were concerns that rain inflows were expected to increase to a peak of 65-70 gigalitres, endangering the community. To protect properties and community members most in danger from the rising dam and Lachlan River, Evolution volunteers across the Cowal operations, including from Sustainability, Commercial, and Finance supported emergency services by filling sandbags. Extreme weather and health events Each operation is located in geographically unique parts of Australia and Canada and often adjacent to landholders and regional communities. In a crisis, our people are often first responders and make themselves available to assist neighbours, community and neighbouring mines. Through a TCFD alignment review conducted in FY20, extreme weather was identified as one of four material climate-related risks. Short-, medium- and long-term risks were then identified including cyclones, flood, long-term drought, bush and forest fires, late snow cover, food and water borne illness and broader health events. Operations prepare thorough mitigation actions including: ■ Providing for cyclone ■ Rain and wind proof infrastructure and shelter ■ Certified water storage and drainage network ■ Secured buildings and infrastructure ■ Telemetry weather detection systems including lightning ■ Emergency response equipment including fire tenders and ambulance and personnel, training, scenario and competition Operations’ response plans are formally recorded in Trigger Action Response Plans (TARPS), Emergency Response Plans and Business Continuity Plans. Robust and proactive strategic planning remain integral to ensuring business continuity and the health and safety of the communities. Regulatory compliance Regulatory compliance is essential to supporting our licence to operate. We comply with relevant laws, regulations, and authorisations as required during the various stages of project development and operations. We implement a suite of detailed management plans and maintain a register of approvals, permits, and obligations to assist in managing our responsibilities. We engage with a range of specialist consultants and subject experts (including legal due diligence) to advise on managing compliance matters. We routinely conduct targeted audits of compliance against applicable regulatory standards and report the outcomes to the Audit and Risk and Sustainability Committees. During FY22, there were no instances of non-compliance with regulatory authorities leading to any fines or enforcement actions. Crisis response (including pandemic) (material topic) There is an established risk-based Crisis Management and Business Continuity approach to identify incidents that have the potential to significantly disrupt the operation and the relevant controls to mitigate the risk likelihood and consequence. The measures outlined incorporate the organisational responsibilities, the available internal and external resources, the communication, escalation and training requirements, supported by clear processes, guidelines and procedures to effectively manage the crisis. In FY22, the execution of crisis management was ongoing given the nature of COVID-19, flood, fire and water events. This allowed for experience to be gained through real exercises involving both operational and corporate teams. CASE STUDY: Boost to emergency services Last year, we supported a capability uplift to local emergency services of the Balmertown fire department through the provision of a fit for purpose Fire Truck and financial support to local businesses and the Municipality of Red Lake. The truck arrived in May 2022, bringing relief and assurance to the local emergency services and the Evolution Red Lake team. We contributed more than $545,000, and also provided volunteers in 2021/2022 in response to forest fires, flooding and threats to production in the Balmertown and surrounding area. Assurance and audit An assurance plan is endorsed annually by the Leadership Team and is submitted to the Risk and Sustainability Committee for ratification. Outcomes of the FY22 assurance plan were audited by a third party. There were areas for improvement identified across the Sustainability portfolio that included health and safety, environment, social responsibility and Cultural Heritage. As part of the process, all sites were required to submit remedial action plans for approval and ongoing tracking and reporting. A leading indicator on ensuring all material and critical actions has also been integrated into our scorecard and is linked to the remuneration strategy. This reinforces the importance of tracking, reporting and the closure of findings that may arise from audit, incident review or internal/external incidents. In FY22 there were no overdue critical or material actions. Risk mitigation and management The successful delivery of our strategic objectives depends on the effective identification, understanding and mitigation of risks together with any associated opportunities. We have an established risk management framework and wider system of internal controls which inform decision making in support of creating shared value in a sustainable way. A risk-based decision approach is supported by the Sustainability and Strategic Planning Policy and associated Standards, along with the Integrated Risk Management Framework. Group and site systems and procedures are developed to align with these key systems and the principles of the international standards and ICMM guidance. In FY22 the Risk Management Framework underwent review with updates currently being developed to further drive consistency of assessment across the business, and increased focus on the Group strategic risks. Our Risk Management Framework is based on ISO 31000 and includes risk identification, analysis, monitoring and reporting. The approach and related processes consider a broad spectrum of stakeholders and potential internal and external risk exposures and are used to identify and leverage potential up-side, risk-related opportunities. At the site and corporate levels, we conduct risk assessments to evaluate operational, health and safety, environmental, social, business, finance, and reputational risks and opportunities, among others. Scheduled reviews are conducted by functional risk owners, site-based risk champions, and senior leaders at the enterprise, functional and site levels. The Risk and Sustainability Committee is responsible for overseeing enterprise-level effectiveness of our risk management program, and for knowing and understanding the details of the material risks of the business. As part of its oversight responsibility, the Board ensures that a proper balance between risks incurred and potential return to shareholders is maintained, that risk management programs are in place and effective (including internal control frameworks and insurance and loss prevention efforts) and ensures implementation of policies and standards for monitoring and managing risks. A list of material enterprise risks is prepared for review by the Board Risk and Sustainability Committee three times per year, with follow-on reporting and discussion with the Board. Evolution and Balmertown fire department welcome new fire truck Cowal volunteers filling sandbags for Wyangala Dam 128 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 129 Governance Governance COVID-19 pandemic response The health, safety and wellbeing of our employees, contractors and the communities where we operate is essential to how we do business. Our response to COVID-19 was managed in a structured way that included reference to the changing recommendations of health authorities, and local and national regulatory requirements. The impacts to people and operations were felt throughout the year, with short-term restrictions on workforce participation due to isolation demands or positive cases, particularly when the pandemic was at its peak. Operations continued to safely operate during this time. Extensive measures to prevent the spread of COVID-19 were implemented and continue to provide support to all employees and local communities. Efforts are structured around five key pillars: 1. Prevention Extensive preventive measures were implemented across all operations to safeguard the health of our employees, contractors and community. These included the promotion of vaccinations, the wearing of masks, supporting physical distancing and good hygiene practices, implementing remote work wherever feasible, enhanced cleaning and disinfecting protocols, promoting personal preventive measures, and screening all employees, contractors and external visitors for risk factors and symptoms. 2. Worker support Sick leave benefits were expanded to ensure anyone that was required to self-isolate remained eligible for sick leave benefits, and flexible working arrangements were reviewed. New and expanded employee services such as Employee Assistance Program (EAP) programs were extended that included additional support services and crisis counselling, as well as other on demand and virtual medical and mental healthcare services. Specialist medical advice and care was also provided as required that included the promotion and support of vaccination clinics. 3. Communities and public health Support for Community groups and employees remains and is expected to continue through FY23. Evolution has additionally provided donations to the local communities impacted by the pandemic. Since the start of the pandemic, over $2.5 million has been donated to provide direct and indirect support to the communities. We We supported critical social initiatives in areas where we operate. This included operating vaccination clinics, providing masks and rapid antigen test kits and other community support efforts. 4. Business continuity Despite the challenges, all Evolution operations continued to safely operate, with COVID-19 measures in place. These measures followed best practices and guidance from health and government authorities. All Evolution activities continue to be underpinned by a continued focus on leadership. A COVID-19 Crisis Management Team (CMT) was established, chaired by the Vice President Sustainability. The` CMT continues today, with regular updates to the Leadership Team and the Board. Formalised COVID-19 management teams at site remain in place. We continue to identify and implement measures and the formally established Crisis Management Team. This is led by members of the Leadership Team that remains as a formal response mechanism. 5. Communications To mitigate the mental and physical health impacts that lockdowns and periods of isolation may cause, communication lines were strengthened across the business as well as with the Employee Assistance Program (EAP). Sites also deployed technologies to enable risk mitigation and contact tracing, such as contact tracing cards at Cowal and QR codes in the Sydney Office. The site access protocols were also strengthened at each site. Ongoing communication around COVID-19 management to ensure a continual feedback loop has been delivered where information, questions and feedback is provided. This ensured ongoing connection and feedback loop with the workforce and community. A small example of keeping people healthy, maintaining safe and reliable operations and supporting the communities was the support given by the Ernest Henry team to community education facilities when COVID-19 mandates changed. The team donated personal protection equipment, valued at $3,500, including 8,000 single-use masks to the Cloncurry State School P-12, St Joseph’s Catholic School, C&K Cloncurry Kindergarten, and the Curry Kids Early Learning Centre Cloncurry State School Principal and students presented with face masks by EHO Sustainability Manager, Adam Fewster Whistleblower Policy A framework has been established for individuals to raise concerns that relate to unacceptable conduct. Details of this framework including the defined elements of independent reporting and investigation procedures, disclosure protection, along with the associated corporate governance, are included in the Whistleblower Policy41 and Standard42. The process is managed by an external third party in conjunction with the People and Culture department. Whistleblowing events and any actions are reported to the Audit Committee and the Risk and Sustainability Committee. There were four Whistleblower cases reported in FY22 via the FairCall (KPMG) service in Australia and Canada. Each case was investigated, addressed and reported through to the Board. Political parties and public organisations We do not undertake any political activity or sponsor any political parties, movements or public non-governmental organisations, nor does it make any contributions to support any such parties, movements or organisations. In FY22, no donations or payments were made to political organisations. Transparency and disclosure We are committed to open and transparent dealings with all the stakeholders. Information is published on our operational, financial and Sustainability performance in a timely manner through several communication channels, including media releases, stock exchange announcements, social media, newsletters and community and investor meetings. We respond to stakeholder enquiries and requests for information as required. Tax Transparency Code We are committed to open and transparent dealings with all our stakeholders. Payment of tax is an important element of our contribution to the economic development of Australia and Canada. At a minimum, we comply with the Australian Government’s Voluntary Tax Transparency Code. Payments to government, including taxes and royalties, is provided separately in the 2021 Tax Governance Statement available at the website43 and FY22 ESG Performance Data document (economic performance section). Evolution has a publicly available Board approved Tax Governance Policy that complies with the guidance set out by the Australian Taxation Office. Business ethics The Code of Conduct40 sets the standards for our people to act ethically, responsibly and lawfully. It applies to Directors, all employees, contractors and consultants employed to undertake work on behalf of, or for Evolution and its subsidiaries. It guides us in meeting ethical standards and legal requirements, and all Evolution employees complete a training program to understand its requirements. We encourage employees to report known or suspected breaches of the Code and any other policies and directives, and to raise any other serious concerns they may have. Any such report is responded to immediately and investigated accordingly. We have established broad-based communication and training programs to ensure that all individuals working at the operations take cognisance of how they conduct their duties, and we ensure that the Code is included as part of contractual agreements with consultants, advisors and contractors. The Code is regularly reviewed to ensure that it remains on par with industry standards, regulatory amendments and the operating environment. During the reporting period, work also commenced on reviewing the supplier and vendor on-boarding processes to ensure alignment with international and industry best practice standards and frameworks. All new employees in FY22 received Code of Conduct training as part of the onboarding process. Economic performance Our performance is continuously monitored against its stated objectives, opportunity and risk assessments are conducted, and findings are integrated into the financial strategy. Refer to: Evolution’s economic performance is provided in the financial section of FY22 Annual Report Anti-bribery and corruption (material topic) Evolution views any bribery or corruption behaviour as unacceptable. We have an Anti-Bribery and Corruption Policy which extends across all our businesses and activities, and applies to Evolution Directors, officers, employees, labour hire contractors and consultants employed to undertake work on behalf of, or for Evolution and its subsidiaries. Anti-bribery and corruption training is provided to all employees. We expect contractors, suppliers and business partners to comply with the Anti-Bribery and Corruption Policy, which is included in the Supplier Code of Conduct. In addition, we have an anti-bribery and anti-corruption clause in all our supplier contracts and undertake vendor due diligence as part of the supplier onboarding and contract renewal process. All reported incidents of non-compliance or potential non- compliance are taken seriously, reviewed, and investigated. In FY22, there were no reported incidents of corruption. 40 Employee Code of Conduct 41 Whistleblower Policy 42 Whistleblower Standard 43 Tax Governance Statement 130 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 131 Governance Governance In FY22 we: ■ Conducted cyber security risk assessments against ■ Engaged a managed cyber threat and response our information technology and operating technology environments ■ Implemented a dedicated operational technology (OT) cyber governance framework to operate alongside the existing IT cyber governance framework ■ Performed cyber security penetration testing and remediation activities ■ Updated the IT/OT cyber security program based on the cyber risk assessment findings ■ Conducted cyber supply chain risk assessments ■ Commenced an audit program for OT controls assessments ■ Conducted desktop incident response simulations and updated the response plans provider ■ Reviewed and updated cyber security policies Management and the Board have identified cyber security as a critical risk and receive regular reports on cyber security preparedness. Cyber security is a standing agenda item on the Board Risk and Sustainability Committee agenda with reporting occurring at each Committee meeting which includes detail on management’s efforts and initiatives to monitor and prevent cyber incursions. Significant investment in a comprehensive end-to-end IT system is driven by a recognition that Evolution needs to continually invest in cybersecurity. Cyber security (material topic) Like many businesses and organisations, we face constant and evolving cyber threats. The operating and control systems at the sites increasingly use digital platforms and technology-based solutions. As such, the security of these systems is crucial for operating our operations safely and efficiently, making cyber security one of our material business risks. We remain vigilant regarding any cyber risks, and the workforce receives regular awareness training and communications on what they should do to manage potential threats. Evolution’s cyber security framework Business objectives & risks Cyber Threats Unauthorised loss of data Unauthorised change of data Cyber risk culture and behaviour Cyber risk management, metrics & reporting Secure Vigilant Resilient Governance Identity Lifecycle Management Role Based Access Control Secure SDLC User Access Control Penetration Testing Incident & Crisis Readiness Privileged User Access Control Post Development Application Protection Cyber Threat Intelligence Incident Response Brand Protection Business Continuity Management and Disaster Recovery Asset Management System Security Security Event Monitoring Malware Protection Network Security Patch Management End User Device Security Human Resources Security Vulnerability Management Physical Security Data Loss Prevention Cyber Analytics Encryption Information Lifecycle Management (incl Backups) Security Platform Administration – Daily, Weekly, Monthly, Quarterly Data Privacy Information Classification Cloud Security Third Party Risk Management A risk-based approach is applied to manage cyber-related security risks applying good practice across standard processes. Evolution leverages leading frameworks such as National Institute of Standards and Technology (NIST) and guidance from Australian Government’s Cyber Security Centre. There are a range of measures implemented to manage cyber risk including: ■ A cybersecurity policy applicable to all employees ■ A cybersecurity strategy program as part of Evolution’s overall information technology (IT) strategy ■ Clear responsibilities with a centralised IT function and dedicated capability ■ Cyber awareness training (95% compliance) supported by ongoing awareness alerts and education ■ Defined Disaster Recovery scenarios with Disaster Recovery testing on six-monthly cycles ■ Governance reporting and regular assurance including external audits, Incident Response exercises, penetration testing, and assessment against standards and leading guidance ■ Regular cyber security risk assessments to ensure new technology is appraised for security risks before implementation ■ Encryption of laptops and mobile devices to ensure that information is inaccessible when these devices are lost or stolen 132 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 133 Governance Governance Glossary Glossary “AA” rating $ ALO AMD B BBP BEV CMT CN Rating credibility used in the MSCI review. The lowest rating of “CCC” to the highest rating of “AAA” All amounts are expressed in Australian dollars unless stated otherwise Act Like an Owner. An internal ongoing recognition program that rewards our employees for their supportive behaviour and good ideas Acid mine drainage. When sulphide minerals (predominantly pyrite) are exposed to air, which allows them to oxidise and break down Billion. The number equivalent to the product of a thousand and a million Balanced Business Plan. Battery electrical vehicles. Fully-electric, meaning they are solely powered by electricity and do not have a petrol, diesel or LPG engine, fuel tank or exhaust pipe. Crisis management team. The CMT provides support through management of crisis level issues Cyanide. A chemical compound used in the extraction of gold and silver CO2-e Carbon dioxide equivalent. A standard unit for measuring carbon footprints COVID-19 CSA CSIRO Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) is the strain of Novel coronavirus that causes coronavirus disease 2019. A mild to severe respiratory illness that is caused by a coronavirus and is transmitted chiefly by contact with infectious material (such as respiratory droplets) or with objects or surfaces contaminated by the causative virus Corporate Sustainability Assessment. A scoring methodology that companies and investors can review on a company’s ESG Commonwealth Scientific and Industrial Research Organisation. An Australian government agency responsible for scientific research Dewatering The act of taking water from an operating mine DJSI EAP ERT ESG ESS FSB FNP Dow Jones Sustainability Indices. These are a family of indices evaluating the Sustainability performance of thousands of companies globally Employee assistance program. Program available to employees and their families to use to assist with their health and wellbeing Emergency Response Team. Teams built at each operation to support both our operations and assist communities through significant incidents or threatening situations Environmental, Social and Governance. The three key factors when evaluating the Sustainability and ethical impact of an investment in a company or country Employee Share Scheme. A scheme introduced by Evolution 6 years ago which supports the issuing of shares to our full and part-time employees to ensure they share in Evolution’s success Financial Stability Board. An international body that monitors and makes recommendations about the global financial system. First Nation Partners. FY20 / FY21 FY meaning financial year. FY21 would then be the period from July 2020 to end of June 2021 GHG GRI ICMM ISS ESG IWL JT kL LOD LOM M ML MSA Greenhouse Gas. Compound gases that trap heat or longwave radiation in the atmosphere Global Reporting Initiative. Independent, international organisation that provides the world’s most widely used standards for Sustainability reporting International Council on Mining and Metals. An international organisation whose purpose bringing together a safe, fair and sustainable mining and metals industry Institutional Shareholder Services (ISS). ISS ESG is a business that provides corporate and company ESG research and ratings Integrated waste landform. A simple definition is a tailings storage facility that is located inside waste rock storage Johnathan Thurston. He is an Australian former professional rugby league footballer who has established an academy to provide employment initiatives and training Kilolitre. Measurement equivalent to 1,000 litres Line of Defence Life of Mine Million. Number equivalent to the product of a thousand and a thousand Megalitre. Equal to one million litres Modern Slavery Act. The Commonwealth Modern Slavery Act 2018 (the Act) established Australia’s national Modern Slavery Reporting Requirement (reporting requirement). The reporting requirement entered into force on 1 January 2019. The reporting requirement aims to support the Australian business community to identify and address their modern slavery risks and maintain responsible and transparent supply chains 134 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 135 Governance Glossary MSCI NGER NIST NIER NGOs NMD NPI PAF PPE Morgan Stanley Capital International. It is an investment research firm National Greenhouse and Energy Reporting. A national framework for reporting and disseminating company information and greenhouse gas emissions, energy production and energy consumption National Institute of Standards and Technology. Founded in 1901, NIST is one of United States’ oldest physical science laboratories; they released a cybersecurity framework that integrates industry standards and best practices to help organizations manage their cybersecurity risks. Northern Industrial Electricity Rate Program. Assists Northern Ontario’s largest industrial electricity consumers to reduce energy costs, sustain jobs and maintain global competitiveness. Non-governmental organisation. A non-profit, citizen-based group that functions independently of government Neutral mine drainage. In some instances, the acidity produced by sulphide oxidation can be neutralised in the presence of carbonate minerals National Pollutant Inventory. The NPI provides the community, industry and government with free information about substance emissions in Australia Potentially Acid Forming. Classification of a rock when tested if it has the potential to generate acid as a result of a metal mining activity Personal protective equipment. Anything used or worn on our employees to minimise risk to their health and safety S&P Global Company that provides data, research, news and analytics to customers including institutional investors and corporations SAM Scope 1 Scope 2 SD STIP t SA TARP TCFD TRIF TSF UN SDGs WORK 180 Title for the Corporate Sustainability Assessment. SAM refers to historic naming when the CSA was hosted by RobecoSAM AG. It is now transferred to S&P Global Switzerland SA and known as the SAM Corporate Sustainability Assessment Category of greenhouse gas emissions. Scope 1 is sometimes referred to as direct emissions and refers to emissions released to the atmosphere as a direct result of an activity Category of greenhouse gas emissions. Scope 2 refers to emissions released to the atmosphere from the indirect consumption of an energy commodity Saline drainage. This is saline and metal-rich drainage that has been produced by the oxidation of metal sulphides that do not generate net acidity Short term incentive plan tonnes Sustainability Advantage. NSW Government program encouraging and accelerating the sustainability of medium to large businesses Trigger Action Response Plan. Consists of a set of documented and known work place hazards that need to be continuously checked for Task Force on Climate-related Financial Disclosures. An organisation that was established in December 2015 with the goal of developing a set of voluntary climate-related financial risk disclosures which may be adopted by companies Total Recordable Injury Frequency. Usually forms part of the acronym TRIFR and refers to the number of fatalities, lost time injuries, alternate work, and other injuries requiring medical treatment per million hours worked Tailings storage facility. A facility designed to safely store left over mined minerals United Nations Sustainable Development Goals. These are global goals adopted by all United Nations Member States as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030 A recruitment site showing Australian employers who support women in the workplace. Criteria include flexible work, pay equity and parental leave Chief Financial Officer’s review Chief Financial Officer’s review Total gold sold of 641,413 ounces included deliveries into the Australian gold hedge book of 100,000 ounces at an average price of $1,916 per ounce (FY21: 100,000 ounces, $1,829/oz) and into the Canadian hedge book of 40,000 ounces at an average price of C$2,270 per ounce. The remaining 501,413 ounces were sold at spot comprising 435,336 ounces delivered at an average price of $2,522/oz (30 June 2021: 456,001oz, $2,474/oz) and 66,077, ounces delivered at an average price of C$2,357/ oz (30 June 2021: 81,169 ounces, $2,361/oz). At 30 June 2022 the Group’s gold delivery commitments totalled 100,000 ounces at a price of $1,916/oz for the Australian operations and 40,000 ounces at C$2,272/oz for Red Lake with quarterly deliveries through to June 2023. Copper revenue was a record with a 107% increase from the prior year to $491.4 million (30 June 2021: $236.9 million), driven by an 81.8% increase in production to 38,834 tonnes and a 12.3% increase in copper price of $12,546/t. The uplift in copper production was attributable to the acquisition of full ownership of Ernest Henry on 6 January 2022 (effective 1 January 2022). Inventory costs expensed were $51.0 million lower driven by the increased value of stockpile inventories predominantly at Cowal and Mungari. Royalties were higher than the prior year primarily driven by higher achieved metal prices offset by lower metal quantities sold. By-product revenue was up 9% due to higher metal prices. Tax expense for FY22 of $94.4 million is $56.5 million lower than FY21 reflecting the lower profit achieved in the year. Operating mine cash flow decreased by 5% totalling $893.3 million (30 June 2021: $937.3 million). Total capital investment was $606.4 million (30 June 2021: $379.8 million) which included $147.0 million of sustaining capital investment (30 June 2021: $105.7 million) and $459.3 million of major capital investment (30 June 2021: $274.1 million). The major capital investment related predominantly to the underground project at Cowal and growth projects at Red Lake. In July 2021, the Group successfully completed a $400 million fully underwritten institutional placement of approximately 104 million new fully paid ordinary Evolution shares to institutional investors at a price of $3.85 per share. The funds raised under the placement were used to fund the acquisition of the Kundana mine and Carbine project, a 51% interest in the East Kundana Joint Venture (EKJV) and a 75% interest in the West Kundana Joint Venture (the Kundana assets) from Northern Star Resources Limited. The Group also successfully raised approximately $68 million under the In the 2022 financial year (FY22), Evolution delivered its second highest statutory net profit on record with commitment of returns to our shareholders maintained with a full year dividend of 6 cents per share declared. Evolution achieved a statutory net profit after tax of $323.3 million for FY22, a 6.4% decrease on the prior record year (30 June 2021: $345.3 million). Underlying profit after tax was $274.7 million (30 June 2021: $354.3 million). Group gold production was 640,275 ounces at an All-in Sustaining Cost (AISC) of $1,259 per ounce (US$914/oz)1 which continues to place Evolution among the lowest cost producers in the world. In FY23, Evolution has guided higher production of 720,000 ounces (+/- 5%) at an AISC of $1,240 per ounce (+/- 5%). Revenue for the FY22 increased by 11% to $2,064.9 million (30 June 2021: $1,864.1 million). The higher achieved gold price of $2,425/oz (30 June 2021: $2,369/oz) was partially offset by a decrease in sold ounces for the year to 641,413oz (30 June 2021: 677,150oz). Revenue comprised of $1,556.1 million from gold, $491.4 million from copper and $17.4 million from silver (30 June 2021: $1,605.0 million from gold, $236.9 million from copper and $22.1 million from silver). 1 Using the average AUD:USD exchange rate of 0.7258 for the 12 months of FY22 136 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 137 Chief Financial Officer’s review Board of Directors Share Purchase Plan at $3.85 per new share in August 2021 with the funds to be used for general corporate purposes. Both capital issues received exceptionally strong support from investors. During the year we repositioned the balance sheet to align our debt structure to our expected cash flows from our long-life suite of assets. Evolution received a maiden investment grade credit rating and successfully priced a US$550 million debt placement in the United States private placement market. The drawdown of the inaugural US Private Placement was completed in November 2021. In August 2022, as part of the regular annual review process, the Group received confirmation the investment grade rating has been reaffirmed. Consistent with Evolution’s strategy to continuously seek to upgrade the quality of its portfolio, in October 2021 the Company entered into a binding agreement with Navarre Minerals Limited to sell the Mt Carlton gold mine in Queensland for a total consideration of up to $90 million. In November 2021, Evolution announced the acquisition of full ownership of the Ernest Henry operation. The Company previously held an economic interest in Ernest Henry which is a large-scale, long-life, copper-gold mine located ~38km north-east of Cloncurry, Queensland. An immediate increase in copper production reduced the Group’s AISC and positions Evolution as one of the lowest cost gold producers in the world. The acquisition was via an agreement with Glencore to acquire 100% of the shares in Ernest Henry Mining Pty Ltd for $1 billion. To complete the acquisition an initial consideration of $800 million was paid to Glencore on 6 January 2022, with the remaining $200 million due and payable on 6 January 2023. The transaction was partly funded from a new US$200 million US Private Placement maturing in FY31, which settled on 15 February 2022. Fully franked dividends of $146.6 million (FY21: $273.4 million) were paid during the year. The Directors declared a final fully franked dividend of 3.0 cents per share, which is the 19th consecutive dividend (30 June 2021: 5.0 cents). This resulted in a full year dividend of 6.0 cents per share being declared for FY22, delivering over $110 million to shareholders for the year. We did not change our dividend policy which is to, whenever possible, pay a dividend based on free cash flow generated during a year. The policy targets a payout ratio of 50% of cash flow. Free cash flow is defined as cash flow before debt and any acquisitions or divestments. In summary, the 2022 financial year was another year of strong financial performance for Evolution. As we look forward to FY23 and beyond, our strong cash position and robust balance sheet will allow us to invest in the growth opportunities within our portfolio which will increase production of high margin ounces which is expected to continue to generate superior returns for our investors. Yours faithfully LAWRIE CONWAY FINANCE DIRECTOR AND CHIEF FINANCIAL OFFICER Financials Statutory Profit after tax Underlying Profit after tax EBITDA EBITDA Margin Operating Mine Cash flow Capital investment Group Cash flow Earnings per share Full Year Dividend (fully franked) Units $M $M $M % $M $M $M cps cps FY22 323.3 274.7 898.8 44% 893.3 606.4 110.5 17.7 6.0 FY21 345.3 354.3 914.2 49% 937.3 379.8 326.3 20.2 12.0 Change (6%) (22%) (2%) (11%) (5%) 60% (66%) (12%) (50%) 1 Cash flow before dividends, debt repayments, equity raises and any acquisitions or divestments Board of Directors The Board has implemented and is committed to the ASX Corporate Governance Council’s Fourth Edition Corporate Governance Principles and Recommendations, and to maintaining a high standard of Corporate Governance which reflects the requirements of the market regulators and the expectations of the Company’s security holders. Jacob (Jake) Klein BCom Hons, ACA Executive Chair Mr Klein founded Evolution in October 2011 following the merger of Conquest Mining Limited and Catalpa Resources Limited and was appointed as Executive Chair. Previously he served as the Executive Chair of Conquest Mining. Prior to that, Mr Klein was President and CEO of Sino Gold Mining Limited, where he was one of the founders and led the development of that company into the largest foreign participant in the Chinese gold industry. Sino Gold was listed on the ASX in 2002 with a market capitalisation of A$100 million and was purchased by Eldorado Gold Corporation in late 2009 for over A$2 billion. It became an ASX/S&P 100 Company, operating two award-winning gold mines and engaging over 2,000 employees and contractors in China. Prior to joining Sino Gold (and its predecessor) in 1995, Mr Klein was employed at Macquarie Bank and PwC. Lawrence (Lawrie) Conway B Bus, CPA, GAICD Finance Director and Chief Financial Officer Mr Conway was appointed Finance Director and Chief Financial Officer of the Group with effect from 1 August 2014 (previously a Non- executive Director). Mr Conway has more than 30 years’ experience in the resources sector across a diverse range of commercial, financial and operational activities. He has held a mix of corporate, operational and commercial roles within Australia, Papua New Guinea and Chile with Newcrest and prior to that with BHP Billiton. He most recently held the position of Executive General Manager - Commercial and West Africa with Newcrest Mining where he was responsible for Newcrest’s group Supply and Logistics, Marketing, Information Technology and Laboratory functions as well as Newcrest’s business in West Africa. Effective 31 August 2022, Lawrie retired from the Board of Aurelia Metals where he served as a Non- executive Director from June 2017. James (Jim) Askew BEng (Mining), MEngSc, FAusIMM, MSME (AIME) Non-executive Director Mr Askew is a mining engineer with more than 40 years’ broad international experience as a Director and Chief Executive Officer for a wide range of Australian and international publicly listed mining, mining finance and other mining related companies. Mr Askew has served on the boards of numerous mining and mining services companies, which currently includes Syrah Resources Limited (Chair since October 2014), a company with operations in Mozambique and in the USA and Endeavour Mining Corporation, a company with operations in Cote d’Ivoire, Senegal and Burkina Faso (Non-executive Director since July 2017). Within the last 3 years Mr Askew has been a Non-executive Director of Oceana Gold. Mr Askew is Chair of the Risk and Sustainability Committee and Member of the Nomination and Remuneration Committee. 138 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 139 Board of Directors Board of Directors Thomas (Tommy) McKeith BSc (Hons), GradDip Eng (Mining),MBA Non-executive Director Mr McKeith is a geologist with over 30 years’ experience in various mine geology, exploration, business development and executive leadership roles. He was formerly Executive Vice President (Growth and International Projects) for Gold Fields Limited, where he was responsible for global exploration and project development. Mr McKeith was also Chief Executive Officer of Troy Resources Limited and has held Non-executive Director roles at Sino Gold Limited, Avoca Resources Limited and is currently the Non-executive Chair of Prodigy Gold NL and Genesis Minerals Limited and Non-Executive Director at Arrow Minerals Limited. Mr McKeith is Chair of the Nomination and Remuneration Committee. Andrea Hall BCom, FCA, M. App Fin, GAICD Jason Attew BSc, MBA Non-executive Director Non-executive Director Ms Hall is a Chartered Accountant with more than 30 years’ experience in the financial services industry in roles involved in internal audit, risk management, corporate and operational governance, external audit, financial management and strategic planning. Prior to retiring from KPMG in 2012, Ms Hall was a Perth-based partner within KPMG’s Risk Consulting Services where she serviced industries including mining, mining services, transport, healthcare, insurance, property and government. Ms Hall is currently a Non-executive Director and Chair of the Audit and Risk Committee at ASX-listed Pioneer Credit Limited. Ms Hall is also a Non-executive Director of ASX listed Perenti Group and Chair of the Audit and Risk Committee. Further, she is a Non-executive Director of Insurance Commission of Western Australia and the AFL Fremantle Football Club. Ms Hall is the Chair of the Audit Committee and Member of the Risk and Sustainability Committee. Mr Attew is a mining industry veteran who has dedicated 25 years to the mining sector. Most recently he was the President and CEO of Gold Standard Ventures Corporation until its acquisition by Orla Mining in August 2022. Previously he served as the Chief Financial Officer at Goldcorp Inc. where, in addition to leading the finance and investor relations operations, he was responsible for Goldcorp’s corporate development and strategy culminating in the US$32 billion merger with Newmont Mining Corp. Mr Attew has extensive capital markets experience from his time in investment banking with the BMO Global Metals and Mining Group where he was at the forefront of structuring and raising significant growth capital as well as advising on both formative and transformational mergers and acquisitions for corporations that have become industry leaders over the past two decades and is also on the board of The Food Stash Foundation, a Vancouver-based non-profit whose mission is to create food & nutritional security for local residents. Mr Attew is the Lead Independent Director (effective 1 December 2021) and a Member of both the Audit Committee and the Nomination and Remuneration Committee. Peter Smith MBA, FAusIMM, GAICD Non-executive Director Mr Smith is a senior executive with over 43 years’ experience primarily in resources sector. He has worked in a range of sectors including gold, coal, metals and fertilizers. Peter has held senior positions with Kestrel Coal Resources, Israel Chemical Limited, Newcrest Mining, Lihir Gold, WMC Resources, Western Metals and Rio Tinto. Mr Smith was a former Non-executive Director of NSW Minerals Council and Evolution Mining, Commissioner of PT NHM Indonesia and Executive Director and Chair of Western Metals Limited. Mr Smith is a Member of the Risk and Sustainability Committee. Victoria (Vicky) Binns BEng (Mining - Hons 1), FAusIMM, GAICD, Grad Dip SIA Non-executive Director Ms Binns has over 35 years’ experience in the global resources and financial services sectors including more than 10 years in executive leadership roles at BHP and 15 years in financial services with Merrill Lynch Australia and Macquarie Equities. During her career at BHP, Ms Binns’ roles included Vice President Minerals Marketing, leadership positions in the metals and coal marketing business, Vice President of Market Analysis and Economics and was a member of the first BHP Global Inclusion and Diversity Council. She was also co-Founder and Chair of Women in Mining and Resources Sg (WIMAR Sg). Prior to joining BHP, Ms Binns held a number of Board and senior management roles at Merrill Lynch Australia including Managing Director and Head of Australian Research, Head of Global Mining, Metals and Steel, and Head of Australian Mining Research. Ms Binns is currently a Non-executive Director of ASX-listed company Cooper Energy, Sims Limited and the Carbon Market Institute, Australia’s leading independent industry association for business leading the transition to net zero emissions. Ms Binns is also a Member of the Advisory Council for JP Morgan in Australia & NZ. Ms Binns is a Member of the Audit Committee. 140 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 141 Annual Financial Report Annual Financial Report Annual Financial Report Content page Appendix 4E Directors’ report Auditor’s independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated balance sheet Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors’ declaration Independent auditor’s report Shareholder information Corporate information 144 145-181 182 183 184 185 186 187-230 231 232-239 240-241 242 142 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 143 Appendix 4E Appendix 4E Evolution Mining Limited Directors' Report 30 June 2022 APPENDIX 4E EVOLUTION MINING LIMITED ACN 084 669 036 AND CONTROLLED ENTITIES ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 Results for Announcement to the Market Key Information 30 June 2022 30 June 2021 Up / (down) % Increase/ $'000 $'000 $'000 (decrease) Revenues from contracts with customers 2,064,928 1,864,058 200,870 Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) 898,814 914,235 (15,421) 11 % (2) % Statutory profit before income tax 417,748 496,172 (78,424) (16) % Profit from ordinary activities after income tax attributable to the members 323,324 345,262 (21,938) (6) % Dividend Information Final dividend for the year ended 30 June 2022 Dividend to be paid on 30 September 2022 Interim dividend for the year ended 30 June 2022 Dividend fully paid on 25 March 2022 Final dividend for the year ended 30 June 2021 Dividend fully paid on 28 September 2021 Net Tangible Assets Net tangible assets per share Earnings Per Share Basic earnings per share Diluted earnings per share Amount per share Cents Franked amount per share Cents 3.0 3.0 3.0 3.0 5.0 5.0 30 June 2022 $ 30 June 2021 $ 1.89 1.51 30 June 2022 Cents 17.74 17.70 30 June 2021 Cents 20.21 20.14 Additional Appendix 4E disclosure requirements can be found in the notes to these financial statements and the Directors' Report attached thereto. This report is based on the consolidated financial statements which have been audited by PricewaterhouseCoopers. Directors’ report Directors’ report Evolution Mining Limited Directors' Report 30 June 2022 Directors' Report The Directors present their report together with the 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 year ended 30 June 2022. Directors The Directors of the Group during the year ended 30 June 2022 and up to the date of this report are set out below. All Directors held their position as a Director throughout the entire year and up to the date of this report unless otherwise stated. Jacob (Jake) Klein Lawrence (Lawrie) Conway Jason Attew (i) Thomas (Tommy) McKeith (ii) James (Jim) Askew Andrea Hall Victoria (Vicky) Binns Peter Smith Executive Chair Finance Director and Chief Financial Officer Lead Independent Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director (i) Appointed as Lead Independent Director effective 1 December 2021 (ii) Ceased to be Lead Independent Director effective 1 December 2021 Company Secretary Evan Elstein Principal activities The principal activities of the Group during the year were exploration, mine development, mine operations and the sale of gold and gold- copper concentrate in Australia and Canada. There were no significant changes to these activities during the year. Key highlights for the year Key highlights for the year ended 30 June 2022 include: Portfolio • The past twelve months has seen Evolution continue to execute against our strategy through the acquisition of Kundana and EKJV to consolidate the Mungari operation; move to 100% ownership of the Ernest Henry operation; and divestment of the Mt Carlton operation. These changes to the portfolio have considerably improved the quality of the portfolio and will deliver superior returns over the long term for our shareholders. • While our operational performance in the past twelve months did not deliver to shareholders or our expectations, pleasingly the operations ended FY22 in a position to deliver more consistently in FY23. We progressed well with our growth projects, in particular the Cowal underground mine development and the new Upper Campbell underground mine at Red Lake and both projects are on schedule and budget. Our studies for organic growth at our operations also advanced, including the mine extension at Ernest Henry; the plant expansion at Mungari; the Pumped Hydro Project at Mt Rawdon; and multiple transformation projects at Red Lake. • The changes to our portfolio, together with the growth projects and studies, provide the solid platform for Evolution over the next few years where production is planned to increase by around 25% and maintain a very low cost position. In FY23, production is planned to increase by 12.5% to around 720,000 ounces, increasing a further 11% to around 800,000 ounces in FY24. All-in Sustaining Cost (AISC) is planned to be maintained at around A$1,240 per ounce in FY23 and FY24. Sustainability • • Sustainability has been at the core of Evolution since inception and is integrated into every aspect of the business. This captures the health, safety, environment, First Nations engagement and broader community relations to ensure we operate in a socially and environmentally responsible way. The Group publicly committed to transition to “Net Zero” greenhouse gas emissions by 2050 (scope 1 and 2) and a 30% reduction in emissions by 2030. In FY22, we achieved a significant reduction in our net use of energy with our emissions per tonne of material mined ~7% lower compared to the FY20 baseline. Nation The Group continues to be recognised for its Sustainability performance, achieving a sector leading rating in Sustainalytics, ISS and MSCI ESG Ratings assessments and being one of three gold companies recognised in the Dow Jones Sustainability Index Australia. 1 144 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 145 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Key highlights for the year (continued) Sustainability (continued) • • The Group demonstrated resilience and strong risk management though the COVID-19 pandemic. Operations were maintained, supported by protocols developed to minimise risks to our people and communities that allowed safe production during this challenging time. Notwithstanding these measures, regulatory isolation requirements resulted in high levels of COVID related absenteeism which adversely impacted the performance during the year. The Group remains committed to an improved health and safety performance with a heavy focus on leading indicators, increased reporting, field leadership, action closure discipline and high-quality safety interactions. Overall health and safety improved across the Group, with delivery on or better than target. The total recordable injury frequency (TRIF) was 10.66 (including 6 months at Ernest Henry) as at 30 June 2022. Financials • • • • • • • • • • The Group achieved a statutory net profit after tax of $323.3 million for the year (30 June 2021: $345.3 million). Basic earnings per share was 17.74 cents per share (30 June 2021: 20.21 cents). Fully franked dividends of $146.6 million (30 June 2021: $273.4 million) were paid during the year. The Directors declared a final fully franked dividend of 3.0 cents per share, which is the 19th consecutive dividend (30 June 2021: 5.0 cents). The aggregate amount of the final dividend to be paid on 30 September 2022 is estimated at $55.0 million. The Group's key results are as follows: ◦ ◦ Total gold production of 640,275oz at an AISC of $1,259/oz. Operating mine and net mine cash flow of $893.3 million and $284.1 million respectively. In July 2021, the Group successfully completed a $400 million fully underwritten institutional placement of approximately 104 million new fully paid ordinary Evolution shares to institutional investors at a price of $3.85 per share. The funds raised under the placement were used to fund the acquisition of the Kundana mine and Carbine project, a 51% interest in the EKJV, and a 75% interest in the West Kundana Joint Venture (the Kundana assets). The Group also successfully raised approximately $68 million under the Share Purchase Plan at $3.85 per new share in August 2021 with the funds to be used for general corporate purposes. Both capital issues received strong support from investors. On 13 August 2021, the Group announced that it had received an investment grade credit rating and successfully priced a US$550 million placement in the United States private placement market. The drawdown of the inaugural US Private Placement was completed in November 2021. On 4 August 2022, as part of the regular annual review process the Group received confirmation the investment grade rating has been reaffirmed. On 18 August 2021 the acquisition of the Kundana assets from Northern Star Resources Limited was completed with effective date being 1 August 2021. Processing of higher grade ore from Kundana commenced in late August and the first ore processing campaign for EKJV (Evolution's interest 51%) was completed as planned in October 2021. On 5 October 2021, consistent with the Group's strategy to continuously seek to upgrade the quality of its portfolio, Evolution entered into a binding agreement with Navarre Minerals Limited to sell the Mt Carlton gold mine in Queensland for a total consideration of up to $90 million. The sale was completed on 14 December 2021 with Navarre's economic interest in Mt Carlton commencing from 1 October 2021. On 17 November 2021, the Group announced the acquisition of full ownership of the Ernest Henry operation. Evolution previously held an economic interest in Ernest Henry which is a large-scale, long-life, copper-gold mine located ~38km north-east of Cloncurry, Queensland. An immediate increase in copper production reduced the Group's All-in Sustaining Costs and positions Evolution as one of the lowest cost gold producers in the world. The acquisition was via an agreement with Glencore to acquire 100% of the shares in Ernest Henry Mining Pty Ltd for $1 billion. To complete the acquisition an initial consideration of $800 million was paid to Glencore on 6 January 2022, with the remaining $200 million due and payable on 6 January 2023. The transaction was partly funded from a new US$200 million US Private Placement maturing in FY31, which settled on 15 February 2022. Operations • Cowal achieved significant milestones during the year with the Board and regulatory approvals to commence construction of the new Underground mine adjacent to the existing E42 open pit. The project has now awarded all material contracts and remains on budget and schedule for critical path items, with first stope ore planned for Q4 FY23. The waste strip of Stage H completed in Q1 FY22 which has enabled the operation to access higher grade ore. Construction of the Integrated Waste Landform continued as planned to provide tailings capacity to support the life of mine. Evolution Mining Limited Directors' Report 30 June 2022 Key highlights for the year (continued) Operations (continued) • • Ernest Henry was successfully integrated into the Evolution portfolio. The significance of acquiring full ownership of the operation from 1 January 2022 is evidenced by the material net mine cash flow generated in FY22 at over $435 million. A new Mineral Resource estimate for Ernest Henry was published on 1 August 2022, with contained copper increasing 28% and contained gold increasing 24%. This new Mineral Resource estimate will inform the Pre-Feasibility study on a mine extension down to the 775mRL that is due for completion in December 2022. At Red Lake the transformation focused on operational improvements to both mining and processing, with performance now at the rates required to deliver FY23 production guidance. Development rates averaged over 1,200 metres per month for the last nine months of FY22 which has enabled the operation to access additional mining fronts and increase mining rates. Construction of the Campbell Young Dickenson (CYD) decline ramped up during FY22 which will enable first stope ore from Upper Campbell to be mined in the September 2022 quarter. The upper limits of the Campbell and Red Lake processing plant throughput rates were tested during FY22 and the result is that they are now consistently processing at an annual equivalent of 1 million tonnes per annum. • Mungari focussed on integrating the Kundana and EKJV operations as “one Mungari” during the year, with both cost and operational benefits realised to date. The increase in mined grade, production and ongoing synergies demonstrate the strategic significance of that acquisition. A Feasibility study on a mill expansion at Mungari is ongoing, and is due for completion by December 2022. An expanded mill has the ability to unlock significant long-term value at the operation through increased processing capacity and lower costs. • The Mt Rawdon Pumped Hydro (MRPH) project has the potential to make a significant contribution towards Queensland's renewable energy ambitions. The Feasibility Study is being completed with our partner, Ironstone Capital Australia, and is due for completion in June 2023. Evolution will retain a 50% share of the MRPH project if the project proceeds. Operating and Financial Review Evolution is a leading, low-cost Australian gold mining company. As at 30 June 2022, the Group consisted of five wholly-owned operating mines: Cowal in New South Wales; Ernest Henry and Mt Rawdon in Queensland; Mungari in Western Australia and Red Lake in Ontario, Canada. The Group completed the acquisition of Kundana and EKJV on 18 August 2021, divested Mt Carlton on 14 December 2021 effective 1 October 2021 and acquired full ownership of Ernest Henry on 6 January 2022 with the effective date being 1 January 2022. Evolution’s vision is for inspired people to create a premier global gold company which will generate superior returns for our shareholders and deliver benefits to all of our stakeholders. The Group strives to build a reputation of sustainability, reliability and transparency. Financial discipline must be core and embedded across the entire business. As a 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 generating superior returns with an average mine life reserve of at least ten years. To maintain this long mine life, the Group require an active pipeline of quality exploration and development projects. The Group places equal importance on our ability to remain agile, recognise value and execute on opportunities to improve the portfolio. The restructure of the portfolio over the past twelve months demonstrates our commitment to our strategy, ensuring margin over ounces is preserved and positions Evolution for the next phase of growth. The Group remains open to all quality gold, silver and gold-copper value accretive investments. 2 3 146 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 147 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Key highlights for the year (continued) Profit Overview (continued) The table below shows the reconciliation between the Statutory and Underlying profit. Statutory profit before income tax Gain on sale of Mt Carlton Gain on remeasurement of existing interest in Ernest Henry Mine Transaction and integration costs (including stamp duty) Underlying profit before income tax Income tax expense Tax benefit on sale of Mt Carlton Tax effect of adjustments Recognition of previously unrecognised tax losses Underlying profit after income tax Cash Flow 30 June 2022 $000 417,748 (9,958) (154,206) 130,117 383,701 (94,424) (4,902) (9,652) — 274,723 30 June 2021 $000 496,172 — — 15,058 511,230 (150,910) — (4,517) (1,461) 354,341 Operating mine cash flow decreased by 5% totalling $893.3 million (30 June 2021: $937.3 million). Total capital investment was $606.4 million (30 June 2021: $379.8 million) which included $147.1 million (30 June 2021: $105.7 million) of sustaining capital investment and $459.3 million (30 June 2021: $274.1 million) of major capital investment. The major capital investment related predominantly to the Underground Project at Cowal and growth projects at Red Lake. Mine cash flow before major capital investment was $746.2 million (30 June 2021: $831.6 million). Evolution Mining Limited Directors' Report 30 June 2022 Key highlights for the year (continued) Profit Overview The Group achieved a statutory net profit after tax of $323.3 million for the year ended 30 June 2022 (30 June 2021: $345.3 million). The underlying net profit after tax was $274.7 million for the year (30 June 2021: $354.3 million). The main drivers to the change in profit year on year has been the acquisition and divestment of assets; higher achieved gold and copper prices offsetting lower production; and higher operating costs at existing assets due to increased activities and slightly higher input costs. The following graph reflects the movements in the Group's profit after tax for the year ended 30 June 2022 compared to the year ended 30 June 2021. The divestment of Mt Carlton resulted in an increase to profit of $23.7 million. Revenue at existing operations increased by $68.4m ($48.1m for gold and $20.3m for by-products), driven primarily by higher achieved metal prices partially offset by lower quantities sold. The full acquisition of Ernest Henry contributed an additional $251.8m in by-product credits generated from an additional 20,288t of copper and 85,067oz of silver. The full acquisition of Ernest Henry and acquisition of Kundana and EKJV lead to the majority of the increase to Operating Costs which contributed $145.7m and $104.1m respectively. Operating Costs at other operations increased by $104.4m. During the year capitalisation of Stage H at Cowal was completed, resulting in lower costs capitalised and now expensed. This equated to $37.9m being expensed, noting that from a cash perspective there was minor change as these costs were being capitalised in FY2021. Red Lake tonnes mined and processed increased by 25% which resulted in mining costs increase by $9.7m whilst processing costs increased $9.4m. In FY2022 Red Lake commenced shipping concentrate causing selling, refining and logistics costs to increase by $6.6m. All sites were adversely affected by recent increases in input costs due to the impact of Covid on supply chains, the Russia-Ukraine conflict, and general inflationary pressures globally driving commodity prices higher. These price increases contributed to approximately 4.9% increase in operating expenses, or $42.8m. Recent market cost pressures have been seen in the following cost categories; fuel, explosives, chemicals and reagents, and steel prices impacting grinding media, liners and parts. Royalties were higher than the prior year, primarily driven by higher gold and copper prices. Inventory costs expensed were $51.0m lower driven by increased stockpile inventories predominantly at Cowal and Mungari. Depreciation and Amortisation increased by $115.1m, largely due to the acquisition of Kundana/EKJV ($46.6m) and 100% Ernest Henry (64.4m). Finance costs increased by $28.1m linked to the debt funding established for acquisitions during the year. Tax expense for the year ended 30 June 2022 was $56.6m lower on the reduced profit for the year, and has been impacted by the tax effect of the acquisitions and divestment during the year. 4 5 148 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 149 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Key highlights for the year (continued) Key Results The consolidated operating and financial results for the current and prior year are summarised below. All dollar figures refer to Australian thousand dollars ($'000) unless otherwise stated. Key Business Metrics 30 June 2022 30 June 2021 % Change (ii) Total underground lateral development (m) Total underground ore mined (kt) Total open pit ore mined (kt) Total open pit waste mined (kt) Processed tonnes (kt) Gold grade processed (g/t) Gold production (oz) Silver production (oz) Copper production (t) Unit cash operating cost ($/oz) (i) All in sustaining cost ($/oz) (i) All in cost ($/oz) (i) Gold price achieved ($/oz) Silver price achieved ($/oz) Copper price achieved ($/t) Total Revenue Cost of sales (excluding D&A and fair value adjustments) Corporate, admin, exploration and other costs (excluding D&A) EBIT (i) EBITDA (i) EBITDA (%) (i) Statutory profit/(loss) after income tax Underlying profit after income tax Operating mine cash flow Sustaining Capital Mine cash flow before major capital Major Capital Net mine cash flow* 38,282 8,482 13,845 25,164 21,388 1.11 640,275 542,972 38,834 864 1,259 2,045 2,425 31 12,546 2,064,928 1,107,971 (35,593) 430,989 898,814 44% 323,324 274,723 893,280 (147,057) 746,223 (459,314) 284,070 25,254 7,874 8,815 31,235 22,116 1.13 680,788 650,268 21,361 879 1,215 1,696 2,369 34 11,172 1,864,058 904,728 (33,797) 546,431 914,235 49% 345,262 354,341 937,298 (105,684) 831,614 (274,141) 554,855 52 % 8 % 57 % (19) % (3) % (2) % (6) % (17) % 82 % 2 % (4) % (21) % 2 % (9) % 12 % 11 % (22) % (5) % (21) % (2) % (10) % (6) % (22) % (5) % (39) % (10) % (68) % (49) % *Net mine cash flow FY22 figure includes restructuring costs of $3.8 million (30 June 2021: $3.6 million). (i) (ii) (iii) EBITDA, EBIT, Unit cash operating cost, All-in Sustaining Cost (AISC), and All-in Cost (AIC) are non-IFRS financial information and are not subject to audit. EBITDA is reconciled to statutory profit in note 1(c) to the financial statements. Percentage change represents positive/(negative) impact on the business Ernest Henry mining and processing statistics are in 100% terms, while costs between 1 July 2021 and 31 December 2021 represent the Group's cost and not solely the cost of Ernest Henry's operation. The Group took full ownership of Ernest Henry on 6 January 2022, with the effective date 1 January 2022. Evolution Mining Limited Directors' Report 30 June 2022 Mining Operations Cowal Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 30 June 2021 247,418 (30,962) 216,456 (229,826) (13,370) 227,105 1,245 2,305 270,689 (12,876) 257,813 (157,546) 100,267 210,847 1,042 1,855 Change (23,271) (18,086) (41,357) (72,280) (113,637) 16,258 (203) (450) Cowal was the highest gold producer in the Group, achieving 227,105oz of gold at an AISC of $1,245/oz. Despite this, Cowal operated in a challenging environment with COVID-19 and significant weather events impacting cash flow. Stage H mining successfully completed the major waste stripping and commenced access to higher grade ore. In FY23 higher grade ore from Stage H combined with first stope ore from the underground will drive the planned increase in production to around 275,000 ounces, with a further increase in FY24 to around 320,000 as underground mine production ramps up. Mine operating cash flow for the year was $247.4 million. Net mine cash flow was $(13.4) million post sustaining capital of $31.0 million and major capital of $229.8 million. Capital investment during the year consisted of major project capital which focused on finalising Stage H stripping, construction of the Integrated Waste Landform (IWL) tailings facility and the execution of the Underground Project. The Underground Project achieved key milestones throughout the year. All remaining government approvals were received, long-lead items were secured, and the primary mining and drilling contract awarded. The underground diamond drilling program is progressing well and ahead of schedule. The project remains on budget and schedule and first stope ore is expected to be mined in Q4 FY23. Ernest Henry Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000) Gold production (oz) Copper production (t) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 30 June 2021 474,165 (28,000) 446,165 (10,750) 435,415 84,145 38,271 (1,680) (1,578) 323,203 (14,221) 308,982 — 308,982 92,397 17,592 (876) (876) Change 150,962 (13,779) 137,183 (10,750) 126,433 (8,252) 20,679 (804) (702) * Ernest Henry mining and processing statistics are in 100% terms, while costs between 1 July 2021 and 31 December 2021 represent the Group's cost and not solely the cost of Ernest Henry's operation. The Group completed the acquisition of full ownership of Ernest Henry on 6 January 2022, with the effective date being 1 January 2022. Evolution took 100% ownership of Ernest Henry on 6 January 2022, with the effective date being 1 January 2022. Gold production was 84,145oz at a record low AISC of negative $(1,680)/oz. The record AISC result for Ernest Henry was primarily driven by 38,271 tonnes of copper sold, favourable copper pricing of $12,545/t and gold production being delivered to plan. Operating mine cash flow for the year was also a record at $474.2 million as was the net mine cash flow of $435.4 million, post sustaining capital of $28.0 million and major capital of 10.8 million. Ore mined was 6.4 million tonnes at an average grade of 0.52g/t gold and 1.04% copper. Underground development was 9,695m. Ore processed was 6.4 million tonnes at an average grade of 0.50g/t gold and 1.01% copper. The Concept Study on the mine extension below the 1,200mRL was completed and the Pre-Feasibility Study (PFS) has commenced, due for completion in December 2022. The study in considering an extension from the 1,200mRL to the 775mRL which has the potential to unlock further value at Ernest Henry. An updated Mineral Resource estimate that will inform the PFS was released on 1 August 2022 with contained copper increasing 28% to 1.13 million tonnes and contained gold increasing 24% to 2.07 million ounces. The ore body remains open at depth with potential for further resource additions with the completion of further drilling. 6 7 150 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 151 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Mining Operations (continued) Red Lake Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000) * Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 30 June 2021 Change 35,207 (45,850) (10,643) (153,380) (167,830) 115,276 2,519 4,108 90,256 (46,773) 43,483 (46,265) (5,628) 126,339 2,044 2,517 (55,049) 923 (54,126) (107,115) (162,202) (11,063) (475) (1,591) * Restructuring costs are included in net mine cash flow (FY22: $3.8 million; FY21: $2.8 million) Red Lake produced 115,276oz of gold at an AISC of $2,519/oz. Mine operating cash flow for the full-year was $35.2 million. Net mine cash flow was negative $(167.8) million after investing $45.9 million in Sustaining capital and $153.4 million in Major capital. The majority of these investments covered new mobile equipment, recapitalisation of mine development in the Lower Red Lake and Lower Campbell mines, and construction of the CYD decline to provide access to Upper Campbell. These investments support the longer term strategy of growing production to over 300,000 ounces per annum from FY27. Ore mined was 841 thousand tonnes at an average grade of 4.54g/t gold for the year. Ore processed was 847 thousand tonnes at 4.67g/t gold. Whilst production performance was below expectation, Red Lake achieved several key milestones throughout the year. Development metres continued to improve and are now consistently above 1,200 metres per month, providing access to additional mining fronts. The Campbell and Red Lake process plants performed exceptionally well, with annual equivalent throughput rates in the June 2022 quarter in excess of 1 million tonnes per annum. Ongoing improvements to mining practices continue to drive reductions in stope dilution that improves mined grades. Ongoing advance in the CYD decline will enable first stope ore to be mined from Upper Campbell in the September 2022 quarter. Mungari Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 30 June 2021 Change 84,847 (30,307) 54,540 (41,762) 12,778 138,035 1,931 2,325 146,197 (20,526) 125,671 (52,480) 73,191 115,829 1,453 1,988 (61,350) (9,781) (71,131) 10,718 (60,413) 22,206 (478) (337) Mungari benefited from the acquisition of Kundana and the EKJV to produce 138,035oz of gold at an average AISC of $1,931/oz. The higher AISC was driven by lower open pit ounces in FY22, as well as lower capitalised stripping, with costs being expensed in FY22. Additionally, the higher ounces from underground had a higher cost base, including a higher proportion of development costs being expensed. The movement between capitalisation of stripping and development to AISC did not increase the cash outflow. Mine operating cash flow was a strong result at $84.8 million and net mine cash flow was $12.8 million for the full year. Capital investment in the year was $72.1 million consisting mainly of underground development drilling, expansion of the Tailings Storage Facility and costs for the plant expansion Pre-Feasibility Study. Underground ore mined was 1.05 million tonnes at 3.53g/t gold. Total underground development was 9,760 metres. Open pit total material mined was 7.34 million tonnes. Open pit ore mined was 1.07 million tonnes at a grade of 1.14g/t gold. The integration of the Kundana assets is progressing to realise operational synergies and create “One Mungari” with standardised systems and processes, and the sharing of equipment and workforce across what were previously three separately run operations. Evolution Mining Limited Directors' Report 30 June 2022 Mining Operations (continued) Mt Rawdon Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000)* Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 30 June 2021 Change 39,798 (8,290) 31,508 (22,621) 8,887 60,004 1,782 2,175 81,253 (9,307) 71,946 (12,713) 58,446 77,005 1,513 1,679 (41,455) 1,017 (40,438) (9,908) (49,559) (17,001) (269) (496) * Restructuring costs are included in net mine cash flow (FY22: $0.0 million; FY21: $0.7 million) Mt Rawdon produced 60,004oz of gold at an AISC of $1,782/oz for the full year. The production result was lower than the prior year with extreme weather events creating operational challenges due to instability in the North Wall during the March quarter. Processing throughput was strong but production was impacted due to processing of low grade stockpiles whilst the wall issues were being managed. Access to higher grade ore was re- established in the June 2022 quarter. Mine operating cash flow of $39.8 million and net mine cash flow of $8.9 million was achieved for the year, post sustaining capital of $8.3 million and major capital of $22.6 million. Capital investment for the year was primarily driven by mine development. The Mt Rawdon Pumped Hydro project Feasibility Study continued during the year and is due for completion in June 2023. The project has the potential to significantly contribute to Queensland’s renewable energy ambitions. Mt Carlton (Divested on 14 December 2021, effective 1 October 2021). Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2022 * 30 June 2021 Change 11,841 (2,683) 9,158 (975) 8,183 15,710 1,823 1,991 25,698 (965) 24,733 (5,136) 19,597 58,371 1,937 2,105 (13,857) (1,718) (15,575) 4,161 (11,414) (42,661) 114 114 * Figures shown for FY22 represent the three months of operation attributable to Evolution. Mt Carlton was divested effective 1 October 2021. Mt Carlton was divested in December 2021, effective 1 October 2021. For the three months under the Group's ownership, Mt Carlton produced a total of 15,710oz at an AISC of $1,823/oz. Mine operating cash flow was $11.8 million. Net mine cash flow was $8.2 million, generated post sustaining capital of $2.7 million and major capital of 1.0 million. 8 9 152 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 153 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Financial Performance Profit or Loss Revenue for the year ended 30 June 2022 increased by 11% to $2,064.9 million (30 June 2021: $1,864.1 million). The higher achieved gold price of $2,425/oz (30 June 2021: $2,369/oz) was partially offset by a decrease in sold ounces for the year to 641,413oz (30 June 2021: 677,150oz). Revenue comprised of $1,556.1 million of gold, $491.4 million of copper and $17.4 million of silver revenue (30 June 2021: $1,605.0 million of gold, $236.9 million of copper and $22.1 million of silver revenue). Total gold sold included deliveries of 100,000 ounces into the Australian hedge book at an average price of $1,868/oz (30 June 2021: 100,000 ounces, $1,829/oz) and deliveries of 40,000 ounces into the Canadian hedge book at an average price of C$2,271/oz. The remaining 501,413 ounces were sold at spot comprising 435,336 ounces delivered at an average price of $2,522/oz (30 June 2021: 456,001oz, $2,474/oz) and 66,077, ounces delivered at an average price of C$2,357/oz (30 June 2021: 81,169 ounces, $2,361/oz). At 30 June 2022 the Group's gold delivery commitments totalled 100,000 ounces at a price of $1,916/oz for the Australian operations and 40,000 ounces at C$2,272/oz for Red Lake with quarterly deliveries through to June 2023. Copper revenue achieved a 107% increase from the prior year to $491.4 million (30 June 2021: $236.9 million), driven by an 85% increase in sales to 39,293 tonnes and a 12.3% increase in copper price of $12,546/t. The uplift in copper production was driven by the acquisition of full ownership of Ernest Henry on 6 January 2022 (effective 1 January 2022). The Group achieved a statutory net profit after tax of $323.3 million for the year ended 30 June 2022 (30 June 2021: $345.3 million). The Group also achieved an underlying net profit after tax of $274.7 million for the year (30 June 2021: $354.3million). Balance Sheet Total assets increased 68% during the year to $6,630.1 million (30 June 2021: $3,957.0 million). Cash and cash equivalents increased by $412.4 million driven by a number of factors including share capital issue, draw-down of US private placements, divestment of Mt Carlton and strong cash generation from Ernest Henry. The excess cash received was mainly used to fund the acquisition of the Kundana and EKJV, the acquisition of the full interest in Ernest Henry and further investment in the Cowal Underground Project and transformation projects at Red Lake. The net carrying amount of property, plant and equipment increased by $672.5 million and mine development and exploration increased by $1,316.4 million, which was primarily driven by the acquisition of the remaining interest in Ernest Henry, acquisition of the Kundana assets and additions at Cowal and Red Lake. The adoption of hedge accounting to account for the cross currency swaps used to manage foreign exchange exposure from the US Private Placements (USPP) has led to the recognition of $113.2 million non-current derivative asset, which is mostly offset by the foreign exchange revaluation of the US Private Placements. Total liabilities for the Group increased to $3,376.1 million at 30 June 2022, an increase of $1,953.9 million, or 137.4% on the prior period. The key drivers consist of $1,162.2 million increase in interest bearing liabilities net of capitalised borrowing costs, $295.9 million increase relating to stamp duty payable and the remaining purchase price payable for Ernest Henry, and $170.2 million increase in rehabilitation provisions resulting from the acquisitions and the updated closure liabilities. Cash Flow Total cash outflows for the year amounted to $416.7 million inflow (30 June 2021: $211.9 million outflow). Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net movement in cash Cash at the beginning of the year Effects of exchange rate changes on cash and cash equivalents Cash at the end of the year 30 June 2022 30 June 2021 $'000 $'000 776,683 (1,828,032) 1,468,070 416,721 160,062 (4,356) 572,427 757,008 (724,115) (244,787) (211,894) 372,592 (636) 160,062 Change $'000 19,675 (1,103,917) 1,712,857 628,615 (212,530) (3,720) 412,365 Net cash outflows from investment activities were $1,828.0 million, an increase of $1,103.9 million from the prior period (30 June 2021: $724.1 million outflow). Major items contributing to the increase in outflow was $390.9 million paid for the acquisition of the Kundana assets, and $809.0 million paid for the acquisition of the remaining interest in Ernest Henry. The current year outflows was partially offset by the cash received from the disposal of Mt Carlton for $30.3 million. Evolution Mining Limited Directors' Report 30 June 2022 Financial Performance (continued) Cash Flow (continued) Net cash inflows from financing activities were $1,468.1 million, an increase of $1,712.9 million from the prior year (30 June 2021: $244.8 million outflow). Financing cash inflows during the year mainly consisted of the share capital issue of $467.9 million, drawdown of $440.0 million from Term Loan Facility (”Facility E”) and drawdown of $1,022.9 million from the US Private Placements. Repayments for the year included $145.0 million on the Revolver Facility (“Facility A”), $105.0 million on the Term Loan Facility (”Facility B”) and $50.0 million on the Term Loan Facility (”Facility E”). Dividends paid during the year totalled $146.6 million. Taxation During the year, the Group made income tax payments of $71.1 million (30 June 2021: $96.7 million) and recognised an income tax expense of $94.4 million (30 June 2021: $150.9 million). The tax payments made in respect of the 30 June 2021 financial year combined with tax instalments paid over the course of the 30 June 2022 financial year have enabled the declaration of fully franked interim and final dividends. Capital Investment Capital investment for the year totalled $606.4 million (30 June 2021: $379.8 million). This consisted of sustaining capital, including near mine exploration and resource definition, of $147.1 million (30 June 2021: $105.7 million) and mine development of $459.3 million (30 June 2021: $274.1 million). The main capital projects included the Underground Project, Integrated Waste Landform (IWL) tailings facility and drilling at Cowal, underground mine development and discovery drilling at Red Lake, tailings storage facility expansion, pre-feasibility study for mill expansion, mine development and underground development drilling at Mungari, and Open pit mine development, tails storage buttressing and fixed plant maintenance at Mt Rawdon. Financing Total finance costs for the year were $49.3 million (30 June 2021: $21.1 million). Included in total finance costs are interest expenses of $43.1 million (30 June 2021: $17.4 million), amortisation of debt establishment costs of $2.9 million (30 June 2021: $2.2 million), discount unwinding on mine rehabilitation liabilities of $2.5 million (30 June 2021: $0.4 million) and interest expense on lease liability unwinding of $0.8 million (30 June 2021: $1.2 million). The increase in interest expense is resulted from the higher interest bearing liabilities assumed in the year used in the acquisition of assets. The repayment periods and the outstanding balances on each debt facility as at 30 June 2022 are set out below: Facility Name Revolving Credit Facility – Facility A - $m Performance Bond – Facility C $m Performance Bond – Facility D CAD $m Term Loan – Facility B - $m Term Loan – Facility E - $m US Private Placement - USD $m US Private Placement - USD $m US Private Placement - USD $m Term Date 31 Mar 2023 30 Nov 2024 30 Nov 2024 15 Jan 2025 15 Apr 2026 8 Nov 2028 14 Feb 2031 8 Nov 2031 Facility Size $m $360.0 $360.0 $125.0 $570.0 $440.0 $200.0 $200.0 $350.0 Amount Drawn $m $0.0 $72.8 $66.9 $570.0 $440.0 $200.0 $200.0 $350.0 Available Amount $m $360.0 $287.2 $58.1 $0.0 $0.0 $0.0 $0.0 $0.0 Material business risks The Group prepares its business plans using estimates of production and financial performance based on a range of assumptions and forecasts. There is uncertainty in these assumptions and forecasts, and risk that variation from them could result in actual performance being different to expected outcomes. The uncertainties arise from a range of factors, including the nature of the mining industry and general economic factors. The material business risks faced by the Group that may have an impact on the operating and financial prospects of the Group as at 30 June 2022 are: COVID-19 The Group continues to actively respond to the ongoing COVID-19 virus currently impacting people and businesses globally. The health and safety of every person working at Evolution, their families and our communities remains paramount during this time. A Group Recovery Plan along with documented site and Group risk assessments are in place and endorsed by the Crisis Management Team, with authority from the Leadership Team. These plans and assessments remain dynamic and are reviewed and updated frequently based on government data and as local situations change. We continue to monitor, assess, and respond to these ongoing changes to risk. In addition, the Group has taken a position to strongly support and encourage all staff to be vaccinated to reduce the risk factors with COVID-19. This has been formalised in a guideline which outlines provisions to enable staff to attend vaccination appointments during work hours as well as to 10 11 154 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 155 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Material business risks (continued) COVID-19 (continued) support those who may encounter side effects following vaccination. Externally facilitated information and awareness sessions have been held and continue to be offered to provide appropriate qualified information to our teams on the risks and benefits of vaccination. The Group continued to operate under protocols developed to minimise risks to our people and communities and ensured we could safely produce during this challenging period. Evolution Mining Limited Directors' Report 30 June 2022 Material business risks (continued) Production and cost estimates The Group prepares estimates of future production, cash costs and capital costs of production for its operations. No assurance can be given that such estimates will be achieved. Failure to achieve production or cost estimates or material increases in costs could have an adverse impact on the Group’s future cash flows, profitability, results of operations and financial condition. The Group’s actual production and costs may vary from estimates for a variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; short-term operating factors relating to the Ore Reserves, such as the need for sequential development of ore bodies and the processing of new or different ore grades; revisions to mine plans; risks and hazards associated with mining; natural phenomena such as inclement weather conditions, water availability and floods; and unexpected labour shortages or strikes. Costs of production may also be affected by a variety of factors including: changing waste-to-ore ratios, ore grade metallurgy, labour costs, cost of commodities, general inflationary pressures and currency exchange rates. To mitigate the mental and physical health impacts that lockdowns and periods of isolation may cause, communication lines have been emphasised across the business as well as the Employee Assistance Program. Environmental, health and safety, and permits Fluctuations in the metal prices and currencies The Group’s revenues are exposed to fluctuations in the gold, silver and copper prices. Volatility in the gold, silver and copper prices creates revenue uncertainty and requires careful management of business performance to ensure that operating cash margins are maintained should the Australian dollar price fall. Currency and commodity markets are linked, resulting in the potential for currency movements to be offset by movements in metal prices and commodity cost inputs. Declining gold, silver and copper prices can also impact operations by requiring a reassessment of the feasibility of a particular exploration or development project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment could cause substantial delays and/or may interrupt operations, which may have a material adverse effect on our results of operations and financial condition. Mineral Resources and Ore Reserves The Group’s Mineral Resources and Ore Reserves are estimates, and no assurance can be given that the estimated reserves and resources are accurate or that the indicated level of gold, silver, copper or any other mineral will be produced. Such estimates are, in large part, based on interpretations of geological data obtained from drill holes and other sampling techniques. Actual mineralisation or geological conditions may be different from those predicted. No assurance can be given that any part or all of the Group’s Mineral Resources constitute or will be converted into Ore Reserves. Market price fluctuations of gold, silver and copper as well as increased production and capital costs may render the Group’s Ore Reserves unprofitable to develop at a particular site or sites for periods of time or may render Ore Reserves containing relatively lower grade mineralisation uneconomic. Estimated reserves may have to be re-estimated based on actual production experience. Any of these factors may require the Group to reduce its Mineral Resources and Ore Reserves, which could have a negative impact on the Group’s financial results. Replacement of Ore Reserves The Group must continually replace Ore Reserves depleted by production to maintain production levels over the long term. Ore Reserves can be replaced by expanding known ore bodies, locating new deposits or making acquisitions. Exploration is highly speculative in nature. The Group’s exploration projects involve many risks and are frequently unsuccessful. Once a site with mineralisation is discovered, it may take several years from the initial phases of drilling until production is possible. As a result, there is no assurance that current or future exploration programs will be successful. There is a risk that depletion of Ore Reserves will not be offset by discoveries or acquisitions or that divestitures of assets will lead to a lower Ore Reserve base. The Mineral Resource base of the Group may decline if Ore Reserves are mined without adequate replacement and the Group may not be able to sustain production beyond the current mine lives, based on current production rates. Mining risks and insurance risks The mining industry is subject to significant risks and hazards, including environmental hazards, industrial accidents, unusual or unexpected geological conditions, unavailability of materials and equipment, pit wall failures, rock bursts, seismic events, cave-ins, and weather conditions (including flooding and bush fires), most of which are beyond the Group’s control. These risks and hazards could result in significant costs or delays that could have a material adverse effect on the Group’s financial performance, liquidity and results of operation. The Group’s mining and processing operations and exploration activities are subject to extensive laws and regulations governing the protection and management of the environment, water management, waste disposal, worker health and safety, mine development and rehabilitation and the protection of endangered and other special status species. The Group’s ability to obtain permits and approvals and to successfully operate may be adversely impacted by real or perceived detrimental events associated with the Group’s activities or those of other mining companies affecting the environment, human health and safety of the surrounding communities. Delays in obtaining or failure to obtain government permits and approvals may adversely affect the Group’s operations, including its ability to continue operations. The Group has implemented extensive health, safety and community initiatives at its sites to manage the health and safety of its employees, contractors and members of the community. While these control measures are in place there is no guarantee that these will eliminate the occurrence of incidents which may result in personal injury or damage to property. In certain instances such occurrences could give rise to regulatory fines and/or civil liability. Climate Change The Group acknowledges that climate change is occurring, and its effects have the potential to impact our business and communities. The most significant climate related risks include the following: reduced water availability; extreme weather or health events; emissions and waste, changes to legislation and regulation; reputational risk; technological and market changes; and shareholder activism. The Group is committed to understanding and proactively managing the impact of climate related risks to our business and our environment. This includes integrating financial, physical, regulatory, reputational, market, and climate related risks, as well as energy considerations, into our Life of Mine strategic planning and decision making. The Group works to build the resilience of our assets, our communities and our environment to climate related impacts. To do this, we work in partnership with a broad range of stakeholders including representative bodies of the communities in which we operate, industry, government, investors and non-governmental organisations to share learnings and identify approaches to addressing climate related risks and opportunities. The Group transparently reports our emissions and energy consumption performance. Each year, annual reports are externally audited and submitted to the Australia’s National Pollutant Inventory (NPI) and the National Greenhouse and Energy Reporting Act 2007 (NGER Act) to estimate greenhouse gas (GHG) emissions and energy use at our Australian operations. We also run the equivalent reporting (National Pollutant Release Inventory) for our Canadian Operations. The Group publishes an annual Sustainability Report in accordance with the Global Reporting Initiative and the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) that details activities in relation to the management of key risks including environmental and climate risks. Community relations The Group has an established community relations function, both at a Group level and at each of its operations. The Group function has developed a community engagement framework, including a set of principles, policies and procedures designed to provide a structured and consistent approach to community activities across our sites whilst recognising that fundamentally. Community relations is about people connecting with people. Maintaining trusted relationships with our local community stakeholders throughout the entire mining cycles is an essential part of securing and maintain our social licence to operate, including with our First Nation People’s communities. The Group recognises that a failure to appropriately manage local community stakeholder expectations may lead to dissatisfaction which has the potential to disrupt production and exploration activities. The Group maintains insurance to cover the most common of these risks and hazards. The insurance is maintained in amounts that are considered reasonable depending on the circumstances surrounding each identified risk. However, property, liability and other insurance may not provide sufficient coverage for losses related to these or other risks or hazards. Risk management The Group manages the risks listed above, and other day-to-day risks through an established management framework which conforms to Australian and international standards and guidance. The Group’s risk reporting and control mechanisms are designed to ensure strategic, operational, legal, financial, 12 13 156 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 157 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Material business risks (continued) Risk management (continued) Evolution Mining Limited Directors' Report 30 June 2022 Material business risks (continued) Environmental regulation and performance (continued) reputational and other risks are identified, assessed and appropriately managed. These are reviewed by the Board Sustainability and Risk Committee, supported by Management review throughout the year. The event was notified to the relevant government authority and the relevant agreed action was taken. There have been no Level IV or Level V events. The event which was reported to the relevant government authority is in relation to a matter which remains under investigation with a mitigation plan now in place. The event is in relation to the Ernest Henry Operation of which Evolution acquired full control in January 2022. There has been no enforcement action undertaken by a relevant government authority in FY22. Level III is classified as events with enforcement instruments, penalty or, potential for environmental impact >3 years. Two active enforcement instruments between FY19 and FY21 have been closed with no further action by the relevant government authority. The financial reporting and control mechanisms are reviewed during the year by management, the internal audit process, the Audit Committee and the external auditors. The Group has policies in place to manage risk in the areas of Health, Safety, Environment, Cultural Heritage and Equal Employment Opportunity. The site Leadership Teams, the Executive Leadership Team, the Sustainability and Risk Committee and the Board regularly review the risk portfolio of the business and the effectiveness of the Group’s management of those risks. Dividends The Company's dividend policy is, whenever possible, to pay a dividend based on group cash flow generated during a year. 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 new policy to pay a final fully franked dividend for the current period of 3.0 cents per share. The aggregate amount of the final dividend to be paid on 30 September 2022 is estimated at $55.0 million. Evolution Mining Limited shares will trade excluding entitlement to the dividend on 30 August 2022, with the record date being 31 August 2022 and payment date of 30 September 2022. 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 Annual Financial Report because the Directors believe it would be likely to result in unreasonable prejudice to the Group. Events occurring after the reporting period Refer to Note 24 of the Consolidated Financial Statements for details of events occurring after the reporting period. Environmental regulation and performance The Executive Chair reports to the Board on all significant safety and environmental incidents. The Board also has a Risk and Sustainability Committee which has oversight of the sustainability performance of the Group and meets at least three times per year. The Directors are not aware of any environmental incidents occurring during the year ended 30 June 2022 which would have a materially adverse impact on the overall business of the Group. The operations of the Group are subject to environmental regulation under the jurisdiction of the countries in which those operations are conducted namely in Australia and as of 1 April, 2020 in Canada. Each mining operation is subject to environmental regulation specific to their environmentally relevant activities as part of their operating licence, permit and/or, approvals. Each of our sites are required to also manage their environmental obligations in accordance with our corporate governance. The environmental laws and regulations that cover each of our sites, combined with our policies and standards, address the potential impact of the Group's activities in relation to water and air quality, noise, land, waste, tailings management, and the potential impact upon sensitive receptors and flora and fauna. The Group has a uniform internal reporting system across all sites. All environmental incidents, including breaches of any regulation or law are assessed according to their actual or potential environmental consequence. Given levels of environmental incidents are tracked based on factors such as spill volume, incident location (onsite or offsite) potential or actual environmental impacts and legal obligation. These levels include: I (insignificant), II (minor), III (moderate), IV (major), V (catastrophic). Across the Group's five mining sites, excluding government reporting for vehicular and non-vehicular native fauna deaths and events reported in previous years which remain under investigation, the Level III reports for the past five years have been: Number of Level III events FY22 1 FY21 4 FY20 4 FY19 8 FY18 9 14 15 158 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 159 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Information on Directors Evolution Mining Limited Directors' Report 30 June 2022 Information on Directors (continued) The following information is current as at the date of this report. Please refer to the Remuneration Report section (g) for details of shareholdings, options and rights. Jason Attew, BSc, MBA, Non-Executive Director Jacob (Jake) Klein, BCom Hons, ACA, Executive Chair Mr Klein founded Evolution in October 2011 following the merger of Conquest Mining Limited and Catalpa Resources Limited and was appointed as Executive Chair. Previously he served as the Executive Chair of Conquest Mining. Prior to that, Mr Klein was President and CEO of Sino Gold Mining Limited, where he was one of the founders and led the development of that company into the largest foreign participant in the Chinese gold industry. Sino Gold was listed on the ASX in 2002 with a market capitalisation of A$100 million and was purchased by Eldorado Gold Corporation in late 2009 for over A$2 billion. It became an ASX/S&P 100 Company, operating two award-winning gold mines and engaging over 2,000 employees and contractors in China. Prior to joining Sino Gold (and its predecessor) in 1995, Mr Klein was employed at Macquarie Bank and PwC. Lawrence (Lawrie) Conway B Bus, CPA, GAICD, Finance Director and Chief Financial Officer Mr Conway was appointed Finance Director and Chief Financial Officer of the Group with effect from 1 August 2014 (previously a Non-Executive Director). Mr Conway has more than 30 years’ experience in the resources sector across a diverse range of commercial, financial and operational activities. He has held a mix of corporate, operational and commercial roles within Australia, Papua New Guinea and Chile with Newcrest and prior to that with BHP Billiton. He most recently held the position of Executive General Manager - Commercial and West Africa with Newcrest Mining where he was responsible for Newcrest's group Supply and Logistics, Marketing, Information Technology and Laboratory functions as well as Newcrest's business in West Africa. Mr Attew is a mining industry veteran who has dedicated 25 years to the mining sector. Most recently he was the President and CEO of Gold Standard Ventures Corporation until its acquisition by Orla Mining in August 2022. Previously he served as the Chief Financial Officer at Goldcorp Inc. where, in addition to leading the finance and investor relations operations, he was responsible for Goldcorp’s corporate development and strategy culminating in the US$32 billion merger with Newmont Mining Corp. Mr Attew has extensive capital markets experience from his time in investment banking with the BMO Global Metals and Mining Group where he was at the forefront of structuring and raising significant growth capital as well as advising on both formative and transformational mergers and acquisitions for corporations that have become industry leaders over the past two decades and is also on the board of The Food Stash Foundation, a Vancouver-based non-profit whose mission is to create food & nutritional security for local residents. Mr Attew is the Lead Independent Director (effective 1 December 2021) and a Member of both the Audit Committee and the Nomination and Remuneration Committee. Peter Smith, MBA, FAusIMM, GAICD, Non- Executive Director Mr Smith is a senior executive with over 43 years’ experience primarily in resources sector. He has worked in a range of sectors including gold, coal, metals and fertilizers. Peter has held senior positions with Kestrel Coal Resources, Israel Chemical Limited, Newcrest Mining, Lihir Gold, WMC Resources, Western Metals and Rio Tinto. Mr Smith was a former Non-Executive Director of NSW Minerals Council and Evolution Mining, Commissioner of PT NHM Indonesia and Executive Director and Chair of Western Metals Limited. Mr Conway is a Non-Executive Director of Aurelia Metals Ltd (appointed in June 2017). Mr Smith is a Member of the Risk and Sustainability Committee. James (Jim) Askew, BEng (Mining), MEngSc, FAusIMM, MSME (AIME), Non-Executive Director Mr Askew is a mining engineer with more than 40 years’ broad international experience as a Director and Chief Executive Officer for a wide range of Australian and international publicly listed mining, mining finance and other mining related companies. Mr Askew has served on the boards of numerous mining and mining services companies, which currently includes Syrah Resources Limited (Chair since October 2014), a company with operations in Mozambique and in the USA and Endeavour Mining Corporation, a company with operations in Cote d’Ivoire, Senegal and Burkina Faso (Non-Executive Director since July 2017). Within the last 3 years Mr Askew has been a Non-Executive Director of Oceana Gold. Mr Askew is Chair of the Risk and Sustainability Committee and Member of the Nomination and Remuneration Committee. Thomas (Tommy) McKeith, BSc (Hons), GradDip Eng (Mining), MBA, Non-Executive Director Mr McKeith is a geologist with over 30 years’ experience in various mine geology, exploration, business development and executive leadership roles. He was formerly Executive Vice President (Growth and International Projects) for Gold Fields Limited, where he was responsible for global exploration and project development. Mr McKeith was also Chief Executive Officer of Troy Resources Limited and has held Non-Executive Director roles at Sino Gold Limited, Avoca Resources Limited and Prodigy Gold NL and is currently the Non-Executive Chairman of Genesis Minerals Limited and Non-Executive Director at Arrow Minerals Limited. Mr McKeith is Chair of the Nomination and Remuneration Committee. Andrea Hall, BCom, FCA, M. App Fin, GAICD, Non-Executive Director Ms Hall is a Chartered Accountant with more than 30 years’ experience in the financial services industry in roles involved in internal audit, risk management, corporate and operational governance, external audit, financial management and strategic planning. Prior to retiring from KPMG in 2012, Andrea was a Perth-based partner within KPMG’s Risk Consulting Services where she serviced industries including mining, mining services, transport, healthcare, insurance, property and government. Ms Hall is currently a Non-Executive Director and Chair of the Audit and Risk Committee at ASX-listed Pioneer Credit Limited. Andrea is also a Non- Executive Director of ASX listed Perenti Group and Chair of the Audit and Risk Committee. Further, she is a Non-Executive Director of Insurance Commission of Western Australia and the AFL Fremantle Football Club. Ms Hall Ms Hall is the Chair of the Audit Committee and Member of the Risk and Sustainability Committee. Victoria (Vicky) Binns, BEng (Mining - Hons 1), FAusIMM, GAICD, Grad Dip SIA, Non-Executive Director Ms Binns has over 35 years’ experience in the global resources and financial services sectors including more than 10 years in executive leadership roles at BHP and 15 years in financial services with Merrill Lynch Australia and Macquarie Equities. During her career at BHP, Ms Binns’ roles included Vice President Minerals Marketing, leadership positions in the metals and coal marketing business, Vice President of Market Analysis and Economics and was a member of the first BHP Global Inclusion and Diversity Council. She was also co-Founder and Chair of Women in Mining and Resources Sg (WIMAR Sg). Prior to joining BHP, Ms Binns held a number of Board and senior management roles at Merrill Lynch Australia including Managing Director and Head of Australian Research, Head of Global Mining, Metals and Steel, and Head of Australian Mining Research. Ms Binns is currently a Non-Executive Director of ASX-listed company Cooper Energy, Sims Limited and the Carbon Market Institute, Australia’s leading independent industry association for business leading the transition to net zero emissions. Ms Binns is also a Member of the Advisory Council for JP Morgan in Australia & NZ. Ms Binns is a Member of the Audit Committee. Company Secretary Evan Elstein, BCom GDA, ACA, FGIA, FCIS Mr Elstein was appointed as the Group Company Secretary and Vice President for Information Technology in October 2011 following the merger of Conquest Mining Limited and Catalpa Resources Limited. Previously he served as Company Secretary of Conquest Mining. Mr Elstein has more than 25 years' executive management and corporate governance experience, spanning the mining, technology and manufacturing sectors. Prior to joining the mining industry, he held senior positions with IT consulting companies and served as the Chief Financial Officer and Company Secretary of Hartec Limited. Before emigrating to Australia, Mr Elstein held a number of management positions at Dimension Data in South Africa. Mr. Elstein is a member of Chartered Accountants Australia and New Zealand, the Institute of Chartered Secretaries and Administrators and a fellow of the Governance Institute of Australia. 16 17 160 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 161 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Meetings of directors The numbers of meetings of the Group's Board of Directors and of each Board Committee held during the year ended 30 June 2022, and the numbers of meetings attended by each Director were: Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Letter) Dear Fellow Shareholder, Jacob (Jake) Klein Lawrence (Lawrie) Conway James (Jim) Askew Thomas (Tommy) McKeith Andrea Hall Jason Attew Victoria (Vicky) Binns Peter Smith Board Audit Meetings of committees Risk and Sustainability Nomination and Remuneration A 12 12 11 12 11 12 12 12 B 12 12 12 12 12 12 12 12 A - - - - 4 4 4 - B - - - - 4 4 4 - A - - 3 - 3 - - 3 B - - 3 - 3 - - 3 A - - 3 3 - 3 - - B - - 3 3 - 3 - - A B Number of meetings attended. Number of meetings held during the time the Director held office or was a member of the committee during the year. On behalf of the Evolution Board, I am pleased to provide the Remuneration Report for the year ending 30 June 2022. At Evolution, our values of Safety, Excellence, Accountability and Respect underpin how we work. This is for every person working for Evolution including the Board. The Board and Leadership team recognise that in FY22 we underperformed in terms of our delivery to plan and missed our production and cost targets. This, together with a general retraction in market fundamentals resulted in a ~47% decrease in our share price over the year. We are disappointed by this and have redoubled our commitment and put in place a number of initiatives to ensure we do what we say will we do. However, we also recognise that FY22 has been a challenging year with several external factors impacting on operational performance. These included the continuation of the COVID-19 pandemic which resulted in sizeable percentages of our workforce being absent at times, disruption, and delays to supply chains, travel restrictions, managing through several extreme weather events in Australia and Canada, increasing labour market pressures and cost inflation. Notwithstanding these challenges Evolution has continued to improve the asset portfolio through organic and inorganic growth and strengthen our alignment to our strategy centred around margin over volume, safe and efficient production, progressing sustainability initiatives and our pathway to net zero, while aiming to maintain and enhance the Evolution culture supported by high quality talent. This Remuneration Report will explain how our remuneration framework is linked to our business strategy, overall company performance and shareholder returns. The remuneration outcomes for this year are reflective of our mixed operational performance and disappointing shareholder returns and are the lowest in the Company's history. FY22 Performance For FY22 the overall performance was mixed with strong financial performance, with some missteps operationally during a challenging year. Evolution’s health and safety performance improved through the past year, with a noticeable improvement at our Mungari operation resulting in a 60% improvement in their Total Recordable Injury Frequency (TRIF) rate. The management of material and critical risks continued to be a core focus for the Company and this area of the business has been managed well with the outcomes independently audited. In terms of sustainability, the Company is proud of its ongoing positive relationship with the communities and First Nation partners where it operates. Initiatives have also progressed towards its Net Zero commitments by 2050 (30% by 2030) aligned with the Paris Agreement. Managing energy consumption and greenhouse gas (GHG) emissions continued, with a reduction (improvement) of around ~7% in the FY22 emissions intensity against baseline. Partners Aligned to this, through increased transparency, due diligence, and reporting, Evolution’s broader Sustainability efforts were recognised externally through improved ESG assessments and performance ratings by key ESG ratings agencies including MSCI (score moved from A to AA, with a performance rating of leading), S&P Global (51 to a 53, performance rating above average), ISS (Environment score of 1 and social score of 2, performance rating of leading), and Sustainalytics (40.2 to 29.2, performance rating of leading). In addition to this, Evolution won two awards as part of the Australasian Reporting Awards (ARA). The independent stakeholder perception survey was also completed with an overall score of 4 out of 5, maintaining a “high approval” category. For FY22, Evolution delivered strong financial results including $2,064.9 million in revenue, $323.3 million in statutory profit and $146.6 million return to shareholders while all debt commitments were satisfied during the year. The Company increased its Gold Mineral Resources and Ore Reserves (MROR) as at 31 December 2021, with Mineral Resources increasing from 26.4 million ounces to 29.6 million ounces and Ore Reserves up from 9.9 million ounces to 10.3 million ounces net of mining depletion as at 31 December 2021. Group Copper Mineral Resources increased from 904,000 tonnes to 1.44 million tonnes of copper and the Group Copper Ore Reserves increased from 505,000 tonnes to 640,000 tonnes of copper net of mining depletion. Evolution continued to deliver on our margin over volume strategy, by maintaining the position as one of the lowest cost producers globally. Our balance sheet was further strengthened via an investment grade rating and two successful US Private Placements. These placements moved the debt profile out to longer dated debt at highly competitive and low fixed interest rates. While there are a range of positive results and achievements throughout FY22, the Board and Leadership team acknowledge that in terms of delivery to plan, production and cost targets were not met. The Board and Leadership team have discussed these at length and the learnings will be applied through the FY23 year. STI Outcomes For FY22, STIP outcomes focused on five (5) key measures; safety, material and critical controls, group cash contribution, group AISC and a strategic imperatives measure that enables the Board to review overall Company performance outside of the key non-discretionary measures to ensure the overall STI outcomes are reflective of the Company performance for the year. 18 19 162 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 163 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Letter continued) The STIP has proven to work effectively in rewarding employees relative to the overall company results and individual performance. The Key Management Personnel (KMP) have the highest proportion of their STIP linked to the overall Company outcomes. The overall FY22 STIP outcome was the lowest recorded for the Company which resulted in the outcomes for the KMP being significantly reduced to those awarded for FY21, in line with business performance. The strategic imperatives element of the STIP has a weighting of 30%. For FY22, the Board evaluated progress against Evolution’s Net Zero commitment, growth, and extension of the Cowal and Red Lake operations and continued improvement of the portfolio quality via business development and discovery. Balancing all factors, the Board awarded a score of 95% being between Threshold and Target for the strategic imperatives measure, resulting in an overall STIP outcome of 69%, which the Board believes is an appropriate reflection of the overall performance for FY22. A full breakdown is provided in the report 170-171. on page 26 - 27. LTI Outcomes Our LTIP performance measures directly link to shareholder expectations and reinforce our focus on delivering sustainable superior shareholder returns. For the FY20 LTIPs, tested and vesting as of 30 June 2022, the measures focused on Absolute Shareholder Return, Relative Shareholder Return, Earnings per share and Ore Reserve growth per share. For the performance against all measures over the three (3) year period, the Company achieved an overall vesting outcome of 33.3%. Similar to the STIP outcomes, this is the lowest recorded result for the Company. A full breakdown is provided in the 174. report on page 30. Signed: Tommy McKeith Chair of the Nomination and Remuneration Committee Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) This Remuneration Report forms part of the Directors' Report for the year ended 30 June 2022. This report contains details of the remuneration paid to the Directors and Key Management Personnel ("KMP") and is aligned to the Group's overall remuneration strategy and framework. The Group's remuneration philosophy and strategy is designed to ensure that the level and composition of remuneration is competitive, reasonable and appropriate for the results delivered and to attract and retain high quality and appropriately experienced Directors, KMP and employees. This remuneration report is presented under the following sections: Remuneration Strategy, Framework and Philosophy a. Remuneration Overview b. Remuneration Governance c. d. Changes in relation to Remuneration in FY22 e. f. g. Other Remuneration Information h. i. j. Transactions with KMP Changes planned for remuneration in FY23 Summary of Key Terms Executive Remuneration Performance Measures and Outcomes – STIs and LTIs Non-Executive Director Remuneration Outcomes (a) Remuneration Overview (i) Response to COVID-19 The health, safety and well-being of Evolution’s employees, contractors and the communities where we operate is core to how we operate. Evolution managed its response to COVID-19 in a structured way that included reference to the changing recommendations of health authorities, and local and national regulatory requirements. The impacts to people and operations were felt throughout the year, with short term restrictions on workforce participation due to isolation demands or positive cases, particularly when the pandemic was at its peak. Operations continued to safely operate during this time. We implemented extensive measures to prevent the spread of COVID-19 and continue to provide support to all our employees and local communities. The ongoing efforts continue to be structured around five key pillars: 1. Prevention Evolution implemented extensive preventive measures across our operations to safeguard the health of our employees, contractors and community. These included the promotion of vaccinations, the wearing of masks, supporting physical distancing and good hygiene practices, implementing remote work wherever feasible, enhanced cleaning and disinfecting protocols, promoting personal preventive measures, and screening all employees, contractors and external visitors for risk factors and symptoms. 2. Worker Support We focused on operating safely and responsibly that supported employment and economic activity. Sick leave benefits were expanded to ensure anyone that was required to self-isolate remained eligible for sick leave benefits and flexible working arrangements were reviewed. New and expanded employee services such as Employee Assistance Program (EAP) programs were extended that included additional support services and crisis counselling, as well as other on demand and virtual medical and mental healthcare services. Specialist medical advice and care was also provided as required that included the promotion and support of vaccination clinics. 3. Communities and Public Health Support for Community groups and employees remains and is expected to continue through FY23. The Group has additionally provided donations to our local communities impacted by the pandemic – since the start of the pandemic, over $2.5 million has been donated to provide direct and indirect support to our communities. Evolution supported critical social initiatives in areas where we operate. This included operating vaccination clinics, providing masks and rapid antigen test kits and other community support efforts. Examples of these initiatives have been addressed in more detail within the FY22 Sustainability Report. 4. Business Continuity Despite the challenges, all Evolution operations continued to safely operate, with COVID-19 measures in place. These measures followed best practices and guidance from health and government authorities. All Evolution activities continue to be underpinned by our focus on health, safety and sustainability leadership. Evolution has established a COVID19 Crisis Management Team (CMT), which was chaired by the Vice President Sustainability. This CMT continues today, with regular updates to the Leadership Team and the Board. Formalised COVID19 management teams remain in place. We continue to identify and implement measures and the formally established Crisis Management Team, led by members of the Leadership team remains as a formal response mechanism. 5. Communications To mitigate the mental and physical health impacts that lockdowns and periods of isolation may cause, communication lines were strengthened across the business as well as with the Employee Assistance Program (EAP). Sites also deployed technologies to enable risk mitigation and contact tracing, such as contact tracing cards at Cowal and QR codes in the Sydney Office. The site access protocols were also strengthened at each site. Ongoing communication around COVID-19 management to ensure a continual feedback loop has been delivered where information, questions and feedback is provided. This ensured ongoing connection and feedback loop with the workforce and community. 20 21 164 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 165 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (b) Remuneration Governance The Board of Directors (“the Board”) has an established Nomination and Remuneration Committee, consisting solely of Non-Executive Directors, with the delegated responsibility to report on and make recommendations to the Board on the: • • • Appropriateness of the remuneration strategy, philosophy, policies and supporting systems, having regard to whether they are: ◦ ◦ ◦ Relevant to the Group’s wider objectives and strategies; Legal and defensible; and In accordance with the people and culture objectives of the Group Performance of the Executive Directors (on an annual basis) and ensure there is a process for determining key performance indicators for the ensuing period; and Remuneration of the Executive Directors, Non-Executive Directors and KMP, in accordance with approved Board policies and processes. The Group's target remuneration philosophies are: • • • Total Fixed Remuneration - TFR (being salary, superannuation, plus regular allowances) positioned at the median (50th percentile) based on the industry benchmark Aon Remuneration report in Australia (an industry recognised gold and general mining remuneration benchmarking survey covering 126 organisations within the industry) and a combination of the Mercer and Korn Ferry Remuneration reports for the Canadian market. Total Annual Remuneration - TAR (TFR plus STI) at the 75th percentile for on target performance; and Total Remuneration - TR (TAR plus LTI) at the 75th percentile, with flexibility to provide up to the 90th percentile level for critical roles and exceptional individual performance. Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (a) Remuneration Overview (continued) The Nomination and Remuneration Committee (Committee), along with Risk and Sustainability Committee and the Board have regularly reviewed and considered the impacts of COVID-19 on the performance of the business. Specific to COVID-19, no adjustment has been made to the FY22 remuneration outcomes. (ii) Executive Directors, Non-Executive Directors and Key Management Personnel The executive remuneration framework covered in this report includes the Executive Directors (Executive Chair and Chief Financial Officer), Non-Executive Directors and those executives considered to be Key Management Personnel (“KMP”) named below: Name Jacob (Jake) Klein Lawrence (Lawrie) Conway James Askew Position Executive Chair Finance Director and Chief Financial Officer Non-Executive Director Andrea Hall Thomas McKeith Jason Attew Vicky Binns Peter Smith Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Vice President People & Culture Company Secretary & Vice President Information Technology Chief Operating Officer Vice President Discovery & Business Development Vice President Sustainability For NEDs Remuneration information refer to page 30-31. 174-175 (iii) Executive service agreements - all agreements are ongoing agreements * Name Position Title Total Fixed Remuneration Notice Period by Executive Notice Period by Evolution Termination payments * Existing Executive Directors and Key Management Personnel Jacob Klein Executive Chair Lawrie Conway Finance Director and Chief Financial Officer Paul Eagle Vice President People and Culture Evan Elstein Company Secretary and Vice President Information Technology 875,000 300,000 fixed Director's Fees 650,000 135,000 fixed Director's Fees 6 months 6 months 3 months 6 months 450,000 3 months 6 months 450,000 3 months 6 months Bob Fulker Chief Operating Officer 600,000 3 months 6 months Glen Masterman Vice President Discovery and Business Development 470,000 3 months 6 months Fiona Murfitt Vice President Sustainability 450,000 3 months 6 months 12 months Total Fixed Remuneration 6 months Total Fixed Remuneration 6 months Total Fixed Remuneration 6 months Total Fixed Remuneration 6 months Total Fixed Remuneration 6 months Total Fixed Remuneration 6 months Total Fixed Remuneration *For a change of control event, the termination payment is 12 months Total Fixed Remuneration (TFR) for Executive Directors and KMP. Fixed salary, inclusive of the required superannuation contribution amount, is reviewed annually by the Board following the end of the financial year. The amounts set out above are the Executive Directors and KMP total fixed remuneration as at the date of this report. 22 23 166 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 167 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (b) Remuneration Governance (continued) The overarching objectives and principles of the Group’s remuneration strategy are that: ◦ ◦ ◦ ◦ ◦ ◦ Total remuneration for each level of the workforce is appropriate and competitive; Total remuneration comprises a competitive fixed component and a sizeable “at risk” component based on performance hurdles; Short term incentives are appropriate with hurdles that are measurable, transparent and achievable; Incentive plans are designed to motivate and incentivise for high performance and delivery on organisational objectives; The Group long-term incentives are focused on delivering shareholder value; and The principles and integrity of the remuneration review process deliver fair and equitable outcomes (c) Remuneration Strategy and Framework The following table outlines the remuneration components for all KMP for the 2022 financial year: Component Performance measure Strategic objective Total Fixed Remuneration (TFR) Key results areas for each role are determined based on the individual's position, key business imperatives and individual KPIs aligned to the business plan and strategy. Remuneration is designed to attract, motivate and retain high performing individuals. Considerations include: • • • • • Overall Company strategy and annual business plan Key skills and knowledge required External market conditions Key employee value drivers Individual employee performance The objective is to motivate employees to achieve key annual targets focused on safety, risk, operations, cash contribution, and effective cost management, improving the overall quality of the asset portfolio and driving a high achievement team culture. Short Term Incentive (STI) Key Performance indicators are set with a mix of individual and corporate elements, the relative weighting of which is dependent on the individual employee job banding and position. For the Executive Chair, the weighting is 70% corporate and 30% individual and for the remainder of the KMP, 60% corporate and 40% individual. For the corporate component for FY22, the measures focused on safety, critical controls, cash contribution, costs and strategic imperatives focused on improving our overall asset portfolio aligned to the business strategy, improving operational effectiveness via the delivery of priority capital projects and progress in the company's sustainability targets. The target and stretch for the Executive Chair and the KMP are set at 60% and 90% of TFR respectively. Long Term Incentive (LTI) Performance measures agreed with the Board have a 3 year time horizon and are focused on enhancing shareholder value. The primary objective to deliver industry leading shareholder returns. The target achievement remuneration ratio mix for Executive Directors and KMP has not changed from prior financial year. The 2022 financial year and prior financial year is as follows: CEO/Executive Chair (FY22 & FY21) Other KMP (FY22 & FY21) Target 26% 15% 59% Target 31% 18% 51% Stretch 18% 17% 65% Stretch 23% 20% 57% TFR STI LTI TFR STI LTI Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (c) Remuneration Strategy and Framework (continued) The target achievement remuneration ratio mix for 2023 financial year will be changed to the following. Refer to note (i) in the Remuneration Report for details of the planned changes for remuneration in FY23. CEO/Executive Chair (FY23) Other KMP (FY23) Target 25% 18% 57% Target 29% 22% 49% Stretch 18% 20% 62% Stretch 22% 24% 54% TFR STI LTI TFR STI LTI (d) Changes in relation to remuneration in FY22 No changes were made in relation to remuneration in FY22. Refer to note (i) for remuneration changes for FY23. (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (i) Financial Performance The Group has demonstrated strong financial performance over the past five years as shown in the following charts: Statutory Profit/(loss) ($m) Underlying Profit After Tax ($m) EBITDA ($m) 263.4 218.2 301.6 345.3 323.3 405.4 354.3 250.8 218.2 274.7 795.1 730.3 1,029.4 914.2 898.8 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Annual Results Cumulative Average Annual Results Cumulative Average Annual Results Cumulative Average Basic EPS (cents) Dividends declared (cents per share) Share price ($) at 30 June 15.57 12.86 17.71 20.21 17.74 7.5 9.5 16.0 12.0 6.0 3.51 4.36 5.67 4.50 2.38 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Annual Results Cumulative Average Annual Results Cumulative Average Annual Results Cumulative Average 24 25 168 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 169 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (ii) STIP STIP Overview Component Performance measure Participation Composition Performance conditions The Overall Group STIP applies to site based employees at the level of Manager and above and all Group office employees. The Group STIP is a cash bonus, up to a maximum percentage of TFR, based on the employee job band. It is assessed and paid annually conditional upon the achievement of key company objectives and individual KPIs. For the 2022 financial year, the Group objectives were focused on the areas of safety, risk, group cash contribution, all in sustaining costs and strategic imperatives, designed to improve the overall business aligned to the long term business strategy. FY22 STIP considerations At the time of setting the FY22 STIP measures, the Board determined it would consider the following factors when awarding the score for the strategic imperatives measure: 1. 2. 3. Sustainability - progress as per the Evolution Net Zero commitment Key assets - growth and extension of our key assets (Cowal & Red lake operations) are on track as per agreed schedule and budget Business Development (BD) - Continued improvement of portfolio quality via BD and discovery, including early-stage opportunities STIP Performance Measures and Outcomes Measure TRI Frequency (TRIF) (12mma) Weighting Performance Outcome Risk - Critical and Material Risk Actions Group Cash Contribution ($ million) Group All in Sustaining Cost ($/oz sold) 15% 10.37 15% 150% 20% $110.5m 20% $1,259 Award 18.2 % The overall outcome was an the underlying performance from FY21, noting the baseline was re-calibrated with Board approval for the transactions completed in FY22. Mungari and Red lake were the two sites that needed the most focus through FY22 and although progress was slow at Red Lake, pleasingly there was a noticeable improvement at our Mungari operation, resulting in a 60% improvement in their Total Recordable Injury Frequency (TRIF) rate. improvement on 22.5 % All bow tie analysis and extreme risks controls were implemented and validated in line with the minimum standards. All actions were reviewed and reported weekly. There were no overdue actions. Independent audits were completed for all sites and all sites achieved a satisfactory rating or better. 0.0 % The overall outcome of $110.5 million did not reach the threshold level of $120 million and therefore the award for this measure was 0%. The result for the year was predominantly driven by lower than planned production and sales, higher operating costs offset by higher gold prices and lower capital. 0.0 % The result was a group AISC of $1,259, which didn’t achieve the threshold level of $1,245 and therefore the award is 0%. The result for the year was predominantly due to lower than planned gold sales and lower by-product prices. Measure Weighting Performance Outcome Strategic Imperatives Award 28.5 % 30% 95% 1. Sustainability – progress as per the Evolution Net Zero commitment The Company continued to move towards its goal of a 30% reduction in emissions by 2030, with a ~7% reduction for FY22. As outlined on page 19-20 (letter to shareholders), Evolution participates in external third-party performance benchmarking initiatives and sustainability related assessments, including environment, social and governance (ESG) ratings agencies and was recognised for improvements by key rating agencies as well winning two awards as part of the Australian reporting awards (ARA). 163 - 164 2. Key assets - growth and extension of our key assets (CGO & RLO) are on track as per agreed schedule and budget CGO: Significant progress was made on the underground project with the Feasibility Study completed and regulatory approval received. Despite the impacts of rising costs, the mine optimisation plan has minimised the cost pressure impact on the project financials and project budget. The project remains on schedule and on budget. The IWL project has continued to track well against plan even though it has been the impacted by weather and COVID. The Cowal Open Pit Continuation project was approved by the Board to move to Feasibility Phase. This included commencing consultation with stakeholders on the project. The consultation process has progressed with positive engagement received from all key stakeholders. The study remains on track and to budget. RLO: The first phase of projects related to stabilising and establishing Red Lake for the growth phase have been completed (projects included hoist automation, shaft decommissioning and the Cochenour maintenance shop). The focus throughout FY22 has moved to the transformation projects. The CYD decline project went through a challenging start-up early in the project with delays in mobilisation of the contractor and achievement of development meters. The team undertook several key changes to move the project back on track with a reduction in schedule shortfall being achieved in the last few months. The development meters are now consistently achieving above 200m per month. Access to first Campbell ore is on track while initial stoping is planned to be ahead of schedule. The mass mining study project was completed, and a decision made to not proceed with the next phase. This was a positive outcome as it addressed one of the long-term options and now allows the team to focus on the more valuable options moving forward. The provincial and life of mine plans identified several opportunities around the overall processing strategy for the 3 processing plants. The original project focused on restarting and grading the Bateman mill, but during the FY23 Life of Mine plan work, a decision has been taken to defer this work and instead look at a whole of operation processing optimization project. This project will also take into consideration the improved performance at the Campbell mill which has been approved to trial unconstrained processing rates in the second half of FY22. The optimization project will continue into FY23. 3. 3. Business Development (BD) – Continued improvement of portfolio quality via BD and discovery, including early-stage opportunities The A$400m acquisition of Kundana from Northern Star Resources (announced on 22 July 2021) aimed at turning Mungari into a cornerstone asset. Secured 100% ownership in Ernest Henry through the A$1bn acquisition of Glencore’s remaining interest and creating another cornerstone asset in our portfolio (announced 17 November 2021) and increasing our Copper exposure. The original transaction was done in 2016 with Glencore for $880m, where we received 100% of the Gold revenue and 30% of the Copper. This have proven to be a highly successful transaction, with the investment repaid in 4 years at an average rate of ~26% per annum achieved up to the time of acquiring the remainder of the asset. In FY22 the mine delivered ~$435m in Net Mine Cash Flow with an EBITDA margin of 62%. We divested our smallest / lowest quality asset through the sale of Mt Carlton to Navarre Minerals for up to A$90m (announced on 5 October 2021). Pleasingly, Navarre was very appreciative of the support and level of transition help provided by our internal divestment team and reinforced our desire to be good sellers as well as good buyers. The company staked its first early stage project in Canada with the Lake St Joseph project 200km east of Red Lake prospective for Dixie Lake style deposits in analogous geologic setting. 26 27 Overall Outcome 100% 69.2 % 170 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 171 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (ii) STIP (continued) The STIP outcomes for the KMP are set out in the table below. The outcomes reflect the combination of the overall company performance for the year (corporate component) as well as the individual KPI performance for the year (individual component) for each KMP member. For the Executive Chair, the weighting is 70% corporate and 30% individual and for the remainder of the KMP, 60% corporate and 40% individual. The target and stretch for all KMP are set at 60% and 90% of TFR respectively. The FY22 STIP outcomes for all KMP members are significantly lower than FY21 demonstrating the effectiveness of the STIP program and aligning KMP outcomes with the business results. Component Performance measure 2022 Directors Jacob Klein Lawrie Conway Key Management Personnel Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Total STIP Granted ($) % of Maximum Entitlement Granted % of Maximum Entitlement Forfeited 364,000 329,000 216,000 221,000 239,000 226,000 213,000 50.3 % 58.3 % 57.0 % 58.3 % 49.0 % 55.7 % 58.3 % 49.7 % 41.7 % 43.0 % 41.7 % 51.0 % 44.3 % 41.7 % (iii) LTIP LTIP Overview Component Performance measure Participation The Group LTIP applies to employees at the level of Manager, Superintendent / Senior Specialist, Functional Lead and above across the Group. Performance period Composition Performance conditions Up to 3 years. The Group has one long term incentive plan currently in operation, the Employee Share Option and Performance Rights Plan (“ESOP”). The ESOP (last approved by shareholders on 26 November 2020) provides for the issuance of Performance Rights to Executive Directors and eligible employees. This LTIP was first introduced for employees at the level of Manager and above and provides equity based “at risk” remuneration, up to maximum percentages, based on, and in addition to, each eligible employee’s TFR. Effective from 1 July 2018, the LTIP was extended to the superintendent and senior technical level in the Company. These incentives are aimed at retaining and incentivising those eligible employees on a basis that is aligned with shareholder interests and are provided via Performance Rights. The Performance Rights are issued for a specified period and each Performance Right is convertible into one ordinary share. All Performance Rights expire on the earlier of their expiry date or termination of the employee’s employment subject to Board discretion. Performance Rights do not vest until a specified period after granting and their vesting is conditional on the achievement of certain performance hurdles that are aligned with shareholder interests. There are no voting or dividend rights attached to the Performance Rights. Voting and dividend rights attach to the ordinary shares when the Performance Rights vest and shares are allocated to the participating employee. Unvested Performance Rights cannot be transferred and will not be quoted on the ASX. Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (iii) LTIP (continued) LTIP Performance Measures The following table outlines the performance measures for the LTIPs issued in FY22 and to be issued in FY23. KPI's Weighting Measure Criteria FY22 FY23 Performance Rights will be tested against the Group’s TSR performance relative to a peer group of comparator gold companies. The Group’s and the peer group’s TSR will be based on the percentage by which its 30-day volume weighted average share price quoted on the ASX (“VWAP”) (plus the value of any dividends paid during the performance period) has increased over a three year period Performance rights will be tested against the Group’s Absolute TSR performance relative to the 30 days VWAP (Absolute TSR Performance) as at 30 June each year, measured as the cumulative annual TSR over the three year performance period. Performance Rights will be tested against Evolution's relative ranking of its AISC performance for the last 12 months of the three year performance period compared to the AISC performance ranking of the Peer Group Companies for the same period. Performance Rights will be tested against the Group’s ability to grow its Ore Reserves, calculated by measuring the growth over the three year performance period by comparing the baseline measure of the Ore Reserves as at 31 December (“Baseline Ore Reserves”) to the Ore Reserves as at 31 December three years later on a per share basis, with testing to be performed at 30 June each year. The shares on issue used for the calculation are the shares on issue at the time of setting the Baseline and on a weighted average basis over the 3 year testing period for the calculation of the outcome. Relative TSR Performance 25% Absolute TSR Performance 25% Relative AISC Performance 25% Increase in ore reserves per share 25% Total LTI 100% Threshold 9th to 15th ranking = 0 8th ranking = 33% 8th to 13th ranking = 0 7th ranking = 33% Target 7th ranking = 50% 6th ranking = 50% 4th to 6th ranking = Straight-line pro- rata between 50% and 100% 4th to 5th ranking = Straight-line pro- rata between 50% and 100% Top 3 ranking = 100% Top 3 ranking = 100% Exceptional Threshold Target 10% return per annum = 33% 10% return per annum = 33% >10% to <15% = pro-rata between 33% and 66% >10% to <15% = pro-rata between 33% and 66% 15% return per annum= 66% 15% return per annum= 66% >15% to <20% = Straight-line pro- rata between 66% and 100% >15% to <20% = Straight-line pro- rata between 66% and 100% Exceptional >20% return per annum = 100% >20% return per annum = 100% Threshold 9th to 15th ranking = 0 8th ranking = 33% 8th to 13th ranking = 0 7th ranking = 33% Target 7th ranking = 50% 6th ranking = 50% 4th to 6th ranking = Straight-line pro- rata between 50% and 100% 4th to 5th ranking = Straight-line pro- rata between 50% and 100% Exceptional Threshold Top 3 ranking = 100% 90% of Baseline Ore Reserves = 33% Top 3 ranking = 100% 90% of Baseline Ore Reserves = 33% >90% but below 100% of Baseline Ore Reserves = Straight-line pro-rata between 33% and 66% >90% but below 100% of Baseline Ore Reserves = Straight-line pro-rata between 33% and 66% Target 100% of Baseline Ore Reserves = 66% 100% of Baseline Ore Reserves = 66% >100% of Baseline Ore Reserves and below 120% of Baseline Ore Reserves = Straight-line pro-rata between 66% and 100% >100% of Baseline Ore Reserves and below 120% of Baseline Ore Reserves = Straight-line pro-rata between 66% and 100% Exceptional >120% and above of Baseline Ore Reserves = 100% >120% and above of Baseline Ore Reserves = 100% 28 29 172 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 173 Directors’ report Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) Directors’ report Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (f) Non-Executive Director Remuneration Outcomes (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) Outlined in the table below is a summary of the fee structure by individual as at 30 June 2022. For remuneration outcomes please refer to table in section g (i). Performance Target Relative TSR Performance Measure Percentile Absolute TSR performance Compound annual return Growth in Earnings per share Compound annual return Weighting FY20 Outcome % of Maximum Vested % Vested 25 % 25 % 25 % 53rd (3.2) % 7.0 % — % — % — % — % 33.3 % 8.3 % Fixed Remuneration Leave Entitlement** Post- Employment Benefits STI LTI Remuneration Base Salary and Fees Movement Superannuation Bonus Amortised Value * Total Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (iii) LTIP (continued) LTIP Outcomes Component Performance measure Award outcome for the year - ESOP Performance Rights Outcomes for the FY19 award which were approved by the Board and vested in August 2021 are set out as follows: Performance Target Relative TSR Performance Measure Percentile Absolute TSR performance Compound annual return Growth in Earnings per share Compound annual return Weighting FY19 Outcome % of Maximum Vested % Vested 25 % 25 % 25 % 30th 16.4 % 11.8 % 59.4 % 14.9 % 75.6 % 18.9 % 72.8 % 18.2 % Increase in ore reserves per share Percentage increase 25 % 125.1 % 100.0 % 25.0 % Total 100.0 % 77.0 % Outcomes for the FY20 award approved by the Board for vesting in August 2022 are set out as follows: (i) (ii) (iii) (iv) (i) (ii) (iii) (iv) Increase in ore reserves per share Percentage increase 25 % 129.0 % 100.0 % 25.0 % Total 100.0 % 33.3 % (f) Non-Executive Director Remuneration Outcomes The Board policy is to remunerate Non-Executive Directors (NEDs) at market rates for comparable companies for time, commitment and responsibilities. The Nomination and Remuneration Committee determines Non-Executive Directors fees and reviews this annually, based on market practice, their duties and areas of responsibility. Independent external advice is sought when required. The maximum aggregate amount of cash fees that can be paid to Non- Executive Directors is subject to approval by shareholders (currently $1,200,000 per annum). Fees for Non-Executive Directors are not linked to the performance of the Group and they currently do not participate in the Group’s STIP or LTIP. Under the NED Equity Plan, NEDs will be granted Share Rights as part of their remuneration. The number of Share Rights granted will be calculated in accordance with the following formula: “Equity Amount” ($) for the financial year/Value per Share Right Where: • • “Equity Amount” is an amount determined by the Board, having regard to level of board and committee fees paid in cash and independent advice received. For 2022, the Equity Amount was $65,000 for each NED, other than the Lead Independent Director (LID), who received an Equity Amount of $80,000. For 2023, the Equity Amount will be $65,000 for each NED, and $80,000 for the LID, which is unchanged from the prior year. The Value per Share Right equals the volume weighted average price (VWAP) of Evolution’s ordinary shares traded on the ASX over the 10 trading day period commencing the day after the release of the upcoming year's guidance, and where applicable, any 3 year outlook. For 2022, the VWAP used to determine the number of share rights to be granted to each NED is $2.4580 . Providing the NED remains a director of the Group, Share Rights will vest and automatically exercise 12 months after the grant date. The Share Rights granted to NEDs under the NED Equity Plan are not subject to performance conditions or any other service requirements which could result in potential forfeiture. Vested Share Rights will convert into ordinary shares on a one-for-one basis. Vested Share Rights will be satisfied by either issuing shares or arranging for shares to be acquired on-market, subject to the Group's Securities Trading Policy and the inside information provisions of the Corporations Act. Upon the transfer to the relevant NED, the shares will be subject to disposal restrictions (Disposal Conditions) under the earlier of: • • • the NED ceasing to be a director of the Group; or three years from the date of grant of the share rights; or such longer period nominated by the NED at the time of the offer (up to a maximum 15 years from the date of grant). Directors James Askew Andrea Hall Thomas McKeith Peter Smith Vicky Binns Jason Attew Cash Component ($) Equity ($) Base Fees Lead Independent Sub-Committee Chair Sub-Commitee Member Total Cash Fees NED Equity Plan Shares Total per annum ($) 120,000 120,000 120,000 120,000 120,000 120,000 720,000 — — — — — 15,000 15,000 35,000 40,000 35,000 — — — 20,000 20,000 — 20,000 20,000 40,000 110,000 120,000 175,000 180,000 155,000 140,000 140,000 175,000 965,000 65,000 65,000 65,000 65,000 65,000 80,000 240,000 245,000 220,000 205,000 205,000 255,000 405,000 1,370,000 (g) Other remuneration information (i) Remuneration Summary Table Directors 1,082,106 1,083,980 18,217 30,574 23,568 21,694 364,000 583,000 1,607,044 1,177,278 3,094,935 2,896,526 Jacob Klein 738,306 740,179 36,171 51,645 23,568 21,694 329,000 460,000 892,699 646,785 2,019,744 1,920,303 Lawrie Conway 175,000 175,000 — James Askew Andrea Hall 164,384 164,384 — Thomas McKeith 144,495 155,251 — 168,750 160,000 — Jason Attew 127,854 127,854 — Vicky Binns Peter Smith 127,854 127,854 — Key Management Personnel 398,306 400,179 14,124 12,148 23,568 21,694 216,000 300,000 629,692 474,594 1,281,690 1,208,615 Paul Eagle 398,306 400,179 15,739 8,423 23,568 21,694 221,000 300,000 629,692 482,847 1,288,305 1,213,143 Evan Elstein Bob Fulker 518,306 520,180 5,069 25,450 23,568 21,694 239,000 385,000 809,415 618,275 1,595,358 1,570,599 Glen Masterman 428,306 430,180 14,554 5,345 23,568 21,694 226,000 340,000 674,626 516,408 1,367,054 1,313,627 382,021 383,306 22,466 20,840 23,568 21,694 213,000 300,000 443,870 177,230 1,084,925 903,070 Fiona Murfitt 4,853,994 4,868,526 126,340 154,425 221,433 206,515 1,808,000 2,668,000 6,071,308 4,381,119 13,081,075 12,278,585 — 61,673 52,638 236,673 227,638 — — 61,673 52,638 242,495 232,638 — — 66,868 64,786 225,812 234,786 — — 70,710 52,638 239,460 212,638 — — 61,673 32,501 202,312 172,501 — — 61,673 32,501 202,312 172,501 — — — — — 16,438 15,616 — 14,449 14,749 — — — — 12,785 12,146 — 12,785 12,146 — — — — — — *Amortised value of share based rights comprises the fair value of options and performance rights expensed during the year for KMP, and retention rights for NEDs. **Leave comprises of annual and long service leave movement for a financial year. Performance related remuneration % of total remuneration 2021 2022 64 % 61 % 60 % 58 % — — — — — — 66 % 64 % 66 % 65 % 66 % 64 % 66 % 65 % 61 % 53 % 30 31 174 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 175 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (g) Other remuneration information (continued) (ii) Performance Rights granted, vested or lapsed in each financial year: Granted Vested Forfeited Subject to vesting Testing date Vesting (%) - FY18 FY19 FY20 FY21 F22 Running Balance 6,586,571 (4,019,532) 5,699,933 6,038,033 — (2,598,828) 5,166,893 — 8,853,605 — (2,567,039) — (3,101,105) (1,851,528) — 4,186,505 (1,047,487) 4,119,406 (968,999) 7,884,606 32,345,035 (6,618,360) (9,536,158) 16,190,517 30/6/2020 93.7 % 30/6/2021 77.0%* 30/6/2022 33.3 % 30/6/2023 — % 30/6/2024 — % — — % * The FY19 Tranche 1 performance rights are re-tested as at 30 June 2021 and adjusted to reflect the outcome for the full three year performance period. (iii) Movement in Performance Rights in FY21 and FY22: Outstanding balance at the beginning of the year Performance rights granted during the period Vested during the period Forfeited during the period Outstanding balance at the end of the year (iv) Performance Rights and Shares 2022 Number 2021 Number 12,770,473 8,853,605 (2,598,828) 13,776,882 5,166,893 (4,019,532) (2,834,733) (2,153,770) 16,190,517 12,770,473 At end of the year Balance at the start of the year Number of new rights granted New grant value at grant date Vested Forfeited Balance at the end of the year Vested and exercisable To be Forfeited Unvested Unamortised value of SBP expenses Directors Jacob Klein Lawrie Conway James Askew (i) Andrea Hall (i) Thomas McKeith Jason Attew Vicky Binns (i) Peter Smith (i) 1,522,178 838,803 10,984 711,457 $ 1,928,048 395,404 $ 1,071,545 65,600 16,400 $ (381,621) (206,865) (10,984) (114,314) 1,737,700 965,377 16,400 (61,965) — 183,567 367,272 1,186,861 $ 1,195,839 664,476 101,953 203,982 26,435 — 659,442 $ 16,400 $ — 10,984 13,519 10,984 10,984 10,984 16,400 $ 65,600 (10,984) 16,400 $ 20,184 $ 16,400 $ 16,400 $ 65,600 80,736 65,600 65,600 (13,519) (10,984) (10,984) (10,984) — — — — — 16,400 16,400 20,184 16,400 16,400 — — — — — — — — — — 16,400 $ 16,400 $ 20,184 $ 16,400 $ 16,400 $ 26,435 26,435 32,534 26,435 26,435 Key Management Personnel Paul Eagle 557,101 266,099 $ 705,827 (133,954) (40,125) 649,121 68,512 137,076 443,533 $ 483,537 Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt 564,812 723,827 604,292 266,099 $ 341,790 $ 285,022 $ 705,827 906,596 756,019 (139,888) (178,040) (149,214) (41,902) (53,331) (44,697) 649,121 834,246 695,403 68,512 137,076 88,087 176,241 73,406 146,867 443,533 $ 569,918 $ 475,130 $ 483,537 621,297 517,978 256,388 — 5,135,840 2,623,883 $ 7,161,182 (1,258,021) 255,828 $ 678,584 — 512,216 (356,334) 6,145,368 30,535 454,892 614,572 1,229,608 4,301,188 $ 4,586,265 420,587 $ 61,094 *The performance rights issued have a zero exercise price. The performance rights may be exercised on or after the vesting date. Once vested the performance rights have 15 years until expiry. ** Grant date for Key Management Personnel performance rights was 13 September 2021. Jake Klein and Lawrie Conway's performance rights was granted on 25 November 2021 following shareholder approval at the Annual General meeting. Non-Executive Directors had share rights granted on 26 November 2021. (i) Non-Executive Director Share Rights granted under the NED Equity Plan are not subject to performance conditions or any other service requirements which could result in potential forfeiture. Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (g) Other remuneration information (continued) (iv) Performance Rights and Shares (continued) The fair value at grant date for the Key Management Personnel FY22 performance rights are stated below: September 2021 Performance Rights issue Fair value at grant date ($) Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves 2.19 1.08 3.67 3.67 The fair value at grant date for the Non-Executive Directors FY22 share rights were $4.0 and are based on one year service condition. The fair value at grant date for the Jake Klein's and Lawrie Conway's FY22 performance rights are stated below: November 2021 Performance Rights issue Fair value at grant date ($) (v) Directors and key management personnel equity holdings Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves 2.03 1.21 3.80 3.80 Balance at the start of the year Received during the year on conversion of performance rights * Other changes Balance at the end of the year Directors Jacob Klein Lawrie Conway James Askew Andrea Hall Thomas McKeith Jason Attew Vicky Binns Peter Smith Key Management Personnel Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt 15,394,864 1,116,597 814,458 40,871 217,028 26,727 — 26,126 788,029 685,251 20,000 5,072 — 381,621 206,865 10,984 10,984 13,519 10,984 10,984 10,984 133,954 139,888 178,040 149,214 — 19,135,023 1,258,021 * The exercise price of the performance right is nil. (h) Transactions with KMP (a) Loans: There are no loans provided to Key Management Personnel as at 30 June 2022. 65,585 3,895 103,896 — 3,896 — 25,800 13,896 — (97,291) (178,040) (149,214) — (207,577) 15,842,070 1,327,357 929,338 51,855 234,443 37,711 36,784 51,006 921,983 727,848 20,000 5,072 — 20,185,467 (b) Related Party Transactions: Directors fees were paid to Mr Jason Attew and International Mining & Finance Corp, for which Mr James Askew is a Director. Amounts paid in the current financial year period are summarized as follows: 32 33 176 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 177 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (h) Transactions with KMP (continued) (b) Related Party Transactions (continued) Related party transactions International Mining & Finance Corp Jason Attew Total 30 June 2022 * 30 June 2021 $ $ 234,650 191,757 426,407 175,000 — 175,000 * Payment to International Mining & Finance Corp includes $59,650 expense reimbursements and payment to Jason Attew includes $21,990 expense reimbursements. Expenses were mostly related to travel. (i) Changes are planned for remuneration in FY23 Element Changes for FY23 Reason for Change TFR Change to the KMP's Total Fixed Remuneration (TFR) STIP Change to annual short term incentive programs LTIP Change in the comparator group Following the TFR’s of the KMP (excluding the VP Sustainability role as this commenced after the freeze was agreed with the Board) being fixed for the last 3 years, the Board approved external market benchmarking to be undertaken by KPMG. As a result of this, the KMP TFRs will be increased by an average of 7.3% effective 1 July 2022. This is the equivalent of a 2.4% per annum increase over the 3 year period. Following external benchmarking by KPMG, the Board agreed to upweight short term incentive programs to enable the company to remain competitive in attracting and retaining high quality talent as well as aligning the approach to the Company’s desired remuneration philosophy of being positioned at P75 for total annual reward, with the overall reward mix weighted towards the variable at risk components. The approved change increases the KMP at risk components (STIP and LTIP) by up to 2% to 71-75% for target outcomes and 78-82% for stretch outcomes. To maintain a good balance of similar sized companies by market capitalization and representation across the Australian and Canadian markets and to reflect changes where companies have merged or been acquired. Evolution Mining Limited Directors' Report 30 June 2022 Remuneration Report (Audited) (continued) (j) Summary of Key Terms Below is a list of key terms with definitions used within the Directors' Report: Key Term Definition The Board of Directors (“the Board” or “the Directors”) Key Management Personnel ("KMP") Total Fixed Remuneration ("TFR") Short Term Incentive ("STI") and Short Term Incentive Plan (“STIP”) Long Term Incentive ("LTI") and Long term Incentive Plan (“LTIP”) Total Annual Remuneration Total Remuneration Superannuation Guarantee Charge ("SGC") The Board of Directors, the list of persons under the relevant section above. Senior executives have the authority and responsibility for planning, directing and controlling the activities of the Group and are members of the senior leadership team. KMP for the financial year ended 30 June 2018 are listed above. Total Fixed Remuneration comprises a base salary plus superannuation. This is currently positioned at the median (50th percentile) of the industry benchmarking report. STI is the short-term incentive component of Total Remuneration. The STI usually comprises a cash payment that is only received by the employee if specified annual goals are achieved. STIP refers to the plan under which the incentives are granted and paid. LTI is the long-term incentive component of Total Remuneration. The LTI comprises of Performance Rights, usually with a three year vesting period that are subject to specified vesting conditions established by the Board. Further details of the vesting conditions associated with the performance rights are detailed in the Vesting Conditions of Performance Rights section. Performance Rights cannot be exercised unless the vesting conditions have been satisfied. LTIP refers to the plan under which LTIs are granted and is aimed at retaining and incentivising KMP and senior managers to achieve business objectives that are aligned with shareholder interests, and are currently provided via Performance Rights. Total Fixed Remuneration plus STI. Total Fixed Remuneration plus STI and LTI. This is the employer contribution to an employee nominated superannuation fund required by law. The percentage contribution was set at 10% in the reporting period and is capped in line with the SGC maximum quarterly payment. Employees and Contractors Option Plan ("ECOP") The plan permits the Group, at the discretion of the Directors, to grant Options over unissued ordinary shares of the Group to eligible Directors, members of staff and contractors as specified in the plan rules. The plan is currently dormant and no further Options will be issued under this plan. Employee Share Option and Performance Rights Plan ("ESOP") NED Equity Plan Total Shareholder Return ("TSR") Key Performance Indicators ("KPIs") Volume Weighted Average Share Price (“VWAP”) Fees Forfeiture The plan permits the Group, at the discretion of the Directors, to grant both Options and Performance Rights over unissued ordinary shares of the Group to eligible Directors and members of staff as specified in the plan rules. The plan permits the Group, at the discretion of the Board and Remuneration. Committee to issue remuneration to Non- Executive Directors through Share Rights. TSR is the total return on an ordinary share to an investor arising from growth in the share price plus any dividends received. A form of performance measurement for individual performance against a pre-defined set of goals. A volume weighted average share price quote on the Australian Stock Exchange (ASX) measured over a specified number of trading days. The VWAP is to be used when assessing Company performance for TSR. Fees paid to Executive and Non-Executive Directors for services as a Director, including sub-committee fees as applicable. Performance rights forfeited upon cessation of employment or vesting conditions not met. 34 35 178 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 179 Directors’ report Directors’ report Directors’ report (continued) Directors’ report (continued) Evolution Mining Limited Directors' Report 30 June 2022 Indemnification of officers and auditors During the financial year the Group paid a premium in respect of a contract insuring the Directors of the Group, the Group secretaries and all executive officers of the Group and of any related body corporate against a liability incurred as such a Director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The Group has entered into a Deed of Indemnity, Insurance and Access with each Director. In Summary the Deed provides for: ◦ ◦ ◦ Except for the above the Group has not otherwise, during or since the financial year, except to the amount permitted by law, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate against a liability incurred as such an officer or auditor. Access to corporate records for each Director for a period after ceasing to hold office in the Group; The provision of Directors and Officers Liability Insurance; and Indemnity for legal costs incurred by Directors in carrying out the business affairs of the Group. Proceedings on behalf of the Group No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001. Non-audit services The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor's expertise and experience with the Group and/or the Group are important. Details of the amounts paid or payable to the auditor (PricewaterhouseCoopers) for non-audit services provided during the year are set out below. Details of the amounts paid or payable to the auditor for audit services provided during the year are set out in note 28(a). The Board of Directors has considered the position and, in accordance with advice received from the audit committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons: ◦ ◦ all non-audit services have been reviewed by the audit committee to ensure they do not impact the impartiality and objectivity of the auditor. none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants. During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, Evolution Mining Limited, its related practices and non-related audit firms. Also included are fees paid or payable for non-audit services by non PricewaterhouseCoopers audit firms, although these firms do not provide audit services to Evolution Mining Limited. Evolution Mining Limited Directors' Report 30 June 2022 Non-audit services (continued) Other assurance services PricewaterhouseCoopers firm: Other Non PricewaterhouseCoopers audit firms Internal audit services Other assurance services Total remuneration for other assurance services Taxation services PricewaterhouseCoopers firm: Tax compliance services Tax advisory services Non PricewaterhouseCoopers audit firms Tax compliance services Tax advisory services Total remuneration for taxation services Total remuneration for non-audit services Total remuneration paid to PricewaterhouseCoopers Total remuneration paid to Non PricewaterhouseCoopers 2022 $ 2021 $ 6,000 6,560 377,763 38,940 422,703 217,541 41,348 265,449 139,770 — 148,613 255,574 543,957 145,770 820,890 966,660 77,380 — 67,557 555,348 700,285 83,940 881,794 965,734 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 38. 182. 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' off Report have been rounded in accordance with that ASIC Corporations Instrument to the nearest dollar. This report is made in accordance with a resolution of Directors. Jacob (Jake) Klein Executive Chair Sydney Andrea Hall Chair of the Audit Committee 36 37 180 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 181 Auditor’s independence declaration Consolidated statement of profit or loss and other comprehensive income Auditor’s independence declaration Consolidated statement of profit or loss and Evolution Mining Limited other comprehensive income Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2022 Notes 30 June 2022 $'000 30 June 2021 $'000 Sales revenue Cost of sales Gross Profit Interest income Other income Share based payments expense Corporate and other administration costs Transaction and integration costs Gain on remeasurement of existing interest in Ernest Henry Mine Exploration and evaluation costs expensed Finance costs Profit before income tax expense Income tax expense 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) Cash flow 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 income/(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 2 2 2 27 2 2 25 (c) 9 2 3 12(d) 12(d) 12(b) 12(c) Earnings per share for profit attributable to Owners of Evolution Mining Limited: Basic earnings per share Diluted earnings per share 4 4 2,064,928 (1,572,842) 492,086 1,864,058 (1,285,131) 578,927 1,993 17,794 (13,879) (38,547) (130,117) 154,206 (16,507) (49,281) 417,748 1,847 12,950 (11,371) (37,107) (15,058) — (12,877) (21,140) 496,172 (94,424) 323,324 (150,910) 345,262 (13,194) (25,861) 52,656 29,436 1,886 70,784 394,108 17,713 — — (8,148) 337,114 394,108 394,108 337,114 337,114 Cents 17.74 17.70 Cents 20.21 20.14 The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 39 182 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 183 Consolidated balance sheet Consolidated balance sheet Evolution Mining Limited Consolidated Balance Sheet As at 30 June 2022 Notes 30 June 2022 30 June 2021 $'000 $'000 ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax receivables Total current assets Non-current assets Inventories Equity investments at fair value Property, plant and equipment Mine development and exploration Right-of-use assets Deferred tax assets Derivative financial instruments Other non-current assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Interest bearing liabilities Current tax liabilities Provisions Derivative financial instruments Lease liabilities Other current liabilities Total current liabilities Non-current liabilities Interest bearing liabilities Provisions Deferred tax liabilities Lease liabilities Other non-current liabilities Total non-current liabilities Total liabilities Net assets EQUITY Issued capital Reserves Retained earnings 10 13 15 15 16 7 9 8 20 16(b) 17 14 11 19 16(b) 8 25(c) 11 19 20 8 18 12(a) 12(b)(c)(d) 12(e) Capital and reserves attributable to owners of Evolution Mining Limited Total equity The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes. 572,427 153,449 250,512 33,733 1,010,121 158,674 60,840 1,662,423 3,476,341 19,092 72,797 113,213 56,565 5,619,945 160,062 115,742 188,558 — 464,362 113,634 62,904 989,894 2,159,989 22,886 94,917 — 48,449 3,492,673 407,341 167,318 — 73,893 2,671 12,751 197,914 861,888 1,670,628 489,579 274,074 9,097 70,824 2,514,202 3,376,090 3,253,976 2,644,103 131,420 478,453 3,253,976 3,253,976 190,977 102,843 2,712 38,448 — 14,418 — 349,398 508,389 319,396 166,004 10,684 68,274 1,072,747 1,422,145 2,534,890 2,183,727 49,406 301,757 2,534,890 2,534,890 Consolidated statement of changes in equity Consolidated statement of changes in equity Evolution Mining Limited Consolidated Statement of Changes in Equity For the year ended 30 June 2022 Notes Issued capital Share-based payments Financial assets at FVOCI Foreign currency translation Cash flow hedge reserve Retained earnings Total equity Balance at 1 July 2020 $'000 2,183,727 $'000 59,002 $'000 38,467 $'000 (47,746) $'000 — $'000 229,860 $'000 2,463,310 Profit after income tax expense Changes in fair value of equity investments at FVOCI net of tax 12(d) Exchange differences on translation of foreign operations Total comprehensive income Transactions with owners in their capacity as owners: Dividends provided for or paid Recognition of share-based payments 5 27 — — — — — — — — — — — (25,861) — — — 17,713 — 345,262 345,262 — — — (25,861) — 17,713 — (25,861) 17,713 — 345,262 337,114 — 7,831 7,831 — — — — — — — (273,365) (273,365) — 7,831 — (273,365) (265,534) Balance at 30 June 2021 2,183,727 66,833 12,606 (30,033) — 301,757 2,534,890 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 12(d) 12(b) 12(c) Total comprehensive expense Transactions with owners in their capacity as owners: Issue of share capital Dividends provided for or paid Recognition of share-based payments 12(a) 5 27 — — — — — 460,376 — — (13,194) — — — — (13,194) 52,656 — — 52,656 — — — — — — — 11,230 460,376 11,230 — — — — — — — — — — — — (146,628) 460,376 (146,628) — 11,230 — (146,628) 324,978 — — — — 301,757 323,324 2,534,890 323,324 — (13,194) — 52,656 29,436 1,886 31,322 — — 323,324 29,436 1,886 394,108 Balance at 30 June 2022 2,644,103 78,063 (588) 22,623 31,322 478,453 3,253,976 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 6,630,066 3,957,035 Balance at 1 July 2021 Profit after income tax expense 2,183,727 66,833 — 12,606 — (30,033) — 40 41 184 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 185 Consolidated statement of cash flows Notes to the consolidated financial statements Consolidated statement of cash flows Notes to the consolidated financial statements Evolution Mining Limited Consolidated Statement of Cash Flows For the year ended 30 June 2022 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 subsidiary Payments for equity investments Payments for exploration asset acquisitions Payments for acquisition of subsidiary, net of cash acquired Net cash outflow from investing activities Cash flows from financing activities Proceeds from interest bearing liabilities Repayment of interest bearing liabilities Lease liability principal payments Dividends paid Proceeds from issue of shares Net cash inflow/(outflow) from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents increase at end of year Notes 30 June 2022 $'000 30 June 2021 $'000 2,079,678 (1,161,357) (32,174) 3,816 1,670 (43,891) (71,059) 776,683 (432,916) (236,187) 1,723 5,486 30,364 — — (1,196,502) (1,828,032) 1,462,896 (300,000) (16,111) (146,628) 467,913 1,468,070 416,721 160,062 (4,356) 572,427 1,896,411 (1,014,355) (15,058) 3,427 1,847 (18,524) (96,740) 757,008 (160,260) (272,561) — 6,976 57,022 (1,123) (4,500) (349,669) (724,115) 145,000 (95,000) (21,422) (273,365) — (244,787) (211,894) 372,592 (636) 160,062 2 6(a) 25 11 11 8 5 12(a) 10 10 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 Contents of the Notes to the Consolidated Financial Statements Contents of the Notes to the consolidated financial statements Business Performance Business Performance Income tax expense Performance by Mine Revenue and Expenses Performance by Mine 1 Revenue and Expenses 2 Income tax expense 3 Earnings per share 4 Dividends 5 Dividends Other cash flow information 6 Other cash flow information Resource Assets and Liabilities Earnings per share Resource Assets and Liabilities Property, plant and equipment Property, plant and equipment 7 Leases 8 Mine development and exploration 9 Capital Structure, Financing and Working Capital Mine development and exploration Leases Capital Structure, Financing and Working Capital Equity and reserves Interest bearing liabilities Cash and cash equivalents Cash and cash equivalents 10 Interest bearing liabilities 11 Equity and reserves 12 Trade and other receivables 13 Trade and other payables 14 Inventories 15 Financial assets and financial liabilities 16 Trade and other receivables Trade and other payables Inventories Financial assets and financial liabilities Other non-current assets 17 Other non-current assets Other non-current liabilities 18 Other non-current liabilities Provisions 19 Provisions 20 Deferred tax balances Deferred tax balances Risk and unrecognised items Risk and unrecognised items 21 Financial risk management Financial risk management Contingent liabilities and contingent assets 22 Contingent liabilities and contingent assets 23 Commitments 24 Events occurring after the reporting period Events occurring after the reporting period Commitments Other Disclosures Other Disclosures Share-based payments Business Combinations Remuneration of auditors Related party transactions 25 Business Combinations 26 Related party transactions 27 Share-based payments 28 Remuneration of auditors 29 Deed of cross guarantee 30 Interests in other entities 31 Parent entity financial information 32 Deed of cross guarantee Interests in other entities Parent entity financial information Summary of significant accounting policies 188 188 189 192 193 193 194 195 195 197 198 202 202 202 203 205 206 206 207 208 208 209 211 213 213 217 217 218 219 219 223 224 226 227 227 228 229 230 Page 44 44 45 48 49 49 50 51 51 53 54 58 58 58 59 61 62 62 63 64 64 65 67 69 69 73 73 74 75 75 79 80 82 83 83 84 85 86 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. Summary of significant accounting policies 33 New accounting standards New accounting standards 42 43 186 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 187 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Business Performance This section highlights the key indicators on how the Group performed during the 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 Executive Chair and the Senior 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 is not a separate segment and includes share-based payment expenses and other corporate expenditures supporting the business during the year. Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation (EBITDA). 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 year ended 30 June 2022 is as follows: Ernest Henry $'000 745,799 464,914 28,000 10,750 Cowal $'000 532,665 286,083 30,962 229,826 Mungari $'000 330,894 103,203 30,307 41,762 Revenue EBITDA Sustaining Capital Major Capital Total Capital 38,750 260,788 72,069 199,230 Red Lake Mt Rawdon Mt Carlton Exploration $'000 Corporate $'000 $'000 268,703 44,662 45,850 153,380 $'000 137,554 43,829 $'000 49,313 4,308 8,290 22,621 30,911 2,683 975 3,658 — (16,507) — — — (31,678) Total $'000 — 2,064,928 898,814 965 — 965 147,057 459,314 606,371 The segment information for the reportable segments for the year ended 30 June 2021 is as follows: Ernest Henry $'000 439,513 318,606 14,221 — 14,221 Revenue EBITDA Sustaining Capital Major Capital Total Capital Cowal Mungari Red Lake Mt Rawdon Mt Carlton Exploration Corporate Total $'000 495,792 288,173 12,876 157,546 170,422 $'000 278,162 138,602 20,526 52,481 73,007 $'000 294,277 $'000 187,717 $'000 168,597 97,079 46,773 46,265 93,037 83,250 9,307 12,713 22,021 33,620 965 5,136 6,102 $'000 — (12,877) — — — $'000 $'000 — 1,864,058 (32,218) 1,016 — 1,016 914,235 105,684 274,141 379,826 Notes to the consolidated financial statements (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 1 Performance by Mine (continued) (c) Segment reconciliation Reconciliation of profit before income tax expense EBITDA Depreciation and amortisation Interest income Transaction and integration costs Finance costs Gain on sale of Mt Carlton Gain on remeasurement of existing interest in Ernest Henry Mine Profit before income tax expense Recognition and measurement 30 June 2022 30 June 2021 $'000 $'000 898,814 (467,825) 1,993 (130,117) (49,281) 9,958 154,206 417,748 914,235 (383,712) 1,847 (15,058) (21,140) — — 496,172 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 Leadership Team has been identified as being the chief business decision maker, consisting of the Key Management Personnel (KMP). (d) Segment non-current assets Segment non-current assets disclosed below are amounts expected to be recovered more than 12 months after the reporting period, excluding financial instruments, deferred tax assets and post-employment benefit assets. Segment non-current assets are aggregated on a geographical basis. As at 30 June 2022 Inventory Property, Plant & Equipment Mine Development & Properties Right of use asset Other Total segment non-current assets 2 Revenue and Expenses Revenue from contracts with customers Gold sales Silver sales Copper sales Total Revenue from contracts with customers Australia $'000 158,674 1,105,956 2,697,187 15,923 85 3,977,825 Canada $'000 — 553,006 764,007 1,260 250 1,318,523 Total $'000 158,674 1,658,962 3,461,194 17,183 335 5,296,348 30 June 2022 30 June 2021 $'000 $'000 1,556,051 17,446 491,431 2,064,928 1,604,997 22,127 236,934 1,864,058 44 45 188 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 189 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 2 Revenue and Expenses (continued) Disaggregation of revenue from contracts with customers 30 June 2022 Gold sales Silver sales Copper sales Total Revenue from contracts with customers Cowal $'000 Mungari Mt Carlton Mt Rawdon $'000 $'000 $'000 Ernest Henry $'000 Red Lake Cracow $'000 $'000 Total $'000 526,984 330,333 38,444 134,823 256,937 268,530 5,681 — 561 — 3,190 7,679 2,731 — 5,110 483,752 173 — — 1,556,051 — — 17,446 491,431 532,665 330,894 49,313 137,554 745,799 268,703 — 2,064,928 Cowal $'000 Mungari Mt Carlton Mt Rawdon $'000 $'000 $'000 Ernest Henry $'000 Red Lake $'000 Cracow $'000 Total $'000 30 June 2021 Gold sales Silver sales Copper sales Total Revenue from contracts with customers 490,993 4,800 277,791 371 135,470 10,575 184,477 3,239 222,400 2,731 293,865 413 194,988 1,604,997 22,127 899 — — 22,553 — 214,382 — 236,934 495,792 278,162 168,598 187,717 439,513 294,277 195,887 1,864,058 Revenues of $488.9 million (30 June 2021: $217.1 million) which relate to copper and silver sales are derived from a single external customer. 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 where gold metal credits are transferred to the customer's account. In relation to the Group's previous economic interest in Ernest Henry gold sales were recognised when the metal was received from Glencore and sold by the Group. Post the acquisition of the full ownership of Ernest Henry, gold in concentrate sales are recognised on shipment. For concentrate sales, revenue is recognised generally upon receipt of the bill of lading when the commodity is delivered for shipment. Copper and silver in concentrates sales in relation to the Group's previous economic interest in Ernest Henry were recognised as accrued revenue in the same month as their production was reported as the production is in the control of the customer. The transaction price for each contract is allocated entirely to this performance obligation. Post the acquisition of the full ownership of Ernest Henry, copper and silver in concentrate sales are recognised on 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. Accounting estimates and judgements Timing of Revenue Recognition - Ernest Henry Operation (pre-acquisition of the full ownership) The Group applied significant judgement as to when gold, silver and copper revenue should be recognised from the Ernest Henry Mine. Gold sales were recognised by the Group when the bullion was delivered to the Group’s gold account and sold in the third month after the month of production. Copper and silver sales were recognised as accrued revenue by the Group in the same month as their production was reported by the operator Glencore. Copper and silver was sold in accordance with the Offtake Agreement with Glencore where the metal was sold immediately following treatment and refining and was paid for in cash. Notes to the consolidated financial statements (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 2 Revenue and Expenses (continued) Other Income Net foreign exchange gain Gain on sale of Mt Carlton Other Total Other Income 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 Corporate and administration expense Stamp duty on business combinations Finance costs Amortisation of debt establishment costs Unwinding of discount on provisions Interest expense unwinding - lease liability Interest expense Depreciation and amortisation Cost of sales Corporate and other administration costs 30 June 2022 30 June 2021 $'000 $'000 3,041 9,958 4,795 17,794 11,031 — 1,919 12,950 30 June 2022 30 June 2021 $'000 $'000 1,039,899 68,072 464,871 1,572,842 841,170 63,558 380,403 1,285,131 35,593 2,954 38,547 26,280 5,894 97,943 130,117 2,860 2,530 758 43,133 49,281 33,798 3,309 37,107 9,736 5,322 — 15,058 2,204 413 1,150 17,374 21,140 464,871 2,954 467,825 380,403 3,309 383,712 46 47 190 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 191 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 3 Income tax expense (a) Income tax expense Current tax on profits for the period Adjustments for current tax of prior periods Deferred tax Total (b) Numerical reconciliation of income tax expense to prima facie tax payable Profit before income tax Tax at the Australian tax rate of 30% ( 2021 - 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Adjustments for current tax of prior periods Share-based payments Accounting gain from sale of Mt Carlton Tax loss on sale of Mt Carlton Derecognise deferred tax asset on sale of Mt Carlton Gain on remeasurement of existing interest in Ernest Henry Mine Stamp duty Previously unrecognised tax losses Other Adjustment for difference between Australian and overseas tax rates Income tax expense 30 June 2022 30 June 2021 $'000 52,909 (3,774) 45,289 94,424 $'000 94,003 (408) 57,315 150,910 30 June 2022 30 June 2021 $'000 417,748 125,324 $'000 496,172 148,852 (3,774) 865 (2,988) (41,841) 36,968 (46,262) 29,383 — (2,999) (252) 94,424 (408) 3,411 — — — — — (1,461) (1,039) 1,555 150,910 4 Earnings per share (a) Earnings per share Basic earnings per share (cents) Diluted earnings per share (cents) (b) Earnings used in calculating earnings per share Earnings per share used in the calculation of basic and diluted earnings per share: Profit after income tax attributable to the owners of the parent (c) Weighted average number of shares used as the denominator 30 June 2022 Cents 30 June 2021 Cents 17.74 17.70 20.21 20.14 30 June 2022 30 June 2021 $'000 $'000 323,324 345,262 2022 Number 2021 Number Weighted average number of ordinary shares used in calculating the basic earnings per share Effect of dilutive securities (i) Adjusted weighted average number of ordinary shares used in calculating the diluted earnings per share 1,822,135,441 4,704,814 1,826,840,255 1,708,094,924 6,248,654 1,714,343,578 (i) Performance rights and share rights have been included in the determination of diluted earnings per share. 5 Dividends (a) Ordinary shares Interim dividend - 2022 Interim dividend for the year ended 30 June 2022 of 3.0 cents per share fully franked (30 June 2021: 7.0 cents per share fully franked) per fully paid share paid on 25 March 2022 Final dividend - 2021 Final dividend for the year ended 30 June 2021 of 5.0 cents per share fully franked (30 June 2020: 9.0 cents per share fully franked) paid on 28 September 2021 Total dividend paid (b) Dividends not recognised at the end of the reporting period In addition to the above dividends, since period end the Directors have recommended the payment of a fully franked final dividend of 3.0 cents per fully paid ordinary share (30 June 2021: 5.0 cents fully franked). The aggregate amount of the proposed dividend expected to be paid on 30 September 2022 out of retained earnings at 30 June 2022, but not recognised as a liability at period end, is (c) Franked dividends 30 June 2022 $'000 30 June 2021 $'000 54,990 119,606 91,638 146,628 153,759 273,365 30 June 2022 30 June 2021 $'000 $'000 54,990 91,300 The final dividend recommended after 30 June 2022 will be fully franked out of the franking credits balance at the end of the financial year and the franking credits expected to arise from the payment of income tax during the year ending 30 June 2023. The franking account balance at the end of the financial year is $10.9 million (30 June 2021: $1.3 million). 48 49 192 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 193 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 6 Other cash flow information Resource Assets and Liabilities This section provides information that is relevant to understanding the composition and management of the Group's assets and liabilities. (a) Reconciliation of profit after income tax to net cash inflow from operating activities 30 June 2022 30 June 2021 $'000 $'000 7 Property, plant and equipment Profit after income tax Depreciation and amortisation (Gain)/loss on disposal of assets Share-based payments expense Gain on sale of Mt Carlton Gain on remeasurement of existing interest in Ernest Henry Mine Exploration and evaluation costs expensed Income tax expense Tax Payments Change in operating assets and liabilities: (Increase) in operating receivables (Increase)/Decrease in inventories (Decrease)/Increase in operating payables (Decrease) in borrowing costs (Decrease)/Increase in other provisions Net cash inflow from operating activities (b) Net (debt)/cash reconciliation This section sets out an analysis of net debt and the movements in net (debt)/cash for each of the periods presented. Net debt Cash and cash equivalents Bank loans US Private Placements Lease Liabilities Net (debt) Net (debt) at the beginning of the year Cash inflow/(outflow) inflow US Private Placement drawdown Bank loan drawdown Bank loan repayment Foreign exchange rate adjustments* Lease liabilities Net (debt) as at end of the year 323,324 467,825 (979) 12,119 (9,958) (154,206) 16,511 94,424 (71,059) (29,419) (57,021) 182,179 (1,978) 4,920 776,683 345,262 383,712 1,508 10,085 — — 12,877 150,910 (96,740) (8,112) (12,044) (29,393) (829) (226) 757,008 30 June 2022 $'000 30 June 2021 $'000 572,427 (760,000) (1,088,692) (21,848) (1,298,113) 160,062 (620,000) — (25,102) (485,040) 30 June 2022 30 June 2021 $'000 (485,040) 416,721 (1,022,896) (440,000) 300,000 (70,152) 3,254 (1,298,113) $'000 (240,540) (211,894) — (145,000) 95,000 (636) 18,030 (485,040) * Effects of exchange rate changes included $65.8 million foreign exchange revaluation on US Private Placements of USD $750.0 million. ** The Group's net debt gearing ratio excludes foreign exchange revaluations on US Private Placements and lease liabilities under AASB 16. At 1 July 2021 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2022 Carrying amount at the beginning of the year Additions Amounts acquired in business combinations Reclassifications Disposals Depreciation Divestment of Mt Carlton Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2022 Cost Accumulated depreciation Net carrying amount Included in above Assets in the course of construction Freehold land $'000 Plant and equipment $'000 Total $'000 19,238 — 19,238 2,319,065 (1,348,409) 970,656 2,338,303 (1,348,409) 989,894 19,238 — — 6,978 — — — 217 970,656 432,916 360,570 5,219 (1,187) (113,912) (37,909) 19,637 989,894 432,916 360,570 12,197 (1,187) (113,912) (37,909) 19,854 26,433 1,635,990 1,662,423 26,433 — 26,433 3,056,967 (1,420,977) 1,635,990 3,083,400 (1,420,977) 1,662,423 — 261,296 261,296 50 51 194 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 195 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 7 Property, plant and equipment (continued) 8 Leases At 1 July 2020 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2021 Carrying amount at the beginning of the year (i) Additions Amounts acquired in a business combinations Reclassification Disposal Depreciation Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2021 Cost Accumulated depreciation Net carrying amount Included in above Assets in the course of construction Freehold land $'000 Plant and equipment $'000 Total $'000 19,220 — 19,220 2,377,804 (1,714,014) 663,790 2,397,024 (1,714,014) 683,010 19,220 — — — — — 18 19,238 663,790 160,260 235,914 626 (1,508) (98,632) 10,205 970,656 683,010 160,260 235,914 626 (1,508) (98,632) 10,223 989,894 19,238 — 19,238 2,319,065 (1,348,409) 970,656 2,338,303 (1,348,409) 989,894 — 202,856 202,856 (i) Upon revising the provisional fair values of Red Lake (acquired 1 April 2020), prior year comparative figures were restated. Recognition and measurement Cost Plant and equipment is carried at cost less accumulated depreciation and impairment. Cost equals the amount of cash or cash equivalents paid or the fair value of the other consideration given at acquisition date and includes expenditure that is directly attributable to the acquisition of the items and an estimate of future restoration costs specific to the asset. Freehold land is carried at cost. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit or Loss during the reporting period in which they are incurred. An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no future economic benefits. Any gain or loss from derecognising the asset is included in the statement of profit or loss in the period the item is derecognised. Depreciation Depreciation of plant and equipment is calculated using either the straight line or units of production method to allocate their cost, net of their residual values, over their estimated useful lives. The rates range from 20% to 33% per annum for straight line or on a units of production basis in line with the economically recoverable reserves of the mine property at which the item is located. Freehold land is not depreciated. Accounting estimates and judgements Estimation of remaining useful lives, residual values and depreciation methods involve significant judgement and are reviewed annually for all major items of plant and equipment. Any changes are accounted for prospectively from the date of reassessment to the end of the revised useful life. This note provides information for leases where the Group is a lessee. The consolidated balance sheet shows the following amounts relating to leases: Right-of-use assets Plant and Machinery Property Office Equipment Total Right-of-use assets Lease Liabilities Current Non-current Total Lease Liabilities 30 June 2022 30 June 2021 $'000 $'000 16,218 2,612 262 19,092 19,202 3,673 11 22,886 30 June 2022 30 June 2021 $'000 $'000 12,751 9,097 21,848 14,418 10,684 25,102 The consolidated statement of profit or loss and other comprehensive income shows the following amounts relating to leases: Depreciation charge of right-of-use assets Plant and Machinery Property Office Equipment Total depreciation charge of right-of-use assets Other Items Interest expense Expense relating to short-term leases Total Other Items 30 June 2022 $'000 30 June 2021 $'000 12,847 1,430 210 14,487 7,300 775 11 8,086 30 June 2022 $'000 30 June 2021 $'000 758 421 1,179 651 1,897 2,548 The total cash outflow in the current year was $17.8 million including interest and short-term lease payments. The tables below analyse the Group's lease liabilities into relevant maturity groupings based on their contractual maturities. At 30 June 2022 Lease liabilities Less than 1 year $'000 Between 1 and 2 years Between 2 and 5 years $'000 $'000 Over 5 years $'000 Total contractual cash flows $'000 Carrying amount $'000 13,187 3,575 2,270 4,742 23,774 21,848 52 53 196 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 197 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 9 Mine development and exploration 9 Mine development and exploration (continued) At 1 July 2021 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2022 Carrying amount at the beginning of the year Additions Amounts acquired in business combinations* Transfers to Mine Development and Exploration Amortisation Divestment of Mt Carlton Reclassifications Write-off Disposal Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2022 Cost Accumulated amortisation Net carrying amount Producing mines Exploration and evaluation $'000 $'000 Total $'000 3,870,426 (2,140,091) 1,730,335 429,654 4,300,080 — 429,654 (2,140,091) 2,159,989 1,730,335 266,722 1,351,225 65,269 (372,806) (12,495) (12,196) — 443 27,109 429,654 44,659 64,129 (65,269) — (23,340) (7,674) (16,511) — 7,087 2,159,989 311,381 1,415,354 — (372,806) (35,835) (19,870) (16,511) 443 34,196 3,043,606 432,735 3,476,341 5,525,365 (2,481,759) 3,043,606 438,327 (5,592) 5,963,692 (2,487,351) 432,735 3,476,341 * Producing mines acquired for Ernest Henry relates to the gain on the fair value remeasurement of the Group's pre-existing interest and the fair value of the remaining interest acquired At 1 July 2020 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2021 Carrying amount at the beginning of the year (i) Additions Amounts acquired in a business combination Transfers to Mine Development and Exploration Amortisation Amortisation recognised in inventory Reclassifications Write-off Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2021 Cost Accumulated depreciation Net carrying amount Producing mines Exploration and evaluation $'000 $'000 Total $'000 4,518,777 (2,792,055) 1,726,722 1,726,722 259,909 8,266 1,285 (274,619) 4,055 936 — 3,781 1,730,335 3,870,426 (2,140,091) 1,730,335 347,126 — 4,865,903 (2,792,055) 347,126 2,073,848 347,126 60,732 33,661 (1,285) — — — (12,874) 2,294 429,654 2,073,848 320,641 41,927 — (274,619) 4,055 936 (12,874) 6,075 2,159,989 429,654 4,300,080 — (2,140,091) 429,654 2,159,989 (i) Upon revising the provision fair values of Red Lake ( acquired 1 April 2020), prior year comparative figures were restated. Recognition and measurement Mines under construction This expenditure includes net direct costs of construction, borrowing costs capitalised during construction and an appropriate allocation of attributable overheads. Expenditure is net of proceeds from the sale of ore extracted during the construction phase to the extent that this ore extracted is considered material to the development of the mine. After production commences, all aggregated costs of construction are transferred to producing mines or plant and equipment as appropriate. Producing mines - deferred stripping Stripping (waste removal) costs are incurred both during the development phase and production phase of operations. Stripping costs incurred during the development phase are capitalised as mines under construction. Stripping costs incurred during the production phase are generally considered to create two benefits: ◦ ◦ ◦ ◦ ◦ the production of ore inventory in the period - accounted for as a part of the cost of producing those ore inventories; or improved access to the ore to be mined in the future - recognised under producing mines if the following criteria are met: Future economic benefits (being improved access to the ore body) associated with the stripping activity are probable; The component of the ore body for which access has been improved can be accurately identified; and The costs associated with the stripping activity associated with that component can be reliably measured. The amount of stripping costs deferred is based on the life of component ratio which is obtained by dividing the amount of waste tonnes mined by the quantity of gold ounces contained in the ore for each component of the mine. Stripping costs incurred in the period are deferred to the extent that the actual current period waste to contained gold ounce ratio exceeds the life of component expected 'life of component' ratio. A component is defined as a specific volume of the ore body that is made more accessible by the stripping activity and is determined based on mine plans. An identified component of the ore body is typically a subset of the total ore body of the mine. Each mine may have several components, which are identified based on the mine plan. 54 55 198 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 199 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 9 Mine development and exploration (continued) Accounting estimates and judgements (continued) Exploration and evaluation (continued) The recoverable amount of capitalised expenditure relating to undeveloped mining projects (projects for which the decision to mine has not yet been approved at the required authorisation level within the Group) can be particularly sensitive to variations in key estimates and assumptions. If a variation in key estimates or assumptions has a negative impact on recoverable amount it could result in a requirement for impairment. Units of production method of amortisation The Group uses the units of production basis when amortising mine development assets which results in an amortisation charge proportional to the depletion of the anticipated remaining life of mine production. Each item's economic life, which is assessed annually, has due regard to both its physical life limitations and to present assessments of economically recoverable reserves of the mine property at which it is located. These calculations require the use of estimates and assumptions. The changes in ore reserves and mineral resources driving the remaining life of mine production are accounted for prospectively when amortising existing mine development assets. Ore Reserves and Mineral Resources The Group estimates its Ore Reserves and Mineral Resources annually at 31 December each year and reports in the following February, based on information compiled by Competent Persons as defined in accordance with the Australasian code for reporting Exploration Results, Mineral Resources and Ore Resources (JORC Code 2012). The estimated quantities of economically recoverable reserves are based upon interpretations of geological models and require assumptions to be made regarding factors such as estimates of short and long-term exchange rates, estimates of short and long- term commodity prices, future capital requirements and future operating performance. Changes in reported reserves estimates can impact the carrying amount of mine development (including exploration and evaluation assets), the provision for rehabilitation obligations, the recognition of deferred tax assets, as well as the amount of amortisation charged to the statement of profit or loss. Impairment Significant judgements, estimates and assumptions are required in determining value in use or fair value less costs of disposal. This is particularly so in the assessment of long life assets. It should be noted that the CGU recoverable amounts are subject to variability in key assumptions including, but not limited to, gold and copper prices, currency exchange rates, discount rates, production profiles and operating and capital costs. A change in one or more of the assumptions used to determine value in use or fair value less costs of disposal could result in a change in a CGU's recoverable amount. 9 Mine development and exploration (continued) Recognition and measurement (continued) Mines under construction (continued) The deferred stripping asset is initially measured at cost, which is the accumulation of costs directly incurred to perform the stripping activity that improves access to the ore within an identified component, plus an allocation of directly attributable overhead costs. The deferred stripping asset is depreciated over the expected useful life of the identified component of the ore body that is made more accessible by the activity, on a units of production basis. Economically recoverable reserves are used to determine the expected useful life of the identified component of the ore body. Exploration and evaluation Exploration and evaluation expenditure related to areas of interest is capitalised and carried forward to the extent that rights to tenure of the area of interest are current and either: • • Costs are expected to be recouped through the successful development and exploitation of the area of interest or alternatively by sale; or Where activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Such expenditure consists of an accumulation of acquisition costs and direct exploration and evaluation costs incurred, together with an appropriate portion of directly related overhead expenditure. The carrying value of capitalised exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying value may exceed its recoverable amount. Any amounts in excess of the recoverable amount are derecognised in the financial year it is determined. Depreciation and amortisation The Group uses the units of production basis when amortising mine development assets which results in an amortisation charge proportional to the depletion of the anticipated remaining life of mine production. Each item's economic life has due regard to both its physical life limitations and to present assessments of economically recoverable reserves of the mine property at which it is located. The changes in ore reserves and mineral resources driving the remaining life of mine production are accounted for prospectively when amortising existing mine development assets. Impairment of non-financial assets (i) Testing for impairment At each reporting date, the Group tests its assets for impairment where there is an indication that: • • the asset may be impaired; or previously recognised impairment (on assets other than goodwill) may have changed. Where the asset does not generate cash inflows independent from other assets and its value in use cannot be estimated to be close to its fair value, the asset is tested for impairment as part of the cash generating unit (CGU) to which it belongs. The Group considers each of its mine sites to be a separate CGU. If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount is reduced to the recoverable amount and an impairment loss recognised in the Statement of Profit or Loss. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal or value in use. (ii) Impairment calculations In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In determining fair value less costs of disposal, a discounted cash flow model is used based on a methodology consistent with that applied by the Group in determining the value of potential acquisition targets, maximising the use of market observed inputs. These calculations, classified as Level 3 on the fair value hierarchy, are compared to valuation multiples, or other fair value indicators where available, to ensure reasonableness. Accounting estimates and judgements Deferred stripping The life of component ratio is a function of the mine design and therefore changes to that design will generally result in changes to the ratio. Changes in other technical or economic parameters that impact reserves will also have an impact on the life of component ratio even if they do not affect the mine design. Changes to production stripping resulting from a change in life of component ratios are accounted for prospectively. Exploration and evaluation Judgement is required to determine whether future economic benefits are likely, from either exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves. In addition to these judgements, the Group has to make certain estimates and assumptions such as the determination of a JORC resource which is itself an estimation process that involves varying degrees of uncertainty depending on how the resources are classified (i.e. measured, indicated or inferred). These estimates directly impact when the Group capitalises exploration and evaluation expenditure. The capitalisation policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular, the assessment of whether economic quantities of reserves will be found. Any such estimates and assumptions may change as new information becomes available. 56 57 200 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 201 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Capital Structure and Financing This section provides information on the Group's capital and financial management activities. 11 Interest bearing liabilities (continued) Recognition and measurement 10 Cash and cash equivalents Current assets Cash at bank Short term deposits Total Current assets Recognition and measurement 30 June 2022 $'000 30 June 2021 $'000 197,427 375,000 572,427 160,062 — 160,062 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. 12 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. Cash and short-term deposits in the balance sheet comprise cash at bank and on hand and short term deposits with an original maturity of three months or less and are classified as financial assets held at amortised cost. Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the Group and earn interest at the respective short-term deposit rates. 11 Interest bearing liabilities Current liabilities Bank loans Less: Borrowing costs Total Current liabilities Non-current liabilities Bank loans US Private Placements Less: Borrowing costs Total Non-current liabilities 30 June 2022 $'000 30 June 2021 $'000 170,000 (2,682) 167,318 590,000 1,088,692 (8,064) 1,670,628 105,000 (2,157) 102,843 515,000 — (6,611) 508,389 During the year, the Group successfully raised US$750 million through US Private Placement and arranged foreign exchange swaps to completely eliminate foreign currency exposure on the future interest and principal repayments. The Group drew down Facility E of $440 million and made $50 million repayment, while $105 million was repaid for Facility B as per repayment schedule and $145 million was paid to return Facility A's line of credit to be fully undrawn. The repayment periods, facility size and amounts drawn at 30 June 2022 on each facility are set out below: Facility Name Term Date Facility Size $m Revolving Credit Facility – Facility A - $m Performance Bond – Facility C $m Performance Bond – Facility D CAD $m Term Loan – Facility B - $m Term Loan – Facility E - $m US Private Placement - USD $m US Private Placement - USD $m US Private Placement - USD $m 31 Mar 2023 30 Nov 2024 30 Nov 2024 15 Jan 2025 15 Apr 2026 8 Nov 2028 14 Feb 2031 8 Nov 2031 $360.0 $360.0 $125.0 $570.0 $440.0 $200.0 $200.0 $350.0 Amount Drawn Available Amount $m $0.0 $72.8 $66.9 $570.0 $440.0 $200.0 $200.0 $350.0 $m $360.0 $287.2 $58.1 $0.0 $0.0 $0.0 $0.0 $0.0 (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. Balance at 1 July 2020 Shares issued on vesting of performance rights Shares issued under Employee Share Scheme (i) Shares issued under NED Equity Plan Balance as at 30 June 2021 Shares issued under institutional placement Shares issued under Share Purchase Plan Shares issued on vesting of performance rights Shares issued under Employee Share Scheme (i) Shares issued under NED Equity Plan Balance as at 30 June 2022 Number of shares $'000 1,704,413,975 4,019,532 2,183,727 — 179,733 53,845 — — 1,708,667,085 2,183,727 103,896,104 17,639,298 2,529,221 207,536 68,439 392,858 67,518 — — — 1,833,007,683 2,644,103 (i) Information relating to the employee share scheme, including details of shares issued under the scheme, is set out in note 27. Recognition and measurement Ordinary share capital is classified as equity and is recognised at the fair value of the consideration received by the Group. Incremental costs directly attributable to the issue of new shares, options or performance rights are shown in equity as a deduction, net of tax, from the proceeds. (b) Cash flow hedge reserve The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is recognised in profit or loss. Balance at 1 July 2021 Movement Gain arising on changes in fair value of hedging instruments designated as cash flow hedges Income tax related to gain recognised in other comprehensive income during the period Transfer out Gain reclassified to profit or loss – hedged item has affected profit or loss Income tax related to amounts reclassified to profit or loss Balance at 30 June 2022 (c) Cost of hedging reserve The cost of hedging reserve includes the effects of the following: Cross currency interest rate swap $'000 — 106,058 (31,817) (64,007) 19,202 29,436 The change in fair value of the foreign currency basis spread of a financial instrument when the foreign currency basis spread of a financial instrument is excluded from the designation of that financial instrument as the hedging instrument (consistent with the Group’s accounting policy to recognise non designated component of foreign currency derivative in equity). 58 59 202 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 203 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 12 Equity and reserves (continued) (c) Cost of hedging reserve (continued) The changes in fair value of the foreign currency basis spread of a financial instrument, in relation to a transaction-related hedged item accumulated in the cost of hedging reserve, are reclassified to profit or loss only when the hedged transaction affects profit or loss, or included as a basis adjustment to the non-financial hedged item. The changes in fair value of foreign currency basis spread of a financial instrument, in relation to a time-period related hedged item accumulated in the cash flow hedging reserve, are amortised to profit or loss on a rational basis over the term of the hedging relationship. As at 30 June 2022, the amounts deferred in cost of hedging reserve are all time-period related. Balance at 1 July 2021 Changes in fair value of the foreign currency basis spread in relation to time period related hedged items during the period Income tax related to changes in fair value of the foreign currency basis spread Amortisation to profit or loss of changes in fair value of the foreign currency basis spread in relation to time- period related hedged items Income tax related to amounts reclassified to profit or loss Balance at 30 June 2022 (d) Other reserves Cross currency interest rate swap $'000 0 923 (277) 1,772 (532) 1,886 30 June 2022 30 June 2021 Notes $'000 $'000 Financial assets at FVOCI reserve Share-based payments reserve Foreign currency translation reserve Movements: Financial assets at FVOCI reserve Balance at the beginning of the year Change in fair value of equity investments Balance at the end of the year Share-based payments reserve Balance at the beginning of the year Share based payments recognised Balance at the end of the year Foreign currency translation reserve Balance at the beginning of the year Currency translation differences arising during the year Balance at the end of the year Nature and purpose of other reserves 16(a) (588) 78,063 22,623 100,098 12,606 (13,194) (588) 66,833 11,230 78,063 (30,033) 52,656 22,623 12,606 66,833 (30,033) 49,406 38,467 (25,861) 12,606 59,002 7,831 66,833 (47,746) 17,713 (30,033) Fair value revaluation reserve The fair value revaluation reserve records fair value changes on equity investments designated at fair value through other comprehensive income. Share-based payments The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to employees, including Non- Executive Directors, Executive Directors, key management personnel and other Group employees as part of their remuneration. Refer to note 27 for further information. Foreign currency translation The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. 12 Equity and reserves (continued) (e) Retained earnings Movements in retained earnings were as follows: Balance at the beginning of the year Dividends provided for or paid Net profit for the period Balance at the end of the year 13 Trade and other receivables Current assets Accrued Revenue Trade receivables GST refundable Prepayments Other receivables Total Current assets Recognition and measurement Accrued Revenue 30 June 2022 30 June 2021 $'000 301,757 (146,628) 323,324 478,453 $'000 229,860 (273,365) 345,262 301,757 30 June 2022 $'000 30 June 2021 $'000 — 123,774 8,596 12,993 8,086 153,449 58,088 21,207 6,172 10,752 19,523 115,742 No accrued revenue was recognized at 30 June 2022 (30 June 2021: $58.1 million). In the prior years, the accrued revenue was measured at fair value through profit or loss, and related to silver and copper sales from the economic interest in Ernest Henry. Post the acquisition of full ownership of Ernest Henry, revenue from gold, silver and copper sales is recognised upon shipment, and accrued revenue based on production is no longer applicable. Trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Trade receivables are generally due for settlement within 30 days and therefore are all classified as current. The majority of the trade receivable balance relates to concentrate sales at Ernest Henry, which are provisionally priced based on fair value during the quotation period until the final settlement price is determined. Fair value is determined using observable market data for estimated metal prices (level 2 valuation methodology). Trade receivables post final settlement are carried at final settlement price less provision for impairment. Other receivables These amounts are measured at amortised cost and generally arise from transactions outside the usual operating activities of the Group. They do not contain impaired assets and are not past due. 60 61 204 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 205 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 14 Trade and other payables Current liabilities Trade creditors and accruals Stamp Duty Other payables Total Current liabilities Recognition and measurement Trade creditors and accruals 30 June 2022 $'000 30 June 2021 $'000 245,869 97,943 63,529 407,341 142,376 — 48,601 190,977 16 Financial assets and financial liabilities (a) Equity Investments at fair value Listed securities - Non-current Tribune Resources Ltd Musgrave Minerals Ltd Emmerson Resources Ltd Riversgold Ltd Navarre Minerals Ltd (i) Other Total Listed securities - Non-current 30 June 2022 30 June 2021 $'000 $'000 42,833 5,318 4,669 408 7,592 20 60,840 51,117 8,031 3,194 550 — 12 62,904 Trade creditors and accruals represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are paid on normal commercial terms. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature. 15 Inventories Current Stores Ore Doré and concentrate Metal in circuit Metal in transit Total current inventories Non-current Ore Total non-current inventories 30 June 2022 $'000 30 June 2021 $'000 117,682 50,736 3,147 78,947 — 250,512 158,674 158,674 82,239 33,555 10,211 39,257 23,296 188,558 113,634 113,634 Ore stockpiles, metal in circuit, gold doré, metal in transit, refined gold bullion and concentrate are physically measured or estimated and valued at the lower of cost and net realisable value. Cost represents the weighted average cost and includes direct costs and an appropriate portion of fixed and variable production overhead expenditure, including depreciation and amortisation, incurred in converting materials into finished goods. If the stockpile is not expected to be processed within 12 months after reporting date, it is included in non-current assets. Materials and supplies are valued at the lower of cost and net realisable value. Any provision for obsolescence is determined by reference to stock items identified. A regular and ongoing review is undertaken to establish the extent of surplus items and a provision is made for any potential loss on their disposal. Accounting estimates and judgements Net realisable value Net realisable value involves significant judgements and estimates in relation to the selling price in the ordinary course of business less estimates costs of completion and estimated costs necessary to make the sale. The net realisable value for inventory stockpile was revalued higher by $3.0 million for the year ended 30 June 2022 (30 June 2021: write-down of $3.2 million). (i) On completion of the Mt Carlton divestment, Evolution received 176,565,396 Navarre shares. 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 Cross currency interest rate swaps Financial assets - non-current Financial liability - current Total cross currency interest rate swaps Recognition and measurement 30 June 2022 $'000 30 June 2021 $'000 113,213 (2,671) 110,542 — — — 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 CIRCS contracts outstanding at the end of the reporting period and their related hedged items. Cross currency interest rate swaps Less than 1 year 1 to 2 years 2 to 5 years 5 years + Average FX strike rate Average (USD) Interest rate Average (AUD) Interest rate Notional Amount (USD) $'000 — — — 750,000 0.7332 3.0500% 3.6105% 62 63 206 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 207 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 16 Financial assets and financial liabilities (continued) (b) Hedging Instrument (continued) Hedging instruments Carrying amount of the hedging instrument assets (liabilities) Change in fair value used for calculating hedge ineffectiveness Hedged items Change in fair value used for calculating hedge ineffectiveness Balance in cash flow hedge reserve for continuing hedges 17 Other non-current assets Non-current assets -Other Contingent consideration attributable to the Edna May Operation Contingent consideration attributable to Tennant Creek Contingent consideration attributable to the Cracow Operation Contingent consideration attributable to the Mt Carlton Operation (i) Other Total other non-current assets Cross Currency Interest Rate Swap $'000 110,542 121,789 (131,116) (44,746) 30 June 2022 30 June 2021 $'000 $'000 23,143 2,790 16,500 13,797 335 56,565 28,629 2,790 16,500 — 530 48,449 (i) Relates to contingent consideration recognised from the divestment of Mt Carlton effective from 1 October 2021. Recognition and measurement Contingent consideration amounts classified as a financial asset are remeasured to fair value with changes in fair value recognised in profit or loss. The fair values for contingent consideration assets are determined using significant unobservable inputs (level 3 valuation methodology) such as expected future production, revenues and costs of the disposed operations. The expected cash flows are discounted using a risk-adjusted market rate which takes into account counterparty credit risk. No fair value gains or losses have been recognised in profit or loss during the year. 18 Other non-current liabilities Non-current liabilities -Other Contingent consideration liability to Newmont Corporation Other Total Non-current liabilities - Other Recognition and measurement 30 June 2022 30 June 2021 $'000 $'000 56,812 14,012 70,824 52,176 16,098 68,274 In accordance with AASB 3 Business Combinations, the Group is required to recognise a contingent consideration liability assumed in a business combination at the acquisition date even if it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. The contingent consideration liability is subsequently remeasured to fair value with changes recognised in profit or loss. The Red Lake purchase consideration includes an additional payment of up to a maximum of US$100 million payable upon the discovery of new resources outside of the agreed base line, which represents a contingent consideration liability. The Group would be required to make an additional payment of US$20.0 million per each one million ounces of new Mineral Resources up to a maximum of five million ounces, discovered outside of the agreed base line and added to the agreed Red Lake resource base, over a 15-year period. At initial recognition, the contingent consideration liability was recorded at AUD $62.3 million on 1 April 2020 and is now carried at AUD $56.8 million at 30 June 2022. The movement in the liability from initial recognition is mainly due to the USD/AUD foreign exchange movement and associated accretion. A fair value assessment of the contingent consideration liability including adjustments for foreign exchange movement will be assessed at each reporting date. The fair value of the contingent consideration liability is determined using significant unobservable inputs (level 3 valuation methodology), being the estimated discovery of additional gold resource. 19 Provisions Current Employee entitlements Total Current provisions Non-current Employee entitlements Rehabilitation provision Other long term provision Total Non-current provisions Total provisions (a) Movements in provisions Movements in each class of provision during the financial year are set out below: 30 June 2022 Carrying amount at the beginning of the year Charged to profit or loss provision recognised Re-measurement of provision Amounts recognised in business combinations* Exchange differences taken to reserve Divestment of Mt Carlton Carrying amount at the end of the year 30 June 2021 Carrying amount at the beginning of the year Charged to profit or loss provision recognised Re-measurement of provision Amounts recognised in business combinations Exchange differences taken to reserve Carrying amount at the end of the year 30 June 2022 30 June 2021 $'000 $'000 73,893 73,893 38,448 38,448 7,030 482,126 423 489,579 563,472 6,743 312,230 423 319,396 357,844 Employee Rehabilitation $'000 $'000 Other $'000 Total $'000 45,191 312,230 423 357,844 4,795 — 39,237 164 (8,464) 80,923 — 78,303 124,164 (5,198) (27,373) 482,126 — — — — 423 4,795 78,303 163,401 (5,034) (35,837) 563,472 45,892 259,630 423 305,945 (701) — — 45,191 43,580 8,266 754 312,230 — — — — 423 — (701) 43,580 8,266 754 357,844 * Amount acquired for Ernest Henry relates to fair value of the remaining interest acquired. Employee benefits The provision for employee benefits represent wages and salaries, annual leave and long service leave entitlements. Rehabilitation The nature of site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and restoration, reclamation and revegetation of affected areas of the site in accordance with the requirements of the mining permits. 64 65 208 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 209 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 19 Provisions (continued) Recognition and measurement Employee benefits Annual leave liabilities are measured at the amounts expected to be paid when the liabilities are settled. Long service leave liabilities are measured at the present value of the estimated future cash outflows for the services provided by employees up to the reporting date. The increase in employee provision in FY22 is largely driven by the acquisition of full ownership of Ernest Henry and the acquisition of Kundana assets. Liabilities not expected to be settled within twelve months are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity that match, as closely as possible to the related liability. Rehabilitation Site restoration costs are recorded at the present value of the estimated future costs of the legal and constructive obligation to rehabilitate locations. When the liability is initially recorded, the present value of the estimated cost is capitalised as part of the carrying value of the related mining assets. Over time, the discounted liability is increased for the change in the present value based on a discount rate that reflects current market assessments. Additional disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred. The unwinding of the effect of discounting the provision is recorded as a finance cost in the statement of profit or loss. The carrying amount is capitalised as part of mine development and amortised on a units of production basis. The increase in rehabilitation provisions in FY22 is largely driven by the acquisition of full ownership of Ernest Henry and the acquisition of Kundana assets. Accounting estimates and judgements Employee benefits Management judgement is required in determining the future probability of employee departures and period of service used in the calculation of long service leave. Rehabilitation Significant estimates and assumptions are required in determining the provision for mine rehabilitation as there are many transactions and other factors that will affect the ultimate liability payable to rehabilitate the mine sites. Factors that will affect this liability include changes in technology, changes in regulations, price increases, changes in timing of cash flows which are based on life of mine plan and changes in discount rates. When these factors change or become known in the future, such differences will impact the mine rehabilitation provision in the period in which they change or become known. 20 Deferred tax balances (a) Recognised deferred tax balances Inventories Equity investments at fair value Exploration and evaluation expenditure Property, plant and equipment Mine development Employee benefits Lease liabilities Provisions Gain from derivative financial instruments recognised in equity Other Deferred tax balances from temporary differences Tax losses carried forward Deferred tax (liabilities)/assets Deferred tax (liabilities)/assets - Australian entities Deferred tax assets/(liabilities) - Canadian entity Deferred tax (liabilities)/assets (b) Movement in deferred tax balances during the year Balance at 1 July 2021 Recognised in profit or loss Recognised in equity Inventories Equity investments at fair value Exploration and evaluation expenditure Property, plant and equipment Mine development Employee benefits Lease liabilities Provisions Share issue costs Tax losses carried forward Gain from derivative financial instruments recognised in equity Other Deferred tax assets/ (liabilities) $'000 31,983 — (49,100) (129,870) (68,543) 10,189 2,030 75,392 — 52,967 — $'000 — — $'000 — 3,146 14,031 52,758 (251,517) 2,322 21 45,934 — — — — — — — — — — — (13,424) — (10,278) 3,865 (71,087) (1,816) (138,267) 30 June 2022 $'000 31,983 3,146 (33,808) (77,600) (386,911) 12,499 2,108 122,226 (13,424) 2,180 (337,601) 136,324 (201,277) (242,593) 41,316 (201,277) Utilised to reduce tax liability $'000 Recognised on business combinations FX translation $'000 $'000 — — — — — — — — — 78,494 — — 78,494 — — — — (62,031) — — — — — — — — 1,261 (488) (4,820) (12) 57 900 — 4,863 — (13,424) — (62,031) 131 1,892 2,180 (201,277) 30 June 2021 $'000 31,983 — (49,100) (129,870) (68,543) 10,189 2,030 75,392 — 3,865 (124,054) 52,967 (71,087) (111,793) 40,706 (71,087) Balance at 30 June 2022 $'000 31,983 3,146 (33,808) (77,600) (386,911) 12,499 2,108 122,226 — 136,324 (c) Unrecognised deferred tax assets The Group has unrecognised available tax losses of $292.7 million as at 30 June 2022 (30 June 2021: $307.5 million). For Canada, $238.6 million are unrecognised temporary differences with $59.7 million as a deferred tax asset. For Australia, $4.1 million tax losses and a deferred tax asset of $1.2 million have not been recognised. 66 67 210 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 211 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 20 Deferred tax balances (continued) Accounting estimates and judgements Judgement is required to determine whether deferred tax assets are recognised in the Balance Sheet. Management assesses the likelihood that the Group will generate sufficient taxable earnings in future periods in order to recognise and utilise those deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and existing tax laws. These assessments require the use of estimates such as commodity prices and operating performance over the life of the assets. To the extent that cash flows and taxable income differ significantly from estimates, the Group's ability to realise the deferred tax assets reporting could be impacted. Accounting policy Deferred tax is accounted for using the balance sheet liability method. Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. Deferred tax liabilities are recognised for taxable temporary differences. Deferred tax assets are recognised for deductible temporary differences, carry- forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised. Deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them: • • Arise from the initial recognition of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Are associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured based on the expected manner of recovery of the carrying value of an asset or liability. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred taxes attributable to amounts recognised directly in equity are also recognised directly in equity. Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Risk and Unrecognised Items This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s financial position and performance as well as providing information on items that are not recognised in the financial statements as they do not (yet) satisfy the recognition criteria. 21 Financial risk management The Group’s activities expose it to a variety of financial risks such as market risk (including interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Risk management is carried out at a corporate level under policies approved by the Board of Directors. Management identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board of Directors approves written principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk, gold price risk and use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Group holds the following financial instruments: Financial Assets Cash and cash equivalents Trade and other receivables at amortized cost Trade and other receivables at FVTPL Equity investments at FVOCI Contingent consideration assets Derivative financial instruments Financial Liabilities Trade and other payables Interest bearing liabilities Contingent consideration liabilities Other Current Liabilities Derivative financial instruments 30 June 2022 30 June 2021 $'000 $'000 572,427 50,683 102,766 60,840 56,565 113,213 956,494 407,341 1,837,946 56,812 197,914 2,671 2,502,684 160,062 43,411 72,331 62,904 48,449 — 387,157 190,977 611,232 52,176 — — 854,385 (a) Derivatives Derivatives are only used for economic hedging purposes and not as speculative investments. During the year, the Group entered into cross currency interest rate swaps to mitigate the US dollar exposure arising from the US Private Placements of US$750.0 million. (30 June 2021: nil). Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group currently only designates derivatives as cash flow hedges (hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions). There are no fair value hedges or net investment hedges, nor are there any derivatives that do not classify for hedge accounting. At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income through the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Profit or Loss and Other Comprehensive Income within other income or other expense. 68 69 212 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 213 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 21 Financial risk management (continued) (a) Derivatives (continued) 21 Financial risk management (continued) (d) Interest rate risk (continued) If both AUD and USD interest rates had been 1% higher and all other variables were held constant, the Group’s other comprehensive income would decrease by $10.2 million mainly as a result of the changes in the fair value of cross currency swaps designated in cash flow hedge relationships. If both AUD and USD interest rates had been 1% lower and all other variables were held constant, the Group's other comprehensive income would increase by $11.1 million mainly as a result of the changes in the fair value of cross currency swaps designated in cash flow hedge relationships. (e) Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when they fall due. Prudent liquidity risk management implies maintaining sufficient cash and term deposits, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. (i) Financing arrangements The Group had access to the following borrowing facilities at the end of the reporting period: Existing debt facilities - Undrawn Expiring within one year Expiring beyond one year 30 June 2022 30 June 2021 $'000 $'000 360,000 — 360,000 — 655,000 655,000 (ii) Maturities of financial liabilities The tables below analyses the Group's financial liabilities into relevant maturity groupings based on their contractual maturities for: • • all non-derivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Amounts accumulated in the cash flow hedge reserve are reclassified to the Statement of Profit or Loss and Other Comprehensive Income in the periods when the hedged item affects profit or loss for instance when the forecast sale that is hedged takes place. When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, fixed assets) the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in profit or loss as depreciation in the case of fixed assets. (b) Market risk Foreign exchange risk (i) Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Group's functional currency. Management has set up a policy to manage their foreign exchange risk against their functional currency and is measured using sensitivity analysis and cash flow forecasting. The Group generally does not hedge foreign exchange risks other than those relating to significant transactions, such as those relating to the 2020 and 2021 acquisitions of Red Lake and Battle North Gold. The Group typically utilises forward exchange contracts to hedge foreign exchange risks for significant transactions. During the year, the Group entered into cross currency interest rate swaps to mitigate the US dollar exposure arising from the US Private Placements of US$750.0 million. As at 30 June 2022, the Group held US$14.4 million (30 June 2021: US$2.5 million) in US dollar currency bank accounts, C$25.6 million in Canadian dollar currency bank account, outstanding receivables of US$90.1 million relating to Ernest Henry (30 June 2021: US$43.7 million). The Group also recognised a USD denominated contingent consideration liability being US$39.1 million (30 June 2021: US$38.4 million as part of the Red Lake purchase consideration (note 18). An increase/decrease in AUD:USD foreign exchange rates of 5% will result in $2.0 million impact to net assets and pre-tax profit. The Group is exposed to translation-related risks arising from the Red Lake and Battle North Gold operations having a functional currency (CAD) different from the group’s presentation currency (AUD). An increase/decrease in AUD:CAD foreign exchange rates of 5% will result in $48.0 million impact to net assets and equity reserves. (ii) Price risk The Group is currently exposed to the risk of fluctuations in prevailing market commodity prices on the gold, silver and copper currently produced from its gold mines and market share prices on the available-for-sale assets. The Group has in place physical gold delivery contracts as at 30 June 2022 covering sales of 100,000 oz (30 June 2021: 200,000 oz) of gold at an average forward price of $1,916 per ounce (30 June 2021: $1,892 per ounce) and oz of gold at an average forward price of C$2,271 (30 June 2021: C$2,272). The Group is also exposed to market share price movements on its equity investments at fair value. Refer to note 16 for further details. (c) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investment securities. The Group has a small but long standing customer base with an exemplary track record of meeting their contractual obligations. In addition the Group only deals with financial institutions that have investment grade or higher credit ratings. For these reason at the balance sheet date there were no significant concentrations of credit risk. The total trade and other receivables outstanding at 30 June 2022 was $153.4 million (30 June 2021: $115.7 million). Cash and cash equivalents at 30 June 2022 were $572.4 million (30 June 2021: $160.1 million). Interest rate risk (d) The Group is exposed to interest rate risk through its long term borrowings comprising $370.0 million on the Term Loan Facility ("Facility B") and $390.0 million on the Term Loan Facility ("Facility E"). As the borrowings are periodically contractually repriced, the Group is exposed to the risk of future changes in market interest rates. Holding all other variables constant, the impact on current year post-tax profit of a 1% increase/decrease in the rate of interest on the long term borrowings of the Group would be a decrease/increase of $5.0 million. The Group is also exposed to interest rate risk arising from the cross currency swap contracts. The sensitivity analyses below have been determined based on the exposure to interest rates for derivatives at the reporting date. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. 70 71 214 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 215 At 30 June 2022 Non-derivatives Trade and other payables Other Current Liabilities Bank loans including interest US Private Placement Lease liabilities Derivatives Derivative instruments – CCIRS: - Inflow - Outflow At 30 June 2021 Non-derivatives Trade and other payables Bank loans including interest Lease liabilities (f) Risk management Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 21 Financial risk management (continued) (e) Liquidity risk (continued) Cash (Inflows)/Outflows Less than 1 year $'000 Between 1 and 2 years $'000 Between 2 and 5 years $'000 Over 5 years $'000 Total contractual cash flows $'000 Carrying amount (assets)/ liabilities $'000 Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 22 Contingent liabilities and contingent assets (a) Contingent assets (i) The Group recognised contingent consideration assets that arose from the past business divestments. Refer to note 17 for further details. Contingent consideration receivable (b) Contingent liabilities The Group had contingent liabilities at 30 June 2022 in respect of: (i) Claims At the date of this report the Group was unaware of any material claims, actual or contemplated. 407,341 200,000 191,453 33,205 13,187 845,186 — — 201,047 33,205 3,575 237,827 — — 414,908 99,615 2,270 516,793 — — — 1,209,025 4,742 407,341 200,000 807,408 1,375,050 23,774 407,341 197,914 760,000 1,088,692 21,848 1,213,767 2,813,573 2,475,795 (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 30 June 2022. The total of these guarantees at 30 June 2022 was $148.0 million with various financial institutions (30 June 2021: $278.0 million). (iii) Red Lake The Group recognised a contingent consideration liability on the purchase consideration of Red Lake. Refer to note 18 for further details. (110,542) 23 Commitments (33,205) 36,932 3,727 (33,205) 37,002 3,797 (99,615) 110,826 11,211 (1,209,025) 1,158,161 (1,375,050) 1,342,921 (50,864) (32,129) (110,542) 190,977 116,708 14,973 322,658 — 274,447 3,620 278,067 — 252,986 3,439 256,425 — — 5,460 5,460 190,977 644,141 27,492 862,610 190,977 620,000 25,102 836,079 (a) Capital and lease commitments (i) Exploration expenditure commitments In order to maintain current rights of tenure to exploration tenements the Group is required to perform minimum exploration work to meet minimum expenditure requirements specified by various government authorities. These obligations are subject to renegotiation when application for a mining lease is made and at various other times. These obligations are not provided for in the financial report and are payable: Within one year Later than one year but not later than five years Later than five years 30 June 2022 $'000 30 June 2021 $'000 11,513 31,032 50,320 92,865 13,787 28,173 36,556 78,516 (ii) Capital commitments The Group has the following capital commitments in relation to capital projects and joint venture requirements at each of the sites. 30 June 2022 30 June 2021 $'000 148,876 148,876 $'000 124,575 124,575 The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt. The Group’s focus has been to raise sufficient funds through equity and debt capital markets to fund capital investment in working capital and exploration and evaluation activities. The Group monitors its liquidity through analysis of regular cash flow forecasts. (i) Loan covenants The lenders have placed covenants over the Group's Senior Secured Revolving and Term Loan Facility based on the leverage ratio and interest coverage ratio and the tangible net worth ratio. The Group has complied with these covenants during the year. Within one year In relation to the Group's contingent consideration liability with Newmont (note 18), Evolution has agreed to an investment of US$100.0 million on existing operations and US$50.0 million in exploration at Red Lake over the first 3 years of ownership. As of the 30 June 2022 Evolution has invested capital of US$367.4 million on existing operations and US$73.4 million on exploration. 72 73 216 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 217 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 23 Commitments (continued) (b) Gold delivery commitments Australia At 30 June 2022 Within one year At 30 June 2021 Within one year Later than one year but not greater than five years Canada At 30 June 2022 Within one year At 30 June 2021 Within one year Later than one year but not greater than five years Gold for physical delivery oz Average contracted sales price $/oz Value of committed sales $'000 100,000 100,000 1,916 1,916 191,600 191,600 100,000 100,000 200,000 1,868 1,916 1,892 186,800 191,600 378,400 Gold for physical delivery oz Average contracted sales price C$/oz Value of committed sales C$'000 40,000 40,000 2,271 2,271 90,840 90,840 40,000 40,000 80,000 2,272 2,271 2,272 90,880 90,840 181,720 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 Citibank N.A ("Citibank"). 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, Citibank 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. 24 Events occurring after the reporting period No matter or circumstance has occurred subsequent to the year end that has significantly affected, or may 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. Subsequent to the end of the period on 1 August 2022, the group announced a material increase in the Ernest Henry Mineral Resource. The new model includes 30,159 metres of new drilling from 119 drill holes for a total aggregate increase of 28% in contained copper and 24% in contained gold, along with upgrades to the Mineral Resource classifications. The update includes all drilling results to 31 May 2022 and the model is depleted for mining to June 30, 2022. The new Mineral Resource estimate is being used to inform the Mine Extension Pre-feasibility study (PFS) due for completion by December 2022. Other Disclosures This section covers additional financial information and mandatory disclosures. 25 Business Combinations Business combinations are accounted for using the acquisition method. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The consideration transferred also includes the fair value of any contingent consideration arrangement. Contingent consideration classified as a financial asset or liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss. Acquisition-related costs are expensed as incurred. a) Battle North Gold Acquisition (i) Summary of acquisition On 19 May 2021, the Group completed the acquisition of Battle North Gold Corporation. Battle North Gold's assets include the Bateman Gold Project, contiguous to Evolution’s Red Lake Operations in Ontario, Canada, and a large gold exploration land package on the Long Canyon gold trend near the Nevada-Utah border in the United States. Purchase price accounting has been finalised. Details of the purchase consideration and the net assets acquired are as follows: Purchase consideration Cash paid The assets and liabilities recognised on a provisional basis as a result of the acquisition are as follows: Net assets acquired Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Mine development and exploration Other non-current assets Right-of-use-assets Deferred tax assets Trade and other payables Employee entitlements Lease liabilities Rehabilitation Provisions Total (ii) Outflow of cash to acquire subsidiary Outflow of cash to acquire subsidiary Cash paid Less: balance acquired Total outflow of cash - investing activities (iii) Acquisition and Integration costs AUD $'000 355,790 355,790 Fair Value $'000 7,345 3,671 337 235,914 41,927 29 3,352 89,241 (16,471) (280) (1,009) (8,266) 355,790 AUD $'000 355,790 (7,345) 348,445 74 75 Integration costs of $0.7 million were incurred for Battle North and included in the statement of profit or loss for the year ended 30 June 2022. A total of $3.9 million acquisition and integration costs was incurred in the year ended 30 June 2021. 218 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 219 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 25 Business Combinations (continued) b) Kundana Operations and EKJV Acquisition (i) Summary of acquisition 25 Business Combinations (continued) b) Kundana Operations and EKJV Acquisition (continued) (iii) Acquisition and Integration costs On 18 August 2021, the Group announced the completion of the acquisition of the Kundana Assets (as defined below) from Northern Star Resources Limited effective from 1 August 2021. Acquisition and integration related costs incurred during the period were $27.3 million including $20.1 million stamp duty. The costs were not directly attributable to the issue of shares and are included in the statement of profit or loss and in operating cash flows in the statement of cash flows for the year ended 30 June 2022, excluding the stamp duty costs which were not paid as at 30 June 2022. The Kundana Assets, located in the Eastern Goldfields of Western Australia, comprise: ▪ 100% interest in the Kundana Operations (“Kundana Operations”) ▪ 51% interest in the East Kundana Joint Venture ("EKJV") ▪ 100% interest in certain tenements comprising the Carbine Project (“Carbine”) ▪ 75% interest in the West Kundana Joint Venture (“WKJV”) (together, the “Acquisition Assets”) The main Kundana Assets are located within 8km of Evolution’s Mungari Operations and represent an important strategic opportunity for Evolution to consolidate the region, optimise the value of its existing infrastructure and capture significant operational synergies. Details of the purchase consideration and the net assets acquired are as follows: Purchase consideration Cash paid Purchase price accounting has been finalised. The assets and liabilities recognised are as follows: Net assets acquired Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Mine development and exploration Right-of-use-assets Deferred tax asset Trade and other payables Employee entitlements Lease liabilities Rehabilitation Provisions Total (ii) Outflow of cash to acquire subsidiary Outflow of cash to acquire subsidiary Cash paid Less: balance acquired Total outflow of cash - investing activities AUD $'000 390,913 390,913 Fair Value $'000 2,450 1,094 13,062 46,970 384,491 6,119 4,696 (23,519) (6,837) (6,334) (31,279) 390,913 AUD $'000 390,913 (2,450) 388,463 c) Ernest Henry Acquisition (i) Summary of acquisition On 6 January 2022, the Group completed the acquisition of the full ownership of Ernest Henry, with effective date being 1 January 2022. Under AASB 3, the acquisition by the Group to acquire the remaining 70% of copper and silver above the 1200mRL, and the 51% rights of Glencore of the copper, silver and gold production rights below the 1200mRL results in a business combination achieved in stages or step acquisition. In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income. The fair vale uplift on the net assets of the Group's existing stake in Ernest Henry (representing 100% of gold and 30% of copper still to be mined above the 1200mRL) has been recognized as a gain of $154.2 million at 30 June 2022. The gain is estimated to be in the range of $100-$200 million upon finalisation of the purchase price allocation. The purchase price allocation and fair value assessment are then applied to 100% of Ernest Henry mine net assets. Details of the purchase consideration for the net assets acquired are as follows: Purchase consideration First tranche of purchase price payment paid on 6 January 2022* Final working capital adjustment paid on 13 May 2022 Discounted value of second purchase price payment due on 6 January 2023 ** Total AUD $'000 800,000 8,998 195,829 1,004,827 * $800.0 million cash paid on 6 January 2022 included $190.4 million tax clear exit payment. ** $195.8 million was $200.0 million discounted to 6 January 2021. Present value at 30 June 2022 was $197.9 million. The provisional fair value of the Group's previously held economic interest in Ernest Henry mine is estimated at $450.7 million. The provisional fair value for the 100% of Ernest Henry mine net assets is then estimated to be $1,455.5 million: Fair Value Estimate Previously held equity interest Acquiring equity interest Total AUD $'000 450,695 1,004,827 1,455,522 At the time the financial statements were authorised for issue, the group had not yet completed and were not required to complete the accounting for the acquisition of Ernest Henry at 30 June 2022. In particular, the fair values of the assets and liabilities, including associated tax balances and tax positions as a result of the acquisition have only been determined provisionally. The Group may recognise an adjustment to these provisional values as a result of completing fair value accounting within 12 months following acquisition date. The provisional completion balance sheet and purchase price accounting are as follows: 76 77 220 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 221 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 25 Business Combinations (continued) c) Ernest Henry Acquisition (continued) (i) Summary of acquisition (continued) Net assets acquired Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Mine development and exploration Trade and other payables Employee entitlements Deferred tax liability Rehabilitation Provisions Total (ii) Outflow of cash to acquire subsidiary Outflow of cash to acquire subsidiary in FY22: First purchase price payment paid in cash Final working capital adjustment Total outflow of cash to acquire subsidiary * Second purchase payment $200.0 million due on 06 Jan 2023 Provisional Fair Value $'000 959 3,932 32,221 313,600 1,382,332 (30,534) (32,400) (66,727) (147,861) 1,455,522 AUD $'000 800,000 8,998 808,998 (iii) Gain from remeasurement of the fair value of the previously held equity interest The gain from remeasurement of the fair value of the previously owned economic interest is preliminarily recognised at $154.2 million at 30 June 2022: The previously held equity interest at acquisition date Fair value of previously held interest Carrying value as at date of acquisition Gain from fair value remeasurement (iv) Acquisition and Integration costs AUD $'000 450,695 296,489 154,206 Acquisition and integration related costs incurred during the period were $94.0 million including $76.8 million stamp duty. The costs were not directly attributable to the issue of shares and are included in the statement of profit or loss and in operating cash flows in the statement of cash flows for the year ended 30 June 2022, excluding the stamp duty costs which were not paid as at 30 June 2022. 25 Business Combinations (continued) c) Ernest Henry Acquisition (continued) (v) Revenue and profit contribution The acquired business contributed revenues of $511.4 million and net profit of $192.0 million to the group for the period from 1 January to 30 June 2022. If the acquisition had occurred on 1 July 2021, consolidated pro-forma revenue and profit for the year ended 30 June 2022 would have been $1,098.3 million and $533.3 million respectively. These amounts have been calculated using the subsidiary’s results and adjusting them for: • differences in the accounting policies between the group and the subsidiary, and • the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and mine development assets had applied from 1 July 2021, together with the consequential tax effects. 26 Related party transactions (a) Parent entities The ultimate parent entity within the Group is Evolution Mining Limited. (b) Subsidiaries Interests in subsidiaries are set out in note 30. (c) Non-executive directors and key management personnel compensation Short-term employee benefits Long Service Leave Post-employment benefits Share-based payments 30 June 2022 30 June 2021 $ $ 6,661,994 126,340 221,433 6,071,308 13,081,075 7,536,526 154,425 206,515 4,381,119 12,278,585 163 - 179 Detailed remuneration disclosures are provided in the remuneration report on pages 19 to 35. Directors fees were paid to Mr Jason Attew and International Mining & Finance Corp, for which Mr James Askew is a Director. Amounts paid in the current financial year period are summarized as follows: Related party transactions International Mining & Finance Corp Jason Attew Total 30 June 2022 * $ 30 June 2021 $ 234,650 191,757 426,407 175,000 — 175,000 * Payment to International Mining & Finance Corp includes $59,650 expense reimbursements and payment to Jason Attew includes $21,990 expense reimbursements. Expenses were mostly related to travel. 78 79 222 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 223 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 27 Share-based payments (a) Types of share based payment plans The Group has two Option and Performance Rights plans in existence: (i) Employee Share Option and Performance Rights Plan (ESOP) The ESOP was established and approved at the Annual General Meeting on 23 November 2010, and amended on 19 October 2011. Shareholder approval was refreshed at the Annual General Meeting on 26 November 2014 and again on 23 November 2017 and permits the Group, at the discretion of the Directors, to grant both Options and Performance Rights over unissued ordinary shares of the Group to eligible Directors and members of staff as specified in the plan rules. (ii) Non-Executive Director Equity Plan (NEDEP) The NEDEP was established and approved at the Annual General Meeting on 24 November 2016. The plan permits the Group, at the discretion of the Directors, to grant NED Share Rights as part of their remuneration. (b) Recognised share based payment expenses 30 June 2022 $'000 30 June 2021 $'000 Expense arising from equity settled share based payment transactions recognised in profit and loss 13,879 11,371 Summary and movement of share based payment plans The following table illustrates the number and movements in, performance rights issued during the year. Outstanding balance at the beginning of the year Performance rights granted during the period Vested during the period Forfeited during the period Outstanding balance at the end of the year The following table illustrates the number and movements in, Share Rights issued during the year. Outstanding balance at the beginning of the year Share Rights granted Vested Lapsed Outstanding balance at the end of the year 2022 Number 2021 Number 12,770,473 13,776,882 8,853,605 (2,598,828) (2,834,733) 5,166,893 (4,019,532) (2,153,770) 16,190,517 12,770,473 2022 Number 2021 Number 68,439 102,184 (68,439) — 102,184 53,845 68,439 (53,845) — 68,439 There were 102,184 Share Rights granted during the 2022 financial year. Provided the NEDs remain directors of the Group, Share Rights will vest and automatically exercise 12 months after the grant date of 26 November 2021 with disposal restrictions attached to these shares. (c) Fair value determination During the year, the Group issued two allotments of performance rights that will vest on 30 June 2024. They have four performance components being a Total Shareholder Return (“TSR”) condition, an absolute TSR condition, a Relative AISC condition and a Growth in Ore Reserves condition. (i) TSR Performance Right Valuation The fair value of the TSR Performance Rights (market-based condition) was estimated at the date of grant using Monte Carlo simulation, taking into account the terms and conditions upon which the awards were granted. (ii) Absolute TSR Performance Right Valuation The Absolute TSR Performance Right Valuation (market-based condition) will be measured as the cumulative annual TSR over the three year period ending 30 June 2024. 27 Share-based payments (continued) (c) Fair value determination (continued) (iii) Relative AISC Relative AISC (non-market-based condition) will be tested against Evolution’s relative ranking of its AISC performance for the 12 month period ending 30 June 2024 (Evolution AISC) compared to the AISC performance ranking of the Peer Group Companies for the same period (Peer Group AISC). (iv) Growth in Ore Reserves per Share The growth in Ore Reserves per share (non-market-based condition) is measured by comparing the Baseline measure of the Ore Reserves as at 31 December 2020, to the Ore Reserves as at 31 December 2023 on a per share basis, with testing to be performed at 30 June 2024. The following tables list the inputs to the models used for the Performance Rights granted for the period: September 2021 Performance Rights issue Number of rights issued Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Fair value at grant date ($) November 2021 Performance Rights issue Number of rights approved in AGM* Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Fair value at grant date ($) February 2022 Performance Rights issue Number of rights issued Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Fair value at grant date ($) Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves 1,781,242 1,781,243 1,781,243 3.94 0.15% 2.80 years 42% 2.19 276,716 4.06 0.84% 2.60 years 42% 2.03 155,444 3.94 1.29% 2.37 years 43% 1.87 3.94 0.15% 2.80 years 42% 1.08 276,715 4.06 0.84% 2.60 years 42% 1.21 155,444 3.94 1.29% 2.37 years 43% 1.11 3.94 0.15% 2.80 years 42% 3.67 276,715 4.06 0.84% 2.60 years 42% 3.8 155,443 3.94 1.29% 2.37 years 43% 3.70 1,781,243 3.94 0.15% 2.80 years 42% 3.67 276,715 4.06 0.84% 2.60 years 42% 3.8 155,443 3.94 1.29% 2.37 years 43% 3.70 * November 2021 performance rights related to the Executive Chair and the Finance Director and Chief Financial Officer. The volatility above was determined with reference to historical volatility but also incorporates factors that management believes will impact the actual volatility of the Group’s shares in future periods. Recognition and measurement The Group provides benefits to its employees (including Key Management Personnel) in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). Vesting conditions that are linked to the price of shares of the Group (market conditions) are taken into account when determining the fair value of equity settled transactions. Other vesting conditions such as service conditions are excluded from the measurement of fair value but are considered in estimating the number of investments that may ultimately vest. The cost of these equity-settled transactions is measured by reference to the fair value of the equity instruments at the date at which they are granted. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled (“the vesting period”). The charge to the Statement of Profit or Loss for the period is the cumulative amount as calculated above less the amounts already recognised in previous periods. There is a corresponding entry to equity. 80 81 224 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 225 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 27 Share-based payments (continued) Accounting estimates and judgements The Group measures the cost of equity-settled transactions with employees by reference to the fair value of equity instruments at the date at which they are granted. The fair value is determined by an external specialist using an option pricing model, based off the assumptions detailed above. 28 Remuneration of auditors During the year the following fees were paid or payable for services provided by the auditor of the parent entity, Evolution Mining Limited, its related network firms and non-related audit firms. Also included are fees paid or payable for non-audit services by non PricewaterhouseCoopers audit firms, although these firms do not provide audit services to Evolution Mining Limited. (a) PricewaterhouseCoopers Audit and other assurance services Audit and review of financial statements Canadian related audit services Other Total remuneration for audit and other services Taxation services Tax compliance services Tax advisory services Total remuneration for taxation services 2022 $ 2021 $ 987,000 — 6,000 993,000 139,770 — 139,770 640,757 79,830 6,560 727,147 77,380 — 77,380 Total remuneration of PricewaterhouseCoopers 1,132,770 804,527 (b) Non-PricewaterhouseCoopers related audit firms Audit and other assurance services Other assurance services Internal audit services Other assurance services Total remuneration for audit and other assurance services Taxation services Tax compliance services Tax advisory services Total remuneration for taxation services 2022 $ 2021 $ 377,763 38,940 416,703 148,613 255,574 404,187 217,541 41,348 258,889 67,557 555,348 622,905 Total remuneration of non-PricewaterhouseCoopers audit firms 820,890 881,794 It is the Group's policy to employ PricewaterhouseCoopers on assignments additional to their statutory audit duties where PricewaterhouseCoopers's expertise and experience with the Group are important. These assignments are principally tax advice and due diligence on acquisitions, or where PricewaterhouseCoopers is awarded assignments on a competitive basis. It is the Group's policy to seek competitive tenders for all major consulting projects. 29 Deed of cross guarantee Evolution Mining Limited and those entities identified in note 30 are parties to a deed of cross guarantee under which each company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and Directors' Report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission. The companies identified above represent a 'closed group' for the purposes of the Class Order, and as there are no other parties to the deed of cross guarantee that are controlled by Evolution Mining Limited, they also represent the 'extended closed group'. The Consolidated Balance Sheet, Consolidated Statement of Profit or Loss and Other Comprehensive Income, and summary of movements in consolidated retained earnings for the year ended 30 June 2022 of the closed group is equal to the Consolidated Balance Sheet, Consolidated Statement of Profit or Loss and Other Comprehensive Income, and Consolidated Statement of Changes in Equity of the Group. 30 Interests in other entities (a) Significant investments in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following principal subsidiaries in accordance with the accounting policy described below: Name of entity Evolution Mining Management Services Pty Ltd Conquest Mining Pty Ltd (i) (ii) Mt Rawdon Operations Pty Ltd (i) (ii) Evolution Mining (Connors Arc) Pty Ltd (i) (ii) Evolution Mining (Cowal) Pty Ltd (i) (ii) Evolution Mining Mungari Pty Ltd (i) (ii) Toledo Holding (Ausco) Pty Ltd (i) Evolution Mining (Mungari East) Pty Ltd (i) (ii) Evolution Mining (Phoenix) Pty Limited (i) (ii) Hayes Mining Pty Ltd (i) Gilt-Edged Mining Pty Limited (v) EKJV Management Pty Ltd (v) Kundana Gold Pty Ltd (v) Toledo Tenement Holdings Pty Ltd (v) Evolution Mining (Aurum 2) Pty Ltd (i) (ii) Evolution Mining Finance Pty Limited Ernest Henry Mining Pty Ltd (vi) Evolution Mining (Canada Holdings) Ltd (ii) Evolution Mining Management Services (Canada) Ltd (ii) Evolution Mining Gold Operations Ltd (ii) Evolution Red Lake Nominee Ltd (ii) Battle North Gold Corporation (ii) (iv) (vii) Rubicon Nevada Corp (iv) BNG Alaska Corp (iv) Country of Incorporation Class of shares Equity holding 2022 % 2021 % Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Canada Canada Canada Canada Canada USA USA Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 100% 100% 0% 100% 100% 100% 100% 100% 100% 100% (i) These subsidiaries have been granted relief from the necessity to prepare financial reports in accordance with Class Order 98/1418 issued by the Australian Securities and Investments Commission. For further information refer to note 29. (ii) These entities are considered to be the material controlled entities of the Group. Their principal activities are identifying, developing and operating gold related projects. (iii) These entities were divested during this financial year. (iv) These entities have been acquired as part of the Battle North Gold acquisition. (v) These entities have been acquired as part of the Kundana acquisition (vi) This entity has been acquired as part of the Ernest Henry acquisition (vii) This entity was amalgamated with Evolution Mining Gold Operations during the financial year. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business. 82 83 226 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 227 Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 31 Parent entity financial information 32 Summary of significant accounting policies The financial information for the parent entity, Evolution Mining Limited has been prepared on the same basis as the consolidated financial statements. (a) Summary financial information The individual financial statements for the parent entity show the following aggregate amounts: 30 June 2022 $'000 30 June 2021 $'000 The financial report also complies with the International Financial Reporting Standards (IFRS) including interpretations as issued by the International Accounting Standards Board (IASB). (a) Basis of preparation This financial report is a general purpose financial report, prepared by a for-profit entity, in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB). Balance sheet Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Net assets Shareholders' equity Issued capital Financial assets at FVOCI reserve Share based payment reserve Cash flow reserve Cost of hedging reserve Other Accumulated losses Total equity Statement of Profit or Loss and Other Comprehensive Income Profit for the year Other comprehensive Income Total comprehensive expense (b) Guarantees entered into by the parent entity The parent entity has provided bank guarantees, as detailed in note 22. (c) Contingent liabilities of the parent entity 521,357 4,296,683 4,818,040 161,289 2,904,584 3,065,873 270,116 1,854,187 2,124,303 128,728 696,404 825,132 2,693,737 2,240,741 2,644,103 892 78,064 29,436 1,886 (77) (60,566) 2,693,737 2,183,727 14,094 66,759 — — — (23,839) 2,240,741 109,901 31,322 141,223 371,529 — 371,529 The financial report has been prepared on a historical cost basis, except for derivative financial instruments and available-for-sale assets which have been measured at fair value. The financial report has been presented in Australian (AU) dollars and all values are rounded to the nearest AU$1,000 (AU$'000) unless otherwise stated. The accounting policies have been consistently applied by all entities included in the Group and are consistent with those applied in the prior year except for changes arising from adoption of new accounting standards which have been separately disclosed. (b) Principles of consolidation The consolidated financial statements include the financial statements of the parent entity, Evolution Mining Limited, and its controlled entities (referred to as 'the Consolidated Entity' or 'the Group' in these financial statements). A list of significant controlled entities (subsidiaries) is presented in note 30. Control is achieved when the Group is exposed, or has the rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one of more of the three elements of control. Specifically the Group controls an investee if, and only if, the Group has all of the following: • • • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); Exposure, or rights, to variable returns from its involvement with the investee; and The ability to use its control over the investee to affect its returns. Non- controlling interests in the results and equity of the entities that are controlled by the Group is shown separately in the Statement of Profit or Loss or Other Comprehensive Income, Balance Sheet and Statement of Changes in Equity respectively. (c) (i) Foreign currency translation Functional and presentation currency The presentation currency of the Group is Australian dollars. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency for Red Lake is Canadian dollars. (ii) Transactions and balances Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. The subsequent payment or receipt of funds related to a transaction is translated at the rate applicable on the date of payment or receipt. Monetary assets and liabilities which are denominated in foreign currencies are re-translated at the rate of exchange ruling at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. All exchange differences in the consolidated financial statements are taken to the Statement of Other Comprehensive Income and accumulated in a reserve. The parent entity did not have any contingent liabilities as at 30 June 2022. For information about guarantees given by the parent entity, please see above. (iii) Translation The assets and liabilities of subsidiaries with functional currency other than Australian dollars (being the presentation currency of the Group) are translated into Australian dollars at the exchange rate at the reporting date and the Statement of Profit or Loss is translated at the average exchange rate for the period. On consolidation, exchange differences arising from the translation of these subsidiaries are recognised in Other Comprehensive Income and accumulated in the foreign currency translation reserve. (d)   Derivative financial instruments and hedging (i) Derivative financial instruments The Group enters into derivative financial instruments (fixed to fixed cross currency interest rate swap contracts) to manage its exposure to foreign exchange rate risk. Derivatives are recognised initially at fair value and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. 84 85 228 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 229 Notes to the consolidated financial statements (continued) Directors’ declaration Notes to the consolidated financial statements Evolution Mining Limited (continued) Notes to the Consolidated Financial Statements For the year ended 30 June 2022 (continued) 32 Summary of significant accounting policies (continued) (d)   Derivative financial instruments and hedging (continued) (i) Derivative financial instruments (continued) A derivative with a positive fair value is recognised as financial asset whereas a derivative with a negative fair value is recognised as a financial liability. Derivatives are not offset in the financial statements unless the Group has both legal right and intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. (ii) Hedge Accounting The Group designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in cash flow hedges. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements: a. b. c. there is an economic relationship between the hedged item and the hedging instrument; the effect of credit risk does not dominate the value changes that result from that economic relationship; and the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Group adjusts the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again. Foreign currency basis spread of a financial instrument is excluded from the designation of that financial instrument as the hedging instrument, the non- designated foreign currency basis spread component is recognised in the cost of hedging reserve and amortised to profit or loss on a rational basis. (iii) Cash flow hedges The effective portion of changes in the fair value of derivative and other qualifying hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the ‘other gains and losses’ line item. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised item. If the Group expects that some or all of the loss accumulated in the cash flow hedging reserve will not be recovered in the future, that amount is immediately reclassified to profit or loss. (iv) Discontinuation of hedge accounting The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. For cash flow hedges, any gain or loss recognised in other comprehensive income and accumulated in cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in cash flow hedge reserve is reclassified immediately to profit or loss. For fair value hedges, the fair value adjustment to the carrying amount of the hedged item arising from the hedge risk is amortised to profit or loss from that date. 33 New accounting standards Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2022 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. Directors’ declaration Evolution Mining Limited Directors' Declaration 30 June 2022 In the Directors' opinion: (a) (b) (c) the financial statements and notes set out on pages 39 to 86 are in accordance with the Corporations Act 2001, including: 183 to 230 (i) (ii) complying with Accounting Standard, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and giving a true and fair view of the consolidated entity's financial position as at 30 June 2022 and of its performance for the year ended on that date, and there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable. at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group or liabilities to which they are, or may become, subject by virtue identified in note 29 will be able to meet any obligations of the deed of cross guarantee described in note 29. Note 32(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of Directors. Jacob (Jake) Klein Executive Chair Sydney Andrea Hall Chair of the Audit Committee 86 87 230 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 231 Independent auditor’s report Independent auditor’s report Independent auditor’s report Independent auditor’s report (continued) 232 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 233 Independent auditor’s report Independent auditor’s report Independent auditor’s report (continued) Independent auditor’s report (continued) 234 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 235 Independent auditor’s report Independent auditor’s report Independent auditor’s report (continued) Independent auditor’s report (continued) 236 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 237 Independent auditor’s report Independent auditor’s report Independent auditor’s report (continued) Independent auditor’s report (continued) 163 to 179 238 Annual Report | evolutionmining.com Annual Report | www.evolutionmining.com.au 239 Shareholder information Shareholder information Shareholder information Shareholder information Capital (as at 19 September 2022) Share Capital Ordinary shareholders Shareholdings with less than a marketable parcel of $500 worth of ordinary shares Market price (closing price on the Australian Securities Exchange as at 16 September 2022) 1,834,914,135 36,182 3,428 A$2.03 Distribution of Fully Paid Shares (as at 16 September 2022) Range 100,001 and Over 10,001 to 100,000 5,001 to 10,000 1,001 to 5,000 1 to 1,000 Total 1,624,324,235 88.52 130,994,467 36,363,987 37,601,115 5,630,331 7.14 1.98 2.05 0.31 1,834,914,135 100.00 287 5,153 4,861 14,176 11,705 36,182 3,428 0.79 14.24 13.43 39.18 32.35 100.00 9.47 Unmarketable Parcels 456,078 0.02 Substantial Shareholders (as at 31 August 2022) Securities % No. of Holders % 6 BNP PARIBAS NOMINEES PTY LTD 7 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 12,009,996 8 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM 10,606,957 Twenty Largest Shareholders (as at 16 September 2022) Fully Paid Ordinary Shares Current balance Issued capital % 1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 781,828,549 2 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 413,215,100 3 CITICORP NOMINEES PTY LIMITED 4 BNP PARIBAS NOMS PTY LTD 5 NATIONAL NOMINEES LIMITED 9 ROXI PTY LIMITED 10 CITICORP NOMINEES PTY LIMITED 11 EQUITY PLAN SERVICES PTY LTD 12 LUJETA PTY LTD 13 PACIFIC CUSTODIANS PTY LIMITED 14 MUTUAL TRUST PTY LTD 15 PM1942 PTY LTD 153,792,627 66,401,230 47,286,818 17,917,253 8,983,784 6,966,733 5,432,067 4,507,692 4,361,569 3,428,217 3,137,500 2,827,490 42.61 22.52 8.38 3.62 2.58 0.98 0.65 0.58 0.49 0.38 0.30 0.25 0.24 0.19 0.17 0.15 0.15 0.14 0.14 0.14 84.64 15.36 Fully Paid Ordinary Shares 16 BNP PARIBAS NOMINEES PTY LTD Australian Super Van Eck Global Total Number 178,278,481 176,845,572 355,124,053 % 9.72 9.64 19.36 The disclosed number of ordinary shares held by substantial shareholders may not be equal to the actual number of ordinary shares held as at 31 August 2022 as only movements of at least 1% are required to be notified to the Australian Securities Exchange. 17 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 2,730,938 18 NETWEALTH INVESTMENTS LIMITED 19 NETWEALTH INVESTMENTS LIMITED 20 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 2,624,593 2,524,640 2,488,058 Total 1,553,071,811 Balance of register 281,842,324 Grand total 1,834,914,135 100.00 1.5 Share Buy-Backs There is no current on-market buy-back scheme. 2. Other Information Evolution Mining Limited, incorporated and domiciled in Australia, is a public listed Company limited by Shares. 240 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 241 Shareholder information Corporate information ABN 74 084 669 036 Board of Directors Jake Klein Executive Chair Lawrie Conway Finance Director and CFO Jim Askew Non-executive Director Tommy McKeith Non-executive Director Andrea Hall Non-executive Director Jason Attew Lead Independent Director Vicky Binns Non-executive Director Peter Smith Non-executive Director Company Secretary Evan Elstein Registered and principal office Level 24, 175 Liverpool Street Sydney NSW 2000 T: +61 2 9696 2900 F: +61 2 9696 2901 Share Register Link Market Services Level 12, 680 George Street SYDNEY NSW 2000 T: +61 1300 554 474 F: +61 2 9287 0303 Auditor PricewaterhouseCoopers One International Towers Sydney Watermans Quay BARANGAROO NSW 2000 T: +61 2 8266 0000 F: +61 2 8266 9999 Website www.evolutionmining.com.au Stock Exchange Listing Evolution Mining Limited (EVN) shares are listed on the Australian Securities Exchange 242 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 243 Mungari operations, Western Australia  Level 24, 175 Liverpool Street SYDNEY NSW 2000  +61 2 9696 2900  +61 2 9696 2901  www.evolutionmining.com.au 

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