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Tier-1 assets, alongside Cowal in New South Wales, Mungari in
Western Australia and Red Lake in Canada. Following the recent
sale of Mt Carlton to Navarre Minerals Ltd, Mt Rawdon remains
the only original asset in the company’s portfolio
Klein insists Mt Rawdon remains a core part of the company’s
future despite not having Tier-1 status. A feasibility study on the
potential to establish a 1GW pumped hydro station which could
supply a material amount of green power to the South-East
Queensland grid is due by the end of FY2023.
“We think that should be a really elegant and effective way of
both leaving a very positive legacy and may even get us access
Red Lake is expected to churn out more than 350,000 ozpa by 2026
to carbon credits and help us achieve our goal of reducing our
carbon emissions by 30% by 2030 and net zero by 2050,” Klein
Red Lake endured a challenging second half of 2021. Despite
said.
hitting the monthly development target of 1,200m for the first time
“Mt Rawdon is a low management-intensive asset because it is in October, improvements to stoping efficiency were slower than
so well run by the site team. It’s a well-known orebody, it operates planned. Due to that underperformance, Evolution has forecast
very well, so at this stage we have no intention of exiting that asset.” group ASIC would increase by 2-3% or $25-35/oz.
Evolution had its busiest year on the M&A front in 2021 with the Klein called for patience from investors as the company continued
Ernest Henry and Mt Carlton deals preceded by the acquisition of its turnaround mission at Red Lake, even suggesting Evolution
TSX-listed Battle North Gold for $C343 million and the purchase would take out the GMJ Miner of the Year in the coming years on
of Northern Star Resources Ltd’s Kundana operations and a 51% Red Lake alone.
stake in the East Kundana JV for $400 million.
“We said it would take three years to get to 200,000 ozpa at
Both transactions were based on obvious extensions to existing lower cost and then within five years, so by 2026, we’d be at plus-
operations. Battle North’s Bateman project is contiguous with Red 350,000 ozpa, so we always knew it was going to take time,” Klein
Lake, while the Kundana assets are hosted in the same geological said.
belt as Mungari.
“We’re very confident of delivering the outcome which we
In the case of the latter, the higher-grade material now coming from expected when we started this journey, it just takes longer than
Kundana and the East Kundana JV have quashed any concerns what a lot of companies expect. Having said that, we’ve already
about Mungari’s future beyond the next few years. Northern Star spent about $US1 billion on the asset and we’ll transform it into
had been previously trucking ore to its mill at Kanowna Belle a 350,000 ozpa low-cost operation with a 17-year plus mine life.
despite Mungari being just over the fence. That’s value creation because if you look at the analogues as to
Klein did not rule out making a play for 100% of East Kundana, with what the market would value an operation like that, it’s materially
the balance of the JV currently held by the Anton Billis-controlled higher than the investment we’ve made.
Tribune Mining Ltd and Rand Mining Ltd. “We’ll win your gold mining award for Red Lake in the next 3-5
“That’s up to Rand and Tribune,” he said. “We’re a 21% shareholder years.”
of Tribune, they don’t appear to be wanting to sell, but it would be Reflecting on the past decade of Evolution’s formation since the
one which we would be saying ‘if ever you do, please call us’.” merger between Conquest Mining and Catalpa Resources, Klein
Following the company’s AGM in late November, Klein departed compared the company’s “unique” culture to that of the successful
Australian shores for the first time in more than 18 months to New Zealand All Blacks rugby team. In particular, he cited the
check on the progress at Red Lake, which he has not visited since early decision to empower all employees to act like owners of the
Evolution purchased the former Newmont Corp asset in late 2019. business as being integral to its rise as Australia’s third largest gold
miner.
“I believe we have a unique culture, one where people really
believe and feel that they can make a difference,” he said. “They
do act like owners, they act with humility, they act with integrity and
they’re very passionate about achieving our success. We’re still a
company that’s relatively small, but our ambitions are big.
“I’ve often used the comparison to the All Blacks and their culture…
they have that humility, that integrity and that commitment to
excellence. Their concept of sweeping the sheds where the oldest
players clean up, it’s not just left to the younger players or the
support staff. That’s the way we’ve framed our discussions with
every person in Evolution; whatever their job, it’s as important as
the other. Every person’s time at Evolution should be the highlight
of their career.
“Our assets have changed, but the thing that hasn’t changed is
our strategy, our vision and our values. I’m very proud of that.”
Jake Klein

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