Evolution Mining Limited · ASX:EVN
Evolution Mining — Macquarie Australia Conference 2014
24 slides from Evolution Mining's conference presentation, May 7, 2014
Slide 1: Evolution Mining - Macquarie Australia Conference
For personal use only Evolution Mining Macquarie Australia Conference 7 May 2014 Jake Klein - Executive Chairman
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: Australian Mid-tier Gold Producer
Australian Mid-tier Gold Producer For personal use only Corporate Information ASX Code EVN Shares 710M Market Capitalisation1 A$667M Daily Turnover2 A$2.8M Major Shareholders Newcrest 32.5% FY14 Guidance Van Eck 10.1% Allan Gray 9.6% Production 400k - 450k oz AuEq C1 cost4 A$770 – A$820/oz Cash3 A$3
Slide 4: Corporate Strategy
Corporate Strategy For personal use only Operational stability and predictability through a portfolio of similar sized mines Australia – a low political risk, first world jurisdiction with a high gold endowment Improving the quality of the portfolio through productivity, reliability and discov
Slide 5: A Paradigm Shift
A Paradigm Shift For personal use only Multi jurisdictional model broken Majors Scaling back global operations Discovery and development hurdles Juniors getting beyond reach Large enough to fund growth through cash flow Small enough to deliver meaningful Mid-tiers growth Well positioned
Slide 6: The Australian Opportunity
The Australian Opportunity For personal use only A$ falling Gold Industry C1 Cash Costs by Country US$/oz Q3 2012 Input costs reducing 2,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 1,800 Productivity improving 1,600 Talent returning to the sector 1,400 Attractive political envi
Slide 7: Core Strengths
Core Strengths For personal use only Mt Carlton Low operational risk – portfolio of mines delivering consistent results Solid reserve and resource base Edna May 3.6 Moz AuEq Ore Reserve 7.7 Moz AuEq Mineral Resource Pajingo Excellent exploration potential Cracow Mt Rawdon Growth oriented – gold prod
Slide 8: Reliability and Consistency
Reliability and Consistency Delivering on production and cash cost guidance since creation For personal use only Portfolio of five mines ensures a predictable performance Reliability and consistency recognised through share price outperformance Evolution (EVN) vs ASX All Ords Gold Index (XGD)
Slide 9: Real achievement in reducing costs
Real achievement in reducing costs For personal use only Total Spend - FY13A vs FY14F Group AISC³ (A$/oz) Total Spend (A$M) FY13 FY14 % Actual Forecast¹ Change FY13 Average - A$1,228/oz Cracow 145.8 108.0 -26% FY14 YTD Average - A$1,074/oz Pajingo 140.8 84.5 -40% A$1,353/oz A$1,266/oz A$1,091/oz A$1
Slide 10: Shift to owner-miner at Cracow & Mt Rawdon
Shift to owner-miner at Cracow & Mt Rawdon Substantial cost savings following successful transition to owner-miner at Cracow (July For personal use only 2013) estimated at A$18M – A$20Mpa in FY14 (A$180 – A$200/oz AISC1 saving) Transition to owner-miner at Mt Rawdon currently underway Cracow - E
Slide 11: Smarter drill and blast at Mt Rawdon
Smarter drill and blast at Mt Rawdon Estimated ~A$5Mpa cost reductions following drill and blast optimisation project For personal use only Large diameter (203mm) blast holes, 15m benches (from 10m), plus electronic detonation (Unitronic600) has improved productivity 45% decrease in production
Slide 12: Mill ball recycling between mine sites
Mill ball recycling between mine sites Worn mill balls (30 - 60mm diameter) rejected from Mt Carlton SAG for nil value For personal use only Opportunity for the Pajingo ball mill to utilise smaller balls discarded by Mt Carlton – an initiative identified by site personnel Estimated savings of
Slide 13: Reduction in voluntary turnover
Reduction in voluntary turnover Voluntary turnover¹ halved between March 2013 and March 2014 For personal use only Reflects a more competitive labour force, increased focus on quality of hire and improved on-boarding processes Group Voluntary Turnover (%) 30% 25% 20% 15% 10% Mar-13 Jun-13 Sep-13
Slide 14: Embracing technology – industry leading App
Embracing technology – industry leading App Efficient capture, reporting and evaluation of real-time mining data For personal use only Secure, live data stream via WiFi to server and user interfaces (iPhones and iPads) Live mobile reporting (iPhones and iPads), instant utilisation and availabi
Slide 15: Pioneering new escape-way design
Pioneering new escape-way design An innovative, ground-breaking escape-way system designed and installed at For personal use only Cracow through collaboration between Evolution and Safescape Record 385m long escape-way fully integrated into a 3.5m diameter Vent Raise Cheaper than a traditional
Slide 16: Seismic and 4D – technology and capacity
Seismic and 4D – technology and capacity New techniques and Evolution’s talent to reveal deeper discoveries and evaluate For personal use only potential acquisition opportunities 3D seismic at Cracow and Pajingo Spectral analysis to map alteration minerals associated with gold at Mt Carlton
Slide 17: Prudent and opportunistic hedge
Prudent and opportunistic hedge Gold hedge secured to self-fund near-term capital expenditure at Edna May and provide For personal use only appropriate rate of return on capital 156,281oz at an average gold price of A$1,598/oz A$ GOLD PRICE A$ 1,650 Sold forward 156,281 ounce of gold 1,600 at A$
Slide 18: The Evolution Value Proposition
The Evolution Value Proposition For personal use only Low risk – First World jurisdiction Australia Second largest gold producer globally Globally competitive on costs - and improving Delivering on guidance since creation Delivery Delivering a significant growth project Delivering on exp
Slide 19: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
Slide 20: Appendix
For personal use only Appendix
Slide 21: Mineral Resource Statement Dec 2012
Mineral Resource Statement Dec 2012 Mineral Resource Statement - December 2012 Gold Measured Indicated Inferred Total Resource For personal use only Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Cut-Off (Mt) (g/t) (ko
Slide 22: Ore Reserve Statement Dec 2012
Ore Reserve Statement Dec 2012 Gold Proved Probable Total Reserve For personal use only Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Cut-Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Pajingo Open-Pit 0.65 0.01 3.9 1 0.17 5.6 30 0.18 5.5
Slide 23: Competent Person Statement
Competent Person Statement The information in this presentation that relates to exploration results, Mineral Resources or Ore Reserves listed in For personal use only the table below is based on work compiled by the person whose name appears in the same row, who is employed on a full-time basis by t
Slide 24: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
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