Slide 1: Global Metals and Mining Conference
For personal use only Global Metals and Mining Conference February 2017 Jake Klein – Executive Chairman
Slide 2: Forward looking statement
For personal use only 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”, “expe
Slide 3: Executing a clear and sound strategy
Executing a clear and sound strategy Australia Reliability For personal use only Low risk, politically stable jurisdiction Five consecutive years of meeting Strong tailwinds for gold miners in recent production and cost guidance years Mid-tier Maximise returns 6 – 8 asset portfolio to ensure
Slide 4: Overview
Overview ASX code EVN For personal use only Shares outstanding 1,680M Market capitalisation(1) A$3,950M / US$2,960M Average daily share turnover(2) A$20M / US$15M Net debt(3) A$589M / US$442M Forward sales(3) 579,487oz at A$1,633/oz Dividend policy 4% of revenue Major shareholders La Mancha 28%, Van
Slide 5: Upgrading the quality of our asset portfolio
Upgrading the quality of our asset portfolio $1,800 For personal use only (Gold price of A$1,600/oz less FY17F AISC guidance)(1) Bubble size represents FY17F Maintaining 6-8 mine $1,600 production guidance(1) strategy delivering long term, high margin growth Current indicative AISC margin (A$/oz) Er
Slide 6: Australia's 2nd largest gold miner
Australia’s 2nd largest gold miner Ernest Henry (5)(6) Cowal (100%) (Evolution economic interest) For personal use only Gold Reserves 2016 (Moz)(8) 3.20 Reserves 2016(7) 0.95Moz Au, 182kt Cu Gold Resources 2016 (Moz)(8) 5.04 Resources 2016(7) 1.73Moz Au, 315kt Cu Reserve Grade 2016 (Au g/t
Slide 7: Cowal
Cowal For personal use only July Evolution Feb 2015 Performance 2017 MINING + 8 years MINING PERMIT TO 2024 PERMIT TO 2032 1.56Moz1 + 2.28Moz2 2014 ORE 2016 ORE RESERVES RESERVES 3.20Moz3 2014 MINERAL RESOURCES 3.43Moz1 + 2.24Moz2 2016 MINERAL RESOURCES 5.04Moz3 July 2015 – December 2016 GOLD PRODUC
Slide 8: Ernest Henry
Ernest Henry Ernest Henry ore body looking west For personal use only Large scale, long life, copper-gold asset operated by Glencore Evolution’s economic interest1: 100% of gold and 30% of copper and silver produced over 11 year life of mine (LOM) plan Strong leverage to rising copper price
Slide 9: Mungari
Mungari Growth For personal use only Significant potential to expand production and extend mine life Zuleika North ~880km2 land position in a world-class terrane (49koz) Ora Banda (312koz) Testing mineralisation along the Zuleika Shear between Johnson’s Rest and Julius >1Moz Carbine >500koz (1
Slide 10: Mt Carlton
Mt Carlton One of the highest grade open pit gold mines in the world For personal use only Developed by Evolution and commissioned in 2013 – initial project capital now fully repaid Strong cash generation with FY16 net mine cash flow of A$103 million Successful infill drilling into West and
Slide 11: Diversified production
Diversified production For personal use only Mt Rawdon Consistent producer of ~100koz per year Increasing cash flow as strip ratio declines Cracow Solid, predictable cash flow generation 37% increase in ounces produced per employee since FY13 Edna May Underground production expected to commence in F
Slide 12: High margin business
High margin business 66% EBITDA Margin For personal use only 59% 60% 58% 58% 49% 52% 50% 46% 48% 47% 46% 45% 17% 11% Cowal Mungari Mt Carlton Mt Rawdon Edna May Cracow Ernest Henry Group* FY16 FY17 Half *Group excludes Pajingo in FY17 Half Group AISC1,2 (per ounce) Operating Mine Cash Flow (A$M) US$
Slide 13: Declining cost profile
Declining cost profile Group making good advancement to achieving three year guidance targets For personal use only Supply contract negotiations in recent months still delivering savings including Chemicals and reagents of 5 – 15% Milling consumables of 9 – 13% Increasing power costs for e
Slide 14: Stand-out amongst global peers
Stand-out amongst global peers 2017 Peer Positioning use only 8,000 Agnico Eagle 7,000 (US$/oz) 6,000 Goldcorp Randgold personal 5,000 Detour Torex Newcrest For EV/Production Barrick 4,000 Oceana 3,000 Newmont Evolution Northern Star Acacia 2,000 St Barbara Bubble size represent 1,000 annual product
Slide 15: Three year outlook
Three year outlook For personal use only Production (koz) AISC (US$/oz)1 860 880 890 803 800 820 830 867 720 675 675 739 675 630 625 438 FY15A FY16A FY17 FY18 FY19 FY15A FY16A FY17 FY18 FY19 Production actual Production Low Production High AISC Actual AISC Low AISC High 1.Evolution has provided a th
Slide 16: ASX code: EVN
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 17: FY17 guidance
FY17 guidance For personal use only Gold production All-in sustaining cost All-in sustaining cost FY17 Guidance (oz) (A$/oz) (US$/oz)3 Cowal 245,000 – 260,000 885 – 945 665 – 710 Mungari 150,000 – 160,000 970 – 1,030 730 – 775 Mt Carlton 90,000 – 100,000 675 – 725 505 – 545 Mt Rawdon 90,000 – 100,00
Slide 18: Evolution Gold Ore Reserves
Evolution Gold Ore Reserves Gold Proved Probable Total Reserve For personal use only Competent Current as Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person Project Type Cut-Off Tonnes (Mt) at: (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Dec 2015 Cracow1,2 Under
Slide 19: Evolution Gold Mineral Resources
Evolution Gold Mineral Resources Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Competent For personal use only Current Tonnes Gold Grade Tonnes Gold Gold Metal Tonnes Tonnes Project Type Cut-Off Metal Grade Metal Grade Metal Person as at: (Mt) (g/t) (Mt) Grade (g/t) (koz)
Slide 20: Copper MROR
Copper MROR Copper Group Mineral Resources Statement For personal use only Copper Measured Indicated Inferred Total Resource Competent Copper Copper Copper Copper Current Tonnes Copper Tonnes Copper Tonnes Copper Tonnes Copper Person Project Type Cut-Off Metal Metal Metal Metal as at: (Mt) Grade (%)
Slide 21: Cowal Reserve growth
Cowal Reserve growth Cowal Ore Reserve changes For personal use only December 2014 to December 2016 4,000 3,500 87 29 326 494 Reserve ounces (koz) 3,000 309 69 900 2,500 231 2,000 471 1,500 3,200 2,848 1,000 1,555 500 0 2014 Reserve Stockpiles Stage G Stage H Depletion December Additions Model Cut-O
Slide 22: Slide notes
Slide 6 notes For personal use only Source: Data sourced from Company reported figures and guidance where available. Location size denotes production for FY2016. Pro forma for sale of Pajingo announced on 16 August 2016, announcement available to view on www.asx.com.au. (1) This information is extra
Slide 23: Production target
Production target Production target FY17 – FY19 For personal use only Production AISC Sustaining capital Period Major project capital (A$M)2 (Koz) (A$/oz) (A$/M) FY171 800 – 860 900 – 960 90 – 120 105 – 130 FY18 820 – 880 840 – 900 80 – 110 110 – 215 FY19 830 – 890 830 – 900 75 – 105 75 – 210 Materi
Slide 24: Cowal mine life extended to 2032
Cowal mine life extended to 2032 Mine life extension projects approved: For personal use only E42 Stage H Cutback – additional Life of Mine (LOM) gold production of 1.2Moz Dual Leach Project to increase recoveries by 4 – 6% 31 December 2016 Ore Reserves increased from 2.85Moz to 3.20Moz Or
Slide 25: Balance sheet strength
Balance sheet strength Term Loan Repayment Commitments A$M For personal use only Cash and undrawn debt of A$240.0 million 20 60 Net debt of A$588.5 million 135 120 80 80 Syndicated debt at December 2016 of A$600.0 30 FY18 FY19 FY20 FY21 FY22 million Facility D Facility B Gearing Net Debt to Ge
Slide 26: Our Evolution
Our Evolution Pajingo divested For personal use only August 2016 Takeover of Acquisition of Phoenix Gold economic August 2015 interest in Ernest Henry Tennant Creek Nov 2016 Puhipuhi JV acquisition June 2014 exploration project with Emmerson June 2015 Resources Newcrest divest 32% stake in Mt Carlto