St. Barbara Ltd. · ASX:SBM
St. Barbara — Investor Presentation (November 2009)
34 slides from St. Barbara's investor presentation, Nov 11, 2009
Slide 1: Positioning St Barbara for Growth: Equity Raising
For personal use only Positioning St Barbara for Growth Equity Raising 11th November 2009 NOT FOR DISTRIBUTION OR RELEASE IN 1 THE UNITED STATES OR TO US PERSONS 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only This investor presentation (Presentation) has been prepared by St Barbara Limited (ABN 36 009 165 066) (St Barbara) Summary information This Presentation contains summary information about St Barbara and its subsidiaries and their activities curr
Slide 3: Offer Summary
Offer Summary For personal use only ▪ St Barbara (the “Company”) today announced a 4 for 13 Accelerated Non-Renounceable Pro Rata Entitlement Offer (the “Offer”) to raise up to approximately A$124 million ▪ The funds raised will be used to: ▪ Strengthen St Barbara’s balance sheet by providing adequa
Slide 4: Company Profile
Company Profile For personal use only ▪ Unhedged Australian gold company, currently producing in excess of 200,000+ ounces per annum (“ozpa”), with planned increase in production ▪ Two producing operations (Leonora and Southern Cross) ▪ Reserves 2.6M ozs (June 09) ▪ Resources 9.5M ozs (June 09) ▪ Lo
Slide 5: Delivering on Plan
Delivering on Plan For personal use only The Offer is the logical next step in St Barbara’s strategic development Focus on lower cost, higher margin gold production 9 Completed strategic review Extensive review of all operations focussing on establishing a robust and deliverable business case (J
Slide 6: Investment Highlights
Investment Highlights For personal use only Gwalia mine is St Barbara’s flagship asset and is expected to underpin long term cash flows based on the three year plan Robust Operations Gwalia is achieving production and cost targets Gwalia mine development emphasis is on targeting the higher gra
Slide 7: Use of Proceeds
Use of Proceeds For personal use only ▪ The proceeds of the Offer will be used to: ▪ Strengthen St Barbara’s balance sheet by providing adequate capital for the potential full redemption of Convertible Notes on 4 June 2010; ▪ Fund development of Tower Hill or Tarmoola subject to final approval follo
Slide 8: Pro-Forma Balance Sheet (post equity raising)
Use of Proceeds Pro-Forma Balance Sheet (post equity raising) For personal use only Pro form a historical balance sheet ($m ) Adjustments Adjustments 30 June 2009 Sale of Underwritten Additional Pro forma Pro forma Actual Bendigo raising of $24.1m shares $100m raised Current assets Cash and cash equ
Slide 9: Capital Structure
Capital Structure For personal use only ▪ An indicative capital structure prior to and post the Offer is presented below: Post Offer Post Offer Pre Offer (A$100 million) (A$124 million) Shares on issue 1,493,932,950 1,864,303,320 1,953,604,627 Options on issue1,2 11,619,771 11,619,771 11,619,771 Con
Slide 10: St Barbara's Strategy
Company Profile St Barbara’s Strategy For personal use only ▪ Focus on lower cost, higher margin gold production from current operations ▪ Replaces strategy of seeking to fully utilise excess plant capacity with lower grade open pit ore ▪ Three year plan commenced ▪ Planned gold production at Gwalia
Slide 11: The Three Year Plan
Company Profile The Three Year Plan For personal use only The St Barbara three year plan is to maximise sustainable cash flows, deliver strong investment returns and pursue growth options to enhance shareholder value ▪ Based substantially on current reserves ▪ High level of confidence in being able
Slide 12: Leonora – Gwalia Operations
Company Profile Leonora – Gwalia Operations For personal use only ▪ Well defined long life reserve (9 years) ▪ Established mining method ▪ Geotechnical characteristics well understood ▪ Increasing grades in FY 11 and FY 12 ▪ First quartile cash cost producer by FY 12 ▪ Available plant capacity ▪ Pla
Slide 13: Leonora - Tower Hill
Company Profile Leonora - Tower Hill For personal use only Attractive potential satellite ore source* ▪ Existing JORC probable reserves totalling 2.2Mt at 4.7g/t for 338k oz contained ounces of gold ▪ Indicated and inferred resources totalling 5.1Mt at 4.7g/t for 762k oz contained gold ▪ Potential p
Slide 14: Leonora – Tarmoola
Company Profile Leonora – Tarmoola For personal use only Attractive potential satellite ore source* ▪ New JORC Indicated and Inferred Resources totalling 2.0Mt at 6.0g/t for 376k oz contained ounces of gold ▪ Potential production of 190k oz – 210k oz over 5yrs ▪ Preliminary mining studies indicate:
Slide 15: Southern Cross Operations
Company Profile Southern Cross Operations For personal use only ▪ History demonstrates potential for reserve extensions at Marvel Loch Underground ▪ Marvel Loch Underground planned to be cash flow positive in each full year over the current three year mine plan ▪ Plant reliability and throughput imp
Slide 16: Reserves and Resources as at June 2009
Company Profile Reserves and Resources as at 30 June 2009** For personal use only 2.6 Moz Ore Reserves 9.5 Moz Mineral Resources Other^ Nevoria, 58 k oz, 2% Tower Hill, Marvel Loch 500 k oz, 5% 762 k oz, 8% Tarmoola, 277 k oz, 11% 2,122 k oz, 22%*** Nevoria 258 k oz, 10% Tower Hill Marvel Loch, 338
Slide 17: FY Outlook and Summary
Business Update FY 10 Outlook and Summary For personal use only ▪ St Barbara remains confident of achieving its publicly stated FY 10 guidance of 205 – 240k oz of gold production, at a cash operating cost of A$745 – A$820 per ounce ▪ Capital expenditure is expected to be within FY 10 guidance of A$8
Slide 18: Details of the Offer: Key Information
Details of the Offer Key Information For personal use only 4 for 13 Accelerated Non-Renounceable Pro Rata Entitlement Offer to raise up to approximately A$124 million1 Offer Size Up to approximately 460 million new St Barbara ordinary shares to be issued (“New Shares”) Macquarie Capital Advise
Slide 19: Details of the Offer: Important Dates
Details of the Offer Important Dates For personal use only Institutional Entitlement Offer Opens Wednesday 11 November 2009 Institutional Entitlement Offer Closes Thursday 12 November 2009 Announcement of Institutional Offer results, Trading recommences Friday 13 November 2009 Record Date for determ
Slide 20: What you need to do
Details of the Offer What you need to do For personal use only Eligible Institutional Shareholders ▪ Read the Procedures Manual and this Investor Presentation ▪ Return the Institutional Shareholding Declaration Form to Orient Capital by 12:00 noon (Melbourne time) on Wednesday, 11 November 2009 (App
Slide 21: Summary of Key Risks
Details of the Offer Summary of Key Risks For personal use only See Appendix A for more detailed information on some of the key risks associated with an investment in St Barbara. A high level summary of the key risks is provided below: ▪ Operating and Development Risks – An increase in St Barbara’s
Slide 22: Appendices
For personal use only Appendices NOT FOR DISTRIBUTION OR RELEASE IN 22 THE UNITED STATES OR TO US PERSONS 22
Slide 23: Key Risks
Appendix A Key Risks For personal use only An increase in St Barbara’s production costs or a decrease in production could reduce St Barbara’s profitability and operating cash flows. St Barbara’s operations are subject to conditions beyond its control that may increase its costs or decrease its produ
Slide 24: Key Risks
Appendix A Key Risks For personal use only It is the Company’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws. Nevertheless, the environmental impact of gold exploration and mining operations can give rise to
Slide 25: Key Risks
Appendix A Key Risks For personal use only The mining and resources industry tends to be highly capital intensive. The ability of St Barbara to raise funds on favourable terms for further development of St Barbara’s current projects and/or possible future acquisitions depends on a number of factors
Slide 26: Key Risks
Appendix A Key Risks For personal use only Litigation risks to St Barbara may include, but are not limited to, contesting development or regulatory approvals, native title claims, land tenure disputes, environmental claims, contractual disputes and occupational health and safety claims. In addition
Slide 27: Key Risks
Appendix A Key Risks For personal use only Uncertainty In There is a degree of uncertainty relating to the estimation of Mineral Resources and Ore Reserves. The tonnes and grades are estimates and The Estimation correspondingly may not be realised in future production by St Barbara. In addition, the
Slide 28: Key Risks
Appendix A Key Risks For personal use only St Barbara maintains insurance within ranges of coverage consistent with industry practice, but no assurance can be given that St Barbara will Insurance Risk continue to be able to obtain such insurance coverage at reasonable rates (or at all), or that any
Slide 29: Three Year Business Plan – Core Assumptions
Appendix B Three Year Business Plan – Core Assumptions For personal use only The gold price assumption used to calculate gold revenues is A$1,200 per ounce throughout the three year 1. Gold Price period. Gwalia annual production is based on a mine plan and reserves reported at 30 June 2008, modified
Slide 30: Foreign Jurisdictions - Offer Restrictions
Appendix C Foreign Jurisdictions - Offer Restrictions For personal use only This document does not constitute an offer of securities in any jurisdiction in which it would be unlawful. No action has been taken to permit a general public offer in any jurisdiction. United States This presentation does
Slide 31: Foreign Jurisdictions - Offer Restrictions
Appendix C Foreign Jurisdictions - Offer Restrictions For personal use only New Zealand The New Shares in the Entitlement Offer are not being offered or sold to the public in New Zealand other than to existing shareholders of the Company with registered addresses in New Zealand to whom the offer of
Slide 32: JORC – Ore Reserve Statement at June 2009
Appendix D JORC – Ore Reserve Statement at 30 June 2009 For personal use only Proved Probable Total Region Tonnes (k) Au g/t k oz Tonnes (k) Au g/t k oz Tonnes (k) Au g/t k oz Southern Cross Marvel Loch 470 3.7 56 1,810 3.8 221 2,280 3.8 277 Nevoria West 0 0.0 0 500 3.0 48 500 2.9 48 Nevoria 0 0.0 0
Slide 33: JORC – Mineral Resource Statement at June 2009
Appendix D JORC – Mineral Resource Statement at 30 June 2009 For personal use only Measured Indicated Inferred Total Region / Tonnes Tonnes Tonnes Tonnes Au g/t k oz Au g/t k oz Au g/t k oz Au g/t k oz Project (k) (k) (k) (k) Southern Cross Marvel Loch 740 4.5 108 3,190 4.4 451 950 3.7 113 4,880 4.3
Slide 34: Competent Person Statement
Appendix E Competent Person Statement For personal use only Competent Person Statement Significant geological interpretations and exploration results contained in this presentation have been compiled by Mr Phillip Uttley. Mr Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy a