Slide 1: Acquisition of Cowal & Capital Raising
For personal use only Evolution Mining Acquisition of Cowal & Capital Raising 25 May 2015 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important notes & disclaimer
Important notes & disclaimer IMPORTANT: You must read the following before continuing Not for distribution or release in the United States For personal use only This presentation is issued by Evolution Mining Limited (“Company” or “Evolution” or “EVN”). This presentation has been prepared in relatio
Slide 3: Important notes & disclaimer (cont'd)
Important notes & disclaimer (cont’d) Financial data For personal use only All dollar values are in Australian dollars (“$”or “A$”) unless stated otherwise. The pro forma financial information included in this presentation does not purport to be in compliance with Article 11 of Regulation S-X of the
Slide 4: Important notes & disclaimer (cont'd)
For personal use only Important notes & disclaimer (cont’d) Disclaimer Neither the underwriter nor any of its, or Evolution's, advisors or their respective related bodies corporate, affiliates, directors, officers, partners, employees, agents and associates (“Parties”) have authorised, NOT FOR DISTR
Slide 5: Table of contents
For personal use only Table of contents NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 1. Transaction overview 5 2. Investment highlights 9 3. Overview of Cowal 18 Appendix A. Capital structure and pro forma metrics 24 Appendix B. Overview of Evolution 27 Appendix C. Overview of La Mancha Aust
Slide 6: Transaction overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only 1. Transaction overview 5
Slide 7: Transaction summary
Transaction summary Transformational acquisition of the Cowal gold mine from Barrick Gold Corporation For personal use only Transaction overview(1) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Evolution to acquire 100% of the Cowal gold mine in New South Wales, Australia via the acquisitio
Slide 8: Entitlement Offer details
Entitlement Offer details Equity raising of approximately A$248 million via a 5-for-13 fully underwritten pro-rata Entitlement For personal use only Entitlement offer Offer of new fully-paid ordinary shares (“New Shares”) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Record date is 29 May
Slide 9: Entitlement Offer timetable
For personal use only Entitlement Offer timetable Monday 25th May NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Announcement of Acquisition and Entitlement Offer Record date under the Entitlement Offer Friday 29th May Despatch of Retail Offer booklet and Entitlement and Acceptance Form
Slide 10: Investment highlights
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only 2. Investment highlights 9
Slide 11: Continued momentum in creating a leading Australian gold producer through the acquisition of Cowal
Continued momentum in creating a leading Australian gold producer through the acquisition of Cowal Consistent with long-standing growth strategy focused on creating a leading, globally For personal use only Acquisition of relevant, mid-tier gold producer Cowal NOT FOR DISTRIBUTION OR RELEASE IN TH
Slide 12: Diversified Australian portfolio
Diversified Australian portfolio Cowal(6) Pajingo For personal use only Gold Reserves (Moz)(3) 1.56 Gold Reserves (Moz)(1) 0.10 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Gold Resources (Moz)(3) 3.44 Gold Resources (Moz)(1) 0.82 CY2014A Au Production (Koz) 268 FY2014A Au Production (Koz) 6
Slide 13: Combined operations to result in a new tier of production scale
Combined operations to result in a new tier of production scale Pro forma production profile For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 2,944 1,000 900 810 800 FY15 Au Eq. production (koz) 700 665 600 575 527 500 420 400 360 330 315 300 245 205 205 180 200 150 145 140
Slide 14: Increasing global relevance
Increasing global relevance A leader in the Australian sector…. …transitioning to a globally relevant mid-tier producer For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES (A$m) (US$m)(2) 15,174 2,500 2,500 2,248 2,158 2,173 2,000 1,916 2,000 1,782 1,722 1,657 1,671 Enterprise
Slide 15: Cowal and La Mancha acquisitions further enhance Evolution's leading production and margin profile
Cowal and La Mancha acquisitions further enhance Evolution’s leading production and margin profile For personal use only 900 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Evolution, Cowal & 800 Bubble size represents La Mancha (1) enterprise value 700 FY15 production guidance (koz pa) Evoluti
Slide 16: Growing production profile
Growing production profile Gold production (Au Eq. oz) For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 760,000 – 860,000 30,000 130,000 30,000 230,000 400,000 – 440,000 40,000 40,000 427,703 400,000 400,000 392,920 346,979 302,842 FY11 FY12 FY13 FY14 FY15 Guidance Pro form
Slide 17: Improving physical and financial metrics
Improving physical and financial metrics Evolution + For personal use only Evolution + La Mancha Cowal + Evolution Cowal NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Cowal Australia(2) La Mancha Australia(2) Annual Production (koz)(1) 400 – 440 230 – 260 630 – 700 130 – 160 760 – 860 Reserve
Slide 18: Strong balance sheet and financial profile
Strong balance sheet and financial profile Higher cash margin of Cowal asset further Term Loan amortisation schedule For personal use only enhances current positive cash generation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 120.0 Bank support of transaction demonstrated by 100.0 fundin
Slide 19: Overview of Cowal
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only 3. Overview of Cowal 18
Slide 20: Cowal overview
Cowal overview Asset overview Asset location For personal use only Approximately 40 km north-east of West NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Location Wyalong in New South Wales, Australia Mining method Conventional open pit Cowal Sydney Reserves (P+P) 41.5Mt @ 1.2 g/t for 1.6
Slide 21: Mining and processing
For personal use only Mining and processing Mining Processing NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Processing plant has capacity of around 7.7Mtpa but is Currently mining the E42 ore body limited by operating permit to 7.5Mtpa and has Conventional drill and blast, load and haul
Slide 22: Geology and exploration potential
For personal use only Geology and exploration potential NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES The Cowal gold deposits are structurally hosted (epithermal to mesothermal) gold deposits composed of sheeted veins and shear hosted lodes Exploration over the Cowal tenements has advance
Slide 23: Strong production history and range of upside opportunities
Strong production history and range of upside opportunities For personal use only 1 Operating cost initiatives under Evolution management NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Leverage Evolution’s operating expertise to reduce operating costs and improve production efficiencies Id
Slide 24: The Evolution value proposition
For personal use only The Evolution value proposition Low risk, politically stable jurisdiction NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Australia Third largest gold producing country globally Costs rapidly reducing Australian dollar depreciation Evolution acquiring a high qual
Slide 25: Appendix A: Capital structure and pro forma metrics
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Appendix A Capital structure and pro forma metrics 24
Slide 26: Improved scale and liquidity
Improved scale and liquidity Undertaking the Entitlement Offer provides: For personal use only − Improved liquidity in Evolution shares NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES − Increased scale and funding capacity for growth La Mancha’s commitment and support as a long term shareho
Slide 27: Evolution pro forma capitalisation
Evolution pro forma capitalisation La Mancha Australia Cowal acquisition and financing Evolution pro forma For personal use only acquisition(5) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES (+) La Mancha (+) La Mancha EVN pro forma Evolution (+) Cowal Evolution pro forma Australia additional
Slide 28: Appendix B: Overview of Evolution
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Appendix B Overview of Evolution 27
Slide 29: Evolution Mining overview
Evolution Mining overview(1) ASX Code EVN For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Basic shares outstanding 716.8M Basic market capitalisation(2) A$842M Average daily share turnover(3) 4.5M Cash and unsold doré(4) A$38.0M Debt(5) A$91.8M 327,275oz at Forward sales(6
Slide 30: Strategy – three pillars
For personal use only Strategy – three pillars NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Creating shareholder value Operations Discovery M&A Using science and Improve the quality of Act like owners to technology to asset portfolio maintain a cost and through opportunistic, improve probabi
Slide 31: Highlights
For personal use only Highlights NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 3 ½ straight years of achieving guidance Development of Mt Carlton Portfolio upgrade - La Mancha combination Strong financial position Expanding exploration pipeline 30
Slide 32: Discovery
Discovery Commitment to invest a minimum of A$20.0M per year to target transformational For personal use only discoveries within our expanding and highly prospective Australasian footprint NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Cowal 1. 1. Strategic investment of up to 19.9% stake in
Slide 33: Appendix C: Overview of La Mancha Australia
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Appendix C Overview of La Mancha Australia 32
Slide 34: Overview of La Mancha Australia
Overview of La Mancha Australia La Mancha’s Australian assets are For personal use only located 20km directly west of Kalgoorlie NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES in Western Australia and consist of: Frog’s Leg underground gold mine White Foil open pit gold mine Mungari CI
Slide 35: Frog's Leg
Frog’s Leg Historical Production The high-grade Frog’s Leg underground koz For personal use only gold mine is a high quality, long-life 150 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES asset which has seen substantial capital 100 131 131 125 investment since underground mining 105 commence
Slide 36: White Foil
For personal use only White Foil The White Foil open-pit gold mine is located 2km to the west of the Frog’s Leg gold mine NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Restarted in mid-2014 following the completion of the Mungari processing plant White Foil produced 21,500 ounces of gol
Slide 37: Mungari processing plant
For personal use only Mungari processing plant The Mungari CIL processing plant was completed in May 2014 on time and on budget at a cost of NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES A$110 million Highly strategic asset, located in an active mining region with a significant gold endow
Slide 38: Appendix D: JORC resources and reserves statements and foreign estimates
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Appendix D foreign estimates JORC resources and reserves statements and 37
Slide 39: For personal use only
For personal use only The information in this document that relates to Evolution’s Mineral Resources and Ore Reserves is extracted from the NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX report entitled “Annual Mineral Resources and Ore Reserves Statement” created on 14 May 2015 (the “Re
Slide 40: Evolution Ore Reserves December 2014
For personal use only Evolution Ore Reserves December 2014 Evolution Ore Reserves – December 2014 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Gold Proved Probable Total Reserve Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Project Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (
Slide 41: Evolution Mineral Resources December 2014
For personal use only Evolution Mineral Resources December 2014 Evolution Mineral Resources – December 2014 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes Project Type Cut-Off Gr
Slide 42: Cowal Mineral Reserves December 2014
Cowal Mineral Reserves December 2014 Cowal Mineral Reserves – December 2014 For personal use only Proven Probable Total Reserve NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Cut-off Tonnes Tonnes Tonnes Type Gold Grade Contained Gold Grade Contained Gold Grade Contained (g/t Au) (Mt) (g/t) go
Slide 43: Cowal Mineral Resources December 2014
Cowal Mineral Resources December 2014 Cowal Mineral Resources – December 2014 at a variable cut-off For personal use only Measured Indicated Inferred Total Resource NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Gold Gold Gold Gold Type Tonnes Contained Tonnes Contained Tonnes Contained Tonnes
Slide 44: La Mancha Australia Ore Reserves and Mineral Resources
La Mancha Australia Ore Reserves and Mineral Resources Ore Reserves – December 2014 For personal use only Proved Probable Total Reserve NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Project Type Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal (Mt) (g/t)
Slide 45: Appendix E: Key risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Key risks Appendix E 44
Slide 46: Key risks
Key risks There are various risks associated with investing in Evolution, as with any stock market investment. This section sets out: − existing business and operational risks for Evolution - these risks are generally common to gold and silver mining operators in Australia including Cowal and La M
Slide 47: Existing business and operational risks for Evolution (cont.)
Existing business and operational risks for Evolution (cont.) Replacement of Evolution must continually replace reserves depleted by production to maintain production levels over the long term. Reserves can be For personal use only depleted Ore replaced by expanding known ore bodies, locating new
Slide 48: Existing business and operational risks for Evolution (cont.)
Existing business and operational risks for Evolution (cont.) For personal use only Regulatory risks The operations of Evolution are subject to various Federal, State and local laws and plans including those relating to mining, prospecting, development, permit and licence requirements, industrial
Slide 49: Risks specific to Evolution's proposed acquisition of Cowal
Risks specific to Evolution’s proposed acquisition of Cowal Completion risk There is no certainty that the acquisition will occur. Completion of the acquisition is subject to certain conditions as identified earlier in For personal use only this presentation. NOT FOR DISTRIBUTION OR RELEASE IN THE
Slide 50: Risks specific to Evolution's proposed acquisition of La Mancha Australia
Risks specific to Evolution’s proposed acquisition of La Mancha Australia Completion risk Completion of the acquisition of La Mancha Australia is subject to certain conditions precedent, including Evolution shareholder For personal use only approval. If any condition precedent is not satisfied and
Slide 51: Risks specific to Evolution's proposed acquisition of La Mancha Australia (cont.)
Risks specific to Evolution’s proposed acquisition of La Mancha Australia (cont.) For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Dilution risk If the La Mancha Australia acquisition (announced on 20 April 2015) completes, that will result in the issue of such number of
Slide 52: Entitlement Offer and share investment risks
Entitlement Offer and share investment risks Underwriting Evolution has entered into an underwriting agreement under which the underwriter has agreed to fully underwrite the Entitlement Offer, For personal use only risk subject to the terms and conditions of the Underwriting Agreement between the pa
Slide 53: Entitlement Offer and share investment risks (cont.)
Entitlement Offer and share investment risks (cont.) Underwriting Retail Entitlement Offer For personal use only risk (cont.) In addition to the Institutional Entitlement Offer termination and restructure events, there are certain events which may occur in the NOT FOR DISTRIBUTION OR RELEASE IN TH
Slide 54: Entitlement Offer and share investment risks (cont.)
Entitlement Offer and share investment risks (cont.) Share market Share market conditions may affect the value of Evolution’s quoted shares regardless of Evolution’s operating performance. Share market For personal use only conditions conditions are affected by many factors such as: NOT FOR DISTRIBU
Slide 55: Appendix F: International selling restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Appendix F International selling restrictions 54
Slide 56: International offer restrictions
International offer restrictions International Offer Restrictions For personal use only This document does not constitute an offer of entitlements ("Entitlements") or new ordinary shares ("New Shares") of the Company in any jurisdiction in which it NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATE
Slide 57: International offer restrictions
International offer restrictions Statutory rights of action for damages and rescission For personal use only Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to NOT FOR DISTRIBUTION OR RELEAS
Slide 58: International offer restrictions
International offer restrictions United Kingdom For personal use only Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of
Slide 59: International offer restrictions
International offer restrictions France For personal use only This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code moné
Slide 60: International offer restrictions
International offer restrictions New Zealand For personal use only This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES The Entitlements
Slide 61: International offer restrictions
International offer restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong