St. Barbara Ltd. · ASX:SBM
St. Barbara — H1 FY2015 Earnings Presentation
41 slides from St. Barbara's earnings presentation, Feb 25, 2015
Slide 1: Presentation on the December 2014 Half Year Financial Report
ASX Release / 25 February 2015 For personal use only Presentation on the December 2014 Half Year Financial Report Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the December 2014 Half Year Financial Report at 10.00 am Australian Eastern Daylight Time (UTC + 1
Slide 2: December 2014 Half Year Presentation
Bob Vassie, Managing Director & CEO / 25 February 2015 For personal use only December 2014 Half Year 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: Outline
Outline ˃ St Barbara Overview For personal use only ˃ Safety ˃ Operational Results ˃ Financial Results ˃ Leonora ˃ Simberi & Exploration ˃ Gold Ridge ˃ Conclusion ˃ Appendices Deep Drill Rig at Gwalia, 13 Feb 2015 3/ December 2014 Half Year Results / 25 February 2015
Slide 5: Overview of operations
Overview of operations Simberi Simberi For personal use only ˃ Open pit mine ˃ FY15F production: Leonora Gold Ridge 70-80 koz Solomon ˃ Target annualised ˃ Two underground mines: production 100 koz ˃ Gwalia Mine Islands ˃ Near mine targets for FY15F production: exploration 200-210 koz, estimated min
Slide 6: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate 12.5 Safety performance ˃ TRIFR1 of 4.7 at 31 Dec 2014 9.0 ˃ Continued good results for mixed jurisdiction underground / open 6.0 pit combination 4.9 4.7 ˃ Simberi recently had 887 days 4.1 LTI2 free3 ˃ TRIFR includes
Slide 7: Operations 1H FY15
Operations 1H FY15 For personal use only ˃ Leonora, Western Australia (Gwalia and King of the Hills mines) ˃ Gwalia record production in Q2 December 2014 ˃ King of the Hills anticipated to cease production Q4 June 2015 ˃ Simberi, Papua New Guinea ˃ Record production in Q2 December 2014 ˃ Cash flow p
Slide 8: Consolidated Gold Production & AISC
Consolidated Gold Production & AISC For personal use only AISC A$1,429 A$1,455 A$1,344 ˃ 1H production consistent with A$1,153 FY15 guidance A$1,042 Production ˃ Q1 production lower due to 2 94 93 92 98 week maintenance shutdown at 15 17 Leonora 16 13 69 9 11 19 12 ˃ Record production at Gwalia and
Slide 9: 1H FY15 financial highlights
1H FY15 financial highlights Result - Significant improvement on corresponding prior half year For personal use only ˃ Statutory loss after tax $20 million (2013: $87 million loss) ˃ Underlying loss after tax1 $13 million (2013: $47 million loss) ˃ Improved operating performance at Leonora → increas
Slide 10: 1H FY15 financial highlights
1H FY15 financial highlights 1H FY15 1H FY14 For personal use only A$M A$M Average gold price realised A$1,408/oz A$1,419/oz Profit ˃ Statutory loss after tax (20) (87) ˃ Significant items after tax 6 (41) ˃ Underlying EBITDA 1 51 37 ˃ Underlying NPAT 1 (13) (47) Cash Flow ˃ Cash flows from operatin
Slide 11: 1H FY15 financial highlights (continued)
1H FY15 financial highlights (continued) 1H FY15 1H FY14 For personal use only A$M A$M Investment in operations ˃ Capital expenditure 35 492 ˃ Exploration expenditure3 4 14 Dec 2014 Jun 2014 Cash & debt ˃ Cash balance 1 68 79 ˃ Total interest bearing debt > inc US$M (US$250M notes, US$75M Red Kite)
Slide 12: US$ debt vs. US$ based revenue, acts as a natural hedge
US$ debt vs. US$ based revenue, acts as a natural hedge1 Rev vs Debt Rev vs Debt Rev vs Debt US$ A$ @ 0.80 A$ @ 0.75 For personal use only A$ 536M A$ 503M A$ 433M US$ 402M A$ 406M US$ 325M US$ A$0.80 A$0.75 Revenue Debt ˃ Revenue based on FY15F guidance mid point 332 koz ˃ Assumed gold price US$1,21
Slide 13: Segment contribution - all segments improved
Segment contribution - all segments improved Leonora For personal use only ˃ Lower mine operating costs and Segment Profit A$M depreciation with similar 70 production led to increased segment profit 50 Simberi ˃ 45% increase in gold production 30 (H on H) and no impairment key drivers behind reduced
Slide 14: Key changes to underlying profit in 1H FY15
Key changes to underlying profit in 1H FY15 Underlying Profit After Tax Reconciliation 10 For personal use only -47 -13 - (10) (20) 2 3 1 A$ Million (30) 9 (40) 6 1 3 (50) 9 (60) 1H FY14 Gold Ridge Gross Profit Gross Loss - Exploration D&A Net Income tax Corporate + 1H FY15 - Aust Ops Simberi Ops Fi
Slide 15: Cash movement 1H FY15
Cash movement 1H FY15 For personal use only 150 59 -15 -6 125 -4 -12 -6 100 -18 81 -3 A$ Million -6 75 70 50 25 0 Cash Jun Leonora Ops Simberi Ops Gold Ridge Exploration Corporate Other Debt interest Other Working Cash Dec 2014 [1] Ops financing capital 2014 [1] 14 / December 2014 Half Year Results
Slide 16: Reconciliation of Statutory loss to EBITDA
Reconciliation of Statutory loss to EBITDA For personal use only Statutory Underlying loss to Significant loss to 1 1 A$’000 EBITDA Items EBITDA Statutory net loss after tax (19,879) 6,418 (13,461) Adjustments: Net finance costs 20,911 - 20,911 Discontinued operations finance costs 144 - 144 Income
Slide 17: Leonora Operations, Australia
For personal use only Leonora Operations, Australia 16 / December 2014 Half Year Results / 25 February 2015
Slide 18: Future Gwalia – Drilling Plan (Long Section View)
Future Gwalia – Drilling Plan (Long Section View) For personal use only Refer separate ASX Announcement 25 February 2015 ‘Gwalia Deeps hole successfully intersects Gwalia Mine Sequence’ 17 / December 2014 Half Year Results / 25 February 2015
Slide 19: Gwalia – Schematic Lode Plan View
Gwalia – Schematic Lode Plan View Feb 2015 For personal use only 18 / December 2014 Half Year Results / 25 February 2015
Slide 20: Leonora – targeting higher production
Leonora – targeting higher production Ore Pass system For personal use only 19 / December 2014 Half Year Results / 25 February 2015
Slide 21: Leonora – targeting higher production
Leonora – targeting higher production Waste rock disposal Northern abutment stopes For personal use only below ground – three strategies Concurrent Stope filling Redundant level development 20 / December 2014 Half Year Results / 25 February 2015
Slide 22: Simberi Operations, Papua New Guinea
For personal use only Simberi Operations, Papua New Guinea 21 / December 2014 Half Year Results / 25 February 2015
Slide 23: Simberi: Month of December 2014 net cash flow positive
Simberi: Month of December 2014 net cash flow positive For personal use only Gold Production ˃ Record production1 for Q2 of 17,294 oz (at AISC2 of A$1,619 / oz) ˃ Record production1 for month of 17.3 December of 6,816 oz (at AISC2 of A$1,196 / oz ) ˃ Production benefited from operating SAG and ball
Slide 24: Simberi: Continued improvement in ore milled
Simberi: Continued improvement in ore milled For personal use only Ore milled Gold production last 3 quarters last 6 months 620 6.8 536 463 5.5 4.9 5.0 5.0 2.7 FY14 FY15 FY15 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Q4 Jun Q1 Sep Q2 Dec kt koz 23 / December 2014 Half Year Results / 25 February 2015
Slide 25: Exploration – focus on near mine targets at Simberi
Exploration – focus on near mine targets at Simberi For personal use only Results for drilling completed at Monun Creek (SRCH001 to SRCH004 and SDH324 to SDH334) were received, including 1 Results included: SRCH002: 16m @ 3.5 g/t Au from 6m, including 6m @ 7.2 g/t Au from 10m SDH327: 41m @ 1.2 g/t A
Slide 26: Gold Ridge
For personal use only Gold Ridge ˃ Negotiations with the Government regarding the potential transfer of Gold Ridge to the Government have made little progress during the half ˃ No agreement has been reached with the Government on the critically necessary de-watering of the tailings storage facility,
Slide 27: Conclusion
Conclusion For personal use only ˃ St Barbara turnaround trend is evident in the half year results ˃ Segment results improved for Leonora and Simberi ˃ Cash flow from operations improved ˃ Gold Ridge expenditure now minimal ˃ Corporate restructuring complete ˃ Looking for further operational improve
Slide 28: Appendices
For personal use only Appendices 27 / December 2014 Half Year Results / 25 February 2015
Slide 29: Significant items in NPAT 1H FY15
Significant items in NPAT 1H FY15 For personal use only Net effect of Realised Redundancy hedge and gain on Underlying $M NPAT costs FX derivatives NPAT [2] (1) (13) 7 (20) 1 1. For details refer Interim Financial Report to 31 Dec 2014 p4 28 / December 2014 Half Year Results / 25 February 2015 2. No
Slide 30: Production summary
Production summary Q1 Sep Q2 Dec Guidance FY15 FY15 FY153 For personal use only Gwalia oz 45,391 68,589 200 - 210,000 Production King of the Hills oz 10,793 12,034 50 - 55,000 Simberi oz 12,639 17,294 70 - 80,000 Consolidated oz 68,823 97,917 320 - 345,000 Gwalia g/t 7.9 9.0 Mined Grade King of the
Slide 31: Hedging & Debt at Dec 2014
Hedging & Debt at 31 Dec 2014 ˃ Gold forward sales of 102,000 oz at A$1,415/oz For personal use only ˃ For period January to June 2015 ˃ A$390 million Debt comprises ˃ Senior Secured Notes US$250 million (A$292 million) ˃ repayable April 2018 ˃ no performance covenants ˃ US$75 million Red Kite debt
Slide 32: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutions 58% UK, 17% Private 15% Australia, 29% USA, 13% Europe, 7% Asia, 3% Unallocated / not analysed 27% Other / not analysed, 31% Analysis and geographic spread of Top 100 Shareholders as at 15 January 2
Slide 33: Wide broker coverage
Wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Hunter Hall Investments Ltd 13.8% Canaccord Reg Spencer M&G Investment Mgt Ltd 8.3% Deutsche Bank Chris Terry Franklin Resources Inc 6.6% Ruffer LLP 5.6% Institutional Shareholders [2] 58% Shares on issu
Slide 34: Board of Directors
Board of Directors S J Colin Wise Bob Vassie Chairman – Non Executive Managing Director and CEO For personal use only Appointed 2004 Appointed July 2014 Mr Wise is an experienced corporate lawyer, consultant and company director with significant Mr Vassie is a mining engineer with 30 years expertise
Slide 35: Executive Leadership Team
Executive Leadership Team For personal use only Bob Vassie Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 yea
Slide 36: Ore Reserves & Mineral Resources at June 2014
Ore Reserves & Mineral Resources at 30 June 2014 % of Ore Reserves ˃ Total Proved and Probable Ore Reserves For personal use only 69.1 Mt @ 2.3 g/t Au for 5.16 Moz1 Leonora, ˃ Gwalia Ore Reserves increased after depletion Simberi, WA Papua to 7.3 Mt @ 8.2 g/t Au for 1.91 Moz 44% New ˃ Represents ind
Slide 37: Mineral Resources Summary as at June 2014
Mineral Resources Summary as at 30 June 2014 Mineral Resources are inclusive of Ore Reserves For personal use only and Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 36 / December
Slide 38: Ore Reserves Summary as at June 2014
Ore Reserves Summary as at 30 June 2014 For personal use only and 1 2 Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 1. Includes 1.3 Moz ounces of gold in sulphide ore 2. Gold Ridg
Slide 39: Non-IFRS Measures
Non-IFRS Measures We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with For personal use only certain non-IFRS financial measures, including cash operating costs. We believe that these measures provide meaningful information to ass
Slide 40: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this report that relates to Exploration Results for Simberi and Gold Ridge is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Mustard
Slide 41: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 40 / December 2014 Half Year Results / 25 February 2015