Slide 1: 2019 Half-Year Financial Results
For personal use only 2019 HALF-YEAR FINANCIAL RESULTS 13 FEBRUARY 2019 JAKE KLEIN – EXECUTIVE CHAIRMAN LAWRIE CONWAY – FINANCE DIRECTOR AND CFO
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 Build a reputation for reliability and transparency Reduce All-in sustaining costs Focus on free cash flow per share Increase returns via dividends Extend reserve life 3
Slide 4: Sustainability
Total Recordable Injury Frequency (TRIF)* SUSTAINABILITY 24.4 For personal use only ◼ Inaugural Sustainability Report published in 19.9 December 2018 half-year 12.0 ◼ Driving safety culture where our people do the 9.6 9.7 7.3 right thing because they want to, not because they 8.0 5.5 have to ◼ HSE S
Slide 5: Financial Highlights
Financials Units H1 FY19 H1 FY18 Change FINANCIAL HIGHLIGHTS Statutory Profit before tax A$M 132.1 175.1 (43.0) For personal use only Statutory Profit after tax1 A$M 91.1 122.5 (31.4) EBITDA A$M 359.7 399.1 (39.4) Operating Cash Flow A$M 387.9 415.1 (27.1) Group Cash Flow2 A$M 110.8 176.8 (66.0) EBI
Slide 6: Underlying Net Profit
UNDERLYING NET PROFIT For personal use only ◼ Profit decline driven mainly by non-cash impact items ◼ Cash impact items totalled A$11.3M ◼ Non-cash impact items totalled A$32.2M ◼ Better performance planned for second half of FY19 ◼ Current spot gold price A$155/oz higher than price achieved in firs
Slide 7: Mine Operating Costs – Key Drivers
MINE OPERATING COSTS – KEY DRIVERS For personal use only Mine operating costs (A$M) 10.6 377.8 11.4 8.1 6.0 5.8 330.7 5.2 Mine Labour Power / Maintenance Other Inventory Mine Development Mine Operating Costs Diesel Price Capitalisation (2) Operating Costs December 2017 (1) December 2018 Cash (A$25.1
Slide 8: Operating Cash and EBITDA Margin
OPERATING CASH AND EBITDA MARGIN For personal use only Operating cash flow per ounce vs achieved gold price Group EBITDA margin vs achieved gold price 53% 1,641 1,645 1,695 1,597 49% 1,442 1,489 48% 46% 40% 33% 1,013 1,015 1,597 1,641 1,645 1,695 1,442 1,489 782 837 580 699 (1) (1) FY14 FY15 FY16 FY
Slide 9: Discovery and Resource Definition
DISCOVERY AND RESOURCE DEFINITION For personal use only Discovery & resource definition expenditure (A$M) ◼ Group average reserve life of ~10 years 62.5 ◼ December half year investment of A$29.9M in discovery and resource definition 29.4 19.4 ◼ Continued high levels of drilling activity 21.3 ◼ Disco
Slide 10: Group Cash Flow
Group cash flow (A$M) GROUP CASH FLOW 176.8 For personal use only (21.8) 16.3 110.8 ◼ Lower profit having lesser impact on cash (31.9) generation (28.6) ◼ All sites cash flow positive after capital investment ◼ Drivers to lower group cash flow: Group Cash Operating Capital Tax Payment Working Group
Slide 11: Robust Balance Sheet
Leverage ratio ROBUST BALANCE SHEET 0.56 For personal use only 0.45 ◼ Net bank debt position: A$41.4M ◼ Cash balance: A$313.6M 0.15 ◼ Term Facility D: A$355.0M 0.09 0.06 ◼ Fully undrawn revolver of A$350.0M available Jun-15 Jun-16 Jun-17 Jun-18 Dec-18 ◼ Gearing reduced to 1.4% Jun-15 – Pre Equity ra
Slide 12: Dividends
Dividends DIVIDENDS (% of revenue vs cents per share declared) 8% 8% 6% For personal use only ◼ Interim dividend 4 ◼ Fully franked 3.5 cents 3% 3% 3 2% 2% ◼ Equal to 8% of revenue 2 3.5 3.5 1 1 2 ◼ A$59.4M to be paid on 29 March 2019 1 1 1 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 H1 ◼ Record date of 22
Slide 13: Return on Investment
RETURN ON INVESTMENT For personal use only ◼ Generating a return on investment a primary focus of the business Bubble size ◼ Longest life assets generating highest returns represents midpoint of FY19 ◼ All assets generating returns greater than 13% per annum production guidance ◼ Mt Carlton and Crac
Slide 14: Generating Superior Financial Returns
GENERATING SUPERIOR FINANCIAL RETURNS For personal use only Global leader in low cost production Highest margins from longer life assets Assets funding own capital for future production Balance sheet in great shape Shareholders rewarded through dividends and capital growth 14
Slide 15: Appendix
For personal use only APPENDIX
Slide 16: EBITDA Margins
EBITDA MARGINS For personal use only ◼ Sites continue to deliver high cash margins ◼ Portfolio change in recent years delivering benefits ◼ Longer life assets generating highest margins and main contributors Site FY19 H1 EBITDA margin 65% 58% 52% 46% 31% 34% Cowal Ernest Henry Mt Carlton Mt Rawdon M
Slide 17: FY19 Guidance: Production and Costs
FY19 GUIDANCE: PRODUCTION AND COSTS For personal use only Gold production All-in sustaining cost* All-in sustaining cost* FY19 Guidance (oz) (A$/oz) (US$/oz) Cowal 240,000 – 250,000 975 – 1,075 705 – 780 Mungari 125,000 – 135,000 1,050 – 1,100 760 – 800 Mt Carlton 95,000 – 105,000 670 – 720 485 – 52
Slide 18: FY19 Guidance: Capital
FY19 GUIDANCE: CAPITAL For personal use only Major project capital items ◼ Cowal: Sustaining Major FY19 Guidance Capital Capital ◼ Stage H cut-back (A$70 – A$75M) (A$M) (A$M) ◼ Float Tails Leach (A$6 – A$9M) ◼ Other process plant projects (A$29 – A$36M) Cowal 55 – 60 105 – 120 ◼ Mt Carlton Mungari 1
Slide 19: FY19 Guidance: Discovery and Non-Cash
FY19 GUIDANCE: DISCOVERY AND NON-CASH For personal use only Depreciation & Fair Value Resource Discovery FY19 Guidance Amortisation* Unwind Definition** (A$M) (A$/oz) (A$M) (A$M) Cowal 430 – 480 10 – 15 3–7 15 – 20 Mungari 500 – 550 10 – 15 2–4 15 – 20 Mt Carlton 580 – 630 0–1 1–2 Mt Rawdon 550 – 60
Slide 20: Year Outlook: FY19-FY21
3 YEAR OUTLOOK: FY19-FY21 For personal use only Production Guidance koz AISC Guidance A$/oz 11 22 910 770 775 765 900 895 833 780 907 720 725 710 797 850 845 860 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Production Low Production High Divested Assets AISC Low AISC High Sustaining Capital Gui
Slide 21: Production Target
PRODUCTION TARGET For personal use only Cautionary statement concerning the proportion of Exploration Targets1 Of Evolution’s Production Outlook, 2% is comprised of Exploration Targets. The potential quantity and grade of this exploration target is conceptual in nature and there has been insufficien
Slide 22: For personal use only
For personal use only Evolution MIINTINE