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Annual Report 2023

Plain-text annual report

“Inspired people creating a premier global gold company” About Evolution Mining Our Purpose To deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way. Our Vision Inspired people creating a premier global gold company. Our Values Our values guide our behaviours and the decisions we make in the workplace every day: Safety, Excellence, Accountability and Respect. Safety Think before we act, every job, everyday 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 Evolution Mining (‘Evolution’ or ‘the Company’) is a leading, globally relevant gold mining company formed in November 2011. Headquartered in Sydney, New South Wales, Evolution is listed on the Australian Securities Exchange (ASX:EVN). Evolution operates five wholly-owned mines in Australia and Canada and in Financial Year 2023 (FY23) produced 651,155 ounces of gold at an All-in Sustaining Cost of $1,450 per ounce – continuing to place Evolution as one of the lowest cost global producers: • Cowal in New South Wales on the lands of the Wiradjuri People • Ernest Henry in Queensland on the lands of the 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 Marlinyu Ghoorlie People and other knowledge holders • Mt Rawdon in Queensland located within the traditional lands of the Bailai Gurang, Gooreng Gooreng, and Taribelang Bunda People Gold production guidance in Financial Year 2024 (FY24) is 770,000 ounces (+/- 5%) at an All-in Sustaining Cost of A$1,370 per ounce (+/- 5%). Acknowledgements We acknowledge the Traditional Owners of the land on which we operate and pay our respects to Elders past, present, and emerging, for they hold the memories, the traditions, the culture and the hopes for Aboriginal people. We acknowledge the elders for their resilience to pave the way for the generations after and we acknowledge those who continue to educate and empower to maintain and protect all aspects of Aboriginal heritage and culture. Our Strategy Since the formation of Evolution in November 2011, we have had a consistent strategy to create a business that prospers through the cycle: • Create sustainable value for all stakeholders in an environmentally and socially responsible way • Driving a high performing culture with values and reputation as non-negotiables • Being willing to take appropriate geological, operational and financial risks • Building a portfolio of up to 8 assets in Tier 1 jurisdictions generating superior returns • Having financial discipline centred around margin and appropriate capital returns In FY23, 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 resulted in significant mine life extensions at two of our assets: • Mine Extension at Ernest Henry to at least 2040 – a cornerstone asset • Plant Expansion to 4.2Mtpa (from 2Mtpa) at Mungari enabling mining to at least 2038 – transforming into a cornerstone asset Progress was made on the Open Pit Continuation Project at Cowal to extend open pit mining by 10 years and total mine life by two years to 2042, and a milestone reached at Red Lake with the establishment of the new Upper Campbell mining front via the Campbell Young Dickenson (CYD) decline which decouples delivery from shaft operations and provides access to the highest-grade reserves at Red Lake. The Mt Rawdon Pumped Hydro (MRPH) Project Feasibility Study advanced. This is a unique renewable energy storage project which will transform a 25-year-old gold mine nearing the end of its life as a gold producer into a large, multi-generational, renewable infrastructure asset. With capital spend trending lower, we have a solid pipeline of quality projects to drive organic growth. 1 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 2 Our Locations Our operations are located solely in Tier 1 jurisdictions Red Lake Ernest Henry Australia New South Wales • Cowal gold operation Mt Rawdon Queensland • Ernest Henry copper-gold operation • Mt Rawdon gold operation Western Australia • Mungari gold operation Canada Ontario • Red Lake gold operation Mungari Cowal 3 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 4 Contents FY23 Year in Review Executive Chair’s Letter Managing Director and CEO’s Letter Board of Directors Operational Performance Discovery 9 13 15 17 23 39 FY23 ESG Performance Data FY23 Sustainability Case Studies Mineral Resources and Ore Reserves FY23 Sustainability Report Governance Health, Safety and Wellbeing People and Culture Community Environment Glossary Annual Financial Report 45 59 87 105 119 127 143 179 183 About this Report This Annual Report (Report) is a summary of Evolution’s and its subsidiaries’ operations, activities and financial position as at 30 June 2023. Currency is expressed in Australian dollars unless otherwise stated. This Report includes Evolution’s Sustainability Report. Current and previous reports are available on the Company’s website at www.evolutionmining.com.au. 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 Sustainability 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 the National Greenhouse and Energy Reporting Act 2007 (NGER Act) and undertaken on Canada’s National Inventory Report (NIR). Technical experts have also been engaged to complete a range of internal and third party audit processes on environmental and social aspects. See the Sustainability Report within this document for information on Sustainability reporting frameworks, boundary and scope. Evolution’s 2023 Corporate Governance Statement is available to view at www.evolutionmining.com.au/corporate-governance This Report has been approved for release by the Board of Directors. Forward Looking Statement This Report prepared by Evolution Mining Limited (or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. 5 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 6 FY23 Year in Review Operational and Financial 651koz Gold production 47kt $944M Copper production Operating mine cash flow AISC $1,450/oz1 (US$1,033/oz)2 Sustainability Net Zero Commitment Clear pathway to meet our emissions reduction commitment of 30% by 2030 through Cowal long-term power supply agreement3 $164M Statutory net profit after tax $92M Dividends paid 11% Reduction in absolute emissions against FY20 baseline4 $2.5B Contribution to the Australian and Canadian economies6 19% 18.4% Decrease in TRIF5 to 8.6 Female workers 6% Indigenous employee representation $261M Contribution to local and regional businesses and organisations including $230M in direct spend with local organisations Mineral Resources and Ore Reserves Dec 2022 Mineral Resources7 30.3Moz Contained gold 2% increase 1.8Mt Contained copper 22% increase Dec 2022 Ore Reserves7 10.0Moz Contained gold 4% decrease 661kt Contained copper 3% increase 1 All-in Sustaining Cost includes C1 cash cost, plus royalties, sustaining capital, general corporate and administration expenses on a per ounce sold basis 2 Calculated using an average AUD:USD exchange rate of 0.7124 for the 12 months of FY23 3 Net Zero future commitment of 30% emissions reduction by 2030 and net zero emissions by 2050. Emissions targets are related to Scope 1 and Scope 2 only 4 Calculated using market-based methodology and third-party validated. Data is an update to previously reported information 5 TRIF: The frequency of total recordable injuries per million hours worked. Results are based on 12-month moving average 6 Economic contributions include supplier payments, wages, dividend payments, interest, taxes, royalties, community 7 As at 31 December 2022 and compared to the 31 December 2021 estimates. Excludes the June 2023 Ernest Henry Mineral Resource and Ore Reserve updates as the comparison is provided year-on-year at 31 December. See the Mineral Resource and Ore Reserve section of this Report for further information 7 Annual Report | www.evolutionmining.com.au Ernest Henry plant at sunrise by Craig Andrew Annual Report | www.evolutionmining.com.au 8 FY23 Year in Review Executing our growth strategy in FY23 – positioning the business to deliver higher returns, stronger cash flow and continued resource growth in FY24 Q2 Q1 Red Lake First stope ore mined from the new Upper Campbell mine at Red Lake, new tertiary crusher installed and commissioned in Campbell process plant Mt Rawdon Mt Rawdon Pumped Hydro Project declared a Coordinated Project by the Queensland Government 19th consecutive dividend paid to shareholders ($55M) Ernest Henry Ernest Henry Mine Extension Pre-Feasibility Study (PFS) completed and surface drilling identifying mineralisation outside the current footprint both within, and below the PFS area Mungari Mungari Future Growth Project Feasibility Study (FS) completed Cowal Competitive long-term power contract secured with a growing renewable component at Cowal provides a clear pathway to reducing our energy emissions by 30% by 2023 Q3 Cowal Underground production ahead of schedule and within budget, and record monthly gold production of 29,944oz achieved Group Mineral Resources estimated to contain 30.3Moz ounces of gold (+2%) and 1.8Mt of copper (+22%) Ore Reserves estimated to contain 10Moz of gold (-4%) and 661kt copper (+3%) 20th consecutive dividend paid to shareholders (~$37M) Q4 Ernest Henry Ernest Henry Mine Extension PFS outcomes announced: mine life extended to 2040 – Ore Reserves doubled Mungari Mungari Future Growth FS outcomes announced and 4.2Mtpa plant expansion approved Cowal Lodgement of Environmental Impact Statement (EIS) for the Cowal Open Pit Continuation Project, which seeks to extend open pit operations by ~10 years to 2036 and extend total mine life by ~2 years to 2042 Group Restructured debt maturity profile to increase balance sheet flexibility and align with longer mine life 9 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 10 Evolution is the third largest ASX listed gold producer in Australia and one of the lowest cost gold producers globally. Together we are making a real difference The intrinsic value of gold has long been recognised, going back as far as the ancient Egyptian, Roman and Greek civilisations. First used as a form of currency, and then to make jewellery, it soon became synonymous with individual wealth. Today, gold is a long-term, resilient asset class that is considered by many to be a safe-haven hedge against inflationary pressures. Over the past thirty years the gold price has increased more than six-fold, from around US$330/oz to US$1,814/oz by the end of 2022 - with a 5.8% annualised return over this period, gold has outperformed cash, bonds and commodities.8 Our passion for gold extends to the significant value that it creates for our stakeholders including the communities in which we operate, and to the considerable impact that gold is having globally on technological advancements in healthcare, renewable energy and environmental solutions. For example, gold nanoparticles are being used to improve the efficiency of solar cells and are also being used in environmental solutions helping to break down groundwater contaminants in industrialised areas around the world.9  Evolution has been making a difference by supporting innovative uses of gold for medical research. We committed $1 million in 2019 over three years to support the University of Queensland’s Australian Institute of Bioengineering and Nanotechnology to develop the Immuno-Storm chip - a novel diagnostic device with gold nanoparticles that tests blood to rapidly detect cancer cells in the human body enabling early diagnosis for all cancer types and improved survival rates. The research scope was expanded, and the outcomes have exceeded expectations and demonstrated further applicability and accessibility of gold-based products in medicine in diagnosing long-term impacts of these chronic diseases, as well as applicability in psychological, auto-immune, neurological and aging areas. We are also making a difference through transitioning our 22-year-old mine at Mt Rawdon into an exciting, multi-generational pumped hydro power station – an international showcase for transitioning from end-of-life mining to a commercially attractive renewable energy infrastructure asset. The project will contribute to Queensland’s 50% emissions reduction target by 2030. Read more here https://mtrawdonhydro.com.au/ See our Sustainability Reports and case studies available on our website for more examples of how we share the value of gold mining. 8 Based on the London Bullion Market Association Gold Price PM in USD 9 Gold Industry Group: https://www.goldindustrygroup.com.au/facts-figures Annual Report | www.evolutionmining.com.au 12 Executive Chair’s Letter On behalf of the Board of Directors of Evolution Mining Limited, I am pleased to share with you the Company’s 2023 Annual Report. As in previous years, we have incorporated our Sustainability Report, which highlights the measurable progress we have made in generating value to our stakeholders as we build on our key strategic pillars. These pillars involve assembling a great team and driving a high performing culture with values and reputation as non-negotiables, focusing exclusively on Tier 1 jurisdictions, operating a concentrated portfolio of high-quality assets and a willingness to make courageous long-term decisions that improve the quality of our portfolio of assets. We judge the quality of our portfolio on several critical key metrics: mine life, operating cost and margin. By understanding and investing in our assets we seek to prosper through the cycle and create sustainable value for all stakeholders in an environmentally and socially responsible way. Evolution continues to be recognised for its Sustainability performance, achieving a sector leading rating in Sustainalytics, ISS and MSCI ESG Ratings assessments, as well as being one of three gold companies recognised in the Dow Jones Sustainability Index Australia. I am proud of the positive gains we have made towards our Sustainability goals during the year. In FY23 we continued to make significant capital investment in our portfolio, setting the business up for a period of reduced costs, higher production and lower capital intensity. Major investments at Cowal and Red Lake will be completed and commissioned in FY24, and we currently have only one major capital project scheduled across FY24 and FY25, being the $250 million plant expansion at Mungari which will extend its mine life by 15 years to 2038, making Mungari a cornerstone asset for Evolution. Our organic growth pipeline remains strong with Board approval for the Ernest Henry Mine Extension Project to progress to the Feasibility Study phase received in the period. This approval includes a commitment to a $15 million Feasibility Study and $7.5 million drilling program to deliver a further significant mine life extension at our lowest cost and highest margin asset. The transition of Mt Rawdon from a 22 year old gold mine into an exciting renewable energy option play continues to build momentum. The Mt Rawdon Pumped Hydro Project (MRPH) Feasibility Study remains on track to be completed in the June quarter of FY24 and will have the capacity to power 2 million homes during peak periods. Anticipated to be operational in 2030, it is favourably located 22km from the main transmission lines to Brisbane and Gladstone and is the lowest risk and cost of capacity pumped hydro project in Australia. Against a backdrop of numerous interest rate rises and with inflation still above most central banks’ target of ~2%, the case for gold remains strong. Debt in the United States continued to climb at an unprecedented rate during the period and worrying signs have recently started to emerge in the Chinese economy. As geopolitical tensions remained elevated, the buying of gold by the world’s central banks also reached near historical levels in FY23. The outlook for copper also continued to improve as investment in electrification to support decarbonisation accelerated. As one of the world’s lowest cost gold producers, coupled with significant copper output, Evolution is uniquely positioned to benefit from the current economic environment. Finally, I wish to sincerely thank our people for all their hard work during the year and extend my appreciation to our shareholders for their continued support. As we move forward into FY24, I am confident that Evolution is on a path to deliver superior returns and live up to our goal of being an organisation of “inspired people creating a premier gold company.” Yours faithfully Jake Klein Executive Chair Our people remain Evolution’s greatest asset. We want working at Evolution to be a highlight of our people’s career. Ensuring we have initiatives in place to support the health and wellbeing of our employees continues to be a priority for the Company. As a business that seeks to prosper through the cycle with a margin-over-ounces mentality, the Board and I are proud that despite the many external and internal challenges we confronted in FY23, we were able to declare two more dividends during FY23 to take our record to 21 consecutive dividends, returning over $1.1 billion to shareholders since 2013. Our Board remained stable throughout the year and I would like to acknowledge the efforts of all of our Directors. We were pleased to promote Lawrie Conway from Chief Financial Officer to the newly created role of Managing Director and CEO which he took up from 1 January 2023. The new organisational structure will support the next chapter of the Company’s growth and our focus on operational delivery. I would also like to recognise former Non-Executive Director, Cobb Johnstone who passed away during the year after a long battle with illness. Cobb served on the Board from 2013 to 2020 and is missed by all of us at Evolution. 13 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 14 Managing Director and CEO’s Letter In the 2023 financial year (FY23) we directed significant resources to ensuring our operations are well-placed to deliver on our strategic objectives for FY24 and beyond. This work was required since we have an enviable suite of organic growth projects within our portfolio that will allow us to deliver sustainable high value returns for our shareholders for many years. As an organisation, we remain 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. In FY23, overall health and safety improved across the Group, with delivery on or better than target across all sustainability targets. The Total Recordable Frequency (TRIF) reduced by 19% against FY22 to 8.6 as at June 2023. During the period, we produced over 650 thousand ounces of gold at an All-in Sustaining Cost (AISC) of $1,450 per ounce. This translated to an EBITDA margin of 38% and EBITDA of $844.5 million. Operating mine cash flow of $944.1 million, at a very healthy $1,450 per ounce, generated an underlying net profit after income tax of $205.0 million, following significant capital investment across our portfolio. Our results were in part impacted by several external events, most notably the heavy rainfall event at Ernest Henry in March this year. Our team at site did a tremendous job in minimising the impact and I applaud their efforts in returning the asset to normal operations at the end of FY23. Despite this short-term setback, I am very excited about the long-term future of Ernest Henry. Following completion of the Mine Extension Pre-Feasibility Study in June 2023, Ernest Henry’s mine life was extended to 2040. This included a doubling of the Ore Reserve with contained copper increasing 103% and contained gold increasing 124%, along with a commitment to a $15 million Feasibility Study and a $7.5 million drilling program to further study the extension. We were excited to announce a further increase to Ernest Henry’s Mineral Resource at 30 June 2023, with tonnes increasing by 7%, contained gold increasing by 3% and contained copper increasing by 5%, net of mining depletion, compared to 31 December 2022 Mineral Resource estimate. Cowal produced a record 276,314 ounces of gold at an AISC of $1,138 per ounce in FY23. This was in part due to the site achieving a major milestone during the second half of the year when the first mining and processing of stopes from the new underground mine delivered 475,000 tonnes of underground ore at a grade of 2.2 grams per tonne. The underground mine will progress to full commercial production levels early in the second half of FY24. The Feasibility Study for the Open Pit Continuation Project also continues to progress to schedule. This project will extend open pit mining by ~10 years and Cowal’s mine life by ~2 years to 2042. In June 2023, the Board approved the execution of a plant expansion at Mungari from 2 million tonnes per annum to 4.2 million tonnes per annum. Targeting 200,000 ounces for the life of the mine, this $250 million investment is expected to reduce Mungari’s AISC by 18% and extend the mine life to 2038. We are conscious of the inflationary cost environment we are operating in and have confidence in our ability to deliver to budget. Mungari had a strong operational performance in FY23, producing 135,592 ounces at an AISC of $2,083 per ounce. Red Lake achieved several milestones during the period, positioning the site for significant improvement in FY24. Lateral development for both the June 2023 quarter and the full year was a record under Evolution ownership. Delivery of two jumbo drill rigs in January enabled full mechanical bolting at Cochenour and Upper Campbell, contributing to the planned upgrading of the mobile fleet during the year. In addition, the completion of the Red Lake workforce review, aligned to two of our values of “Excellence and Accountability” is supporting the delivery of our FY24 production guidance. At the end of FY23, we successfully restructured the Company’s debt maturity profile to increase balance sheet flexibility. This restructure involved a US$200 million (~A$300 million) US Private Placement (USPP) and the replacement of the existing $590 million term loan facilities with a reduced $300 million four-year term loan facility. Subsequent to the end of the period in July 2023, the Company’s investment grade credit was also reaffirmed. The result of this restructure enables us to maintain a very strong balance sheet without an increase to the Company’s overall debt level. Importantly, we remain well placed to take advantage of continued strength in the gold spot price with 95% of production unhedged. I would like to thank our finance team, led by new Chief Financial Officer, Barrie van der Merwe for their efforts in this successful restructure. Looking ahead, we have a quality portfolio of assets in Tier 1 jurisdictions with key projects positioned to generate organic growth and sustainable returns for our shareholders. We have a strong focus on operational performance, and I am confident in the dedication and commitment of our people to deliver on our strategic objectives in FY24. Finally, I would like to thank all our people for their efforts during the year, and for embodying our values and high-performing culture. FY23 was not without its challenges, and the ongoing commitment of our people to provide support whenever and wherever it is required never ceases to amaze me. I would also like to express my appreciation to our shareholders for their continued support. We look forward to sharing our progress with you over the coming year ahead. Yours faithfully Lawrie Conway Managing Director and Chief Executive Officer 15 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 16 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 was appointed as Executive Chair in October 2011, following the merger of Conquest Mining Limited and Catalpa Resources Limited. 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 managed 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 James (Jim) Askew Thomas (Tommy) McKeith Andrea Hall B Bus, CPA, GAICD BEng (Mining), MEngSc, FAusIMM, MSME (AIME) BSc (Hons), GradDip Eng (Mining), MBA BCom, FCA, M. App Fin, GAICD Jason Attew BSc, MBA Managing Director and Chief Executive Officer Mr. Conway was appointed Chief Executive Officer and Managing Director on 1 January 2023. His previous positions at Evolution Mining Limited was Finance Director and Chief Financial Officer (1 August 2014) and before that a Non- executive Director. Mr. Conway has more than 33 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. His position immediately prior to joining Evolution was that 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. Most recently, Mr Conway served as a non-executive director and chair of the audit committee for Aurelia Metals Limited until his retirement effective 31 August 2022. Mr. Conway is Deputy Chair of the NSW Minerals Council. Non-Executive Director Non-Executive Director Non-Executive Director 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 and is currently the Chairman of Syrah Resources Limited (since October 2014), a company with operations in Mozambique and in the USA. Mr Askew has recently retired from Endeavour Mining Corporation on 10th May 2023. Mr. Askew is a Member of the Nomination and Remuneration Committee and a Member of the Risk and Sustainability Committee. 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 Chairman of Arrow Minerals Limited and is Non- Executive Director of Clean Tech Lithium Plc. Most recently, Mr. McKeith served as a Non-executive Chair of Genesis Minerals Limited until his retirement effective 30 September 2022. Mr. McKeith is Chair of the Nomination and Remuneration Committee. Ms. Hall is an experienced Non- executive Director who currently sits on the Board of ASX listed Perenti Group and is Chair of the Audit and Risk Committee. Ms. Hall is also a Non-executive Director of Insurance Commission of Western Australia, AFL Fremantle Football Club and also Core Lithium Ltd (from 18 May 2023), and Superannuation Corporation (from 1 July 2023). Ms. Hall retired from ASX-listed Pioneer Credit Limited on 24th February 2023. 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 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. He is the President, Chief Executive Officer and Director of Liberty Gold Corp. He has previously served as President and CEO of Gold Standard Ventures Corporation and 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. He 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 and a member of both the Audit Committee and the Nomination and Remuneration Committee. 17 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 18 Board of Directors Peter Smith, MBA FAusIMM, GAICD Non- Executive Director Mr. Smith is a senior executive with over 46 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 (2011- 2013), Commissioner of PT NHM Indonesia and Executive Director and Chairman of Western Metals Limited and is currently Non- Executive Director of VP Minerals Limited. Mr. Smith is Chair 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. She was also co-Founder and Chair of Women in Mining and Resources Sg (WIMAR Sg). Prior to joining BHP, Ms Binns held Board and senior management roles at Merrill Lynch Australia including Managing Director and Head of Australian Research, Head of Global Mining, Metals and Steel Research, and Head of Australian Mining Research. Ms. Binns is currently a Non- executive Director of ASX-listed companies Sims Limited and Cooper Energy, as well as the Not For Profit Carbon Market Institute which assists industry in the transition to net zero emissions. Ms Binns is also a Member of the Advisory Council for JP Morgan in Australia and NZ. Ms. Binns is a Member of the Audit Committee. Evolution’s Board of Directors from left to right: Peter Smith, Thomas (Tommy) McKeith, Victoria (Vicky) Binns, Jason Attew, Jacob (Jake) Klein, Lawrence (Lawrie) Conway, Andrea Hall and James (Jim) Askew 19 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 20 12 Years of Evolution Executing our Growth Strategy 2011 Evolution formed through the merger of Conquest Mining and Catalpa Resources and the concurrent acquisition of Newcrest Mining’s Cracow and Mt Rawdon gold mines 2012 Mineral Resources 6.8Moz and Ore Reserves 3.1Moz contained gold 2013 Mt Carlton first concentrate produced (commissioned) 2015 2017 Mineral Resources 14Moz and Ore Reserves 5.9Moz contained gold Acquisition of cornerstone assets Cowal and Mungari 2016 Mineral Resources 14.2Moz and Ore Reserves 7Moz contained gold Acquisition of economic interest in Ernest Henry Pajingo divestment due to lack of strategic fit in the portfolio, reducing Group AISC by $15/oz Edna May divestment due to low margins10 compared with the rest of the Group 2018 Evolution’s Inaugural Sustainability Report published 2019 Evolution’s inaugural inclusion in Dow Jones Sustainability Indices (Australia) – one of only two gold companies 2020 Mineral Resources 26.4Moz contained gold and 904kt contained copper Ore Reserves 9.9Moz contained gold and 505kt contained copper Cracow divestment in line with EVN strategy lowering AISC by $20/oz11 Completion of acquisition of the Red Lake complex in Ontario, Canada 2021 Mineral Resources 29.6Moz contained gold and 1.44Mt contained copper Ore Reserves 10.3Moz contained gold and 640kt contained copper Mt Carlton divestment - reducing Group AISC by $25/oz Acquisition of Kundana assets elevates Mungari to cornerstone asset and consolidates regional resources 2022 2023 Mineral Resources 30.3Moz contained gold and 1.8Mt contained copper12 Ore Reserves 10.0Moz contained gold and 661kt contained copper12 Acquisition of 100% of Ernest Henry – delivering an immediate and material increase to cash flow generation Mt Rawdon Pumped Hydro Project declared a Coordinated Project by the Queensland Government Board approved capital investment of $250M for the Mungari plant expansion to 4.2Mtpa Board approval for the Ernest Henry Mine Extension Project to progress to Feasibility Study phase following completion of the PFS which demonstrated a compelling opportunity to – extend mine life to at least 2040 10 Based on Edna May EBITDA margin of 18% compared with Group margin of 49% 21 Annual Report | www.evolutionmining.com.au 11 Cost reductions refer to contribution to Group AISC for a given financial year. Based on FY20 performance 12 Excludes the updated June 2023 Ernest Henry Mineral Resource and Ore Reserve. See the Mineral Resources and Ore Reserves section of this Report for further information on the December 2022 Mineral Resource and Ore Reserves Annual Report | www.evolutionmining.com.au 22 Operational Performance Group gold production in FY23 was 651,155 ounces at an AISC of $1,450 per ounce compared with revised guidance of approximately 660,000 ounces at $1,390 per ounce on 11 April 2023. The achieved gold price for FY23 was $2,592 per ounce. Copper production was 47,348 tonnes compared to the revised guidance of approximately 48,000 tonnes. FY24 Group gold production guidance is 770,000 ounces +/- 5%, an 18% increase on FY23 production, at an All-in Sustaining Cost of A$1,370 per ounce (+/- 5%). Copper production is guided to be 50,000 tonnes (+/-5%). Group safety performance improved with a 19% reduction in TRIF13 to 8.6 in FY23. FY23 Performance by Operation Gold production (oz) Copper production (kt) Cowal Ernest Henry Red Lake Mungari Mt Rawdon Group Total 276,314 64,725 120,840 135,592 53,685 651,155 47,348 47,348 AISC ($/oz)14 1,138 (2,334) 2,620 2,083 2,409 1,450 Operating mine cash flow ($M) 368.8 397.7 Sustaining capital ($M) Mine cash flow before major capital ($M) 29.8 339.0 Major capital ($M) 294.8 All metal production is reported as payable 66.6 331.1 44.5 41.6 61.2 (19.6) 189.1 107.9 34.2 73.7 58.1 28.1 5.1 23.0 13.4 944.0 198 746.0 600.0 13 The frequency of total recordable injuries per million hours worked. Results are based on 12-month moving average 14 All-in Sustaining Cost (AISC) includes C1 cash cost, plus royalties, sustaining capital, general corporate and administration expense. Calculated per ounce sold. AISC is non-IFRS financial information and not subject to audit Gold from the Cowal operation has been used to create the 2022 Lexus Melbourne Cup trophy. This is the fourth time Evolution gold has been used to create the Cup, and the second time for Cowal. The trophy has been produced using Evolution gold that has been mined, refined, and crafted wholly in Australia. 23 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 24 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 Moving to 320,000 ounces per annum of safe, reliable, low-cost production Cowal was the highest gold producer in the Group, achieving a record 276,314 ounces of gold under Evolution ownership, produced at a low AISC of $1,138 per ounce. This represents an increase of 22% in production and a decrease of 9% in AISC compared to FY22 (227,105oz; $1,245/oz). Production was in line with production guidance of 275,000 ounces and below cost guidance of 1,250 per ounce (+/- 5%). Operating cash flow was $368.8 million, sustaining capital was $29.8 million, and major capital was $294.8 million. Capital expenditure in FY23 consisted of investment in major projects, including Underground Mine Development and construction of the Integrated Waste Landform tailings facility. Cowal achieved two milestones in FY23, ramping up ore production from Stage H in the open pit and commencing production from the new underground mine. Gold production in FY24 is guided to increase to 320,000 ounces (+/- 5%) at an AISC of $1,250 per ounce (+/- 5%). Production from Stage H will continue while the production from underground continues to ramp-up and provide an increased contribution of ore processed. The underground mine provides a higher-grade ore source that is blended with the current E42 open pit and stockpile ore. Cowal is transitioning to a major cash contributor for the business as capital investment reduces. Evolution is progressing the proposed extension of the current open pit operation, referred to as the Open Pit Continuation (OPC) Project. The OPC Project seeks to extend open pit mining by 10 years and the total mine life by two years (from 2040 until 2042). Regular updates on the OPC Project are available on the website https://evolutionmining.com.au/cowal/. Cowal coarse ore stockpile by Joseph Connell 25 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 26 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. Ernest Henry Mine life extended to at least 2040 FY23 was the first year of full ownership of Ernest Henry. Full-year production achieved 64,725 ounces of gold and 47,348 tonnes of copper at a new record low negative AISC of $2,334 per ounce compared to the 11 April 2023 revised production guidance of approximately 65,500 ounces of gold and 48,000 tonnes of copper. This guidance revision was triggered by a significant weather event on 8 March 2023, with the final AISC pleasingly only slightly below the original AISC guidance of negative $2,600 per ounce. Prior to this event the site was performing above budget. The mine resumed operations on 18 April and achieved full production capacity by the end of the June quarter as planned. Operating mine cash flow was $397.7 million, sustaining capital was $66.6 million, and major capital was $44.5 million. Ernest Henry has commenced the transition back to the high-margin, strong cash-generating asset it has consistently proven itself to be. FY24 production is planned to be approximately 80,000 ounces of gold and 50,000 tonnes of copper (+/- 5%) at an AISC of negative $2,000 (+/- 5%). The Board approved the Ernest Henry Mine Extension Project to progress to Feasibility Study phase following the completion of the Pre-Feasibility Study. This demonstrated a compelling opportunity to extend the Ernest Henry sub-level cave operation, extending the mine life to at least 2040. Details on the Pre-Feasibility Study are provided in the release titled “Ernest Henry Mine Life Extended to 2040 – Ore Reserves Doubled”, dated 5 June and available to view at www.evolutionmining.com. The Feasibility Study is due for completion in the March quarter 2025. Material additions to the Mineral Resource are expected to be included in the Feasibility Study. Ernest Henry by Matt Gough 27 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 28 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. Acquired in April 2020, an operational transformation plan is underway to restore Red Lake to a premier Canadian gold mine with a 15+ year mine life targeting 200,000 ounces per annum and expansion once justified. Red Lake Earning the right to grow In FY23, Red Lake production increased to 120,840 ounces of gold at an AISC of $2,620 per ounce. Operating mine cash flow was $41.6 million, sustaining capital was $61.2 million and major capital was $189.1 million. A number of milestones were achieved at Red Lake in FY23, notwithstanding that production performance was below expectations, positioning the site for significant improvement into FY24. Lateral development for both the June 2023 quarter and the full year was a record under Evolution ownership. Further, delivery of two jumbos in January enabled full mechanical bolting at Cochenour and Upper Campbell, contributing to the planned upgrading of the mobile fleet during the year. In FY24, Red Lake is guided to deliver approximately 170,000 ounces of gold (+/- 5%) at an AISC of $2,000 (+/- 5%) with production stronger in the second half of the year. Red Lake’s priority is to consistently deliver 1.1 million tonnes of ore per annum to fill the current mill capacity and deliver increased cash generation. When the operation demonstrates sustainable performance at this level and above, further investment in expanding milling capacity will be considered. Balmer #3 Shaft at Red Lake Operation by Gwyneth Carlson 29 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 30 The Mungari operation is located 600km east of Perth and 20km west of Kalgoorlie in Western Australia, on the lands of the Marlinyu Ghoorlie People and other knowledge holders. Evolution works closely with the native title claimants over the majority of the Mungari tenements. Mungari Mine life extended to at least 2038 Mungari mined above plan in FY23 to produce another solid contribution to the Group’s overall gold production result with gold production of 135,592 ounces at an average AISC of $2,083 per ounce. Production was above original production guidance of 127,500 and within cost guidance of $2,040 per ounce (+/- 5%). Operating mine cash flow was $107.9 million, sustaining capital was $34.2 million and major capital was $58.1 million. FY24 gold production is planned to be approximately 130,000 ounces of gold (+/- 5%) at an AISC of $1,930 per ounce (+/- 5%). The Board approved capital investment of $250 million for the Mungari plant expansion from 2 million tonnes to 4.2 million tonnes per annum following completion of the Mungari Future Growth Feasibility Study. Details on the Feasibility Study outcomes are provided in the release titled “Mungari Mine Life Extended to 15 Years at 18% Lower AISC and Higher Production” dated 5 June and available to view at www.evolutionmining.com. The project will ramp-up during the September 2023 quarter with a 30-month construction period, including long-lead items and approvals, for commissioning by the end of the March 2026 quarter. 31 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 32 The Mt Rawdon Operation is located 75km south-west of Bundaberg, Queensland and is surrounded by the traditional lands of the Bailai, Gurang, Gooreng Gooreng, and Taribelang Bunda People. Our local communities are Mt Perry, Gin Gin, Biggenden and Gayndah. Evolution has owned and operated Mt Rawdon since November 2011. Mt Rawdon Thinking differently Mt Rawdon produced 53,685 ounces of gold at an AISC of $2,409 per ounce in FY23 which was below guidance of 75,000 ounces (+/-5%) at an AISC 1,950 per ounce (+/- 5%). The production result was lower than plan due to extensive rain events and water-related geotechnical pit access restrictions, resulting in the processing of low- grade stockpiles. Significant water management activities were undertaken during FY23 to enable full mining activities whenever possible, including commissioning over 30 evaporators and two temporary reverse osmosis plants, as well as liaising with state regulators on controlled water releases. Operating mine cash flow was $28.1 million, sustaining capital was $5.1 million and major capital was $13.4 million. In FY24, gold production is planned to be approximately 70,000 ounces (+/- 5%) and AISC is guided at $1,850 per ounce (+/- 5%). Mt Rawdon is currently undertaking a Feasibility Study to convert the Mt Rawdon operation into a low-cost, large-scale pumped hydro power station at the end of the mine’s life. Mt Rawdon Pumped Hydro Project (50% ownership) A unique renewable energy storage project The Mt Rawdon Pumped Hydro (MRPH) Project is being jointly developed by Evolution and ICA Partners to provide up to 20GWh of renewable energy storage and is located at an advantageous point in the electricity network between Brisbane and the energy intensive industrial hub of Gladstone. The Feasibility Study is progressing well and remains on track for completion in the June quarter FY24, supporting continuing discussions with potential interested offtake partners and infrastructure investors. The MRPH project is well advanced and expected to be operational by 2030. It 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 Evolution’s social responsibility commitment of leaving a positive legacy for the communities in which we operate beyond the life of the mine. “The opportunity at Mt Rawdon is unique – transforming this 22-year-old gold mine nearing the end of its life as a gold producer into a large, multi-generational, renewable infrastructure asset with the potential to be of significant value to Evolution shareholders.” Jake Klein, Executive Chair 33 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 34 • Baseline layout design for the pumped hydro facility was finalised and preferred candidates shortlisted for OEM supply and the Program Management Contractor role as part of its Early Contractor Involvement processes • The approvals process progressed with flora and fauna baseline surveys completed for the pumped hydro site, stakeholder engagement ramping up as part of the impact assessment program, and the EIS Terms of Reference finalised and issued Further information on the MRPH Project can be found at https://mtrawdonhydro.com.au/ In FY23: • The Queensland Government’s Coordinator-General declared MRPH a Coordinated Project, a designation intended to streamline interactions with key State Government departments and agencies. It also confirms the strategic significance of the Project in the State and its potential to contribute to the objectives of the recently announced Queensland Energy and Jobs Plan • Progress was made on transmission connection agreement discussions, baseline studies supporting the Environmental Impact Statement (EIS) approvals process, and discussions with government and key stakeholders regarding first fill water for the lower reservoir • Geotechnical drilling program to further de-risk the project was successfully completed, confirming the location and alignment of the underground powerhouse chamber and the water tunnels connecting the upper and lower reservoir (mine pit), with no fatal flaws identified FY24 Production, AISC and Capital Guidance FY24 Group gold production guidance is 770,000 ounces (+/- 5%), an 18% increase on FY23 production, at an All-in Sustaining Cost of A$1,370 per ounce (+/- 5%). The higher production will contribute to deleveraging the balance sheet. FY24 production, AISC and capital guidance is presented in ASX release titled “Investor Day Session 1 Presentation” dated 5 June 2023 and available to view at www.evolutionmining.com.au. A planned lower capital expenditure profile, anticipated lower All-in Sustaining Cost and higher production levels in FY24 will see Evolution move to stronger cash generation. In FY24, sustaining capital is expected to be between $190-230 million and major mine development to be between $125-140 million. Major capital15 is expected to be approximately $80 million lower in FY24 than FY23. FY24 Guidance Gold Production (oz) (+/-5%) Copper Production (t) (+/-5%) AISC16 ($/oz) (+/-5%) Sustaining Capital17 ($M) Major Project Capital18 ($M) Major Mine Development19 ($M) Group Cowal 770,000 50,000 320,000 – 1,370 1,250 190 – 230 325 – 350 125 - 140 40 – 50 85 – 90 ~5 Ernest Henry 80,000 50,000 (2,000) 55 – 62.5 45 – 50 45 – 50 Red Lake 170,000 Mungari 130,000 Mt Rawdon 70,000 Corporate – – – – – 2,000 45 – 55 85 – 90 60 – 65 1,930 1,850 – 45 – 52.5 110 – 120 15 – 20 5 – 7.5 0 – 2.5 – – – – 15 Major capital comprises major project capital and major mine development 16 AISC is based on gold price of A$2,650/oz (royalties) and Copper price of A$12,500/t (By-product credits) 17 Sustaining capital relates to investment to maintain ongoing production per World Gold Council (WGC) guidelines 18 Major project capital includes expenditure to establish new assets or a material change in production rate as per WGC 19 Major mine development comprises costs incurred to establish access to ore bodies over long term 35 Annual Report | www.evolutionmining.com.au Ernest Henry by Craig Andrew Annual Report | www.evolutionmining.com.au 36 Act Like an Owner Program A selection of Winning Act Like an Owner Nominations in FY23 Thinking differently to create value Group Cowal Evolution has built and fostered a culture where our people “Act like an Owner” (ALO) by treating Evolution as if it is their own business. The five behaviours are: showing pride and commitment; be open to new ideas; support each other; be courageous; and do the right thing for the long term. In FY23, 76 ALO initiatives were approved that delivered $14.4 million in value for the business through change, improved safety, innovation, cost reductions and efficiency gains. Since the program began in 2015, an estimated $90 million has been delivered in value. Showing pride and commitment Be courageous Be open to new ideas Do the right thing for the long-term Support each other IWL Inspections Change by Phil Greenhill ALO Behaviour: Do the Right Thing for the Long Run A review of the inspections process for the Integrated Waste Landform (IWL) revealed duplications and inefficiencies in manual paper handling. Phil worked with the teams to streamline the process by: • Implementing Observer for daily inspections (including Cynanide Code compliance reporting) and eliminating paper saving 10 hours a day for admin staff) • Transitioning inspections to the processing team and providing required training. • Removing inspections by the Geo-tech teams, saving 5-6 days of work per month • Implementing a procedure, including a new responsibility matrix that covers the IWL inspections process, with weekly and monthly reporting to ensure consistency in the standard of inspections. Red Lake Seven Rounds by Jessica Plichta ALO Behaviour: Pride and Commitment Dedication to completing multiple rounds of fibercreting in a single shift meant the development and service bay teams were able to catch up on existing fibercrete work. Aspentech Mtell Deployment - AI Predictive Analytics in Maintenance by Paul Robbins ALO Behaviour: Be Open to New Ideas Mungari was the first gold plant in Australia to implement the Aspentech Mtell solution for predictive maintenance. This solution uses artificial intelligence and advanced analytics to sift through all available sensor and performance data to predict equipment failures in advance. Mungari achieved a demonstrated value of $429,000 over a 12-month period since implementation. Red Lake Alternative Water Supply for Mill by Jonathan Boehm ALO Behaviour: Pride and Commitment When the Balmer Lake primary water supply pump failed, Jonathon’s initiative to utilise existing infrastructure in a new way provided an alternate water supply for the mill which ensured continuous processing of ore. Mungari OrePro3D Blast Movement Technology by John Southwood ALO Behaviour: Be Open to New Ideas Implementation of an alternative blast movement technology which relies on photogrammetry and smart vectors to build a model and optimised dig blocks/ mineable shapes, eliminating the need for personnel to traverse uneven ground, reducing the risk of injury and saving approximately $63,000 per year compared to prior technology. Cowal Wet Weather Field Work Solution – Exploration by Ben Gardner ALO Behaviour: Support Each Other Wet weather in New South Wales limited the ability of the Cowal exploration team to carry out field exploration (auger drilling) activities. A solution was devised to use a tractor instead of a ute to tow the auger rig. As the only technician able to operate the tractor, Ben adjusted his roster, worked additional hours and gave up weekends to see the program through. His efforts were key in driving a 70% cost reduction per hole drilled and delivering the agreed program on time and on budget. 37 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 38 Discovery 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 strong year in FY23. At Ernest Henry, investment into significant surface and underground diamond drilling campaigns has transformed our understanding of this prolific mineral system, resulting in the doubling of Ore Reserves for both gold and copper during the year with strong potential for continuing growth. In Western Australia, at the Cue exploration joint venture, we delineated a new discovery at the West Island prospect, which culminated in a maiden Inferred Mineral Resource of 1.7 million tonnes at 2.6g/t gold for 142,000 ounces with potential to grow. We also commenced exploration at our 100% owned Lake St Joseph property in northern Ontario, ~200km to the east of Red Lake. As a Discovery team, we continue to invest in the development and employment of new exploration techniques, as well as technically upskilling our people with opportunities to 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 on epithermal, greenstone and iron oxide copper gold (IOCG) styles of mineralisation because we believe we have the right combination of skills and expertise to discover these types of deposits. We will always be willing to consider other mineralisation styles if we believe they can deliver high-quality opportunities that improve overall portfolio quality. We hold highly prospective tenements in New South Wales, Queensland, Western Australia and Ontario, Canada. At the end of FY23, 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 FY23 was $54.2 million. A total of 140 kilometres of drilling was completed across the Group. In FY24, our discovery investment will be directed to resource growth and to deliver new discoveries near our operating mines or at our Greenfields projects. Cowal, New South Wales (EVN 100%) The Cowal Mineral Resource at December 2022 is estimated at 273.3 million tonnes at 1.01g/t gold for 8.8 million ounces of contained gold.20 FY23 Resource definition drilling at Cowal focused on infill and extensional drilling to update geological interpretations at Dalwhinnie, Manna and Regal. The drilling results continue to provide future production areas and show that many of the orebodies at the Cowal Underground are open in multiple directions. Near-term underground growth opportunities include extensions at Dalwhinnie South, Regal and the ‘Gap Zone’ between Galway and Regal. From an open-pit perspective, key future growth opportunities include the expansion of the E42 open-pit and other satellite pits such as E 41, GRE, and E 46. Early-stage exploration continued at Cowal, near-mine at the Talisker prospect as well as regionally at the South Cowal prospect and the Western Corridor. Two diamond drill holes at Talisker intersected narrow, high-grade mineralisation that could represent a future underground development opportunity ~300 metres east of existing workings. Further drill testing is planned in FY24. South Cowal is a 3km x 1.5km Cu & Au air core anomaly 15 km south of E 42. A high-resolution gravity survey was acquired at South Cowal during the year to guide future drill targeting, along with one diamond drill hole that returned broad low-grade Cu & Au anomalism. A two-year option agreement was signed with Strategic Energy Resources (ASX: SER) over two tenements near South Cowal. The agreement provides Evolution with broader access to the target area for further exploration. A large auger program over the Western Corridor continued during FY23 to build-up foundational geochemical datasets in areas not previously explored. Several multi-element anomalies are emerging and will be assessed after completion of the auger survey in FY24. 20 See the Mineral Resources and Ore Reserves section of this Report for information on Evolution’s MROR by operation/project Ernest Henry, Queensland (EVN 100%) The Ernest Henry Mineral Resource at December 2022 was estimated at 94.8 million tonnes at 1.27% copper and 0.75g/t gold for 1.2 million tonnes of contained copper and 2.3 million ounces of contained gold. Ongoing drilling programs during the year to support the Mine Extension Feasibility Study resulted in extensions to mineralisation within, outside and below the current Feasibility Study footprint and was reflected in increases to the Mineral Resource estimates at 31 December 2022 and at 30 June 2023. The Ernest Henry Mineral Resource update at 30 June 2023 was estimated at 101.5 million tonnes at 1.25% copper and 0.73g/t gold for 1.3 million tonnes of contained copper and 2.4 million ounces of contained gold net of mining depletion. This was an increase of 6.7 million tonnes (7%), 76,000 ounces (3%) of contained gold and 63,000 tonnes (5%) of contained copper net of mining depletion compared to 31 December 2022 Mineral Resource estimate. The connection of mineralisation between Ernie Junior and the lower lens of the Main ore body and expansion of the Main ore body below the 775mRL drove most of the growth in this Mineral Resource update (Figure 1). Importantly, the addition of mineralisation outside the Feasibility Study footprint between the 1,125mRL and 775mRL has the potential to become a source of future production that could complement the 17-year mine life extension. Significant growth opportunities exist beyond currently interpreted mineralisation domains which will be targeted in current and future drilling programs: • Depth extensions below the Main orebody and between the Main orebody and Ernie Junior • Mineralisation at Bert is open with potential for a new orebody to be developed parallel to and stratigraphically beneath Figure 1: North-South view looking west, showing December 2022 Mineral Resource model (grey) and June 2023 Mineral Resource model (orange) 39 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 40 Mungari Western Australia (EVN 100%) The Mungari Mineral Resource at December 2022 was estimated at 97.5 million tonnes at 1.70g/t gold for 5.3 million ounces of contained gold. This estimate included the addition of 436,000 ounces due to successful resource definition and extension drilling programs during 2022. Resource definition drilling work focussed on the Kundana underground with drilling at Xmas, Genesis and Strzlecki ore zones. The purpose of these drilling programs was to infill for Ore Reserve conversion work and to extend the Mineral Resource base in the near-mine environment. The resource extension work was successful, increasing the Mineral Resource for Kundana and replacing mining depletion. Surface Reverse Circulation (RC) and diamond drilling was completed for the Paradigm open pit and underground mines. The RC drilling was undertaken to increase resource confidence in time for the open pit mining sequence. The surface diamond drilling was undertaken for resource conversion and resource growth work for the planned underground mining in FY26. In both cases, the resource definition drilling increased the resource base for the Paradigm deposit. Resource definition drilling work was also completed at the Hornet and Golden Hind deposits as part of the East Kundana Joint Venture. The purpose of the golden Hind and Hornet drilling was to increase resource confidence, in time for the open pit mining sequence in FY25. Geological work centred on merging geological databases between the Kundana and Mungari drilling datasets. A combined dataset is now the framework for developing continuous geological models for exploration targeting work in the near mine environments. There is significant potential for further discovery in this world-renowned greenstone gold terrane with Mungari’s strong project pipeline to increase the Mineral Resource base beyond 5.3 million ounces. The focus over the next few years will be on discovering sufficient material to maintain production at 200,000 ounces per annum for the entire mine life. Red Lake Ontario (EVN 100%) 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 Red Lake Mineral Resource at 31 December 2022 was estimated at 60.4 million tonnes at 6.35g/t gold for 12.34 million ounces of contained gold. FY23 resource definition at Red Lake focused on Mineral Resource conversion and infill drilling in near-term production areas at Upper Campbell, MMTP, Cochenour and Lower Campbell. Resource definition continues to focus on upgrading geological confidence in higher grade portions of the Mineral Resource in preparation for mining. Drilling was also conducted throughout the mine to collect drill core for geo-metallurgical testing in areas where no previous core record is available on-site. Discovery drilling continued in lower parts of the mine, testing areas that are interpreted to have similar geological architecture to the high-grade zone, along with large step out drill-holes up-dip of MMTP. FY23 MMTP drilling is showing that the mineralised zone has strong potential for future resource growth not previously recognised due to selective sampling for assay. Further drilling was conducted on the Western R-zone, which has advanced as a future resource definition target with potential to grow. Regionally, the focus at Red Lake has been on geological mapping and collecting glacial till samples in areas not previously considered prospective for gold. A sonic drill campaign targeting the base of glacial till was undertaken at the Gull Rock prospect, with surface till sampling at the Slate Bay, Black Bear, East Bear and North Mine prospects. Samples from Gull Rock and Slate Bay prospects have returned anomalous levels of gold grains which are interpreted to be sourced locally from bedrock. These areas will be followed up in FY24 with further sampling. A new exploration area, that could represent the western continuation of the LP fault, was pegged at Trout Bay South. The LP fault zone is a key control on mineralisation at the Great Bear Project (Kinross Gold) to the south-east. 41 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 42 Cue Joint Venture Western Australia (EVN 75%) Evolution and Musgrave Minerals (ASX: MGV) entered into an earn-in exploration joint venture agreement in October 2019. Evolution completed the $18 million earn-in requirement to earn a 75% ownership interest in the project and the Cue joint venture formed on 16 December 2022. Evolution spent the first year of the earn-in joint venture period completing air core drilling over the prospective geological corridor extending north of Musgrave Minerals’ Lena and Break of Day Mineral Resources. This work outlined a 7-kilometre-long gold geochemical anomaly, with follow-up diamond drilling vectoring to the West Island mineralised zone in both oxide and fresh rock material. In fresh rock, West Island consists of narrow, high-grade lodes that have preferentially developed in a differentiated dolerite. The focus of FY23 drilling was delineation of these lodes to inform an initial inferred Mineral Resource. A maiden Inferred Mineral Resource for West Island at 30 June 2023 was estimated at 1.7 million tonnes at 2.6g/t gold for 142,000 ounces. The Mineral Resource was reported above a 0.73g/t gold cut-off, within an optimised pit shell developed using a gold price of $2,500/oz. Multiple lodes at West Island show potential for future resource growth. See the Mineral Resource and Ore Reserve section of this Report for further information on the Mineral Resource estimate. Greenfield Projects In addition to mine site-based exploration, the Evolution Discovery team continued to explore its portfolio of high-quality Greenfield projects throughout FY23. In Northern Ontario, exploration commenced at the 100% owned Lake St Joseph project ~200km to the east of Red Lake. Lake St Joseph is an underexplored portion of the well-endowed Uchi sub-province that sits over interpreted splays of the district wide Sydney Lake fault system. FY23 saw the commencement of a regional till sampling campaign, along with collection of Lidar and aero-magnetic data sets. FY24 exploration will include ongoing property wide and infill till sampling to delineate future drill targets. In Queensland, a short RC drilling program was completed at the 100% owned Cattleman’s project 12 kilometres west of Charters Towers. The drilling was targeting a coincident geochemical and geophysical anomaly analogous to intrusive related gold systems in the region. No further exploration is planned at Cattleman’s in FY24. 43 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 44 Mineral Resources and Ore Reserves Value creation through organic growth Group Mineral Resources Commodity Price Assumptions Group Gold Mineral Resources Growth Since Inception (koz) As at 31 December 2022, Group Mineral Resources are estimated to contain 678 million tonnes grading 1.39g/t for 30.3 million ounces of gold and 218 million tonnes grading 0.81% for 1.77 million tonnes of copper net of mining depletion of 877,000 ounces of gold and 80,000 tonnes of copper. This represents an increase of 724,000 ounces of gold (2%) and 322,000 tonnes of copper (22%) compared with the estimate as at 31 December 2021. The Group Mineral Resource Statement as at 31 December 2022 is provided in Tables 2 and 4. Mineral Resources are reported inclusive of Ore Reserves but exclude mined areas and areas sterilised by mining activities. Group Ore Reserves As at 31 December 2022, Group Ore Reserves are estimated to contain 277 million tonnes grading 1.12g/t gold for 10.0 million ounces of gold and 99 million tonnes grading 0.66% for 661,000 tonnes of copper net of mining depletion of 817,000 ounces of gold and 63,000 tonnes of copper. This represents a decrease of 360,000 ounces of gold (4%) and an increase of 21,000 tonnes of copper (3%) compared with the estimate as at 31 December 2021. The Group Ore Reserve Statement as at 31 December 2022 is provided in Tables 3 and 5. Mineral Resources and Ore Reserve Growth Since Evolution’s Inception to December 2022 Group Mineral Resources and Ore Reserves have grown by 336% (from 6.97Moz) and 186% (from 3.49Moz) respectively since Evolution’s formation in November 2011, excluding mining depletion from in situ Mineral Resources and Ore Reserves of 8.4 million ounces and 8.3 million ounces respectively. The Company has added 12 million ounces to the reported Mineral Resource predominantly by drilling, along with modelling and optimisation updates. The growth re-enforces the Company’s strategy of identifying and acquiring assets with strong mineral endowment where value can be unlocked by the Discovery team. Commodity price assumptions used to report cut-off grades for Mineral Resources and Ore Reserves remain conservative at $2,200 (~US$1,475) per ounce for Mineral Resources and a long-term price of $1,600 (~US$1,073) per ounce for Ore Reserves which positions Evolution at the lower end of the peer group. Evolution commodity price assumptions used to report the December 2022 Mineral Resources and Ore Reserves cut-off grades are provided below. An AUD:CAD exchange rate assumption of 0.9 has been used for Red Lake. • Gold: $1,600/oz for Ore Reserves, $2,200/oz for Mineral Resources • Silver: $20.00/oz for Ore Reserves, $26.00/oz for Mineral Resources • Copper: $7,000/t for Ore Reserves, $10,000/t for Mineral Resources All open pit Mineral Resource estimates are reported within optimised pit shells which have been developed using a $2,200/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 $2,200/oz price assumption and take into account forecast mining costs and metallurgical recoveries. Ernest Henry Mineral Resource estimate is reported within the interpreted 0.7% copper envelope. All open pit Ore Reserve estimates are reported within detailed pit designs and all underground Ore Reserves are reported within mineable underground shapes, inclusive of dilution. Pit designs and underground mining inventories 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 $1,600 to $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, taking into account short-term gold price forecasts and other factors. The short-term gold price assumption for Castle Hill and Paradigm deposits at Mungari is $2,200 per ounce. The Cowal ‘Open Pit Continuation’ (OPC) Ore Reserve commodity price assumptions are declared as per the “Annual Mineral Resources and Ore Reserves Statement” dated 16 February 2022. The Cowal OPC Open Pit Ore Reserves and will be updated at the completion of the OPC Feasibility Study. 21,830 12,014 30,343 Divestments -2,154 6,967 Acquisitions Evolution Nov 2011 Depletion Growth -8,404 Evolution Dec 2022 Group Gold Ore Reserves Growth Since Inception (koz) 6,069 9,537 9,973 Divestments -815 3,486 Acquisitions Evolution Nov 2011 Depletion Growth -8,304 Evolution Dec 2022 45 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 46 JORC 2012 and ASX Listing Rules Requirements Competent Persons’ Statement 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). The Mineral Resource and Ore Reserve summaries are tabulated on the following pages. 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 third party 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. The information in this Report that relates to the Mineral Resources and Ore Reserves listed in Tables 2 to 5 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 Dean Basile who is employed by MiningOne and Anton Kruger who is employed by SSR Mining Inc.) 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 Table 1 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’. 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. 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 2022 except for the reported Ernest Henry Mineral Resource and Ore Reserve estimates at June 2023 and changes due to normal mining depletion during the six months ended 30 June 2023. 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: Competent Persons List for the December 2022 Mineral Resources and Ore Reserve Estimates Deposit Competent Person Membership Status Member number Cowal Mineral Resource James Biggam AusIMM Member 112082 Cowal Open Pit Ore Reserve Dean Basile AusIMM Chartered Professional (Mining) 301633 Cowal Underground Ore Reserve Ryan Bettcher AusIMM Member 310517 Red Lake Mineral Resource Jason Krauss AIG Member 4711 Red Lake Ore Reserve Brad Armstrong Professional Engineers - Ontario Member 100152392 Mungari Mineral Resource Brad Daddow AIG Member 7736 Mungari Open Pit Ore Reserve Mungari Underground Ore Reserve Ernest Henry Mineral Resource Blake Callinan AusIMM Member 204346 Blake Callinan AusIMM Member 204346 Phillip Micale AusIMM Member 301942 Ernest Henry Ore Reserve Michael Corbett AusIMM Member 307897 Mt Rawdon Mineral Resource Matthew Graham-Ellison AusIMM Member 337100 Mt Rawdon Ore Reserve Ben Young AusIMM Marsden Mineral Resources James Biggam AusIMM Marsden Ore Reserve Anton Kruger AusIMM Member Member Fellow 309295 112082 221292 47 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 48 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 1 2 3 4 4 5 6 7 e c r u o s e R ) z o k ( l a t e M d o G l 6 2 P C l d o G l a t e M ) z o k ( l d o G ) t / g ( e d a r G ) t M ( s e n n o T l d o G l a t e M ) z o k ( l d o G ) t / g ( e d a r G ) t M ( s e n n o T l d o G l a t e M ) z o k ( l d o G ) t / g ( e d a r G ) t M ( s e n n o T l d o G l a t e M ) z o k ( l d o G ) t / g ( e d a r G ) t M ( ) u A s e n n o T t / g ( ff o - t u C e p y T l a r e n M i l a t o T e c r u o s e R l a r e n M i 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 1 2 c e D 2 2 0 2 r e b m e c e D 1 3 t a l s a d o G d e n a t n o C r o f i t n e m e t a t S e c r u o s e R l i a r e n M p u o r G : 2 l e b a T 2 5 8 6 , 6 6 7 2 , 8 1 6 9 , 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 1 1 1 2 3 3 3 4 5 1 5 8 6 2 , 3 4 2 . . 4 4 3 5 2 9 3 3 2 . . 4 2 1 0 6 7 , 1 9 4 2 . . 0 2 2 - - - 0 5 . 1 G U 5 5 1 , 6 0 8 0 . . 9 8 3 2 2 8 6 0 8 0 . . 5 6 2 3 3 0 5 , 6 8 0 . . 9 2 8 1 0 4 4 6 4 0 . . 5 9 2 5 3 0 . t i p n e p O 0 4 8 8 , 1 0 . 1 . 3 3 7 2 7 0 6 , 1 9 2 . 1 . 8 8 3 3 9 7 6 , 3 0 . 1 . 9 4 0 2 0 4 4 6 4 0 . . 5 9 2 2 4 3 2 1 , 5 3 6 . . 4 0 6 2 0 7 4 , 0 9 5 . . 8 4 2 9 3 6 7 , 6 6 6 . . 7 5 3 8 5 7 2 , 0 1 . 1 . 8 7 7 4 9 8 6 1 . 1 . 0 4 2 4 6 8 , 1 8 0 . 1 . 8 3 5 - - - - 0 8 5 2 , 7 0 4 . . 7 9 1 3 4 0 , 1 4 7 3 . . 7 8 2 3 3 , 1 8 2 4 . . 7 9 5 0 2 6 6 4 . 8 3 3 5 , 0 7 . 1 . 5 7 9 7 3 9 , 1 4 8 . 1 . 7 2 3 6 9 1 , 3 7 5 . 1 . 5 3 6 5 0 2 6 6 4 . - - 4 . 1 4 . 1 . 3 3 - 5 2 . l a t o T l a t o T . 4 3 0 - 1 3 0 . t i p n e p O 3 2 i r a g n u M 4 4 2 . - 6 4 . 1 G U 4 2 i r a g n u M l a t o T 1 2 i r a g n u M 8 7 4 2 5 0 . . 8 8 2 5 3 8 4 0 . 3 2 . 9 8 3 8 5 0 . 0 . 1 2 4 5 0 3 0 . 5 5 . 3 2 0 . l a t o T 1 2 n o d w a R t M 2 9 2 2 , 5 7 0 . . 8 4 9 9 7 5 4 7 0 . . 4 4 2 0 5 0 , 1 4 7 0 . . 0 4 4 4 6 6 8 7 0 . . 4 6 2 l a t o T 5 2 y r n e H t s e n r E 3 5 0 , 1 7 2 0 . . 0 3 2 1 2 2 2 2 0 . 1 . 3 1 3 0 , 1 7 2 0 . . 8 9 1 1 - - - 0 2 0 . l a t o T n e d s r a M j t c e o r P 1 2 l a w o C l a w o C 1 2 l a w o C 2 2 e k a L d e R 9 1 6 9 2 , 3 4 3 0 3 , 9 3 . 1 . 8 7 7 6 2 8 8 8 , 9 1 . 2 1 . 6 2 1 8 9 0 0 2 , 8 2 . 1 . 9 8 8 4 2 6 3 , 1 8 6 0 . . 8 2 6 l a t o T 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 | d n u o r g r e d n u s e t o n e d ” G U “ | . 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 i s e r u g fi 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 1 2 c e D e v r e s e R e r O l a t o T e v r e s e R e r O l a t o T l e b a b o r P d e v o r P l d o G 2 2 0 2 r e b m e c e D 1 3 t a l s a d o G d e n a t n o C r o f i t n e m e t a t S e v r e s e R e r O p u o r G : 3 l e b a T ) z o k ( l a t e M d o G l 4 3 P C ) z o k ( ) t / g ( l a t e M d o G l e d a r G d o G l ) t M ( s e n n o T ) z o k ( ) t / g ( l a t e M d o G l e d a r G d o G l ) t M ( s e n n o T ) z o k ( ) t / g ( l a t e M d o G l e d a r G d o G l ) t M ( s e n n o T ) u A t / g ( ff o - t u C e p y T j t c e o r P l e a c M i l i h P . 5 ; n o s i l l E - m a h a r G w e h t t a M . 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 i l a r e n M d o G p u o r G 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 n h t i i w d e t r o p e r 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 s n o i t a r e p O y r n e H t s e n r E 5 2 6 2 u A t / g 6 9 . 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 4 4 2 o t u A t / g 6 4 . 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 4 2 u A t / g 2 3 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 l . t n a p g n i s s e c o r p m o r f n o i t a c o l d n a t i s o p e d n o t n e d n e p e d e r a u A t / g 4 3 0 o t u A t / g 1 3 0 m o r f . . y r a v s ff o - t u c e c r u o s e R l a r e n M i t i P n e p O i r a g n u M l t n a p g n i s s e c o r p d n a e c a f r u s m o r f n o i t a c o l d n a t i s o p e d n o t n e d n e p e d e r a d n a u A t / g 3 3 o t u A t / g 5 2 m o r f . . s e i r a v 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 s e l i p k c o t s s e d u c n l I 1 2 2 2 3 2 0 6 1 , 3 7 8 0 . . 6 3 1 1 5 4 7 2 , 9 9 0 . 9 6 1 , 1 9 2 2 . . 9 5 1 9 6 1 , 1 9 2 2 . . 2 6 8 . 9 5 1 - 4 1 4 - - 0 8 . 1 / 5 5 0 . G U 7 4 0 . . 4 7 2 5 4 0 . t i p n e p O , 8 2 7 2 l a w o C 3 3 3 0 1 , 3 7 9 9 , 2 1 . 1 1 . 7 7 2 0 2 1 , 9 4 2 . 1 . 2 9 2 2 2 5 8 5 5 0 . . 9 7 4 l a t o T i s t i s o p e d c fi c e p s n o t n e d n e p e d s i . d n a u A t / g 8 3 o t u A t / g 2 2 m o r f . s e i r a v 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 1 3 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 i s e r u g fi 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 e h t e r a s n o i t p e c x e e h T . n o i t p m u s s a l e c i r p d o g z o / 0 0 6 , 1 $ a g n i s u d e s i m i t p o e r e w s e v r e s e R e r O t i P n e p O i r a g n u M 2 3 s t s o c d n a n o i t a c o l t n u o c c a o t n i i g n k a t i e n m d n u o r g r e d n u h c a e n e e w t e b s e i r a v d n a d n u o r g r e d n u s e t o n e d ” G U “ s e l i p k c o t s s e d u c n l I 7 2 d n a 5 2 0 2 d n a 3 2 0 2 n e e w t e b n o i t c u d o r p r o f d e u d e h c s n e e b e v a h h c h w s n o i t a r e p o t i p n e p o i l l l i H e l t s a C d n a m g d a r a P i . u A t / g 4 7 0 o t u A t / g 0 5 0 m o r f . t i s o p e d y b y r a v s ff o - t u C . n o i t p m u s s a l e c i r p d o g z o / 0 0 2 2 $ a h t i , w d e s i m i t p o n e e b e v a h s t s o c d n a n o i t a c o l t n u o c c a o t n i e k a t d n a ) C P O ( s e v r e s e R e r O ’ n o i t a u n i t n o C t i P n e p O ‘ i i g n n a m e r l l A . l n o i t e p e d r o f g n w o i l l a d n a i s r o t c a f g n y f i d o m d e t a d p u e h t t a d e t a d p u e b l l i w e v r e s e R e r O C P O e h T . s e v r e s e R e r O t i P n e p O l a w o C 1 2 0 2 r e b m e c e D r e p s a d e r a c e d e r a l , s n o i t p m u s s a e c i r p y t i d o m m o c e t a r o p r o c 2 2 0 2 h t i w e n i l n i t i P n e p O H e g a t S 2 4 E r o f d e t a d p u n e e b s a h e v r e s e R e r O 8 2 e h t n i d e l i a t e d e c r u o s e R l i a r e n M 2 2 0 2 e n u J e h t n o d e s a b s i e t a m i t s e e v r e s e R e r O d e t r o p e r s n o i t a r e p O y r n e H t s e n r E 3 3 l i a r e n M e d u c n l i S F e h t g n i r u d d e t a d p u e b o t s r o t c a f g n y f i d o M i . ) ’ S F ‘ ( y d u t S y t i l i b i s a e F C P O e h t f o n o i t e p m o c l f o e d a r g ff o - t u c d e i l p p a e h T . ’ 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 n i e s a e r c n I l a i r e t a M “ d e l t i t l e s a e e r X S A 2 2 0 2 t s u g u A 1 d e fi i t n e d i n e e b e v a h s w a fl l a t a f o n , e t a d o T . s n o i t p m u s s a t s o c d n a e u n e v e r , l i a c g r u l l a t e m , l i a c n h c e t o e g , e c r u o s e R t e N e h t i s r e d i s n o c h c h w s s e c o r p n o i t a u a v e l i c m o n o c e n a h g u o r h t d e n m r e t e d s i i ) ’ q E u C ‘ ( l t n e a v u q e i r e p p o c % 5 7 0 . . 7 7 2 7 / R S N u A + u C = q E u C : s i n o i t a u q e l t n e a v u q e i r e p p o c d e s i l i t u e h T . s t s o c g n i t a r e p o d n a ) R S N ( n r u t e R r e t l e m S . 4 0 0 - u A * 1 7 . 1 4 = R S N u A ; e r e h w d n a 1 2 0 2 r e b m e c e D e h t n e e w t e b e g n a h c e h t f o t c a p m i e h t n o d e t c u d n o c s a w t s e t y t i l a i r e t a m A . S F e h t g n i r u d % 0 1 n a h t s s e l e b o t d e t c e p x e s i e g n a h c e h t , e v r e s e R e r O C P O e h t n o l e d o m e c r u o s e R l i a r e n M 2 2 0 2 r e b m e c e D p u t a d e t s e t y l l i a c m o n o c e , n o i t p m u s s a e c i r p z o / 0 0 6 , 1 $ a g n i s u d e s i m i t p o n e e b s a h e v r e s e R e r O d n u o r g r e d n U l a w o C 9 2 d a r B . 3 ; r e h c t t e B n a y R . 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 4 3 s e d u c n l i e v r e s e R e r O d n u o r g r e d n U l a w o C e h T . l n o i t e p e d d n a i s r o t c a f g n y f i d o m d e t a d p u s r e d i s n o c d n a z o / 0 0 2 2 $ o t , r e g u r K n o t n A . 7 ; t t e b r o C l e a h c M i . 6 ; g n u o Y n e B . 5 ; n a n i l l a C e k a B l . 4 ; g n o r t s m r A . u A t / g 5 5 0 f o e d a r g ff o - t u c l a t n e m e r c n i n a t a l a i r e t a m t n e m p o e v e d l ) 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 r o f t p e c x e u A t / g 0 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 0 3 9 3 0 . . 2 5 6 - - - 0 3 0 . t i p n e p O n e d s r a M 6 3 3 7 5 0 . . 2 8 1 q E u C % 5 7 0 . G U 3 3 y r n e H t s e n r E 9 2 3 4 , 4 0 . 1 . 5 9 2 1 5 1 9 3 , 9 1 . 1 1 . 2 0 1 4 1 4 7 4 0 . . 4 7 2 8 7 8 2 , 0 9 6 . 5 3 5 3 0 7 8 3 2 , 1 6 1 2 5 9 4 7 1 8 4 5 4 . 6 0 . 1 8 5 . 1 1 6 0 . 5 4 0 . 9 3 0 . . 0 3 1 . 7 3 . 7 0 2 . 3 4 2 . 9 0 1 . 3 4 3 . 2 5 6 8 7 8 2 , 0 9 6 . 7 5 4 3 0 7 0 6 1 , 1 1 9 1 9 5 1 7 1 8 1 4 4 . 6 0 . 1 1 5 . 1 6 6 0 . 1 3 0 . . 0 3 1 . 2 3 . 7 0 2 . 9 3 2 0 9 . 1 . 6 1 - 8 7 - 8 7 5 2 - 7 4 5 . - 7 4 5 . 0 4 0 . - . 4 0 - . 4 0 9 . 1 . 0 4 - 5 2 . . 8 3 - 2 2 . l a t o T l a t o T G U 9 2 l a w o C l a w o C 0 3 e k a L d e R 1 3 i r a g n u M . 4 7 0 - 7 5 0 . t i p n e p O , 2 3 7 2 i r a g n u M l a t o T 7 2 i r a g n u M 1 3 0 . t i p n e p O 7 2 n o d w a R t M 49 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 50 1 2 c e D 2 2 0 2 r e b m e c e D 1 3 t a s a r e p p o C d e n a t n o C r o f i t n e m e t a t S e c r u o s e R l i a r e n M p u o r G : l 4 e b a T l a r e n M i l a t o T e c r u o s e R l a r e n M i 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 e c r u o s e R l a t e M r e p p o C ) t k ( 0 6 5 5 8 8 5 3 P C 1 2 ) t k ( l a t e M ) % ( e d a r G ) t M ( ) t k ( l a t e M ) % ( e d a r G ) t M ( ) t k ( l a t e M ) % ( e d a r G ) 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 r e p p o C s e n n o T r e p p o C r e p p o C s e n n o T r e p p o C r e p p o C s e n n o T ff o - t u C e p y T j t c e o r P 0 6 5 6 4 0 . . 0 3 2 1 7 4 2 0 . 1 . 3 3 5 5 6 4 0 . . 8 9 1 1 - - - u A t / g 2 0 . l a t o T n e d s r a M 7 0 2 , 1 7 2 . 1 . 8 4 9 3 8 2 6 1 . 1 . 4 4 2 5 6 5 8 2 . 1 . 0 4 4 9 5 3 6 3 . 1 . 4 6 2 u C % 7 0 . l a t o T y r n e H t s e n r E 5 4 4 , 1 7 6 7 , 1 1 8 0 . . 7 7 1 2 1 9 2 6 0 . 1 . 5 7 2 8 1 1 , 1 8 6 0 . . 8 3 6 1 9 5 3 6 3 . 1 . 4 6 2 l a t o T 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 i s e r u g fi 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 1 2 c e D e r O l a t o T s e v r e s e R l a t e M r e p p o C ) t k ( 1 7 3 9 6 2 0 4 6 7 3 P C l a t e M r e p p o C r e p p o C ) t k ( ) % ( e d a r G ) t M ( s e n n o T l a t e M r e p p o C r e p p o C ) t k ( ) % ( e d a r G ) t M ( s e n n o T l a t e M r e p p o C r e p p o C ) t k ( ) % ( e d a r G ) t M ( s e n n o T ff o - t u C ) % ( e p y T j t c e o r P 1 2 1 7 3 0 9 2 1 6 6 7 5 0 . 5 8 0 . 6 6 0 . . 2 5 6 . 3 4 3 . 4 9 9 1 7 3 4 9 5 6 4 7 5 0 . 9 5 0 . 7 5 0 . . 2 5 6 1 . 6 1 2 . 1 8 - 6 9 1 6 9 1 - 7 0 . 1 7 0 . 1 . 2 8 1 l a t o T - u A t / g 3 0 . l a t o T n e d s r a M . 2 8 1 q E u C % 5 7 0 . l a t o T 6 3 y r n e H t s e n r E e v r e s e R e r O 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 2 2 0 2 r e b m e c e D 1 3 t a s a r e p p o C d e n a t n o C r o f i 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 : 5 l e b a T l e a c M p i i l l i h P . 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 5 3 1 e h t n i d e l i a t e d e c r u o s e R l i a r e n M 2 2 0 2 e n u J e h t n o d e s a b s i e t a m i t s e e v r e s e R e r O d e t r o p e r s n o i t a r e p O y r n e H t s e n r E . s n o i t p m u s s a e c i r p e v r e s e R e r O ) D U A ( u A z o / 0 0 6 , 1 $ d n a u C t / 0 0 0 7 $ g n i s u d e t r o p e r , s i e v r e s e R e r O n o i t a r e p O y r n e H t s e n r E 6 3 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 i s e r u g fi 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 r u t e R r e t l e m S t e N e h t i s r e d i s n o c h c h w s s e c o r p n o i t a u a v e l i c m o n o c e n a h g u o r h t d e n m r e t e d s i i ) ’ q E u C ‘ ( l t n e a v u q e i r e p p o c % 5 7 0 f o d e . i l p p a e d a r g ff o - t u c e h T . “ 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 n i e s a e r c n I l a i r e t a M “ d e l t i t l e s a e e r X S A 2 2 0 2 t s u g u A . 4 0 0 - u A * 1 7 . 1 4 = R S N u A ; . e r e h w 7 7 2 7 / R S N u A + u C = q E u C : s i n o i t a u q e l t n e a v u q e i r e p p o c d e s i l i t u e h T . s t s o c g n i t a r e p o d n a ) R S N ( Changes since 31 December 2022 Mineral Resources and Ore Reserves Statement Evolution’s Mineral Resources and Ore Reserves Statement as at 31 December 2022 was released to the ASX on 16 February 2023 in the report titled “Annual Mineral Resources and Ore Reserves Statement”. Subsequently, an updated Ore Reserve estimate for Ernest Henry as at 30 June 2023 was reported to the ASX on 5 June 2023 and titled “Ernest Henry Mine Life Extended to 2040 – Ore Reserves Doubled”. An updated Mineral Resource estimate for Ernest Henry as at 30 June 2023 was reported to the ASX on 17 August 2023 in the release titled “Further Increase in Ernest Henry Mineral Resource.” A maiden Mineral Resource at West Island was provided in the release titled “Mineralisation extensions at Ernest Henry and Cue Joint Venture Maiden Mineral Resource” and dated 20 July 2023. These releases are available to view at www.evolutionmining.com.au. Ernest Henry Mineral Resource Update The 30 June 2023 Mineral Resource estimate increased to 101.5 million tonnes at 1.25% copper and 0.73g/t gold for 1.3 million tonnes of contained copper and 2.4 million ounces of contained gold (inclusive of mining depletion and sterilisation up to 30 June 2023). This compares to the December 2022 estimate of 94.8 million tonnes at 1.27% copper and 0.75g/t gold for 1.2 million tonnes of contained copper and 2.3 million ounces of contained gold (inclusive of mining depletion and sterilisation up to 31 December 2022). Commodity price assumptions used to report the Ernest Henry 30 June 2023 Mineral Resource are: $2,200/oz for gold; $10,000/t for copper. Table 6: Ernest Henry – Total Mineral Resource at 30 June 2023 Measured Indicated Inferred Total Mineral Resource Dec 2022 Mineral Resource 35.0 1.31 458 0.75 847 35.0 1.29 450 0.76 852 31.5 1.15 363 0.66 668 101.5 1.25 1,271 0.73 2,368 94.8 1.27 1,207 0.75 2,292 Tonnes (Mt) Copper grade (%) Copper tonnes (kt) Gold grade (g/t) Gold ounces (koz) Note: Ernest Henry Mineral Resource is reported within an interpreted 0.7% Cu mineralised envelope 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 Phillip Micale t t e b r o C Ernest Henry Ore Reserve Update l e a h c 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 7 3 The June 2023 Ernest Henry Ore Reserve estimate is 77.4 million tonnes at 0.76% copper and 0.45g/t gold for 589,000 tonnes of contained copper and 1,109 thousand ounces of contained gold. This represents an increase of 299,000 tonnes of copper and 614,000 ounces of gold compared to the December 2022 Ore Reserve estimate of 34.3 million tonnes at 0.85% copper and 0.45g/t gold. The material increase to the Ore Reserve estimate is driven primarily by the addition of the Mine Extension, which has been included following completion of a Pre-feasibility Study in June 2023. The stated Ore Reserve estimate accounts for expected mining depletion to 30 June 2023. Tables 7 – 9 detail the total Ore Reserve and provide a breakdown of the different components. Table 7: Ernest Henry Total Ore Reserves as at June 2023 Proved Probable Total Ore Reserve Dec 2022 Total Ore Reserve Tonnes (Mt) Copper grade (%) Copper metal (kt) Gold grade (g/t) Gold metal (koz) 26.5 1.08 287 0.62 527 50.9 0.59 302 0.36 582 77.4 0.76 589 0.45 1,109 34.3 0.85 290 0.45 495 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 n h t i i w 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 s n o i t a r e p O y r n e H t s e n r E 51 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 52 Table 8: Ernest Henry Ore Reserves as at 30 June 2023 – Contained Copper Table 10: Total West Island Maiden Inferred Mineral Resource Estimate 30 June 2023 Proved Probable Total Ore Reserve Type Classification Tonnes (Mt) Gold grade (g/t) Gold metal (koz) Project Ernest Henry (Base) Ernest Henry (Extension) Cut-off (flow model) Tonnes (Mt) Copper Grade (%) Copper Metal (kt) Tonnes (Mt) Copper Grade (%) Copper Metal (kt) Tonnes (Mt) Copper Grade (%) Copper Metal (kt) 0.75 CuEq 17.6 1.07 189 15.2 0.58 87 32.7 0.84 276 0.50 CuEq 9.0 1.10 99 35.7 0.60 214 44.7 0.70 313 Total 26.5 1.08 287 50.9 0.59 302 77.4 0.76 589 Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding The Ore Reserve estimate is based on the December 2022 Mineral Resource detailed in the ASX release titled “Annual Mineral Resources and Ore Reserves Statement” dated 16 Feb 2023 and available to view at www.evolutionmining.com.au Level footprints are designed to align with Domain 7 (0.70 % Cu), which defines the Mineral Resource, while also maintaining a geometry amendable to caving The cut-off (shut-off) grades of 0.75 % CuEq and 0.50 % CuEq, as applied in the cave flow model software, are determined through an economic evaluation process The utlised copper equivalent equation is: CuEq = Cu + Au NSR/56.4 where; Au NSR = 38.5 * Au - 0.04 Ernest Henry Ore Reserve Competent Person is Michael Corbett Table 9: Ernest Henry Ore Reserves as at 30 June 2023 – Contained Gold Cut-off (flow model) Tonnes (Mt) Proved Gold Grade (g/t) Probable Total Ore Reserve Gold Metal (koz) Tonnes (Mt) Gold Grade (g/t) Gold Metal (koz) Tonnes (Mt) Gold Grade (g/t) Gold Metal (koz) 0.75 CuEq 17.6 0.57 324 15.2 0.30 148 32.7 0.45 472 0.50 CuEq 9.0 0.70 203 35.7 0.38 434 44.7 0.44 637 Project Ernest Henry (Base) Ernest Henry (Extension) Total 26.5 0.62 527 50.9 0.36 582 77.4 0.45 1,109 Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding The Ore Reserve estimate is based on the December 2022 Mineral Resource detailed in the ASX Release titled “Annual Mineral Resources and Ore Reserves Statement” dated 16 Feb 2023 and available to view at www.evolutionmining.com.au Level footprints are designed to align with Domain 7 (0.70 % Cu), which defines the Mineral Resource, while also maintaining a geometry amendable to caving The cut-off (shut-off) grades of 0.75 % CuEq and 0.50 % CuEq, as applied in the cave flow model software, are determined through an economic evaluation process. The utlised copper equivalent equation is: CuEq = Cu + Au NSR/56.4 where; Au NSR = 38.5 * Au - 0.04 Ernest Henry Ore Reserve Competent Person is Michael Corbett Complete Oxide Inferred Partial Oxide Inferred Saprock Total Inferred Inferred 0.1 0.6 1.0 1.7 0.9 2.3 3.1 2.6 4 40 99 142 Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding The Mineral Resource estimate is reported above a 0.73g/t Au cut-off grade and within an optimised pit shell, developed by Evolution using mining, cost, geotechnical and metallurgical assumptions aligned with current operations Total Mineral Resource reported. Joint Venture attribution of gold ounces to Evolution is 106.5koz and attribution of gold ounces to Musgrave Minerals is 35.5koz The Competent Person for West Island Mineral Resource is Phil Micale Competent Persons’ statement The information in this Report that relates to the Mineral Resources and Ore Reserves listed in Tables 6 to 10 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 and is a Member or Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) 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’. 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. Evolution is not aware of any other new information or data that materially affects the information contained in the Ernest Henry Mineral Resource and Ore Reserve estimates at June 2023 and the West Island Mineral Resource estimate at June 2023 other than changes due to normal mining depletion during the six months ended 30 June 2023. 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 11: Competent Persons list for Ernest Henry Mineral Resource and Ore Reserves at 30 June 2023 and West Island Mineral Resource at 30 June 2023 Deposit Competent Person Membership Status Member number Ernest Henry Mineral Resource 30 June 2023 Phillip Micale AusIMM Member 301942 West Island Mineral Resource (EVN 75%, MGV 25%) Ernest Henry Ore Reserve June 30 June 2023 Michael Corbett AusIMM Member 307897 Evolution and Musgrave Minerals entered into an earn-in exploration joint venture agreement in October 2019. Evolution completed the $18 million earn-in requirement to earn a 75% ownership interest in the project and the joint venture formed on 16 December 2022. The Total West Island maiden Inferred Mineral Resource is estimated at 1.7 million tonnes at 2.6g/t gold for 142,000 ounces (Table 10). The Mineral Resource has been reported above a 0.73g/t gold cut-off and within an optimised pit shell developed using a gold price of $2,500/oz. All material reported within the Mineral Resource is considered by the Competent Person to meet reasonable prospects for eventual economic extraction, taking into account the proposed mining technique and assumed metallurgical recovery of 92%. The Mineral Resource estimate is current as of 30 June 2023. West Island Maiden Mineral Resource 30 June 2023 Phillip Micale AusIMM Member 301942 53 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 54 FY23 Sustainability Report “Our commitment to Sustainability is unwavering. Sustainability is integrated into everything we do and our people, who sit at the heart of it, help us relentlessly seek out opportunities to continuously improve.” Peter Smith, Chair of the Risk and Sustainability Committee 55 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 56 Contents FY23 Sustainability Snapshot The Chair of the Risk and Sustainability Committee on Sustainability at Evolution Our Approach to Sustainability Stakeholder Engagement Governance Governance and Compliance Crisis Response (including Pandemic) Anti-Bribery and Corruption Cyber Security Sustainable Procurement Modern Slavery and Human Rights Health, Safety & Wellbeing Work Health, Safety & Wellbeing Transport Safety People and Culture Inclusion and Diversity Employee Engagement Talent Attraction and Retention Community Indigenous Stakeholder Outcomes Cultural Heritage Community Engagement Local Employment Environment Climate Risk Energy and Emissions Effluents and Waste Tailings Management Environmental Compliance Water Management Hazardous Chemicals Management Land Use and Biodiversity Mine Closure: Rehabilitation Glossary FY23 ESG Performance Data FY23 Sustainability Case Studies 59 63 71 75 87 89 93 95 96 98 101 105 107 118 119 122 124 124 127 131 133 136 142 143 147 154 169 170 172 173 175 175 177 179 Acknowledgement of Country We acknowledge our First Nation Partners and Indigenous Peoples and communities 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. We acknowledge the elders for their resilience to pave the way for the generations after and we acknowledge those who continue to educate and empower to maintain and protect all aspects of Indigenous heritage and culture. 57 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 58 FY23 Sustainability Snapshot Safety, Wellbeing and Risk 19% reduction in Total Recordable Injury Frequency to 8.6 in FY23 (FY22: 10.66) supported by risk reduction activities, and no fatalities 100% of Health and Safety Improvement Plan actions completed 17% increase in proactive hazard reporting, and an increase in safety interactions 100% of material and critical actions closed as per target Environment Net Zero1 Progress with a Power Purchase Agreement (PPA) implemented to supply Cowal’s electricity significantly contributing towards Evolution achieving 30% reduction in emissions by 2030 Zero Extreme or Major (Material) environmental incidents (including tailings), and no significant environmental penalties2 Community and First Nation Engagement 4 Shared Value Projects committed to in FY23 ($425k investment) focused on strengthening community resilience and recovery 44% improvement in FY23 freshwater usage (compared to FY20 baseline) with improved water security of 0.19kL/dry tonne milled 11% reduction in emissions3 (compared to FY20 baseline) 100% of actions in Community Relations Plans and First Nation Engagement Plans completed Zero $3.1M material Cultural Heritage Incidents, or Community Negative Impact Incidents in direct community investment in FY23 including Shared Value Project spend of $988k Economic $2.5B contribution to the Australian and Canadian economies4 $261M contribution to local and regional businesses5 and organisations including $230M in direct spend with local organisations (73% increase in local spend compared to FY22) People Top 35 graduate employer, and highest-ranking listed mining company according to Australian Association of Graduate Employers (AAGE) 83% of employees choosing to stay at Evolution in a tight competitive market 18.4% total female workforce representation; comprising 28% female graduate hires, and 14.3% females in senior leadership roles in FY23 (up from 10% in FY22) supported by published gender targets Governance 100% of Assurance activity completed against agreed Evolution Standards and risks 100% Zero of whistleblower complaints (1) investigated and addressed reported cases of bribery or corruption Third Modern Slavery Statement published in 2022, and preparing the next statement following the survey and assessment of 57%6 of medium and high-risk suppliers TNFD V0.4 gap analysis and alignment review undertaken with planning for pre- assessment against the International Sustainability Standards Board (ISSB) 1 Net Zero future commitment of 30% emissions reduction by 2030 and net zero emissions by 2050. Emissions targets are related to Scope 1 and Scope 2 only 2 Aligns with reporting significant fines (>US$10,000) and non-monetary sanctions for non-compliance with environmental laws and/or regulations against GRI 307-1 Environmental Compliance and GRI 2-27 General Disclosures 3 Calculated using market-based methodology and third-party validated. Data is an update to previously reported information 4 Economic contributions include supplier payments, wages, dividend payments, interest, taxes, royalties, community investment, payments to providers of capital and payments to financial institutions (interest) 5 Local and regional organisations are defined by postcode in relation to geographical proximity to Evolution mine sites 6 57% of questionnaires issued were returned in FY23 (FY22: 62%). While the percentage is lower than FY22, the questionnaire was issued to a larger number of suppliers in FY23 Evolution’s ESG Performance Agency FY23 Score FY22 Score FY21 Score S&P Global (previously CSA SAM) MSCI ISS ESG7 Sustainalytics Commitments and Recognition 57 AA 53 AA 51 AA Environment: 1 Social: 2 Environment: 1 Social: 2 Environment: 6 Social: 8 29.8 29.2 40.4 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. We proactively participate in a range of Sustainability surveys, including participation in the Australasian Reporting Awards, to help inform understanding and improve our Sustainability performance. 59 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 60 S&P Global S&P Global Corporate Sustainability Assessment: 7% improvement in year-on-year score. In September 2022, a score of 57 was achieved (industry average of 33) based on FY21 disclosures. Evolution is one of only three gold companies on the Dow Jones Sustainability Index Australia. MSCI8 MSCI rating score of ‘AA’ for resilience to long-term ESG risks. A high rating of AA (on a scale of AAA-CCC) was maintained in FY23, scoring 5.7 compared to the industry average of 4.4. We were placed among the top quartile for Corporate Behaviour, Corporate Governance, Labor Management, and Health & Safety. ISS ESG Maintained low-risk ESG scores, including maintaining a Level 1 for ‘Environment’ and 2 for ‘Social’ 2 (scale from 10-1 with “1” being the highest possible rating). Sustainalytics9 Maintained a ‘Medium Risk’ Rating with ’29.8’ in FY23 (on a scale of 0-40+ with ‘0’ being ‘negligible risk’ (best) and ‘40+’ being ‘severe risk’ (worst). This is a slight decline in scoring from ’29.2’ in FY22. Evolution was ranked in the top 25th percentile globally10. We were ranked 35 out of 120 companies in the precious metals industry and 23 out of 91 in the gold subindustry. United Nations Global Compact Evolution is proud to be a signatory of the UNGC since 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 Sustainable Development Goals (SDGs) and related 2030 SDG targets. The Sustainability Principles align with the UNGC Principles and SDGs. ARA – Australian Reporting Awards Evolution has been recognised by Australia’s leading reporting awards, winning the ‘Silver’ award for the FY22 Annual Report and ‘Bronze’ for the FY22 Sustainability Report, at the 2023 Australasian Reporting Awards. Sustainability Advantage Bronze Partner of Sustainability Advantage, a program of the NSW Government’s Office of Energy and Climate Change since December 2022. Australian Association of Graduate Employers In 2023, Evolution was named as an Australian Association of Graduate Employers (AAGE) Top Graduate Employer. This places Evolution 35th in Australia overall, the highest within the mining industry. Since 2013, Evolution has welcomed over 100 graduate recruits across a range of disciplines, skills and experiences, to gain industry experience and contribute to company culture. In FY23, Evolution welcomed 18 new graduates in roles across the business. We are eager to continue to challenge our graduates and ensure Evolution is the highlight of their career. 7 2023 scores based on previous financial year 8 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 9 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 10 Gold Industry Shared Value Projects The following Shared Value Projects (SVP) were supported in FY23 and are detailed within the Report: New 1. Cowal Flood Response Support 2. The Hope Project 3. Kalarchibold 4. Hunter Valley Greta Bus Tragedy Fund Ongoing 1. University of Queensland’s Research for COVID-19 Immune Response Using Gold 2. Galari Agricultural Company 3. University of Queensland Sustainable Transformational Reuse and Economic Alternatives for Mine Waste Study (undergoing reform) 4. Yalga-binbi Institute Girls Academy 5. 1770 Cultural Connections Immersion Festival 6. Mt Rawdon Pumped Hydro Project 61 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 62 The Chair of the Risk and Sustainability Committee on Sustainability at Evolution On behalf of the Board and Evolution Management Team, I am pleased to present our FY23 Sustainability Report which aims to provide the reader with a summary of how the Company integrates our environmental and social responsibilities into every facet of how we conduct our business. Sustainability is integrated into everything we do at Evolution and has been since the Company’s inception. As the Chair of the Risk and Sustainability Committee, I am proud of the positive impact that Evolution has created in FY23. On behalf of the Board, 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 we believe are making a measurable impact for all. FY23 has been a year of global changes with decidedly local impacts. The combination of political unrest, significant economic pressure, extreme weather and the lingering effects of the global pandemic have placed our business, our people, our First Nation Partners and local communities under significant pressure. Collectively we have worked together to manage these issues, maintain our values and build underlying resilience that will support us all collectively going forward. The Board and I are very proud of the Evolution team’s proven ability to navigate these significant headwinds and emerge stronger for the effort. During the year we have continued to invest in our local communities, supporting social impact relief, liveability, and economic development, whilst building their resilience. It is worth noting that 73% of our employees are locals. We continue to be a significant supporter of being and buying local, thereby promoting the economic future of our communities. Significant social contributions through business activities included a $2.5 billion contribution to the Australian and Canadian economies, with a $261 million contribution to local and regional businesses and organisations. Examples of Shared Value Projects and partnerships are highlighted in this Report, which we are proud to showcase. We operate our business based on our values of Safety, Excellence, Accountability and Respect and our Sustainability performance is focused on the health, safety and wellbeing of our people, First Nation Partners, local communities and our commitment to Net Zero. We hold ourselves to high standards in all of these areas of focus and pleasingly we can report that we have met or exceeded all key metrics set for the period. The underlying commitment to excellence means a continuing review of our capacity to improve and lift the bar higher wherever possible. Evolution is committed to our approach to support positive outcomes for our First Nation Partners and communities. This includes the protection of cultural heritage, being responsible environmental stewards and providing an inclusive workplace where people are physically and psychologically safe, healthy, and well. A key platform for strengthening and broadening relationships in 2023 was the organisation of an Evolution First Nation Summit with both Australian and Canadian First Nation Partners. The event was held in conjunction with the 1770 Cultural Immersion Festival in 2023. People are genuinely our greatest asset, and we remain committed to fostering a more diverse and inclusive workplace where all people feel respected, connected, and can achieve their career development goals. During the year we proudly celebrated WorldPride and NAIDOC across the business and have implemented recommendations from our investigations into structural barriers for women and cultural minorities in Evolution. We remain convinced that increasing diversity brings added strength to our business and results in a healthier workplace for all our people. There is a growing expectation for businesses to provide increased transparency and more efficient communication across Sustainability issues. Our reporting is aligned 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). This formal reporting is supplemented by an internal commitment to proactive and transparent management of disclosures including key emerging matters. Our enhanced reporting has been recognised by key ratings agencies including recognition in the Dow Jones Sustainability Index Australia and maintaining our ‘AA’ rating from MSCI. We published a Third Modern Slavery Statement furthering our commitment to recognising and enhancing human rights, and to work towards meeting our compliance obligations arising from the Australian Modern Slavery Act 2018. We are also pleased to include the third 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. Our efforts in the past year have resulted in measurable improvement in our health and safety performance and with our Net Zero Commitment aligned with our pathway to decarbonisation. Through our Renewable Sourcing Strategy, a first of its kind Power Purchase Agreement was implemented with a major energy retailer that significantly contributes to Evolution achieving its committed 30% reduction in emissions by 2030. We recognise climate risk as a globally significant issue requiring capacity building, collaboration and action now, supported by appointed executives accountable for the management of this risk. This Sustainability Report aims to provide a detailed understanding of the journey Evolution is on with respect to our commitment to a sustainable future for our business, our people, our First Nation Partners, and local communities. I would like to take this opportunity to thank everyone who has contributed to the significant progress we have made in FY23 and look forward to meeting the challenges of coming years with the comfort we have created an excellent platform for a long-term sustainable future. Be well and safe Peter Smith Chair of the Risk and Sustainability Committee 63 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 64 About Evolution Evolution Mining Limited (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 FY23 produced 651,155 ounces of gold at an All-in Sustaining Cost of $1,450 per ounce – continuing to position Evolution as one of the lowest cost global producers: • Cowal in New South Wales on the lands of the Wiradjuri People • Ernest Henry in Queensland on the lands of the Mitakoodi People • Mungari in Western Australia, on the lands of the Marlinyu Ghoorlie People and other knowledge holders • Mt Rawdon in Queensland located within the traditional lands of the Bailai, Gurang, Gooreng Gooreng, and Taribelang Bunda People • Red Lake in Ontario, Canada on the traditional territory of Treaty 3 on the lands of the Wabauskang and Lac Seul First Nations Our operations are located solely in Tier 1 jurisdictions Our Purpose Our Strategy To deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way. Our Vision Inspired people creating a premier global gold company. Since the formation of Evolution in November 2011, we have had a consistent strategy to ensure the business prospers through the cycle: • Create sustainable value for stakeholders in an environmentally and socially responsible way • Driving a high performing culture with values and reputation as non-negotiables • Being willing to take appropriate geological, operational and financial risks • Building a portfolio of up to 8 assets in Tier One jurisdictions generating superior returns • Having financial discipline centred around margin and appropriate capital returns Red Lake Ernest Henry Mt Rawdon Mungari Cowal Our Values Our values guide our behaviours and the decisions we make in the workplace every day: Safety, Excellence, Accountability and Respect. Safety Think before we act, every job, everyday 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 By creating sustainable value for our stakeholders in an environmentally and socially responsible way, we can protect and empower people, respect and advance human rights, foster local socioeconomic development and enhance our environment. Lawrie Conway Managing Director and Chief Executive Officer 65 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 66 About this Report This Sustainability Report (Report) is a summary of Evolution Mining Limited’s material Sustainability topics and performance for the financial year ended 30 June 2023 and marks the sixth year of annual reporting. All references to ‘Evolution’, ‘the Company’, ‘the Group’, ‘we’, ‘us’ and ‘our’ refer to Evolution Mining Limited (ABN 74 084 669 036) and the entities it controlled, unless otherwise stated. Refer to our 2023 Annual Report for further information. Reporting Period Reporting Frameworks This Report covers the period from 1 July 2022 to 30 June 2023. References in this Report to ‘year’ are to the financial year ended 30 June 2023 unless otherwise stated. Published Date This Report was published on 18 October 2023. Boundary and Scope This Report covers operations at our 100% owned gold mines in Australia and Canada: Cowal in New South Wales, Ernest Henry and Mt Rawdon in Queensland, Mungari in Western Australia, Red Lake in Ontario and exploration activities in Australia and Canada. Unless specified, all figures in the Report include the abovementioned operations for the period of ownership. Entities that we do not control, but have significant influence over, are included in the form of disclosures of management approach. The Report does not include data from equity interest fields/projects, such as joint ventures, where we are not an operator. The locations of our operations are shown on the previous page. This Report should be read in conjunction with the 2023 Annual Report for information pertaining to our financial Sustainability and performance. We engage with key internal and external stakeholders to ensure we understand, and report on, material Sustainability risks and opportunities as well as how these risks and impacts are managed. This Report has been prepared in line with the following frameworks: • Global Reporting Initiative (GRI) Standards (Core Option) • Recommendations outlined by the Task Force on Climate-related Financial Disclosures (TCFD) • United Nations Global Compact (UNGC) – Evolution is a signatory to the UN Global Compact, with this document along with our referenced information serving as our Communication on Progress • United Nations Sustainable Development Goals (SDGs) • Key elements of the Task Force on Nature-related Financial Disclosures (TNFD) V0.4 following its final beta framework • ASX Corporate Governance Recommendation 7.411 We voluntarily engage with ESG rating organisations that assess and rank our Sustainability performance. These include S&P Global (CSA SAM), MSCI, ISS ESG and Sustainalytics. ESG Performance Data Our FY23 ESG Performance Data discloses our performance against our Sustainability targets and metrics for the financial year and includes index tables in alignment with the GRI and other ESG frameworks. This document is available to view at https://evolutionmining.com.au/sustainability-landing/ and should be read in conjunction with this Report. 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. Feedback We welcome your feedback and questions about our Sustainability performance and Sustainability related disclosures. Please direct your enquiries to Fiona Murfitt - Vice President of Sustainability at esgreporting@evolutionmining.com Approval This Report has been approved for release by the Board of Directors. 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. Independent 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) and undertaken on Canada’s National Inventory Report (NIR). Technical experts have also been engaged to complete a range of internal and third party audit processes on environmental and social aspects. Currency References Currency is expressed in Australian dollars unless otherwise stated. Forward Looking Statement This Report contains 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. 11 ASX Corporate Governance Principles and Recommendations 67 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 68 69 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 70 Our Approach to Sustainability Purpose Statement Our objective is to deliver long-term stakeholder value through safe, reliable, low-cost gold production in an environmentally and socially responsible way. We link our stories with transparent disclosure to deliver against our regulatory obligations, demonstrate the positive impact we make through strong partnerships, and to highlight the opportunities and risks to creating sustainable value for our stakeholders. Our Sustainability Journey Since our journey began in 2011 with the creation of Evolution, our commitment to Sustainability has been core to our business and has informed who we are and how we think about our relevance in the decades to come. Our first Sustainability Report was produced in FY18 and since FY21 we have seen a step change in our Sustainability journey, leveraging off the increased capability and experience within our business. People have been integral to our success. We have fostered strong relationships with our First Nation Partners and the communities in which we operate, and it’s our people who work to protect the environment and improve biodiversity outcomes, and all those whose efforts are about building positive legacies that have contributed to our progress. We genuinely want our people’s time at Evolution to be the highlight of their career. The Sustainability landscape is dynamic and there has been a shift in expectations, internally and externally, particularly related to climate risk and the drive for equality and inclusion and also in the demand for increased transparency on ESG disclosures. Our performance has continued to improve, particularly for our stated climate risks including emissions and water which has been externally recognised. We have an AA rating from MSCI and are one of only three gold companies listed on the Dow Jones Sustainability Index Australia. We continue to be a significant supporter of being and buying local and promoting the economic future of our communities. Today, 73% of the people who work for Evolution are locals. In FY24 our focus will continue to be on integrating Sustainability improvements and aligning to external assurance obligations. We will continue to implement improved assurance mechanisms to continuously monitor and respond to changes in Sustainability and ESG that may impact our business, including emerging disclosures, climate change risk, nature-related risk, inclusion and diversity, psychological safety, and reconciliation. By harnessing our talent, experience and living our values, we remain excited to deliver the positive legacy for our employees, our communities and the stakeholders that join us on our journey. Our Sustainability Principles Our Sustainability approach is guided by nine Sustainability Principles in alignment with the UNSDGs that we have prioritised for our business. Advance the outcomes for indigenous peoples and protect their cultural heritage Be an employer of choice attracting the most talented people and foster a safe, diverse, and inclusive workspace Actively manage climate-related risks and opportunities including improving energy efficiency and the responsible management of water Demonstrate robust risk management and safety leadership Respect the human rights of all our stakeholders Protect and enhance our reputation as a trusted partner and provide community benefits that endure beyond the life of our mines Contribute positively to local, regional and national sustainability efforts by achieving an outstanding level on environmental stewardship Relentlessly drive for operational excellence through an innovative culture and inspired people delivering to plan 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 71 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 72 Sustainability: Integrated into Everything we do Storytelling & ESG Reporting Shared stories strengthen reputation. Resilient to change with improved disclosure and advocacy Health, Safety and Wellbeing Unlock potential through leadership to develop protective behaviours Governance and Assurance Assurance to promote ongoing improvement Felt Leadership Risk Management including Climate-related risk Disciplined, consistent and reliable management including towards our Net Zero future Community & Indigenous Engagement and Cultural Heritage Social licence to operate through targeted community plans, protecting cultural heritage and First Nation Partner relationships Environmental Management including Water Commitment to reduction in environmental footprint Our Sustainability Strategy: Integrated Into Everything We Do Sustainability and Strategic Planning Policy 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. The model above demonstrates how we integrate Sustainability and create long-term stakeholder value, and at its heart is our people – where our leaders are visible and our people feel engaged, fit and capable to be their best. Beginning with health, safety and wellbeing, we are never satisfied with our performance, and we strive for continuous improvement. This is enabled through operational discipline in our risk management including climate-related risk, environmental management, cultural heritage, and ESG reporting. Supporting this is our assurance and continuous improvement amongst a changing landscape. Finally, we share our stories to showcase and advance our performance. The Sustainability and Strategic Planning Policy12 outlines how Sustainability is integrated into the business. It focuses on holistic risk management for our employees and business partners in: • Health, safety and wellbeing • Environment • Cultural heritage • Human and Indigenous 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 Standards13 and Strategic Planning Standards support the Sustainability and Strategic Planning Policy in defining the minimum acceptable risk requirements to be met or exceeded in all areas of the business, including operations, exploration and Group activities, and business partners. In FY23, the internal audit process for assessing compliance with these standards continued to be uplifted with a focus on a compliance and best practice framework. There is an ongoing review by each asset against these Standards which are triggered by internal or external incidents, regulatory changes and or audit and assurance activity. Detailed LOD2 reviews and LOD1 reviews by assets have been completed for nine of the standards in line with an approved audit schedule14. Sustainability and Strategic Planning Framework Integrated Risk Management Framework Sustainability Principles Sustainability & Strategic Planning Policy Sustainability & Strategic Planning Standards Management System, Operating Processes and Procedures Assurance Program 12 Sustainability and Strategic Planning Policy 13 Sustainability Performance Standards 14 Due to a weather event at Ernest Henry, Management approved an adjustment to the plan to merge FY23 and FY24 Audit schedules with on site visits postponed to FY24 post the weather event. 100% of assets completed reviews for agreed Evolution Standards and risks in FY23 73 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 74 Voluntary ESG Disclosures and Commitments to Industry and International Initiatives We voluntarily align or adhere to the ESG-related industry reporting frameworks and initiatives presented in the table 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. Voluntary Disclosures Global Reporting Initiative (GRI) Standards Reporting of ESG performance in accordance with GRI requirements since FY21 Task Force on Climate-related Financial Disclosures (TCFD) Commenced reporting in line with TCFD in FY20 Over 90% aligned with TCFD in FY23 based on assessment by external consultants Task Force on Nature-related Financial Disclosures (TNFD) Undertook gap analysis and alignment review with TNFD V0.4 in FY23 The Greenhouse Gas Protocol: A corporate accounting and reporting standard GHG emissions disclosed in accordance with this standard International Sustainability Standards Board (ISSB) Liaising with industry associations and experts to review, benchmark and undertake pre-assessment analysis against company-wide performance Industry Initiatives International Cyanide Management Code (ICMC) Cowal and Red Lake certified to ICMC 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 Church of England Disclosure Tailings storage facilities disclosed in the Church of England Tailings Dam Management Disclosure which is certified by Evolution Mining’s Chief Executive Officer International Business Initiatives United Nations Guiding Principles on Business and Human Rights (UNGP) 2022 Modern Slavery Statement aligned with the UNGP United Nations Global Compact (UNGC) Joined UN Global Compact in 2021 Communication of Progress to the UNGC reported annually Member of UNGC Network Modern Slavery Community of Practice Sustainability Development Goals (SDGs) Positively contributing to progress on the SDGs most relevant to our operations through our activities and initiatives, aligned with our Sustainability Principles Collaborative efforts with government, civil society and other businesses Stakeholder Engagement (material topic) Management Approach What is important to our stakeholders is important to us as it informs our strategic objectives and helps us to deliver against our obligations. This requires ongoing and effective engagement, where we provide transparent and timely information, listen and actively encourage feedback from all stakeholders. The Stakeholder Engagement Performance Standard facilitates a consistent approach to engaging with communities, First Nation Partners, employees, contractors, suppliers, and other stakeholders. Each operation maintains a systematic stakeholder mapping process. At intervals, independent social impact assessments are completed to identify and prioritise stakeholder interests and needs. All operations, exploration sites, and projects identify, prioritise and directly engage with local and Indigenous communities. They focus on: • Understanding the potential impact of all activities on local communities and the rights of Indigenous communities • 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 collaboratively in decision-making on all activities and issues of mutual interest • Maintaining Evolution’s regulatory and social licence to operate The following table summarises the stakeholder groups engaged in FY23, key interests and concerns, and how we generally respond. Key stakeholder engagement updates are regularly provided to Management and to the Board Risk and Sustainability Committee at each meeting. Stakeholder type Employees and Contractors How We Listen What Matters How We Respond Frequency More Info • Engaged people that feel like they belong and are at their best • Regular daily and weekly communications • Promoting • Fostering a Evolution’s values Daily, weekly, monthly, quarterly, half-yearly and annually Sustainability Report: People & Culture • Regular feedback sessions, performance reviews and personal development plans • Engagement surveys, onboarding & exit surveys, stay interviews • Living our Values Conversations • Group and operation townhalls and meetings • Communities of Practice • Employee support networks including Whistleblower Reporting, Workplace Contact Officers, EAP values-led culture optimising performance • Safe and healthy People • Having the right tools and resources and being enabled to do their job • Receiving regular performance feedback • Career & development opportunities • Ongoing safety, health and wellbeing initiatives • Regular all staff meetings • Daily site prestart meetings • Regular site townhalls and updates • General Manager email updates • Fortnightly business updates from CEO • Formal and Informal Management and Board review • Management of • Investor briefings Investors and Analysts • Regular meetings with investor representatives and financiers financial and non- financial risks • High-quality corporate governance • Consistent financial returns • Sustainability and climate risk management • Health and safety performance • Cultural heritage management Regular corporate schedule and teleconferences As and when required Annual Report Corporate Governance Statement Regular schedule of meetings As and when required Sustainability Report: Community • Full-year and half-year results briefings • Investor Day and site visits • Annual General Meeting • ASX announcements • Commitment to global best-practice ESG reporting frameworks • Targeted specific meetings • Regular community consultations and communication • Targeted community investment programs, Shared Value Projects etc. • Deliver on cultural heritage and Native Title agreements • Regular participation at cultural events • Survey and cultural assessment activity First Nation Partners and Indigenous Peoples • Regular community • Local employment, and cultural heritage meetings training and development • Stakeholder • perception surveys Indigenous procurement and Economic benefits • Community grievance mechanisms • Community events and information sessions • Local social and other media channels • Cultural heritage management and protection • Cost of living and impacts on local services • Cultural safety • Capacity building and recognition • Policy advocacy and legislative changes 75 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 76 How We Listen What Matters How We Respond Frequency More Info Stakeholder type Government and Regulators • Ongoing dialogue with regulators, government agencies and broad range of political stakeholders Non- Government Organisations • Input into social and environmental impact assessments • Regular participation in industry forums and associations Regular schedule of meetings Sustainability Report: Environment As and when required Sustainability Report: Community As and when required Sustainability Report: Community • Environmental, • Regular cultural heritage, social and health and safety performance engagement with all levels of government • Direct submissions • Climate change and greenhouse gas emissions • Regulatory compliance and transparency • Human rights • Cultural heritage • Economic benefit • Policy advocacy • Climate change and greenhouse gas emissions • Cultural heritage and human rights • Environmental management • Transparency and reporting • Governance to state and federal governments’ consultation processes • Contribute to industry and business associations • Engagement on Shared Value Projects • Commitment to international climate initiatives and reporting frameworks • Partnerships for environmental research and Industry activity • Engaged in the UNGC As and when required Sustainability Report: Sustainable Procurement Modern Slavery Statement Suppliers and Contractors • Supplier • Supply • Collaborate to networking events • Workshops with local business networks • Regular reciprocal supplier performance reviews • Embedded supplier relationship management with Tier 1 suppliers • Supplier feedback survey opportunities for projects • Health, safety and environment advancement • Emissions partnerships • Supporting Indigenous and local contractors • Technology and innovation • Capable and effective employees • Emerging sustainability expectations deliver tangible health, safety and environment improvements • Partnership to address emissions • Collaborate to improve Indigenous engagement outcomes • Support programs to develop local business capacity and capability • Engagement on Modern Slavery Our Material Sustainability Topics In this Report, a Material Sustainability topic is one that reflects the most significant economic, environmental and/or social impacts and risks arising from our operations and value chain, or one that could substantively influence the assessments and decisions of our stakeholders, in accordance with the GRI. The content of this Report was determined through an independent materiality assessment undertaken in FY21, which was reviewed internally in FY22 and FY23. The assessment aligned with GRI, IAP2 Spectrum and the AA1000 Series of Standards. It identified the most important environmental, social and governance issues for key external and internal stakeholders. This helps us to prioritise Sustainability actions and risk management, inform our Sustainability strategy and ensure we report on the most important issues for 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. As we reach the feedback phase of this cycle, Evolution recognises the value of a qualitative and quantitative impact valuation methodology and considers its implementation. The assessment is updated to reflect emerging issues. Evolution’s Four Step Process to Identify What Matters Identify 1 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 and 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 2 3 4 77 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 78 Materiality Matrix Our Materiality Matrix is the outcome of our independent materiality assessment. All topics have been identified as important to Evolution and its stakeholders from direct and indirect influence areas and are listed in alphabetical order. All issues important to our stakeholders are important to us, however, several have been prioritised. Through the assessment, the topics have been prioritised along the range of Priority 1 (Business critical), Priority 2 (Extremely Important), Priority 3 (Highly Important), and Priority 4 (Important). Priority 1 3 Business Critical Highly important 2 4 Extremely important Important 3 2 1 • Cyber Security • Employee Engagement • Hazadous Chemicals Management • Transport Safety • Governance and Compliance • Indigenous Stakeholder Outcomes • Stakeholder Engagement • Talent Attraction and Retention • Community Engagement • Culural Heritage • Energy and Emissions • Work Health, Safety and Wellbeing • Climate Risk • Diversity and Inclusion • Tailing Management 4 3 2 • Effluents and Waste • Innovation and Technology • Crisis Response (inc. Pandemic) • Environmental Compliance • Land Use and Biodiversity • Local Employment • Mine Legacy and Rehabilitation • Water Management 4 3 • Anti-Bribery and Corruption • Modern Slavery and Human Rights • Sustainable Procurement Influence on stakeholder impacts and decisions s t c a p m i l a i c o s d n a t n e m n o r i v n e , c i m o n o c e f o e c n a c fi n g S i i Evening sky at Ernest Henry captured by Adrian Hermsen Wildflower meadow at Lake Austin by Sam Inskip 79 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 80 FY23 Material Topics Mapped Against the United Nations SDGs and Evolution Sustainability Principles Evolution recognises our impact to and the opportunity to positively contribute to the United Nations SDGs. Following our independent materiality assessment in FY21, we undertook a mapping exercise of our material topics against the SDGs. Further to this, we have mapped and prioritised several SDGs to inform our Sustainability Principles mentioned previously. E n v i r o n m e n t a l G o v e r n a n c e EVN Material Issues Climate risk Ability of the organisation to adapt and respond to the impacts of climate change. Includes physical risks such as extreme weather events and transitionary risks Effluents and Waste Waste rock, industrial waste, organic and inorganic waste Energy and emissions Environmental Compliance Land Use and Biodiversity Mine Closure: Rehabilitation Monitoring, management and reduction of carbon emissions including aspects such as fuel types, energy efficiency, renewable technologies Regulated incidents and impacts including: i.e. noise, environmental discharges, air emissions and cyanide Biodiversity and ecosystems protection and restoration. Audited, mapped and management plans in place. Fire, pest and weed strategies Restoring land to natural state or suitable for future uses such as conservation, agriculture, clean energy industry Tailings Management Most significant mining waste stream Water Management Anti-Bribery and Corruption Security of supply, quality, efficiency of water use, reuse and recycling opportunities. Potential impacts on community and environment Commitment to integrity Cyber Security Equipment failure, equipment misuse, fraudulent transaction/impersonation Governance and Compliance Hazardous Chemicals Management Innovation and Technology Stakeholder Engagement  Sustainable procurement Transport Safety Community Engagement Crisis response (inc. Pandemic) Cultural Heritage Diversity and Inclusion S o c a i l Employee Engagement Indigenous Stakeholder Outcomes Local Employment Mine Closure: Legacy Modern Slavery and Human Rights  Talent Attraction and Retention Work Health, Safety and Wellbeing Ethical business conduct, robust policy, transparent reporting Use, storage, handling, transport and disposal of hazardous chemicals including explosives and other dangerous goods New technologies, digitisation, renewables, infrastructure, automation, circular economy Reporting and engagement with investors, customers, Traditional Owners, regulators, local authorities etc Purchase goods and services responsibly: human rights, environmental issues, Indigenous corporations, security, and supplier conduct Road and aviation accidents. Road dust from transportation to and within the mining sites Indigenous and non-Indigenous community engagement. Managing community expectations and grievances. Delivering on mutually beneficial agreements and investing in developing our local communities Business resilience to COVID, bushfire, and other health and environmental emergencies. Business preparedness and continuity Working with Indigenous communities to protect places and items of cultural significance. Indigenous engagement All forms of diversity and inclusive design of workplaces. Gender strategy aligned with WGEA: ‘female participation in mining’. Cultural awareness and inclusion training Organisational culture, ethical leadership, code of conduct, inclusive leadership and flexible work conditions Economic and education opportunities, community and health outcomes for Indigenous stakeholders Commitment to employ locals where possible, followed by a preference for relocation over FIFO Restoring land to natural state or suitable for future uses such as conservation, agriculture, clean energy industry Australian modern slavery legislation. Work hours, fair pay, supply chain transparency Appealing to new, experienced and diverse talent, targeted training, career growth and development Physical and mental health. Employee and contractor safety, occupational hygiene Evolution Sustainability Principles Alignment 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 81 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 82 FY23 Sustainability Performance Targets Measures and targets were set to quantify our progress toward key strategic objectives for FY23. Performance against these goals, measures and targets were aligned with the Sustainability Principles and our FY23 Balanced Business Plan (BBP). The BBP is designed to be a balanced scorecard supported by five key business pillars: Sustainability, People, Operations, Growth and Financial Outcomes. Performance (progress against key targets) In FY23, Evolution’s Sustainability Performance was delivered on or better than target across Environment, Health and Safety, People, Community, and ESG. This achievement demonstrated resilience, coordinated effort and collaboration across the business with everyone working together to safely deliver. Each of the operations have continued to deliver against their Health, Safety, Environmental Permitting and Approvals and Community Improvement Plans to support the conclusion of the FY23 BBP. The key focus areas of risk register reviews/updates, critical control verifications, infield activity and closure of material and critical actions continued throughout the period. Notably, significant progress was made on the delivery of the Net Zero Future BBP Project, including the reduction in absolute emissions compared to FY20 baseline. 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 to improve our performance. 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 and field interactions, action close out and participation in weekly learning calls. There has been an ongoing commitment to the review of material actions to ensure these are addressed and closed out on time (100% was achieved for FY23). These actions are reviewed on a weekly basis and reported on monthly, demonstrating a high level of confidence in reporting. The table to the right provides a snapshot of our Sustainability performance against key FY23 targets and objectives. FY24 Sustainability Performance Targets Board approved Sustainability performance targets have been set to address our material Sustainability topics through our FY24 Balanced Business Plan and Net Zero Commitments. To develop these targets, we engaged at the Group and operational level, considered our material risks and emerging global and sectoral challenges, and focused on our commitments to the UNGC and Paris Agreement. In FY24, Evolution will monitor against targets in Sustainability, People, Operations, Growth and Financial Outcomes. 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/ Objectives and Targets Environment Achieve <0.34kL freshwater demand per dry tonne milled (DTM) Progress on Net Zero commitment Timeframe Progress Against Targets and Objectives Progress Against Targets FY23 • Achieved 0.19 kL freshwater demand per dry tonne milled (DTM) against a target of 0.34 2050 • 11.2% reduction15,16 in absolute emissions compared to FY20 baseline • Maintained 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 and developed and integrated internal emissions modelling tools to assess the impact of acquisitions and projects on our Net Zero performance and FY20 baseline • Further validated decarbonisation roadmap against a 1.5 and 2-degree scenario • Completed energy audit and decarbonisation roadmap for Mungari • Conducted independent audit of Scope 3 emissions, and continuing to build internal capability, data collection and reporting • Developed and implemented the Renewable Sourcing Strategy, resulting in the Cowal PPA Net Zero Future Project FY23 • Delivered to target with 100% of milestones complete Health and Safety Total recordable injury frequency (TRIF) per million work hours at or below 9.33 Bowties/risk registers completed for material risks 100% of actions closed out for material and critical risks 100% of actions in targeted Health and Safety Improvement Plans completed FY23 • Zero fatalities • Recorded 8.6 TRIF - better than target. Cowal was the strongest performing operation FY23 • 100% completed with independent external validation of the data (LOD3) with no major gaps FY23 • 100% completed with independent external validation of the data (LOD3) Ongoing/ FY23 • 100% of actions in Health and Safety Improvement Plans completed Taking a photo of the coarse ore stockpile at Cowal by Joseph Connell 15 Update of the previously reported preliminary result of ~9% following external audit and final verification 16 Utilises market-based methodology 83 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 84 Timeframe Progress Against Targets and Objectives Progress Against Targets FY23 • 83% of people chose to stay with Evolution FY23 • 92% of employees rated their onboarding positively FY23 • 80% of employees completed their stated training and development goals FY23 • 100% of Leaders and 94% of employees attended training by 30 June Objectives and Targets People 85% or more of our people choosing to stay with Evolution 90% or more of all new hires rating onboarding positively 80% or more of training and development actions completed 100% of Leaders attending Leading Inclusion Training and 100% of employees attending Inclusion Awareness Training 100% of people having meaningful values and culture conversations FY23 • 100% of employees had a meaningful values and culture conversation with a Senior People Leader other than direct supervisor or manager Community 100% of actions in First Nation Partner and Community Plans completed Zero Material cultural heritage incidents FY23 • • 100% of Actions in Community Plans completed 100% of Actions in First Nation Partner Plans completed FY23 • Zero Material cultural heritage incidents ESG Externally validated third- party performance FY23 TCFD alignment FY23 • 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 FY23 • Completed scenario analysis (energy and emissions and water security) for Cowal in FY22, and completed scenario analysis (energy and emissions and extreme weather events including storms) for Mungari in FY23 as part of further alignment with TCFD recommendations • Third-party validation and benchmarking of our FY22 and FY23 TCFD Reporting TNFD alignment FY23 • Completed TNFD V0.4 Gap analysis and alignment review against Evolution’s corporate governance practices 85 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 86 Boilermaker at Mt Rawdon by Prabhu Muthuveeran Governance 87 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 88 Governance While landscapes and stakeholder expectations shift, our commitment to responsible business principles and continuous improvement remain constant. We aim to be a trusted partner and neighbour. Through our adherence to and assurance against rigorous standards and robust oversight, no material sustainability events have occurred. We simultaneously identified opportunities for improvement consistent with the high standards we set for ourselves. Evan Elstein, Company Secretary Governance and Compliance (material topic) Management Approach Board of Directors We are committed to ensuring that our obligations and responsibilities to various stakeholders are supported through robust and transparent corporate governance practices. Adopting and operating in accordance with high standards of corporate governance enhances our sustainable long-term performance and value creation for all stakeholders. Our 2023 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 2023, the Directors believe that our governance arrangements align with the fourth edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations. Where the Company’s corporate governance practices do not meet with all the practices recommended by the Council, or the Board does not consider it practicable or necessary to implement, the Board’s reasoning for any departure is explained in the 2023 Corporate Governance Statement. As per Recommendation 7.4 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the Sustainability Report provides detailed information on the management of Evolution’s material environmental and social risks, with a specific focus on climate risks and nature, in alignment with the TCFD and TNFD V0.4. 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 role of the Risk and Sustainability Committee, as set out in its charter, is to advise the Board and oversee the Company’s Risk and Sustainability management systems, policies, practices and plans on behalf of the Board and report the results of its activities to the Board is set out in its Charter. The responsibilities of the Risk and Sustainability Committee include oversight of the following areas: Health, Safety and Security; Environment and Tailings Dam Governance; Community and Social Performance; Human Rights; Cultural Heritage; Operational Risk Management; Business Risk Management; and Legal and Regulatory Compliance. The Company is committed to the identification, monitoring, and management of material business risks of its activities via the Risk Management Framework. The Sustainability and Strategic Planning Policy and Sustainability Performance Standards are available on the Company’s corporate governance page on the Company’s website and can be accessed here. The Risk and Sustainability Committee formally reviews and endorses the Report for approval by the Board and ensures that all material topics are covered. Board Diversity Linking Remuneration to Sustainability We recognise the benefits that diversity provides to our Board of Directors. A diverse mix of skills, expertise, experience, perspectives, gender, 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. In alignment with the Australian Government’s Workplace Gender Equality Agency and the Australian Securities Exchange (ASX) recommendations, Evolution maintains a target of not less than 30% female representation on the Board to ensure appropriate gender representation at the Board level. As of 30 June 2023, the Evolution Board has eight members (75% male and 25% female); six are independent, non-executive Directors (67% male and 33% female) and two are executive (100% male). The Board is structured to ensure that the Directors’ skills and experience align with our goals and strategic direction. Additional workshops and discussions are also facilitated to update the Board on material matters, particularly on emerging risks. An example of this was the Board Risk Workshop conducted in FY23. 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 to view in the Corporate Governance section of the website. The material changes to policies in FY23 were the review and update of the Inclusion and Diversity Policy17, and the publication of the third Modern Slavery Statement18. Policies are available to view in the Corporate Governance section of the website. The following policies were also reviewed in FY23: To reflect our commitment to Sustainability, ~30% of the annual short-term incentive plan (STIP) was linked to the achievement of specific Sustainability goals and targets. In addition to this, one of the key factors the Board considered as part of the strategic imperatives element of the STIP, was the Company’s progress on Net Zero. More information can be found in the FY23 Annual Remuneration Report (Evolution Mining Limited Directors’ Report 30 June 2023). All data related to Sustainability metrics for STIP payments are validated via external audit processes. Assurance and Audit An annual assurance plan is approved by the Leadership Team and is submitted to the Risk and Sustainability Committee for endorsement. In FY23, an adjustment was made to the plan with a decision to merge some elements of the FY23 with the FY24 schedule. Findings from the FY23 assurance activity, showed there were areas for improvement identified across the Sustainability portfolio. As part of the assurance process, all operations were required to submit remedial action improvement plans for approval and ongoing tracking and reporting. A leading indicator on ensuring all material and critical actions is 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 FY23 there were no overdue critical or material actions. This data is also validated and independently audited. • External Communications Policy • Shareholder Communication Policy • Securities Trading Policy • Social Media Policy • Climate Risk Position Statement 89 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 90 17 Inclusion and Diversity Policy 18 Modern Slavery Statement Governance Framework Shareholders Board of Directors Executive Chair Board Sub Committees Nomination and Remuneration Audit Risk and Sustainability Delegation of Authority Leadership Team TSF Governance Committee Senior Management Investment Management Committee Corporate Culture, Values and Behaviour Performance Standards, Policies and Procedures Integrated Risk Management The Governance Framework informs our Integrated Risk Management Framework. Risk Mitigation and Management The effective identification, understanding and mitigation of risks enables the successful execution of our strategic objectives. A rigorous risk management framework and system of internal controls has been established that informs decision making in support of creating sustainable value. Evolution’s risk-based decision approach is underpinned by our Sustainability and Strategic Planning Policy, associated Standards, and the Integrated Risk Management Framework. Supporting systems and procedures have been developed and are maintained at Group and Operations to align with these key systems and the principles of international standards and ICMM guidance. In FY23, the Integrated Risk Management Framework and Group and Site Risk Registers were reviewed in detail with attention to the Group’s enterprise and operational material and critical risks. The intent was to drive further review, oversight and control of risks most material to the business. Our Integrated Risk Management Framework is based on ISO 31000 Risk Management Guidelines and includes risk identification, analysis, monitoring, mitigation and reporting. The approach and related processes consider a broad spectrum of stakeholders and potential internal and external risk exposures. They assist in identifying and leveraging potential downside and upside, risk- related opportunities. At Operational and Group levels, we conduct risk assessments to evaluate enterprise and operational risks that may impact people, health and safety, environmental, social, business, assets, finance, and reputational risks and opportunities, among others. Scheduled risk evaluation reviews are conducted by functional risk owners, Group and site-based risk champions, and senior leaders at the business, functional and operational levels. The Risk and Sustainability Committee is responsible for overseeing business-wide 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 business 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. Industry Associations Involvement with memberships and industry associations keeps us current and aligned 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 and public position, but where there is a benefit in constructive dialogue or advocacy, membership is maintained. In FY23, we maintained representation with Industry Working Groups in all jurisdictions that also helped to address transitional climate risk. 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 Yes Yes Chamber of Minerals and Energy of Western Australia No Gold Industry Group (Australia) Lake Cowal Foundation (Australia) Ontario Mining Association (Canada) West Wyalong Advocate NSW Government Sustainability Advantage United Nations Global Compact Electric Mine Consortium Yes Yes No Yes N/A No N/A Yes Yes Yes Yes Yes Yes N/A Yes Yes (Modern Slavery Communities of Practice) Yes CASE STUDY Evolution and Sustainability Advantage Partnership Evolution aims to be a neighbour and partner of choice in the work we do within our business and communities. We’re particularly proud to have been in partnership with Sustainability Advantage, since 2020 – a business support service provided by the NSW Government’s Office of Energy and Climate Change. The partnership helps organisations improve their environmental performance, reduce costs and add value to their business. It has enabled Evolution’s participation and progress in the: • ‘Partnering with Nature’ Diagnostic • NZELA 2021 (Sustainability Advantage Net Zero Emissions Leadership Accelerator) • Circular Transition Indicator Training (CTI July 2022) • Carbon Evaluation Tool Project with Sustainability Panel Consultant 2XE • Task Force for Nature-Related Financial Disclosures (V0.4) Gap assessment. Through this partnership, Evolution has upskilled and prepared our people to lead, and offered governmental and stakeholder support in navigating the dynamic and emerging aspects of ESG management, including with regards to physical and transition climate risks, nature-related risks, and circular economies. It has also resulted in Evolution being recognised as a Partner of Sustainability Advantage at Sustainability Advantage’s 2023 Recognition Event celebrating the achievements of members and acknowledging their commitment and actions. We are eager to maintain this partnership, as well as pursuing and engaging projects that are mutually beneficial to Evolution, Sustainability Advantage, and the surrounding communities. 91 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 92 VP Sustainability, Fiona Murfitt accepting the Award from Minister for Climate Change, Penny Sharpe Regulatory Compliance Extreme Weather and Health Events Regulatory compliance supports 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 FY23, there were no material incidents and one event related to a penalty infringement notice of a value (less than US$10,000) that was issued to Mt Rawdon operations for a non-compliance associated with extended, unseasonal rainfall in late 2022. There was no environmental harm related to this event. There has been no other formal enforcement action undertaken by a relevant government authority in FY23. 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 are checked for effectiveness to mitigate the risk likelihood and consequence of any potential event. The control 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 FY23, Evolution’s crisis management was ongoing given the frequency and nature of flood, fire and water events that impacted the various operations and communities. Management of COVID-19 was considered to have moved to business-as-usual. These live events provided real life experience and exercises in crisis management, involving operational and Group teams. The Evolution Climate Risk Position Statement was reviewed in FY23 and reflects that extreme weather was identified as one of four material climate-related risks to the business, along with water security, energy and emissions, and extreme health events. Each operation is located in geographically unique parts of Australia and Canada, often adjacent to landholders and regional communities, where support for the communities and other nearby mines is part of our overall first response effort. During annual risk assessments and the TCFD initial alignment review conducted in FY20, short-, medium- and long-term risks including cyclones, flood, long-term drought, bush and forest fires, late snow cover, food and water borne illness and broader health events, were identified, risk assessed, and had mitigating controls prepared. These mitigating actions at each operation include: • Preparing 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 • Defined communication channels • First responder and Crisis support and response for communities and nearby mines Operations’ response plans are formally recorded in 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 where we operate. Many communities were affected by the forest fires and flooding experienced in Australia and Canada in FY23. Read more below about the support provided through our volunteers and Community Investment program. CASE STUDY Crisis Management of extreme weather at Cowal and Mt Rawdon Flood Relief Project Extreme weather posed significant risks to the social and economic wellbeing in communities near our operations in FY23. Given the unprecedented floods experienced in NSW over the year, and the extreme La Niña weather alerts in Queensland, our operations at Cowal and Mt Rawdon and the surrounding localities have experienced many stories of loss and hardship. Our Teams reached out to their local stakeholders, regulators and councils, to manage water impacts and to understand how we could best support the disaster response and recovery. Many of our employees have been personally affected by these events and it is important that we contribute to the recovery of these regional communities. Evolution contributed $100,000 distributed across the Forbes, Lachlan and Cabonne Shire Councils. At Mt Rawdon, significant investment and commitment successfully managed time and resources to ensure safe and sustainable operations – in excess of $9 million was committed to help manage water on site, with $4.2 million spent up to 30 June 2023. As well as financial investment, our sites have implemented measures to mitigate the impacts of stormwater runoff. Demonstrably, Mt Rawdon managed existing water storage capacity, pumped excess water prior to wet seasons, and continue to manage geotechnical hazards to keep our people healthy and safe. Evolution provides flood support to Forbes Shire Council Business Ethics The Code of Conduct19 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, including regarding anti-discrimination. We encourage employees to report known or suspected breaches of the Code of Conduct 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 workers can step back and be aware of how they conduct their duties, and we ensure that the Code of Conduct is included as part of contractual agreements with consultants, advisors and contractors. The Values and Leadership Behaviours within the Code of Conduct are assessed in regular Performance Reviews, and the resulting ratings factor into remuneration and performance recommendations. The Code of Conduct 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 onboarding processes to ensure alignment with international and industry best practice standards and frameworks. All new employees in FY23 received Code of Conduct training as part of the onboarding process. 19 Employee Code of Conduct Photo of baby emu being taken back to mum by Sarah Apps our environmental officer at Cowal operation 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 the Annual Financial Report on pages 183 to 277 for information on Evolution’s economic performance 93 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 94 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 and monitor training compliance 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 FY23, there were no reported incidents of corruption. Whistleblower Policy A framework has been established for individuals to raise concerns that relate to potential or actual unacceptable conduct. This framework is detailed in the Whistleblower Policy20 and Standard21 which includes the defined elements of independent reporting and investigation procedures, disclosure protection, along with the associated corporate governance. They are communicated regularly to employees and contractors via onboarding processes, the Code of Conduct, the People and Culture department, and the intranet. 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. Evolution is committed to disclosing reports, areas of concern, and investigation and remediation outcomes. There was one Whistleblower case reported in FY23 via the FairCall (KPMG) service in Australia and Canada. It was related to an allegation of a physical assault and upon investigation was found to be unsubstantiated. Political Parties and Public Organisations In line with our policies, we uphold ethical and value-driven business conduct, including conduct in alignment with our climate targets and agreements. We do not undertake any political activity or sponsor any political parties, movements or public non-governmental organisations, nor make any contributions to support any such parties, movements or organisations. We are committed to disclosing political payments. In FY23, no donations or payments were made to political organisations. Transparency and Disclosure We are committed to open and transparent dealings with all 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 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 2022 Tax Governance Statement available at the website22 and 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. Cyber Security (material topic) Like many businesses and organisations, we face constant and evolving cyber threats. The operating and control systems at the operations increasingly use digital platforms and technology-based solutions. As such, the security of these systems is crucial for the safe and efficient operation of our assets, making cyber security one of our material and emerging (long-term 3-5+ years) business risks. The risks of accidental or illegal access, corruption, disruption to business operations, theft of intellectual and other property, and damage pose significant financial, reputational, and psychosocial future impacts to Evolution. We remain vigilant regarding any cyber risks, and the workforce receives regular awareness training and communications on identifying and managing potential cyber threats. 20 Whistleblower Policy 21 Whistleblower Standard 22 Tax Governance Statement 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 the Australian Government’s Cyber Security Centre which are supported by independent and internal expertise. There are a range of measures implemented to manage cyber risk including: • A cyber security policy applicable to all employees • A cyber security strategy program as part of Evolution’s overall IT strategy • Clear responsibilities with a centralised IT function and dedicated capability • Mandatory cyber awareness training for all employees (92% compliance against target of 90%) 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 maturity assessments against standards • 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 • Independent review and testing As a result of these measures, independent assessors have indicated a strong uplift in the cyber maturity of our organisation. 95 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 96 Sustainable Procurement (material topic) Management Approach Sustainable procurement is a powerful lever for influencing suppliers’ Sustainability performance and business conduct. We recognise the opportunity to positively impact communities by taking a considered approach to how and where we source the goods and services needed for the business. By addressing sustainability issues and considering our Sustainability commitments in our end-to-end procurement practices, we can more effectively manage sustainability risks and opportunities, minimise adverse impacts and promote positive environmental, social and economic outcomes. We are committed to conducting business in a responsible way and expect the same from our contractors and suppliers. To improve the supply chain’s social and ethical footprint, we seek to screen and work with contractors and suppliers who share our values, and expect they follow high standards of governance and compliance with all applicable laws and our policies, and are committed to following our way of doing business, including demonstrating that they have the attributes set out in our Modern Slavery Statement, Supplier Code of Conduct and Procurement Statement, which are endorsed by the Board. Our 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 included this as a requirement within our contracts for which the parties must be compliant. In FY23 we: • Conducted cyber security risk assessments against our information technology and operating technology environments • Performed cyber security internal and external penetration testing and remediation activities • Implemented new solutions to manage Third Party Vulnerabilities, and monitored our environment, supported by external verification • Conducted cyber supply chain risk assessments • Continued the audit program for OT (operational technology) controls assessments • Conducted desktop incident response simulations and updated the response plans • Reviewed and updated cyber security policies Management and the Board have identified cyber security as a material 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, incidents and any emerging threats. Significant investment in a comprehensive end-to-end IT system is driven by a recognition that Evolution needs to continually invest in cyber security. Evolution’s Cyber Security Framework Business Objectives And Risks Business Objectives and Risks Cyber Threats Unauthorised loss of data Unauthorised change of data Financial loss through cyber deception Business disruption due to cyber attack Governance Strategy & Operating Model Policies, standards & architecture, e.g. IT Acceptable Use Policy Cyber risk culture and behaviour Cyber risk management, metrics & reporting Secure Vigilant Resilient Identify lifecycle management Use access control Penetration testing Incident and crisis readiness Role based access control Privileged use access control Cyber threat intelligence Incident response Secure software development lifecycle (SDLC) Post development application protection Brand protection Business continuity management and disaster recovery Asset management System security Security event monitoring Malware protection Network security Patch management End use device security Human resources security Vulnerability management Physical security Data loss prevention Cyber analytics Encryption Information lifecycle management (inc backups) Security platform administration – daily, weekly, monthly, quarterly Data privacy Information classification Cloud security Third-party risk management 97 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 98 Evolution Supply Chain Exploration and Discovery Support services Mining Processing Transportation • Drilling contractors • Geology and geophysical • Site accommodation management services • Mining and haulage contractors, plant and equipment contractors • Power, communication and • Cement and ground support supply IT services insurance • Explosives supply and blasting • Operations and maintenance contractors • Supply of grinding media flocculants • Analytical laboratories • Health and Safety specialists • Surveying • Earthmoving contractors • Environmental and water consultants • Employee benefits services • Chemicals and reagents supply • PPE and PPC • Fleet, maintenance, parts and • Legal and specialist support • Medical, health and safety equipment • Fuel, oil and tyre supply services • Blasting software and consultants • Labour supply • Mining communication • Water and waste management • Geotechnical services • Laboratory services • Civil contractors • Fuel and gas supply • Freight services • Haulage services • Port services • Stevedoring • Shipping • Bus services • Air charter services • Travel service Our Sustainable Procurement activities are conducted in accordance with our Human Rights Performance Standard, Modern Slavery Business Guide, and Supplier Code of Conduct. They focus on: • Prohibiting any form of forced labour, including child and slave labour and human trafficking • Identifying, assessing and addressing modern slavery risks through the Sustainable Supplier Risk Management program in alignment with the Modern Slavery Act 2018 (Cth) • Supporting local, regional, and First Nation communities • Increasing Indigenous participation • Supporting small business • Supporting our Net Zero future • Increasing capability and awareness among internal and external stakeholders, including suppliers In FY23, Sustainability continued to be strengthened as a performance driver in Evolution’s procurement process through the following actions: • Developing the third Modern Slavery Statement which increases awareness of modern slavery risks across the business and improves management and transparency across global supply chains • Requesting that our medium to high-risk suppliers complete a Modern Slavery Self-Assessment Questionnaire (SAQ) in order to identify and take action on any modern slavery risks in our Tier 1 supply chains • Undertaking a number of face-to-face Modern Slavery Deep Dive Sessions with key suppliers to gain a broader understanding of how they are identifying, managing and mitigating modern slavery risks within their supply chain and to enable opportunities to shared learnings regarding modern slavery and sustainability • Communicating our expectations and commitments • Conducting Sustainability and business conduct to human rights to all stakeholders in line with our various policies and procedures, including the Sustainability Principles • Monitoring the effectiveness of our human rights policies and procedures evaluations as part of our tender processes • Participating in the Modern Slavery Communities of Practice (United Nations Global Compact) enabling awareness, capability building and progress • Undertaking a review of our Indigenous procurement approach in collaboration with the Sustainability Team, developing a baseline including an Indigenous supplier register and a spend dashboard to better understand how and where we are spending our money with Indigenous and First Nations businesses and to identify gaps and opportunities • Strengthening supplier relationships and partnerships, including with our supplier AGL Energy, where we secured a first-of-its-kind retail agreement through a competitive, long-term power purchase agreement for our Cowal Gold Operation which supports a transition to renewable power • Embedding a focus on Net Zero as part of our overall procurement practices, particularly for the sourcing of electricity and energy intensive goods In FY23, we had 3,629 active suppliers and contributed $1.75 billion in payments to suppliers. Evaluation of Sustainability and Business Conduct in Tenders In FY23, we embedded the assessment of suppliers against a set of evaluation criteria for Sustainability and business conduct as part of our standard tender process. This evaluation criteria continues to mature, with the inclusion of environmental considerations supporting our efforts in climate risk management in our upstream and downstream activities. The criteria incorporated considerations such as corporate governance, the presence of Sustainability policies, programs and reporting, the quantification of GHG emissions and initiatives to reduce GHG emissions, policies or practices to enhance inclusion and diversity, the presence of Reconciliation Plans, 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 Sustainability induction at both the operational and Group levels, covering health, safety, environment, community, and cultural heritage specific to the location. 99 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 100 Modern Slavery and Human Rights (material topic) Management Approach We are committed to operating responsibly and establishing and adhering to the highest ethical standards and aspire for our suppliers to do the same. 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. Our strategy of operating only in Tier 1 jurisdictions of Australia and Canada mitigates our geopolitical and human rights risks. We recognise that lower spend on suppliers does not equate to lower Modern Slavery Risk, and that with the maturing of Modern Slavery legislation comes increasing expectations for maturity in our Modern Slavery reporting. This includes the mapping of Tier 2 Suppliers, identifying and assessing their risk potential, and prioritising risk management based on materiality. We have no exposure to artisanal and small-scale mining, nor conflict-affected and high-risk areas, in proximity to our existing and exploratory operations, contributing to the mitigation of business wide human rights impacts in the form of child labour, and abuse, and others in these areas. Respect for human rights is a core value at Evolution. Our approach to human rights is supported by the conviction that the business activities can and should have a positive impact on the lives, livelihoods and rights of individuals and communities. We acknowledge that operations could potentially cause, contribute to, or be directly linked to negative human rights impacts. We seek to evaluate, prevent and mitigate any potential for adverse impacts and to contribute to the promotion and protection of human rights. We maintain secure grievance mechanisms at each of our operations, including Whistleblower protections. One of our nine Sustainability Principles, Human Rights, underpins the Human Rights Sustainability Performance Standard. The 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. It draws on the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the UNGC. As a signatory to the UNGC, we have committed to advancing all Ten Principles, including Principles One and Two: human rights and respect for human rights, and incorporate principles across our processes and systems. We also have an Evolution Modern Slavery Business Guide which was developed to assist with the risk assessment of modern slavery occurring in our supply chains, the steps being taken to mitigate the risk, and the actions required to provide assurance that our business is free from modern slavery. Through the Guide, all personnel are instructed that remediation actions adopted should be designed to work with suppliers to mitigate modern slavery whilst protecting the wellbeing of those enslaved. Our third Modern Slavery Statement was approved in FY23. Each year, the Statement is endorsed by the Board through the Risk and Sustainability Committee, and Leadership Team. We consider that any form of modern slavery is unacceptable and acknowledge our responsibility in helping to eradicate it. During FY23, we continued to apply a rigorous methodology to manage modern slavery risks, including increased measures with our medium to high-risk suppliers. We are working to proactively reassess the multiple tiers of suppliers that form the extended supply chain and have explicitly established that we operate only in low risk, Tier 1 jurisdictions to help mitigate this risk. Our risk assessment process establishes the identification of modern slavery by considering country risk, product/ service category risk and supply chain risk. We have collaborated with each of the operations to evaluate and rank suppliers as ’Low’, ‘Medium’ or ‘High Risk’. We have issued 125 questionnaires on human rights and modern slavery risks to those ’Medium to High Risk’ suppliers identified as having potential risks with human rights, labour rights, business ethics, and policies for sustainable business operations. The assessments to date have not identified any modern slavery practices in the operations or supply chain, and no corrective actions have been implemented, noting the requirement for ongoing risk mitigation, process review, measurement, and assessment. In FY23, we: • Updated the Modern Slavery Self-Assessment Questionnaire (SAQ) toolkit to gain a greater insight and capacity to evaluate for the potential risk of modern slavery in business operations and their supply chains • Conducted Modern Slavery Deep Dive sessions with key supply partners to better evaluate how they are managing and mitigating modern slavery risk within their supply chain and to allow an opportunity for shared learning. These were each meaningful sessions that promoted robust discussion, improved tracking, progress and advancement for both parties • The Modern Slavery Working Group attended several education sessions with external providers for continual learning, and to broaden knowledge in this space, including increasing skills associated with the legislation amendment recommendations • All employees must complete Modern Slavery Training in their onboarding and additional training is provided to personnel with higher levels of interaction with the supply chain. In FY23, 111 of our employees also completed additional mandatory modern slavery training. This specific training 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 • What external help is available to identify and prevent modern slavery • Maintain supplier requirements to conduct their business in a manner that is consistent with the Modern Slavery Act 2018 (Cth) • Included modern slavery as a discussion point in our Supplier Relationship Meetings (SRMs) with key suppliers For more information, see the 2022 Modern Slavery Statement provided on our website. Performance The reporting of all Human rights incidents is captured in our standard incident reporting protocols and Incident Management System. Audits are regularly undertaken to assess compliance against our Human Rights Performance Standard, and this is incorporated within the Assurance Program. In FY23, 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. We requested 125 Modern Slavery Self-Assessment Questionnaires (SAQ) from our suppliers during the year and no actual modern slavery risks were identified in our supply chain during FY23. One incident of potential modern slavery was identified and investigated during FY23, with no further action required. While no instances of modern slavery were identified, we regularly engage suppliers to review their current business practices and encourage their robust governance to identify, investigate and remedy their risks of modern slavery. We continue to monitor and assess those suppliers identified as high-risk to ensure they understand our commitment towards sustainable procurement practices across our supply chain. ACSI recently released its 2023 review of modern slavery reporting for ASX200 companies, including Evolution Mining. The review benchmarked us against our peers (Global Industry Classification Standard) and highlighted areas for improvement. Evolution has taken action from this feedback, and improved the practices and quality of reporting in: • Structure, operations and supply chains • Description of risks • Actions to assess and address risks • Effectiveness of actions • Consultation, approval and signature We remain committed to engaging with our internal and external partners, such as ACSI and other suppliers through our SRMs, to gain feedback and facilitate continuous improvement, including in our reporting 101 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 102 Local and Regional Procurement Management Approach Procuring goods and services from local and regional suppliers promotes economic development and associated benefits in the communities in which we operate. We monitor and report direct procurement spend (paid by Evolution) and indirect spend (paid by subcontractors to Evolution). Our approach is underpinned by local economic procurement decisions and processes that bring about significant positive impacts to local economies. 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-discriminatory practices • Hiring employees, contractors and suppliers from the local community • Engaging with local communities, including key contractors, in various forums to discuss subcontracting, supply and employment opportunities Performance In FY23, $261 million was spent directly with local and regional suppliers, including $230 million with local suppliers, a 73% increase compared to FY22. The increase in this spend attributed to the first full year of ownership of Ernest Henry, and its associated procurement, as well as ongoing active efforts to engage local, regional and Indigenous suppliers across all operations. Kurrajong Village, Coolgardie CASE STUDY Local Procurement and Sustainable Practices at Kurrajong Village Following the integration of Kundana assets, and ongoing growth projects, the Mungari Gold Operation has established Kurrajong Village. It is the new home-away-from-home in Coolgardie for some of our new employees and contractors. The name derives from what is considered a good water-tree which is local to the region. Where the Kurrajong is found, typically good country and water can be found. In line with positive environmental practices and Western Australian Government requirements, the village aims to be sustainable, reduce waste and phase out single use plastic containers. Everyone is encouraged to reduce waste by utilising the reusable crib containers provided during onboarding, recycling bins and 400L composting bins. Out of the crib room, sustainability is demonstrated with an herb garden, solar lamps and footpaths, and supplies are sourced locally to reduce waste and emissions from transport. For example, laundry service and dairy products are sourced locally, direct from Kalgoorlie. The Mungari team sees the Kurrajong Village as a signpost of their increasingly sustainable operation. 103 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 104 Health, Safety & Wellbeing 105 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 106 Health, Safety & Wellbeing We aspire to create a workplace where people go home even better than how they arrived. That’s what success looks like - where people are healthy and safe, where they have a voice and can contribute – at work, home and in the community. Fiona Murfitt, VP Sustainability Work Health, Safety & Wellbeing (material topic) Management Approach Health, Safety and Wellbeing has long been a core value and strategic priority for Evolution. We are committed to providing workplaces and supporting communities where our people, including contractors and business partners, are physically and psychologically safe, healthy, and well. By operating in Tier 1 locations, our security and geopolitical risks are minimised. In FY23, there were no work-related fatalities or permanent disabilities for operations under Evolution’s control. We take a holistic and iterative approach to risk identification and management to provide a healthy and safe environment for all people working with us. We apply risk management principles that seek to eliminate risk where reasonably practicable, and/or within agreed risk tolerability levels. This process is supported through appropriate risk identification and assessment, the ongoing review and improvement of risk, and the active management and verification of associated critical controls to ensure the controls are adequate, in place and appropriately applied. We aim to continuously improve health and safety performance, reduce incident frequency and prevent the recurrence of incidents. We believe every injury is preventable, with an ambition that we create a workplace where people can thrive and contribute - where people go home better than when they arrived. Continual improvement requires a collective effort across all levels of the organisation. It is the accountability of Management to provide a healthy and safe workplace supported by all of Evolution’s workforce that must, as a condition of employment, comply with health and safety requirements, supported by systems and processes, including the Sustainability and Strategic Planning Policy, and the associated Standards. The workforce remained actively involved in health and safety throughout FY23 through daily communications, participating in working groups, crisis management teams, business improvement initiatives, and health and safety committees. All activity sought ongoing engagement and consultation, supported by designated employee health and safety representatives. Our performance is measured using a combination of lead and lagging indicators, with performance targets established during the annual business planning cycle. A primary lagging indicator used is the TRIF. TRIF is a Group-wide key performance indicator (KPI) and achievement of our annual safety targets forms part of the remuneration package for employees and executives. Other lagging indicators include LTIF and The Injury Severity rate which looks at the average of lost time days compared across all incidents that resulted in lost time injuries. All frequencies are calculated based on a 1,000,000 work-hours formula aligned with OSHA principles. Leading indicators are measured and reported monthly, including proactive reporting ratios, training compliance rates, field interactions, investigation closure data and action close out data. By continually striving to improve the health and safety of our work practices through collaboration we have a direct and positive effect on our stakeholders, including our employees, contractors, suppliers, business partners and those who live and work in our communities. 107 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 108 Hazard Identification and Mitigation Risk Register Take 5/Pre-task Assessment 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 to do the task safely. Training On average, each employee received 61.5 hours of health and safety related training in FY23. We continue to streamline the training processes, conducting analysis of training systems and onboarding process for all. The Board also undertakes annual risk training. Regular health and safety meetings are held to review key hazards and risks and required safeguards such as new-worker inductions, emergency response and evacuation drills, crisis management training, and basic hazard awareness and task familiarisation. This training is complemented by communication campaigns, community sessions where appropriate, and Site-specific performance improvement, capability programs and cultural initiatives. Our approach to training includes building the value of “the why”. A simple prompt that can reveal crucial safety behaviours. 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. They allow operational teams to receive site-specific information and transition to site in a more streamlined manner. It is compulsory for all employees, contractors, sub-contractors and visitors at Evolution’s operations to complete a robust health and safety induction program, with two-yearly reassessment. It provides an overview of the business, vision and values; key policies and procedures; and critical health, safety and environmental management systems. It is mandatory for all employees and contractors to also attend health and safety training relevant to their position and their operational environment. Training packages highlight the hazards associated with their position or work area and the relevant controls in place to mitigate these risks and involve a strong practical component to increase comprehension. It is reviewed regularly to ensure that the material remains relevant, and employees and contractors are refreshed periodically. New and existing risks are actively reviewed and managed with a strong focus on critical and material risks that could have an impact on either our strategy of being “a sustainable business that prospers through the cycle” or the strategic objectives. Each operation is supported by a risk register that identifies the material, critical, and other 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, or as required. All leading and lagging indicators, and progress against 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. In FY23, the Board endorsed a reviewed and updated Group Risk Register that identified material risks informed by our business strategy, objectives, vision and values, imperatives and expectations, as well as internal and external risk trends. Each material risk is accompanied by a Risk Appetite Statement. The risk register sets out clear accountabilities of the relevant risk owner, risk appetite, threats, opportunities, impacts, and mitigating actions. It is reviewed at least annually by the Board, reported on monthly by Management and delivered in a format suitable for education and communication across the business. The risk register is reviewed at least annually and more frequently as triggered by the need to address any additional matters which may have been identified during a review of the performance indicators. Incident Reporting It is mandatory for all people working on our operations to report near-misses and incidents. Incidents are investigated at a level dependent on the potential severity determined through the Evolution Risk Assessment Matrix (RAM). Any event rated ‘Moderate’ 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. Management or the Board may also request additional review on any incident. Hazard Reporting Hazards must be controlled, and all employees are trained in hazard identification, avoidance, mitigation and reporting. Identified hazards, including the corrective and preventative actions, are entered into a hazard reporting system that is monitored daily to track the close out of actions. Any overdue action triggers a reporting and escalation process to the relevant level of authority. Governance, Risk Management & Assurance A strong health and safety culture is supported by a structured governance process all the way from the Board, the Leadership Team, to site management across the business. The Board has oversight of Evolution’s health and safety, and overall Sustainability performance, including risk management. The Leadership Team is accountable for developing the strategy and implementing health & 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 at all operations to achieve continuous improvement in performance aligned with the Risk Management Framework. These plans establish clear accountability for safety and health performance, detail the controls and practices for minimising hazards, and support effective planning and execution of health and safety systems. There is also a requirement for regular, at minimum monthly, reviews and updates of these plans, informed by worker feedback. The FY24 plans also include an increased focus on critical control management for material and critical risks. Maintaining our culture requires both care and operational discipline supported by an engaged and capable workforce who understand the risks most relevant to them and how these are best controlled. Key mechanisms include: • Leadership Training: Annual site inductions, values training and leadership essential training. It is an expectation linked to targets and plans that Management undertake regular field safety interactions and participate in inspections and audits • Daily pre-start briefings: Each department hold briefings prior to each shift to discuss the activities. They review how the work will be done safely and reliably and incorporates recent incident learnings, action close outs and other information relevant to the safe conduct of work • Monthly safety toolbox meetings: Education and awareness campaigns on a range of safety topics such as food safety, vehicle incidents, hand injuries, fatigue management or the safe handling of tools • Regular safety inspections: All equipment, tools, and personal protective equipment (PPE), are inspected at the start of each shift to ensure they are fit for purpose. Workers are expected to comply with all requirements, including that they must not change or tamper with any safety device (including PPE) • Report, Review and Learn sessions: Weekly sessions to share learnings related to incidents to prevent recurrence. It promotes learning through active storytelling supported by a two-page incident report • Near miss reporting: Proactive reporting including any near-miss significant incidents provides early warning to prevent more serious incidents from occurring. This includes reporting for all incidents related to potential drug and alcohol use. Random drug and alcohol testing occurs across all operations, ensuring our people are fit for work and drug and alcohol free • Investigations and Learning: Investigations, both proactive and reactive, and the sharing of outcomes are fundamental to our approach to Health and Safety. Incidents and any failure to adhere to established obligations are investigated under a fair and just system guided by Incident and Investigation Procedures and Standards. All investigations outcomes are available online and shared via a daily incident update called the “daily flash” Each incident is thoroughly reviewed and assessed by the site Sustainability team to identify the root cause and corrective actions to prevent repeat events. 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. 109 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 110 There was also a reduction in incidents with more significant consequences as supported by severity rate index. 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 were also identified. This trend supports an improved culture of reporting and is evidence that controls are operating to prevent the most serious consequence. This focus on risk management was supported by the integration of the Material Risk Review process in the Assurance Program. 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 Comparison23 FY23 FY22 FY21 FY20 FY19 Number of safety interactions 45,541 45,096 49,107 54,287 32,588 Number of hazards reported 28,826 24,607 13,337 13,415 13,040 Significant Incidents reviewed with senior management (%) Proactive Significant incidents TRIF24 TRIF Target LTIF27 Fatalities 100% 100% 100% 100% 100% 42 8.63 9.33 2.24 0 27 10.6625 10.7526 2.81 0 38 9.62 5.25 2.49 0 34 6.76 5.50 2.07 0 n/a 8.31 4.95 1.75 0 Total Hours Worked 8,453,290 7,128,241 5,612,323 5,323,912 4,570,433 23 Safety performance includes both employees and contractors and all assets, including EHO 24 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 25 10.37 excluding EHO 26 Excluded EHO in FY22 27 Lost Time Injury Frequency (LTIF) is calculated as (total lost time injuries x 1,000,000) / total hours worked Contractor Health and Safety We operate a ‘one team’ approach and report and review all incidents including hazards and near misses reported from all workers, including contractors. Like all employees, contractors are required to follow safe work practices, report all incidents and stop work if they are unable to control hazards 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. We communicate minimum expectations regarding contractor health and safety, and other environmental and social requirements as a component of the procurement process for all operations 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 clearly communicating and providing information on site specific risks, and the requirements and accountability for supervision to ensure work is undertaken safely and in line with Evolution’s Standards. We collaborate with our contractors to review how tasks are designed and undertaken. Communication Performance Regular health and safety bulletins and notices are displayed on noticeboards, circulated amongst the mail groups and discussed in the pre-shift meetings, and shared with communities where appropriate. 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. A company-wide communication called the “Daily Flash” is also sent out which includes an update on incidents for the last 24 hours and a summary of the month’s performance. It 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. In FY23 we continued to build 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 operations ranging from “Well Controlled” to “ Improvement Required”. Tailored programs and improvement plans were designed to address the specific needs of each operation and were measured and tracked which focus on leadership, in field interactions, behaviours, critical and material actions, and identification of hazards. There has been ongoing review of material actions to ensure these are 100% closed out. This is reviewed weekly, reported on monthly and independently verified. There was an improvement in both lead and lag indicators with a TRIF improvement of 19% against FY22. There were 73 recordable injuries during FY23, with 19 being lost-time injuries, resulting in a TRIF of 8.63. Whilst the TRIF met the 9.33 target, we continue to strive for improvement. 111 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 112 Emergency Preparedness Wellbeing Emergency response and crisis management Framework 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 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. The framework above outlines how we respond to an emergency or crisis. It 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 an operational and a Group level. FY23 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 as BAU. Poignant examples where IMTs have been established with support from a CMT include flood and rain events at Cowal, Mt Rawdon, and Ernest Henry, and forest fires at Red Lake. The capability of 199 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. A healthy and safe workforce supports engagement and reduces absenteeism. Health-related campaigns are regularly communicated through the previously mentioned and other channels to promote awareness, management, and prevention. We aspire to create and maintain good social, psychological, and living conditions for the workforce and our communities. We pursue a preventative approach in promoting a healthy lifestyle by raising employees’ awareness of their physical and mental health status. The approach targets prevalent medical conditions including common noncommunicable diseases, communicable diseases, mental wellbeing, occupational hygiene and the effects of seasonal environmental changes. Mental Health There is an increased focus on the mental health of the workforce, complemented by legislative shifts towards psychological safety. A mentally healthy workplace is a shared responsibility between Evolution and its workforce. During the year, the following mental health initiatives were undertaken: • Community events including R U OK? Day, Mental Health Month, Movember, STEPtember, the Push-Up Challenge • Engaged psychologists and specialists to run information sessions amongst our workforce and in our communities on mental health awareness, provide COVID-19 specific health information, and provide support during extreme weather events • Supported training specific to psychological safety All employees and their families continue to have access to the Employee Assistance Program (EAP), which provides confidential solution-focussed professional counselling and confidential support to employees with personal or work-related difficulties. Benefits of both consultation types are leveraged to support the workforce. During FY23, 64 staff, and 7 family members, accessed 214 EAP sessions which represents an 11% increase in use of the system since FY22. Evolution’s annualised usage of 5.59% positively exceeds the Mining and Resources Industry annualised usage of 4.55%. General counselling on Critical Incident Response services were deployed to CGO and EHO throughout February and March in response to four Significant Incidents and in May at MRO after a Fall of Ground event. These totalled 360.75hrs. Evolution is committed to capitalising on the benefits of an integrated care model and approach. It involves mental, physical and psychosocial health care with wellbeing initiatives, which enables assessment, treatment and management of mental health issues focused on the individual’s needs. Ways of Working The way we work has continued to evolve and adapt in response to internal and external factors, including the COVID-19 pandemic. Employees are continuously supported to find new ways to connect remotely, develop and implement innovative solutions, and perform their roles with increased agility. Evolution’s flexible work environment has been enhanced, aided by employee-defined ways of working charters, and the provision of wellbeing leave. Mungari ERT Team competing in the 2023 CME Surface Mine Emergency Response Competition CASE STUDY 2022 and 2023 CME Emergency Response Competitions Every year, the Mungari Operation participates in the Chamber of Minerals and Energy Mines Rescue Competitions, placing health and safety, and ongoing upskilling and training, at the forefront. The Mungari mine rescue team demonstrated their skills and proudly represented Evolution at the 2022 CME Underground Mine Emergency Response Competition in November, and the 2023 CME Surface Mine Emergency Response Competition in May. In the latter, Open Pit Mining Shift Supervisor managed the Team Skills Event, which was awarded the ‘Best Event’. Our team competed with others across the state, testing their skills and knowledge in mining-related emergency response through various hyper-realistic scenarios. Mungari were recognised formally at both events in firefighting, first aid, team skills, breathing apparatus use, and Best Captain. These events are testaments to the hard work and training put in by the Mungari ERT team and the support from volunteers. The skills and training all combine to add to our people’s preparedness and capability to manage in the event of potential incidents in the community or on site. 113 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 114 Fatigue Management We recognise the risks associated with employee and contractor fatigue and the responsibility in providing the necessary resources through policies, awareness, empowerment, and tools to mitigate the risks. As part of employees’ duty of care requirements, all individuals have an obligation to arrive to work in a satisfactory physical, mental and emotional state. It is regularly communicated that every employee is empowered to stop work that they consider hazardous and to report without prejudice, any issues of fatigue to their supervisor. Accommodation areas are structured to ensure that welfare needs are addressed and that there is suitable rest between shifts by implementing noise and time curfews. To ensure that the controls in place are effective, a fatigue investigation checklist is completed for all incidents potentially related to fatigue to identify improvements in fatigue management. This is supported by mandatory fatigue training undertaken as part of induction prior to arriving to any operation. CASE STUDY First Aid Project The Discovery Team partnered with the Cue Shire, the Cue Sub Centre and St. John Geraldton to hold First Aid Essentials courses so the Cue community could learn the management of common illnesses and injuries. The Shire is a remote community comprising 215 people from diverse cultural and health backgrounds. Unfortunately, there are minimal health and emergency services available. St. John Geraldton provided non-accredited community initiatives such as a First Aid Essentials Course, which was attended by senior members of the local Cue community and the broader Indigenous community. It was warming to see people who had previously been exposed to life- threatening injuries and self-harm in the community learn lifesaving skills. Evolution also joined our existing partner Auskick to host a BBQ for the Cue Primary School before the First Aid for Children Course. Over 20 primary school students were introduced to basic life support skills like calling ‘000’, CPR, and bandage application. The funding from Evolution for this initiative also included the donation of 20 First Aid Kits to the Cue Sub Centre for distribution to the local community. In providing these courses, Evolution supports the hopes of the Cue Shire to empower participants through courses catering to their learning capabilities and preferences, aid the community in their capability to sustain a life until medical help arrives, and reduce the strain on local health services. The focus on supporting each other in our communities demonstrated through this event led to the organiser – Exploration Geologist, Honor Wilson – earning an Act Like an Owner Award. 115 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 116 Cue Primary School students learning first aid by Honor Wilson Transport Safety (material topic) Definition: Road and aviation incidents - includes transportation to, from and within the site. Management Approach 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. The Evolution Community of Practice (CoP) links with our Chain of Responsibility (CoR) obligations and supports a collaborative and action-oriented forum with a shared vision to reduce vehicle interaction risks, incidents and near misses across the business. This is focused on reducing risk and improving safety outcomes through both driver behaviour and targeting technological solutions. Performance 100% of charter airlines in use through FY23 have undergone the required third-party audit, confirming compliance to regulatory and Evolution minimum standards. Evolution’s due diligence is supported by the BARS Program and certification process. There were no aviation related events in FY23. Vehicle Collision or Rollover is a Group material risk monitored at the Group level. Robust action plans have been developed to ensure critical control verification and management, 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. The risk related to transport safety (road and aviation) varies based on the activities and locations of the operations, including exploration, 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 Performance 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 the 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, and people are briefed prior to departing on any medium to high-risk travel. Generally, travel is also restricted to and from geopolitical sensitive locations. Strict governance and sign off protocols remain in place for all overseas travel with oversight and approval required from the Leadership Team. 117 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 118 People and Culture 119 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 120 People and Culture Evolution has always focused on creating a positive and agile culture where our values underpin everything we do. We want working at Evolution to be the highlight of people’s career. Providing a fair, inclusive and diverse workplace is key to delivering on this promise so that our people feel welcome, valued, respected and encouraged to be their best, every day. Paul Eagle, VP People and Culture Management Approach Performance Our success is underpinned by our people bringing their true individual selves to work, and living our values of Safety, Excellence, Accountability and Respect. We work hard to strengthen our culture of respect and transparency in communication and reporting, and actively listen to our people to address their concerns. Our focus is 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. As an equal opportunity employer, we do 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 inclusive environment where all people feel respected, connected, and can do their best work. A range of policies are in place that outline the expected standards of behaviour and create the basis for an inclusive and diverse workforce, including a Code of Conduct, flexible working principles, Inclusion & Diversity Policy, and a range of employee support networks: Whistleblower policy, EAP and Workplace Contact Officers. As of 30 June 2023, Evolution employed 2,729 Permanent, Fixed Term and Casual employees, compared to 2,689 at end FY22. 83% of employees chose to stay with Evolution which is a strong result in a competitive market. Gender Mix Participation Female representation in the workforce in FY23 was 18.4% (FY22: 19%) compared to the Australian industry average of 22% due to higher attrition rate of women versus men. The number of females in Senior Leadership positions increased to 14.3% in FY23 (FY22: 10%). Approximately 28% of the Graduate Development Program hires in the 2023 intake were females. In FY23, Evolution announced gender workforce participation targets aligned to the Australian Mining Industry average. By the end of FY25, Evolution has committed to that 22% of the workforce will be female. Each operation will be developing and implementing targeted strategies within FY24 with attention to attraction, retention, and overcoming unconscious biases, to meet this target. Evolution Mining celebrating team members at the NSW Women in Mining Awards 2023 CASE STUDY NSW Women in Mining Awards 2023 Evolution continues to be a strong supporter and sponsor of the NSW Minerals Council Women in Mining Awards. Ancillary Operator Julie Smith from our Cowal operation was the winner of the 2023 NSW Women in Mining Outstanding Operator of the Year Award. Grace Derrick, Senior Advisor Environment at Cowal and Group Indigenous and Community Partnerships Lead Charmaine Saltner were also recognised as award finalists for their significant industry contributions. Improving gender diversity at Evolution, and within the mining industry as whole, is a journey we’re committed to. Recognising and celebrating our high achievers an important element towards better overall inclusion and diversity. Indigenous Participation Inclusion and Diversity (material topic) The focus remains on growing a pipeline of Indigenous candidates, and proactively identifying experienced external talent with the skillsets needed by the organisation. Indigenous people make up 6% of the Evolution workforce. Management 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 self to work every day and to grow professionally and personally. Our people are the most significant enabler as they drive business performance and success. It is our role to ensure the workforce feels equipped, engaged and motivated to succeed. We do this by providing a safe and healthy workplace, a supportive team, strong leadership, meaningful work and career and development pathways for those with appetite and ambition. We believe in equal pay for work of equal value and continue to identify and address any gender pay gap issues. In the FY23 Remuneration Review, we analysed the remuneration of employees against their specific market data (Australia & Canada) addressing gender- based pay parity. 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, with a 3% reduction in overall reported gender pay gap year on year in Australia. 121 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 122 Inclusion and Diversity Project Inclusion and Diversity continues to be important at Evolution as it supports our values driven culture, the communities in which where we operate and our people to feel like they are included and belong at Evolution. We recognise inclusion drives more positive diversity, and diverse backgrounds and thinking, respectful teamwork, innovative outcomes and stronger business results. In FY23, we: • Implemented a Global Inclusion & Diversity Committee co-led by two senior leadership members and includes representatives across all sites. A focus for FY23 was understanding the structural barriers for females and other minorities across the organisation • Refreshed our Inclusion and Diversity Policy reinforcing our commitments. It applies to all aspects of employment, including recruitment, training and development, remuneration and performance management • • Introduced an Inclusion metric through the ‘Your Voice’ engagement survey to understand our people’s perception of inclusion at Evolution. The result through the pilot was 64% favourable and 26% with a neutral response. The results give us an opportunity to lean into areas which need more support Implemented two education programs; Leading Inclusion for leaders and Inclusion Awareness for employees. 100% of leaders and 94% of all other employees completed the training • Managers once removed held “Living our Values” conversations to check in on culture, values and Inclusion at Evolution with 100% of employees • Conducted annual site audits of their inclusive practices, facilities and symbols • • Implemented a communications strategy to highlight the diversity of our workforce Investigated structural barriers for women and cultural minorities in Evolution, the outcomes of which will be implemented in FY24 • Launched two Flexible Working Playbooks and associated training supporting employee and leader conversations, aligned to our flexible working principles across Evolution • Continued to highlight our commitment to inclusion and diversity via induction and onboarding programs • Continued to act on gender equality within our workforce, including the matching of superannuation payments for our people on the unpaid portion of parental leave in Australia, provision of domestic or family violence leave, and the provision of parental leave for secondary carers, as reported to the Workplace Gender Equality Agency Performance During FY23, our female workforce decreased from 19% to 18.4% due to a higher attrition rate of women versus men. Employees identifying as Indigenous accounted for 6% of our workforce. The implementation of recommendations from investigations into structural barriers, the implementation of the ‘Inclusion’ and ‘Intent to Stay’ metrics in ‘Your Voice’, and associated drivers of inclusion, aim to support higher retention rates of females in FY24. Refer to the 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 2023 As at 30 June 2022 As at 30 June 2021 Australian Industry Average 2023 Overall Female Representation 18.4% Management Female Representation Non-Management Female Representation 20.2% 18.3% Overall Indigenous Representation 6% 19% 20% 18.9% 6% 28 AON Mining, Infrastructure & Engineering Remuneration Report April 2023 CASE STUDY Evolution celebrates WorldPride 20% 17% 20.2% 7% 22%28 N/A N/A N/A WorldPride 2023, driven by the theme to ‘Gather, Dream, Amplify’ provided the opportunity to leverage the positive differences of all our people across Evolution and the communities in which we operate. Our teams were inspired to celebrate World Pride events across all our operations. Our Cowal team celebrated World Pride through communications, education, and the installation of a new rainbow pedestrian crossing in the bus bay. Pride flags fly seasonally at our sites and Ernest Henry representatives attended a celebratory morning tea. Several personnel were also sponsored to attend the Sydney WorldPride Human Rights Conference, the largest LGBTQIA+ Human Rights Conference ever to be held in the southern hemisphere. These initiatives increased awareness of these events, and of diversity and inclusion, which has encouraged conversations at our sites and in our communities to help create a world that is safe, free and equal for all. Implemented a proactive sourcing model enhanced in engaging with and securing talent increasing the utilisation of technology and platforms such as LinkedIn and Work180 to further promote Evolution and specific opportunities • Consolidated the reporting of recruitment statistics through enhanced recruitment dashboards • We continue to review feedback from onboarding surveys to enhance our hiring and onboarding practices and experience. Social media channels, e.g., LinkedIn and Facebook, showcase our diversity through sharing employee stories, community initiatives and local activities. Partnerships with Work180, Gold Industry Group and other local and community associations helped deliver targeted talent attraction messaging to the candidate market. Employee Engagement (material topic) • We recognise that an engaged and high performing workforce is essential for the success and growth of the business. In FY23, we launched a more holistic listening strategy which will allow us to measure engagement and our people’s experience throughout the employee lifecycle using the Qualtrics platform (replacing Teamgage). The new tool enables benchmarking engagement externally against global, country and industry norms; and will be undertaken every 6 months. The engagement survey is an important opportunity for people to provide honest feedback to our leaders on how Evolution performs across a range of key metrics including overall employee experience, employee engagement, intent to stay, manager effectiveness and inclusion. The insights to our culture will be valuable for us to proactively manage our people and their concerns across the organisation. We piloted the engagement survey with two operations in April 2023 with a participation rate of 51%. The overall combined engagement score was 69 which is 6 points lower than the industry average. To address the valuable feedback from this survey and to drive higher participation rates, a communication and action planning strategy has been implemented with people leaders across both operations. A broader roll out across the organisation will take place in October 2023 and will provide overall company metrics and will be reported further in FY24. Talent Attraction and Retention (material topic) Talented people are important to the business, and we always aim to identify, attract and retain people who are highly skilled, and strongly aligned with our values. We develop our people 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 aligned to business requirements. By developing our people personally and professionally, we build organisational capability and capacity. In FY23, 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 and progressing 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 • • Implementing a holistic listening strategy which allows us to learn through “Living our Values” conversations with our people, stay interviews, and using data from exit interviews and employee engagement surveys, to help inform engagement and retention initiatives Implemented Flexible Working Playbooks to support our people to have conversations formalising flexible work arrangements, allowing employees to work in ways that better suit their lifestyle while maintaining access to development and career progression opportunities 123 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 124 Retention rate Strong levels of retention have been maintained across the workforce in a highly contested and competitive market with 83% of people choosing to stay with Evolution in FY23 (FY22: 82%). 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, 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 FY23, 76 Group-approved 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 ninth 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. All our people participate in annual performance and career development reviews, and bonus review, aimed at recognising and rewarding their on-the-job performance in alignment with organisational goals and values, and their wider efforts. In addition, we have a generous Long Term Incentive Program with a 3-year vesting period in which all Superintendents, Senior Professionals and above are eligible to participate. The delivery and embedment of our refreshed Leadership Development suite of programs continued; all programs being underpinned by our Leadership Behaviours. The leadership suite includes Leadership Essentials; practical bite-sized learning for all leaders, delivered on site; and Introduction to Leadership to support frontline, new and emerging leaders build 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 also continued to support coaching capability with senior leaders. Graduate Program Our award-winning Graduate program supports the growth and development of Evolution’s future diverse workforce, through recruiting great new talent, and building mobility in early careers since 2013. The two- year program provides broad exposure across many locations and disciplines of our business with the purpose of developing personal, technical and commercial skills. Graduates are given the opportunity to learn on the job via a development plan personally curated to ensure they have exposure that is relevant and enables ownership while making a valuable contribution to Evolution. Through mobility and rotations across our operations, Graduates experience unique and remote parts of Australia and Canada, connect and immerse themselves within our local communities, find mentors, get exposure to corporate operations and access to both our Site Leadership and Group Leadership teams. Training and education Employee Relations 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 and our communities. The annual performance review also covers training and development needs and goals. In FY23, the continued focus on development, leadership and retention was measured through: • 80% of people fulfilling their stated development goals • Continuity in our leadership pipeline effectively retaining and attracting top talent in the Management group • 258 of our Leaders participating in dedicated leadership development training, five cohorts of our frontline Introduction to Leadership program, two cohorts of our GOLD mid-senior leadership program and two cohorts of our senior Leader as Coach program • 100% of people leaders at the superintendent level and above participated in a multi-year Leading Inclusion program aimed at leading with an inclusive mindset and behaviours • Delivery of a total of 167,308 training hours in FY23: an average of 61.5 hours per employee (compared to 47 in FY22) Our approach to employee relations focuses on direct, two-way engagement with employees, establishing and maintaining strong working relationships 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 via the AON remuneration surveys in Australia and Mercer remuneration surveys in Canada. We recognise the right to work for fair wages in safe and healthy conditions as a fundamental human right and we ensure sites are designed to protect the safety and health of all workers. 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 and support channels available to our employees, including the employee’s direct supervisor or manager, People and Culture representatives, regular team meetings at each operation and functions, the intranet, incident reporting, EAP, Workplace Contact Officers, Mental Health First Aiders, informal channels through Management, and grievance mechanisms, which also include an independent 24/7 whistleblowing hotline. Performance Non-discrimination All our employees have the right to freedom of association and are supported by internal policies in the Fair Work Information Statement. In FY23, 25% of our employees were covered by collective bargaining agreements. There were no strikes, lockouts or work stoppages of significance at our operations in FY23. 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 our employees and contractors 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 as is referenced in our annual Modern Slavery Statement29. 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 of any kind 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 resolve and implement corrective actions aligned to our policies, relevant legislative requirements and our values. Evolution is committed to disclosing breaches to acceptable conduct. 29 2022 Modern Slavery Statement Underground Geological Mapping. Photo by Kiana Day 125 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 126 Community 127 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 128 Community Through partnerships and investment, we strive to encourage prosperity and support stronger sustainable futures for our local communities. This entails working together as partners, to enhance regional economic sustainability and wellbeing in line with our Evolution vision and values. Bob Fulker, Chief Operating Officer Management Approach Our day-to-day operations and success depend on our ability to maintain our social licence to operate. We engage proactively and work as a trusted partner within local communities, with respect to their local culture, to identify, understand, and mitigate risks and opportunities associated with our activities. This ensures we promote long-term development and benefits catered to community needs and identify areas of improvement. Engagement occurs as early as possible within the mining lifecycle, including the assessment of social and economic conditions and impacts prior to settling in new areas. Our approach is to: • Build engaged and lasting relationships based on free, prior and informed consent (FPIC) to support lasting benefits with our communities • 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 to our neighbouring communities through investment, community development, capacity building and infrastructure improvement. They experience direct social, environmental and economic impacts from the business, and so we actively engage and invest to support their development goals while identifying opportunities for improvement. We recognise genuine and effective stakeholder engagement involves building relationships based on mutual trust, respect and understanding. Evolution adopts the principle of FPIC, which is applicable to the rights of Indigenous peoples in international law, and to other ‘land-connected peoples’, such as traditional and local communities living in rural areas near mining operations. Our 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 Social Responsibility Plan, compromising a Community Relations Plan and First Nation Engagement Plan, which is approved annually and for which the Executive Chair is ultimately accountable. Operations update Group on their Plans monthly. Each operation has a dedicated Social Responsibility Team. They manage engagement with local communities, pastoralists, private landowners, First Nation Partners and Indigenous Peoples, contractors and educational institutions, and local government to enable tenement applications, regulatory approvals, ongoing operations, training and employment opportunities. They are trained to conduct dialogue focused on building and maintaining trust-based relationships and addressing issues important to our stakeholders. At the local level, the General Manager of each operation is responsible for Community engagement, First Nation engagement, Community Investment and outcomes in local sustainable development. At the Group Level, these teams are supported and guided by the Lead, Indigenous Relations & Community Partnerships role supported by the broader Sustainability function at Group. The Lead provides a consistent and accessible resource for the local communities that can support future Indigenous employees and businesses. Key responsibilities of the team include: • Indigenous Stakeholder Outcomes - Liaising with First Nation Partners and Indigenous Peoples to ensure equal training and employment opportunities. • Cultural Heritage - Working closely with First Nation partners to ensure continued identification, recognition and protection of all cultural heritage. All teams carry out heritage surveys in alignment with individual heritage agreements with Traditional Owner groups and within guidelines. Surveys enable a risk-based design of the operations to avoid areas of heritage significance. • Community Engagement & Investment - Identifying, assessing, and implementing community investments, including Shared Value Projects, utilising current local tools and criteria. Evolution visits PhD students and Research Fellows at the Australian Institute for Bioengineering and Nanotechnology We have several agreements in place with our First Nation Partners outlining obligations including heritage protocols, employment and business opportunities, community engagement, cultural awareness training in collaboration with our First Nation Partners, health and education initiatives, and work ready programs. We proactively work with them to identify opportunities to collaborate. During FY23, we strengthened community connections by: • Embedding ourselves further within our communities with physical and visible town presences and offices, enabling deeper relationships • Communicating and consulting early and regularly on projects to ensure our communities are aware, understand and can provide feedback prior to approval processes, e.g., Cowal’s Environmental Impact Assessment and Mt Rawdon’s Pumped Hydro Project • Engaging with non-government conservation organisations and individuals • Conducting Evolution focused community forums, including business development and employment sessions, and participating in local community forums and shire meetings • Enhancing relationships with schools and developing work experience programs at the operations for local high schools • Investing in community development partnerships at a local level focused on resilience and capability • Celebrating our relationship and $1 million investment with the University of Queensland Australian Institute of Bioengineering and Nanotechnology which has resulted in an Immunostorm Chip for diagnostics for COVID-19 and cancer, and increased applicability and accessibility in diagnosing long-term impacts of these chronic diseases, as well as applicability in psychological, auto-immune, neurological, and aging areas. Read a detailed case study here. 129 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 130 In FY23, we leveraged our Cultural Recognition Position Statement, Indigenous Relations Approach, and Cultural Competency pathway. We undertook a gap analysis against Reconciliation Australia’s framework to strengthen our commitment to reconciliation. In transitioning from Recognition to Reconciliation, we maintain our approach in promoting Indigenous culture and building relationships based on trust and respect. We intend to enhance our governance to empower our people to be culturally aware, competent, and safe, and to advance outcomes in inclusion and diversity for First Nation Partners and Indigenous Peoples. In FY24, we are committed to embed reconciliation deeper into our workforce. Aligned with Reconciliation Australia’s recommended supporting actions, we have begun piloting an Australian focused cultural competency program. It outlines learning options to build awareness of Aboriginal and Torres Strait Islander cultures, histories, rights and achievements, contributing to the personal and professional development of Evolution leaders and First Nation Relationship Managers. This training will be embedded further in the business. Other activities include: • Engaging First Nation Partners and schools during National Reconciliation Week and NAIDOC Week in Australia, and National Indigenous Peoples Day and National Day for Truth and Reconciliation in Canada to share and provided capacity building within our business and communities • Facilitated connections and relationships between our global First Nation Partners in various forums • Holding smoking ceremonies conducted by local Traditional Owners at project commencement • Ongoing collaboration with Indigenous joint venture partners to enable growth, capacity building, and expanded employment and procurement opportunities for their people • Embedding best practice cultural heritage monitoring within large-scale on-country project deliveries • Naming of Traditional Custodian project, the Galari Agricultural Company, as the Winner for Community Excellence • In FY24, ongoing development of Indigenous trainee, apprenticeship, and employment programs at Mt Rawdon and Ernest Henry We are committed to increasing our cultural competency and capability, and to being an organisation that demonstrates leadership, listens, and respects Indigenous communities right across Australia and Canada. Performance In FY23, 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 ESG Performance Data for activities that take place in or near areas where Indigenous Peoples are located. Land and Resource Rights We actively aim to design our activities and projects to avoid the relocation/resettlement and economic displacement of potentially affected people, particularly our First Nation Partners and Indigenous Peoples. They are among the first and most directly impacted stakeholders in terms of culture, environment, and socioeconomic status from our mining operations, exploration, and other engagement. Since Evolution’s creation, including in FY23, no Indigenous peoples or vulnerable groups have been subject to voluntary or involuntary resettlement or displacement. Reconciliation At Evolution, we recognise our role in reconciliation and responsibility to meaningfully consult, engage, and support First Nation communities to enable equitable access to employment, health, training and educational opportunities. Our vision for reconciliation is one where First Nation Partners and Indigenous Peoples have equal access to opportunities and resources, are treated equally in all relationships, and have their cultures and histories celebrated and respected. Evolution maintains this approach with the upcoming ‘YES’ vote in Australian Referendum wherein the Australian people across the country, on our sites and in our communities will be asked if a First Nations Voice to Parliament should be enshrined in The Constitution as an advisory body. This referendum is the result of a six-year campaign since the issuing of the Uluru Statement of the Heart which represented 250 Aboriginal and Torres Strait Islander Delegates’ request for Voice, Treaty and Truth for reconciliation. We have encouraged and supported our people to be informed so as to best execute their individual right to vote. Informed by Cultural Recognition and Indigenous cultural protocols, we engage and collaborate with our First Nation Partners to ensure mutually beneficial outcomes and their full realisation of social, economic, and cultural rights. This engagement is facilitated by our Group and Site Social Responsibility teams and supported by First Nation Engagement Plans developed in partnership with our partners, community leaders and recognised Indigenous businesses. These plans are focused on trusting relationships and promoting the rights and outcomes of First Nation Partners and Indigenous Peoples, including with respect to self-determination, capacity building, lasting employment and subcontractor opportunities. They enable integrating cultural recognition and reconciliation into the business culture, and support cultural inclusion, skills, and knowledge in the workforce. Evolution’s Cowal Gold in the Melbourne Cup goes underground at Ernest Henry CASE STUDY Melbourne Cup Tour Indigenous Stakeholder Outcomes (material topic) Gold from the Cowal operation has been 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 Cowal. The trophy has been produced using Evolution gold that has been mined, refined, and crafted wholly in Australia. The Cup took a promotional tour in the lead up to the running of the 2022 Melbourne Cup. The Cup, and horse racing royalty, visited Ernest Henry in September adding a touch of Evolution gold to the Cloncurry community. Sheila Laxon, the first female trainer to win the race in 2001, came to the operation to connect with our people and see a gold mine up close. The Ernest Henry team supported our partners, the Cloncurry and District Racing Club, who hosted The Cup at the local schools, kindergarten, and hospital. Evolution was also well represented by Geologist Stephanie Bartie who educated the public about how Evolution safely sources gold. The Cup also made its way to Forbes and West Wyalong and on site where the local community gathered to celebrate The Cup returning. Evolution worked alongside the Victorian Racing Club, to bring the People’s Cup to our Cloncurry, Forbes, and West Wyalong communities in the spirit of true partnership and sharing the benefit of gold mining. From September 19 – 21, Cowal hosted five regional events. $15,000 was donated to local charities in the Cowal region. The impacts at both Ernest Henry and Cowal saw host of local social, educational, and economic benefits. Management Approach We are committed to respecting and enhancing the human rights, land and resource rights, interests, concerns, traditional land uses and cultural activities of the First Nation Partners and Indigenous Peoples within our communities. We operate in accordance with our Social Responsibility Performance Standards which require the establishment of formal procedures, processes, and grievance mechanisms related to Indigenous community engagement, economic inclusion and cultural heritage conservation, while meeting and exceeding applicable legislative requirements. The Stakeholder Engagement and First Nations Standards guide our relationships with Indigenous Communities by setting minimum requirements for engagement aligned with FPIC, communication, integration of community input, periodic monitoring, reporting and review. While we have maintained 6% Indigenous employment in FY23 (FY22: 6%), 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 is supported by our Indigenous Procurement Approach and Guideline which is undergoing consultation with site Supply and Social Responsibility Teams. This approach aims to guide all local procurement plans and remove barriers to participation in our business. 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. 131 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 132 CASE STUDY Galari Agricultural Project and Indigenous Excellence at Evolution Evolution is committed to recognising and supporting Indigenous Excellence through our partnerships. A particular point of pride is Cowal’s Galari Agricultural Company (GAC), launched in July 2022 in partnership with the Wiradjuri Condobolin Corporation to provide training and employment opportunities for Indigenous youth in the agricultural field. GAC has been named as the winner of the Community Excellence award in the 2023 NSW Mining HSEC Awards, announced at the NSW HSEC Conference on the 7th of August 2023. Since 2018, we have nurtured our partnership and sponsorship of the Queensland Resources Council (QRC). At the QRC Indigenous Awards 2023, we were proud to be represented by MC Charmaine Saltner, Indigenous Relations and Community Partnerships Lead, and Fiona Murfitt, Vice President of Sustainability to celebrate our leaders in cultural competency and allyship. These leaders demonstrate excellence and advocacy for Indigenous Stakeholder Outcomes every day. Congratulations went to John Fickling – Exceptional Indigenous Person Award Erin Harrison – Indigenous Rising Star Award, and Paul Wright – Indigenous Advocacy Award. We aim to build future leaders in this space through our Cultural Competency Program. Cultural Heritage (material topic) Management Approach As the short-term custodians of the land in which we operate, we respect the rights and role of First Nation Partners and Indigenous Peoples and consider environmental and cultural heritage as an honour and responsibility. We value our partnerships and are committed to working together to identify, protect and preserve Indigenous cultural heritage. We commit to preserving and promoting our First Nation Partners and Indigenous Peoples’ history, culture, and outcomes. Our nine Sustainability Principles represent Evolution’s prioritised UN Sustainable Development Goals with one Principle focusing on ‘Advancing the outcomes for Indigenous Peoples and protecting their cultural heritage’. The Cultural Heritage and First Nations 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 and ethnographic assessments to ensure Traditional Owners are identified and 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 and frequently with our First Nation Partners to identify and preserve cultural heritage sites and to incorporate Traditional Knowledge studies where appropriate. We also incorporate cultural awareness and the customs and traditions of the local communities in our site induction training, and we 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 project and operation undergo regular Sustainability audit and assurance programs that assess performance against these standards and identify opportunities for improvement. The FY23 Sustainability Assurance program highlighted good alignment across all assets 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 Environment and Social Responsibility teams liaise with the First Nation Partners and Indigenous Peoples and oversee the relationship agreements in place. Australian and Canadian operations and exploration projects operate under Collaboration Agreements, Native Title Agreements, Cultural Heritage Agreements and/or Exploration Agreements. They are negotiated with our First Nation Partners and Indigenous Peoples in good faith, fairly and equitably towards mutually beneficial outcomes and ensure we work in partnership to support opportunities that promote self-determination including: • Enabling them to maintain, control, protect and develop their tangible and intangible Cultural Heritage, traditional knowledge and cultural expressions. For example, Cultural Heritage Management Plans prescribe all reasonable 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 • Supporting the improvement and sustainability of their social and economic conditions including negotiated royalties, compensation, or consideration to employment and training opportunities and awareness of business opportunities within the operational footprint Evolution celebrates team members that received Highly Commended and Runners Up at the 2023 QRC Indigenous Awards • 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 asset and project are 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 FY23, 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. Evolution is maintaining a watching brief on the Western Australian Aboriginal Cultural Heritage legislation. In FY23, Evolution sought no Section 18 clearances for Mungari, our Western Australia asset. 133 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 134 Community Engagement (material topic) In FY23, we leveraged our most recent FY22 Survey wherein there was widespread acceptance of our activities and an overall Social Licence to Operate score of 4.00 out of 5, placed at ‘high approval’, based off 96 in-depth interviews and a public participation poll with 153 participants. Findings supported us in leveraging our social capital and collaborating on projects to help increase community resilience, for example mental health initiatives in Red Lake and housing and childcare opportunities across our operations. We continue to collaborate with local councils and industry bodies to enable regional solutions with economic viability. Preparations have commenced for our sixth biennial Stakeholder Perception Survey in FY24. Community Consultation In FY23, Evolution’s Mt Rawdon Operation received public submissions on the draft Terms of Reference for the Mt Rawdon Pumped Hydro Project’s Environmental Impact Study. This was just one instance where interested parties have been consulted and able to provide comment on the project. Community Information Forums, and further social and economic studies being undertaken to understand the impacts and benefits of the Project on local communities, have enabled further stakeholder engagement and consultation. The Environmental Impact Statement for Cowal Gold Operation’s Open Pit Continuation Project also went on Public Exhibition in late FY23. Read more about our operations and communities undergoing consultation in the ESG Performance Data. Management Approach We understand the responsibility of being a major community employer, partner, and neighbour. Across Australia and Canada, we employ local people, provide competitive wages and benefits, use a mix of national and local suppliers, deliver critical infrastructure such as health and education facilities to support living standards in generations to come, and support economies more broadly through taxes, royalties, and other government payments. It is important to us to live among our local communities and understand expectations, share information and resolve issues as they arise. To do so, our responsible operations are guided by our Social Responsibility Performance standards and our local Community Relations Plans. They establish processes for working collaboratively with our communities to resolve issues and opportunities, making positive contributions in the communities, maintaining regular communication mechanisms, and reporting. We have established direct and regular two-way communication with communities at all of our operations using a variety of forums, tailored to local needs. Many maintain established community consultation committees, such as Cowal’s Community Environmental Monitoring & Consultative Committee, providing a regular forum for open discussion between Evolution, community representatives and other stakeholders about the environmental management and performance of the operations. Performance Stakeholder Perception Survey Evolution’s aspiration to leave lasting positive legacies depends on our ability to identify, mitigate and avoid impacts while simultaneously supporting sustainable development in our communities. A key mechanism to forecast emerging community impacts and opportunities is our biennial Stakeholder Perception Survey. It gauges stakeholder sentiment within local communities, focusing on reputation, quality of relationship and communication. Local Little Finds mural by artist Em Anders titled ‘The Perch’ on the Kalgoorlie Hotel. Evolution partnered with E13 and Euphorium to fund the Little Finds project to install over 15 unique and unexpected artworks in Kalgoorlie CBD to support local artists and promote tourism post COVID-19 135 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 136 Community Investment Management Approach We have an established tradition of supporting innovative, targeted local initiatives in our neighbouring communities and have expanded support to nationally and globally relevant programs. Our community investment framework, comprising Shared Value Projects and sponsorships and donations, aims to address specific challenges faced by our local stakeholders and catalyse long-term socio-economic development in local communities. To do so, we actively engage with our local stakeholders to understand local sentiments, needs, and aspirations for sustainable development, aim to strengthen local social and economic institutions, and build the skills and capabilities that diversify economic activity. Where possible we seek to be consistent and supportive of local development plans, and to leverage development resources and funding available through partnership with other bodies. Our approach to community investment remains contextual and targeted for each operation, while upholding our values, Sustainability Principles, and principles presented below. We recognise an area of growth in storytelling and impact measurement, and currently focus on sharing community successes and lessons from these projects throughout the business and beyond. Our Community Investment program is underpinned by four guiding principles: 1 2 Attraction and retention • Raise awareness and strengthen reputation of Evolution/mining sector in broader community • Attract younger generation to careers with Evolution/the mining sector • Grow Evolution’s brand as employer of choice Build community advocacy • Demonstrate industry relevance (now and future) • Foster trust in mining/gold sector • Touch the hearts of our local, regional and national communities • Grow understanding of modern mining practices 3 4 Enhance outcomes for First Nation Groups and ATSI30 people • Demonstrate our respect and accountability for any disturbance • Partnerships that build capacity for the future • Develop/support actions to help close the gap: • Health • Education • Employment Innovation and industry relevance • Unlock value for Evolution/ mining sector • Support leading practice and new approaches in: • Environment • Safety • Discovery • Operations • Technology • Community outcomes 30 Aboriginal and Torres Strait Islander 31 ’Other’ refers to impacts other than those identified impact areas. Commonly allocated to Obligations Performance Direct Community Investment Total direct community investment expenditures across our operations and Group office in FY23 were approximately $3.1 million, and supported the following impact areas: 18% 13% 8% 4% 12% 14% 25% 6% Community Investment Breakdown FY23 (%) Infrastructure capability Local economic development Health and wellbeing Community resilience Skills, education and training Environmental stewardship Arts, culture and sport Other31 Wildflowers at Lake Austin, Western Australia 137 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 138 The following table highlights key Shared Value Projects at our operations: Shared Value Project Operation Purpose Impact Area Outcomes Shared Value Project Operation Purpose Impact Area Outcomes Galari Agricultural Company Cowal Arts, Culture and Sport; and Skills, Education and Training Strengthening a partnership with the Wiradjuri Condobolin Corporation to address significant youth unemployment within the Lachlan Region, including young Indigenous men and women The Hope Project Mungari Health and Wellbeing; Infrastructure Capability; Community Resilience Aims to increase the capacity of the local Goldfields Women’s Refuge and provide additional housing to women and children escaping domestic violence or at risk of homelessness • Revitalisation of the Galari Farm, 1600 ha • Ongoing support for Indigenous trainees to undertake two-year Certificate of Agriculture course, with accreditation through on the job training in land management • Enhanced commitment to and capability of First Nation Partners and Indigenous Peoples in the region • Evolution investment of $800,000 • Winner of the Community Excellence Award at the 2023 NSW Mining HSEC Awards • Addresses high rates of domestic violence and related mortality rates in Western Australian Goldfields • Establishment of transitional and emergency accommodation, involving six private-access units, nearly doubling the facility’s capacity • Safety and security for women, children, and transgender persons escaping traumatic situations • Partnerships with local and state government bodies, and other mining partners in the Goldfields Kalarchibold Mungari A unique portraiture-prize event, run annually in Kalgoorlie-Boulder to celebrate the contributions of local legends, enhancing tourism impacts and community connections Arts, Culture and Sport; Local Economic Development • Partnership and investment of $75,000 with Artgold to develop an Archibald Prize through a local, community lens • Preserve the stories of persons who have made significant contributions to the development of Kalgoorlie- Boulder • Inspire emotional connections across the community, promoting a deeper understanding and awareness of the city and its residents • Draw tourists from the city and interstate for the awards night 1770 Cultural Connection Immersion Festival Mt Rawdon Arts, Culture and Sport Continuing Evolution’s support of the 1770 Cultural Connections Immersion Festival for the third year in 2022 University of Queensland Research for COVID-19 Immune Response Using Gold Group Extending the partnership with UQ to adapt research on gold nanoparticles to assist with broader medical impacts Health and Wellbeing; Skills, Education and Training; Infrastructure Capability • The growth of Evolution’s relationship with the Traditional Owners and Gidarjil Development Corporation, and of the festival, since its inception 3 years ago. • Cultural education, immersion, dancing, and engagement activities to support reconciliation • Spotlight for Evolution’s Yarning Tent and the Gidarjil Murra Wolka Art Project • Mayor has agreed to support the festival into perpetuity, supporting Evolution’s commitment to sustainable, positive legacies for the communities • The increased applicability of the Immunostorm Chip technology from assisting in predicting who will develop cytokine storms which are associated with long-term tissue damage, to psychological, auto- immune, neurological, and aging impacts • Evolution and UQ have been positioned as innovators in biotechnology, and fostered a new generation of scientists in this area • A partnership with UQ exceeding both parties’ initial expectations 139 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 140 Grievances Management Approach We have established grievance mechanisms at each of our project or operation and at Group through which the community 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 mechanism and procedure is to ensure issues and grievances are identified, managed, investigated, and remediated in a timely and consistent manner and in accordance with relevant policies and procedures. The procedure assists us to: • Facilitate early resolution of grievances • Provide an open and responsive grievance management process • Enable the Social Responsibility 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 Performance All operations have publicly accessible and secure grievance mechanisms in place to ensure that stakeholders can voice concerns about all Evolution activities and impacts and that these concerns are documented in a transparent, accountable manner and addressed in a timely fashion. Refer to the ESG Performance Data for the total number of grievances filed through grievance mechanisms at the operations in FY23. Local Employment (material topic) Management Approach We make it a priority to employ our workforce from the local communities where we are located 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 and to build local capability to ensure they are fit for work. 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 FY23: 73% FY22: 72% local employment across the operations local employment across the operations 141 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 142 Environment 143 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 144 Environment Being a responsible environmental steward is central to maintaining our social licence to operate. By supporting our people who work to protect the environment and improve biodiversity outcomes, we deliver long-term value to all stakeholders. Lawrie Conway, Managing Director and Chief Executive Officer Management Approach Environmental stewardship is a foundational element of Evolution’s Sustainability Strategy and is essential to maintaining our social licence and trust within the communities in which we operate. In accordance with the Sustainability and Strategic Planning Policy32 and associated Standards33, we incorporate environmental management including climate change into all areas of the business to manage risks, impacts and opportunities throughout the mine lifecycle. This includes integration into the due diligence and exploration processes. We operate beyond legal compliance through the Evolution Risk Management Framework to live our values and deliver against our social licence expectations. We strive for sustainable consumption and safe production at all operations to ensure we leave a positive Mining Life Cycle 1 2 3 4 5 Due Diligence Acquisitions and Exploration • Due diligence and acquisitions • Exploration Development Production • Cowal • Cowal Underground completion • Mungari growth project including mill expansion • Ernest Henry • Mungari • Red Lake • Mt Rawdon • Brownfield • Ernest Henry and greenfield projects mine extension Feasibility Study • Tier 1 • Growth and Jurisdictions include Canada and Australia • Joint Ventures development at Red Lake Economic/ Environmental Transformation (Post closure & divestment) • Planning for Mt Rawdon Pumped Hydro Energy Storage Progressive Rehabilitation • All operations have historic and ongoing progressive rehabilitation e.g. Mungari White Foil waste rock dump • Rehabilitation of exploration activities legacy supporting the needs of present and future generations. Our strategic approach to environmental stewardship comprises proactive and consistent risk-based environmental management, including the consideration of risks related to climate change and the broader environmental footprint, underpinned by continuous feedback and improvement. 32 Sustainability and Strategic Planning Policy 33 Sustainability Performance Standards Environmental Stewardship Strategic Approach Continuous feedback and improvement Proactive environmental management Environmental stewardship pillars Response-driven environmental management Evolution governance framework Risk based approach to planning (includes climate-related risk) Embedded environmental stewardship Environmental management system Application of technology and innovation Circular economy evaluations Surface and groundwater Effluent, tailings and waste management Efficient land use and nature conservation Air and GHG emissions Climate change Heritage protection Post mine land use Sustainable planning Stakeholder engagement Continuous feedback and improvement 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 During FY23, we have continued to: • Strengthen environmental stewardship across • Assess and implement energy efficiency and operations through review and 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 risks of water security to reduce raw water demand by minimising water use requirements in processes and maximising water reuse or recycling where possible • Plan for and manage extreme weather events, for greenhouse gas (GHG) emission reduction initiatives, partnerships and projects • 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, our communities and the environment example Mt Rawdon’s unseasonal rainfall • Consult with and communicate to stakeholders • Monitor surface water, groundwater, land and nature to protect and enhance environmental values including the local communities on mine planning, operations and post mine land use 145 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 146 Climate Risk (material topic) The Cowal Power Purchase Agreement supports our pathway to our Net Zero by 2050 commitment, as we meet the challenges ahead of us. We continue to look for new ways to reduce our environmental footprint through innovative partnerships, working with our stakeholders and communities, and playing our part. Bob Fulker, Chief Operating Officer Management Approach Governance We integrate climate change considerations and our response into the overall business strategy throughout strong governance and risk management though the entire mine lifecycle, from due diligence to closure. As outlined in our Governance Framework above, and the Climate Risk Governance Structure, responding to climate change and climate risk is governed at the Board level through the Risk and Sustainability Committee and the VP Sustainability has primary responsibility. Robust engagement with various stakeholders including investors, policymakers, industry associations, peer companies, non-government organisations and communities, informs our climate risk strategy and operational objectives. The next figure draws from our Governance Framework and Integrated Risk Management Framework and illustrates our governance structure for managing climate risk. Climate change presents an emerging and increasing risk with the potential to impact our operations, supply chains, stakeholders and the communities within which we operate. Climate-related risks have the potential to impact the wellbeing of local communities and are an increasingly important issue for all stakeholders including investors seeking to understand the impact of climate change across their portfolios. Evolution’s Sustainability journey including the management of climate risk has been integrated into our strategy since inception. It was formalised prior to FY19 with the development of a Resource Efficiency and Emissions Reduction Sustainability Performance Standard. Since then, we have released our Climate Risk Position Statement34, identified climate risks with material impacts to the business in alignment with TCFD, released our Net Zero Commitment, and embedded emissions reduction planning and strategy within the business. Through the FY23 Net Zero Future Balanced Business Plan (BBP) Project, we further embedded Net Zero awareness and outcomes within the business, through project milestones such as the Mungari decarbonisation roadmap, Renewable Sourcing Strategy, a Climate Risk Position Statement review and the TNFD (V0.4) gap analysis. Our Management Approach aligns with the TCFD Framework and has incorporated a review of TNFD. Climate Risk Governance Structure Systems Process & Accountabilities People Board of Directors • Strategy & climate risk position • Risk appetites Risk and Sustainability Committee • Risk governance Oversight of Evolution’s Sustainability strategy, assurance, resourcing, and performance, including climate change risk Audit Remuneration Committee Committee Board Of Directors Oversight of Evolution’s Sustainability strategy, assurance, resourcing, and performance • Sustainability & Strategic Planning Policy and Standards • Climate Risk Position Statement • Group Risk Register • Risk analysis & reporting • Net Zero Future BBP Project • Operational Risk Register • Management, assurance and verification • Project assessments Chief Executive Officer Responsible LT Member - VP Sustainability Responsible for the Sustainability Portfolio, induding governance, reporting, and performance. Risk Owner for HSEC, First Nations, climate change and water management Leadership Team (LT) & Management The Sustainability strategy is developed and approved by the LT and endorsed by the Board  Community Of Practice (CoP) The CoP is sponsored by LT. It provides subject matter expertise, leadership and input into climate change related strategies and activities  Group & Operations Support embedding climate change risk management at all levels of the business 34 Climate Risk Position Statement 147 Annual Report | www.evolutionmining.com.au Mungari landscape by Erica Urquiaga Annual Report | www.evolutionmining.com.au 148 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 and Strategic Planning Standards Climate Risk Position Statement Risk Management Guidelines (ISO 31000) for effective and integrated risk management 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 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 Our governance structure enables ongoing opportunity identification and improvement reflecting the transitional risks associated with emissions, which includes managing a dynamic reporting environment. This is aligned with the Paris Agreement framework (and associated Greenhouse Gas (GHG) Protocols. Climate-related risks are actively reported and supported by targets, including Net Zero, established to reduce emissions, improve water security via responsible water management practices, and prepare for extreme weather and health events. The Board is regularly informed, including via the Risk and Sustainability Committee on progress against our climate risk targets at least three times a year. In FY23, the Board again endorsed Climate Change as a Material Business Risk. Concurrent with the development, execution, and validation of site decarbonisation roadmaps, energy and emissions reduction work is being conducted at each operation to reduce consumption and wasted energy, and improvements are being shared across the business. Options for renewable energy projects, operation-level efficiencies, power purchase agreements (PPAs), and emerging technologies are assessed on an ongoing basis to determine the current and future viability of options. 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 and Sustainability Advantage. Our long-term strategy is detailed in our Net Zero Commitment. Strategy Risk Management We recognise the crucial role of the mining sector (particularly the metalliferous and critical minerals sector) in developing strategies to contribute towards a low-carbon economy. Our strategy is aligned with our Climate Risk Position Statement. We have developed a strategic approach to actively manage the environmental and social impact, and conserve natural resources and socioeconomic systems, for climate risk management. Our approach acknowledges that climate change poses social, environmental, asset, technology, infrastructure, financial, legal, and reputational risks and impacts on our business, operations, and communities through: • Physical climate-related parameters, including water security impacts and supply chain impacts • Transitional risk with changing legislation • Regulatory and social pressures from host countries • The Paris Agreement and alignment to science-based climate targets • Community vulnerability in countries of operation • Technical capability and skillsets Evolution’s short to medium-term decarbonisation roadmap is focused on optimising operational efficiency and the energy value chain, and shifting to renewable energy supply using a partnership model wherein we are grid connected. This is supported with a shift to biofuels and fleet electrification, linked with the transition to these sources throughout the industry, likely around 2030 onwards. The longer-term focus includes the shift to storage and ways to replace diesel, and nature-based solutions. Four major sources 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. Risk management (including physical and transition climate-related risks) is embedded by Management into our day-to-day operational business processes, and we are committed to enhancing our understanding of our upstream and downstream business activities and stakeholders. Business risks associated with climate change impacts (including regulatory risks, physical climate parameter changes and others) have been identified as material risks to the business through risk workshops and stakeholder engagement at the Board and operational level. All material risks and actions, including those related to climate change, are documented and kept current for management and reporting. The potential likelihood, severity, and materiality of these and transitional risks and opportunities to operations and communities are proactively assessed and forecasted at minimum annually. Our Climate Risk Management Process is detailed in the following figure. Our risk assessment process is focused on site-specific exposures, such as wildfires, cyclones, floods, excessive rainfall, and landslides at a more regional level. Various risk management measures have been implemented, including conducting regular climate risk and vulnerability assessments that are reviewed and updated at a minimum annually, integrating climate-related risks into strategic risk management plans and processes. Climate risks are managed through a risk management framework and in alignment with the Sustainability and Strategic Planning Policy and TCFD. In alignment with the TCFD Framework’s Strategy and Risk Management pillars, we consider short, medium, and long-term risks as noted below35: • 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 35 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) 149 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 150 The physical climate-related risks and mitigation identified as material and most likely to impact the business in the mid to long-term as per our Climate Risk Position Statement, are presented in the following table. We recognise that these physical risks can have variable impacts on our value chain segments, including Management, Community, Inbound Supply, Operations, Distribution, Marketing & Sales. We actively manage these risks and impacts across the value chain. Climate-Related Risks Identified as Material to Evolution Climate-related risk Risk & Impact Mitigation Water security • Reduced water availability • Weather pattern management and planning with the potential for water security implications to the business plan • Reduce raw water demand to reduce reliance on external water sources and pressure on sources that support communities and agriculture • Year-on-year increase in reuse of mine affected, hypersaline and low-quality water water in preference to fresh water through various strategies including design, construction and operation of process plant and tailings facilities Risk Management: Climate Risks and Opportunities We actively manage risks and opportunities to improve efficiencies and mitigate impacts and risks across our business. Our operations are located in a range of regional climatic zones with varying vulnerabilities to both acute and chronic physical risks, including extreme weather events, disasters, resource shortages, changes in the patterns and intensity of rainfall and storms, water shortages, and changing temperatures. These risks and opportunities are compounded by transitional risks and impacts of uncertain policy, economic and market conditions. Climate-Related Risks Risk Description Physical – Chronic Water security: • If extreme climatic events worsen with increased water stress, heavy rains, 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 • Reduce total water demand through mine design and Transition – Policy Climate change legislation, including carbon pricing: • In response to climate change, governments will seek to reduce emissions from industry through the implementation of new legislation including carbon pricing mechanisms, such as emissions 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 Extreme weather events • Material damage to the receiving environment, assets and infrastructure; disruptions to operations and supply chains process improvements • Investigate water saving and recycling technologies such as optimised processing • Weather pattern management and planning • 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 • Setting measures and targets, e.g. quantifying • Developing energy regulation, market demand for sustainably produced commodities and supplier surety Scope 1, 2, and 3 carbon emissions, and our Net Zero Commitment • Annual energy audits • Emissions reduction planning, including the transition to renewables • Partnering with industry for accelerated energy efficiency and emissions evaluation • Modelling, assessment, and evaluation of emissions and internal carbon pricing in Projects, Financial and Commercial departments • Technology and innovation pathways • Renewable Sourcing Strategy and Cowal PPA • Supply chain partnerships including for biodiesel management Extreme health events • Food, water and viral • Health and wellbeing programs and practices borne illness which could be confined to site, the community or global • Fatigue management and onsite medical care • Food and water standards and process • Pandemic response plans including protection of communities, First Nation Partners and Indigenous Peoples • Specialist planning, support and advice 151 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 152 Climate-related risks and opportunities have been integrated across the business. As they are regularly assessed and managed, they have informed the reporting requirements and targets outlined in: 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. • Site Emergency Response Plans inclusive of Trigger Action Response Plans at all operations • Pre-wet season planning at all operations Regular monitoring of water level depths, including during extreme weather conditions, and the dissemination of extreme weather preparation training at Mt Rawdon and Ernest Henry are examples of Evolution’s resilience methods to managing extreme weather events (or extreme climate-related natural hazards). Opportunities associated with emerging low-carbon and energy- and fuel-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. In FY23, we continued to assist neighbours, local government, emergency services and local communities including during flood, drought and wildfire events. Climate-Related Opportunities Opportunity Description Operational efficiency Driving decarbonisation through operational efficiency will play a key role in mitigating climate change • Addressing the heat loss via insulation at Red Lake to improve the energy efficiency of operational areas • Energy savings in diesel consumption can be gained through activities such as improved payload management, idle time management and logistics and haulage optimisation Resource efficiency • 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 • Partnerships can be strengthened during trials towards an energy-efficient fleet economy, which also contributes to a new operational skillset Water Potential for long-term climate change to impact water availability and quality • Demonstrated efficiency in water use and management which provides enhanced reputation and/or investor ratings and new business opportunities and commercial advantage to Evolution • Redesign of TSF, and waste forms to enable waste and water reuse • Potential to deepen community partnerships to support responsible and equitable water management Climate change legislation, including carbon pricing Acknowledged global and national carbon price trends (operations are subject to an environmental levy payment for Scope 2 emissions) • Further detail 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) aligned with changes in technology as they arise. This includes plans to migrate to renewable energy sources and the consideration of renewable fuel, electric fleet and/or hydrogen fuel adoption Markets • Embedding emissions forecasting that integrates Australian and Canadian carbon pricing and modelling into Integrated Planning, Financial, pre-feasibility and feasibility projects, and Commercial processes • Regularly remodel proposed changes to carbon pricing using various external sources, including Australian Carbon Credit Units (ACCUs) and the Network for Greening the Financial System (NGFS), in forecasting and climate scenarios The inclusion of Sustainability factors within the remuneration strategy (referenced in the Remuneration section of the 2023 Annual Report) reinforces the importance we place on delivering on our Sustainability commitments and strengthens the link between management remuneration and the management of climate related risks. Metrics & Targets Energy and Emissions (Material Topic) & Our Net Zero Commitment Our approach to managing energy and emissions centres around managing our impacts on climate change through our Net Zero Commitment. In FY21, we committed to reducing our carbon emissions by 30% by 2030 and to be Net Zero by 2050 in line with the Paris Agreement and scenarios therein. This commitment recognises that climate change is one of the most pressing global issues and that we must take serious action to ensure we have a future business, a clean and productive environment, and a healthy and just society. Our Net Zero Commitment is based on baseline data derived from an aggregate of all Evolution operations’ emissions in FY20. In FY23, the Mungari baseline was externally validated in alignment with the GHG Protocol36 and in FY23 there have been no adjustments to the Evolution aggregate FY20 baseline. Based on guidance from the GHG Protocol, we will update the baseline if there is a significant structural change in the business or methodology change. Internally we have set this threshold at a +/- 10% change to our Scope 1 and 2 baseline year emissions. This methodology has been further embedded into our internal procedures, planning and modelling processes in FY23. 2. Investment in low-emissions technologies focused on electrification of fleet and equipment a. Transition to electric fleet (battery electric vehicles (BEV) & fuel cell electric vehicles (FCEV)) or gaseous based fleet, including consideration of electrified underground operations b. Partnership with industry to investigate biofuel and green hydrogen options in addition to BEV c. Continued assessment and implementation of energy efficiency opportunities and disruptive technologies, in line with Mine-of-the-future design (e.g. software monitoring of grinding efficiency, adoptions of alternate/green reagents in processing) 3. Biodiversity investment and management a. Exploring and investing in innovative, verified and assured biodiversity management opportunities, including biodiversity offset creation and management, linked to TNFD 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. Our approach at the Group and Operational level to Net Zero is built upon key pillars of: • Emissions and data forecasting with a split by value chain emissions • TCFD Alignment and Climate Scenario Analysis, and consideration of emerging disclosures and frameworks such as the TNFD • Emissions reduction pathways aligned with science- based strategies In line with our aim to reduce energy consumption while enhancing operational productivity, our key levers and actions on our pathway to Net Zero by 2050 include: • Operational emissions optimisation through portfolio optimisation, decarbonisation projects and NPV assessments 1. Transition to 100% renewables and low-emission sources, with a medium-term target of >30% renewables by 2030 • Enhancing understanding of current and future value chain emissions, and building relationships accordingly • Project development and deployment through financing, capital allocation, and operational structures that embed emissions considerations • Internal reporting to support employee engagement, and external reporting in alignment with ESG frameworks and Industry Association partnerships • External assessment and review of disclosures and management to deliver best practice a. Consideration of wind, solar, biofuel and green hydrogen sources b. Assessment and exploration of new storage technologies, including carbon capture and storage c. Development and strengthening of value chain partnerships, including capacity building, and working with industry partners to advance carbon-reduction technologies in mining d. Construction of large-scale storage and renewable contribution to the grid through investment in the Mt Rawdon Pumped Hydro project e. Introducing energy efficiency opportunities into the value chain focussed on venting, crushing and haulage 36 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 153 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 154 Decarbonisation Timeline To Net Zero 2030 OPERATIONAL EFFICIENCIES AND PARTNERSHIPS 2050 NATURE-BASED SOLUTIONS We are working with energy infrastructure providers to lock in strategic partnerships, particularly at Mungari and Ernest Henry, to meet the majority of the electricity demand with renewable electricity. All assets are optimising operational efficiency, supported by the shift to renewable energy supply, including biofuels and fleet electrification Co2 ➡ Residual, hard-to-abate emissions that are unable to be reduced will be addressed using nature- based solutions with a focus on biodiversity. 2023 2030 30% or greater GHG 2040 2050 emissions reduction Net Zero GHG emissions NOW COWAL PPA LOCKED IN A PPA with AGL was secured and implemented to provide Cowal’s mining operation with up to 70% renewable energy by 2030 2040 TECHNOLOGY TRIALS AND ROLL OUT Strengthen strategic energy partnerships and leverage technologies to displace diesel within mine fleets. This technology will be assessed and trialed with a focus on electrification37 Phase 1: 100% Renewable electricity through strategic partnerships Phase 2: Electrification of fleet and equipment Phase 3: Nature-based solutions This figure represents our decarbonisation timeline to Net Zero, building on the conceptual pathway developed in FY22. 37 Application of technologies to displace diesel in mine fleet is a complex decarbonisation challenge for Evolution. A number of short to medium-term and longer-term solutions are currently being assessed and considered. These include solutions that are technologically mature such as HydraGEN, Railveyor, BlueVein and hybrid vehicles as well as technologies that have high potential but have limitations at present due to their practical application within Evolution operating mines and their commercial competitiveness (e.g., battery electric vehicles) Planned Emissions Reduction Pathway To 203038 +118 -186 -84 -21 -0.3 -103 Cowal Power Purchase Agreement Cowal grid emissions intensity Cowal ▲ mine activity 800 700 600 500 400 ) e - 2 O C . t k ( s n o i s s i m e 300 s a g e s u o h n e e r 100G 200 Mungari renewable electricity technology Mungari ▲ mine activity including expansion39 2 e - O C . t k 0 0 7 Increase Decrease 2020 Co2 ➡ +44 +4 ~33% Red Lake ▲ mine activity Mt Rawdon mine closure Ernest Henry ▲ mine activity including expansion e - 2 O C . t k 2 7 4 2030 This figure depicts the planned emissions reduction pathway to 2030, with the theoretical abatement potential estimated to be ~33%. 38 GHG emissions reductions include initiatives implemented since 2020 and initiatives still under consideration as part of pre-feasibility or feasibility studies. Detailed decarbonisation studies have been undertaken for Cowal and Mungari. A detailed decarbonisation study for Ernest Henry is planned for FY24. Preliminary analysis indicates that decarbonisation of Ernest Henry’s power could abate more than 100 kt.CO2-e of Scope 2 GHG emissions. However, the realisation of this decarbonisation potential for Ernest Henry would rely on an assessment of energy contracting options that may not be possible until after 2030. Forecast changes in activity at mining operations has been included in the assessment where feasibility studies have been completed and investment has been committed. This includes the expansion of Mungari and Ernest Henry. Forecast GHG emissions are subject to annual review 39 The Mungari mine expansion will result in a near-term increase in emissions due to an interim reliance upon diesel to power remote assets. However, Evolution is exploring potential opportunities to avoid diesel use and mitigate associated emissions through considerations such as hydrogen power and electrified railveyor 155 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 156 Evolution’s Emissions Reduction Forecast to Net Zero Technology feasibility assessments and trials to displace diesel: • HydraGEN • Railveyor • BlueVien Potential ~33% Reduction by 2030 • Battery-electric vehicles • Hybrid vehicles Conceptual Modelled Scope 1 GHG emissions Scope 2 GHG emissions l s e b a w e n e r % 0 0 1 . 1 Energy efficiency and management, strategic energy partnerships, and grid decarbonisation40 n o i t a c fi i r t c e E l . 2 Electrification e - 2 O C . t k 800 700 600 500 400 300 200 100 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 40 Cowal PPA is committed with 70% renewable by 2030. Mungari is in discussions with energy infrastructure developers regarding a high percentage solar firmed with natural gas solution. Ernest Henry is yet to undertake its detailed decarbonisation study GHG emissions Nature solutions Assured offsets 2050 y t i s r e v d o B i i . 3 2040 Not to scale Geologist’s photo taken by Chris Wilson Annual Report | www.evolutionmining.com.au 158 The previous figure visualises how our timeline and implementation interact and forecasts the impacts of our emissions reduction pathway. Evolution completed its annual NGER reporting which is independently audited and in FY24 will track its Net Zero targets via submissions to the Clean Energy Regulator using the CERT Framework. Detailed monthly capture and analysis of the energy and emissions performance41 is conducted in alignment with Evolution’s Sustainability Performance Standards. We recognise our contribution to GHG 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. Scope 3 emissions have been collated internally in anticipation of increasing data collection, assurance, and achieving greater transparency in our GHG emissions reporting in future years. Performance: Net Zero Milestones We calculate key metrics and use targets to measure and monitor our performance and progress towards our Net Zero Commitment. In FY23, our internal awareness and capabilities in Net Zero were further strengthened through the FY23 Net Zero Future BBP Project. It built upon the progress made in FY22 by setting and achieving further milestones in our Net Zero journey, as described below. In the upcoming years, we look to further operationalise the milestones and outputs of the Net Zero Project to embed our commitment to Net Zero into capital investment, business planning and operational delivery processes. Our FY23 performance is summarised in the table below. Progress made towards Net Zero in FY23 Metrics and Targets Status Goal: 30% reduction in emissions by 2030 and Net Zero by 2050 (Scope 1 and 2) On track • Absolute emissions (Scope 1 & 2) reduced by 11.2%42 from FY20 baseline • Validated emissions baseline (in accordance with the GHG Protocol) and forecast, linked to Life of Mine planning • Deepened value chain emissions map Decarbonisation achievements in FY23 • Modelled Net Zero pathway under 1.5 degrees Celsius and 2 degrees Celsius scenarios • Developed site decarbonisation roadmaps which will be integrated into site level emissions reduction plans in FY24 • Conducted scoping and feasibility studies for electric vehicle use at operations Achieved Key highlights: • Cowal PPA resulting in a ~19%42 reduction in the operation’s Scope 2 emissions in the second half of FY23 • Emissions considerations and modelling integrated into Capital Expenditure Request processes, Life of Mine planning, and into due diligence processes • 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) 41 Evolution assesses emissions performance aligned with multiple methodologies, including the location-based method and the market-based method, aligned with the GHG. The location-based method reflects the average emissions intensity of grids on which energy consumption occurs. In FY23, we introduced a market-based method, which reflects the renewable energy we purchase through our electricity provider in New South Wales and the large-scale generation certificates (LGCs) that are surrendered on the Company’s behalf. 42 Assessed using market-based method Progress made in FY23 toward achieving our Net Zero commitment in line with our key pillars is summarised in the following figure. FY23 Actions and Achievements Toward Achieving Net Zero 1 2 3 Emissions and Data Forecasting TCFD Alignment/ Climate Scenario Analysis Emissions Reduction Pathways • Continued emissions • Progress against TCFD • Ongoing development of monitoring and validation of emissions baseline on Life of Mine forecast dataset • Planning for more streamlined reporting and forecasting data management systems • Integrated emissions review components into business development opportunity assessments Reporting – currently at 90% • Climate Scenario analysis at Mungari – energy & emissions, extreme weather events (storms) high-level site decarbonisation roadmaps • Mungari Energy Audit undertaken, and findings fed into decarbonisation roadmap • Undertook TNFD (V0.4) Gap • Renewable Sourcing Strategy Analysis and Alignment Review developed • Consideration of Project scenarios 4 5 6 Internal and External Reporting • Performance: emissions intensity and absolute performance tracking below baseline • Reporting to Corporate Emissions Reduction Transparency Report (CERT) Operational Emissions Optimisation • Enhanced engagement between Group and operational stakeholders through Net Zero Future BBP Project • Decarbonisation opportunities identified, assessed and trialled across the operations • Red Lake insulation of operational areas increased energy efficiency • Red Lake introduction of energy efficient ventilation on demand (on post blasting only) • Red Lake use of five Heavy Vehicle BEVs in service Value Chain Partnerships • Member of Electric Mine Consortium: focused on carbon footprint reduction through shared learnings, electrification and other technologies • Sustainability Advantage: supported Evolution’s undertaking of TNFD (V0.4) Gap Analysis • Sustainability Procurement Framework and other partnerships focused on energy procurement (renewables and biofuels) • Battery electric drill partnership with Epiroc at Red Lake and Cowal • Cowal PPA 159 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 160 Renewable Sourcing Strategy In FY23, Evolution developed, socialised, and measured against a Renewable Sourcing Strategy as part of the business wide Net Zero Future BBP Project. The Renewable Sourcing Strategy is managed at the Group level and intends to meet commitments to increase renewable energy usage applicable to all assets. It involves a core number of considerations including: • Security of supply • Price risk protection • Security of supply from renewable energy sources addressed through ensuring structuring, technology and counterparty risks are identified, assessed and mitigated/managed • Renewables electricity pricing benchmarked against market pricing or a competitive procurement process • Access to green credits where available and benchmarked against available market pricing • Flexibility maintained in deal structuring to allow for • Flexibility to accommodate for changing power changes in demand profile requirements for the business • Emissions reduction To further integrate Evolution’s Net Zero targets and commitments into the value chain, the emissions reduction pillar has been added to the sourcing strategy to ensure that renewable energy solutions are taken into consideration for all future power requirements. Key assessment criteria for the emissions reduction pillar include: • Whole of business view adopted whilst still maintaining a modular approach to renewable solutions This strategy and commitments embedded therein were applied throughout the Cowal PPA process to deliver a robust, competitively priced long-term renewable energy solution in FY23. Read more about the eight-year partnership below. CASE STUDY: Competitive long term renewable energy contract implemented for Cowal A competitive, long term power supply agreement for Cowal under a new eight- year partnership with AGL commenced in January 2023. It included a renewable energy component from a solar farm where a growing portion of the power will be from renewable sources via a Power Purchase Agreement (PPA), generating large-scale generation certificates (LGCs). This is a very important milestone for Evolution, particularly since power accounts for approximately 10% of costs to operate the mine. In a very challenging energy market, we have been able to secure both a long-term, competitively priced power contract for Cowal, and a growing renewable component that provides us a clear pathway to reducing Evolution’s energy and emissions by 30% by 2030. As a result of this PPA, there is potential for the scalability of the partnership, and extension of our decarbonisation efforts, to our other operations. Performance: Scenario Planning & Modelling in line with TCFD Climate Scenario Analysis While accurately predicting how future policies and climate impacts would unfold is challenging, scenario analysis can help highlight the range of physical and transitional risks that climate change may present in specific contexts and allow for improved resilience. In FY22, we completed detailed scenario analysis of our highest producing asset, Cowal. In FY23, we completed a detailed scenario analysis of our second highest producing asset, Mungari. This has enabled the comparison of outcomes; supported the holistic identification and management of future risks, opportunities, and scenarios across the portfolio; and enhanced understanding of the business wide impacts to revenue, expenditure, operations, workers, supply chain and payments to governments. We have deployed increased climate risk management rigour through overall operational analysis and the detailed scenario analysis exercises aligned with the recommendations of the TCFD, adopting Business-as- usual, Mid-range, and below 2°Celcius scenarios including Representative Concentration Pathways (RCP), NGFS, etc. The scenario analysis at Mungari tested additional scenarios that covered both physical and transitional risks. Overview of Scenarios Selected for Climate Scenario Analyses Scenario Scenario Risk Type Operation Business-as-usual scenario where the world warms over 4°C above pre-industrial temperatures (SSP5-8.5 ‘Hot House World’) Physical Cowal, Mungari Mid-range scenario (SSP2-4.5 ‘Slow and Steady’) Physical Cowal, Mungari Well-below 2°C-aligned scenario (SSP1-2.6 ‘Speedy Net Zero’) Physical NGFS Below 2°C NGFS Divergent Net Zero Transitional Transitional Cowal Mungari Mungari The main sources of information for the scenario analysis were the Intergovernmental Panel on Climate Change (IPCC) (for physical risks) and the NGFS (for carbon pricing). The analysis identified risks such as wind damage, excess rainfall, flooding and lightning due to heavy rainfall events and windspeeds projected generally out to the year 2100. Additional risks included the electricity grid reliability, diesel consumption in equipment, and the potential impact of a carbon price on the asset and suppliers at Mungari. 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 local stakeholders of our position. Resilience measures will continue to be reviewed and refined as more analyses occur and evolve over time, including options to incorporate more quantitative information. 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 was developed which addressed governance, emissions assessments, targets and initiatives, opportunities and threats and communication. Since then, we have integrated a strategic climate focus to align with the TCFD recommendations on Governance, Strategy, Risk Management, and Metrics and Targets. We maintain our commitment to increased transparency on climate disclosure by formally supporting the TCFD. 161 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 162 Evolution’s Approach to TCFD Alignment Governance Emission assessments Targets and initiatives Opportunities and threats Communication o r k FY23:  TCFD Focus Area e w m a r F c i g e t a r t S Governance Strategy Risk management Metrics and targets In FY23, the total emissions from fuels and electricity continued to trend downwards with an 11.2% reduction in emissions from FY20. In terms of renewables, 25% of all electricity consumption was renewable. 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. Compared to FY20 Scope 2 emissions (electricity) reduced by 15.5%. Cowal emissions decreased due to the renewable electricity purchased via the Cowal PPA. Cowal, Mungari and Red Lake are currently leading the adoption of renewable energy for Evolution with 30% or more of their electricity from renewable sources. Partnerships supporting investment in renewable energy is Evolution’s preferred strategy to support our transition to Net Zero, with opportunities presenting where we are grid connected in each jurisdiction in which Evolution operates. The registration of the multi-year monitoring period with the Clean Energy Regulator has confirmed that Cowal is not considered a Safeguard facility as of FY23, i.e. they did not trigger the Australian Safeguard Mechanism threshold of 100,000 tCO2-e. Cowal was able to register for a multi- year monitoring period with the Clean Energy Regulator by demonstrating the operation’s Scope 1 emissions will reduce over the next two years following the peak construction works. Scope 2 emissions reflect two thirds of emissions, with Cowal operations in NSW contributing almost half of all emissions. Evolution electricity consumption by category FY16 - FY23 In FY23, as in previous years, a review of our TCFD disclosures was independently conducted alongside a review of our disclosures with defined and emerging Sustainability disclosures. This included TNFD (V0.4) gap analysis and alignment review, which is discussed in the Land Use and Biodiversity section of this Report. The analysis verified that Evolution’s alignment to the TCFD framework is still 90% compliant. Disclosure alignment with the recommendations of the TCFD framework and internal capability with regards to the framework was enhanced in FY23. This included expanding stress testing climate scenarios from Cowal to Mungari and improving understanding and disclosures of climate-related financial impacts to the business. Actively tackling climate-related issues is essential to ensuring our relevance for the decades to come. It supports our reputation as a socially and environmentally responsible, and climate-conscious business. Refer to the ESG Performance Data document for our TCFD index and detailed disclosures. Performance: Scope 1 and 2 emissions The FY23 Evolution emissions performance compared to FY20 is provided in the table below. FY23 Emissions Performance Against FY20 Baseline Greenhouse gas (GHG) Emissions FY23 FY20 (adjusted baseline)43 Change (%) Total of Scope 1 and Scope 2 (t CO2-e) (market-based approach)44 622,132 700,378 GHG emissions Scope 1 (t CO2-e) 218,531 222,928 GHG emissions Scope 2 (t CO2-e) (market-based approach)44 403,601 477,450 -11.2% -2% -15.5% 43 FY20 emissions baseline for current assets validated in accordance with the GHG Protocol 44 FY23 Scope 2 emissions actuals are calculated with market-based approach in alignment with the GHG Protocol. LGCs will be surrendered in January 2024 for the 2023 calendar year 93% 90% 90% 87% 83% 65% 71% 66% 7% FY16 10% FY17 10% FY18 35% 29% 9% 25% 13% 17% FY19 FY20 FY21 FY22 FY23 Renewable electricity (kWh) Low emission electricity (kWh) Non-renewable electricity (kWh) 163 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 164 FY23 Scope 1 and Scope 2 Emissions (tCO2-e) Breakdown by Operation45 Intensity ratios allow the analysis of energy consumption and GHG emissions data in the context of an organisation specific metric. Our approach is aligned with the “per tonne mined” intensity metric, as it enables us to analyse data in the context of activity at all operations. The FY23 emissions intensity performance compared to FY20 is presented below. 400,000 200,000 165,088 104,156 7,397 28,847 0 56,540 37,793 58,041 33,673 116,449 13,791 Cowal Red Lake Mungari Mt Rawdon Ernest Henry Greenhouse gas emissions Scope 1 (t CO2-e) Greenhouse gas emissions Scope 2 (t CO2-e) Scope 1 and 2 Emissions (tCO2-e) by Operation (FY20 vs. FY23)45 281,612 269,243 300,000 200,000 100,000 0 158,407 94,332 103,238 91,714 127,407 130,240 29,582 36,244 Cowal Red Lake Mungari Mt Rawdon Ernest Henry FY20 FY23 FY23 Proportion of total Scope 1 and 2 emissions by operation (tCO2-e)45 21% 15% 43% 15% 6% Cowal (43%) Red Lake (6%) Mungari (15%) Mt Rawdon (15%) Ernest Henry (21%) 45 FY20 performance calculated utilising location-based methodology. FY23 performance and beyond calculated utilising market-based methodology Emissions Intensity (CO2-e) FY23 FY20 % change Emissions intensity (total Scope 1 and Scope 2 tCO2-e per tonne material mined)46 0.0145 0.0151 4% GHG Emissions Intensity FY20 - FY23 0.0155 0.0150 0.0145 0.0140 0.0135 0.0130 FY20 0.0151 FY21 0.015347 FY22 0.0140 FY23 0.014548 Evolution Aggregate GHG Emissions intensity: Scope 1 + Scope 2 (market based) GHG emissions per tonne material mined A 4% reduction in emissions intensity (per tonne of material mined) was achieved in FY23 compared to the FY20 baseline (0.0151). The performance of 0.0145 CO2-e/ t material mined was within the target range. The decrease in emissions intensity per tonne of material mined is predominantly attributed to the Cowal PPA, efficiency improvements at Cowal (17%), and Red Lake (14%). These efficiency improvements can be attributed to a lower demand for diesel and electricity per tonne of material mined. We are exploring opportunities to improve Ernest Henry’s emissions reduction as part of the mine expansion feasibility study commencing in FY24. Scope 3 Emissions Our internal Scope 3 emissions reporting continues to be underpinned by principles of transparency in methodology and selection of material categories, setting a good foundation and structure for reporting, and continuous improvement in disclosures. In FY23, to further our progress around Scope 3 emissions associated with the value chain, we have: • Internally calculated Scope 3 emissions across five reporting categories aligned with the GHG Protocol (Purchase Goods and Services, Capital Goods, Fuel and Energy Related Activities, Business Travel, Processing of Sold Products) • Validated data through a third party • Monitored our year-on-year historical Scope 3 trends Evolution recognises and monitors the emerging disclosures and reporting requirements that promote the mandatory disclosure of Scope 3 emissions. Currently, Evolution discloses Scope 3 emissions to select ESG agencies. Scope 3 emissions will continue to be tracked internally and audited externally and will continue to be evaluated for disclosure future reports. 46 FY20 performance calculated utilising location-based methodology. FY23 performance and beyond calculated utilising market-based methodology 47 Adjusted to reflect current asset portfolio 48 Calculated with market-based method from FY23 onwards 165 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 166 CASE STUDY: Electric Vehicles: safe, efficient and electric drills and partnership with Epiroc Evolution is pursuing efficiencies and innovation in our fleet fuel economy across the business. For example, Cowal’s partnership with Epiroc for electric diamond drilling, Red Lake’s ongoing use of five battery- electric heavy vehicles underground, and our ongoing collaboration in the Electric Mine Consortium to support industry-wide innovation and learning. These partnerships are revealing benefits in energy and emissions, safety and improved productivity. Diamond drilling generates core, which is logged and sampled, and the assays used by geologists to estimate resources. The Cowal geology team engaged Barminco to utilise two of their Epiroc built Diamec Smart 6m drill rigs for underground diamond drilling. These drill rigs are fully mobile, articulated and, where possible, remotely operated. Being articulated increases drilling time and productivity (20% improvement on penetration rate against older style rigs) and enables faster delivery of data to inform geology and mine plans. These rigs are state-of-the- art and reduce our people’s exposure to hazards associated with manual handling. These rigs deployed at the Cowal underground will enable learnings to be shared across our other operations to inform drill and asset tenders. Epiroc’s Diamec Smart 6m drill rigs Ernest Henry sunrise by Colin McBreen 167 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 168 Effluents and Waste (material topic) Management Approach We ensure that waste, product materials, and other effluents generated from mining and processing activities are handled, stored and disposed of responsibly. Operational waste streams are generally classified as mineral and non-mineral. Each operation manages non-mineral and mineral waste in accordance with a comprehensive site-specific Waste Management Plan developed as early as reasonably practicable in the mine lifecycle and updated regularly. These plans ensure responsible non-mineral and mineral waste management by specifying how the different types of waste produced by activities are to be managed, including identification of opportunities for waste minimisation, recycling and reuse. Non-hazardous waste streams such as cardboard, glass and plastic are recycled, where feasible, and general waste is diverted to landfill. Mineral Waste The most substantial waste stream generated is 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 (i.e., waste rock and tailings). All mineral wastes are handled in accordance with our Sustainability Performance Standards and licence conditions. Each operation is unique in terms of potential for acid mine drainage (AMD), neutral mine drainage (NMD) and saline drainage (SD) generation through mineral waste movement and placement. Where management of potentially problematic material is uncertain or known to occur, the operation maintains plans and implements progressive rehabilitation activities to ensure the receiving environment is not impacted during the operational and closure phases. Management of mineral waste is achieved by application of an integrated planning approach. All mineral waste is geochemically categorised prior to mining, haulage, treatment, placement and encapsulation (if required) prior to rehabilitation. The integrated planning approach aims to assure the protection of environmental values where we operate, and application of appropriate technical and economic risk management. Performance In FY23, our operations excavated 16,530,148 million tonnes of waste rock to extract 26,294,608 million tonnes of ore. This represents an average 0.63 strip ratio of waste to ore, a decrease from the FY22 1.16 strip ratio. Waste to Ore Strip Ratio FY20 - FY23 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Total Strip ratio FY20 Strip ratio FY21 Strip ratio FY22 Strip ratio FY23 2.77 3.20 1.16 0.63 Performance Material risk management: All sites have a Critical Control Program in place and regularly conduct and report on verification activities and outcomes. Monitoring and Surveillance: All Tailings Facilities are operated in accordance with a Tailings Operations Manual and employ monitoring and surveillance systems to monitor tailings storage facility performance over time. Where applicable, real-time monitoring is utilised, and satellite monitoring is also included for all facilities. This information is integrated into a management system that outlines triggers and response requirements by all sites for active facilities. Site-based Responsible Person: Each site has an identified Responsible Person to ensure ownership and appropriate management of each tailings storage 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 of recommendations. Independent Review: Our Tailings Storage Facility Sustainability Performance Standard requires operations to review all designs and conduct dam safety reviews at regular intervals. Tailings Governance: LOD2 tailings assurance is undertaken quarterly with each operation conducting a quarterly performance review focusing on impoundment stability, integrity, risk review and planning coordination. Evolution provides Group-level oversight as to whether the tailings facility design and performance meet accepted standards/codes of practice. Performance reports and operational updates are provided to the Tailings Storage Facilities Governance Committee and the Leadership Team with oversight by the Risk and Sustainability Committee. The strip ratio decreased generally due to a reduction in the proportion of open cut mining (generally higher strip ratio) compared to underground mining (generally lower strip ratio) methods across the portfolio. Cowal underground commenced mining in early 2023, along with the operating open cut mine. In Mungari the majority of the mining in FY23 was underground. Non-Mineral Waste Evolution generates non-mineral waste through a range of activities throughout our mine lifecycle, including exploration, mining, maintenance, and processing. During FY23, approximately 23,658 tonnes of non-mineral waste was generated across our operations, of which 75% was classified as non-hazardous waste. In FY23, 32% of the total non-mineral waste was recycled across our operations. All waste generated was recycled or disposed of following applicable waste regulations and each operation’s Waste Management Plan. Tailings Management (material topic) Management Approach We are committed to responsible tailings management aligned with global best practice for safety, the environment and communities during all phases of the facility lifecycle. Our tailings management approach is based on compliance to our Tailings Storage Facility Sustainability Performance Standard that is aligned with Global Industry Standard on Tailings Management (GISTM)49, and relevant guidelines to ensure structural stability and support risk mitigating actions. A full list of tailings facilities is provided in the Church of England Tailings Dam Management Disclosure50. The disclosure includes current volume, date and findings of most recent risk assessments and consequence classifications. The tailings facilities are planned, designed, constructed and operated in accordance with our Tailings Storage Facility Sustainability Performance Standard informed by leading industry practices and guidelines. Our tailings management approach integrates climate change, stakeholder engagement, emergency management, local communities, receiving environment, dam safety and post mine land use. Risk Management, Review and Assurance Evolution’s approach to tailings management is overseen by the Tailings Storage Facilities Governance Committee. Tailings storage facility risk assurance is achieved through rigorous design, construction and operations management, routine inspections and monitoring and independent review and audit processes. Risk reduction is a key priority, and we are working toward this through continual review and improvement of design and operation practices to further reduce risk. In alignment with our general approach to waste minimisation, recycling and reuse, tailings are reused to stabilise several of our underground operations. 49 Global Industry Standard on Tailings Management 50 Church of England Tailings Dam Management Disclosure 169 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 170 6 active tailings facilities globally 18.7Mt ore mined from open pit 7.6Mt ore mined from underground 20.7Mt ore processed 651,155 gold ounces recovered 20.3Mt discharged to tailings 30% tailings reuse at Red Lake for paste fill – 187kt 12% tailings reuse at Mungari for paste fill – 228kt Tailings risk was controlled and further reduced in FY23 by: Review and update to the Tailings Storage Facility Sustainability Performance Standard to align with GISTM Review of Internal tailings management guidelines, associated communications and awareness Continued internal tailings governance and oversight of operational performance through quarterly Tailings Storage Facilities Governance Committee meetings at site and Group and oversight by the Risk and Sustainability Committee Continued improvement in Compliance to the Performance Standard as evident in the quarterly compliance reviews Ongoing remediation of existing structures at Red Lake, Mt Rawdon and Ernest Henry to improve post-seismic stability factor of safety Completion of the initial stage of the IWL construction at Cowal, significantly reducing the likelihood and impact of a dam failure Construction of Cell 3 and 4 at Mungari, modern tailings facilities designed in accordance with ANCOLD 201951 51 ANCOLD Guidelines on Tailings Dams 2012, Rev 1 dated July 2019 Environmental Compliance (material topic) Air Quality Management Approach Management Approach At the core of our approach to environmental compliance is the effective management of mining-related activities to protect cultural and environmental values, including the rights and interests of local communities. All our operations are subject to environmental regulation in the various jurisdictions in which we operate through permitting, approvals and regulatory compliance requirements. Permit and licence provisions provide stringent requirements to support the health and safety of our communities and the environment. All operations are required to maintain regular compliance monitoring and reporting to demonstrate conformity with current legal and other obligations, supported by assurance activity. A uniform internal reporting system is implemented across all operations. All environmental events, including potential non-conformance to any licence provisions, are assessed according to their actual or potential environmental and/or regulatory consequence. 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, on a scale from Very Minor to Extreme in alignment with the Evolution RAM. Performance All operations retained a strong focus on environmental performance throughout FY23 with no material environmental incidents reported, and no significant (>US$10,000) fines paid related to environmental compliance. One moderate risk event occurred with an enforcement action issued to Mt Rawdon for a non- compliance associated with extended, unseasonal rainfall in late 2022. Other minor or very minor risk events occurring during FY23 were reported to the relevant government authority, as required, and agreed action taken where appropriate. We are committed to monitoring and mitigating the potential impacts of our operations to ensure that air emission controls are effective, and that operations are not having an adverse effect on human health or the environment due to dust and other airborne particulates. Management and minimisation of air emissions is required to protect sensitive receptors, including both people and the environment, in the vicinity of mining operations. Air quality is managed according to jurisdictional regulations and licences and Evolution’s Sustainability Performance Standards to ensure that air emissions remain within the specified emissions limits. Evolution also manages and assures air quality at our operations in response to material incidents and emerging risks within our industry. Air quality monitoring equipment is used to monitor and validate the performance and efficiency of our operations’ air quality management systems. Air quality monitoring analysis is carried out by third-party accredited laboratories and is externally reported, as required by environmental licences. We continually seek ways to improve air quality management at all operations. Performance In FY23, 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 ESG Performance Data document for performance around air emissions related to GHG emissions. 171 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 172 Water Reuse FY18 - FY2354 25,000 20,000 15,000 10,000 8,680 9,195 8,545 7,018 5,000 11,088 9,475 12,752 11,802 20,016 18,777 14,663 14,695 FY18 FY19 FY20 FY21 FY22 FY23 Total water used (ML) Water recycled/reused (ML) Detailed information on our water withdrawal, discharge and consumption by source and region can be found in the ESG Performance Data. In FY23, the total water withdrawn intensity per tonne of ore processed decreased by 1% from FY22. The decrease is attributed to the decrease in overall freshwater intake at Cowal, Mt Rawdon and Red Lake operations. Our future efforts in water management will include continued focus on water security, including the 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. 54 Actuals reported for assets owned as at 30 June 2023 Water Management (material topic) Management Approach Access to safe, clean water, and sanitation is a basic human right and supports healthy ecosystems and livelihoods. We acknowledge water as a shared resource, and recognise its globally recognised social, cultural, environmental, ecological and economic value that drives improved water management stewardship. Our strategic water management approach is centred on efficiently managing water, water-related risks, and climate-related risks to secure availability and sustainability of clean water for all, such that human health and the environment are protected, and operations are sustainable in a variable water security environment. The CEO is accountable for our water and environment with Management responsible for the performance, with oversight of the Board through the Risk and Sustainability Committee. Our water strategy and objectives are informed by robust engagement with stakeholders such as investors, policymakers, non-government organisations and communities. Through stakeholder engagement, we understand, assess, track and monitor water regulatory changes at the local level, including incoming regulatory changes and different scenarios and impacts. Our strategy focusses on optimising water consumption, reducing reliance on fresh water, maximising reuse of mine affected water (MAW) to reduce competition in external raw water demand with agricultural and other industries and communities, and minimising the potential for operational impacts on water quality. We aim to minimise operational water consumption, effectively and efficiently use water in our processes, and ensure that any effluents are treated to meet required water quality standards. 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 In FY23, our Queensland operations experienced significant rainfall which impacted the Ernest Henry and Mt Rawdon operations. Our Critical Risk Management processes are implemented across the assets and water impacts were managed with no harm identified in the receiving environment. Total water withdrawn decreased 6.2% in FY23 and water security improved by a decrease in freshwater demand intensity of 17% in FY23 (0.19kL/tonne ore milled) – a significant improvement of 44% compared to FY20 baseline. Total water reuse increased by 7% between FY22 and FY23. Notable increases in water reuse were recorded at Cowal (33%) and Mt Rawdon (100%), demonstrating the increased focus and planning associated with water reuse at all operations. No Evolution operations are in High to Extremely High baseline water stress areas. Evolution’s determination of water stress is adapted from definitions set in the ICMM Mining with Principles Water Reporting52, CEO Water Mandate, WRI Aqueduct Global Water Tool and Water Footprint Network53. 52 The ICMM definition is “The ability, or lack thereof, to meet the human and ecological demand for freshwater. Water stress comprises three primary components: availability, quality and accessibility. Water stress is based on subjective elements and is assessed differently depending on societal values, such as the suitability of water for drinking or the requirements to be afforded to ecosystems.” (Source: Adapted from CEO Water Mandate (2014), Corporate Water Disclosure Guidelines Toward a Common Approach to Reporting Water Issues.) 53 Note that water stress remains subjective and the inputs into water stress indicators vary between tools and networks. This subjectivity informs our changed references and definitions in FY23 173 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 174 Hazardous Chemicals Management (material topic) Management Approach 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, ecosystems, and environmental values. 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. Each operation manages the hazardous chemicals lifecycle in accordance with the minimum standards outlined by relevant jurisdictional requirements and Evolution’s Sustainability Performance Standards. All operations have specific management plans and guidelines governing collection, separation, storage, reuse, and disposal of waste, including hazardous chemical waste, reflecting local legislation and site- specific commitments and obligations in environmental impact assessments. 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. Waste generation and disposal, including the activities of waste disposal contractors, are monitored at all operations according to regulatory requirements and internal procedures. Regular assurance activities are undertaken to ensure operations meet Sustainability Performance Standards for the handling, storage and disposal of hazardous chemicals and to identify best practice learnings are shared across the business. Performance • Cyanide Code compliance at Red Lake and Cowal • 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) Management Approach We have an important role in biodiversity stewardship – contributing to the proper risk assessment of biodiversity conditions, minimising habitat degradation, and planning for habitat restoration during the mine lifecycle. 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 work with local conservation groups and seek to find collaboration opportunities that lead to positive environmental outcomes for the local communities. We incorporate stakeholder concerns into our environmental stewardship approach. Our biodiversity strategy is linked to the stage of development of projects. For example, at all operations in production, biodiversity risks are actively mitigated through ongoing risk assessment, baseline and continuous field mapping of fauna and flora, and land disturbance permit process. Sensitive flora and fauna are only impacted where the internal and external risk management and permitting process have been met and no other alternative is available. In FY23, we completed a gap analysis against TNFD in its beta framework to improve Evolution’s awareness and capability in emerging disclosure requirements regarding nature. The analysis positioned Evolution as a leader in water management, with opportunities for further development in biodiversity protection, offsets and progressive rehabilitation. Relevant recommendations will be implemented, communicated across the business, and utilised to inform future disclosures in relation to regulated and non-regulated biodiversity, impacts and dependencies. We will take opportunities to assess alignment once the final TNFD Framework is released. We strive to apply the mitigation hierarchy from Avoidance to Transformation with the ambition of no net loss in protecting biodiversity and ecosystems. We design our exploration or mining operations to avoid or minimise impact to protected areas and commit to the protection of World Heritage Sites. We are committed to minimising impacts to forests and our environmental footprint through risk-based and responsible biodiversity management, and to enhancing biodiversity via reforestation nearby our operations via our Environmental Enhancement projects and investments. In FY23, Red Lake participated in the Federal Government’s 50 Million Tree Planting Program and planted 25,000 trees in a single day, in partnership with a local forest management company and schools, to revegetate an old tailings area. These revegetation efforts complement previous work in 2011, where Red Lake constructed a 5.5-hectare wetland treatment area within the tailing storage facility to aid in natural degradation of ammonia in the contact water. In early 2022, Red Lake began a wetland expansion project to increase the wetland size to 14 hectares, which has improved effluent water quality discharged from the operation. Biodiversity Management Plans which meet the requirements of the Biodiversity Sustainability Performance Standard are in place at all operations, where required, and are regularly reviewed. All activities are monitored in accordance with relevant jurisdictional 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 operation in alignment with local regulations the Sustainability Performance Standards. 175 Annual Report | www.evolutionmining.com.au Performance • No impact to any World Heritage Sites • Disturbance permitting process embedded at all operations • Baseline flora and fauna studies undertaken prior to any significant disturbance • Annual review of biodiversity management plans • All land under our mining leases is 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 not-for-profit • Monitoring of biodiversity offset and conservation organisations including Lake Cowal Foundation sites’ status is maintained or enhanced • At the beginning of FY23 Evolution was managing 7,038 hectares of land (owned, leased or occupied) • Approximately 12% worth of community investment contributed to improve or enhance environmental outcomes • At the close of FY23, Evolution was managing • The status of disturbed and rehabilitated land at the 7,056 hectares of disturbed land under mining lease operations can be found in the ESG Performance Data Part of the 25,000 trees planted by Red Lake through the Federal Government’s 50 Million Tree Planting Program Performance • Enhanced stakeholder engagement integrated into the planning phase • 7,056 hectares of land disturbed by mining activity • 1,109 hectares of land rehabilitated • Closure Plans in place for all operational sites • Annual Mine Closure Assurance Audit and Mine Closure Insurance Audit (LOD3) • Rehabilitation sites revegetation success rates monitored closely • Ongoing wetlands trial at Mt Rawdon to support rehabilitation objectives and ecosystem protection • Ongoing extensive reclamation activities at Red Lake in the treatment of legacy Arsenic Trioxide materials from underground workings • Significant milestones being completed for the Mt Rawdon Pumped Hydro Project, including ‘Coordinated Project’ Status, hosting Community Information Evenings with approximately 70 attendees, and running tours of the operation with roughly 150 participants. Read a detailed case study here, and access more information about the project here: https://mtrawdonhydro.com.au/ • ~$384 million55 government-registered rehabilitation liability – 30 June 2023 (refer to table below) Mine Closure: Rehabilitation (material topic) Management Approach The objective of our mine closure plans is to ensure that the environment where mining activities take place is restored to a long-term sustainable state, which may be a similar condition to what existed before mining took place, or a condition suitable for another use, in line with relevant stakeholder engagement outcomes. We have obligations to make operational and financial provisions to ensure the mine closure plans, rehabilitation and remediation activities are completed with consideration for internal and external stakeholder engagement. Closure planning is undertaken for all operations, and financial provisions updated as required. We plan for closure from the earliest stages in the life of mines, including consideration at feasibility stage prior to mine development, ensuring appropriate due diligence, impact assessments, and allocation of adequate resources for closure activities to be properly implemented, managed and monitored throughout the active-closure and post-closure phases. The Rehabilitation and Mine Closure Sustainability Performance Standard requires the use of a responsible approach to land management through the operational phase and into closure, including progressive rehabilitation during the life of mine. Closure planning requires site-specific closure objectives, metrics and targets, and completion criteria for each operation. Closure plans are required 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 as required and third-party auditors annually. Operation Cowal Ernest Henry Mungari Mt Rawdon Red Lake Type of government surety Total government approved financial assurance Surety bond Levy Levy Levy Letter of credit $64,902,072 $144,428,511 $55,920,623 $47,294,859 C$63,386,186 Overview of Rehabilitation Liabilities as of FY23 55 Red Lake’s rehabilitation liability converted from Canadian to Australian dollars using exchange rate as at 30 June 2023 General Manager Joe Mammen explaining the proposed map of the Pumped Hydro Project to visitors next to solar powered monitoring equipment while on tour of the Mt Rawdon Pit 177 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 178 Glossary “AA” rating 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 AA1000 Series of Standards AccountAbility’s AA1000 Series of Standards are principles-based frameworks used to demonstrate leadership and performance in accountability, responsibility, and sustainability ALO AMD 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 ANCOLD Australian National Committee on Large Dams B BARS BBP BEV CERT CMT CN CoP Billion. The number equivalent to the product of a thousand and a million Basic Aviation Risk Standard. An International Aviation Safety Program which uses BARS Standards to review aircraft operators supporting companies in their risk oversight of contracted aviation activities 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 Corporate Emissions Reduction Transparency Report 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 Community of Practice CO2-e Carbon dioxide equivalent. A standard unit for measuring carbon footprints 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 Cardiopulmonary resuscitation 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 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 FairCall (KPMG) Whistleblower reporting service provided by KPMG FCEV FNP FPIC FSB Fuel cell electric vehicles First Nation Partners Free, Prior and Informed Consent. A principle protected by international human rights standards originating from and reinforcing the right to self-determination Financial Stability Board. An international body that monitors and makes recommendations about the global financial system FY20 / FY21 FY meaning financial year. FY21 would then be the period from July 2020 to end of June 2021 COVID-19 CPR CSA CSIRO GHG GRI IAP2 IPCC ICMM IMT ISO 31000 ISS ESG ITRB IWL JSA JHA JT kL kt LCF LCCC 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 Association for Public Participation Intergovernmental Panel on Climate Change International Council on Mining and Metals. An international organisation whose purpose bringing together a safe, fair and sustainable mining and metals industry Incident Management Team International Organisation for Standardisation. ISO 31000 Risk Management Guidelines provide principles, a framework and a process for managing risk Institutional Shareholder Services (ISS). ISS ESG is a business that provides corporate and company ESG research and ratings Internal Tailings Review Board Integrated waste landform. A simple definition is a tailings storage facility that is located inside waste rock storage Job Safety Analysis Job Hazard Analysis 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 Kilotonne. Measurement equivalent to 1,000 tonnes. Lake Cowal Foundation. A not-for-profit Environmental Trust established in June 2000 to protect and enhance Lake Cowal, a nationally significant wetland located 45 km north of West Wyalong New South Wales. Lake Cowal Conservation Centre. A community educational facility where school students, land managers and community members can learn about and experience a variety of issues associated with natural resource management LGC LOD LOM LoKal M MAW Large-Scale Generation Certificates Line of Defence. Refers to the levels of assurance wherein LOD1 involves the Internal Audit Program, LOD2 involves the Management System & Standards Audit, and LOD3 involves external assurance Life of Mine Name given to a local community initiative in Kalgoorlie Million. Number equivalent to the product of a thousand and a thousand Mine affected water MillROC Milling Remote Optimisation Consulting & Coaching. Software produced by Orway IQ which is a cloud-based reporting of all plant data related to circuit performance and optimisation ML Megalitre. Equal to one million litres MSA MPCDB MSCI NGER NGFS NGOs 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 Mt Perry Community Development Board. exists to promote and support all forms of community and economic development within the town of Mt Perry and the surrounding areas 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 Network for Greening the Financial System Non-governmental organisation. A non-profit, citizen-based group that functions independently of government Corporate Sustainability Assessment. A scoring methodology that companies and investors can review on a company’s ESG LGBTQ2S+ community Loosely defined grouping of people who Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, Two-Spirit and other minorities 179 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 180 NIST NIER NMD NPI 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 organisations 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 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 OSHA Occupational Safety and Health Administration PAF PPA PPC PPE RAM RCP 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 Power Purchase Agreement Personal Protective Clothing Personal protective equipment. Anything used or worn on our employees to minimise risk to their health and safety Risk Assessment Matrix Representative Concentration Pathways S&P Global Company that provides data, research, news and analytics to customers including institutional investors and corporations SAM SAQ Scope 1 Scope 2 SD SRMs SSP STIP t SA TARP TCFD TNFD TRIF TSF 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 Self-Assessment Questionnaire 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 Supplier Relationship Meetings Shared Socioeconomic Pathway 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 Task Force on Nature-related Financial Disclosures. An organisation formally launched in June 2021 with the goal of developing a set of voluntary nature-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 UN SDGs 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 WORK 180 A recruitment site showing Australian employers who support women in the workplace. Criteria include flexible work, pay equity and parental leave 181 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 182 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 185 185-222 223 224 225 Consolidated statement of changes in equity 226 Consolidated statement of cash flows 227 Notes to the consolidated financial statements Directors’ declaration Independent auditor’s report Shareholder information Corporate information 228-270 271 272-277 278-279 280 183 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 184 Evolution Mining Limited Directors' Report 30 June 2023 APPENDIX 4E EVOLUTION MINING LIMITED ACN 084 669 036 AND CONTROLLED ENTITIES ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 June 2023 Results for Announcement to the Market Key Information 30 June 2023 30 June 2022 Up / (down) % Increase/ $'000 $'000 $'000 (decrease) Revenues from contracts with customers 2,226,931 2,064,928 162,003 Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) 844,513 898,814 (54,301) Statutory profit before income tax 233,802 417,748 (183,946) Profit from ordinary activities after income tax attributable to the members 163,508 323,324 (159,816) 8 % (6) % (44) % (49) % Dividend Information Final dividend for the year ended 30 June 2023 Dividend to be paid on 6 October 2023 Interim dividend for the year ended 30 June 2023 Dividend fully paid on 2 June 2023 Final dividend for the year ended 30 June 2022 Dividend fully paid on 30 September 2022 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 2.0 2.0 2.0 2.0 3.0 3.0 30 June 2023 $ 30 June 2022 $ 2.11 1.89 30 June 2023 Cents 8.91 8.89 30 June 2022 Cents 17.74 17.70 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. Evolution Mining Limited Directors' Report 30 June 2023 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 2023. Directors The Directors of the Group during the year ended 30 June 2023 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 Executive Chair Lawrence (Lawrie) Conway (i) Chief Executive Officer and Managing Director Jason Attew Lead Independent Director Thomas (Tommy) McKeith Non-Executive Director James (Jim) Askew Andrea Hall Victoria (Vicky) Binns Peter Smith Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director (i) Appointed to Chief Executive Officer and Managing Director effective 1 January 2023. Ceased to be Finance Director and Chief Financial Officer effective 1 January 2023. 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 2023 include: Portfolio • During FY23, Evolution continued to execute against its strategy to create a business that prospers through the cycle by: ◦ Creating sustainable value for all stakeholders in an environmentally and socially responsible way ◦ Driving a high performing culture with values and reputation as non-negotiables Being willing to take appropriate geological, operational and financial risks ◦ ◦ Building a portfolio of up to 8 assets in Tier 1 jurisdictions, generating superior returns ◦ Having financial discipline centred around margin and appropriate capital returns • Operational performance was materially impacted by heavy rainfall in Queensland at the Ernest Henry and Mount Rawdon operations. We managed the impact of the weather event at Ernest Henry, resulting in approximately $160 million of lost revenue and $24 million of incremental recovery cost, to succesfully return to full production in June 2023. The Cowal underground mine is ramping up production and expected to achieve commercial production early in the second half of FY24 while the open pit operation performed well. Mungari continued to be a steady operation with predictable performance during the year. At Red Lake, while performance was below our expectations, we made good progress with transforming the organisational culture and work practises and also continued investing in the Upper Campbell mine to set the operation up for strong delivery in FY24. • Studies for profitable organic growth at our operations advanced significantly, and during FY23 a final investment decision was made for the Mungari Future Growth Project, extending the mine life by 15 years. The Mine Extension Pre-feasibility Study at Ernest Henry was completed, identifying a mine life up to ~2040 and the Feasibility Study is now underway to establish how the much larger resource than originally acquired, can be mined in the most value accretive manner. The Cowal Open Pit Continuation Feasibility Study is progressing to schedule and the Mt Rawdon Pumped Hydro (MRPH) Project Feasibility Study for a pumped hydro scheme at Mt Rawdon is making good progress. • Debt was restructured to align maturities better with a longer mine life and provide financial flexibility in the near-term. The debt restructuring will be completed in August 2023. • Evolution expects gold production to increase to 770,000 ounces (±5%) in FY24 at an all-in sustaining cost (AISC) of $1,370/oz (±5%). This is an 18.3% increase in production and a 5.5% reduction in AISC to maintain our competitive cost position compared to industry peers. Strong cash generation and reduction in debt is expected in FY24 and beyond. 1 185 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 186 Evolution Mining Limited Directors' Report 30 June 2023 Key highlights for the year (continued) Operations (continued) • Mungari has reliably delivered over the course of FY23, exceeding plan consistently on a quarterly basis. The Mungari Future Growth Feasibility study was completed and a final investment decision taken to invest $250 million to expand the plant's processing capacity from 2 million tonnes to 4.2 million tonnes per year by March 2026 quarter. • • At Red Lake significant progress was made on transforming the operation and setting it up for delivery in FY24. In addition to operational improvements in both mining and processing and the construction of the Campbell Young Dickenson (CYD) decline, the completion of the Red Lake workforce review, aligned to our Core value of “Excellence and Accountability” supports the delivery of the FY24 production guidance. This is enhanced by our equipment improvement strategy that works in conjunction with the workforce realignment that will improve productivity and efficiency in line with industry averages. Above average rainfall at Mt Rawdon combined with geotechnical issues impacted production during the year, with total annual production achieved of 53,685 ounces. The MRPH Project Feasibility Study is well advanced and continues to demonstrate the potential to make a significant contribution towards Queensland's renewable energy ambitions. Discussions with the Queensland Government, other potential interested off-take partners and infrastructure investors are ongoing with numerous parties expressing interest in participating in the project. Operating and Financial Review Evolution is a leading, low-cost Australian gold mining company. As at 30 June 2023, the Group has 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. 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 in Tier 1 jurisdictions generating superior returns with an average mine life reserve of at least ten years. To achieve our mine life objective, 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 Group remains open to all quality gold, silver and gold-copper value accretive investments. Evolution Mining Limited Directors' Report 30 June 2023 Key highlights for the year (continued) 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, risk, 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 against the FY20 baseline. In FY23, we achieved a reduction in our net use of energy and continue to see year-on-year reduction in our absolute emissions. This reduction is currently estimated to be ~9%1 for our operational sites. We also demonstrated our commitment to renewables as our Cowal Operation signed a Power Purchase Agreement with a major energy retailer to supply approximately 30% (with option to increase up to 70%) of Cowal’s electricity, sourced from a solar farm in NSW. 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. We continue to enhance our external stakeholder engagement. We have also strengthened internal stakeholder engagement and system development to improve outcomes in local procurement for our local communities and First Nation Partners. 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 across all sustainability targets. The Total Recordable Frequency (TRIF) reduced by 19% against FY22 to 8.6 as at June 2023. This is supported with other leading metrics that include all material and critical actions beings closed. Financials • • • • • • • • The Group achieved a statutory net profit after tax of $163.5 million for the year (30 June 2022: $323.3 million). Basic earnings per share was 8.91 cents per share (30 June 2022: 17.74 cents). Fully franked dividends of $91.7 million (30 June 2022: $146.6 million) were paid during the year. The Directors declared a final fully franked dividend of 2.0 cents per share, which is the 21st consecutive dividend (30 June 2022: 3.0 cents). The aggregate amount of the final dividend to be paid on 6 October 2023 is estimated at $36.7 million. The Group's key results are as follows: ◦ ◦ Total gold production of 651,155oz at an AISC of $1,450/oz. Operating mine and net mine cash flow of $944.1 million and $35.7 million respectively. On 5 June 2023, it was announced that the Group had successfully restructured its debt maturity profile to align it with mine life extensions and increase balance sheet flexibility. This restructure involved a new US$200 million (~A$300 million) US Private Placement (USPP) and the replacement of the existing A$590 million term loan facilities with a reduced A$300 million four year term loan facility. On 1 June 2023, Evolution priced the US$200 million USPP with proceeds to be received in August 2023. During July 2023, the Group received confirmation that its investment grade credit rating is unchanged from last year. On 8 March 2023, Ernest Henry experienced a significant weather event, resulting in the evacuation of the mine and suspension of production activities. Following significant and successful recovery efforts, Ernest Henry returned to full production by the end of June. The estimated impact on revenue from the reduced sales of all payable metals in concentrate is approximately $160 million. Additional direct costs as a result of the recovery effort of $24.0 million were incurred during the year. To protect the balance sheet against downside price risk while executing the Mungari Future Growth Project, 120,000 ounces were hedged at $3,185/oz for delivery from the second half of FY24 to FY26. This is the only metal price hedging that Evolution has in place and represents approximately 5% of Group production over the period. Operations • • Cowal achieved significant milestones during the year including record annual production of 276,314 ounces and successfully commencing production from the new underground mine. Following a period of intense capital investment, a 15% increase to production is guided in FY24 with the site transitioning back to a period of significant cash flow generation. The Feasibility Study for the Open Pit Continuation project is progressing to schedule. Ernest Henry's mine life was extended to 2040 following completion of the Mine Extension Pre-Feasibility Study (PFS) in June 2023. Highlights include a doubling of the Ore Reserve estimate as at 30 June 2023 subsequent to the reported 31 December 2022 Ore Reserve with contained copper increasing 103% and contained gold increasing 124%. Evolution approved a $15 million Feasibility Study and a $7.5 million drilling program to further study the extension. The Ernest Henry Mineral Resource estimate was also updated as at 30 June 2023 subsequent to the 31 December 2022 Mineral Resource estimate resulting in an increase of 7% in tonnes, 3% in contained gold and 5% in contained copper. 1 This is subject to external validation for FY23 delivered in September 2023 2 3 187 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 188 Evolution Mining Limited Directors' Report 30 June 2023 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) Navarre Contingent Consideration Write Off Directly Attributable Ernest Henry & Mt Rawdon Non-Operational Costs Underlying profit before income tax Income tax expense Tax benefit on sale of Mt Carlton Tax effect of adjustments Underlying profit after income tax Cash Flow 30 June 2023 $000 233,802 30 June 2022 $000 417,748 — — 5,153 13,797 40,331 293,083 (70,294) — (17,784) 205,005 (9,958) (154,206) 130,117 — — 383,701 (94,424) (4,902) (9,652) 274,723 Operating mine cash flow increased by 6% totalling $944.1 million (30 June 2022: $893.3 million). Total capital investment was $798.0 million (30 June 2022: $606.4 million) which included $198.0 million (30 June 2022: $147.1 million) of sustaining capital investment and $600.0 million (30 June 2022: $459.3 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 $746.0 million (30 June 2022: $746.2 million). Evolution Mining Limited Directors' Report 30 June 2023 Key highlights for the year (continued) Profit Overview The Group achieved a statutory net profit after tax of $163.5 million for the year ended 30 June 2023 (30 June 2022: $323.3 million). The underlying net profit after tax was $205.0 million for the year (30 June 2022: $274.7 million). The main drivers to the lower in profit was the impact of outages caused by weather events on both revenue and recovery costs, higher operating costs due to increased activities and higher input costs, partially offset by higher gold and copper sold combined with a higher gold price and flat copper price. The following graph reflects the movements in the Group's profit after tax for the year ended 30 June 2023 compared to the year ended 30 June 2022. Ernest Henry experienced a severe weather event in early March, partially flooding the underground mine and requiring evacuation and significant recovery efforts in the months following. The impact on revenue from the lost production amounts to $150.3 million compared to FY22. The first full year of 100% economic ownership of Ernest Henry partially offsets this with a $64.4 million profit contribution. Gold revenue benefited from higher achieved gold price ($2,592/oz vs $2,425/oz) which included 140,000 hedged ounces sold at $2,078/oz. The gold price realised on spot sales was $2,738/oz vs $2,532/oz. By-product revenue, adjusted for the impact of the weather event and a full year of ownership, decreased year-on-year in line with lower copper production. Operating costs increased by $87.1 million driven by inflationary cost impacts, specifically in labour which comprise almost half of our cost base, diesel, electricity costs related to new contracts which took effect from 1 January 2023 and mechanical spares. Input prices increased operating expenses by approximately 5%, or $71.0 million. Additional costs were incurred at Ernest Henry and Mt Rawdon directly related to recovery efforts following the weather events, totalling $24.0 million and $16.3 million respectively. These increases were partially offset by increased capital development activity across the group. Depreciation and Amortisation increased by $38.2 million. Mt Rawdon depreciation increased as the asset approaches the end of its life as a gold mine, whilst Cowal increased as a result of higher asset carrying values associated with the Integrated Waste Landform (IWL) tailings facility and mine development assets. Mungari increased as a result of the finalisation of purchase price allocations. Finance costs increased by $41.5 million due to a full year of higher debt associated with previous acquisitions and the capital investment in growth projects. Other expenses in the year include the $13.8 million write down of the contingent consideration attributable to Navarre Minerals Ltd, excluded from underlying profit and $25.3 million higher foreign exchange losses, offset by $1.1 million reduction in Group exploration expenses. The tax expense for the year ended 30 June 2023 was $70.3 million, $24.1 million lower than the prior year driven by reduced profit. The effective tax rate in the current year is 30% compared to 22.6% in FY22 which resulted from the tax effect of the prior year acquisitions and divestment. 4 5 189 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 190 Evolution Mining Limited Directors' Report 30 June 2023 Key highlights for the year (continued) Key Results The consolidated operating and financial results for the current and prior year are summarised below. All dollar figures refer to Australian thousand dollars ($'000) unless otherwise stated. Key Business Metrics 30 June 2023 30 June 2022 % 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) Cash (C1) 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) 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* 42,948 7,377 18,610 14,709 20,454 1.20 651,155 555,620 47,348 937 1,450 2,420 2,592 32 12,500 2,226,931 1,277,655 (44,187) 323,964 844,513 38% 163,508 205,005 944,050 (198,049) 746,001 (599,963) 35,720 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 12 % (13) % 34 % (42) % (4) % 8 % 2 % 2 % 22 % (8) % (15) % (18) % 7 % 3 % — % 8 % (15) % (24) % (25) % (6) % (14) % (49) % (25) % 6 % (35) % — % (31) % (87) % *Net mine cash flow FY23 figure includes direct costs incurred on the water management programme at Mt Rawdon ($16.4 million), direct and indirect costs associated with the Ernest Henry flooding event ($71.7 million) and capitalised pre-production costs on the underground at Cowal ($37.8 million) (30 June 2022: restructuring costs of $3.8 million) (i) (ii) (iii) EBITDA, EBIT, Unit cash operating cost, All-in Sustaining Cost (AISC), and All-in Cost (AIC) are non-IFRS financial information and are not subject to audit. EBITDA is reconciled to statutory profit in note 1(c) to the financial statements Percentage change represents positive/(negative) impact on the business Ernest Henry mining and processing statistics are in 100% terms, while costs between 1 July 2021 and 31 December 2021 represent the Group's cost and not solely the cost of Ernest Henry's operation. The Group took full ownership of Ernest Henry on 6 January 2022, with the effective date 1 January 2022 Evolution Mining Limited Directors' Report 30 June 2023 Mining Operations Cowal Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Non-Operational Costs ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2023 30 June 2022 368,776 (29,780) 338,996 (294,849) (37,773) 6,374 276,314 1,138 2,206 247,418 (30,962) 216,456 (229,826) — (13,370) 227,105 1,245 2,305 Change 121,358 1,182 122,540 (65,023) — 19,744 49,209 107 99 Cowal achieved a record 276,314 ounces at an AISC of $1,138/oz. Access to Stage H ore, and higher ex-pit movements despite rain events earlier in FY23, contributed to the increased open pit ounces for the full year. Cowal achieved a major milestone during the second half of FY23, mining and processing the first underground stopes and delivering 145,000 tonnes of ore at grade of 2.34g/t gold. Remaining underground infrastructure milestones are expected to be reached early in FY24 to facilitate full commercial production levels expected by early in the second half of FY24. Operating cash flow for the year was $368.8 million. Net mine cash flow was $6.4 million post sustaining capital of $29.8 million, major capital of $294.8 million and pre-production costs of $37.8 million related to the establishment and ramp-up of the underground mine. Underground ore mined was 475,000 tonnes at 2.20g/t gold. Total underground development was 10,985 metres. Open pit total material mined was 2,290,000 tonnes. Open pit ore mined was 15,750kt at a grade of 0.89g/t gold. Ernest Henry Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Non-Operational Costs ($'000) Net mine cash flow ($'000) Gold production (oz) Copper production (t) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2023 30 June 2022 397,659 (66,570) 331,089 (44,504) (71,693) 214,892 64,725 47,348 (2,334) (1,637) 474,165 (28,000) 446,165 (10,750) — 435,415 85,145 38,271 (1,680) (1,578) Change (76,506) (38,570) (115,076) (33,754) (71,693) (220,523) (20,420) 9,077 (654) (59) FY23 was the first year of full ownership of Ernest Henry, with gold production of 64,725 ounces at a new record low AISC of negative $(2,334)/oz. The record AISC result for Ernest Henry was driven by 47,049 tonnes of copper sold, at an average achieved price of $12,500/t. AISC was impacted, however, by the significant weather event in March, reducing sales of both gold and copper and requiring recovery efforts for a number of months before returning to full production by the end of FY23. During this time low grade stockpiles and toll treatment ore was supplemented to continue mill and concentrator operation. Operating mine cash flow for the year of $397.7 million was materially impacted by lost revenue of approximately $160 million relating to the weather event. Net mine cash flow was $214.9 million, post sustaining capital of $66.6 million, major capital of 44.5 million and non-operational costs related to the weather event of $71.7 million, comprising $24.0 million of incremental recovery cost and $47.7 million of unproductive operational cost . Ore mined was 5.2 million tonnes at an average grade of 0.51g/t gold and 0.96% copper. Underground development was 8,015 metres. Ore processed was 5.7 million tonnes at an average grade of 0.48g/t gold and 0.91% copper. Capital investment for the year was made up of mobile equipment, mine development, and Pre-Feasibility Study costs. The Pre-Feasibility Study for extension of the mine below the 1,200mRL was completed by June 2023, after an approved extension from December 2022, and received Board approval to progress to the Feasibility Study phase. 6 7 191 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 192 Evolution Mining Limited Directors' Report 30 June 2023 Mining Operations (continued) Red Lake Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Restructuring Costs ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) Evolution Mining Limited Directors' Report 30 June 2023 Mining Operations (continued) Mt Rawdon Key Business Metrics Operating cash flow ($'000) Sustaining capital ($'000) Net mine cash flow before major capital ($'000) Major capital ($'000) Restructuring Costs ($'000) Net mine cash flow ($'000) Gold production (oz) All-in Sustaining Cost ($/oz) All-in Cost ($/oz) 30 June 2023 30 June 2022 Change 41,599 (61,207) (19,608) (189,095) (1,827) (210,530) 120,840 2,620 4,374 35,207 (45,850) (10,643) (153,380) (3,801) (167,824) 115,276 2,519 4,108 6,392 (15,357) (8,965) (35,715) 1,974 (42,706) 5,564 (101) (266) 30 June 2023 30 June 2022 28,128 (5,094) 23,034 (13,394) (224) 9,416 53,685 2,409 2,649 39,798 (8,290) 31,508 (22,621) — 8,887 60,004 1,782 2,175 Change (11,670) 3,196 (8,474) 9,227 (224) 529 (6,319) (627) (474) Red Lake produced 120,840 ounces of gold at an AISC of $2,620/oz. Production performance for Red Lake was below original expectations for FY23, however a number of milestones were achieved in order to set the site up for significant improvement into FY24. Lateral development for the June 2023 quarter and the full year was a record under Evolution ownership. Delivery of two jumbos in January 2023 enabled full mechanical bolting at Cochenour and Upper Campbell, contributing to the planned upgrading of the mobile fleet during the year. AISC increased from FY22, primarily due to increased sustaining capital relating to the mobile fleet upgrade and increased mine development. Mine operating cash flow for the full-year was $41.6 million. Net mine cash flow was negative $(210.5) million after investing $61.2 million in Sustaining capital, $189.1 million in Major capital and $1.8 million in restructuring costs. Ore mined was 814 thousand tonnes at an average grade of 5.06g/t gold for the year. Total underground development was a record under Evolution ownership of 15,840 metres, comprised of 11,966 metres of capital development and 3,874 metres of operating. Ore processed was 815 thousand tonnes at 5.06g/t gold. Mt Rawdon produced 53,685 ounces of gold at an AISC of $2,409/oz for the full year. Weather events impacted the Mt Rawdon operation from the beginning of FY23, limiting access to the pit throughout the year and contributing to production being lower than originally expected. Production was supplemented by lower grade stockpiles when open pit ore was unavailable. Significant water management activities were undertaken during FY23 to enable full mining activities whenever possible, including commissioning over 30 evaporators and 2 temporary reverse osmosis plants, as well as liaising with state regulators on controlled water releases. Mine operating cash flow of $28.1 million and net mine cash flow of $9.4 million was achieved for the year, post sustaining capital of $5.1 million, major capital of $13.4 million and restructuring costs of $0.2 million. Despite lower production this year, Mt Rawdon achieved a slight increase to net mine cash flow as a result of reduced capital spend. Total open pit material mined was 5.17 million tonnes. Ore mined was 2.18 million tonnes at 0.67g/t gold. Capital investment was driven by the tailings storage facility (TSF) lift and mine development activities, undertaken to re-establish pit access. Capital investment for the year consisted mainly of new mobile equipment, continued mine development and Campbell Young decline development. The Mt Rawdon Pumped Hydro Project Feasibility Study continued during the year and is due for completion in the June 2024 quarter. Mungari Key Business Metrics Operating cash flow ($'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 2023 30 June 2022 Change 107,885 (34,198) 73,687 (58,121) 15,566 135,592 2,083 2,573 84,847 (30,307) 54,540 (41,762) 12,748 138,035 1,931 2,325 23,038 (3,891) 19,147 (16,359) 2,818 (2,443) (152) (248) Mungari continued strong performance in FY23, increasing its production to 135,592 ounces of gold at an average AISC of $2,083/oz. The increase to AISC was driven by a number of factors, including a tight labour market leading to a higher reliance on contract labour and inflationary pressure on inputs. Financial Performance Profit or Loss Revenue for the year ended 30 June 2023 increased by 8% to $2,226.9 million (30 June 2022: $2,064.9 million). This was driven by a combination of higher achieved gold price of $2,592/oz (30 June 2022: $2,425/oz) as well as an increase in sold ounces for the year to 647,999oz (30 June 2022: 641,413oz). Revenue comprised of $1,679.7 million of gold, $588.1 million of copper and $18.1 million of silver revenue (30 June 2022: $1,556.1 million of gold, $491.4 million of copper and $17.4 million of silver revenue). Copper revenue was 20% higher than the prior year at $588.1 million (30 June 2022: $491.4 million), driven by an uplift in copper production due to a full year of ownership of Ernest Henry (effective 1 January 2022), despite the material impact of the weather event. Total gold sold included deliveries of 100,000 ounces into the Australian hedge book at an average price of $1,908/oz (30 June 2022: 100,000 ounces, $1,868/oz) and deliveries of 40,000 ounces into the Canadian hedge book at an average price of C$2,271/oz. The remaining 507,999 ounces were sold at spot comprising 436,290 ounces delivered at an average price of $2,738/oz (30 June 2022: 435,336 oz, $2,357/oz) and 71,709, ounces delivered at an average price of C$2,439/oz (30 June 2022: 66,077 ounces, $2,357/oz). At 30 June 2023 the Group's gold delivery commitments totalled 120,000 ounces at an average price of $3,185/oz for the Australian operations with quarterly deliveries through to June 2026. Increased operating costs were predominantly driven by a full year of ownership of Ernest Henry in FY23 compared to FY22 (half year) which accounted for $70.9 million and the costs of the weather event, increased activity at Cowal and Ernest Henry and inflationary cost pressure. Mine operating cash flow was improved by higher sales, ending at $107.9 million, whilst net mine cash flow was $15.6 million for the full year, impacted by the increased capital spend. The Group achieved a statutory net profit after tax of $163.5 million for the year ended 30 June 2023 (30 June 2022: $323.3 million). Underlying net profit after tax was $205.0 million (30 June 2022: $274.7million). Underground ore mined was 885 thousand tonnes at 4.14g/t gold. Total underground development was 8,109 metres. Open pit total material mined was 3.85 million tonnes. Open pit ore mined was 671 thousand tonnes at a grade of 1.13g/t gold. Capital investment in the year consisted mainly of mine development and the Future Growth Project Feasibility Study. Whilst mining ceased in Frog's Leg, continued activity at Kundana and EKJV contributed to underground mine development, and commencement of capital stripping at Paradigm increased open pit mine development. 8 9 193 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 194 Evolution Mining Limited Directors' Report 30 June 2023 Financial Performance (continued) Balance Sheet Total assets decreased 2% during the year to $6,752.4 million (30 June 2022: $6,900.6 million). Cash and cash equivalents decreased as planned by $526.3 million driven mainly by $200 million final payment for Ernest Henry, $170 million scheduled term loan repayments, $91.7 million dividend payments, $72.5 million interest and borrowing costs payments and net mine cash flow achieved of $35.7m. The net carrying amount of property, plant and equipment increased by $387.1 million driven by additions of $500.9m which includes $316.2 million of additions at Cowal and $124.8 million of additions at Red Lake offset by depreciation and amortisation of $122.7 million. Mine development and exploration decreased by $75.1 million, which was primarily driven by mine development additions of $133.4 million at Red Lake, $74.4 million at Mungari and $62.6 million at Ernest Henry offset by deprecation of $402.7 million. Capital additions were more than offset by amortisation recognised in the year. Total liabilities for the Group of $3,457.5 million at 30 June 2023, decreased by $(189.1) million, or (5.2)% on the prior period. The key drivers consist of a $74.4 million decrease in interest bearing liabilities net of capitalised borrowing costs, a $58.8 million increase in trade and other payables and a $36.0 million increase in lease liabilities offset by a $21.4 million decrease in rehabilitation provisions as a result of discounting. Cash Flow Total cash outflows for the year amounted to $523.0 million (30 June 2022: $416.7 million inflow). 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 2023 $'000 735,280 (1,031,978) (226,282) (522,980) 572,427 (3,301) 30 June 2022 $'000 776,683 (1,828,032) 1,468,070 416,721 160,062 (4,356) Change $'000 (41,403) 796,054 (1,694,352) (939,701) 412,365 1,055 46,146 572,427 (526,281) Evolution Mining Limited Directors' Report 30 June 2023 Financial Performance (continued) Financing Total finance costs for the year were $90.7 million (30 June 2022: $49.3 million). Included in total finance costs are interest expenses of $75.0 million (30 June 2022: $43.1 million), amortisation of debt establishment costs of $3.1 million (30 June 2022: $2.5 million), discount unwinding on mine rehabilitation liabilities of $10.3 million (30 June 2022: $0.0 million) and interest expense on lease liability unwinding of $2.4 million (30 June 2022: $0.8 million). The increase in interest expense is the result of higher average interest bearing liabilities over the year, with 12 months of interest repayments incurred during the year on the USPP (30 June 2022: 7 months) combined with higher interest rates on term loans than the prior year. Evolution's weighted average borrowing cost remains low at 4.77% which is at fixed rates except for the term loans and revolving credit facility. The term dates and the outstanding balances on each debt facility as at 30 June 2023 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 US Private Placement - USD $m US Private Placement - USD $m Material business risks Term Date 12 Oct 2025 30 Nov 2024 30 Nov 2024 15 Jan 2025 15 Apr 2026 8 Nov 2028 14 Feb 2031 8 Nov 2031 22 Aug 2033 22 Aug 2035 Facility Size $m $525.0 $220.0 $125.0 $570.0 $440.0 $200.0 $200.0 $350.0 $100.0 $100.0 Amount Drawn $m $55.0 $104.8 $66.9 $570.0 $440.0 $200.0 $200.0 $350.0 $0.0 $0.0 Available Amount $m $470.0 $115.2 $58.1 $0.0 $0.0 $0.0 $0.0 $0.0 $100.0 $100.0 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 2023 are: Net cash outflows from investing activities were $1,032.0 million, a decrease of $796.1 million from the prior period (30 June 2022: $1,828.0 million outflow). This decrease resulted from prior year acquisition activity for Kundana and Ernest Henry while in the current year the only Mergers & Acquisitions (M&A) activity related to the final $200 million Ernest Henry payment. Fluctuations in the metal prices and currencies Cash Flow Net cash outflows from financing activities were $226.3 million, an increase of $1,694.4 million from the prior year (30 June 2022: $1,468.1 million inflow). Financing cash inflows during the year mainly consisted of the drawdown of $55.0 million from Revolver Facility (”Facility A”). Repayments for the year comprised of $120 million on the Term Loan Facility (”Facility B”) and $50 million on the Term Loan Facility (”Facility E”). Dividends paid during the year totalled $91.7 million. Taxation During the year, the Group made net income tax payments of $34.1 million (30 June 2022: $71.1 million) and recognised an income tax expense of $70.3 million (30 June 2022: $94.4 million). The tax payments made in respect of the 30 June 2022 financial year combined with tax instalments paid over the course of the 30 June 2023 financial year have enabled the declaration of fully franked interim and final dividends. Capital Investment Capital investment for the year totalled $798.0 million (30 June 2022: $606.4 million). This consisted of sustaining capital, including near mine exploration and resource definition, of $198.0 million (30 June 2022: $147.1 million) and major capital of $600.0 million (30 June 2022: $459.3 million). The main capital projects included the Underground Project and IWL tailings facility at Cowal, mobile fleet upgrade, underground mine development and Mine Extension Pre-Feasibility Study at Ernest Henry, underground mine development and equipment upgrades at Red Lake, Future Growth Project Feasibility Study and underground mine development at Mungari, and open pit mine development and tails storage buttressing at Mt Rawdon. 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. 10 11 195 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 196 Evolution Mining Limited Directors' Report 30 June 2023 Material business risks (continued) Replacement of Ore Reserves (continued) 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 incidents, 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 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. 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. Environmental, health and safety, and permits The Group’s mining and processing operations and exploration activities are subject to extensive laws and regulations governing the protection and management of worker health and safety, the environment, water management, waste disposal, mine development and rehabilitation and the protection of cultural heritage and 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 events associated with the Group’s activities or those of other mining companies that could affect the environment, human health and safety of the surrounding communities and the protection of cultural heritage. 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, First Nations and community initiatives at its sites to manage the health and safety of its employees, contractors and members of the community, including our First Nations Partners. 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: emissions and waste, reduced water availability; extreme weather or health events; transition risk matters such as 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 (GRI) 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. It has also aligned to the United Nations Sustainability Development Goal (UNSDG) and is a signatory to the United Nations Global Compact (UNGC). In FY23 it undertook a gap analysis and alignment exercise against the newly released TNFD (0.4V) and reports on all of these within the Company Annual Sustainability Report. Evolution Mining Limited Directors' Report 30 June 2023 Material business risks (continued) First Nations Partnerships and Community relations The Group has an established Social Responsibility function, both at a Group level and at each of its operations. The Group function has developed a Cultural Heritage and community engagement framework, including a set of principles, policies and procedures designed to provide a structured and consistent approach to community activities and cultural heritage protection and First Nations engagement across our sites. Social Performance is about people connecting with people. Maintaining trusted relationships with our First Nations and local community stakeholders throughout the entire mining cycles is an essential part of securing and maintaining our social licence to operate. The Group recognises that a failure to appropriately manage First Nations partnerships and local community stakeholder expectations may lead to dissatisfaction and reputational loss which has the potential to disrupt engagement, production and exploration activities. 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, 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 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 and supporting standards to manage operational and enterprise risks including Health, Safety, Environment, Cultural Heritage, Human Rights, Social Responsibility, Strategic Planning, Communication, and Equal Employment Opportunity. The Board, the Sustainability and Risk Committee, the Executive Leadership Team, and Site Leadership Teams, 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 policy to pay a final fully franked dividend for the current period of 2.0 cents per share. The aggregate amount of the final dividend to be paid on 6 October 2023 is estimated at $36.7 million. Evolution Mining Limited shares will trade excluding entitlement to the dividend on 30 August 2023, with the record date being 31 August 2023.. 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 2023 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. 12 13 197 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 198 Evolution Mining Limited Directors' Report 30 June 2023 Material business risks (continued) Environmental regulation and performance (continued) 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 FY23 1 FY22 1 FY21 4 FY20 4 FY19 8 FY18 9 Across the Group of five operating mining sites, there remained a strong focus on health, safety and environmental performance, with one Level III event occurring. This event related to a penalty infringement notice (of a value >US$10,000) that was issued to Mt Rawdon operations for a non-compliance associated with extended, unseasonal rainfall in late 2022. There was no environmental harm related to this event. There has been no other formal enforcement action undertaken by a relevant government authority in FY23. Level III is classified as events resulting in the application of enforcement instruments, penalty or the potential for environmental impact >3 years. It excludes events reported in previous years which remain under investigation. Evolution Mining Limited Directors' Report 30 June 2023 Information on Directors 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. Jacob (Jake) Klein, BCom Hons, ACA, Executive Chair Mr. Klein was appointed as Executive Chair in October 2011, following the merger of Conquest Mining Limited and Catalpa Resources Limited. 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 managed 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, Chief Executive Officer and Managing Director Mr. Conway was appointed Chief Executive Officer and Managing Director on 1 January 2023. His previous positions at Evolution Mining Limited was Finance Director and Chief Financial Officer (1 August 2014) and before that a Non-executive Director. Mr. Conway has more than 33 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. His position immediately prior to joining Evolution was that 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. Most recently, Mr Conway served as a non-executive director and chair of the audit committee for Aurelia Metals Limited until his retirement effective 31 August 2022. Mr. Conway is Deputy Chair of the NSW Minerals Council. 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 and is currently the Chairman of Syrah Resources Limited (since October 2014), a company with operations in Mozambique and in the USA. Mr Askew has recently retired from Endeavour Mining Corporation on 10th May 2023. Mr. Askew is a Member of the Nomination and Remuneration Committee and a Member of the Risk and Sustainability 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 is currently the Chairman of Arrow Minerals Limited and is Non-Executive Director of Clean Tech Lithium Plc. Most recently, Mr. McKeith served as a Non-executive Chair of Genesis Minerals Limited until his retirement effective 30 September 2022. Mr. McKeith is Chair of the Nomination and Remuneration Committee. Andrea Hall, BCom, FCA, M. App Fin, GAICD, Non-Executive Director Ms. Hall is an experienced Non-executive Director who currently sits on the Board of ASX listed Perenti Group and is Chair of the Audit and Risk Committee. Ms. Hall is also a Non-executive Director of Insurance Commission of Western Australia, AFL Fremantle Football Club and also Core Lithium Ltd (from 18 May 2023), and Superannuation Corporation (from 1 July 2023). Ms. Hall retired from ASX-listed Pioneer Credit Limited on 24th February 2023. 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 the Chair of the Audit Committee and Member of the Risk and Sustainability Committee. 14 15 199 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 200 Evolution Mining Limited Directors' Report 30 June 2023 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 2023, and the numbers of meetings attended by each Director were: 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 9 9 9 9 8 9 9 9 B 9 9 9 9 9 9 9 9 A - - - - 4 4 4 - B - - - - 4 4 4 - A - - 3 - 3 - - 3 B - - 3 - 3 - - 3 A - - 4 4 - 3 - - B - - 4 4 - 4 - - 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. Evolution Mining Limited Directors' Report 30 June 2023 Information on Directors (continued) Jason Attew, BSc, MBA, Non-Executive Director Mr. Attew is a mining industry veteran who has dedicated 25 years to the mining sector. He is the President, Chief Executive Officer and Director of Liberty Gold Corp. He has previously served as President and CEO of Gold Standard Ventures Corporation and 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. He 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 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 46 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 (2011-2013), Commissioner of PT NHM Indonesia and Executive Director and Chairman of Western Metals Limited and is currently Non-Executive Director of VP Minerals Limited. Mr. Smith is Chair 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. She was also co-Founder and Chair of Women in Mining and Resources Sg (WIMAR Sg). Prior to joining BHP, Ms Binns held Board and senior management roles at Merrill Lynch Australia including Managing Director and Head of Australian Research, Head of Global Mining, Metals and Steel Research, and Head of Australian Mining Research. Ms. Binns is currently a Non-executive Director of ASX-listed companies Sims Limited and Cooper Energy, as well as the Not For Profit Carbon Market Institute which assists industry in the transition to net zero emissions. Ms Binns is also a Member of the Advisory Council for JP Morgan in Australia and 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 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 30 years’ executive management and corporate governance experience, spanning the mining, technology, and manufacturing sectors. Prior to joining the mining industry, he served as the CFO and Company Secretary of Hartec Limited and held senior positions with IT consulting firms, focussed on the mid-tier ERP space. He began his career with Dimension Data in South Africa, where he had responsibilities in different business units including the finance, commercial and operations functions. 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 17 201 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 202 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Letter continued) Long Term Incentive Plan (LTIP) Outcomes Our LTIP performance measures directly link to shareholder expectations and reinforce our focus on delivering sustainable superior shareholder returns. For the FY21 LTIPs, tested and vesting as of 30 June 2023, the measures focused on Absolute Shareholder Return, Relative Shareholder Return, Group unit All-in sustaining costs 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 50%. A full breakdown is provided in the report on page 215. The Committee and Board remain conscious of the need to have an appropriate remuneration framework that balances between the strong market demands for attracting and retaining employees and a strong focus on incentives very much aligned to delivery of the business strategy and returns for shareholders. Signed: Tommy McKeith Chair of the Nomination and Remuneration Committee Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Letter) Dear Fellow Shareholder, On behalf of the Evolution Board, I am pleased to provide the Remuneration Report for the year ending 30 June 2023. Pleasingly we saw a 35% increase in the Evolution share price during this time and the market fundamentals remain strong for gold. At Evolution, our values of Safety, Excellence, Accountability and Respect underpin how we work and is an important part of how we remunerate people. This is for every person working for Evolution including the Board. Our remuneration framework is linked to our strategy, overall performance, and delivery of returns for shareholders. The Remuneration Report will provide full details of this framework. There have been many positive outcomes during FY23, including the 19% reduction in our Total Recordable Injury Frequency (TRIF) rate to 8.64 incidents per million hours worked, successful commencement of mining at the new Cowal underground mine, the doubling of the reserves and extension of the mine life at Ernest Henry out to 2040, the approval of the expansion at Mungari delivering a mine life out to 2038 and an average annual production of over 200,000oz for the first 5 years post the expansion, and restructuring the balance sheet to match the debt maturity to the expected cash flow. Disappointingly on the operations front we didn’t achieve our production and cost targets. However we are proud of how well our teams managed through the severe weather events at Ernest Henry, Cowal and Mt Rawdon, the inflationary cost environment and seismic issues at Mt Rawdon and Red Lake. The group is restructuring its planning function in an effort to improve delivery against plan and the work done in FY23 sets us up to deliver stronger performance in FY24. Evolution continued to advance its sustainability initiatives and 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. Evolution continued its progress toward net zero by 2050 (30% reduction by 2030) with a 9.5% reduction against the FY20 baseline. 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, S&P Global, ISS, and Sustainalytics, with ratings being maintained or improved. In addition to this, Evolution won two awards as part of the Australasian Reporting Awards (ARA). The above have been achieved while maintaining high engagement levels with our employees. Evolution generated mine operating cash flow of $944 million during FY23, while mine cash flow before major capital was $746 million. This is despite the weather event at Ernest Henry which had a negative cash flow impact of approximately $162.4 million. All operations generated net mine cash flow for the year, except Red Lake where investment in the Upper Campbell mine continued to set the operation up to transition to stable, reliable production. FY23 was, as planned, the peak of our recent capital projects programme and a total of $798 million was invested in the business. All-in sustaining cost (AISC) per ounce of $1,450/oz, normalised for the loss of copper revenue from Ernest Henry, was within our originally guided range of $1,240/oz (+/-5%). Short Term Incentive Plan (STIP) Outcomes For FY23, STIP outcomes focused on six (6) key measures; safety, material and critical controls, production, 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. 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 FY23 STIP Group score was in line with the FY22 result. It is important to note that the Board has not made any adjustments to the measures or scores for the impact of weather events across the business. Following an independent review of the remuneration framework at the end of FY22, the STIP percentage outcomes were increased effective FY23. This was also in line with the Company’s approach to emphasise the ‘at-risk’ remuneration component as opposed to the fixed remuneration component (TFR). For the KMP we continue to adjust the TFR at a lower rate than the rest of the market. Thus, the STIP for the KMP has resulted in a very similar percentage outcome compared to FY22 but the dollar outcomes are higher. It should be noted that for the past four years the TFR movements have been well below market movements. The strategic imperatives element of the STIP has a weighting of 25%. For FY23, the Board evaluated progress against Evolution’s net zero commitment, delivery against key projects and continued improvement of the portfolio quality via organic growth, business development and discovery. The Board were pleased with the progress against these elements and awarded a score of 100%, being target, which we felt was appropriate. This resulted in an overall STIP outcome for FY23 of 69.16%, which the Board believes is an appropriate reflection of the overall performance for the year. A full breakdown is provided in the report on pages 209-212. 18 19 203 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 204 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) This Remuneration Report forms part of the Directors' Report for the year ended 30 June 2023. 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 FY23 e. f. g. Other Remuneration Information h. i. Transactions with KMP Summary of Key Terms Executive Remuneration Performance Measures and Outcomes – STIs and LTIs Non-Executive Director Remuneration Outcomes (a) Remuneration Overview (i) 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 Executive Officer and Managing Director (i)), Non-Executive Directors and those executives considered to be Key Management Personnel (“KMP”) named below: Name Position Jacob (Jake) Klein Lawrence (Lawrie) Conway (i) James Askew Andrea Hall Thomas McKeith Jason Attew Vicky Binns Peter Smith Barrie van der Merwe (ii) Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Executive Chair Chief Executive Officer and Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Financial Officer Vice President People and Culture Company Secretary and Vice President Information Technology, Communications and Corporate Affairs Chief Operating Officer Vice President Discovery Vice President Sustainability For NEDs Remuneration information refer to page 215-216. Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (ii) Executive service agreements Name Position Title Total Fixed Remuneration Existing Executive Directors and Key Management Personnel 2024 2023 Notice Period by Executive Notice Period by Evolution Termination payments * Jake Klein Executive Chair 875,000 875,000 6 months 12 months Lawrie Conway (i) Chief Executive Officer and Managing Director 1,020,000 990,000 6 months 12 months Barrie van der Merwe (ii) Chief Financial Officer 624,000 600,000 3 months 6 months Paul Eagle Vice President People and Culture 468,000 450000 3 months 6 months Evan Elstein Company Secretary and Vice President Information Technology 468,000 450,000 3 months 6 months Bob Fulker Chief Operating Officer 624,000 600,000 3 months 6 months Glen Masterman Vice President Discovery 489,000 470,000 3 months 6 months Fiona Murfitt Vice President Sustainability 470,000 450,000 3 months 6 months 12 months Total Fixed Remuneration 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. * (i) Appointed to Chief Executive Officer (CEO) and Managing Director effective 1 January 2023. Ceased to be Finance Director and Chief Financial Officer effective 1 January 2023. (ii) Appointed to Chief Financial Officer effective 1 March 2023 (i) Appointed to Chief Executive Officer (CEO) and Managing Director effective 1 January 2023. Ceased to be Finance Director and Chief Financial Officer effective 1 January 2023 (ii) Appointed to Chief Financial Officer effective 1 March 2023 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 applicable for FY23. (b) Remuneration Governance The Board of Directors (“the Board”) has an established Nomination and Remuneration Committee, consisting solely of independent 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 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 Remuneration of the Executive Directors, Non-Executive Directors and other KMPs, 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) and a the Mercer Remuneration report for the Canadian market. Total Annual Remuneration - TAR (TFR plus STI) at the 75th percentile for on target performance 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. 20 21 205 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 206 Evolution Mining Limited Directors' Report 30 June 2023 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 The principles and integrity of the remuneration review process deliver fair and equitable outcomes Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (Continued) (c) Remuneration Strategy and Framework The following table outlines the remuneration components for all KMP for the 2023 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's job banding and position. For the Executive Chair, and CEO 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 FY23, the measures focused on safety, critical controls, production, cash contribution, costs and strategic imperatives focused on improving our overall asset portfolio aligned to the business strategy, via the delivery of priority capital projects and progress in the company's sustainability targets. The target and stretch for Executive Directors and KMP for FY23 changed as outlined in the FY22 Remuneration Report where the STI changed from target of 60% to 75% and stretch from 90% to 112.5%. 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 2022, 2023 and 2024 is shown below. CEO/Executive Chair (FY22) Other KMP (FY22) Target 26% 15% 59% Target 31% 18% 51% Stretch 18% 17% 65% Stretch 23% 20% 57% TFR STI LTI TFR STI LTI CEO/Executive Chair (FY23 & FY24) Other KMP (FY23 & FY24) 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 FY23 No changes were made in relation to remuneration in FY23. 22 23 207 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 208 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (e) Executive Remuneration Performance Measures and Outcomes - STIs and LTIs (continued) (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) (ii) STIP (continued) STIP Performance Measures and Outcomes Measure TRI Frequency (TRIF) (12mma) Weighting Performance Outcome 301.6 345.3 323.3 405.4 354.3 218.2 163.5 218.2 274.7 205.0 730.3 1,029.4 914.2 898.8 844.5 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Annual Results Cumulative Average Annual Results Cumulative Average Annual Results Cumulative Average Risk - Critical and Material Risk Basic EPS (cents) Dividends declared (cents per share) Share price ($) at 30 June Group Gold Production (k oz) 17.71 20.21 17.74 12.86 8.91 9.5 16.0 12.0 10.0 4.36 5.67 4.50 2.38 3.22 4.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Annual Results Cumulative Average Annual Results Cumulative Average Annual Results Cumulative Average (ii) STIP STIP Overview Component Performance measure Participation Composition Performance conditions FY23 STIP considerations The Overall Group STIP applies to site based employees at the level of Superintendent and above and all Group office employees. The Group STIP is a cash bonus, up to a maximum percentage of TFR, based on the employee job band. It is assessed and paid annually conditional upon the achievement of key company objectives and individual KPIs. For the 2023 financial year, the Group objectives were focused on the areas of safety, risk, production, group cash contribution, all in sustaining costs and strategic imperatives, designed to improve the overall business aligned to the long term business strategy. At the time of setting the FY23 STIP measures, the Board determined it would consider the following factors when awarding the score for the strategic imperatives measure: 1. 2. 3. Sustainability - progress as per the Evolution Net Zero commitment Key assets - growth and extension of our key assets (Cowal, Ernest Henry, Mungari, Red lake and Mt Rawdon operations) are on track as per agreed schedule and budget Business Development (BD) - Continued improvement of portfolio quality via BD and discovery, including early-stage opportunities Group Cash Contribution ($ million) Group All in Sustaining Cost ($/oz 15% 8.64 15% 150% 15% 651 15% $(41)m 15% $1,450 Award 21.7 % The overall outcome was a reduction in TRIF of 19% on the FY22 performance. A significant focus was given to Red Lake (RLO), as it represented ~51% of recordable injuries in FY22, and to Cowal, with their changing risk profile of increased mining fronts including underground mining. RLO’s performance significantly improved against the FY22 baseline data (improved TRIF by 28% and recordable injuries by 12%). There has also been improvement in some of the leading indicators, e.g., proactive significant incident (SI) reporting, and in field interactions. Additionally, there were improvements in training compliance (~13%) and the injury severity rate continued to decrease over the last twelve months. 22.5 % All risk registers, including the Group risk register (and associated bow ties) were updated and validated via an independent audit. All material and critical actions were recorded and closed out by the due date. Independent audits were completed for all sites, with an overall assessment rating of satisfactory. 0.0 % Against a target of 717koz, EVN delivered ~651koz. This is due to a range of factors with material adverse impacts of weather events at Mt Rawdon, Ernest Henry and Red Lake below target. No adjustments have been made for the impact of these events. 0.0 % Against a target of $75m, EVN had an overall result of $41m outflow which did not meet Threshold. The result for this year was materially impacted by the weather event at Ernest Henry which resulted in $160 million of lower cash flow and additional costs associated with the recover process. Lower than planned production at Red Lake resulted in an adverse impact on the cash contribution of around $50m. These shortfalls were partly offset by lower tax payment and lower group costs. No adjustment for the Ernest Henry weather event has been made. 0.0 % Against a Target of $1,220/oz, EVN’s AISC was ~$1450/oz which did not meet Threshold. The unit costs were materially impacted by the loss of by- product revenue resulting from the Ernest Henry weather event, estimated at c. $160/oz for the full year. Lower than planned production had an adverse impact of c. $100/oz. No adjustment for the Ernest Henry weather event has been made outside of the standard calculations for AISC. 24 25 209 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 210 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (ii) STIP (continued) STIP Performance Measures and Outcomes (continued) Measure Weighting Performance Outcome Strategic Imperatives Award 25.0 % 1. Sustainability – progress against Net Zero commitment The Company continued to move towards its goal of a 30% reduction in emissions by 2030, with a ~9.4% reduction in absolute emissions against the FY20 baseline. Evolution participated in external third-party performance benchmarking initiatives and sustainability related assessments, including with ESG ratings agencies. Our level of transparency, due diligence, and reporting increased, including through our FY22 Sustainability Report and ESG Performance Data document published in FY22/FY23. This higher level of transparency has been recognised through improvements and/or the maintenance of ESG scores, in an environment where there are increasing requirements and complexity. Evolution was recognised by the Australasian Reporting Awards (ARA) for sustainability that reflects our commitment to excellence and learning. 2. Key assets - growth and extension of our key assets (Cowal, Ernest Henry, Red Lake, Mungari and Mt Rawdon) are on track as per agreed schedule and budget Cowal (CGO) Underground • The CGO Underground Project completed its most intense period of execution activity in FY23, with first ore ahead of schedule and the project expected to be completed on budget. The project construction faced several challenges that were outside of the control of the project team including the tail end of COVID restrictions, extremely wet weather, and a heated construction market. Ernest Henry (EHO) Extension • The EHO Extension Project commenced FY23 in the Pre-Feasibility (PFS) stage and work was successfully completed on the PFS. The Board approved the project to move into Feasibility Study stage in June 2023. 25% 100% Red Lake (RLO) Upper Campbell • The project was consistently achieving development rates that exceeds the plan amount for FY23. The initial stoping was completed ahead of schedule; however, operating development and ounce delivery was behind plan for the year. Mungari (MGO) Future Growth • The Feasibility Study was successfully completed and the project was approved into the Execution phase by the Board in June 2023. Mt Rawdon (MRO) Pumped Hydro • The Mount Rawdon Pumped Hydro (MRPH) Project continued to gain momentum during the year and is on track for a commercial out during calendar year 2024. At the end of FY23 a new JDA was negotiated that has better terms for Evolution. Most of the material risks (first fill water, transmission route, geotechnical) have been addressed. Pit wall stability under daily water cycling is being modelled but has yet to be closed out. Government engagement on key matters including potential equity, power purchase agreement, connection agreement, power transmission line options and integration with the Queensland Energy and Jobs Plan have been positive. 3. 3. Business Development (BD) - Continued improvement of portfolio quality via BD and discovery, including early-stage opportunities. Although a relatively quiet year on the BD front vs. prior years, there there were many opportunities screened. The Board considered the progress against these elements and awarded a score of 100%, being Target. Evolution Mining Limited Directors' Report 30 June 2023 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 and Chief Executive Officer, 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 75% and 112.5% of TFR respectively. Following an independent review of the remuneration framework at the end of FY22, the STIP percentage outcomes were increased effective FY23. This was also in line with the Company’s approach to emphasise the ‘at-risk’ remuneration component as opposed to the fixed remuneration component (TFR). Thus, the STIP for the KMP has resulted in a very similar percentage outcome compared to FY22 but the dollar outcomes are higher. It should be noted that for the past four years the TFR movements have been well below market movements. Component Performance measure 2023 Directors Jake Klein Lawrie Conway Key Management Personnel Barrie van der Merwe (i) Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Total STIP Granted ($) % of Maximum Entitlement Granted % of Maximum Entitlement Forfeited 477,000 477,000 107,000 275,000 275,000 295,000 301,000 282,000 48.5 % 52.1 % 47.7 % 54.3 % 54.3 % 43.7 % 57.0 % 55.7 % 51.5 % 47.9 % 52.3 % 45.7 % 45.7 % 56.3 % 43.0 % 44.3 % (i) For period 1 March to 30 June 2023. (iii) LTIP LTIP Overview Component Performance measure Participation The Group LTIP applies to employees at the level of Superintendent / Senior Specialist, Manager, General Manager and Functional Lead across the Group. Performance period Composition 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 and provides equity based “at risk” remuneration, up to maximum percentages, based on, and in addition to, each eligible employee’s TFR. 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. Performance conditions 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. Overall Outcome 100% 69.2 % 26 27 211 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 212 Threshold >90% but below 100% of Baseline Ore Reserves = 9th to 13th ranking = 0 Straight-line pro-rata between 8th Ranking = 33.33% 33% and 66% Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (iii) LTIP (continued) LTIP Performance Measures Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (iii) LTIP (continued) The following table outlines the performance measures for the LTIPs issued in FY23 and to be issued in FY24. KPI's Weighting Measure KPI's Weighting Measure Criteria FY23 & FY24 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. Peer group entites are disclosed underneath this table. Relative TSR Performance 25% 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. Absolute TSR Performance 25% Relative AISC Performance 25% 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. Peer group entites are disclosed underneath this table. Target 7th ranking = 50% 4th to 6th ranking = Straight- line pro-rata between 50% and 100% Top 3 ranking = 100% 10% return per annum = 33% >10% to <15% = pro-rata between 33% and 66% Exceptional Threshold Target 15% return per annum= 66% >15% to <20% = Straight-line pro-rata between 66% and 100% Exceptional Threshold 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. Increase in ore reserves per share 25% Criteria Threshold FY23 & FY24 90% of Baseline Ore Reserves = 33% Target Exceptional 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% >120% and above of Baseline Ore Reserves = 100% Total LTI 100% Peer group comprises of the following entities based on Performance Rights granted during FY23. >20% return per annum = 100% Peer Group Entities 9th to 13th ranking = 0 8th ranking = 33% Northern Star Resources Agnico Eagle B2Gold Corp Gold Fields Alamos Target 7th ranking = 50% Newcrest Yamana Gold Endeavour Mining Kinross Gold SSR Mining AngloGold Equinox Gold Exceptional 4th to 6th ranking = Straight- line pro-rata between 50% and 100% Top 3 ranking = 100% The Board has the discretion to adjust the composition and number of the Peer group companies to take into account events including, but not limited to, takeovers, mergers and demergers that might occur during the performance period. 28 29 213 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 214 Total 100.0 % 33.3 % (i) Represents face value of the awards. (i) (ii) (iii) (iv) (i) (ii) (iii) (iv) Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (e) Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued) (iii) LTIP (continued) LTIP Outcomes Component Performance measure Award outcome for the year - ESOP Performance Rights Outcomes for the FY20 award which were approved by the Board and vested in August 2022 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 FY20 Outcome % of Maximum Vested % Vested 25 % 25 % 25 % 53rd (3.2) % 7.0 % — % — % — % — % 33.3 % 8.3 % Increase in ore reserves per share Percentage increase 25 % 129.0 % 100.0 % 25.0 % Outcomes for the FY21 award approved by the Board for vesting in August 2023 are set out as follows: Performance Target Relative TSR Performance Measure Ranking Absolute TSR performance Compound annual return Relative AISC Performance Ranking Weighting FY21 Outcome % of Maximum Vested % Vested 25 % 25 % 25 % — % — % — % — % Top 3 100.0 % 25.0 % Increase in ore reserves per share Percentage increase 25 % 136.2 % 100.0 % 25.0 % Total 100.0 % 50.0 % (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 (Non-Executive Director Fee Pool) is subject to approval by shareholders (currently set at $1,200,000 per annum). Fees for Non- Executive Directors are not linked to the performance of the Group and they currently do not participate in the Group’s STIP or LTIP. Under the NED Equity Plan, NEDs will be granted Share Rights as part of their remuneration. The number of Share Rights granted will be calculated in accordance with the following formula: “Equity Amount” ($) 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 FY23, the Equity Amount was $65,000 for each NED, other than the Lead Independent Director (LID), who received an Equity Amount of $80,000. No changes are expected for these Equity Amounts in FY24. 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 2023, the VWAP used to determine the number of share rights to be granted to each NED is $2.4580. Providing the NED remains a director of the Group, Share Rights will vest and automatically exercise 12 months after the grant date. The Share Rights granted to NEDs under the NED Equity Plan are not subject to performance conditions. Vested Share Rights will convert into ordinary shares on a one-for- one basis. Vested Share Rights will be satisfied by either issuing shares or arranging for shares to be acquired on-market, subject to the Group's Securities Trading Policy and the inside information provisions of the Corporations Act. Upon the transfer to the relevant NED, the shares will be subject to disposal restrictions (Disposal Conditions) under the earlier of: • • • the NED ceasing to be a director of the Group; or three years from the date of grant of the share rights; or such longer period nominated by the NED at the time of the offer (up to a maximum 15 years from the date of grant). Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (f) Non-Executive Director Remuneration Outcomes (continued) Outlined in the table below is a summary of the fee structure by individual as at 30 June 2023. For remuneration outcomes please refer to table in section g (i). Directors James Askew Andrea Hall Thomas McKeith Peter Smith Vicky Binns Jason Attew Cash Component ($) Base Fees Lead Independent Sub-Committee Chair Sub-Committee Member Total Cash Fees NED Equity Plan Shares ($) (i) Total per annum ($) 120,000 120,000 120,000 120,000 120,000 120,000 720,000 — — — — — 15,000 15,000 40,000 35,000 35,000 — — 40,000 20,000 — — 20,000 40,000 110,000 120,000 160,000 180,000 155,000 155,000 140,000 175,000 965,000 65,000 65,000 65,000 65,000 65,000 80,000 225,000 245,000 220,000 220,000 205,000 255,000 405,000 1,370,000 (g) Other remuneration information (i) Remuneration Summary Table Fixed Remuneration* Leave Entitlement*** Post- Employment Benefits STI* LTI Remuneration Base Salary and Fees Movement Superannuation Bonus Amortised Value ** Total Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Directors 999,708 1,082,106 37,023 18,217 25,292 23,568 477,000 364,000 2,365,535 1,607,044 3,904,558 3,094,935 Jake Klein 862,208 738,306 38,086 36,171 25,292 23,568 477,000 329,000 1,486,996 892,699 2,889,582 2,019,744 Lawrie Conway 160,000 175,000 — James Askew Andrea Hall 175,724 164,384 — Thomas McKeith 140,271 144,495 — 175,000 168,750 — Jason Attew 126,697 127,854 — Vicky Binns Peter Smith 140,271 127,854 — Key Management Personnel 191,569 Barrie Van Der Merwe — 76,859 61,673 236,859 236,673 — — 76,859 61,673 256,859 242,495 — — 76,859 66,868 231,859 225,812 — — 94,595 70,710 269,595 239,460 — — 76,859 61,673 216,859 202,312 — — 76,859 61,673 231,859 202,312 — — — — — 4,276 16,438 — 14,729 14,449 — — — — 13,303 12,785 — 14,729 12,785 — — — — — — — 8,431 — 107,000 — 317,877 — 10,877 — — — — — — — — — 424,708 398,306 8,170 14,124 25,292 23,568 275,000 216,000 888,322 629,692 1,621,492 1,281,690 Paul Eagle 424,708 398,306 13,337 15,739 25,292 23,568 275,000 221,000 888,322 629,692 1,626,659 1,288,305 Evan Elstein Bob Fulker 574,708 518,306 45,168 5,069 25,292 23,568 295,000 239,000 994,435 809,415 1,934,603 1,595,358 Glen Masterman 444,708 428,306 (3,911) 14,554 25,292 23,568 301,000 226,000 947,131 674,626 1,714,220 1,367,054 424,708 382,021 — 22,466 25,292 23,568 282,000 213,000 842,808 443,870 1,574,808 1,084,925 Fiona Murfitt 5,264,988 4,853,994 148,750 126,340 232,512 221,433 2,489,000 1,808,000 8,892,439 6,071,308 17,027,689 13,081,075 Performance related remuneration % of total remuneration 2022 2023 73 % 64 % 68 % 60 % 34 % — % 72 % 66 % 72 % 66 % 67 % 66 % 73 % 66 % 71 % 61 % *Short-term benefits. **Equity settled shared based payments. Amortised value of share based rights comprises the fair value of options and performance rights expensed during the year for KMP, and share rights for NEDs. ***Other Long Term benefits. The amount disclosed represent the annual and long service leave movement in the associated provision balances for a financial year. 30 31 215 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 216 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (g) Other remuneration information (continued) Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (g) Other remuneration information (continued) (ii) Performance Rights and Share Rights (continued) Outlined in the table below is a estimate of the cash equivalent remuneration for Executive Directors and Key Management Personnel for the year ended at 30 June 2023*. This is non-statutory information but is provided to highlight what would be the cash equivalent assuming the FY23 STI was received in the same year and if the LTI performance rights were exercised and sold for cash. Outlined in the table below is a summary of the performance rights for Executive Directors and Key Management Personnel at 30 June 2023 by tranche: Directors Jake Klein Lawrie Conway Key Management Personnel Barrie van der Merwe Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Total Fixed Remuneration (i) Short Term Incentive (ii) Long Term Incentive (iii) Total 1,025,000 887,500 477,000 477,000 886,628 492,431 200,000 450,000 450,000 600,000 470,000 450,000 4,532,500 107,000 275,000 275,000 295,000 301,000 282,000 2,489,000 — 330,914 330,914 425,461 354,551 307,277 3,128,176 2,388,628 1,856,931 307,000 1,055,914 1,055,914 1,320,461 1,125,551 1,039,277 10,149,676 *This is non-IFRS information (i) Base salary plus Superannuation contributions and any Director Fees. For Jake Klein and Lawrie Conway this represents a mix of TFR for different roles during the year. For Barrie van der Merwe this represents from his commencement date of 1 March 2023. (ii) Cash outcome of FY23 STI Plan (iii) Cash equivalent of FY21 Performance Rights which vest in August 2023, assuming the rights are exercised at the share price on 11 August 2023. This is only the implied cash value as each KMP must decide about timing of exercising rights and ultimately the timing of selling of shares. Directors Jake Klein Lawrie Conway Key Management Personnel Barrie van der Merwe Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt Vested FY21 To be Forfeited FY21 Unvested FY22 Unvested FY23 Balance at 30 June 2023 237,702 132,019 — 88,717 88,717 114,065 95,054 82,380 838,654 237,702 132,019 — 88,717 88,717 114,065 95,054 82,380 838,654 711,456 395,404 1,245,932 1,035,395 — 266,099 266,099 341,788 285,022 255,827 2,521,695 — 457,689 457,689 610,252 478,031 457,689 4,742,677 2,432,792 1,694,837 — 901,222 901,222 1,180,170 953,161 878,276 8,941,680 The fair value at grant date for the Key Management Personnel FY23 performance rights are stated below: September 2022 Performance Rights issue Fair value at grant date ($) Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves 1.02 0.53 1.95 1.95 (ii) Performance Rights and Share Rights The fair value at grant date for the Non-Executive Directors FY23 share rights were $2.68 and are based on one year service condition. At end of the year The fair value at grant date for the Jake Klein's and Lawrie Conway's FY23 performance rights are stated below: Balance at the start of the year Number of new rights granted New grant value at grant date Vested and exercised Forfeited Balance at the end of the year Vested and exercisable To be Forfeited Unvested Unamortised value of SBP expenses Directors Jake Klein Lawrie Conway James Askew (i) Andrea Hall (i) Thomas McKeith Jason Attew Vicky Binns (i) Peter Smith (i) 1,737,700 1,245,932 $ 2,308,089 (183,566) (367,273) 2,432,793 965,377 1,035,395 $ 1,918,069 (101,952) (203,983) 1,694,837 26,444 26,444 26,444 32,547 26,444 26,444 26,444 $ 26,444 $ 26,444 $ 32,547 $ 26,444 $ 26,444 $ (16,400) (16,400) (16,400) (20,184) (16,400) (16,400) 70,870 70,870 70,870 87,226 70,870 70,870 16,400 16,400 16,400 20,184 16,400 16,400 — — — — — — 237,202 237,202 1,958,389 $ 2,363,371 132,019 132,019 1,430,799 $ 1,776,157 20,446 20,446 20,446 25,165 20,446 20,446 — 26,444 $ — 26,444 $ — 26,444 $ — 32,547 $ — 26,444 $ — 26,444 $ — — — — — — Key Management Personnel — Barrie van der Merwe — $ — — — — — — — $ — Paul Eagle Evan Elstein 649,121 649,121 457,689 $ 623,601 457,689 $ 623,601 (68,512) (137,076) (68,512) (137,076) 901,222 901,222 88,717 88,717 723,788 $ 88,717 88,717 723,788 $ 707,830 707,830 Bob Fulker 834,246 Glen Masterman 695,403 610,252 $ 831,468 478,031 $ 651,317 (88,087) (176,241) 1,180,170 953,161 (73,407) (146,866) 114,065 114,065 952,040 $ 1,086,738 746,015 95,054 95,054 763,053 $ November 2022 Performance Rights issue Fair value at grant date ($) Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves 1.35 0.98 2.54 2.54 Fiona Murfitt (ii) 512,216 908,812 6,145,368 4,907,444 $ 8,021,322 (686,220) (1,229,608) 9,136,984 457,689 $ 623,601 (61,093) — 112,916 82,380 713,516 $ 697,773 868,690 838,154 7,430,140 $ 8,213,109 *The performance rights issued have a zero exercise price. The performance rights may be exercised on or after the vesting date, which is expected to be the month following the end of the performance period. Once vested the performance rights have 15 years until expiry. ** Grant date for Key Management Personnel performance rights was 15 September 2022. Jake Klein and Lawrie Conway's performance rights were granted on 24 November 2022 following shareholder approval at the Annual General meeting. Non-Executive Directors had share rights granted on 25 November 2022. (i) Non-Executive Director Share Rights granted under the NED Equity Plan are not subject to performance conditions. (ii) 30,536 performance rights were vested in FY22 but unexercised by 30 June 2023. 32 33 217 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 218 Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (g) Other remuneration information (continued) (iii) Directors and key management personnel equity holdings 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 Jake Klein Lawrie Conway James Askew Andrea Hall Thomas McKeith Jason Attew Vicky Binns Peter Smith Key Management Personnel Barrie van der Merwe Paul Eagle Evan Elstein Bob Fulker Glen Masterman Fiona Murfitt 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 — 183,566 101,952 16,400 16,400 16,400 20,184 16,400 16,400 — 68,512 68,512 88,087 73,407 — 20,185,467 686,220 * 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 2023. — — — — — — — — — (1,676) (238,512) (44,087) (73,407) — (357,682) 16,025,636 1,429,309 945,738 68,255 250,843 57,895 53,184 67,406 — 988,819 557,848 64,000 5,072 — 20,514,005 (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 summarised as follows: (b) Related Party Transactions (continued) Related party transactions International Mining & Finance Corp Jason Attew Total 30 June 2023* 30 June 2022 $ $ 248,159 219,126 467,285 234,650 191,757 426,407 * Payment to International Mining & Finance Corp includes $84,409 expense reimbursements and payment to Jason Attew includes $44,126 expense reimbursements. Expenses were mostly related to travel. Evolution Mining Limited Directors' Report 30 June 2023 Remuneration Report (Audited) (continued) (i) 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”) 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 2023 are listed in section (a) (ii) of the Remuneration Report. 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 Annual Remuneration (TAR) Total Remuneration (TR) Total Fixed Remuneration plus STI and LTI. Superannuation Guarantee Charge ("SGC") This is the employer contribution to an employee nominated superannuation fund required by law. The percentage contribution was set at 10.5% 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”) 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 Non-Executive Director The Non-Executive Director Fee Pool is the maximum aggregate amount of cash fees that can be paid to Non-Executive Forfeiture 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 35 219 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 220 Evolution Mining Limited Directors' Report 30 June 2023 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 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. Evolution Mining Limited Directors' Report 30 June 2023 Non-audit services (continued) Other assurances services Tax compliance and advisory services Total non-audit services fees Auditor's independence declaration 2023 $ 22,960 64,800 87,760 2022 $ 20,160 139,770 159,930 A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 223. 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. Lawrence (Lawrie) Conway Andrea Hall Chief Executive Officer and Managing Director Chair of the Audit Committee Sydney 36 37 221 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 222 Auditor’s Independence Declaration As lead auditor for the audit of Evolution Mining Limited for the year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been: (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (b) no contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Evolution Mining Limited and the entities it controlled during the period. Brett Entwistle Partner PricewaterhouseCoopers Sydney 17 August 2023 Evolution Mining Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2023 Notes 30 June 2023 30 June 2022 $'000 $'000 Sales revenue Cost of sales Gross Profit Interest income Other (expenses) / 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) (Loss)/gain on cash flow hedge reserve net of tax (may be reclassified to profit or loss) Cost of hedging reserve net of tax (may be reclassified to profit or loss) Other comprehensive (loss) / income 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 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 2,226,931 (1,797,853) 429,078 2,064,928 (1,572,842) 492,086 8,003 (30,157) (12,893) (46,814) (5,153) — (17,527) (90,735) 233,802 1,993 17,794 (13,879) (38,547) (130,117) 154,206 (16,507) (49,281) 417,748 (70,294) 163,508 (94,424) 323,324 (13,903) (13,194) 9,543 (38,549) (45) (42,954) 120,554 52,656 29,436 1,886 70,784 394,108 120,554 120,554 394,108 394,108 Cents 8.91 8.89 Cents 17.74 17.70 PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation. The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 39 223 Annual Report | www.evolutionmining.com.au 39 Annual Report | www.evolutionmining.com.au 224 Evolution Mining Limited Consolidated Balance Sheet As at 30 June 2023 ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Derivative financial instruments 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 Provisions Derivative financial instruments Lease liabilities Other current liabilities Total current liabilities Non-current liabilities Interest bearing liabilities Provisions Derivative financial instruments Deferred tax liabilities Lease liabilities Other non-current liabilities Total non-current liabilities Total liabilities Net assets EQUITY Issued capital Reserves Retained earnings Capital and reserves attributable to owners of Evolution Mining Limited Total equity Notes 30 June 2023 $'000 PPA Adjusted 30 June 20221 $'000 10 13 15 16(b) 15 16 7 9 8 20 16(b) 17 14 11 19 16(b) 8 25(a) 11 19 16(b) 20 8 18 12(a) 12(b)(c)(d) 12(e) 46,146 119,964 333,395 2,426 15,532 517,463 193,445 45,064 2,087,008 3,665,856 55,180 45,494 103,737 39,138 6,234,922 572,427 153,449 250,512 — 33,733 1,010,121 158,674 60,840 1,699,875 3,740,925 19,092 41,316 113,213 56,565 5,890,500 6,752,385 6,900,621 466,120 341,273 78,043 1,957 22,523 — 909,916 1,422,159 468,433 5,955 552,122 35,310 63,614 2,547,593 3,457,509 3,294,876 2,644,103 100,542 550,231 3,294,876 3,294,876 407,341 167,318 73,893 2,671 12,751 197,914 861,888 1,670,628 489,579 — 544,630 9,097 70,823 2,784,757 3,646,645 3,253,976 2,644,103 131,420 478,453 3,253,976 3,253,976 Evolution Mining Limited Consolidated Statement of Changes in Equity For the year ended 30 June 2023 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 2021 $'000 2,183,727 $'000 66,833 $'000 12,606 $'000 (30,033) $'000 — $'000 301,757 $'000 2,534,890 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 Cash flow hedge reserve net of tax 12(b) Cost of hedging net of tax 12(c) Total comprehensive income — — — — — — — — — — — — (13,194) — — — 52,656 — 323,324 323,324 — — — (13,194) — 52,656 — — — 29,436 — 29,436 — 1,886 — 1,886 — (13,194) 52,656 31,322 323,324 394,108 Transactions with owners in their capacity as owners: Issue of share capital 12(a) 460,376 Dividends provided for or paid Recognition of share-based payments 5 27 — — — 11,230 460,376 11,230 — — — — — — — (146,628) 460,376 (146,628) — — 11,230 — (146,628) 324,978 Balance at 30 June 2022 2,644,103 78,063 (588) 22,623 31,322 478,453 3,253,976 Balance at 1 July 2022 Profit after income tax expense Changes in fair value of equity investments at FVOCI net of tax Exchange differences on translation of foreign operations Cash flow hedge reserve net of tax Cost of hedging net of tax Total comprehensive expense 12(d) 12(b) 12(c) Transactions with owners in their capacity as owners: Dividends provided for or paid Recognition of share-based payments 5 27 2,644,103 78,063 — (588) — 22,623 — 31,322 — 478,453 163,508 3,253,976 163,508 — — — — — — — — — (13,903) — — 9,543 — — — (13,903) — 9,543 — — (13,903) — — 9,543 (38,549) (45) (38,594) — — 163,508 (38,549) (45) 120,554 — — — — — 12,076 12,076 — — — — — — — — (91,730) (91,730) — 12,076 — (91,730) (79,654) Balance at 30 June 2023 2,644,103 90,139 (14,491) 32,166 (7,272) 550,231 3,294,876 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes. 1Upon revising the provisional fair values of Ernest Henry (acquired 1 January 2022) prior year comparative figures have been restated. Refer to note 25 for further details. 40 41 225 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 226 Evolution Mining Limited Consolidated Statement of Cash Flows For the year ended 30 June 2023 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 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 (outflow)/inflow 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 2023 $'000 2,353,456 (1,518,236) (5,153) 6,024 8,258 (74,969) (34,100) 735,280 (483,738) (354,937) 3,387 3,310 — (200,000) (1,031,978) 80,000 (195,000) (19,552) (91,730) — (226,282) (522,980) 572,427 (3,301) 46,146 2 6(a) 25 11 11 8 5 12(a) 10 10 30 June 2022 $'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 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 Contents of the Notes to the Consolidated Financial Statements Business performance Performance by Mine Revenue and Expenses Income tax expense Earnings per share Dividends Other cash flow information Resource assets and liabilities Property, plant and equipment Leases Mine development and exploration Capital structure, financing and working capital Cash and cash equivalents Interest bearing liabilities Equity and reserves Trade and other receivables Trade and other payables Inventories Financial assets and financial liabilities Other non-current assets Other non-current liabilities Provisions Deferred tax balances Risk and unrecognised items Financial risk management Contingent liabilities and contingent assets Commitments Events occurring after the reporting period Other disclosures Business Combinations Related party transactions Share-based payments Remuneration of auditors Deed of cross guarantee Interests in other entities Parent entity financial information Summary of significant accounting policies New accounting standards 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Page 229 229 230 233 234 234 235 236 236 238 239 243 243 243 244 246 247 247 248 249 250 251 253 255 255 259 259 260 261 261 263 263 266 266 267 268 269 270 42 43 227 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 228 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 Chief Executive Officer 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 2023 is as follows: Ernest Henry $'000 709,636 337,273 66,570 44,504 111,074 Cowal Mungari $'000 723,195 439,795 29,780 294,849 324,629 $'000 352,974 108,564 34,198 58,121 92,319 Revenue EBITDA Sustaining Capital Major Capital Total Capital Red Lake Mt Rawdon Exploration Corporate2 $'000 $'000 $'000 295,362 62,457 61,207 189,095 250,302 $'000 145,764 1,188 5,094 13,394 18,488 — (17,527) — — — Total $'000 — 2,226,931 844,513 198,049 599,963 798,012 (87,237) 1,200 — 1,200 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 38,750 Cowal $'000 532,665 286,083 30,962 229,826 260,788 Mungari $'000 330,894 103,203 30,307 41,762 72,069 Revenue EBITDA Sustaining Capital Major Capital Total Capital Red Lake Mt Rawdon Mt Carlton Exploration $'000 $'000 268,703 44,662 45,850 153,380 199,230 $'000 137,554 43,829 8,290 22,621 30,911 $'000 49,313 4,308 2,683 975 3,658 Corporate $'000 Total $'000 — 2,064,928 898,814 147,057 459,314 606,371 (31,678) 965 — 965 — (16,507) — — — Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 2023 30 June 2022 $'000 $'000 844,513 (522,827) 8,003 (5,153) (90,735) — — 233,802 898,814 (467,825) 1,993 (130,117) (49,281) 9,958 154,206 417,748 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 Senior Leadership Team which assesses the financial performance and position of the Group, and makes strategic decisions. The Senior Leadership Team has been identified as being the chief business decision maker, consisting of the Key Management Personnel (KMP). (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 and deferred tax assets. Segment non-current assets are aggregated on a geographical basis. As at 30 June 2023 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 Gross Revenue Concentrate treatment, refining and freight deductions3 Net Revenue Australia $'000 193,445 1,420,832 2,795,061 52,638 101 4,462,077 Canada $'000 — 666,176 870,795 2,542 123 1,539,636 Total $'000 193,445 2,087,008 3,665,856 55,180 224 6,001,713 30 June 2023 $'000 30 June 2022 $'000 1,679,669 18,087 588,121 1,556,051 17,446 491,431 2,285,877 2,064,928 (58,946) — 2,226,931 2,064,928 2 Included within Corporate EBITDA are Foreign Exchange losses of $15.3 million related to quotational period price adjustments on sales at Ernest Henry. This took effect from 1 January 2022 with the 100% acquisition of Ernest Henry. 3 Under the first full year of Evolution's ownership, Ernest Henry treatment, refining and freight costs classified as a deduction to revenue in line with AASB 15. 44 45 229 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 230 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 2 Revenue and Expenses (continued) Disaggregation of revenue from contracts with customers Cowal $'000 Mungari Mt Carlton4 Mt Rawdon $'000 $'000 $'000 Ernest Henry $'000 Red Lake $'000 Total $'000 30 June 2023 Gold sales Silver sales Copper sales Concentrate treatment, refining and freight5 Total Revenue from contracts with customers 714,897 352,330 8,298 — 644 — — — — — — — 142,836 174,439 295,167 1,679,669 2,928 6,022 195 18,087 — 588,121 — 588,121 — (58,946) — (58,946) 723,194 352,974 — 145,764 709,636 295,362 2,226,931 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 $'000 Total $'000 526,984 5,681 — 330,333 561 — 38,444 3,190 7,679 134,823 2,731 — 256,937 5,110 483,752 268,530 1,556,051 17,446 491,431 173 — 532,665 330,894 49,313 137,554 745,799 268,702 2,064,928 Gross revenues of $594.1 million (30 June 2022: $488.9 million) which relate to copper and silver sales are derived from a single external customer relating to Ernest Henry segment. The other major customers include refineries and financial institutions. Recognition and measurement - revenue from contracts with customers The Group generates sales revenue primarily from the performance obligation to deliver goods such as gold and concentrate to the buyer. Revenue from contracts with customers is recognised when control of the goods are transferred to the customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. For gold doré sales, revenue is recognised at the point where the doré leaves the gold room at the Group's mine site to the buyer, or when payment is received, or where gold metal credits are transferred to the customer's account. 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. 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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 2 Revenue and Expenses (continued) 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. Other (expense) / income Net foreign exchange (loss) / gain Gain on sale of Mt Carlton Impairment loss on contingent consideration receivable (note 17) 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 2023 30 June 2022 $'000 $'000 (22,272) — (13,797) 5,912 (30,157) 3,041 9,958 — 4,795 17,794 30 June 2023 $'000 30 June 2022 $'000 1,205,028 72,627 520,198 1,797,853 1,039,899 68,072 464,871 1,572,842 44,187 2,627 46,814 3,355 1,798 — 5,153 3,127 10,251 2,388 74,969 90,735 35,593 2,954 38,547 26,280 5,894 97,943 130,117 2,860 2,530 758 43,133 49,281 520,198 2,627 522,825 464,871 2,954 467,825 4 Mt Carlton was divested on December 2021 effective 1 October 2021. 5 Ernest Henry treatment, refining and freight costs classified as a deduction to revenue in line with AASB 15. 46 47 231 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 232 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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% ( 2022 - 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Adjustments for current tax of prior periods Share-based payments Dividend - fully franked Entertainment expenses and FX on deferred consideration (not assessable/deductible) Impairment loss on assets 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 Other Adjustment for difference between Australian and overseas tax rates Income tax expense 30 June 2023 30 June 2022 $'000 48,244 (4,829) 26,879 70,294 $'000 52,909 (3,774) 45,289 94,424 30 June 2023 30 June 2022 $'000 233,802 70,141 $'000 417,748 125,324 (4,829) 2,681 (663) 197 4,139 — — — — — (876) (496) 70,294 (3,774) 865 (663) 37 — (2,988) (41,841) 36,968 (46,262) 29,383 (2,373) (252) 94,424 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 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 2023 30 June 2022 Cents 8.91 8.89 Cents 17.74 17.70 30 June 2023 30 June 2022 $'000 $'000 163,508 323,324 2023 Number 2022 Number Weighted average number of ordinary shares used in calculating the basic earnings per share Effect of dilutive securities* Adjusted weighted average number of ordinary shares used in calculating the diluted earnings per share 1,834,693,710 5,059,967 1,839,753,677 1,822,135,441 4,704,814 1,826,840,255 * Performance rights and share rights have been included in the determination of diluted earnings per share. 5 Dividends (a) Ordinary shares Interim dividend - 2023 Interim dividend for the year ended 30 June 2023 of 2.0 cents per share fully franked (30 June 2022: 3.0 cents per share fully franked) per fully paid share paid on 2 June 2023 Final dividend - 2022 Final dividend for the year ended 30 June 2022 of 3.0 cents per share fully franked (30 June 2021: 5.0 cents per share fully franked) paid on 30 September 2022 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 2.0 cents per fully paid ordinary share (30 June 2022: 3.0 cents fully franked). The aggregate amount of the proposed dividend expected to be paid on 6 October 2023 out of retained earnings at 30 June 2023, but not recognised as a liability at period end, is (c) Franked dividends 30 June 2023 $'000 30 June 2022 $'000 36,700 54,990 55,030 91,730 91,638 146,628 30 June 2023 $'000 30 June 2022 $'000 36,700 54,990 The final dividend recommended after 30 June 2023 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 2024. The franking account balance at the end of the financial year is $2.6 million (30 June 2022: $ 10.9 million). 48 49 233 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 234 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 2023 30 June 2022 $'000 $'000 7 Property, plant and equipment At 1 July 2022 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2023 Carrying amount at the beginning of the year Additions Reclassifications Disposals Depreciation Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2023 Cost Accumulated depreciation Net carrying amount Included in above Assets in the course of construction Freehold land Plant and equipment $'000 $'000 Total $'000 26,433 3,098,168 3,124,601 — (1,424,726) (1,424,726) 26,433 1,673,442 1,699,875 26,433 1,673,442 1,699,875 — — — — 41 26,474 500,861 15,976 (11,249) (122,642) 4,146 2,060,534 500,861 15,976 (11,249) (122,642) 4,187 2,087,008 26,474 — 26,474 3,593,924 (1,533,390) 2,060,534 3,620,398 (1,533,390) 2,087,008 — 592,223 592,223 Profit after income tax Depreciation and amortisation Loss/(gain) on disposal of assets Share-based payments expense Unrealised foreign exchange loss Gain on sale of Mt Carlton Gain on remeasurement of existing interest in Ernest Henry Mine Exploration and evaluation costs expensed Impairment loss related to contingent consideration assets Unwind of discount on provisions Income tax expense Tax Payments Change in operating assets and liabilities: Decrease/(Increase) in operating receivables Decrease in inventories 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 (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 163,508 522,825 1,686 12,076 6,418 — — 17,527 13,797 10,251 36,194 (34,100) 42,950 (87,703) 48,892 (2,044) (16,997) 735,280 323,324 467,825 (979) 12,119 — (9,958) (154,206) 16,511 — — 94,424 (71,059) (29,419) (57,021) 182,179 (1,978) 4,920 776,682 30 June 2023 $'000 30 June 2022 $'000 46,146 (645,000) (1,131,222) (57,833) (1,787,909) 572,427 (760,000) (1,088,692) (21,848) (1,298,113) 30 June 2023 $'000 30 June 2022 $'000 (1,298,113) (522,980) — (80,000) 195,000 (45,831) (35,985) (1,787,909) (485,040) 416,721 (1,022,896) (440,000) 300,000 (70,152) 3,254 (1,298,113) * Effects of exchange rate changes included $42.5 million foreign exchange revaluation on US Private Placements. A hedging arrangement is in place to offset this impact refer note 16 for details) ** The Group's net debt gearing ratio excludes foreign exchange revaluations on US Private Placements and lease liabilities under AASB 16 50 51 235 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 236 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 7 Property, plant and equipment (continued) 8 Leases 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 a business combinations Reclassification Disposal 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 Recognition and measurement Cost Freehold land $'000 PPA Adjusted Plant and equipment6 $'000 Total $'000 19,238 — 19,238 2,319,065 2,338,303 (1,348,409) (1,348,409) 970,656 989,894 19,238 — — 6,978 — — — 217 26,433 970,656 432,916 398,021 5,219 (1,187) (113,912) (37,908) 19,637 1,673,442 989,894 432,916 398,021 12,197 (1,187) (113,912) (37,908) 19,854 1,699,875 26,433 — 26,433 3,098,168 (1,424,726) 3,124,601 (1,424,726) 1,673,442 1,699,875 — 261,296 261,296 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 10% 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. 6 Upon revising the provisional fair values of Ernest Henry (acquired 1 January 2022), the carrying amount at the beginning of the period has been restated. Refer to note 25 for further details. 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 2023 30 June 2022 $'000 $'000 53,830 1,242 108 55,180 16,218 2,612 262 19,092 30 June 2023 30 June 2022 $'000 $'000 22,523 35,310 57,833 12,751 9,097 21,848 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 2023 $'000 30 June 2022 $'000 21,792 1,370 154 23,316 12,847 1,430 210 14,487 30 June 2023 $'000 30 June 2022 $'000 2,388 2,894 5,282 758 421 1,179 The total cash outflow in the current year was $19.6 million including 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 2023 Lease liabilities 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 $'000 22,611 16,813 16,135 4,025 59,584 57,833 52 53 237 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 238 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 9 Mine development and exploration 9 Mine development and exploration (continued) At 1 July 2022 Cost Accumulated depreciation Net carrying amount Year ended 30 June 2023 Carrying amount at the beginning of the year Additions Reclassifications Write-off Amortisation Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2023 Cost Accumulated amortisation Net carrying amount PPA Adjusted Producing mines Exploration and evaluation $'000 $'000 Total $'000 5,786,201 (2,478,011) 3,308,190 438,327 6,224,528 (5,592) (2,483,603) 432,735 3,740,925 3,308,190 432,735 3,740,925 326,713 (15,713) (10,646) (402,713) 4,707 28,224 354,937 — (6,881) (15,713) (17,527) — (402,713) 1,240 5,947 3,210,538 455,318 3,665,856 6,059,271 (2,848,733) 3,210,538 460,910 (5,592) 455,318 6,520,181 (2,854,325) 3,665,856 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 a business combination* Transfers from Mine Development and Exploration Amortisation Divestment of Mt Carlton Disposal Reclassifications Write-off Exchange differences taken to reserve Carrying amount at the end of the year At 30 June 2022 Cost Accumulated depreciation Net carrying amount Recognition and measurement PPA Adjusted Producing mines 7 Exploration and evaluation Total $'000 $'000 $'000 3,870,426 (2,140,091) 1,730,335 1,730,335 266,722 1,615,809 65,269 (372,806) (12,495) 443 (12,196) — 27,109 3,308,190 5,786,201 (2,478,011) 3,308,190 429,654 4,300,080 — (2,140,091) 429,654 2,159,989 429,653 2,159,988 44,659 64,129 (65,269) 311,381 1,679,938 — — (372,806) (23,340) (35,835) — 443 (7,674) (16,511) 7,088 432,735 (19,870) (16,511) 34,197 3,740,925 438,327 (5,592) 6,224,528 (2,483,603) 432,735 3,740,925 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 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 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 7 Upon revising the provisional fair value of Ernest Henry (acquired 1 January 2022) prior year comparative figures have been restated. Refer to note 25 for further details. *This includes the business combinations PPA adjustments 239 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 240 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 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 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 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 57 241 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 242 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 2023 30 June 2022 $'000 $'000 46,146 — 46,146 197,427 375,000 572,427 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 2023 $'000 30 June 2022 $'000 345,000 (3,727) 341,273 300,000 1,131,222 (9,063) 1,422,159 170,000 (2,682) 167,318 590,000 1,088,692 (8,064) 1,670,628 On 5 June 2023, it was announced that the Group had successfully restructured its debt maturity profile to align it with mine life extensions and increase balance sheet flexibility. This restructure involved a new US$200 million (~A$300 million) US Private Placement (USPP) and the replacement of the existing A$590 million term loan facilities with a reduced A$300 million four year term loan facility. Current and non-current classification as a result of this restructure at 30 June 2023 has been reflected in accordance with AASB 9 resulting in A$290 million classified as current. During the year the Group drew down $55 million on Facility A and made $170 million in repayments on Facility B and Facility E Term Loans. The repayment periods, facility size and amounts drawn at 30 June 2023 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 US Private Placement - USD $m US Private Placement - USD $m 12 Oct 2025 30 Nov 2024 30 Nov 2024 15 Jan 2025 15 Apr 2026 8 Nov 2028 14 Feb 2031 8 Nov 2031 22 Aug 2033 22 Aug 2035 $525.0 $220.0 $125.0 $570.0 $440.0 $200.0 $200.0 $350.0 $100.0 $100.0 Amount Drawn Available Amount $m $55.0 $104.8 $66.9 $570.0 $440.0 $200.0 $200.0 $350.0 $0.0 $0.0 $m $470.0 $115.2 $58.1 $0.0 $0.0 $0.0 $0.0 $0.0 $100.0 $100.0 (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 2021 Shares issues 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 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 2023 Number of shares $'000 1,708,667,085 2,183,727 103,896,104 17,639,298 2,529,221 207,536 392,858 67,518 — — 68,439 1,833,007,683 — 2,644,103 1,360,692 545,760 102,184 1,835,016,319 — — — 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. Cross currency interest rate swap Balance at the beginning of the year 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 the end of the year 30 June 2023 $'000 29,436 30 June 2022 $'000 — (16,246) 4,874 (38,824) 11,647 (9,113) 106,058 (31,817) (64,007) 19,202 29,436 (c) Cost of hedging reserve The cost of hedging reserve includes the effects of the following: 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 59 243 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 244 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 2023, the amounts deferred in cost of hedging reserve are all time-period related. Balance at the beginning of the year 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 the end of the year (d) Other reserves 30 June 2023 30 June 2022 $'000 1,886 (3,304) 991 3,239 (972) 1,840 $'000 — 923 (277) 1,772 (532) 1,886 30 June 2023 30 June 2022 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 16(a) (14,491) 90,139 32,166 107,814 (588) (13,903) (14,491) 78,063 12,076 90,139 22,623 9,543 32,166 (588) 78,063 22,623 100,098 12,606 (13,194) (588) 66,833 11,230 78,063 (30,033) 52,656 22,623 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 12 Equity and reserves (continued) Nature and purpose of other reserves Financial assets at FVOCI reserve The financial assets at FVOCI 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. (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 Accrued Revenue Trade receivables GST refundable Prepayments Other receivables Total trade and other receivables Recognition and measurement Accrued Revenue 30 June 2023 $'000 478,453 (91,730) 163,508 550,231 30 June 2022 $'000 301,757 (146,628) 323,324 478,453 30 June 2023 $'000 30 June 2022 $'000 69,579 20,380 13,230 11,722 5,053 119,964 — 123,774 8,596 12,993 8,086 153,449 Accrued revenue of $69.6 million was recognised at 30 June 2023 (30 June 2022: $0 million) and relates to goods shipped but not invoiced. 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 61 245 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 246 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 14 Trade and other payables Current liabilities Trade creditors and accruals Stamp Duty Deferred revenue (i) Other payables Total Current liabilities (i) Deferred revenue relates to advance payments received on concentrate sales at Red Lake during FY23. Recognition and measurement Trade creditors and accruals 30 June 2023 30 June 2022 $'000 $'000 296,878 97,943 20,099 51,200 466,120 245,869 97,943 — 63,529 407,341 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 2023 30 June 2022 $'000 $'000 35,654 6,186 2,949 236 — 39 45,064 42,833 5,318 4,669 408 7,592 20 60,840 (i) Investment in Navarre Minerals Ltd is valued to nil due to announcement of voluntary administration. Refer to note 17 for more details. 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. Recognition and measurement Equity Investments at fair value 15 Inventories Current Stores Ore Doré and concentrate Metal in circuit Total current inventories Non-current Ore Total non-current inventories 30 June 2023 $'000 30 June 2022 $'000 131,357 104,781 58,607 38,650 333,395 193,445 193,445 117,682 50,736 3,147 78,947 250,512 158,674 158,674 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 downwards by $11.1 million for the year ended 30 June 2023 (30 June 2022: net realisable value for inventory stockpile was revalued upwards by $3.0 million). 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 - current Financial assets - non-current Financial liability - current Financial liability - non-current Total cross currency interest rate swaps Recognition and measurement 30 June 2023 $'000 30 June 2022 $'000 2,426 103,737 (1,957) (5,955) 98,251 — 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 CCIRS contracts outstanding at the end of the reporting period and their related hedged items. Cross currency interest rate swaps Notional Amount (USD) 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 *includes new hedges that will be drawn down during FY24. 30 June 2023 $'000 30 June 2022 $'000 — — — 950,000 0.7166 3.7216% 4.4713% — — — 750,000 0.7332 3.0500% 3.6105% 62 63 247 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 248 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 16 Financial assets and financial liabilities (continued) (b) Hedging Instrument (continued) Cross Currency Interest Rate Swap 30 June 2023 30 June 2022 Hedging instruments Carrying amount of the hedging instrument assets (liabilities) Cumulative change in fair value used for calculating hedge ineffectiveness Hedged items Cumulative change in fair value used for calculating hedge ineffectiveness Balance in cash flow hedge reserve (including cost of hedging reserve) for continuing hedges - loss / (gain) $'000 $'000 98,252 115,566 (125,120) 10,388 110,542 121,789 (131,116) (44,746) Hedge ineffectiveness recognised in profit or loss (in finance cost - (gain) / loss (315) — 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 30 June 2023 $'000 30 June 2022 $'000 20,755 2,790 15,577 — 16 39,138 23,143 2,790 16,500 13,797 335 56,565 (i) Relates to contingent consideration recognised from the divestment of Mt Carlton effective from 1 October 2021. Following the announcement on 19 June 2023 that Navarre Minerals Ltd decided to enter into voluntary administration contingent consideration of $13.8 million attributable to the sale of Mt Carlton has been written off during the year. 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. With the exception of Navarre as noted in the footnote of the table above, no other fair value gains or losses have been recognised in profit or loss related to these balances 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 2023 30 June 2022 $'000 $'000 57,270 6,344 63,614 56,812 14,012 70,824 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 $57.3 million at 30 June 2023. 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. 64 65 249 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 250 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 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 2023 Carrying amount at the beginning of the year Charged to profit or loss provision recognised unwinding of discount Re-measurement of provision Exchange differences taken to reserve Carrying amount at the end of the year 30 June 2022 Carrying amount at the beginning of the year 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 2023 $'000 PPA adjusted 30 June 2022 $'000 78,043 78,043 73,893 73,893 8,259 459,746 428 468,433 546,476 7,030 482,126 423 489,579 563,472 Employee benefits $'000 Rehabilitation provisions $'000 Other long term provisions $'000 Total $'000 80,923 482,126 423 563,472 5,389 — (5) 86,307 45,191 4,795 — 39,237 164 (8,464) 80,923 — (10,251) (10,954) (1,180) 459,741 312,230 — 78,303 124,164 (5,198) (27,373) 482,126 5 — — 428 423 — — — — — 423 5,394 (10,251) (10,954) (1,185) 546,476 357,844 4,795 78,303 163,401 (5,034) (35,837) 563,472 * 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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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. 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. 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. 66 67 251 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 252 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 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 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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. 30 June 2023 PPA adjusted 30 June 2022 $'000 31,983 5,009 (29,697) (123,239) (742,860) 14,506 3,484 125,045 3,116 5,951 (706,702) $'000 31,983 3,146 (33,808) (77,600) (688,948) 12,499 2,108 122,226 (13,424) 2,180 (639,638) 200,074 (506,628) 136,324 (503,314) (552,122) 45,494 (506,628) (544,630) 41,316 (503,314) (b) Movement in deferred tax balances during the year Deferred taxes attributable to amounts recognised directly in equity are also recognised directly 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) (c) Unrecognised deferred tax assets PPA Adjusted Balance at 1 July 2022 $'000 31,983 3,146 (33,808) (77,600) (688,948) 12,499 2,108 122,226 — 136,324 (13,424) 2,180 (503,314) Recognised in profit or loss $'000 Recognised in equity $'000 FX translation $'000 — — 3,903 (44,510) (52,798) 2,006 1,342 2,600 — 61,144 — 1,863 — — — — — — — — — 208 (1,129) (1,114) 1 34 219 — 2,606 Balance at 30 June 2023 $'000 31,983 5,009 (29,697) (123,239) (742,860) 14,506 3,484 125,045 — 200,074 — 16,540 — 3,116 (566) (26,879) — 18,403 4,337 5,162 5,951 (506,628) The Group has unrecognised available tax losses of $539 million as at 30 June 2023 (30 June 2022: $292.7 million). For Canada, $535 million are unrecognised temporary differences with $133.8 million as a deferred tax asset. For Australia, $3.7 million tax losses and a deferred tax asset of $1.1 million have not been recognised. 68 69 253 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 254 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 amortised 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 2023 30 June 2022 $'000 $'000 46,146 40,257 79,707 45,064 39,138 106,163 356,475 466,120 1,763,432 57,270 — 7,912 2,294,734 572,427 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 (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 new US Private Placements of US$200.0 million entered into during the year. as well as the existing US Private Placement of US$750 million. (30 June 2022: US$750.0 million). 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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 21 Financial risk management (continued) (a) Derivatives (continued) 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. The Group typically utilises forward exchange contracts to hedge foreign exchange risks for significant transactions. The Group has entered into cross currency interest rate swaps to mitigate the US dollar exposure arising from the US Private Placements of US$950.0 million. As at 30 June 2023, the Group held US$9.6 million (30 June 2022: US$14.4 million) in US dollar currency bank accounts, C$18.4 million in Canadian dollar currency bank account (30 June 2022: C$25.6 million), outstanding receivables of US$85.9 million relating to Ernest Henry (30 June 2022: US$90.1 million). The Group also recognised a USD denominated contingent consideration liability being US$39.1 million (30 June 2022: US$39.1 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 $2.7 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 $56.2 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 mines and market share prices on the available-for-sale assets. The Group has in place physical gold delivery contracts as at 30 June 2023 covering sales of 120,000 oz of gold at an average forward price of $3,185 per ounce (30 June 2022: 100,000 oz at an average price of $1,916 per ounce and 40,000 oz at an average price of C$2,217 per ounce). 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 2023 was $120.0 million (30 June 2022: $153.4 million). Cash and cash equivalents at 30 June 2023 were $46.1 million (30 June 2022: $572.4 million). Interest rate risk (d) The Group is exposed to interest rate risk through its short term borrowings comprising $55.0 million on Revolving Credit Facility ("Facility A") and long term borrowings comprising $250.0 million on the Term Loan Facility ("Facility B") and $340.0 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 $5.9m 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 71 255 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 256 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 $8.5 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 $9.3 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 2023 30 June 2022 $'000 $'000 — 670,000 670,000 360,000 — 360,000 (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 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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 21 Financial risk management (continued) (e) Liquidity risk (continued) Cash (Inflows)/Outflows Less than 1 year Between 1 and 2 years Between 2 and 5 years Over 5 years Total contractual cash flows Carrying amount (assets)/ liabilities $'000 $'000 $'000 $'000 $'000 $'000 At 30 June 2023 Non-derivatives Trade and other payables Bank loans including interest US Private Placement Lease liabilities Derivatives Derivative instruments – CCIRS: - Inflow - Outflow 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 (f) Risk management 466,120 366,390 47,905 22,611 903,026 — 53,100 47,905 16,813 117,818 — 265,500 143,715 16,135 425,350 — — 466,120 684,990 466,120 645,000 1,137,815 1,377,340 1,131,222 4,025 59,584 57,833 1,141,840 2,588,034 2,300,175 (43,914) 48,333 4,419 (53,326) 59,624 6,298 (159,977) 178,172 18,195 (1,645,916) 1,573,335 (1,903,133) 1,859,464 (72,581) (43,669) 98,252 98,252 407,341 200,000 191,453 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 1,213,767 407,341 200,000 807,408 1,375,050 23,774 2,813,573 407,341 197,914 760,000 1,088,692 21,848 2,475,795 110,542 (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 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 and USPP investors have placed covenants over the Group's Senior Secured Revolving, Term Loan Facility and USPP 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. 72 73 257 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 258 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (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 2023 in respect of: (i) Claims At the date of this report the Group was unaware of any material claims, actual or contemplated. (ii) Guarantees The Group has provided bank guarantees in favour of various government authorities and service providers with respect to site restoration, contractual obligations and premises at 30 June 2023. The total of these guarantees at 30 June 2023 was $180.7 million with various financial institutions (30 June 2022: $148.0 million). The Group has $32.0 million in bank guarantees placed on behalf of Navarre Mineral Ltd for environmental bonding purposes with the Queensland government which could be called upon if the mine is closed and does not meet its closure obligations. Evolution has no present obligation at 30 June 2023 while the mine is on care and maintenance while the sale process is ongoing. (iii) Red Lake The Group recognised a contingent consideration liability on the purchase consideration of Red Lake. Refer to note 18 for further details. 23 Commitments (a) Capital 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 2023 $'000 30 June 2022 $'000 9,193 29,070 43,602 81,865 11,513 31,032 50,320 92,865 (ii) Capital commitments The Group has the following capital commitments in relation to capital projects and joint venture requirements at each of the sites. Within one year Later than one year but not later than five years 30 June 2023 30 June 2022 $'000 135,731 4,341 140,072 $'000 148,876 — 148,876 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 23 Commitments (continued) (b) Gold delivery commitments Australia At 30 June 2023 Within one year Later than one year but not greater than five years At 30 June 2022 Within one year Later than one year but not greater than five years Canada At 30 June 2023 Within one year At 30 June 2022 Within one year Gold for physical delivery oz Average contracted sales price $/oz Value of committed sales $'000 20,000 100,000 120,000 100,000 — 100,000 3,085 3,205 3,185 1,916 — 1,916 61,700 320,500 382,200 191,600 — 191,600 Gold for physical delivery oz Average contracted sales price C$/oz Value of committed sales C$'000 — — — — — — 40,000 40,000 2,271 2,271 90,880 90,880 The counterparties to the physical gold delivery contracts are Australia and New Zealand Banking Group Limited ("ANZ"), National Australia Bank Limited ("NAB"), Westpac Banking Corporation (“WBC”), Commonwealth Bank of Australia ("CBA") and ING Group ("ING"). Contracts are settled on a quarterly basis by the physical delivery of gold per the banks instructions. The contracts are accounted for as sale contracts with revenue recognised once the gold has been delivered to ANZ, NAB, WBC, CBA, ING or one of their agents. The physical gold delivery contracts are considered a contract to sell a non-financial item and is therefore out of the scope of AASB 9 Financial Instruments. As a result no derivatives are required to be recognised. The Company has no other gold sale commitments with respect to its current operations. 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. 74 75 259 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 260 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Other Disclosures This section covers additional financial information and mandatory disclosures. 25 Business Combinations Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) A provisional completion balance sheet and purchase price accounting are as follows: On 6 January 2022, the Group announced the completion of the acquisition of full ownership of the Ernest Henry copper-gold mine located ~38km north- east of Cloncurry, Queensland, effective 1 January 2022. Evolution acquired an economic interest in Ernest Henry in November 2016 from Glencore via joint ventures that delivered 100% of future gold and 30% of future copper and silver produced within an agreed life of mine area. Evolution paid 30% of the operating costs and capital of the operation. Outside the agreed life of mine area, Evolution would have a 49% interest in future additional copper, gold and silver production, and would pay 49% of the operating and capital costs. From completion of the acquisition, Evolution’s interest in Ernest Henry transitioned to 100% legal ownership of the underlying asset. Additionally, a new offtake arrangement was agreed for 100% of Ernest Henry’s concentrate to be sold to Glencore on standard market terms that also took effect from 1 January 2022. A total of $1,004 million cash has been paid for this transaction with the second purchase price payment of $200 million paid on 6 January 2023. As part of the overall funding of the transaction and associated costs, Evolution successfully priced a new US$200 million US Private Placement maturing in FY31, at a fixed coupon of 3.06%. Evolution’s investment grade rating was reaffirmed, and the placement was oversubscribed reflecting the investors’ view on the quality of the transaction. 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 The initial accounting for the acquisition has been revised and finalised for the current period as shown below. These adjustments have determined the net identifiable assets/(liabilities) as being $1.2 million higher than previously reported. The comparative information shown in the financial statements has been restated to include the adjusted fair values. There has been no impact to the comparative profit or loss so as to require restatement. (ii) Outflow of cash to acquire subsidiary a) Ernest Henry Acquisition (i) Summary of acquisition 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 determined as $154.2 million. 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: Outflow of cash to acquire subsidiary Total purchase price payment paid in cash* Final working capital adjustment Total outflow of cash *Includes $200 million paid during FY23. Final Fair Value Provisional Fair Value $'000 $'000 959 3,932 32,221 354,800 959 3,932 32,221 313,600 1,661,980 1,382,332 (30,534) (32,400) (387,575) (30,534) (32,400) (66,727) (147,861) (147,861) 1,455,522 1,455,522 AUD $'000 1,000,000 8,998 1,008,998 (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: Purchase consideration First tranche of purchase price payment paid on 6 January 2022 Final working capital adjustment paid on 13 May 2022 Second purchase price payment paid on 4 January 2023 Total AUD $'000 800,000 8,998 195,829 1,004,827 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 AUD $'000 450,695 (296,489) 154,206 The fair value of the Group's previously held economic interest in Ernest Henry mine is estimated at $450.6 million. The fair value for the 100% of Ernest Henry mine net assets is then estimated to be $1,455.5 million: (iv) Acquisition and Integration costs Fair Value Estimate Previously held equity interest Acquiring equity interest Total AUD $'000 450,695 1,004,827 1,455,522 No Acquisition and integration related costs were incurred during the period. Stamp duty costs were not yet assessed by the respective State Revenue Offices and therefore have not been paid as at 31 December 2022. 76 77 261 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 262 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 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 Leave entitlement Post-employment benefits Share-based payments 30 June 2023 30 June 2022 $ $ 7,753,988 148,750 232,512 8,892,439 17,027,689 6,661,994 126,340 221,433 6,071,308 13,081,075 Detailed remuneration disclosures are provided in the remuneration report on pages 203 to 220. 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 2023* $ 30 June 2022 $ 248,159 219,126 467,285 234,650 191,757 426,407 * Payment to International Mining & Finance Corp includes $84,409 expense reimbursements and payment to Jason Attew includes $44,126 expense reimbursements. Expenses were mostly related to travel. 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. Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 27 Share-based payments (continued) 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 2023 Number 2022 Number 16,190,517 16,660,277 (1,395,153) (7,423,731) 24,031,910 12,770,473 8,853,605 (2,598,828) (2,834,733) 16,190,517 2023 Number 2022 Number 102,184 164,767 (102,184) — 164,767 68,439 102,184 (68,439) — 102,184 There were 164,767 Share Rights granted during the 2023 financial year. Provided the NEDs remain directors of the Group, Share Rights will vest and automatically exercise 12 months after the grant date of 25 November 2022 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 2025. 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 using the Monte Carlo simulation over the three year period ending 30 June 2025. (c) Fair value determination (continued) (iii) Relative AISC Relative AISC (non-market-based condition) was valued at the grant date using a risk neutral assumption and will be tested against Evolution’s relative ranking of its AISC performance for the 12 month period ending 30 June 2025 (Evolution AISC) compared to the AISC performance ranking of the Peer Group Companies for the same period (Peer Group AISC). (ii) Non-Executive Director Equity Plan (NEDEP) (iv) Growth in Ore Reserves per Share The NEDEP was established and reapproved at the Annual General Meeting on 24 November 2022. The plan permits the Group, at the discretion of the Directors, to grant NED Share Rights as part of their remuneration. The growth in Ore Reserves per share (non-market-based condition) is valued at the grant date using the risk neutral assumption and will be tested by comparing the Baseline measure of the Ore Reserves as at 31 December 2021, to the Ore Reserves as at 31 December 2024 on a per share basis, with testing to be performed at 30 June 2025. (b) Recognised share based payment expenses Expense arising from equity settled share based payment transactions recognised in profit and loss 12,893 13,879 30 June 2023 $'000 30 June 2022 $'000 78 79 263 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 264 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 27 Share-based payments (continued) 28 Remuneration of auditors The following tables list the inputs to the models used for the Performance Rights granted for the period: During the year the following fees were paid or payable for services provided by the auditor of the parent entity, Evolution Mining Limited, its related network firms and non-related audit firms. Also included are fees paid or payable for non-audit services by non PricewaterhouseCoopers audit firms, although these firms do not provide audit services to Evolution Mining Limited. Relative TSR Absolute TSR Relative AISC Growth in Ore Reserves (a) PricewaterhouseCoopers September 2022 Performance Rights issue Number of rights issued Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Dividend yield (%) Fair value at grant date ($) November 2022 Performance Rights issue Number of rights approved in AGM* Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Dividend yield (%) Fair value at grant date ($) February 2023 Performance Rights issue Number of rights issued Spot price ($) Risk-free rate (%) Term (years) Volatility (%) Dividend yield (%) Fair value at grant date ($) 3,341,968 3,341,968 3,341,968 3,341,968 2.14 3.35% 2.14 3.35% 2.14 3.35% 2.14 3.35% 2.91 years 2.91 years 2.91 years 2.91 years 43% 3.33% 1.02 43% 3.33% 0.53 43% 3.33% 1.95 43% 3.33% 1.95 570,332 570,332 570,332 570,332 2.74 3.21% 2.74 3.21% 2.74 3.21% 2.74 3.21% 2.60 years 2.60 years 2.60 years 2.60 years 44% 2.94% 1.35 252,769 3.03 3.47% 2.37 years 44% 2.89% 1.56 44% 2.94% 0.98 252,769 3.03 3.47% 2.37 years 44% 2.89% 1.21 44% 2.94% 2.54 252,769 3.03 3.47% 2.37 years 44% 2.89% 2.83 44% 2.94% 2.54 252,769 3.03 3.47% 2.37 years 44% 2.89% 2.83 * November 2022 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 grant date as defined under AASB 2. 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”). Audit and other assurance services Audit and review of financial statements Other Total remuneration for audit and other services Taxation services Tax compliance and advisory services Total remuneration for taxation services Total remuneration of PricewaterhouseCoopers (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 2023 $ 2022 $ 923,000 22,960 945,960 1,137,000 20,160 1,157,160 64,800 64,800 139,770 139,770 1,010,760 1,296,930 2023 $ 2022 $ 173,354 136,620 309,974 81,400 54,890 136,290 377,763 38,940 416,703 148,613 255,574 404,187 Total remuneration of non-PricewaterhouseCoopers audit firms 446,264 820,890 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 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. 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'. 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. 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 2023 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. 80 81 265 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 266 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 30 Interests in other entities (a) Significant investments in subsidiaries Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 31 Parent entity financial information The financial information for the parent entity, Evolution Mining Limited has been prepared on the same basis as the consolidated financial statements. The consolidated financial statements incorporate the assets, liabilities and results of the following principal subsidiaries in accordance with the accounting policy described below: (a) Summary financial information The individual financial statements for the parent entity show the following aggregate amounts: 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 EKJV Management Pty Ltd Kundana Gold Pty Ltd Toledo Tenement Holdings Pty Ltd Evolution Mining (Aurum 2) Pty Ltd (i) (ii) Evolution Mining Finance Pty Limited Ernest Henry Mining Pty Ltd 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) Rubicon Nevada Corp BNG Alaska Corp Country of Incorporation Class of shares Equity holding 2023 % 2022 % Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia 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 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 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 (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. Profit for the year Other comprehensive (loss)/Income Total comprehensive income/(expense) 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. Dividends announced during the year are paid out of profit for the year and are isolated through a separate reserve. 30 June 2023 30 June 2022 $'000 $'000 564,360 4,173,433 4,737,793 521,357 4,296,683 4,818,040 464,400 1,639,811 2,104,211 270,116 1,854,187 2,124,303 2,633,582 2,693,737 2,644,103 (14,491) 90,139 (9,113) 1,840 — (78,896) 2,633,582 2,644,103 892 78,064 29,436 1,885 (77) (60,566) 2,693,737 73,400 (42,954) 30,446 109,901 31,322 141,223 (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 The parent entity did not have any contingent liabilities as at 30 June 2023. For information about guarantees given by the parent entity, please see above. 82 83 267 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 268 Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) Evolution Mining Limited Notes to the Consolidated Financial Statements For the year ended 30 June 2023 (continued) 32 Summary of significant accounting policies 32 Summary of significant accounting policies (continued) (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). The financial report also complies with the International Financial Reporting Standards (IFRS) including interpretations as issued by the International Accounting Standards Board (IASB). 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. (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. 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. (d)   Derivative financial instruments and hedging (continued) 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. (i) Derivative financial instruments (continued) At 30 June 2023, Evolution has a net current liability of $392 million (30 June 2022: $148 million net asset position). The current liabilities include an amount of $290 million relating to Evolution successfully restructuring its debt maturity profile to align the debt maturity with extended mine lives and improve balance sheet flexibility. This restructure involved a US$200 million US Private Placement (USPP) of which US$100 million matures in FY34 and US$100 million in FY36 and the replacement of the existing A$590 million term loan facilities with a reduced A$300 million four-year term loan facility that is repayable between FY25 and FY28 with no debt settlement commitments in FY24. The settlement of this debt restructure occurs in August 2023, and is fully committed and unconditional. $290 million of the existing term loan facilities are classified as current interest-bearing liabilities in the 30 June 2023 balance sheet as required under AASB 9. Excluding the impact of the debt restructure, the underlying net current liability position is $287 million and Evolution is confident that it will meet all current obligations as they fall due. (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 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. (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. 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 2023 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 84 85 269 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 270 Evolution Mining Limited Directors' Declaration 30 June 2023 In the Directors' opinion: (a) the financial statements and notes set out on pages 223 to 270 are in accordance with the Corporations Act 2001, including: (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 2023 and of its performance for the year ended on that date, and (b) (c) 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. Lawrence (Lawrie) Conway Andrea Hall Chief Executive Officer and Managing Director Chair of the Audit Committee Sydney Independent auditor’s report To the members of Evolution Mining Limited Report on the audit of the financial report Our opinion In our opinion: The accompanying financial report of Evolution Mining Limited (the Company) and its controlled entities (together the Group) is in accordance with the Corporations Act 2001, including: • • giving a true and fair view of the Group's financial position as at 30 June 2023 and of its financial performance for the year then ended complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The Group financial report comprises: • • • • • • the consolidated balance sheet as at 30 June 2023 the consolidated statement of changes in equity for the year then ended the consolidated statement of cash flows for the year then ended the consolidated statement of profit or loss and other comprehensive income for the year then ended the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information the directors’ declaration. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999 Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999 Liability limited by a scheme approved under Professional Standards Legislation. 86 271 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 272 Our audit approach Key audit matters An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls and the industry in which it operates. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated the key audit matters to the Audit Committee. Key audit matter How our audit addressed the key audit matter Materiality Audit scope • Our audit focused on where the Group made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events. • For the purpose of our audit we used overall Group materiality of $18 million, which represents approximately 5% of the three year average profit before tax of the Group for the current and two previous years. • We applied this threshold, together with qualitative considerations, to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial report as a whole. • We chose Group profit before tax because, in our view, it is the benchmark against which the performance of the Group is most commonly measured. We applied a three-year average to address potential volatility in the calculation of materiality that arises from commodity price fluctuations between years. We also adjusted for the gain on remeasurement of the existing interest in the Ernest Henry mine, impairment, and transaction and integration costs, as they are unusual or infrequently occurring items impacting profit and loss. • We utilised a 5% threshold based on our professional judgement, noting it is within the range of commonly acceptable thresholds. Acquisition of remaining interest in Ernest Henry Mine (Refer to note 25) [Purchase consideration of $1,005 million] The Group acquired the remaining interest in Ernest Henry Mine (Ernest Henry) from Glencore on 6 January 2022. As a result of the size and complexity of the transaction, the purchase price allocation accounting was provisional as at 30 June 2022. The purchase price allocation was finalised during the year ended 30 June 2023. As part of the finalised purchase price allocation, the fair values of the assets and liabilities were determined using updated valuations of the assets acquired and liabilities assumed. The purchase price allocation for the Ernest Henry acquisition was a key audit matter given the judgements made by the Group and subjectivity in the valuation methodologies and significant assumptions applied. Our procedures included the following, amongst others: • • • • Evaluated the Group’s accounting by considering the requirements of Australian Accounting Standards, key transaction agreements, our understanding obtained of the business acquired and its industry and selected minutes of the board of directors meetings. Evaluated the valuation methodologies and assessed the appropriateness of the valuation assumptions used by the Group on which the final fair values of the identifiable assets and liabilities acquired were based. Evaluated the completeness and accuracy of the underlying data supporting the significant judgements and estimates used by the Group. Evaluated the objectivity, competence and capabilities of the management expert utilised to assist the Group in determining the fair value of certain identifiable assets and liabilities acquired. We further obtained an understanding of the work performed by the expert and evaluated the appropriateness of the conclusions reached. Assessed the reasonableness of the business combination disclosures in Note 25 in light of the requirements of Australian Accounting Standards. 273 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 274 Key audit matter How our audit addressed the key audit matter Other information Rehabilitation Provision (Refer to note 19) [$460 million] To assess the Group's rehabilitation obligations, we performed the following procedures, amongst others: As a result of its mining and processing operations, the Group is obligated to restore and rehabilitate the land and environment disturbed by these operations and remove the related infrastructure. Rehabilitation activities are governed by a combination of regulatory and legislative requirements and Group standards. This was a key audit matter due to the significance of the balance and the required judgements in the assessment of the nature and extent of future works to be performed, the future cost of performing the works, and the timing of when the rehabilitation will take place. • • Developed an understanding of how the Group identified the relevant methods, assumptions or sources of data that are appropriate for developing the closure plans and associated cost estimates in the context of the Australian Accounting Standards. Developed an understanding of and tested a sample of the relevant controls the Group has in place to estimate the rehabilitation provision. • Where experts were engaged by the Group, we evaluated the scope, competency, and objectivity of these experts. • • • • • Developed an understanding of and assessed the appropriateness of the significant assumptions and key data used to develop the closure and rehabilitation provision with regard to applicable regulatory and legislative requirements. Evaluated the reasonableness of the expected timing of rehabilitation activities against the closure and rehabilitation plan. Tested the mathematical accuracy of the calculations included in the rehabilitation provision model. Assessed provision movements in the year relating to rehabilitation obligations to determine whether they were consistent with our understanding of the Group's operations and associated rehabilitation plans. Assessed the reasonableness of the note disclosures in note 19 in light of the requirements of Australian Accounting Standards. The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other information we obtained included the Director's report. We expect the remaining other information to be made available to us after the date of this auditor's report. Our opinion on the financial report does not cover the other information and we do not and will not express an opinion or any form of assurance conclusion thereon through our opinion on the financial report. We have issued a separate opinion on the remuneration report. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the other information not yet received, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors and use our professional judgement to determine the appropriate action to take. Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. 275 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 276 A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in pages 203 to 220 of the directors’ report for the year ended 30 June 2023. In our opinion, the remuneration report of Evolution Mining Limited for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. Shareholder Information Capital (as at 20 September 2023) 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 20 September 2023) Distribution of Fully Paid Shares (as at 20 September 2023) 1,837,183,868 32,279 1,588 A$3.62 Range Securities % No. of Holders % 100,001 and Over 1,648,665,761 89.74 10,001 to 100,000 5,001 to 10,000 1,001 to 5,000 1 to 1,000 Total 118,412,097 32,009,791 33,124,729 4,971,490 1,837,183,868 Unmarketable Parcels 98,025 6.45 1.74 1.8 0.27 100 0.01 265 4,671 4,317 12,466 10,560 32,279 1,588 0.82 14.47 13.37 38.62 32.71 100 4.92 PricewaterhouseCoopers Substantial Shareholders (as at 31 August 2023) Brett Entwistle Partner Sydney 17 August 2023 Australian Super Van Eck Global Fidelity Worldwide Investment Total Fully Paid Ordinary Shares Number 278,257,714 190,373,037 105,641,124 574,271,875 % 15.1 10.4 5.8 31.3 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 2023 as only movements of at least 1% are required to be notified to the Australian Securities Exchange. 277 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 278 Twenty Largest Shareholders (as at 20 September 2023) Corporate information Fully Paid Ordinary Shares Current balance Issued capital % HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 659,863,279 35.92 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 531,874,743 28.95 CITICORP NOMINEES PTY LIMITED NATIONAL NOMINEES LIMITED BNP PARIBAS NOMS PTY LTD BNP PARIBAS NOMINEES PTY LTD HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 171,050,808 61,496,924 57,927,757 27,585,470 13,328,352 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM 10,745,483 1 2 3 4 5 6 7 8 9 ROXI PTY LIMITED 10 CITICORP NOMINEES PTY LIMITED 11 EQUITY PLAN SERVICES PTY LTD 12 PACIFIC CUSTODIANS PTY LIMITED 13 MUTUAL TRUST PTY LTD 14 BNP PARIBAS NOMINEES PTY LTD 15 LUJETA PTY LTD 16 NETWEALTH INVESTMENTS LIMITED 17 NETWEALTH INVESTMENTS LIMITED 18 BNP PARIBAS NOMS(NZ) LTD 19 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 7,971,486 6,531,168 5,432,067 4,467,913 4,141,776 4,121,217 4,082,692 3,125,922 2,770,290 2,735,869 2,397,596 20 MR LAWRENCE JOHN CONWAY & MS YOLANDE CLARE CONWAY 1,561,328 0.08 Total 1,583,212,140 86.18 Balance of register 253,971,728 13.82 Grand total 1,837,183,868 100 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. 9.31 3.35 3.15 1.5 0.73 0.58 0.43 0.36 0.3 0.24 0.23 0.22 0.22 0.17 0.15 0.15 0.13 ABN 74 084 669 036 Board of Directors Jake Klein Executive Chair Lawrie Conway Managing Director and CEO 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 279 Annual Report | www.evolutionmining.com.au Annual Report | www.evolutionmining.com.au 280 Level 24, 175 Liverpool Street Sydney NSW 2000 + 61 2 9696 2900 + 61 2 9696 2901 www.evolutionmining.com.au 

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