Slide 1: Evolution Mining - Diggers & Dealers Forum 2013
For personal use only Evolution Mining Diggers & Dealers Forum 2013 5 August 2013 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
Slide 3: Australian mid-tier gold producer - Corporate Information
Australian mid-tier gold producer Corporate Information For personal use only ASX Code EVN Shares 708.1M Market Capitalisation1 A$616M Production Guidance FY14 Daily Turnover2 A$2.1M 400koz - 450koz AuEq Major Shareholders Newcrest 33% C1 cost A$770/oz - A$820/oz Allan Gray 12% AISC A$1,080/oz - A$1
Slide 4: Back to the future
Back to the future For personal use only “Mining securities are not the thing for widows and orphans or country clergymen, or unworldly people of any kind to own. But for a businessman, who must take risks in order to make money; who will buy nothing without careful, thorough investigation; and who
Slide 5: Credit(ibility) crisis
Credit(ibility) crisis Underperformance of Gold Equities vs Gold Price For personal use only 200% 150% 100% Performance (%) 50% 0% -50% -100% Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Gold Price (US$) - GOLD % Gold Miners ETF (US$) - GDX
Slide 6: Changing landscape
Changing landscape For personal use only “The Only Major Gold Discovery in a Decade, Gone, Goodbye!” “Indonesian mine ownership disputes” “Gold Mine or Land Mine?” “Africa’s increasing risks scaring off mining investments: report” “Chile blocks Pascua-Lama mine, fines Barrick Gold $16-million for se
Slide 7: The Australian opportunity
The Australian opportunity For personal use only Gold Industry C1 Cash Costs by Country A$ falling US$/oz Q3 2012 2,000 Input costs reducing 1,800 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Productivity must improve 1,600 1,400 Political environment will 1,200 improve 1,000 South Af
Slide 8: The Australian advantage
The Australian advantage For personal use only Gold Price (A$ vs US$) 1,600 1,550 1,500 EVN $1.31 EVN $0.87 1,450 Gold Price 1,400 GOLD (US$) 1,350 GOLD (A$) 1,300 1,250 1,200 “The recent decline in the exchange rate seems to make sense from a macroeconomic perspective and it would not be a major su
Slide 9: Mid-tier: the sweet spot
Mid-tier: the sweet spot For personal use only Traditional model under pressure Majors Diseconomies of scale across multi jurisdictional operations Access to capital becoming more difficult Juniors Development cost inflation Economic deposits harder to find Large enough to fund growth th
Slide 10: Warren Buffett quote
For personal use only “Only when the tide goes out do you discover who’s been swimming naked.” Warren Buffett Camp construction 10
Slide 11: Who we are
Who we are For personal use only Mt Carlton All five Australian assets 100% owned Edna May Reliable and consistent gold producer Excellent exploration potential Pajingo 3.6 Mozeq Ore Reserve Mt Rawdon 7.7 Mozeq Mineral Resource 30% production growth since FY11 Ore Reserve and Mineral Resource detail
Slide 12: Growing production and resources
Growing production and resources For personal use only Gold Production Mineral Resource and Ore Reserve 500,000 9 450,000 450,000oz 8 Gold Equiv. Ounces (Moz) 7 7.69 Production (oz) 400,000 400,000oz 6.97 7.00 392,886oz 6 5 350,000 346,979oz 4 300,000 3 3.57 302,842oz 3.49 3.33 2 250,000 1 FY2011A F
Slide 13: Reliability
Reliability For personal use only Delivering on production and cash cost guidance since creation FY13 production of 392,920oz at C1 cash cost of A$790/oz, in-line with original guidance of 370,000 - 410,000oz at C1 cash cost of A$730 - A$790/oz FY12 production of 346,979oz (280,401oz attributa
Slide 14: Consistency
Consistency For personal use only Portfolio of five mines ensures a predictable performance Au (oz) Cracow Production Cracow - consistent production since 200,000 2004 Mt Rawdon - Evolution’s cornerstone 150,000 asset with consistent production since 2001 100,000 Edna May - record production
Slide 15: Productivity
Productivity For personal use only Production focused on high margin ounces and disciplined capital expenditure Ongoing focus on cost reduction opportunities Cracow - changed to owner miner on 1 July 2013 with a cost benefit of ~A$50/oz Edna May - investment in a larger fleet to improve prod
Slide 16: Mt Carlton
Mt Carlton A case study on why we operate in Australia For personal use only Access to infrastructure Dealing with land owners and traditional owners Clear path to development 25 year mining lease 16
Slide 17: Delivering on exploration upside
Delivering on exploration upside For personal use only Experienced team with a successful record working towards a transformational discovery Highly prospective tenement holding over 6,750km² Recent exploration success including discovering new mineralised epithermal veins at Cracow and Pajing
Slide 18: FY14 outlook
FY14 outlook For personal use only Cash Operating Gold Eq. Production Capital Expenditure Costs (oz) (A$M) (A$/oz) Cracow 82,500 - 90,000 840 - 890 30 - 35 Pajingo 72,500 - 80,000 800 - 850 30 - 35 Mt Rawdon 95,000 - 110,000 725 - 775 60 - 65 Edna May 85,000 - 95,000 800 - 850 25 - 30 Mt Carlton 65,
Slide 19: 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 20: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
Slide 21: Appendix
For personal use only Appendix
Slide 22: Cracow
Cracow For personal use only Consistent production - operating since 2004 Mine Type Underground Changed to owner-mining on 1 July 2013 - Minerals Gold and silver cost benefit of ~A$50/oz expected Mineralisation type Low-sulphidation epithermal FY14 outlook of 82,500 - 90,000oz at a cash cost o
Slide 23: Pajingo
Pajingo For personal use only Field has produced 2.6Moz since 1996 Mine Type Underground Turnaround achieved - year on year Minerals Gold production increase since acquisition in 2011 Mineralisation type Low-sulphidation epithermal FY14 outlook of 72,500 - 80,000oz at a cash cost of A$800 - A$
Slide 24: Mt Rawdon
Mt Rawdon Evolution’s cornerstone asset - consistent For personal use only Mine Type Open pit production since 2001 Minerals Gold and silver Will generate significant cash flow after completion of Stage 3 cutback in 2015 Mineralisation type Volcanic hosted FY14 outlook of 95,000 - 110,000oz at
Slide 25: Edna May
Edna May For personal use only Record production of 86,216oz achieved in Mine Type Open pit FY13, an 18% increase on FY12 Minerals Gold and silver FY14 outlook of 85,000 - 95,000oz at cash Reef structures and gold Mineralisation type cost of A$800 - A$850/oz - a decrease on stockwork FY13 (A$900
Slide 26: Mt Carlton
Mt Carlton For personal use only First new gold mine opened in Queensland Mine Type Open pit in over a decade Minerals Gold, silver and copper Construction commenced only five years after discovery Mineralisation type High sulphidisation epithermal Commercial production expected in Sept Throug
Slide 27: Mineral Resource Statement Dec 2012
Mineral Resource Statement Dec 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) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (
Slide 28: 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 29: Competent person statement
Competent person statement For personal use only The information in this presentation that relates to exploration results, Mineral Resources or Ore Reserves listed in 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 30: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au