St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Mining Forum 2013
33 slides from St. Barbara's conference presentation, Aug 7, 2013
Slide 1: Presentation to Diggers & Dealers Mining Forum
ASX Release / 7 August 2013 For personal use only Presentation to Diggers & Dealers Mining Forum Attached is a presentation to the 2013 Diggers & Dealers Mining Forum in Kalgoorlie, Western Australia, by Alistair Croll, Chief Operating Officer. Tim Lehany Managing Director and CEO St Barbara Limited
Slide 2: Diggers & Dealers Mining Forum 2013
ALISTAIR CROLL, CHIEF OPERATING OFFICER / 7 August 2013 For personal use only Diggers & Dealers Mining Forum 2013
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: Outline
Outline For personal use only ˃ St Barbara at a glance ˃ Start safe, stay safe ˃ Leonora Operations ˃ Gwalia & King of the Hills, WA ˃ Pacific Operations ˃ Simberi, Papua New Guinea ˃ Gold Ridge, Solomon Islands ˃ Exploration ˃ FY 14 Guidance ˃ What sets St Barbara apart ˃ Appendices 3/ Diggers & De
Slide 5: St Barbara at a glance
St Barbara at a glance For personal use only ˃ Australian based gold producer and explorer ˃ ASX Top 200[5] A$242 million market cap[5] ˃ Established operations Western Australia Papua New Guinea Solomon Islands ˃ Production FY12 339 koz FY13 365 koz FY14F Guidance 395 – 445 koz ˃ Balance sheet[1] C
Slide 6: Established operations, increasing production profile
Established operations, increasing production profile Reserves 5.6 Moz 1 For personal use only Resources 14.2 Moz 1 Simberi Simberi • Low strip open pit mine Leonora • FY14F production: Gold Ridge 85 - 100 koz • High grade underground • Near mine targets for Gwalia mine exploration • Gwalia FY14F pr
Slide 7: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate 14.8 12.5 ˃ Lowest annual TRIFR since 11.1 the measure was first adopted by St Barbara in 9.0 2009 6.0 ˃ TRIFR includes Pacific FY13 TRIFR 6.0 Operations from September 2012 FY 09 FY 10 FY 11 FY 12 FY 13 TRIFR 6/ Digg
Slide 8: Leonora Operations, Western Australia
Leonora Operations, Western Australia For personal use only 7/ Diggers & Dealers / August 2013
Slide 9: Gwalia Mine, Leonora, WA
Gwalia Mine, Leonora, WA For personal use only ˃ Mineral Resources extended to 1,840 mbs, open to north, south and at depth ˃ Indicative 9+ year mine life based on Ore Reserves[1] ˃ Ore mined in FY13 increased 5% to 696 kt [1] As at 30 June 2012 8/ Diggers & Dealers / August 2013
Slide 10: Gwalia Mine, Leonora, WA – FY14 guidance
Gwalia Mine, Leonora, WA FY14 guidance For personal use only ˃ production 180 – 195 koz ˃ capex A$45 – 50M ˃ cash operating cost A$720 – 750/oz ˃ all in cash cost less than A$1,100/oz Mined grade Annual production steady 8.8 200 8.2 175 6.3 150 5.7 125 100 75 50 25 0 FY10 FY11 FY12 FY13 FY 10 FY 11
Slide 11: King of the Hills Mine, Leonora, WA
King of the Hills Mine, Leonora, WA For personal use only ˃ Satellite mine to utilise available Gwalia mill capacity ˃ Consistent performer since production commenced May Gold Production 2011 ˃ Drilling program to test for 60 extension of deposit 40 ˃ FY14 guidance ˃ production 55 – 60 koz 20 ˃ cape
Slide 12: Pacific Operations
Pacific Operations For personal use only 11 / Diggers & Dealers / August 2013
Slide 13: Pacific Operations
Pacific Operations ˃ Pacific Operations did not achieve planned performance for FY13. For personal use only ˃ Two key issues impacted performance: ˃ delay in commissioning the Simberi oxide expansion, and ˃ lower than expected metallurgical recovery at Gold Ridge. ˃ The Company is not satisfied with
Slide 14: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only 13 / Diggers & Dealers / August 2013
Slide 15: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only Gold Production 16 ˃ Q4 disappointed, 14 rectification underway 12 ˃ Oxide expansion pending issue 10 of government permits 8 ˃ Expansion lifts production 6 capacity to 100 koz p.a. 4 ˃ Higher production is the key to 2 reducing unit cash co
Slide 16: Simberi Operations, Papua New Guinea – annual production
Simberi Operations, Papua New Guinea For personal use only Annual production ˃ FY14 guidance includes commissioning oxide 120 expansion 100 ˃ Plant ramps up to 3.5 Mtpa run 80 rate during Q2 60 ˃ Enhancement of mining fleet 40 ˃ Cash operating costs expected 20 to fall below A$1,000/oz during 0 FY14
Slide 17: Gold Ridge Operations, Solomon Islands
Gold Ridge Operations, Solomon Islands For personal use only 16 / Diggers & Dealers / August 2013
Slide 18: Gold Ridge Operations, Solomon Islands
Gold Ridge Operations, Solomon Islands For personal use only Clear improvement in gold production 20 ˃ Mining fleet replaced with new 18 “fit for purpose” equipment 16 14 ˃ Proper maintenance planning in 12 place 10 ˃ New heavy vehicle workshop 8 6 ˃ On-going mining & mill 4 improvements continue to
Slide 19: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands For personal use only Annual production ˃ FY14 guidance includes 100 improvements to plant front end 80 designed to lift tonnage by c. 25% 60 to plant nameplate 2.5 Mtpa from Q2 40 ˃ Mill recoveries improving from 20 better blending 0 ˃ Gold recovery c. 70% as currently F
Slide 20: Exploration: focus on adding to near mine reserves
Exploration: focus on adding to near mine reserves Exploration spend FY14F $20-25M For personal use only ≈ 40% in Australia Tabar Island Group ≈ 60% in Pacific Operations (inc. Simberi) > Active drilling programs Simberi • Ore bodies open • Near mine targets for exploration Gold Ridge • Sulphide pot
Slide 21: Exploration: Tabar Island Group, PNG
Exploration: Tabar Island Group, PNG For personal use only Simberi Island ˃ Exploration focused on identifying additional oxide resources ˃ Significant gold results from trenching and drilling at Botlu and Pigicow on near-mine prospects Tatau Island ˃ Significant gold results from exploring geochemi
Slide 22: Exploration: Gold Ridge, Solomon Islands
Exploration: Gold Ridge, Solomon Islands For personal use only Extending near mine resources Guadalcanal Island ˃ Drilling has commenced on the Charivunga zone at Gold Ridge mine, with encouraging gold results including GDC076: ˃ 13m @ 2.3 g/t Au from 48m; 15m @ 2.6 g/t Au from 215m; and 84m @ 2.0 g
Slide 23: FY14 Production Guidance
FY14 Production Guidance ˃ Gwalia mine remains the cornerstone asset: For personal use only ˃ Expected to generate significant cash in FY14 ˃ Even at lower gold prices, Gwalia generates sufficient cash to cover interest and corporate overhead ˃ The Pacific Operations, whilst taking longer and costin
Slide 24: Company is well capitalised
Company is well capitalised For personal use only Senior Secured Note issue for US$250 million completed March 2013: ˃ 5 year term ˃ Coupon 8.875% ˃ No performance covenants or early repayments on the notes ˃ All other bank debt facilities repaid (Red Kite gold loan remains) At 30 June 2013[1]: ˃ A$
Slide 25: What sets St Barbara apart
What sets St Barbara apart ˃ Established gold miner with producing assets in 3 countries For personal use only ˃ Growing production profile, with clear plans to reduce unit costs ˃ Large, long life reserve base with real upside potential ˃ Very prospective land position in the Pacific Rim ˃ Encourag
Slide 26: Questions
Questions For personal use only 25 / Diggers & Dealers / August 2013
Slide 27: Appendices
Appendices For personal use only 26 / Diggers & Dealers / August 2013
Slide 28: FY14 Guidance
FY14 Guidance For personal use only Gold production Cash operating cost Capex koz A$/oz A$M Gwalia 180 – 195 720 – 750 45 – 50 King of the Hills 55 – 60 1,040 – 1,090 12 – 15 Gold Ridge 75 – 90 1,100 – 1,190 14 – 18 Simberi 85 – 100 900 – 990 20 – 25 Total 395 – 445 880 – 940 91 – 108 Exploration ex
Slide 29: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only UK, 30% Private 8% Australia, 25% Unallocated / not analysed 8% USA, 27% Europe, 5% Institutions Asia, 3% 84% Other / not analysed, 10% Analysis and geographic spread of Top 100 Shareholders as at 15 July 2013 2
Slide 30: Wide broker coverage
Wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Argonaut Securities Troy Irvin M&G Investment Mgt 19% Baillieu Sophie Spartalis Van Eck Associates 8% Bell Potter Stephen Thomas Baker Steel Capital Managers 6% Canaccord Luke Smith Franklin Resources 6%
Slide 31: Competent Persons Statement
Competent Persons Statement For personal use only The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Phillip Uttley is a full-time emp
Slide 32: Non-IFRS Measures
Non-IFRS Measures 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 meaningful information to ass
Slide 33: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 32 / Diggers & Dealers / August 2013