Evolution Mining Limited · ASX:EVN
Evolution Mining — Q2 FY2014 Earnings Presentation
22 slides from Evolution Mining's earnings presentation, Jan 29, 2014
Slide 1: Quarterly Results December 2013
For personal use only Quarterly Results December 2013
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Evolution Mining Limited (“Evolution Mining”) and consists of slides for a presentation concerning the Company. By reviewing/attending this presentation, you acknowledge and agree the following. This presentation includes fo
Slide 3: December quarter highlights
December quarter highlights For personal use only Production Consistent Group production of 107,201oz delivered at an average cash cost of A$764/oz (US$710/oz1) and AISC2 of A$1,049/oz (US$974/oz) – 11% reduction on FY13 AISC Year to date production of 214,396oz Au eq3 at average cost of A$766/o
Slide 4: December quarter production
December quarter production For personal use only Dec Quarter Sep Quarter Year to Date Units 2013 2013 FY14 Gold produced1 oz 107,201 107,195 214,396 By-product silver produced oz 60,388 234,259 294,647 C1 Cash Cost2 A$/oz 764 769 766 C3 Total Cost3 A$/oz 1,194 1,146 1,170 Gold sold oz 96,246 97,211
Slide 5: Improved safety performance
Improved safety performance For personal use only 25.0 30 Sustained improvements in Group safety performance 20.0 24.1 25 Injury prevention programs are Number of TRI’s taking effect TRI Average 15.0 20 Group total recordable injury 15.5 10.0 15 frequency rate is 15.5 Group lost time injury
Slide 6: December quarter AISC
December quarter AISC For personal use only $1,400 $1.03 $1.05 $0.92 $0.93 $1,200 $0.90 $1,000 $0.75 $800 $0.60 US$1,213/oz A$1,178/oz A$1,091/oz A$1,049/oz US$1,000/oz US$974/oz $600 $0.45 $400 $0.30 $200 $0.15 $0 $0.00 FY13 Q1 FY14 Q2 FY14 Group AISC ($A/oz) Group AISC (US$/oz) US Exchange Rate FX
Slide 7: Operations
For personal use only Operations
Slide 8: Delivering stability & predictability
Delivering stability & predictability For personal use only Nine consecutive quarters of robust operating performance A portfolio of five assets delivering operational stability and predictability A focus on capital discipline and productivity efficiencies 400 - 450 koz 392,918oz Guidance 346,
Slide 9: A focus on cost reductions
A focus on cost reductions For personal use only A$26/oz A$12/oz A$66/oz A$1,178/oz A$26/oz A$1,049/oz AISC FY13 C1 Cash cost Royalty Sustaining Admin AISC Dec 2013 Capex Expenses Qtr Note: In FY13 AISC was reported as A$1,228/oz (included Discovery costs). In FY14, AISC definition excludes Discover
Slide 10: Cracow
Cracow For personal use only Consistent gold production of 24,016oz (Sep qtr: 23,352oz) Cash cost of A$712/oz, AISC of A$1,034/oz (Sep qtr: C1 A$761/oz, AISC A$1,085/oz) Further cost reductions following full transition to owner-miner with unit mining costs reduced to A$79/t – a 35% decrease c
Slide 11: Pajingo
Pajingo For personal use only December quarter production of 12,346oz of gold: 81,682t at 4.93g/t Au processed (includes lower grade open pit material) Cash cost of A$1,004/oz, AISC of A$1,481/oz (Sep qtr: A$998/oz, AISC A$1,435/oz) Lower gold production due to some rehabilitation in the upper
Slide 12: Edna May
Edna May For personal use only Consistent gold production of 20,382oz (Sep qtr: 19,869oz) Cash cost of A$978/oz, AISC A$1,172/oz (Sep qtr: A$915/oz, AISC A$1,209/oz) 644,459t processed at 1.04g/t Au – a 12% increase in throughput due to increased oxide feed Gold recovery of 94.4% – a sustain
Slide 13: Mt Rawdon
Mt Rawdon For personal use only Robust gold production of 27,710oz at a cash cost of A$520/oz and AISC of A$674/oz (Sep qtr: 28,213oz, cash cost A$663/oz, AISC A$857/oz) Cash cost reduced by 22% compared to Sep 2013 quarter Continued focus on cost reductions with the establishment of new Weste
Slide 14: Mt Carlton
Mt Carlton For personal use only Above expectation gold equivalent production of 22,747oz (A39 deposit) – a 20% increase compared to the Sep 2013 qtr at a cash cost of A$795/oz and AISC of A$986/oz Unit costs higher due to processing of A39 ore – processing alternates between A39 and V2 deposits
Slide 15: Exploration
For personal use only Exploration
Slide 16: Exploration Highlights
Exploration Highlights For personal use only Exploration expenditure of A$4M for the quarter and A$7.8M YTD 4D Studies are progressing well with diamond drilling brought forward (eight holes for 4,885m) – all results pending At Pajingo, hole JMRD3941 intersected quartz veining – likely to be t
Slide 17: Financials
For personal use only Financials
Slide 18: Financials
Financials For personal use only Revenue from operations was A$160M – comprised of gold doré revenue of A$127M and Mt Carlton concentrate revenue of A$33M Gold sales of 96,246oz at an average price A$1,412/oz Strong operating cash inflow from operating activities of A$15.2M Cash Flow A$160 A$1
Slide 19: Capital discipline
Capital discipline For personal use only Gold hedge book total stands at 205,229oz at average A$1,593/oz Cash in bank at 31 December 2013 of A$37.0M (A$3.7M Sep 2013 qtr) Corporate debt is at A$141.8M with available credit A$58.2M at 31 December 2013 Total capital expenditure was A$43.1M – 6
Slide 20: Evolution Mining
Evolution Mining For personal use only Operational stability and predictability with a portfolio of five operations FY14 production and guidance maintained: 400,000 – 450,000 gold equivalent with cash operating costs in the range of A$770 – A$820/oz All-in Sustaining Cost range of A$1,080 – A$
Slide 21: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
Slide 22: Appendix - Production Summary
Appendix - Production Summary December 2013 Quarter Units Cracow Pajingo Edna May Mt Rawdon Mt Carlton Total / Average For personal use only UG lateral development - capital m 741 448 - - - 1,188 UG lateral development - operating m 757 524 - - - 1,281 Total UG lateral development m 1,497 972 - - -