Brisbane Mining Club. 19 October 2017 Jake Klein Executive Chairman

Transcription

1 Brisbane Mining Club 19 October 2017 Jake Klein Executive Chairman

2 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, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. 2

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4 Overview ASX code EVN Shares outstanding 1,693M Market capitalisation (1) A$3,826M Average daily share turnover (2) A$25M Net debt (3) A$342M Forward sales (3) 410,498oz at A$1,656/oz New dividend policy Payout of 50% of after tax earnings Major shareholders La Mancha 27% (4), Van Eck 10% US$1,259 Group AISC (5) (per ounce) Operating cash flow (A$M) A$1,228 A$1,083 US$995 A$1,036 US$867 A$1,014 US$739 (1) Based on share price of A$2.26 per share on 13 October 2017 (2) Average daily share turnover for three months through to 13 October 2017 A$907 US$684 FY13 FY14 FY15 FY16 FY (3) As at 30 September 2017 (4) Relevant Interest FY13 FY14 FY15 FY16 FY17 (5) US$ values calculated using average AUD:USD FX in relevant financial year 4

5 Gold price per ounce Gold price 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1, Sep Sep Sep Sep Sep Sep-17 Keep to this font and colour for pictures A$ gold price US$ gold price 5

6 Australian gold mining landscape 2011 Keep to this font and colour for pictures 6

7 Australian gold miners Keep to this font and colour for pictures 7

8 NCM EVN NST OGC RRL SBM SAR RSG WGX GOR DCN PRU BDR CDV RMS SLR WAF AQG GCY ALK PNR MOY AMI BRB BLK DRM KCN MML TRY ABU Australian gold mining landscape ,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Market Capitalisation (A$M) 0 Keep to this font and colour for pictures 8

9 Attributes of a sustainable gold business 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 9

10 Current indicative AISC margin (A$/oz) Upgrading the quality of our asset portfolio (Gold price of A$1,650/oz less FY17 AISC) (1) $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 Bubble size represents FY17 production Cracow Group Reserve life ~9 years Mungari Mt Carlton Mt Rawdon Ernest Henry Cowal $250 Pajingo Edna May $0-2 yrs 4 yrs 6 yrs 8 yrs 10 yrs 12 yrs 14 yrs Indicative reserve life based on FY17 production level (1) Source:Data sourced from company reported figures and guidance where available. (1) Keep This information to this font is extracted and colour from for the pictures report entitled Annual Mineral Resources and Ore Reserve Statement released by Evolution to ASX on 20 April 2017 and is available to view on 10

11 Mt Carlton March 2010 Evolution Delivery Sept 2017 FEASIBILITY STUDY DELCARED PROJECT UNECONOMIC ENTERPRISE VALUE A$51M OFFTAKE PARTY SECURED ONE OF THE HIGHEST GRADE OPEN PIT GOLD MINES IN THE DEVELOPED BY EVOLUTION AND WORLD COMMISSIONED IN 2013 LIFE OF MINE - INITIAL CAPITAL REPAID BY DECEMBER GRAVITY CIRCUIT COMMISSIONED IN JUNE 2017 QTR TO INCREASE PAYABILITY Production AISC Cash Flow FY16 FY17 FY16 FY17 FY16 FY17 113koz 105koz A$742/oz $622/oz A$103M A$91M 11

12 Cowal July 2015 Evolution Delivery Sept 2017 MINING PERMIT TO 2014 RESERVES 2014 MINERAL RESOURCES PURCHASE PRICE Moz Moz 1 A$703M 1. Barrick (Australia Pacific ) Pty Limited estimate depleted to 31 December refer to ASX release 26 Aug 2015 entitled Resources and Reserves Increased at Cowal available to view at 2. Prior to mining depletion 3. Depleted to 31 December years Moz Moz 2 July 2015 Sept 2017 GOLD PRODUCTION NET MINE CASH FLOW COST OF RESERVE ADDITIONS 571koz A$375M A$14/oz MINING PERMIT TO 2016 RESERVES 2016 MINERAL RESOURCES Moz Moz 3 ADDITIONAL UPSIDE - CO-TREAT OXIDES - INCREASE THROUGHPUT - E41, E46, GALWAY/REGAL 12

13 Ernest Henry Large scale, long life, copper-gold asset operated by Glencore Ernest Henry ore body looking west Approximately A$600 million recently invested by Glencore in expanding the underground mine to 6.4Mtpa Evolution s economic interest acquired 1 November 2016: 100% of gold and 30% of copper and silver produced over 11 year life of mine (LOM) plan Annual payable production (Evolution s interest): 80 85koz Au and 18 20kt Cu 1200 RL Drilling target Upside opportunities through potential mine life extensions and exploration joint venture Evolution has a 49% interest in all gold, copper and silver production beyond current LOM area A$100 million Past six month s net mine cash flow from Evolution s interest (April September 2017) 13

14 FY17 EBITDA margins Longest life assets generating highest margins Benefits of diverse portfolio no dependence on any single asset 59% 59% 61% Site EBITDA Margin 64% 58% 55% 48% 49% 47% 49% 39% FY16 FY17 (1) Group EBITDA Margin 49% 46% 40% 33% 18% 11% Cowal Ernest Henry Mt Carlton Mt Rawdon Mungari Cracow Edna May (Divested) 10+ years (2) 6-8 years (2) 3-6 years (2) EBITDA Contribution 10+ years 47% EBITDA Contribution 6-8 years 29% EBITDA Contribution 3-6 years 24% FY14 FY15 Group* FY16 FY17 (1) *FY17 Excludes Pajingo Group margin up 50% from FY14 Delivered by mix of cost reductions; gold price and change in asset portfolio (1) FY17 excludes Pajingo (2) Indicative reserve life based on FY17 production level 14

15 Vision Be known as a company that is good for your career Move meaningfully down the Bradley curve for risk Improve operational efficiency and productivity Develop an ore body we have discovered Inspired people creating Australia s premier gold company 15

16 ASX code: EVN