Evolution MiningThe Gold Investment Symposium
8 October 2014
Jake Klein – Executive Chairman
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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
Forward looking statements
Australian mid-tier gold producer
1. At 2 October 2014 (share price A$0.70)
2. 3 month average to 2 October 2014
3. At 30 June 2014
Corporate Information
ASX Code EVN
Shares 712M
Market
Capitalisation1 A$500M
Daily Turnover2 A$1.6M
Major
Shareholders
Newcrest 32.4%
Van Eck 10.1%
Allan Gray 8.7%
Cash & unsold
doré3 A$41.3M
Debt3 A$126.8M
Available Credit A$73.2M
Forward Sales3 164,319oz at
A$1,597/oz
Dividend Policy 2% of gold revenue
Production Guidance FY15
400koz - 440koz AuEq
AISC A$1,050/oz – A$1,130/oz
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Highlights
FY14 production of 428koz AuEq
Development of Mt Carlton
3 straight years of achieving guidance
Strong financial position
Exciting exploration pipeline
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Growing production
302,842 oz
346,979 oz
392,886 oz
427,703 oz
FY2011 FY2012 FY2013 FY2014
Gold Production FY2011 – FY2014
Group Gold Equivalent Production* Assumes pro forma ownership of current assets over FY11 and FY12
We say, We do, We deliver
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Three pillars
Operations Discovery M&A
Act like owners to
maintain a cost and
productivity focus
over the longer term
Using science and technology to
improve probability of transformational
discoveries
Improve the quality of asset portfolio
through opportunistic, logical, value
accretive acquisitions
Creating shareholder value
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Operations
Notes relevant to the gold equivalence (AuEq) calculation for silver and copper in the Mt Carlton Reserve:
• The calculation is based on commodity prices of A$1,350/oz for gold, 91% for silver and A$3.00/lb for copper
• The calculation uses metallurgical recovery to concentrate of 89.0% for gold, 91.0% for silver and 91.0% for copper at V2 and
88.0% for silver and 92.0% for copper at A39 – based on recent plant performance
• AuEq for Silver = ((Price Ag per oz x Ag Recovery)/(Price Au per oz)) x Ag Grade
The information is extracted from the ASX announcement “Annual Mineral Resources and Ore Reserve Statement” created on 25 June 2014 and is available to view on www.evolutionmining.com.au. Evolution
confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and in the case of estimates of Mineral Resources or Ore Reserves, that
all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed
• AuEq for Copper = ((Price Cu per lb x 2204.623) x (Cu Recovery)) / ((Price Au per oz / 31.1034768) x (Cu grade /
100)). Using a conversion factor of 1 Troy Ounce = 31.1034768 grams
• All the elements included in the gold equivalent calculation (ie. silver and copper) have been recovered and sold
there is a reasonable potential that this will continue to be the case
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Asset Cracow Pajingo Edna May Mt Rawdon Mt Carlton
Location Queensland QueenslandWestern
AustraliaQueensland Queensland
Mine Type Underground Underground Open Pit Open Pit Open Pit
Plant Capacity (ktpa) 550 650 2,800 3,600 800
Resources
(koz AuEq)724 923 1,145 1,234 1,278
Reserves (koz AuEq) 260 155 402 862 947
Reserve Grade
(Au g/t)5.9 6.2 1.1 0.9 3.0
Mine Life (years) 6 5 6 9 12
FY15 Production
Guidance (koz pa)90 – 95 65 – 72.5 80 – 90 100 – 110 65 – 72.5
Cash generation
FY14 EBITDA of A$207.6 million and NPAT of A$50.0 million
Operations were cash positive post capital investment
0
10
20
30
40
50
60
70
Mt Rawdon Cracow Mt Carlton Edna May Pajingo
A$
M
FY14 Underlying Site EBITDA vs Capex
Sustaining Capex Growth Capex Underlying site EBITDA
* Site EBITDA is before all corporate administration costs, non-recurring items and exploration expenses
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Cost reductions
A$91.0 million in mine operating cash flow generated in FY14
Act like owners to drive productivity
89.4 85.7 76.4
53.0 56.0 46.8
73.2
35.0 38.3
40%
41%
52%
30%
42%
29%
47%
29%
33%
Cracow Pajingo Mt Rawdon Edna May Mt Carlton
Total mining cost FY13 Total mining cost FY14 EBITDA Margin FY13 EBITDA Margin FY14
Note: Mt Carlton commercial production declared on 1 July 2013
Mining costs and EBITDA margins FY14 vs FY13 (A$M)
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Substantial cost savings following transition to owner-miner at Cracow (July 2013)
of $18M in FY14 (or $200/oz AISC saving)
Successfully transitioned to owner-miner at Mt Rawdon in July 2014
Shift to owner miner
Cracow water truck – CAT
Mt Rawdon haul truck – Terex MT3300
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Smarter drill & blast at Mt Rawdon
Blasting improvements show significant cost benefits
Estimated ~$5Mpa cost reductions following drill and blast optimisation project
Large diameter (203mm) blast holes, 15m benches
(from 10m), plus electronic detonation (Unitronic600)
has improved productivity
45% decrease in production blast holes, allowing
a 33% reduction in drill fleet
25% decrease in blast related shutdowns
(increased blast size and combination blasts)
10% increase in excavation rates
40% reduction in rock breaker hours
10% increase in plant throughput
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Voluntary turnover¹ has halved since March 2013
representing a cost saving in the order of A$2Mpa
Reflects a more competitive labour force and increased
focus on quality of hire
Reduction in voluntary turnover
1. Voluntary turnover (12 months rolling) – includes permanent employees who have resigned in the previous 12 months as a percentage of average permanent headcount
10%
15%
20%
25%
30%
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Group Voluntary Turnover (%)
Voluntary Turnover
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Build competent, experienced
team
thinking like scientists
Asset priority and ranking
Innovative 3D seismic viewing
structures at depth
4D modelling integrating geological
time for better understanding
Alteration and geochemical
mapping at Mt Carlton
Framework & proof of concept drilling
Exploration drilling in FY15 testing targets
from 4D studies
Discovery
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Investing A$20.0M per year to target transformational discoveries through brownfields
and greenfields exploration
3D Seismic survey completed
3D paleo-stress model completed
“Ant tracking” 3D fault interpolation
Seismic calibration drilling identified
new epithermal structure
Anomalous gold, silver and
tellurium results
Quartz-adularia veining identified
Testing of targets underway
New lode identified between Empire
and Coronation – named Imperial
400m zone between Coronation
and Empire
Cracow exploration
Depth slice of 3D seismic survey at 484m below
surface. Grey lines represent faults, some of which
correspond to the location of known faults and
epithermal orebodies.
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Pajingo exploration
2D seismic line provided proof of concept
3D seismic survey and initial processing completed
Exploration review and targeting underway
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3 k
ilo
me
tre
de
pth
2D Seismic Image Across Pajingo Field
Syn-mineral extensional faults
Post-mineral inversion faults
Stratigraphic markers in volcanic sequence
Tennant Creek exploration
JV agreement with Emmerson
Resources over Tennant Creek gold-
copper project
Historically one of Australia’s highest
grade gold and copper fields with
production of 5.5Moz gold and
470,000t copper
Application of new technology could
uncover many more high grade
deposits
Recent results from Chariot East:
2m @ 7.36 g/t gold from 130m in CHRC286
4m at 11.8g/t gold from 111m in CHRC287
7m at 3.14g/t gold from 130m in CHRC288
Source: Emmerson Resources company presentation
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Source: KPMG M&A Global Research Report 1999
Portfolio management
Create value through logical, opportunistic
acquisitions
Leverage off strong operational performance to
upgrade the quality of the portfolio over time
Make geological calls – backing our discovery
team
Divest underperforming assets if a fair price can
be achieved
Exercise discipline and patience
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Australia
Delivery Delivering on guidance since creation
Delivering a significant growth project
Delivering on exploration upside
Gold dividend Dividend linked to gold production and gold price
Growth Exploration funded through strong cash flow
Opportunistic, logical acquisitions
Low risk - First World jurisdiction
Second largest gold producer globally
Globally competitive on costs - and improving
The Evolution value proposition
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