Slide 1: Evolution Mining AGM Presentation
For personal use only Evolution Mining AGM Presentation 26 November 2013 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: Australian Mid-tier Gold Producer: Corporate Information
Australian Mid-tier Gold Producer Corporate Information For personal use only ASX Code EVN Shares 708.6M Market Capitalisation1 A$535M Daily Turnover2 A$1.52M Major Shareholders Newcrest 33% Production Guidance FY14 Allan Gray 11% 400koz - 450koz AuEq Cash and bullion³ A$12.4M C1 cost6 A$770/oz - A$
Slide 4: Corporate Strategy
Corporate Strategy For personal use only Operational stability and predictability through a portfolio of similar sized mines Australia – a low political risk, first world jurisdiction with a high gold endowment Improving the quality of the portfolio through productivity efficiencies, reliabili
Slide 5: FY13 Operational Highlights
FY13 Operational Highlights For personal use only Consistently delivering to unchanged full-year cash cost and production guidance Record gold equivalent¹ production – increased by 40% to 392,920oz compared to FY12 Cash cost of A$790/oz – only 3% higher than FY12 despite rising input costs C
Slide 6: FY13 Financial Highlights
FY13 Financial Highlights For personal use only Gold and silver sales revenue increased by 29% to A$605.0 million Operating cash flow increased by 35% to A$233.0 million Underlying profit of A$44.4 million Reported loss of A$307.4 million Impacted by A$384.3 million non-cash impairment cha
Slide 7: Only when the tide goes out (Warren Buffett quote)
For personal use only “Only when the tide goes out do you discover who’s been swimming naked.” Warren Buffett Camp construction 7
Slide 8: A Paradigm Shift
A Paradigm Shift For personal use only Traditional model under pressure Majors Diseconomies of scale across multi jurisdictional operations Access to capital becoming more difficult Juniors Development cost inflation Economic deposits harder to find Large enough to fund growth through ca
Slide 9: Share Price Performance
Share Price Performance As at 7 November 2013 For personal use only 2 years Last 12 months Northern Star (NST.AX) 35% -44% Beadell (BDR.AX) 14% -5% Regis (RRL.ASX) 5% -38% Polyus (PGIL.L) -1% -5% Oceana (OCG.AX) -22% -40% Randgold (NASDAQ:GOLD) -35% -33% Agnico-Eagle (AEM.TO) -36% -47% Yamana (YRI.T
Slide 10: Strong Headwinds
Strong Headwinds For personal use only Market Vectors Gold Miners Relative to Spot Gold 0.07 0.06 GDX:$GOLD GDX/Gold Price 0.05 0.04 0.03 0.02 0.01 Gold shares at their cheapest in 30 years 10
Slide 11: Changing Landscape
Changing Landscape For personal use only Recent headlines highlight why investors are wary: “The Only Major Gold Discovery in a Decade, Gone, Goodbye!” “Indonesian mine ownership disputes” “Africa’s increasing risks scaring off mining investments: report” “Kyrgyz parliament rejects Centerra Gold m
Slide 12: The Australian Opportunity
The Australian Opportunity For personal use only A$ falling Gold Industry C1 Cash Costs by Country Input costs reducing US$/oz Q3 2012 2,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Productivity must improve 1,800 Political environment has 1,600 improved 1,400 Up to 50% of produ
Slide 13: Core Strengths
Core Strengths For personal use only Mt Carlton A portfolio of mines delivering reliable and consistent results Solid reserve and resource base Edna May 3.6 Moz AuEq Ore Reserve 7.7 Moz AuEq Mineral Resource Pajingo Excellent exploration potential Cracow Mt Rawdon Growth oriented – 30% production gr
Slide 14: Growing Production and Resources
Growing Production and Resources For personal use only Gold Production Mineral Resource and Ore Reserve A$956/oz 9 A$770 - 900 500,000 Gold equivalent production (oz) 8 A$771/oz A$790/oz A$820/oz 800 Gold Equiv. Ounces (Moz) 7 7.69 400,000 700 Cash Cost A$/oz 6 6.97 7.00 600 300,000 500 5 400 200,00
Slide 15: Reliability
Reliability Delivering on production and cash cost guidance since creation For personal use only 1QFY14 production of 107,195oz at C1 cash cost of A$769/oz – a strong start to FY14 Continued focus on cost reductions – total site costs 6.8% less in Sep quarter compared to June 2013 Excellent
Slide 16: Consistency
Consistency Portfolio of five mines ensures a For personal use only September quarter 2013 Actual production and costs versus guidance predictable performance A$998/oz Mt Rawdon – Evolution’s cornerstone 200,000 A$915/oz 1,000 asset with consistent production since A$761/oz A$768/oz 160,000 800
Slide 17: Productivity
Productivity Commercial production achieved at Mt Carlton, For personal use only Evolution’s lowest cost mine – delivering increased cash flow A change to owner-miner at Cracow, July 2013 – improved productivity and significant cost reductions achieved Increased gold production at Edna May thr
Slide 18: Exploration Upside
Exploration Upside FY14 exploration budget of A$20 million For personal use only Experienced team with a successful record working towards a transformational discovery Highly prospective tenement holding over 6,750km² New focus on integrating geochemical and geophysical databases to re-open
Slide 19: FY14 Outlook
FY14 Outlook For personal use only Gold Eq. Cash Operating Total Capital Production Costs Expenditure (oz) (A$/oz) (A$M) Cracow 82,500 – 90,000 840 – 890 30 – 35 Pajingo 72,500 – 80,000 800 – 850 30 – 35 Mt Rawdon 95,000 – 110,000 725 – 775 60 – 65 Edna May 85,000 – 95,000 800 – 850 25 – 30 Mt Carlt
Slide 20: The Evolution Value Proposition
The Evolution Value Proposition For personal use only 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 exp
Slide 21: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au
Slide 22: Appendix
For personal use only Appendix
Slide 23: Mineral Resource Statement Dec 2012
Mineral Resource Statement Dec 2012 Mineral Resource Statement - December 2012 Gold Measured Indicated Inferred Total Resource For personal use only Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Cut-Off (Mt) (g/t) (ko
Slide 24: Ore Reserve Statement Dec 2012
Ore Reserve Statement Dec 2012 Gold Proved Probable Total Reserve For personal use only Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Cut-Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Pajingo Open-Pit 0.65 0.01 3.9 1 0.17 5.6 30 0.18 5.5
Slide 25: Competent Person Statement
Competent Person Statement The information in this presentation that relates to exploration results, Mineral Resources or Ore Reserves listed in For personal use only 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 basis by t
Slide 26: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au