St. Barbara Ltd. · ASX:SBM
St. Barbara — Melbourne Mining Club (May 2019)
36 slides from St. Barbara's conference presentation, May 30, 2019
Slide 1: Presentation to Melbourne Mining Club
ASX Release / 30 May 2019 For personal use only Presentation to Melbourne Mining Club Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Melbourne Mining Club today. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1959 ASX: SBM Media Relations Mr
Slide 2: Bob Vassie, MD & CEO, St Barbara Ltd
Bob Vassie, MD & CEO, St Barbara Ltd Melbourne Mining Club, 30 May 2019 For personal use only
Slide 3: For personal use only
For personal use only
Slide 4: For personal use only
For personal use only Photo credit: ABC Goldfields-Esperance
Slide 5: Australia's Resources Exports and Commodity Prices
Australia’s Resources Exports and Commodity Prices For personal use only Price Investment Production phase phase phase 250 150 200 120 A$ billion 150 90 Index 100 60 50 30 0 0 Export value Metal price index Energy Price Index Sources: Mineral Council of Australia; World Bank; Australian Bureau of St
Slide 6: Global Gold Reserves and 2017 Global Gold Production
Global Gold Reserves and 2017 Global Gold Production For personal use only Global Gold Reserves 2017 Gold Production Other Countries 34% 40% Australia 18% 10% South Africa 11% 5% Russia 10% 8% United States 6% 8% Indonesia 5% 3% Brazil 4% 3% Peru 4% 5% Canada 4% 6% China 4% 14% Sources: Citi; United
Slide 7: Australian Gold Exploration Expenditure
Australian Gold Exploration Expenditure For personal use only 900 90% 800 80% 700 70% 600 60% A$ million 500 50% 400 40% 300 30% 200 20% 100 10% 0 0% Financial year Exploration expenditure (LHS) Gold share (RHS) Sources: Mineral Council of Australia; Australian Bureau of Statistics, CAT No. 8412 “Mi
Slide 8: Australia as an Investment Destination
For personal use only Australia as an Investment Destination Resource Value(2) (US$bn) 2007 1,735 Australia 2017 3,208 2007 1,338 Canada 2017 596 2007 594 USA 2017 623 2007 284 Mexico 2017 471 2007 422 Peru 2017 814 2007 1,127 Chile 2017 1,325 Persistently Attractive 2007 122 Persistently Unattracti
Slide 9: Relative Value of ASX and TSX Gold Miners
Relative Value of ASX and TSX Gold Miners For personal use only 7.2x 7.0x 6.3x 6.2x 5.6x 5.1x 4.2x 4.2x 2015 2016 2017 2018 ASX Average EV/EBITDA TSX Average EV/EBITDA Source: Citi; Factset; Mineral Council of Australia Presentation Notes: (1) ASX peers include Newcrest, Evolution, Northern Star, Sa
Slide 10: Simberi Mine, Papua New Guinea
For personal use only Simberi Mine, Papua New Guinea
Slide 11: Aerial rope conveyor, Simberi Operations
For personal use only Aerial rope conveyor, Simberi Operations
Slide 12: Gwalia, c. 1921
For personal use only Gwalia, c. 1921
Slide 13: State Hotel, Gwalia
For personal use only State Hotel, Gwalia
Slide 14: Leonora Operations, Western Australia
For personal use only Leonora Operations, Western Australia
Slide 15: Board of Directors, mile underground at Gwalia, October 2018
For personal use only Board of Directors, 1 mile underground at Gwalia, October 2018
Slide 16: Absorption chiller plant, Leonora Operations
For personal use only Absorption chiller plant, Leonora Operations
Slide 17: Paste Aggregate Fill Plant, Gwalia
For personal use only Paste Aggregate Fill Plant, 1420 mbs, Gwalia Photo credit: ABC Goldfields-Esperance
Slide 18: For personal use only
For personal use only
Slide 19: For personal use only
For personal use only
Slide 20: Moose River processing facility, Nova Scotia
For personal use only Nova Scotia Moose River processing facility
Slide 21: Transformational Acquisition, Consistent with our Strategy
Transformational Acquisition, Consistent with our Strategy "Stronger for Longer" For personal use only • Substantial, low cost production from an established mining jurisdiction Diversify production base • CY19 forecast production of 92 – 98 koz at an AISC of C$695 – 755/oz (A$740 – 803/oz)1,2, wi
Slide 22: Australian Gold Peer Comparison
Australian Gold Peer Comparison 1H FY19 NPAT and EV/Reserves For personal use only Bubble size = Bubble size = 1H19 gold production 1H19 gold production 7% $1,600 $1,400 1H FY19 NPAT ÷ Market Cap. (%) 6% SBM (Pro forma) NST $1,200 5% EV/Reserves (A$/oz) SBM $1,000 4% EVN $800 SAR RRL 3% RRL $600 OGC
Slide 23: Australia's Goods Exports
Australia’s Goods Exports For personal use only Australia’s Goods Exports in 2017-18 Iron ore Coal Natural gas Gold Aluminium Copper Beef Crude oil Wheat Other meat Wool 0 10 20 30 40 50 60 70 Export value, A$ billion Sources: Mineral Council of Australia; Australian Bureau of Statistics, CAT No. 53
Slide 24: Mining Engineering Pipeline is Rapidly Declining
Mining Engineering Pipeline is Rapidly Declining MTEC mining engineering: enrolments and graduates For personal use only 350 300 292 283 279 262 250 234 232 237 215 Number of students 214 203 206 198 199 200 171 156 145 150 136 127 124 125 101 105 104 107 100 85 78 72 66 67 68 55 53 50 0 2004 2005 2
Slide 25: Perceptions of Young Australians
For personal use only Perceptions of Young Australians “Just lack of exposure. I mean we are in a big city, there are a couple mines near here, but they aren't very active and the big mines are all in rural areas like WA or South Australia, so I mean it's a lack of exposure, so we might not be able
Slide 26: Council for Diversity and Inclusion
• WGEA Employer Of Choice For Gender Equality since 2014 • 2018 Winner of AMMA’s Australian Women in Resources For personal use only Alliance Award for Excellence in Diversity • Representation of women on the board at 40% • Representation of women in leadership roles at 28% • Overall pay equity gap
Slide 27: For personal use only
For personal use only
Slide 28: Bob Vassie address to Melbourne Mining Club May 2019
Bob Vassie address to Melbourne Mining Club 30 May 2019 As the presentation slides to this event are not self-evident, the following notes of Bob Vassie’s address were provided to media attending the event. Introduction For personal use only I’d like to thank the Melbourne Mining Club for inviting m
Slide 29: Our industry
Our industry Being on the board of the Minerals Council of Australia (MCA) I have access to good information. I am continually annoyed at the repeated reference in some circles, including some politicians and media, to the mining boom being over and the need to look to some new information economy f
Slide 30: For personal use only
of the quite dramatic recovery in our sector beginning from my short time in gold from only five years ago. Hence, we’ve seen Australian companies begin to look offshore, where we can hopefully leverage our scrip, but as always, there’s risk. This stems from working in new and unfamiliar jurisdictio
Slide 31: For personal use only
because Gwalia is not just Australia’s second deepest mine and the deepest trucking mine in the world, it is also Australia’s oldest operating mine. Now I want to talk about something which is very St Barbara – the interaction between the challenges of depth and the lessons of our history. For perso
Slide 32: For personal use only
Typical of innovations, the more you study them the more you find out about the cost of mitigating the associated risks. Capital estimates eventually doubled and the construction impact on existing production was significant. Ultimately, a non-optimised trucking case (meaning 1.1 Mtpa) returned the
Slide 33: For personal use only
• Then there are the others that are more investment relationships, all focussed on gold. We have sought to find good ground being operated by efficient junior companies and, where a JV earn in is not immediately possible, take an investment position. We have four such relationships. • One is in her
Slide 34: For personal use only
have to do that in two goes, and that we would have to accept that we would likely dilute our existing All-In Sustaining Cost (ASIC) margin position. I’m excited about this acquisition because Atlantic’s bottom quartile AISC production makes it a margin accretive, transactable asset with a strong gr
Slide 35: For personal use only
Relative valuation (who gets what slice of the combined pie) and social issues (who gets what job) abound. Sometimes a social issue is disguised as a valuation issue, or the other way around. Not just talking about St Barbara here. Imagine starting marriage discussions with a prospective partner by
Slide 36: Resources create value
Resources create value Finally, another people opportunity. When I had global resource development roles in Rio Tinto I learned from some very impressive people about how the resource creates value. Sounds simple, doesn’t it? Well, it is not simple and more importantly, many resource business leader