St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2013)
38 slides from St. Barbara's shareholder meeting presentation, Nov 26, 2013
Slide 1: 2013 Annual General Meeting and audio webcast
ASX Release / 26 November 2013 For personal use only 2013 Annual General Meeting and audio webcast Attached is the Chairman’s address and the Managing Director and CEO’s presentation to the 2013 Annual General Meeting in Melbourne today. A live audio webcast of the Annual General Meeting will be ava
Slide 2: Chairman's address: Overview of the 2013 financial year
COLIN WISE, CHAIRMAN ADDRESS TO THE 2013 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ST BARBARA LTD Ladies and Gentlemen For personal use only Overview of the 2013 financial year The 2013 financial year was one of strategic transformation for St Barbara. • The Southern Cross Operations in Western Aust
Slide 3: The gold price has weakened
The gold price has weakened As we entered the 2013 financial year, expectations of a strong and increasing US$ gold price were high. It was then about US$1,600 per ounce, the US economy was still supported by quantitative easing, and the inter-country European Community crisis remained For personal
Slide 4: Transforming St Barbara
An interesting chart prepared by PricewaterhouseCoopers indicates how 50 selected mid cap Australian listed mining companies now have a market capitalisation which is less than their net asset value. In particular, since 2011 the combined market capitalisation of these companies For personal use onl
Slide 5: Pacific Operations turnaround
A range of scenarios for the Pacific Operations, particularly at Simberi, have been considered by the Company in the current circumstances. This will be a continuing exercise. We believe that completing the turnaround work with determined perseverance is the right strategy to adopt at this time. For
Slide 6: Exploration successes and outlook
The Board and senior executive team members are acutely aware of the Company’s underperformance and fall in the share price. Performance in the next 12 months will be critical for the Company and its shareholders. With an eye to the future, I should make special mention of the recently announced For
Slide 7: Executive KPIs and incentives
It is important to understand the context in which the FY13 Executive KPIs were established by the Board, and the basis on which a limited performance payment to senior executives for the year was made. In 2005 the Board established an Executive Management short term ‘at risk’ performance For person
Slide 8: Board Composition and Conclusion
Board Composition Ines Scotland joined the Board in September this year and is a welcome addition. She has extensive Australian and international resources industry experience and success, including as a CEO in establishing a large mining operation in a developing country. Her appointment For person
Slide 9: Managing Director & CEO: Business Overview
TIM LEHANY, MANAGING DIRECTOR & CEO / 26 November 2013 For personal use only 2013 Annual General Meeting Business Overview
Slide 10: 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 11: Diversified Australia-Pacific gold producer
Diversified Australia-Pacific gold producer Established operations in three countries For personal use only Simberi PNG Simberi SI ˃ Low strip open pit mine ˃ Targeting c. 100 koz p.a. Gold Ridge run rate ˃ Near mine targets for Leonora exploration ˃ Two underground mines: ˃ Gwalia Mine FY14F produc
Slide 12: FY13 Performance
FY13 Performance ˃ Strong Australian For personal use only Operations ˃ Pacific Operations in transition, with transformation taking longer and costing more than originally anticipated 4/ ANNUAL GENERAL MEETING / 26 November 2013
Slide 13: FY13 was a year of transformation
FY13 was a year of transformation ˃ The acquisition of two prospective For personal use only Pacific Operations; Simberi gold operations in Papua New Guinea and Gold Ridge gold operations in the Solomon Islands ˃ The Sale of Southern Cross Operations (which had been on care and maintenance) ˃ A sign
Slide 14: A$ Gold Price
A$ Gold Price For personal use only A$/oz 1,800 1,700 ˃ The A$ gold price 1,600 has fallen around 1,500 22% since 1,400 October 2012 1,300 1,200 1,100 1,000 Oct 12 Dec 12 Feb 13 Apr 13 Jun 13 Aug 13 Oct 13 A$ Gold Price Linear Trend Source: IRESS 6/ ANNUAL GENERAL MEETING / 26 November 2013
Slide 15: Company Overview
Company Overview ˃ A diversified portfolio of gold operations, with each mine open at For personal use only depth or along strike ˃ Strongly performing Australian Operations including significant net cash generation from the Gwalia mine ˃ Increasing gold production from the Pacific Operations expect
Slide 16: Segment profit
Segment profit For personal use only Segment profit / (loss) before tax 1 Australian Operations 125 ˃ Lower profit in FY13 primarily due to lower gold price 96 ˃ Southern Cross result includes care and maintenance period prior to sale 30 Pacific Operations 20 ˃ Simberi oxide expansion delays - - (0.
Slide 17: Profit
Profit For personal use only NPAT Underlying NPAT 1 130 69 121 54 -40 -76 29 15 0.2 2 -192 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 A$M A$M 9/ ANNUAL GENERAL MEETING / 26 November 2013 1. Non-IFRS measure, refer slide 29 2. FY13 NPAT includes $221M asset impairment
Slide 18: Three long life gold producing operations
Three long life gold producing operations For personal use only 10 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 19: Leonora: Reliable cash margin generator
Leonora Reliable cash margin generator Gwalia King of the Hills For personal use only ˃ Ore Reserves 6.6 Mt @ 8.3 g/t Au ˃ Provides ore to utilise available Gwalia containing 1.75 Moz 1 mill capacity ˃ 9+ year mine life ˃ Reliable gold production of ˃ Deposit open at depth 55+ koz p.a. ˃ Steady stat
Slide 20: Pacific Operations
Pacific Operations Completing the turnaround & realising growth opportunities For personal use only 12 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 21: Pacific Operations: Prospective mines and large under explored ground
Pacific Operations Prospective mines and large under explored ground positions ˃ Pacific Operations acquired 7 September 2012 For personal use only ˃ Turnaround opportunity to apply St Barbara operating capability ˃ Extensive under-explored prospective land holdings ˃ Turnaround of Simberi and Gold
Slide 22: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only Plant expansion will deliver higher production and lower unit costs 14 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 23: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea ˃ Small island in New Ireland Province For personal use only ˃ Open pit mining since 2008 ˃ Oxide plant expansion project commissioning has commenced ˃ Supportive, experienced local workforce now structured to achieve productivity gains ˃ Plant throughput expecte
Slide 24: Simberi: Expected production increase from plant expansion
Simberi Operations, Papua New Guinea For personal use only Expected long term production ˃ Full oxide plant expansion increase from plant expansion expected to lift sustainable gold production to 100 koz p.a. rate 120 ˃ Upgrade of mining fleet expected 100 to address utilisation and reliability 80 ˃
Slide 25: Gold Ridge Operations, Solomon Islands
Gold Ridge Operations, Solomon Islands For personal use only Established open pit operations in Charivunga Valley 17 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 26: Gold Ridge Operations, Solomon Islands
Gold Ridge Operations, Solomon Islands For personal use only Expected production increase in ˃ 2.5 Mtpa processing plant and open FY14 from improved operating pits located in highly mineralised 100 performance Charivunga Valley, close to Honiara ˃ Lift in gold production expected 80 through; 60 ˃ Im
Slide 27: Exploration – seeking near mine discoveries
Exploration – seeking near mine discoveries to leverage the value of existing operations For personal use only Leveraging value from current operations 19 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 28: Ore Reserves and Mineral Resources
Ore Reserves and Mineral Resources Amongst the highest of any ASX mid-tier gold company For personal use only Significant Ore Reserves Diversified portfolio of Ore and Mineral Resources 1 Reserves 1 13.22 Leonora, Simberi, WA PNG 41% 42% 7.61 5.24 2.53 FY 12 FY 13 Gold Ridge, Mineral Resources Ore R
Slide 29: Exploration: Focus on adding to near mine reserves
Exploration Focus on adding to near mine reserves Exploration spend FY14F $20-25M For personal use only ≈ 40% in Australia Tabar Island Group ≈ 60% in Pacific Operations (inc. Simberi) Simberi > Active drilling programs on defined ˃ Ore bodies open at depth PNG targets SI ˃ Near mine targets for exp
Slide 30: FY14 Objectives
FY14 Objectives Australia For personal use only ˃ Forecast gold production 235 – 255 koz ˃ Continuing business improvement ˃ Drilling to test for mine life extensions at King of the Hills Pacific Operations ˃ Lifting operations performance and planning for growth ˃ Applying St Barbara operating capa
Slide 31: St Barbara: Australia - Pacific gold producer
St Barbara: Australia - Pacific gold producer For personal use only 23 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 32: Appendices
For personal use only Appendices 24 / ANNUAL GENERAL MEETING / 26 November 2013
Slide 33: Exploration - Simberi, Tatau and Tabar Islands, PNG
Exploration - Simberi, Tatau and Tabar Islands, PNG Simberi Island For personal use only ˃ Exploration focused on identifying near mine, higher grade, oxide resources ˃ Further encouraging gold results2 from drilling oxide mineralisation at Botlu and Pigicow on near-mine prospects including1: ˃ 14m
Slide 34: Exploration – Gold Ridge, Solomon Islands
Exploration – Gold Ridge, Solomon Islands ˃ Extending near mine resources For personal use only Guadalcanal Island ˃ On-going drilling on the Charivunga zone at Gold Ridge mine, producing further encouraging gold results2 including DGD0111 : ˃ 15m @ 1.4 g/t Au from 14m ˃ 20m @ 2.0 g/t Au from 128m ˃
Slide 35: Exploration – King of the Hills, Western Australia
Exploration – King of the Hills, Western Australia ˃ Extending near mine resources For personal use only King of the Hills ˃ Early drilling results2 testing for lode extensions to the north have been encouraging with results including1: ˃ 3m @ 117.4 g/t Au from 72m ˃ 7m @ 12.0 g/t Au from 111m ˃ 7m
Slide 36: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results is based on information compiled by Mr Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Uttley is a full-time emplo
Slide 37: 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 38: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 30 / ANNUAL GENERAL MEETING / 26 November 2013