St. Barbara Ltd. · ASX:SBM
St. Barbara — Macquarie Australia Conference 2019
53 slides from St. Barbara's conference presentation, May 1, 2019
Slide 1: Presentation to Macquarie Securities Australia Conference
ASX Release / 1 May 2019 Presentation to Macquarie Securities Australia Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending the Macquarie Securities Australia Conference in Sydney today. The presentation includes an update on cost infor
Slide 2: Macquarie Australia Conference 2019
BOB VASSIE, MANAGING DIRECTOR & CEO 1 May 2019 ASX: SBM Macquarie Australia Conference 2019
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 • Overview • Safety • Highlights • Operations & Growth • Exploration • Strategy • Conclusion Environment team members, Jonathon Mountford and Ben Elliott conduct an environmental survey, Leonora. 3/ Macquarie Australia Conference 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Papua Simberi Market cap1 A$1.7B @ A$3.22/sh New Guinea Shares1 526 M Liquidity2 5.4 M/day (1.0%) 1H FY19 EPS3 A$0.16 1H FY19 DPS A$0.04 Dividend yield4 0.8% Australia Leonora Cash and term deposits5 A$382 M (Gwalia min
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 Q1 Q2 Q3 St Barbara WA Gold WA Metal, WA Metal, FY19 FY19 FY19 Q3 FY19 Surface Underground • No recordabl
Slide 7: 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 8: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Australia Greater Catalyst Gwalia Metals Peel Gwalia Mining GMX 16% 18%. Aust. Gwalia Potash Extension Gwalia Prodigy Duketon Tower Mine Gold Mining Hill 10% Au, EJV2 12% Inorganic growth Evaluating exploration, projec
Slide 9: Strong margins & liquidity, actively growing, well positioned
Strong margins & liquidity, actively growing, well positioned • FY19F guidance1 of 370 koz at AISC2 of A$1,088 Operational • Simberi setting new operational records excellence • Continued successful Gwalia deep drilling and exploration • Operational cash contribution3 of $226 M year to date Financia
Slide 10: Dividends – recommenced in FY17
Dividends – recommenced in FY17 Dividends Paid 2.9% $0.22 • Dividend payments $0.18 recommenced in FY17 Annual Yield1 2.2% Cumulative dividend (%) (A$) • Fully franked FY19 interim dividend of A$0.04 per share $0.10 paid 27 March 2019 $0.06 • Cumulative dividend $0.08 $0.06 payments of A$0.22 Divide
Slide 11: Consolidated Q3 FY19 quarter
Consolidated Q3 FY19 quarter AISC (A$/oz) 1,108 1,098 Q3 FY19 Production 982 919 • Consolidated 88 koz (Q2: 89 koz) 812 • Gwalia 54 koz (Q2: 53 koz) • Simberi 34 koz (Q2: 36 koz) Production (koz) 119 Q3 FY19 AISC1 99 • Consolidated A$1,098/oz (Q2: A$1,108/oz) 35 89 88 86 • Gwalia A$1,016/oz (Q2: A$1
Slide 12: Balance Sheet
Balance Sheet Cash balance at 31 March 2019 of A$382M , no debt1 A$M Cash and debt 500 400 382 300 343 200 100 161 137 Cash 77 0 -1 Debt -100 -200 -226 -300 -347 -400 FY15 FY16 FY17 FY18 Q3 FY19 1. Cash balance comprises $247 M cash, $135 M term deposits (maturing between July 2019 and January 2020)
Slide 13: Increasing cash balance
Increasing cash balance A$M 25 7 7 382 350 357 343 82 Q3 movement net of: $19 M growth capex 261 Q2 movement net of: $14 M dividends $46 M tax $4 M tax Q1 movement net of: $13 M growth capex $28 M dividends Q4 movement net of: $2 M investments $11 M growth capex $7 M tax $6 M tax $10 M growth capex
Slide 14: Cash Generation and Usage
Cash Generation and Usage 120 105 100 79 79 76 Operational cash contribution 80 71 60 Net cash movement for qtr 40 82 Corp. costs & royalties, 20 46 explr. & working cap. 25 A$M 0 7 7 Strategic investments -7 -14 -16 -10 -28 -20 -2 -4 -4 -7 -3 -46 -4 -19 Leonora - growth capital -4 -6 -40 -11 -9 -4
Slide 15: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade 12.5 (g/t Au) 10.7 10.5 8.9 9.3 8.4 Reserve Grade3 7.5 g/t Au June 2018 Production (koz) AISC2 267 265 268 (A$/oz) 248 235 to 240 214 940 990 841 783 785 802 Q3 YTD 170 @ $969 Loader underground at Gwalia. FY 14 FY 15 FY 16 FY 17 FY 18 FY 19F 1 1. FY19F
Slide 16: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/fw91T7KFIQ4 15 / Macquarie Australia Conference 2019
Slide 17: 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 with planned completion in Q2 December FY202 • A$80 million spent on project to date • PAF crushing circuit
Slide 18: Gwalia - Total Material Moved
Gwalia - Total Material Moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 267 252 260 256 • Excavation of the approx. 11 m high x 10 m wide 26 19 20 chambers at 1,420 and 1,460 mbs for the PAF 32 41 circuit commenced in Q1 Sep FY17 192 69 82 16 78 • Raise-boring of the four 5
Slide 19: Gwalia Mass Extraction (GMX)
Gwalia Mass Extraction (GMX) • Feasibility Study results announced 22 March 2019 • An optimised trucking case is the preferred option based on risk and return-on-capital assessments • Three main alternative haulage methods were reviewed: • Continue trucking (the base case, plus two sub-options with
Slide 20: Gwalia – future indicative production profile
Gwalia – future indicative production profile Gwalia – future indicative production profile1 • H1 FY20 ventilation constrained until GEP is complete • H2 FY20 production will compete with GMX development Production (koz) • FY21 and FY22 production outlook based on building to, 240 but not yet achiev
Slide 21: Gwalia production and AISC
Gwalia production and AISC Gwalia production and AISC • The outcome of the GMX FS and revised production profile was released at the earliest opportunity in March 2019 and is summarised on the previous 1,180 1,120 slide. 990 AISC 940 • Work on corresponding FY20 cost information is continuing as par
Slide 22: Exploration | Gwalia
Exploration | Gwalia • Gwalia deeps drilling continues to return significant • Near mine drilling at Jessie Alma has recently been results completed, with results pending. Visual interpretation • Results for GWDD16K are pending of core indicates drilling intersected mineralisation For full explanati
Slide 23: Simberi production and cost profile
Simberi production and cost profile AISC2 2,300 (A$/oz) 1,464 1,293 1,187 1,273 1,068 130 135 Production to (koz) 135 116 110 Q3 YTD 106 80 @ $1,146 44 FY14 FY15 FY16 FY17 FY18 FY19F 1 Aerial Rope Conveyor or ‘Ropecon’ at Simberi, PNG. Photo: Shane Beattie 1. FY19F AISC is midpoint of guidance, rele
Slide 24: Simberi – continues to deliver
Simberi – continues to deliver • Cash contribution1 since the November 2016 decision to retain the asset is A$203 million • Operation has continued to set new records Quarterly cash contribution from Simberi A$M Decision to retain 34 Average since Q3 FY17 = $23 M 24 24 23 23 23 19 20 20 12 12 10 9 8
Slide 25: 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 @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at
Slide 26: 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 27: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 26 / Macquarie Australia Conference 2019
Slide 28: Mine Life Extension
Mine Life Extension Life of Mine Extensions Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (Oxide) FY16 2018 FY17 2020 FY18 2021 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements 27 / Macquarie Australia Conferenc
Slide 29: 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 30: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) 29 / Macquarie Australia Conference 2019 For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’
Slide 31: 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 40%1 • Representation of women in leadership roles at 28%2 •
Slide 32: Community
Community Leonora sponsorships Simberi initiatives • Netball WA sponsorship with Gold Industry Group • The Fred Hollows Foundation. Works toward eliminating avoidable blindness. • Clontarf Foundation. Uses football as a vehicle to improve the education, discipline, life skills, self-esteem and emplo
Slide 33: Conclusion
Conclusion • Operations continue to perform well • GMX Feasibility Study results indicates trucking as the preferred option • Successful drilling at Gwalia Deeps and regionally • Continued positive Simberi Sulphide drilling results • Debt free, $382 M cash and term deposits1 • Well positioned for in
Slide 34: Appendices
Appendices Boats for Exploration logistics, Tatau Island, PNG. Mt Banesa, in background. 33 / Macquarie Australia Conference 2019
Slide 35: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, 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 1 July to Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June 2019 30 June 2018 30 Sep 2018 31 Dec 201
Slide 36: 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 further Gwalia 3D Tar
Slide 37: 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 38: Hedging Summary at 30 April 2019
Hedging Summary at 30 April 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) FY19 18,000 A$1,750 February and June 2019 7 & 19 Feb 2018 and 7 Mar 2018 (82,000 of initial 100,000 ounces delivered year to date since 1 July 2018) FY20 50,000 A$1,750 July and Dec
Slide 39: 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’ 38 / Macquarie Australia Conference 2019
Slide 40: Gwalia Extension Project
Gwalia Extension Project For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 39 / Macquarie Australia Conference 2019
Slide 41: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 40 / Macquarie Australia Conference 2019
Slide 42: 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 FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 Mineral Resources 1400 deepest mineralised intersection Ore Reserves 1380 1420 1500 1500 1600 1540 1580 1620 1700 1800 1740
Slide 43: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves Maximum Depth of Ore Reserves (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 500 1000 1500 mbs 1500 mbs 1540 mbs 1500 1580 mbs 1620 mbs 1540 mbs 1740 mbs 2000 1940 mbs 2140 mbs 2140 mbs Ore Reserves and Mineral Resources Statements as at 30 June 20
Slide 44: 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 45: 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 46: 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 47: 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 48: Shareholders and Broker Coverage
Shareholders and Broker Coverage Shareholders1 Broker Research Coverage Argonaut James Wilson Not analysed 8% Canaccord Reg Spencer Institutional 88% Citi Trent Allen Non Institutional Credit Suisse Mike Slifirski 4% Deutsche Bank TBA GMR David Radclyffe Goldman Sachs Matthew Frydman JP Morgan Mathe
Slide 49: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years’ international mining industry Mr Netscher is an experienced international
Slide 50: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary General Manager Human Resources and Health, Safety, Appointed 2014 Joined 2006 Joined 2010 Environment and Community Mr Vassie is a mining engineer with
Slide 51: 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 52: 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, inves
Slide 53: 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