AUSTRALIAN GAS NETWORKS LTD 
By FY14 Half-Year Financial Results
For the six month period ending 31 December 2013
21 February 2014
Tim Churcher - VP Finance & Chief Financial Officer
Disclaimer 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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Half-year financial highlights Net profit of A$35.4M
Revenue from gold, silver and copper sales of A$320.9M
EBITDA of A$110.9M
Group production of 214,396 gold equivalent¹ ounces
Group average cash costs of A$766 (US$7072) per ounce and AISC3 of
A$1,070 (US$9872) per ounce
Cash and available credit of A$95.2M at 31 December 2013
Modest gearing of 13%
Commercial production achieved at Mt Carlton, Evolution's newest mine
Exploration team working towards transformational discovery - 4D studies progressing well
Interim dividend of 1 cent per share declared (unfranked)
1. Gold equivalent is defined as gold plus payable silver from the A39 deposit at Mt Carlton
2. Using an average AUD:USD exchange rate for the December half of $0.9227
3. AISC (All-in Sustaining Cost) includes C1 cash cost plus royalty, sustaining capital, general corporate and administration expenses
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Profit result summary Lower gold price, Mt Carlton addition
Mt Carlton costs
Cost reduction initiatives
June 30 asset impairment
Increased debt levels
Favourable tax ruling
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
4
Key revenue drivers H1 FY14 revenue from gold and silver sales maintained A$320.9M
1HFY14 | 1HFY13 | Change | |
Gold price received (A$/oz) | 1,444 | 1,630 | (11%) |
Silver price received (A$/oz) | 22.49 | 30.43 | (26%) |
A$M
Group Revenue
400
300
A$321.6M
A$64.4M
A$320.9M
200
A$65.1M
100
0
Six months to 31
Dec 2012
Lower commodity price and grade
Mt Carlton revenue Six months to 31
Dec 2013
Lower commodity prices and grade offset by Mt Carlton revenue
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Key profit driver - site EBITA$M
30
25
20
15
10
5
0
EBIT (H1 FY13 v H1 FY14)
Cracow Pajingo Edna May Mt Rawdon Mt Carlton
Six months to 31 Dec 2012 Six months to 31 Dec 2013
* Site EBIT excludes corporate and exploration costs. Site EBIT is non-IFRS financial information and not subject to audit.
Total site EBIT H1 FY14 of A$55.1M
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Key profit driver - operating costsA$M
60
Operating costs (H1 FY13 v H1 FY14)
50
40
30
20
Cracow Pajingo Edna May Mt Rawdon Mt Carlton
Six months to Dec 31, 2012 Six months to Dec 31, 2013
Impact of cost reduction initiatives and productivity improvements
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Group cash flow Net cash inflow from operations of A$114.0M
Net cash outflow from investing activities of A$102.2M (A$90.8M of which is capital expenditure outlay)
Net cash inflow from financing activities of A$11.6M (includes A$7.1M dividend payment)
A$M
140
120
A$114.0M
100
80
60
40
20
0 A$13.7M
A$102.2M
A$11.5M
A$37.0M
Cash at 30 Jun 2013 Operating activities Investing activities Financing activities Cash at 31 Dec 2013
Generating cash in a lower gold price environment
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Cash flow driver - EBITDAA$M
50
40
30
20
10
0
H1 FY14 Site EBITDA vs Capex
Edna May Cracow Pajingo Mt Rawdon Mt Carlton
Growth Capex Sustaining Capex Site EBITDA
1. Site EBITDA is before all corporate administration costs, non-recurring items and exploration expenses
Site EBITDA¹ of A$122.8M. Capital expenditure of A$90.8M
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Balance sheet & liquidity Conservative balance sheet maintained
Available liquidity of A$95.2M (cash and available credit)
Gearing modest at 13%
Modest gearing ratio
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Summary Operational stability and predictability delivered through a portfolio of five
Australian mines
First-half net profit of A$35.4 million
Implemented production efficiencies, capital discipline and cost reductions in response to a lower gold price environment
Interim dividend of 1 cent per share delivering returns to shareholders
FY14 production and cost guidance maintained: 400,000 - 450,000 gold equivalent ounces with cash operating costs in the range of A$770 - A$820/oz
FY14 capital spend anticipated to be at the lower end of the A$160M -
A$185M guidance
Highly talented exploration team focused on transformational growth
Strong financial position - no current intention to raise additional equity
Uniquely positioned to participate in a transformational period in the Australian gold industry
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Evolution Mining ASX Code: EVNwww.evolutionmining.com.au
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