St. Barbara Ltd. · ASX:SBM
St. Barbara — Q3 FY2019 Earnings Presentation
40 slides from St. Barbara's earnings presentation, Apr 18, 2019
Slide 1: Presentation on Q3 March FY19 Quarterly Report and audio webcast
ASX Release / 18 April 2019 Presentation on Q3 March FY19 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q3 March FY19 Quarterly Report at 11:00 am Australian Eastern Standard Time (UTC + 10 hours) on Thursday 18 April 2
Slide 2: Q3 March FY19 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 18 April 2019 ASX:SBM Q3 March FY19 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices Ben Elliott, Environmental Officer, conducting environmental survey, June 2018 3 / Q3 March FY19 Quarterly Presentation
Slide 5: Highlights Q3 March FY19
Highlights Q3 March FY19 • 88 koz at AISC1 of A$1,098/oz (Q2: 89 koz at A$1,108/oz) Operational • Simberi set new records in milled grade and recovery excellence • Continued successful Gwalia deep drilling and exploration • Operational cash contribution of $71 M (Q2: $76 M) Financial • A$800/oz cash
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 5.0 2.9 4.1 2.2 2.8 2.9 1.9 2.1 2.1 1.2 0.9 FY15 FY16 FY17 FY18 FY19 FY19 FY19 St Barbara WA Gold WA Metal, WA Metal, Q1 Sep Q2 Dec Q3 Mar Q3 FY19 Surface Underground •
Slide 7: Consolidated Q3 March FY19 Results
Consolidated Q3 March FY19 Results Q3 FY19 Production AISC (A$/oz) 982 1,108 1,098 • Consolidated 88 koz (Q2: 89 koz) 919 FY18 average A$891/oz 812 • Gwalia 54 koz (Q2: 53 koz) • Simberi 34 koz (Q2: 36 koz) Gold Production (koz) 119 35 99 89 Q3 FY19 AISC1 86 88 36 • Consolidated A$1,098/oz 29 36 34
Slide 8: Gwalia Q3 March FY19 Results
Gwalia Q3 March FY19 Results AISC (A$/oz) 1,081 1,016 Q3 FY19 Production 905 833 FY18 average $802/oz 679 • 54,261 oz (Q2: 53,257oz) • AISC1 A$1,016/oz (Q2: A$1,081/oz) Mined grade (g/t Au) 15.0 13.4 12.4 11.7 • Gwalia Extension Project (GEP) activities 10.4 continued to compete for ventilation Rese
Slide 9: Simberi Q3 March FY19 Results
Simberi Q3 March FY19 Results AISC (A$/oz) Q3 FY19 Production • 34,097 oz (Q2: 35,987 oz) 1,229 1,129 1,135 1,068 1,146 • AISC1 A$1,229/oz (Q2: A$1,146/oz) FY18 average $1,068/oz • AISC impacted by 6 week scheduled shutdown of the Ropecon2, 100-hour plant maintenance and refresh of Production (koz)
Slide 10: Increasing Cash Balance
Increasing Cash Balance A$M 25 7 7 382 82 350 357 343 Q3 movement net of: 261 Q2 movement net $19 M growth capex of: Q1 movement net $14 M dividends of: $46 M tax Q4 movement net $4 M tax $28 M dividends $13 M growth capex of: $11 M growth capex $2 M investments $7 M tax $10 M growth capex $6 M tax
Slide 11: Cash Generation and Usage
Cash Generation and Usage A$M 120 105 100 79 79 76 80 71 Operational cash contribution 60 Net cash movement for qtr 40 82 46 Corp. costs & royalties, 20 25 explr. & working cap. 0 7 7 -7 Strategic investments -16 -14 -10 -28 -2 -4 -4 -20 -7 -3 -46 -4 -19 Leonora - growth capital -4 -6 -40 -11 -9 -4
Slide 12: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Budget of A$112 M (previously A$100 M) with planned completion in Q2 Dec FY201 • GEP on schedule and approximately 80% complete. A$18 M spent in Q3 Mar FY19, A$80 M spent on project to date • PAF2 crushing circuit on 1420 level is complete and 1460 lev
Slide 13: Gwalia Total Material Moved
Gwalia Total Material Moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 267 • Excavation of the approx. 11 m high x 260 252 256 10 m wide chambers at 1,420 and 26 20 19 32 1,460 mbs for the PAF circuit 41 192 commenced in Q1 Sep FY17 69 82 16 78 • Raise-boring of the four 5-m
Slide 14: Gwalia Mass Extraction (GMX) Feasibility Study Results
Gwalia Mass Extraction (GMX) Feasibility Study Results • Feasibility Study results announced 22 March 2019 • An optimised trucking case is the preferred option based on risk and return-on- capital assessments • Three main alternative haulage methods were reviewed: • Continue trucking (the base case,
Slide 15: Gwalia – future indicative production profile
Gwalia – future indicative production profile Gwalia – future indicative • H1 FY20 ventilation constrained until production profile1 GEP is complete • H2 FY20 production will compete with Production (koz) GMX development • FY21 and FY22 production outlook based 240 235 on building to, but not yet ac
Slide 16: Exploration – Key Developments
Exploration – Key Developments Gwalia, WA • Continued testing southern extensions to orebody returned significant results Jessie Alma, WA • RC drilling commenced testing targets between the Gwalia and Tower Hill deposits, with 5 holes completed (assays pending) Pinjin, WA • RC drilling commenced dur
Slide 17: Exploration – Gwalia Deeps
Exploration – Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16I, GWDD16J and GWDD16K intersected the mine sequence between 2,030 and 2,060 mbs • Significant results include1: o 6.0 m at 11.7 g/t Au from 1,945 mbs o 0.5 m at 11.0 g/t Au from 1,948 mbs • Results suggest this zone could host h
Slide 18: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG Sorowar Pit Drilling results continue to be positive, indicating significant additional sulphide and oxide mineralisation is present Best intersections include (all results downhole): 135SORDGC003: • 20 m at 3.26 g/t Au from 95 m • 7 m at 25.5 g/t Au from 153 m 185S
Slide 19: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 18 / Q3 March FY19 Quarterly Presentation
Slide 20: Strategy for the Next 5 Years – “Stronger for Longer”
Strategy for the Next 5 Years – “Stronger for Longer” Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in all phases of the pipe
Slide 21: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Metals Peel Gwalia Mining GMX 16% 18%. Gwalia Gwalia Aust. Prodigy Potash Tower Extension Mine Duketon Gold Mining Hill 10% 12% Au, EJV2 Inorganic growth Evaluating exploration, projec
Slide 22: Conclusion
Conclusion • Gwalia production maintained during GEP activity, GEP progressing well • Simberi FY19 production guidance increased • GMX feasibility study results indicates trucking as the preferred option • Successful drilling at Gwalia Deeps and regionally • Continued positive Simberi Sulphide drill
Slide 23: Appendices
Appendices Boats for Exploration logistics, Tatau Island PNG. Mt Banesa in background. June 2018. 22 / Q3 March FY19 Quarterly Presentation
Slide 24: Diversity and Sustainability – Developments in Q3 Mar FY19
Diversity and Sustainability – Developments in Q3 Mar FY19 • WGEA Employer Of Choice For Gender Equality citation received for 2019. Citation held since 2014 and the only mining company to be currently certified. Leonora sponsorships • Clontarf Foundation. Uses football as a vehicle to improve the e
Slide 25: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q3 YTD Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY191 St Barbara’s financial year is Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June 2019 1 July to 30 June 2018 30 Sep 2018 31 De
Slide 26: Current Projects – Timeline
Current Projects – Timeline FY19 FY19 FY20 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study optimisation Gwalia 2600 mbs hole analysis and further drilling analysis and Gwalia 3D Targets fur
Slide 27: Exploration FY19 Guidance - A$25 to A$30 million
Exploration FY19 Guidance - A$25 to A$30 million A$12 – A$15 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$9 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry Option and farm in with Newcr
Slide 28: Exploration – Gwalia Deep Drilling
Exploration – Gwalia Deep Drilling For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 27 / Q3 March FY19 Quarterly Presentation
Slide 29: Exploration – Seismic Targets
Exploration – Seismic Targets For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 28 / Q3 March FY19 Quarterly Presentation
Slide 30: Exploration – Gwalia Geological Interpretation
Exploration – Gwalia Geological Interpretation Note: Stylised conceptual interpretation of the Gwalia geology and mineralisation 29 / Q3 March FY19 Quarterly Presentation For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’
Slide 31: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 30 / Q3 March FY19 Quarterly Presentation
Slide 32: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 31 / Q3 March FY19 Quarterly Presentation
Slide 33: Gwalia Tailings Storage Facility (TSF3)
Gwalia Tailings Storage Facility (TSF3) Upstream raise construction • Type of TSF: Paddock Metrics: • First approved: 1992 • Elevation: ~376m • Current wall height: 30 m • Projected final wall height: 32 m • Tailings deposition rate: 750-850 ktpa • Deposited density: 1.4-1.5 t/m3 • Total capacity: 3
Slide 34: Gwalia Tailings Storage Facility (TSF3) - Governance
Gwalia Tailings Storage Facility (TSF3) - Governance • Engineer of Record & Independent Tailings Engineer Leonora • Annual safety inspections Shire • Insurance Assessment • Annual visit • WA Government, Department of Water and Environmental Regulation • Periodic inspections • WA Government, Departme
Slide 35: Hedging Summary at 18 April 2019
Hedging Summary at 18 April 2019 Financial Volume Price Delivery Announced Year ounces $/oz (all monthly instalments) FY19 27,000 A$1,750 February and June 2019 7 & 19 Feb 2018 and 7 Mar 2018 (73,000 of initial 100,000 ounces delivered year to date since 1 July 2018) FY20 50,000 A$1,750 July and Dec
Slide 36: Ore Reserves Summary as at 30 June 2018
Ore Reserves Summary as at 30 June 2018 Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 37: Mineral Resources Summary as at 30 June 2018
Mineral Resources Summary as at 30 June 2018 Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 4,581 7.1 1,048 14,690 6.3 2,997 3,831 6.3 7
Slide 38: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 39: Non-IFRS Measures and Scheduled Announcements
Non-IFRS Measures and Scheduled Announcements 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
Slide 40: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp