Slide 1: 2018 Half Year Financial Results
For personal use only 2018 Half Year Financial Results 15 February 2018 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: Superior financial performance
Superior financial performance For personal use only Consistent operational performance Global leader in low-cost production Continued significant cash generation Increasing shareholder returns Strong balance sheet Quality of portfolio delivering superior financial performance 3
Slide 4: Safety
Safety Group total recordable injury frequency rate at end of Total Recordable Injury Frequency Rate For personal use only December 2017 reduced to 6.2 and lost time injury (TRIFR) 24.4 frequency rate reduced to 0.4 19.9 Major risk reduction project is underway to implement critical control plan
Slide 5: Financial highlights
Financial highlights For personal use only Financials Units H1 FY18 H1 FY17 Change Statutory Profit before tax A$M 175.1 121.0 45% 1 Statutory Profit after tax A$M 122.5 136.7 10% 1 Underlying Profit after tax A$M 124.7 115.0 9% EBITDA A$M 399.1 345.3 16% Operating Cash Flow A$M 415.1 339.4 22% Grou
Slide 6: Group EBITDA
Group EBITDA Record group half year EBITDA (cash profit) up 16% to A$399.1M For personal use only Low operating unit costs driving increased cash profit Driving efficiencies to offset any cost pressures Investment in Ernest Henry delivering value with A$116.3M contribution FY18 Half Year EBI
Slide 7: EBITDA margins
EBITDA margins Site EBITDA margins of 37% to 67% able to support capital programs Group EBITDA Margin (%) For personal use only 53% Group EBITDA margin up 8% to 53%(1) 49% 46% Site EBITDA Margin 40% FY17 66% 64% 67% H1 FY18 (1) 33% 59% 58% 61% 55% 49% 45% 40% 39% 37% (1) FY14 FY15 FY16 FY17 H1 F
Slide 8: Discovery and resource definition
Discovery and resource definition Continued investment in organic growth at A$27.8M Cowal – developing gold and copper targets at E41 along For personal use only with proof of (geological) concept drilling along Galway- Discovery investment of A$16.2M with majority Regal-E46 trend directed to
Slide 9: Group cash flow
Group cash flow All operations cash positive after capital investment For personal use only Sustaining and major capital remain in line with FY18 guidance First tax payment of A$36M for FY17 income generating franking credits Banking high cash generation to continue to reduce net debt Operat
Slide 10: Delivering value from investments
Delivering value from investments Assets Developed or Acquired For personal use only Asset Cost - A$263M Asset Cost - A$756M Asset Cost - A$358M Asset Cost - A$901M Capital Investment - A$127M Capital Investment - A$146M Capital Investment - A$127M Capital Investment - A$15M Average ROI - 25% p.a. A
Slide 11: Balance sheet continues to strengthen
Balance sheet continues to strengthen Significant improvement in liquidity Cash and Liquidity For personal use only 164 Cash and undrawn debt of A$463.5M 37 Term Facility B fully repaid during the half-year – 17 approximately three years ahead of schedule 53 300 300 205 113 Bank debt at 31 D
Slide 12: Dividends
Dividends Dividends Declared Cents per Share New dividend policy increasing returns to shareholders For personal use only Fully franked interim dividend up 75% to 3.5 cents 3 Total FY18 interim dividend of A$59.2M to be paid on 30 March 2018 2 1 1 3.5 2 1 1 1 1 Dividends Declared A$M (Pre-DRP)
Slide 13: Cowal projects update
Cowal projects update Significant investment in Cowal’s future For personal use only Investing ~A$300 million over four years Delivers mine life through to 2032 Cornerstone asset with further extension opportunities Stage H cutback on track All pre-work complete Stage H cutback Ramped
Slide 14: Generating superior financial returns
Generating superior financial returns For personal use only Low cost 20% AISC 11% AIC A$785/oz A$993/oz High margin 6% EBITDA margin 17% AIC margin 53% A$628/oz High cash 20% Group cash flow 20% Cash flow per share generation A$176.8M 21 cents Strong 57% Gearing 75% Interim dividend balance sheet fu
Slide 15: Appendix
For personal use only Appendix ASX code: EVN www.evolutionmining.com.au
Slide 16: Statutory profit reconciliation
Statutory profit reconciliation Transaction costs of A$1.2M after tax relate to Edna May sale For personal use only Deferred tax effect of Edna May sale of A$4.2M Non-cash fair value gain on unwind of derivative contracts (Mungari) of A$3.1M Reconciliation of Underlying to Statutory Profit A$M
Slide 17: Underlying net profit reconciliation
Underlying net profit reconciliation For personal use only Underlying Net Profit After Tax A$M 72.7 4.4 15.5 0.5 (16.6) 8.2 124.7 115.0 (23.7) (4.2) (32.9) (14.3) Underlying Gold Volume Gold Price By Product By Product Mine D&A Exploration, Other Fair value Tax Underlying Profit Volume Price Operati
Slide 18: Taxation
Taxation ▪ All unrestricted tax losses utilised during the year to June 2017 For personal use only ▪ Tax payment for 2017 tax year of A$36M paid in December 2017 ▪ Restricted tax losses recorded on balance sheet as an asset amount as at December 2017 is A$11.5M ▪ A$10.1M of La Mancha acquired tax lo