St. Barbara Ltd. · ASX:SBM
St. Barbara — H1 FY2014 Earnings Presentation
30 slides from St. Barbara's earnings presentation, Feb 26, 2014
Slide 1: Presentation on the December 2013 Half Year Financial Report
ASX Release / 26 February 2014 For personal use only Presentation on the December 2013 Half Year Financial Report A presentation on the Interim Financial Report for the Half Year to 31 December 2013 released earlier today is attached. Additional information contained in the presentation includes: Co
Slide 2: December 2013 Half Year Results
Tim Lehany, Managing Director & CEO / 26 February 2014 For personal use only December 2013 Half Year Results
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 ˃ Operational Results ˃ Financial Results ˃ Cash Management Focus ˃ Simberi & Gold Ridge Updates ˃ Conclusion ˃ Appendices 3/ December 2013 Half Year Results / 26 February 2014
Slide 5: Diversified Australia-Pacific gold producer
For personal use only Diversified Australia-Pacific gold producer Simberi PNG Simberi SI ˃ Low strip open pit mine ˃ 1H 14 production: 21 koz Gold Ridge ˃ Near mine targets for exploration Leonora ˃ Two underground mines: ˃ Gwalia Mine FY14F production: Australia 180 - 195 koz Gold Ridge ˃ King of t
Slide 6: Operations 1H FY14
Operations 1H FY14 ˃ Gwalia and King of the Hills, Western Australia For personal use only ˃ Operating above expectations ˃ Simberi, Papua New Guinea ˃ Significant restructuring of operations undertaken in October 2013 ˃ 3.5 Mtpa oxide expansion circuit commissioned in December 2013 ˃ Mining lease v
Slide 7: Consolidated gold production
Consolidated gold production ˃ Gwalia and King of the Hills For personal use only performed strongly ˃ Gwalia grade and tonnes as expected 107 ˃ Gold Ridge underperformed 17 97 93 94 ˃ Plant modifications in Nov 2013 15 11 87 13 15 reduced throughput but 13 14 12 demonstrated higher recoveries in 9
Slide 8: Key finance items 1H FY14
Key finance items 1H FY14 Profit For personal use only ˃ Statutory loss after tax $87 million, including impairment charge $42 million ˃ Underlying loss after tax1 $47 million ˃ Leonora PBT $45 million and EBITDA1 $84 million Cash flow ˃ Cash flow from operating activities $6 million ˃ Capex of $49
Slide 9: 1H FY14 financial highlights
1H FY14 financial highlights 1H FY14 1H FY13 For personal use only A$M A$M Average gold price realised A$1,419/oz A$1,626/oz Profit ˃ Statutory (loss) / profit after tax (87) 2 ˃ Asset impairments & write downs after tax (42) - ˃ Underlying EBITDA 1 37 74 ˃ Underlying EBIT 1 (16) 30 ˃ Underlying NPA
Slide 10: 1H FY14 financial highlights (continued)
1H FY14 financial highlights (continued) For personal use only 1H FY14 1H FY13 A$M A$M Investment in operations ˃ Capital expenditure 48 72 ˃ Exploration expenditure 14 6 Dec 2013 Jun 2013 Cash & debt ˃ Cash balance 1 70 129 ˃ Total interest bearing debt 320 328 ˃ Gearing – after impairment charges
Slide 11: Key changes to underlying profit in 1H FY14
Key changes to underlying profit in 1H FY14 Underlying Profit After Tax1 Reconciliation 1H FY13 to 1H FY14 For personal use only 40 30 17 1 -27 20 10 -47 - -8 A$ Million (10) -3 -9 (20) -15 (30) (40) -2 -1 (50) (60) 1H FY13 Gross Profit - Gross Loss - Exploration Royalties D&A Net Financing Income t
Slide 12: Pacific Operations yet to contribute
Pacific Operations yet to contribute Australian Operations For personal use only Segment Profit ˃ Gwalia profit maintained A$M 50 (despite lower gold price) 40 ˃ King of the Hills higher cost due 30 to change in mining methods for 20 the Western Flank and increased 10 D&A 0 -10 Pacific Operations -2
Slide 13: Significant items in NPAT 1H FY14
Significant items in NPAT 1H FY14 For personal use only Impairment Underlying NPAT Pacific Operations [1] Net other [3] NPAT [2] $M (2) (47) (87) 42 1. Impairment described in Interim Financial Report to 31 Dec 2013 Note 4 2. Non-IFRS measure, refer slide 27. 12 / December 2013 Half Year Results / 2
Slide 14: Cash movement 1H FY14
Cash movement 1H FY14 For personal use only 9 58 (44) 129 (18) (21) (19) 2 (12) (14) 70 $M Cash Aust Ops KOTH hedge Pac Ops Pac Ops Gold loan Net interest Corporate Exploration S'thn Cross Cash Jun 2013 [1] net cash flow close out net cash flow Project capex repayments proceeds Dec 2013 [1] 13 / Dec
Slide 15: Cash management focus
Cash management focus ˃ Gold forward sales of 240,000 oz at A$1,390/oz For personal use only ˃ For period Nov 2013 to Sep 2014, protects gold price risk for FY14 ˃ As at 31 Dec 2013, 196,000 oz remain under forward contracts ˃ Capital expenditure tightly controlled – has passed peak ˃ Long term debt
Slide 16: Cash management focus
Cash management focus The Company continues to aggressively implement cost reduction initiatives, inc: For personal use only ˃ Simberi : workforce reduction of 135 positions (c. 20%) in Oct 2013 ˃ Gold Ridge: workforce reduction of 85 positions (c. 10%) in Feb 2014 ˃ Exploration: Australian explorat
Slide 17: Strategic Roadmap – Simberi
Strategic Roadmap – Simberi St Barbara has a defined turnaround plan for Simberi with the asset having shown tangible improvement over recent months For personal use only We are here Stabilise & Grow Invest & Fix ˃ New equipment to supplement existing Initial Focus fleet ˃ Commissioning of new plant
Slide 18: Strategic Roadmap – Gold Ridge
Strategic Roadmap – Gold Ridge > Gold Ridge has shown material operational improvement following the completion of plant and other upgrades. For personal use only > The strategic review is ongoing and is primarily directed at reducing St Barbara’s funding of the project. > The review also includes o
Slide 19: Conclusion
Conclusion ˃ Australian operations performing well and maintain guidance For personal use only ˃ Focus at Simberi on increasing production ˃ Simberi restructuring complete ˃ Simberi oxide plant scheduled to ramp up to 3.5 Mtpa in Q4 June 2014 ˃ Strategic review at Gold Ridge ongoing ˃ Company focus
Slide 20: Appendices
For personal use only Appendices 19 / December 2013 Half Year Results / 26 February 2014
Slide 21: Production by half
Production by half Consolidated Gold Production For personal use only 185 194 190 170 154 59 50 124 134 32 138 135 140 1H FY 11 2H FY 11 1H FY 12 2H FY 12 1H FY 13 2H FY13 1H FY14 Pacific Ops Aust Ops koz Consolidated, attributable gold production. Includes Pacific Operations from date of acquisitio
Slide 22: Production summary
Production summary For personal use only Production Summary Q1 Sep Q2 Dec 1H FY14 Consolidated FY14 FY14 Production Gwalia oz 53,230 52,552 105,782 King of the Hills oz 17,249 17,205 34,454 Gold Ridge oz 14,519 14,912 29,431 Simberi oz 11,741 8,908 20,649 Consolidated oz 96,739 93,577 190,316 Mined
Slide 23: All-in sustaining cost
All-in sustaining cost For personal use only All-In Sustaining Cost[1] Gwalia King Gold Ridge Simberi Group December Quarter FY14 of the Consolidated Hills Total Cash Operating Costs $/oz 787 1,008 1,988 2,577 1,189 less operating development[2] $/oz (165) (196) - - (128) Adjusted Cash Operating Cos
Slide 24: Red Kite debt facility
Red Kite debt facility For personal use only On 25 Feb 2014, St Barbara announced that the Red Kite gold prepayment facility was restructured and optimised to improve terms, flexibility and provide access to additional liquidity if required. The original facility was established by Allied Gold Minin
Slide 25: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only UK, 31% Private 10% Australia, 18% Unallocated / not analysed 16% USA, 25% Institutions Europe, 6% 74% Asia, 2% Other / not analysed, 12% Analysis and geographic spread of Top 100 Shareholders as at 15 January 2
Slide 26: Wide broker coverage
Wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Argonaut Securities Troy Irvin M&G Investment Mgt 19% Baillieu Sophie Spartalis Baker Steel 7% Bell Potter Franklin Resources 7% Canaccord Luke Smith Van Eck Associates 7% Citi Daniel Seeney CLSA David R
Slide 27: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate ˃ Lowest annual TRIFR since the 14.8 measure was first adopted by 12.5 St Barbara in 2009 11.1 ˃ TRIFR includes Pacific 9.0 Operations from September 2012 6.0 1 4.7 4.0 FY 09 FY 10 FY 11 FY 12 FY 13 Q1 Q2 FY14 FY14 1.
Slide 28: 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 29: 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 Dr Roger Mustard who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full-time employ
Slide 30: 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 29 / December 2013 Half Year Results / 26 February 2014