Slide 1: Evolution Mining – Macquarie Australia Conference
For personal use only Evolution Mining Macquarie Australia Conference 7 May 2015 Jake Klein – Executive Chairman
Slide 2: Forward looking statements
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”, “intend”, “plan”, “es
Slide 3: Australian mid-tier gold producer
Australian mid-tier gold producer For personal use only ASX Code EVN Shares 716.8M Market capitalisation ¹ A$717M Daily turnover 2 A$4.8M Cash and unsold doré 3 A$38.0M Debt 3 A$91.8M Forward sales 4 327,275oz at A$1,539/oz Dividend policy 2% of gold revenue Newcrest 14.9% Major shareholders Allan G
Slide 4: Australia making a comeback
Australia making a comeback For personal use only Evolution C1 cash costs – a compelling illustration: FY13: A$790 per ounce AUD:USD FX¹ = $1.025 US$810 per ounce FY15 YTD (9 mths to March 2015): A$718 per ounce AUD:USD FX² = $0.80 US$575 per ounce Slide from Evolution Investor Prese
Slide 5: Gold mining – a business
Gold mining – a business For personal use only Create shareholder value through three pillars – Operations, Discovery, M&A Focus on costs and productivity to drive profitability Disciplined approach to capital investment Upgrade the portfolio – through discovery and opportunistic acquisition
Slide 6: 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 improve asset portfolio through maintain a cost and opportunistic, logical, probability of productivity focus over transformational value
Slide 7: Highlights
Highlights For personal use only 3 ½ straight years of achieving guidance Development of Mt Carlton Portfolio upgrade - La Mancha combination Strong financial position Expanding exploration pipeline 7
Slide 8: Sustained annual cost savings
Sustained annual cost savings For personal use only Evolution has achieved sustainable Group-wide cost reductions of over A$42.1 million per annum In addition, the Group is currently benefitting from lower diesel prices which have historically constituted between 5 – 7% of total site spend The
Slide 9: March 2015 quarter highlights
March 2015 quarter highlights Production For personal use only Group production in line with guidance at 103,305 gold ounces C1 cash cost of A$736 per ounce (US$579/oz1) and AISC2 of A$1,024 per ounce (US$806/oz1) Corporate Record quarterly free cash flow of A$26.9 million A$35 million debt
Slide 10: Discovery
Discovery Commitment to invest a minimum of A$20.0M per year to target transformational For personal use only discoveries within our expanding and highly prospective Australasian footprint 1. Strategic investment of up to 19.9% stake in Phoenix Gold. Announcement of transaction released to ASX on
Slide 11: Recent discovery highlights
Recent discovery highlights For personal use only Drilling at Pajingo (Camembert) continue to extend and define mineralisation towards existing resources First drilled hole testing Edna May underground returned multiple significant intersections including: 4.8m (e.t.w.) @ 12.49g/t from 268m (E
Slide 12: Portfolio management
Portfolio management Create value through logical, opportunistic acquisitions For personal use only Leverage off strong operational performance to upgrade the quality of the portfolio Make geological calls – backing our discovery team Divest underperforming assets if a fair price can be achi
Slide 13: Combination with La Mancha
Combination with La Mancha For personal use only Evolution to acquire 100% of La Mancha’s Australian operations Combination with La Mancha to be issued with new shares in Evolution representing 31% of the enlarged La Mancha Australia share capital of the group Formation of a long-term strategi
Slide 14: Diversified Australian portfolio
Diversified Australian portfolio For personal use only Pajingo Frog’s Leg Gold Reserves (Moz)1 0.16 Gold Reserves (Moz)2 0.44 Gold Resources (Moz)1 0.92 Gold Resources (Moz)2 0.77 FY2014A Au Production (Koz) 61 CY2014A Au Production (Koz) 125 FY2015E Au Production (Koz) 65-73 CY2015E Au Production (
Slide 15: Phoenix Gold strategic partnership
Phoenix Gold strategic partnership Strategic investment of up to For personal use only 19.9% stake in Phoenix Gold Tenement holding in a world class gold camp in close proximity to 1.5Mtpa Mungari processing plant Covers a significant strike length of the highly prospective Zuleika Shear and K
Slide 16: A leading Australian gold producer
A leading Australian gold producer For personal use only 2,942 Pro Forma Production Profile 600 575 565 432 FY15 Au Eq. production (koz) 420 400 360 330 315 220 205 186 200 180 150 145 141 120 98 88 0 Beadell New Evolution St Barbara Doray Resolute Norton Troy Medusa Northern Star Evolution Regis Ki
Slide 17: Pro forma metrics
Pro forma metrics Evolution La Mancha Combined Change For personal use only Annual Production (koz)1 400 - 440 130 - 160 530 - 600 +35% AISC (A$/oz)2,3 1,032 928 1,005 - $27/oz EBITDA Margin (%)2 42% 48% 44% + 2% Gearing (%)4 5.5% 28% 12.5% +7.0% Reserve (Au Eq, Moz)5 2.6 0.8 3.4 + 31% Resources (Au
Slide 18: Stand-out production and margins
Stand-out production and margins For personal use only Bubble size represents Northern Star New Evolution market capitalisation 600 OceanaGold FY15 production guidance (koz eq.) 450 St Barbara Regis Resolute Evolution 300 Perseus Beadell Saracen 150 Kingsgate Medusa Troy Silver Lake Doray 0 100 200
Slide 19: The Evolution value proposition
The Evolution value proposition For personal use only Low risk – first world jurisdiction Australia Third largest gold producing country globally Globally competitive on costs Delivering on guidance since creation Delivery Delivered a significant growth project – Mt Carlton Delivering a
Slide 20: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au