Evolution Mining Annual Report 2017: Creating Australia's Premier Gold Mining Company
Added on 2023-06-07
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ASX: EVN www.evolutionmining.com.au
ANNUAL
REPORT
ANNUAL
REPORT
CREATING AUSTRALIA’S PREMIER
GOLD MINING COMPANY
Evolution Mining is a leading, growth-focussed Australian gold miner. We extract and
process gold from our six wholly-owned mines – the Cowal gold operation in New South
Wales, Mt Carlton, Mt Rawdon, and Cracow in Queensland, and Mungari and Edna May in
Western Australia. In addition, we hold an economic interest in the Ernest Henry copper-
gold mine (Ernest Henry) in Queensland that will deliver 100% of future gold and 30% of
future copper and silver from an agreed life of mine area. Outside of the life of mine area,
we will have a 49% interest in future copper, gold and silver.
In FY17 we improved the quality of our assets through the
innovative Ernest Henry transaction and the sale of the
Pajingo gold operation. We have a track record of always
achieving production and cash cost guidance and for
making value accretive acquisitions.
We have grown into a genuine mid-tier since inception
in November 2011 and now have a team of over 1,500
employees and contractors whose safety, health and
wellbeing is of paramount importance to us.
We want the communities in which we operate to be
better off overall for us being there, and we seek to
partner with our community stakeholders to make a
positive difference to the community. We recognise that
to protect and enhance our ‘social licence’ we have to go
above and beyond what is required by way of regulation
and legislation, by playing our part in developing strong
and sustainable communities.
We are committed to attaining an outstanding level of
environmental performance in all our workplaces and we
incorporate environmental considerations into all areas of
our business to effectively manage environmental impacts
and risks.
Definitions applicable to this Report:
AISC (All-in Sustaining Cost) includes C1 cash cost, plus royalty expense, plus sustaining capital expense, plus general corporate and administration expenses on a per ounce sold basis.
AIC (All-in cost) is ASIC plus growth (major capital) and discovery expenditure. Calculated on per ounce produced basis. Calculated using an average AUD:USD exchange rate for FY17 of US$0.7546.
Note: Location size denotes production for FY17
GOLD MINING COMPANY
Evolution Mining is a leading, growth-focussed Australian gold miner. We extract and
process gold from our six wholly-owned mines – the Cowal gold operation in New South
Wales, Mt Carlton, Mt Rawdon, and Cracow in Queensland, and Mungari and Edna May in
Western Australia. In addition, we hold an economic interest in the Ernest Henry copper-
gold mine (Ernest Henry) in Queensland that will deliver 100% of future gold and 30% of
future copper and silver from an agreed life of mine area. Outside of the life of mine area,
we will have a 49% interest in future copper, gold and silver.
In FY17 we improved the quality of our assets through the
innovative Ernest Henry transaction and the sale of the
Pajingo gold operation. We have a track record of always
achieving production and cash cost guidance and for
making value accretive acquisitions.
We have grown into a genuine mid-tier since inception
in November 2011 and now have a team of over 1,500
employees and contractors whose safety, health and
wellbeing is of paramount importance to us.
We want the communities in which we operate to be
better off overall for us being there, and we seek to
partner with our community stakeholders to make a
positive difference to the community. We recognise that
to protect and enhance our ‘social licence’ we have to go
above and beyond what is required by way of regulation
and legislation, by playing our part in developing strong
and sustainable communities.
We are committed to attaining an outstanding level of
environmental performance in all our workplaces and we
incorporate environmental considerations into all areas of
our business to effectively manage environmental impacts
and risks.
Definitions applicable to this Report:
AISC (All-in Sustaining Cost) includes C1 cash cost, plus royalty expense, plus sustaining capital expense, plus general corporate and administration expenses on a per ounce sold basis.
AIC (All-in cost) is ASIC plus growth (major capital) and discovery expenditure. Calculated on per ounce produced basis. Calculated using an average AUD:USD exchange rate for FY17 of US$0.7546.
Note: Location size denotes production for FY17
Evolution Mining Limited Annual Report 20171
Executing a clear and consistent strategyAustralia
Low risk, first world, politically
stable jurisdiction
Highly skilled mining workforce
Reliability
Six consecutive years of meeting
production and cost guidance
Mid-tier
6 – 8 asset portfolio to ensure focus
is maintained
Strong returns
Peer leading free cash flow per
ounce generation
Capital growth and increasing dividends
Low risk
Six consecutive years of reducing
All-in Sustaining Costs
Among the lowest cost gold producers
in the world
Growth
Strong cash flow funding near mine
and regional exploration
Delivering value accretive acquisitions
to improve portfolio quality
We have earned a reputation for operational consistency and
reliability and are focussed on building a business that prospers
through the cycle
This year we continued to improve the quality of our asset
portfolio through the acquisition of an economic interest in the
Ernest Henry copper-gold mine, the extension of Cowal's mine
life to at least 2032 and the divestment of the short life, higher
cost Pajingo mine
CONTENTS
Executive Chairman’s Report 4
Safety 6
Health and Wellbeing 9
People and Culture 10
Environment 16
Community 24
Outlook for FY18 40
Discovery 43
Mineral Resources and Ore Reserves 49
Corporate Governance 53
Chief Financial Officer’s Review 58
Annual Financial Report 60
Executing a clear and consistent strategyAustralia
Low risk, first world, politically
stable jurisdiction
Highly skilled mining workforce
Reliability
Six consecutive years of meeting
production and cost guidance
Mid-tier
6 – 8 asset portfolio to ensure focus
is maintained
Strong returns
Peer leading free cash flow per
ounce generation
Capital growth and increasing dividends
Low risk
Six consecutive years of reducing
All-in Sustaining Costs
Among the lowest cost gold producers
in the world
Growth
Strong cash flow funding near mine
and regional exploration
Delivering value accretive acquisitions
to improve portfolio quality
We have earned a reputation for operational consistency and
reliability and are focussed on building a business that prospers
through the cycle
This year we continued to improve the quality of our asset
portfolio through the acquisition of an economic interest in the
Ernest Henry copper-gold mine, the extension of Cowal's mine
life to at least 2032 and the divestment of the short life, higher
cost Pajingo mine
CONTENTS
Executive Chairman’s Report 4
Safety 6
Health and Wellbeing 9
People and Culture 10
Environment 16
Community 24
Outlook for FY18 40
Discovery 43
Mineral Resources and Ore Reserves 49
Corporate Governance 53
Chief Financial Officer’s Review 58
Annual Financial Report 60
Evolution Mining Limited Annual Report 20172
Evolution – a global leader in low cost production
An outstanding performance in FY17
■■ We continued to improve our safety culture and
performance with a reduction in our total recordable
injury frequency rate (TRIFR) to 7.96 (30 June
2016: 9.70)
■■ We had an outstanding year achieving record results
through a focus on productivity improvements and
cost efficiencies:
■■ Total gold production of 844,124 ounces,
representing an increase of 5% on the prior year
and at the upper end of guidance for the current
year of 800,000 – 860,000 ounces
■■ AISC of A$907 per ounce, representing a decrease
of 11% on the prior year and at the lower end of
guidance for the current year of A$900 – A$960
per ounce
■■ Operating mine cash flow of A$706.5 million,
representing an increase of 12% on the prior year
■■ Net mine cash flow of A$461.5 million,
representing an increase of 8% on the prior year
■■ We completed the innovative Ernest Henry
transaction to obtain an economic interest in the
copper-gold operation on 1 November 2016
■■ We completed the sale of the Pajingo assets on
1 September 2016 to Minjar Gold Pty Limited for
total proceeds of up to A$52 million comprised of
a A$42 million up front cash payment and a 1% net
smelter return royalty of up to A$10 million for gold
production above 130,000 ounces
■■ We extended the Cowal gold operation’s mine life to
at least 2032
■■ Ore Reserve increase of 679,000 ounces of gold
prior to mining depletion of 326,000 ounces
■■ Board approved the commencement of the E42
Stage H cutback and Float Tails (Dual) Leach
Project
■■ We acquired the Marsden copper-gold project
immediately to the southeast of the Cowal gold
operation mine which hosts a Mineral Resource
estimate of 1.1 million ounces of gold and 0.67 million
tonnes of copper
■■ We updated the dividend policy of whenever possible
paying a half-yearly dividend equivalent to 50% of
the Group's after-tax earnings – applied to the final
dividend for 2017 of 3 cents per fully paid ordinary
share fully franked
5%
TO 844,124 GOLD OUNCES
GROUP CONSOLIDATED PRODUCTION
11%
TO A$907 / OZ (FY16: A$1,014 / OZ)
GROUP ALL-IN SUSTAINING COST
A$217.6M
FY16: NET LOSS (A$24.3M)
RECORD STATUTORY NET PROFIT AFTER TAX
Evolution – a global leader in low cost production
An outstanding performance in FY17
■■ We continued to improve our safety culture and
performance with a reduction in our total recordable
injury frequency rate (TRIFR) to 7.96 (30 June
2016: 9.70)
■■ We had an outstanding year achieving record results
through a focus on productivity improvements and
cost efficiencies:
■■ Total gold production of 844,124 ounces,
representing an increase of 5% on the prior year
and at the upper end of guidance for the current
year of 800,000 – 860,000 ounces
■■ AISC of A$907 per ounce, representing a decrease
of 11% on the prior year and at the lower end of
guidance for the current year of A$900 – A$960
per ounce
■■ Operating mine cash flow of A$706.5 million,
representing an increase of 12% on the prior year
■■ Net mine cash flow of A$461.5 million,
representing an increase of 8% on the prior year
■■ We completed the innovative Ernest Henry
transaction to obtain an economic interest in the
copper-gold operation on 1 November 2016
■■ We completed the sale of the Pajingo assets on
1 September 2016 to Minjar Gold Pty Limited for
total proceeds of up to A$52 million comprised of
a A$42 million up front cash payment and a 1% net
smelter return royalty of up to A$10 million for gold
production above 130,000 ounces
■■ We extended the Cowal gold operation’s mine life to
at least 2032
■■ Ore Reserve increase of 679,000 ounces of gold
prior to mining depletion of 326,000 ounces
■■ Board approved the commencement of the E42
Stage H cutback and Float Tails (Dual) Leach
Project
■■ We acquired the Marsden copper-gold project
immediately to the southeast of the Cowal gold
operation mine which hosts a Mineral Resource
estimate of 1.1 million ounces of gold and 0.67 million
tonnes of copper
■■ We updated the dividend policy of whenever possible
paying a half-yearly dividend equivalent to 50% of
the Group's after-tax earnings – applied to the final
dividend for 2017 of 3 cents per fully paid ordinary
share fully franked
5%
TO 844,124 GOLD OUNCES
GROUP CONSOLIDATED PRODUCTION
11%
TO A$907 / OZ (FY16: A$1,014 / OZ)
GROUP ALL-IN SUSTAINING COST
A$217.6M
FY16: NET LOSS (A$24.3M)
RECORD STATUTORY NET PROFIT AFTER TAX
Evolution Mining Limited Annual Report 20173
OUR RECENT AWARDS
2016 Miner of the Year – Australian Gold Mining Journal (February 2017)
Craig Oliver Award – RIU Explorers Conference (February 2017)
NSW Mining Operator of the Year – awarded to Cowal gold operations by the NSW Minerals Council (April 2017)
Victorian Mine Rescue competition – overall winner
NSW Mining HSE award winner – Project Arrive Alive (fatigue management)
OUR RECENT AWARDS
2016 Miner of the Year – Australian Gold Mining Journal (February 2017)
Craig Oliver Award – RIU Explorers Conference (February 2017)
NSW Mining Operator of the Year – awarded to Cowal gold operations by the NSW Minerals Council (April 2017)
Victorian Mine Rescue competition – overall winner
NSW Mining HSE award winner – Project Arrive Alive (fatigue management)
Evolution Mining Limited Annual Report 20174
On behalf of the Board of Directors of Evolution Mining
I am pleased to present you with the Company’s
2017 Annual Report.
The 2017 Financial Year was another year in which we
continued to deliver on our strategy of leveraging our
operating success to improve the quality of our asset
portfolio and build a business that prospers through the
cycle. In 2017 the Company again performed very well
operationally to achieve records on nearly every metric.
It was also a year in which the asset portfolio quality was
significantly upgraded by the acquisition of an economic
interest in Ernest Henry and the divestment of Pajingo.
In the six years since our inception the Company has built
a reputation as a consistent and reliable gold producer.
Importantly, all our operating assets are located in
Australia – a low risk, politically stable jurisdiction with an
immense mineral endowment.
Our core value of safety is critical to our success as a
Company. Evolution remains focussed on improving our
high safety standards across our business. It is pleasing
that in FY17 the Group achieved continued improvements
in both our Lost Time Injury Frequency Rate (LTIFR) and
Total Recordable Injury Frequency Rate (TRIFR).
At the same time, the Company continued its track
record of delivering to or outperforming production and
cost guidance, marking six consecutive years of achieving
guidance since the Company’s inception in 2011.
Evolution’s gold production increased by 5% to a record
844,124 ounces at an average C1 cash cost of A$625 per
ounce, an AISC of A$907 per ounce and a AIC of A$1,073
per ounce. Using the average AUD:USD exchange rate for
FY17 of 0.7546, Evolution’s AISC equated to US$684 per
ounce, ranking Evolution as one of the lowest cost gold
producers globally. The eight-month contribution from
Ernest Henry, a continued focus on cost and efficiency
gains, and a higher Australian dollar gold price received
saw our AIC margin increase by 23% to a record A$568
per ounce in the 2017 financial year.
In 2017 Evolution reported a record statutory net profit of
A$217.6 million. This was achieved on the back of a record
operating cash flow of A$706.5 million and a record net
mine cash flow, after all sustaining and major project
capital expenditure, of A$461.5 million.
This strong cash generation enabled Evolution to make
A$325.0 million in debt repayments during the period.
The Company’s gearing commenced the year at 15%,
peaked at around 24% due to drawing on a new term
facility to fund the Ernest Henry acquisition, then was
reduced to below 16% by 30 June 2017.
Ernest Henry made an immediate positive impact on the
portfolio. With eight months of attributable production,
the operation delivered 60,259 ounces of gold at a
negative AISC of A$(369) per ounce.
In its second year under Evolution ownership Cowal made
another strong contribution producing 263,105 ounces at
an AISC of A$833 per ounce. Mt Carlton also delivered a
strong result with gold production of 105,024 ounces at
an AISC of A$622 per ounce.
The continued increase in cash generation of the business
allowed Evolution’s Board of Directors to approve a
change in dividend policy to a payout ratio of 50% of
after tax earnings. This change was announced in August
2017 and was applied to the final 2017 fully franked
dividend paid in September 2017. Evolution is now in a
tax paying position and expects to continue to pay fully
franked dividends going forward.
It is pleasing to report that the first eight months of our
partnership with Glencore at the Ernest Henry mine has
delivered results that have exceeded our expectations. The
mine has delivered physicals in-line or ahead of plan while
the rising prices of both gold and copper in Australian
dollar terms has boosted revenue. Ernest Henry is now
a cornerstone asset for Evolution that is expected to
produce strong free cash flow for at least the next decade.
In February 2017, Evolution’s Board approved investments
in the E42 Stage H cutback and Float Tails project
at Cowal to secure the mine’s life until at least 2032,
allowing for the continued transformation of this
cornerstone asset.
Executive Chairman’s Report
On behalf of the Board of Directors of Evolution Mining
I am pleased to present you with the Company’s
2017 Annual Report.
The 2017 Financial Year was another year in which we
continued to deliver on our strategy of leveraging our
operating success to improve the quality of our asset
portfolio and build a business that prospers through the
cycle. In 2017 the Company again performed very well
operationally to achieve records on nearly every metric.
It was also a year in which the asset portfolio quality was
significantly upgraded by the acquisition of an economic
interest in Ernest Henry and the divestment of Pajingo.
In the six years since our inception the Company has built
a reputation as a consistent and reliable gold producer.
Importantly, all our operating assets are located in
Australia – a low risk, politically stable jurisdiction with an
immense mineral endowment.
Our core value of safety is critical to our success as a
Company. Evolution remains focussed on improving our
high safety standards across our business. It is pleasing
that in FY17 the Group achieved continued improvements
in both our Lost Time Injury Frequency Rate (LTIFR) and
Total Recordable Injury Frequency Rate (TRIFR).
At the same time, the Company continued its track
record of delivering to or outperforming production and
cost guidance, marking six consecutive years of achieving
guidance since the Company’s inception in 2011.
Evolution’s gold production increased by 5% to a record
844,124 ounces at an average C1 cash cost of A$625 per
ounce, an AISC of A$907 per ounce and a AIC of A$1,073
per ounce. Using the average AUD:USD exchange rate for
FY17 of 0.7546, Evolution’s AISC equated to US$684 per
ounce, ranking Evolution as one of the lowest cost gold
producers globally. The eight-month contribution from
Ernest Henry, a continued focus on cost and efficiency
gains, and a higher Australian dollar gold price received
saw our AIC margin increase by 23% to a record A$568
per ounce in the 2017 financial year.
In 2017 Evolution reported a record statutory net profit of
A$217.6 million. This was achieved on the back of a record
operating cash flow of A$706.5 million and a record net
mine cash flow, after all sustaining and major project
capital expenditure, of A$461.5 million.
This strong cash generation enabled Evolution to make
A$325.0 million in debt repayments during the period.
The Company’s gearing commenced the year at 15%,
peaked at around 24% due to drawing on a new term
facility to fund the Ernest Henry acquisition, then was
reduced to below 16% by 30 June 2017.
Ernest Henry made an immediate positive impact on the
portfolio. With eight months of attributable production,
the operation delivered 60,259 ounces of gold at a
negative AISC of A$(369) per ounce.
In its second year under Evolution ownership Cowal made
another strong contribution producing 263,105 ounces at
an AISC of A$833 per ounce. Mt Carlton also delivered a
strong result with gold production of 105,024 ounces at
an AISC of A$622 per ounce.
The continued increase in cash generation of the business
allowed Evolution’s Board of Directors to approve a
change in dividend policy to a payout ratio of 50% of
after tax earnings. This change was announced in August
2017 and was applied to the final 2017 fully franked
dividend paid in September 2017. Evolution is now in a
tax paying position and expects to continue to pay fully
franked dividends going forward.
It is pleasing to report that the first eight months of our
partnership with Glencore at the Ernest Henry mine has
delivered results that have exceeded our expectations. The
mine has delivered physicals in-line or ahead of plan while
the rising prices of both gold and copper in Australian
dollar terms has boosted revenue. Ernest Henry is now
a cornerstone asset for Evolution that is expected to
produce strong free cash flow for at least the next decade.
In February 2017, Evolution’s Board approved investments
in the E42 Stage H cutback and Float Tails project
at Cowal to secure the mine’s life until at least 2032,
allowing for the continued transformation of this
cornerstone asset.
Executive Chairman’s Report
Evolution Mining Limited Annual Report 20175
In the 23 months of owning Cowal between late July
2015 to June 2017, Evolution has delivered a number of
impressive results including:
■■ Mine life extended by 8 years from 2024 to 2032
■■ Ore Reserves more than doubled from 1.56 million
ounces to 3.20 million ounces (post mining depletion)
■■ Cost of Reserves additions of A$14 per ounce
■■ Gold production of 501,000 ounces
■■ Net mine cash flow of A$322 million
Additional upside opportunities are being assessed which
would continue to add value at Cowal. These include:
co-treatment of oxides, increasing plant throughput and
running detailed studies on known ore bodies outside of
the E42 pit including E41, E46 and Galway/Regal.
Led by Glen Masterman, Evolution’s new VP Discovery
and Chief Geologist, Evolution stepped up its efforts in
the area of discovery in 2017. Total spending of A$58.4
million was the highest on record – split between A$29.0
million on discovery and A$29.4 million on resource
definition drilling. The drill program to define Stage H
at Cowal was a major success and strong results were
also returned at Mungari, Cracow and Mt Carlton. In 2018
Evolution plans to invest up to A$50.0 million in this
area of the business (A$30.0 million discovery; A$20
million resource definition). The major focus for the year
ahead will be on drill programs at the Mungari Regional
tenement package where encouraging results have
recently been delivered.
Across our entire business our people have continued to
work incredibly hard during the year and I would like to
thank each and every Evolution employee and contractor
for their contribution. I also appreciate the support
that our Leadership Team has received from the Board
of Directors this year and recognise this as a critical
ingredient of our success.
Following the completion of the sale of Edna May in
early October 2017, Evolution is forecasting Group gold
production in FY18 of 750,000 – 805,000 ounces at All-
in Sustaining Cost in the range of A$820/oz – A$870/oz.
Evolution has a strong platform of high quality assets
with an average reserve life of approximately nine years.
All assets are located in the safe jurisdiction of Australia
with a highly skilled workforce, and in an attractive
operating environment. Our balance sheet is strong, our
assets are generating substantial cash flow and our business
is now well positioned to prosper through the cycle.
Yours faithfully,
JAKE KLEIN
EXECUTIVE CHAIRMAN
In the 23 months of owning Cowal between late July
2015 to June 2017, Evolution has delivered a number of
impressive results including:
■■ Mine life extended by 8 years from 2024 to 2032
■■ Ore Reserves more than doubled from 1.56 million
ounces to 3.20 million ounces (post mining depletion)
■■ Cost of Reserves additions of A$14 per ounce
■■ Gold production of 501,000 ounces
■■ Net mine cash flow of A$322 million
Additional upside opportunities are being assessed which
would continue to add value at Cowal. These include:
co-treatment of oxides, increasing plant throughput and
running detailed studies on known ore bodies outside of
the E42 pit including E41, E46 and Galway/Regal.
Led by Glen Masterman, Evolution’s new VP Discovery
and Chief Geologist, Evolution stepped up its efforts in
the area of discovery in 2017. Total spending of A$58.4
million was the highest on record – split between A$29.0
million on discovery and A$29.4 million on resource
definition drilling. The drill program to define Stage H
at Cowal was a major success and strong results were
also returned at Mungari, Cracow and Mt Carlton. In 2018
Evolution plans to invest up to A$50.0 million in this
area of the business (A$30.0 million discovery; A$20
million resource definition). The major focus for the year
ahead will be on drill programs at the Mungari Regional
tenement package where encouraging results have
recently been delivered.
Across our entire business our people have continued to
work incredibly hard during the year and I would like to
thank each and every Evolution employee and contractor
for their contribution. I also appreciate the support
that our Leadership Team has received from the Board
of Directors this year and recognise this as a critical
ingredient of our success.
Following the completion of the sale of Edna May in
early October 2017, Evolution is forecasting Group gold
production in FY18 of 750,000 – 805,000 ounces at All-
in Sustaining Cost in the range of A$820/oz – A$870/oz.
Evolution has a strong platform of high quality assets
with an average reserve life of approximately nine years.
All assets are located in the safe jurisdiction of Australia
with a highly skilled workforce, and in an attractive
operating environment. Our balance sheet is strong, our
assets are generating substantial cash flow and our business
is now well positioned to prosper through the cycle.
Yours faithfully,
JAKE KLEIN
EXECUTIVE CHAIRMAN
Evolution Mining Limited Annual Report 20176
The safety, health and wellbeing of our people is of
paramount importance to us and we believe that every
injury is preventable and that no task is so important that
it cannot be done safely.
We want our people to go home safely to their families
and to move to a safety culture where people do the right
thing for themselves and those around them because they
believe in it, rather than because there is a rule in place.
We work collaboratively with our internal and external
stakeholders to identify and manage risks in the
workplace striving to apply innovative and sustainable
solutions that continuously improve our practices.
We have developed a comprehensive Health, Safety &
Environmental (HSE) management system which our
operations must comply with. Each year, every site is subject
to audit to ensure compliance with these HSE standards.
In FY17 we improved our safety performance achieving
further significant reductions in our total recordable
injury frequency rate (from 9.70 to 7.96) and lost time
injury frequency rate (1.8 to 0.4). We maintained our
focus on safety education by continuing our Vehicle
Incident Prevention Program (VIPP). This is an online,
interactive, module training system (Alert Driver). We
also continued our Beyond Zero program – a Leadership
development course aimed at enhancing front-line
leaders’ safety skills.
We developed and rolled out our Critical Control plans for
the top five risks at each operational site and completed
assurance reviews which achieved an overall compliance
score of 97%. We have further seen a sustained reduction
in our significant safety occurrence frequency rate during
FY17 (5.90 to 4.95).
In FY18 we will continue with existing programs and
commence new initiatives that will help drive our strategy
and the achievement of our key goals. These will include:
■■ Development and roll out of Critical Control plans for
additional Safety risks
■■ Progress each site along the Bradley Culture Curve
■■ Targeting a 15% reduction in the Significant Safety
Occurrence frequency rate
Safety
To support our value of “Safety – every job, every day”
we live by our Safety Principles
Management takes accountability for safety performance
Everyone is empowered to stop at risk behaviour and control
unsafe conditions
Everyone takes accountability for his/her own safety and for
the safety of those around them
All injuries and incidents are preventable
No task is so important that it cannot be done safely
Working safely is a condition of employment
We are very proud of our FY17 safety achievements
■■ Improved engagement with our workforce – an average of 133 safety interactions
conducted each day
■■ An average of 678 Take 5 pre-start safety checks conducted daily
■■ Conducted external safety audits of all our operations against the Evolution Safety and
Health Management system
■■ Hosted our third Evolution Mine Rescue Challenge which was held at Edna May in FY17
Awards in FY17
■■ Victorian Mine Rescue competition – combined Evolution team overall winner
■■ NSW Mining HSE award winner for Project Arrive Alive – fatigue management project
■■ Queensland Mining Health highly commended award for our Health and Wellbeing
program
■■ Chamber of Mines and Energy Surface Mine Rescue Western Australia – winners of
team skills event (Mungari team)
77%
FROM 1.8 TO 0.4
LTIFR
18%
FROM 9.7 TO 7.96
TRIFR
39%
VEHICLE INCIDENTS
The safety, health and wellbeing of our people is of
paramount importance to us and we believe that every
injury is preventable and that no task is so important that
it cannot be done safely.
We want our people to go home safely to their families
and to move to a safety culture where people do the right
thing for themselves and those around them because they
believe in it, rather than because there is a rule in place.
We work collaboratively with our internal and external
stakeholders to identify and manage risks in the
workplace striving to apply innovative and sustainable
solutions that continuously improve our practices.
We have developed a comprehensive Health, Safety &
Environmental (HSE) management system which our
operations must comply with. Each year, every site is subject
to audit to ensure compliance with these HSE standards.
In FY17 we improved our safety performance achieving
further significant reductions in our total recordable
injury frequency rate (from 9.70 to 7.96) and lost time
injury frequency rate (1.8 to 0.4). We maintained our
focus on safety education by continuing our Vehicle
Incident Prevention Program (VIPP). This is an online,
interactive, module training system (Alert Driver). We
also continued our Beyond Zero program – a Leadership
development course aimed at enhancing front-line
leaders’ safety skills.
We developed and rolled out our Critical Control plans for
the top five risks at each operational site and completed
assurance reviews which achieved an overall compliance
score of 97%. We have further seen a sustained reduction
in our significant safety occurrence frequency rate during
FY17 (5.90 to 4.95).
In FY18 we will continue with existing programs and
commence new initiatives that will help drive our strategy
and the achievement of our key goals. These will include:
■■ Development and roll out of Critical Control plans for
additional Safety risks
■■ Progress each site along the Bradley Culture Curve
■■ Targeting a 15% reduction in the Significant Safety
Occurrence frequency rate
Safety
To support our value of “Safety – every job, every day”
we live by our Safety Principles
Management takes accountability for safety performance
Everyone is empowered to stop at risk behaviour and control
unsafe conditions
Everyone takes accountability for his/her own safety and for
the safety of those around them
All injuries and incidents are preventable
No task is so important that it cannot be done safely
Working safely is a condition of employment
We are very proud of our FY17 safety achievements
■■ Improved engagement with our workforce – an average of 133 safety interactions
conducted each day
■■ An average of 678 Take 5 pre-start safety checks conducted daily
■■ Conducted external safety audits of all our operations against the Evolution Safety and
Health Management system
■■ Hosted our third Evolution Mine Rescue Challenge which was held at Edna May in FY17
Awards in FY17
■■ Victorian Mine Rescue competition – combined Evolution team overall winner
■■ NSW Mining HSE award winner for Project Arrive Alive – fatigue management project
■■ Queensland Mining Health highly commended award for our Health and Wellbeing
program
■■ Chamber of Mines and Energy Surface Mine Rescue Western Australia – winners of
team skills event (Mungari team)
77%
FROM 1.8 TO 0.4
LTIFR
18%
FROM 9.7 TO 7.96
TRIFR
39%
VEHICLE INCIDENTS
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