St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Mining Forum 2018
45 slides from St. Barbara's conference presentation, Aug 6, 2018
Slide 1: Presentation to Diggers and Dealers Mining Forum
ASX Release / 6 August 2018 Presentation to Diggers and Dealers Mining Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1959
Slide 2: Diggers & Dealers Mining Forum
BOB VASSIE, MANAGING DIRECTOR & CEO / 6-8 August 2018 Diggers & Dealers Mining Forum
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents • Overview • Safety • Highlights • Operations & Growth • Exploration • Strategy • Conclusion Gwalia mine - June 2018 3/ Diggers & Dealers Mining Forum – 6-8 August 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Papua Simberi Commodity Gold (Au) New Guinea Market cap2 A$2.2B @ A$4.17/sh Shares2 521 M Liquidity5 3.2 M/day (0.6%) H1 FY18 EPS6 A$0.21 H1 FY18 Dividend A$0.04 Australia Leonora Cash and cash deposits7 A$344 M (Gwalia mine) Debt Nil Ore
Slide 6: St Barbara Safety Focus
St Barbara Safety Focus Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.4 2.6 2.1 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 FY18 FY18 FY18 FY18 • TRIFR corresponds to 9 low range injuries in last 12 mths • Corresponding LTIFR (lost time/ ’serious’ injury frequency rate) of 0.5 to 30 J
Slide 7: Strong margins & liquidity, actively growing, well positioned
Strong margins & liquidity, actively growing, well positioned Operational •Record FY18 production 403 koz @ record low AISC1 of A$891/oz excellence •Cornerstone Gwalia Mine with Life of Mine Plan to FY31 •Simberi mine life extension to FY21 Financial •EBITDA margin of 49%2 performance •A$870/oz cash
Slide 8: Balance Sheet
Balance Sheet Cash and cash deposits at FY18 of A$344M , no debt1 A$M Cash, cash deposits and debt 400 344 300 262 216 116 199 Cash deposits 200 161 137 79 77 100 228 Cash 0 -1 -100 Debt -200 -226 -300 -340 -347 -400 FY14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 FY18 FY18 FY18 FY18 1. Amounts rounded to nearest $
Slide 9: Main current projects - timeline
Main current projects - timeline FY18 FY19 FY19 Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 Gwalia 2600 mbs hole drilling analysis and further drilling Gwalia 3D Targe
Slide 10: Gwalia production year on year
Gwalia production year on year Mined Grade 12.5 (g/t Au) 10.7 10.5 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 Production 267 265 268 260 (koz) 248 245 214 AISC 185 183 (A$/oz) 950 940 131 841 802 783 785 109 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Slide 11: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/ya-GEzscdCY 10 / Diggers & Dealers Mining Forum – 6-8 August 2018
Slide 12: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Gwalia Extension Project (GEP) consists of two main • Raise bore activities progressing to schedule with components, a ventilation upgrade and paste second surface shaft pilot hole complete aggregate fill (PAF)1 • Plan now anticipates some concurrent r
Slide 13: Gwalia Mass Extraction – PFS (Original)
Gwalia Mass Extraction – PFS (Original) • Pre-feasibility Study announced February 2018 • Comprises selective “island pillar” mining and hydraulic hoisting • Supports mine life to FY31 12 / Diggers & Dealers Mining Forum – 6-8 August 2018 For details refer to ASX release 26 July 2018 ‘Quarterly Repo
Slide 14: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) • Feasibility Study considering alternative 3- stage crushing underground 13 / Diggers & Dealers Mining Forum – 6-8 August 2018 For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 15: Exploration | Gwalia Deeps, Seismic and 2600 mbs targets
Exploration | Gwalia Deeps, Seismic and 2600 mbs targets FY19 2600mbs Drilling • 2,600 mbs hole completed in July 2018 intersecting four mineralised zones • Confirms Gwalia ore lodes are continuous to at least 2,700 mbs 14 / Diggers & Dealers Mining Forum – 6-8 August 2018 For full explanation and r
Slide 16: Exploration | Gwalia Deeps, Seismic and 2600 mbs targets
Exploration | Gwalia Deeps, Seismic and 2600 mbs targets Gwalia Seismic Exploration • Two hole drill program completed in Q4 June FY18 showed shearing and alteration similar to the Gwalia deposit • Downhole surveys planned in Q1 Sep FY19 for future drill targeting • Further seismic testing planned i
Slide 17: Simberi production year on year
Simberi production year on year AISC1 (A$/oz) New Life of mine plan 2,300 • Recent work on Simberi’s life of mine plan has 1,464 1,293 1,325 extended oxide mine life to the end of FY21 1,187 1,068 • Mining continues through FY19 and FY20 • Low grade stockpiles accumulated over FY18 to 135 FY20 to be
Slide 18: Simberi Strategic Review
Simberi Strategic Review • Decision in November 2016 to retain Simberi operating assets was the right one • Cash contribution1 since the decision to retain the asset is A$126 million Quarterly cash contribution from Simberi A$M Decision to retain $82 M FY18 24 24 23 23 19 20 12 12 10 9 8 5 5 2 -4 $1
Slide 19: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 Sorowar Pit Best results include: SORDGC001 – 28m @ 1.37g/t Au from 114m SORDGC002 – 19m @ 4.96g/t Au from 82m SORDGC007 – 20m @ 8.42g/t Au from 60m; and 15m @ 7.08g/t Au from 89m All intercepts downhole, for full explanation and results refer to ASX r
Slide 20: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 One of four sections, remaining sections in appendix. For full explanation and results refer to ASX 19 / Diggers & Dealers Mining Forum – 6-8 August 2018 release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 21: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.2 Moz Sulphide Resource @ 1.8 g/t Au Simberi Sulphide PFS Capex US$100 million • Focused exploration for sulphide ore Annual Production 130,000 ounces over 8 years underway to improve project economics (1
Slide 22: Exploration | FY19 Guidance - A$21 to A$27 million
Exploration | FY19 Guidance - A$21 to A$27 million A$9 – A$12 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$8 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry • Tatau Sulphides In additio
Slide 23: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 22 / Diggers & Dealers Mining Forum – 6-8 August 2018
Slide 24: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Australia Greater Catalyst Gwalia Metals Peel 16% Mining Gwalia Tower Gwalia 16%. GMX Hill Extension Gwalia Mine Prodigy Duketon Gold2 Mining 10% 12% Inorganic growth Evaluating exploration, project, development and op
Slide 25: Strategy for the next 5 years – “stronger for longer”
Strategy for the next 5 years – “stronger for longer” 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 all phases of the pipe
Slide 26: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in 2014-15, 2015-16, 2016-17 and 2017-18 and the only mining company to be certified in 2017-18. • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards • 2018 Winner of AMMA’s Australian Women
Slide 27: Shooting Stars for Leonora
Shooting Stars for Leonora Shooting Stars – education through netball for Aboriginal girls Our commitment • St Barbara has committed $100,000 per year for three years, joining with Saracen and others to support the initiative • Aim of the program is to increase Leonora District High School Aborigina
Slide 28: Conclusion
Conclusion • Yet another record year – production, costs and cash flow • Outlook for production, cash flow and cash reserves remains positive • Paying fully franked dividends • Near-term growth options at current operations: • Gwalia extension project & mass extraction • Simberi sulphide exploration
Slide 29: Questions?
Questions? Gwalia - June 2018 28 / Diggers & Dealers Mining Forum – 6-8 August 2018
Slide 30: Appendices
Appendices Gwalia - June 2018 29 / Diggers & Dealers Mining Forum – 6-8 August 2018
Slide 31: Exploration | Gwalia Deeps, Seismic and 2600 mbs targets
Exploration | Gwalia Deeps, Seismic and 2600 mbs targets Gwalia deep drilling objectives • Further drilling 2,000 to 2,200 mbs seeking to extend Indicated Resource • Additional targets identified from 3D seismic model 30 / Diggers & Dealers Mining Forum – 6-8 August 2018 For full explanation and res
Slide 32: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic 31 / Diggers & Dealers Mining Forum – 6-8 August 2018 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’
Slide 33: Gwalia Mining Strategy
Gwalia Mining Strategy Mining method Dual Lift Stoping in SWB mining sequence manages the hanging wall • Long hole stoping with fill • North & South access on two FY11 dual lift levels gives 4 mining 2 areas • Greater percentage of free 1 5 bogging increases productivity of each stope 4 • Sill drive
Slide 34: Gwalia Production Profile – ‘Centre out’ method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many open stopes of lode too close together = ‘Centre out’ method Historical stopes (light blue)
Slide 35: Gwalia Mass Extraction PFS – Alternative Flow Sheet
Gwalia Mass Extraction PFS – Alternative Flow Sheet 34 / Diggers & Dealers Mining Forum – 6-8 August 2018 For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 36: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 35 / Diggers & Dealers Mining Forum – 6-8 August 2018 For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 37: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 36 / Diggers & Dealers Mining Forum – 6-8 August 2018 For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 38: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 37 / Diggers & Dealers Mining Forum – 6-8 August 2018 For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 39: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report and Corporate Governance & Economic Performance Governance Statement • Core values and Code of Conduct • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Manage f
Slide 40: Reserves and Resources as at 30 June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves Gwalia Reserves (Moz) 4.3 4.0 • Increased by net 325 koz after depletion 1.4 Simberi Sulphide 1.3 0.5 Simberi Oxide • Lower average grade 8.3 to 7.8 g/t Au 0.6 0.3 0.3 Tower Hill • Cost of discovery at depth in FY17 A$23/oz 2.1 Gwalia 1.8 Gwalia
Slide 41: Gwalia – lowest expected mined depth
Gwalia – lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 Mineral Resources 1380 Ore Reserves 1420 1500 1500 1600 1540 1580 1620 1700 1800 1740 1780 1820 2000 2200 2140 Ore Rese
Slide 42: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves 2.5 0.27 Moz Production 2.0 0.21 Moz 0.27 Moz Ore Reserves 0.25 Moz At end of year 1.5 (+ production during year) (Moz) 1.0 1.9 Moz 2.1 Moz Reserves 1.6 Moz 1.8 Moz 0.5 0.0 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 0 Maximum Depth 500 of Ore Reserves (mbs) 1000 1
Slide 43: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 44: Non-IFRS Measures
Non-IFRS Measures 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 assist management, invest
Slide 45: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Gwalia Board visit November 2017, Underground, L to R: Ashleigh Smyth - Graduate Geologist, Kerry Gleeson – Director, 44 / Diggers & Dealers Mining Forum –