37 slides from St. Barbara's earnings presentation, Apr 19, 2018
Slide 1: Presentation on Q3 March FY18 Quarterly Report and audio webcast
ASX Release / 19 April 2018 For personal use only Presentation on Q3 March FY18 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q3 March FY18 Quarterly Report at 12:00 noon Australian Eastern Standard Time (UTC + 10 hours
Slide 2: Q3 March FY18 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 19 April 2018 ASX:SBM For personal use only Q3 March FY18 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited (“Company”). The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, s
Slide 4: Contents
Contents For personal use only • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices 3 / Q3 March FY18 Quarterly Presentation Photo: Tugboat offshore from Simberi dock, October 2017, photo by George Danga Jnr.
Slide 5: Highlights Q3 March FY18
Highlights Q3 March FY18 • 86 koz gold produced at AISC1 A$982/oz For personal use only • FY18 production guidance increased at Simberi2, maintained at Gwalia • Gwalia lower Q3 production was anticipated, while forward production activities and Extension Project prioritised • Gwalia Life of Mine Pla
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 For personal use only 6.0 5.0 4.1 2.6 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 Q3 FY18 FY18 FY18 • Increase in TRIFR to 2.6 to 31 Mar 2018 due to one low-severity recordable injury • Program to avoid recurrence implemented • Correspondi
Slide 7: Consolidated Q3 FY18 quarter
Consolidated Q3 FY18 quarter For personal use only AISC 982 (A$/oz) 959 FY17 average A$907/oz 889 910 • Consolidated production of 86 koz (Q2 FY18: 100 koz) 876 862 • Gwalia 57 koz (Q2: 63 koz) Production (koz) 100 • Simberi 29 koz (Q2: 37 koz) 95 98 94 86 • Consolidated AISC1 of A$982/oz 30 32 34 3
Slide 8: Gwalia Q3 FY18 results + FY18 guidance
Gwalia Q3 FY18 results + FY18 guidance AISC (A$/oz) 905 872 859 For personal use only 786 816 FY17 average A$785/oz 15.0 Q3 Mar FY18 production • 56,773 oz (Q2 FY18: 62,835 oz) Mined grade (g/t Au) 11.3 11.2 • AISC1 A$905/oz (Q2: A$859/oz) 10.7 • Mined grade of 15.0 g/t Au from 9.2 FY17 average 10.7
Slide 9: Simberi Q3 FY18 results + FY18 guidance
Simberi Q3 FY18 results + FY18 guidance For personal use only AISC (A$/oz) 1,277 Q3 Mar FY18 production FY17 average A$1,187/oz 1,129 1,025 1,125 • 29,112 oz (Q2: 36,674 oz) 1,027 994 • AISC1 A$1,129/oz (Q2: 994/oz) Production (koz) 36.7 • Illegal stoppage interrupted 34.0 production for 7 days in M
Slide 10: Increasing cash balance
Increasing cash balance For personal use only 262 A$M 46 17 216 Q3 movement net of: 199 38 Q2 movement net of: $16 M dividends $31 M tax $4 M investments 161 $12 M investments Q1 movement net of: $25 M dividends FY17 FY18 FY18 FY18 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Cash balance Column1 Net cash movement F
Slide 11: Cash generation and usage
Cash generation and usage A$M 100 86 For personal use only 79 79 80 Operational cash contribution 60 Net cash movement for qtr 40 46 Corp. costs & royalties, 20 38 explr. & working cap. 17 0 Strategic investments -16 -25 -31 -2 -20 -7 Leonora - growth capital -4 -1 -4 -4 -18 -11 -40 (inc. WC -10) In
Slide 12: Gwalia Extension Project update
Gwalia Extension Project update • Project includes new ventilation shafts • A$7M capex spent in Q3 Mar FY18 and underground crushing of waste, For personal use only • Raise bore activities progressing to mixed with paste to fill emptied stopes schedule with second surface shaft pilot • Budget of A$1
Slide 13: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For personal use only For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 12 / Q3 March FY18 Quarterly Presentation
Slide 14: Gwalia Mass Extraction PFS – Flow sheet
Gwalia Mass Extraction PFS – Flow sheet For personal use only For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 13 / Q3 March FY18 Quarterly Presentation
Slide 15: Exploration | Gwalia Deeps, 2600 mbs target
Exploration | Gwalia Deeps, 2600 mbs target For personal use only For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 14 / Q3 March FY18 Quarterly Presentation
Slide 16: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA For personal use only • Full results received for 163 hole Aircore drill program completed in Q2 Dec FY18. • Drilling highlights anomalous gold in bedrock associated with three trends: Graham’s Find, Yindi Station and Mulgabbie. • Further dril
Slide 17: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production only Back Creek Australia personal use Pinjin Greater Gwalia Catalyst Metals Peel 16% Mining 16%. Gwalia Tower Gwalia ABM GMX Gwalia Resources Duketon Hill Extension Mine 10% Mining 12%. Inorganic growth Evaluating exploration, project,
Slide 18: Key Project Timeline
Key Project Timeline FY18 FY19 FY20 For personal use only Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q1 Sep FY20 to Q3 Mar FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 2600 mbs hole drilling analysis & results 3D Targets
Slide 19: Strategy for the next years – “stronger for longer”
Strategy for the next 5 years – “stronger for longer” For personal use only Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in
Slide 20: Conclusion Q3 March FY18
Conclusion Q3 March FY18 • Continuing strong cash build in For personal use only planned lower production quarter • Cash contribution from operations of $79M in the quarter (Q2 FY18: $79M)1 • $262M cash at bank2, no debt • Profitable growth options underway: • Gwalia exploration, projects and studie
Slide 21: Appendices
Appendices For personal use only Summer Storms by Finlay Wilkinson, Leonora, Jan 2017 Gwalia, development face mapping – October 2017– photo by Ashleigh Smyth 20 / Q3 March FY18 Quarterly Presentation
Slide 22: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q3 YTD Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY181 St Barbara’s financial year Year to Qtr to Qtr to Qtr to 9 mths to Year to 30 June 2018 For personal use only is 1 July to 30 June 30 June 2017 30
Slide 23: Gwalia 5-year outlook
Gwalia 5-year outlook Mined Grade 11.7 (g/t Au) 10.7 9.8 For personal use only 8.8 8.9 9.3 8.2 8.4 8.1 7.7 6.9 6.7 6.3 5.7 Reserve Grade to 2140 mbs 7.8 g/t Au June 2017 290 260 280 267 265 250 250 260 without 248 240 240 hydraulic 214 hoisting AISC 185 183 (A$/oz) 940 920 930 LoM to 841 860 FY 2031
Slide 24: Gwalia Mass Extraction PFS – narrow lodes mining method
Gwalia Mass Extraction PFS – narrow lodes mining method For personal use only 23 / Q3 March FY18 Quarterly Presentation
Slide 25: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension For personal use only 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.2 Moz Sulphide Resource @ 1.8 g/t Au Simberi Sulphide PFS • Focused exploration for sulphide ore Capex US$100 million underway to improve project Production 130,000 ounces over 8 year
Slide 26: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic For personal use only Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 25 / Q3 March FY18 Quarterly Presentation
Slide 27: Exploration FY18 Guidance updated - A$14 to A$18 million
Exploration FY18 Guidance updated - A$14 to A$18 million For personal use only A$6 - A$8 million Gwalia (previously A$8 – A$10 million) • Gwalia Deep Drilling infill + Intermediates • Gwalia Seismic A$4 - A$5 million Pinjin WA • Aircore drilling of targets identified in FY17 A$4 - A$5 million PNG •
Slide 28: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration For personal use only • 3 target areas identified between 600 and 1,900 mbs north and south of Gwalia • Drilling planned for two holes in Q4 June FY18 (GWDD20 and GWDD21) For full explanation and results refer to ASX release 19 April 2018 ‘Quar
Slide 29: Exploration | Pinjin, Q3 March FY18 results
Exploration | Pinjin, Q3 March FY18 results For personal use only For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 28 / Q3 March FY18 Quarterly Presentation
Slide 30: Exploration | Tabar Island group, PNG, Q3 March FY18
Exploration | Tabar Island group, PNG, Q3 March FY18 For personal use only Tabar Islands • Simberi Pigiput 750m drill hole to assess conceptual Cu-Au porphyry target ongoing • Newcrest Option and Farm-in three drills holes targeting Cu-Au porphyry at Talik North, for 2,481 metres in total completed.
Slide 31: Exploration | Horsepaddock Well – Leonora province
Exploration | Horsepaddock Well – Leonora province Q3 March FY18 geophysical surveys at For personal use only Horsepaddock Well completed • Previous exploration to 2006 highlighted potential for a granite-intrusive type of deposit under ultramafics • Recent improvements in the depth penetration of I
Slide 32: Hedging Summary
Hedging Summary at 19 April 2018 For personal use only Financial Volume Price Delivery Announced Year ounces A$/oz (all monthly instalments) FY 18 13,500 $1,725 April to June 2018 12 April 2017 13,500 $1,730 April to June 2018 1 June 2017 FY 19 100,000 $1,750 July 2018 to June 2019 7 February 2018 F
Slide 33: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 For personal use only Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7
Slide 34: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 For personal use only Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 5,045 7.8 1,265 14,877
Slide 35: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results for Simberi and Pinjin is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Musta
Slide 36: Non-IFRS Measures and recent announcements
Non-IFRS Measures and recent announcements For personal use only We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS financial measures, including cash operating costs. We believe that these measures provide mean
Slide 37: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole T: +61 3 8660 1900 Company Secretary E: info@stbarbara.com.au St Barbara Board and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), Bob Vassie (MD&CEO), Tim Richards (GM Simberi),