41 slides from St. Barbara's earnings presentation, Jul 20, 2016
Slide 1: Presentation on Q4 June 2016 Quarterly Report and audio webcast
ASX Release / 20 July 2016 For personal use only Presentation on Q4 June 2016 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q4 June 2016 Quarterly Report at 10:00 am Australian Eastern Standard Time (UTC + 10 hours) on
Slide 2: Q4 June 2016 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 20 July 2016 For personal use only Q4 June 2016 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 > Highlights For personal use only > Safety > Operations Results, FY17 Guidance > Exploration Results, FY17 Guidance > Finance – Cash & Debt > Conclusion > Appendices 3 / Q4 June 2016 Quarterly Presentation Pinjin project, WA
Slide 5: Highlights Q4 June 2016 & FY16
Highlights Q4 June 2016 & FY16 ˃ Record annual gold production and guidance exceeded For personal use only ˃ Record safety performance: TRIFR2 of 2.1 ˃ Best performing company in the ASX200 FY16 (↑418%) ˃ Gwalia ˃ truck haulage with additional ventilation identified as long term materials movement s
Slide 6: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate2 Safety performance 9.0 ˃ 30 June 2016 TRIFR1 a record low of 2.1 6.0 ˃ Improved result is due to ongoing program of systems and 5.0 standards development, rigorous 4.1 4.1 internal and external audits 3.4 2.7 2.1 FY
Slide 7: Record consolidated gold production FY16
Record consolidated gold production FY16 AISC For personal use only (A$/oz) 979 992 947 960 FY16 863 ˃ Consolidated company production of FY16 average A$933/oz 386 koz (FY15: 377 koz, FY16 guidance 369 to 384 koz) Production (koz) ˃ AISC1 A$933/oz (FY15: A$1,007/oz) 111 99 Q4 June FY16 Quarter 92 92
Slide 8: Gwalia: production increasing year on year
Gwalia: production increasing year on year For personal use only Mined Grade 9.3 (g/t Au) 8.8 8.9 8.2 8.4 6.9 6.3 5.7 267 248 Production 214 185 183 131 109 83 Gwalia chiller plant FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 koz June 2015 Reserve grade 9.4 g/t Au, refer ASX announcement released
Slide 9: Gwalia: FY16 gold production a record, up 8%
Gwalia: FY16 gold production a record, up 8% FY16 guidance exceeded AISC (A$/oz) For personal use only 860 846 836 770 692 FY16 average A$783/oz FY16: Mined Grade 10.2 (g/t Au) 9.7 ˃ Record 267 koz produced in FY16 9.3 (FY15: 248 koz, FY16 average 9.3 g/t Au FY16 guidance: 260-265 koz) 8.6 7.9 ˃ AIS
Slide 10: Gwalia guidance FY17
Gwalia guidance FY17 ˃ Production of 245-265 koz Guidance influenced by: For personal use only ˃ AISC of A$850 to A$910 per ounce ˃ ventilation is a constraint on trucking activity during peak periods of the ˃ Sustaining capex: A$30 to A$35M mining cycle, until the proposed ˃ Growth capex: A$10 to A
Slide 11: Simberi: Record FY16 gold production up 39%
Simberi: Record FY16 gold production up 39% For personal use only 1,404 1,319 FY16: AISC (A$/oz) 1,252 1,266 1,149 ˃ Record production 110,286 oz FY16 average AISC A$1,293/oz (FY15: 79,568 oz) ˃ AISC1 A$1,293 /oz (FY15: A$1,464 /oz) Production (koz) ˃ AISC impacted by capex in Q2 and Q3 Q4 June 2016
Slide 12: Simberi Sulphide PFS & Strategic Review
Simberi Sulphide PFS & Strategic Review ˃ Guidance explanation? For personal use only ˃ Impairment? ˃ Strategic review slide 21 ˃ Quarterly graphs? ˃ Sulphide Project - need to assess ˃ Strategic review announced Feb additional investment against 2016 to evaluate Sulphide Project potential eight yea
Slide 13: Exploration Results and FY17 Exploration Guidance
Exploration Results and FY17 Exploration Guidance For personal use only Pinjin, May 2016 12 / Q4 June 2016 Quarterly Presentation
Slide 14: Gwalia exploration program - Summary
Gwalia exploration program - Summary Q4 June 2016 Results: FY17: For personal use only > 2200 deep drilling > Continued deep drilling & > Southern Extension Northern Extension > Northern Extension > Seismic Reflective campaign Figure 1.0 13 / Q4 June 2016 Quarterly Presentation 1. For full explanati
Slide 15: Gwalia Deeps Exploration
Gwalia Deeps Exploration For personal use only Figure 2.3 1. For full explanation and results refer to ASX release 19 July 2016 ‘Quarterly Report June 2016’ 14 / Q4 June 2016 Quarterly Presentation
Slide 16: Gwalia deep drilling results – 2200 and Southern Extension
Gwalia deep drilling results – 2200 and Southern Extension For personal use only New intercepts at 2200 mbs1 ˃ The deepest intersection of the Gwalia mine sequence ˃ 200 m deeper vertically and 430 m further down-plunge ˃ Passed through over 70m of mineralised Mine Sequence. Intercepts from GWD18: >
Slide 17: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA Pinjin For personal use only > The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 > 288 holes have been drilled to date for a total of 14,385m with 7 positive intersections. > Most significant result1: PJAC
Slide 18: Exploration FY17 Guidance
Exploration FY17 Guidance For personal use only Guidance A$18 to A$22 million ˃ A$10- A$12 million Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia Seismic ˃ A$8- A$10 million – 30% Pinjin WA, 70% PNG ˃ Pinjin – complete drilling ˃ Simberi Oxides – near mine ˃ Tatau Copper- Gold ˃
Slide 19: Cash and Debt FY15 and FY16
Cash and Debt FY15 and FY16 Debt, Cash Balance & Contribution from Operations For personal use only (FY15 to present) 420 AUD Debt2,3 390 367 358 355 325 325 325 299 USD Debt2 271 249 248 229 216 189 168 172 128 108 115 114 Cash balance1 100 77 137 70 56 80 71 70 69 69 Cash Contribution4 57 10 32 FY
Slide 20: Conclusion
Conclusion ˃ Record annual gold production and guidance exceeded at Gwalia & Simberi For personal use only ˃ Continued cash generation and debt reduction ˃ Record safety performance ˃ Gwalia FY17: ˃ Guidance 245-265 koz ˃ Materials Handling – trucking + new ventilation shafts selected, detailed stud
Slide 21: Appendices
Appendices For personal use only Simberi, March 2016 20 / Q4 June 2016 Quarterly Presentation
Slide 22: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue ˃ FY16 387 koz For personal use only 495 M ˃ Market Cap2 A$1,748 M @ AISC4 A$933/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY17F3 355 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,030/oz ˃ A
Slide 23: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 FY17 For personal use only Production Gwalia oz 248,142 72,388 63,533 66,147 65,098 267,166 260 to 265 koz3 245 to 265 koz King
Slide 24: St Barbara share price
St Barbara share price ASX:SBM For personal use only $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 31 Mar 16 30 Jun 16 Source: IRESS to 18 July 2016 23 / Q4 June 2016 Quarterly Presentation
Slide 25: St Barbara vs Global Gold Mines – Q3 US$ AISC Free Cash Flow
St Barbara vs Global Gold Mines – Q3 US$ AISC Free Cash Flow March 2016 Quarter (Q3 FY16) Free Cash Flow1 Petra Database of 183 Gold Mines2 For personal use only US$ Millions 240 190 140 90 Gwalia 40 Simberi -10 1. US$1300-US$ AISC x March 2016 quarter production 2. Excludes mines where no AISC decl
Slide 26: St Barbara vs Global Gold Miners
St Barbara vs Global Gold Miners Macquarie – FCF Yield – 37 gold companies FCF Yield For personal use only (FCF per share as % of share price) 30% 25% 20% 15% St Barbara 10% Evolution Northern Star 5% 0% -5% -10% Source: Adapted from Macquarie (with permission) 18 July 2016 25 / Q4 June 2016 Quarter
Slide 27: ‘Three moving parts’
‘Three moving parts’ For personal use only Gwalia Decide: Q2 Dec 2016 ventilation materials Start: ≈Q3 Mar 2017 only handling Term: ≈12-24 mths Simberi Decide: Q3 Mar 2017 Start: ≈Q1 Sep 2017 invest divest sulphide Term: ≈24 mths Decide: Q4 Jun 2017 payout cash US$ Notes Mature: April 2018 at 18 Jul
Slide 28: Gwalia 2200 Deeps & Southern Extension
Gwalia 2200 Deeps & Southern Extension For personal use only Figure 2.1 1. For full explanation and results refer to ASX release 19 July 2016 ‘Quarterly Report June 2016’ 27 / Q4 June 2016 Quarterly Presentation
Slide 29: Gwalia exploration – Northern Extension drilling target
Gwalia exploration – Northern Extension drilling target For personal use only Northern Extension > Targeting prospective zones higher in the mine sequence. Intersections include1: > UGD2422 2.4m @ 3.3 g/t Au from 1,566 mbs > UGD2423 0.9m @ 43.7 g/t Au from 1,643 mbs > UGD2425 3.1m @ 3.2 g/t Au from
Slide 30: Gwalia – New Seismic reflective exploration campaign
Gwalia – New Seismic reflective exploration campaign ˃ Use sound waves reflecting off mineral ˃ Q1 Gwalia, Q2 ‘Greater Gwalia’ For personal use only formations to explore. ˃ Leading edge use of sensors down deep ˃ Used successfully by other WA Gold drill holes miners Figure 4.0 29 / Q4 June 2016 Qua
Slide 31: Exploration: Simberi Island Group – Results and Q1 FY17
Exploration: Simberi Island Group – Results and Q1 FY17 For personal use only Bekou South (Simberi): > Q4 Drilling of trench targets1. > SDH362 8m @ 5.9 g/t Au from 12m, including: 2m @ 17.9 g/t Au from 17m West Simberi – trenching Tatau > Preparing for drilling of anomaly near historical Copper- Go
Slide 32: Gwalia - materials handling update
Gwalia - materials handling update ˃ Truck haulage with additional For personal use only ventilation has been identified as the preferred solution1 ˃ Studies commenced in Q1 Sep 2016 in parallel with deep drill program to ensure a materials handling solution available to support anticipated new reso
Slide 33: Gwalia production increased 8% in FY16
Gwalia production increased 8% in FY16 Underground Storage For personal use only At critical times shorter waste removal turnaround time gives greater availability of trucks for taking ore to surface Ore passes Allows bogger to work constantly, independent of ore trucks, removes ore from fired stope
Slide 34: Simberi FY14, FY15 and FY16
Simberi FY14, FY15 and FY16 SIMBERI MINE OUTPUT SIMBERI GOLD PRODUCTION For personal use only 9,899 kt 110 koz 80 koz 6,293 kt 4,151 kt 44 koz FY14 FY15 FY16 FY14 FY15 FY16 SIMBERI MILL THROUGHPUT AISC1 (A$/oz) 3,315 kt 2,300 2,670 kt 1,464 1,293 1,713 kt FY14 FY15 FY16 FY14 FY15 FY16 33 / Q4 June 2
Slide 35: Cash and debt
Cash and debt June 14 June 15 June 16 18 July For personal use only A$M A$M A$M 2016 A$M Cash balance 1 79 77 137 ≈90 Interest bearing debt FX 2 0.9430 0.7713 0.7452 0.7579 ˃ US Senior Secured Notes US$ 250 196 168 128 ˃ Red Kite US$ 75 75 0 0 ˃ Total USD$ debt US$ 325 271 168 128 ˃ A$ equivalent3 A
Slide 36: Debt and hedging at June 2016
Debt and hedging at 30 June 2016 US Senior Secured Notes For personal use only ˃ US$250 million issued March 2013, US$168 million balance at 30 Jun 2016 ˃ Additional US$40 million repurchased 18 July 2016, balance remaining upon settlement (20 July 2016) is US$128 million ˃ 6 monthly interest paymen
Slide 37: Ore Reserves Summary as at June 2015
Ore Reserves Summary as at 30 June 2015 This summary is derived from the most recent Ore Reserves Statement as at 30 June 2015. The next Ore Reserves Statement is due for release in August 2016 For personal use only Project Proved Probable Total Tonnes (k) Au koz Tonnes (k) Au g/t koz Tonnes (k) Au
Slide 38: Mineral Resources Summary as at June 2015
Mineral Resources Summary as at 30 June 2015 This summary is derived from the most recent Mineral Resources Statement as at 30 June 2015. The next Mineral Resources Statement is due for release in August 2016 For personal use only Project Measured Indicated Inferred Total Tonnes Au koz Tonnes Au koz
Slide 39: 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 40: 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 41: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Garth Campbell-Cowan Company Secretary Chief Financial Officer T: +61 3 8660 1900 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), Bo