St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2019
60 slides from St. Barbara's conference presentation, Sep 16, 2019
Slide 1: Presentation to 2019 Denver Gold Forum
ASX Release / 16 September 2019 Presentation to 2019 Denver Gold Forum Bob Vassie, Managing Director and CEO, will present to the Denver Gold Forum in Colorado, USA, on Monday 16 September 2019. A webcast of the presentation will be available on the Gold Forum Americas website at www.goldforumameric
Slide 2: Denver Gold Forum 2019
Bob Vassie, Managing Director & CEO | 16-18 September 2019 Denver Gold Forum 2019 Ticker ASX: SBM ADR STBMY (5 ORD = 1 ADR)
Slide 3: Forward Statements
Forward Statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained in The Company estimates its Ore Reserves and Mineral Resources in accordance with The Australasian this presentation is for information purposes only. This presentation is not an off
Slide 4: Contents
Contents • Overview • Safety • FY19 Financial Highlights • Balance Sheet • Operations & Growth Projects o Atlantic Gold o Gwalia o Simberi • Exploration • Strategy • Conclusion Underground at Gwalia 3/ Denver Gold Forum 16-18 September 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Market Cap1 A$2.0 B @ A$2.91/sh (US $1.4 B) Shares1 696 M Liquidity2 9.5 M/day (1.4%) FY19 EPS3 A$0.27 (US$0.19) FY19 Total Dividend A$0.08 (US$0.06) Cash and cash deposits4 A$110 M (US$77 M) Debt9 A$112 M (US$79 M) Ore
Slide 6: St Barbara Safety Focus
St Barbara Safety Focus Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with 9.0 Western Australian Mining benchmarks3 6.0 1.9 2.0 5.0 5.0 1.6 4.1 1.1 2.1 2.1 1.2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 St Barbara WA Metal, WA Gold WA Metal, FY19 Underground Surface • The Tot
Slide 7: FY19 Financial Highlights
FY19 Financial Highlights Operational • FY19 production 362 koz @ AISC1 of A$1,080/oz (US$772/oz) excellence • Simberi record production and cash flow for FY19 • Continued successful Gwalia deep drilling and exploration • NPAT of A$144 M (US$103 M) Financial • FY19 operating cash contribution2 of A$
Slide 8: FY19 Key Financial Metrics
FY19 Key Financial Metrics 1,2 43 EBITDA margin (%) 51 50 2 56 Gwalia EBITDA margin (%) 62 64 2 42 Simberi EBITDA margin (%) 44 36 1,2 27 EPS (basic, A$ cents) 39 32 Dividend per share 8 12 (A$ cents) 6 FY19 2.2 Dividend yield (%) 3 3.0 FY18 2.1 FY17 1. Underlying, see page 3 Financial Report 2. Non
Slide 9: Australian Gold Peer Comparison – NPAT
Australian Gold Peer Comparison – NPAT1 • St Barbara ranks strongly with Australian gold peers on NPAT … Bubble size = FY19 gold production 300 250 200 NPAT1 (A$M) RRL EVN 150 SBM SAR 100 NST OGC 50 RSG 0 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 8/ Denver Gold Forum 16-18 September 2019
Slide 10: Australian Gold Peer Comparison – ROME
Australian Gold Peer Comparison – ROME1 • … and on return on market value Bubble size = FY19 gold production 10% 8% NPAT / Market Cap.1 (%) SBM RRL 6% OGC 4% SAR 2% RSG NST EVN 0% 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 1. Return on Market Value of Equity. Australian gold peers (market
Slide 11: Balance Sheet
Balance Sheet US$M 800 625 600 337 US$548 M 400 purchase price for Atlantic Gold (net balance US$77 M) 200 254 288 59 102 124 0 -140 limit Undrawn debt facility -169 -200 -268 Separate A$112 M (C$100 M) debt facility acquired with -400 Atlantic Gold on FY15 FY16 FY17 FY18 FY19 19 July 2019 Debt Cash
Slide 12: Paying Fully Franked Dividends
Paying Fully Franked Dividends 3.0% 2.1% 2.2% Annual Yield1 (%) • Dividend payments recommenced in FY17 Dividends Paid • FY19 total dividend of A$0.08 (US$0.06) per share to be paid 25 September 2019 Cumulative dividend (A$) • Cumulative dividend payments of A$0.26 (US$0.20) since FY17 A$0.26 • Divi
Slide 13: Atlantic Gold acquisition completed 19 July 2019
Atlantic Gold acquisition completed 19 July 2019 Touquoy pit lookout, Atlantic Gold Operations. 12 / Denver Gold Forum 16-18 September 2019
Slide 14: Transformational Acquisition
Transformational Acquisition Consistent with our Strategy "Stronger for Longer" • Substantial, low cost production from an established mining jurisdiction Diversify production base • CY19 forecast production of 92 – 98 koz at an AISC of C$695 – 755/oz (A$740 – 803/oz)1, with pathway to 200+ kozpa
Slide 15: Atlantic Gold Production Profile
Atlantic Gold Production Profile Central processing facility Processing plant commissioned in October 2017 Touquoy Commercial production declared in March 2018 _____ Production of 93 koz in FY19 Beaver Dam Beaver Dam ore will be trucked to Touquoy processing plant once Touquoy reserves are m
Slide 16: Atlantic Gold Production and Cost Profile
Atlantic Gold Production and Cost Profile Milled Grade (g/t Au) 1.54 1.44 1.28 1.37 1.21 1.16 FY18 • Commercial production declared Reserve Grade2 1.1 g/t Au June 2019 March 2018 AISC1 FY19 actual (US$/oz) 682 707 602 503 • Production 93 koz • AISC1 A$862/oz (US$616/oz) Production 28 (koz) 22 23 23
Slide 17: Atlantic Gold Timeline and Expansion Plan
Atlantic Gold Timeline and Expansion Plan CY19 CY20 CY21 CY22 CY23 Touquoy (63.1%)1 (Commercial production declared in March 2018) Producing Beaver Dam (100%) Environmental application Productionand currently construction planned from 2022 Production currently planned from 2022 (37km from Touquoy) F
Slide 18: Atlantic Gold Reserve and Resource Development
Atlantic Gold Reserve and Resource Development • Scope to expand production beyond 0 5 10 km existing 12 year reserve life1 • Expansion potential across all pits, with focus on targets along strike between Touquoy and Fifteen Mile Stream • The 149 Deposit was the first discovery of the Corridor Regi
Slide 19: Gwalia
Gwalia Aerial view of Leonora Operations 18 / Denver Gold Forum 16-18 September 2019
Slide 20: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile Mined Grade 12.5 (g/t Au) 11.1 9.3 10.7 8.8 8.2 8.4 8.9 8.0 6.9 6.3 5.7 Reserve Grade 6.4 g/t Au June 2019 Production 267 265 268 (koz) 248 220 210 214 AISC 200 185 183 (US$) 863 882 131 109 700 735 570 592 622 83 Jumbo underground at Gwalia FY09 FY10 FY11 F
Slide 21: Gwalia Animation
Gwalia Animation Animation of Gwalia underground mine available at https://youtu.be/D3uo4FKCi2I 20 / Denver Gold Forum 16-18 September 2019
Slide 22: Gwalia Extension Project Update | On Schedule
Gwalia Extension Project Update | On Schedule • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 million (US$82 M) with planned completion in Q3 March FY202 • A$100 million (US$75 M) spent on project to date • PAF
Slide 23: Gwalia | Total material moved
Gwalia | Total material moved Gwalia total material moved (kt) GEP to liberate trucking capacity 267 260 262 • Excavation of the approx. 11 m high x 10 m 252 256 26 wide chambers at 1,420 and 1,460 mbs for 19 20 32 the PAF circuit commenced in Q1 Sep FY17 41 106 69 82 • Raise-boring of the four 5-me
Slide 24: Gwalia Extension Project | Ventilation Plan
Gwalia Extension Project | Ventilation Plan 23 / Denver Gold Forum 16-18 September 2019 For details refer to commentary in ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’
Slide 25: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16K, GWDD16L and GWDD16M intersected the mine sequence at 2,000 - 2,100 mbs • Parent hole GWDD23 and daughter holes GWDD23A, GWDD23B and GWDD23C targeted the orebody at 2,100 - 2,200 mbs • Significant results include1: o 14.5 m at
Slide 26: Exploration | Gwalia Regional Targets
Exploration | Gwalia Regional Targets 25 / Denver Gold Forum 16-18 September 2019 For full explanation and results refer to results table in ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’
Slide 27: Simberi
Simberi Jason Eade, Manager Fixed Plant Maintenance, viewing the Ropecon Simberi Operations, July 2019. 26 / Denver Gold Forum 16-18 September 2019
Slide 28: Simberi Production, Cost and Grade Profile
Simberi Production, Cost and Grade Profile Mined Grade (g/t Au) 1.43 1.23 1.26 1.25 1.13 1.16 1.00 Reserve Grade 1.3 g/t Au June 2019 AISC1 (US$) 2,111 135 142 Production 125 (koz) 110 116 110 1,218 941 895 958 80 828 831 44 FY14 FY15 FY16 FY17 FY18 FY19 FY20F Simberi processing plant. Photo by Anna
Slide 29: Simberi Sulphide | Potential Long Life Mine Extension
Simberi Sulphide | Potential Long Life Mine Extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 2.4 g/t Au, 3.3 Moz Sulphide Resource @ 1.6 g/t Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 30: Exploration | Sorowar Pit, Simberi Island
Exploration | Sorowar Pit, Simberi Island 29 / Denver Gold Forum 16-18 September 2019 For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’.
Slide 31: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements Note: Atlantic Gold mine life b
Slide 32: Exploration | FY20 Guidance – US$14 to US$20 million
Exploration | FY20 Guidance – US$14 to US$20 million US$5 – US$6 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling US$4 – US$5 million Pinjin, Lake Wells and Back Creek • Geophysics/aircore drilling of identified targets US$6 – US$8 million PNG • Simberi Oxides/Sulphides and Porphyry • Ne
Slide 33: Exploration Activities
Exploration Activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 32 / Denver Gold Forum 16-18 September 2019
Slide 34: 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 35: Growth Pipeline
Growth Pipeline Atlantic Gold KEY (Regional) Canada Tabar Island Group Atlantic Gold Papua New Guinea (Au, Au-Cu) (Beaver Dam) Australia Atlantic Gold Equity Investments Back Creek (Cochrane Hill) Peel Mining Atlantic Gold Greater Gwalia (16%) (Fifteen Mile Stream) Catalyst Metals Atlantic Gold Pinj
Slide 36: Conclusion
Conclusion • Current operations continue to perform well, with record production and cash flow from Simberi in FY19 • Atlantic Gold acquisition consistent with strategic objectives • FY19 NPAT of A$144 M (US$103 M) • Total FY19 dividends of A$0.08 (US$0.06) per share • Significant drilling results a
Slide 37: Questions?
Questions? Simberi truck fleet, February 2019. Photo by Elvis Karon. 36 / Denver Gold Forum 16-18 September 2019
Slide 38: Appendices
Appendices Water sampling at Leonora 37 / Denver Gold Forum 16-18 September 2019
Slide 39: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY19 FY191 FY20 St Barbara’s financial year Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June Year to 30 June 2019 Yea
Slide 40: Atlantic Gold Operating Data
Atlantic Gold Operating Data Q1 March Q2 June Q3 September Q4 December Q1 March CY 2019 CY 2018 CY 2018 CY 2018 CY 2018 CY 2018 CY 2019 Guidance Tonnes milled (kt) 188 567 581 541 2,108 528 Gold head grade (g/t Au) 1.53 1.28 1.54 1.37 1.41 1.21 Recovery (%) 94.9 95.2 95.5 94.7 94.9 95.1 Gold produce
Slide 41: Atlantic Gold Exploration
Atlantic Gold Exploration • Atlantic Gold has 21 exploration projects in Nova Scotia, with >2,200km2 of exploration tenements • Key exploration targets are near current deposits, the Moose River corridor program and south-west region • Limited drilling has occurred to date, planning now to increase
Slide 42: Gwalia Deeps | 1620 – 1700 Lode Schematic
Gwalia Deeps | 1620 – 1700 Lode Schematic 41 / Denver Gold Forum 16-18 September 2019
Slide 43: Exploration | Sorowar Pit, Simberi Island
Exploration | Sorowar Pit, Simberi Island Sorowar Pit Drilling results continue to be positive, indicating significant additional sulphide and oxide mineralisation is present Best intersections include (all results downhole): 185SRDH008: • 16 m at 2.25 g/t Au from 210 m 150SRDH031: • 17 m at 3.66 g/
Slide 44: Ore Reserves Summary as at 30 June 2019 + Atlantic Gold
Ore Reserves Summary as at 30 June 2019 + Atlantic Gold 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) - - - 2,572 3.7 306
Slide 45: Mineral Resources Summary at 30 June 2019 + Atlantic Gold
Mineral Resources Summary at 30 June 2019 + Atlantic Gold 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 1,183 17,527 6.0 3,39
Slide 46: Reserves and Resources as at 30 June 2019
Reserves and Resources as at 30 June 2019 Gwalia Reserves Ore Reserves (Moz) 5.9 • Increased by net 174 koz after depletion 3.9 1.9 • Lower average grade 7.5 to 6.4 g/t Au 1.4 1.4 Gwalia Resources 0.3 0.3 0.3 0.3 • Decreased by net 50 koz 1.9 2.1 • Lower average grade 6.5 to 6.3 g/t Au FY18 FY19 Gwa
Slide 47: Gwalia | Lowest Expected Mined Depth
Gwalia | Lowest Expected Mined Depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20F FY21F FY22F 1000 1200 1100 1220 Mineral Resources deepest mineralised intersection 1400 1300 Ore Reserves 1380 1420 1600 1500 1500 1540 1580 1620 1800 1660 1700 1
Slide 48: Gwalia | Depth of Ore Reserves
Gwalia | Depth of Ore Reserves 2.5 2.0 Ore Reserves At end of year 1.5 (Moz) 1.0 1.9 Moz 2.1 Moz 1.9 Moz 2.1 Moz Reserves 1.6 Moz 1.8 Moz 0.5 0.0 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 30 Jun 2019 0 Maximum Depth 500 Resources of Ore Reserves (mbs) 1000 1500 mbs 1500 mbs 1540 mb
Slide 49: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic Performance & Corporate Governance Statement • Core values and Code of Conduct • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Available
Slide 50: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • Representation of women on the board at 33%1 • Representation of women in leadership roles at 29%2 •
Slide 51: Hedging Summary at 16 September 2019
Hedging Summary at 16 September 2019 Financial Year Volume Price $/oz Delivery Announced ounces (all monthly instalments) FY20 27,280 A$1,750 September to December 2019 7 & 19 Feb 2018 and (22,720 of initial 50,000 ounces delivered year to date since 1 July 2019) 7 Mar 2018 FY20 24,000 A$1,809 Janua
Slide 52: American Depositary Receipt Information (ADR: STBMY)
American Depositary Receipt Information (ADR: STBMY) American Depositary Receipt Information (ADR: STBMY) Ticker STBMY • St Barbara established an American Depositary Receipt code (ADR) programme in 1994 with The Bank of New York Type Sponsored Level 1 ADR (now BNY Mellon) as depositary. CUSIP 85227
Slide 53: Institutional Share Register
Institutional Share Register Not analysed 8% Australia Institutional 39% Non 88% Institutional 4% USA 31% UK 10% Other 12% Not analysed 8% Data as at 15 August 2019 52 / Denver Gold Forum 16-18 September 2019
Slide 54: Substantial Shareholders and Broker Coverage
Substantial Shareholders and Broker Coverage Substantial Shareholders 1 Broker Research Coverage Van Eck Associates Corp. 12.2% Argonaut James Wilson Canaccord Reg Spencer Institutional Shareholders 2 88% Citi Trent Allen Shares on issue 696M Credit Suisse Mike Slifirski GMR David Radclyffe American
Slide 55: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014. Appointed Chairman July 2015. Appointed July 2014 Mr Netscher is an experienced international mining executive with extensive Mr Vassie is a mining engineer with over 30 ye
Slide 56: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer Appointed July 2014 Joined 2006 Mr Vassie is a mining engineer with over 30 years’ international mining Mr Campbell-Cowan is a Chartered Accountant with 30 years’ experience industry experienc
Slide 57: Group Structure
Group Structure MD & CEO Bob Vassie President CFO Company Americas Garth Campbell- Secretary Maryse Cowan Rowan Cole Belanger GM GM GM GM GM GM SVP Leonora Simberi Atlantic Gold Finance & HR & HSEC Exploration Americas Operations Operations Operations Procurement 56 / Denver Gold Forum 16-18 Septemb
Slide 58: 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 59: Non-IFRS Measures
Non-IFRS Measures 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 assist management, invest
Slide 60: 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