33 slides from St. Barbara's earnings presentation, Feb 19, 2020
Slide 1: Presentation on the December 2019 Half Year Report and webcast
ASX Release / 19 February 2020 For personal use only Presentation on the December 2019 Half Year Report and webcast Craig Jetson, Managing Director & CEO, will brief analysts and institutional investors on the December 2019 Half Year Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hour
Slide 2: December 2019 Half Year Presentation
CRAIG JETSON, MANAGING DIRECTOR & CEO For personal use only GARTH CAMPBELL‐COWAN, CHIEF FINANCIAL OFFICER / 19 February 2020 ASX:SBM December 2019 Half Year Presentation
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: Contents
Contents For personal use only • Safety • Financials • 1H FY20 Highlights • Growth initiatives • Operations • Conclusion 3 / December 2019 Half Year Presentation
Slide 5: Focus on Safety
Focus on Safety For personal use only Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks2 5.0 5.0 5.0 4.2 1.9 1.9 2.1 2.1 1.0 1.2 FY15 FY16 FY17 FY18 FY19 Q1 Q2 St Barbara WA Gold WA Metal FY20 FY20 Q2 FY20 • Total Recordable Injury Freq
Slide 6: 1H FY20 Key Achievements
1H FY20 Key Achievements For personal use only • Consolidated half‐year production of 182 koz of gold Operational • 1H FY20 AISC1 of A$1,391/oz performance • A$702/oz cash contribution2 • EBITDA margin of 47%1 Financial • Cash flow from operating activities of A$65 M (1H FY19: A$95 M) performance •
Slide 7: Consolidated Gold Production
Consolidated Gold Production For personal use only AISC (Consolidated) (A$/oz) 1,391 1H FY20 Production Highlights ‐ 1,158 899 883 1,008 Consolidated • Gold production of 182 koz @ AISC1 A$1,391/oz Production (Consolidated) • EBITDA margin1 of 47% (koz) 205 • FY20F guidance 370 to 400 koz 198 188 18
Slide 8: Gwalia Production and Cost Profile
Gwalia Production and Cost Profile For personal use only Mined Grade (g/t Au) 14.0 11.4 1H FY20 Production Highlights 11.1 10.8 7.9 • 80 koz @ AISC1 A$1,513/oz • EBITDA margin of 47% Reserve Grade2 6.4 g/t Au June 2019 • FY20F guidance 170 to 180 koz • Development and production Production anticipat
Slide 9: Gwalia Extension Project Update
Gwalia Extension Project Update For personal use only • Gwalia Extension Project (GEP) comprises a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 M with planned completion Q4 June FY201 • PAF crushing circuit on 1420 level and mixing and pumping on 1460 is complete and commenc
Slide 10: Simberi Production and Cost Profile
Simberi Production and Cost Profile For personal use only 1H FY20 Production Highlights AISC1 • 50 koz @ AISC A$1,717/oz (A$/oz) • EBITDA margin of 29% 1,717 • FY20F guidance 105 to 115 koz 1,132 1,107 1,216 1,010 Sulphide Project 71 72 70 • Updated Resources and 64 65 Reserves due Feb 2020 55 50 •
Slide 11: Atlantic Gold Production and Cost Profile
Atlantic Gold Production and Cost Profile For personal use only 1H FY20 Production Highlights AISC (A$/oz) • Record production for half 957 1,010 970 • 51 koz @ AISC A$887/oz 840 823 • EBITDA margin of 69% • FY20F guidance 95 to 105 koz 105 Production 29 95 (koz) 23 23 18 20 93 47 40 4 4 FY19 FY19 F
Slide 12: Atlantic Gold Reserve and Resource Development
Atlantic Gold Reserve and Resource Development For personal use only • Scope to expand production 0 5 10 km beyond existing 12 year reserve life1 • Expansion potential across all pits, with focus on targets along strike between Touquoy and Fifteen Mile Stream • The 149 Deposit was the first discover
Slide 13: 1H FY20 Key Financial Metrics
1H FY20 Key Financial Metrics For personal use only 35 1,2 Underlying NPAT ($ M) 64 77 69 2 Atlantic EBITDA margin % 47 2 Gwalia EBITDA margin % 56 57 29 2 Simberi EBITDA margin % 39 44 6 EPS (basic, cents) 11 16 1H20 4 Dividend 2H19 4 per share (cents) 4 1H19 1. Underlying, see page 3 Financial Rep
Slide 14: EBITDA and NPAT Profile
EBITDA and NPAT Profile For personal use only A$ M Underlying EBITDA A$ M 200 120 Underlying NPAT 150 80 148 100 127 130 77 64 40 50 35 0 0 1H FY19 2H FY19 1H FY20 1H FY19 2H FY19 1H FY20 A$ M A$ M EBITDA 120 NPAT 200 150 80 148 83 127 135 100 62 40 50 39 0 0 1H FY19 2H FY19 1H FY20 1H FY19 2H FY19
Slide 15: Key Changes to Underlying Profit 1H FY19 to 1H FY20
Key Changes to Underlying Profit 1H FY19 to 1H FY201 Lower profit before tax in 1H FY20 due to: For personal use only • o Lower production at Gwalia and Simberi o Higher depreciation and amortisation due to Atlantic Gold acquisition 58 ‐7 ‐45 112 A$ M ‐34 ‐5 ‐4 ‐26 49 1H19 Gross Profit ‐ Gross Profi
Slide 16: Segment Profit and Cash Contribution from Operations
Segment Profit and Cash Contribution from Operations For personal use only Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 A$M A$M 84 78 97 89 50 59 56 41 40 35 44 37 22 32 1H FY19 2H FY19 1H FY20 1H FY19 2H FY19 1H FY20 Leonora Simberi Atlantic Gold Leonora Simbe
Slide 17: 1H FY20 Application of Cash
1H FY20 Application of Cash For personal use only 352 A$M ‐238 ‐27 3 ‐61 ‐33 ‐19 ‐4 ‐2 ‐25 Receipts Op costs & Exploration Capex Investments Income tax Cash surplus Other Dividends Change in Finance movements cash balance costs Note: Cash surplus = cash flow from operating activities less cash used
Slide 18: Balance Sheet
Balance Sheet Cash balance at 31 December 2019 of A$79 M1, debt of A$138 M2 For personal use only • 1000 A$M Cash and debt Lease Liability (AASB 16) 800 480 Entitlement 600 Offer 400 410 Cash 343 200 137 161 79 0 Debt ‐1 ‐106 ‐32 ‐226 ‐200 ‐400 FY16 FY17 FY18 FY19 1H20 1. Cash balance comprises A$69
Slide 19: Interim dividend – 1H FY20
Interim dividend – 1H FY20 For personal use only Dividends Paid • Interim fully franked 3.0% dividend of A$0.04 per 2.1% 2.2% share Dividend 1.5% Yield1 (%) • Record date 4 March [Interim only] • Dividend Reinvestment Interim Plan1 at 1.0% discount to $0.04 5 day VWAP (Election date 5 March) Dividen
Slide 20: Exploration and Equity Investments
Exploration and Equity Investments For personal use only Gwalia, WA Moose River Corridor and Cochrane Hill, Canada, NS • Early stage studies on historical satellite pits, Greater Gwalia • Ongoing drilling at potential extensions to existing and Leonora Regional medium term targets planned pits and p
Slide 21: Gender Diversity
Gender Diversity For personal use only • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • Awarded Runner Up, Gender Diversity Leader in the Mining Journal’s 2019 International Awards • 2018 Winner of AMMA’s Australian Women in Resources A
Slide 22: Community and Sustainability Developments in H1 FY20
Community and Sustainability Developments in H1 FY20 • ACSI rated the Group as ‘Leading’ in the materials sector for its ESG For personal use only Reporting • St Barbara rated in the 2nd quintile in Macquarie’s 2019 ESG Ratings Survey • Atlantic Gold donation towards purchase of a mobile ultrasound
Slide 23: Conclusion
Conclusion For personal use only • Record half‐year production at Atlantic Gold offset lower operational performance from Gwalia and Simberi • NPAT A$39 M • A$79 M cash at bank1 with A$138 M debt2 • 4 cps fully franked interim dividend Focus for 2H FY20 • GEP due to be completed in April 2020 • Simb
Slide 24: Appendices
For personal use only Appendices 23 / December 2019 Half Year Presentation
Slide 25: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary For personal use only Production Summary Q4 Jun Year Q1 Sep Q1 Sep Q2 Dec 1H Guidance Consolidated FY19 FY 19 FY20 FY20 FY20 FY20 FY20 AG full quarter AG SBM attrib. St Barbara’s financial Qtr to Year to Qtr to Qtr to Qtr to 6 months to Year to year i
Slide 26: Strategy for the Next Years – Stronger for Longer
Strategy for the Next 5 Years – “Stronger for Longer” For personal use only 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
Slide 27: Growth Pipeline
Growth Pipeline For personal use only Atlantic Gold (Regional) Atlantic Gold (Moose River Corridor) Tabar Island Group KEY (Au, Au‐Cu) Canada Papua New Guinea Back Creek Australia Equity Investments Atlantic Gold Leonora Province (Beaver Dam) Atlantic Gold Greater Gwalia (Cochrane Hill) Peel Mining
Slide 28: Hedging Summary at February 2020
Hedging Summary at 19 February 2020 For personal use only Financial Volume Delivery Price $/oz Announced Year ounces (all monthly instalments) FY20 16,456 A$1,809 January to June 2020 26 Oct 2018 FY20 20,000 US$1,300 January to June 2020 10 Dec 2018 FY21 26,000 A$1,809 July to December 2020 26 Oct 2
Slide 29: Ore Reserves Summary as at June 2019 + Atlantic Gold
Ore Reserves Summary as at 30 June 2019 + Atlantic Gold For personal use only 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) 2,220 8.0 568 7,915 5.9 1,506 10,135 6.4 2,073 Tower Hill, (WA
Slide 30: Mineral Resources Summary at June 2019 + Atlantic Gold
Mineral Resources Summary at 30 June 2019 + Atlantic Gold For personal use only 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) 5,034 7.3
Slide 31: Competent Persons Statement
Competent Persons Statement Exploration Results For personal use only The information in this presentation that relates to Exploration Results for Simberi, Pinjin, Lake Wells, Back Creek and Horn Island is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institu
Slide 32: 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 33: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au 32 / December 2019 Half Year Presentation