Slide 1: 2017 Full Year Financial Results
For personal use only 2017 Full Year Financial Results 17 August 2017 Jake Klein – Executive Chairman Lawrie Conway – Finance Director and CFO
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: Continued delivery
Continued delivery For personal use only Record profit Very strong cash generation Increasing fully franked dividends A global leader in low-cost production Investing in the future Six consecutive years of meeting production and cost guidance 3
Slide 4: Safety
Safety A continuous improvement culture driving positive initiatives Total Recordable Injury Frequency Rate For personal use only to keep our people safe (TRIFR) 24.4 FY17 focus on assurance reviews of critical control plans 19.9 Significant reduction in vehicle incidents achieved 12.0 NSW M
Slide 5: Highlights
Highlights For personal use only FY17 financial highlights Units FY17 FY16 Change Statutory Profit after tax A$M 217.6 (24.3) - 1 Underlying Profit after tax A$M 206.6 134.5 54% EBITDA A$M 713.9 607.6 17% Operating Cash flow A$M 706.5 628.4 12% Group Cash flow A$M 382.0 365.0 5% EBITDA Margin2 % 49%
Slide 6: Operational performance and asset quality
Operational performance and asset quality Group gold production (koz) Record production up 5% For personal use only Consistent year on year delivery to guidance Active portfolio management to improve quality 803 844 427 438 FY13: Development of low cost Mt Carlton operation 393 FY16: Acqui
Slide 7: Improved cost profile
Improved cost profile Changes to the portfolio in past couple of years has delivered favorable reductions in costs For personal use only Realising the benefit of introducing additional copper by-product into portfolio Leverage of combined group volumes delivering lower input costs (e.g. grindi
Slide 8: Group EBITDA
Group EBITDA Record group EBITDA (cash profit) up 17% to A$713.9M For personal use only Sustained performance from existing assets improved EBITDA by 9.3% Immediate and significant impact from investment in Ernest Henry with A$99.2M contribution FY17 EBITDA FY17 EBITDA(A$M) A$M 99.2 713.9 7.3
Slide 9: EBITDA margins
EBITDA margins Longest life assets generating highest margins For personal use only Group EBITDA Margin Benefits of diverse portfolio – no dependence on any single asset 49% Site EBITDA Margin 46% FY16 40% 64% 59% 59% 61% FY17(1) 33% 58% 55% 48% 49% 47% 49% 39% 18% 11% Cowal Ernest Henry Mt Carl
Slide 10: Discovery and resource definition
Discovery and resource definition Investment up 19% to A$58.4M Discovery & Resource Definition For personal use only Expenditure (A$M) Discovery focus areas: South Gawler – Entered into earn-in JV agreement with Terramin Australia providing pathway to earn up to 80% interest in project 29.0
Slide 11: Group cash flow
Group cash flow Record cash flow from operations underpinning Group strategy For personal use only Sustaining and major capital in line with guidance Surplus cash used to accelerate debt reduction Higher dividend payout rate approved Operating Cash Flow (A$M) Cash after investing (A$M) Net C
Slide 12: Balance sheet in good shape
Balance sheet in good shape Significant improvement in liquidity Debt Repayments and Commitments (A$M) For personal use only Cash and undrawn debt of A$337.4M Repayment of A$325.0M of debt during the year 322 325 Syndicated debt at 30 June 2017 of A$435.0M 155 Term Facility B: A$40.0M 120
Slide 13: Dividends
Dividends Dividend policy changed to payout of 50% of earnings Dividends Declared Cents per Share For personal use only Final franked dividend up 50% to 3 cents per share Commencement of franked dividends 5 Total FY17 dividend of A$84.1M (Pre-DRP) 3 2 2 1 FY13 FY14 FY15 FY16 FY17* (Final Onl
Slide 14: FY18 guidance
FY18 guidance All-in sustaining Sustaining For personal use only Gold production C1 cash costs1 Major Capital FY18 Guidance cost1 Capital (oz) (A$/oz) (A$/oz) (A$M) (A$M) Cowal 235,000 - 245,000 660 – 720 950 – 1,000 52.5 – 57.5 85 – 100 Mungari 120,000 - 130,000 860 – 910 990 – 1,050 10 – 15 32.5 –
Slide 15: Results align to strategy
Results align to strategy For personal use only RECORD PROFIT QUALITY PORTFOLIO STRONG BALANCE SHEET A$207M C1 A$625/oz MINE OPERATING A$707M UNDERLYING PROFIT DOWN 13% CASH FLOW UP 12% UP 54% AISC A$907/oz GROUP CASH FLOW A$382M STATUTORY PROFIT A$218M DOWN 11% UP 5% UP A$242M A$568/oz 16% AIC MARG
Slide 16: Attributes of a sustainable gold business
Attributes of a sustainable gold business For personal use only High quality, low cost, long life assets Discovery success Financial discipline Strong vision, values and sense of purpose Counter-cyclical investment Building a business that prospers through the cycle 16
Slide 17: Appendix
For personal use only Appendix ASX code: EVN www.evolutionmining.com.au
Slide 18: FY18 guidance: discovery and non-cash items
FY18 guidance: discovery and non-cash items Depreciation & Resource For personal use only Fair Value Unwind Discovery Amortisation1 Definition2 FY18 Guidance A$/oz A$M A$M A$M Cowal 370 – 410 15.0 – 20.0 2.0 – 3.5 2.5 – 4.5 Mungari 530 – 570 17.0 – 22.0 6.0 – 7.0 10.0 – 12.0 Mt Carlton 400 – 440 1.0
Slide 19: Statutory profit reconciliation
Statutory profit reconciliation Acquisition & Integration costs of A$5.8M after tax relate to Ernest Henry and Pajingo transactions For personal use only Non cash deferred tax adjustment amounting to A$20.4M Accounting loss on sale of Pajingo of A$3.6M Reconciliation of Underlying to Statutory
Slide 20: Underlying net profit reconciliation
Underlying net profit reconciliation Underlying Net Profit After Tax A$M For personal use only 108.9 3.5 14.7 206.6 (45.7) 0.6 8.8 36.0 (4.2) 134.5 2.8 (53.4) Underlying Gold Volume Gold Price By Product By Product Mine D&A Exploration, Other Fair value Tax Underlying Profit June Volume Price Operat
Slide 21: Taxation
Taxation All unrestricted tax losses utilised during the year to June 2017 For personal use only Tax liability of A$36.2M at 30 June 2017, payable in December 2017 with tax instalments thereafter Restricted tax losses recorded on balance sheet as an asset amount to A$20.4M. A$1.5M for Conque