Slide 1: North American Roadshow Investor Presentation
For personal use only North American Roadshow Investor Presentation September 2017 Jake Klein – Executive Chairman Bryan O’Hara – General Manager Investor Relations
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: Overview
Overview ASX code EVN For personal use only Shares outstanding 1,683M Market capitalisation(1) A$4,140M / US$3,230M Average daily share turnover(2) A$25M / US$20M Net debt(3) A$399M / US$311M Forward sales(3) 458,495oz at A$1,645/oz New dividend policy Payout of 50% of after tax earnings Major share
Slide 4: Australia's 2nd largest gold miner
Australia’s 2nd largest gold miner 1 Cowal (100%) For personal use only Gold Reserves 2016 (Moz)(1) 3.20 Gold Resources 2016 (Moz)(1) 5.04 Reserve Grade 2016 (Au g/t) FY17A Au Production (koz) 0.85 263 5 Cracow (100%) FY17A AISC (A$/oz) 833 Gold Reserves 2016 (Moz)(1) 0.19 FY17 Net M
Slide 5: Upgrading the quality of our asset portfolio
Upgrading the quality of our asset portfolio For personal use only $2,250 Bubble size represents FY17 production Ernest $2,000 Henry (Gold price of A$1,650/oz less FY17 AISC)(1) Current indicative AISC margin (A$/oz) $1,750 $1,500 Group Reserve life > 8 years $1,250 Mt $1,000 Carlton Mt Cowal $750 R
Slide 6: FY17 financial highlights
FY17 financial highlights For personal use only Units FY17 FY16 Change Statutory Profit after tax A$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% 46% 7% AIC
Slide 7: 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 FY13: Development of low cost Mt Carlton operation 393 427 438 FY16: Acqui
Slide 8: 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 9: Balance sheet
Balance sheet 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 FY17 322 325 Syndicated debt at 30 June 2017 of A$435.0M 155 Term Facility B: A$40.0M 120 80 50 30 Term Fa
Slide 10: Reserve growth
Reserve growth Organic growth through intensive discovery and resource definition drilling programs For personal use only Acquisition of high quality, low cost ounces December 2014 → December 2016: Ore Reserves increased by 218% Reserves per share increased by 33% 1 Reserve life increase
Slide 11: Cowal
Cowal For personal use only July Evolution June 2015 Delivery 2017 MINING MINING PERMIT TO 2024 + 8 years PERMIT TO 2032 2014 2016 RESERVES 1.56Moz1 + 2.28Moz2 RESERVES 3.20Moz3 2014 MINERAL RESOURCES 3.43Moz1 + 2.24Moz2 2016 MINERAL RESOURCES 5.04Moz3 July 2015 – June 2017 GOLD PRODUCTION 501koz AD
Slide 12: Additional opportunities at Cowal
Additional opportunities at Cowal Assessing further asset enhancement For personal use only opportunities including: E46 Co-treatment of high-grade oxide stockpiles to bring forward treatment E46 East Increased gold production of 10 – 12koz per annum Secondary crushing E42 Increase through
Slide 13: Ernest Henry
Ernest Henry Ernest Henry ore body looking west Large scale, long life, copper-gold asset operated by For personal use only Glencore Approximately A$600 million recently invested by Glencore in expanding the underground mine to 6.4Mtpa Evolution’s economic interest acquired 1 November 2016: 12
Slide 14: Mt Carlton
Mt Carlton For personal use only March Evolution June 2010 Delivery 2017 FEASIBILITY STUDY OFFTAKE PARTY SECURED ONE OF THE HIGHEST GRADE DELCARED PROJECT OPEN PIT GOLD MINES IN THE UNECONOMIC DEVELOPED BY EVOLUTION AND WORLD COMMISSIONED IN 2013 LIFE OF MINE - 2025 ENTERPRISE VALUE A$51M INITIAL CA
Slide 15: Mungari
Mungari Major footprint in world-class Kalgoorlie region For personal use only ~950km2 across 346 tenements Strategically located 1.7Mtpa processing plant FY17 aggressive exploration programme delivered strong results Resource definition drilling extends high grade mineralisation beyond ex
Slide 16: Future opportunities at Mungari
Future opportunities at Mungari For personal use only All drilling All drilling All drilling >100m >200m depth depth •Bullant •Mt Pleasant •Bullant •Mt Pleasant •Bullant •Mt Pleasant Zuleika Shear Zone Zuleika Shear Zone Zuleika Shear Zone Kundana Kundana Kundana •Frog’s Leg •Frog’s Leg •Frog’s Leg
Slide 17: Mt Rawdon
Mt Rawdon For personal use only Nov Evolution June 2011 Performance 2017 SCHEDULED COMPLETION 2022 + 4 years SCHEDULED COMPLETION 2026 2011 RESERVES 0.9Moz Replacing depletion 2016 RESERVES 0.9Moz LOAD & HAUL Contract Cost benefits and improved LOAD & HAUL Owner operator efficiency Resource drilling
Slide 18: Cracow
Cracow For personal use only Nov Evolution June 2011 Performance 2017 LIFE OF MINE 2014 + 6 years LIFE OF MINE 2020+ 2011 RESERVES 0.2Moz Replacing depletion 2016 RESERVES 0.2Moz MINING Contract Cost benefits and MINING Owner operator productivity improvements Resource drilling over 20 years 802km I
Slide 19: Edna May
Edna May Turnaround progressing under new management post strategic review For personal use only Significant increase in gold production and decrease in AISC in June 2017 quarter Production from underground to commence in FY18 Mineral Resources 848koz Au Ore Reserves 426koz Au Greenfinch 6
Slide 20: FY18 guidance
FY18 guidance All-in sustaining All-in sustaining For personal use only Gold production C1 cash costs1 C1 cash costs1,2 FY18 Guidance cost1 cost1,2 (oz) (A$/oz) (A$/oz) (US$M) (US$M) Cowal 235,000 - 245,000 660 – 720 950 – 1,000 510 – 560 740 – 780 Mungari 120,000 - 130,000 860 – 910 990 – 1,050 670
Slide 21: 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 21
Slide 22: ASX code: EVN
For personal use only ASX code: EVN www.evolutionmining.com.au
Slide 23: Evolution Gold Ore Reserves
Evolution Gold Ore Reserves Gold Proved Probable Total Reserve For personal use only Competent Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person Project Type Cut-Off (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Cowal1 Open pit 0.4 43.70 0.71 994 73.0
Slide 24: Evolution Gold Mineral Resources
Evolution Gold Mineral Resources Gold Measured Indicated Inferred Total Resource For personal use only Competent Gold Gold Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Tonnes Person Project Type Cut-off Grade Metal Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz)
Slide 25: Evolution Copper Reserves and Resources
Evolution Copper Reserves and Resources Group Copper Ore Reserves Statement For personal use only Copper Proved Probable Total Reserve Competent Copper Copper Copper Grade Copper Copper Copper Person Project Type Cut-Off Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Grade (%) Metal (kt) (%) Metal (kt) Grade (
Slide 26: Cowal Ore Reserve growth
Cowal Ore 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 C
Slide 27: FY18 guidance – capital, discovery, D&A
FY18 guidance – capital, discovery, D&A Sustaining Resource Depreciation & Fair Value For personal use only Major Capital Discovery FY18 Capital Definition1 Amortisation2 Unwind Guidance (A$M) (A$M) A$M A$M A$/oz A$M Cowal 52.5 – 57.5 85 – 100 2.0 – 3.5 2.5 – 4.5 370 – 410 15.0 – 20.0 Mungari 10 – 1
Slide 28: Our Evolution
Our Evolution Acquisition of Mungari For personal use only economic acquisition interest in with La Mancha Ernest Cowal Takeover of Henry acquisition Phoenix Tennant Gold Creek JV Puhipuhi with acquisition FY10 FY17 Mt Carlton Emmerson exploration project first concentrate Resources FY10 FY16 produc