EVOLUTION MINING LIMITED — Annual Report 2012

Aug 29, 2012

Evolution Mining FY12 Full Year Financial Results

30 August 2012 Tim Churcher - VP Finance & Chief Financial Officer

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, under 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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FY12 Corporate Highlights

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• Successful merger delivers as planned

• Merger implemented successfully

• FY12 group production and cost guidance met

• Solid underlying profit result of A$63 million (for partial year ownership)

• Investment of A$244 million in operational predictability and growth

• Mt Carlton remains on schedule for Dec 12 commissioning but forecast capital cost to complete now $170-180 million

• Strong financial capacity maintained

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New leading Australian mid-tier gold company created
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FY2012 Financial Highlights

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• Growth in all key metrics

• Gold production increased by 192% to 280,401[1] (attributable) ounces

• Sales revenue increased by 285% to $469.5 million

• Underlying net profit increased by 4,010% to A$63.4 million

• Reported net profit increased by 1,720% to A$37.3 million

• Underlying EBITA increased by 559% to $190.0 million

• EPS growth of 618%

• Strong balance sheet maintained with cash of A$141.8 million

• Attributable production represents increased interest in Cracow from 30% to 100% on 2 November 2011, 100% of Mt Rawdon from 2 November 2011, and 100% of Pajingo from 17 October 2011.

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Profit

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 Underlying profit of A$63.4 million

12 months ending	30-Jun-12 A$k	30-Jun-11 A$k	% increase (decrease)
Total Revenue	469,484	121,870	285%
Underlying EBITDA	189,991	28,831	559%
Underlying EBIT	95,979	8,556	1,022%
Underlying Net Profit	63,395	(1,621)	4,010%
Business combination costs	(19,963)	(682)
Fair value uplift on 30% Cracow	1,930
Tax effect of permanent differences	(8,050)
Reported Net Profit	37,313	(2,303)	1,720%
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Non-recurring Items

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FY2012	A$k	A$k
Pre-tax Business combination costs (28,518) Fair Value uplift on 30% Cracow holding 2,757 Tax effect of permanent differences (8,050)		Post-tax (19,963) 1,930 (8,050)
Total Non-recurring Items (33,811)		(26,083)

• Business combination cost predominantly stamp duty (A$21.4 million)

• Cracow revaluation a once-off accounting adjustment (no cash impact)

• $8.05 million write down of prior year Catalpa tax asset as Evolution may have failed loss recoupment test as a result of the business combination

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FY12 Production and Cost Results

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 Group Production 280,401oz (attributable) at A$771/oz cash cost

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(oz) Group gold production Cash cost
300,000 A$771/oz
Pajingo
250,000
57,154oz
200,000 Mt Rawdon
71,205oz
150,000 Cash cost
A$956/oz Edna May
73,264oz
100,000
Edna May
50,000 65,592oz Cracow
78,779oz
0 Cracow 30,517oz
FY2011 FY2012
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Production up 192%, cash costs down 19% on pcp
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Note: Attributable production represents increased interest in Cracow from 30% to 100% on 2 November 2011, 100% of Mt Rawdon from 2 November 2011, and 100% of Pajingo from 17 October 2011. Cash costs are before royalties and after silver credits.

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Sales Revenue

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 Sales revenue grows by 285% to A$469 million

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Sales Revenue Au Price Received
(A$k) (A$/oz)
140,000 1,700
$129M
$122M
$116M 1,675
120,000
$102M 1,650
100,000
1,625
80,000
$1,618/oz 1,600
$1,607/oz $1,616/oz
1,575
60,000
$1,570/oz 1,550
40,000
1,525
20,000
1,500
0 1,475
Cracow Edna May Mt Rawdon Pajingo
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Note: 78% spot sales at av. price of $1,611/oz with remaining 22% sold into hedging at av. price of A$1,561/oz

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Site EBITDA

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 Operations deliver record underlying EBITDA* of A$225 million

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Contribution to site EBITDA
EBITDA (A$k)
33% 29% 20% 18%
80,000 $74M
$65M
60,000
$45M
$41M
40,000
20,000
0
Mt Rawdon Cracow Edna May Pajingo
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A reliable and profitable portfolio has been established
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• Site EBITDA is before all corporate administration costs, non-recurring items and exploration expenses

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Depreciation & Amortisation

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 D&A Charge of A$93.6 million driven by fair value uplift of acquired assets

Asset base

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A$k
(PP&E + Mine Development)
300,000
A$272M
A$254M D&A charge
250,000 in FY12
200,000
A$177M
A$165M
A$155M
150,000
100,000
$35M $19M $28M $12M
50,000
$496/oz $331/oz $354/oz $157/oz
0
Mt Carlton Mt Rawdon Pajingo Cracow Edna May
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Cash Flow

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 Strong underlying cashflow from operations of $172M

FY2012 Cash flow		A$M
Opening Cash at 30 June 2011		30.1
Cash inflow from operations		172.3
- cash received from sales	448.5
- operating costs, corporate & expl.	(275.5)
- net interest paid	(0.7)
Cash inflow from financing activities		142.6
- Nov 2011 equity raising	158.2
- Edna May debt repayments	(15.6)
Cash outflow from investing activities		(203.2)
- PP&E, mine development and capitalised expl. Costs	(216.8)
- other	13.6
Net Increase in cash		111.7
Closing Cash at 30 June 2012		141.8
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Capital Expenditure

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 Total of A$244 million invested for future growth

Capital Expenditure

New operations A$94[1] M

• $85M direct project capital

• Commissioning planned by end of year (Dec 12)

• Revised cost to complete now $170-180M

• $85-95M to be invested in FY13

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Edna May
A$44M
Cracow
A$32M
Pajingo
Mt Rawdon A$44M
A$30M
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Existing operations A$150M

• predominantly open pit stripping

• costs and lateral underground development capital

• 1 - includes pre-development costs

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Discovery Expenditure

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 A$18.5 million invested in Exploration in FY12

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Mt Rawdon
A$581k
Mt Carlton
A$2,587k
Cracow
A$3,249k
Edna May
A$4,561k
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Pajingo
A$7,579k
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Exploration expense of $5.5 million recorded in FY12

• 30% expensed/70% capitalised - reflects near-mine exploration drilling with limited grass-roots activity

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FY2013 exploration budget of A$28 million
>100,000 metres of drilling planned
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Balance Sheet

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 Conservative balance sheet maintained

12 months ending	30-Jun-12
	A$k
Current assets	219,173
Current liabilities	137,382
Net current assets	81,791
Current ratio	1.6
Total interest-bearing liabilities	35,845
Net Assets/Total Equity	1,056,418
Debt/Equity ratio	3%

 Healthy current ratio

 Low gearing ratio

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FY13 Guidance

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• Growth planned for FY13

 Full year ownership drives increased production

• Initial contribution from Mt Carlton

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Gold Equivalent Production Cash Operating Costs
Guidance FY2013
(oz) (A$/oz)
Cracow 90,000 – 100,000 780 – 820
Pajingo 85,000 – 90,000 730 – 780
Mt Rawdon 95,000 – 110,000 600 – 660
Edna May 75,000 – 80,000 840 – 890
Mt Carlton 25,000 – 30,000 790 – 860
Group 370,000 – 410,000 730 – 790
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Globally Competitive

• Strong operating and financial results delivered after only 8 months from formation

• Australian diversified gold producer – alternate investment opportunity

• Operational predictability – delivering to promise

• Proven management team

• Financial strength

• Delivering meaningful growth

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Evolution Mining ASX Code: EVN

www.evolutionmining.com.au