St. Barbara Ltd. · ASX:SBM
St. Barbara — Citigroup Australian Investment Conference 2010
44 slides from St. Barbara's conference presentation, Oct 26, 2010
Slide 1: Presentation by the Managing Director and CEO to Citi Conference
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only Presentation by the Managing Director and CEO, to the Citi Annual Australian Inv
Slide 2: Value focused gold producer
For personal use only Value focused gold producer Tim Lehany Managing Director & CEO Citigroup Australian Investment Conference, Sydney 26 October, 2010 Value focused gold producer – 26 October 2010 1
Slide 3: Forward looking statements
Forward looking statements 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 i
Slide 4: What we'll cover today
What we’ll cover today For personal use only 1. INTRODUCING ST BARBARA 2. OUR BUSINESS 3. INVESTING IN DISCOVERY 4. VALUE 5. INVESTMENT PROPOSITION Value focused gold producer – 26 October 2010 3
Slide 5: Introducing St Barbara
For personal use only Introducing St Barbara Value focused gold producer – 26 October 2010 4
Slide 6: Gold focused, capable and growing
Gold focused, capable and growing For personal use only Stock code: SBM Australian based producer(1) 231Koz ASX market capitalisation(2) A$820M Significant holders M&G Group 17.0% Franklin Templeton 6.0% Hunter Hall 5.1% Producing operations 2 Exploration land bank 6,000+ kms² Ore Reserves(3) 15.7Mt
Slide 7: Depth and diversity of skills delivering results
Depth and diversity of skills delivering results For personal use only Ross Kennedy David Rose Tim Lehany Garth Campbell-Cowan Phil Uttley Executive General Manager Chief Operating Officer Managing Director Chief Financial Officer Executive General Corporate Services & & Chief Executive Officer Mana
Slide 8: Market guidance for FY10 delivered
Market guidance for FY10 delivered For personal use only GUIDANCE Gold production (oz) 231,018 Guidance: 205,000-240,000 205,000 240,000 Actual: 231,018 Cost per ounce (A$/oz) 790 Guidance: 780-820 780 820 Actual: 790 Leonora 686 Guidance: 630-700 630 700 Actual: 686 Southern Cross 883 Guidance: 840
Slide 9: September 2010 Quarter
September 2010 Quarter For personal use only Koz Gold production - last four quarters 70 60 62.6 63.5 50 55.1 54.4 40 30 20 10 FY 10 - Q2 Dec FY 10 - Q3 Mar FY 10 - Q4 Jun FY 11 - Q1 Sep • Highest quarterly gold production in 12 months • Gwalia quarterly gold production expected to increase through
Slide 10: Growing gold production since 2005
Growing gold production since 2005 For personal use only Ounces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2005 2006 2007 2008 2009 2010 Guidance Guidance 2011 2012 Value focused gold producer – 26 October 2010 9
Slide 11: Building our reserves and extending mine life
Building our reserves and extending mine life For personal use only Contained Ounces 3,500 2,906 3,000 2,500 2,000 1,500 1,000 500 260 0 Ore Reserves Ore Reserves 2006 2007 2008 2009 2010 2005 2010 At 30 June 2010 Value focused gold producer – 26 October 2010 10
Slide 12: Financial transformation opens up growth options
Financial transformation opens up growth options For personal use only A$M A$M Debt profile 120 100 80 60 40 20 15.9 0 2008 2009 2010 Strong balance sheet and low debt provide funding flexibility Note: St Barbara is not subject to the recently proposed Australian Minerals Resources Rent Tax Value fo
Slide 13: Our Business
For personal use only Our Business Value focused gold producer – 26 October 2010 12
Slide 14: Safe production - Start Safe, Stay Safe
Safe production - Start Safe, Stay Safe For personal use only Total Recordable Injury Frequency Rate 20 15 14.8 10 11.1 5 0 2009 2010 Improving safety performance Value focused gold producer – 26 October 2010 13
Slide 15: Leveraging growth from Leonora
Leveraging growth from Leonora For personal use only Mine life: 9+ years Ore Reserves: 10.2Mt @7.3g/t Au for 2.4Moz Mineral Resources: 27.7Mt @ 6.1g/t Au for 5.4Moz Cash Operating Cost: $A686/oz1 Highlights for Fiscal Year 2010 Gold production • Ore production from Gwalia mine continues to grow • Ne
Slide 16: The Gwalia mine – Our cornerstone project
The Gwalia mine – Our cornerstone project For personal use only Value focused gold producer – 26 October 2010 15
Slide 17: The Gwalia mine – Our cornerstone project
The Gwalia mine – Our cornerstone project For personal use only Value focused gold producer – 26 October 2010 16
Slide 18: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch For personal use only Value focused gold producer – 26 October 2010 17
Slide 19: Gwalia – Driving higher returns
Gwalia – Driving higher returns For personal use only Leonora Gold Production Gwalia Open Pit King of the Hills 300,000 250,000 200,000 Ounces 150,000 100,000 50,000 0 FY09 ActualFY10 Actual FY11 FY12 FY13 Forecast Forecast Forecast Value focused gold producer – 26 October 2010 18
Slide 20: King of the Hills - Leveraging Gwalia capital infrastructure
King of the Hills- Leveraging Gwalia capital infrastructure For personal use only Mine life: New pic required 5+ years Ore Reserves: 1.7Mt@4.3g/t Au for 230Koz Mineral Resources: 2.5Mt@5.3g/t Au for 418Koz Average Total Cost: A$ $1,020 - $1,050 /oz Highlights and Opportunities Gold production foreca
Slide 21: Southern Cross Operations – Generating cash flow
Southern Cross Operations – Generating cash flow For personal use only Mine life: [22+ months1] Ore Reserves: 5.4Mt @2.8g/t Au for 500koz Mineral Resources: 19.9Mt @ 3.5g/t Au for 2.3Moz Cash Operating Cost: A$883/oz2 Highlights and Opportunities Gold production • Positive cash flows for FY11&12 at
Slide 22: Investing in Discovery
For personal use only Investing in Discovery Value focused gold producer – 26 October 2010 21
Slide 23: Pursuing organic growth through discovery
Pursuing organic growth through discovery For personal use only A new team, a new exploration philosophy, a prospective land bank and available funds • Budget of A$15 to A$16M pa for next 3 years • Ten quality targets identified for drill testing in FY11 Value focused gold producer – 26 October 2010
Slide 24: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia(4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Oth
Slide 25: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Ot
Slide 26: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Value focused gold producer – 26 October 2010 25
Slide 27: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Value focused gold producer – 26 October 2010 26
Slide 28: Filling the project pipeline – East Lachlan
Filling the project pipeline – East Lachlan For personal use only East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Te
Slide 29: Value
For personal use only Value Value focused gold producer – 26 October 2010 28
Slide 30: Achieving value and scale
Achieving value and scale For personal use only The strategic focus for the next two years is to • Lower costs • Drive margins • Add value through discovery In the medium term, our strategic objective is to increase production to the rate of over 500,000 ounces of gold per annum by 2014, in order to
Slide 31: How we will execute our strategy
How we will execute our strategy For personal use only Target 500Koz Koz 500 Per Annum LOWER CASH OPERATING COSTS 400 100koz+ PROSPECTIVE TO 200koz PER ANNUM M&A Activity INVESTMENT CRITERIA Discovery MINIMUM IRR OF 15% 300 TARGET CONFIDENCE OF DEVELOPMENT 500Koz 231Koz PER ANNUM CONSENT 200 231Koz
Slide 32: Investment Proposition
For personal use only Investment Proposition Value focused gold producer – 26 October 2010 31
Slide 33: St Barbara has quality ore reserves – great value
St Barbara has quality ore reserves – great value For personal use only Koz g/t Au A$ Philippines/New Zealand USD Reserve and Reserve Grade Market Capitalisation per Reserve Ounce as at 30 June 2010 St Barbara has the largest Australian reserve base of its peers, and the highest grade Value focused
Slide 34: St Barbara – Long term, high cash margins
St Barbara – Long term, high cash margins For personal use only Value focused gold producer – 26 October 2010 33
Slide 35: St Barbara earnings leveraged to $A gold price
St Barbara earnings leveraged to $A gold price For personal use only A$/oz A$1,800 A$1,600 A$1,400 Philippines/New Zealand A$1,200 A$1,000 A$800 A$600 A$400 A$200 Source: Reuters daily close price A$0 USD Sep 2007 Dec 2007 Mar 2008 Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009 Mar 2
Slide 36: Strong, capable and growing
Strong, capable and growing For personal use only STRONG • Gwalia to deliver organic growth and lower costs • Financial strength provides flexibility for growth CAPABLE • Experienced Board & Executive team • Operational capability to deliver to guidance GROWING • Exploration drilling of defined targ
Slide 37: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement Significant gold intersections and geological interpretations contained in this report have been compiled by Mr. Phillip Uttley. Mr. Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full t
Slide 38: Appendices
For personal use only Appendices Value focused gold producer – 26 October 2010 37
Slide 39: Ore Reserves Statement as at June 2010
Ore Reserves Statement as at 30 June 2010 Notes For personal use only Category Proved Probable Total 1. The Ore Reserve estimates used a gold price of A$1,000/oz. Project Tonnes Gold Gold Tonnes Gold Gold Tonnes Gold Gold 2. All data is rounded to two significant figures. Region (kt) grade (k oz) (k
Slide 40: Mineral Resources Statement as at June 2010
Mineral Resources Statement as at 30 June 2010 For personal use only Category: Measured Indicated Inferred Total Notes Identified Mineral Resources have been estimated under the direction of Mr Region Contained Contained Contained Gold Contained Ben Bartlett (MAusIMM, MAIG) who qualifies as the Comp
Slide 41: Share consolidation details
Share consolidation details For personal use only The Company is planning three capital management initiatives: 1. A share consolidation of six existing shares for one new share, subject to shareholder approval; 2. Establishing a voluntary share sale facility and top-up facility for small shareholde
Slide 42: Board of Directors
Board of Directors For personal use only S J Colin Wise LL.B, FAICD, FAusIMM Timothy J Lehany B.E., MBA, MAusIMM Chairman – Non Executive Managing Director and Chief Executive Officer Mr Wise is an experienced corporate lawyer, consultant and Mr Lehany is a mining engineer with extensive operating c
Slide 43: Executive Management
Executive Management For personal use only Managing Director and Chief Executive Officer Executive General Manager Corporate Services/Company Secretary Tim is a mining engineer with extensive operating experience over the past twenty years with number of Ross has more than 24 years of experience in
Slide 44: Forward Guidance FY11-FY13
Forward Guidance FY11- 13 For personal use only GUIDANCE FY11 FY12 FY13 Gold production (koz) -Gwalia 145 - 160 190 - 210 190 - 210 - Southern Cross Operations 110 - 125 65 - 80 - - King of the Hills1 10 55 - 60 55 - 60 - TOTAL 265 - 295 305 - 350 240 - 270 Cash operating cost (A$/oz) - Gwalia 630 -
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