Slide 1: Evolution Mining 2013 Full Year Financial Results
For personal use only Evolution Mining 2013 Full Year Financial Results 30 August 2013 Jake Klein - Executive Chairman Tim Churcher - VP Finance & Chief Financial Officer
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: 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 Commitment to growth through exploration success and opportunistic, logical, value
Slide 4: The Australian Opportunity
The Australian Opportunity For personal use only A$ falling Gold Industry C1 Cash Costs by Country US$/oz 2,000 Q3 2012 Input costs reducing 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 1,800 Productivity must improve 1,600 Political environment will 1,400 improve 1,200 Up to 50% of
Slide 5: The Australian Advantage
The Australian Advantage EVN $1.50 EVN $0.93 For personal use only 12-Feb-13 Gold Price (A$ vs US$) 28-Aug-13 1,650 1,600 1,550 1,500 Gold Price 1,450 1,400 GOLD (US$) GOLD (A$) 1,350 1,300 1,250 1,200 “The recent decline in the exchange rate seems to make sense from a macroeconomic perspective and
Slide 6: Operational Strategy
Operational Strategy For personal use only Addressing current gold price environment through production efficiencies, capital discipline and cost reductions Mine plans optimised for lower gold price and improved capital expenditure profile Cost-out initiatives already having an impact Organi
Slide 7: FY13 Operational Highlights
FY13 Operational Highlights For personal use only Delivering on guidance and sustainable growth Consistently meeting original Group production and cost guidance Gold equivalent¹ production increased by 40% to 392,920oz compared to FY12 Cash cost of A$790/oz - only 3% higher than FY12 despite
Slide 8: FY13 Financial Highlights
FY13 Financial Highlights For personal use only 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 impairment charge Maiden dividend of
Slide 9: Profit
Profit For personal use only Underlying profit of A$44.4 million 30-Jun-13 30-Jun-12 % increase 12 months ending A$’000 A$’000 (decrease) Total Revenue 605,034 469,484 29% Underlying EBITDA 211,725 189,991 11% Depreciation & Amortisation (141,384) (94,012) 50% Underlying EBIT 70,340 95,979 (27%) U
Slide 10: Impairments
Impairments For personal use only Total asset and investment impairments of A$384.3 million Reversal of fair value uplifts applied during formation of Evolution in 2011 Edna Mt Mt Impairment Summary (A$’000) Cracow Pajingo Total May Rawdon Carlton Mine development 56,523 1,366 5,075 0 0 62,964 F
Slide 11: Asset Base
Asset Base For personal use only Post impairment group asset base of A$917.6 million FY13 D&A rate of A$371/oz Reduced to approximately A$290/oz post impairment Asset Base A$’000 (Pre & Post Impairments) 450,000 400,000 350,000 300,000 250,000 Impairment 200,000 Post Impairment 150,000 100,000
Slide 12: Operating Metrics
Operating Metrics For personal use only Enhanced operational predictability through investment All key operating metrics increased in FY13 All key capital metrics increased in FY13 Group Key Metrics Units FY13 FY12 % increase Total UG ore mined (kt) 827 761 9% Total lateral development (m) 13,
Slide 13: Production and Cost Results
Production and Cost Results For personal use only Group gold production 392,920ozeq at cash cost A$790/oz A$956/oz 900 500,000 A$770-820/oz A$771/oz A$790/oz 800 Production gold equivalent (oz) Mt Carlton 400,000 12,138ozeq Mt Carlton 700 65,000-75,000oz Cash Cost A$/oz Pajingo 85,918oz 600 Pajing
Slide 14: EBITDA
EBITDA For personal use only Record underlying site EBITDA of A$246.7 million A$k 90,000 FY13 Site EBITDA* vs Capex 80,000 70,000 60,000 50,000 Growth Capex Sustaining Capex 40,000 Underlying site EBITDA 30,000 20,000 10,000 0 Edna May Pajingo Cracow Mt Rawdon * Site EBITDA is before all corporate
Slide 15: Cash Flow
Cash Flow For personal use only A$M 800.0 Operations provided A$135.6M to fund growth 613.8 through major project capex and exploration 700.0 600.0 500.0 (353.8) 400.0 (26.3) 95.3 300.0 (98.0) 277.4 200.0 141.8 100.0 (311.3) (26.3) (21.4) 13.7 0.0 Opening Receipts from Payments to Corporate Sustai
Slide 16: Capital Expenditure
Capital Expenditure only Total of A$375.0 million invested in FY13 for future growth 400 Group Capital Expenditure use 350 300 A$169 For personal 250 Capex A$M Mt Carlton Mt Rawdon 200 A$94 Edna May A$67 A$15-A$20 150 Pajingo A$44 A$34 A$60-A$65 Cracow 100 A$30 A$58 A$25-A$30 50 A$44 A$30-A$35 A$3
Slide 17: Discovery Expenditure
Discovery Expenditure For personal use only A$26.3 million invested in exploration in FY13 Edna May A$1.5M Group Mineral Resource1 increased by 10% to 7.7Mozeq Pajingo A$8.4M Discovery of new, mineralised epithermal veins at Pajingo and Cracow Cracow A$8.9M FY14 budget reduced to A$20 millio
Slide 18: Balance Sheet
Balance Sheet For personal use only Conservative balance sheet maintained Debt increased due to Balance sheet 30 Jun 13 30 Jun 12 funding Mt Carlton project capex A$’000 A$’000 Peak funding reached with Cash 13,662 141,784 modest gearing of 13% Short term debt 4,496 16,500 A$86.9M cash and c
Slide 19: FY14 Production Outlook
FY14 Production Outlook For personal use only FY14 Production guidance Comment (gold equivalent ounces) Mining approximately 535kt from 3 new ore bodies: Cracow 82,500 – 90,000 Roses Pride, Tipperary and Empire Processing approximately 500kt made up of 400kt Pajingo 72,500 – 80,000 from underground
Slide 20: FY14 Cost Guidance
FY14 Cost Guidance For personal use only C1 Cash Operating Costs¹ All-in Sustaining Costs² Guidance FY14 (A$/oz) (A$/oz) Cracow 840 – 890 1,220 - 1,270 Pajingo 800 – 850 1,210 - 1,260 Mt Rawdon 725 – 775 860 - 910 Edna May 800 – 850 990 - 1,040 Mt Carlton 700 – 750 960 - 1,010 Group 770 – 820 1,030
Slide 21: FY14 Capital Expenditure
FY14 Capital Expenditure For personal use only Forecast capital expenditure of A$160 million to A$185 million – includes all sustaining and growth capital Capex associated with cut A$M 70 backs Capital Expenditure 60 Mt Rawdon (A$45-A$50M) 50 Edna May (A$15M) 40 Capex associated with 30 un
Slide 22: Summary
Summary Operational stability and predictability through a portfolio of five Australian For personal use only mines – delivering to unchanged full year cash cost and production guidance Implemented production efficiencies, capital discipline and cost reductions in response to a lower gold price
Slide 23: Evolution Mining ASX Code: EVN
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au