Slide 1: Evolution Mining AGM Presentation
Evolution Mining AGM Presentation 26 November 2014 Jake Klein – Executive Chairman Mark Le Messurier – Chief Operating Officer Roric Smith – Vice President Discovery
Slide 2: Forward looking statement
Forward looking statement 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”,
Slide 3: Australian mid-tier gold producer
Australian mid-tier gold producer ASX Code EVN Shares 714.9M Market capitalisation¹ A$400M Daily turnover 2 A$1.42M Cash and unsold doré 3 A$44.9M Debt 3 A$126.8M Forward sales 3 143,185oz at A$1,600/oz Dividend policy 2% of gold revenue Newcrest 32.3% Major shareholders Van Eck 10.5% Allan Gray 8.6
Slide 4: Highlights
Highlights 3 straight years of achieving guidance Development of Mt Carlton FY14 production of 427,703oz AuEq Strong financial position Exciting exploration pipeline 4
Slide 5: Growing production
Growing production Gold Production FY11 – FY14 427,703 oz 392,886 oz 346,979 oz 302,842 oz FY11 FY12 FY13 FY14 * Assumes pro forma ownership of current assets over FY11 and FY12 Group Gold Equivalent Production We say, We do, We deliver 5
Slide 6: Gold mining – a business
Gold mining – a business Create shareholder value through three pillars – Operations, Discovery, M&A Focus on costs and productivity to drive profitability Disciplined approach to capital investment Upgrade the portfolio – through discovery and opportunistic acquisitions Shareholder return
Slide 7: Reliability and Consistency
Reliability and Consistency Evolution has consistently outperformed the ASX All Ords Gold Index since inception Evolution (EVN) vs ASX All Ords Gold Index (XGD) A$/share Index pts 2.25 9,000 2.00 8,000 1.75 7,000 1.50 6,000 1.25 5,000 1.00 4,000 0.75 3,000 0.50 0.25 2,000 0.00 1,000 EVN XGD 7
Slide 8: Three pillars creating shareholder value
Three pillars 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 accretive the longer t
Slide 9: FY14 Operational Highlights
FY14 Operational Highlights Achieved best annual safety performance since creation (Group LTIFR 1.7, TRIFR 11.7) FY14 underlying site EBITDA of A$235.1 million A$91.0 million in mine operating cash flow generated – all sites cash flow positive 70 FY14 Underlying Site EBITDA vs Capex 60 50 40 A
Slide 10: Cracow
Cracow FY14 gold production of 95,064oz at cash cost A$726/oz and AISC A$1,057/oz FY14 cost saving of A$18M (or A$190/oz) as a result of moving to owner-miner on 1 July 2013 Current mine life of at least five Ore hauling at Cracow years based on life of mine plans 900 821 801 712 Resource de
Slide 11: Pajingo
Pajingo FY14 gold production of 60,766oz at cash cost A$894/oz and AISC A$1,274/oz Restructure of operation reduced total site costs by 41% in FY14 Continued improvement in Sep quarter with a ~10% lift in gold production to 18,067oz 1,004 Further cost reduction initiatives 814 780 900 25,000
Slide 12: Edna May
Edna May FY14 gold production of 80,165oz at cash cost A$1,017/oz and AISC A$1,205/oz Strong turnaround in operating performance achieved Improved plant throughput capacity Edna May open pit: September 2014 Continued success on the 1,263 implementation of cost reduction 1,200 978 initiatives
Slide 13: Mt Rawdon
Mt Rawdon FY14 gold production of 103,755oz at cash cost A$670/oz and AISC A$854/oz Shift to owner-miner 1 July 2014 – better than expected productivity and operating costs achieved to date Mt Rawdon: celebrating the mine’s 40th tonne gold pour Annual cost saving of ~A$5M through implementatio
Slide 14: Mt Carlton
Mt Carlton 795 50,000 737 Outstanding FY14 production of 615 87,952oz gold equivalent at cash 600 cost A$634/oz and AISC A$844/oz – 454 well ahead of guidance 25,000 26,109oz 22,747oz 300 20,193oz 19,443oz Significant lift in mill throughput to 72kt per month (~860ktpa) for the Sep quarter compa
Slide 15: The definition of insanity quote
“The definition of insanity is doing the same thing over and over again, but expecting a different result.” Albert Einstein 15
Slide 16: Discovery
Discovery Investing A$20.0M per year to target transformational discoveries through brownfields and greenfields exploration Build competent, Innovative 3D 4D modelling Exploration Framework & experienced seismic Alteration and integrating drilling in Asset priority proof of team viewing geochemica
Slide 17: Seismic update
Seismic update Pajingo Initial processing of 3D survey completed – 1,400m long fault extending from Zed to Camembert clearly mapped Six holes at Camembert prospect have all intersected epithermal veins and gold mineralisation Cracow Exceptional survey – faults correspond to known orebodies
Slide 18: Pajingo exploration
Pajingo exploration Camembert – a new vein system intersected in 6 holes Top of system – narrow veins with >10g/t Au assays 1,200m of untested strike potential between Zed lode and Camembert discovery Further drill targets being generated from ongoing 3D seismic interpretation Details of exp
Slide 19: Tennant Creek exploration
Tennant Creek exploration JV agreement with Emmerson Resources over Tennant Creek gold-copper project Historically one of Australia’s highest grade gold and copper fields with production of 5.5Moz gold and 470,000t copper Billy Boy New technology – 2D seismic to map ironstones Recent results
Slide 20: Portfolio management
Portfolio management Create value through logical, opportunistic acquisitions Leverage off strong operational performance to upgrade the quality of the portfolio over time Make geological calls – backing our discovery team Divest underperforming assets if a fair price can be achieved Exerc
Slide 21: FY15 outlook
FY15 outlook Guidance FY15 Gold equivalent production C1 cash costs All-in sustaining costs (oz) (A$/oz) (A$/oz) Cracow 90,000 – 95,000 660 – 730 1,000 – 1,080 Pajingo 65,000 – 72,500 700 – 770 1,050 – 1,120 Mt Rawdon 100,000 – 110,000 660 – 730 880 – 950 Edna May 80,000 – 90,000 980 – 1,060 1,120 –
Slide 22: The Evolution value proposition
The Evolution value proposition 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 exploration upside Gold d
Slide 23: Evolution Mining
Evolution Mining ASX Code: EVN www.evolutionmining.com.au