Slide 1: 2016 Full Year Financial Results
For personal use only 2016 Full Year Financial Results 17 Aug 2016 Jake Klein – Executive Chairman Lawrie Conway – Finance Director and CFO
Slide 2: Forward looking statement
For personal use only Forward looking statement These materials prepared by Evolution Mining Limited (or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expe
Slide 3: Strategic ambitions
Strategic ambitions For personal use only A group portfolio generating superior returns with 6 – 8 assets and an average mine life of 8 – 10 years 6 – 8 active exploration and development programs of quality, including brownfields Open to all good gold, silver and copper-gold investment opportunitie
Slide 4: FY16 financial highlights
FY16 financial highlights Outstanding financial results For personal use only Underlying profit up 114% to A$226.9M Statutory net loss of A$24.3M after acquisition, integration and impairment costs EBITDA increased by 123% to A$607.5M Record gold production up 84% to 803,476oz Record low
Slide 5: Profit metrics continue to improve
Profit metrics continue to improve Gold Sales (koz)1 AIC (A$/oz)2,3 For personal use only (Up 91%) (Down 12%) 900 816 1,400 800 1,293 700 1,300 600 1,200 1,134 500 427 400 1,100 300 1,000 200 900 100 0 800 FY15 FY16 FY15 FY16 EBITDA margin2 Underlying Profit (A$M) (Up 15%) (up 114%) 50% 250 46% 227
Slide 6: Record underlying net profit
Record underlying net profit Benefits realised from successful integration of Cowal and Mungari For personal use only EBITDA contributions of A$222.2M (Cowal) and A$115.1M (Mungari) Gold price increase (A$108/oz) delivered A$46.1M to original five assets Higher interest and financing costs r
Slide 7: Statutory loss reconciliation
Statutory loss reconciliation Stamp duty for Cowal and Mungari of A$48.1M For personal use only Integration costs of A$6.6M Acquisition accounting fair value unwinding of A$84.0M Impairment on sale of Pajingo of A$77.3M Reconciliation of Underlying to Statutory Loss A$M 226.9 54.7 4.4 55.0 3
Slide 8: EBITDA margins
EBITDA margins Group EBITDA margins trending towards 50% For personal use only Improved margins at majority of sites Outstanding performance from Mt Carlton Benefiting from a diversified portfolio Group EBITDA Margin (%) FY14 33% FY15 40% FY16 46% EBITDA Margin 59% 58% 53% 49% 48% 48% 47% 47
Slide 9: Operating mine cash flow & AIC margin
Operating mine cash flow & AIC margin Operating mine cash generation increased by 274% since 2013 For personal use only Group AIC Margin expanded each year for last four years Cash and margin growth achieved from improved asset quality; productivity improvements; and reduced cost pressures G
Slide 10: Mine cash flow
Mine cash flow Net mine cash generation up 211% For personal use only All assets cash flow positive after capital investment programs Strong contribution from Cowal, Mungari and Mt Carlton 193 FY16 mine cash flow (A$M) Operating mine cash flow contribution FY16 164 125 Pajingo 117 8% 103 Craco
Slide 11: Discovery
Discovery Exploration expenditure increased by 15% to For personal use only A$27.8M (FY15: A$24.0M) Exploration investment Increased resource definition spend of A$14.9M undertaken to grow existing resource base (FY15: A$10.0M) Other Cowal 8% 12% Positive drill results from Cowal Stage H Tenna
Slide 12: Group underlying cash flow
Group underlying cash flow Record cash flow from operations underpinning Group growth strategy For personal use only Sustaining and major capital in line with guidance Net cash flow allowing for rapid reduction in debt level Group underlying cash flow (A$M) 628.4 428.2 200.2 341.2 37.2 26.0 23
Slide 13: Balance sheet and gearing
Balance sheet and gearing Cash and undrawn debt of A$220.0M Term loan facility amortisation profile For personal use only (A$M) Debt at end of FY16 of A$285.0M Revolver Facility: A$95.0M 70 Term Facility: A$190.0M 120 A$322.0M repaid during the year 60 57.5 50 30 12.5 Term facility repay
Slide 14: Updated FY17 guidance
Updated FY17 guidance All-in sustaining For personal use only Updated FY17 Gold production C1 cash costs D&A cost Guidance (oz) (A$/oz) (A$/oz) (A$/oz) Cowal 245,000 – 260,000 615 – 675 885 – 945 240 - 250 Mungari 150,000 – 160,000 740 – 800 970 – 1,030 450 – 470 Mt Carlton 90,000 – 100,000 400 – 45
Slide 15: Summary
Summary Financial performance reflects quality of the portfolio For personal use only Underlying profit up 114% to A$226.9M Low cost producer with Group AISC of A$1,014/oz (US$739/oz)1 Record operating cash flow of A$628.4M and net mine cash flow of A$428.2M Cash generation directed to del
Slide 16: For personal use only
For personal use only ASX code: EVN www.evolutionmining.com.au