Evolution Mining - asx.com.au
Transcript of Evolution Mining - asx.com.au
Evolution Mining 2013 Half Year Financial Results For the six month period ending 31 December 2012
21 February 2013
Tim Churcher – VP & Chief Financial Officer
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Disclaimer
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This presentation has been prepared by Evolution Mining Limited (“Evolution Mining”) and consists of slides
for a presentation concerning the company. By reviewing/attending this presentation, you acknowledge and
agree the following.
This presentation includes forward-looking statements. Forward-looking statements inherently involve
subjective judgement and analysis and are subject to a number of risks, uncertainties, contingencies and other
factors, many of which are outside the control of, and may be unknown to, Evolution Mining. As such, actual
results or performance may vary materially from those expressed or implied by forward-looking statements.
The types of factors that could cause such variation in actual results or performance include (without
limitation) commodity prices, operational problems and general economic conditions. Given these factors,
undue reliance should not be placed on forward-looking statements, which speak only as at the date of this
presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange
listing rules, Evolution Mining does not undertake any obligation to publicly update or revise any forward-
looking statements contained in this presentation, including (without limitation) where Evolution Mining’s
expectations change in relation to such statements and where there is a change in events, conditions or
circumstances providing the basis for any such statement.
No representation or warranty, express or implied, is made as to the accuracy, completeness, reliability,
fairness or correctness of the information contained in this presentation. To the maximum extent permitted by
law, Evolution Mining and its related bodies corporate and affiliates, and each of their respective directors,
officers, employees, agents and representatives, disclaim any liability or responsibility for loss or damage
arising from or in connection with the use of the information contained in this presentation.
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Group gold production of 196,110 ounces – exceeding guidance
Group average cash costs of A$749/oz – within guidance
Underlying EBITDA increased by 151% to $135.5M
Net profit increased by 327% to $40.7M
Strong balance sheet with cash of $49.2M and debt of $81.8M
(7% gearing at 31 December 2012)
Gold-linked dividend policy of 2% of gold production announced
H1 FY13 Highlights
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Note: All $ figures refer to A$ unless otherwise stated.
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Financial Summary – H1 FY13
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Reported Net Profit of A$40.7 million
(1) Underlying EBITDA, EBIT and Net Profit are non-IFRS financial information and are not subject to audit. (2) The estimate of expenses relating to the acquisition of Conquest Mining Limited and the Newcrest mine assets. This expense was revised to $19.96M at 30 June 2012. (3) The estimate of the fair value uplift of Evolution’s existing 30% interest in the Cracow Gold Mine. This estimate was revised to $1.93M at 30 June 2012.
6 months ending 31 Dec 2012 31 Dec 2011 % Increase
A$’000 $’000 (Decrease)
Total Revenue 321,642 154,615 108%
Underlying EBITDA (1) 135,468 54,066 151%
Underlying EBIT (1) 63,600 23,887 166%
Underlying Net Profit (1) 40,687 14,134 188%
Business combination costs (2) 0 (29,427)
Fair value uplift of 30% Cracow (3) 0 8,097
Other tax effected amounts 0 (10,750)
Reported Net Profit 40,687 (17,946) For
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37,089oz 46,687oz
28,444oz 54,324oz
21,229oz
39,991oz
12,367oz
53,107oz
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100,000
150,000
200,000
250,000
H1 FY12 H1 FY13
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Delivering on guidance
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Production and Cost - H1 FY13
Group production 196,110oz (a 98% increase) at $749/oz cash cost
Cash cost $732/oz
Cash cost $749/oz Mt Rawdon
Pajingo
Cracow
Edna May
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Revenue from gold and silver sales increased by 108% to $321.6M
Edna May Crushing Circuit
Sales Revenue – H1 FY13
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Very strong financial position
$88,847 $85,113 $81,220
$66,462
$1,633/oz $1,628/oz $1,628/oz $1,633/oz
1,550
1,600
1,650
1,700
1,750
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50,000
75,000
100,000
125,000
150,000
Cracow Mt Rawdon Edna May Pajingo
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A$48,567
A$39,270
A$35,111
A$29,458
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40,000
60,000
Mt Rawdon Cracow Edna May Pajingo
EB
ITD
A (
A$'0
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32% 23% 19% 26%
Mine EBITDA – H1 FY13
Underlying Mine EBITDA was $152.4M (pre corporate & exploration)
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Contribution to Mine EBITDA
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A$382M
A$256M
A$202M A$172M A$163M
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Mt Carlton Mt Rawdon Pajingo Cracow Edna May
Asset
Base (
A$M
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$13.6M
$339/oz $19.7M
$362/oz
Mine D&A – H1 FY13
Depreciation & Amortisation (D&A) charge of $71.5M ($364/oz)
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Asset base (PP&E + Mine Development)
D&A
Charge in
H1 FY13
$28.5M
$536/oz
$9.7M
$199/oz For
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Mine EBIT – H1 FY13
Underlying mine EBIT of $81.0M (pre corporate & exploration)
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$25,401
$20,076 $19,582
$15,895
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Edna May Mt Rawdon Cracow Pajingo
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31% 25% 24% 20%
Contribution to Mine EBIT
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Group Cash Flow – H1 FY13
$141.7
$322.8
$167.0
$37.2 $16.1 $21.4
$218.7
$45.0 $49.2 0
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450
500 Cash Flow – six months to 31 December 2012
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$213M of mine capital additions
51% related to Mt Carlton
Remainder predominantly on
accelerated mine development at
operations
Strong balance sheet
Net assets of $1,098M
Cash of $49.2M
Debt drawn to $81.8M
7% gearing at 31 Dec 2012
Undrawn debt capacity $118M
Balance Sheet – 31 Dec 12
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$109.6M
$22.6M
$34.2M
$17.0M
$30.0M
H1 FY13 Mine capital Investment Total $213M
Mt Carlton Cracow Pajingo
Edna May Mt RawdonFor
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Translated predictable operating performance into predictable financial
performance
Delivered profit, operating cash flow and investment in growth
Have reached peak funding with minimal gearing
Introduced gold-linked dividend policy to enhance shareholder returns
Financially in the right place at the right time
The new, leading Australian gold producer
We Say, We Do, We Deliver
Evolution Mining
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