Slide 1: Evolution Mining - Diggers and Dealers Forum 2012
For personal use only Evolution Mining Diggers and Dealers Forum 2012 6th August 2012 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 fo
Slide 3: Who we are
Who we are For personal use only Mt Carlton Corporate Information ASX Code EVN Index S&P ASX200 Shares 707.6M Last Price 1 A$1.56ps Market Edna May A$1.1B Capitalisation Daily Turnover 2 A$1.7M Cracow Cash 3 A$142.0M Debt 3 A$31.5M Cracow Gold Plant, Queensland 224,177oz at Forward Sales 3 A$1,573/o
Slide 4: Still in a gold bull market
Gold For personal use only $2,000 Still in a gold bull market $1,800 $1,600 Spot Gold Price (US$/oz) $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Source: IRESS
Slide 5: Gold shares have underperformed
Gold shares have underperformed $2,000 1.80x For personal use only $1,800 1.60x $1,600 1.40x P/NAV at Spot Gold Gold (US$/oz) $1,400 1.20x $1,200 1.00x $1,000 0.80x $800 Producer P/NAV At Spot Gold $600 0.60x Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Camp construction Investor f
Slide 6: Access to capital
Access to capital Precious Metals Mining Equity Financings For personal use only 16.0 14.0 TSX ASX 12.0 US$ billions 10.0 8.0 6.0 4.0 2.0 - 2009 2010 2011 2012 YTD Camp construction Capital has been cheap and easy Source: Thomson Reuters, CIBC World Markets
Slide 7: What is weighing gold stocks down?
What is weighing gold stocks down? For personal use only Resource Nationalism Capital Blowouts Failure to Meet Guidance
Slide 8: The new normal
The new normal For personal use only • Will be more accurately priced Political Risk • Australia to be re-rated favourably Capital • Key focus • Capital less freely available and more expensive Discipline Dividends • More focus on returning money to shareholders • Will be more difficult and expensiv
Slide 9: Change is required and is coming
For personal use only 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Newcrest 17,978 Regis Alacer Market Cap (A$M) Evolution Perseus Medusa Resolute Gold One CGA Kingsgate Silver Lake Endeavour OceanaGold Beadell St Barbara Nthn Star Troy Kingsrose Australian Gold Sector Integra Allied
Slide 10: Where do you want to be?
Where do you want to be? Last 5 years relative price performance only 900 800 Mid-tier producers have 700 delivered best returns use Indexed price 600 500 For personal 400 315% 300 272% 200 143% 100 37% - Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Global Senior Producers G
Slide 11: Australia's newest mid-tier producer
Australia’s newest mid-tier producer For personal use only All assets 100% owned Excellent exploration potential 3.5Mozeq Ore Reserves 7.1Mozeq Mineral Resources Defined growth profile Evolution FY13 Production Outlook 370koz – 410koz AuEq
Slide 12: Australia's newest mid-tier producer
Australia’s newest mid-tier producer For personal use only Evolution created 2 November 2011 Dec Q 2011 – 89,812oz at A$698/oz Mar Q 2012 – 84,122oz at A$809/oz Jun Q 2012 – 97,149oz at A$762oz FY2012 total production of 346,979oz – within guidance FY2012 average cash cost of A$771/oz – below guidan
Slide 13: Cracow
Cracow Consistent production – operating since 2004 For personal use only Mine Type Underground Minerals Gold and silver Produced 102,565oz at a cash cost of A$678/oz in FY12 Mineralisation type Low-sulphidation epithermal FY13 outlook of 90,000 – 100,000oz at a cash Throughput 550ktpa cost of
Slide 14: Pajingo
Pajingo Field has produced 2.6Moz since 1996 – and For personal use only Mine Type Open pit and underground excellent, demonstrable exploration upside Minerals Gold remains Mineralisation type Low-sulphidation epithermal Produced 75,747oz at a cash cost of A$780/oz in Throughput 650ktpa FY12; a
Slide 15: Edna May
Edna May For personal use only Turnaround underway; focus on reducing costs Mine Type Open pit Produced 73,264oz at a cash cost of A$949/oz in Minerals Gold and silver FY12 Reef structures and gold Mineralisation type stockwork FY13 outlook of 75,000 – 80,000oz at a cash cost of A$840 – A$890/
Slide 16: Mt Rawdon
Mt Rawdon For personal use only Consistent production Mine Type Open pit Produced 95,403oz at a cash cost of A$684/oz in Minerals Gold and silver FY12 Mineralisation type Volcanic hosted FY13 outlook of 95,000 – 110,000oz at a cash Throughput 3.5Mtpa cost of A$600 – A$660/oz Average grade 1.0g
Slide 17: Mt Carlton
Mt Carlton For personal use only Key growth project – commissioning on Stage Construction schedule for December quarter Mine Type Open pit Project capital cost of A$145M is fully Minerals Gold, silver and copper funded from cash and cashflow Mineralisation type High-sulphidation epithermal Mt
Slide 18: Exploration and Discovery
Exploration and Discovery For personal use only Five projects in multi-million ounce provinces Strategic landholding >4,000km2 Within the highly prospective Yilgarn Craton (WA), Drummond and Bowen Basins (Qld) Actively pursuing regional consolidation opportunities to leverage off existing in
Slide 19: Exploration and Discovery
Exploration and Discovery For personal use only Mt Carlton Regional exploration underway Highly prospective; early stage success Pajingo New mineralised corridors identified Conceptual porphyry style targets Mt Rawdon Regional exploration underway Cracow New discovery at Coronation Edna
Slide 20: Exploration and Development Pipeline
Exploration and Development Pipeline For personal use only Conceptual Preliminary Advanced Pre-Feasibility Mine Target Target Development FY13 exploration budget of A$28 million – 100,000m drilling planned V2 and A39 Edna May Coronation Underground Greenfinch Starlight Corridor Moonlight Capsize Cor
Slide 21: Meaningful Growth
Meaningful Growth For personal use only • Aggressive exploration – funded through strong balance sheet and cash flow • A$28 million committed in FY2013 • Challenging debt and equity markets • World-class understanding of Asia Pacific region • Key competitive advantage
Slide 22: Globally Competitive
Globally Competitive For personal use only Australian gold producer – alternate investment opportunity Operational predictability – delivering to promise Proven management team Financial strength Delivering meaningful growth Right place, right time – new Australian mid-tier gold producer W
Slide 23: Questions
For personal use only Questions
Slide 24: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
Slide 25: Ore Reserve Statement
Appendix Ore Reserve Statement For personal use only Proved Probable Total Tonnes Gold Grade Ounces Tonnes Gold Grade Ounces Tonnes Gold Grade Ounces (Mt) (g/t) Au (koz) (Mt) (g/t) Au (koz) (Mt) (g/t) Au (koz) Edna May Open pit 15.2 1.1 532 12.4 1.0 394 27.5 1.1 927 Cracow Underground 0.2 8.1 61 0.8
Slide 26: Mineral Resource Statement
Appendix Mineral Resource Statement For personal use only Measured Indicated Inferred Total Gold Gold Gold Gold Tonnes Ounces Tonnes Ounces Tonnes Ounces Tonnes Ounces Grade Grade Grade Grade (Mt) (g/t) Au (koz) (Mt) (g/t) Au (koz) (Mt) (g/t) Au (koz) (Mt) (g/t) Au (koz) Edna May Open Pit 20.6 1.1 6
Slide 27: Competent Person Statement
Appendix 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 b