EVOLUTION MINING LIMITED — Interim / Quarterly Report 2015

Feb 17, 2015

Evolution Mining FY15 Half-Year Financial Results For the six month period ending 31 December 2014

18 February 2015

Jake Klein – Executive Chairman

Lawrie Conway – Finance Director and Chief Financial Officer

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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.

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Hi hli hts g g

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 Record half-year net profit of A$43.1M

• Revenue of A$325.0M

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• Record gold sales revenue (8% increase)

• Lower silver sales revenue (49% decrease) – completion of Mt Carlton A39, lower silver price

• EBITDA of A$131.8M (19% increase) driven by lower costs

• Record low Group average cash costs of A$710 (US$633)[1] per ounce and AISC[2] of A$1,035 (US$923)[1] per ounce

• Cash balance increased to A$47.4M at 31 December 2014

• Gearing reduced to 9.7%

• Interim dividend declared - 1 cent per share unfranked

• Calculated using an average AUD:USD exchange rate for the December 2014 half of 0.8915

• All-in Sustaining Cost includes C1 cash cost, plus royalty expense, plus sustaining capital expense, plus general corporate and administration expenses on a per ounce produced basis

A focus on higher margin ounces

Profit summar y

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**fit summary **
	6 months ending
Financial Summary	31 Dec 14 A$’000 31 Dec 13 A$’000 % Change
Gold price received (A$/oz)	1,429 1,444 1%
Silver price received (A$/oz)	20.74 22.49 8%
Gold sales (oz)	211,567 193,456 9%
Total revenue	325,031 320,934 1%
Cash cost of sales (excluding D&A)	(181,329) (198,162) 8%
Corporate, exploration & other	(11,931) (11,899) 0%
**EBITDA1 **	131,771 110,873 19%
Depreciation & Amortisation	(81,232) (68,170) 19%
**EBIT1 **	50,539 42,703 18%
Net interest expense2	(7,465) (7,254) 3%
Income tax expense 3	- - -
Net profit	43,074 35,449 22%

1. EBITDA and EBIT are non-IFRS financial information and are not subject to audit

2. Net interest expense is interest income less interest charged for the period

3. Income tax expense offset by previously unrecognised tax losses

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Profit com arison – 1H 2015 vs 1H 2014 p

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 Record net profit driven by higher sales and lower costs despite lower gold price, lower sales revenue and increased depreciation and amortisation charges

Underlying Net Profit (A$M)

16.8 2.6 8.8 43.1 (13.1) (2.8) 35.4 (4.7) Underlying Profit Revenue Revenue Price Costs D&A Exploration Corporate, Underlying Profit Dec Half 13 Volume interest & other Dec Half 14

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Site costs

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• Record low group unit cash costs (7% decrease)

• Driven by improvements at Edna May (26% decrease) and Pajingo (22% decrease)

• Further highlights the benefits of our portfolio of assets

C1 Cash Costs (A$/oz)

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766
710
Evolution
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1,000
947
193 135
777
736 733 725
701 696 696 [725 ]
646
592
Cracow Pajingo Edna May Mt Rawdon Mt Carlton
Dec Half 2013 Dec Half 2014 By-product credit
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EBITDA mar ins g

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 Margin benefiting from continued focus on cost base and production efficiencies

Group EBITDA Margin (%)

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Dec Half 2013 35%
Dec Half 2014 41%
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Site EBITDA Margins (%)
52%
51%
49%
42%
39%
37%
32% 32%
26%
Cracow Pajingo Edna May Mt Rawdon Mt Carlton
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EBITDA Margin Dec Half 2013 Margin Expansion - Dec Half 2014 Margin Contraction - Dec Half 2014

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Site cash flow

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 All sites contributing positive cash after sustaining and growth capital expenditure

Site Cash Generation (A$M)

90 80 70 60 50 40 30 20 10 0

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Cracow Pajingo Edna Mt Mt Cracow Pajingo MayEdna May RawdonMt Rawdon CarltonMt Carlton Revenue Hedge Operating Costs Sustaining Capex Growth Capex

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Discover y

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• Ongoing investment in critical exploration targets

• A$11.5 million invested in exploration in the December 2014 half-year

• High-grade intersections at Pajingo (Camembert) – mineralisation currently identified along 900m strike length

• Encouraging 3D seismic survey results at Cracow – faults correspond to known orebodies

• Tennant Creek – new ironstone-hosted copper-gold targets intersected at Eldorado and Chariot, and 11,000m RAB programme and aeromagnetic survey at Billy Boy

Exploration Investment

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Tennant
Creek Pajingo
32%
30%
Cracow
Mt Carlton
10%
22%
Edna May
Mt Rawdon 4%
2%
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Cash flow

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• Cash flow improving with A$29.5M before financing

• Financing costs to decrease due to reducing net debt and new debt facility costs

• Capacity for returns to shareholders via dividends remains

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160.00 Cash Flow (A$M )
144.7
140.00
120.00
100.00 (34.0)
80.00
60.00
(54.6)
(4.6)
40.00 29.5
(11.1)
20.00 (11.0) 15.8
(7.8)
(5.9)
-
Cash flow Sustaining Growth Working Exploration Corporate Free Cash Financing Dividends Net cash
from capital projects capital Flow Before flow
operating Financing
activities
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Balance sheet and earin
g g

Financial position continues to strengthen

Production to plan and costs lowering
Gearing (%) vs Gold Price (A$/oz)
 20%
Cash increasing at prices that were 1,605
A$150/oz below current spot 18% 1,422 1,414 1,395 1,500
 16%
Gearing reduced to below 10% against
14%
declining gold price 1,000
12% 13.5%
 Debt structure materially improved 13.2%
10% 12.0%

500
Renewed at lower cost: A$10M savings
8% 9.7%
over term
6%

Maturity of 3 years+ -
4%

Moderate hedge profile at 20-25% of 2%
production
0% -500
 348k ounces at A$1,541/oz average 30 Jun 31 Dec 30 Jun 31 Dec
2013 2013 2014 2014

Revenue linked dividend continues to be
Gearing Avg Gold Spot Price (A$/oz)
delivered to shareholders
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Summar y

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• Operational stability and margin expansion from operations

• Record six-month net profit of A$43.1 million

• Record half-year production of 220,444 gold equivalent ounces

• Record low Group C1 unit cash cost and AISC

• Cash balance increased to A$47.4 million

• Gearing reduced to 9.7%

• Delivering return to shareholders via interim dividend of 1c per share

• Balance sheet in very good shape

We Say, We Do, We Deliver

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Evolution Mining ASX Code: EVN

www.evolutionmining.com.au

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