Inspired people
creating a premier
global gold company
Annual Report 2024
Contents
Annual Report
FY24 in review
2
About Evolution Mining
4
Our strategy
5
Executive Chair’s letter
6
Managing Director and CEO’s letter
8
Board of Directors
10
13 years of Evolution
13
FY24 operational performance
13
FY24 operational highlights
14
FY25 production, AISC and capital guidance
16
Discovery
17
FY24 Discovery highlights
18
Mineral Resources and Ore Reserves
20
Acknowledgements
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 and present. We acknowledge the Elders for
their resilience in paving the way for the generations that follow. We also acknowledge those who continue to
educate and empower to maintain and protect all aspects of Indigenous and First Nation heritage and culture.
Our FY24 Performance Data and Sustainability case studies are available to view at
www.evolutionmining.com.au/sustainability
Evolution’s 2024 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.
Front cover: Pictured at Ernest Henry Operations, Metallurgy Supervisor Lindsey Killer, finalist and runner-up in the
Exceptional Young Woman Award category at the 2024 Queensland Resources Council/WIMARQ Resources Awards for
Women, together with Metallurgist Eve Brodie (right in photo)
About this Report
This Annual Report is a summary of Evolution’s and
its subsidiaries’ operations, activities and financial
position as at 30 June 2024. 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
data quality, transparency and insights. In the
preparation of the Sustainability Report, information
was gathered, recorded, analysed and disclosed in a
way that is readily available for examination.
Assurance is undertaken on National Pollutant
Inventory (NPI) and greenhouse gas (GHG) emissions,
reported as part of the submission under the National
Greenhouse and Energy Reporting Act 2007 (NGER
Act) and Canada’s National Inventory Report (NIR)
and Greehouse Gas Reporting Program (GHGRP).
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.
Non-IFRS financial information
Investors should be aware that financial data in this
report includes ‘non-IFRS financial information’ under
ASIC Regulatory Guide 230 Disclosing non-IFRS
financial information published by ASIC and also
‘non-GAAP financial measures’ within the meaning
of Regulation G under the U.S. Securities Exchange
Act of 1934. Non-IFRS/non-GAAP measures in this
presentation include gearing, sustaining capital,
major project capital, major mine development,
production cost information such as All-in Sustaining
Cost and All-in Cost. Evolution believes this non-IFRS/
non-GAAP financial information provides useful
information to users in measuring the financial
performance and conditions of Evolution. The
non-IFRS financial information does not have a
standardised meaning prescribed by the Australian
Accounting Standards (‘AAS’) and, therefore, may not
be comparable to similarly titled measures presented
by other entities, nor should it be construed as an
alternative to other financial measures determined
in accordance with AAS. Investors are cautioned,
therefore, not to place undue reliance on any
non-IFRS/non-GAAP financial information and ratios
included in this presentation. Non-IFRS financial
information in this presentation has not been subject
to audit or review by the Company’s external auditor.
Sustainability Report
30
Welcome
33
About Evolution
42
About this Report
44
Our approach to Sustainability
46
Governance and Assurance
54
Safe and engaged workforce
66
Making Evolution a career highlight
74
Trusted partner in our communities
82
Responsible environmental stewardship
98
Glossary
125
Financial Report
127
Evolution Mining has evolved from
humble beginnings into a globally
relevant gold mining business with
a reputation of delivering value for
all stakeholders.
Evolution Mining Annual Report 2024 | 1
FY24 in review
Forward looking statement
This report, prepared by Evolution Mining Limited (or ‘the
Company’), includes forward looking statements. Often, but
not always, forward looking statements can generally be
identified by the use of forward looking words such as ‘may’,
‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’,
‘continue’ and ‘guidance’, or other similar words and may
include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated
production or construction commencement dates and
expected costs or production outputs. Forward looking
statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the
Company’s actual results, performance and achievements
to differ materially from any future results, performance or
achievements. Relevant factors may include, but are not
limited to, changes in commodity prices, foreign exchange
fluctuations and general economic conditions, increased
costs and demand for production inputs, the speculative
nature of exploration and project development, including
the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves, political and
social risks, changes to the regulatory framework within
which the Company operates or may in the future operate,
environmental conditions including extreme weather
conditions, recruitment and retention of personnel,
industrial relations issues and litigation.
Forward looking statements are based on the Company and
its management’s good faith assumptions relating to the
financial, market, regulatory and other relevant environments
that will exist and affect the Company’s business and
operations in the future. The Company does not give any
assurance that the assumptions on which forward looking
statements are based will prove to be correct, or that the
Company’s business or operations will not be affected in any
material manner by these or other factors not foreseen or
foreseeable by the Company or management or beyond the
Company’s control. Although the Company attempts and
has attempted to identify factors that would cause actual
actions, events or results to differ materially from those
disclosed in forward looking statements, there may be other
factors that could cause actual results, performance,
achievements or events not to be as anticipated, estimated
or intended, and many events are beyond the reasonable
control of the Company. Accordingly, readers are cautioned
not to place undue reliance on forward looking statements.
Forward looking statements in these materials speak only at
the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing
rules, in providing this information the Company does not
undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such
statement is based.
Sustainability
$419M
Clear pathway to meet our emissions reduction
commitment of 30% by 2030 and Net Zero by 20501
~12%
Reduction in emissions
against adjusted
FY20 baseline2
~13%
Improvement in TRIF
during the year to 7.74
6.8%
Indigenous employee
representation
$2.7B
Contribution to
the Australian and
Canadian economies3
19%
Female employees
Contribution to local and
regional businesses and
organisations including
$353M in direct spend
with local organisations
Net Zero
commitment
2 | Evolution Mining Annual Report 2024
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717koz
Gold production
68kt
$1,541M
$139M
Copper production
Operating mine
cash flow
Dividends declared
Operational and financial
Mineral Resources and Ore Reserves
32.7Moz
11.4Moz
4.1Mt
1.3Mt
Contained gold
8% increase
December 2023
Mineral Resources7
The FY24 achieved gold and copper prices were $3,190 per ounce
and $13,657 per tonne respectively
December 2023
Ore Reserves7
Contained gold
15% increase
Contained copper
134% increase
Contained copper
100% increase
$1,477/oz5
AISC
(US$975/oz)6
All-in Sustaining Cost
$422M
Statutory net profit
after tax
1 Net Zero commitment of 30% emissions reduction by 2030 and Net Zero emissions by 2050 against adjusted FY20 baseline. Emissions targets are related to
Scope 1 and Scope 2 only.
2 Assessed using market-based method. Update from preliminary value of 14% reduction reported in FY24 Directors’ Report following inclusion of Corporate and
Exploration data and completion of external verification process.
3 Economic contributions include supplier payments, wages, dividend payments, interest, taxes, royalties, community investment, payments to providers of capital and
payments to financial institutions (interest). Local and regional organisations are defined by postcode in relation to geographical proximity to Evolution mine sites.
4 TRIF: the frequency of total recordable injuries per million hours worked. Results are based on 12-month moving average (12mma). The reduction is against the FY23
adjusted baseline including Northparkes.
5 All-in Sustaining Cost (AISC) includes C1 cash cost, plus royalties, sustaining capital, general corporate and administration expenses on a per ounce sold basis.
6 Calculated using an average AUD:USD exchange rate of 0.66 for the 12 months of FY24.
7 As at 31 December 2023 and compared to the 31 December 2022 estimates. See the Mineral Resources and Ore Reserve section of this Report for further information.
Evolution Mining Annual Report 2024 | 3
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About Evolution Mining
Northparkes
NEW SOUTH WALES
Mt Rawdon
QUEENSLAND
Ernest Henry
QUEENSLAND
Cowal
NEW SOUTH WALES
Mungari
WESTERN AUSTRALIA
Red Lake
ONTARIO
Australia
Canada
Evolution Mining (‘Evolution’ or ‘the Company’) is a leading, globally relevant gold mining company
formed in November 2011, with more recent additional exposure to copper. Headquartered in Sydney,
New South Wales, Evolution is listed on the Australian Securities Exchange (ASX:EVN).
Our operations
Evolution operates six mines in Australia and Canada and in
financial year 2024 (FY24) produced 716,700 ounces of gold
and 67,862 tonnes of copper at an All-in Sustaining Cost of
$1,477 per ounce of gold – continuing to position us as one
of the lowest cost producers.5
Our operations include:
• Cowal open pit and underground gold operations located
350km west of Sydney, New South Wales, on the lands of
the Wiradjuri people.
• Ernest Henry, a large-scale, long-life underground
copper-gold asset located 38km north-east of
Cloncurry, Queensland, on the traditional lands of
the Mitakoodi people.
• Northparkes underground and open pit copper-gold mine
located 27km north-west of Parkes, New South Wales,
situated on the traditional lands of the Wiradjuri people of
the Upper Bogan River. We hold an 80% interest in
Northparkes, with Sumitomo Group holding the remaining
20% interest through a longstanding Joint Venture.
• Red Lake, an underground gold mine in north-western
Ontario and located in one of the highest-grade Archean
gold camps in Canada, situated on the traditional territory
of Treaty 3 on the lands of the Wabauskang and Lac Seul
First Nations and other knowledge holders.
• Mungari, a gold mining hub 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.
• Mt Rawdon, an open pit gold mine located 75km
south-west of Bundaberg, Queensland, surrounded by the
traditional lands of the Bailai, Gurang, Gooreng Gooreng
and Taribelang Bunda peoples.
Our purpose
To deliver long-term stakeholder
value through low-cost production in
a safe, 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
Respect
We trust each other, act honestly and
consider each other’s opinions
Accountability
It is my responsibility, I own it - good or bad
Excellence
We take pride in our work, deliver our
best and always strive to improve
Safety
Think before we act, every job, everyday
Our operations are located solely in Tier 1 jurisdictions
4 | Evolution Mining Annual Report 2024
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Our strategy
Since Evolution’s formation in November 2011, our purpose has been to deliver long-term stakeholder value
through low-cost production in a safe, environmentally and socially responsible way. To create a business that
prospers through the cycle, we:
Drive a
high-performing
culture with
values and
reputation as
non-negotiables
Integrate
sustainability
into everything
we do
Take appropriate
geological,
operational and
financial risks
Build a portfolio
of up to eight
assets in Tier 1
jurisdictions
generating
superior returns
Have financial
discipline centred
around margin
and appropriate
capital returns
In FY24, we achieved record financial performance
and continued to build our portfolio of assets with
the successful acquisition of the Northparkes copper
and gold asset in the Tier 1 jurisdiction of Central
West New South Wales, Australia. Key highlights for
FY24 include:
• Cowal underground mine reached commercial production.
• The long life of Ernest Henry was reinforced with
ongoing drill results demonstrating continuous
mineralisation from the main orebody up to 300m
north of the current Feasibility Study (FS) footprint.
These results are expected to drive Mineral Resource
and Ore Reserve growth within and adjacent to the
mine extension footprint.
• The Mungari 4.2 plant expansion project continued to
progress on budget and to schedule. This project
positions the operation to deliver strong cash flow
from a larger and lower cost production base.
• Red Lake started to show sustainable improvements to
enable positive cash generation and reliable delivery in
FY25, having achieved record mining tonnes under
Evolution ownership in the June 2024 quarter.
Production guidance for FY25 is 710,000 – 780,000 ounces
of gold and 70,000 – 80,000 tonnes of copper at an All-in
Sustaining Cost of $1,475 – $1,575 per ounce.8
8 FY25 guidance range calculated for continuing operations excluding Mt Rawdon, which will cease operations in FY25. All-in Sustaining Cost (AISC) includes C1 cash
cost, plus royalties, sustaining capital, general corporate and administration expenses on a per ounce sold basis.
In December 2023 we acquired an 80% interest in Northparkes Operations - a world class copper-gold resource located in
central west New South Wales
Evolution Mining Annual Report 2024 | 5
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In this, the thirteenth year of Evolution Mining,
we continued to successfully pursue our vision of
inspired people creating a premier gold company.
On behalf of the Board of Directors, I am pleased
to present the 2024 Annual Report and provide an
overview of what was, in many respects, a record
year for our Company.
Despite this, our performance was not where we wanted it
to be, and we did not meet our production and costs
targets. However, with the benefit of positive market
fundamentals and a strong portfolio of assets, 2024 was
characterised by a record financial performance, continued
deleveraging of the balance sheet and further investment in
project opportunities to grow our business. This is a
testament to our strategy and capital allocation discipline.
Importantly, we have achieved improvements across our
sustainability metrics, maintaining our sector-leading rating
with Sustainalytics, ISS and MSCI ESG and ongoing
inclusion in the Dow Jones Sustainability Index Australia.
We consider our sustainability performance to be integral
to our success and the safety, health and wellbeing of our
people is paramount. Our high-performance culture and
values underpin this. We want our people’s time at
Evolution to be a career highlight and recognise that
providing a safe, respectful and diverse workplace is key
to achieving this.
I am pleased to welcome Fiona Hick to our Board of
Directors, who joined our team as a Non-Executive Director
on 1 July 2024. Fiona’s industry experience and executive
insights will be welcomed around our Board table and I
look forward to her valuable contribution in 2025
and beyond.
Looking back at the last 13 years of Evolution, the global
environment and geopolitical context in which we are
operating today is remarkably different to when we first
set out as a small Australian company.
The long-term structural shifts underway globally are
fundamentally changing the world. Globalisation is being
replaced with nationalism and tribalism, and a critical
juncture in world geopolitics has been reached, the gravity
of which should not be underestimated.
Encouragingly, this global operating environment reinforces
the merits of Evolution’s strategy that has been in place
since our inception. Our six assets are situated in Tier 1
jurisdictions, which stands us in good stead in this
increasingly unstable global environment.
The spot price of gold increased 22% to $3,488 per ounce
in the 12 months to 30 June 2024, affording step gains on
previous years. The same can be said for copper, which
likewise achieved record highs this year.
Executive Chair’s letter
We have never been
better positioned to
benefit from the very
favourable markets
we find ourselves in.
Gold and copper prices
are high and there is
good reason to believe
they will go even higher.
6 | Evolution Mining Annual Report 2024
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With our increased exposure to copper, through the
successful acquisition of Northparkes and our ownership of
Ernest Henry, we are extremely well positioned to continue
to benefit from these commodity price highs.
Our acquisition of Northparkes, a long-life copper and gold
asset strategically located in central west New South
Wales, Australia, was aligned with our strategy and has
already delivered significant value.
Of note, Mt Rawdon, which has been part of Evolution
since our inception, this year recorded its final full year
of production, generating cash ahead of its planned
conversion to a pumped hydro power station.
As a business that seeks to prosper through the cycle, the
Board and I are proud that we were able to declare two
more dividends during FY24 to take our record to
23 consecutive dividends, returning over $1.2 billion to
shareholders since 2013. Year-on-year, our full year
dividend of seven cents per share - comprising, on a per
share basis, an interim dividend of two cents and a final
dividend of five cents - is up 75%. As we continue to
deleverage the balance sheet and maintain a disciplined
approach to our capital investment, we expect to see
further improvements in dividends.
We have never been better positioned to benefit from
the very favourable markets we find ourselves in. Gold
and copper prices are high and there is good reason to
believe they will go even higher. We have assembled an
outstanding portfolio of gold and copper assets, our
balance sheet is strong, and our investment grade rating
has been reaffirmed.
Our progress this year is a credit to our capable, committed
and hard working people. On behalf of the Board, our
thanks go to them for their inspiration and the role they are
playing in helping create a premier global gold company.
We are collectively focused on delivery and looking
forward to the year ahead.
Thank you for reading this Report and for your support
as a shareholder as we remain true to our purpose of
delivering long-term stakeholder value.
Yours faithfully
Jake Klein
Executive Chair
Evolution Mining Annual Report 2024 | 7
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Managing Director and CEO’s letter
The combined efforts of
the Evolution team in the
last year delivered
improved safety and
sustainability outcomes
and outstanding, record-
breaking financial results.
This year was a pivotal one for Evolution as we
increased our exposure to copper with the
acquisition of the high-quality, long-life Northparkes
Operations. We made important inroads in keeping
our people safe, advancing our sustainability
performance, as well as delivering improvements
in the capability of our Leadership Team. I am
pleased to present the 2024 Annual Report and
thank you for your ongoing investment in and
support of our Company.
Importantly, we continued to improve our safety
performance, with a ~13% reduction in TRIF over the last
year and a ~28% reduction in the last two years. We believe
there is always room for improvement and strive daily to
keep our people safe and healthy. This year, we continued
to effectively manage the material and critical risks for our
business. Our commitment to a Net Zero future is
advancing with a ~12% reduction in emissions2, as at the
end of FY24, against our reduction target of 30% by 2030
and Net Zero by 2050. So, with six years to go, we are
almost halfway to achieving our goal.
I am proud of our team’s ongoing commitment to
honouring and growing the relationships we have with our
stakeholders in each of the communities in which we
operate. First Nation partners, with whom we have
important ties gathered for an inaugural First Nations
summit in Queensland, affording us the unique opportunity
to humbly listen, learn and evolve in the process. Working
in partnership with our stakeholders in Australia and
Canada informs our decision making, with sustainability
integrated into everything we do.
Our low-cost production of 716,700 ounces at a
sector-leading AISC of $1,477 per ounce delivered over
$1.5 billion and $580 million of operating and net mine
cash flow, respectively.
We delivered a record underlying net profit of $482 million
which was up 135%. There were multiple financial records
achieved in the year including underlying EBITDA of $1,513
million, up 67%, and earnings per share of 22.0 cents, up
147% on the previous financial year.
The record earnings were mirrored by momentum shift
in cash generation. Group cash flow of $367 million
increased by $483 million, while our EBITDA margin
increased from 38% to 47%. This increase was achieved
after investing $740 million back into the business to
progress key projects. These include the mill expansion at
Mungari (Mungari 4.2), mine development at Red Lake,
underground mine development at Cowal and underground
infrastructure associated with the planned mine life
extension at Ernest Henry.
Cowal completed the payback of all its acquisition
cost and subsequent capital expenditure during FY24,
generating $294 million in net mine cash flow. When we
acquired Cowal in 2015 it was scheduled to close in 2024,
but through successful discoveries and development of the
underground we have added an additional 16 years,
extending the mine life to 2040.
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This year, Ernest Henry returned to its predictable and
reliable performance, having fully recovered from the FY23
weather event. In its second year of full Evolution ownership,
the operation has completely repaid all invested capital
and generated net mine cash flow of $334 million in FY24.
The mine extension feasibility study is progressing to plan
and will take into account the ongoing drilling success.
Recent drilling success has also reinforced the significant
growth options at Ernest Henry and demonstrate the
potential for the Bert orebody to be an additional mining
front at the operation.
Northparkes is proving to be an excellent addition to the
portfolio, contributing $74 million to net mine cash flow
since acquisition. Development on the E48 sub-level cave
started in July 2024, providing the mine with lower capital
intensity over the near term, while we continue to study the
optionality of the large resource base.
With Ernest Henry and Northparkes in the portfolio, copper
production now accounts for around 30% of Group revenue
providing cash flow stability during the price cycle for gold
and copper. In the near term, we expect to benefit from
forecast rising copper prices.
The Mungari expansion project, which will more than
double mill capacity, is on track and remains within
budget. Due for completion in March 2026, it positions
the operation to deliver strong cash flow from a larger
and lower-cost production base. Before major capital
investment in the expansion, Mungari generated net
mine cash flow of $67 million.
Improving the performance at Red Lake was a key focus
this year. This saw the site achieve its highest quarterly
ore mined under Evolution ownership, with 254,000 tonnes
mined in June 2024. Red Lake also established both
surface and underground ore stockpiles at the end of FY24,
strengthening its operational resilience moving into FY25.
It’s pleasing to see the sustainable improvements achieved
in FY24, which will enable positive cash generation
moving forward.
We have laid the foundations in FY24 for high margin, high
cash generation and expect this to continue in FY25. Our
AISC guidance for FY25 will remain one of the lowest in the
sector at $1,475 to $1,575 per ounce. This cost guidance is
for our continuing operations and excludes Mt Rawdon,
reflecting the anticipated cessation of its operations
during FY25.
Recently, we appointed Matt O’Neill, a former senior
executive at Glencore, as Chief Operating Officer and
Nancy Guay as Chief Technical Officer. Nancy joined
Evolution from Agnico Eagle, bringing deep technical
knowledge as well as relevant operational experience
in Canada.
The combined efforts of the Evolution team over the
past year delivered improved safety and sustainability
outcomes and outstanding, record-breaking financial
results. We started FY24 with the clear objective of
transitioning back to high-margin cash generation and
I am pleased to say we achieved this. We intend to
continue that momentum in FY25, through planned higher
production and at a sector leading cost position. The
favourable outlook on metal prices is also set to further
reward our shareholders.
As we reflect on the past year, the unwavering dedication
and hard work of our people has been one of the
cornerstones of our success. I extend my sincere thanks
to everyone at Evolution for their commitment and
contribution. I also wish to take this opportunity to
recognise the strength of our stakeholder relationships,
which have been a key contributor to our performance.
I am optimistic about the year ahead and look forward to
sharing our success with you.
Thank you for your continued support.
Yours faithfully
Lawrie Conway
Managing Director and Chief Executive Officer
Evolution Mining Annual Report 2024 | 9
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Board of Directors
Jacob (Jake) Klein
BCom Hons, ACA
Lawrence (Lawrie) Conway
BBus, CPA, GAICD
James (Jim) Askew
BEng (Mining), MEngSc, FAusIMM,
MSME (AIME)
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 $100 million and
was purchased by Eldorado Gold
Corporation in late 2009 for more
than $2 billion. It became an ASX/S&P
100 Company, operating two
award-winning gold mines and
engaging more than 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.
Managing Director and
Chief Executive Officer
Mr Conway was appointed Managing
Director and Chief Executive Officer
on 1 January 2023. His previous
position at Evolution was Finance
Director and Chief Financial Officer
(1 August 2014) and before that as a
Non-Executive Director.
Mr Conway has more than 34 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
across Australia, Papua New Guinea
and Chile with Newcrest Mining and
BHP Billiton.
His position prior to joining Evolution
was Executive General Manager –
Commercial and West Africa with
Newcrest Mining, where he was
responsible for Newcrest’s Group
Supply and Logistics, Marketing,
Information Technology and
Laboratory functions as well as
Newcrest’s business in West Africa.
Mr 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
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. He was appointed Chairman
of the Board at Robex Resources in
June 2024.
Mr Askew previously served on the
Board of Endeavour Mining Corporation.
Mr Askew is a Member of the Risk
and Sustainability Committee and
Member of the Nomination and
Remuneration Committee.
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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’s roles included
Vice President Minerals Marketing,
leadership positions in the metals
and coal marketing business and
Vice President Market Analysis and
Economics. She was also the
Co-Founder and Chair of Women
in Mining and Resources Singapore
(WIMARSG).
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 company Sims
Limited, 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 New Zealand. Ms Binns
previously served on the Board of
Cooper Energy.
Ms Binns is a Member of the
Audit Committee.
Non-Executive Director
Ms Hall is an experienced Non-Executive
Director who currently sits on the
Board of ASX-listed Perenti Group.
She is also the Chair of their Audit
and Risk Committee. Ms Hall is also
a Non-Executive Director of
Commonwealth Superannuation
Corporation and Western Power.
Ms Hall has previously served on
the boards of Core Lithium Limited,
Pioneer Credit Limited, the Insurance
Commission of Western Australia and
the Fremantle Football Club.
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 a Member of the
Risk and Sustainability Committee.
Andrea Hall
BCom, FCA, M. App Fin, GAICD
Non-Executive Director
Mr Attew is a mining industry veteran
who has dedicated 25 years to
the sector. He is the President and
Chief Executive Officer of Osisko
Gold Royalties.
Mr Attew previously served as
President and CEO of Liberty Gold
Corporation, 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 also served on the Board
of The Food Stash Foundation, a
Vancouver-based non-profit whose
mission is to create food and
nutritional security for local residents.
Mr Attew has extensive capital markets
experience from his time in investment
banking with the BMO Global Metals
and Mining Group. There 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.
Mr Attew is a Member of the Audit
Committee and the Nomination and
Remuneration Committee.
Jason Attew
BSc, MBA
Victoria (Vicky) Binns
BEng (Mining – Hons 1), FAusIMM,
GAICD, Grad Dip SIA
Evolution Mining Annual Report 2024 | 11
Annual Report
Sustainability Report
Financial Report
Fiona Hick
BEng (Materials Engineering – Hons),
BASc
Thomas (Tommy) McKeith
BSc (Hons), GradDip Eng
(Mining), MBA
Non-Executive Director
Ms Hick is an executive with 29 years’
experience in the minerals and energy
industries, having held senior roles at
Rio Tinto, Woodside Energy and
Fortescue Metals Group. During her
22-year career at Woodside, Ms Hick
occupied leadership positions in
the areas of health, safety and
environment, strategy and planning
and engineering. She was the
Executive Vice President of Woodside’s
Australian Operations and, more
recently, Chief Executive Officer
of Fortescue Metals Group. Ms Hick
was appointed to the Board of
Infrastructure WA, effective from
6 August 2024.
From 2021 to 2023, Ms Hick was the
President and Chair of the Advisory
Board for the Chamber of Minerals
and Energy (WA) and a member of
the University of Western Australia’s
Strategic Resources Committee
since 2019. She has also been a
Non-Executive Director of CO2CRC,
as well as a Member and Chair of the
Australian Petroleum Production and
Exploration Association (APPEA)
Environmental Science Committee.
Ms Hick joined the Board of Incitec
Pivot Limited on 1 September 2024.
Ms Hick is a Member of the Risk and
Sustainability Committee.
Non-Executive Director
Mr McKeith is a geologist with more
than 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 and Avoca
Resources Limited. He is currently the
Chairman of Arrow Minerals Limited,
Non-Executive Director of Clean Tech
Lithium Plc and Non-Executive
Chairman of Ordell Minerals Limited.
Mr McKeith previously served as
Non-Executive Chair of Genesis
Minerals Limited.
Mr McKeith is Chair of the Nomination
and Remuneration Committee.
Peter Smith
FAusIMM, GAICD, MBA
Non-Executive Director
Mr Smith is a senior executive with
more than 46 years’ experience
primarily in the resources industry.
He has worked in a range of sectors
including gold, coal, metals and
fertilisers. Mr Smith 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,
Evolution Mining (2011- 2013) and
VP Minerals Limited, Commissioner
of PT NHM Indonesia and Chairman
of Western Metals Limited. Mr Smith
joined the Board of Iluka Resources
Limited in June 2024.
Mr Smith is the Lead Independent
Director (effective 1 April 2024) and
Chair of the Risk and Sustainability
Committee.
12 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
13 years of Evolution
Cowal
Ernest Henry
Northparkes
Red Lake
Mungari
Mt Rawdon
Group total
Gold production (oz)
312,644
78,763
20,284
112,700
123,673
68,635
716,700
Copper production (t)
0
52,057
15,805
0
0
0
67,862
AISC ($/oz)12
1,338
(2,124)
(2,726)
2,802
2,536
2,165
1,477
Operating mine cash
flow ($M)
605
482
153
99
123
79
1,541
Sustaining capital
($M)
39
50
20
40
56
4
209
Mine cash flow before
major capital ($M)
566
432
133
59
67
75
1,332
Major capital ($M)
108
108
12
168
135
0
531
All metal production is reported as payable
9 See the Mineral Resources and Ore Reserves section of this Report for further information on the December 2023 Mineral Resource and Ore Reserves.
10 Estimated true width.
11 See ASX announcement titled ‘Exceptional results from Step-out drilling at Ernest Henry’, dated 18 July 2024 and available to view at www.evolutionmining.com.au
12 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.
2024
Cowal underground mine
successfully commissioned
and in commercial production
Highest-grade gold intercept ever
drilled at Ernest Henry, 51.7m
(43.0m etw10) grading 4.12g/t gold
and 1.65% copper from 93.5m11
2022 (cont.)
Acquisition of 100% of
Ernest Henry
Mt Rawdon Pumped Hydro Project
declared a Coordinated Project by
the Queensland Government
2022
Mineral Resources 30.3Moz
contained gold and 1.8Mt
contained copper
Ore Reserves 10.0Moz contained
gold and 661kt contained copper
2023
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
Acquisition of Northparkes
copper-gold mine completed
Mineral Resources9 estimated to
contain 32.7Moz of gold (+8%)
and 4.1Mt (+134%) of copper
Ore Reserves9 estimated to contain
11.4Moz of gold (+15%) and 1.3Mt
(+100%) copper
FY24 operational performance
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
First concentrate produced
(commissioned) at Mt Carlton
2015
Mineral Resources 14Moz and Ore
Reserves 5.9Moz contained gold
Acquisition of Cowal and Mungari
2016
Mineral Resources 14.2Moz and Ore
Reserves 7Moz contained gold
Acquisition of economic interest in
Ernest Henry
Pajingo divestment
2017
Edna May divestment
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
Completion of the acquisition of
Red Lake
2021
Mineral Resources 29.6Moz
contained gold and 1.44Mt
contained copper
Ore Reserves 10.3Moz contained
gold and 640kt contained copper
Acquisition of Kundana assets
elevates Mungari to cornerstone
asset and consolidates regional
resources
Evolution Mining Annual Report 2024 | 13
Annual Report
Sustainability Report
Financial Report
FY24 operational highlights
Ounces (gold)
Tonnes (copper)
Tonnes (copper)
Strong contributor
since acquisition
Acquired in December 2023,
Northparkes is an excellent addition
to the portfolio and contributed
$74.2 million to net mine cash flow
since acquisition (reported as
Evolution’s 80% attributable share).
The Board approved the Northparkes
E48 sub-level cave to progress to
Pre-Feasibility Study (PFS) phase in
June 2024, which is expected
to provide low capital intensity
production in the coming years.
Completion of the PFS is expected
by the end of the March quarter 2025.
Achieving record
gold production
Cowal achieved record annual gold
production under Evolution ownership
in FY24, producing 312,644 ounces at
an AISC of $1,338 per ounce. The
underground mine reached commercial
production in April 2024 and is
positioned to ramp up to two million
tonnes in FY25. As capital investment
for the underground mine reduces,
Cowal has transitioned to be a major
cash contributor for the business.
Evolution is progressing the proposed
extension of the current open pit
operation — the Open Pit Continuation
(OPC) Project — which seeks to extend
open pit mining by 10 years and the
total mine life by two years (from 2040
until 2042).
Consistent and reliable delivery
driving cash generation
Ernest Henry had a very good year as a
reliable and predictable operation
generating $334 million of cash flow.
The extension Feasibility Study
progresses to plan and will take into
account the ongoing drilling success.
Ernest Henry achieved a major
milestone of repaying all acquisition
and subsequent capital during the year.
The extension 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.13
13 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 2023
and available to view at www.evolutionmining.com.au
312,644
52,057
15,805
Ounces (gold)
Ounces (gold)
78,763
20,284
Cowal
Current mine life to 2040
Ernest Henry
Current mine life to 2040
Northparkes
Current mine life to 2054
14 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Ounces (gold)
Ounces (gold)
Ounces (gold)
Improving operational
performance
Red Lake demonstrated sustainable
improvements in FY24 to enable
positive cash generation and reliable
delivery in FY25.
The improved operational performance
saw the site achieve its highest
quarterly ore mined under Evolution
ownership, with 254,000 tonnes in the
June quarter.
Red Lake also established both surface
and underground ore stockpiles at
the end of FY24, strengthening its
operational resilience moving into FY25.
Expansion on track
and on budget
Mungari produced 123,673 ounces of
gold in FY24 and operating cash flow
improved year on year.
The $250 million Mungari 4.2 Project,
which aims to increase mill capacity at
Mungari from two million tonnes per
annum to 4.2 million tonnes per annum,
is progressing on schedule and budget.
Details on the Feasibility Study
outcomes are provided in the ASX
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.au
Transitioning to
end of mining
During the June quarter FY24,
Mt Rawdon transitioned from a 24-hour
mining operation to day shift mining in
preparation for the upcoming cessation
of mining in the first half of FY25.
Once mining from the pit is completed,
processing will continue until stockpiles
are exhausted by the end of FY25.
The Mt Rawdon Pumped Hydro
(MRPH) Project reached an important
milestone in May 2024 with the
submission of the Environmental
Impact Statement (EIS) to the
Queensland Coordinator-General’s
office for assessment.
Our Cowal Gold Operations
112,700
123,673
68,635
Red Lake
Current mine life to 2040
Mungari
Current mine life to 2038
Mt Rawdon
Current mine life to 2025
Evolution Mining Annual Report 2024 | 15
Annual Report
Sustainability Report
Financial Report
FY25 production, AISC and capital guidance
High margin, high cash flow generation is expected to continue in FY25, with guidance of 710,000-780,000 ounces of gold
and 70,000-80,000 tonnes of copper, at an All-in Sustaining Cost (AISC) of $1,475 – $1,575 per ounce.14 Cash flow will be
generated from the combination of the quality portfolio, sector leading cost position, exposure to copper, disciplined capital
allocation, and the outlook for commodity prices.
FY25 production, AISC and capital guidance is presented in the ASX release titled, ‘Record FY24 Profit and High Margin Cash
Flow into FY25’ dated 14 August 2024 and available to view at www.evolutionmining.com.au
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. It is located at an
advantageous point in the electricity network between
Brisbane and the energy intensive industrial hub of
Gladstone. Providing essential firming capacity in
Queensland’s transition to renewable energy, the storage
facility will be capable of powering up to two million
Queensland homes every evening.
The Feasibility Study, completed in FY24, demonstrated that
Mt Rawdon Pumped Hydro is economically and socially
attractive and will be the lowest-cost pumped hydro
generation project per megawatt of capacity in Australia. The
Environmental Impact Study for the Project was submitted to
the Queensland Government for assessment in May 2024. The
comprehensive study demonstrates a unique and low impact
pathway to convert Mt Rawdon from a gold mine nearing the
end of its mine life, to a large-scale, long-life renewable
energy generation and storage asset. It identifies the MRPH
Project as critical in the provision of secure, reliable and clean
power to central and south-east Queensland as ageing coal
fired generators are progressively retired.
The MRPH Project is advancing well and is expected to be
operational by the early 2030s. It will support the
Queensland Government’s target of achieving 70%
renewable energy by 2032, as well as the Federal
Government’s emissions reduction targets. 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.
FY25
guidance
Gold
production
(koz)
Copper
production
(kt)
AISC
($/oz)14,15
Sustaining
capital
($M)16
Major mine
development
capital ($M)17
Major project
capital
($M)18
Depreciation
& amortisation
($/oz)16,19
Group
710 – 780
70 – 80
1,475 – 1,575
215 – 270
150 – 200
365 – 430
900 – 1,000
Cowal
315 – 335
1,700 – 1,770
45 – 55
30 – 40
70 – 85
430 – 480
Ernest Henry
75 – 80
47 – 53
(2,500) – (2,300)
50 – 60
25 – 35
95 – 105
2,300 – 2,500
Northparkes
40 – 50
23 – 27
(1,600) – (1,400)
25 – 35
15 – 20
25 – 35
2,000 – 2,200
Mungari
125 – 135
2,550 – 2,650
45 – 55
30 – 45
110 – 130
550 – 600
Red Lake
125 – 145
2,500 – 2,600
40 – 50
50 – 60
65 – 75
850 – 950
Mt Rawdon
30 – 35
3,000 – 3,500
5 – 10
–
–
2,200 – 2,300
Corporate
–
110 – 125
5
–
–
3 – 4
We are very proud that Mt Rawdon has
the potential to be the first operating
gold mine that, upon reaching the end
of its mining life, is repurposed as a
significant renewable asset critical to
Australia’s clean energy future.
Jake Klein, Executive Chair
14 AISC includes C1 cash cost, plus royalties, sustaining capital, general corporate and administration expense, calculated per ounce sold. FY25 guidance range for Group.
AISC calculated for continuing operations — excluding Mt Rawdon, which will cease operations in FY25.
15 AISC and gold equivalent calculations are based on metal prices of $14,350/t for copper and $3,300/oz gold.
16 Sustaining capital relates to investment to maintain ongoing production per World Gold Council (WGC) guidelines.
17 Major mine development comprises costs incurred to establish access to ore bodies over the long-term.
18 Major project capital includes expenditure to establish new assets or a material change in production rates as per WGC.
19 Ernest Henry and Northparkes depreciation per equivalent gold ounce is $1,600 - $1,770/oz and $1,475 - $1,630/oz respectively.
FY25 production, AISC and capital guidance
16 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Discovery
Our Discovery team had another strong year in FY24, exploring successfully around operations and enhancing our
greenfields exploration portfolio. We hold highly prospective tenements and mineral rights in Australia across New
South Wales, Queensland and Western Australia, in Ontario in Canada as well as Nevada and Utah in the United States.
The tenements and mineral rights are owned by Evolution or subject to option, earn-in or Joint Venture agreements.
Our total expenditure for FY24 was $75 million, with a total of 296km of drilling completed across the portfolio.
In FY25 our discovery investment will continue to be directed to resource growth and new discovery.
We are committed to organic growth through the discovery of new gold and copper-gold deposits at our
operations and across our exploration projects. Our focus is to safely and sustainably find new deposits
with the potential to become long-life, low-cost mines to improve the quality of our portfolio.
Exploration drilling from underground at Ernest Henry returned exceptional results from extensional drilling to the
Bert orebody
Evolution Mining Annual Report 2024 | 17
Annual Report
Sustainability Report
Financial Report
20 See ASX announcement titled ‘Exceptional Results from Step-Out Drilling at Ernest Henry’, dated 18 July 2024 and available to view at www.evolutionmining.com.au
Cowal
Ernest Henry
Post-acquisition, FY24 resource
definition drilling at Northparkes
focused on infilling the underground
Mineral Resource comprising the E48
sub-level cave footprint. This drilling
will assist understanding potential
mining options, cave geometry and
subsequent mine design for these
areas. E48 drilling is set to continue
into FY25.
Discovery drilling at Major Tom and
E51 prospects, ~4km from the plant,
returned near-surface, high-grade
mineralised intercepts in a similar
geological position to other orebodies
on the mining lease. These prospects
will be a priority for further drilling in
FY25 to understand their potential to
provide future open pit ore sources.
FY24 resource definition drilling
focused on infill and extensional
drilling at the Cowal underground
on the Dalwhinnie, Regal and Manna
orebodies. This drilling provides key
geological information to de-risk
near-term production areas and test
extensional targets to grow the
Mineral Resource. Underground drilling
shows many of the underground
orebodies at Cowal are open in
multiple directions.
Early-stage exploration activities
continued across the Cowal regional
tenements focusing on the South
Cowal copper-gold and Western
Corridor gold targets.
Extensional drilling continued to show
the significant growth opportunities that
exist beyond the known mineralisation
footprint at Ernest Henry. Significant
assays results received from Bert20 and
Ernie Junior indicate both orebodies
remain open with strong potential for
Mineral Resource growth.
Underground drilling returned
exceptional results from Bert including a
hole with the highest-grade gold
intercept ever drilled at Ernest Henry.
Bert is a potential future production
target that could be mined
independently of the underground
materials handling system. Further
drilling will be completed in FY25 to
delineate the full extent of mineralisation
at both targets.
Northparkes
FY24 Discovery highlights
18 | Evolution Mining Annual Report 2024
Financial Report
Sustainability Report
Annual Report
Greenfields exploration
FY24 resource definition drilling
focused on Mineral Resource
conversion and infilling near-term
production areas at Lower Red Lake,
Upper Campbell, Lower Campbell
and Cochenour.
Discovery drilling focused on targets
proximal to planned mining fronts at
Upper Campbell and at the Inco zone
near Cochenour.
Regional exploration has developed
large-scale gold-in-till anomalies in the
Slate Bay area, with plans for drilling in
late FY25.
Mungari
Underground resource definition
drilling focused on the Xmas and
Strzelecki orebodies as well as the
recently discovered Genesis vein at
Kundana. The drilling was successful,
increasing the Mineral Resource for
Kundana and replacing mining
depletion in FY24.
The focus of drilling in FY25 will be
preparing near-term open pits for
mining, infilling and extending
underground Mineral Resources and
drilling new high-grade underground
discovery targets.
Red Lake
Exploration continued at the
100%-owned Lake St. Joseph Project
~200km to the east of Red Lake.
FY24 saw the delivery of key
geochemical datasets that have
narrowed our focus to two prospect
areas for follow-up sampling and
mapping in FY25.
In FY24 we added two high-quality
exploration projects to our portfolio.
In Canada, we entered an earn-in
agreement with Northern Superior
Resources Ltd (TSXV: SUP) (OTCQX:
NSUPF) over the October Gold Project,
~105km south-west of Timmins in the
Abitibi greenstone belt.
In Australia we entered an earn-in
agreement with private exploration
company Red Fox Resources Pty Ltd
over the Cloncurry North Project,
adjacent to our Ernest Henry
Operations. The objective is to discover
incremental copper-gold production to
fill latent capacity in the Ernest Henry
processing plant.
During the second half of the year
Evolution divested its interest of the
Cue JV in Western Australia to
Ramelius Resources (ASX: RMS).
Evolution Mining Annual Report 2024 | 19
Financial Report
Sustainability Report
Annual Report
Group Mineral Resources
As at 31 December 2023, Group Mineral Resources have
been estimated to contain 1.1 billion tonnes grading 0.91g/t
gold for 32.7 million ounces of gold and 640.9 million tonnes
grading 0.65% copper for 4.1 million tonnes of copper
(including the 80% portion of the Northparkes Mineral
Resource which is reported exclusive of the Northparkes Ore
Reserve). This is an increase of 2.3 million ounces of gold
(8%) and 2.4 million tonnes of copper (134%) compared with
the estimate as at 31 December 2022.
The Group Mineral Resource Statement as at 31 December
2023 is provided in Table 2 and Table 4. Mineral Resources
are reported inclusive of Ore Reserves with the exception of
Northparkes and exclude mined areas and areas sterilised by
mining activities.
Group Ore Reserves
As at 31 December 2023, Group Ore Reserves are estimated
to contain 404.3 million tonnes grading 0.88g/t gold for
11.4 million ounces of gold and 214.7 million tonnes grading
0.62% copper for 1.3 million tonnes of copper (net of mining
depletion of 884,000 ounces of gold and 48,000 tonnes of
copper). This represents an increase of 1.5 million ounces of
gold (15%) and 659,000 tonnes of copper (100%) compared
with the estimate as at 31 December 2022.
Mineral Resources and Ore Reserve growth since
Evolution’s inception
The contained gold content within Evolution’s reported
Mineral Resources and Ore Reserves inclusive of mining
depletion has grown by 369% (from 6.97Moz) and 228%
(from 3.49Moz) respectively since the Company’s formation
in November 2011, as shown in Figure 1 and Figure 2. In total,
Evolution has added 12.8 million ounces of gold to the
reported Mineral Resource, predominantly by drilling, along
with modelling and optimisation updates. This growth is
additional to 24.4 million ounces from acquisitions, reinforcing
our strategy of identifying and acquiring assets with strong
mineral endowment where value can be unlocked.
Mineral Resources and Ore Reserves
Value creation through organic growth
6,967
24,439
-2,154
-9,337
12,767
32,682
Acquisitions
Divestments
Depletion
Growth
Evolution
Nov 2011
Evolution
Dec 2023
Figure 1: Evolution Mineral Resources growth since inception – contained gold (koz)
20 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
3,486
6,731
-815
-8,304
10,351
11,449
Evolution
Nov 2011
Evolution
Dec 2023
Acquisitions
Divestments
Depletion
Growth
Figure 2: Evolution Group Ore Reserves growth since inception – contained gold (koz)
A scenic perspective of Ernest Henry Operations through the eyes of Craig Andrew the winner of this year’s photo competition
Evolution Mining Annual Report 2024 | 21
Annual Report
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Financial Report
3,546
0
-13
-206
812
4,139
Evolution
Nov 2011
Evolution
Dec 2023
Acquisitions
Divestments
Depletion
Growth
939
0
-5
-139
525
1,320
Evolution
Nov 2011
Evolution
Dec 2023
Acquisitions
Divestments
Depletion
Growth
Figure 3: Evolution Group Mineral Resources growth since inception – contained copper (kt)
Figure 4: Evolution Group Ore Reserves growth since inception – contained copper (kt)
Since the Company’s formation in November 2011, Evolution’s Group Mineral Resources and Ore Reserves have
grown by 4.1 million tonnes of copper (Figure 3) and 1.3 million tonnes (Figure 4) of copper respectively, including mining
depletion from in situ Mineral Resources and Ore Reserves of 206,000 tonnes and 139,000 tonnes respectively. In addition
to acquiring Ernest Henry and Northparkes, the Company has added 525,000 tonnes of copper to the estimated Ore
Reserve, predominantly from drilling at Ernest Henry, along with modelling and optimisation updates.
22 | Evolution Mining Annual Report 2024
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Sustainability Report
Financial Report
Commodity price assumptions
We annually review commodity price assumptions used to
estimate our reported Group Mineral Resource and Ore
Reserve. This review includes historic and forward looking
analysis of gold and copper pricing and a review of pricing
used by peer companies. Evolution’s recommended
guidance for price assumptions for the cut-off grade and
optimisation of the December 2023 Mineral Resource and
Ore Reserve are provided below. An AUD:CAD exchange
rate assumption of 0.9 has been used for Red Lake.
• Gold: $1,800 per ounce (oz) for Ore Reserves, $2,500/oz
for Mineral Resources.
• Silver: $25.00/oz for Ore Reserves, $27.50/oz
for Mineral Resources.
• Copper: $9,000 per tonne (t) for Ore Reserves, $12,000/t
for Mineral Resources.
This year’s price assumptions for Mineral Resource
reporting have increased by ~14% for gold from $2,200/oz
to $2,500/oz gold and by 29% by 20% for copper from
$10,000/t copper to $12,000/t copper.
This year’s price assumptions for gold and copper for Ore
Reserve cut-off grade and optimisation have increased by
9% from $1,650/oz to $1,800/oz gold and by 29% from
$7,000/t copper to $9,000/t copper.
Mineral Resources
All open pit Mineral Resource estimates (except for
Northparkes and Marsden) are reported within optimised
pit shells which have been developed using a $2,500/oz
price assumption and take into account forecast mining
costs and metallurgical recoveries. Northparkes Open Pit
Mineral Resource includes all material within designed pit
shells above an economic cut-off grade; cut-off grades are
0.65g/t gold for E44 and 0.34% CuEq for E31 and have
been calculated based on a US$3.30/lb copper price,
US$1,350/oz gold price and 0.73 AUD:USD conversion rate.
The Marsden Mineral Resource is reported based on a net
smelter return (NSR) value calculation that considers mining
and processing costs, metallurgical recoveries, royalties,
transport and refining costs. The NSR produces a value
cut-off (by block) that is approximately equivalent to a
0.2g/t gold cut-off, which has been calculated using a
$1,800/oz price assumption for gold and a $9,000/t price
assumption for copper.
All underground Mineral Resources (except Ernest Henry)
are reported within underground mining shapes (MSOs)
using a $2,500/oz price assumption and take into account
forecast mining costs and metallurgical recoveries. The
Ernest Henry Mineral Resource estimate is reported within
an interpreted 0.7% copper envelope. All material inside
this interpreted 0.7% copper envelope, inclusive of low
grade or waste material, is contained within the reported
Mineral Resource.
Ore Reserves
Evolution’s reported Ore Reserves are supported by
Pre-Feasibility and/or Feasibility studies.
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 $1,800 to $2,650/oz and/or copper prices
from $9,000 to $12,000/t and considers a range of financial
metrics including AISC, Net present value (NPV) and Free
cash flow (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. Details of the optimisation and financial
parameters used for each asset are summarised below.
• Cowal Ore Reserve cut-off grade and the optimisation of
the E46, GR and underground deposits used a $1,800/oz
gold price assumption. Optimisation of E41 and E42 Stage
I was conducted at gold price assumptions of $1,584/oz
and $1,944/oz respectively to ensure minimum mining
width was exceeded and to maximise operating margin.
• The Marsden Ore Reserve has been reported using an
NSR cut-off, which takes into account ore haulage, ore
processing and administration costs, concentrate costs,
metallurgical recoveries, metal prices and royalties. The
breakeven NSR value equates approximately to a 0.3g/t
gold cut-off. The Ore Reserve estimate was developed
using a $1,350/oz gold price and a $6,000/t copper price.
• Northparkes’s Ore Reserve is based on a variety of
different studies (Pre-Feasibility and Feasibility) over a
10-year period. Price assumptions for copper and gold
range from US$2.75/lb to US$3.77/lb and US$1,250/oz to
US$1,750/oz respectively. Exchange rate assumptions
AUD:USD ranged between 0.72 and 0.78.
• The Ernest Henry Ore Reserve estimate uses an NSR
calculation to assess revenue. The NSR accounts for
processing costs, concentrate specification, transport
costs, royalty payments, treatment and refining charges.
Revenue generation for the Ore Reserve was assessed
using price assumptions between $7,000/t and $12,000/t
for copper and between $1,600/oz and $2,400/oz
for gold.
• The Mungari Ore Reserve estimate was evaluated at a
revenue gold price of $2,500/oz. The Open Pit Reserve
estimates were optimised at a gold price of between
$1,800 and $2,400/oz. The Underground Ore Reserve
estimate was optimised with a cut-off grade based on
$1,800/oz gold price with incrementally profitable
material included at $2,500/oz revenue gold price.
• Red Lake Ore Reserve stoping cut-off grades have been
updated for Lower Red Lake, Cochenour, HG Young and
McFinley, using a $1,800/oz price assumption taking into
account mining, processing general and administrative
costs. The Ore Reserve stoping cut-off grade for Upper
Campbell and Upper Red Lake has remained unchanged
from last year and was developed using a gold price of
$1,450/oz. A foreign exchange rate of 0.9 AUD:CAD has
been used at Red Lake.
• Mt Rawdon Ore Reserve estimate is reported within a final
pit design which has been developed using an $1,800/oz
gold price assumption.
All prices are in AUD unless otherwise stated.
Evolution Mining Annual Report 2024 | 23
Annual Report
Sustainability Report
Financial Report
JORC 2012 and ASX Listing Rules
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
external review by qualified professionals. All Competent
Persons named by Evolution are suitably qualified and
experienced as per minimum acceptable requirements
defined in the JORC Code 2012 Edition. Prior to the public
release of the Mineral Resource and Ore Reserve estimates,
Competent Persons, experience and qualifications are
reviewed by Evolution’s Mineral Resource and Ore
Reserve Committee.
Competent Persons’ statement
The information in this Report that relates to the Mineral
Resources and Ore Reserves listed in Tables 1-5 is sourced
from Evolution’s Annual Mineral Resource and Ore Reserve
Statement as at 31 December 2023 and dated 14 February
2024. It 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, Glen Williamson who
is employed by AMC Consultants Pty Ltd and Blake Callinan,
who departed Evolution subsequent to the publication of
the aforementioned Annual Mineral Resource and Ore
Reserve Statement) and is a Member or Fellow of the
Australasian Institute of Mining and Metallurgy (AusIMM),
Australian Institute of Geoscientists (AIG) or Recognised
Professional Organisation (RPO) and consents to the
inclusion in this report of the matters based on their
information in the form and context in which it appears.
Each person named in the table below has sufficient
experience which is relevant to the style of mineralisation
and types of deposits under consideration and to the
activity which they have undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’.
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 new information or data
that materially affects the information contained in the
Annual Mineral Resource and Ore Reserve Statement as at
31 December 2023, dated 14 February 2024 and available to
view on Evolution’s website at www.evolutionmining.com.au/
asx-announcements/ except for changes due to normal
mining depletion during the six months ended 30 June 2024.
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 release.
Lizard overlooking the open pit at our Cowal Gold Operations, captured by Rosie Garrill, as part of our annual photo competition
24 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Deposit
Competent Person
Membership
Status
Member number
Cowal Mineral Resource
Ben Reid
AusIMM
Member
991804
Cowal Open Pit Ore Reserve
Dean Basile
AusIMM
Chartered Professional
(Mining)
301633
Cowal Underground Ore Reserve
Ryan Bettcher
AusIMM
Member
310517
Northparkes Open Pit Mineral Resource
Geoff Smart
AusIMM
Member
106459
Northparkes Open Pit Ore Reserve
Sam Ervin
AusIMM
Member
335108
Northparkes Underground Mineral Resource
David Richards
AusIMM
Member
203408
Northparkes Underground Ore Reserve
Sarah Webster
AusIMM
Chartered Professional
(Geotechnical Engineering)
228953
Northparkes Underground Ore Reserve
Mark Flynn
AusIMM
Member
326289
Red Lake Mineral Resource
Alain Mouton
Professional Geoscientists
of Ontario
Member
3782
Red Lake Ore Reserve
Brad Armstrong
Professional Engineers - Ontario
Member
100152392
Mungari Mineral Resource
Brad Daddow
AIG
Member
7736
Mungari Open Pit Ore Reserve
Blake Callinan
AusIMM
Member
992387
Mungari Underground Ore Reserve
Blake Callinan
AusIMM
Member
992387
Ernest Henry Mineral Resource
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
Member
309295
Marsden Mineral Resources
James Biggam
AusIMM
Member
112082
Marsden Ore Reserve
Glen Williamson
AusIMM
Fellow
106019
Table 1: Competent Persons list for the December 2023 Mineral Resources and Ore Reserve estimates
Evolution Mining Annual Report 2024 | 25
Annual Report
Sustainability Report
Financial Report
Gold
Measured
Indicated
Inferred
Total Resource
CP9
December 22
Resources
Project
Type
Cut-off
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Gold metal
(koz)
Cowal1
Stockpiles
0.35g/t Au
46.4
0.51
763
2.0
0.65
42
-
-
-
48.4
0.52
805
1
645
Cowal2
Open pit
0.35g/t Au
-
-
-
172.0
0.85
4,691
30.0
0.79
763
202.0
0.84
5,455
1
5,510
Cowal3
UG
1.5g/t Au
-
-
-
21.7
2.50
1,741
13.1
2.37
998
34.8
2.45
2,738
1
2,685
Cowal1
Total
46.4
0.51
763
195.6
1.03
6,474
43.1
1.27
1,761
285.1
0.98
8,998
1
8,840
Ernest Henry4
Total
0.7% Cu
30.3
0.82
798
36.7
0.78
920
30.1
0.69
670
97.1
0.76
2,388
2
2,292
Mungari1
Stockpiles
-
-
-
3.0
0.60
58
0.0
1.14
2
3.1
0.60
59
Mungari2
Open pit
0.29 – 0.33g/t Au
-
-
-
75.6
0.97
2,347
28.3
1.02
926
103.9
0.98
3,273
3
2,758
Mungari3
UG
1.46 – 2.47g/t Au
1.5
4.63
219
8.6
4.34
1,199
8.7
3.98
1,120
18.8
4.20
2,538
3
2,580
Mungari1
Total
1.5
4.63
219
87.2
1.29
3,603
37.1
1.72
2,048
125.8
1.45
5,870
3
5,338
Red Lake1, 3
Total
2.5 – 3.3g/t Au
-
-
-
32.4
6.89
7,174
22.7
6.10
4,456
55.1
6.56
11,631
4
12,342
Mt Rawdon1
Total
0.23g/t Au
5.9
0.30
57
3.7
0.65
77
-
-
-
9.5
0.44
134
5
478
Marsden5
Total
~0.2g/t Au
-
-
-
119.8
0.27
1,031
3.1
0.22
22
123.0
0.27
1,053
6
1,053
Subtotal
84.0
0.68
1,837
475.4
1.26
19,279
136.2
2.05
8,957
695.7
1.34
30,073
30,343
Northparkes6
Open pit
Various
7.3
1.05
246
2.4
1.2
93
0.1
1.16
6
9.8
1.09
345
7
-
Northparkes7
UG
Various
192
0.19
1,153
172.5
0.15
832
46.5
0.19
280
410.9
0.17
2,264
8
-
Northparkes8
Total
199.3
0.22
1,398
174.9
0.16
925
46.6
0.19
285
420.8
0.19
2,609
-
Total
283.3
0.36
3,235
650.3
0.97
20,205
182.8
1.57
9,242
1116.4
0.91
32,682
30,343
Table 2: Group Mineral Resource statement for contained gold as at 31 December 2023
Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding.
“UG” denotes underground
1 Includes stockpiles.
2 Open Pit Mineral Resource reporting shells were optimised using a gold price of $2,500/oz. All material which meets or exceeds the cut-off grade within the developed pit shells is included in the reported Mineral Resource.
3 Underground Mineral Resource reporting shapes were developed using a gold price of $2,500/oz; all material which falls within optimised mining shapes inclusive of internal waste or low grade is included in the reported Mineral Resource.
4 Ernest Henry Operations Mineral Resources are reported within an interpreted 0.7% copper mineralised envelope which includes internal waste and low-grade material.
5 Marsden Mineral Resource is reported based on an NSR value calculation that considers mining and processing costs, metallurgical recoveries, royalties, transport and refining costs. The NSR produces a value cut-off (by block) that is approximately equivalent to
a 0.2g/t gold cut-off.
6 Northparkes Open Pit Mineral Resource includes all material within designed pit shells above an economic cut-off grade; cut-off grades are 0.65g/t gold for E44 and 0.34% CuEq for E31 and have been calculated based on US$3.30/lb copper, US$1,350/oz gold
and 0.73 AUD:USD conversion rate.
7 Northparkes Underground Mineral Resource metal price and exchange rate assumptions vary by project; reporting shapes were developed using price assumptions between US$1.69 - US$3/lb copper, US$660 - US$1350/oz gold and an $AUD:$USD conversion
rate of 0.73 - 0.75. Northparkes underground cut-off grades are reported within 0.4% copper grade shells with the exception of E22 using $18NSR, E26 L2 using $40NSR and MJH using $25NSR.
8 The reported Mineral Resource shown for Northparkes is exclusive of Ore Reserves. The values reported reflect the 80% portion attributable to Evolution Mining.
9 Mineral Resources Competent Persons (CPs) are: 1. Ben Reid; 2. Phil Micale; 3. Brad Daddow; 4. Alain Mouton; 5. Mathew Graham-Ellison; 6. James Biggam; 7. Geoff Smart; 8. David Richards.
26 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Gold
Proved
Probable
Total Resource
CP10
December 22
Resources
Project
Type
Cut-off
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Tonnes
(Mt)
Gold
grade
(g/t)
Gold
metal
(koz)
Gold metal
(koz)
Cowal1
Stockpile
0.45g/t Au
40.4
0.52
681
2.0
0.65
42
42.4
0.53
723
1
575
Cowal2
Open pit
0.45g/t Au
-
-
-
73.6
1.00
2,376
73.6
1.00
2,376
1
2,585
Cowal3
UG
0.6 – 1.8g/t Au
-
-
-
18.7
2.27
1,364
18.7
2.27
1,364
2
1,169
Cowal1
Total
40.4
0.52
681
94.3
1.25
3,783
134.6
1.03
4,463
4,329
Ernest Henry4
UG
0.50 – 0.75% CuEq
24.6
0.62
491
49.9
0.36
573
74.5
0.44
1,064
3
495
Mungari1
Stockpile
0.45g/t Au
-
-
-
1.1
0.83
28
1.1
0.83
28
4
Mungari5
Open pit
0.39 – 0.56g/t Au
-
-
-
33.2
1.05
1,121
33.2
1.05
1,121
4
703
Mungari6
UG
2.18 – 3.63g/t Au
0.4
4.42
60
2.7
4.39
385
3.1
4.40
445
4
535
Mungari1
Total
0.4
4.42
60
36.9
1.29
1,534
37.4
1.33
1,595
1,238
Red Lake1, 7
Total
2.5 – 4.1g/t Au
-
-
-
12.4
6.87
2,748
12.4
6.87
2,748
5
2,878
Mt Rawdon1
Open pit
0.32g/t Au
1.9
0.41
25
3.3
0.70
75
5.2
0.59
100
6
216
Marsden8
Open pit
0.3g/t Au
-
-
-
65.2
0.39
817
65.2
0.39
817
7
817
Subtotal
67.3
0.58
1,258
262.2
1.13
9,530
329.4
1.02
10,787
9,973
Northparkes1
Stockpile
0.38 – 0.58% CuEq
3.1
0.32
32
3.1
0.32
32
8
-
Northparkes9
Open pit
0.33 – 0.50% CuEq
8.4
0.50
134
1.3
0.30
12
9.7
0.47
147
8
-
Northparkes9
UG
0.38 – 0.58% CuEq
0.6
0.37
7
61.6
0.24
477
62.2
0.24
484
9,10
-
Northparkes1
Total
12.1
0.44
173
62.9
0.24
489
75.0
0.27
662
-
Total
79.4
0.56
1,430
324.9
0.96
10,019
404.3
0.88
11,449
9,973
Table 3: Group Ore Reserve statement for contained gold as at 31 December 2023
Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding.
1 Includes stockpiles.
2 Cowal open pit Ore Reserves are reported with respect to the declared Mineral Resource from December 2023. E42, E41, E46 and GRE open pit Ore Reserves are supported by the OPC Feasibility Study completed in June 2023 that demonstrates the proposed
mine plans and schedules are economically viable. E46 and GR were optimised using a $1,800/oz gold price assumption. E41 and E42 Stage I were optimised using gold price assumptions of $1,584/oz and $1,944/oz respectively. The Cowal open pit Ore Reserves
are economically tested at up to $2,650/oz and consider updated modifying factors and depletion.
3 Cowal underground Ore Reserve has been optimised using a $1,800/oz price assumption, economically tested at up to $2,650/oz and considers updated modifying factors and depletion. The Cowal underground Ore Reserve includes development material at an
incremental cut-off grade of 0.6g/t gold.
4 Ernest Henry reported 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 February 2023 and available to view at www.evolutionmining.com.au
The applied flow model cut-off grades of 0.50% and 0.75% copper equivalent (CuEq) are determined through an economic evaluation process which considers the net smelter return (NSR) and operating costs. The utilised copper equivalent equation is: CuEq = Cu
+ Au NSR/56.4 where; Au NSR = 38.5 * Au - 0.047.
5 Mungari open pit Ore Reserve cut-off varies from 0.39g/t gold to 0.65g/t gold; the weighted average cut-off is 0.50g/t gold. Gold prices between $1,800 and $2,400/ounce were used to calculate cut-off grades for the open pit Ore Reserve estimate.
6 Mungari underground Ore Reserve cut-off varies from 2.80g/t gold to 3.63g/t gold; the weighted average cut-off is 3.19g/t gold. Gold price of $1,800 was used to calculate cut-off grades for the underground Ore Reserve estimate.
7 Red Lake Ore Reserve has been evaluated using an $1800/oz price, except for the Upper Campbell and Upper Red Lake regions which have been re-reported this year using previous price assumptions of $1,600/oz. In 2024 a ‘Hill of Value’ study is scheduled to
optimise the mine plan and cut-off criteria throughout the operation.
8 The Marsden Ore Reserve has been reported using an NSR cut-off which takes into account ore haulage from Marsden to Cowal, ore processing costs at Cowal, general and administration costs, treatment and refining costs, concentrate costs, metallurgical
recoveries, metal payabilities, metal prices and royalties. The breakeven NSR value equates approximately to a 0.3g/t gold cut-off. The Ore Reserve estimate was developed using a $1,350 per ounce gold price and a $6,000/t copper price.
9 Northparkes Ore Reserve is based on Pre-Feasibility and Feasibility Studies completed at different times using differing price assumptions. Copper price assumptions vary between US$2.75-3.77/lb, gold price assumptions vary between US$1,250-1,750/oz and
AUD:USD exchange rates used were between 0.73-0.78. The values reported reflect the 80% portion attributable to Evolution Mining.
10 Group Gold Ore Reserve Competent Persons (CPs) Notes refer to 1. Dean Basile (Mining One); 2. Ryan Bettcher; 3. Michael Corbett; 4. Blake Callinan; 5. Brad Armstrong; 6. Ben Young; 7. Glen Williamson; 8. Sam Ervin; 9. Mark Flynn; 10. Sarah Webster.
Evolution Mining Annual Report 2024 | 27
Annual Report
Sustainability Report
Financial Report
Copper
Measured
Indicated
Inferred
Total Resource
CP6
December 22
Resources
Project
Type
Cut-off
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Copper
metal (kt)
Ernest Henry1
Total
0.7% Cu
30.3
1.39
422
36.7
1.33
487
30.1
1.18
354
97.1
1.30
1,263
1
1,207
Marsden2
Total
~0.2g/t Au
-
-
-
119.8
0.46
553
3.1
0.24
7
123.0
0.46
560
2
560
Subtotal
30.3
1.39
422
156.5
0.66
1,040
33.2
1.09
362
220.1
0.83
1,823
1,767
Northparkes3
Open pit
Various
7.3
0.16
12
2.4
0.03
1
0.1
0.03
0
9.8
0.12
12
3
-
Northparkes4
UG
Various
192.0
0.58
1,116
172.5
0.54
923
46.5
0.57
265
410.9
0.56
2,304
4
-
Northparkes5
Total
199.3
0.57
1,128
174.9
0.53
924
46.6
0.57
265
420.8
0.55
2,316
-
Total
229.6
0.68
1,550
331.4
0.59
1,963
79.8
0.78
626
640.9
0.65
4,139
1,767
Table 4: Group Mineral Resource Statement for contained copper as at 31 December 2023
Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding.
1 Ernest Henry Operations Mineral Resources are reported within an interpreted 0.7% copper mineralised envelope which includes internal waste and low-grade material.
2 Marsden Mineral Resource is reported based on an NSR value calculation that considers mining and processing costs, metallurgical recoveries, royalties, transport and refining costs into account. The NSR produces a value cut-off (by block) that is approximately
equivalent to a 0.2g/t gold cut-off.
3 Northparkes Open Pit Mineral Resource includes all material within designed pit shells above an economic cut-off grade; cut-off grades are 0.65g/t gold for E44 and 0.34% CuEq for E31 based on US$3.30/lb copper, US$1,32/oz gold and 0.73 AUD:USD conversion rate.
4 Northparkes Underground Mineral Resource metal price and exchange rate assumptions vary by project, reporting shapes were developed using price assumptions of US $1.69 - US$3/lb copper, US$660 - US$1350/oz gold and an AUD:USD conversion rate of 0.73
- 0.75. Northparkes underground cut-off grades are reported within 0.4% copper grade shells with the exception of E22 using $18NSR, E26 L2 using $40NSR and MJH using $25NSR.
5 The reported Mineral Resource shown for Northparkes is exclusive of Ore Reserves. The values reported reflect the 80% portion attributable to Evolution Mining.
6 Group Copper Mineral Resource Competent Persons (CPs) Notes refer to 1. Phil Micale; 2. James Biggam; 3. Geoff Smart; 4. David Richards.
28 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Copper
Proved
Probable
Total Resource
CP5
December 22
Resources
Project
Type
Cut-off
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Tonnes
(Mt)
Copper
grade
(%)
Copper
metal
(kt)
Copper metal
(kt)
Ernest Henry1
UG
0.50 – 0.75% CuEq
24.6
1.08
267
49.9
0.59
297
74.5
0.76
563
1
290
Marsden2
Open pit
0.3g/t Au
-
-
-
65.2
0.57
371
65.2
0.57
371
2
371
Subtotal
24.6
1.08
267
115.1
0.58
668
139.7
0.67
934
661
Northparkes3
Stockpiles
0.33 – 0.55% CuEq
3.1
0.31
10
-
-
-
3.1
0.31
10
-
Northparkes4
Open pit
0.34 – 0.50% CuEq
8.4
0.35
30
1.3
0.31
4
9.7
0.35
33
3
-
Northparkes4
UG
0.38 – 0.58% CuEq
0.6
0.49
3
61.6
0.55
340
62.2
0.55
343
4,5
-
Northparkes
Total
12.1
0.35
42
62.9
0.55
344
75
0.51
386
-
Total
36.7
0.84
309
177.9
0.57
1,011
214.7
0.62
1,320
661
Table 5: Group Copper Ore Reserve statement for contained copper as at 31 December 2023
Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding.
1 Ernest Henry reported 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
The applied flow model cut-off grades of 0.50% and 0.75% copper equivalent (CuEq) are determined through an economic evaluation process which considers the NSR and operating costs. The utlised copper equivalent equation is: CuEq = Cu + Au NSR/56.4 where;
Au NSR = 38.5 * Au - 0.047.
2 Marsden Ore Reserve is reported based on an NSR value calculation that considers ore haulage from Marsden to Cowal, ore processing costs at Cowal, general and administration costs, treatment and refining costs, concentrate costs, metallurgical recoveries, metal
payabilities, metal prices, and royalties. The breakeven NSR value equates approximately to a 0.3g/t gold cut-off. The Ore Reserve estimate was developed using a $1,350 per ounce gold price and a $6000/t copper price.
3 Includes stockpiles.
4 Northparkes Ore Reserve is based on pre-feasibility and feasibility studies completed at different times using differing price assumptions. Copper price assumptions vary between US$2.75-3.77/lb, Gold price assumptions vary between US$ 1250-1750/oz and
$AUD:$USD exchange rates used were between 0.73-0.78. The values reported reflect the 80% portion attributable to Evolution Mining.
5 Group Copper Ore Reserve Competent Persons (CPs) Notes refer to 1. Michael Corbett; 2. Glen Williamson; 3. Sam Ervin; 4. Mark Flynn; 5. Sarah Webster.
Evolution Mining Annual Report 2024 | 29
Annual Report
Sustainability Report
Financial Report
Sustainability -
Integrated into
everything we do
Sustainability Report 2024
Mungari Sustainability Graduate in the field
Welcome
33
Welcome to Evolution’s
FY24 Sustainability Report
33
Chair of the Risk and Sustainability
Committee’s letter
34
FY24 Sustainability performance targets
36
About Evolution
42
About this Report
44
Boundary and scope
44
Reporting frameworks
44
Information integrity and report audit
44
Our approach to Sustainability
46
Our Material Sustainability topics
49
Management approach information
49
Materiality assessment process
49
Sustainability Materiality Matrix
50
Governance and Assurance
54
Governance and Ethics
54
Crisis response
58
Cyber security
60
Sustainable procurement
62
Modern Slavery and Human Rights
64
Safe and engaged workforce
66
Work health, safety and wellbeing
66
Contents
Making Evolution a career highlight
74
Diversity and Inclusion
76
Talent attraction, retention and
employee engagement
78
Trusted partner in our communities
82
Cultural heritage and Indigenous
stakeholder outcomes
84
Community and stakeholder engagement
88
Responsible environmental stewardship
98
Climate Risk and Resilience
100
Energy and Emissions
108
Tailings management
117
Environmental impacts and Waste
(including Circular economy)
119
Water management
121
Land use and Biodiversity
123
Mine closure, rehabilitation and legacy
124
Glossary
125
How to navigate this report
This interactive PDF allows you to access information easily:
The
denotes a Material topic.
• Navigate to different sections of the Report by using the Contents page or
bottom navigation bar.
• Return to this Contents page by clicking the bottom left icon.
• Click on hyperlinks to reference content externally or within this report.
Evolution Mining Annual Report 2024 | 31
FY24 ESG Performance Data
FY24 Case Studies
Acknowledgements
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 are thankful to be working and living
on the Country, lands and waterways comprising:
• The Gadigal people of the Eora Nation at Sydney;
• The Wiradjuri people at Cowal;
• The Mitakoodi people at Ernest Henry;
• The Marlinyu Ghoorlie people and other knowledge
holders at Mungari;
• The Port Curtis Coral Coast Trust comprising the Bailai,
Gurang, Gooreng Gooreng and Taribelang Bunda peoples
at Mt Rawdon;
• The Wiradjuri people of the Upper Bogan River at
Northparkes1; and
• The Wabauskang and Lac Seul First Nations of Treaty 3
and other knowledge holders at Red Lake in Ontario.
We pay our respects to them and their cultures, and to
Elders past and present. We acknowledge the Elders for
their resilience to pave the way for the generations that
follow them and we acknowledge those who continue to
educate and empower to maintain and protect all aspects
of Indigenous and First Nation heritage and culture.
1 As of 30 June 2024, Evolution operated five wholly-owned mines and an 80% interest in Northparkes. We acquired Northparkes in
December 2023. The data presented covers all operations, including Northparkes from date of acquisition unless otherwise specified.
Dinawan’s Connection performers
at the Condo SkyFest 2024
32 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Evolution Mining Limited (Evolution) is proud to
present the seventh Annual Sustainability Report
(Report) that discloses our Environment, Social and
Governance (ESG) performance, and the progress
made within the context of the dynamic and
changing sustainability landscape.
Our Sustainability performance reflects the contribution of
all our people. We continue to work together to deliver
long-term stakeholder value through reliable, low-cost
production in a safe, environmentally and socially
responsible way.
The content of this Report reflects the activities undertaken
in FY24 and structured to reflect our Sustainability Strategy
and materiality.
FY24 ESG Performance Data
Our FY24 ESG Performance Data discloses our performance
against our Sustainability targets and metrics for the
financial year and includes index tables in alignment with the
Global Reporting Initiative (GRI) and other ESG frameworks.
Feedback
This Report aims to provide insightful and informative
perspectives, offering a balanced view of Evolution’s
Sustainability efforts. We welcome your feedback and
questions about our Sustainability performance and
Sustainability-related disclosures. Please direct your
enquiries to Vice President Sustainability, Fiona Murfitt
at esgreporting@evolutionmining.com
Welcome
FY24 highlights
Sustainability targets
met with improvements
required in gender
diversity and engaging
our leaders and people.
2 Net Zero commitment of 30% emissions reduction by 2030 and Net Zero emissions by 2050, compared to FY20 baseline. Emissions targets are related to Scope 1 and Scope
2 only. Assessed using market-based method. Update from preliminary value of ~14% reduction reported in FY24 Directors’ Report following inclusion of Corporate and
Exploration data and completion of external verification process.
3 Economic contributions include supplier payments, wages, dividend payments, interest, taxes, royalties, community investment, payments to providers of capital and
payments to financial institutions (interest).
4 Local and regional organisations are defined by postcode in relation to geographical proximity to Evolution mine sites.
5 TRIF: the frequency of total recordable injuries per million hours worked. Results are based on 12-month moving average (12mma). The reduction is against the FY23 adjusted
baseline including Northparkes.
Contributed to the
Australian and Canadian
economies3 and $419
million to local and
regional businesses4
and organisations.
Social Licence to Operate
score recorded in our
biennial Stakeholder
Perception Survey.
Improvement
in TRIF during
the year to 7.75.
$2.7B
~13%
High Approval
Improvement in FY24
freshwater usage
intensity compared to
adjusted FY20 baseline,
exceeding target.
Reduction in emissions
against adjusted FY20
baseline2, progressing
our commitment to
Net Zero by 2050
and on track to meet
30% reduction by 2030.
45%
~12%
96%
Evolution Mining Annual Report 2024 | 33
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Click here to view
Chair of the Risk and Sustainability
Committee’s letter
I am pleased to report
that we continue to
progress our Sustainability
agenda and track toward
our Sustainability
performance goals.
This Sustainability Report aims to provide a detailed
understanding of our journey, in particular our
progress in FY24, and commitment to the
sustainable future for our business, people, First
Nation partners and local communities. I am
pleased to report continued progress in our
sustainability agenda.
Since our inception, Sustainability has been integral to our
business. As we have matured, it has become integrated
into all aspects of our business so that it is now how we
operate. Guided by our Sustainability purpose, we are
motivated to create long-term value, delivering positive
impacts for our stakeholders. We take pride in fostering
trusted partnerships that enable safe, reliable and
sustainable operations.
We continue to see a shift in social, political, and
environmental challenges. This has allowed us to become
more resilient and deepen our understanding and
management of sustainability risks and opportunities.
During this growth, and the acquisition of Northparkes,
we hold fast to our values of safety, excellence,
accountability and respect as core to delivering our
long-term strategic goals.
Safe and engaged workforce
Our holistic approach to health, safety and wellbeing is
focused on proactive strategies to drive improvement.
We have mitigated risk across our operations by
concentrating on Material risk and leading indicator
management. In this way, we have reduced the likelihood
of serious incidents and injuries. This has enabled a
~13% reduction in Total Recordable Injury Frequency (TRIF)
supported by a strong culture of reporting and continuous
learning and improvement.
Net Zero transition
Addressing global climate-related risks and opportunities
linked to our Net Zero commitment remains crucial to
ensuring our business remains resilient and relevant for
the future. We have delivered year-on-year improvement in
the reduction of emissions, in line with becoming a Net
Zero emissions business by 2050. We delivered ~12%
greenhouse gas (GHG) emission reduction compared to
our FY20 baseline and are on track to meet 30% reduction
by 2030. We matured our power supply and technology
partnerships during the year as we prepare for more
challenging decarbonisation transitions post-2030.
Asset-specific climate risk assessments and
decarbonisation studies are now embedded into our
decision-making across all stages of the business life
cycle, from due diligence to closure planning.
34 | Evolution Mining Annual Report 2024
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Making Evolution a career highlight
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Responsible environmental stewardship
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Responsible environmental stewardship
Respecting the environment in which we operate is
fundamental to our values and to maintaining our social
and regulatory licence to operate. Consistent with our
strategy and focused efforts to reduce the use of
freshwater, our freshwater use intensity continued to be
reduced by 45% compared against our adjusted FY20
baseline. We have also seen improvements in our tailings
management strategy, resulting in improvements to risk
management and assurance methods that will provide for
secure long-term management and ultimate restoration of
these facilities.
Trusted partner in communities
We are committed to achieving positive socioeconomic
outcomes through effective collaboration with communities
neighbouring our operations. Our FY24 biennial
Stakeholder Perception Survey recorded a ‘High Approval’
Social Licence to Operate score. We continue to adapt our
community engagement approach to address local
priorities and stakeholder interests.
Working closely with our First Nations partners, our
inaugural First Nations Summit also provided an
opportunity to listen, learn and connect in the spirit of
reconciliation, collaboration, knowledge sharing and
capacity building.
Making Evolution a career highlight
We want working for Evolution to be a career highlight, and
we remain committed to fostering an inclusive and diverse
workplace where everyone feels respected, connected, and
can achieve their career development goals.
Talent attraction, retention and professional growth are
integral to our success in a changing environment. During
the year we increased our graduate intake by 50% and
overall staff retention to 87%. Whilst female representation
increased slightly to 19%, we are committed to progressing
this further through localised strategies focused on closing
the gap to meet our FY25 target of 22% female representation.
Governance and assurance
We welcome the International Sustainability Standards
Board (ISSB) issuing its inaugural Task Force on
Climate-related Financial Disclosures (TCFD)-aligned
International Financial Reporting Standards (IFRS)
to establish a global baseline of investor-focused
Sustainability-related disclosures. We have undertaken
comprehensive preparatory work for this, placing us
in a strong position to deliver against the revised
compliance obligations.
Our reporting continued to be recognised by key ratings
agencies including in the Dow Jones Sustainability Index
Australia, and maintaining our ‘AA’ rating from MSCI. We
published a fourth Modern Slavery Statement, reinforcing
our commitment to recognising and enhancing human
rights, and our work towards meeting compliance
obligations from existing Australian and new Canadian
Modern Slavery legislation. We are also pleased to support
the United Nations Global Compact “Communication on
Progress” with this Report.
We are confident this Report is accurate, balanced, and
provides the level of accountability and transparency that
we continually strive for. On behalf of the Board, I would
like to thank everyone who has contributed to the progress
we have made in creating a sustainable future for our
business. Our business looks forward to meeting future
challenges, knowing we have created an excellent platform
for a long-term sustainable future.
Yours faithfully
Peter Smith
Lead Independent Director and Chair of the Risk
and Sustainability Committee
Evolution Mining Annual Report 2024 | 35
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
FY24 Sustainability performance targets
Linked to our Sustainability Strategy, specific performance
targets are set annually to measure progress. In FY24,
targets were aligned with both the Sustainability Principles
and 3-Year Waypoint Goals (FY24-FY26). The Waypoint
Goals provide a balanced scorecard supported by the five
business pillars: Sustainability, People, Operations, Growth
and Financial outcomes.
Performance (progress against key targets)
In FY24, Evolution’s Sustainability performance delivered on
or better than target in 27 of 28 targets across Environment,
Health and Safety, People and Community. We achieved all
safety, health and wellbeing targets but remain vigilant and
committed to continually improve our safety performance,
as one injury is one too many. We improved our freshwater
usage intensity against baseline and are on track to meet our
Net Zero commitment of 30% reduction in GHG emissions
by 2030 and Net Zero by 2050 (Scope 1 and 2 emissions).
We recorded a ‘High Approval’ Social Licence to Operate
score in our biennial Stakeholder Perception Survey.
We also acknowledge the need to improve against other
performance targets.
Gender diversity has improved marginally year-on-year
as we work toward our FY25 target of 22% female
participation. We achieved 19% in FY24 (FY23: 18%),
which is an encouraging indication that our strategies
are taking effect, particularly at graduate and leadership
levels in the organisation. The Northparkes acquisition
has impacted our gender diversity outcomes, given the
operation’s lower female workforce representation than
Evolution overall. We delivered on our commitment to
increase Board gender diversity (no less than 30%
female participation in Board) with the appointment of
Ms Fiona Hick as Non-Executive Director (1 July 2024).
We also increased female representation in our Leadership
Team with the appointment of Nancy Guay as Chief
Technical Officer. There is still much to do, and we are
implementing targeted strategies to improve recruitment,
retention and female representation.
We were below our target of 100% of people having Living
our Values conversations, achieving 61%. While all senior
leaders have held the conversations throughout the year,
overall, the lower completion rate reflects the initiative not
being included as a mandatory business scorecard goal and
still growing maturity. We have adopted a stretch target
approach and believe that listening to our people is a
pathway to improvement. We are encouraged by the
quality of the conversations, the insights gained and
remain committed to the program and assessing and
tracking its benefits.
Overall, each of our operations continued to deliver their
Health, Safety, Environmental Permitting and Approvals and
Community Improvement Plans to support the first financial
year of the 3-Year Waypoint Goals (FY24-FY26).
FY25 Sustainability performance targets
Board-approved Sustainability performance targets have
been set to address our Material Sustainability topics
through our 3-Year Waypoint Goals (FY24-FY26) and Net
Zero commitment. In developing these targets, we engaged
people across the business, considered our Material risks and
emerging global and sectoral challenges, and focused on our
commitments to the United Nations Global Compact
(UNGC) and Paris Agreement. These targets are linked to
employee and Management short term incentive payments
(STIP). In FY25, we will monitor our performance against
Sustainability, People, Operations, Growth and Financial
outcomes targets.
Ernest Henry Operations overlooked by the Sustainability team
36 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
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Safe and engaged workforce
Responsible environmental stewardship
Annual Report
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Sub-category
Target
Timeframe
Performance
Governance and Assurance
Voluntary ESG
disclosures and
commitments to
initiatives
Externally validated
third-party performance
Ongoing/
FY24
• Participation in third-party performance benchmarking
and ESG rating agencies.
TCFD alignment
FY24
• Extending energy audit and climate scenario analysis
(Cowal FY22, Mungari FY23), with the FY24
Northparkes energy audit, decarbonisation roadmap
for Mungari 4.2 Project, and climate scenario analysis
and roadmap for Ernest Henry Extension Feasibility
Study against 1.5°C and 2°C scenarios.
• Third-party validation and benchmarking of our FY22,
FY23, FY24 TCFD reporting.
TNFD alignment
FY24
• Reviewed TNFD Final Recommendations against
Evolution’s corporate governance practices.
IFRS S1 and S2 alignment
FY24
• Completed third-party assessment of IFRS, ~72%
weighted compliance.
ASRS alignment
Ongoing/
FY25
• Commenced third-party assessment of Evolution’s
ASRS assurance readiness.
Assurance and
audit
100% of operations
assured against agreed
Evolution Standards
and Material risks
FY24
• 100% of assurance activity completed against agreed
Standards and Material risks.
Modern Slavery
and Human Rights
Modern Slavery Statement
compliance
Ongoing/
FY24
• Fourth Modern Slavery Statement published in 2024,
and first report published under Canada’s new Fighting
Against Forced Labour and Child Labour in Supply
Chains Act (S.C. 2023, c9). Preparing the next
following the assessment of 62%6 of medium and
high-risk suppliers.
Zero cases of bribery
or corruption
Ongoing/
FY24
• Zero reported cases of bribery or corruption.
Business ethics
100% of whistleblower
complaints investigated
and addressed
Ongoing/
FY24
• 100% of whistleblower complaints (3) investigated and
addressed.
Board diversity
No less than 30%
female representation
on the Board
Ongoing/
FY24
• Delivered on our FY24 commitment to increase Board
gender diversity with the formal announcement and
commencement of Ms Fiona Hick as Non-Executive
Director (1 July 2024).
Economic contributions
Local and regional
procurement
Ongoing/
FY24
• $2.7 billion contribution to the Australian
and Canadian economies3.
• $419 million to local and regional businesses4 and
organisations including $353 million in direct spend
with local organisations (54% increase in local spend
from FY23).
6 Includes all operations, including Northparkes. See ESG Performance Data for detailed inputs into this figure.
FY24 Sustainability performance targets
Click the Sub-category to read more.
Evolution Mining Annual Report 2024 | 37
Annual Report
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Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
7 Target represents a ~12% improvement from FY23 baseline excluding Northparkes.
Sub-category
Target
Timeframe
Performance
Safe and engaged workforce
Work health, safety
and wellbeing
Zero fatalities
Ongoing/
FY24
• Zero fatalities.
TRIF per million work
hours at or below 7.567
FY24
• Year-on-year improvement in TRIF with a ~15% TRIF
improvement from FY23 excluding Northparkes.
This comprises:
• ~3% better than target with 7.37 TRIF (versus target7
7.56 excluding Northparkes).
• Cowal was the strongest performing operation
with a 4.3 TRIF.
• ~13% improvement against baseline with 7.69 TRIF
(versus baseline of 8.83 including Northparkes).
100% of actions
in targeted Health and
Safety Improvement Plans
completed
Ongoing/
FY24
• 100% of actions completed.
Hazard
identification and
mitigation
Bowties/risk assessments
completed for Safety
Material risks
FY24
• 100% completed with independent external validation of
the data (Line of Defence (LOD) 3) with no major gaps.
100% of actions closed out
for Material
and Critical risks
FY24
• 100% of actions closed out as per target with
independent external validation of the data (LOD3).
These actions are reviewed weekly and reported
monthly, demonstrating a high level of confidence
in reporting.
• Improved critical control verification.
Making Evolution a career highlight
Diversity
and Inclusion
22% female
workforce representation
by end of FY25
Ongoing/
FY25
• 19% female workforce representation at the
end of FY24, a slight increase from FY23 (18%),
comprising 25% female graduate hires (FY23: 28%)
and 22% females in senior leadership roles in FY24
(FY23: 14%). Targeted focus on recruitment and
retention of females is expected to increase our
female workforce.
• Inclusion and Diversity Plans developed to increase
talent attraction, development and retention of
females across all operations and Group.
85% or more of
our people choosing to
stay with Evolution
FY24
• 87% of employees are choosing to stay in a tight,
competitive labour market (FY23: 83%).
External graduate
recognition
FY24
• Ranked second for the mining industry and 17th in the
top 25 employers of small graduate intakes, according
to Australian Association of Graduate Employers.
Talent attraction,
retention and
employee
engagement
65% or more of our people
participate in the Your
Voice engagement survey
FY24
• 67% of people participated.
100% of people having
meaningful values and
culture conversations
FY24
• 100% of senior leaders have undertaken the
conversations throughout the year. Living our Values
conversations continue to be a key part of how we
listen to our workforce, and we will continue to
encourage and track the benefits of these
conversations.
• 61% of employees had a meaningful values and culture
conversation with a Senior People Leader other than a
direct supervisor or manager. Below target as they
were no longer mandatory nor reflected in annual
performance scorecards.
38 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
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Annual Report
Sustainability Report
Financial Report
8 Net Zero commitment of 30% emissions reduction by 2030 and Net Zero emissions by 2050, compared to FY20 baseline. Emissions targets are related to Scope 1 and Scope
2 only.
9 Update of the previously reported preliminary result of ~14% following third-party audit and final verification.
10 Utilises market-based methodology.
11 S&P Global ESG score which contains modelling, compared to our disclosure-based S&P Global CSA score of 51. Reported on a year lag as scores released August 2023.
12 Final score as of 30 June 2024.
Sub-category
Target
Timeframe
Performance
Trusted partner in communities
Community and
stakeholder
engagement
100% of actions in First
Nation partner and
Community Plans
completed
FY24
• 100% of actions in plans completed.
• Six First Nation Agreements/plans reviewed with
active participation by parties.
Cultural heritage
and Indigenous
stakeholder
outcomes
Zero Material cultural
heritage incidents
FY24
• Zero Material incidents, or Community Negative
impact incidents.
Community
investment
Community investment
and Shared Value Projects
(SVPs) for positive legacies
Ongoing/
FY24
• $4.4 million in direct community investment including
SVP spend of $928,520.
• Three SVPs committed to in FY24 with ~$560,000
investment focused on enhancing outcomes for First
Nations partners, strengthening community resilience,
and training. Additional SVPs are celebrated within
this Report.
Responsible environmental stewardship
Water
management
Achieve <0.34kL
freshwater demand per
dry tonne milled (dtm)
FY24
• 45% improvement against adjusted baseline
(0.40 kL/dtm) with 0.22kL/dtm freshwater
use intensity.
Climate Risk and
Resilience
Progress on Net Zero
commitment8
Ongoing,
FY30,
FY50
• ~12% reduction9,10 in emissions compared to FY20
baseline.
• Ongoing implementation of Cowal Power Purchase
Agreement (PPA) and the first surrender of Large-
scale Generation Certificates (LGCs) as per the
Renewable Sourcing Strategy.
• Continued engagement with partners to reduce
emissions and improve operational efficiency.
• Embedded emissions modelling tools and
considerations in all due diligence activities to assess
the impact of acquisitions and major projects on our
Net Zero performance against FY20 baseline.
• Updated emissions baseline to include Northparkes,
in accordance with GHG Protocol.
Environmental
management
Zero Extreme or Major
(Material) environmental
incidents (including
tailings)
Ongoing/
FY24
• Zero Extreme or Major (Material) environmental
incidents occurred.
Retain ISO 14001
Certification and
International Cyanide
Management Code
(ICMC) Certification
Ongoing/
FY24
• Certifications retained at relevant operations.
Commitments and recognition
We participate with various ESG rating agencies to benchmark our performance, identify opportunities for improvement and
calibrate our sustainability performance continually. Our measurable progress over time is presented below.
Evolution’s ESG performance
Agency
Scale (worst to best)
FY24 Score
FY23 Score
FY22 Score
FY21 Score
S&P Global
0 to 100
5411
57
53
51
MSCI
CCC to AAA
AA
AA
AA
AA
ISS ESG12
10 to 1
Environment: 1
Social: 2
Environment: 1
Social: 2
Environment: 1
Social: 2
Environment: 1
Social: 2
Sustainalytics12
40+ to 0
27.4
29.8
29.2
40.4
Evolution Mining Annual Report 2024 | 39
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
13 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.
14 Copyright ©2024 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 www.sustainalytics.com/legal-disclaimers.
15 Gold industry.
S&P Global
Due to a material shift in the methodology during the
submission period, our score decreased slightly by 5%. This
resulted in a disclosure-based (CSA) and modelled score
(ESG). In September 2023, we achieved an S&P Global ESG
Score of 54 (industry average of 27) based on FY22
disclosures. Evolution is recognised on the Dow Jones
Sustainability Index Australia.
MSCI13
We maintained a high MSCI rating score of ‘AA’ for resilience
to long-term ESG risks. We also scored 5.3 compared to the
industry average of 4.4. We were placed among the top
quartile for Biodiversity & Land Use and Health & Safety.
ISS ESG
We maintained low-risk ESG scores, including a Level 1 for
‘Environment’ and 2 for ‘Social’. We have retained these
low-risk scores in a context of increasing social indicators
and requirements.
Sustainalytics14
We upheld a ‘Medium Risk’ rating with ’27.4’ in FY24. This is
our best risk rating to date, ranking in the top 24th percentile
(22/90) globally.15
Cowal Maintenance team member in the workshop
Aerial view of the Cowal Gold Operations open pit
40 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
In December 2023, Cowal poured its 30,000th bar of gold
Sustainability Advantage
We are an active partner of Sustainability Advantage,
a program of the NSW Government’s Department of
Climate Change, Energy, the Environment and Water
since December 2022.
UNGC
We have been a proud signatory of the UNGC since FY21.
This brings us together with a global business community in
a commitment to sustainable business practices, aligning our
strategies and Sustainability Principles with the UNGC’s Ten
Principles, the United Nations Sustainable Development
Goals (UNSDGs) and 2030 SDG targets.
Australian Association of Graduate Employers (AAGE)
It is an honour to be recognised as an AAGE Top Graduate
Employer for two years in a row. We are ranked second in the
mining industry and 17th in Australia for employers of small
graduate intakes among a range of industries and achievers
for 2024.
ARA – Australian Reporting Awards
We have been recognised by Australia’s leading reporting
awards winning the ‘Gold’ award for the FY23 Annual
Report, positioning our report as a model report. Our FY23
Sustainability Report was awarded ‘Bronze’ at the 2024
Australasian Reporting Awards.
Evolution Mining Annual Report 2024 | 41
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Ernest Henry team members reviewing the site plan
Evolution was formed in November 2011 and has become a leading, globally relevant gold mining
company. Evolution currently operates six mines in Australia and Canada, with the Northparkes
mine (80% ownership) added in December 2023. In FY24, Evolution produced 716,700 ounces of
gold at an All-in Sustaining Cost of $1,477 per ounce, continuing to position Evolution as one of the
lowest-cost global producers.
First Nation partners and location of the Evolution operations
Northparkes
Wiradjuri people
of the Upper Bogan River
Mt Rawdon
Bailai, Gurang, Gooreng
Gooreng and Taribelang
Bunda peoples
Red Lake
Treaty 3 lands of the
Wabauskang and Lac Seul
First Nations and other
knowledge holders
Mungari
Marlinyu Ghoorlie
people and other
knowledge holders
Ernest Henry
Mitakoodi people
Cowal
Wiradjuri people
Australia
Canada
About Evolution
We always strive to empower people
and provide long-term socioeconomic
outcomes to the communities in which
we operate. This enables growth and
fosters beneficial relationships, which we
know are integral to our mutual success.
Lawrie Conway, Managing Director
and Chief Executive Officer
42 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Our purpose
To deliver long-term stakeholder
value through low-cost production in
a safe, environmentally and socially
responsible way
Our values
Our values guide our behaviours
and the decisions we make in
the workplace every day: safety,
excellence, accountability and respect
Our vision
Inspired people creating a premier
global gold company
Respect
We trust each other, act honestly and
consider each other’s opinions
Excellence
We take pride in our work, deliver our
best and always strive to improve
Safety
Think before we act, every job, everyday
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, we:
Drive a
high-performing
culture with
values and
reputation as
non-negotiables
Integrate
sustainability
into everything
we do
Take appropriate
geological,
operational and
financial risks
Build a portfolio
of up to eight
assets in Tier 1
jurisdictions
generating
superior returns
Have financial
discipline centred
around margin
and appropriate
capital returns
Accountability
It is my responsibility, I own it - good or bad
Graduates gaining experience underground
at the Red Lake Operations
Water sampling conducted at Cowal as per licence
and other obligations
Evolution Mining Annual Report 2024 | 43
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
This Report is a summary of Evolution’s Material
Sustainability topics and performance for the
financial year ended 30 June 2024 and marks the
seventh year of annual Sustainability 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 2024 Annual
Report for further information.
Reporting period
This Report covers the period from 1 July 2023 to 30 June
2024. References in this Report to ‘year’ are to the financial
year ended 30 June 2024 unless otherwise stated.
Published date
This Report was published on 17 October 2024.
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. In FY24, we acquired an
80% share of the Northparkes16 Operation in New South
Wales. Due to the period of ownership, summaries on
Northparkes are provided in relevant sections. 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.
This Report should be read in conjunction with the 2024
Annual Report for information pertaining to our financial
sustainability and performance and the FY24 ESG
Performance Data.
Reporting frameworks
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 impacts are
managed. This Report has been prepared in line with the
following frameworks:
• Global Reporting Initiative (GRI) Standards 2021;
• Recommendations outlined by the Task Force on
Climate-related Financial Disclosures (TCFD);
• United Nations Global Compact (UNGC);
• United Nations Sustainable Development Goals (UNSDGs);
• Recommendations outlined by the Task Force on
Nature-related Financial Disclosures (TNFD); and
• Australian Securities Exchange (ASX) Corporate
Governance Recommendation 7.4.
We voluntarily engage with ESG rating organisations
that assess and rank our Sustainability performance.
These include S&P Global, MSCI, ISS ESG and Sustainalytics.
In 2024, the Australian Treasury introduced mandatory
climate-related financial disclosure legislation to Parliament
for reporting aligned with IFRS S1 and S2. When enacted,
Evolution will be a first reporting entity, applying to annual
reporting periods commencing after 1 January 2025 (FY26).
Evolution have undertaken internal and external preparatory
work for this change through FY24, including a readiness
assessment with our external auditor PwC.
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 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)
and Greenhouse Gas Reporting Program (GHGRP). 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.
Glossary
A Glossary of terms to define uncommon words
is provided at the end of this Report.
About this Report
16 Acquisition formalised 16 December 2023. Reporting effective date 1 January 2024 unless otherwise stated.
44 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Forward looking statement
This report prepared by Evolution Mining Limited (or ‘the
Company’) includes forward looking statements. Often, but
not always, forward looking statements can generally be
identified by the use of forward looking words such as ‘may’,
‘will’, ‘expect’ ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’,
‘continue’, and ‘guidance’, or other similar words and may
include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated
production or construction commencement dates and
expected costs or production outputs. Forward looking
statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the
Company’s actual results, performance and achievements to
differ materially from any future results, performance or
achievements. Relevant factors may include, but are not
limited to, changes in commodity prices, foreign exchange
fluctuations and general economic conditions, increased
costs and demand for production inputs, the speculative
nature of exploration and project development, including
the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves, political and
social risks, changes to the regulatory framework within
which the Company operates or may in the future operate,
environmental conditions including extreme weather
conditions, recruitment and retention of personnel, industrial
relations issues and litigation. Forward looking statements
are based on the Company and its management’s good faith
assumptions relating to the financial, market, regulatory and
other relevant environments that will exist and affect the
Company’s business and operations in the future.
The Company does not give any assurance that the
assumptions on which forward looking statements are based
will prove to be correct, or that the Company’s business or
operations will not be affected in any material manner by
these or other factors not foreseen or foreseeable by the
Company or management or beyond the Company’s control.
Although the Company attempts and has attempted to
identify factors that would cause actual actions, events or
results to differ materially from those disclosed in forward
looking statements, there may be other factors that could
cause actual results, performance, achievements or events
not to be as anticipated, estimated or intended, and many
events are beyond the reasonable control of the Company.
Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward looking
statements in these materials speak only at the date of issue.
Subject to any continuing obligations under applicable law
or any relevant stock exchange listing rules, in providing this
information the Company does not undertake any obligation
to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions
or circumstances on which any such statement is based.
Approval
This Report has been approved for release by the Board
of Directors.
Night sky at Cowal’s integrated waste landform
Evolution Mining Annual Report 2024 | 45
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Purpose statement
Aligned with our purpose and strategy, we link our stories
with transparent disclosure to deliver against our regulatory
obligations, demonstrate the positive impact we make
through strong partnerships, and highlight the opportunities
and risks to creating sustainable value for our stakeholders.
Our Sustainability journey
Our commitment to Sustainability has been core to our
business since its inception and it informs who we are and
how we think about our relevance in the decades to come.
Our first Sustainability Report was produced in FY18, and
through FY24, we reflected on the establishment, growth,
integration, and uplift stages of our Sustainability efforts.
People and their development remain integral to our
success. It is our people who continue to work, upskill, and
engage to protect the environment, improve biodiversity
outcomes, and build positive legacies that progress our
sustainability journey.
We have continued to foster strong relationships with our
First Nation partners and communities. We validated these
relationships through the inaugural First Nation Summit in
FY24 and biennial Stakeholder Perception Survey.
The sustainability landscape has dynamic stakeholder
expectations. We commit to taking the time to ensure we
genuinely adapt and respond to societal drivers from our
local communities, national and international obligations.
We continue to be a significant supporter of being and
buying local and promoting the economic future of our
communities. Today, 65% of our people live locally. We
recognise that sustainability-related risks and opportunities
have an impact on our financial position, performance, cash
flows, investment decisions, and overall risk management. In
FY25, our focus will continue toward alignment with external
assurance obligations to ensure our global relevance,
pursuing efficiencies and improved assurance mechanisms
to continuously monitor and respond to changes in
sustainability that may have a material impact.
Sustainability - Integrated into everything we do:
Our Sustainability Principles and Strategy
Our Sustainability approach is guided by nine principles
which are aligned with UNSDGs prioritised for our business.
Our Principles and Sustainability Strategy are integrated into
everything we do, meaning Sustainability is integrated into
every aspect of the business, across diverse geographies
and cultures, ensuring the execution of our purpose and
vision. This approach enables creation of sustainable
long-term stakeholder value, where at its heart is our people
– where our leaders are visible and our people feel engaged,
fit and capable to be their best.
Sustainability and Strategic Planning Policy
The Sustainability and Strategic Planning Policy outlines
how Sustainability is integrated into the business. It focuses
on holistic risk management and value creation for our
employees, business partners, and across major projects
and long-term planning, in:
• health, safety and wellbeing;
• environmental stewardship including waste management;
• community relations and cultural heritage;
• stakeholder engagement and communications;
• human and Indigenous rights;
• risk-based decision-making;
• reporting, learning excellence, innovation, and continuous
improvement;
• crisis and emergency management and corporate
governance; and
• accountabilities for risk, sustainability and strategic planning.
Our approach to Sustainability
Northparkes team member at the processing plant
Lake Cowal sunrise with a flock of pelicans
46 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Ou
r S
ust
ain
ab
ilit
y P
rin
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Res
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man
rig
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heri
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and
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end
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Storytelling and
ESG reporting
Governance
and Assurance
Environmental
management
including water
Risk
management
including
climate-
related risk
Health, safety
and wellbeing
Community and
Indigenous
engagement and
cultural heritage
Visible Felt
Leadership
risk
s an
d o
pp
ort
un
itie
s in
clu
ding
Shared stories strengthen reputation.
Resilient to change with improved
disclosure and advocacy
Unlock potential through leadership
to develop protective behaviours
Disciplined, consistent and
reliable management including
towards Our ‘Net Zero’ future
Commitment to reduction in
environmental footprint
Social licence to operate through
targeted community plans, protecting
cultural heritage and First Nation
partner relationships
Assurance to promote
ongoing improvement
Ou
r
Su
st
ai
na
bi
lit
y
St
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gy
-
In
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i
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hi
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w
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Sustainability and Strategic Planning Standards
Our Sustainability and Strategic Planning Standards
support the associated Policy, defining the minimum
acceptable risk requirements to be met or exceeded
in all areas of the business, including operations,
exploration, major projects, Group activities and
business partners.
Group and operations are audited against these
Standards across a multi-year cycle to monitor
performance and identify opportunities for
improvement. In FY24, all the operations completed
detailed LOD1 and LOD2 reviews against the agreed
Evolution Standards and risks in the FY24 Assurance
Program schedule. The internal audit process for
assessing compliance continued to be uplifted
through the collation and management of feedback
on the functionality of audit tools and Standards.
Ongoing reviews by each operation against these
Standards are also triggered by internal or external
incidents, regulatory changes and / or audit and
assurance activity.
Sustainability and Strategic Planning framework
Sustainability Principles
Sustainability and
Strategic Planning Policy
Sustainability and
Strategic Planning
Standards
Management system,
operating processes
and procedures
Integrated Risk
Management
Framework
Assurance
program
Evolution’s Sustainability Principles and Sustainability Strategy - Integrated into everything we do
Evolution Mining Annual Report 2024 | 47
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Our approach to Sustainability
Voluntary ESG disclosures and commitments to initiatives
We voluntarily align or adhere to the ESG-related industry reporting frameworks and initiatives presented in
the accompanying table. This permits us to demonstrate our commitment to and performance against high
standards of environmental, social and governance policy and expectations.
Voluntary disclosure
Industry initiatives
International business initiatives
GRI Standards
Reporting of ESG performance in accordance with GRI
requirements since FY21. In FY24, updated GRI reference
to 2021 standards.
ICMC
Cowal and Red Lake certified to ICMC.
United Nations Guiding Principles on Business and
Human Rights (UNGP)
2023 Modern Slavery Statement, and the Report to the
Fighting Against Forced Labour and Child Labour in
Supply Chains Act, aligned with Australian and Canadian
legislation and the UNGP.
UNGC
Joined UNGC in 2021.
Communication of Progress to the UNGC
reported annually.
Member of UNGC Network Modern Slavery Community
of Practice.
UNSDGs
Positively contributing to progress on the UNSDGs most
relevant to our operations through our activities and
initiatives, aligned with our Sustainability Principles.
Collaborative efforts with government, civil society
and other businesses.
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 (TSFs) disclosed in the Church
of England Tailings Dam Management Disclosure which
is certified by Evolution’s Executive Chair.
See the disclosure here.
TCFD
Commenced reporting in line with TCFD in FY20.
100% coverage against the final recommendations of
TCFD based on assessment by external consultants.
Focus in FY25 to improve the detail and depth
of disclosures as per the transition to mandatory
disclosures under ASRS.
TNFD
Undertook gap analysis and alignment review with TNFD
V0.4 in FY23.
Reviewed final recommendations of TNFD in FY24.
The GHG Protocol: A Corporate Accounting and
Reporting Standard
GHG Scope 1 and 2 emissions disclosed in accordance
with this standard. Internally tracked Scope 3 emissions
calculated in accordance with related GHG Protocol:
Technical Guidance for Calculating Scope 3 Emissions.
ISSB
In FY24, liaised with industry associations, Sustainability
Advantage, and external consultants to complete a
gap analysis of IFRS S1 and S2 against company-wide
governance and reporting resulting in a ~72% weighted
compliance score.
Evolution’s voluntary ESG disclosures and commitments to industry and international initiatives
48 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
In this Report, a Material Sustainability topic is one that
reflects significant potential for economic, environmental
and/or social impacts and risks arising from, and impacting,
our operations and value chain, or one that has potential to
substantively influence the assessments and decisions of our
stakeholders and our business, aligned with GRI 3: Material
Topics 2021 and GRI 14: Mining Sector 2024.
The content of this Report was determined through a
refreshed materiality assessment undertaken by an
independent third-party in FY24 as per our formal triennial
review period. It also aligned with and leveraged the findings
of our independent biennial FY24 Stakeholder Perception
Survey. The FY24 assessment also expanded upon the
inaugural FY21 assessment, by embedding a double
materiality approach and Evolution’s Material Risk Register,
and continuing alignment with GRI’s quantitative17 and
qualitative assessment methods. Our approach has identified
distinct materialities and sentiments of key external and
internal stakeholders, enabling us to prioritise Sustainability
actions and risk management, inform our Sustainability
Strategy, and ensure we report on the most important issues
for our stakeholders. For example, internal and external
stakeholders were largely aligned on most topics, and
external stakeholders prioritised Work, health, safety and
wellbeing, and Community and stakeholder outcomes.
The process for determining Material Sustainability topics
follows an internal annual, and external triennial, cycle,
comprising four phases demonstrated to the right. The
resulting topics represent Material sustainability risks and
opportunities, and inform our regular risk review process,
including through the integration into project feasibility
study assessments.
While there were no material shifts in FY24, the process
enabled improved consolidation and clarity of definition
for our Material topics and enabled a deeper understanding
of stakeholders’ needs and expectations.
Management approach information
Our management approach related to each Material topic
is available in this Report and on Evolution’s website at
www.evolutionmining.com.au/sustainability/
Our Material Sustainability topics
Materiality assessment process
1
Understand the organisational context:
Before identifying impacts, Evolution reviews its
activities, business relationships, stakeholders,
and ensures the materiality and risk review is
aligned with GRI, our Sustainability Strategy and
Risk Management Framework.
2
Identify and assess actual and potential impacts:
Material Sustainability issues are identified by
considering both internal and external factors,
including a review and market scan of current
and emerging sustainability topics in the media,
risk assessments, internal policy, key reporting
frameworks, sector-related investor risk ratings,
peer benchmarking, regular internal and external
stakeholder engagement, and grievance
management. Surveys and interview data with
internal and external stakeholders support the
identification and assessment of the significance
of impacts.
3
Prioritise and validate:
Topics are ranked based on their importance to
the business and external stakeholders using the
survey and interview data to determine the
sustainability and indicative financial materiality
for each topic, eventually being classified as
Priority 1 to 4. The classification of topics is
tested and validated by our Leadership Team and
Board Risk and Sustainability Committee.
4
Report and review:
Additional Sustainability topics have also been
included in this Report to meet expectations of
stakeholders and other reporting requirements.
There will be ongoing identification and
assessment of our impacts internally on an annual
basis and continue the full external refresh cycle
every three years.
17 Involved quantification of survey results which included indicative financial materiality scoring.
A father emu and his chicks by our Cowal Gold Operations
Evolution Mining Annual Report 2024 | 49
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Sustainability Materiality Matrix
Our Matrix is the outcome of our independent double materiality assessment. All topics have been identified as important
to Evolution and its stakeholders from direct and indirect influence areas. 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). The Report is structured according to the groupings of these Material topics into Governance, Social,
and Environment sections.
Click on each Material topic for more information.
Double materiality matrix
Significance of economic, environment and social impacts
(i.e. Importance to Evolution / financial materiality)
Influence on stakeholder impacts and decisions
(i.e. Importance to stakeholders / stakeholder materiality)
Governance and Ethics
Water management
Climate Risk and Resilience
Community and stakeholder
engagement
Cultural heritage and Indigenous
stakeholder outcomes
Energy and Emissions
Environmental impacts and Waste
(including Circular economy)
Tailings management
Work health, safety and wellbeing
Cyber security
Crisis response
Mine closure, rehabilitation
and legacy
Diversity and Inclusion
Land use and Biodiversity
Talent attraction, retention
and employee engagement
Sustainable procurement
Modern Slavery and
Human Rights
Our approach to Sustainability
Northparkes team monitoring and managing a farm
50 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
FY24 Material topics mapped against the UNSDGs and Evolution Sustainability Principles
Evolution recognises our opportunity to help society and positively contribute to the UNSDGs. These goals have been a key
consideration in the development of our Strategy, with mapping of all 17 UNSDGs to our Material topics.
Material topics - Click the topic to read more
UNSDG Index
Principle
Governance
Governance and Ethics
Operating with robust governance, ethics and integrity across our business
activities. This includes maintaining robust policies, Board and executive
composition, transparent reporting, and combatting bribery and corruption.
Combines Governance and compliance and Anti-bribery and corruption.
8
Crisis response
Maintaining long-term business resilience and preparedness against
environmental and social crises.
1
Cyber security
Implementing controls to reduce internal and external cyber risks which may
result in the disruption of critical systems and/or equipment, fraudulent
transaction/impersonation, and the loss, disruption, or exposure of sensitive
business information. This includes actively managing and regularly testing the
protection of our data and operating systems.
2
Sustainable procurement
Integrating sustainability-related considerations and due diligence into
Evolution’s supply chain to ensure the responsible purchasing of goods and
services. This includes considerations relating to environmental impacts,
Indigenous corporations, security, supplier conduct, and the prioritisation of
local procurement where possible.
1,8
Modern Slavery and Human Rights
Upholding the fundamental rights and dignity of all our stakeholders and
complying with the modern slavery legislations in Australia and Canada. This
includes ensuring equitable work hours, fair compensation, and conducting
thorough supply chain assessments to identify and mitigate any risks of
modern slavery and human rights violations.
7
Material topics - definition and alignment with UNSDGs
The Discovery team logging core at the Ernest Henry core shed
Evolution Mining Annual Report 2024 | 51
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Material topics - Click the topic to read more
UNSDG Index
Principle
Social
Work health, safety and wellbeing
Protecting the physical, mental and psychosocial health of our people and
reducing risks of accidents and hazards are essential to ensure our people are
fit to work to safeguard production, and our social and regulatory licence to
operate. This includes the management of road transport and safety (e.g., road
dust) to minimise road and aviation accidents as well as the use, storage,
handling, transport and disposal of hazardous chemicals and upholding
process safety measures. Combines with Transport safety and Hazardous
chemicals management.
1, 2
Diversity and Inclusion
Promoting all forms of diversity and inclusion within the workplace. This
includes encouraging diversity of thought, providing equal opportunities for
career advancement, recognising and addressing inherent biases, reporting
transparently on diversity performance, and improving participation rates,
particularly for women and Indigenous employees.
1
Talent attraction, retention and employee engagement
Building a capable and sustainable workforce through ongoing investment in
attracting the best talent, building a positive organisational culture, providing
growth and development opportunities, and prioritising local employment.
Combines previously separate topics.
1
Cultural heritage and Indigenous stakeholder outcomes
Working with Indigenous communities and First Nations partners of the land
on which we operate to create positive outcomes and protect and preserve
places and items of cultural significance. This involves identifying investment
and Indigenous employment opportunities. This also includes building cultural
awareness, knowledge and competency within Evolution. Combines previously
separate topics.
6
Community and stakeholder engagement
Creating positive outcomes for our Indigenous and non-Indigenous
communities and stakeholders by managing expectations and grievances,
delivering mutually beneficial agreements, investing in local communities,
supporting positive outcomes for all stakeholders, prioritising local community
employment, and maintaining transparent reporting and engagement with
various stakeholders. Combines previously separate topics, and Local
employment.
1, 5, 8
Our approach to Sustainability
52 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Material topics - Click the topic to read more
UNSDG Index
Principle
Environment
Climate Risk and Resilience
Adapting and responding to the physical and transition impacts of climate
change and efforts to build resilience across the organisation.
4
Energy and Emissions
Monitoring, management and reduction of carbon emissions including emissions
in the supply chain and downstream of Evolution’s operations. This also includes
the exploration of business opportunities aimed at reducing carbon emissions or
contributing to decarbonisation of the grid (i.e., Mt Rawdon Pumped Hydro
Project (MRPH)).
4
Tailings management
Protecting the health and safety of employees, contractors and the broader
community by designing, constructing, operating and closing TSFs in
alignment with the highest standards. Current TSFs are serviced regularly
to seek continual improvement and reduce risk of failure.
3
Environmental impacts and Waste (including Circular economy)
Minimising our environmental impacts and complying with environmental
regulations relating to noise, environmental discharges, air emissions, cyanide,
waste rock, industrial waste, organic and inorganic waste. This includes product
stewardship with regards to managing our products through the entire life
cycle based on circular economy principles. Combines the previous Effluents
and waste, and Environmental management.
3
Water management
Ensuring oversight and implementation of practices aimed to ensure the
security of water supply, optimising the quality and efficiency of water usage
and identifying opportunities for water reuse and recycling. This includes
mitigating potential impacts on local communities and the environment.
4
Land use and Biodiversity
Protecting and restoring biodiversity and ecosystems, including strategies to
manage fire, pests and weeds.
3
Mine closure, rehabilitation and legacy
Managing the environmental and social considerations relating to mine closure,
including restoring land to its natural state or rendering suitable for future uses
such as conservation, agriculture and the clean energy industry. Combines
previously separate topics.
3, 5
Evolution Mining Annual Report 2024 | 53
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Governance
and Assurance
By upholding strong governance principles
and collaborating with our stakeholders,
we continue to deliver our objectives and
be a trusted partner in our communities
and industry.
Evan Elstein, Company Secretary
and Vice President Information Technology,
Communications and Corporate Affairs
Governance and ethics
Management approach
We are committed to fulfilling our obligations and
responsibilities to our stakeholders through robust and
transparent corporate governance practices. Operating in
accordance with high standards of corporate governance
enables the identification of risks and opportunities that
drive sustainable value creation for all stakeholders.
Our 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 2024,
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
Corporate Governance Statement.
As per Recommendation 7.4, this Report details information
on the management of Evolution’s Material environmental
and social risks.
Board of Directors
The Board of Directors retains ultimate responsibility and
accountability for our Sustainability Strategy, priorities and
performance. 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 is to
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 as set out
in its Charter. The Risk and Sustainability Committee is
responsible for the formal review and 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; Cyber
management and Legal and regulatory Compliance.
We are committed to the identification, monitoring, and
management of Material business risks of our activities via
the Risk Management Framework. The Sustainability and
Strategic Planning Policy and Sustainability Performance
Standards are available on the Company’s Corporate
Governance webpage which 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.
Environmental monitoring is undertaken regularly at Cowal
54 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Board diversity
We recognise the benefits that diversity provides to our
Board of Directors. A diverse mix of skills, expertise,
experiences, genders, ages, and characteristics leads to
diversity of perspectives and more robust understanding of
opportunities, issues, and risks for improved decision
outcomes. In alignment with the Australian Government’s
Workplace Gender Equality Agency (WGEA) and the ASX
recommendations, Evolution maintains a target of no less
than 30% female representation on the Board. As of 30 June
2024, Evolution’s 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). This ratio has improved with the appointment of Ms
Fiona Hick as a Non-Executive Director of the Company and
a member of the Risk and Sustainability Committee,
effective from 1 July 2024.
The Board is structured to ensure that the Directors’ skills
and experience align with our goals and strategic direction.
Additional workshops and discussions are facilitated to
update the Board on material matters, particularly on
emerging risks. An example of this is the ongoing discussion
on Material risk management during Board meetings at least
three times a year, and site visits wherein the Board
demonstrate visible leadership, experience and validate risk
management and verification activities, bringing the Group
Risk Register to life through direct interactions with our
people. The functions and responsibilities for the Board and
each Committee are set out in the respective Charters.
Information on Board members and Charters is available to
view in the Corporate Governance section of our website.
The following policies were reviewed and updated in FY24
and are available to view in the Corporate Governance
section of our website.
• Board Charter
• Anti-Bribery and Corruption Policy
• Continuous Disclosure Policy
• Employee Code of Conduct
• Privacy Policy
• External Communications Policy
• Social Media Policy
• Shareholder Communication Policy
• Supplier Code of Conduct
• Sustainability and Strategic Planning Policy
• Procurement Statement
• Employee Share Option and Performance
Rights Plan Rules
Linking remuneration to Sustainability
Our continued commitment to Sustainability is reflected in
~30% of the annual STIP being linked to the achievement of
specific Sustainability goals and targets, including key
performance conditions and strategic imperatives on progress
towards Net Zero. It 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. More information can be
found in the FY24 Annual Remuneration Report (Evolution
Mining Limited Directors’ Report 30 June 2024).
All data related to sustainability metrics for STIP payments
are validated via third-party audit processes.
Assurance and audit
An annual assurance plan is approved by the Leadership
Team and endorsed by the Risk and Sustainability
Committee. Findings from the FY24 assurance activity
highlighted areas for improvement identified across the
Sustainability portfolio. As part of the assurance process, all
operations submitted Sustainability Improvement Plans and
delivered these supported by ongoing tracking, action
review, close out and continual improvement activities.
The closure of material and critical actions is considered a
leading indicator and is important to ensure actions that are
material and critical to preventing an incident are monitored
and delivered. This metric is also included within the overall
business scorecard and is linked to the remuneration
strategy across all levels of the business. This reinforces
the importance of tracking, reporting and the closure of
findings that may arise from audits, incident review and
internal or external incidents. In FY24 there were no overdue
critical or material actions. This data is also validated and
independently audited.
A diverse mix of skills, expertise,
experiences, genders, ages, and
characteristics leads to diversity
of perspective and more robust
understanding of opportunities,
issues, and risks for improved
decision outcomes.
Ernest Henry team members by the processing plant
Evolution Mining Annual Report 2024 | 55
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Risk mitigation and management
A rigorous risk management framework and system of
internal controls has been established to effectively identify,
manage and mitigate risks, to inform decision-making and
the successful delivery of our strategy and plans.
Our approach to effective risk-based decision-making,
proactive risk management and continual improvement is
undertaken across the business underpinned by our
Sustainability Principles, Risk Assessment Matrix,
Sustainability and Strategic Planning Policy, associated
Standards, and the Integrated Risk Management Framework.
Supporting systems and procedures align with principles of
international standards and guidance e.g., International
Council on Mining and Metals (ICMM).
Across the business, we conduct risk assessments to
evaluate enterprise and operational risks that may impact
people, health and safety, environmental, social, business,
assets, finance, reputational risks and opportunities. Our
Integrated Risk Management Framework, based on ISO
31000:2018 Risk Management Guidelines, provides the
structure for risk identification, analysis, monitoring,
mitigation and reporting. It considers and identifies a broad
spectrum of stakeholders, potential internal and external risk
exposures, potential downside and upside risk-related
opportunities across the business.
We review the effectiveness of our risk management
frequently through quarterly risk evaluations, led by
functional risk owners, Group and site-based risk owners and
champions, and senior leaders at the business, functional
and operational levels. In these reviews, Group subject
matter experts work with sites to evaluate incident learnings,
audits and control effectiveness across the 15 Group Material
risks and 12 operational health, safety and environment risks.
The Group Risk Register is subsequently updated, approved
by the Leadership Team and endorsed by the Board as a
minimum annually. These evaluations provide valuable
insights to continuously challenge and deepen the
understanding of risk, supporting the maturity of our
approach, particularly to address emerging risks such as
climate change, energy and emissions, human rights, process
safety issues and globalisation.
In FY24, 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. These were approved by the Leadership
Team and endorsed by the Board. The intent was to drive
further review, oversight and control of risks most material
to the business.
The Risk and Sustainability Committee oversees the
effectiveness of our risk management approach linked to
evaluating the appropriateness of performance and
resourcing. As part of its responsibility, the Board ensures
balance between risks incurred and potential return to
shareholders is maintained, that risk management programs
are in place and effective (including internal control
frameworks, insurance and loss prevention efforts) and
provides oversight on the effectiveness of the 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.
The Governance Framework informs our integrated Risk
Management Framework.
Integrated Risk
Management
Investment
Management
Committee
Performance
Standards,
Policies and
Procedures
Senior
Management
Corporate
Culture, Values
and Behaviour
TSF Governance
Committee
Nomination and
Remuneration
Audit
Board of
Directors
Shareholders
Executive Chair
Board Sub Committees
Delegation of Authority
Leadership Team
Risk and
Sustainability
Governance
Framework
Governance and Assurance
56 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Regulatory compliance
Regulatory compliance supports our licence to operate.
Evolution complies 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, maintain a register of
approvals, permits and obligations, conduct targeted audits
of compliance against applicable regulatory standards and
report outcomes to the Audit and Risk and Sustainability
Committees. We engage with a range of specialist
consultants and subject experts (including legal due
diligence) to advise on managing compliance matters and
aspire to engage regulators early to maintain and enhance
our regulatory licence to operate.
During FY24, there was one event of two penalty
infringement notices being issued to Cowal for
administrative non-compliances with permit conditions
and another at Mt Rawdon relating to an environmental
protection order resulting from unseasonal rainfall in late
2022. Both matters have been addressed and closed out
with the relevant government authorities. There was no
environmental harm related to these events.
There is a work health and safety enforcement action
underway related to an event at Mungari where a contract
worker operating their equipment injured their arm when
guarding was breached. One Enforcement Undertaking was
entered and accepted by the Regulator related to an event
where a worker received burns from a small fire caused by
an empty intermediate bulk container (IBC) at Northparkes.
(Note - this event occurred when the operation was not
under Evolution ownership). There was no other formal
enforcement action undertaken by a relevant government
authority in FY24.
Organisation
Board representation
Health, Environment, Community and/
or Indigenous relations representation
New South Wales Minerals Council
Yes
Yes
Queensland Resources Council
Yes
Yes
Chamber of Minerals and Energy of Western Australia
No
Yes
Goldfields Regional Network Forum (WA)
No
Yes
Gold Industry Group (Australia)
Yes
Yes
Lake Cowal Foundation (Australia)
Yes
Yes
Ontario Mining Association (Canada)
No
Yes
West Wyalong Advocate
Yes
N/A
NSW Government Sustainability Advantage
N/A
Yes
United Nations Global Compact
No
Yes (Modern Slavery Communities
of Practice)
Electric Mine Consortium
N/A
Yes
t
Industry associations
Involvement with industry associations keeps us current and aligned regarding public policy, emerging trends, regulatory
updates, stakeholder interests and the sharing of industry best practices. In FY24, we maintained representation on industry
working groups in all jurisdictions, including to address transitional climate risk. Evolution may not align with each public
position but where there is a benefit in constructive dialogue or advocacy, active membership and contributions are
maintained including with the following associations:
Testing, monitoring and measurement being
undertaken at the Cowal processing laboratory
Ghost gum trees may occur at several of our operations
Evolution Mining Annual Report 2024 | 57
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Crisis management and response
We use an established Crisis Management and
Business Continuity approach to identify and manage
incidents with potential to disrupt the operation.
Rigorous checking of control measures ensures
effectiveness to mitigate the risk likelihood and
consequence of any potential event.
The control measures incorporate organisational
responsibilities, available internal and external resources,
communication, escalation and training requirements,
supported by clear processes, guidelines and procedures
to manage crisis situations.
Our Incident and Crisis Management Planning is a live
process, with regular reviews and updates to incorporate
continued learning and improvement. Throughout FY24,
various operational activities (actual or scenario-based)
were undertaken to strengthen our training, with particular
focus on leadership roles critical to any incident command,
and recognising the importance of structure, responsiveness,
communication and competence needed throughout
response teams in these situations. We also engaged Mettle
Global to develop scenario-based training to support our
preparedness and resilience ahead of any potential critical
incidents. In FY24, active and ongoing crisis management,
including the response of and successful recovery of the
Ernest Henry Operation post the significant unseasonal rain
event, provided our response teams with real life learnings in
incident and crisis management. This Ernest Henry event,
which impacted production throughout FY24, served as a
critical learning in crisis management. We were proud of the
response and recovery efforts by our people to bring the site
back to production within seven months. Lessons were also
shared broadly across the rest of the business.
Extreme weather and health events
Extreme weather is one of the most Material climate-related
risks to our business and value chain, 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 First Nation
partners, landholders and regional communities, where
support for the communities and other nearby mines is part
of our overall first response effort. Our annual risk
assessments and TCFD/TNFD alignment reviews support our
targeted stakeholder engagement and reiterate the need to
test the effectiveness of controls and mitigations for 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.
In FY24, we embedded our learnings from the Ernest Henry
unseasonal weather event, and other natural flood events
within our communities, to ensure resilience is built into
our communities and business. Climate risk assessments
and mitigation were further integrated into all operations,
due diligence and project decision-making, providing greater
insight into the range of physical impacts and opportunities
for improvement in our response planning within the
value chain.
Mitigating actions at each operation include:
• preparing for cyclones and wet weather events;
• rain and wind proof infrastructure and shelters;
• certified water storage and drainage networks;
• proactive and preventative maintenance of equipment
and structures;
• 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; and
• first responder and crisis support and response
for communities and nearby mines.
Business responses are formally recorded in Trigger Action
Response Plans (TARPs), Emergency Response Plans and
Business Continuity Plans, and regularly reviewed. Robust
and proactive strategic planning is integral to ensuring
business continuity and the health and safety of the
communities where we operate. We support our
communities’ resilience and development through
our volunteers and Community investment program.
Business ethics
The Code of Conduct sets the standards for our people
to act ethically, responsibly and lawfully and applies to
Evolution Directors, all employees, contractors and
consultants employed to undertake work on behalf of, or
for Evolution and its subsidiaries. This is complemented by
internal supporting policies which include detail into defined
escalation processes and how matters are transparent and
reported through to the Board. We ensure that the Code of
Conduct and responsibilities therein are understood by our
employees, and included as part of contractual agreements
with consultants, advisors and contractors. 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. Values and Leadership Behaviours within the
Code of Conduct are assessed in individuals’ performance
reviews, and the resulting ratings factor into annual
remuneration STIP and other outcomes.
To remain in step or above industry standards, regulatory
amendments, and the operating environment we conduct
reviews of our governance in relation to business ethics,
including the Code of Conduct. In FY24, we engaged an
employment law firm to conduct an audit on our compliance
with the new Australian ‘Respect@Work’ legislation.
It proactively identified opportunities to maintain and
strengthen safe and inclusive workplaces and villages
across our operations.
Governance and Assurance
58 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
We have adopted the following recommendations:
• updated the Code of Conduct, including strengthening
anti-harassment, discrimination and bullying policies;
• introduced a new Sexual Harassment Policy including the
role of a bystander;
• adapted physical accommodation, lighting and security
design at our sites to support females’ physical and
psychological safety and wellbeing in the workforce; and
• implemented mandatory Respect@Evolution training for
all new and current employees, comprising the
requirements outlined in the updated Code of Conduct
and Anti-bribery and Corruption Policy.
These recommendations are complemented by our
established broad-based communication approaches to
ensure that all workers are aware of how they and their
colleagues should conduct their duties.
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 from page 130
of the Annual Report for information on Evolution’s
economic performance.
Anti-bribery and corruption
Evolution views any bribery or corrupt behaviour as
unacceptable. We do not operate or produce in the 20
lowest rankings in Transparency International’s Corruption
Perception Index 2023. We have an Anti-bribery and
Corruption Policy which extends across all our business and
activities, and applies to Evolution Directors, all employees,
contractors, business partners, and consultants employed to
undertake work on behalf of, or for Evolution and its
subsidiaries. Anti-bribery and corruption training is
mandatory for all employees through the Respect@Evolution
training, including definitions on conflict of interest.
We expect contractors, suppliers and business partners
to comply with 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 FY24, there were no reported incidents
of anti-bribery or 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
Policy and Whistleblower Standard 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 reports and their associated
actions are reported to the Board.
Evolution is committed to disclosing reports, areas of
concern, and investigation and remediation outcomes.
There were three Whistleblower cases reported in FY24
via the FairCall (KPMG) service in Australia and Canada.
Two cases were found to be unsubstantiated: one case was
for harassment and the other for not agreeing with an
investigation outcome. The third case of smoking on site
was substantiated.
Political parties and public organisations
In line with our policies, we uphold ethical and values 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
political or charitable contributions to support any such
parties, movements or organisations. We are committed to
disclosing political payments. In FY24, 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 this Report, 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 relevant legislation, including the
Australian Government’s Voluntary Tax Transparency Code.
Payments to government, including taxes and royalties, are
provided separately in the 2023 Tax Governance Statement
available at the website and ESG Performance Data
(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.
Evolution Mining Annual Report 2024 | 59
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Cyber security
Like many businesses and organisations, Evolution
faces constant and evolving cyber threats. The
operating and control systems at our 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 to 5+ years)
business risks. The risks of accidental or
unauthorised 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.
A risk-based approach is applied to manage cyber-related
security risks applying good practice across standard
processes. We leverage 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 security partners and
internal expertise. There are a range of measures and
controls implemented to manage cyber risk including:
• A Cyber Security Policy and strategy program applicable
to all employees, as part of the Evolution Information
Technology (IT) Strategy, with clear responsibilities
and a centralised IT function.
• Mandatory cyber awareness training for all employees
(90%18 compliance against 90% target) 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
third-party audits, vulnerability analyses, simulations,
Incident Response exercises, penetration testing, maturity
assessments against standards, and independent review.
• Regular cyber security risk assessments to ensure new
technology is appraised for security risks.
• Regular internal cyber reviews and checks including daily
systems checks, regular threat hunting, log analysis, and
access reviews.
• Encryption of laptops and mobile devices to ensure
information is inaccessible on lost or stolen devices.
• Defence-in depth and layering of security mechanisms
within our networks including Multi-factor-Authentication
(MFA) mechanisms for access.
Independent assessments and reviews have indicated an
effective upkeep of cyber maturity of our organisation. In
FY24 we continued to actively strengthen our cyber security
framework with a focus on:
• Training our people - Celebrating our Diamond (2nd
Place) award in ‘Best eLearning Design’ and ‘Best
Interactive Scenario (Industry Specific)’ at the 2023
LearnX Awards for the Evolution Cyber Security Module.
• Cyber security risk assessments against our IT and
operating technology (OT) environments, and cyber
supply chain risk assessments.
• Cyber security internal and external penetration
testing and remediation activities.
• Continued auditing OT controls assessments.
• Desktop incident response simulations and updated
response plans.
• Providing secure and dedicated remote access solutions
for our technology support vendors and contractors.
• Reviews and updates to our cyber security policies.
Management and the Board have continued to recognise
cyber security as a Material risk and receive regular reports
on cyber security preparedness. It is a standing agenda item
on the Board Risk and Sustainability Committee agenda,
with reporting at each Committee meeting with 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 and
OT systems is driven by a recognition that Evolution needs
to continually invest in cyber security.
Subsequent to the end of the financial year, a ransomware
attack occurred in August 2024 which impacted the IT
systems. It was contained by 12 August 2024. This event was
proactively managed and focused on protecting the health,
safety and privacy of our people, together with the
Company’s systems and data. TARPs were executed, with
operations managed safely, with no material impact to
production. The incident was also reported to the Australian
Cyber Security Centre.
18 Excludes Northparkes due to ongoing system integration as of 30 June 2024. 100% of relevant personnel at Northparkes completed an equivalent compliance in FY24.
Governance and Assurance
60 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
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Annual Report
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Financial Report
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 and Operating
Model
Policies, standards
and architecture,
e.g., IT Acceptable Use Policy
Cyber risk culture
and behaviour
Cyber risk management,
metrics and 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
(including backups)
Security platform
administration – daily,
weekly, monthly, quarterly
Data privacy
Information classification
Cloud security
Third-party risk
management
Evolution’s Cyber security framework
Evolution Mining Annual Report 2024 | 61
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Sustainable procurement
Management approach
Our sustainable procurement and partnering approach
enables a positive influence on our suppliers’ Sustainability
performance and business conduct. We proactively identify
opportunities to benefit communities by how and where we
source our goods and services. This includes integration of
sustainable procurement considerations into the concept,
(pre)feasibility, design and execution stages of projects.
We collaborate with our contractor partners to ensure
Sustainability is hard-wired into the long-term delivery of
all our projects and operational activities. By embedding
our Sustainability Principles and commitments into our
end-to-end procurement practices, we manage Sustainability
risks and opportunities, minimise adverse impacts and
promote positive environmental, social and economic
outcomes through our value chain.
To improve our supply chain’s social and ethical footprint,
our suppliers are screened and required to be accountable
for their actions with commitments to ensure they conduct
their business in alignment with our values and behaviours.
We expect our contractors and suppliers to comply with
high standards of governance, all applicable laws including
Australian and Canadian Modern Slavery legislation, and our
policies including the Supplier Code of Conduct and
Procurement Statement, which are endorsed by the Board.
This is a requirement in our contracts for which the parties
must be compliant, supported by active engagement and
key performance indicator (KPI) management.
Evolution supply chain
Exploration
and Discovery
Support services
Mining
Processing
Transportation
• Drilling contractors
• Geology and
geophysical
contractors
• Analytical
laboratories
• Health and Safety
specialists
• Surveying
• Earthmoving
contractors
• Environmental and
water consultants
• Mining and haulage
contractors, plant
and equipment
• Cement and ground
support supply
• Explosives supply
and blasting
services
• Fleet, maintenance,
parts and
equipment
• Fuel, oil and tyre
supply
• Blasting software
and consultants
• Mining
communication
• Geotechnical
services
• Site accommodation
management
services
• Power,
communication
and IT services
• Insurance
• Employee benefits
• Personal protective
equipment (PPE)
and Personal
protective clothing
(PPC)
• Legal and specialist
support
• Medical, health and
safety services
• Labour supply
• Water and waste
management
• Operations and
maintenance
contractors
• Supply of grinding
media flocculants
• Chemicals and
reagents supply
• Laboratory services
• Civil contractors
• Fuel and gas supply
• Freight services
• Haulage services
• Port services
• Stevedoring
• Shipping
• Bus services
• Air charter
services
• Travel service
Governance and Assurance
62 | Evolution Mining Annual Report 2024
Our approach to Sustainability
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Responsible environmental stewardship
Annual Report
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Financial Report
Our sustainable procurement activities are conducted in
accordance with our Human Rights Performance Standard,
Modern Slavery Business Guide, Procurement Statement,
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 Australian Modern Slavery
Act 2018 (Cth), and Canadian Fighting Against Forced
Labour and Child Labour in Supply Chains Act
(S.C. 2023, c.9) (the Canadian Act).
• Supporting local, regional, and First Nation communities
by increasing Indigenous participation and supporting
small and local businesses.
• Supporting our Net Zero commitment, and environmental
stewardship including waste management and biodiversity.
• Increasing capability and awareness among internal
and external stakeholders, including suppliers.
• Communicating our expectations and commitments
to human rights to all stakeholders.
• Monitoring our performance and the effectiveness
of our human rights policies and procedures.
In FY24, Sustainability continued to be used as a
performance driver in Evolution’s procurement process by:
• Integrating Net Zero pathway commitments and
considerations into procurement practices, particularly
for sourcing electricity and energy intensive goods.
• Exploring opportunities for the use of biofuels and clean
energy options with a number of key suppliers.
• External partnership building opportunities for Scope 3
emissions reduction and influence via our value chain.
• Strategies to reduce, recycle and reuse high volume
consumables categories, including tyres and lubricants.
• Proactive opportunities to work with and supply from our
First Nations partners, enhancing Indigenous participation
and our Indigenous Procurement approach as detailed in
the accompanying case study.
• Developing our fourth Modern Slavery Statement and
submitting our first report under the Canadian Act.
• Participating in the UNGC Modern Slavery Communities
of Practice for deeper understanding of challenges,
knowledge sharing, upskilling, and identification of
continuous improvement opportunities.
In FY24, Evolution had over 4,500 active suppliers and
contributed $1.87 billion in payments to suppliers.
Evaluation of Sustainability and business conduct
in tenders
Our suppliers must engage in our robust tender evaluation
processes that incorporate core Sustainability evaluation
criteria to support risk management in our upstream and
downstream activities. The core criteria include Health
and Safety, Environment, Climate, People and Culture,
Community and First Nations support, Modern Slavery
and Human Rights.
Specific considerations include: corporate governance and
accountability structures; existing Sustainability policies,
management plans, programs, risk assessments, monitoring,
incident reporting and performance metrics; quantification
of emissions and initiatives to reduce emissions; policies or
practices to enhance inclusion and diversity; business ethics
and conduct; as well as community and First Nations plans
and support.
In FY24, we continued to assess suppliers against our
evaluation criteria for Sustainability and business conduct
as part of our standard tender process. Our evaluation
criteria continue to mature, and in FY25 we will continue to
enhance our evaluation tools and templates to drive positive
environmental, social and economic outcomes through our
value chain.
In FY24, Northparkes produced 20,284 ounces of gold in the six and a half months since acquisition in December 2024
Evolution Mining Annual Report 2024 | 63
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Modern Slavery and Human Rights
Management approach
Respect for human rights is a core value at Evolution.
We maintain a zero-tolerance approach to any form of
modern slavery or adverse human rights impacts. We
acknowledge our role in eradicating modern slavery and
are committed to operating responsibly and upholding the
highest ethical standards. We expect the same from our
suppliers and partners as per our Supplier Code of Conduct.
We reject any activities that may cause or contribute to
modern slavery, including forced or bonded labour, child
labour, discrimination, human trafficking, slavery, servitude,
forced marriage or deceptive recruiting or remuneration
for labour or services. We also acknowledge the nature and
extent of modern slavery means there is a risk that it may
be present in our business operations and supply chains.
Our strategy of operating only in Tier 1 jurisdictions of
Australia and Canada mitigates our geopolitical, security,
and human rights risks. 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.
We acknowledge that operations and activities could
potentially cause, contribute to, or be directly linked to
negative impacts on the livelihood and human rights of
individuals and communities. We seek to evaluate, prevent
and mitigate any potential for adverse impacts and to
contribute to the promotion and protection of human rights.
This includes maintaining secure grievance mechanisms at
each of our operations, including Whistleblower protections.
Our Human Rights Sustainability Performance Standard
establishes principles and actions for how we identify,
prevent, mitigate, track and report on human rights risks and
issues associated with projects and operations. It draws on
the Universal Declaration of Human Rights, the UNGP, 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.
These commitments also inform our Modern Slavery Business
Guide which embeds the risk assessment of potential or
actual modern slavery occurring in our supply chains, with
steps to mitigate the risk, and actions required to assure our
business is free from modern slavery. 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.
In FY24, the Board Risk and Sustainability Committee and
Leadership Team endorsed the fourth Modern Slavery
Statement, and our first report under the Canadian Act.
We continued to apply a rigorous methodology to manage
modern slavery risks and are working to proactively
reassess the multiple tiers of suppliers that form the
extended supply chain.
Our risk assessment process establishes the identification of
modern slavery by considering country risk, product/service
category risk and supply chain risk, and we collaborate with
our operations to evaluate and rank suppliers as ’Low’,
‘Medium’ or ‘High-Risk’. We issue questionnaires on human
rights and modern slavery risks annually 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. Assessments to
date have not identified modern slavery in the operations or
supply chain. In FY24, our risk assessment was coupled with
consideration of salient human rights risks, expanding
on our sustainability-related risks and opportunities that
could affect Evolution’s strategy and financial performance.
They are detailed in the 2023 Modern Slavery Statement.
In FY24, we:
• Updated the Modern Slavery Self-Assessment
Questionnaire (SAQ) toolkit to better evaluate the
potential risk of modern slavery in business operations
and their supply chains, particularly in light of the
introduction of the Canadian Act.
• Had attendance by the Modern Slavery Working Group at
several education sessions with external providers, e.g.,
the UNGC Network Australia’s Australian Dialogue on
Business and Human Rights, for continual learning,
including increasing skills associated with the legislation
amendment recommendations.
• Reassessed the structure of our Modern Slavery Working
Group, to improve effectiveness, enhance diversity, clarify
roles and identify key focus areas. This review will
continue in FY25.
• Commenced a review of the modern slavery training
package against the updated Canadian Act and our
operational obligations. In FY24, 92 of our employees
completed targeted mandatory modern slavery training,
tailored for their roles and associated responsibilities.
• Continued to include modern slavery as a focus area
in our Supplier Relationship Meetings (SRMs) with key
suppliers, including discussions on risk identification
and mitigation, and industry learnings.
For more information, see the 2023 Modern Slavery
Statement and the Report to the Fighting Against Forced
Labour and Child Labour in Supply Chains Act provided on
our website.
We acknowledge our role in
eradicating modern slavery
and are committed to operating
responsibly and upholding
the highest ethical standards.
We expect the same from our
suppliers and partners as per
our Supplier Code of Conduct.
Governance and Assurance
64 | Evolution Mining Annual Report 2024
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Performance
The reporting of all human rights incidents is captured in
our 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 FY24, 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 contacted 198 medium to high-risk suppliers identified in
our supply chain to complete the Modern Slavery SAQ. There
was a 100% reception rate and 62% completion rate by these
suppliers and no actual modern slavery risks were identified in
our supply chain during FY24. Two potential incidents were
identified and investigated during FY24, with no further
action required.
While no actual 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.
As in previous years, in FY24, feedback was sought from ACSI,
who acknowledged progress and improved disclosures, with
suggested areas for further enhancement. These focus areas
included gaining deeper visibility into our Tier 2 and beyond
supply chains, detailing further outcomes from our risk
assessment processes, addressing higher-risk supply chains,
and connecting to worker voice through supply chains. These
have been prioritised as we continue to mature in our approach
to addressing and mitigating modern slavery risks.
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, risk mitigation, process,
measurement, and assessment.
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 as
both employer and resident in our local communities is
underpinned by local procurement decisions and processes to
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; and
• Engaging with local communities, including key contractors,
in various forums to discuss subcontracting, supply and
employment opportunities.
Performance
In FY24, $419 million was spent directly with local and regional
suppliers, including $353 million with local suppliers, a 54%
increase compared to FY23. The increase can be attributable
to the embedding of local, regional and Indigenous
procurement in our acquisition and project activities.
Perth-based and Supply Nation-certified Indigenous
business, Steve’s Transportables, was awarded a
$15 million contract to manufacture and deliver
accommodation units for Mungari Operation’s
new Castle Hill Village. The contract was awarded
by Rangecon, a regional WA business that is
constructing the new village. The collaboration
facilitated by the Group Projects team demonstrates
our aim to secure sustainable Indigenous
procurement opportunities throughout the
mine life cycle, including major projects such
as Mungari’s 4.2 Project.
Steve’s Transportables General Manager Duke Foley, said the
contract award would make a material difference to the
business of 40 team members and their local supply chain.
“As a Supply Nation registered business we endeavour to
be a holistic business, constructing the units sustainably in
Perth for durability and re-use. We are grateful to have been
awarded this project. Rangecon has been a very loyal
client that has supported Steve’s Transportables through
numerous projects.”
Rangecon Director Nic Hicks, said, “We’re proud to be
able to award the work to a quality company, on behalf
of Evolution.”
The village is due to be completed by March 2025.
We continue to explore other opportunities to expand local
and Indigenous supply for the village’s ancillary services.
Supply Nation works to connect 4,500 verified Indigenous
businesses with more than 750 paid corporate, government
and not-for-profit members across Australia. It helps drive
supplier diversity to create a more inclusive economy.
Major Indigenous supply
contract for Castle Hill Village
Case study
Evolution Mining Annual Report 2024 | 65
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Safe and engaged
workforce
Imagine if we can create an environment
where people go home better than how
they arrive. That’s what we aspire to create
– where people are healthy and safe, where
they have a voice and can contribute at
work, home and in the community.
Fiona Murfitt, Vice President Sustainability
Work health, safety and wellbeing
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.
We adopt a holistic and iterative approach to risk
management and apply principles that seek to eliminate risk
where reasonably practicable, and/or within agreed risk
tolerability levels. This process is supported by risk
identification and assessment, ongoing review and
improvements and active management and verification of
critical controls to ensure they are adequate, in place and
appropriately applied. We target continuous improvement in
health and safety performance and reduced incident
frequency to prevent the recurrence of incidents. We believe
every injury is preventable, with an ambition to provide 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, supporting and recognising our
own progress and that of the broader mining industry. It is
the accountability of Management to provide a healthy and
safe workplace and culture, supported by our workforce that
must, as a condition of employment, comply with health and
safety requirements, including reporting of incidents without
fear of reprisal. This is supported by systems and processes,
including the Sustainability and Strategic Planning Policy,
and the associated Standards regarding our people
and equipment.
Our workforce is actively involved in creating a safe and
healthy workplace through daily communications,
participation in working groups, crisis management, business
and system improvement initiatives, and health and safety
committees and representatives. In FY24, we continued to
improve by simplifying management system modules and
frameworks to mature risk management, data and records,
reporting functionality, and analysis.
For example, Red Lake converted its training management
system to separate compliance and competency
management, enabling more effective and focused
workforce training plans. The improvements enabled a
two-fold increase in data integrity and analysis. Centralising
performance and initiatives sheets, and using data
intelligence platforms like PowerBI, reduced manual data
collation and low-level analysis, and increased time spent
understanding strengths and opportunities for risk-based
improvement.
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, all workers
(employees, contractors, suppliers, business partners)
and those in our communities.
Ernest Henry emergency response team member active in training
66 | Evolution Mining Annual Report 2024
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Making Evolution a career highlight
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Responsible environmental stewardship
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Governance, risk management and assurance
A strong health, safety and wellbeing culture is supported
by a structured governance process from the Board and
Leadership Team to site management across the business.
The Board has oversight of Sustainability performance,
including specific elements of the risk management process.
The Leadership Team is accountable for developing the
strategy and implementing health and safety systems, and
processes to deliver performance standards, with General
Managers accountable for performance at each operation.
Health and Safety committees at each operation support the
leadership in decision-making, risk assessment, monitoring
performance, and ensuring widespread sharing of health,
safety, wellbeing, and environment information.
In FY24, all operations implemented Sustainability
Improvement Plans which establish clear accountability
for health and safety performance, detail the controls
and practices for minimising hazards, and support effective
planning and execution of health and safety systems aligned
with the Risk Management Framework.
Worker feedback has informed regular, at a minimum
monthly, reviews and updates of these plans. The FY24 plans
focused on critical control management for Material and
Critical risks through the review of our bowtie risk
assessments and the implementation of the Critical Risk
Management tool for improved verifications and data
insights. Read the related case study here.
Our culture is also maintained through ongoing care and
leadership, operational discipline, an engaged, competent
and capable workforce who understand the risks and the
associated controls most appropriate to manage them, and
regular in field discussions and inspections. The following
mechanisms support the capability and are expanded in the
Hazard identification and mitigation section.
Leadership training:
Annual site inductions, values training and
leadership essential training. Management
must undertake regular field safety interactions,
inspections and audits, supported by targets
and plans.
Daily pre-start briefings:
Before each shift, each department reviews
how the work will be done safely and reliably
and incorporates incident learnings, action
close outs, etc.
Pre-start assessments:
Prior to commencing specific tasks, guided by
a ‘Take 5’ checklist, 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.
Monthly safety toolbox (and pre-start) meetings:
Education and awareness campaigns on a range of
safety topics, e.g., food safety, hand injuries,
fatigue management or the safe handling of tools.
Regular safety inspections:
All equipment, tools, and 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 not changing or tampering
with any safety device.
Regular communications including the Daily Flash
and Report, Review and Learn sessions:
Daily incident updates business-wide, with weekly
sessions to share learnings related to incidents to
prevent recurrence, supported by a two-page
incident or shared learning report.
Hazard and Near miss reporting:
Proactive reporting including any near miss
significant incidents provides early warning to
prevent more serious incidents from occurring. All
incidents must be reported including those related
to potential drug and alcohol use. Random drug
and alcohol testing occurs across all operations,
ensuring our people are fit for work.
Investigations and learning:
Investigations, both proactive and reactive, and
shared learnings are fundamental to our approach.
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. They are thoroughly
reviewed and assessed to identify the root cause
and corrective actions to prevent recurrence.
The more near misses and hazards reported, the
better we understand the risks and appropriate
mitigants. All investigation outcomes are available
online and shared via the Daily Flash.
Evolution Mining Annual Report 2024 | 67
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Hazard identification and mitigation
Risk register
New and existing risks are actively reviewed and managed
with a strong focus on Material and Critical risks that could
have an impact on our strategic objectives.
Each operation is supported by a live 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 So Far as is Reasonably Practicable (SFAIRP).
Scheduled quarterly risk reviews are conducted at a Site
Leadership Team level and a regular review of safety
management across the business is undertaken at 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 FY24, the Board Risk and Sustainability Committee
endorsed an updated Group Risk Register that identified
Material risks informed by our business strategy and
objectives, as well as internal and external risk trends. Each
Material risk is accompanied by a Risk Appetite Statement,
developed through collaboration of Risk Owners and
relevant stakeholders, which is the amount of risk that
Evolution is willing to accept or retain in order to achieve its
strategic objectives and describes the Company’s attitude
towards risk taking. The Group Risk Appetite Statement was
reviewed and updated by the Board in June 2024 to reflect
the increase in exposure to copper.
The risk register sets out clear accountabilities for the relevant
risk owners, 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 and hazard reporting
It is mandatory for all people working on our operations to
report near misses and incidents. Our focus in FY24 has
continued through weekly significant incident Report,
Review and Learn sessions to ensure learning and prevention
is shared across all operations. Incident investigation levels
escalate with potential consequence severity. ‘Moderate’
rated events and below are at a minimum investigated or
analysed, and remedial actions identified. ‘High’ or ‘Material’
events are investigated using root cause analysis
methodology. All investigations are recorded with corrective
and preventative actions tracked and reported through to
completion. Management or the Board may also request
additional review on any incident.
Hazards must be controlled, and all workers are trained
in hazard identification, mitigation and reporting. Identified
hazards, including corrective and preventative actions,
are entered into the safety management 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.
Safe and engaged workforce
Training includes
an awareness and
education component
to help workers
understand our
risk management
principles, 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.
Our Social Responsibility and Underground Mining teams at Cowal underground
68 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Training
On average, each employee received 55.5 hours of health
and safety-related training in FY24. Of the 172,256 total
training hours, approximately 4,000 hours were specifically
regarding emergency or crisis response training. We
continue to streamline the training processes, conducting
analysis of training systems and the onboarding process for
all. The Board also undertakes annual risk training via
workshops or onsite visits. 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 and education involves building
learning experiences that promote curiosity and an ongoing
desire to learn. Our people develop valuable knowledge and
skills by connecting ‘the why’ – a simple prompt that reveals
crucial safety behaviours - with exposure to relevant and
contextual information. During FY24, we progressed the
format of online learning modules to be more interactive and
immersive by challenging the ‘click next’ type of learning.
We have seen the benefits of our more skeuomorphic
situated learning environment. Training includes an
awareness and education component to help workers
understand our risk management principles, 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.
Any person (employees, visitors and contractors)
entering an Evolution site is required to complete a
site-specific induction prior to arriving on site at both
the operational and Group levels, covering health, safety,
environment, community, and cultural heritage specific to
the location. In FY24, 4,918 site inductions were completed
across all assets and Group offices, which includes
permanent workers, shutdown workers and visitors.
They allow operational teams to receive site-specific
information, including Sustainability 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 workers to attend health and safety
training relevant to their position and their operational
environment, including an interactive training program
on Evolution’s Risk Assessment matrix. 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.
To effectively manage Material and Critical Risks so
far as reasonably practicable, a holistic Critical Control
Management process has been implemented
supported by the Critical Risk Management (CRM)
software program. The CRM portal and associated
mobile phone application provides a user-friendly tool
to manage site-specific Critical risks, critical controls
and verification activities, and produces real-time
analysis on deficiencies which contribute to better
strategic planning and improved decision-making.
Since initial adoption in May 2023, all Evolution operations
have now implemented CRM. Introduction of the CRM
software has included five interactive online training
modules complemented by onsite coaching and mentoring.
Each operation conducted a design process to assess the
verification framework which focused on the systems and
processes that underpin our critical controls. This has allowed
the proactive reporting, identifying and action management
of identified gaps, potentially eliminating incidents.
For field verification, the focus has been on working with
Manager and Supervisor verifications to allow for real-time
understanding and feedback provision. Overwhelmingly,
users have provided feedback that it is a user-friendly tool
that supports enhanced workforce knowledge on critical
control management and awareness of when a job/task is
being managed well or should be paused and controls
improved. In FY25, the tool will be embedded into
operational in field Risk Management processes.
Case
study
Evolution Risk
Revamp Project
supported by
new verification
app (CRM)
Evolution Mining Annual Report 2024 | 69
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Safe and engaged workforce
Communication
Regular sustainability-related communications that include
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 policies or
procedures, serious injuries or incidents and the controls
implemented to prevent a recurrence, and a monthly update on
Sustainability including safety against performance indicators.
The Daily Flash is also posted including updates on any 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 Sustainability information,
including health and safety matters 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.
Performance
In FY24 we continued to build on our proactive learning
culture among our people, focused on strengthening the
understanding of the Material and Critical risk controls that
maintain health and safety in the workplace. Each operation
implemented initiatives to help reduce the risk of incidents and
to minimise the potential of injuries and illness. Performance
varied across the operations and tailored programs and
improvement plans were designed to address the specific
needs of each operation. These were measured and tracked
with 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.
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 company KPI and achievement of our
annual safety targets are key metrics included in remuneration
packages 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.
In FY24, there were no work-related fatalities or permanent
disabilities. There were mixed levels of improvement in both
lead and lag indicators with a TRIF improvement of 13% to 7.69
against an adjusted FY23 baseline of 8.83 (includes
Northparkes 12mma). This is the lowest since FY21. The number
of exposure hours has continued to increase during this time.
While the FY24 TRIF met the set target, this data includes 65
recordable injuries with 16 being lost time injuries. Any injury is
one too many and we are never satisfied with our performance.
We believe every injury is preventable and we will continue to
seek deeper understanding of all injury cases. Our people are
empowered to be acutely conscious of their own behaviours
and safety of the conditions in their relevant operating
environment, to ensure we collectively learn and prevent
injuries together.
There was also a reduction in severity. This was supported by
the lower frequency of lost time injuries, reflecting increased
oversight to prevent more serious injuries, as well as increased
efforts to support and return our workers to meaningful work
after recovery. Improvement was also seen in leading indicators
such as reporting and communication of serious incidents,
including their causal factors and proactive significant incident
reporting. This trend supports an improved culture of reporting
and is evidence that controls are proving effective in
preventing the most serious consequence. This focus on risk
management was supported by the integration of the Material
Risk Review process in the Assurance Program.
Since the Northparkes acquisition, there has been ongoing
integration into Evolution’s health and safety processes and
systems. Safety interactions represent a new process for
Northparkes. This, and the updated calculation of safety
interactions to reduce duplication in FY24, contributed to a
reduction in Evolution’s total safety interactions.
We are continually learning, improving, and sharing how we
create a safe and healthy workplace with an emphasis on
preventing serious outcomes. We will continue to increase the
use of technology and data driven insights to reduce risk and
support a safe working environment.
19 Safety performance includes both employees and contractors and all operations.
20 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.
21 Excludes Northparkes. 7.69 including Northparkes 12mma, 7.48 including Northparkes 6mma.
22 Excluded Northparkes in FY24, similar to FY22 excluding Ernest Henry. TRIF FY23 baseline is 8.83 including Northparkes 12mma.
23 Lost Time Injury Frequency (LTIF) is calculated as (total lost time injuries x 1,000,000) / total hours worked.
24 Excludes Northparkes. 2.53 including Northparkes 6mma.
Safety performance comparison19
FY24
FY23
FY22
FY21
FY20
Number of safety interactions
36,020
45,541
45,096
49,107
54,287
Number of hazards reported
24,592
28,826
24,607
13,337
13,415
Significant incidents reviewed with senior management (%)
100
100
100
100
100
Proactive significant incidents
46
42
27
38
34
TRIF20
7.3721
8.63
10.66
9.62
6.76
TRIF Target
7.5622
9.33
10.75
5.25
5.50
LTIF23
1.8124
2.24
2.81
2.49
2.07
Fatalities
0
0
0
0
0
Total hours worked
9,497,227
8,453,290
7,128,241
5,612,323
5,323,912
70 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
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 person 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 that supports our
holistic approach to health and wellbeing with all workers.
Emergency preparedness
Emergency response programs are in place at all operations
and are rigorously reviewed and assessed to ensure the
business is prepared to respond to an incident and/or an
emergency. These risk-based plans determine foreseeable
emergencies based on operational, geographical and
environmental factors.
Crisis and Emergency Management Plans include
stakeholder engagement and involvement throughout the
emergency management cycle; prevention, preparedness,
response and recovery.
They detail protocols for communicating with external
stakeholders and outline the mechanisms for stakeholders to
report emergencies beyond our grievance mechanisms and
Whistleblower framework.
The local emergency response teams are predominantly
volunteer, comprising workers with additional training in
emergency protocols, procedures and safety equipment. The
programs include extensive emergency drills and training in
mine search and rescue scenarios, firefighting and
mitigation, CPR first-aid training, hazardous material
response, vertical and confined space rescue.
The accompanying response plan 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.
In FY24, we continued to build the capability of our 225
Emergency Response Team (ERT) members to support
operations and to assist communities through significant
incidents or threatening situations. We were there to support
the communities in the flood events impacting communities
near our Cowal and Northparkes operations, with fires near
Red Lake and other extreme weather events near our Ernest
Henry and Mt Rawdon operations. 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 offsite 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.
Emergency response and crisis management plan
Emergency response actions: to commence immediately to prevent loss of life, damage to environment or property and to
minimise harm.
Level 1 response:
Operations ERT action
at a site level.
Level 2 response:
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:
CMT leadership support
and management.
Evolution Mining Annual Report 2024 | 71
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Wellbeing and ways of working
A healthy and safe workforce supports engagement
and reduces absenteeism. Health-related campaigns
are regularly communicated 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 state. It
targets prevalent health conditions in our communities
including psychological wellbeing, occupational hygiene and
the effects of seasonal environmental changes.
Our people are encouraged to work in ways that are
innovate, agile and best suit their lifestyle. This includes
working remotely in line with our flexible work playbook,
ways of working charters, and feedback mechanisms.
Mental health
We take mental health seriously and consider this to be a
shared responsibility between Evolution and our workforce
when it comes to the workplace. During FY24, we continued
to encourage our people to speak up or seek help through
various channels, while monitoring trends in society,
communities or our workforce. We regularly promote the
importance of mental health throughout the year by:
• Supporting community events including R U OK?
Day, the Lifeline Ball, Mental Health Month, Movember,
STEPtember, the Push-Up Challenge; and
• Engaging doctors, psychologists and specialists to run
information sessions on mental health awareness with
our workforce and in our communities.
All employees and their families continue to have access
to the Employee Assistance Program (EAP), which provides
confidential solution-focused 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 FY24,
our people and their families accessed 333 EAP sessions
which represents a 56% increase in use of the system since
FY23. Evolution’s annualised usage of ~4% sits below
the Mining and Resources Industry level of ~5%. In FY25,
we aim to increase awareness of this service with a review,
relaunch and expansion of our EAP services to better
cover wellbeing.
We are committed to capitalising on the benefits of an
integrated care model and approach. This 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.
Read more case studies about how positive behaviours
in wellbeing and mental health are being embedded on
site: Dallas Adams delivers moving ‘Why Safety Matters’
session at Ernest Henry, and Mungari supports mining
for better health.
Safe and engaged workforce
In line with our efforts to continuously improve our
emergency preparedness, the Red Lake Operations
Emergency Response Team won the 2024 Red Lake
District Competition. The team, comprising nine key
team members across the operation, went onto
represent the Red Lake district at the Provincial
Championship, the first time any of the team
members had the opportunity to compete at the
Provincial level.
Teams in a competition and real-scenario basis were tasked
with retrieving a person from a confined space and treating
a diabetic with low sugars, then encouraged to use a
state-of-the-art foam generator to eliminate a simulated fire,
but with a challenging twist.
The team owed their success to their emergency response
partners, Site Leadership Team and supervisors who enabled
the coordination of the event and their training. They did a
great job and represented our business with great
commitment, passion and determination.
Read more case studies about how we prepare and support
communities in emergencies and times of crisis: Mungari
Operations partner with Shire of Coolgardie to provide relief
following power outage.
Red Lake Operations win District
Emergency Response Competition
Case study
72 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Fatigue management
We recognise the risks associated with employee and
contractor fatigue and the responsibility we have 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.
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.
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.
Transport safety
Management approach
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 to, from and within the site.
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. We require all workers, including
contractors, to comply with these minimum standards and
to maintain a Health, Safety and Environment Management
Plan or similar. 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 (including BARS), to assess specific
aviation technical matters and obligations.
International SOS has 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 within
geopolitically sensitive locations. Strict governance and sign
off protocols remain in place for all overseas travel with
oversight and approval required from the Leadership Team.
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. We have pursued
improvements through the Evolution Community of Practice
(CoP), linked with our Chain of Responsibility (CoR)
obligations, driven by a shared vision to reduce vehicle
interaction risks, incidents and near misses across the
business through both driver behaviour and targeting
technological solutions.
Performance
100% of charter airlines in use throughout FY24 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 FY24.
Vehicle Collision or Rollover is a Group Material risk
monitored at the operation and Group level. Robust action
plans have been developed and implemented to ensure
critical control verification and management, which are
tracked and reported through site risk review meetings.
Findings are linked to our CoP for Vehicle Safety for
distribution and wider learning.
Hazardous chemicals management
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 safely
through their life cycle 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
life cycle in accordance with the minimum standards
outlined by relevant jurisdictional requirements and
Evolution’s Standards. They operate in line with specific
management plans and guidelines governing the safe
collection, separation, storage, reuse, use of waste
contractors, disposal of waste, including hazardous chemical
waste, and monitoring. They reflect local legislation,
regulatory requirements and site-specific procedures
and obligations in environmental impact assessments.
Cyanide destruction systems are adopted to reduce the
concentration of cyanide discharged to the facilities.
Regular assurance activities are undertaken to ensure
operations meet Standards for the handling, storage
and disposal of hazardous chemicals and to identify
best practice learnings that are shared across the business.
Performance
In FY24, we managed hazardous chemicals risks and
opportunities via:
• Cowal and Red Lake recertification as compliant against
the ICMC.
• Ongoing management and engagement with the
regulators on permit or licence compliance and/or
non-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 third-party auditors.
Evolution Mining Annual Report 2024 | 73
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Making Evolution
a career highlight
We want to be great at creating the
Evolution experience so that working
with us is a career highlight for
our people; one in which they feel
included, respected and inspired.
Paul Eagle, Vice President People and Culture
Management approach
We aspire for Evolution to be a career highlight for our
people. Our long-term success is underpinned by our people
being safe and healthy, feeling included, having a voice and
living our values of safety, excellence, accountability 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 and/or other attributes and we are committed to
respecting differences.
We focus on attracting and retaining talent, monitoring and
providing skills development for the future, and providing a
dynamic workplace with a culture of inclusion, transparency
and listening. Our policies outline the expected standards of
behaviour, creating the basis for an inclusive and diverse
workforce. This includes the Code of Conduct, flexible
working principles, Inclusion and Diversity Policy, and a
range of employee support networks including
Whistleblower Policy, EAP, Manager Assistance Program
(MAP) and Workplace Contact Officers.
Performance
As of 30 June 2024, we employed 3,101 Permanent,
Fixed Term and Casual employees, compared to 2,729 at
30 June 2023. The increase in workforce numbers is largely
attributable to the acquisition of Northparkes in December
2023. 87% of our employees chose to stay with Evolution in
FY24 which is a ~4% improvement since FY23, and a strong
result in a competitive labour market.
We measure employee engagement through the biannual
Your Voice engagement survey which was implemented
across our business in FY24 following a successful FY23
pilot. The April 2024 results indicate that 65% of our
employees are engaged compared to the Qualtrics Global
Average benchmark of 77%. Some results, such as
Engagement levels, that were below Global benchmarking
can be attributed to FY24 being the first year of the survey
being implemented across Evolution, and the ‘Neutral’
responses of our people. This indicates we have opportunity
to continue maturing our awareness and use of this still
relatively new tool year-on-year. FY24 will serve as a baseline
survey with results presenting clear actions across the
business to increase employee engagement, particularly
concentrated on career development.
Mt Rawdon General Manager with the 2024 Melbourne Cup made from gold mined at Mt Rawdon
74 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Gender mix participation
Female representation in our workforce in FY24 was
19% (FY23: 18%) compared to the Australian industry
average of 22%. The number of females in senior leadership
positions increased significantly to 22% in FY24 (FY23: 14%).
Approximately 25% of the Graduate Development Program
hires in the 2024 intake were females (FY23: 28%).
In June 2023, Evolution announced gender workforce
participation targets aligned to the Australian Mining
Industry average. We have committed to 22% of the
workforce being female by the end of FY25. To meet this
target, we need a material shift and have implemented
targeted strategies with a focus on attraction, retention,
and overcoming unconscious biases. Initiatives to increase
the representation of women, particularly at senior
levels include:
• Application of Evolution-wide Internal (Succession) Talent
Pool processes that promote consistency, inclusivity and
fairness into internal role appointments;
• Female participation in leadership programs and external
mentoring programs;
• Implementing consistent inclusive recruitment processes
and practices across the organisation;
• Embedding inclusion in all our leadership programs;
• A new Leader Transition Program including a bespoke
coaching component for Managers; and
• Mandatory Respect@Evolution training for all new and
current employees which including specific elements
focusing on bullying, harassment and sexual harassment
in the workplace.
We are committed to achieving higher female workforce
participation rates and understand the importance of
continuing to build our inclusive culture. Our short-term
aim is to reach the industry average, and then apply stretch
principles to see that we drive ahead for the benefit of
the industry.
Indigenous participation
The focus remains on growing a pipeline of Indigenous
candidates, including to leadership, and proactively
identifying experienced external talent with the skillsets
needed by the organisation. In FY24, Indigenous people
comprised ~7% of the Evolution workforce, a slight
improvement since FY23.
We focus on attracting and retaining
talent, monitoring and providing
skills development for the future, and
providing a dynamic workplace with
a culture of inclusion, transparency
and listening.
Northparkes Processing team members
Evolution Mining Annual Report 2024 | 75
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Diversity and Inclusion
Management approach
We recognise the benefits of having an inclusive and diverse
workforce, where people’s experiences, perspectives and
backgrounds are valued and utilised. Everyone at Evolution
should 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 enablers for driving
business performance and success. It is our role to ensure
they feel equipped, engaged and motivated to succeed.
We do this by providing a safe and healthy workplace, a
supportive team, strong leadership and meaningful work
with career and development pathways.
We believe in equal pay for work of equal value and continue
to identify and address any gender pay gap issues. In the
FY24 Annual Remuneration Review, we analysed the
remuneration of employees against their specific market
data (Australia and Canada) addressing gender-based pay
parity. We report annually to the WGEA which, for the first
time in 2024, published the gender pay gaps for individual
companies and utilise the opportunity to review industry
peers, and identify improvements in our policies and
practices. Evolution has a higher gender pay gap for total
remuneration, ~18%, compared to ~14% of same sized mining
companies and ~15% of all mining companies. This is driven
by a relatively low number of women making up our
workforce and lower representation and tenure of women at
senior levels compared to men.
Performance
Inclusion and diversity continues to be a highly important
focus area with identified need for improvement, with open
dialogue, initiatives and visible leadership targeted to make
a positive difference. This supports our values driven culture,
the communities in which we operate, and our people feeling
they are included and belong at Evolution. We recognise
inclusion drives positive diversity, diverse backgrounds and
thinking, respectful teamwork, innovative outcomes and
stronger business results. In FY24, we:
• Continued to focus on achieving our gender workforce
participation target through attraction and retention of
females in the workforce.
• Living our Values conversations were conducted by
managers once removed to check in on culture, values
and inclusion. 100% of senior management completed
these discussions. Overall, 61% of the conversations were
completed with employees, and while below the stretch
target of 100%, the quality and value shown has reinforced
our ongoing commitment to this activity.
• Implemented the biannual Your Voice engagement survey,
with specific questions to understand our people’s
perception of inclusion. The result was 61% favourable
compared to a Global Average benchmark of 74%. The
FY24 data provides valuable insights that will support
further improvements in inclusion and diversity.
• Implemented mandatory Respect@Evolution training for
all new and current employees, complementing the
previous Leading Inclusion for Leaders and Inclusion
Awareness for employees.
• Launched a comprehensive Employee Support Network,
outlining the ways in which our people can access support
as detailed in the Employee Relations section.
• Conducted annual audits of operations’ inclusive
practices, facilities and symbols, including a third-party
audit through an employment law firm to assess our
compliance with Respect@Work.
• Integrated inclusion into our suite of Leadership
Development programs, including introducing a specific
Leadership Transition Program to support our people
moving into new leadership roles.
• Implemented specific recruitment practices including
requiring a gender diverse recruitment panel and at least
one female on each recruitment shortlist, where practical.
• 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 WGEA.
Refer to the ESG Performance Data document for more
information about Evolution’s inclusion and diversity
performance based on age, gender and Indigenous
representation.
Making Evolution a career highlight
As at 30 June
2024
As at 30 June
2023
As at 30 June
2022
As at 30 June
2021
Australian Industry
Average 2024
Overall female representation
19%
18%
19%
20%
22%25
Management female representation
21%
20%
20%
17%
N/A
Non-Management female
representation
19%
18%
19%
20%
N/A
Overall Indigenous representation
7%
6%
6%
7%
N/A
25 AON Mining, Infrastructure & Engineering Remuneration Report April 2024
76 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Lindsey Killer, runner up
Exceptional Young Woman in
Queensland Resources 2024 at
the 2024 Queensland Resources
Council/WIMARQ Awards
Water sampling at Mt Rawdon
We are committed to fostering a workplace that
is inclusive and representative of our diverse
communities and acknowledge we need to do more
in order to materially shift our performance and meet
our targets. We have learnt that our people,
including our female workforce, joined Evolution for
work life balance, suitable rosters and opportunities
for career improvement, though retention has been
challenged due to pay, flexibility and promotion
opportunities. In FY24, we set targets around female
participation and reinvigorated our Inclusion and
Diversity Committees to address these challenges.
Champions across the business remain passionate
about improving this space, with some leaders
recognised for their contribution in this area.
Cowal Gold Operations Open Pit Supervisor Nadine Heal was
the winner of Exceptional Tradeswoman/Operator/
Technician Award at the 2024 NSW Women in Mining
Awards. She also won the Outstanding Tradeswoman/
Operator/Technician in Australian Resources Award at the
2024 Women in Resources National Awards. Cowal Gold
Operations Manager Kyal Hunter was also recognised as a
finalist as an Inclusion and Diversity Champion at the 2024
NSW Women in Mining Awards. Both have played crucial
roles in fostering a more inclusive and diverse workplace and
Nadine has mentored women at Cowal, while significantly
improving female participation in operational roles.
Ernest Henry Operations Metallurgy Supervisor Lindsey
Killer was runner up in the Exceptional Young Woman in
Queensland Resources category at the 2024 Queensland
Resources Council/Women in Mining and Resources
Queensland (WIMARQ) Awards.
Achieving our targets will require developing our people,
and building capabilities and inclusion, for example through
ongoing participation in mentoring programs. In 2024,
we sponsored 17 of our female employees to participate
in external mentoring programs through the AusIMM WIMnet
Women’s Mentoring Program, the QRC/WIMARQ Women
in Mining and Resources Queensland (WIMARQ) Mentoring
Program, and the Women in Mining WA (WIMWA)
Mentoring Program.
Case
study
Inclusion
and Diversity
project
outcomes
Evolution Mining Annual Report 2024 | 77
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Talent attraction, retention and employee engagement
We recognise that an engaged and high performing workforce
is essential for the success, growth, and organisational
capability of the business. Talented people are at the heart of
our success, and we always aim to identify, attract and retain
people who are highly skilled, and aligned with our values.
We aim to develop our people by investing in their careers
through a variety of internal and external development
offerings, and development opportunities and plans targeted
to individual needs, short and long-term career goals and
aligned to business requirements.
During FY24, our Your Voice survey allowed us to measure
engagement and our people’s experience throughout the
employee life cycle using the Qualtrics platform. The tool
enables us to externally benchmark engagement, inclusion
and retention against Qualtrics global, country and industry
norms. The biannual 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 experience, employee engagement, intent to stay,
manager effectiveness and inclusion. The insights into our
culture support us to proactively manage our people and
their concerns across the organisation.
Making Evolution a career highlight
The April 2024
survey had a 67%
participation rate with
results indicating:
65%
81%
77%
87%
of our employees
are engaged
compared to the
Qualtrics Global
Average benchmark
of 77%. We have
implemented
strategies focused
on improving
outcomes in FY25.
feel their supervisor genuinely
cares about their wellbeing
aligned with the Global benchmark.
feel psychologically safe and
comfortable to voice their opinions,
aligned with the Global benchmark.
feel there is a
commitment to
safety throughout the
business, aligned with
the Global benchmark,
and exceeding
the benchmark
in supervisors
demonstrating
commitment
to safety.
We have identified key drivers to improve our peoples’ experiences, including development of career goals supported by clear
roles and purpose, ensuring confidence in senior leadership, management of change, providing honest, meaningful feedback
and communication and giving recognition. In response, we have implemented a bespoke career development leadership
essential program, focused on senior leadership, supported by the new Communications and Corporate Affairs team.
Engagement and listening
78 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Attraction
In FY24, we undertook several initiatives to enhance
employee attraction and recruitment and better position
Evolution to achieve its growth strategy over the next three
years. Initiatives included:
• Strengthening our Employee Value Proposition (EVP)
including refreshed internal and external messaging
focused on why people join and stay, the motivators
and drivers of their experience and building a career
in Evolution. A new Careers Website was launched to
inspire and connect people to our EVP.
• Consolidating the reporting of recruitment statistics
with enhanced and accessible recruitment dashboards
enabling dynamic analysis and decision-making.
• Streamlining and more consistent onboarding and exit
surveys, enabling increased data collation and deeper
insights into our peoples’ motivators and experience
at Evolution, improvement opportunities in onboarding
and mitigating controls to prevent people leaving.
Retention rate
Strong levels of retention have been maintained across the
workforce in a highly contested and competitive market
with 87% of people choosing to stay with Evolution in FY24
(FY23: 83%). 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
a 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 FY24, 68 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 tenth 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 objectives and values,
and their wider efforts. In addition, our rewards include a
generous Long Term Incentive Program with a three-year
vesting period in which all Superintendents and above are
eligible to participate.
Training and education
Extensive training is provided to increase or improve skills
and knowledge that mitigate the risk of health and safety
incidents, meet compliance requirements, and increase
employees’ understanding of their responsibilities towards
the environment and our communities. The annual
performance review also covers training and development
needs and goals.
In FY24, the continued focus on development, leadership
and retention was measured through:
• 65% of people fulfilling their stated development goals;
• Continuity in our leadership pipeline effectively retaining
and attracting top talent in the Management group;
• 342 of our leaders participating in dedicated leadership
development training, five cohorts of our frontline
Introduction to Leadership program, one cohort of our
GOLD mid-senior leadership program;
• Introduced a bespoke Leadership Transition Program
for all people transitioning into new leadership roles
(Superintendent and above); and
• Delivery of a total of 240,402 training hours in FY24
(vs 167,308 in FY23): an average of 55.5 hours per
employee (compared to 61.5 in FY23).
The delivery and embedding of our refreshed Leadership
Development suite of programs continued; all programs are
underpinned by our Leadership Behaviours, inclusion and
management of change. 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 the
fundamentals of being an effective leader.
The GOLD mid-senior development program was delivered,
with an enhanced focus on innovation, as well as on building
leaders who are values driven, resilient, agile, commercially
minded, inclusive and delivery focused. FY24 also saw
additional offerings to the suite of Leadership Essentials
training programs.
Cowal Geology team conducting in field inspections
Ernest Henry processing plant and stockpile
Evolution Mining Annual Report 2024 | 79
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Graduate program
In 2024, Evolution was ranked second in the mining industry
and 17th in Australia for employers of small graduate intakes
by the AAGE. The rankings are determined from data
collected via AAGE’s annual Graduate Survey, with feedback
gathered from graduates who have spent up to 12 months
working with these organisations. In 2024, we hired 28
graduates (25% female), who are now providing our business
with a wealth of skill, knowledge and diverse thought
experience – enhancing our teams with their different
perspectives and fresh thinking.
Since 2013, the two-year program has supported the growth
and development of Evolution’s future diverse workforce.
It provides broad exposure across our operations 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. 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.
Mentoring
Mentoring opportunities are offered to our employees as
they enhance the mentee’s personal and professional
growth, which contributes to the skillsets and success at
Evolution, and enables networking and relationship building
across the business. Our people are provided with internal
resources to initiate and sustain a mentoring relationship
internally and external of Evolution. Read the related case
study here.
Employee relations
Management approach
Our approach to employee relations focuses on direct
two-way engagement, 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.
Operating in a Tier 1 jurisdiction with strict legal frameworks,
especially as an ASX listed company, Evolution is at an
extremely low risk of not paying employees and contractors
living and minimum wages. 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.
Making Evolution a career highlight
Evolution mentors and mentees in the AusIMM WIMNet mentoring program
80 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
We actively manage recruitment and seek redeployment or
retraining of employees impacted by workplace changes.
Where we are unable to redeploy employees, our
redundancy and outplacement programs support employees
with the transition. In April 2024, we transitioned our Mt
Rawdon Operations to day shift only with support in place
for employees to understand the change and potential
impact on wellbeing, access to face-to-face counselling
sessions, implementation of career conversations and
opportunity for employees and contractors on site to attend
outplacement sessions.
We have a range of communication and support channels
available to all employees. These channels include access to:
the employee’s direct supervisor or manager; People and
Culture representatives; regular team meetings at each
operation and function; the intranet; incident reporting; EAP;
Workplace Contact Officers; Mental Health First Aiders; and
informal channels through Management. Formal grievance
mechanisms are also in place supported by an independent
24/7 Whistleblower hotline, which have clear reporting lines
to the Leadership Team and the Board.
Performance
All our employees have the right to freedom of association.
This is supported by our internal policies and National
Employment Standards as legislated within the Fair Work Act.
In FY24, 22% of our employees were covered by collective
bargaining agreements. There were no strikes, lockouts or
work stoppages of significance at our operations in FY24.
Our Enterprise Agreement at Cowal, Evolution Mining
(Cowal) Enterprise Agreement 2024, was renewed during
FY24 with no disruption to the workforce. No operations
have been identified as being at risk for incidents of child
labour or having young workers exposed to hazardous work.
We have 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 Statement.
Non-discrimination
We are committed to providing a respectful workplace for
our employees, one that is free of any form of harassment,
discrimination, bullying or violence. This is a matter of
priority for us, and we continue to make progress, reflecting
the emphasis we place on this.
Evolution, throughout FY24, continued to work and
recognise our positive duty under the December 2022
introduction of Respect@Work legislation. Our Board of
Directors recognises our responsibility to manage our
positive duty obligations to identify and eliminate issues
of sexual harassment, sex-based discrimination and
victimisation. Both the Evolution Board and Leadership
Team have direct oversight over these matters to ensure
we are upholding our values, policies, standards and
Code of Conduct.
Our Code of Conduct and Inclusion and Diversity Policy
prohibits discrimination, bullying or harassment of any kind
or in any part of the employment relationship. In the event of
a suspected breach of our Code of Conduct, or if concerns
are raised, 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 any breaches, including
unacceptable conduct.
We are committed to providing
a respectful workplace for our
employees, one that is free of
any form of harassment,
discrimination, bullying or
violence. We continue to make
progress in these areas,
reflecting the emphasis we
place on this.
Northparkes Social Responsibility
leader working within the community
Evolution Mining Annual Report 2024 | 81
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Trusted partner in
our communities
In every jurisdiction in which we operate
we focus on securing regional benefits
that increase local capacity and economic
development in pursuit of long-term
positive outcomes for all.
Barrie van der Merwe, Chief Financial Officer
Management approach
Given that 65% of our employees live near our operations,
we acknowledge the strong links and ties to the
communities where we operate and live. Our ongoing
success depends on maintaining the social licence to
operate with our communities as they experience the most
direct social, environmental and economic impacts from the
business. We engage proactively with our local communities,
with respect to their culture, to identify, understand, and
mitigate risks, and identify opportunities for improvement to
ensure long-term development and benefits catered to
community needs. Engagement occurs as early as possible
within the mining life cycle, including the assessment of
social and economic conditions and impacts prior to settling
in new areas.
Our approach is to:
• Build and maintain engaged relationships based on
mutual trust, respect, understanding and free, prior
and informed consent (FPIC);
• 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; and
• Have a workforce and Management that creates strong
local ties and community understanding.
We implement genuine and effective stakeholder
engagement in a continuous, iterative process of
communication and negotiation spanning the planning and
project cycles. We reference the United Nations Declaration
on the Rights of Indigenous Peoples by conducting our
engagement with consideration for the principle of FPIC
applicable to the rights of Indigenous peoples and other
land-connected peoples.
Each operation is responsible for developing and
implementing a Social Responsibility Plan, with strategic
focus areas in Community relations, Indigenous relations and
Operational excellence, reflecting our stakeholders’
aspirations and operations’ goals for the financial year. The
plan is approved annually, Operations update Group on their
Plans monthly, and ultimate accountability sits with the Chief
Executive Officer and primary responsibility with the Vice
President Sustainability.
Each operation has a Social Responsibility Team managing
engagement with communities, pastoralists, private
landowners, First Nation partners and Indigenous peoples,
contractors and educational institutions, and local
government for tenement applications, regulatory approvals,
ongoing operations, training and employment. They are
trained to conduct effective dialogue focused on maintaining
trust and addressing stakeholders’ issues. The operation’s
General Manager is responsible for engagement and
investment towards outcomes in local sustainable
development. They are supported by the Group Manager
Indigenous Relations and Community Partnerships, and
Group Sustainability function, who provides a consistent
and accessible resource for our communities and supports
future Indigenous employees and businesses.
Dinawan’s Connection performance at the Condo SkyFest 2024
82 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Key responsibilities of the team include:
• Cultural heritage - Working with First Nation partners to
ensure ongoing identification, recognition and protection of
cultural heritage, including through heritage surveys aligned
with agreements and legislative guidelines to enable
risk-based design to avoid areas of heritage significance.
• Indigenous stakeholder outcomes - Liaising with First
Nation partners for equal training and employment.
• Community engagement and investment - Identifying,
assessing, and implementing community investments,
including SVPs, using current local tools and criteria.
During FY24, we continued to strengthen community
connections by:
• Increasing our visibility and presence with town offices.
• Communicating and consulting meaningfully on
projects, e.g., Cowal Open Pit Continuation, MRPH,
Northparkes acquisition.
• Evaluating and furthering our relationships with
non-government conservation organisations, schools
to develop work experience programs, and broader
community through targeted community forums on
business development and employment.
• Reviewing robustness of community investment
processes, ensuring there are local partnerships focused
on development, resilience and capability.
Our ongoing success depends
on maintaining the social
licence to operate with our
communities as they experience
the most direct social,
environmental and economic
impacts from the business.
Northparkes Management with community members
Community day site tour of the Mt Rawdon Operations
Evolution Mining Annual Report 2024 | 83
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Cultural heritage and Indigenous stakeholder outcomes
Cultural heritage
Management approach
As the short-term custodians of the land on which we
operate, we respect the rights and role of First Nation
partners and Indigenous peoples and consider protection of
cultural heritage as an honour and responsibility. We value
our partnerships and are committed to collaborating to
identify, protect and preserve Indigenous cultural heritage,
and to promoting our First Nation partners and Indigenous
peoples’ history, culture, and outcomes.
Our Sustainability Principles reflect Evolution’s prioritised
UNSDGs and include focus on ‘Advancing the outcomes for
Indigenous peoples and protecting their cultural heritage’.
We operate in accordance with this Principle and Social
Responsibility Performance Standards to guide our
responsible engagement in line with FPIC, and meet
performance requirements related to planning, performance,
communication, integration of community input, periodic
assurance and monitoring, reporting and review. As per the
Standards, we apply formal procedures, processes, and
grievance mechanisms related to Indigenous community
engagement, economic inclusion and cultural heritage
conservation, to meet and exceed applicable legislative
requirements.
Protecting Indigenous and historical cultural heritage is
integral in our risk management practices. Prior to any
development, we conduct archaeological and ethnographic
assessments, due diligence and surveys 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
maintain Cultural Heritage Management Plans (CHMPs).
The CHMPs detail procedures for avoiding disturbance to
significant sites, or, if unavoidable, minimising impacts such
as by appropriate relocations or excavation methods.
Tangible and intangible cultural heritage uncovered during
project activities are recorded, documented and submitted
to the appropriate government departments. During the
mine life cycle, we work closely with our First Nation
partners to continuously manage risks, identify and preserve
cultural heritage sites, and incorporate Traditional
Knowledge studies where appropriate. Any cultural sites are
identified in the impact assessments and marked on maps so
that they are not destroyed or damaged by our activities. In
support of this, we incorporate cultural awareness and our
First Nation partners’ customs and traditions in our site
induction training, and support activities to promote the
culture of host communities.
We maintain agreements with our First Nation partners
which outline obligations in heritage protocols, employment
and business opportunities, community engagement,
collaborative cultural awareness training, health and
education initiatives, and work ready programs. We
proactively work with them to identify opportunities
to collaborate.
Our FY24 Sustainability Assurance Program highlighted
good alignment across all assets in understanding and
implementation of the Social Responsibility Performance
Standards. They provide assurance that current governance
practices are adequate to ensure the protection of cultural
heritage, relationships and values.
Trusted partner in our communities
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.
Identified scar tree at Northparkes within the Wiradjuri Garden
84 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Performance
Our Environment and Social Responsibility teams liaise
with 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, Relationship Agreements,
and/or Exploration Agreements. They are negotiated in
good faith, fairly and equitably towards mutually beneficial
outcomes and fair compensation, and ensure we work
in partnership to support opportunities that promote
self-determination including:
• Enabling our partners to maintain, control, protect and
enhance their tangible and intangible cultural heritage,
traditional knowledge and cultural expressions. For
example, CHMPs prescribe all reasonable steps to be
taken when undertaking operational or exploration
activity with potential to uncover or disturb cultural
heritage and may include provisions to promote
Cultural Awareness Training.
• Supporting the improvement and sustainability of
socioeconomic conditions including negotiated royalties,
compensation, or consideration to employment, training
and development opportunities and awareness of
business opportunities within the operational footprint.
• In Canada, agreements with First Nation partners outline
mutual commitments and responsibilities to engage and
consult on cultural resource surveys, and identifications
of culturally sensitive sites, among many other
environmental provisions. The agreements provide
substantive avenues for First Nations to discuss
environmental matters, from the earliest stages of the
projects to closure and reclamation.
• Regular engagement and review provisions to ensure the
relevance and validity of the agreements in line with
legislative updates, operational growth, and changes
within the local community.
Each operation and project 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 and
investigated in line with our Standards, with findings
communicated to stakeholders and the Board. Cultural
heritage impacts, risks, or material changes are included
in the Risk and Sustainability Committee Report as a
standing report item at least three times a year.
During FY24, 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 WA enables land
users to seek consent to disturb Aboriginal sites if it is
deemed such impact is unavoidable. In FY24, we sought
no Section 18 clearances for Mungari, our Western
Australia asset. We engaged our partners and government
departments to manage the impacts of the repeal of the
Aboriginal Cultural Heritage Act 2021 in Western Australia,
and remain cognisant of its impacts on our relationships
and agreements.
Children enjoying a local community event while caring for an emu chick
Evolution Mining Annual Report 2024 | 85
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Indigenous stakeholder outcomes
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 aim to develop strong relationships that support
self-determination and aspirations, and build appropriate
skills, capabilities and resources that ensure long-term
success and positive outcomes for their communities.
While we have increased Indigenous employment in FY24
to 7% (FY23: 6%), we remain 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 guide all local
procurement plans and remove barriers to participation in
our business. The rollout of these guiding documents has
been reassessed to align with our broader Reconciliation
Plan, and the implementation of FY25 Inclusion and
Diversity Plans.
Performance
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 operations,
exploration, and other engagement. In FY24, no Indigenous
peoples or vulnerable groups have been subject to voluntary
or involuntary resettlement or displacement. 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 with Indigenous peoples.
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. This vision is maintained despite
the results of the 2023 Australian Voice Referendum,
and Evolution aligns with the 6.2 million Australians
who voted YES and are committed to better outcomes
for First Nations people.
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
is guided by our Cultural Recognition Position Statement,
Indigenous Relations Approach, and Cultural Competency
pathway. This engagement is facilitated by our Group and
Site Social Responsibility teams and supported by Social
Responsibility Plans developed 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.
In FY24, we continued to transition from Recognition to
Reconciliation. Underpinning this transition is our approach
in promoting Indigenous culture and building relationships
based on trust and respect. We reviewed our Cultural
Recognition Position Statement and conducted deep dive
discussions with members of our Leadership Team on our
alignment with Reconciliation Australia’s framework to
form a Reconciliation Plan. These discussions identified
an improvement opportunity for Evolution to reflect on
our risks and opportunities, timing and resourcing. It also
prompted reflection on the collaboration required 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.
As we address these risks and opportunities, we will
continue to embed our Australian-focused cultural
competency program, piloted in FY23. The program builds
awareness of Aboriginal and Torres Strait Islander cultures,
histories, rights and achievements. We are committed to
increasing the cultural competency, capability, professional
and personal development of our leaders and First Nation
Relationship Managers, and to being an organisation that
demonstrates leadership, listens, and respects our
Indigenous communities.
Other activities include:
• Engaging First Nation partners, businesses, communities
and schools during Australia’s National Reconciliation
Week and NAIDOC Week, and Canada’s National
Indigenous Peoples Day and National Day for Truth and
Reconciliation.
• Hosting our inaugural First Nation Summit in September
and October 2023. Read more below.
• Conference support, including the 2024 Australian
Institute of Aboriginal and Torres Strait Islander Studies
(AIATSIS) Summit and Social Impact Summit, to build
skillsets, capability and networks advancing impact for
First Nation partners.
• 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, and
exploring other third-party providers for our operations
and partners.
• Ongoing development and strengthening of Indigenous
trainee, apprenticeship, and employment programs at
Ernest Henry and Red Lake. Read more about Red Lake’s
Mikinaak MineExcell Training Program here.
Trusted partner in our communities
86 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
We facilitated the inaugural First Nations Summit
in Queensland with around 30 attendees and
delegates. Our First Nations partners from across
Australia and Canada came together in the spirit of
connection, collaboration, knowledge sharing and
capacity building.
Participants were welcomed by the Gidarjil Development
Corporation and Elders in Burnett Heads, including a tour of
their Training Institute, Gidji Café and Murra Wolka Indigenous
Art business – projects we have been proud to partner with.
Summit delegates then participated in a yarning session
where they shared their unfortunately similar histories and
lifelong efforts of navigating an unjust and inequitable social,
political and legislative landscape to work towards
recognition of culture and rights for their families and
communities. Together, delegates celebrated achievements
despite these challenges and trauma, including the journey to
reconnecting with culture, successful partnerships, and
business development opportunities.
Dr Kerry Blackman, Gidarjil, emphasised the importance of
Reconciliation: “If you hold onto yesterday, you’ll be held
back from tomorrow.” The Summit was closed out with
our delegates attending the 1770 Cultural Connections
Immersions Festival, celebrating culture, connection,
and reconciliation, hosted by the Gidarjil Development
Corporation on Gooreng Gooreng Country.
Evolution team members in attendance were privileged to
hear about the resilience, determination, and leadership
these groups have shown. We committed to sharing
communication details, information and resources, and
to continue to facilitate these connections in the future.
Read other case studies about how we have partnered
to support our First Nation partners’ aspirations and
self-determination journeys: Success at 2024 Condo
SkyFest, and National Indigenous Peoples Day recognised by
Canada’s Discovery team and Red Lake Operations.
Following the launch of the Galari Agricultural
Company (GAC) in 2022, the impacts and
opportunities for our First Nation partners, the
Wiradjuri Condobolin Corporation (WCC), continue
to be realised. GAC won the Community Excellence
Award at the 2023 NSW Mining HSEC Awards.
Following this, industry peers such as Glencore
visited the Galari farm to share industry learnings.
In addition, the Galari Pathways Forum was created,
providing an opportunity to showcase to state government
agencies what the WCC has created with its partners. This
forum focused on the WCC’s key focus areas - education,
training, employment, and business development
opportunities.
Evolution’s Cowal Gold Operations General Manager, Joe
Mammen and Evolution’s Ancillary Operator, Wrench Larry
attended the Galari Pathways Forum to share their insights
and career pathway journey with attendees. It was a great
opportunity for Wrench to share his own success story after
joining the WCC in 2015, and through the forum has
provided inspiration and mentorship to other local
Indigenous employees and youth.
Read other case studies showcasing our efforts to increase
Indigenous participation within the business: Mikinaak
MineExcell Program delivers success and Northparkes
engages Peak Hill Local Aboriginal Land Council to
deliver local services.
Evolution holds inaugural First
Nations Summit and success of
the 1770 Cultural Connections
Immersion Festival
Galari Agricultural Company
receives more recognition
Case study
Case study
Evolution Mining Annual Report 2024 | 87
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Community and stakeholder engagement
Community engagement (including Local employment)
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 enhance living standards for
generations to come, and support economies broadly
through taxes, royalties, and other government payments.
We make it a priority to live among and employ our
workforce from our local communities to strengthen working
relationships with local communities, understand
expectations, share information, resolve issues as they arise,
and ensure economic benefits of employment remain in the
community. Several operations require Management to live
locally. Due to the Tier 1 developed regions where we
operate, we have been fortunate to have the ability to source
our workforce locally and to build local capability and skills
to ensure they are fit for work. However, it is occasionally
necessary to source specific skills, levels of experience, or
technical expertise from abroad.
To engage our community effectively, and continue to
encourage local employment, our operations are guided by
our Social Responsibility Performance Standards and 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 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
In FY24, we had 65% local employment across our
operations26 (FY23: 73%). This decrease has been seen
across all operations and is attributable to an enhanced
methodology narrowing the definition of ‘local’.
Trusted partner in our communities
4.19 ‘High
Approval’
out of 5 (up from
4.00 in FY22)
Social Licence to
Operate score of
26 Includes all operations at 30 June 2024, including Northparkes.
88 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Stakeholder Perception Survey
In FY24, we undertook our sixth biennial Stakeholder
Perception Survey to gauge stakeholder sentiment within
our local communities, focusing on reputation, quality of
relationship and communication. It enabled us to forecast
emerging community impacts and opportunities, identify
areas for improvement, and ensure that stakeholder
feedback informs our Social Responsibility strategies
and action plans.
Deloitte, as an independent external facilitator, was engaged
to undertake this survey, and leverage the findings to inform
our FY24 Materiality Assessment, following a market
accepted methodology. Our operations invited Core
stakeholders to undertake an online survey as well as an
in-depth interview. The online survey was also made
available to Anonymous stakeholders. 254 stakeholders
completed the online survey, and 56 stakeholders had
in-depth phone interviews.
The survey reached a broad stakeholder mix, including
community, education and government organisations,
landholders/local residents, local businesses and suppliers,
First Nation partner organisations, employees, and others.
The inclusion of employees and Anonymous responses in
the stakeholder mix was distinct from our previous
Stakeholder Perception Surveys.
The survey returned an enhanced acceptance of our
activities and overall Social Licence to Operate score of
4.19 out of 5 (up from 4.00 in FY22), retaining Evolution’s
‘High Approval’ scoring. This range is optimal as it reflects
that stakeholders support Evolution, however, will also
take opportunities to provide feedback and criticism
as considered healthy for building trusted partnerships.
The direction of Evolution’s ‘Relationship’ in 2024 was
predominantly positive, with 41% of Core stakeholders
interviewed saying our relationship is improving.
Our ‘Reputation’ score, however, saw a decrease to
3.80 in 2024 (4.04 in FY22).
Our improvement in Social Licence to Operate scores reflects
targeted work at each operation to enhance community
engagement and presence, communication channels, and
address concerns flagged in 2022. It is also an indication of
our improved engagement with Traditional Custodian, First
Nation, or Indigenous organisations and landholders/local
residents as these were underrepresented stakeholders
in 2022. However, there is more work to be done with
opportunity to further improve Evolution’s reputation,
aligning communication channels, supporting community
infrastructure, and managing risks of dependency at our
operations where they are on a roadmap to closure.
Community consultation
Consulting and engaging our communities as early as
possible is critical for safeguarding our social licence to
operate, and gaining the approvals and permits required
for operations.
Range
Category
Full trust
High approval
Low approval
High acceptance
Low acceptance
Withdrawn
5.00
4.30
3.93
3.56
3.08
2.40
1.00
Community engagement has been integral to the
progression of the Open Pit Continuation Project at our
Cowal Gold Operations. The Project plans to extend the
Life of Mine, enabling the ongoing employment of the
open pit mining workforce and continued contributions
to local and national economies. The learnings and
feedback from community engagement have directly
informed the development of the Environmental
Impact Statement and Development Approval.
These documents were submitted to the NSW
Government and publicly exhibited in June and July
2023. Significant engagement and communications
prior to the exhibition stage were conducted to ensure
that we listened to feedback and that our communities
were informed, well-equipped and capable of
engaging further.
As a result, 109 community and special interest group
submissions were received during the public exhibition
period, including 78 local community, eight special interest
groups, and 14 government agencies’ submissions. We
appreciated the submissions received and recognise the
time and effort involved in their development. While many
submissions were supportive, our teams also valued the
opportunity to discuss and listen to our stakeholders’
comments and address the feedback. Read more
about our response here.
Total submissions (109)
Key for submitters
Key themes
Community submissions
(excluding special
interest groups)
Of the 101 submissions,
78 were received from
the local area.
Support
Comment
Objection
Economic
benefits
Social
benefits
Jobs
Biodiversity
Water
Cowal Gold Operations
demonstrate the strength
of its community engagement
Case study
Evolution Mining Annual Report 2024 | 89
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Stakeholder engagement
Management approach
Through ongoing stakeholder engagement, we inform our
strategic objectives and deliver on our obligations. Our
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 as per our
Stakeholder Engagement Standard. 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:
• Active listening to understand the potential and/or actual
impact of activities on local communities and the rights of
Indigenous peoples;
• Disclosing and appropriately communicating transparent,
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; and
• Maintaining Evolution’s regulatory and social licence
to operate.
The following table summarises the stakeholder groups
engaged in FY24, key interests and concerns, and how we
generally respond. Key stakeholder engagement updates
are regularly provided to Management and the Board Risk
and Sustainability Committee.
Trusted partner in our communities
In May 2024, in partnership with ICA Partners,
we achieved a significant milestone in the MRPH
and submitted the MRPH Environmental Impact
Statement (EIS) to the Queensland Coordinator-
General’s office for assessment. Community,
First Nations, and broader stakeholder input was
invaluable in bringing together the Pre-Feasibility
Study, Feasibility Study, and the EIS.
The EIS was the culmination of more than four years
of planning, investigation and design with consideration
for scientific, geological, engineering, economic,
social, environmental and community factors, and
involved collaboration with countless internal and
external stakeholders.
It reaffirmed MRPH as critical to the provision of secure,
reliable and clean power to central and southeast
Queensland, contributing to our national and international
decarbonisation commitments. It also affirmed the
significant socioeconomic benefit of the project, with
impacts in the form of employment, training, and regional
development. The public will be afforded the opportunity to
review the Project’s potential impacts and submit their views
to state and federal regulators before the Project can
proceed and a final assessment report. Read more detail
about the project in our Annual Report.
Read more about our operations and communities
undergoing consultation in the ESG Performance Data.
Case
study
Mt Rawdon
Pumped Hydro
Project (MRPH)
submits
Environmental
Impact Statement
90 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Stakeholder
How we listen
What matters
How we respond
Frequency
More info
Employees and
Contractors
• Regular feedback sessions,
performance reviews and personal
development plans
• Engagement surveys, onboarding and
exit surveys, stay interviews
• Living our Values conversations
• Group and operation quarterly
townhalls, and meetings
• Communities of Practice
• Employee support networks including
Whistleblower Reporting, Workplace
Contact Officers, EAP
• Engaged people that feel like they
belong and are at their best
• Fostering a 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 and development opportunities
• Regular daily and weekly
communications
• Promoting Evolution’s values
• Ongoing safety, health and
wellbeing initiatives
• Regular all staff meetings
• Daily site prestart meetings/huddles
• Quarterly site townhalls and updates
• General Manager email updates
• Fortnightly business updates
from Chief Executive Officer
• Formal and informal Management
and Board review
Daily, weekly,
monthly,
quarterly,
half-yearly
and annually
Sustainability
Report: Making
Evolution a
career highlight
Investors and
Analysts
• Regular meetings with investor
representatives and financiers
• Management of financial and
non-financial risks
• High-quality corporate governance
• Consistent financial returns
• Sustainability and climate-related
risk management
• Health and safety performance
• Cultural heritage management
• Investor briefings
• 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
corporate
schedule and
teleconferences
Investor visits
As and when
required
Annual Report
Corporate
Governance
Statement
First Nation
partners and
Indigenous
peoples
• Regular community and cultural
heritage meetings
• Stakeholder Perception Surveys
• Community grievance mechanisms
• Community events and information
sessions
• Local social and other media channels
• Set Agreement reviews
• FPIC and meaningful, early engagement
• Local employment, training and
leadership and development
opportunities
• Indigenous procurement and economic
benefits
• Cultural heritage management and
protection
• Cost of living and impacts on local
services
• Cultural safety
• Capacity building and recognition
• Policy advocacy and legislative changes
• Regular community consultations and
communication
• Targeted community investment
programs, SVPs etc.
• Deliver on cultural heritage and Native
Title agreements
• Regular participation at cultural events
• Survey and cultural assessment
activity
Regular schedule
of meetings and
site visits
As and when
required
Sustainability
Report: Trusted
partner in our
communities
Evolution Mining Annual Report 2024 | 91
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Stakeholder
How we listen
What matters
How we respond
Frequency
More info
Government and
Regulators
• Ongoing dialogue with regulators,
government agencies and broad range
of political stakeholders
• Environmental, cultural heritage,
social, human rights, and health and
safety compliance and performance
• Climate change and GHG emissions
• Regulatory compliance
and transparency
• Economic benefit
• Regular engagement with all levels of
government
• Direct submissions to state and federal
governments’ consultation processes
• Contribute to industry and business
associations
Regular schedule
of meetings
As and when
required
Sustainability
Report:
Governance and
Assurance,
Responsible
environmental
stewardship,
Trusted partner in
our communities
Non-Government
Organisations
• Input into social and environmental
impact assessments
• Regular participation in industry
forums and associations
• Policy advocacy
• Climate change and GHG emissions
• Cultural heritage and human rights
• Environmental management
• Transparency and reporting
• Governance
• Engagement on SVPs
• Commitment to international human
rights and climate initiatives and
reporting frameworks
• Partnerships for environmental
research and Industry activity
• Engaged in the UNGC
As and when
required
Sustainability
Report: Trusted
partner in our
communities
Suppliers and
Contractors
• Supplier networking events
• Workshops with local business
networks
• Regular reciprocal supplier
performance reviews
• Embedded supplier relationship
management with Tier 1 suppliers
• Supplier feedback survey
• Supply opportunities for projects
• Health, safety and environment
advancement
• Emissions partnerships
• Supporting Indigenous and local
contractors
• Technology and innovation
• Capable and effective employees
• Emerging sustainability expectations
• Collaborate to 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
As and when
required
Sustainability
Report:
Sustainable
procurement
Modern Slavery
Statement;
Report to the
Fighting Against
Forced Labour
and Child Labour
in Supply Chains
Act
92 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Mt Rawdon team celebrates the role they played in producing the gold used to craft the 2024 Melbourne Cup
Around 50 kilograms of pure gold from our Mt
Rawdon Operations was exclusively provided for
Australian contemporary artist Lindy Lee’s unique art
sculpture, Abundance, signifying birth, death,
regeneration and transcendence. Commissioned as
part of the Pallion Arts Program, Abundance is a pure
gold companion to Lindy Lee’s most significant
public art project to date - Ouroboros. This sculpture,
which resides in the National Gallery of Australia’s
sculpture garden, is made from 13 tonnes of mirrored
stainless steel and represents the traditional and
eternal image of a snake eating its own tail.
The Mt Rawdon Operation is close to Lindy Lee’s birthplace
in Queensland and on the traditional lands of the Bailai,
Gurang, Gooreng Gooreng and Taribelang Bunda peoples.
This sculpture provides a perfect vehicle for storytelling for
Lindy Lee and the National Gallery of Australia, reflects her
sustainable design ethos by using ethical pure Australian
gold, and brings visibility to one of Australia’s most
important industries.
Case
study
Mt Rawdon gold
has been used
to create Lindy
Lee’s ‘Abundance’
artwork as part
of Pallion’s Art
Program
Evolution Mining Annual Report 2024 | 93
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Community investment
Management approach
We have an established tradition of supporting innovative,
targeted local initiatives in our neighbouring communities,
and supporting nationally and globally relevant programs.
Our community investment framework, comprising SVPs
and sponsorships and donations, aims to address specific
challenges faced by our local stakeholders and catalyse
long-term socioeconomic development and prosperity in
local communities.
We actively engage our local stakeholders to understand
local sentiments, needs, and aspirations for sustainable
development, aim to strengthen local social and economic
institutions, infrastructure, and build the skills, capacities
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.
The approach to community investment remains contextual
and targeted for each operation, while upholding our values,
Sustainability Principles, and those presented below. We
recognise areas of growth in impact measurement and
addressing emerging best practice and mandatory
disclosures, and are focusing on implementing lessons
from these projects throughout the business and beyond.
Our Community Investment program is underpinned
by four guiding principles:
Our community investment
framework, comprising SVPs
and sponsorships and donations,
aims to address specific
challenges faced by our local
stakeholders and catalyse
long-term socioeconomic
development and prosperity
in local communities.
Attraction and retention
• Raise awareness and strengthen reputation of
Evolution and the mining sector in broader
community.
• Attract younger generation to careers with
Evolution and the mining sector.
• Grow Evolution’s brand as an employer of choice.
Build community advocacy
• Demonstrate industry relevance (now and future).
• Foster trust in mining and the gold sector.
• Touch the hearts of our local, regional and national
communities.
• Grow understanding of modern mining practices.
Enhance outcomes for First Nation groups
and ATSI27 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; and
• employment.
Innovation and industry relevance
• Unlock value for Evolution and the mining sector.
• Support leading practice and new approaches in:
• environment;
• safety;
• discovery;
• operations;
• technology; and
• community outcomes.
Trusted partner in our communities
27 Aboriginal and Torres Strait Islander
Our Discovery team in the Vancouver Hub sponsored the Crolancia Secondary School in Pickle Lake to partner with the
Mishkeegogamang First Nations in hosting Crolancia’s Inaugural Powwow
94 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Performance
Direct community investment
Total direct community investment expenditures across our operations and Group office in FY24 were approximately
$4.4 million, and supported the following impact areas:
We have continued to develop new, and mature existing SVPs, with FY24 highlights below. Note, in FY23 we reported
expected outcomes associated with the Kalarchibold SVP, however this project was aborted in early FY24 due to project
management issues.
1.
First Nations Summit
2. Galari Agricultural Company – additional
training support
3. The Hope Project – additional support
4. Project Sprouts - early intervention strategies for
developmental delays in children28
1.
University of Queensland’s Research for COVID-19
Immune Response Using Gold
2. Galari Agricultural Company (Cowal)
3. Ernest Henry Critical Minerals Industrial Transformation
Training Centre (ITTC) (reformed from University of
Queensland Sustainable Transformational Reuse and
Economic Alternatives for Mine Waste Study)
4. Mt Rawdon Pumped Hydro Project
5. The Hope Project (Mungari)
New
Ongoing
Infrastructure Capability
11%
Local Economic Development
20%
Community Resilience
5%
Health and Wellbeing
20%
Skills, Education and Training
16%
Arts, Culture and Sport
14%
Environmental Stewardship
14%
Cowal’s Town office and community presence on Main Street, West Wyalong
28 Due to the ongoing integration at Northparkes, the initiative was not implemented directly under the SVP program, however the partnership arrangement is similar.
Evolution Mining Annual Report 2024 | 95
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
SVP
Operation
Purpose
Impact area
FY24 outcomes
Galari Agricultural
Company
Cowal
Strengthening a
partnership with
the WCC to
address
significant youth
unemployment
within the
Lachlan Region,
including young
Indigenous men
and women.
Arts, Culture
and Sport;
Skills, Education
and Training
• Revitalisation of the Galari Farm,
1,600 hectares.
• Support for Indigenous trainees to
undertake two-year Certificate of
Agriculture course.
• Enhanced capability of First Nation
partners and Indigenous peoples in
the region.
• Additional investment provided for
training resources.
• Visits from industry peers, such
as Glencore.
• Formation of the Galari Pathways Forum
to showcase outcomes to date.
The Hope Project
Mungari
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.
Health and
Wellbeing;
Infrastructure
Capability;
Community
Resilience
• Addresses high domestic violence
mortality rates in Western Australian
Goldfields, and provides safety for women,
children and transgender persons.
• Establishment of transitional and
emergency accommodation, involving six
short-stay, trauma-informed units, nearly
doubling the facility’s capacity.
• Earthworks have been completed, modular
buildings have been installed on site, and
ongoing work to furnish the facilities,
construct the staircase and landscaping.
First Nations Summit
and 1770 Cultural
Connections
Immersion Festival
Group and
Mt Rawdon
Bringing our First
Nation partners
together in the
spirit of
collaboration,
connection and
knowledge
sharing, including
attending the
1770 Cultural
Connections
Immersion
Festival.
Arts, Culture
and Sport
• First-of-its-kind First Nations Summit.
• Around 30 attendees and delegates across
Australia and Canada took a tour of the
Gidarjil Development Corporation and sat
with Elders in Burnett Heads, participated
in a yarning session and shared their
reconciliation journey, and attended the
1770 Cultural Connections Immersion
Festival.
• Cultural education, immersion, dancing,
and engagement activities to support
reconciliation at the 1770 Cultural
Connections Immersions Festival.
• Demonstrated commitments
to listening to our First Nation
Partners, and identifying opportunities
to support their aspirations towards
self-determination.
Project Sprouts28
Northparkes
Provide early
intervention
strategies for
developmental
delays in children
to ensure
appropriate
support prior to
kindergarten.
Health and
Wellbeing
• Supports a Coordinator role over
three years.
• Screenings to identify mild or moderate
developmental delays in children and
assist families who require access to
Allied Health therapy to get support
before kindergarten.
• Early intervention strategies enable the
skill development children require to be
ready and capable of learning when they
start school.
Trusted partner in our communities
SVPs are implemented with specific criteria to ensure sustainable impacts for our communities.
96 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
Grievances
Management approach
We have established grievance mechanisms and direct
community communication lines at each project, operation
and at Group through which the community, First Nation
partners, and local or other stakeholders can express any
concerns, issues or grievances about real or perceived
actions by a project or activity. 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.
• Integrate feedback and areas of improvement into
our operations.
Performance
All concerns were documented in a transparent and
accountable manner in our internal Stakeholder Management
System 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 FY24,
all responses were closed within the required timeframe.
Northparkes and a working party of local stakeholders
established the Frontline Services Ball in 2022.
The intent was to express gratitude to those in the
frontline services who supported the community
during COVID-19, floods and emergencies and to
raise necessary funds for those services.
As of FY24, two balls have been held raising a total of more
than $170,000 for local charities in the Central West, and
contributing to the funding of mental health programs,
much-needed emergency equipment like defibrillators,
an upgrade to local PCYC facilities and more than 571 nights’
accommodation at the Ronald McDonald House in Orange.
For their efforts, our Northparkes team was recognised as
finalist in the local Parkes Shire Australia Day Awards for
the Community Event of Year, and also as a finalist in the
Community Excellence category in the 2024 NSW Mining
HSEC Awards.
We congratulate Northparkes and the committee for their
dedication and hard work to date. Read more case studies
about how our community investment has had impacts in
attraction and retention, tourism, and youth support:
Guinness World Record set for gold panning at West
Wyalong and Local young people participate in Youth Week
in Cloncurry.
Case
study
The Parkes Frontline
Services Ball, the brainchild
of the Northparkes team,
was recognised as a finalist
in both the Australia Day
awards and at the NSW
Mining HSEC annual awards
Evolution Mining Annual Report 2024 | 97
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Responsible
environmental
stewardship
We understand the critical importance of
environmental stewardship and the effective
mitigation of risks to manage biodiversity,
cultural heritage and other environmental
impacts across our footprint.
Matt O’Neill, Chief Operating Officer
Albino joey and her mother at our Mt Rawdon Operations
Due diligence,
acquisitions and
exploration
• Due diligence
and acquisitions
- Northparkes
• Exploration
(including
brownfields
and greenfields)
in Tier 1
jurisdictions,
including
Canada and
Australia
• Joint ventures
Development
• Cowal Open Pit
Continuation
Project
permitting
• Mungari 4.2
Project
• Ernest Henry
Mine Extension
Feasibility Study
• Increasing
resources and
reserves
Production
• Cowal
• Ernest Henry
• Mungari
• Mt Rawdon
• Northparkes
• Red Lake
Progressive
rehabilitation
• Historic and
ongoing
progressive
rehabilitation
and biodiversity
management
across all
operations
• Rehabilitation
of exploration
activities
Economic/
environmental
transformation
(post-closure and
divestment)
• Mt Rawdon
detailed closure
and transition
planning
including
MRPH with
energy storage
(registered as
a coordinated
project)
Mining life cycle
Management approach
Environmental stewardship is a foundational element of Evolution’s Sustainability Strategy and essential to maintaining our
regulatory and social licence to operate. We operate beyond legal compliance in line with the precautionary principle and
Evolution’s Integrated Risk Management Framework. In accordance with the Sustainability and Strategic Planning Policy
and associated Standards, we incorporate environmental management, including climate change, into all areas of the
business to manage risks, impacts and opportunities throughout the mine life cycle, from due diligence through to closure
and economic/environmental transformation.
98 | Evolution Mining Annual Report 2024
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Continuous feedback and improvement
Continuous feedback and improvement
Environmental stewardship pillars
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
Proactive environmental
management
Evolution governance
framework
Stakeholder environmental
capacity building
Environmental performance
transparency/reporting
Timely and effective
responses to events/
mitigation of
environmental harm
Assurance: Material risk
program
Climate change adaptation
and mitigation plans
Risk-based approach
to planning (includes
climate-related risk)
Embedded environmental
stewardship
Environmental
management system
Application of technology
and innovation
Circular economy
evaluations
Response-driven
environmental management
Environmental stewardship strategic approach
During FY24, we continued to:
• Assure our environmental stewardship, with audits
against our Standards and reviews against legislative
obligations.
• Build internal capability and competence, in alignment
with global standards and frameworks, including planning
for closure at Mt Rawdon, ISO 14001 at Cowal and
Northparkes and the ICMC at Cowal and Red Lake.
• Enhance planning, resilience, and mitigation against
climate-related risks of extreme weather events, and water
security by minimising raw water demand in processes
and maximising reuse or recycling.
• Monitor surface water, groundwater, land and nature,
noise, vibration and air emissions to assess effectiveness
of mitigants and protect and enhance the wellbeing of
the environment and community.
• Assess and implement energy efficiency and GHG
emissions monitoring, forecasting and reduction
initiatives, partnerships and projects.
• Progress nature-based opportunities in biodiversity
stewardship and passive water treatment.
• Follow strict protocols for storage, handling, labelling
and disposal of hazardous materials, including wastes
to protect the workforce, communities and environment.
• Consult with stakeholders, local communities, First
Nations partners and regulatory authorities on mine
planning, operations and post-mine land use.
We strive for safe and sustainable consumption and production to support long-term
environmental outcomes.
Our strategic approach comprises proactive and consistent risk-based environmental and climate risk management,
underpinned by continuous feedback and improvement.
Evolution Mining Annual Report 2024 | 99
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Governance and Assurance
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Safe and engaged workforce
Responsible environmental stewardship
Climate Risk and Resilience
“We continue to make progress against our Net Zero commitment, working with government and supply
chain partners to mature our approach and ensure our relevance and reputation as a responsible and
climate-conscious business for the years to come.”
Fiona Murfitt, Vice President Sustainability
Management approach
In line with the Paris Agreement, and the inherent 1.5°C and
2°C scenarios, we recognise climate change is a pressing
global issue requiring serious action to ensure a clean and
productive environment, a healthy and just society and
positive future for our business. This risk is a material issue
for our operations, supply chains, communities and
stakeholders, as well as investors seeking to manage the
impact to their portfolios.
Our commitment and strategic objective to manage
climate-related risk was formalised prior to FY19, with the
development of a Resource Efficiency and Emissions
Reduction Sustainability Performance Standard. We have
since released our Climate Risk Position Statement,
identified and managed climate-related risks with material
business impacts (as per the recommendations of TCFD and
TNFD), released our Net Zero commitment, embedded our
planning and strategy for emissions reduction, together with
a Renewable Sourcing Strategy. In FY24, we continued to
mature our understanding and management of physical
and transition climate-related risks, including preparing
for increased stakeholder and regulatory focus on
financial disclosures.
Governance
The management of climate change is integrated into our
business strategy through strong governance and risk
management, throughout the mine life cycle, for ongoing
opportunity identification and improvement in support of
the Paris Agreement and GHG Protocols. Responding to
climate change is governed at the Board level through the
Risk and Sustainability Committee and the Vice President
Sustainability has primary responsibility for this portfolio.
In FY24, we also appointed a Chief Technical Officer and
established a dedicated Long-Term Planning function. These
resource decisions have provided increased capacity to
support and deliver our Net Zero commitment as it matures
and is integrated into our business. Robust engagement with
stakeholders, including investors, policymakers, industry
associations, professional experts, peers, non-government
organisations and communities, also continues to shape our
climate risk strategy and operational objectives.
Our Climate risk governance structure is informed by our
Governance Framework and Integrated Risk Management
Framework that reflects the prioritisation and integration
of this risk across the business.
Responsible environmental stewardship
Robust engagement
with stakeholders,
including investors,
policymakers, industry
associations,
professional experts,
peers, non-government
organisations and
communities, also
continues to shape our
climate risk strategy and
operational objectives.
Aerial view of the environment nearby our Red Lake Operations
100 | Evolution Mining Annual Report 2024
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• Strategy and climate
risk position
• Risk appetites
• Risk governance
Board of Directors
Oversight of Evolution’s
Sustainability Strategy,
assurance, resourcing,
and performance
Risk and
Sustainability
Committee
Oversight of
Evolution’s
Sustainability Strategy,
assurance, resourcing,
and performance,
including climate risk
Board of Directors
Climate risk governance structure
Systems
People
Process and accountabilities
Remuneration
Committee
Audit
Committee
• Sustainability and
Strategic Planning
Policy and
Standards
• Climate Risk
Position Statement
• Group Risk Register
• Risk analysis and
reporting
• Operational Risk
Register
• Management,
assurance and
verification
• Project assessments
Leadership Team
and Management
The Sustainability
Strategy is developed
and approved by the
Leadership Team and
endorsed by the Board
Group and Operations
Support the
embedment of climate
risk management at all
levels of the business
Managing Director and Chief Executive Officer
Community Of Practice (CoP)
The CoP is sponsored by the Leadership Team.
It provides subject matter expertise, leadership
and input into climate risk management,
strategies and activities
Responsible Leadership
Team Member – Vice
President Sustainability
Responsible for the
Sustainability portfolio,
including governance,
reporting, and performance.
Risk Owner for HSEC, First
Nations, climate change,
and water management
Chief Technical
Officer
Supporting
technical
aspects of
decarbonisation,
including
long-term fleet
management
strategy and
major project
opportunities
Climate-related risks are regularly reported against targets, including Net Zero, that are established to reduce emissions,
improve water security via responsible water management practices, and prepare for extreme weather and health
events. Progress is reported monthly to Management and is tabled at least three times a year with the Board of Directors,
in line with our Risk and Sustainability Committee reporting process. In FY24, the Board reaffirmed Climate Change as
a Material business risk, and the risk treatment plan to implement and operationalise next steps for Net Zero is tracking
to plan, resulting in a risk evaluation of “Well Controlled”. It was also retained as a KPI in the FY24 and FY25 STIP
performance measures.
Evolution Mining Annual Report 2024 | 101
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Responsible environmental stewardship
Strategy
The resources sector (particularly metalliferous and critical
minerals) plays a crucial role in enabling the transition towards
a low-carbon economy. Guided by our Sustainability
Principles and Climate Risk Position Statement, we have
developed a strategy to actively manage environmental and
social impacts, and conserve natural resources and
socioeconomic systems, for climate-related risk management.
Our strategy acknowledges climate change poses social,
environmental, asset, technology, infrastructure, financial,
legal and reputational risks, and has potential impacts on our
business, operations, and communities through:
• Physical risks, including extreme weather, water security
and supply chain impacts;
• Transitional risk with changing legislation, regulatory and
societal expectations;
• The Paris Agreement and alignment to science-based
climate targets and assessments;
• Community vulnerability in countries of operation and the
supply chain; and
• Internal technical capability and skillsets and changing
external infrastructure investment.
Our short to medium-term decarbonisation roadmap
is focused on evaluating each of our operations and
consolidating this information to enable strategic
decarbonisation decisions from an integrated
enterprise position. This ensures we have incorporated
the financial and scenario-based risk implications into
our decision-making.
We are optimising the energy value chain, investing in grid
connected renewable energy (where possible and
advantageous in our geographical locations) through
partnerships, delivering operational efficiencies and
planning for a transition to a low emissions fleet alternative.
This is supported by a shift to low emissions fuels and
fleet electrification. The transition to these sources is likely
to accelerate post-2030. The opportunity to reduce
emissions via our fleet will be integrated into emissions
management, planning and assessment.
Our strategic value chain partnerships are key to identifying
and implementing emissions reduction opportunities
that are managed business-wide. Our FY24 performance
outlined in this Report demonstrates this approach to
decarbonisation and highlights that the intended outcomes
are being realised. Assumptions connected to this strategy
are detailed in the site-specific decarbonisation plans,
including remaining grid connected to support the broader
greening of the grid, where practicable.
Following the success of our partnerships with Sustainability
Advantage and the Electric Mine Consortium, we developed
a new partnership in FY24 with Caterpillar’s Pathway to
Sustainability program. We also identified opportunities to
improve our understanding of, and partnerships with, low
emissions fuel manufacturers and suppliers to assist with
planning and assessing future fleet transition needs. We have
also worked with partners and investors to evaluate end of
mine life differently, including developing deep storage
power opportunities (MRPH). Read the related case study
here.
Our long-term strategy is detailed in our Net Zero
commitment. It includes the investigation, trial and shift to
renewables, as well as energy storage, low emissions and
diesel replacement, hybrid and battery electric fleet, and
nature-based solutions. Four major sources of emissions
present opportunities for decarbonisation: power supply,
mobile equipment, stationary combustion and process
emissions. Activities that deliver cost-competitive
decarbonisation reductions continue to be integrated
into our business cycle.
We ensure the adaptability of our business through ongoing
actions, such as including Net Zero considerations in any
due diligence activity and project work, the development,
execution and validation of operational decarbonisation
roadmaps, operational efficiencies, knowledge sharing, and
the assessment of current and future emerging technologies
and consideration of commercial arrangements.
Our short to medium-term decarbonisation
roadmap is focused on evaluating each of
our operations and consolidating this
information to enable strategic
decarbonisation decisions from an
integrated enterprise position. This
ensures we have incorporated the
financial and scenario-based risk
implications into our decision-making.
Responsible environmental stewardship
Echidna enjoying the sunshine at our Cowal Gold Operations
102 | Evolution Mining Annual Report 2024
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Risk management: Risks and opportunities
Physical and transition climate risk management is
embedded by Management into our day-to-day operational
business processes. We also seek to enhance our
understanding of our upstream and downstream impacts
and stakeholders.
Risk workshops and stakeholder engagement at the Board,
Management and operational levels have identified Climate
Change as a Material risk to the business. This was validated
in the FY24 Materiality Assessment, underpinned by a
double materiality approach. All Material risks and actions to
address climate change impacts across the business and
value chain are documented, assessed, controlled and
reported. The potential likelihood, severity and materiality of
the risks and opportunities to operations and communities
are proactively assessed at least annually, including
forecasting. Our Climate risk management process is
outlined in the accompanying diagram.
We actively manage and integrate risks and opportunities to
improve efficiencies and mitigate impacts and risks. Our risk
management processes assess and address site-specific
exposures across the regional climatic zones, with varying
vulnerabilities to both acute and chronic physical risks,
extreme weather events, disasters, water and resource
shortages, changes in the patterns and intensity of rainfall
and storms, and changing temperatures.
This is compounded by transitional risk drivers, such as
uncertain or overlapping policy, economic and market
conditions, which are considered at site-specific, regional and
national levels. Mitigating the dynamic nature of these risks is
achieved through regularly reviewed climate risk and
vulnerability assessments, the integration of climate-related
risks into our strategic risk management plans and processes,
and supported by active participation and engagement with
industry groups, government and stakeholders.
Our climate-related risks are managed in alignment with our
Sustainability and Strategic Planning Policy, Integrated Risk
Management Framework and TCFD. In alignment with the
TCFD Framework’s Strategy and Risk Management pillars,
we consider short, medium, and long-term risks29:
• Short-term: risks which may materialise in the current
annual reporting period;
• Medium-term: risks that may materialise over a 2 to 5-year
timeframe; and
• Long-term: risks which may fundamentally impact the
viability of our long-term business strategy and legacy
extending from 5 to 20+ years.
In FY20, following the establishment of the TCFD-aligned Climate Risk Position Statement, we identified and assessed four
Material physical climate-related risks considered most likely to impact the business over the short, medium and long-term.
The risks, likelihood, magnitude and time horizons are regularly reviewed. In FY21 and FY22, extreme health impacts
associated with pandemic illnesses, such as COVID-19, had short-term impacts.
Our FY24 review reaffirmed these risks are reasonably expected to impact the business over the medium to long-term, and
we will continue to review upon transition to ASRS. We actively manage and mitigate the impact of these risks on our value
chain segments, including management, community, inbound supply, operations, distribution, marketing and sales.
Risk management
framework
Risk analysis and
management
Reporting oversight
Risk audit
Clear roles,
responsibilities and
accountabilities
Climate-related risks
are assessed using the
same approach
applied to all risks
assessed by the
business
Management’s
oversight of climate-
related risks is
supported by
proactive reporting
and effective
escalation
Audit (internal and
third-party) for the
Board to provide
confidence around
management of
climate-related
(physical and
transitional) risks
Decision-making
is supported by
connected and
insightful climate
risk analysis
Critical controls for
climate-related risks
are being managed
effectively
Learning and
continual
improvement
Sustainability and
Strategic Planning
Policy
Sustainability and
Strategic Planning
Standards
Climate Risk Position
Statement
Risk Management
Guidelines (ISO
31000) for effective
and integrated risk
management
Climate risk management process
29 All time horizons (i.e., short, medium and long-term) were considered for each risk, e.g., for extreme weather events, we looked at cyclones (short-term), droughts
(medium-term) and climate change (long-term). These horizons are applicable to climate-related and sustainability-related risks and opportunities.
Evolution Mining Annual Report 2024 | 103
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Making Evolution a career highlight
Governance and Assurance
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Safe and engaged workforce
Responsible environmental stewardship
Climate-related risk
Risk and impact
Mitigation
Water security
• Reduced water
availability, the
potential for
water security
implications to
the business plan.
• Weather pattern monitoring and planning.
• Reduce total water demand through mine design and process
improvements.
• Reduce raw water demand to reduce reliance on external water
sources and pressure on sources that support communities and
agriculture, through preferencing reuse of mine affected, hypersaline
and low-quality water.
• Investigate water saving and recycling technologies such as optimised
processing.
Extreme weather
events
• Material damage to
the receiving
environment, assets
and infrastructure;
disruptions to
operations and
supply chains.
• Weather pattern monitoring and planning.
• Real-time stability monitoring including open cut and underground
mine and tailings.
• Mitigation barriers to protect sensitive receptors.
• Engineered design, construction and operation of all significant
infrastructure including buildings and plant.
• TARPs for incoming threat of severe weather.
• Critical spares management.
Energy and emissions
• Footprint/demand
creep.
• Developing energy
regulation, market
demand for
sustainably
produced
commodities and
supplier surety.
• Setting measures and targets, e.g., Net Zero, quantifying Scope 1 and
2, improving data collation for Scope 3 emissions.
• Energy audits.
• Emissions reduction planning, including transition to renewables.
• Partnering with industry for accelerated energy efficiency and
emissions evaluation.
• Modelling, assessment and evaluation of emissions and carbon pricing
implications across Projects, Finance, Business Development and
Commercial departments.
• Technology and innovation pathways.
• Renewable Sourcing Strategy and supply chain partnerships, including
electric drills.
Extreme health events
• Food, water and
viral borne illness
which could be
confined to site,
the community
or global.
• Health and wellbeing programs and practices.
• 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.
Climate-related risks identified as Material to Evolution
Responsible environmental stewardship
104 | Evolution Mining Annual Report 2024
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Risk and Opportunity
Description
Downside risks
Physical – Chronic
Water security:
• 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 operations do not
experience business interruption and loss of production.
• Water-related infrastructure designed for historic rainfall patterns with designs not
accounting for climate scenario predictions.
• Community-related infrastructure and social demands may increase as a result of
increased climatic stress events. Measures will be required to provide increasing
support to communities where we operate.
Renewables infrastructure and equipment such as fleet:
• Grid connected renewable energy infrastructure and low emissions fleet options may
be slower to transition than planned, resulting in demand outstripping supply needs.
Transition – Policy
Climate change legislation, including carbon pricing:
• In response to climate change, governments are seeking to reduce emissions from
industry through the implementation of existing and emerging legislation, for example
the Safeguard Mechanism.
• There may be a period when increased carbon costs cannot be passed through
to customers.
• Uncertain and overlapping policy is adding complexity to management and costs
to monitor and manage compliance and reporting. This includes mandatory
disclosure obligations.
• Governments may lag in the transition to renewable energy infrastructure investment,
resulting in the reduction in the speed at which grid transition and security of
renewable energy supply is available.
They present both risks and opportunities to our business:
Climate-related risks and opportunities
Mungari Environment team member conducting soil monitoring
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Responsible environmental stewardship
Risk and Opportunity
Description
Upside risks / Opportunities
Resource efficiency
Operational efficiency - driving decarbonisation through operational efficiency will play
a key role in mitigating climate change:
• Energy savings in diesel consumption can be gained through activities, such as
improved payload management, idle time management and logistics and haulage
optimisation.
• 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, 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.
• System, process and design improvements including redesign of TSFs,
and waste landforms to enable waste and water reuse.
• Potential to deepen community partnerships to support responsible and equitable
water management.
Innovation - potential to promote faster transition to low emissions solutions through
early adoption of technology, change of traditional mining methods and having a skilled
and capable workforce that can adapt to changing needs:
• Design, construction and investment in deep storage and alternate renewable
resources adapted from existing pits and other landform infrastructure could bring
alternatives to land use.
• Opportunities to invest and build renewable electricity supply for our own use and
connection to the grid.
• Capable and skilled workforce could help the skills transition to a broader
decarbonised environment.
• Partnerships with energy and low emissions fuel suppliers could support with early
adoption, particularly where we are grid connected.
Markets
Climate change legislation - acknowledged global and national carbon scheme trends
(operations are subject to levies linked to emissions):
• Further detail on short and long-term plans to decarbonise the operations by 2050,
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.
• Embedding emissions forecasting that integrates potential emissions costs into
Integrated Planning, Financial, pre-feasibility and feasibility projects, and Commercial
processes.
• Regularly remodel proposed changes to emissions costs (or carbon pricing), including
Australian Carbon Credit Units (ACCUs), in forecasting and climate scenarios.
Climate-related risks and opportunities
Responsible environmental stewardship
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Such risks and opportunities are regularly assessed,
managed and integrated across the business to inform
the monitoring, reporting and targets included in:
• Site Emergency Response Plans, including TARPs at
all operations;
• Weather modelling, contingency planning, and pre-wet
season planning;
• Project stakeholder engagement, plans addressing
community concerns;
• Regulatory engagement, including to regional power
supply planning; and
• Mine and infrastructure design, with consideration of
changes over the life of mine.
Regular water level monitoring and extreme weather
preparation training at Mt Rawdon and Ernest Henry
exemplify our resilience to managing extreme climate-
related weather events. Each operation coordinates regular
emergency scenario drills in preparation for extreme weather
events including inrush, fire, flood, cyclone and significant
hazardous spill response.
Opportunities found in contract negotiations and emerging
low-carbon and energy and fuel-efficient technologies are
regularly tracked and assessed by operations and integrated
into the business strategies, where appropriate. We also take
opportunities to build capability and support communities,
neighbours, local government and emergency services,
during extreme weather events. In FY24, Ernest Henry
mobilised operators and graders to install extra fire breaks
to manage fast-moving grass fires, Cowal and Northparkes
provided flood assistance to local communities, and Mt
Rawdon donated IT equipment and provided support to the
Mount Perry Rural Fire Brigade to improve virtual access to
meetings and resources.
Sunrise at Cloncurry, near our Ernest Henry Operations
Evolution Mining Annual Report 2024 | 107
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Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
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Safe and engaged workforce
Responsible environmental stewardship
Metrics and targets
Energy and Emissions
and our Net Zero commitment
Our energy and emissions management is focused on
reducing our climate change impacts to meet our Net Zero
commitment. In FY21, we committed to reducing our Scope 1
and 2 emissions by 30% by 2030 and to be Net Zero by
2050, in line with the Paris Agreement and scenarios therein
against an FY20 baseline. The baseline data is derived from
an aggregate of our operations’ emissions in FY20
(adjusted). Based on guidance from the GHG Protocol, we
adjust the baseline if there is a significant structural change
in the business or methodology change. This threshold is set
at a +/- 10% change to our baseline emissions. Consistent
with this approach, our baseline has been adjusted to reflect
our current portfolio of assets, which now includes
Northparkes for FY24.
Our Net Zero approach considers our emissions profile
and requires a practical approach to technology. Scope 2
emissions constitute around three quarters of our emissions
profile, which underpins our initial strategic focus on
securing renewable energy, with a preference for developing
partnerships where we are grid connected. This also
supports broader investment in renewable infrastructure
to facilitate a sustainable Net Zero pathway. Beyond
renewables, we are reviewing operational efficiencies and
technology development to support our fleet transition.
Emissions management and reduction strategies are
integrated into every stage of the mine life cycle as we take
an agile approach to leveraging partnerships and identifying
opportunities aligned with our vision and purpose.
Our Net Zero approach is supported by the following pillars:
• Emissions and data forecasting with a split by value
chain emissions.
• Climate scenario analysis, and management of emerging
and mandatory disclosures and frameworks such as IFRS,
ASRS and TNFD.
• Emissions reduction pathways, aligned with
science-based strategies.
• Operational emissions optimisation through portfolio
optimisation, decarbonisation projects and business
case assessments.
• Value chain partnerships, enhancing understanding of
current and future value chain emissions, developing
industry partnerships and relationships accordingly.
• Life of mine and procurement integration, to ensure
that strategies are embedded within each stage of the
business cycle.
• 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, advice and review of disclosures
and management to deliver regulatory compliance and
best practice.
Our decarbonisation timeline has been prepared to align our
Net Zero approach with our emissions profile, life of mine
schedules and the practical availability of opportunities.
Decarbonisation timeline to Net Zero30
2024
2030
2040
2050
Ongoing operational efficiencies
and electrification
As we explore and strengthen partnerships to
maximise renewable and low emissions energy use
at our operations, we are simultaneously
optimising operational efficiency, including by
setting in place trials for alternative fuels and the
electrification of fleet and mining technologies.
Strategic partnerships
The Cowal PPA secured with AGL saw the surrender
of the first LGCs in FY24 and will provide the
operation with 70% renewable energy by 2030.
Mungari, Ernest Henry and Northparkes are working
with energy infrastructure providers to maximise
renewable and low emissions energy supply through
strategic partnerships with local energy networks.
Technology roll out
Leverage and roll out strategic partnerships, fuel
alternatives, electrification and hybrid-electric
technologies to displace diesel at our operations
following robust assessment and trials.
Nature-based solutions
Hard to abate residual emissions unable
to be reduced through alternative controls
will be offset with assured, high-integrity
nature-based solutions focused on biodiversity.
30 Builds on the conceptual pathway originally detailed in our Net Zero commitment. Application of technologies to reduce Scope 1 emissions from mine fleet is a
complex decarbonisation challenge for the industry. A number of short, medium, long-term solutions are currently being assessed, trialled and considered across our
operations. These include solutions that are technologically mature, such as 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).
Stage 1: 100% renewables and low emission sources through energy efficiency and management, strategic energy partnerships, and grid decarbonisation
Stage 2: Electrification of fleet and equipment
Stage 3: Biodiversity and nature-based solutions
NOW
2030
2050
2040
Responsible environmental stewardship
Net Zero
GHG emissions
30% or greater GHG
emissions reduction
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Consistent with our aim to reduce energy consumption while
enhancing operational productivity, our key levers and
actions in our Net Zero pathway include:
1. Transition to 100% renewables and low emission sources,
with a medium-term target of >30% renewables by 2030
a. Consideration of wind, solar, biofuel and green
hydrogen energy sources.
b. Assessment and exploration of new storage
technologies.
c. Development and strengthening of value chain
partnerships, including capacity building, and working
with industry partners to advance emissions-reduction
technologies in mining.
d. Construction of large-scale storage and renewable
contribution to the grid through investment in the
MRPH.
e. Introducing energy efficiency opportunities into the
value chain focused on venting, crushing and haulage.
2. Investment in low emissions technologies focused on
electrification of fleet and equipment
a. Transition to electric and/or low emissions fleet
(hybrid equipment, battery electric vehicles (BEV)
and 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.
31 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, Mungari and Ernest Henry, with plans for Northparkes. Preliminary analysis indicates that decarbonisation
of Northparkes power could abate more than 100 kt.CO2-e of Scope 2 GHG emissions. Forecast changes in activity at mining operations have 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 and do not contemplate any impacts associated with the MRPH that remains under assessment.
32 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 solar power to run the remote
accommodation village, rather than diesel generators. This excludes potential impacts from future MRPH activities related to mining operations.
33 Subject to initiatives still under consideration as part of pre-feasibility or feasibility studies.
This figure depicts the planned emissions reduction pathway to 2030, aligned with our Net Zero approach, with the
base theoretical abatement potential estimated to be ~34%31,32 and potential opportunities identified to support
up to ~55%33.
The accompanying diagram visualises the interaction of our timeline and implementation activities, and forecasts the
impacts of our emissions reduction pathway. The assumptions, uncertainties and dependencies informing this transition plan
and subsequent reduction forecast are detailed in the footnote and informed by site-specific decarbonisation roadmaps and
the assumptions therein. We will continue to adapt and expand this data out to 2050.
Planned emissions reduction pathway to 2030
-180
~55%
-190
~34%
4
-103
-150
44
69
FY20 adjusted
baseline
2030
GHG emissions (kt.CO2-e)
Evolution Scope 1 and 2
Increases
Decreases
2030 emissions reductions
Pending Projects
Cowal Power Purchase
Agreement and site activity
Mungari site activity
Ernest Henry site
activity
Northparkes strategic low emission
energy partnership and site activity
Mt Rawdon mine
closure
Red Lake site
activity
919 kt.CO2-e
603 kt.CO2-e
413 kt.CO2-e
Strategic low emission energy
partnership at Mungari and
Ernest Henry, plus additional
opportunity at Northparkes
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We recognise our direct and indirect contribution to GHG
emissions through the value chain. Our Scope 1, 2 and 3
emissions are externally calculated, with Scope 1 and 2
included in this Report. Internally, we collate and review
Scope 3 emissions, with the goal of continuous improvement
in data collection, governance and assurance. Scope 3 will
be disclosed following the clarification of best practice
reporting expectations from the IFRS and impending ASRS
regulatory obligations.
Performance: Net Zero milestones and actions
In FY21 and FY22, we established our targets and metrics to
monitor and measure our performance towards our Net Zero
commitment. We undertook capacity building throughout
FY23 which improved our maturity, and throughout FY24 we
continued to embed climate-related risks into our systems
and processes in preparation for the incoming mandatory
disclosure legislation obligations.
In FY24, we continued the year-on-year reduction of Scope 1
and 2 emissions reaching a ~12% reduction from our adjusted
FY20 baseline. The data supporting this value has been
validated by an external specialist, in line with the Australian
National Greenhouse and Energy Reporting (Measurement)
Determination 2008 (NGER Determination) and Regulations
as well as the GHG Protocol, as part of our annual data
review processes. This reduction reflects our strategy to
focus on renewable energy partnerships, with the
implementation of the Cowal PPA being a key contributor.
We continue to plan and implement decarbonisation actions,
in line with our Net Zero commitment and approach. Our
FY24 performance and decarbonisation achievements
towards this goal and ongoing actions to support these
productivity improvements and emissions reductions are
outlined in the following progress table.
Metrics and targets
Status
Progress in FY24
Goal: 30%
reduction in
emissions by 2030
and Net Zero
by 2050 (Scope 1
and 2)
On track
• Emissions (Scope 1 and 2) reduced by ~12%35 from FY20 adjusted baseline.
• Adjusted emissions baseline and forecast to include Northparkes and linked to Life of
Mine Planning, in accordance with GHG Protocol.
• Reviewed modelled Net Zero pathway, identifying Scope 2 emissions reduction
opportunities for Ernest Henry, Mungari and Northparkes.
• First full year of Cowal PPA implementation and first surrender of LGCs as per the
Renewable Sourcing Strategy.
Decarbonisation
achievements
in FY24
Achieved
Key highlights:
• Further developed site decarbonisation roadmaps under 1.5°C and 2°C scenarios,
including marginal abatement cost curves (MACC) and integrated opportunities into
mine expansion feasibility studies.
• Emissions considerations and modelling consistently applied throughout Capital
Expenditure Request processes, Life of Mine Planning, and due diligence processes.
• Continued use of electric drill and underground battery electric vehicles at Red Lake.
• Continued engagement with external parties regarding lower emissions power, fuel
and equipment opportunities.
• Cowal’s underground vent transferred to mains power resulting in a reduction in
Scope 1 emissions.
34 The Cowal PPA is committed with 70% renewables by 2030. Northparkes may engage in a comparative strategic low emission partnership and is yet to undertake a
detailed decarbonisation study. Mungari is investigating partnerships with renewable energy providers. Ernest Henry is also investigating partnerships with local
energy networks. The above forecast excludes potential impacts from future MRPH activities related to mining operations. Actual emission factors were used from
FY20 - FY24 (source: NGAF, DCCEEW). Projections were used from FY25 - FY30 (source: Australian emission projections baseline scenario, DCCEEW). Exclusions
to this note include Canada and Ernest Henry emission factors.
35 Assessed using market-based method. Update from preliminary value of ~14% reduction reported in FY24 Director’s Report following inclusion of Corporate and
Exploration data and completion of external verification process.
Evolution’s emissions reduction forecast to Net Zero34
FY24 progress made towards Net Zero – integrated into everything we do
800
900
1000
700
600
500
400
300
200
100
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2040
2050
-
kt.CO2-e
Not to scale
Scope 1 GHG emissions
Potential ~34%+
reduction by 2030
Actuals
Modelled
Conceptual
Scope 2 GHG emissions
1. 100% renewables
2. Electrification
3. Biodiversity
Energy efficiency and management, strategic energy partnerships, and grid decarbonisation
Electrification
Assured, nature-based solutions
Responsible environmental stewardship
Technology feasibility assessments and
trials to displace diesel:
• Battery-electric vehicles
• Hybrid vehicles
• Low emissions diesel and fuel additives
• BluVein (mine electrification)
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Emissions and data
forecasting; Life of Mine
Planning
Operational emissions
optimisation
Climate scenario analysis
Emissions reduction
pathways
Internal and external
reporting
• Continued emissions forecasting
based on Life of Mine Plan and
monitoring progress against
forecast.
• Commenced implementation of a
streamlined emissions forecasting
data management system with an
external provider.
• Applied emissions review and
modelling into business
development opportunity
assessments, due diligence and
major project activities to assess
the impact of acquisitions (e.g.,
Northparkes) and projects on
our Net Zero performance and
FY20 baseline.
• Decarbonisation opportunities
identified, assessed and trialled
across operations.
• Chief Technical Officer position
created – supporting optimisation
of long-term planning, including
asset optimisation.
• Energy Lead position created
in Supply team - embedding
energy efficiency considerations
into energy and other
procurement processes.
• Energy Planner employed at
Red Lake, supplemented by two
employees undertaking the
Certified Energy Manager course.
• Battery electric drills at Red Lake,
implementation of wireless
natural gas meters to improve
monitoring of consumption and
defects and identification of
replacement and maintenance
strategies.
• Progress against TCFD reporting
– currently at 100% coverage,
improved from previous year.
• Implemented climate scenario
analysis across projects, including
Mungari 4.2 Project, Cowal OPC
and Ernest Henry Mine Extension
Feasibility Study – energy and
emissions, extreme weather
events (storms).
• Reviewed final recommendations
of TNFD.
• Ongoing development of
operational and project
decarbonisation roadmaps.
• Northparkes and Ernest Henry
energy audits undertaken, and
improvement opportunities and
findings fed into future planning.
• Renewable Sourcing Strategy
implemented.
• Performance: emissions
performance on track with
Net Zero commitment.
• Preparation for mandatory
disclosures through a gap
analysis against ISSB’s IFRS
S1 and S2 climate standards
and review of draft ASRS
requirements.
• Commenced ASRS transition
planning.
Value chain partnerships
• Member of Electric Mine
Consortium: focused on carbon
footprint reduction through
industry innovation, shared
learnings, electrification and
other technologies.
• Sustainability Advantage:
identifying and executing
opportunities for development in
Scope 1, 2, and 3 decarbonisation
and climate reporting areas.
• Sustainable Procurement
Framework and other
partnerships focused on
energy procurement
(renewables and biofuels).
• Continued engagement with
heavy equipment suppliers to
better understand the value chain
emissions map and identify
suitable opportunities for
partnerships to support
sustainable fleet transition, e.g.,
Red Lake, Cowal, Northparkes.
• Cowal added an XE Caterpillar
hybrid vehicle to the fleet.
Access to hybrid models could
theoretically reduce emissions
regarding fleet by ~35%. Our
fleet transition is enabled by our
membership in the Caterpillar
Pathways to Sustainability
program and supported by
other supplier relationships
including our engagement
and trials with Sandvik.
• Partnerships with renewable
energy suppliers such as AGL
with Cowal PPA and evaluating
further opportunities in other
regions.
• Partnerships with low emissions
and additives fuel providers,
government and industry
partnerships to pursue renewable
energy options, e.g., Critical
Minerals Zone (Mt Isa) in
Queensland and other working
groups in Western Australia.
Responsible environmental stewardship
The achievement of these targets is enabled by the following pillars and actions:
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Performance: Emissions
Scope 1 and 2 emissions
We use a variety of standard metrics to track emissions
performance, emissions intensity and energy consumption.
Our performance is tracked and aligned to financial year
reporting, international standards and Australian regulations.
The FY24 data reflects our current portfolio adjusted to
include Northparkes for the full financial year. This is
consistent with the NGER Determination reporting guidance.
For Scope 2, we apply both the location-based and
market-based method, consistent with methodologies
outlined in the NGER Determination and the GHG Protocol
Scope 2 Guidance.
In FY24, we completed the annual NGER reporting for
all Australian operations, which is prepared by an external
specialist and submitted to Clean Energy Regulator. We
elected not to submit using the CERT framework, instead
relying on tracking and reporting progress against Net Zero
targets through existing public disclosures, in line with
incoming mandatory disclosure requirements. Regular capture
and analysis of the energy and emissions performance36 is
conducted in alignment with our Sustainability and Strategic
Planning Standards.
In FY24:
• Total Scope 1 and 2 emissions (from fuels and electricity)
continued to trend downwards reaching a ~12% reduction
from our adjusted FY20 baseline.
• Overall, Scope 1 emissions reduced ~3% against the
adjusted FY20 baseline, predominantly driven by a
40% reduction in Scope 1 emissions at Mungari since FY20.
• Scope 2 emissions reduced by ~15% against
the adjusted FY20 baseline. The primary contributions
were Cowal through renewable electricity purchased
via the PPA (~9% reduction) and Northparkes
(~6% reduction).
In FY24, in line with our Net Zero approach to strategically
focus on securing renewable energy to reduce Scope 2
emissions, more than one third of all electricity purchased
across our portfolio was sourced from renewable or low
emission sources. Cowal sourced almost half of its power
from renewable sources, predominantly attributable to the
PPA. Red Lake sourced almost 90% of its power from low
emissions or renewable sources, due to the make-up
of the supply grid.
Further details on FY24 emissions performance are
presented in the following charts.
GHG emissions
FY24
FY20 (baseline)37
Change (%)
Total of Scope 1 and 2 (tCO2-e) (market-based)38
808,020
919,167
~12
Scope 1 (tCO2-e)
225,199
231,823
~3
Scope 2 (tCO2-e) (market-based)38
582,821
687,344
~15
FY24 emissions performance against FY20 baseline
36 Since FY23, Evolution has applied the market-based emissions accounting approach. This approach, aligned with the GHG Protocol, provides the ability to account
for emissions reductions associated with renewable energy instruments (such as the Cowal PPA), where appropriate, as well as the residual mix of grid emissions
factors. In accordance with the GHG Protocol, for a multi-regional company where market-based method applies, market-based will be calculated for the portfolio
for consistency. For operations within the portfolio where market-based method is not applicable (i.e., not grid connected like Ernest Henry and Red Lake) as per
the GHG Protocol hierarchy location-based method is used for those facilities, as the market and location-based calculated Scope 2 emissions are the same.
As per GHG Protocol, both market-based and location-based emissions are reported in our ESG Performance Data.
37 FY20 emissions baseline for current assets adjusted in FY24 to include the acquisition of Northparkes and validated in accordance with the GHG Protocol.
38 FY24 Scope 2 emissions are calculated using the market-based approach in alignment with the GHG Protocol. LGCs will be surrendered in January 2025 for the
2024 calendar year.
In FY24, in line with our
Net Zero approach to
strategically focus on
securing renewable
energy to reduce Scope 2
emissions, more than
one third of all electricity
purchased across our
portfolio was sourced
from renewable or
low emission sources.
Northparkes Environment team inspecting biodiversity at a nearby farm
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Safeguard Mechanism
We monitor the impacts of global and national emissions-limiting regulations, cap and trade and emissions schemes.
Under the Australian Government’s Safeguard Mechanism regulations, Cowal’s Scope 1 emissions remained within the
registered multi-year monitoring period threshold for the FY22-FY24 reporting period. While the Safeguard Mechanism
was not triggered at any of our sites, in anticipation of future Scope 1 emissions above the threshold, Cowal applied for,
and had approved, an emissions-intensity determination.
FY24 Scope 1 and 2 emissions (tCO2-e) breakdown by operation39
Evolution electricity consumption by category FY20 - FY24
39 Data calculated utilising market-based methodology.
83%
65%
66%
9%
61%
10%
29%
29%
FY22
FY21
FY20
FY23
FY24
25%
35%
17%
71%
Renewable electricity (kWh)
Low emission electricity (kWh)
Northparkes
Ernest Henry
Mt Rawdon
Mungari
Red Lake
Cowal
250,000
200,000
150,000
100,000
50,000
0
Scope 1 (tCO2-e)
Scope 2 (tCO2-e)
151,082
82,448
7,449
25,751
73,428
48,715
52,984
28,671
133,633
18,945
164,163
20,669
Responsible environmental stewardship
Non-renewable electricity (kWh)
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Intensity ratios enable 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, which enables us to analyse and consistently
compare data in the context of activity at all operations. The FY24 emissions intensity performance compared to FY20 is
presented below.
FY24 proportion of total Scope 1 and 2 emissions (tCO2-e) by operation41
Total Scope 1 and 2 emissions (tCO2-e) breakdown by operation FY20 vs FY2440
40 FY20 data calculated utilising location-based method and reflective of adjusted FY20 baseline. FY24 data calculated utilising market-based method.
41 Data calculated using market-based method.
GHG emissions intensity
FY24
FY20 (baseline)37
Change (%)
Emissions intensity (total Scope 1 and 2 tCO2-e per tonne
material mined)40
0.0149
0.0175
-15
Northparkes
Ernest Henry
Mt Rawdon
Mungari
Red Lake
Cowal
300,000
250,000
200,000
150,000
100,000
50,000
0
FY20
FY24
281,612
233,531
29,583 33,200
158,407
122,142
103,238
81,655
127,259
152,578
218,790
184,833
Cowal (29%)
Mungari (15%)
Mt Rawdon (10%)
Ernest Henry (19%)
Northparkes (23%)
Red Lake (4%)
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GHG emissions intensity FY20 - FY2442
Emissions intensity relates to the emission rate relative to the
intensity of the mining process. We monitor this, aligned with
our mining activity and emissions reduction pathway. Due to
the overall change in our operating profile over time, through
acquisitions and divestments, there has been an increase in
emissions intensity broadly across the business, with variance
across sites on performance. This variance is expected given
the mixed open pit and underground portfolio.
Our emissions intensity increased from FY23 to FY24,
however, remains 15% below the adjusted FY20 baseline.
The intensity increase in FY24 reflects Northparkes’
incorporation into the portfolio. Consistent with our planned
emissions reduction pathway, we will work to implement
our Net Zero approach at Northparkes to increase renewable
energy and expect this will enable further emissions
intensity improvement.
Scope 3 emissions
Our internal Scope 3 emissions reporting remains
underpinned by our principles of transparency of data,
methodology and selection of material categories,
setting a good foundation and structure for reporting,
and continuous improvement.
In FY24, we:
• Calculated Scope 3 emissions across five reporting
categories aligned with the GHG Protocol (purchased
goods and services, capital goods, fuel and energy related
activities, business travel, processing of sold products),
and validated through a third party.
• Engaged external consultants to assess our assurance
readiness regarding Scope 3 emissions, in line with
incoming ASRS requirements.
• Partnered with the Sustainability Advantage Sustainable
Value Chain Leadership Accelerator program and subject
matter experts, 100% Renewables, to undertake direct
partnering, engagement and collaboration, focused on
achieving measurable Scope 3 emissions reductions within
key elements of our upstream and downstream value chain.
• Improved our reporting structure with mapping and
external engagements.
We continue to monitor and review our year-on-year trends
as we prepare to transition to mandatory disclosure of
Scope 3 emissions. We have disclosed Scope 3 emissions
to select ESG agencies. They will continue to be tracked
internally and validated externally.
Renewable Sourcing Strategy
In FY24, we continued to implement and measure against
our established Renewable Sourcing Strategy managed at the
Group level, focused on increasing renewable energy usage
at all operations. Core considerations include supply security,
price risk protection, flexibility to accommodate changing
business power requirements and emissions reductions.
The strategy includes an emissions reduction pillar that
embeds our Net Zero targets and commitment and
renewable energy solutions considerations into decisions
made across the value chain when considering future power
needs. Key assessment criteria include:
• Security of supply from renewable energy or low
emission sources addressed through ensuring
structuring, technology and counterparty risks are
identified, assessed and mitigated or managed.
• Benchmarking the pricing of renewables or low emission
electricity against market pricing or a competitive
procurement process.
42 Data reported for assets owned in the respective financial year. FY20 baseline adjusted in FY24 to incorporate acquisition of Northparkes.
FY20
FY21
FY22
FY23
FY24
0.0180
0.0170
0.0160
0.0150
0.0140
0.0130
0.0120
Emissions intensity (tCO2-e/tonne mined)
Adjusted FY20 baseline (tCO2-e/tonne mined)
0.0129
0.0140
0.0145
0.0149
0.0175
Responsible environmental stewardship
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• Access to green credits where available and benchmarked
against available market pricing.
• Maintaining flexibility in deal structuring to allow for
changes in demand profile.
• Taking a whole of business view while maintaining a
modular approach to renewable solutions.
These strategic commitments have been applied throughout
the Cowal PPA. During FY24, we continued to monitor
opportunities to collaborate on similar arrangements and
other renewable energy projects across our operations and
as part of our Project studies.
Performance: Scenario planning and modelling
in line with TCFD
Climate scenario analysis
While it remains challenging to accurately predict future
policy and climate change impacts, scenario analysis
highlights the range of physical and transitional impacts
climate change may present in specific contexts. They allow
for strategic decision-making to improve resilience to
climate change. Asset level emissions management, industry
partnerships and investigation of technological pathways are
key to monitoring and achieving medium and long-term
emissions targets.
In FY24, we extended our qualitative climate scenario
analysis, already in place at Cowal and Mungari, for Ernest
Henry as part of a Feasibility Study into the mine extension.
These are some of our largest operations and, as required in
incoming mandatory disclosures, can be considered
representative for the identification and management of
emerging climate-related risks and opportunities for the
business. They enable an enhanced understanding of the
business-wide impacts to revenue, expenditure, operations,
workers, supply chains, and payments to governments.
While we do not consider our climate-related risks and
opportunities as concentrated in a particular geography or
facility, we recognise these operations reflect a significant
proportion of our risk. We plan to undertake further
qualitative assessments of climate impacts for Northparkes
in FY25.
We have increased the rigour of our climate risk
management through the operational scenario analysis.
The scenario analysis undertaken aligned with the
recommendations of the TCFD - adopting high, moderate
and low emissions scenarios, including below 2°C scenarios,
and short, medium and long-term horizons. The underlying
analysis was based on data and information from the
Intergovernmental Panel on Climate Change (IPCC),
including Representative Concentration Pathways (RCP)
scenarios and the Network for Greening the Financial
System (NGFS) scenarios. The Standards used to assess
climate-related risks and opportunities included ISO
14091:2021 Adaptation to climate change — Guidelines on
vulnerability, impacts and risk assessment and ISO
31000:2018 Risk Management. The assessment of physical
impacts was informed by data and insights from the IPCC
RCP scenarios and transition impacts by the NGFS scenarios.
These scenarios provide data and information to assess the
potential impacts across the mining value chain, allowing for
climate considerations and stress testing of potential
impacts to operations and in the design of mine expansions.
Overview of scenarios selected for climate
scenario analysis
Scenario
Alignment
Scenario Risk Type
High
RCP 8.5, NGFS
Physical
Moderate
RCP 4.5, NGFS
Physical
Low
RCP 2.6, NGFS Net Zero
Physical, Transition
The analyses identified risks of wind damage, extreme
rainfall, flooding and lightning due to heavy rainfall events
and windspeeds projected approximately to year 2100.
Additional risks included reliability of the electricity
grid, diesel consumption in equipment and the potential
impact of a carbon price on Mungari and its suppliers.
These risk factors had previously been identified and
were further assessed.
In stress testing against these scenarios, we focused on
identifying indicators to support internal decision-making
and allowing for adequate information for local and broader
stakeholders. Resilience measures will continue to be
reviewed as analyses evolve over time, including options
to incorporate more quantitative information.
We also note the new Australian legislation for mandatory
climate-related reporting due to become law from January
2025, will require two scenarios including high (2.5°C or
higher) and low (1.5°C) scenario analyses. These obligations
have been factored into our ongoing management of
climate risk.
Task Force on Climate-Related Financial Disclosures
With the introduction of IFRS S1 and S2 and ASRS, TCFD
will be disbanded and integrated into these standards.
TCFD references are valid for FY24 reporting and will be
transitioned to ASRS once this is in place. Our strategic
climate focus aligned with the TCFD recommendations is
presented in the ESG Performance Data TCFD Index.
In FY24, an independent review was conducted of our
TCFD disclosures alongside defined and emerging
Sustainability disclosures. It verified that we maintain
100% coverage against the TCFD framework, with
continuous improvement required in the depth
and detail of disclosures under ASRS.
We continued to enhance our disclosures and internal
capability regarding TCFD throughout FY24, including
stress testing climate scenarios within the Ernest Henry
Mine Extension Feasibility Study and improving
understanding and disclosures of climate-related
financial impacts to the business.
Environmental monitoring and sampling at Mungari
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Tailings management
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 life cycle.
Our tailings management approach, planning, design,
construction and operation is based on compliance with our
Tailings Storage Facility (TSF) Sustainability Performance
Standard (the Standard), leading industry practices and
guidelines to ensure structural stability and support risk
mitigating actions. A full list of TSFs is provided in our
Church of England Disclosure with references to GISTM
and ANCOLD 2019. The disclosure includes current
volume, date and findings of recent risk assessments
and consequence classifications.
Our tailings management approach integrates climate
change, stakeholder engagement, emergency preparedness
and management, local communities, receiving environment,
dam safety and post-mine land use.
Risk management, review and assurance
Our approach to tailings management is overseen by the
Tailings Storage Facilities Governance Committee, which
reports through to the Leadership Team and the Board,
as governed by the Tailings Storage Facilities Governance
Committee Charter. TSF risk assurance is achieved through
rigorous design, construction and operations management,
routine inspections and monitoring and independent review
and audit processes. Risk management and mitigation is a
focus, and our work includes continual review and
improvement of design and operational practices to further
reduce risk. Aligned with our approach to waste minimisation,
recycling and reuse, tailings are reused to stabilise many of
our underground operations and water is recovered from
facilities for reuse in relevant processing applications.
The risk assessment and management of Northparkes’ TSFs
was a key consideration in the due diligence, acquisition and
integration process in FY24. The acquisition introduced two
active and three inactive TSFs into the portfolio, which are
found to be in general alignment with the Standard.
Performance
Material risk management: All sites have a Critical Control
Program in place and regularly conduct and report on
Material risk management and the performance of critical
control activities, including LOD 1, 2 and 3 activities.
Monitoring and surveillance: All TSFs are operated in
accordance with a Tailings Operations Manual and employ
monitoring and surveillance systems to monitor TSF
performance over time.
Where applicable, real-time monitoring is utilised, and
satellite monitoring is also included for all TSFs. 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 TSF.
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. No material requirements were
identified to action in FY24.
Independent review: Our Standard requires operations to
obtain independent reviews of designs and conduct dam
safety reviews at regular intervals.
Tailings governance: LOD2 tailings assurance is undertaken
quarterly, with each operation conducting a performance
review focusing on impoundment stability, integrity, risk
review and planning coordination. Group level oversight is
provided as to whether the TSF design and performance
meet accepted standards/codes of practice. Performance
reports and operational updates are provided to the
Governance Committee and the Leadership Team, with
oversight by the Board Risk and Sustainability Committee.
We are committed to responsible
tailings management, aligned
with global best practice for
safety, the environment and
communities during all phases
of the facility life cycle.
Responsible environmental stewardship
Northparkes Environment team inspecting the vegetation cover of a TSF
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8
~23Mt
~10Mt
~28Mt
35%
7%
active tailings
storage facilities
globally
ore mined from
open pit
ore mined from
underground
ore discharged
to tailings storage
facilities
tailings reuse at
Red Lake for paste
fill – 215kt
tailings reuse at
Mungari for paste
fill – 133kt
Ongoing review and assurance activity.
Review and continued implementation of the
Tailings Storage Facility Standard, aligning
with GISTM.
Continued internal tailings governance
and oversight of operational performance
through quarterly Tailings Storage Facilities
Governance Committee meetings across
the business, with oversight by the Risk
and Sustainability Committee.
Tailings risk was controlled and further reduced in FY24 by:
Continued compliance improvement to the
Standard as evident in the quarterly compliance
reviews and annual internal assurance process.
Developing innovative partnerships, including
with the University of Queensland and the
Commonwealth Government, on an incoming
Trailblazer Agreement for tailings rehabilitation
cover trials to demonstrate our commitment to
innovation in tailings management.
Ongoing remediation of existing structures
at Red Lake and Ernest Henry to improve
post-seismic stability factor of safety.
Continued construction of the Integrated Waste
Landform at Cowal, significantly reducing the
likelihood and impact of a dam failure.
Approval of an in-pit TSF at Mungari.
FY24 TSF snapshot
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Environmental impacts and Waste (including Circular economy)
Effluents and waste
Management approach
We ensure waste, product materials and other effluents
generated from mining and processing activities are
responsibly handled, stored and disposed. Operational
waste streams are generally classified as mineral and
non-mineral. Waste management, recycling and reuse
options are integrated into the Group induction
developing broad awareness on the importance
of responsible waste management.
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 life cycle and updated regularly.
These plans ensure responsible non-mineral and mineral
waste management by specifying how 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 scrap steel, mill balls, liners, copper wire, electrical cables,
timber, cardboard, glass and plastic are diverted from
landfill and recycled, where feasible. We also aim to recycle
hazardous waste, such as waste oil, oil filters, oily rags,
grease, hydraulic hoses, batteries and e-waste,
where possible.
Mineral waste is the most substantial waste stream
generated and is defined as excess material removed from
the mine void to reach the ore body and remaining materials
once minerals are extracted 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. Mining activities can
only proceed if Feasibility Assessments, including in relation
to closure planning, demonstrate the risk can be managed.
Where management of potentially problematic material
is uncertain or known to occur, the operation maintains
plans and implements mitigation measures and
progressive rehabilitation activities to ensure the
receiving environment is not impacted during the
operational and post-mining phases.
An integrated planning approach is taken to the
management of mineral waste. Mineral waste is
geochemically categorised prior to mining, haulage,
treatment (if required), placement, encapsulation
(if required) and rehabilitation. The integrated planning
approach assures the protection of environmental values
where we operate through application of appropriate
technical and economic risk management.
Performance: Mineral waste
In FY24, our operations excavated ~19.3 million tonnes
of waste rock to extract ~32.6 million tonnes of ore.
This represents an average waste to ore ratio of 0.59,
an improvement from 0.63 in FY23.
A lower strip ratio equates to less material being moved to
access ore, resulting in a more efficient operation by
decreasing total emissions associated with material
movement and decreasing land disturbance required to
store waste rock. The ratio generally decreased due to a
reduction in the overall proportion of open cut mining
(generally higher strip ratio) compared to underground
mining methods across the portfolio. The key drivers of this
change were Cowal’s increase in underground production
and Ernest Henry’s return to full underground production
following the March 2023 weather event that had a
significant impact on mining activity.
Waste to ore strip ratio FY20 - FY2443
43 Data reported for assets owned in the respective financial year.
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2.94
1.19
0.63
0.59
FY20
FY21
FY22
FY23
FY24
3.30
Responsible environmental stewardship
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Performance: Non-mineral waste
We generate non-mineral waste via a range of activities
throughout our mine life cycle, including exploration, mining,
maintenance and processing.
During FY24, approximately 32,436 tonnes of non-mineral
waste was generated across our operations, of which
72% was classified as non-hazardous waste. In FY24, 42%
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.
To contribute to the broader community’s responsible waste
management, Mt Rawdon and Commonwealth Scientific and
Industrial Research Organisation (CSIRO) extended their
trials and partnered in a three-year project to 2026
investigating opportunities in bioplastics, a plastic alternative
that breaks down naturally. It seeks to deploy the emerging
field of microbiological engineering to find novel uses for
waste streams. The blue-green algae growing abundantly in
some of Mt Rawdon’s water management dams allow for the
exploration of mine water as a low-cost resource, with high
biotechnological potential for bioplastics production, and
identification of innovative solutions for long-lasting plastics
and microplastics in the environment. Following trials with
community partners, Mungari initiated an e-waste
repurposing initiative that allowed for the operation’s
used IT equipment to be refurbished for use by our
people and local communities.
Environmental management
Management approach
Effective management of mining-related activities sits at
the core of our approach to environmental compliance,
as we focus on protecting cultural and environmental values,
including the rights and interests of local communities. Our
operations are subject to environmental regulation in the
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 local communities and
the environment.
All operations are required to maintain regular monitoring
and reporting to demonstrate compliance 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 Risk Assessment Matrix.
Performance
In FY24, all operations retained a strong focus on
environmental performance with no material environmental
incidents reported. Two Moderate category events were
recorded with one event being two fines (>US$10,000)
issued and paid in relation to administrative non-
compliances at Cowal associated with delayed submission of
spatial files in accordance with the site’s Environment
Protection and Biodiversity Conservation Act 1999 approval.
In another event, an environment protection order was
issued to Mt Rawdon for a non-compliance in late 2022
related to the release of water associated with an unseasonal
rainfall event. This matter was addressed through
maintenance of instrumentation and closed out in FY24.
Other Minor or Very Minor risk events occurring during FY24
were reported to the relevant government authority, where
required, and remedial action taken, where appropriate.
In FY24, Mt Rawdon and Northparkes conducted triennial
independent third-party (LOD3) audits of compliance with
environmental permits, in accordance with regulatory
requirements. Both sites achieved >95% compliance, with
identified non-compliances either already addressed or plans
implemented to address.
Air quality
Management approach
We are committed to monitoring and mitigating the
potential impacts of our operations to ensure air emission
controls are effective, and 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 people and the
environment, in the vicinity of mining operations. Air quality
is managed according to jurisdictional regulations and
licences and our Sustainability and Strategic Planning
Standards to ensure air emissions remain within specified
limits. We also review and assure 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 externally reported, as required by environmental
licences. We continually seek opportunities to improve air
quality management at our operations.
Performance
In FY24, all operations were in full compliance with regulated
limits for particulate emissions. Monitoring of depositional
dust at the operations met licence conditions. We also
supported the NSW Mineral Council’s submission to the
NSW Parliamentary Inquiry into the Current and potential
impacts of gold, silver, lead and zinc mining on human
health, land, air and water quality in New South Wales.
Cowal and Red Lake experienced unseasonal weather, which
increased the risk of dust emissions from TSFs. Both sites
applied dust suppression techniques on the surface of their
major TSFs including the use of a bonding agent which
proved highly effective.
Our operations implement various condition-relevant
methods to control dust generation. Northparkes reduces
the risk of dust generation from drying TSFs through two
methods: vegetation cover is established for TSFs unlikely
to be used in the short-term, and tyned ripper equipment
is used to create roughened strips for TSFs likely to be
operational in the short-term. Learnings from these methods
are continually reviewed and investigated for application
across other operations.
Refer to the ESG Performance Data document for
performance on air emissions.
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Water management
Management approach
Access to safe, clean water and sanitation is a basic human
right, supporting healthy ecosystems, food production 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 and stewardship.
Our strategic water management approach is centred
on managing water 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 and resilient in a variable
water security environment.
Our Managing Director and Chief Executive Officer has
ultimate accountability for our water and environmental
management, with the Chief Operating Officer and the
Vice President Sustainability holding responsibility for this
portfolio’s ongoing management and oversight – reflecting
its critical importance. Management is responsible for the
performance, and the Board maintains oversight through the
Risk and Sustainability Committee.
Our water strategy and objectives are informed by robust
engagement with stakeholders, including 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 regulation,
different scenarios and impacts. Our strategy focuses on
optimising water consumption by reducing reliance on
freshwater and maximising the reuse of mine affected water
to reduce competition in external raw water demand with
agricultural and other industries and communities, while
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 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 and
efficiencies throughout the mine life cycle and in the context
of the local catchment. They also maintain site-specific
inductions, several of which include local water-related risks.
Water-related activities and assessments are regulated by
relevant legislation in each jurisdiction and are subject to set
quality and quantity thresholds.
Performance
In FY24, the importance of water management was
emphasised during changes in the operations, their
production profiles, and changing climatic conditions
including extreme and unplanned water events that limited
storage capacity at some locations.
We maintained detailed plans at each operation to
encourage water reuse and improved water security.
Our target is to improve our water security by decreasing
freshwater use intensity below our FY20 baseline. This was
adjusted in FY24 post the Northparkes acquisition from
0.34 kilolitres per dry tonne milled (kL/dtm) to 0.40 kL/dtm.
Our freshwater use intensity has decreased 45% against the
adjusted FY20 baseline to 0.22 kL/dtm. This is, however, an
increase from FY23 (0.19 kL/dtm), reflecting the overall drier
conditions experienced at many of our operations. Efforts
continued across our operations throughout the year to
improve water efficiency, including:
• Cowal’s use of ‘WaterGuard’ - an additive proven to
reduce evaporation rates on dams while being
environmentally-friendly;
• Mungari’s potable water leak detection system; and
• Ernest Henry’s review of site water management
strategies and changes to processing plant infrastructure.
In addition, as part of ongoing improvements to the water
management system at Red Lake’s TSF, an expansion to the
engineered wetland was undertaken in FY24 to increase the
system by 10 hectares, bringing the total wetland area to
15 hectares. The new wetland will not only enhance the
water quality of the system but provide increased habitat
for marsh dwelling animals and insects. The benefits of
wetlands at Mt Rawdon are highlighted in the accompanying
case study.
None of our operations are in high to extremely high
baseline water stress areas. This determination of water
stress is adapted from definitions set in the ICMM Mining
with Principles Water Reporting44, CEO Water Mandate, WRI
Aqueduct Global Water Tool and Water Footprint Network45.
Our future efforts in water management will continue to
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.
Detailed information on our water withdrawal, discharge
and consumption by source and region can be found in the
ESG Performance Data.
44 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).
45 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 from FY23 onwards.
Responsible environmental stewardship
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46 Data reported for assets owned in the respective financial year. The adjusted FY20 baseline has been updated to reflect current FY24 portfolio.
Water intensity FY20 v FY2446
As Mt Rawdon progresses towards mine closure and
rehabilitation, we are reviewing options to transition
the site in innovative ways, including the MRPH and to
open woodlands suitable for cattle grazing. One
exciting way to facilitate this transition is utilising
wetlands. Wetlands act as a filter to remove materials
from water, ensuring any water released from the site
is suitable for improved pasture, cattle or to enter
local waterways. The focus of this option is on
passively treating water from the mine site to support
its application for future land uses.
Following existing work with CSIRO, in mid-May 2024
earthworks were undertaken and a three-stage construction
phase commenced. To design the wetlands as a long-term
passive system and natural filter, work is underway through
full-scale field trials to improve the quality of water running
off the mine site, so it is suitable for offsite release. There will
be six types of areas with differing materials to encourage
microbes to grow, filter, and improve water quality. It is
anticipated the project will require more than 400m of
excavation at length with ~2,000m3 of mulch, ~1,300m3 of
gravel, ~1,700m3 of other organics like leaf material and soil
and the installation of ~12,000m2 of liner.
We will monitor the project to analyse its performance and
identify improvements to guide the construction of
additional wetlands as the mine progresses through closure
and rehabilitation.
Mt Rawdon
expands upon
its wetland
trial, linked to
the Mt Rawdon
Pumped Hydro
Project (MRPH)
Case
study
FY20
FY21
FY22
FY23
FY24
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Raw water use intensity (kL/dtm)
Adjusted FY20 baseline (kL/dtm)
0.40
0.33
0.23
0.19
0.22
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Responsible environmental stewardship
Land use and Biodiversity
Management approach
Local stakeholders are valuable sources of knowledge on
biodiversity. We engage with local communities to identify
sensitive areas, monitor potential impacts and incorporate
stakeholder feedback into our environmental stewardship
approach. We also work with local conservation groups to
identify opportunities to collaborate to achieve positive
environmental outcomes. An important part of our
approach is requiring our suppliers and business partners
to demonstrate their biodiversity stewardship in our
tendering process.
Our biodiversity strategy is linked to the stage of
development of projects and operations. Biodiversity risks
at all active operations are mitigated through ongoing
processes in risk assessments, baselining, field mapping of
flora and fauna, mitigation and land disturbance permitting.
Biodiversity assessments are undertaken in the project
planning phase to identify the risk of impact to biodiversity
and mitigation opportunities, which inform the development
and review of operational plans.
We strive to apply the mitigation hierarchy from Avoidance,
Reduction, Restoration to Transformation with the ambition
of no net loss in protecting biodiversity and ecosystems. We
design our exploration and mining activities 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. 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.
Biodiversity Management Plans, which meet the
requirements of our Biodiversity Sustainability
Performance Standard and local regulations, are in
place at all operations, where required, and are regularly
reviewed. All activities are monitored in accordance
with relevant jurisdictional obligations.
In FY24, we expanded on our FY23 gap analysis conducted
against TNFD in its beta framework, to review any
differences to the final TNFD framework released. No
material differences were identified from our previous
assessment. Opportunities were incorporated into previous
recommendations associated with biodiversity risk
assessments and frameworks and will continue to be
utilised to build internal capability and inform future
disclosures in relation to regulated and non-regulated
biodiversity impacts and dependencies.
Performance
Throughout FY24, our commitment to land use and
biodiversity protection has been demonstrated through
initiatives including:
• Managing 8,632 hectares of disturbed land under mining
lease (at the close of FY24), with all under our mining
leases currently managed through regularly reviewed
Biodiversity Management Plans related directly to mining.
• Contributing approximately 14% of community investment
to improve or enhance environmental outcomes.
• Maintaining no impact to any World Heritage Sites.
• Finalising the Cowal Biodiversity Stewardship Agreement
with the NSW Government.
• Cowal donating 150 native plants to local schools to
celebrate 2024 World Environment Day.
• Continuing to improve environmental outcomes at Red
Lake’s Balmer Lake.
• Expanding the existing CSIRO wetlands trial at
Mt Rawdon as showcased above.
• Embedding the disturbance permitting process at all
operations, including Mungari’s development of
a digital disturbance permitting process.
• Undertaking baseline flora and fauna studies prior to any
significant disturbance, including the baseline ecological
studies at Cloncurry North exploration site and surveys for
the Julia Creek dunnart.
• Monitoring biodiversity offset and conservation sites’
status, including Northparkes’ Kokoda conservation area
activities (ecological monitoring, track maintenance and
flora and fauna (pest) management).
• Ensuring environmental protection through sediment
and erosion control including the Cowal Lake
Protection Bund.
• Partnering with communities and conservation
not-for-profit organisations including Lake Cowal
Foundation, and community clean-up activities at
Red Lake and Ernest Henry.
The status of disturbed and rehabilitated land at the
operations can be found in the ESG Performance Data.
Responsible environmental stewardship
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Mine closure, rehabilitation and legacy
Management approach
Our mine closure plans aim to ensure the environment where
mining activities take place is restored or transformed to a
long-term sustainable state, either similar to what existed
prior to mining or is suitable for another use, consistent with
relevant stakeholder engagement outcomes. We have
obligations to make operational and financial provisions to
ensure mine closure plans, rehabilitation and remediation
activities are completed with consideration and engagement
of external stakeholders.
Closure planning is undertaken for all operations, and
financial provisions updated as required. We plan for
closure from the earliest stages in the mining life cycle.
This includes consideration of closure at the Feasibility
stage, prior to mine development, ensuring appropriate due
diligence, undertaking impact assessments and allocation
of adequate resources for planning, implementing and
monitoring closure activities 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 the 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, operational
changes and progressive rehabilitation requirements.
They are updated in accordance with the Standard
and regulatory requirements.
Progress reports on implementation and compliance
with ongoing rehabilitation commitments are submitted
to regulatory authorities as required and third-party
auditors annually.
Performance
During FY24, we:
• Integrated stakeholder engagement in the planning phase.
• Rehabilitated 1,118 hectares of land.
• Maintained closure plans for all operational sites.
• Conducted annual audit of rehabilitation provision and
financial assurance (LOD3).
• Continued monitoring revegetation success in
rehabilitated areas.
• Undertook detailed closure planning for landforms and
wetlands development at Mt Rawdon to support
rehabilitation objectives and ecosystem protection.
• Performed ongoing extensive reclamation activities at
Red Lake for the treatment of legacy arsenic trioxide
materials from underground workings.
• Achieved significant milestones for the MRPH. Read the
case study here, and more information about the project
here: www.mtrawdonhydro.com.au.
• Confirmed ~$493 million47 government-registered financial
assurance (rehabilitation liability) – 30 June 2024
(refer to accompanying table).
Evolution operation
Cowal
Ernest Henry
Northparkes
Red Lake
Mungari
Mt Rawdon
Type of
government surety
Surety bond
Levy
Surety bond
Letter
of credit
Levy
Levy
Total government
registered financial
assurance
$127.9M48
$144.4M
$46.8M
C$63.4M
$57.5M
$47.3M
47 Red Lake’s rehabilitation liability converted from Canadian to Australian dollars using exchange rate at the close of 30 June 2024.
48 The increase from the FY23 figure is attributable to additional disturbance area, since the previous surety bond was set in 2016, and rehabilitation reforms in
New South Wales through the Mining Amendment (Standard Conditions of Mining Leases—Rehabilitation) Regulation 2021 requiring changes to the way financial
assurance is assessed. Similar changes are expected in some other operating jurisdictions moving forward.
Overview of rehabilitation liabilities as of end of FY24
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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.
ALO
Act Like an Owner. An internal ongoing recognition program that rewards our employees for their supportive behaviour and good ideas.
AMD
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.
ASRS
Australian Sustainability Reporting Standards. Will set the mandatory climate-related financial reporting requirements for Australian entities.
B
Billion. The number equivalent to one thousand million.
BARS
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.
BBP
Balanced Business Plan.
BEV
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.
CERT
Corporate Emissions Reduction Transparency Report.
CMT
Crisis Management Team. The CMT provides support through management of crisis level issues.
CN
Cyanide. A chemical compound used in the extraction of gold and silver.
CoP
Community of Practice.
CO2-e
Carbon dioxide equivalent. A standard unit for measuring carbon footprints.
COVID-19
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.
CPR
Cardiopulmonary resuscitation.
CSA
Corporate Sustainability Assessment. A scoring methodology that companies and investors can review on a company’s ESG.
CSIRO
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
Dow Jones Sustainability Indices. These are a family of indices evaluating the Sustainability performance of thousands of companies globally.
EAP
Employee Assistance Program. This is available to employees and their families to use to assist with their health and wellbeing.
ERT
Emergency Response Team. Teams built at each operation to support both our operations and assist communities through significant
incidents or threatening situations.
ESG
Environmental, Social and Governance. The three key factors when evaluating the sustainability and ethical impact of an investment in a
company or country.
ESS
Employee Share Scheme. A scheme introduced by Evolution that 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
Fuel cell electric vehicles.
FNP
First Nation partners.
FPIC
Free, Prior and Informed Consent. A principle protected by international human rights standards originating from and reinforcing the right to
self-determination.
FSB
Financial Stability Board. An international body that monitors and makes recommendations about the global financial system.
GHG
Greenhouse Gas. Compound gases that trap heat or longwave radiation in the atmosphere.
GRI
Global Reporting Initiative. Independent, international organisation that provides the world’s most widely used standards for Sustainability
reporting.
ICMM
International Council on Mining and Metals. An international organisation whose purpose bringing together a safe, fair and sustainable mining
and metals industry.
IFRS
International Financial Reporting Standards. Set a comprehensive global baseline for sustainability disclosures through IFRS S1 and S2.
IMT
Incident Management Team.
IPCC
Intergovernmental Panel on Climate Change.
ISO 31000
International Organisation for Standardisation. ISO 31000 Risk Management Guidelines provide principles, a framework and a process for
managing risk.
ISSB
International Sustainability Standards Board.
ISS ESG
Institutional Shareholder Services (ISS). ISS ESG is a business that provides corporate and company ESG research and ratings.
ITRB
Independent Tailings Review Board.
IWL
Integrated waste landform. A simple definition is a tailings storage facility that is located inside waste
rock storage.
JSA
Job Safety Analysis.
JHA
Job Hazard Analysis.
kL
Kilolitre. Measurement equivalent to 1,000 litres.
kt
Kilotonne. Measurement equivalent to 1,000 tonnes.
LCF
Lake Cowal Foundation. A not-for-profit Environmental Trust established in June 2000 to protect
and enhance Lake Cowal, a nationally significant wetland located 45km north of West Wyalong,
New South Wales.
LCCC
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.
LGBTQ2S+
community
Loosely defined grouping of people who identify as Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, Two-Spirit and other minorities.
125 | Evolution Mining Annual Report 2024
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Annual Report
Sustainability Report
Financial Report
LGC
Large-Scale Generation Certificates.
LOD
Line of Defence. Refers to the levels of assurance wherein LOD1 involves the Internal Audit Program, LOD2 involves the Management System
and Standards Audit, and LOD3 involves external assurance.
LOM
Life of Mine.
M
Million. Number equivalent to the product of one thousand times one thousand.
MAW
Mine affected water. Water that interacts with our infrastructure and is managed on site.
MillROC
Milling Remote Optimisation Consulting and Coaching. Software produced by Orway IQ which is a cloud-based reporting of all plant data
related to circuit performance and optimisation.
ML
Megalitre. Measurement equivalent to one million litres.
MSA
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.
MPCDB
Mt Perry Community Development Board. This exists to promote and support all forms of community and economic development within the
town of Mt Perry and surrounding areas.
MSCI
Morgan Stanley Capital International - an investment research firm.
NGER
National Greenhouse and Energy Reporting. A national framework for reporting and disseminating company information and greenhouse gas
emissions, energy production and energy consumption.
NIST
National Institute of Standards and Technology. Founded in 1901, NIST is one of United States’ oldest physical science laboratories; they
released a cyber security framework that integrates industry standards and best practices to help organizations manage their cyber security
risks.
NIER
Northern Industrial Electricity Rate Program. Assists Northern Ontario’s largest industrial electricity consumers to reduce energy costs,
sustain jobs and maintain global competitiveness.
NGFS
Network for Greening the Financial System.
NGOs
Non-governmental organisation. A non-profit, citizen-based group that functions independently
of government.
NMD
Neutral mine drainage. In some instances, the acidity produced by sulphide oxidation can be neutralised in the presence of carbonate
minerals.
NPI
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
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.
PPA
Power Purchase Agreement.
PPC
Personal protective clothing.
PPE
Personal protective equipment. Anything used or worn on our employees to minimise risk to their health and safety.
RAM
Risk Assessment Matrix.
RCP
Representative Concentration Pathways.
S&P Global
Company that provides data, research, news and analytics to customers including institutional investors and corporations.
SA
Sustainability Advantage. NSW Government program encouraging and accelerating the sustainability of medium to large businesses.
SAQ
Supplier Assessment Questionnaire.
Scope 1
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.
Scope 2
Category of greenhouse gas emissions. Scope 2 refers to emissions released to the atmosphere from the indirect consumption of an energy
commodity.
SFAIRP
So Far as is Reasonably Practicable.
SD
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.
SRMs
Supplier relationship meetings.
SSP
Shared Socioeconomic Pathway.
STIP
Short term incentive plan.
SVP
Shared Value Projects. Future-focused legacy projects that deliver community and/or environmental outcomes locally, regionally and nationally.
t
tonnes.
TARP
Trigger Action Response Plan. Consists of a set of documented and known workplace hazards that need to be continuously checked for.
TCFD
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.
TNFD
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.
TRIF
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.
TSF
Tailings storage facility. A reservoir or dynamic structure designed to safely store left over materials from the processing of mined ore.
UNGC
United Nations Global Compact. It is a non-binding United Nations pact to get businesses and firms worldwide to adopt sustainable and
socially responsible policies, and to report on their implementation.
UNGP
United Nations Guiding Principles on Business and Human Rights. They are a set of guidelines for States and companies to prevent, address
and remedy human rights abuses committed in business operations.
UNSDGs
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.
WCC
Wiradjuri Condobolin Corporation, a First Nation partner at our Cowal Gold Operations.
Evolution Mining Annual Report 2024 | 126
Annual Report
Sustainability Report
Financial Report
Our approach to Sustainability
Making Evolution a career highlight
Governance and Assurance
Trusted partner in our communities
Safe and engaged workforce
Responsible environmental stewardship
Financial
Report
127 | Evolution Mining Annual Report 2024
Appendix 4E
129
Directors’ Report
130
Auditor’s Independent Declaration
168
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
169
Consolidated Balance Sheet
170
Consolidated Statement of Changes in Equity
171
Consolidated Statement of Cash Flows
172
Notes to the Consolidated Financial Statements
173
Consolidated Entity Disclosure Statement
218
Directors’ Declaration
219
Independent auditor’s report
220
Shareholder information
226
Corporate information
228
Contents
Evolution Mining Annual Report 2024 | 128
APPENDIX 4E
EVOLUTION MINING LIMITED ABN 74 084 669 036
AND
CONTROLLED ENTITIES ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2024
Results for Announcement to the Market
Key Information
30 June 2024
30 June 2023
Up / (down)
% Increase/
$'000
$'000
$'000
(decrease)
Revenues from contracts with customers
3,215,832
2,226,931
988,901
44 %
Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA)
1,428,335
839,360
588,975
70 %
Statutory profit before income tax
619,792
233,802
385,990
165 %
Profit from ordinary activities after income tax attributable to the
members
422,269
163,508
258,761
158 %
Dividend Information
Amount per
share
Cents
Franked
amount per
share
Cents
Final dividend for the year ended 30 June 2024
Dividend to be paid on 4 October 2024
5.0
5.0
Interim dividend for the year ended 30 June 2024
Dividend fully paid on 5 April 2024
2.0
2.0
Final dividend for the year ended 30 June 2023
Dividend fully paid on 6 October 2023
2.0
2.0
Net Tangible Assets
30 June 2024
30 June 2023
$
$
Net tangible assets per share
2.35
2.11
Earnings Per Share
30 June 2024
30 June 2023
Cents
Cents
Basic earnings per share
22.02
8.91
Diluted earnings per share
21.95
8.89
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 2024
129 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
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 2024.
Directors
The Directors of the Group during the year ended 30 June 2024 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
Managing Director and Chief Executive Officer
Peter Smith (i)
Lead Independent Director
James (Jim) Askew
Non-Executive Director
Jason Attew (ii)
Non-Executive Director
Victoria Binns
Non-Executive Director
Andrea Hall
Non-Executive Director
Fiona Hick (iii)
Non-Executive Director
Thomas McKeith
Non-Executive Director
(i) Appointed Lead Independent Director effective 1 April 2024
(ii) Ceased to be Lead Independent Director effective 31 March 2024
(iii) Appointed as a Non-Executive Director effective 1 July 2024
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 2024 include:
•
The Group achieved record statutory net profit after tax of $422.3 million for the year, a 158% improvement on 30 June 2023 ($163.5
million)
•
Gearing improved to 25% from 33% after payment of $76.4 million in dividends while liquidity improved by $412.2 million to $928.3 million,
driven by strong cash generation
•
Underlying EBITDA was a record and increased 67% from $903.8 million to $1,513.4 million, driven by higher gold and copper production
and prices
•
Material improvement in earnings per share from 8.91 cents to a record 22.02 cents
•
Northparkes, acquired in December 2023, contributed strongly to cash flow and profitability
•
A final, fully franked FY24 dividend of 5.0 cents per share ($99.3 million), which is Evolution's 23rd consecutive dividend and more than
double the FY23 final dividend
•
Investment grade credit rating reaffirmed in July 2024 as part of annual review process
Portfolio
•
Evolution is a leading, low-cost Australian gold mining company operating six mines - Cowal in New South Wales, Ernest Henry and Mt
Rawdon in Queensland, Mungari in Western Australia, Red Lake in Ontario, Canada, and Northparkes in New South Wales.
•
Evolution acquired an 80% interest in the Northparkes copper-gold mine from CMOC Group Limited ('CMOC') in December 2023. The
acquisition successfully completed on 15 December 2023. Total cash consideration of up to US$475 million comprised an upfront cash
payment of US$400 million and contingent consideration of up to US$75 million. Sumitomo Metal Mining and Sumitomo Corporation (and
affiliates) retained their 20% interest in the Northparkes joint venture.
Evolution Mining Limited
Directors' Report
30 June 2024
Evolution Mining Annual Report 2024 | 130
Annual Report
Sustainability Report
Financial Report
Key highlights for the year (continued)
Portfolio (continued)
•
The acquisition was funded via a $525.0 million institutional placement completed in December 2023 and establishment of a new $200.0
million 5-year Term Debt Facility. The share purchase plan to support integration costs related to the transaction raised $32.0 million.
•
Organic growth studies at Evolution's operations continued to advance during the year with exciting drill results at Ernest Henry, Cowal and
Mungari. During the year Evolution also entered into earn-in agreements over two prospective early-stage exploration projects - Cloncurry
North within 20km of Ernest Henry in North Queensland and October Gold, ~105km south-west of Timmins, Ontario in the Abitibi Greenstone
Belt.
•
Mining activity at Mt Rawdon is expected to cease during the first half of FY25 and transition to stockpile processing for the remainder of the
year. The Feasibility Study for the 1–2GW Mt Rawdon Pumped Hydro (MRPH) project is progressing well and remains on track.
Sustainability Overview
•
Sustainability has been at the core of Evolution since inception and is integrated into every aspect of the business. This captures health, safety,
risk, environment, human rights, First Nations and broader community engagement to ensure we operate in a socially and environmentally
responsible way. Evolution's commitment to improved performance was demonstrated with the delivery of on or better than target performance
across all sustainability targets and an enhancement of our material risk management.
•
The Managing Director and Chief Executive Officer reports to the Board on all significant Sustainability incidents. The Board has a Risk and
Sustainability Committee which oversees the sustainability performance of the Group and meets at least three times per year. The Directors
are not aware of any Sustainability incidents occurring during the year ended 30 June 2024, which would have a materially adverse impact on
the overall business of the Group.
•
Overall health and safety improved against FY23’s baseline. The Total Recordable Injury Frequency (TRIF) reduced by ~13% to 7.7 as at 30
June 2024 (adjusted to include Northparkes 12mma). This was supported with other leading metrics that included all material and critical
actions beings closed.
•
The 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 has progressed. Since the commitment, there has been a year-on-year reduction in net use of energy and emissions
for our operational sites, including Northparkes. The reduction in our emissions is estimated to be ~14.3%1 against the FY20 baseline.
This was largely achieved through the Cowal Operation’s Power Purchase Agreement sourced from a solar farm in NSW and ongoing
efficiency in consumption.
•
The Group continues to be recognised for its Sustainability performance, achieving sector leading ratings in Sustainalytics, ISS ESG and MSCI
ESG Ratings assessments and is recognised in the Dow Jones Sustainability Index Australia. We continue to enhance external stakeholder
engagement as evidenced by the ‘High Approval’ Social Licence to Operate score achieved in the FY24 Independent Stakeholder Perception
Survey. Stakeholder engagement and system development have been strengthened to enable improvement in outcomes in local procurement
for our local communities and First Nation Partners.
Financial results
•
Basic earnings per share was a record 22.02 cents per share (30 June 2023: 8.91 cents)
•
Fully franked dividends of $76.5 million (30 June 2023: $91.7 million) were paid during the year
•
The Directors declared a final fully franked dividend of 5.0 cents per share, which is the 23rd consecutive dividend (30 June 2023: 2.0 cents).
The aggregate amount of the final dividend to be paid on 4 October 2024 is estimated at $99.3 million
•
The cash balance at 30 June 2024 was $403.3 million (30 June 2023: $46.1 million) and deleveraging of the balance sheet progressed well,
with gearing improving to 25% at 30 June 2024 (30 June 2023: 33%)
•
The Revolving Credit Facility ("Facility A") was fully repaid during the year totalling $55.0 million
Evolution Mining Limited
Directors' Report
30 June 2024
1 This is against the adjusted FY20 baseline subject to external validation and full dataset for FY24 delivered in September 2024.
131 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Key highlights for the year (continued)
Operating and Financial Review
Profit Overview
The Group achieved a 158% increase in statutory net profit after tax achieving a record $422.3 million for the year ended 30 June 2024 (30 June
2023: $163.5 million). The underlying net profit after tax was also a record at $481.8 million for the year (30 June 2023: $205.0 million).The following
graph reflects the movements in the Group's profit after tax for the year ended 30 June 2024 compared to the year ended 30 June 2023.
Evolution Mining Limited
Directors' Report
30 June 2024
An increase in gold sales of 8%, excluding Northparkes, and a higher achieved price ($3,190/oz vs $2,592/oz) resulted in strong gold revenue
growth. This included 20,000 hedged ounces sold at $3,085/oz (30 June 2023: 140,000 hedged at $2,078/oz). An increase in Ernest Henry copper
production following its full recovery from the FY23 weather event, as well as an increase in the achieved copper price from $12,500/t to $13,657/t
resulted in by-product revenue growing strongly.
Northparkes made a strong contribution to profit for the six months under Evolution ownership after settling its commitments under streaming
arrangement. Operating cost for the Cowal underground mine from 1 April 2024, when it reached commercial production, added $42.4 million to
operating cost. Operating costs before depreciation increased by $73.8 million, driven by increases in labour cost which comprises half of our cost
base, as well as higher maintenance consumable cost and royalties on higher revenues. Non-cash inventory cost mainly related to the sell-down of
concentrate at Red Lake.
Stamp duty and acquisition costs of $89.1 million include $78.6 million attributable to the Northparkes acquisition. Depreciation increased as Mt.
Rawdon approaches the end of its mine life.
The tax expense for the period ended 30 June 2024 was $197.5 million, $127.2 million higher than the comparative period driven by higher profit.
Interest paid of $21 million is attributable to the unwinding of the Triple Flag stream obligation (Note 22) which did not exist in the prior year.
Statutory
Profit
After Tax
June 2023
163.5
588.7
112.2
288.0
153.9
48.1
42.4
33.1
89.1
73.8
58.1
231.5
422.3
59.5
481.8
205.0
Gold
Revenue
By-Product
Revenue
(ex.
Northparkes)
Northparkes
Revenue
Northparkes
Operating
& Stream
Costs
Net Profit After Tax (A$M)
Operating
Costs Inc.
Cowal UG
Inventory
Movements
Stamp
Duty/ M&A
Costs
Stream Costs
NPO
Cowal UG
Tax,
Depreciation,
Interest
& Other
Statutory
Profit After
Tax June
2024
Net
Adjustments
After Tax
Underlying
Profit After
Tax June
2024
Underlying
Profit After
Tax June
2023
Evolution Mining Annual Report 2024 | 132
Annual Report
Sustainability Report
Financial Report
Key highlights for the year (continued)
Profit Overview (Continued)
The table below shows the reconciliation between the Statutory and Underlying profit.
30 June 2024
30 June 2023
$000
$000
Statutory profit before income tax
619,792
233,802
Transaction, integration and restructuring costs (including stamp duty)
94,238
5,153
Navarre Contingent Consideration Write Off
—
13,797
Non-operational (income)/ costs net of insurance proceeds
(9,212)
40,331
Underlying profit before income tax
704,818
293,083
Income tax expense
(197,523)
(70,294)
Tax effect of adjustments
(25,508)
(17,784)
Underlying profit after income tax
481,787
205,005
Cash Flow
Operating mine cash flow increased by 63% to $1,541.2 million (30 June 2023: $944.1 million). Mine cash flow before major capital investment was
$1,332.2 million (30 June 2023: $746.0 million). Total capital investment was 7% lower at $739.6 million (30 June 2023: $798.0 million) which
included $209.0 million (30 June 2023: $198.0 million) of sustaining capital investment and $530.6 million (30 June 2023: $600.0 million) of major
capital investment. The major capital investment related predominantly to the Mungari 4.2 project, mine development at Red Lake, the underground
mine development at Cowal and underground infrastructure associated with the planned mine life extension at Ernest Henry.
Evolution Mining Limited
Directors' Report
30 June 2024
133 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Key highlights for the year (continued)
Key Results
The consolidated operating and financial results for the current and prior year are summarised below. All dollar figures refer to Australian thousand
dollars ($'000) unless otherwise stated.
Key Business Metrics
30 June 2024
30 June 2023
% Change (ii)
Gold production (oz)
716,700
651,155
10 %
Silver production (oz)
773,775
555,620
39 %
Copper production (t)
67,862
47,348
43 %
Cash (C1) operating cost ($/oz) (i)
837
937
11 %
All in sustaining cost ($/oz) (i)
1,477
1,450
(2) %
All in cost ($/oz) (i)
2,304
2,420
5 %
Gold price achieved ($/oz)
3,190
2,592
23 %
Silver price achieved ($/oz)
40
32
25 %
Copper price achieved ($/t)
13,657
12,500
9 %
Total Revenue
3,215,832
2,226,931
44 %
Cost of sales (excluding D&A)
(1,627,497)
(1,277,655)
(27) %
Corporate, admin, exploration and other costs (excluding D&A)
(52,210)
(44,187)
(18) %
Underlying EBIT (i) ($'000)
848,345
378,092
124 %
Underlying EBITDA (i) ($'000)
1,513,361
903,794
67 %
Underlying EBITDA (%) (i) ($'000)
47%
38%
24 %
Statutory profit after income tax ($'000)
422,269
163,508
158 %
Underlying profit after income tax ($'000)
481,787
205,005
135 %
Operating mine cash flow ($'000)
1,541,167
944,050
63 %
Sustaining Capital ($'000)
(209,006)
(198,049)
(6) %
Mine cash flow before major capital ($'000)
1,332,161
746,001
79 %
Major Capital ($'000)
(530,581)
(599,963)
12 %
Non-Operational Cash Costs ($'000)
(218,445)
(110,318)
(98) %
Net mine cash flow ($'000)
583,135
35,720
1533 %
(i)
EBITDA, EBIT, Unit cash operating cost, All-in Sustaining Cost (AISC), and All-in Cost (AIC) are non-IFRS financial information and are not subject to audit.
EBITDA is reconciled to statutory profit in note 1(c) to the financial statements
(ii)
Percentage change represents positive/(negative) impact on the business
Evolution Mining Limited
Directors' Report
30 June 2024
Evolution Mining Annual Report 2024 | 134
Annual Report
Sustainability Report
Financial Report
Mining Operations
Cowal
Key Business Metrics
30 June 2024
30 June 2023
Change
Operating cash flow ($'000)
604,887
368,776
236,111
Sustaining capital ($'000)
(38,581)
(29,780)
(8,801)
Net mine cash flow before major capital ($'000)
566,306
338,996
227,310
Major capital ($'000)
(107,951)
(294,849)
186,898
Non-Operational Costs ($'000)
(164,011)
(37,773)
(126,238)
Net mine cash flow ($'000)
294,344
6,374
287,970
Gold production (oz)
312,644
276,314
36,330
All-in Sustaining Cost ($/oz)
1,338
1,138
(200)
All-in Cost ($/oz)
1,742
2,206
464
Reflecting the quality of the Cowal operation, it has repaid all acquisition costs and subsequent capital and still has at least 16 years of mine life
remaining. Cowal achieved record annual gold production under Evolution ownership in FY24, producing 312,644oz at an AISC of $1,338/oz,
notwithstanding wet weather in the second half of the year restricting access to open pit operations at certain times.
Cash generation of $604.9 million was a record under Evolution ownership and improved each quarter throughout the year. Net mine cash flow was
$294.3 million after sustaining capital of $38.6 million, major capital of $108.0 million and non-operational costs (pre-production) costs of $164.0
million, related to the establishment and ramp-up of the underground mine.
The underground mine reached commercial production in April and achieved 1.9 million tonnes annualised in the June quarter, positioning the mine
to ramp up to 2 million tonnes in FY25.
Capital investment for the year consisted primarily of underground mine development, integrated waste landform construction, surface infrastructure
construction and resource definition drilling.
The feasibility study for the Open Pit Continuation Project (OPC) is tracking to plan and the regulatory approval process is progressing well.
Ernest Henry
Key Business Metrics
30 June 2024
30 June 2023
Change
Operating cash flow ($'000)
481,861
397,659
84,202
Sustaining capital ($'000)
(49,473)
(66,570)
17,097
Net mine cash flow before major capital ($'000)
432,388
331,089
101,299
Major capital ($'000)
(107,538)
(44,504)
(63,034)
Non-Operational Costs ($'000)
9,212
(71,693)
80,905
Net mine cash flow ($'000)
334,062
214,892
119,170
Gold production (oz)
78,763
64,725
14,038
Copper production (t)
52,057
47,348
4,709
All-in Sustaining Cost ($/oz)
(2,124)
(2,334)
(210)
All-in Cost ($/oz)
(758)
(1,637)
(879)
Ernest Henry achieved a major milestone of repaying all acquisition and subsequent capital during the second half of the year.
Consistent and reliable delivery saw Ernest Henry produce 78,763oz of gold and 52,057t of copper at an AISC of negative $2,124/oz during FY24.
The site continues to deliver outstanding cash generation, achieving operating mine cash flow for the year of $481.9 million. Net mine cash flow was
$334.1 million, after sustaining capital of $49.5 million, major capital of $107.5 million and non-operational costs related to rehabilitation of damage
caused by the FY23 weather event that was more than offset by preliminary insurance recoveries of $28.6 million.
Major capital of $107.5 million comprised infrastructure for primary mine ventilation associated with the planned mine life extension, tailings dam
storage facility construction and buttressing and mine development. Sustaining capital of $49.5 million included mobile equipment, fixed plant
maintenance, loader automation and mine development.
The feasibility for the mine extension is on track for completion in FY25 and favourable drilling results continues to underpin the business case for
extension.
Evolution Mining Limited
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135 | Evolution Mining Annual Report 2024
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Financial Report
Mining Operations (continued)
Northparkes
Key Business Metrics
30 June 2024
Operating cash flow ($'000)
152,282
Sustaining capital ($'000)
(18,609)
Net mine cash flow before major capital ($'000)
133,673
Major capital ($'000)
(11,451)
Stream commitment obligation ($'000)
(47,981)
Net mine cash flow ($'000)
74,241
Gold production (oz)
20,284
Copper production (t)
15,805
All-in Sustaining Cost ($/oz)
(2,726)
All-in Cost ($/oz)
(1,912)
Northparkes produced 20,284oz of gold and 15,805t of copper in the first 6½ months since acquisition at an AISC of negative $2,726/oz. Total ore
mined was 3,203kt, notwithstanding planned maintenance of the hoisting system and concurrent surface works completed in April. Copper grade
processed was 0.65% and the processing plant copper recovery was 85.7%. Gold grade processed was 0.30g/t with gold recovery of 72.6%.
Operating cash flow of $152.3 million and net mine cash flow of $74.2 million was achieved for the period, after delivering on stream obligations to
Triple Flag. Stream commitment obligation represents lost revenue associated with the servicing of the Triple Flag stream and constitutes Triple
Flag's entitlement of gold and silver production at average spot prices.
Major capital expenditure for the period was $11.5 million, comprised of E26 L1N Automation, the E22 Feasibility Study, lower shaft steelwork and
infill extension tailings storage facility construction. Sustaining capital was $18.6 million, including processing plant maintenance and mobile
equipment and light vehicle purchases.
The Board approved the Northparkes E48 sub level cave to progress to Pre-Feasibility Study (PFS) stage in June 2024, which is expected to provide
low capital intensity production in the coming years. Completion of the PFS is expected by the end of the March quarter 2025.
Red Lake
Key Business Metrics
30 June 2024
30 June 2023
Change
Operating cash flow ($'000)
98,858
41,599
57,259
Sustaining capital ($'000)
(40,146)
(61,207)
21,061
Net mine cash flow before major capital ($'000)
58,712
(19,608)
78,320
Major capital ($'000)
(167,989)
(189,095)
21,106
Non-Operational Costs ($'000)
(5,898)
(1,827)
(4,071)
Net mine cash flow ($'000)
(115,175)
(210,530)
95,355
Gold production (oz)
112,700
120,840
(8,140)
All-in Sustaining Cost ($/oz)
2,802
2,620
(182)
All-in Cost ($/oz)
4,255
4,374
119
Red Lake produced 112,700oz of gold at an AISC of $2,802/oz.
Ongoing cost discipline resulted in operating cash flow for the year of $98.9 million. Net mine cash flow was negative $115.2 million after investing
$40.1 million in Sustaining capital, $168.0 million in major capital.
Improved operational performance in the second half led to Red Lake achieving the highest quarterly ore mined under Evolution ownership at 254kt
in the June quarter. The operation established a 25kt surface ore stockpile in the June quarter, as well as a small underground stockpile following the
resolution of disruptions to the material handling systems, strengthening the site's operational resilience moving into FY25.
Major capital spend for the year of $168 million consisted primarily of mine development, tailings infrastructure and upper CYD development, while
sustaining capital of $40 million included resource definition drilling and raiseboring for ore and ventilation passes.
Evolution Mining Limited
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Mining Operations (continued)
Mungari
Key Business Metrics
30 June 2024
30 June 2023
Change
Operating cash flow ($'000)
122,875
107,885
14,990
Sustaining capital ($'000)
(56,398)
(34,198)
(22,200)
Net mine cash flow before major capital ($'000)
66,477
73,687
(7,210)
Major capital ($'000)
(135,369)
(58,121)
(77,248)
Net mine cash flow ($'000)
(68,892)
15,566
(84,458)
Gold production (oz)
123,673
135,592
(11,919)
All-in Sustaining Cost ($/oz)
2,536
2,083
(453)
All-in Cost ($/oz)
3,768
2,573
(1,195)
Mungari produced 123,673oz of gold in FY24 at an AISC of $2,536/oz.
Operating cash flow improved year on year at $122.9 million, whilst net mine cash flow was negative $68.9 million.
Major capital spend for the year of $135.4 million comprised the mill expansion project (Mungari 4.2), mine development, Castle Hill accommodation
camp, Kundana paste plant and underground fleet. Sustaining capital of $56.4 million included underground mine development and resource
definition drilling.
Mungari 4.2 is progressing on schedule and to budget.
Mt Rawdon
Key Business Metrics
30 June 2024
30 June 2023
Change
Operating cash flow ($'000)
77,899
28,128
49,771
Sustaining capital ($'000)
(3,241)
(5,094)
1,853
Net mine cash flow before major capital ($'000)
74,658
23,034
51,624
Major capital ($'000)
(174)
(13,394)
13,220
Restructuring Costs ($'000)
(9,766)
(224)
(9,542)
Net mine cash flow ($'000)
64,718
9,416
55,302
Gold production (oz)
68,635
53,685
14,950
All-in Sustaining Cost ($/oz)
2,165
2,409
244
All-in Cost ($/oz)
2,168
2,649
481
Mt Rawdon produced 68,635oz of gold at an AISC of $2,165/oz for the year, notwithstanding wet weather restricting access to open pit operations at
times in the second half of the year.
Operating cash flow of $77.9 million and net mine cash flow of $64.7 million was achieved for the year, after sustaining capital of $3.2 million
primarily related to the tailings storage facility dam wall lift.
During the June quarter, Mt Rawdon transitioned from a 24 hour mining operation to day shift mining in preparation for the upcoming cessation of
mining in the first half of FY25. Once mining from the pit is completed, processing will continue until stockpiles are exhausted by the end of FY25.
The Mt Rawdon Pumped Hydro ("MRPH") project reached an important milestone in May 2024 with the submission of the Environmental Impact
Statement (EIS) to the Queensland Co-ordinator General’s office for assessment. The EIS for the project is a comprehensive study that
demonstrates a unique and low impact pathway to convert Mt Rawdon from a gold mine nearing the end of its mine life to a large-scale, long life
renewable energy generation and storage asset. The feasibility study for the project remains on track.
Evolution Mining Limited
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30 June 2024
137 | Evolution Mining Annual Report 2024
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Financial Report
Financial Performance
Profit or Loss
Revenue for the year ended 30 June 2024 increased by 44% to $3,215.8 million (30 June 2023: $2,226.9 million). This was driven by a combination
of higher achieved gold price of $3,190/oz (30 June 2023: $2,592/oz) as well as an increase in sold ounces for the year to 718,224oz (30 June 2023:
647,999oz). Revenue comprised of $2,325.4 million of gold, $942.6 million of copper and $36.0 million of silver revenue (30 June 2023: $1,679.7
million of gold, $588.1 million of copper and $18.1 million of silver revenue). The uplift in copper revenue was driven by an uplift in copper production
attributable to the acquisition of Northparkes, Ernest Henry's full recovery from the weather event in FY23 and higher prices.
Total gold sales included deliveries of 20,000 ounces into the Australian hedge book at an average price of $3,085/oz (30 June 2023: 100,000
ounces, $1,908/oz) and 118,924 ounces of gold in concentrate at an average price of $3,192/oz. The remaining 579,300 ounces were sold at spot
comprising 479,500 ounces delivered at an average price of $3,188/oz (30 June 2023: 436,290 oz, $2,738/oz) and 99,800 ounces delivered at an
average price of C$2,841/oz (30 June 2023: 71,709 ounces, $2,439/oz). At 30 June 2024 the Group's gold delivery commitments totalled 100,000
ounces at an average price of $3,205/oz for the Australian operations with quarterly deliveries through to June 2026, to cover the cash flow of the
Mungari 4.2 project. The Group also delivered 12,388 ounces of gold and 159,441 ounces of silver to Triple Flag under the steaming arrangement
acquired at Northparkes (Note 22).
Cost of sales increased to $2,292.6 million (30 June 2023: $1,797.9 million) predominantly driven by six months of ownership of Northparkes in FY24
which accounted for $153.9 million. Operating costs attributable to the Cowal underground mine had a $42.4 million impact on operating costs
following successfully reached commercial production in April 2024. Cost of sales at operations excluding Northparkes before depreciation increased
by $107.0 million, driven by increases in labour cost which comprises half of our cost base as well as higher maintenance consumable cost and
royalties on higher revenues and inventory movements. Depreciation and amortisation increased to $665.1 million (30 June 2023: $522.8 million)
driven by six months of ownership of Northparkes combined with accelerated depreciation at Mt Rawdon as it approaches the end of its life.
The Group achieved record statutory net profit after tax of $422.3 million for the year ended 30 June 2024 (30 June 2023: $163.5 million). Underlying
net profit after tax was also a record at $481.8 million (30 June 2023: $205.0million)
Balance Sheet
Total assets increased 31% during the year to $8,818.8 million (30 June 2023: $6,752.4 million). Cash and cash equivalents increased by $357.2
million driven mainly by net mine cash flow of $583.2 million net of $76.4 million dividend payments and $74.2 million interest and borrowing costs
payments .
The net carrying amount of property, plant and equipment increased by $569.6 million driven by additions of $495.3m which includes $123.8 million
of additions at Ernest Henry and $118.7 million of additions at Cowal, $107.4 million of additions at Red Lake and $101.4 million of additions at
Mungari offset by depreciation and amortisation of $122.6 million. Mine property increased by $790.9 million, which was primarily driven by the
acquisition of Northparkes mine property of $684.9 million combined with additions of $426.0 million offset by amortisation of $470.5 million in the
year to 30 June 2024.
Total liabilities for the Group of $4,676.6 million at 30 June 2024, increased by $1,219.1 million, or 35.3% on the prior period. The key drivers consist
of the recognition of the $600.0 million deferred revenue liability associated with the Triple Flag stream arrangement at Northparkes (carrying value of
$565.2 million at 30 June 2024 following discounting and unwind). Interest bearing liabilities net of capitalised borrowing costs increased to $1,923.6
million (30 June 2023: $1,763.4 million) driven by the execution of a new $200 million Term Loan Facility, (“Facility G”) to partially fund the acquisition
of Northparkes. Total provisions increased by $63.3 million to $609.8 million (30 June 2023: $546.5 million) associated with the recognition of the
Northparkes rehabilitation provision. Trade and other payables increased by $131.0 million and tax liabilities increased by $142.6 million to $127.1
million (30 June 2023: current tax receivable of $15.5 million).
Evolution Mining Limited
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30 June 2024
Evolution Mining Annual Report 2024 | 138
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Financial Performance (continued)
Cash Flow
Total cash inflows for the year amounted to $360.2 million (30 June 2023: $523.0 million outflow).
30 June 2024
30 June 2023
Change
$'000
$'000
$'000
Cash flows from operating activities
1,281,431
735,280
546,151
Cash flows from investing activities
(1,507,877)
(1,031,978)
(475,899)
Cash flows from financing activities
586,646
(226,282)
812,928
Net movement in cash
360,200
(522,980)
883,180
Cash at the beginning of the year
46,146
572,427
(526,281)
Effects of exchange rate changes on cash and cash equivalents
(3,043)
(3,301)
258
Cash at the end of the year
403,303
46,146
357,157
Net cash outflows from investing activities were $1,507.9 million, an increase of $475.9 million from the prior period (30 June 2023: $1,032.0 million
outflow). The increase was driven by net cash outflows of $553.8 million attributable to the acquisition of the Northparkes asset during the year and
stamp duty paid of $50.9 million.
Net cash inflows from financing activities were $586.6 million, an increase of $812.9 million from the prior year (30 June 2023: $226.3 million
outflow). Financing cash inflows during the year mainly consisted of net proceeds of $546.5 million from the issue of shares to fund the Northparkes
transaction. Inflows from borrowings included drawdown of a new $300.0 million 5-year Term Debt Facility ("Facility F"), drawdown of a new $200.0
million Term Debt Facility ("Facility G") to fund the Northparkes transaction and drawdown of $305.8 million of USPP. These were offset by net
repayments of $645.0 million comprised of $55.0 million on the Revolving Credit Facility (”Facility A”), $250.0 million to settle the Term Loan Facility
(”Facility B”) and $340.0 million to settle the Term Loan Facility (”Facility E") . Dividends paid during the year totalled $76.5 million.
Financing
Total finance costs for the year were $148.5 million (30 June 2023: $90.7 million). Included in total finance costs are interest expenses of $98.4
million (30 June 2023: $75.0 million), amortisation of debt establishment costs of $3.9 million (30 June 2023: $3.1 million), discount unwinding on
mine rehabilitation liabilities of $18.7 million (30 June 2023: $10.3 million), interest unwinding on the Triple Flag stream liability of $20.9 million and
interest expense on lease liability unwinding of $6.4 million (30 June 2023: $2.4 million).
The increase in interest expense is the result of higher average interest bearing liabilities over the year, with the execution of a new $200 million 5-
year Term Debt Facility during the year in relation to the acquisition of Northparkes. Evolution's weighted average borrowing cost remains low at
5.04% which is at fixed rates except for the term loans and revolving credit facility, which is undrawn. The maturity dates and the outstanding
balances on each debt facility as at 30 June 2024 are set out below:
Facility Name
Term Date
Facility Size
$m
Amount Drawn
$m
Available Amount
$m
Loan facilities and US Private Placements
Revolving Credit Facility – Facility A - $m
12 Oct 2025
$525.0
$0.0
$525.0
Term Loan – Facility F - $m
22 Aug 2027
$300.0
$300.0
$0.0
Term Loan – Facility G - $m
15 Dec 2028
$200.0
$200.0
$0.0
US Private Placement - USD $m
8 Nov 2028
$200.0
$200.0
$0.0
US Private Placement - USD $m
14 Feb 2031
$200.0
$200.0
$0.0
US Private Placement - USD $m
8 Nov 2031
$350.0
$350.0
$0.0
US Private Placement - USD $m
22 Aug 2033
$100.0
$100.0
$0.0
US Private Placement - USD $m
22 Aug 2035
$100.0
$100.0
$0.0
Performance bond and guarantee facilities
Performance Bond – Facility C $m2
30 Nov 2024
$220.0
$213.0
$7.0
Performance Bond – Facility D CAD $m
31 Mar 2027
$150.0
$66.9
$83.1
ANZ Bank Guarantee Facility - $m
31 May 2025
$5.0
$4.4
$0.6
Evolution Mining Limited
Directors' Report
30 June 2024
2 Subsequent to 30 June 2024 Facility C has been renegotiated to increase facility size to $340.0 million with a term date of 31 July 2028.
139 | Evolution Mining Annual Report 2024
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Sustainability Report
Financial Report
Material risks
The Group manages material risks and other day-to-day risks through an established management framework aligned with the intent of 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. The Board, Risk and Sustainability Committee, Executive
Leadership Team, Site Leadership Teams, and Risk Owners, regularly review the risk portfolio of the business and the effectiveness of the Group’s
management of those risks.
The financial and operational reporting and control mechanisms are reviewed during the year by management, the internal audit process, external
auditors and the relevant Board committees including the Audit Committee and the Risk and Sustainability Committee.
The Group has policies and supporting standards to manage operational, business and sustainability-related risks including Health, Safety,
Environment, Cultural Heritage, Human Rights, Social Responsibility, Strategic Planning, Communication, Respect@Work and Equal Employment
Opportunity.
Business plans are prepared 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 2024 are noted
below.
Fluctuations in the metal prices and currencies
The Group’s revenues are exposed to fluctuations in the gold, silver and copper prices. Volatility in the gold, silver and copper prices creates revenue
uncertainty and requires careful management of business performance to ensure that operating cash margins are maintained should the Australian
dollar price fall. Currency and commodity markets are linked, resulting in the potential for currency movements to be offset by movements in metal
prices and commodity cost inputs.
Declining gold, silver and copper prices can also impact operations by requiring a reassessment of the feasibility of a particular exploration or
development project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment could cause
substantial delays and/or may interrupt operations, which may have a material adverse effect on our results of operations and financial condition.
Mineral Resources and Ore Reserves
The Group’s Mineral Resources and Ore Reserves are estimates, and no assurance can be given that the estimated reserves and resources are
accurate or that the indicated level of gold, silver, copper or any other mineral will be produced. Such estimates are, in large part, based on
interpretations of geological data obtained from drill holes and other sampling techniques.
Actual mineralisation or geological conditions may be different from those predicted. No assurance can be given that any part or all of the Group’s
Mineral Resources constitute or will be converted into Ore Reserves.
Market price fluctuations of gold, silver and copper as well as increased production and capital costs may render the Group’s Ore Reserves
unprofitable to develop at a particular site or sites for periods of time or may render Ore Reserves containing relatively lower grade mineralisation
uneconomic. Estimated reserves may have to be re-estimated based on actual production experience. Any of these factors may require the Group to
reduce its Mineral Resources and Ore Reserves, which could have a negative impact on the Group’s financial results.
Evolution Mining Limited
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30 June 2024
Evolution Mining Annual Report 2024 | 140
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Material Risks (continued)
Replacement of Ore Reserves
The Group must continually replace Ore Reserves depleted by production to maintain production levels over the long term. This is reported in
accordance with JORC 2012 guidelines. Ore Reserves can be replaced by expanding known ore bodies, locating new deposits or making
acquisitions. Exploration is highly speculative in nature. The Group’s exploration projects involve many risks and are frequently unsuccessful. Once a
site with mineralisation is discovered, it may take several years from the initial phases of drilling until production is possible.
As a result, there is no assurance that current or future exploration programs will be successful. There is a risk that depletion of Ore Reserves will not
be offset by discoveries or acquisitions or that divestitures of assets will lead to a lower Ore Reserve base. The Mineral Resource base of the Group
may decline if Ore Reserves are mined without adequate replacement and the Group may not be able to sustain production beyond the current mine
lives, based on current production rates.
Mining risks and insurance risks
The mining industry is subject to significant risks and hazards, including environmental hazards, industrial 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, noting the 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.
Regulatory and Transitional risk
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, human rights, cultural heritage, water management, waste disposal, mine development
and rehabilitation, and the protection of endangered and other special status species. The Group’s ability to obtain permits and approvals and to
successfully operate may be adversely impacted by real or perceived 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, environmental, First Nations, cultural heritage, human rights 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 and common law liability.
Representation with peak industry bodies is maintained to ensure there is active engagement and consultation with the relevant regulatory bodies
and systems and processes are in place to understand changes to regulatory obligations. These enable a comprehensive understanding of any
amendments to obligations resulting from legislative environmental changes.
Evolution Mining Limited
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30 June 2024
141 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Material Risks (continued)
Health, Safety, Wellbeing and Environmental performance
The operations of the Group are subject to regulations for work health and safety and environmental management under the relevant state, province
and federal jurisdictions.
In accordance with these legal obligations, the work health and safety and environmental risks are managed through policies, standards and robust
systems and processes identifying risks, potential for harm and implementing and monitoring controls to reduced risk so far as reasonably
practicable. This includes management to the specified operating licence, permit and/or, approvals. This is also supported via a robust assurance
and audit regime supported by a uniform internal reporting system and governance obligations.
The legal obligations that cover each of our sites, combined with our policies and standards, address the potential impact of the Group's activities in
relation to a comprehensive set of risks including worker health, safety and wellbeing, water and air quality, noise, land, flora and fauna, waste,
tailings management, biodiversity and the potential impact upon sensitive receptors.
There are currently two work health and safety enforcement actions underway related to: an event at the Mungari operation where a contract worker
operating their equipment broke their arm when guarding was breached; and an Enforcement Undertaking that has been entered into related to an
event where a worker received burns from a small fire caused by an empty Intermediate bulk container (IBC) at Northparkes. (Note - this event
occurred when the operation was not under Evolution ownership).
There are no other significant enforcement actions underway by a relevant government authority in FY24. This excludes events that remain under
investigation.
Climate Change
The Group acknowledges that climate change is occurring, and its effects have the potential to impact our communities and business, including our
financial position, performance, cash flows, and investment decisions. The most significant climate-related risks include: energy and emissions, water
security, and 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 Due
diligence, Life of Mine strategic planning and decision making. The Group works to assess and 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 verified 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 and Greenhouse Gas Reporting Program) 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 Goals (UNSDG), the Taskforce on Nature-related Financial
Disclosures (TNFD) and is a signatory to the United Nations Global Compact (UNGC). In FY24, the Group commenced extensive reviews and a gap
analysis against the recently introduced International Sustainability Standards Board (ISSB) International Financial Reporting Standards S1 and S2,
and commenced a readiness assessment against the draft mandatory disclosures in the Australian Sustainability Report Standards.
Cultural Heritage, First Nations Partnerships and Community relations
The Group has an established First Nation and 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 investment and engagement and cultural heritage protection and First Nations engagement
across our sites.
Social Performance is about people connecting with people in an impactful way. Maintaining trusted relationships with our First Nations and local
community stakeholders throughout the entire mine lifecycle is an essential part of securing and maintaining our social and regulatory 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, consultation, production and exploration activities.
Evolution Mining Limited
Directors' Report
30 June 2024
Evolution Mining Annual Report 2024 | 142
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Sustainability Report
Financial Report
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 declared a final fully franked dividend for the current period of 5.0 cents per share. The aggregate amount of the final dividend to be paid
on 4 October 2024 is estimated at $99.3 million. Evolution Mining Limited shares will trade excluding entitlement to the dividend on 29 August 2024,
with the record date being 30 August 2024.
The Dividend Reinvestment Plan ("DRP") remains suspended.
Significant changes in the state of affairs
There were no significant changes in the nature of the activities of the Group during the period, other than those included in the Key Highlights.
Further information on likely developments in the operations of the Group and the expected results of operations have not been included in this
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
On 29 July 2024 Ramelius Resources announced that a decision had been made to place Edna May on care and maintenance once processing of
existing stockpiles is completed. Included in the accounts at 30 June 2024 is an $18.2 million contingent consideration asset attributable to the Edna
May Operation (refer to note 18 Other non-current assets). Evolution will assess the future recoverability of the remaining amount in the half-year
financial statements for FY25.
No other 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.
Refer to note 5 - Dividends for the final dividend recommended since the end of the reporting period.
Evolution Mining Limited
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143 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
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, 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 more than A$2 billion. It became an ASX/S&P 100 Company, operating two award-winning gold mines and
engaging more than 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 BBus, CPA, GAICD, Managing Director and Chief Executive Officer
Mr. Conway was appointed Managing Director and Chief Executive Officer on 1 January 2023. His previous position at Evolution was Finance
Director and Chief Financial Officer (1 August 2014) and before that as a Non-Executive Director.
Mr. Conway has more than 34 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 across Australia, Papua New Guinea and Chile with Newcrest Mining and BHP
Billiton.
His position prior to joining Evolution was Executive General Manager – Commercial and West Africa with Newcrest Mining, where he was
responsible for Newcrest’s Group Supply and Logistics, Marketing, Information Technology and Laboratory functions as well as Newcrest’s
business in West Africa. Mr 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. He was appointed Chairman of the Board at Robex Resources in
June 2024. Mr Askew previously served on the Board of Endeavour Mining Corporation.
Mr Askew is a Member of the Risk and Sustainability Committee and Member of the Nomination and Remuneration Committee.
Thomas (Tommy) McKeith, BSc (Hons), GradDip Eng (Mining), MBA, Non-Executive Director
Mr McKeith is a geologist with more than 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 and Avoca
Resources Limited. He is currently the Chairman of Arrow Minerals Limited, Non-Executive Director of Clean Tech Lithium Plc and Non-Executive
Chairman of Ordell Minerals Limited.
Mr McKeith previously served as Non-Executive Chair of Genesis Minerals Limited.
Mr McKeith is Chair of the Nomination and Remuneration Committee.
Andrea Hall, BCom, FCA, M. App Fin, GAICD, Non-Executive Director
Ms Hall is an experienced Non-Executive Director who currently sits on the Board of ASX-listed Perenti Group. She is also the Chair of the Audit
and Risk Committee. Ms Hall is also a Non-Executive Director of Commonwealth Superannuation Corporation and Western Power. Ms Hall has
previously served on the boards of Core Lithium Limited, Pioneer Credit Limited, the Insurance Commission of Western Australia and the Fremantle
Football Club.
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 a Member of the Risk and Sustainability Committee.
Evolution Mining Limited
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Evolution Mining Annual Report 2024 | 144
Annual Report
Sustainability Report
Financial Report
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 and Chief Executive Officer of Osisko
Gold Royalties. Mr Attew previously served as President and CEO of Liberty Gold Corporation, 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 also served 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 has extensive capital markets experience from his time in investment banking with the BMO Global Metals and Mining Group. There
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.
Mr Attew is a Member of the Audit Committee and the Nomination and Remuneration Committee.
Peter Smith, FAusIMM, GAICD, MBA, Non- Executive Director
Mr Smith is a senior executive with more than 46 years’ experience primarily in the resources sector. He has worked in a range of sectors including
gold, coal, metals and fertilisers. Mr Smith 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, Evolution Mining (2011-2013) and VP Minerals Limited, Commissioner of
PT NHM Indonesia and Chairman of Western Metals Limited. Mr Smith joined the Board of Iluka Resources Limited in June 2024.
Mr Smith is Lead Independent Director (effective 1 April 2024) and 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's
roles included Vice President Minerals Marketing, leadership positions in the metals and coal marketing business and Vice President Market
Analysis and Economics. She was also Co-Founder and Chair of Women in Mining and Resources Singapore (WIMARSG).
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 company Sims Limited, 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 New
Zealand. Ms Binns previously served on the Board of Cooper Energy.
Ms Binns is a Member of the Audit Committee.
Fiona Hick
Ms Hick is an executive with 29 years’ experience in the minerals and energy industries, having held senior roles at Rio Tinto, Woodside Energy
and Fortescue Metals Group. During her 22-year career at Woodside, Ms Hick occupied leadership positions in the areas of health,
safety and environment, strategy and planning and engineering. She was the Executive Vice President of Woodside’s Australian Operations and,
more recently, Chief Executive Officer of Fortescue Metals Group. Ms Hick was appointed to the Board of Infrastructure WA, effective from
6 August 2024.
From 2021 to 2023, Ms Hick was the President and Chair of the Advisory Board for the Chamber of Minerals and Energy (WA) and a member of the
University of Western Australia’s Strategic Resources Committee since 2019. She has also been a Non-Executive Director of CO2CRC, as well as a
Member and Chair of the Australian Petroleum Production and Exploration Association (APPEA) Environmental Science Committee. Ms Hick joined
the Board of Incitec Pivot Limited on 1 September 2024.
Ms Hick is a Member of the Risk and Sustainability Committee.
Evolution Mining Limited
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Annual Report
Sustainability Report
Financial Report
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 and with effect from 1 July 2023, his responsibilities have included Communication and
Corporate Affairs. 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, focused 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.
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 2024, and the
numbers of meetings attended by each Director were:
Board
Meetings of committees
Audit
Risk and
Sustainability
Nomination and
Remuneration
A
B
A
B
A
B
A
B
Jacob (Jake) Klein
7
7
-
-
-
-
-
-
Lawrence (Lawrie) Conway
7
7
-
-
-
-
-
-
James (Jim) Askew
7
7
-
-
3
3
3
3
Thomas (Tommy) McKeith
7
7
-
-
-
-
3
3
Andrea Hall
7
7
4
4
3
3
-
-
Jason Attew
7
7
4
4
-
-
3
3
Victoria (Vicky) Binns
7
7
4
4
-
-
-
-
Peter Smith
7
7
-
-
3
3
-
-
A
Number of meetings attended.
B
Number of meetings held during the time the Director held office or was a member of the committee during the year.
Evolution Mining Limited
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Evolution Mining Annual Report 2024 | 146
Annual Report
Sustainability Report
Financial Report
Remuneration Report
Dear Fellow Shareholder,
On behalf of the Evolution Board, I am pleased to provide the Remuneration Report for the year ended 30 June 2024.
The market fundamentals remain strong for gold and copper both in the short and long term and we have a portfolio of assets which will benefit from the
positive outlook for metal prices. Unfortunately, our performance over the last year was not where we wanted it to be, where we did not achieve our
production and cost targets and we recognise this has had an impact on our share price.
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 and the outcomes for FY24.
When we look back at FY24, there have been a number of positive outcomes, including the 15% reduction in our Total Recordable Injury Frequency (TRIF)
rate to 7.69 incidents per million hours worked, while the control of critical and material risks has remained a real positive. The successful acquisition of the
Northparkes operation has contributed $74.2 million in cash flow in its first 6½ months of ownership, we have increased our mineral resources and ore
reserves, and priority projects at Mungari, Ernest Henry, Cowal and Mt Rawdon have all progressed to plan. Pleasingly we finished the year strong with
multiple operational and financial records, delivering $367 million of Group cash flow for the year. Our All-in sustaining cost (AISC) per ounce of $1,477, was
above (less than 5%) our guided range of $1,410/oz (+/-5%), which is a good outcome considering the inflationary environment in which we have been
operating
As outlined last year, we have now embedded the new technical structure with the appointment of Nancy Guay as our Chief Technical Officer (CTO) and the
establishment of a long-term planning function. This will result in more robust planning and readiness for FY25. We plan to build on this throughout FY25.
Short Term Incentive Plan (STIP) Outcomes
For FY24, STIP outcomes focused on six (6) key measures; safety, risk, production, group cash contribution, group AISC and an overall business
performance measure that enables the Board to review overall company performance 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. 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.
The overall business performance element of the STIP has a weighting of 20%. For FY24, although there was good progress on several of the areas for this
element, including progress on net zero, improving the portfolio with the acquisition of the Northparkes asset etc, when the Board evaluated this element and
reflecting on the operational performance for the year, the Board felt it appropriate to exercise its discretion by awarding a zero (0%) outcome.
This resulted in an overall STIP outcome for FY24 of 71.40%, 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 25-26.
Long Term Incentive Plan (LTIP) Outcomes
Our LTIP performance measures directly link to our focus on delivering sustainable superior shareholder returns for the long term. For the FY22 LTIPs, tested
and vesting as of 30 June 2024, 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 30.
The Committee and Board remain confident that there is an appropriate remuneration framework that balances between the strong market demands for
attracting and retaining employees with a strong focus on incentives aligned to delivery of the business strategy and returns for shareholders.
Changes to KMP reporting effective 1 July 2024, for the FY25 reporting period
As a result of recent structural changes in the technical area creating a CTO role and the appointment of a new COO, Matt O’Neill, Evolution has modified
how key decisions are made with the C-suite roles taking a lead role. Therefore, the Board has determined that, effective 1 July 2024 (FY25), Key
Management Personnel will comprise the Managing Director & CEO, CFO, COO, and CTO along with the Executive Chair.
Thank you for your ongoing support of Evolution and assure you that the Nomination and Remuneration Committee remains committed to the full alignment
between our remuneration structure and delivering long term value for shareholders.
Signed:
Tommy McKeith
Chair of the Nomination and Remuneration Committee
Evolution Mining Limited
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147 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited)
This Remuneration Report forms part of the Directors' Report for the year ended 30 June 2024. 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:
a.
Remuneration Overview
b.
Remuneration Governance
c.
Remuneration Strategy, Framework and Philosophy
d.
Changes in relation to Remuneration in FY25
e.
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs
f.
Non-Executive Director Remuneration Outcomes
g.
Other Remuneration Information
h.
Transactions with KMP
i.
Summary of Key Terms
(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 Managing Director and Chief
Executive Officer, Non-Executive Directors and those executives considered to be Key Management Personnel (“KMP”) named below:
Name
Position
Jacob (Jake) Klein
Executive Chair
Lawrence (Lawrie) Conway
Managing Director and Chief Executive Officer
James Askew
Non-Executive Director
Jason Attew
Non-Executive Director
Victoria Binns
Non-Executive Director
Andrea Hall
Non-Executive Director
Fiona Hick (i)
Non-Executive Director
Thomas McKeith
Non-Executive Director
Peter Smith
Non-Executive Director
Paul Eagle
Vice President People and Culture
Evan Elstein
Company Secretary and Vice President Information Technology, Communications and Corporate Affairs
Bob Fulker (ii)
Chief Operating Officer
Nancy Guay (iv)
Chief Technical Officer
Glen Masterman
Vice President Discovery
Fiona Murfitt
Vice President Sustainability
Matthew O'Neill (iii)
Chief Operating Officer
Barrie Van der Merwe
Chief Financial Officer
For NEDs Remuneration information refer to page 30-31.
(i) Appointed as a Non-Executive Director effective 1 July 2024
(ii) Ceased to be Chief Operating Officer effective 31 March 2024
(iii) Appointed to Chief Operating Officer effective 1 June 2024
(iv) Appointed to Chief Technical Officer effective 1 June 2024
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(ii) Executive service agreements
Name
Position Title
Total Fixed Remuneration
Notice Period
by Executive
Notice Period
by Evolution
Termination
payments *
2025
2024
Existing Executive Directors and Key Management Personnel
Jake Klein
Executive Chair
12 months
800,000
875,000
6 months
12 months
Total Fixed
Remuneration
Lawrie Conway
Managing Director and
Chief Executive Officer
12 months
1,065,000
1,020,000
6 months
12 months
Total Fixed
Remuneration
Barrie van der Merwe
Chief Financial Officer
6 months
650,000
624,000
3 months
6 months
Total Fixed
Remuneration
Paul Eagle
Vice President People and
Culture
6 months
490,000
468,000
3 months
6 months
Total Fixed
Remuneration
Evan Elstein
Company Secretary and Vice
President Information
Technology, Communication
and Corporate Affairs
6 months
490,000
468,000
3 months
6 months
Total Fixed
Remuneration
Bob Fulker(i)
Chief Operating Officer
6 months
—
624,000
3 months
6 months
Total Fixed
Remuneration
Glen Masterman
Vice President Discovery
6 months
510,000
489,000
3 months
6 months
Total Fixed
Remuneration
Fiona Murfitt
Vice President Sustainability
6 months
492,000
470,000
3 months
6 months
Total Fixed
Remuneration
Matthew O'Neill (ii)
Chief Operating Officer
6 months
605,000
600,000
3 months
6 months
Total Fixed
Remuneration
Nancy Guay (iii)
Chief Technical Officer
12 months
555,000
550,000
3 months
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) Ceased to be Chief Operating Officer effective 31 March 2024
(ii) Appointed to Chief Operating Officer effective 1 June 2024, one month of TFR applicable for FY2024
(iii) Appointed to Chief Technical Officer effective 1 June 2024, ,one month of TFR applicable for FY2024
During the financial period ended 30 June 2024, no Director fees were paid to Jake Klein and Lawrie Conway.
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 FY24.
(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
Evolution Mining Limited
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
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 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.
(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
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (Continued)
(c)
Remuneration Strategy and Framework
The following table outlines the remuneration components for all KMP for the 2024 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
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 FY24, the
measures focused on safety, risk, production, cash contribution,
costs and rest of business outcomes focused on improving our
overall asset portfolio aligned to the business strategy, via the
delivery of priority capital projects, progress in the company's
sustainability targets and the continuation of portfolio improvement
via mine life outcomes and business development activities. The STI
target and stretch percentages for Executive Directors and KMP for
FY24 where target of 75% and stretch of 112.5%.
The objective is to motivate employees to achieve key annual
targets focused on safety, risk, production, cash contribution,
and effective cost management, improving the overall quality of
the asset portfolio and driving a high achievement team culture.
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 is to deliver industry leading shareholder
returns.
The target achievement remuneration ratio mix for 2024 and 2025 is shown below.
CEO/Executive Chair
(FY24 & FY25)
25%
18%
18%
20%
57%
62%
TFR
STI
LTI
Target
Stretch
Other KMP
(FY24 & FY25)
29%
22%
22%
24%
49%
54%
TFR
STI
LTI
Target
Stretch
Evolution Mining Limited
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (Continued)
(d)
Key Changes in Relation to FY25
KMP Reporting
With effect from 1 July 2024, having regard to the new management structure, including the creation of the Chief Technical Officer role on the Leadership
Team, the Key Management Personnel (KMP) for the Company will be defined as the CEO, CFO, COO and the CTO, as being the executives with the
authority and responsibility for planning, controlling and directing the major part of the operations of the Company.
(e)
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs
(i)
Financial Performance
The Group has demonstrated strong financial performance over the past five years as shown in the following charts:
Statutory Profit/(loss) ($m)
301.6
345.3
323.3
163.5
422.3
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
Underlying Profit After Tax ($m)
405.4
354.3
274.7
205.0
481.8
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
EBITDA ($m)
1,029.4
914.2
898.8
844.5
1,513.4
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
Basic EPS (cents)
17.71
20.21
17.74
8.91
22.02
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
Dividends declared (cents per
share)
16.0
12.0
10.0
4.0
7.0
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
Share price ($) at 30 June
5.67
4.50
2.38
3.22
3.5
Annual Results
Cumulative Average
FY20
FY21
FY22
FY23
FY24
Evolution Mining Limited
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (Continued)
(e)
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued)
(ii)
STIP
STIP Overview
Component
Performance measure
Participation
The Overall Group STIP applies to site based employees at the level of Superintendent and above and all Group office
employees.
Composition
The Group STIP is a cash bonus, up to a maximum percentage of TFR, based on the employee job band.
Performance
conditions
It is assessed and paid annually conditional upon the achievement of key company objectives and individual KPIs. For the
2024 financial year, the Group objectives were focused on the areas of safety, risk, production, group cash contribution, all in
sustaining costs and rest of business outcomes, designed to improve the overall business aligned to the long term business
strategy.
FY24 STIP
considerations
At the time of setting the FY24 STIP measures, the Board determined it would consider the business performance and the
following factors when awarding the score for the overall business outcomes measure:
1.
Sustainability - progress as per the Evolution Net Zero commitment
2.
Delivery of key projects at Ernest Henry, Mungari, and Mt Rawdon Operations
3.
Continuation of portfolio improvement and strategic position - measured by Life of Mine plan outcomes;
delivery of key initiatives in FY24, and any Business Development activities.
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153 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(e)
Executive Remuneration Performance Measures and Outcomes - STIs and LTIs (continued)
(ii)
STIP (continued)
STIP Performance Measures and Outcomes
Measure
Weighting Performance
Outcome
Award
TRI Frequency (TRIF) (12mma)
11.4 %
10%
7.37
The overall outcome was a reduction in TRIF of 15% on the FY23
performance. A significant focus was given to being in control, noting the
changing risk profiles of the sites such as the increased mining fronts at
Mungari, the introduction of underground mining at Cowal, closure
management at Mt Rawdon and Ernest Henry returning to full operation post
the rain event of FY23. This measure excludes the NorthParkes which was
acquired during the year.
Risk - Critical and Material Risk Actions
30.0 %
20%
150%
In FY24 a Risk review project continued to deliver priority to lifting the
maturity of Evolution's risk management including the effectiveness of critical
control management. This included embedding the ongoing site risk review
processes and site risk register updates. All registers, including the Group
risk register (and associated bow ties) have been updated and validated.The
FY24 Group risk register was also reviewed and updated quarterly, and all
material and critical actions have been logged in the system, are reviewed
monthly. There were no outstanding actions. Independent audits were
completed for all sites, with an overall assessment rating of satisfactory.
Group Gold Production (k oz)
0.0 %
15%
717koz
Against a target of 790koz, EVN delivered ~717koz. This is due to a range of
factors including wet weather at Cowal and seismicity at Red Lake impact
ore transport systems . No adjustments have been made for the impact of
these events.
Group Cash Contribution ($ million)
30.0 %
20%
$367m
Against a target of $205m, EVN had an overall result of $367m which
exceeded stretch. The result for this year was driven by strong performance
in fourth quarter, good cost management and capital discipline as well as the
benefit of higher gold and copper prices.
Group All in Sustaining Cost ($/oz sold)
0.0 %
15%
$1477/oz
Against a Target of $1,340/oz, EVN’s AISC was ~$1477/oz which did not
meet Threshold. The unit costs were adversely impacted by lower than
planned production as set out above, which was partially offset by higher by-
produce revenues.
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Evolution Mining Annual Report 2024 | 154
Annual Report
Sustainability Report
Financial Report
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
Award
Rest of business
0.0 %
20%
—%
1. Sustainability – progress against Net Zero commitment
The FY24 Net Zero processes ensures Evolution’s emissions
management and reduction strategies are integrated into every part of the
mine lifecycle, that includes due diligence activities, project assessments
and day to day management. In FY24, Evolution delivered a ~14.3%
reduction in absolute emissions against our FY20 baseline.
2. Delivery of key projects - Ernest Henry (EHO) Feasibility Study;
Mungari (MGO) plant expansion; and Mt Rawdon (MRO) Pumped Hydro
EHO Feasibility Study The EA amendment approval was received in May
which is a key milestone for the project. Substantial progress has been made
on the technical studies including the commencement of the geotechnical
modelling and mine planning work in testing layouts.
MGO Plant Expansion. The MGO plant expansion project is tracking ahead
of plan with concrete structures in place and the concrete work in relation to
leach tanks, SAG mill, thickener and crusher zones progressing well. The
traditional owners cultural salvage survey for the power line corridor has been
approved. Whilst mitigated with the purchase of the diesel power generation
sets, the risk of Western power failing to deliver additional power by March
2025 remains.
MRO Pumped Hydro (MRPH). Significant progress has been made by EVN/
ICA on project development aspects of the MRPH project in FY24 including:
o Completion of a technical/engineering feasibility study for the project which
materially de-risked all technical aspects of the project and identified no fatal
flaws. o Completion of a high-quality EIS that has been lodged in the second
half of FY24 providing a pathway for both state and federal regulatory
approval of the project. The EIS included 23 technical studies in accordance
with a regulatory term of reference and stakeholder consultation
management (including agreement of a Cultural Heritage Management Plan
(CHMP) that addressed both project development activities of the MRPH as
well as its interaction with concurrent mining and closure activities at MRO •
From a commercial perspective, after extensive discussions with CleanCo,
EVN/ICA have agreed commercial terms in principle for a structured, staged
sale of the MRPH project to CleanCo. Drafting of full form binding legal
documentation reflecting the proposed transaction structure iis well
advanced and CleanCo has board approval to proceed with the transaction
subject to finalising legal documents.
3. Continuation of portfolio improvement and strategic position
measured by Life of Mine plan outcomes; delivery of key initiatives in
FY24, and any Business Development activities.
Mineral Resources and Ore Reserves (MROR) for Gold increased by 7.7% to
32.7moz and Copper by 134% to 4,139kt. For reserves, Gold increased
14.8% to 11.5moz and Copper increased 100% to 1,320kt. In terms of
Business development aligned to the business strategy, Evolution completed
the acquisition of the Northparkes Operations on 18 December 2023 and
since that time the asset has delivered $65m in net mine cashflow.
The Board considered the progress against these elements and awarded a
score of 0%.
Overall Outcome
100%
71.4 %
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155 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(e)
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued)
(ii)
STIP (continued)
The STIP outcomes for the KMP are set out in the table below. The outcomes reflect the combination of the overall company performance for the year
(corporate component) as well as the individual KPI performance for the year (individual component) for each KMP member. For the Executive Chair and
Chief Executive Officer, the weighting is 70% corporate and 30% individual and for the remainder of the KMP, 60% corporate and 40% individual. The target
and stretch for all KMP are set at 75% and 112.5% of TFR respectively. This was also in line with the Company’s approach to emphasise the ‘at-risk’
remuneration component as opposed to the fixed remuneration component (TFR). Thus, the STIP for the KMP has resulted in a very similar percentage
outcome compared to FY24. It should be noted that over the last five years the average TFR movements have been well below market movements.
Component
Performance measure
2024
Total STIP Granted
($)
% of Maximum
Entitlement Granted
% of Maximum
Entitlement Forfeited
Directors
Jake Klein
450,000
45.7 %
54.3 %
Lawrie Conway
486,000
42.3 %
57.7 %
Key Management Personnel
Barrie van der Merwe
350,000
49.9 %
50.1 %
Paul Eagle
277,000
52.6 %
47.4 %
Evan Elstein
270,000
51.2 %
48.8 %
Bob Fulker
185,000
35.2 %
64.8 %
Glen Masterman
274,000
49.9 %
50.1 %
Fiona Murfitt
271,000
51.2 %
48.8 %
Matthew O'Neill (i)
—
—
—
Nancy Guay (i)
—
—
—
(i) No STIP granted during the year ended 30 June 2024.
(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
i d
Up to 3 years.
Composition
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 23 November 2023) 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.
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(e)
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued)
(iii)
LTIP (continued)
LTIP Performance Measures
The following table outlines the performance measures for the LTIPs issued in FY24 and to be issued in FY25.
KPI's
Weighting
Measure
Criteria
FY24 & FY25
Relative TSR
Performance
25%
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 entities
are disclosed below this table.
Threshold
Target
Exceptional
9th to 13th ranking = 0
8th Ranking = 33.33%
7th ranking = 50%
4th to 6th ranking = Straight-
line pro-rata between 50%
and 100%
Top 3 ranking = 100%
Absolute
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.
Threshold
Target
Exceptional
10% return per annum = 33%
>10% to <15% = pro-rata
between 33% and 66%
15% return per annum= 66%
>15% to <20% = Straight-line
pro-rata between 66% and
100%
>20% return per annum =
100%
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
entities are disclosed below this table.
Threshold
Target
Exceptional
9th to 13th ranking = 0
8th ranking = 33%
7th ranking = 50%
4th to 6th ranking = Straight-
line pro-rata between 50%
and 100%
Top 3 ranking = 100%
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(e)
Executive Remuneration Performance Measures and Outcomes – STIs and LTIs (continued)
(iii)
LTIP (continued)
KPI's
Weighting
Measure
Criteria
FY24 & FY25
Increase in
ore reserves
per share
25%
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.
Threshold
Target
Exceptional
90% of Baseline Ore
Reserves = 33%
>90% but below 100% of
Baseline Ore Reserves =
Straight-line pro-rata between
33% and 66%
100% of Baseline Ore
Reserves = 66%
>100% of Baseline Ore
Reserves and below 120% of
Baseline Ore Reserves =
Straight-line pro-rata between
66% and 100%
>120% and above of Baseline
Ore Reserves = 100%
Total LTI
100%
The Peer group comprises of the following entities for the Performance Rights granted during FY24.
Peer Group Entities
Alamos
Centerra
Equinox Gold
Northern Star Resources
AngloGold
Endeavour Mining
Gold Fields
OceanaGold
B2Gold Corp
Eldorado Gold
Kinross Gold
SSR Mining
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.
The Peer group comprises of the following entities for the Performance Rights to be granted in the FY25 reporting period.
Peer Group Entities
Alamos
Centerra
Equinox Gold
Northern Star Resources
AngloGold
Endeavour Mining
Gold Fields
Ramelius Resources
B2Gold
Eldorado Gold
Kinross Gold
Red 5
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Directors' Report
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Evolution Mining Annual Report 2024 | 158
Annual Report
Sustainability Report
Financial Report
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 FY21 award which were approved by the Board and vested in August 2023 are set out as
follows:
Performance Target
Measure
Weighting
FY21
Outcome
% of Maximum
Vested
% Vested
(i)
Relative TSR Performance
Percentile
25 %
11th
— %
— %
(ii)
Absolute TSR performance
Compound annual return
25 %
(13.4) %
— %
— %
(iii)
Relative AISC Performance
Compound annual return
25 %
3rd
100.0 %
25.0 %
(iv)
Increase in ore reserves per share
Percentage increase
25 %
136.2 %
100.0 %
25.0 %
Total
100.0 %
50.0 %
Outcomes for the FY22 award approved by the Board for vesting in August 2024 are set out as follows:
Performance Target
Measure
Weighting
FY22
Outcome
% of Maximum
Vested
% Vested
(i)
Relative TSR Performance
Ranking
25 %
9th
— %
— %
(ii)
Absolute TSR performance
Compound annual return
25 %
(7.8) %
— %
— %
(iii)
Relative AISC Performance
Ranking
25 %
2nd
100.0 %
25.0 %
(iv)
Increase in ore reserves per share
Percentage increase
25 %
130.4 %
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 FY24, 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 FY25.
•
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 2024, the VWAP
used to determine the number of share rights to be granted to each NED is $3.4071
Providing the NED remains a director of the Group, Share Rights will vest and automatically exercise 12 months after the grant date. The Share Rights
granted to NEDs under the NED Equity Plan are not subject to performance conditions. Vested Share Rights will convert into ordinary shares on a one-for-
one basis. Vested Share Rights will be satisfied by either issuing shares or arranging for shares to be acquired on-market, subject to the Group's Securities
Trading Policy and the inside information provisions of the Corporations Act.
Upon the transfer to the relevant NED, the shares will be subject to disposal restrictions (Disposal Conditions) under the earlier of:
•
the NED ceasing to be a director of the Group; or
•
three years from the date of grant of the share rights; or
•
such longer period nominated by the NED at the time of the offer (up to a maximum 15 years from the date of grant).
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159 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(f)
Non-Executive Director Remuneration Outcomes (continued)
Outlined in the table below is a summary of the fee structure by individual as at 30 June 2024. For remuneration outcomes please refer to table in section
(g)(i).
Cash Component ($)
NED Equity
Plan Shares ($)
(i)
Total per annum
($)
Base Fees
Lead
Independent
Sub-Committee
Chair
Sub-Committee
Member
Total Cash Fees
Directors
James Askew
120,000
—
—
40,000
160,000
65,000
225,000
Andrea Hall
120,000
—
40,000
20,000
180,000
65,000
245,000
Thomas McKeith
120,000
—
35,000
—
155,000
65,000
220,000
Peter Smith (ii)
120,000
3,750
35,000
—
158,750
65,000
223,750
Victoria Binns
120,000
—
—
20,000
140,000
65,000
205,000
Jason Attew (ii)
120,000
11,250
—
40,000
171,250
80,000
251,250
720,000
15,000
110,000
120,000
965,000
405,000
1,370,000
(i) Represents face value of the awards.
(ii) Jason Attew ceased to be Lead Independent Director on 31 March 2024. Peter Smith was appointed with effect 1 April 2024
(g) Other Remuneration Information
(i)
Remuneration Summary Table
Fixed
Remuneration*
Leave
Entitlement***
Post-
Employment
Benefits
STI*
LTI
Remuneration
Performance
related
remuneration
Base Salary and
Fees
Movement
Superannuation
Bonus
Amortised Value **
Total
Total
% of total
remuneration
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024 2023
Directors
Jake Klein
849,708 999,708 (113,606) 37,023 27,399 25,292 450,000 477,000 2,101,216 2,365,535 3,314,717 3,904,558 77 % 73 %
Lawrie Conway 992,601 862,208
2,991 38,086 27,399 25,292 486,000 477,000 1,837,583 1,486,996 3,346,574 2,889,582 69 % 68 %
James Askew
160,000 160,000
—
—
—
—
—
—
69,487
76,859
229,487
236,859 — % — %
Andrea Hall
180,000 180,000
—
—
—
—
—
—
69,487
76,859
249,487
256,859 — % — %
Thomas
McKeith
139,640 140,271
—
— 15,360 14,729
—
—
69,487
76,859
224,487
231,859 — % — %
Jason Attew
171,250 175,000
—
—
—
—
—
—
85,521
94,595
256,771
269,595 — % — %
Victoria Binns
126,126 126,697
—
— 13,874 13,303
—
—
69,487
76,859
209,487
216,859 — % — %
Peter Smith
143,018 140,271
—
— 15,732 14,729
—
—
69,487
76,859
228,237
231,859 — % — %
Key Management Personnel
Barrie Van Der
Merwe(i)
596,601 191,569
(807) 10,877 27,399
8,431 350,000 107,000 417,848
— 1,391,041
317,877 55 % 34 %
Paul Eagle
440,601 424,708
22,772
8,170 27,399 25,292 277,000 275,000 725,198 888,322 1,492,970 1,621,492 67 % 72 %
Evan Elstein
440,601 424,708
(9,394) 13,337 27,399 25,292 270,000 275,000 725,198 888,322 1,453,804 1,626,659 68 % 72 %
Bob Fulker(ii)
759,451 574,708
(6,223) 45,168 20,549 25,292 185,000 295,000 2,086,799 994,435 3,045,576 1,934,603 75 % 67 %
Glen
Masterman
461,601 444,708
2,576 (3,911) 27,399 25,292 274,000 301,000 764,049 947,131 1,529,625 1,714,220 68 % 73 %
Fiona Murfitt
442,601 424,708 (29,215)
— 27,399 25,292 271,000 282,000 716,804 842,808 1,428,589 1,574,808 69 % 71 %
Matthew O'Neill
47,717
—
3,871
—
2,283
—
—
—
—
—
53,871
— — % — %
Nancy Guay
43,550
—
3,533
—
2,283
—
—
—
—
—
49,366
— — % — %
5,995,066 5,269,264 (123,502) 148,750 261,874 228,236 2,563,000 2,489,000 9,807,651 8,892,439 18,504,089 17,027,689
(i) Appointed to Chief Financial Officer effective 1 March 2023
(ii) Bob Fulker's Base salary and fees during the year includes $ 312,000 of Ex-gratia payment as part of termination.
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Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(g) Other remuneration information (continued)
*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 represents the annual and long service leave movement in the associated provision balances for a
financial year.
Outlined in the table below is an estimate of the cash equivalent remuneration for Executive Directors and Key Management Personnel for the year ended at
30 June 20243. This is non-statutory information but is provided to highlight what would be the cash equivalent assuming the FY24 STI was received in the
same year and if the LTI performance rights were exercised and sold for cash at time of being exercised.
Total Fixed
Remuneration
(i)
Short Term
Incentive (ii)
Long Term
Incentive (iii)
Total
Directors
Jake Klein
877,107
450,000
1,337,537
2,664,644
Lawrie Conway
1,020,000
486,000
743,360
2,249,360
Key Management Personnel
Barrie van der Merwe
624,000
350,000
—
974,000
Paul Eagle
468,000
277,000
500,264
1,245,264
Evan Elstein
468,000
270,000
500,264
1,238,264
Bob Fulker
468,000
185,000
642,561
1,295,561
Glen Masterman
489,000
274,000
535,838
1,298,838
Fiona Murfitt
470,000
271,000
480,957
1,221,957
Matthew O'Neill
50,000
—
—
50,000
Nancy Guay
45,833
—
—
45,833
4,979,940
2,563,000
4,740,781
12,283,721
(i) Base salary plus Superannuation contributions and any Director Fees.
(ii) Cash outcome of FY24 STI Plan
(iii) Cash equivalent of FY22 Performance Rights which vest in August 2024, assuming the rights are exercised at the share price on 12 August 2024. 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.
Evolution Mining Limited
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30 June 2024
3 This is non-IFRS information
161 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(g) Other remuneration information (continued)
(ii)
Performance Rights and Share Rights
At end of the year
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
2,432,793
898,858
2,543,768
(237,702)
(237,702)
2,856,247
355,729
355,729 2,144,789 $
2,407,387
Lawrie Conway
1,694,837
1,047,812
2,960,069
(132,019)
(132,019)
2,478,611
197,702
197,702 2,083,207 $
2,570,761
James Askew (i)
26,444
19,078
68,872
(26,444)
—
19,078
—
—
19,078 $
19,831
Andrea Hall (i)
26,444
19,078
68,872
(26,444)
—
19,078
—
—
19,078 $
19,831
Thomas McKeith(i)
26,444
19,078
68,872
(26,444)
—
19,078
—
—
19,078 $
19,831
Jason Attew(i)
32,547
23,480
84,763
(32,547)
—
23,480
—
—
23,480 $
24,406
Vicky Binns (i)
26,444
19,078
68,872
(26,444)
—
19,078
—
—
19,078 $
19,831
Peter Smith (i)
26,444
19,078
68,872
(26,444)
—
19,078
—
—
19,078 $
19,831
Key Management Personnel
Barrie van der
Merwe
—
457,867
1,304,921
—
—
457,867
—
—
457,867 $
885,928
Paul Eagle (ii)
901,222
343,401
978,693
—
(88,717)
1,155,906
221,766
133,049
801,091 $
849,642
Evan Elstein
901,222
343,401
978,693
(88,717)
(88,717)
1,067,189
133,049
133,049
801,091 $
849,642
Bob Fulker
1,180,170
457,867
1,304,921
(114,065)
(114,064)
1,409,908
170,894
170,894 1,068,120 $
—
Glen Masterman
953,161
358,810
1,022,609
(95,054)
(95,054)
1,121,863
142,512
142,512
836,839 $
887,927
Fiona Murfitt
908,812
344,868
982,874
(112,916)
(82,380)
1,058,384
127,914
127,914
802,556 $
852,103
Matthew O'Neill
—
—
—
—
—
—
—
—
— $
—
Nancy Guay
—
—
—
—
—
—
—
—
— $
—
9,136,984
4,371,754 $ 12,505,671
(945,240)
(838,653) 11,724,845
1,349,566 1,260,849 9,114,430 $
9,426,951
*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 2023. Jake Klein and Lawrie Conway's performance rights were granted on 23 November
2023 following shareholder approval at the Annual General meeting. Non-Executive Directors had share rights granted on 24 November 2023.
(i) Non-Executive Director Share Rights granted under the NED Equity Plan are not subject to performance conditions.
(ii) 88,717 performance rights were vested in FY23 but unexercised by 30 June 2024.
Evolution Mining Limited
Directors' Report
30 June 2024
Evolution Mining Annual Report 2024 | 162
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(g) Other remuneration information (continued)
(ii)
Performance Rights and Share Rights (continued)
Outlined in the table below is a summary of the performance rights for Executive Directors and Key Management Personnel at 30 June 2024 by tranche:
FY22 LTIPs
Vested
FY22 LTIPs To Be
Forfeited
FY23 LTIPs
Unvested
FY24 LTIPs Unvested
Balance at 30
June 2024
Directors
Jake Klein
355,728
355,728
1,245,932
898,858
2,856,246
Lawrie Conway
197,702
197,702
1,035,395
1,047,812
2,478,611
Key Management Personnel
Barrie van der Merwe
—
—
—
457,867
457,867
Paul Eagle
133,049
133,049
457,689
343,401
1,067,188
Evan Elstein
133,049
133,049
457,689
343,401
1,067,188
Bob Fulker
170,894
170,894
610,252
457,867
1,409,907
Glen Masterman
142,510
142,510
478,031
358,810
1,121,861
Fiona Murfitt
127,914
127,914
457,689
344,868
1,058,385
Matthew O'Neill
—
—
—
—
—
Nancy Guay
—
—
—
—
—
1,260,846
1,260,846
4,742,677
4,252,884
11,517,253
The fair value at grant date for the Key Management Personnel FY24 performance rights are stated below:
Relative TSR
Absolute TSR
Relative AISC
Growth in Ore
Reserves
September 2023 Performance Rights issue
Fair value at grant date ($)
2.56
1.89
3.47
3.47
The fair value at grant date for the Non-Executive Directors FY24 share rights were $3.61 based on one year service condition.
The fair value at grant date for the Jake Klein's and Lawrie Conway's FY24 performance rights are stated below:
Relative TSR
Absolute TSR
Relative AISC
Growth in Ore
Reserves
November 2023 Performance Rights issue
Fair value at grant date ($)
2.49
1.85
3.48
3.48
Evolution Mining Limited
Directors' Report
30 June 2024
163 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
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 (i)
On-market trade
(Buy/(Sell))
Other changes
Balance at the
end of the year
Directors
Jake Klein
16,025,636
237,702
(1,250,000)
39,108
15,052,446
Lawrie Conway
1,429,309
132,019
—
9,777
1,571,105
James Askew
945,738
26,444
10,000
—
982,182
Andrea Hall
68,255
26,444
—
9,777
104,476
Thomas McKeith
250,843
26,444
—
9,777
287,064
Jason Attew
57,895
32,547
10,935
—
101,377
Vicky Binns
53,184
26,444
—
9,777
89,405
Peter Smith
67,406
26,444
—
9,777
103,627
Key Management Personnel
Barrie van der Merwe
—
—
—
—
—
Paul Eagle
988,819
—
(16,000)
—
972,819
Evan Elstein
557,848
88,717
(168,717)
—
477,848
Bob Fulker (ii)
64,000
114,065
(114,065)
—
64,000
Glen Masterman
5,072
95,054
—
9,777
109,903
Fiona Murfitt
—
112,916
—
—
112,916
Matthew O'Neill
—
—
—
—
—
Nancy Guay
—
—
—
—
—
20,514,005
945,240
(1,527,847)
97,770
20,029,168
(i) The exercise price of the performance right is nil.
(ii) Bob Fulker's equity holdings balance represents as of 31 March 2024 being termination date.
(h)
Transactions with KMP
(a) Loans:
There are no loans provided to Key Management Personnel as at 30 June 2024.
(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:
30 June 2024
30 June 2023
$
$
Related party transactions
International Mining & Finance Corp4
203,705
248,159
Jason Attew
179,964
219,126
Total
383,669
467,285
Evolution Mining Limited
Directors' Report
30 June 2024
4Payment to International Mining & Finance Corp includes $43,705 expense reimbursements and payment to Jason Attew includes $8,714 expense reimbursements. Expenses
were mostly related to travel.
Evolution Mining Annual Report 2024 | 164
Annual Report
Sustainability Report
Financial Report
Remuneration Report (Audited) (continued)
(j)
Summary of Key Terms
Below is a list of key terms with definitions used within the Directors' Report:
Key Term
Definition
The Board of Directors
(“the Board” or “the
Directors”)
The Board of Directors, the list of persons under the relevant section above.
Key Management
Personnel ("KMP")
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 2024 are listed in section (a) (ii) of
the Remuneration Report. Effective 1 July 2024 (FY25), Key Management Personnel will comprise the Managing Director
& CEO, CFO, COO, and CTO along with the Executive Chair.
Total Fixed
Remuneration ("TFR")
Total Fixed Remuneration comprises a base salary plus superannuation. This is currently positioned at the median (50th
percentile) of the industry benchmarking report.
Short Term Incentive
("STI") and Short Term
Incentive Plan (“STIP”)
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.
Long Term Incentive
("LTI") and Long term
Incentive Plan (“LTIP”)
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 Annual
Remuneration (TAR)
Total Fixed Remuneration plus STI.
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 11% 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")
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.
NED Equity Plan
The plan permits the Group, at the discretion of the Board and Remuneration. Committee to issue remuneration to Non-
Executive Directors through Share Rights.
Total Shareholder
Return ("TSR")
TSR is the total return on an ordinary share to an investor arising from growth in the share price plus any dividends
received.
Key Performance
Indicators ("KPIs")
A form of performance measurement for individual performance against a pre-defined set of goals.
Volume Weighted
Average Share Price
(“VWAP”)
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
Fees paid to Executive and Non-Executive Directors for services as a Director, including sub-committee fees as applicable.
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
Performance rights forfeited upon cessation of employment or vesting conditions not met.
Evolution Mining Limited
Directors' Report
30 June 2024
165 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
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:
◦
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
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.
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 30(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.
The Non Audit Services (NAS) Policy can be located on Evolution's website.
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, and
its related practices.
2024
$
2023
$
Other assurances services
6,360
22,960
Tax compliance and advisory services
—
64,800
Sustainability advisory services
118,900
—
Total non-audit services fees
125,260
87,760
Evolution Mining Limited
Directors' Report
30 June 2024
Evolution Mining Annual Report 2024 | 166
Annual Report
Sustainability Report
Financial Report
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 39.
Rounding of amounts
The Group is of a kind referred to in ASIC Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission relating
to the 'rounding off' of amounts in the Directors' Report and Financial Report have been rounded in accordance with that ASIC Corporations Instrument
to the nearest thousand dollars ($'000), or, in certain cases, the nearest dollar.
This report is made in accordance with a resolution of Directors.
Lawrence (Lawrie) Conway
Andrea Hall
Managing Director and Chief Executive Officer
Non-Executive Director
Sydney
14 August 2024
For further information please contact:
Investor Enquiries
Peter O’Connor
General Manager Investor Relations Evolution Mining Limited
Tel: +61 2 9696 2933
Media Contact
Michael Vaughan Media Relations Fivemark Partners Tel: +61 422 602 720
Evolution Mining Limited
Directors' Report
30 June 2024
167 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
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.
Auditor’s Independence Declaration
As lead auditor for the audit of Evolution Mining Limited for the year ended 30 June 2024, 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
Sydney
Partner
PricewaterhouseCoopers
14 August 2024
Evolution Mining Annual Report 2024 | 168
Annual Report
Sustainability Report
Financial Report
Notes
30 June 2024
30 June 2023
$'000
$'000
Sales revenue
2
3,215,832
2,226,931
Cost of sales
2
(2,292,576)
(1,797,853)
Gross Profit
923,256
429,078
Interest income
4,994
8,003
Other income / (expense)
2
32,632
(30,157)
Share based payments expense
29
(12,682)
(12,893)
Corporate and other administration costs
2
(53,822)
(46,814)
Transaction, integration and restructuring costs
2
(94,238)
(5,153)
Exploration and evaluation costs expensed
10
(31,891)
(17,527)
Finance costs
2
(148,457)
(90,735)
Profit before income tax expense
619,792
233,802
Income tax expense
3
(197,523)
(70,294)
Profit after income tax expense attributable to Owners of Evolution Mining Limited
422,269
163,508
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)
1,738
(13,903)
Exchange differences on translation of foreign operations (may be reclassified to profit or
loss)
(48,232)
9,543
Loss on cash flow hedge reserve net of tax (may be reclassified to profit or loss)
(16,150)
(38,549)
Cost of hedging reserve net of tax (may be reclassified to profit or loss)
(1,153)
(45)
Other comprehensive loss for the period, net of tax
(63,797)
(42,954)
Total comprehensive income for the period
358,472
120,554
Total comprehensive income for the period is attributable to:
Owners of Evolution Mining Limited
358,472
120,554
358,472
120,554
Cents
Cents
Earnings per share for profit attributable to Owners of Evolution Mining Limited:
Basic earnings per share
4
22.02
8.91
Diluted earnings per share
4
21.95
8.89
Evolution Mining Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2024
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
169 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Notes
30 June 2024
30 June 2023
$'000
$'000
ASSETS
Current assets
Cash and cash equivalents
11
403,303
46,146
Trade and other receivables
14
268,127
119,964
Inventories
16
399,102
333,395
Current tax receivables
—
15,532
Derivative financial instruments
17(b)
22
2,426
Total current assets
1,070,554
517,463
Non-current assets
Inventories
16
255,063
193,445
Equity investments at fair value
17
39,628
45,064
Property, plant and equipment
7
2,755,303
2,185,656
Mine Properties
9
3,888,215
3,097,304
Exploration and evaluation expenditure
10
462,856
469,904
Right-of-use assets
8
90,983
55,180
Deferred tax assets
21
134,527
45,494
Derivative financial instruments
17(b)
88,455
103,737
Other non-current assets
18
33,257
39,138
Total non-current assets
7,748,287
6,234,922
Total assets
8,818,841
6,752,385
LIABILITIES
Current liabilities
Trade and other payables
15
577,002
446,020
Interest bearing liabilities
12
72,889
341,273
Provisions
20
106,801
78,043
Derivative financial instruments
17(b)
4,085
1,957
Lease liabilities
8
53,638
22,523
Current tax liabilities
127,098
—
Deferred revenue
22
38,065
20,099
Total current liabilities
979,578
909,915
Non-current liabilities
Interest bearing liabilities
12
1,850,721
1,422,159
Provisions
20
503,002
468,433
Derivative financial instruments
17(b)
14,044
5,955
Deferred tax liabilities
21
652,160
545,179
Lease liabilities
8
41,826
35,310
Deferred revenue
22
548,124
—
Other non-current liabilities
19
87,190
63,614
Total non-current liabilities
3,697,067
2,540,650
Total liabilities
4,676,645
3,450,565
Net assets
4,142,196
3,301,820
EQUITY
Issued capital
13(a)
3,190,357
2,644,103
Other reserves
13(b)
45,984
100,542
Retained earnings
13(e)
905,855
557,175
Capital and reserves attributable to owners of Evolution Mining Limited
4,142,196
3,301,820
Total equity
4,142,196
3,301,820
Evolution Mining Limited
Consolidated Balance Sheet
As at 30 June 2024
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes
Evolution Mining Annual Report 2024 | 170
Annual Report
Sustainability Report
Financial Report
Notes
Issued
capital
Share-
based
payments
Financial
assets at
FVOCI
Foreign
currency
translation
Cash flow
hedge
reserve
Retained
earnings Total equity
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2022
2,644,103
78,063
(588)
22,623
31,322
485,397
3,260,920
Profit after income tax expense
—
—
—
—
—
163,508
163,508
Changes in fair value of equity investments
at FVOCI net of tax
—
—
(13,903)
—
—
—
(13,903)
Exchange differences on translation of
foreign operations
—
—
—
9,543
—
—
9,543
Cash flow hedge reserve net of tax
—
—
—
—
(38,549)
—
(38,549)
Cost of hedging net of tax
—
—
—
—
(45)
—
(45)
Total comprehensive income
—
—
(13,903)
9,543
(38,594)
163,508
120,554
Transactions with owners in their
capacity as owners:
Dividends provided for or paid
—
—
—
—
—
(91,730)
(91,730)
Recognition of share-based payments
—
12,076
—
—
—
—
12,076
—
12,076
—
—
—
(91,730)
(79,654)
Balance at 30 June 2023
2,644,103
90,139
(14,491)
32,166
(7,272)
557,175
3,301,820
Balance at 1 July 2023
2,644,103
90,139
(14,491)
32,166
(7,272)
557,175
3,301,820
Profit after income tax expense
—
—
—
—
422,269
422,269
Changes in fair value of equity investments
at FVOCI net of tax
—
—
1,738
—
—
—
1,738
Transfer of gain on disposal of equity
investments at fair value through other
comprehensive income to retained earnings
—
—
(2,864)
—
—
2,864
—
Exchange differences on translation of
foreign operations
—
—
—
(48,232)
—
—
(48,232)
Cash flow hedge reserve net of tax
—
—
—
—
(16,150)
—
(16,150)
Cost of hedging net of tax
—
—
—
—
(1,153)
—
(1,153)
Total comprehensive income
—
—
(1,126)
(48,232)
(17,303)
425,133
358,472
Transactions with owners in their
capacity as owners:
Issue of share capital - net of costs
546,254
—
—
—
—
—
546,254
Dividends provided for or paid
5
—
—
—
—
—
(76,453)
(76,453)
Recognition of share-based payments
—
12,103
—
—
—
—
12,103
546,254
12,103
—
—
—
(76,453)
481,904
Balance at 30 June 2024
3,190,357
102,242
(15,617)
(16,066)
(24,575)
905,855
4,142,196
Evolution Mining Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
171 | Evolution Mining Annual Report 2024
Annual Report
Sustainability Report
Financial Report
Notes
30 June 2024
30 June 2023
$'000
$'000
Cash flows from operating activities
Receipts from customers, inclusive of GST
3,152,216
2,353,456
Payments to suppliers and employees, inclusive of GST
(1,771,491)
(1,518,236)
Payments for transaction, integration and restructuring costs
(33,034)
(5,153)
Other income
40,543
6,024
Interest received
4,641
8,258
Interest paid
(77,644)
(74,969)
Income taxes paid
(33,800)
(34,100)
Net cash inflow from operating activities
1,281,431
735,280
Cash flows from investing activities
Payments for property, plant and equipment
(481,239)
(483,738)
Payments for mine properties
(406,194)
(326,713)
Payments for exploration and evaluation expenditure
(30,836)
(28,224)
Proceeds from sale of property, plant and equipment
1,014
3,387
Proceeds from contingent consideration
7,819
3,310
Proceeds from sale of equity investments
6,186
—
Payment for stamp duty
(50,870)
—
Payments for acquisition of subsidiary, net of cash acquired
27
(553,757)
(200,000)
Net cash (outflow) from investing activities
(1,507,877)
(1,031,978)
Cash flows from financing activities
Proceeds from interest bearing liabilities
12
865,764
80,000
Repayment of interest bearing liabilities
12
(705,000)
(195,000)
Lease liability principal payments
8
(44,160)
(19,552)
Dividends paid
5
(76,453)
(91,730)
Proceeds from issue of shares
13
556,743
—
Payment of transaction costs for issuing shares
(10,248)
—
Net cash inflow/(outflow) from financing activities
586,646
(226,282)
Net increase/(decrease) in cash and cash equivalents
360,200
(522,980)
Cash and cash equivalents at the beginning of the year
46,146
572,427
Effects of exchange rate changes on cash and cash equivalents
(3,043)
(3,301)
Cash and cash equivalents at the end of the year
403,303
46,146
Evolution Mining Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
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Contents of the Notes to the Consolidated Financial Statements
Page
Business performance
1
Performance by mine
2
Revenue and expenses
3
Income tax expense
4
Earnings per share
5
Dividends
6
Other cash flow information
Resource assets and liabilities
7
Property, plant and equipment
8
Leases
9
Mine properties
10
Exploration and evaluation expenditure
188
Capital structure, financing and working capital
190
11
Cash and cash equivalents
190
12
Interest bearing liabilities
190
13
Equity and reserves
191
14
Trade and other receivables
193
15
Trade and other payables
194
16
Inventories
194
17
Financial assets and financial liabilities
195
18
Other non-current assets
196
19
Other non-current liabilities
197
20
Provisions
198
21
Deferred tax balances
200
22
Deferred revenue
201
Risk and unrecognised items
202
23
Financial risk management
202
24
Contingent liabilities and contingent assets
206
25
Commitments
206
26
Events occurring after the reporting period
207
Other disclosures
208
27
Business combinations
208
28
Related party transactions
209
29
Share-based payments
210
30
Remuneration of auditors
212
31
Deed of cross guarantee
213
32
Interest in other entities
214
33
Parent entity financial information
215
34
Summary of material accounting policy information
216
35
New accounting standards
217
Consolidated entity disclosure statement
218
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
182
182
184
185
174
174
176
179
180
181
180
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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
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.
The corporate segment includes share-based payment expenses, other metal spot sales and purchases and other corporate expenditures supporting the
business during the year.
Included in Northparkes revenue are metal stream related transactions (see Note 22 - Deferred Revenue for more information).
Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation (EBITDA). Underlying EBITDA also
excludes financial items not considered to be contributing to underlying profit such as transaction, integration and restructuring costs and gains or
losses 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 2024 is as follows:
Ernest
Henry
Cowal
Mungari
Red Lake
Mt Rawdon
Northparkes
Exploration
Corporate
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Revenue
890,162
1,009,403
385,544
368,689
220,125
288,039
—
53,870
3,215,832
EBITDA
456,971
694,119
143,377
67,035
69,692
134,097
(31,891)
(105,065)
1,428,335
Sustaining Capital
49,473
38,581
56,398
40,301
3,241
18,609
2,403
209,006
Major Capital
107,538
107,951
135,478
167,989
174
11,451
—
—
530,581
Total Capital
157,011
146,532
191,876
208,290
3,415
30,060
—
2,403
739,587
The Group delivered 12,388 ounces of gold and 159,441oz of silver to Triple Flag under the steaming arrangement acquired at Northparkes at $2,714/oz
and $32/oz respectively except the 10% of ounces delivered at spot price. The Northparkes segment includes $34.8m of amortised deferred revenue
(Note 22). Corporate revenue relates to gold and silver ounces sold at spot to satisfy customer deliveries.
The segment information for the reportable segments for the year ended 30 June 2023 is as follows:
Ernest
Henry
Cowal
Mungari
Red Lake
Mt Rawdon
Exploration
Corporate
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Revenue
709,636
723,195
352,974
295,362
145,764
—
—
2,226,931
EBITDA
337,273
439,795
108,564
62,457
1,188
(17,527)
(92,390)
839,360
Sustaining Capital
66,570
29,780
34,198
61,207
5,094
—
1,200
198,049
Major Capital
44,504
294,849
58,121
189,095
13,394
—
—
599,963
Total Capital
111,074
324,629
92,319
250,302
18,488
—
1,200
798,012
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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1 Performance by mine (continued)
(c)
Segment reconciliation
30 June 2024
30 June 2023
$'000
$'000
Reconciliation of profit before income tax expense
Underlying EBITDA
1,513,361
898,641
Transaction, integration and restructuring costs
(94,238)
(5,153)
Navarre Contingent Consideration Write Off
—
(13,797)
Non-operational (income)/ costs net of insurance proceeds
9,212
(40,331)
EBITDA
1,428,335
839,360
Depreciation and amortisation
(665,079)
(522,827)
Interest income
4,994
8,003
Finance costs
(148,457)
(90,735)
Profit before income tax expense
619,792
233,802
Recognition and measurement
Operating segments are reported in a manner consistent with the internal reporting provided to the chief business decision maker.
The Board of Evolution Mining Limited has appointed a Executive Leadership Team which assesses the financial performance and position of the
Group, and makes strategic decisions. The Executive Leadership Team has been identified as being the chief business decision makers, including 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.
Australia
Canada
Total
$'000
$'000
$'000
30 June 2024
Inventory
255,063
—
255,063
Property, Plant & Equipment
2,025,596
729,707
2,755,303
Mine Properties
3,171,553
716,662
3,888,215
Exploration and evaluation expenditure
294,017
168,839
462,856
Right of use asset
63,265
27,718
90,983
Other
198,985
96,882
295,867
Total segment non-current assets
6,008,479
1,739,808
7,748,287
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
175 | Evolution Mining Annual Report 2024
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2 Revenue and expenses
30 June 2024
30 June 2023
$'000
$'000
Revenue from contracts with customers
Gold sales
2,325,443
1,679,669
Silver sales
35,958
18,087
Copper sales
942,574
588,121
Gross Revenue5
3,303,975
2,285,877
Concentrate treatment, refining and freight deductions6
(88,143)
(58,946)
Net Revenue
3,215,832
2,226,931
Timing of revenue recognition
At a point in time
3,201,374
2,226,931
Over time
14,458
—
Net Revenue
3,215,832
2,226,931
Disaggregation of revenue from contracts with customers
Cowal
Mungari
Mt Rawdon
Ernest
Henry
Red Lake Northparkes
Corporate
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
30 June 2024
Gold sales
997,800
384,909
217,082
253,007
368,418
56,506
47,721
2,325,443
Silver sales
11,602
635
3,043
9,224
271
5,034
6,149
35,958
Copper sales
—
—
—
697,134
—
245,440
—
942,574
Concentrate treatment, refining
and freight deductions
—
—
—
(69,202)
—
(18,941)
—
(88,143)
Total Revenue from
contracts with customers
1,009,402
385,544
220,125
890,163
368,689
288,039
53,870
3,215,832
Cowal
Mungari
Mt Rawdon
Ernest Henry
Red Lake
Total
$'000
$'000
$'000
$'000
$'000
$'000
30 June 2023
Gold sales
714,897
352,330
142,836
174,439
295,167
1,679,669
Silver sales
8,298
644
2,928
6,022
195
18,087
Copper sales
—
—
—
588,121
—
588,121
Concentrate treatment, refining and
freight deductions
—
—
—
(58,946)
—
(58,946)
Total Revenue from contracts
with customers
723,195
352,974
145,764
709,636
295,362
2,226,931
Gross revenues of $959.4 million (30 June 2023: $768.6 million) which relate to copper, gold and silver sales are derived from a single external customer
relating to Ernest Henry segment. Gross revenue of $1,229.5 million (30 June 2023: $869.0 million) which relate to gold and silver sales are derived from
a single customer relating to Cowal and Mt Rawdon segments. The other major customers include refineries and financial institutions.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
5 Included in gross revenue is $2.1 million of revenue attributable to provisional price adjustments on open sales positions at Northparkes.
6 Ernest Henry and Northparkes concentrate treatment, refining and freight costs classified as a deduction to revenue in line with AASB 15.
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2 Revenue and expenses (continued)
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. Shipping service in relation to certain concentrate sales is treated as a
separate performance obligation since the services are provided solely to facilitate the sale of the goods that the Group produces. Revenue in relation
to shipping service is recognised over time as the service is provided.
For gold doré sales, revenue is recognised at the point where the doré leaves the gold room at the Group's mine site to the buyer, or when payment is
received, or where gold metal credits are transferred to the customer's account. For concentrate sales, revenue is recognised generally when the
commodity is loaded into the vessel for shipment in the case of Red Lake and Northparkes. In the case of Ernest Henry, revenue is recognised when the
customer takes control of the concentrate.
The terms of metal in concentrate sales contracts with third parties contain provisional pricing arrangements whereby the final selling price for metal in
concentrate is based on prevailing average monthly prices on a specified future period after shipment to the customer (quotation period). Adjustments to
the sales price occur based on movements in quoted market prices up to the final settlement price specified in the sales contracts. The period between
provisional invoicing and final settlement is typically one to four months. Revenue on provisionally priced sales is recognised based on the estimated fair
value of the total consideration receivable.
Recognition and measurement - deferred revenue
Deferred revenue arises in the event that payment is received from customers before a sale meets criteria for revenue recognition. The accounting for
streaming arrangements is dependent on the facts and terms of the streaming arrangement. Revenue from streaming arrangements is recognised when
the customer obtains control of the gold and/or silver metal or when ounces are delivered into the bullion account of the customer.
The Group identified significant financing components related to its streaming arrangement resulting from a difference in the timing of the acquisition of
stream liability and delivery of the metal. Interest expense on deferred revenue is recognised in finance costs.
An adjustment is made to the transaction price per unit each time there is a change in the underlying production profile of Northparkes (typically in the
second half of each financial year). The change in the transaction price per unit results in a cumulative catchup adjustment to revenue in the period in
which the change is made, reflecting the new production profile expected to be delivered under the streaming agreement. A corresponding cumulative
catch-up adjustment is made to accretion expense, reflecting the impact of the change in the deferred revenue balance. No adjustment was required
during FY24 as the production profile remained unchanged. Refer to note 22 for details.
Accounting estimates and judgements
Stream arrangement with Triple Flag
Significant judgement is required in determining the expected delivery of ounces over the term of the Streaming Agreement and their associated cash
flows. In undertaking this review, management of the Group is required to make significant estimates of, amongst other things, discount rates, future
production volumes, and reserve and resource quantities. These estimates are subject to various risks and uncertainties which may ultimately have an
effect on the deferred revenue recorded related to the Streaming Agreement. Refer to note 22 (Deferred revenue) for further details.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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2 Revenue and expenses (continued)
30 June 2024
30 June 2023
$'000
$'000
Other (expense) / income
Net foreign exchange (loss) / gain
(6,050)
(22,272)
Insurance claim Ernest Henry
28,574
—
Impairment loss on contingent consideration receivable
—
(13,797)
Other
10,108
5,912
Total Other Income
32,632
(30,157)
30 June 2024
30 June 2023
$'000
$'000
Cost of sales
Mine operating costs
1,464,690
1,193,528
Purchase of metal in relation to stream arrangement
48,131
—
Royalty and other selling costs
116,288
84,127
Depreciation and amortisation expense
663,467
520,198
2,292,576
1,797,853
Corporate and other administration costs
Corporate overheads
52,210
44,187
Depreciation and amortisation expense
1,612
2,627
53,822
46,814
Transaction, integration and restructuring costs
Contractor, consultants and advisory expense
21,110
3,355
Restructuring costs
22,258
1,798
Stamp duty on business combinations
50,870
—
94,238
5,153
Finance costs
Amortisation of debt establishment costs
3,912
3,127
Interest expense unwinding - provisions
18,710
10,251
Interest accretion on the streaming arrangement with Triple Flag
20,992
—
Interest expense unwinding - lease liability
6,423
2,388
Interest expense
98,420
74,969
148,457
90,735
Depreciation and amortisation
Cost of sales
663,467
520,198
Corporate and other administration costs
1,612
2,627
665,079
522,825
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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3 Income tax expense
(a)
Income tax expense
30 June 2024
30 June 2023
$'000
$'000
Current tax on profits for the period
173,385
48,244
Adjustments for deferred tax of prior periods
—
(4,829)
Deferred tax
24,138
26,879
Total
197,523
70,294
(b)
Numerical reconciliation of income tax expense to prima facie tax payable
30 June 2024
30 June 2023
$'000
$'000
Profit before income tax
619,792
233,802
Tax at the Australian tax rate of 30% ( 2023 - 30%)
185,938
70,141
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Adjustments for prior periods tax
—
(4,829)
Share-based payments
1,191
2,681
Dividend - fully franked
(663)
(663)
Entertainment expenses and FX on deferred consideration (not assessable/deductible)
49
197
Stamp duty
15,261
—
Impairment loss on assets
—
4,139
Utilisation of tax losses
(4,099)
—
Other
(2,862)
(876)
Adjustment for difference between Australian and overseas tax rates
2,708
(496)
Income tax expense
197,523
70,294
In December 2021, the Organisation for Economic Co-operation and Development (OECD) issued model rules for a new global minimum tax framework
(Pillar Two), and various governments around the world have issued, or are in the process of issuing, legislation on this. The Group currently operates
only in Australian and Canada. In Australia, the government released draft legislation on Pillar Two in July 2024 which has not yet been substantively
enacted, whereas in Canada the legislation was enacted in June 2024.
Evolution is within the scope of the OECD Pillar Two model rules and is in the process of assessing the full impact of this. Evolution has applied the
mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two Model Rules.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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4 Earnings per share
(a)
Earnings per share
30 June 2024
30 June 2023
Cents
Cents
Basic earnings per share (cents)
22.02
8.91
Diluted earnings per share (cents)
21.95
8.89
(b)
Earnings used in calculating earnings per share
30 June 2024
30 June 2023
$'000
$'000
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
422,269
163,508
(c)
Weighted average number of shares used as the denominator
2024 Number
2023 Number
Weighted average number of ordinary shares used in calculating the basic earnings per share
1,917,721,891
1,834,693,710
Effect of dilutive securities7
6,344,027
5,059,967
Adjusted weighted average number of ordinary shares used in calculating the diluted earnings per share
1,924,065,918
1,839,753,677
5 Dividends
(a)
Ordinary shares
30 June 2024
30 June 2023
$'000
$'000
Interim dividend FY24
Interim dividend - 2024 Interim dividend for the year ended 30 June 2024 of 2.0 cents per share fully franked
(30 June 2023: 2.0 cents per share fully franked) paid on 5 April 2024
39,717
36,700
Final dividend FY23
Final dividend for the year ended 30 June 2023 of 2.0 cents per share fully franked (30 June 2022: 3.0 cents
per share fully franked) paid on 6 October 2023
36,736
55,030
Total dividend paid
76,453
91,730
(b)
Dividends not recognised at the end of the reporting period
30 June 2024
30 June 2023
$'000
$'000
In addition to the above dividends, since period end the Directors have recommended the payment of a fully
franked final dividend of 5 cents per fully paid ordinary share (30 June 2023: 2.0 cents fully franked). The
aggregate amount of the proposed dividend expected to be paid on 4 October 2024 out of retained earnings at
30 June 2024, but not recognised as a liability at period end, is
99,294
36,700
(c)
Franked dividends
The final dividend recommended after 30 June 2024 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 2025. The franking account balance at the end of the
financial year is $4.9 million (30 June 2023: $ 2.6 million).
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
7 Performance rights and share rights have been included in the determination of diluted earnings per share.
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6 Other cash flow information
(a)
Reconciliation of profit after income tax to net cash inflow from operating activities
30 June 2024
30 June 2023
$'000
$'000
Profit after income tax
422,269
163,508
Depreciation and amortisation
665,079
522,825
Loss on disposal of assets
—
1,686
Share-based payments expense
12,682
12,076
Unrealised foreign exchange loss
4,535
6,418
Amortisation of debt establishment fee and unwind of lease liabilities
3,911
—
Exploration and evaluation costs expensed
31,891
17,527
Impairment loss related to contingent consideration assets
—
13,797
Unwind of discount on provisions
39,702
10,251
Income tax expense
197,523
36,194
Tax Payments
(33,800)
(34,100)
Change in operating assets and liabilities:
(Increase)/decrease in operating receivables
(120,437)
42,950
Increase in inventories
(20,184)
(87,703)
Decrease in operating payables
47,850
48,892
Increase/(decrease) in borrowing costs
2,222
(2,044)
Increase/(decrease) in other provisions
28,188
(16,997)
Net cash inflow from operating activities
1,281,431
735,280
(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.
30 June 2024
30 June 2023
$'000
$'000
Net debt
Cash and cash equivalents
403,303
46,146
Bank loans
(500,000)
(645,000)
US Private Placements
(1,434,179)
(1,131,222)
Lease liability
(95,464)
(57,833)
Net (debt)
(1,626,340)
(1,787,909)
30 June 2024
30 June 2023
$'000
$'000
Net (debt) at the beginning of the year
(1,787,909)
(1,298,113)
Cash (outflow)/inflow
357,157
(522,980)
Bank loan drawdown
(865,764)
(80,000)
Bank loan repayment
705,000
195,000
Foreign exchange rate adjustments8
2,808
(45,831)
Lease liabilities
(37,632)
(35,985)
Net (debt) as at end of the year
(1,626,340)
(1,787,909)
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
8 Effects of exchange rate changes included $2.8 million foreign exchange revaluation on US Private Placements. A hedging arrangement is in place to offset this impact refer
note 16 for details)
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Resource Assets and Liabilities
This section provides information that is relevant to understanding the composition and management of the Group's assets and liabilities.
7 Property, plant and equipment
Freehold land
Plant and
equipment
Total
$'000
$'000
$'000
At 1 July 2023
Cost
26,474
3,692,571
3,719,045
Accumulated depreciation
—
(1,533,389)
(1,533,389)
Net carrying amount
26,474
2,159,182
2,185,656
Year ended 30 June 2024
Carrying amount at the beginning of the year
26,474
2,159,182
2,185,656
Additions
—
495,270
495,270
Amounts acquired in business combinations
53,202
425,001
478,203
Reclassifications9
—
(199,140)
(199,140)
Disposals
—
(1,560)
(1,560)
Depreciation
—
(180,975)
(180,975)
Exchange differences taken to reserve
(176)
(21,975)
(22,151)
Carrying amount at the end of the year
79,500
2,675,803
2,755,303
At 30 June 2024
Cost
79,500
4,720,822
4,800,322
Accumulated depreciation
—
(2,045,019)
(2,045,019)
Net carrying amount
79,500
2,675,803
2,755,303
Included in above
—
486,090
486,090
Assets in the course of construction
—
486,090
486,090
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
9 Total reclassifications during the year mainly driven by Cowal $189 million and Ernest Henry $9 million
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7 Property, plant and equipment (continued)
Freehold land
Plant and
equipment
Total
$'000
$'000
$'000
At 1 July 2022
Cost
26,433
3,123,310
3,149,743
Accumulated depreciation
—
(1,424,726)
(1,424,726)
Net carrying amount
26,433
1,698,584
1,725,017
Year ended 30 June 2023
Carrying amount at the beginning of the year
26,433
1,698,584
1,725,017
Additions
—
574,367
574,367
Reclassification
—
15,976
15,976
Disposal
—
(11,249)
(11,249)
Depreciation
—
(122,642)
(122,642)
Exchange differences taken to reserve
41
4,146
4,187
Carrying amount at the end of the year
26,474
2,159,182
2,185,656
At 30 June 2023
Cost
26,474
3,692,571
3,719,045
Accumulated depreciation
—
(1,533,389)
(1,533,389)
Net carrying amount
26,474
2,159,182
2,185,656
Included in above
Assets in the course of construction
—
610,385
610,385
Recognition and measurement
Cost
Plant and equipment is carried at cost less accumulated depreciation and impairment. Cost equals the amount of cash or cash equivalents paid or the
fair value of the other consideration given at acquisition date and includes expenditure that is directly attributable to the acquisition of the items and an
estimate of future restoration costs specific to the asset. Freehold land is carried at cost.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for
as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit or Loss during the
reporting period in which they are incurred.
Assets in the course of construction consists of all works in progress inclusive of major projects. At project completion, or after production commences,
all aggregated costs of construction are reclassified to producing mines or plant and equipment as appropriate. In the instance where ore is extracted
during the construction phase, sale proceeds are recognised as revenue with appropriate costs of production charged to profit or loss.
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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8 Leases
This note provides information for leases where the Group is a lessee.
The consolidated balance sheet shows the following amounts relating to leases:
30 June 2024
30 June 2023
$'000
$'000
Right-of-use Assets
Plant and Machinery
85,218
53,830
Property
5,661
1,242
Office Equipment
104
108
Total Right-of-use Assets
90,983
55,180
30 June 2024
30 June 2023
$'000
$'000
Lease Liabilities
Current
53,638
22,523
Non-current
41,826
35,310
Total Lease Liabilities
95,464
57,833
The consolidated statement of profit or loss and other comprehensive income shows the following amounts relating to leases:
30 June 2024
30 June 2023
$'000
$'000
Depreciation Charge of Right-of-use Assets
Plant and Machinery
47,117
21,792
Property
2,025
1,370
Office Equipment
53
154
Total Depreciation Charge of Right-of-use Assets
49,195
23,316
30 June 2024
30 June 2023
$'000
$'000
Other Items
Expense relating to short-term leases
2,061
2,894
Interest expense
6,423
2,388
Total Other Items
8,484
5,282
The total cash outflow in the current year was $44.2 million.
The tables below analyse the Group's lease liabilities into relevant maturity groupings based on their contractual maturities.
Less than
Between 1
Between 2
Over 5
Total
Carrying
1 year
and 2 years
and 5 years
years
contractual
amount
$'000
$'000
$'000
$'000
cash flows
$'000
$'000
At 30 June 2024
Lease liabilities
56,601
29,037
12,179
3,316
101,133
95,464
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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9 Mine properties
Mine Properties
$'000
At 1 July 2023
Cost
5,951,629
Accumulated amortisation
(2,854,325)
Net carrying amount
3,097,304
Year ended 30 June 2024
Carrying amount at the beginning of the year
3,097,304
Additions
425,993
Remeasurement of rehabilitation provision
(24,529)
Amounts acquired in business combinations
684,884
Reclassifications10
199,309
Amortisation
(470,498)
Exchange differences taken to reserve
(24,248)
Carrying amount at the end of the year
3,888,215
At 30 June 2024
Cost
8,143,905
Accumulated amortisation
(4,255,690)
Net carrying amount
3,888,215
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
10 Total reclassifications during the year mainly driven by Cowal $189 million and Ernest Henry $9 million.
185 | Evolution Mining Annual Report 2024
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9 Mine properties (continued)
Mine Properties
$'000
At 1 July 2022 - PPA Adjusted11
Cost
5,761,059
Accumulated depreciation
(2,492,597)
Net carrying amount
3,268,462
Year ended 30 June 2023
Carrying amount at the beginning of the year - PPA Adjusted
3,268,462
Additions
283,782
Remeasurement of rehabilitation provision
(30,781)
Amortisation
(402,713)
Reclassifications
(15,713)
Write-off
(10,646)
Exchange differences taken to reserve
4,913
Carrying amount at the end of the year
3,097,304
At 30 June 2023
Cost
5,951,629
Accumulated depreciation
(2,854,325)
Net carrying amount
3,097,304
Recognition and measurement
Mine properties
This expenditure includes net direct costs of construction, borrowing costs capitalised during construction and an appropriate allocation of attributable
overheads.
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.
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
11 Upon revising the provisional fair value of Ernest Henry (acquired 1 January 2022) prior year comparative figures have been restated.
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9 Mine properties (continued)
Recognition and measurement (continued)
Amortisation
The Group uses the units of production basis when amortising mine property 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 property 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.
Units of production method of amortisation
The Group uses the units of production basis when amortising mine property 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 property assets
Ore Reserves and Mineral Resources
The Group estimates its Ore Reserves and Mineral Resources annually at 30 June 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
properties, exploration and evaluation expenditure, 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 2024
(continued)
187 | Evolution Mining Annual Report 2024
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10 Exploration and evaluation expenditure
Exploration and evaluation
expenditure
$'000
At 1 July 2023
Cost
469,904
Net carrying amount
469,904
Year ended 30 June 2024
Carrying amount at the beginning of the year
469,904
Additions
30,836
Reclassifications
(170)
Write-off12
(31,891)
Exchange differences taken to reserve
(5,823)
Carrying amount at the end of the year
462,856
At 30 June 2024
Cost
462,856
Net carrying amount
462,856
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
12 The total write-off during the year mainly driven by Corporate $25.5 million, Mt.Rawdon $1.5 million, Mungari $1.1 million and Red Lake $0.8 million.
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10 Exploration and evaluation expenditure (continued)
Exploration and
evaluation expenditure
$'000
At 1 July 2022
Cost
447,321
Net carrying amount
447,321
Year ended 30 June 2023
Carrying amount at the beginning of the year
447,321
Additions
28,216
Write-off
(6,880)
Exchange differences taken to reserve
1,247
Carrying amount at the end of the year
469,904
At 30 June 2023
Cost
469,904
Net carrying amount
469,904
Recognition and measurement
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. Recoverability of the carrying amount of capitalised exploration and evaluation assets is dependent on
the successful development and commercial exploitation of areas of interest and the sale of minerals or, alternatively, the sale of the respective areas of
interest. 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.
Cash flows associated with exploration and evaluation expenditure expensed are classified as operating activities in the Consolidated Statement of Cash
Flows. Whereas cash flows associated with capitalised exploration and evaluation expenditure are classified as investing activities. Where a decision is
made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and
reclassified to mine development expenditure. No amortisation is charged during the exploration and evaluation phase. Capitalised exploration and
evaluation expenditure is considered to be a tangible asset.
Accounting estimates and judgements
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.
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
189 | Evolution Mining Annual Report 2024
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Capital Structure and Financing
This section provides information on the Group's capital and financial management activities.
11 Cash and cash equivalents
30 June 2024
30 June 2023
$'000
$'000
Current assets
Cash at bank
338,240
46,146
Short term deposits
65,063
—
Total Current assets
403,303
46,146
Recognition and measurement
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.
12 Interest bearing liabilities
30 June 2024
30 June 2023
$'000
$'000
Current liabilities
Bank loans
75,000
345,000
Less: Borrowing costs
(2,111)
(3,727)
Total Current liabilities
72,889
341,273
Non-current liabilities
Bank loans
425,000
300,000
US Private Placements
1,434,179
1,131,222
Less: Borrowing costs
(8,458)
(9,063)
Total Non-current liabilities
1,850,721
1,422,159
For the Northparkes acquisition, the Group raised a new Term Loan Facility, (“Facility G”), of $200m, under the current Syndicated Facility Agreement.
The term of the facility is 5 years with the first repayment due in Q3 of FY25.
The repayment periods, facility size and amounts drawn at 30 June 2024 on each facility are set out below:
Facility Name
Term Date
Facility Size $m
Amount Drawn
$m
Available Amount
$m
Loan facilities and US Private Placements
Revolving Credit Facility – Facility A - $m
12 Oct 2025
$525.0
$0.0
$525.0
Term Loan – Facility F - $m
22 Aug 2027
$300.0
$300.0
$0.0
Term Loan – Facility G - $m
15 Dec 2028
$200.0
$200.0
$0.0
US Private Placement - USD $m
8 Nov 2028
$200.0
$200.0
$0.0
US Private Placement - USD $m
14 Feb 2031
$200.0
$200.0
$0.0
US Private Placement - USD $m
8 Nov 2031
$350.0
$350.0
$0.0
US Private Placement - USD $m
22 Aug 2033
$100.0
$100.0
$0.0
US Private Placement - USD $m
22 Aug 2035
$100.0
$100.0
$0.0
Performance Bond and Guarantee Facilities
Performance Bond – Facility C $m13
30 Nov 2024
$220.0
$213.0
$7.0
Performance Bond – Facility D CAD $m
31 Mar 2027
$150.0
$66.9
$83.1
ANZ Bank Guarantee Facility - $m
31 May 2025
$5.0
$4.4
$0.6
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
13 Subsequent to 30 June 2024 Facility C has been renegotiated to increase facility size to $340.0 million with a term date of 31 July 2028.
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12 Interest bearing liabilities (continued)
(a)
Secured liabilities and assets pledged as security
Lease liabilities are effectively secured as the rights to the leased assets recognised in the financial statements revert to the lessor in the event of
default.
Recognition and measurement
Interest bearing liabilities are initially recognised at fair value less directly attributable transaction costs incurred and subsequently measured at
amortised cost. Gains and losses are recognised in the statement of profit or loss when the liabilities are derecognised.
13 Equity and reserves
(a)
Contributed equity
Movements in ordinary share capital
Ordinary shares are fully-paid and have no par value. They carry one vote per share and the rights to dividends. They bear no special terms or
conditions affecting income or capital entitlements of the shareholders and are classified as equity.
Number of
shares
$'000
Balance at 1 July 2022
1,833,007,683
2,644,103
Shares issued on vesting of performance rights
1,360,692
—
Shares issued under Employee Share Scheme (i)
545,760
—
Shares issued under NED Equity Plan
102,184
—
Balance as at 30 June 2023
1,835,016,319
2,644,103
Balance at 1 July 2023
1,835,016,319
2,644,103
Shares issued on vesting of performance rights
1,717,933
—
Shares issued under Employee Share Scheme
509,017
—
Shares issued under NED Equity Plan
164,767
—
Shares issued under institutional placement
138,157,895
514,611
Shares issued under Share Purchase Plan
10,311,827
31,643
Balance as at 30 June 2024
1,985,877,758
3,190,357
(i) Information relating to the employee share scheme, including details of shares issued under the scheme, is set out in note 29.
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
30 June 2024
30 June 2023
$'000
$'000
Balance at the beginning of the year
(9,113)
29,436
Movement
Gain arising on changes in fair value of hedging instruments designated as cash flow hedges
(31,520)
(16,246)
Income tax related to gain recognised in other comprehensive income during the period
9,456
4,874
Transfer out
Gain reclassified to profit or loss – hedged item has affected profit or loss
8,448
(38,824)
Income tax related to amounts reclassified to profit or loss
(2,534)
11,647
Balance at the end of the year
(25,263)
(9,113)
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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13 Equity and reserves (continued)
(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).
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 2024, the amounts deferred in cost of hedging reserve are all time-period related.
30 June 2024
30 June 2023
$'000
$'000
Balance at the beginning of the year
1,841
1,886
Changes in fair value of the foreign currency basis spread in relation to time period related hedged items during
the period
(2,357)
(3,304)
Income tax related to changes in fair value of the foreign currency basis spread
707
991
Amortisation to profit or loss of changes in fair value of the foreign currency basis spread in relation to time-
period related hedged items
709
3,239
Income tax related to amounts reclassified to profit or loss
(213)
(971)
Balance at the end of the year
687
1,841
(d)
Other reserves
30 June 2024
30 June 2023
Notes
$'000
$'000
Financial assets at FVOCI reserve
(15,617)
(14,491)
Share-based payments reserve
102,242
90,139
Foreign currency translation reserve
(16,066)
32,166
70,559
107,814
Movements:
Financial assets at FVOCI reserve
Balance at the beginning of the year
(14,491)
(588)
Change in fair value of equity investments
17(a)
1,738
(13,903)
Transfer of gain on disposal of equity investments at fair value through other
comprehensive income to retained earnings
(2,864)
—
Balance at the end of the year
(15,617)
(14,491)
Share-based payments reserve
Balance at the beginning of the year
90,139
78,063
Share based payments recognised
12,103
12,076
Balance at the end of the year
102,242
90,139
Foreign currency translation reserve
Balance at the beginning of the year
32,166
22,623
Currency translation differences arising during the year
(48,232)
9,543
Balance at the end of the year
(16,066)
32,166
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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13 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 29 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:
30 June 2024
30 June 2023
$'000
$'000
Balance at the beginning of the year
557,175
485,397
Transfer of gain on disposal of equity investments at fair value through other comprehensive income to retained
earnings
2,864
—
Dividends provided for or paid
(76,453)
(91,730)
Net profit for the period
422,269
163,508
Balance at the end of the year
905,855
557,175
14 Trade and other receivables
30 June 2024
30 June 2023
$'000
$'000
Accrued Revenue
107,296
69,579
Trade receivables
116,688
20,380
GST refundable
14,409
13,230
Prepayments
23,197
11,722
Other receivables
6,537
5,053
Total trade and other receivables
268,127
119,964
Recognition and measurement
Accrued Revenue
Accrued revenue of $107.3 million was recognised at 30 June 2024 (30 June 2023: $69.6 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 and Northparkes, 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
193 | Evolution Mining Annual Report 2024
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14 Trade and other receivables (continued)
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.
15 Trade and other payables
30 June 2024
30 June 2023
$'000
$'000
Current liabilities
Trade creditors and accruals
431,657
296,878
Stamp Duty
97,943
97,943
Other payables
47,402
51,200
Total Current liabilities14
577,002
446,021
Recognition and measurement
Trade creditors and accruals
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.
16 Inventories
30 June 2024
30 June 2023
$'000
$'000
Current
Stores
133,986
131,357
Ore
187,200
104,781
Doré and concentrate
20,328
58,607
Metal in circuit
57,588
38,650
Total current inventories
399,102
333,395
Non-current
Ore
255,063
193,445
Total non-current inventories
255,063
193,445
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 $27.0 million for the year ended 30 June 2024 (30 June 2023: net realisable
value for inventory stockpile was revalued downwards by $11.1 million).
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
14The deferred revenue balance, which amounted to $20.1 million and was included in trade and other payables as at 30 June 2023, has now been presented in the deferred
revenue balance due to the significant increase in the quantum of the balance as at 30 June 2024 as a result of the Triple Flag stream liability. Please refer to Note 22 for
further details.
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17 Financial assets and financial liabilities
(a)
Equity Investments at fair value
30 June 2024
30 June 2023
$'000
$'000
Listed securities - Non-current
Tribune Resources Ltd
36,758
35,654
Musgrave Minerals Ltd
—
6,186
Emmerson Resources Ltd
2,752
2,949
Riversgold Ltd
94
236
Other
24
39
Total Listed securities - Non-current
39,628
45,064
Evolution's investment in Musgrave Minerals Ltd was sold during August 2023 for $6.7 million.
Recognition and measurement
Equity Investments at fair value
Changes in the fair value of equity investments are presented and accumulated in a separate reserve within equity and not through profit or loss. Fair
value has been determined based on quoted market prices at balance date (level 1 valuation methodology). On disposal of these equity investments,
any related balance within the FVOCI reserve is reclassified to retained earnings. These equity instruments are not held for trading but rather intended to
be held over the long-term as strategic investments and the group considers this classification to be more relevant.
(b)
Hedging Instrument
30 June 2024
30 June 2023
$'000
$'000
Cross currency interest rate swaps
Financial assets - current
22
2,426
Financial assets - non-current
88,455
103,737
Financial liability - current
(4,085)
(1,957)
Financial liability - non-current
(14,044)
(5,955)
Total cross currency interest rate swaps
70,348
98,251
Recognition and measurement
Hedging Instruments
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
195 | Evolution Mining Annual Report 2024
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17 Financial assets and financial liabilities (continued)
(b)
Hedging Instrument (continued)
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
30 June 2024
30 June 2023
$'000
$'000
Notional Amount (USD)
Less than 1 year
—
—
1 to 2 years
—
—
2 to 5 years
200,000
—
5 years +
750,000
950,000
Average FX strike rate
0.7166
0.7166
Average (USD) Interest rate
3.7216 %
3.7216 %
Average (AUD) Interest rate
4.4713 %
4.4713 %
Cross Currency Interest Rate Swap
30 June 2024
30 June 2023
$'000
$'000
Hedging instrument
Carrying amount of the hedging instrument assets (liabilities)
70,348
98,251
Cumulative change in fair value used for calculating hedge ineffectiveness
87,725
115,566
Hedged items
Cumulative change in fair value used for calculating hedge ineffectiveness
(90,004)
(125,120)
Balance in cash flow hedge reserve (including cost of hedging reserve) for continuing hedges - (gain) / loss
35,107
10,388
Hedge ineffectiveness recognised in profit or loss - finance cost (gain)/loss
—
(315)
18 Other non-current assets
30 June 2024
30 June 2023
$'000
$'000
Non-current assets -Other
Contingent consideration asset attributable to the Edna May Operation
18,227
20,755
Contingent consideration asset attributable to Tennant Creek
2,790
2,790
Contingent consideration asset attributable to the Cracow Operation
10,286
15,577
Other
1,954
16
Total other non-current assets
33,257
39,138
Recognition and measurement
Contingent consideration assets classified as financial assets are remeasured to fair value with changes in fair value recognised in profit or loss. The fair
values for contingent consideration assets are determined using significant unobservable inputs (level 3 valuation methodology) such as expected future
production, revenues and costs of the disposed operations. The expected cash flows are discounted using a risk-adjusted market rate which takes into
account counterparty credit risk. No fair value gains or losses have been recognised in profit or loss related to these balances during the year.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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19 Other non-current liabilities
30 June 2024
30 June 2023
$'000
$'000
Non-current liabilities - Other
Contingent consideration liability to Newmont Corporation
58,781
57,270
Contingent consideration liability to CMOC
28,409
—
Other
—
6,344
Total Non-current liabilities - Other
87,190
63,614
Recognition and measurement
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 $55.3 million at
30 June 2024. 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.
The Northparkes purchase price includes a contingent payment of up to US$75 million. The Contingent Consideration is based on the following terms:
a
3-years, commencing 1 July 2024 and ending 30 June 2027 (inclusive)
b
Annual payments to CMOC based on three incremental pricing thresholds as below:
i.
Threshold 1: 25% of incremental revenue per pound of payable copper at prices at or above US$ 4.00 per pound (lb) but less than
US$ 4.25 per lb; plus
ii.
Threshold 2: 35% of incremental revenue per pound of payable copper at prices at or above US$ 4.25 per lb but less than US$ 4.50
per lb; plus
iii.
Threshold 3: 45% of incremental revenue per pound of payable copper at prices at or above US$ 4.50 per lb.
c
Total payments under the Contingent Consideration are capped at US$ 75 million.
Evolution has recognised an initial AUD $28.4 million (US$19.1 million) conditional liability at acquisition. Any payments during FY25 will be made from
the provision recognised as part of the acquisition.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
197 | Evolution Mining Annual Report 2024
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20 Provisions
30 June 2024
30 June 2023
$'000
$'000
Current
Employee entitlements
102,134
78,043
Rehabilitation provision
4,667
—
Total Current provisions
106,801
78,043
Non-current
Employee entitlements
10,262
8,259
Rehabilitation provision
487,949
459,746
Other long term provision
4,791
428
Total Non-current provisions
503,002
468,433
Total provisions
609,803
546,476
(a)
Movements in provisions
Movements in each class of provision during the financial year are set out below:
Employee
benefits
Rehabilitation
provisions
Other long term
provisions
Total
$'000
$'000
$'000
$'000
30 June 2024
Carrying amount at the beginning of the year
86,307
459,741
428
546,476
Charged to profit or loss
Provision recognised
8,162
—
4,330
12,492
Unwinding of discount
—
(18,710)
—
(18,710)
Re-measurement of provision
—
9,106
9,106
Amounts recognised in business combinations
17,955
39,475
—
57,430
Exchange differences taken to reserve
(28)
3,004
33
3,009
Carrying amount at the end of the year
112,396
492,616
4,791
609,803
30 June 2023
Carrying amount at the beginning of the year
80,923
482,126
423
563,472
Provision recognised
5,389
—
5
5,394
Unwinding of discount
—
(10,251)
—
(10,251)
Re-measurement of provision
—
(10,954)
—
(10,954)
Amounts recognised in business combinations
—
—
—
—
Exchange differences taken to reserve
(5)
(1,180)
—
(1,185)
Carrying amount at the end of the year
86,307
459,741
428
546,476
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 2024
(continued)
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20 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.
A liability is recognised at present value of rehabilitation costs. An equivalent amount is capitalised as part of the cost of the rehabilitation asset
recognised within Mining Properties (note 9). 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 properties 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
199 | Evolution Mining Annual Report 2024
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21 Deferred tax balances
(a)
Recognised deferred tax balances
30 June 2024
30 June 2023
$'000
$'000
Inventories
34,630
31,983
Equity investments at fair value
5,480
5,009
Exploration and evaluation expenditure
(20,944)
(29,697)
Property, plant and equipment
(109,258)
(123,239)
Mine Properties
(851,183)
(742,860)
Employee benefits
10,589
14,507
Lease liabilities
8,873
3,484
Provisions
134,415
125,045
Gain from derivative financial instruments recognised in equity
10,532
3,116
Other
16,108
12,893
Deferred tax balances from temporary differences
(760,758)
(699,759)
Tax losses carried forward
243,125
200,074
Deferred tax (liabilities)/assets
(517,633)
(499,685)
Deferred tax (liabilities)/assets - Australian entities
(652,160)
(545,179)
Deferred tax assets/(liabilities) - Canadian entity
134,527
45,494
Deferred tax (liabilities)/assets
(517,633)
(499,685)
(b)
Movement in deferred tax balances during the year
Balance at 1
July 2023
Recognised in
profit or loss
Recognised in
equity
FX translation
Balance at 30
June 2024
$'000
$'000
$'000
$'000
$'000
Inventories
31,983
2,721
—
(74)
34,630
Equity investments at fair value
5,009
—
471
—
5,480
Exploration and evaluation expenditure
(29,697)
8,753
—
—
(20,944)
Property, plant and equipment
(123,239)
12,766
—
1,215
(109,258)
Mine Properties
(742,860)
(111,705)
—
3,382
(851,183)
Employee benefits
14,507
(3,918)
—
—
10,589
Lease liabilities
3,484
5,676
—
(287)
8,873
Provisions
125,045
10,168
—
(798)
134,415
Share issue costs
—
—
—
—
—
Tax losses carried forward
200,074
53,710
—
(10,659)
243,125
Gain from derivative financial instruments
recognised in equity
3,116
—
7,416
—
10,532
Other
12,893
(2,309)
—
5,523
16,108
Deferred tax assets/ (liabilities)
(499,685)
(24,138)
7,887
(1,698)
(517,633)
(c)
Unrecognised deferred tax assets
The Group has unrecognised available tax losses of $534.7 million as at 30 June 2024 (30 June 2023: $539.2 million). For Canada, $530.2 million are
unrecognised temporary differences with $132.5 million as a deferred tax asset. For Australia, $4.6 million tax losses and a deferred tax asset of $1.4
million have not been recognised.
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
Evolution Mining Annual Report 2024 | 200
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21 Deferred tax balances (continued)
Accounting policy
Deferred tax is accounted for using the balance sheet liability method. Temporary differences are differences between the tax base of an asset or liability
and its carrying amount in the statement of financial position. The tax base of an asset or liability is the amount attributed to that asset or liability for tax
purposes.
Deferred tax liabilities are recognised for taxable temporary differences. Deferred tax assets are recognised for deductible temporary differences, carry-
forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised.
Deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them:
•
Arise from the initial recognition of an asset or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss
•
Are associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred tax assets are reassessed at
each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset
to be recovered.
Deferred tax assets and liabilities are measured based on the expected manner of recovery of the carrying value of an asset or liability. Deferred tax
assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised, or the liability is settled, based on
tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred taxes attributable to amounts recognised directly in equity are also recognised directly in equity.
22 Deferred revenue
30 June 2024
30 June 2023
$'000
$'000
Balance at the beginning of the year (i)
20,099
—
Deferred revenue recognised
—
20,099
Acquisition of Northparkes
600,000
—
Finance costs
20,992
—
Revenue recognised in relation to stream
(34,803)
—
Settlement during the year
(20,099)
—
Balance at the end of the year
586,189
20,099
Current
38,065
20,099
Non-current
548,124
—
Balance at the end of the year
586,189
20,099
(i) Opening balance relates to advance payments received on concentrate sales at Red Lake during FY23. Balance was settled during the year.
On 15 December 2023, the Group completed the acquisition of 80% interest in Northparkes Copper-Gold Mine (“Northparkes”) from CMOC. Refer to
note 27 Business combinations for further details. As part of the acquisition,the Group assumed CMOC’s obligations under the Triple Flag Metal
Purchase and Sale Agreement (“Streaming Arrangement”). As per the initial Streaming Agreement between CMOC and Triple Flag, CMOC received an
upfront cash payment US$550 million. The upfront payment is not repayable, and the Group is obligated to deliver gold and silver based on Northparkes’
production. Under the terms of the agreement, Triple Flag is entitled to:
•
deliveries of gold equal to 54.0% of payable gold production from Northparkes (67.5% of 80% attributable interest) until 630,000 ounces have
been delivered to Triple Flag, and 27.0% of payable gold production thereafter (33.75% of 80% attributable interest).
•
deliveries of silver equal to 80.0% of payable silver production from Northparkes (100.0% of 80% attributable interest) until 9,000,000 ounces
have been delivered to Triple Flag, and 40.0% of payable silver production thereafter (50.0% of 80% attributable interest).
The Group is entitled to ongoing cash payments from Triple Flag equivalent to 10% of the prevailing spot prices for the ounces of gold and silver
delivered. At the date of the acquisition, the streaming liability was fair valued at $600.0 million (US$403.6 million) and accounted for as deferred
revenue. Deferred revenue is increased as interest expense is recognised based on the discounting of the cash flows arising from the expected delivery
of ounces under the streaming agreement. The amount by which the deferred revenue balance is reduced and recognised into revenue is based on the
ounces of gold and silver delivered under the stream, similar to the units-of-production method. During the year, the Group delivered 12,388 ounces of
gold and 159,441 ounces of silver to Triple Flag.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
201 | Evolution Mining Annual Report 2024
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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.
23 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:
30 June 2024
30 June 2023
$'000
$'000
Financial Assets
Cash and cash equivalents
403,303
46,146
Trade and other receivables at amortised cost
160,831
40,257
Trade and other receivables at FVTPL
107,296
79,707
Equity investments at FVOCI
39,628
45,064
Contingent consideration assets
33,257
39,138
Derivative financial instruments
88,477
106,163
832,792
356,475
Financial Liabilities
Trade and other payables
577,002
446,020
Interest bearing liabilities
1,923,610
1,763,432
Contingent consideration liabilities
87,190
57,270
Derivative financial instruments
18,129
7,912
2,605,931
2,274,634
(a)
Derivatives
Derivatives are only used for economic hedging purposes and not as speculative investments. No new cross currency interest rate swaps have been
entered into during the year.
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 2024
(continued)
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23 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
(i)
Foreign exchange risk
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 2024, the Group held US$8.4 million (30 June 2023: US$9.6 million) in US dollar currency bank accounts, C$25.5 million in Canadian
dollar currency bank account (30 June 2023: C$18.4 million), outstanding receivables of US$162.6 million relating to Ernest Henry (30 June 2023:
US$85.9 million).
The Group also recognised a USD denominated contingent consideration liability being US$50.5 million (30 June 2023: US$39.1 million as part of the
Red Lake purchase consideration (note 24). An increase/decrease in AUD:USD foreign exchange rates of 5% will result in $9.9 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 $87.9 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 2024 covering
sales of 100,000 oz of gold at an average forward price of $3,205 per ounce (30 June 2023: 120,000 oz at an average price of $3,185 per ounce).
The Group is also exposed to market share price movements on its equity investments at fair value. Refer to note 17 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 2024 was $268.1 million (30 June 2023: $120 million). Cash and cash equivalents at 30 June 2024 were $403.3
million (30 June 2023: $46.1 million).
(d)
Interest rate risk
The Group is exposed to interest rate risk through its long term borrowings comprising $300.0 million on the Term Loan Facility ("Facility F") and $
$200.0 million on the Term Loan Facility ("Facility G"). 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 $5.0m 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
203 | Evolution Mining Annual Report 2024
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Financial Report
23 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 $5.3 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 $5.7 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:
30 June 2024
30 June 2023
$'000
$'000
Existing debt facilities - Undrawn
Expiring within one year
—
—
Expiring beyond one year
525,000
670,000
525,000
670,000
(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 2024
(continued)
Evolution Mining Annual Report 2024 | 204
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23 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 2024
Non-derivatives
Trade and other payables
577,002
—
—
—
577,002
577,002
Bank loans including interest
79,760
154,206
244,594
—
478,560
500,000
US Private Placement
62,605
62,605
143,916
937,815
1,206,941
1,434,179
Lease liabilities
56,601
29,037
12,179
3,316
101,133
95,464
775,968
245,848
400,689
941,131
2,363,636
2,606,645
Derivatives
Derivative instruments – CCIRS:
70,348
- Inflow
53,374
53,374
457,782
1,296,373
1,860,903
- Outflow
(59,624)
(59,347)
(446,667)
(1,245,494)
(1,811,132)
(6,250)
(5,973)
11,115
50,879
49,771
70,348
At 30 June 2023
Non-derivatives
Trade and other payables
466,120
—
—
—
466,120
466,120
Bank loans including interest
366,390
53,100
265,500
—
684,990
645,000
US Private Placement
47,905
47,905
143,715
1,137,815
1,377,340
1,131,222
Lease liabilities
22,611
16,813
16,135
4,025
59,584
57,833
903,026
117,818
425,350
1,141,840
2,588,034
2,300,175
Derivatives
Derivative instruments – CCIRS:
98,252
- Inflow
(43,914)
(53,326)
(159,977)
(1,645,916)
(1,903,133)
—
- Outflow
48,333
59,624
178,172
1,573,335
1,859,464
—
4,419
6,298
18,195
(72,581)
(43,669)
98,252
(f)
Risk management
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
205 | Evolution Mining Annual Report 2024
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Sustainability Report
Financial Report
24 Contingent liabilities and contingent assets
(a) Contingent assets
(i)
Contingent consideration receivable
The Group recognised contingent consideration assets that arose from the past business divestments.
(b) Contingent liabilities
The Group had contingent liabilities at 30 June 2024 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 2024. The total of these guarantees at 30 June 2024 was $391.7 million with various financial institutions (30 June
2023: $180.7 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
2024 while the mine is on care and maintenance while the sale process is ongoing.
(iii)
Red Lake and Northparkes
The Group recognised contingent consideration liabilities on the purchase consideration of Red Lake and Northparkes amounting to $58.8 million and
28.4 million respectively
25 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:
30 June 2024
30 June 2023
$'000
$'000
Within one year
8,671
9,193
Later than one year but not later than five years
29,820
29,070
Later than five years
34,245
43,602
72,736
81,865
(ii)
Capital commitments
The Group has the following capital commitments in relation to capital projects and joint arrangement requirements at each of the sites.
30 June 2024
30 June 2023
$'000
$'000
Within one year
142,275
135,731
Later than one year but not later than five years
8,000
4,341
150,275
140,072
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
Evolution Mining Annual Report 2024 | 206
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25 Commitments (continued)
(b) Gold delivery commitments
Australia
Gold for
physical delivery
oz
Average
contracted sales
price $/oz
Value of
committed sales
$'000
At 30 June 2024
Within one year
50,000
3,156
157,800
Later than one year but not greater than five years
50,000
3,254
162,700
100,000
3,205
320,500
At 30 June 2023
Within one year
20,000
3,085
61,700
Later than one year but not greater than five years
100,000
3,205
320,500
120,000
3,185
382,200
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.
26 Events occurring after the reporting period
On 29 July 2024 Ramelius Resources announced that a decision had been made to place Edna May on care and maintenance once processing of
existing stockpiles is completed. Included in the accounts at 30 June 2024 is an $18.2 million contingent consideration asset attributable to the Edna May
Operation (refer to note 18 Other non-current assets). Evolution will assess the future recoverability of the remaining amount in the half-year financial
statements for FY25.
No other 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.
Refer to note 5 - Dividends for the final dividend recommended since the end of the reporting period.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
207 | Evolution Mining Annual Report 2024
Annual Report
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Financial Report
Other Disclosures
This section covers additional financial information and mandatory disclosures.
27 Business combinations
(i)
Summary of acquisition
On 15 December 2023, the Group acquired 80% interest in Northparkes Copper-Gold mine to add another long life asset to its portfolio. Sumitomo Metal
Mining and Sumitomo Corporation ("Sumitomo entities") retained their 20% interest in the Northparkes JV. Under the Transaction structure, The Group
acquired all the shares in CMOC's Australian subsidiary, CMOC Mining Pty Ltd.
The Group assumed the obligations of CMOC Limited as guarantor under the Triple Flag Metal Purchase and Sale Agreement ("Triple Flag Stream"),
under which the Group will deliver a percentage of its attributable gold and silver production from Northparkes to Triple Flag over the operation.
The transaction was funded by a A$525 million fully underwritten institutional placement and a new A$200 million 5-year Term Debt Facility. In addition to
the Placement, the Group also undertook a non-underwritten share purchase plan for Group's eligible retail shareholders which was used to assist with
integration costs related to the Transaction which closed on 30 January 2024 and raised $31.6 million.
Details of the purchase consideration for the net assets acquired are as follows:
$'000
Purchase consideration
Cash paid on 15 December 2023
603,302
Final working capital adjustment paid on 17th January 2024
32,753
Contingent consideration
28,409
Total
664,464
Refer to note 19 for further details on contingent consideration.
Provisional fair values of assets and liabilities acquired are as follows.
Provisional Fair Values at 30
June 2024
Provisional Fair Values at
31 December 2023
$'000
$'000
Net assets acquired
Cash and cash equivalents
82,298
82,298
Trade and other receivables
48,814
48,785
Inventories
69,273
65,748
Property, plant and equipment
478,203
399,792
Mine development and exploration
684,884
769,649
Other non-current assets
336
336
Rehabilitation provision
(39,475)
(39,475)
Other provisions
(17,955)
(17,955)
Trade and other payables
(41,774)
(44,574)
Other liabilities
(140)
(140)
Deferred revenue
(600,000)
(600,000)
Total
664,464
664,464
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
Evolution Mining Annual Report 2024 | 208
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27 Business combinations (continued)
(ii)
Outflow of cash to acquire subsidiary
AUD
$'000
Outflow of cash to acquire subsidiary
Total purchase price payment paid in cash
603,302
Final working capital adjustment
32,753
Less: cash acquired
(82,298)
Total outflow of cash
553,757
(iii)
Acquisition and Integration costs
Acquisition and integration costs of $78.6 million were incurred for Northparkes and included in the statement of profit or loss. Included in this is $50.9
million of stamp duty costs paid.
(iv)
Revenue and profit contribution
The acquired business contributed revenues of $288.0 million and net profit of $86.3 million to the group for the period 15 December 2023 to 30 June
2024. If the acquisition had occurred on 1 July 2023, consolidated revenue and consolidated profit after tax for the year ended 30 June 2024 would have
been $3,385.4 million and $439.5 million respectively.
28 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 32.
(c)
Non-executive directors and key management personnel compensation
30 June 2024
30 June 2023
$
$
Short-term employee benefits
8,558,066
7,753,988
Leave entitlement
(123,502)
148,750
Post-employment benefits
261,874
232,512
Share-based payments
9,807,651
8,892,439
18,504,089
17,027,689
Detailed remuneration disclosures are provided in the remuneration report on pages 18-36.
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:
30 June 2024
30 June 2023
$
$
Related party transactions
International Mining & Finance Corp
203,705
248,159
Jason Attew
179,964
219,126
Total
383,669
467,285
* Payment to International Mining & Finance Corp includes $43,705 expense reimbursements and payment to Jason Attew includes $8,714 expense reimbursements.
Expenses were mostly related to travel.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
209 | Evolution Mining Annual Report 2024
Annual Report
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Financial Report
29 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 last refreshed at the Annual General Meeting on 23 November 2023, and permits the Group, at the discretion of the Directors, to grant both
Options and Performance Rights over unissued ordinary shares of the Group to eligible Directors and members of staff as specified in the plan rules.
(ii)
Non-Executive Director Equity Plan (NEDEP)
The NEDEP was established and 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.
(b)
Recognised share based payment expenses
30 June 2024
30 June 2023
$'000
$'000
Expense arising from equity settled share based payment transactions recognised in profit and loss
12,682
12,893
Summary and movement of share based payment plans
The following table illustrates the number and movements in, performance rights issued during the year.
2024 Number
2023 Number
Outstanding balance at the beginning of the year
24,031,910
16,190,517
Performance rights granted during the period
13,857,184
16,660,277
Vested during the period
(1,404,519)
(1,395,153)
Forfeited during the period
(5,384,602)
(7,423,731)
Outstanding balance at the end of the year
31,099,973
24,031,910
The following table illustrates the number and movements in, Share Rights issued during the year.
2024 Number
2023 Number
Outstanding balance at the beginning of the year
164,767
102,184
Share Rights granted
118,870
164,767
Vested
(164,767)
(102,184)
Lapsed
—
—
Outstanding balance at the end of the year
118,870
164,767
There were 118,870 Share Rights granted during the 2024 financial year. Provided the NEDs remain directors of the Group, Share Rights will vest and
automatically exercise 12 months after the grant date of 24 November 2023 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 2026. 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 2026.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
Evolution Mining Annual Report 2024 | 210
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29 Share-based payments (continued)
(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 2026 (Evolution AISC) compared to the AISC performance ranking of the Peer
Group Companies for the same period (Peer Group AISC).
(iv)
Growth in Ore Reserves per Share
The growth in Ore Reserves per share (non-market-based condition) is 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 2022, to the Ore Reserves as at 31 December 2025 on a per share basis, with
testing to be performed at 30 June 2026.
The following tables list the inputs to the models used for the Performance Rights granted for the period:
Relative TSR
Absolute TSR
Relative AISC
Growth in Ore
Reserves
September 2023 Performance Rights issue
Number of rights issued
10,989,925
10,989,925
10,989,925
10,989,925
Spot price ($)
3.76
3.76
3.76
3.76
Risk-free rate (%)
3.83%
3.83%
3.83%
3.83%
Term (years)
2.9 years
2.9 years
2.9 years
2.9 years
Volatility (%)
43%
43%
43%
43%
Dividend yield (%)
2.83%
2.83%
2.83%
2.83%
Fair value at grant date ($)
2.56
1.89
3.47
3.47
November 2023 Performance Rights issue*
Number of rights issued
1,946,670
1,946,670
1,946,670
1,946,670
Spot price ($)
3.75
3.75
3.75
3.75
Risk-free rate (%)
4.17%
4.17%
4.17%
4.17%
Term (years)
2.6 years
2.6 years
2.6 years
2.6 years
Volatility (%)
42%
42%
42%
42%
Dividend yield (%)
2.88%
2.88%
2.88%
2.88%
Fair value at grant date ($)
2.49
1.85
3.48
3.48
February 2024 Performance Rights issue
Number of rights issued
790,829
790,829
790,829
790,829
Spot price ($)
2.99
2.99
2.99
2.99
Risk-free rate (%)
3.88%
3.88%
3.88%
3.88%
Term (years)
2.5 years
2.5 years
2.5 years
2.5 years
Volatility (%)
41%
41%
41%
41%
Dividend yield (%)
2.92%
2.92%
2.92%
2.92%
Fair value at grant date ($)
1.92
1.02
2.78
2.78
* November 2023 performance rights related to the Executive Chair and the Chief Executive 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
211 | Evolution Mining Annual Report 2024
Annual Report
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Financial Report
29 Share-based payments (continued)
Recognition and measurement (continued)
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or
service conditions are fulfilled (“the vesting period”).
The charge to the Statement of Profit or Loss for the period is the cumulative amount as calculated above less the amounts already recognised in
previous periods. There is a corresponding entry to equity.
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.
30 Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, Evolution Mining Limited, its related
network firms and non-related audit firms. Also included are fees paid or payable for non-audit services by non PricewaterhouseCoopers audit firms,
although these firms do not provide audit services to Evolution Mining Limited.
(a)
PricewaterhouseCoopers
2024 $
2023 $
Audit and other assurance services
Audit and review of financial statements
1,344,600
1,028,400
Other assurance services
6,360
22,960
Total remuneration for audit and other services
1,350,960
1,051,360
Other services
Tax compliance and advisory services
—
64,800
Sustainability advisory services
118,900
—
Total remuneration for taxation services
118,900
64,800
Total remuneration of PricewaterhouseCoopers
1,469,860
1,116,160
(b)
Non-PricewaterhouseCoopers related audit firms
2024 $
2023 $
Audit and other assurance services
Other assurance services
Internal audit services
494,254
173,354
Other assurance services
—
136,620
Total remuneration for audit and other assurance services
494,254
309,974
Taxation services
Tax compliance services
85,465
81,400
Tax advisory services
291,153
54,890
Total remuneration for taxation services
376,618
136,290
Total remuneration of non-PricewaterhouseCoopers audit firms
870,872
446,264
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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31 Deed of cross guarantee
Evolution Mining Limited and those entities identified in note 32 are parties to a deed of cross guarantee under which each company guarantees the
debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and
Directors' Report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission.
The companies identified above represent a 'closed group' for the purposes of the Class Order, and as there are no other parties to the deed of cross
guarantee that are controlled by Evolution Mining Limited, they also represent the 'extended closed group'.
The Consolidated Balance Sheet, Consolidated Statement of Profit or Loss and Other Comprehensive Income, and summary of movements in
consolidated retained earnings for the year ended 30 June 2024 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
213 | Evolution Mining Annual Report 2024
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Financial Report
32 Interests in other entities
(a)
Significant investments in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following principal subsidiaries in accordance with the
accounting policy described below:
Equity holding
Name of entity
Country of
Incorporation
Class of
shares
2024 %
2023 %
Conquest Mining Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Mt Rawdon Operations Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Evolution Mining (Connors Arc) Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Evolution Mining (Cowal) Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Evolution Mining Mungari Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Toledo Holding (Ausco) Pty Ltd (i)
Australia
Ordinary
100%
100%
Evolution Mining (Mungari East) Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Evolution Mining (Phoenix) Pty Limited (i) (ii)
Australia
Ordinary
100%
100%
Hayes Mining Pty Ltd (i)
Australia
Ordinary
100%
100%
Gilt-Edged Mining Pty Limited
Australia
Ordinary
100%
100%
EKJV Management Pty Ltd
Australia
Ordinary
100%
100%
Kundana Gold Pty Ltd
Australia
Ordinary
100%
100%
Toledo Tenement Holdings Pty Ltd
Australia
Ordinary
100%
100%
Evolution Mining (Aurum 2) Pty Ltd (i) (ii)
Australia
Ordinary
100%
100%
Evolution Mining Finance Pty Limited
Australia
Ordinary
100%
100%
Ernest Henry Mining Pty Ltd
Australia
Ordinary
100%
100%
Evolution Mining (Canada Holdings) Ltd (ii)
Canada
Ordinary
100%
100%
Evolution Mining Management Services (Canada) Ltd (ii)
Canada
Ordinary
100%
100%
Evolution Mining Gold Operations Ltd (ii)
Canada
Ordinary
100%
100%
Evolution Red Lake Nominee Ltd (ii)
Canada
Ordinary
100%
100%
Rubicon Nevada Corp
USA
Ordinary
100%
100%
BNG Alaska Corp
USA
Ordinary
100%
100%
Exploration and Development (Canada) Ltd
Canada
Ordinary
100 %
— %
Evolution Mining (CUE) PTY LTD
Australia
Ordinary
100 %
— %
Evolution Mining (Northparkes) Pty Ltd
Australia
Ordinary
100 %
— %
Evolution Mining (HK) Limited
Hong Kong
Ordinary
100 %
— %
Northparkes Mining Services Pty Ltd
Australia
Ordinary
100 %
— %
Mt Rawdon Pumped Hydro Hold Pty Ltd
Australia
Ordinary
50 %
— %
Mt Rawdon Pumped Hydro Hold Trust
Australia
Ordinary
n/a
— %
Mt Rawdon Pumped Hydro Pty Ltd
Australia
Ordinary
50 %
— %
(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 31 Deed of cross guarantee.
(ii) These entities are considered to be the material controlled entities of the Group. Their principal activities are identifying, developing and operating
gold and gold-copper related projects.
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
Evolution Mining Management Services Pty Ltd
Australia
Ordinary
100%
100%
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33 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.
(a)
Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
30 June 2024
30 June 2023
$'000
$'000
Balance sheet
Assets
Current assets
994,229
564,360
Non-current assets
4,821,922
4,173,433
Total assets
5,816,151
4,737,793
Liabilities
Current liabilities
361,045
464,400
Non-current liabilities
2,217,026
1,639,811
Total liabilities
2,578,071
2,104,211
Net assets
Shareholders' equity
3,238,080
2,633,582
Issued capital
3,190,357
2,644,103
Financial assets at FVOCI reserve
(15,617)
(14,491)
Share based payment reserve
102,242
90,139
Cash flow reserve
(25,187)
(9,113)
Cost of hedging reserve
611
1,840
Other
—
—
Accumulated profits - post 30 June 2022
82,940
18,370
Accumulated losses- pre 30 June 2022
(97,266)
(97,266)
Total equity
3,238,080
2,633,582
Statement of Profit or Loss and Other Comprehensive Income
Profit for the year
139,010
73,400
Other comprehensive (loss)/Income
(6,324)
(42,954)
Total comprehensive income/(expense)
132,686
30,446
Dividends announced during the year are paid out of a quarantined separate reserve isolated post 30 June 2022.
(b)
Guarantees entered into by the parent entity
The parent entity has provided bank guarantees, as detailed in note 24.
(c)
Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2024. For information about guarantees given by the parent entity, please see
above.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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34 Summary of material accounting policy information
(a)
Basis of preparation
This financial report is a general purpose financial report for the year ended 30 June 2024, 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 equity investments which have been
measured at fair value.
The financial report has been presented in Australian (AU) dollars and all values are rounded to the nearest AU$1,000 (AU$'000) unless otherwise
stated.
The accounting policies have been consistently applied by all entities included in the Group and are consistent with those applied in the prior year except
for changes arising from adoption of new accounting standards which have been separately disclosed.
(b)
Principles of consolidation
The consolidated financial statements include the financial statements of the parent entity, Evolution Mining Limited, and its controlled entities (referred
to as 'the Consolidated Entity' or 'the Group' in these financial statements). A list of significant controlled entities (subsidiaries) is presented in note 32.
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)
Foreign currency translation
(i)
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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
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34 Summary of material accounting policy information (continued)
(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.
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.
there is an economic relationship between the hedged item and the hedging instrument;
b.
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
c.
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.
35 New accounting standards
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2024 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.
Evolution Mining Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
(continued)
217 | Evolution Mining Annual Report 2024
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Name of Entity
Type of Entity
Trustee,
partner or
participant
in JV
% of
share
captial
Country of
incorporation
Australian
resident or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
Evolution Mining Limited
Body Corporate
—
100
Australia
Australia
n/a
Conquest Mining Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Mt Rawdon Operations Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Connors Arc) Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Cowal) Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Mungari) Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Toledo Holding (Ausco) Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Mungari East) Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Phoenix) Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Hayes Mining Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Gilt-Edged Mining Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
EKJV Management Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Kundana Gold Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Toledo Tenement Holdings Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Aurum 2) Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining Finance Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Ernest Henry Mining Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Canada Holdings) Ltd (i)
Body Corporate
—
100
Canada
Australia
n/a
Evolution Mining Management Services (Canada) Ltd (i)
Body Corporate
—
100
Canada
Australia
n/a
Evolution Mining Gold Operations Ltd (i)
Body Corporate
—
100
Canada
Australia
n/a
Evolution Red Lake Nominee Ltd (i)
Body Corporate
—
100
Canada
Australia
n/a
Rubicon Nevada Corp Nevada (i)
Body Corporate
—
100
USA
Australia
n/a
BNG Alaska Corp (i)
Body Corporate
—
100
USA
Australia
n/a
Evolution Mining Exploration and Development
(Canada) Ltd (i)
Body Corporate
—
100
Canada
Australia
n/a
Evolution Mining (CUE) Pty Limited
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (Northparkes) Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Evolution Mining (HK) Limited
Body Corporate
—
100
Hong Kong
Australia
n/a
Northparkes Mining Services Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
Mt Rawdon Pumped Hydro Hold Pty Ltd
Body Corporate
Trustee
50
Australia
Australia
n/a
Mt Rawdon Pumped Hydro Hold Trust
Trust
—
n/a
n/a
n/a
n/a
Mt Rawdon Pumped Hydro Pty Ltd
Body Corporate
—
50
Australia
Australia
n/a
(i) This disclosure is made solely for the purposes of, in accordance with and as a result of the requirements imposed by the Corporation Act and is not
representative, conclusive or determinative for Australian tax purposes of the central management and control of these entities.
The Canadian and USA entities are also tax resident of their respective country of incorporation. These companies have met their filing obligations in
their country of incorporation.
Evolution Mining Limited
Consolidated Entity Disclosure Statement
As at 30 June 2024
Evolution Mining Management Services Pty Ltd
Body Corporate
—
100
Australia
Australia
n/a
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In the Directors' opinion:
(a)
the consolidated financial statements and notes set out on pages 40 to 88 are in accordance with the Corporations Act 2001, including:
(i)
complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
(ii)
giving a true and fair view of the consolidated entity's financial position as at 30 June 2024 and of its performance for the year ended
on that date, and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
(c)
The consolidated entity disclosure statement on page 89 is true and correct
(d)
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 31 will be able to meet any obligations of the deed of cross guarantee described in
note 31.
Note 34(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
Managing Director and Chief Executive Officer
Non-Executive Director
Sydney
14 August 2024
Evolution Mining Limited
Directors' Declaration
For the year ended 30 June 2024
219 | Evolution Mining Annual Report 2024
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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.
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:
(a)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
x
the consolidated balance sheet as at 30 June 2024
x
the consolidated statement of changes in equity for the year then ended
x
the consolidated statement of cash flows for the year then ended
x
the consolidated statement of profit or loss and other comprehensive income for the year then
ended
x
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
x
the consolidated entity disclosure statement as at 30 June 2024
x
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.
91
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Our audit approach
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.
Audit Scope
x
Our audit focused on where the Group made subjective judgements; for example, significant
accounting estimates involving assumptions and inherently uncertain future events.
Key audit matters
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
and Risk Committee.
Key audit matter
How our audit addressed the key audit matter
Acquisition of 80% interest in Northparkes Copper-
Gold Mine (Refer to note 27) [$664 million]
The Group acquired an 80% interest in the Northparkes
Copper-Gold mine (Northparkes) from CMOC Group
Limited (CMOC) on 15 December 2023. As part of the
acquisition, the Group acquired the deferred revenue
stream liability from CMOC to deliver a specified portion
of Northparkes’ gold and silver production to Triple Flag
Precious Metals. The total purchase consideration is
$664m consisting of initial cash payments of $636m,
which include a working capital adjustment of $33m,
and a copper price linked contingent consideration with
a valuation of $28m as at 30 June 2024.
The acquisition of a business is complex and Australian
Accounting Standards require the Group to identify all
assets and liabilities of Northparkes and estimate the
fair value of the acquired assets and liabilities at the
date of acquisition. The fair value of the acquired
Our procedures included the following, amongst others:
x
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.
x
Assessed the provisional fair values of
acquired assets and liabilities recognised,
including:
o
Evaluated the objectivity,
competence and capabilities of the
Group’s external valuation expert
involved in estimating the fair value
of certain identifiable assets and
liabilities acquired. We further
obtained an understanding of the
work performed by the expert and
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Key audit matter
How our audit addressed the key audit matter
assets and liabilities may be significantly different to
the historical cost.
The provisional fair values of the assets and liabilities
acquired were determined using various valuation
methods, which were applied according to the assets
and liabilities being measured. The Group was assisted
by an external valuation expert in determining the fair
value of certain assets and liabilities acquired. The
Group also engaged an external expert to assess the
tax implications of the acquisition.
The acquisition of Northparkes mine is a key audit
matter because it was a significant transaction for the
year given the financial and operational impacts on the
Group. In addition, the Group made significant and
complex judgements when accounting for the
acquisition.
evaluated the appropriateness of
the conclusions reached.
o
Read the external valuation report
and worked with our valuations
experts to assess the key
assumptions used in valuing certain
identifiable assets and liabilities
acquired.
o
Evaluated the valuation methodology
used by the Group’s valuation expert
in determining the fair values of plant
and equipment, land and buildings,
mine development and deferred
revenue stream liability.
o
Assessed the appropriateness of the
valuation methodologies and key
assumptions used by the Group on
which the provisional fair values of
the identifiable assets and liabilities
acquired were based, including the
contingent consideration liability.
o
Evaluated the completeness and
accuracy of the underlying data
supporting the significant judgements
and estimates used by the Group.
o
Agreed the amount of the purchase
consideration paid to the transaction
agreement and bank statements.
x
Evaluated the objectivity, competence and
capabilities of the Group’s external expert
involved in assessing the tax implications of
the acquisition and tax positions. Worked with
our tax expert to assess the reasonability of
the tax conclusions reached.
x
Assessed the reasonableness of the business
combination disclosures in note 27 in light of
the requirements of Australian Accounting
Standards.
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Key audit matter
How our audit addressed the key audit matter
Rehabilitation Provision (Refer to note 20)
[$492 million]
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 is 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.
To assess the Group’s rehabilitation obligations, we
performed the following procedures, amongst others:
x
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.
x
Developed an understanding of and tested a
sample of the relevant control the Group has in
place to estimate the rehabilitation provision.
x
Where experts were engaged by the Group,
we evaluated the objectivity, competence and
capabilities of these experts.
x
Developed an understanding of and assessed
the appropriateness of the significant
assumptions and key data used to develop the
closure and rehabilitation provision regarding
applicable regulatory and legislative
requirements.
x
Evaluated the reasonableness of the expected
timing of rehabilitation activities against the
closure and rehabilitation plan.
x
Tested the mathematical accuracy of the
calculations included in the rehabilitation
provision models.
x
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.
x
Assessed the reasonableness of the note
disclosures in note 20 in light of the
requirements of Australian
Accounting Standards.
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How our audit addressed the key audit matter
.
Other information
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 2024, 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 Directors' 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 in accordance
with Australian Accounting Standards and the Corporations Act 2001 including giving a true and fair
view and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that 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
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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.
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 the directors’ report for the year ended 30 June
2024.
In our opinion, the remuneration report of Evolution Mining Limited for the year ended 30 June 2024
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.
PricewaterhouseCoopers
Brett Entwistle
Sydney
Partner
14 August 2024
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Financial Report
Capital (as at 16 September 2024)
Share Capital
1,989,217,473
Ordinary shareholders
29,831
Shareholdings with less than a marketable parcel of $500 worth of ordinary shares
1,084
Market price (closing price on the Australian Securities Exchange as at 16 September 2024)
A$4.50
Substantial Shareholders (as at 28 August 2024)
Fully Paid Ordinary Shares
Number
%
Australian Super
296,787,954
14.9
Van Eck Global
177,161,313
8.9
Fidelity Worldwide Investment
137,499,200
6.9
State Street Corporation
109,479,908
5.5
The Vanguard Group Inc
106,983,960
5.4
Total
827,912,335
41.3
Distribution of Fully Paid Shares (as at 16 September 2024)
Range
Securities
%
No. of Holders
%
100,001 and Over
1,808,656,684
90.92
262
0.88
10,001 to 100,000
116,937,624
5.88
4,561
15.29
5,001 to 10,000
29,761,766
1.50
3,983
13.35
1,001 to 5,000
29,296,287
1.47
11,047
37.03
1 to 1,000
4,565,112
0.23
9,978
33.45
Total
1,989,217,473
100
29,831
100
Unmarketable Parcels
38,185
0.00
1,084
3.63
The disclosed number of ordinary shares held by substantial shareholders may not be equal to the actual number of ordinary shares held as at 28 August 2024 as only
movements of at least 1% are required to be notified to the Australian Securities Exchange.
Shareholder information
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Twenty Largest Shareholders (as at 16 September 2024)
Fully Paid Ordinary Shares
Current balance
Issued capital %
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
703,717,036
35.38
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
600,438,021
30.18
3
CITICORP NOMINEES PTY LIMITED
248,305,707
12.48
4
NATIONAL NOMINEES LIMITED
41,487,463
2.09
5
BNP PARIBAS NOMINEES PTY LTD
30,845,626
1.55
6
BNP PARIBAS NOMS PTY LTD
27,588,429
1.39
7
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
17,889,037
0.90
8
BNP PARIBAS NOMINEES PTY LTD
9,807,218
0.49
9
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
9,606,199
0.48
10
ROXI PTY LIMITED
7,336,992
0.37
11
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
7,270,710
0.37
12
CITICORP NOMINEES PTY LIMITED
6,839,605
0.34
13
EQUITY PLAN SERVICES PTY LTD
5,432,067
0.27
14
PACIFIC CUSTODIANS PTY LIMITED
5,222,659
0.26
15
BNP PARIBAS NOMINEES PTY LTD
4,395,377
0.22
16
BNP PARIBAS NOMINEES PTY LTD
4,223,781
0.21
17
NETWEALTH INVESTMENTS LIMITED
3,899,492
0.20
18
BNP PARIBAS NOMS PTY LTD
3,448,457
0.17
19
BNP PARIBAS NOMS (NZ) LTD
3,029,192
0.15
20
NETWEALTH INVESTMENTS LIMITED
2,882,636
0.14
Total
1,743,665,704
87.66
Balance of register
245,551,769
12.34
Grand total
1,989,217,473
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.
227 | Evolution Mining Annual Report 2024
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Financial Report
ABN 74 084 669 036
Board of Directors
Jake Klein
Executive Chair
Lawrie Conway
Managing Director and CEO
Jim Askew
Non-Executive Director
Jason Attew
Non-Executive Director
Vicky Binns
Non-Executive Director
Andrea Hall
Non-Executive Director
Fiona Hick
Non-Executive Director
Tommy McKeith Non-Executive Director
Peter Smith
Lead Independent 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
Corporate information
Evolution Mining Annual Report 2024 | 228
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Level 24, 175 Liverpool Street
Sydney NSW 2000
+ 61 2 9696 2900
+ 61 2 9696 2901
www.evolutionmining.com.au