Slide 1: Evolution Mining 2016 Half Year Financial Results
For personal use only Evolution Mining 2016 Half Year Financial Results For the six month period ending 31 December 2015 18 February 2016 Jake Klein – Executive Chairman Lawrie Conway – Finance Director and Chief Financial Officer
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: Australia's 2nd largest gold producer
Australia’s 2nd largest gold producer All assets 100% owned For personal use only FY16 attributable production guidance of 770,000 – 820,000oz FY16 AISC1 guidance A$970 – 1,020/oz (US$700 – 740/oz)2 Cowal Pajingo Gold Reserves (Moz)5 2.18 Gold Reserves (Moz)3 0.10 Gold Resources (Moz)5 5.09 Go
Slide 4: FY16 half year financial highlights
FY16 half year financial highlights Robust underlying financials For personal use only Statutory loss of A$15.5M due to acquisition related costs Record underlying profit up 150% to A$107.9M EBITDA up 117% to A$285.6M Continued momentum in lowering costs and expanding margins Group AISC1
Slide 5: Record underlying net profit
Record underlying net profit Underlying net profit driven by For personal use only Increased volume – Cowal and Mungari Higher margins – lower costs and higher price Underlying Net Profit A$M 268.4 24.8 10.5 0.7 127.3 107.9 76.7 13.3 43.1 Operating Underlying Underlying Exploration Gold Price
Slide 6: Accounting impact of acquisitions
Accounting impact of acquisitions Goodwill write-off on La Mancha acquisition due mainly to share price appreciation For personal use only Announcement Date Completion Date Increase 20 April 2015 24 August 2015 Share price (A$/share) 0.93 1.03 0.10 Shares issued to La Mancha (M) 322.0 322.0 322.0
Slide 7: Cost environment
Cost environment Market conditions continue to present cost reduction opportunities For personal use only No signs of upward pressure evident Cowal and Mungari acquisitions provide aggregation potential Additional internal resources allocated to increase rate of market negotiations Conside
Slide 8: EBITDA margins
EBITDA margins Group EBITDA margins continue to expand For personal use only Immediate benefits of Cowal and Mungari evident Mt Carlton operational improvements and higher grade flowing through to higher margin Edna May performance driven by increased operational stripping and lower grade Gr
Slide 9: Mine cash flow
Mine cash flow Net mine cash generation up 250% Net Cash Flow Contribution For personal use only Mt All assets cash flow positive over the period Carlton 21% Cowal Strong contribution from Cowal, Mungari and Mt Carlton 34% Pajingo 5% Cracow 10% Mt Rawdon Mungari FY16 H1 Mine Cash Flow (A$M) Ed
Slide 10: Group underlying cash flow
Group underlying cash flow Strong underlying cash flow generation from diversified portfolio of Australian operations For personal use only Half year cash flow includes only part period contribution from Cowal and Mungari Movement of gold price by A$25/oz equivalent to A$6 – A$7M free cash (fo
Slide 11: Balance sheet and gearing
Balance sheet and gearing Attention on accelerated debt reduction Term Loan Facility Amortisation Profile For personal use only A$M 140 Voluntary repayment of A$77M into Revolver 120 Facility 100 Early repayment of A$50M into Term Loan 80 90 Further action subsequent to half year 60 100 Re
Slide 12: Edna May underground
Edna May underground Phase 1 development For personal use only A$16M capital investment targeting initial resource base of ~200,000 ounces Rehabilitation of existing decline to assist in keeping costs low Portal scheduled to be cut in FY16 Production from underground mine expected from FY18
Slide 13: Phoenix Gold acquisition
Phoenix Gold acquisition Transaction finalised in January 2016 For personal use only Consolidated Mungari tenement package of ~920km2 of relatively under-explored, highly prospective ground Tenements cover ~45km strike length along Zuleika Shear Zone Material addition to Mungari resources wi
Slide 14: Summary
Summary Underlying profit up 150% to A$107.8M For personal use only Low cost producer with Group AISC of A$954/oz (US$690/oz) Immediate positive impact from additions of Cowal and Mungari to portfolio Strong cash generation funding early debt repayments Consistent returns to shareholders v
Slide 15: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au