Slide 1: 2019 Full Year Financial Results
For personal use only 2019 FULL YEAR FINANCIAL RESULTS 15 AUGUST 2019 JAKE KLEIN – EXECUTIVE CHAIRMAN L A W R I E C O N W AY – F I N A N C E D I R E C T O R A N D C F O
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT For personal use only 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”, “expect
Slide 3: Clear and Consistent Strategy
CLEAR AND CONSISTENT STRATEGY For personal use only A portfolio of 6 to 8 assets generating superior returns with an average mine life of at least 10 years Open to all Build a quality gold, reputation for silver and Inspired sustainability, copper-gold reliability and Mt Carlton people transparency
Slide 4: Sustainability Principles
SUSTAINABILITY PRINCIPLES For personal use only 4
Slide 5: Safety
SAFETY For personal use only ◼ Driving a safety culture of doing the right thing because people want to, not because they have to ◼ Safety stop conducted across all sites in July 2019 following recent tragedies in Queensland ◼ Strong focus on addressing rise in TRIF ◼ FY19 performance: ◼ improvement
Slide 6: Financial Highlights
Financials Units FY19 FY18 Change FINANCIAL For personal use only HIGHLIGHTS Statutory Profit before tax A$M 314.8 338.9 (7%) Statutory Profit after tax A$M 218.2 263.4 (17%) Underlying Profit after tax A$M 218.2 250.8 (13%) EBITDA A$M 730.3 795.1 (8%) Operating Mine Cash Flow A$M 771.5 811.8 (5%) N
Slide 7: Underlying Net Profit
UNDERLYING NET PROFIT For personal use only ◼ Fundamentals of business remain strong ◼ Main drivers to lower profit were: ◼ Lower copper and silver prices and volumes (A$25.3M) offset by higher gold revenue (A$31.9M) ◼ Completion of White Foil cutback in FY18 resulted in A$27.8M costs moving from ca
Slide 8: Mine Operating Costs – Key Drivers
MINE OPERATING COSTS – KEY DRIVERS For personal use only FY20 Key Cost Drivers (1) ◼ Market conditions on costs have moved higher from the lows of 12-18 months ago Other ◼ Top seven cost categories comprise ~80% of cost base 21% Employee Labour 25% ◼ Labour costs increased ~3% during FY19 and Diesel
Slide 9: EBITDA Margins
EBITDA MARGINS Group EBITDA Margin (%) For personal use only ◼ All sites continue to deliver strong operating cash margins FY19 48% ◼ Longest life assets generating highest margins FY18(1) 53% FY19 Site EBITDA Margin FY17(1) 49% FY16 46% 66% 61% 53% 35% 43% 32% FY15 40% Cowal Ernest Henry Mt Carlton
Slide 10: Mine Cash Flow
MINE CASH FLOW 300 FY19 Mine Cash Flow (A$M) 772 800 250 232 232 700 For personal use only 600 200 ◼ Strong FY19 mine cash flow 150 120 500 400 222 64 60 62 300 ◼ Operating cash flow: A$772M 100 498 200 50 87 85 100 ◼ Net mine cash flow: A$498M - 36 32 36 0 Cowal Ernest Henry Mt Carlton Mungari Mt R
Slide 11: Return on Investment
RETURN ON INVESTMENT For personal use only ◼ Disciplined capital investment to ensure all assets generate adequate returns ◼ Average annual returns of 12 – 23% across portfolio with 10 – 27% in FY19 Bubble size represents midpoint of ◼ Cowal now truly a cornerstone Tier 1 asset FY20 gold production
Slide 12: Discovery and Resource Definition
DISCOVERY AND RESOURCE DEFINITION Discovery & Resource Definition Expenditure For personal use only ◼ Successful discovery strategy delivering strong results (A$M) 16.5 ◼ GRE46 & Dalwhinne at Cowal ◼ Boomer showing early signs at Mungari ◼ FY20 discovery investment increased to A$80 – A$105M 15.8 70
Slide 13: Dividends
12% 14 11% DIVIDENDS 10% Dividends (% of Revenue vs cents per share declared) 8% 12 10 8% For personal use only 6% 8 ◼ Continuing to increase return to shareholders 6% 6 6 ◼ 13th consecutive dividend for total of A$459M 4 4% 3% 3% 4 ◼ New dividend policy approved 2% 2% 3 2 2% 3.5 3.5 2 ◼ Based on fr
Slide 14: Generating Superior Financial Returns
GENERATING SUPERIOR FINANCIAL RETURNS For personal use only Healthy Production Mix Global Leader in Low Cost Production High Margins Equating to Strong Cash Flow Cowal Mungari Mt. Carlton A$2,207/oz A$1,038/oz Mt. Rawdon Cracow Ernest Henry A$1,760/oz US$1,498/oz 13% 12% US$1,257/oz A$772M A$670/oz
Slide 15: Appendix
For personal use only APPENDIX
Slide 16: FY20 Guidance: Production, Costs & Capital
FY20 GUIDANCE: PRODUCTION, COSTS & CAPITAL For personal use only C1 cash All-in sustaining Sustaining Major Gold production FY20 Guidance costs cost Capital Capital (oz) (A$/oz) (A$/oz) (A$M) (A$M) Cowal 255,000 – 265,000 810 – 860 930 – 980 25 – 35 115 – 135 Mungari 115,000 – 125,000 1,030 – 1,080
Slide 17: FY20 Guidance - Capital
FY20 GUIDANCE - CAPITAL For personal use only Major project capital items ◼ Cowal: Sustaining Major Capital ◼ Stage H cut-back A$75 – 85M FY20 Guidance Capital (A$M) ◼ IWL A$35 – 40M (A$M) ◼ Process plant projects & Other A$ 5 – 10M ◼ Mt Carlton: Cowal 25 – 35 115 – 135 ◼ Underground development A$3
Slide 18: FY20 Guidance – Discovery and Non-Cash
FY20 GUIDANCE – DISCOVERY AND NON-CASH For personal use only Depreciation & Resource Discovery FY20 Guidance Amortisation(1) Definition(2) (A$M) (A$/oz) (A$M) Cowal 350 – 400 3–5 50 – 60(3) Mungari 300 – 350 1–2 15 – 20 Mt Carlton 650 – 700 1–2 2–4 Mt Rawdon 475 – 525 1–2 0–1 Cracow 400 – 450 5–6 3–
Slide 19: For personal use only
For personal use only Evolution MIINTINE