Slide 1: Evolution Mining 2014 Full Year Financial Results
For personal use only Evolution Mining 2014 Full Year Financial Results 28 August 2014 Jake Klein - Executive Chairman Lawrie Conway - Finance Director & Chief Financial Officer
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: FY14 highlights
FY14 highlights For personal use only Delivering on production and cost guidance FY14 gold equivalent¹ production increased by 9% to 427,703oz C1 cash cost of A$781/oz² – at the lower end of guidance Lost time injury frequency rate reduced from 3.7 to 1.7 in FY14 Cash flow from operations
Slide 4: Three pillars
Three pillars For personal use only Creating shareholder value Operations Discovery M&A Act like owners to Using science and Improve the quality of technology to asset portfolio maintain a cost and improve probability through opportunistic, productivity focus of transformational logical, value over
Slide 5: FY14 financial highlights
FY14 financial highlights For personal use only Sales revenue increased by 5% to A$634.4M EBITDA of A$207.6M (FY13: A$211.7M) Reported net profit of A$50.0M (FY13: net loss of A$307.4M²) Underlying net profit increased by 13% to A$50.0M (FY13: A$44.4M) Cash flow from operations of A$91.0M¹
Slide 6: Profit summary
Profit summary For personal use only 30-Jun-14 30-Jun-13 % increase 12 months ending A$’000 A$’000 (decrease) Total Revenue 634,420 605,034 5% Underlying EBITDA 207,556 211,725 (2%) Depreciation & Amortisation (143,824) (141,384) 2% Underlying EBIT 63,732 70,340 (9%) Underlying Net Profit 50,017 44,
Slide 7: Profit comparison – FY14 vs FY13
Profit comparison – FY14 vs FY13 For personal use only Increase in underlying net profit despite lower gold price Underlying Net Profit (A$M) 84.4 Lower metal prices 55.1 Tax re-classification 4.2 19.0 38.8 2.8 2.3 7.3 1.5 50.0 44.4 Mt Carlton commercial production Underlying Revenue Revenue Cost
Slide 8: Cost reductions
Cost reductions For personal use only Maintaining margins in lower gold price environment Mining costs and EBITDA margins FY14 vs FY13 (A$M) 52% 42% 41% 47% 40% 30% 33% 29% 29% 89.4 85.7 76.4 73.2 56.0 53.0 46.8 35.0 38.3 Cracow Pajingo Mt Rawdon Edna May Mt Carlton Total mining cost FY13 Total mi
Slide 9: EBITDA able to fund capital
EBITDA able to fund capital For personal use only Solid underlying FY14 site EBITDA of A$235.1 million Sites cash positive post capital investment 70 60 50 40 A$M 30 20 10 0 Mt Rawdon Cracow Mt Carlton Edna May Pajingo Sustaining Underlying Capex site EBITDA Growth Capex SustainingUnderlying Cap
Slide 10: Capital expenditure
Capital expenditure For personal use only Total group capital investment reduced by 58% in FY14 Group Capital Expenditure (A$M) 400 350 300 250 200 150 100 50 0 FY13 FY14 FY15 Guidance* Cracow Pajingo Edna May Mt Rawdon Mt Carlton *Plotted at midpoint of FY15 guidance 10
Slide 11: Discovery expenditure
Discovery expenditure For personal use only A$17.0 million invested in exploration in FY14 Exploration focused on building 3D geological models and integrating geologic time to create 4D models. Proof of concept drilling completed. Prioritised target drilling underway Emmerson Resources Tennan
Slide 12: Free cash flow
Free cash flow Strong free cash flow generation For personal use only Funds able to be returned to shareholders and debt serviced Free cash flow (A$M) 245.3 76.4 78.0 8.8 17.0 20.8 44.3 Cash flow from Sustaining capital Major projects Working capital Exploration Corporate Free cash flow operatin
Slide 13: Balance sheet
Balance sheet For personal use only Strengthening financial position Operating and capital Balance sheet 30 Jun 14 30 Jun 13 expenditure reduced A$’000 A$’000 Operations delivering on Cash 31,607 13,662 production Short term debt 11,558 4,496 Robust financial position allowed for A$14.2M in
Slide 14: Summary
Summary Operational stability and predictability For personal use only Portfolio of five Australian mines each contributing to group Delivering to unchanged full year cash cost and production guidance FY14 sales revenue increased by 5% to A$634.4M FY14 underlying net profit increased by 13
Slide 15: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au