St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2011
34 slides from St. Barbara's conference presentation, Sep 20, 2011
Slide 1: Presentation by Tim Lehany, Managing Director and CEO
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 For personal use only www.stbarbara.com.au Presentation by Tim Lehany, Managing Director and CEO Attached is a presentation
Slide 2: Proven Performance, Increasing Returns
Proven Performance, Increasing Returns For personal use only Tim Lehany, Managing Director & CEO D Denver G Gold ld Forum, F September S t b 2011
Slide 3: Forward Statement
Forward Statement For personal use only This ppresentation has been p prepared p by y St Barbara Limited ((“Company”). p y) This p presentation has been p prepared p by y the Company p y based on The material contained in this presentation is for information purposes only. information available to i
Slide 4: One of Australia's largest gold companies
One of Australia’s largest gold companies - profitable, profitable cash generating generating, exploring For personal use only Stock Code SBM (ASX) ASX market capitalisation(2) A$674 million P Proven FY 11 performance f A$69 million illi NPAT FY12 production(1) 320,000-350,000 oz Net Cash(3) A$67 mi
Slide 5: Proven performance - translating reserves into operating cash flows
Proven performance - translating reserves into operating cash flows For personal use only RESERVES PRODUCTION CASH FLOW* +130% +55% +$123M 2756 117 258 166 1200 -6 FY 06 FY 11 FY 06 FY 11 2006 2011 koz koz A$M As at 30 June 2006 and 30 June 2011 Year to 30 June 2006 and 30 June 2011 Year to 30 June
Slide 6: Proven performance - growing NPAT and EPS
Proven performance – growing NPAT and EPS For personal use only NPAT* NPAT EPS* EPS +$50M +$0.12 54 A$0 35** A$0.35** A$0.17 A$0.05 4 FY 06 FY 11 FY 10 FY 11 FY 12 F A$M A$ Year to 30 June 2006 and 30 June 2011 * Underlying EPS * Underlying NPAT ** Factset FY12 Broker Consensus 5 Proven Performance,
Slide 7: Strong balance sheet - provides financial flexibility
Strong balance sheet - provides financial flexibility For personal use only • Strong cash position A$M Cash vs Debt • Investment in development 120 capital for King of the Hills 102 100 in FY11 79 80 • EExpected t d nett increase i iin 60 cash for FY12 40 • C Cash h reserves plusl access to 20 debt
Slide 8: Proven Operating Capability
For personal use only P Proven O Operating ti Capability C bilit Underground mining expertise 7 Proven Performance, Increasing Returns - September 2011
Slide 9: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only PRODUCTION GUIDANCE RANGE FY12 320 000 – 350,000 320,000 350 000 oz Leonora Operations Southern Cross Operations Ore Reserves: Ore Reserves: 11.2 Mt @ 7.0g/t Au for 2.5 Moz1,2 3.5 Mt @ 2.1g/t Au for 233 koz1 Mi
Slide 10: Leonora Operations - engine room for cash generation
Leonora Operations - engine room for cash generation For personal use only Gwalia Mine Mine life: 12+ months ((AT JUNE 2011)) Expect E t to t achieve hi sustainable t i bl gold ld production d ti in FY12 of 175,000 to 190,000 ounces p.a. Marvel Loch Mine Forecast cash cost in FY12 of A$610-640/o
Slide 11: Gwalia gold reserves increased to 2.0 Moz, open at depth
Gwalia gold reserves increased to 2.0 Moz, open at depth For personal use only Gold Contained Gwalia Deeps Tonnes Grade Gold Kt g/t Au koz Reserves 6,917 8.9 1,973 Resources 14,450 8.5 3,941 SBM UG Production 1,600Kt @ 6.1g/t Au (317Koz) 10 Proven Performance, Increasing Returns - September 2011
Slide 12: Gwalia - endowment and grade increase at depth
Gwalia – endowment and grade i increase att depth d th For personal use only oz/vm RESERVES - Ounces per Vertical Metre Grade g/t Au C 7000 20 u C ru 18 rr 6000 e r 16 n e tn 5000 Currently 14 lt y mining at l 1300mbs y 12 m 4000 im Limited n drilling data 10 i in 3000 n i 8 g n g 2000 6 a FY12 ta P
Slide 13: Gwalia - growing production, improving margins and returns as grade increases
Gwalia - growing production, improving margins and returns as grade increases For personal use only GROWING GWALIA PRODUCTION INCREASING GRADE DRIVES LOWER CASH OPERATING COSTS FOR GWALIA 175-190 1400 9 8.0-8.5 g/t Au 8 1200 6.3 g g/t Au 7 131 1000 6 109 138 765 800 5 109 610-640 600 4 3 400 2 200 1
Slide 14: Long life, high grade reserves
Long life, life high grade reserves For personal use only Reserve & Reserve Grade 5,000 7 6 4,000 5 3,000 4 3 2 000 2,000 2 1,000 1 0 0 Note: Based on most recently disclosed company filings as at 31 August 2011 13 Proven Performance, Increasing Returns - September 2011
Slide 15: Focus on Managing Costs
Focus on Managing Costs For personal use only $m Operating Costs 230 7 2 218 220 16 (3) 210 200 196 190 180 170 160 150 FY 10 Mine costs Mine costs Gold royalties Toll FY 11 - volume - price processing revenue 14 Proven Performance, Increasing Returns - September 2011
Slide 16: Pathways to Increase Value
For personal use only Pathways to I Increase Value V l 15 Proven Performance, Increasing Returns – September 2011
Slide 17: St Barbara - trading at a deep relative discount
St Barbara - trading t di att a deep d relative l ti discount di t For personal use only EV / FY12 EBITDA1,3 P/NAV4,5 17.8x 3.03x 1.99x 9.4x 8.7x 1 .32x 1 .29x 10x 6.7x 1.0 0x 0.9 9x 4x 1x 0x 7x 0.79xx 0.79xx 6.4 0.75xx 6.1 5.1xx 0.90 1.1 0.87 0.68xx 0.61x 4.4x 0.58x 3.9x 3.6x 3.3x 3.1x 3.1x 3.1x 2.
Slide 18: Investing in exploration for discoveries
Investing in exploration for discoveries For personal use only 515,000 , ounces of Indicated and Inferred Resources added in FY11 at Gwalia below 1,640 mbs for discovery cost of $16 per ounce INCREASING EXPLORATION FOCUS ON DRILLING TARGETS EXPENDITURE 22 $22M 8 $12M Drilling Salaries & Admin FY10 F
Slide 19: Drilling targets Australia-wide
Drilling targets Australia Australia-wide wide For personal use only • 4,500+ km2 of prospective land around Australia • 12 targets planned to be drilled in FY12* * subject to results 18 Proven Performance, Increasing Returns - September 2011
Slide 20: Investing exploration funds effectively and strategically
Investing exploration funds effectively and strategically For personal use only Discovery Pipeline Target Drill Drill Resource Delineation Targeting Testing Delineation Western Australia Gwalia Deeps Extension Tower Hill King of the Hills North Copperhead Frasers Marvel Loch near mine
Slide 21: Leveraging value at Leonora Operations in FY12
Leveraging value at Leonora Operations in FY12 For personal use only • Loweringg cost and improving p g productivity p y at Gwalia • Haulage optimisation pre‐ feasibility study due 2H FY12 • Procurement focus already saved A$10M in 2 years • Business improvement program underway • Expansion • Scopin
Slide 22: Actively looking to add value
Actively looking to add value For personal use only • The exploration team evaluates other companies: • Gold G ld discoveries di i • Advanced exploration • Project developments in Australia and SE Asia • Robust investment criteria applied • Key focus on valuing upside potential • Objective is to inc
Slide 23: Value in St Barbara today
Value in St Barbara today For personal use only Consensus fforecast* C t* ffor FY12 FY12: EPS 35 cents = 106% increase** Strong financial St fi i l position, iti $67M nett cash h plus l strong t cash h flows fl expected Gwalia cash costs to fall and margins increase with higher grades Active drillin
Slide 24: Competent persons statement
Competent persons statement For personal use only References to Mineral Resources and exploration results presented in this References to Ore Reserves presented in this document have been produced in document have been produced in accordance with The Australasian Code for accordance with The Austral
Slide 25: Proven Performance, Increasing Returns - Investor Relations Enquiries
Proven Performance Performance, Increasing Returns For personal use only Investor Relations Enquires: Ross Kennedy Executive General Manager Corporate Services E: ross ross.kennedy@stbarbara.com.au kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au
Slide 26: Supporting documents
Supporting documents For personal use only • Board off Directors • Executive Management • Mineral Resources Statement • Ore O Reserves R St Statement t t • Southern Cross Operation • Forward Guidance • Price Pi P Protection t ti • Leonora targets 25 Proven Performance, Increasing Returns - September
Slide 27: Board of Directors
Board of Directors St Barbara LIMITED Chairman — Non Executive Mr Wise is an experienced corporate lawyer, consultant and company director with significant expertise in the mining and exploration industry and resources, energy and corporate sectors. He spent 24 years with WMC, including 10 years as
Slide 28: Executive management
Executive management Managing Director and Chief Executive Officer Tim joined St Barbara in March 2009 and has extensive operating experience over the past 22 years with a number of mining companies, including Newcrest Mining and WMC. He is a mining engineer, having held operating, management and ex
Slide 29: Mineral Resources Statement as at June 2011
Mineral Resources* Statement as at 30 J June ne 2011 For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Notes Grade Gold Grade Gold Grade Gold Grade Gold Identified Mineral Resources
Slide 30: Ore Reserves Statement as at June 2011
Notes: •Cut‐off grade = 2.5g/t Au. •Data is rounded to thousands of tonnes and thousands of ounces. Differences in totals may occur due to rounding. Ore Reserves Statement* as at 30 June 2011 For personal use only Region Category Proved Probable Total Tonnes Gold grade Gold Tonnes Gold grade Gold To
Slide 31: Focus on returns from non-core, higher cost operations
Focus on returns from non-core, higher cost operations For personal use only Hedge Profile Hedge Profile koz King of the Hills A$/oz koz Southern Cross A$/oz 80 1,650 80 1,650 70 1,600 70 1,600 60 60 1,550 1,550 50 50 1,500 1,500 40 40 1,450 1,450 30 30 1,400 1,400 20 20 10 1,350 10 1,350 0 1,300 0
Slide 32: Southern Cross Operations generating positive cash flow
Southern Cross Operations generating ti positive iti cashh flow fl For personal use only Marvel Loch Mature Mat re operation generating strong positive cash flows Prospective land for discovery Cash flow protected by options 31 Proven Performance, Increasing Returns - September 2011
Slide 33: FY Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora L Leonora S’ h C S’thn Cross Gold koz 175 190 175‐190 55 60 55‐60 90 100 90‐100 320 350 320‐350 production Cash operating 1,170 $/oz 610‐640 710‐750 ‐ cost ‐1,220 Capex $M 55‐60* 20‐25 10‐15 85‐100 * Includes $12
Slide 34: Strong institutional share register, wide broker coverage
Strong institutional share register, wide id broker b k coverage For personal use only Significant Shareholders1 Broker Research Coverage Argonaut Securities Troy Irvin B illi Baillieu R Ch Ray Chantry t M&G Group 18.3% Franklin Resources 6.9% Bell Potter Peter Chapman Hunter Hall 6 7% 6.7% Citigrou