Evolution Mining Limited · ASX:EVN
Evolution Mining — BAML Global Metals, Mining & Steel Conference 2017
26 slides from Evolution Mining's conference presentation, May 17, 2017
Slide 1: Global Metals, Mining & Steel Conference 2017
For personal use only Global Metals, Mining & Steel Conference 2017 May 2017 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: Executing a clear and consistent strategy
Executing a clear and consistent strategy Australia Low risk, first world, politically stable jurisdiction For personal use only Highly skilled mining workforce Mid-tier 6 – 8 asset portfolio to ensure focus is maintained Low cost Five consecutive years of reducing All-in Sustaining Costs
Slide 4: Overview
Overview ASX code EVN For personal use only Shares outstanding 1,683M Market capitalisation(1) A$3,685M / US$2,765M Average daily share turnover(2) A$25M / US$19M Net debt(3) A$541M / US$406M Forward sales(3) 518,992oz at A$1,639/oz Dividend policy 4% of revenue Major shareholders La Mancha 28%(4),
Slide 5: Upgrading the quality of our asset portfolio
Upgrading the quality of our asset portfolio For personal use only $1,800 Bubble size represents FY17F (Gold price of A$1,700/oz less FY17F AISC guidance)(1) production guidance(1) $1,600 Ernest Henry Current indicative AISC margin (A$/oz) $1,400 Group Reserve life > 8 years $1,200 Mt $1,000 Carlton
Slide 6: Australia's 2nd largest gold miner
Australia’s 2nd largest gold miner Ernest Henry (5)(6) Cowal (100%) For personal use only (Evolution economic interest) Gold Reserves 2016 (Moz)(1) 3.20 Reserves 2016(7) 0.96Moz Au, 182kt Cu Gold Resources 2016 (Moz)(1) 5.04 Resources 2016(7) 1.73Moz Au, 315kt Cu Reserve Grade 2016 (Au g/t
Slide 7: Cowal
Cowal For personal use only July Evolution March 2015 Performance 2017 MINING + 8 years MINING PERMIT TO 2024 PERMIT TO 2032 1.56Moz1 + 2.28Moz2 2014 2016 RESERVES RESERVES 3.20Moz3 2014 MINERAL RESOURCES 3.43Moz1 + 2.24Moz2 2016 MINERAL RESOURCES 5.04Moz3 July 2015 – March 2017 GOLD PRODUCTION 439k
Slide 8: Additional opportunities at Cowal
Additional opportunities at Cowal Assessing further asset enhancement For personal use only opportunities including: E46 Co-treatment of high-grade oxide stockpiles to bring forward treatment E46 East Increased gold production of 10 – 12koz per annum Secondary crushing E42 Increase through
Slide 9: Ernest Henry
Ernest Henry Ernest Henry ore body looking west Large scale, long life, copper-gold asset operated by For personal use only Glencore Approximately A$600 million recently invested by Glencore in expanding the underground mine to 6.4Mtpa Evolution’s economic interest1: 1200 RL 100% of gold and
Slide 10: Mungari
Mungari Strategic footprint in the world-class Kalgoorlie region For personal use only ~990km2 land position Early phase of exploration programme Strategically located 1.7Mtpa CIL processing plant Ora Banda (92koz) Significant potential to expand production and extend Zuleika mine life (32
Slide 11: Mt Carlton
Mt Carlton One of the highest grade open pit gold mines in the world For personal use only Developed by Evolution and commissioned in 2013 – initial project capital fully repaid by December 2016 Strong cash generation with FY16 net mine cash flow of A$103 million Successful infill drilling i
Slide 12: Mt Rawdon
Mt Rawdon For personal use only Nov Evolution March 2011 Performance 2017 SCHEDULED COMPLETION 2022 + 4 years SCHEDULED COMPLETION 2026 2011 RESERVES 0.9Moz Replacing depletion 2016 RESERVES 0.9Moz LOAD & HAUL Contract Cost benefits and improved LOAD & HAUL Owner operator efficiency Resource drillin
Slide 13: Cracow
Cracow For personal use only Nov Evolution March 2011 Performance 2017 LIFE OF MINE 2014 + 6 years LIFE OF MINE 2020+ 2011 RESERVES 0.2Moz Replacing depletion 2016 RESERVES 0.2Moz MINING Contract Cost benefits and MINING Owner operator productivity improvements Resource drilling over 20 years 802km
Slide 14: Edna May
Edna May Turnaround progressing under new management post strategic review For personal use only Significant increase in gold production and decrease in AISC expected from June 2017 quarter Production from underground to commence in FY18 Mineral Resources 848koz Au Ore Reserves 426koz Au G
Slide 15: High margin business
High margin business 66% EBITDA Margin For personal use only 59% 60% 58% 58% 49% 52% 50% 46% 48% 47% 46% 45% 17% 11% Cowal Mungari Mt Carlton Mt Rawdon Edna May Cracow Ernest Henry Group* FY16 FY17 Half *Group excludes Pajingo in FY17 Half Group AISC1,2 (per ounce) Operating Mine Cash Flow (A$M) US$
Slide 16: Stand-out amongst global peers
Stand-out amongst global peers 2017 Peer Positioning only 8,000 use(US$/oz) Agnico Eagle 7,000 Randgold Newcrest B2Gold Value/Production 6,000 Goldcorp Eldorado Torex 5,000 personal Barrick 4,000 Detour Oceana Tahoe Northern Star Rox Gold 3,000 Evolution Enterprise Newmont Resolute Acacia 2,000 St B
Slide 17: Three year outlook
Three year outlook For personal use only Production (koz) AISC (US$/oz)1 860 880 890 803 800 820 830 867 720 675 675 739 675 630 625 438 FY15A FY16A FY17 FY18 FY19 FY15A FY16A FY17 FY18 FY19 Production actual Production Low Production High AISC Actual AISC Low AISC High 1.Evolution has provided a th
Slide 18: ASX code: EVN
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 19: FY17 guidance
FY17 guidance For personal use only Gold production All-in sustaining cost All-in sustaining cost FY17 Guidance (oz) (A$/oz) (US$/oz)3 Cowal 245,000 – 260,000 885 – 945 665 – 710 Mungari 150,000 – 160,000 970 – 1,030 730 – 775 Mt Carlton 90,000 – 100,000 675 – 725 505 – 545 Mt Rawdon 90,000 – 100,00
Slide 20: Evolution Gold Ore Reserves
Evolution Gold Ore Reserves Gold Proved Probable Total Reserve For personal use only Competent Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person Project Type Cut-Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Cowal1 Open pit 0.4 43.70 0.71 994 73.0
Slide 21: Evolution Gold Mineral Resources
Evolution Gold Mineral Resources Gold Measured Indicated Inferred Total Resource For personal use only Competent Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes Person Project Type Cut-off Grade Metal Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz)
Slide 22: Evolution Copper Reserves and Resources
Evolution Copper Reserves and Resources Group Copper Ore Reserves Statement For personal use only Copper Proved Probable Total Reserve Competent Copper Copper Copper Grade Copper Copper Copper Person Project Type Cut-Off Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Grade (%) Metal (kt) (%) Metal (kt) Grade (
Slide 23: Cowal Ore Reserve growth
Cowal Ore Reserve growth Cowal Ore Reserve Changes For personal use only December 2014 to December 2016 4,000 3,500 87 29 326 494 Reserve ounces (koz) 3,000 309 69 900 2,500 231 2,000 471 1,500 3,200 2,848 1,000 1,555 500 0 2014 Reserve Stockpiles Stage G Stage H Depletion December Additions Model C
Slide 24: Slide notes
Slide 6 notes For personal use only Source: Data sourced from Company reported figures and guidance where available. Location size denotes production for FY2016 (1) This information is extracted from the report entitled “Annual Mineral Resources and Ore Reserve Statement” released by Evolution to AS
Slide 25: Production target
Production target Production target FY17 – FY19 For personal use only Production AISC Sustaining capital Period Major project capital (A$M)2 (Koz) (A$/oz) (A$/M) FY171 800 – 860 900 – 960 90 – 120 105 – 130 FY18 820 – 880 840 – 900 80 – 110 110 – 215 FY19 830 – 890 830 – 900 75 – 105 75 – 210 Materi
Slide 26: Our Evolution
Our Evolution Acquisition of Mungari For personal use only economic acquisition interest in with La Mancha Ernest Cowal Takeover of Henry acquisition Phoenix Tennant Gold Creek JV Puhipuhi with acquisition FY10 FY17 Mt Carlton Emmerson exploration project first concentrate Resources FY10 FY16 produc
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