Slide 1: Evolution Mining Investor Presentation
For personal use only Evolution Mining Investor Presentation February 2015 Jake Klein – Executive Chairman
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: Australian mid-tier gold producer
Australian mid-tier gold producer For personal use only ASX Code EVN Shares 714.9M Market capitalisation ¹ US$570M Daily turnover 2 US$1.7M Cash and unsold doré 3 US$41.6M Debt 3 US$98.9M Forward sales 4 347,730oz at A$1,541/oz Dividend policy 2% of gold revenue Newcrest 32.3% Major shareholders All
Slide 4: Australia making a comeback
Australia making a comeback For personal use only Evolution C1 cash costs – a compelling illustration: FY13: A$790 per ounce AUD:USD FX¹ = $1.025 US$810 per ounce 1H 2015: A$710 per ounce AUD:USD FX² = $0.78 US$550 per ounce Slide from Evolution Investor Presentation June 2013 1. 12
Slide 5: Australian dollar gold price
Australian dollar gold price For personal use only A$/oz A$ Gold price per ounce 1,900 Five year rolling 1,800 1,700 1,600 1,500 5 Yr Avg = A$1,473/oz 2 Yr Avg = A$1,426/oz 1,400 1,300 1,200 1,100 11-Aug-10 11-Aug-11 11-Aug-12 11-Aug-13 11-Aug-14 11-Feb-10 11-Feb-11 11-Feb-12 11-Feb-13 11-Feb-14 11-
Slide 6: Gold mining – a business
Gold mining – a business For personal use only Create shareholder value through three pillars – Operations, Discovery, M&A Focus on costs and productivity to drive profitability Disciplined approach to capital investment Upgrade the portfolio – through discovery and opportunistic acquisition
Slide 7: Reliability and consistency
Reliability and consistency For personal use only Evolution has consistently outperformed the ASX All Ords Gold Index since inception Share Price Performance: EVN vs ASX All Ords Gold Index A$/sh Index pts 2.25 9,000 2.00 8,000 1.75 7,000 1.50 6,000 1.25 5,000 1.00 4,000 0.75 3,000 0.50 2,000 0.25
Slide 8: Operating assets
Operating assets For personal use only Asset Cracow Pajingo Edna May Mt Rawdon Mt Carlton Ownership 100% 100% 100% 100% 100% Location Queensland Queensland Western Australia Queensland Queensland Stage Production Production Production Production Production Mine Type Underground Underground Open Pit
Slide 9: Three pillars
Three pillars For personal use only Creating shareholder value Operations Discovery M&A Act like owners to Using science and Improve the quality of technology to improve asset portfolio through maintain a cost and opportunistic, logical, probability of productivity focus over transformational value
Slide 10: Highlights
Highlights For personal use only 3 straight years of achieving guidance Development of Mt Carlton FY14 production of 427,703oz AuEq Strong financial position Exciting exploration pipeline 10
Slide 11: Growing production
Growing production For personal use only Gold Production FY11 – FY14 427,703 oz 392,886 oz 346,979 oz 302,842 oz FY11 FY12 FY13 FY14 * Assumes pro forma ownership of current assets over FY11 and FY12 Group Gold Equivalent Production We say, We do, We deliver 11
Slide 12: First half 2015 highlights
First half 2015 highlights Record production of 220,444 gold equivalent ounces1 For personal use only Record low cash costs of US$554 (A$710) per ounce and AISC2 of US$807 (A$1,035) per ounce Record half-year net profit of A$43.1M (up 22% on pcp) Group EBITDA margin increased to 41% Gearin
Slide 13: Sustained annual cost savings
Sustained annual cost savings For personal use only Evolution has achieved sustainable Group-wide cost reductions of over A$42.1 million per annum In addition, the Group is currently benefitting from lower diesel prices which have historically constituted between 5 – 7% of total site spend The
Slide 14: Einstein quote on insanity
For personal use only “The definition of insanity is doing the same thing over and over again, but expecting a different result.” Albert Einstein 14
Slide 15: Discovery
Discovery For personal use only Investing A$20.0M per year to target transformational discoveries through brownfields and greenfields exploration Build competent, Innovative 3D 4D modelling Exploration Framework & experienced seismic Alteration and integrating drilling in Asset priority proof of t
Slide 16: Highlights
Highlights For personal use only Recent high-grade intersections at Pajingo (Camembert) extended mineralised vein to a strike length of over 900m – potential to extend resources along this new structure defined by 3D seismic survey Encouraging 3D seismic survey results at Cracow – faults corresp
Slide 17: Portfolio management
Portfolio management For personal use only Create value through logical, opportunistic acquisitions Leverage off strong operational performance to upgrade the quality of the portfolio over time Make geological calls – backing our discovery team Divest underperforming assets if a fair price c
Slide 18: The Evolution value proposition
The Evolution value proposition For personal use only Low risk – First World jurisdiction Australia Third largest gold producer globally Globally competitive on costs Delivering on guidance since creation Delivery Delivering a significant growth project Delivering on exploration upside G
Slide 19: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au