Slide 1: 2017 Half Year Financial Results
For personal use only 2017 Half Year Financial Results For the six month period ending 31 December 2016 16 February 2017 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: FY17 half year financial highlights
FY17 half year financial highlights Continued delivery of strong financial performance For personal use only Record half underlying profit up 26% to A$136.3M Record statutory profit of A$136.7M EBITDA increased by 21% to A$345.3M Lowest cost quartile performance C1 of A$667/oz (US$503/oz
Slide 4: Asset portfolio delivers record profit
Asset portfolio delivers record profit Increased EBITDA contributions by all assets main driver of 26% increase in net profit For personal use only Higher gold volume and operating costs mostly from full contribution of Cowal and Mungari offset by disposal of Pajingo during the current period
Slide 5: EBITDA margins continue to expand
EBITDA margins continue to expand Group EBITDA margin at 50% with margins expanding at most operations For personal use only Longer life assets generating excellent margins in range of 50% – 65% Focus continues on improvement at Edna May Upside potential at Ernest Henry from higher copper pr
Slide 6: Improved cost profile
Improved cost profile Group making good advancement to achieving three year guidance targets For personal use only Wage movement average of 2.5% with no material change expected going forward Supply contract negotiations in recent months still delivering savings including Chemicals and reage
Slide 7: Mine cash flows building
Mine cash flows building Operating Mine Cash Flow Operations delivering solid operating cash on back of For personal use only Contribution H1 FY17 (A$339.4M) improved EBITDA margin Ernest Henry, 1% Pajingo, Cracow, 2% Higher cash flow expected in second half via increased 9% Edna May, contributi
Slide 8: Organic growth
Organic growth Growth Expenditure Exploration expenditure increased by 39% to A$15.6M (FY16HY: For personal use only A$11.2M). Focus of spend on: Tennant Creek – to earn up to 65% interest Puhipuhi – testing geophysical and geochemical targets Discovery Mungari Resource 40% Definition mine
Slide 9: Group cash flow
Group cash flow Record cash flow from operations underpinning Group growth strategy For personal use only Sustaining and major capital in line with guidance Absent alternative investment options surplus cash is being directed to debt Higher dividend payout rate in place Group Cash Flow Net I
Slide 10: Balance sheet in good shape
Balance sheet in good shape Term Loan Repayment Commitments A$M Cash and undrawn debt of A$239.8M For personal use only 20 Syndicated debt at December 2016 of A$600.0M Revolver Facility: A$75.0M 60 Term Facility B: A$80.0M 135 120 Term Facility D: A$445.0M 80 80 30 No debt payment obliga
Slide 11: Executing a clear and sound strategy
Executing a clear and sound strategy For personal use only RECORD HALF A$136.3M UNDERLYING PROFIT C1 A$667/oz US$503/oz A$339.4M MINE OPERATING CASH FLOW UP 17% UP 26% AISC A$978/oz A$213.6M NET MINE A$136.7M RECORD HALF US$738/oz CASH FLOW UP 5% STATUTORY PROFIT AIC MARGIN A$536/oz 22% GEARING UP 1
Slide 12: For personal use only
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 13: Appendix: Statutory profit reconciliation
Appendix: Statutory profit reconciliation Acquisition & Integration costs of A$6.1M relate to Ernest Henry and Pajingo transactions For personal use only Acquisition accounting fair value unwinding of A$22.0M (A$31.4M before tax) for Cowal and Mungari Non cash deferred tax adjustment amounting
Slide 14: Appendix: Taxation
Appendix: Taxation Income tax For personal use only All unrestricted tax losses utilised during the half year to December 2016 Tax liability of A$8.0M at 31 December 2016 (after utilisation of tax losses) Franking of dividends expected from end of FY17 Restricted tax losses recorded on bal