Slide 1: 2018 Full Year Financial Results
CN ee 2018 FULL YEAR FINANCIAL RESULTS 17 AUGUST 2018 JAKE KLEIN - EXECUTIVE CHAIRMAN LAWRIE CONWAY - FINANCE DIRECTOR AND CFO
Slide 2: Forward Looking Statement
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”, “expect”, “intend”, “plan”, “
Slide 3: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY For personal use only 3
Slide 4: Group total recordable injury frequency
24.4 For personal use only ◼ Group total recordable injury frequency at 30 June 19.9 2018 reduced by 31% year-on-year to 5.5 12.0 ◼ Major work undertaken to improve the quality of 9.6 9.7 8.0 incident investigations 5.5 ◼ Ongoing focus to improve safety culture within the business FY12 FY13 FY14 FY1
Slide 5: FY18 financial summary
Financials Units FY18 FY17 Change Statutory Profit before tax A$M 338.9 237.3 43% For personal use only Statutory Profit after tax1 A$M 263.4 217.6 21% Underlying Profit after tax1 A$M 250.8 206.6 21% EBITDA A$M 795.1 713.9 11% Operating Mine Cash Flow A$M 811.8 706.5 15% Net Mine Cash Flow A$M 539.
Slide 6: Underlying profit up 21% to record
For personal use only ◼ Profit up by 21% to a record A$250.8M ◼ Positive impact from divesting of Edna May ◼ EBITDA from Ernest Henry of A$231.0M reflective of a full 12-month contribution ◼ Lower sales volume driven mainly by lower production at Mungari due to a 16% reduction in grade ◼ Tax expense
Slide 7: High cash margins across the portfolio
For personal use only ◼ High cash margins across the portfolio FY18(1) 53% ◼ Portfolio contribution improved with 92% of EBITDA coming from assets with 6+ years mine life FY17(1) 49% FY16 46% FY15 40% 66% 64% 55% 52% 48% 35% FY14 33% Cowal Ernest Henry Mt Carlton Mt Rawdon Mungari Cracow ◼ Group EBI
Slide 8: Net mine cash flow and returns by asset
For personal use only ◼ Successfully increasing net mine cash flow while 540 increasing investment for the future 461 428 ◼ All assets in current portfolio have been cash 245 272 positive since FY141 154 168 200 ◼ Portfolio changes since FY15 significantly increase 138 94 cash generation and but not
Slide 9: Successful replenishment of resources and reserves
For personal use only ◼ Successful replenishment of resources and reserves ◼ Group average mine life improved to over 9 years 15 ◼ Reserves per share up 39% over the last 3 years ◼ FY19 discovery investment increased to A$40 – A$55 29.4 19.4 21.3 million ◼ Cowal increased to A$15 – A$20 million 47.5
Slide 10: Record group cash flow
1,597 1,641 1,645 1,442 1,489 For personal use only ◼ Record group cash flow up 4% to A$396M 494 ◼ Gold price flat year-on-year 454 453 ◼ Benefited from copper contribution 167 104 ◼ Copper price up 17% FY14 FY15 FY16 FY17 FY18 Cash flow per oz Gold Price (A$/oz) ◼ Volume up 53% mostly due to full y
Slide 11: Debt, cash and leverage
For personal use only ◼ Net bank debt position: A$72M ◼ Cash balance: A$323M 110 110 95 80 ◼ Term Facility D: A$395M ◼ Debt facilities renewed during the year ◼ Revolver Facility of A$350M to July 2021 FY19 FY20 FY21 FY22 (undrawn) Repayment Commitments ◼ Performance Bonds Facility of A$175M ◼ Savin
Slide 12: Final dividend increases returns to shareholders
7.5 5 For personal use only ◼ Final dividend increases returns to shareholders 3 298 ◼ Fully franked 4 cents 2 2 ◼ Increase of 33% over FY17 final 1 171 87 ◼ A$67.7M to be paid on 28 September 2018 7 21 43 FY13 FY14 FY15 FY16 FY17 FY18 ◼ Full year dividend of 7.5 cents up 50% on FY17 Cumulative Divi
Slide 13: FY19 Guidance
For personal use only Gold C1 Cash All-in Sustaining Sustaining Major FY19 Guidance Production Costs Cost* Capital Capital (oz) (A$/oz) (A$/oz) (A$M) (A$M) Cowal 240,000 – 250,000 765 – 840 975 – 1,075 55 – 60 90 – 100 Mungari 125,000 – 135,000 875 – 925 1,050 – 1,100 10 – 15 0–5 Mt Carlton 95,000 –
Slide 14: FY18 results summary
AISC AIC For personal use only Low cost A$797/oz 12% 4% A$1,033/oz EBITDA AIC High margin 53% 8% A$612/oz 8% margin margin Group Cash flow High cash cash flow per share generation 4% 2% A$396M 23 cents Strong Final Gearing balance 83% dividend 33% 2.7% sheet 4.0 cents 14
Slide 15: Appendix
For personal use gnly APPENDIX jf thay 3 ie ad A = AY = re Bc se x a =|.- re aay . 7 MINING
Slide 16: Statutory profit reconciliation
For personal use only ◼ Higher contribution from Ernest Henry offset by lower production at Mungari ◼ Lower finance costs due to lower debt levels and lower debt facility rates ◼ Lower transaction & integration costs by A$7.9M ◼ Tax expense increases in line with higher before tax profit 71.0 12.1 7
Slide 17: Underlying to statutory profit reconciliation
For personal use only 9.4 263.4 3.1 0.9 4.5 250.8 (1.2 ) (4.1 ) Underlying Profit Fair value gain Transaction & Tax effect of Edna May deferred Recognition of Recognition of Statutory Profit June June 2018 integration costs adjustments tax loss previously previously 2018 unrecognised tax unrecognise
Slide 18: Tax expense reconciliation
For personal use only ◼ All unrestricted tax losses utilised during the year to June 2018 ◼ As at 30 June 2018: Tax Provision of A$47.3M and Franking Credit balance of A$1.3M ◼ Restricted tax losses recorded on balance sheet as an asset at 30 June 2018 amount to A$13.6M ◼ La Mancha (A$8.0M) acquired
Slide 19: Major project capital items
For personal use only Major project capital items ◼ Cowal: Sustaining Major FY19 Guidance Capital Capital ◼ Stage H cut-back (A$70 – A$75M) (A$M) (A$M) ◼ Float Tails Leach (A$6 – A$9M) ◼ Other process plant projects (A$14 – A$16M) Cowal 55 – 60 90 – 100 ◼ Mt Carlton Mungari 10 – 15 0–5 ◼ Open pit mi
Slide 20: FY19 Guidance: depreciation, discovery and resource definition
For personal use only Depreciation & Fair Value Resource Discovery FY19 Guidance Amortisation* Unwind Definition** (A$M) (A$/oz) (A$M) (A$M) Cowal 430 – 480 10 – 15 3–7 15 – 20 Mungari 500 – 550 10 – 15 2–4 15 – 20 Mt Carlton 580 – 630 0–1 1–2 Mt Rawdon 550 – 600 0–1 0–1 Cracow 320 – 370 3–7 1–3 Ern
Slide 21: For personal use only
For personal use only Evolution MIINTINE