Evolution Mining Ltd.

Evolution Mining Ltd. is a senior gold and copper producer headquartered in Sydney, Australia, operating primarily in Australia. The company's portfolio consists of 6 operating mines, in addition to several early-stage exploration prospects. Key assets include Cowal and Ernest Henry. The business model is centered on operating a portfolio of up to 8 assets in Tier 1 jurisdictions, with a strategic focus on low-cost production to ensure resilience through market cycles. The enterprise emphasizes financial discipline, prioritizing margin and appropriate capital returns. A key operational characteristic is the management of geological, operational, and financial risks, supported by a high-performing culture. Recently, the company has increased its exposure to a secondary commodity to enhance cash flow stability across commodity price cycles. Sustainability is integrated into all business functions, from exploration to closure, underpinning the long-term value creation strategy. The operational approach involves building a portfolio that generates superior returns and maintaining a reputation for delivering value to all stakeholders.

The entity's strategy focuses on building and maintaining a portfolio of up to 8 assets in Tier 1 jurisdictions that generate superior returns. Growth is pursued through a dual approach of organic discovery and strategic, value-accretive acquisitions. A core principle is disciplined capital allocation, centered on margin and appropriate returns to prosper through economic cycles. The organization integrates sustainability into all business activities, with a formal commitment to achieve Net Zero emissions by 2050, supported by a 30% reduction target for 2030. Near-term objectives include advancing key expansion and development projects to establish larger, lower-cost production bases. The long-term vision is to create a premier global company by driving a high-performing culture and taking calculated geological, operational, and financial risks.

Executive leadership includes a Managing Director and CEO with over 34 years of resources sector experience and an Executive Chair with a track record of developing a prior company from a $100 million market capitalization to a valuation exceeding $2 billion. As of June 30, 2024, the Board of Directors comprises 8 members, with 6 being independent non-executive directors. A new female non-executive director was appointed effective July 1, 2024, supporting the board diversity target of no less than 30% female representation. Governance is structured through Audit, Risk and Sustainability, and Nomination and Remuneration Committees. The Risk and Sustainability Committee meets at least 3 times annually to oversee the entity's risk management systems and sustainability performance. The remuneration framework links executive compensation to performance, with approximately 30% of the annual Short-Term Incentive Plan (STIP) tied to specific sustainability targets, including progress towards Net Zero commitments. The risk management framework is aligned with ISO 31000 guidelines, with the Board conducting an annual review of the Group Risk Register.

The organization's climate action strategy is defined by a commitment to achieve Net Zero Scope 1 and 2 emissions by 2050, with an interim target of a 30% reduction by 2030 against an adjusted FY20 baseline; a ~12% reduction has been achieved as of FY24. Workplace safety initiatives resulted in a ~13% year-on-year improvement in the Total Recordable Injury Frequency (TRIF). Indigenous relations are advanced through formal agreements and collaborative forums, including an inaugural First Nations Summit held in FY24 to enhance partnership and cultural understanding. Environmental stewardship is demonstrated by a 45% improvement in freshwater usage intensity compared to the FY20 baseline. Tailings management practices are aligned with the Global Industry Standard on Tailings Management (GISTM) and are overseen by a dedicated TSF Governance Committee. The entity reports against GRI and TCFD frameworks and is actively preparing for mandatory disclosures under IFRS S1/S2 and the Australian Sustainability Reporting Standards (ASRS).

In December 2023, the company completed the acquisition of an 80% interest in the Northparkes operations from CMOC Group Limited; Sumitomo Group retains the remaining 20% interest through a longstanding joint venture. The acquisition was funded through a $525 million institutional placement and a new $200 million term debt facility. During FY24, the organization entered into an earn-in agreement with Northern Superior Resources Ltd concerning the October Gold Project. A separate earn-in agreement was established with Red Fox Resources Pty Ltd for the Cloncurry North Project, aiming to discover incremental production sources. The entity is also jointly developing the Mt Rawdon Pumped Hydro Project in partnership with ICA Partners to convert a mine site into a renewable energy asset. In the same period, the company divested its interest in the Cue JV to Ramelius Resources.