Avanco Resources : Full Year 2016 Results 28 Mar 2017

2016 Full Year Financial Results Presentation 28 March 2017 Tony Polglase, Scott Funston, Nick Bias

• Antas built, commissioned and ramped up ahead of schedule and under budget

• Exceptional safety record with no reported lost time injuries

• Contained copper production exceeded guidance

  • FY16: 11,188· tonnes, Q416: 4,011 tonnes

• Revenue of $59.2 million for the year (Q4 $24.4 million)

• EBITDA of $16.8 million for the year (Q4 $7.8 million)

• Net loss of $2.7 million for the year (Q4 net profit $0.75 million)

• Debt free with cash balance of US$22.9m at 31 December 2016

All dollar amounts in this announcement refer to United States Dollar unless otherwise stated.

2

In 2016 Avanco contained production:

11,188 tonnes of copper 7,779 ounces of gold

Production guidance for 2017: 13,500-14,000 tonnes of copper (+20%) 9,750-10,500 grams of gold (+25%) 3

The loss after tax for the year ended 31 December 2016 was US$2.7 million. For financial reporting purposes production at the Antas operation commenced on 1 April 2016. The current period result includes an underlying EBITDA of US$16.7 million.

Q1 2016	Q2 2016	Q3 2016	Q4 2016	FY 2016
Sales revenue	-	16,250	18,617	24,416	59,283
Treatment, refining and transport charges	-	(2,860)	(3,174)	(3,642)	(9,676)
Net sales revenue	-	13,390	15,443	20,774	49,607
Production costs and changes to stockpile inventories	-	(6,259)	(8,184)	(9,941)	(24,384)
Royalties	-	(1,111)	(1,474)	(1,723)	(4,308)
Gross profit, before depreciation and amortisation	-	6,020	5,785	9,110	20,915
General, administration and other expenses	(549)	(1,038)	(1,238)	(1,433)	(4,258)
Net foreign exchange gain/(loss)	(95)	(94)	250	(45)	16
Underlying EBITDA	(644)	4,888	4,797	7,632	16,673

4