“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
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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
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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
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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.
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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
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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
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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
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b
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Ernest Henry Ore Reserve Update
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Evening sky at Ernest Henry captured by Adrian Hermsen
Wildflower meadow at Lake Austin by Sam Inskip
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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.
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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
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a
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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
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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
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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
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Boilermaker at Mt Rawdon by Prabhu Muthuveeran
Governance
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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Health, Safety
& Wellbeing
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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.
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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.
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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.
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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.
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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.
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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.
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People and Culture
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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.
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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
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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
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Community
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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.
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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.
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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.
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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
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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
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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
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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
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Environment
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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
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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
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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)
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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, $24.1 million lower than the prior year driven by reduced profit. The effective tax
rate in the current year is 30% compared to 22.6% in FY22 which resulted from the tax effect of the prior year acquisitions and divestment.
4
5
189
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190
Evolution Mining Limited
Directors' Report
30 June 2023
Key highlights for the year (continued)
Key Results
The consolidated operating and financial results for the current and prior year are summarised below. All dollar figures refer to Australian thousand
dollars ($'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 $47.7 million of unproductive operational cost .
Ore mined was 5.2 million tonnes at an average grade of 0.51g/t gold and 0.96% copper. Underground development was 8,015 metres. Ore
processed was 5.7 million tonnes at an average grade of 0.48g/t gold and 0.91% copper.
Capital investment for the year was made up of mobile equipment, mine development, and Pre-Feasibility Study costs. The Pre-Feasibility Study for
extension of the mine below the 1,200mRL was completed by June 2023, after an approved extension from December 2022, and received Board
approval to progress to the Feasibility Study phase.
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30 June 2023
Mining Operations (continued)
Red Lake
Key Business Metrics
Operating cash flow ($'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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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 %
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27
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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%
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
$'000
78
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Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
(continued)
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
(continued)
27 Share-based payments (continued)
28 Remuneration of auditors
The following tables list the inputs to the models used for the Performance Rights granted for the period:
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, Evolution Mining Limited, its related
network firms and non-related audit firms. Also included are fees paid or payable for non-audit services by non PricewaterhouseCoopers audit firms,
although these firms do not provide audit services to Evolution Mining Limited.
Relative TSR
Absolute TSR
Relative AISC
Growth in Ore
Reserves
(a)
PricewaterhouseCoopers
September 2022 Performance Rights issue
Number of rights issued
Spot price ($)
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
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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
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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
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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
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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.
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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.
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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