St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2018
46 slides from St. Barbara's conference presentation, Sep 24, 2018
Slide 1: Presentation to 2018 Denver Gold Forum
ASX Release / 24 September 2018 Presentation to 2018 Denver Gold Forum Garth Campbell-Cowan, Chief Financial Officer, will present to the Denver Gold Forum in Colorado, USA, on Monday 24 September 2018. A webcast of the presentation will be available on the Denver Gold Forum website at www.denvergol
Slide 2: Denver Gold Forum 2018
GARTH CAMPBELL-COWAN, CFO 23-26 September 2018 Denver Gold Forum 2018 Ticker ASX: SBM ADR STBMY (5 ORD = 1 ADR)
Slide 3: Forward Statements
Forward Statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained in The Company estimates its Ore Reserves and Mineral Resources in accordance with The Australasian this presentation is for information purposes only. This presentation is not an off
Slide 4: Contents
Contents • Overview • Safety • FY18 Financial Highlights • Balance Sheet • Operations & Growth Projects o Gwalia o Simberi • Exploration • Strategy • Conclusion Gwalia mine 3/ Denver Gold Forum 23 - 26 September 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Papua Simberi Commodity Gold (Au) New Guinea Market cap1 A$2.0B @ A$3.80/sh (US$1.4B) Shares1 521 M Liquidity2 3.7 M/day (0.7%) FY18 EPS3 A$0.39 (US$0.30) FY18 Dividend A$0.12 (US$0.09) Australia Leonora Cash and term deposits4 A$343 M (US
Slide 6: St Barbara Safety Focus
St Barbara Safety Focus Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 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 June 2018 compares with Pump isolation a
Slide 7: FY18 Financial Highlights
FY18 Financial Highlights Operational •Record annual production and record low AISC1 excellence •Cornerstone Gwalia mine with Life of Mine Plan to FY31 •Simberi mine life extension to FY21 •4th consecutive record profit, NPAT of A$227 M (US$176 M) Financial •EBITDA margin of 51%1 performance •A$842/
Slide 8: FY18 Key Financial Metrics
FY18 Key Financial Metrics 1,2 51 EBITDA margin (%) 50 47 1,2 39 EPS (basic, A$ cents) 32 26 37 2 Return on Equity (%) 44 49 12 Dividend per share 6 (A$ cents) 3.1 FY18 2,3 Dividend yield (%) 2.1 FY17 FY16 1. Underlying, refer corresponding slide in appendix 2. Non-IFRS measure, refer corresponding
Slide 9: Australian Gold Peer Comparison – NPAT and FCF
Australian Gold Peer Comparison – NPAT1 and FCF2 • Gwalia and Simberi both delivered strong contributions to FY18 profitability • St Barbara ranks favourably with Australian gold peers 14% 14% Bubble size = Bubble size = FY18 gold production 12% SBM FY18 gold production 12% SBM NPAT vs Market Cap.1
Slide 10: Balance Sheet
Balance Sheet US$M 300 254 Term deposits 200 86 102 124 100 75 59 168 Cash 0 -100 Debt -169 -200 -268 -300 -325 -400 FY14 FY15 FY16 FY17 FY18 Cash and term deposits at FY18 of A$343 M1 (US$254 M) , no debt Hedging in place: • FY19: 76 koz forward contracts at A$1,750/oz (US$ 1,313/oz) between Octobe
Slide 11: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile 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 7.5 g/t Au June 2018 Production 267 265 268 260 (koz) 248 245 214 AISC 185 183 (US$/oz) 863 131 109 700 713 570 592 622 83 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY1
Slide 12: Gwalia Animation
Gwalia Animation Animation of Gwalia underground mine available at https://youtu.be/xnnxRwKy6gk 11 / Denver Gold Forum 23 - 26 September 2018
Slide 13: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists of two main • Raise bore activities progressing to schedule, first shaft components, a ventilation upgrade and paste hole complete and second surface shaft underway aggregate fill (PAF)1 • Paste aggregate fill (P
Slide 14: Gwalia Mass Extraction – PFS
Gwalia Mass Extraction – PFS • Pre-feasibility Study announced Feb 2018 • Comprises selective “island pillar” mining and hydraulic hoisting • Utilises increased ventilation from GEP • Supports mine life to FY31 • Feasibility study now due March 2019, expanded to consider alternative flow sheets 13 /
Slide 15: Exploration – Gwalia Deeps, Seismic and 2600 mbs Targets
Exploration – Gwalia Deeps, Seismic and 2600 mbs Targets Gwalia Deep Drilling • Hole to 2,600mbs completed in Q4 FY18 • Daughter hole targeting step out at 2,600mbs Gwalia Seismic Exploration • Drill program completed in Q4 June FY18 showed shearing and alteration similar to the Gwalia deposit • Dow
Slide 16: Simberi Production and Cost Profile
Simberi Production and Cost Profile AISC1 (US$/oz) 2,111 1,218 941 895 828 994 Production 135 (koz) 115 116 110 105 80 44 FY19F2 Simberi processing plant, June 2018 – photo by Anna Mote FY14 FY15 FY16 FY17 FY18 1. AISC is a non IFRS measure, refer corresponding slide in Appendix. FX conversion per n
Slide 17: Simberi Sulphide – Potential Long Life Mine Extension
Simberi Sulphide – Potential Long Life Mine Extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at
Slide 18: Exploration – Sorowar Pit, Simberi Island
Exploration – Sorowar Pit, Simberi Island For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 17 / Denver Gold Forum 23 - 26 September 2018
Slide 19: Mine Life Extension
Mine Life Extension Life of Mine Extensions Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (Oxide) FY16 2018 FY17 2020 FY18 2021 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources 18 / Denver Gold Forum 23 - 26 September 2018
Slide 20: Exploration – FY19 Guidance – US$16 to US$20 million
Exploration – FY19 Guidance – US$16 to US$20 million US$7 – US$9 million Leonora • Gwalia Deep Drilling • Greater Gwalia Area & Seismic • Leonora Regional US$3 – US$4 million Pinjin WA • Aircore drilling of identified targets US$6 – US$8 million PNG • Simberi Oxides/Sulphides and Porphyry • Tatau Su
Slide 21: 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’ 20 / Denver Gold Forum 23 - 26 September 2018
Slide 22: 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 23: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Australia Greater Gwalia Catalyst Metals Peel Gwalia Mining GMX Tower 16% 18%. Hill Gwalia Gwalia Extension Mine Prodigy Duketon Gold2 Mining 10% 12% Inorganic growth Evaluating exploration, project, development and op
Slide 24: Conclusion
Conclusion • Record year again – production, costs, profit and cash flow • NPAT A$227 M (US$176 M) • A$0.12 cps (US$0.09) total FY18 dividends • A$343 M (US$254 M) cash at bank1, no debt • Mine life extended at both operations • Fully funded near-term growth options • Exploration focus – St Barbara
Slide 25: Questions?
Questions? Gwalia plant at sunrise 24 / Denver Gold Forum 23 - 26 September 2018
Slide 26: Appendices
Appendices Water sampling at Leonora 25 / Denver Gold Forum 23 - 26 September 2018
Slide 27: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Mar Year Final Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY18 FY191 St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 Year to 30 June Year to 30 June year is 1
Slide 28: 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 Gwalia 2600 mbs hole drilling analysis and further drilling Gwalia 3D Targets interpretation drilling an
Slide 29: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) • Feasibility Study considering alternative 3-stage crushing underground 28 / Denver Gold Forum 23 - 26 September 2018 For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’
Slide 30: Gwalia Deeps 1540 – 1580 Lode Schematic
Gwalia Deeps 1540 – 1580 Lode Schematic Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 29 / Denver Gold Forum 23 - 26 September 2018
Slide 31: Exploration – Sorowar Pit, Simberi Island
Exploration – Sorowar Pit, Simberi Island 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 release
Slide 32: Ore Reserves Summary as at 30 June 2018
Ore Reserves Summary as at 30 June 2018 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) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 33: Mineral Resources Summary as at 30 June 2018
Mineral Resources Summary as at 30 June 2018 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) 4,581 7.1 1,048 14,690 6.3 2,997 3,831 6.3 7
Slide 34: Reserves and Resources as at 30 June 2018
Reserves and Resources as at 30 June 2018 Ore Reserves 4.3 Gwalia Reserves and Resources 4.0 3.9 1.4 • Reduced by mining depletion 1.3 1.4 Simberi Sulphide 0.5 0.6 0.3 Simberi Oxide • Update to reserves and resources 0.3 0.3 0.3 following completion of GMX 2.1 1.9 Tower Hill 1.8 Feasibility Study Gw
Slide 35: 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 1200 1100 1220 Mineral Resources deepest mineralised intersection 1400 1300 Ore Reserves 1380 1420 1600 1500 1500 1540 1580 1620 1800 1700 1740
Slide 36: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves 2.5 0.27 Moz 2.0 0.21 Moz 0.27 Moz 0.27 Moz Production Ore Reserves 0.25 Moz At end of year 1.5 (+ production during year) (Moz) 1.0 1.9 Moz 2.1 Moz 1.9 Moz Reserves 1.6 Moz 1.8 Moz 0.5 0.0 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 Maximum Depth 500
Slide 37: 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 38: 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 Company Diversity Programs and Performance, Women in Resources National Awards • 2018 Winner of Australian Women
Slide 39: American Depositary Receipt Information (ADR: STBMY)
American Depositary Receipt Information (ADR: STBMY) American Depositary Receipt Information (ADR: STBMY) Ticker STBMY • St Barbara established an American Depositary code Receipt (ADR) programme in 1994 with The Bank Type Sponsored Level 1 ADR of New York (now BNY Mellon) as depositary. CUSIP 85227
Slide 40: Institutional Share Register
Institutional Share Register Not analysed 7% USA 35% Non Institutional Institutional 89% 4% Australia 34% UK 11% Other 13% Not analysed 7% Data as at 14 August 2018 39 / Denver Gold Forum 23 - 26 September 2018
Slide 41: Substantial Shareholders and Broker Coverage
Substantial Shareholders and Broker Coverage Substantial Shareholders 1 Broker Research Coverage Van Eck Associates Corp. 12.3% Argonaut James Wilson Vinva Investment Mgmt. 5.2% Canaccord Reg Spencer Citi Trent Allen Institutional Shareholders 2 89% Credit Suisse Mike Slifirski Shares on issue 521M
Slide 42: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years international mining industry experience and has 18 years Mr Netscher is an
Slide 43: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with over 30 Mr Campbell-Cowan is a Chartered Mr Co
Slide 44: 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 45: 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 46: 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 St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp