St. Barbara Ltd. · ASX:SBM
St. Barbara — Sydney Mining Club (February 2017)
56 slides from St. Barbara's conference presentation, Feb 2, 2017
Slide 1: Presentation to Sydney Mining Club
ASX Release / 2 February 2017 Presentation to Sydney Mining Club Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Sydney Mining Club today. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Relations Mr Tim Duncan Hinton & Associates +61 3 9600 1979
Slide 2: Sydney Mining Club Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 2 February 2017 Sydney Mining Club Managing Director & CEO Presentation
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: Outline
Outline • Introduction • Company Overview • The Turnaround Story • Gwalia 105 years young • Exploration & Growth • Gold is fun St Barbara Leonora Operations: Overall winners for the second year running in CMEWA Underground Mine An open pit at Emergency Simberi Response Operation, Papua New Guinea Co
Slide 5: Bob Vassie - Introduction
Bob Vassie - Introduction L: Directors and management site visit to Simberi, June 2016. L to R: Garth Campbell Cowan (CFO), David Moroney (Director), Bob Vassie (MD&CEO), Tim Richards (General Manager Simberi Operations), Kerry Gleeson ( Director) R: 1 Mile deep at Gwalia , December 2016. L to R: Ko
Slide 6: … and Bob on annual leave …
… and Bob on annual leave … Variety Club Queensland 2016 Bash 5 / Sydney Mining Club 2 February 2017
Slide 7: St Barbara's history
St Barbara’s history 2006 Name changed to 2008 St Barbara Ltd Gwalia commissioned 2005 Leonora and Southern Cross acquired from Sons of Gwalia 2011 administrators King of the Hills & Meekatharra sold commissioned Gold production, Meekatharra, WA 2012 Allied Gold Ltd acquired 1991 Inc. Simberi and Go
Slide 8: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production • Shares on issue 497 M • FY16 387 koz @ AISC4 A$933/oz • Market Cap2 A$1,159 M • FY17F3 360 koz @ AISC A$990/oz • ADR OTC code STBMY • Ore Reserves June 2016 4.0 Moz 1 • Mineral Resources June 2016 9.1 Moz 1 S
Slide 9: New MD & CEO July 2014 – decisions, decisions…
New MD & CEO July 2014 – decisions, decisions…. FY14 cash movement1 Assessment 140 -71 Simberi ˃ make profitable or stop -39 Gold Ridge ˃ stabilize, minimize spend, divest -21 -42 Corporate ˃ ‘right size’ A$ million - Included redundancies $3M, corporate royalties $9M -55 Exploration ˃ reduce spend,
Slide 10: Record production & costs for the Group
Record production & costs for the Group AISC1 1,340 (A$/oz) 1,007 933 Production (koz) 377 387 368 9 46 50 110 70 80 45 267 248 215 FY14 FY15 FY16 Gwalia Simberi King of the Hills Gold Ridge 9/ Sydney Mining Club 2 February 2017 1. Non IFRS measure, refer slide in appendix
Slide 11: St Barbara share price vs US$ gold and XGD
St Barbara share price vs US$ gold and XGD - % change 3000% Gwalia Top performing stock in the ASX 200 in FY20162 A rich history with a bright future Joined ASX 200 2500% Top performing stock in the ASX 300 in CY20151 2000% SBM 1875% Joined ASX 300 1500% 1000% Sold Gold Ridge Simberi cash 500% posit
Slide 12: FY16 Financial Summary
FY16 Financial Summary FY16 FY15 Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost1 A$/oz 933 1,007 Result Statutory profit after tax A$M 169 40 Underlying net profit after tax 1 A$M 127 42 Cash flow Cash flows from operating activities A$M 243 113 Debt repayments2 A$M
Slide 13: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (A$/oz) A$0 Resolute A$200 St Barbara Oceana Gold A$400 Evolution A$600 Saracen Regis A$800 Bubble size = estimated A$1,000 production rate Northern Star (koz p.a.) A$1,200 0% 5% 10% 15% 20% 25% 30% FCF Yield (FCF/EV) Source: Bell Potte
Slide 14: Balance sheet positioned for growth
Balance sheet positioned for growth A$M Net Debt / Net Cash1 $31 million 50 A$M Net Cash 0 -15 -50 -92 -100 -134 -150 -199 -200 -243 -250 -270 -311 -312 -300 -320 -350 FY15 FY15 FY15 FY15 FY16 FY16 FY16 FY16 FY17 FY17 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec 13 / Sydney
Slide 15: Continued safety success
Continued safety success Total Recordable Injury Frequency Rate1 Safety 9.0 • Record FY16 TRIFR of 2.1 • Record safety performance of 6.0 1.8 TRIFR1 in H1 FY17 5.0 4.1 • Overall winners for the second year running in CMEWA Underground 2.1 1.8 Mine Emergency Response Competition2 FY 12 FY 13 FY 14 FY
Slide 16: Gender Diversity
Gender Diversity • The overall pay equity gap at St Barbara reduced from 43% in 2007 to 16% in 2016 (compared to 23% nationally and 16% for the mining industry1) • Nil gender pay gap in ‘like-for-like’ roles2 • Bob Vassie, MD & CEO, appointed in 2014 as one of 32 CEO Ambassadors of the Workplace Gen
Slide 17: Gwalia: A rich history with a bright future
Gwalia A rich history with a bright future 16 / Sydney Mining Club 2 February 2017
Slide 18: Gwalia - one of Australia's most historic mines
Gwalia- one of Australia’s most historic mines 1896 - Welsh syndicate discovers the Gwalia Reef. 1897 - Herbert Hoover buys mine for Bewick Moreing 1929 - Hoover becomes 31st President of USA 1963 - Mine closes 4 days before Christmas having produced more than 2.5 Moz over 67 years. 1983 - Lalor Bro
Slide 19: Exploration: Gwalia
Exploration: Gwalia For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 18 / Sydney Mining Club 2 February 2017
Slide 20: Gwalia Deeps Exploration – Northern Extension
Gwalia Deeps Exploration – Northern Extension For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 19 / Sydney Mining Club 2 February 2017
Slide 21: Record production driven by productivity gains
Record production driven by productivity gains Mined Grade 9.3 (g/t Au) 8.8 8.9 8.2 8.4 6.9 Reserve Grade 6.3 5.7 8.3 g/t Au June 2016 FY16 continued improvement • FY 16 production of 267 koz 267 265 Production 255 (FY15 248 koz) (koz) 248 • AISC of A$783/oz 214 (FY15 A$841/oz) 185 183 AISC (A$/oz)
Slide 22: FY16 vs FY15 improvement with key innovations
FY16 vs FY15 8% year on year improvement with 3 key innovations Ore passes Allows bogger to work constantly, independent of ore trucks, removes ore from fired stopes more rapidly, allowing paste-filling and adjacent stopes to be fired earlier Continuous Remote Tele-bogging (CY16) At critical times b
Slide 23: St Barbara vs Global Gold Miners – AISC
St Barbara vs Global Gold Miners – Q4 June 2016 US$ AISC 1,400 Q4 June 2016 Global gold production – AISC 53 companies, 196 mines 1,200 1,000 St Barbara US$716/oz AISC (inc. Gwalia US$644/oz AISC) 800 AISC (US$/oz) 600 400 200 0 0 2 4 6 8 10 Asia Africa Australia North America South America Cumulati
Slide 24: Gwalia Extension Project
Gwalia Extension Project Conceptual illustration only, studies underway will determine final design 23 / Sydney Mining Club 2 February 2017
Slide 25: Gwalia Extension Project – PAF Isometric Fixed Plant View
Gwalia Extension Project – PAF Isometric Fixed Plant View 24 / Sydney Mining Club 2 February 2017 Conceptual illustration only, studies underway will determine final design
Slide 26: PAF Isometric View
PAF Isometric View 1 2 1 Bogging Location 1 2 Bogging Location 2 Current Paste Infrastructure Proposed PAF Fixed Plant Waste Capacity 25 / Sydney Mining Club 2 February 2017 Conceptual illustration only, studies underway will determine final design
Slide 27: Simberi: Reliable cash producer | Strategic Review complete
Simberi Reliable cash producer | Strategic Review complete 26 / Sydney Mining Club 2 February 2017
Slide 28: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (A$/oz) 2,300 1,464 1,293 9,898 Mining Consecutive years of >50% improvement 6,293 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Mining 4,151 (kt) 110 80 Production (koz) 44 FY14 FY15 FY16 Production Mining Minin
Slide 29: Simberi FY14, FY15 and FY16
Simberi FY14, FY15 and FY16 SIMBERI MINE OUTPUT SIMBERI GOLD PRODUCTION 9,899 kt 110 koz 80 koz 6,293 kt 4,151 kt 44 koz FY14 FY15 FY16 FY14 FY15 FY16 SIMBERI MILL THROUGHPUT AISC1 (A$/oz) 3,315 kt 2,300 2,670 kt 1,464 1,293 1,713 kt FY14 FY15 FY16 FY14 FY15 FY16 28 / Sydney Mining Club 2 February 2
Slide 30: Simberi strategic review complete
Simberi strategic review complete • St Barbara to retain and operate Simberi Operations1 • Option and Farm-in Agreement (joint venture) with Newcrest for joint copper-gold porphyry exploration on nearby islands • Focused exploration underway to improve the economics of possible future sulphide expan
Slide 31: Exploration: St Barbara's organic growth opportunity
Exploration St Barbara’s organic growth opportunity 30 / Sydney Mining Club 2 February 2017
Slide 32: Exploration – greenfields projects - summary
Exploration – greenfields projects - summary • Tatau Island, PNG • Pinjin, WA • Greater Gwalia, WA For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 31 / Sydney Mining Club 2 February 2017
Slide 33: Exploration: PNG – Tatau Island
Exploration: PNG – Tatau Island Right – drilling at Monun, Simberi, October 2015. 32 / Sydney Mining Club 2 February 2017 For details refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’
Slide 34: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 For full explanation and results refer to ASX release 19 October 2016 ‘Quarterly Report September 2016’ 33 / Sydney Mining Club 2 February 2017
Slide 35: Seismic Exploration campaign
Seismic Exploration campaign Greater Gwalia Province in FY17+ • Use sound waves reflecting off mineral • 1H FY17 calibration and focus on Gwalia to formations to explore Greater Gwalia gain a greater understanding of deposit • Used successfully by other WA Gold • 2H FY17+ exploration of Greater Gwal
Slide 36: Gold is Fun!
Gold is Fun! … whether at Leonora … … or Simberi … 35 / Sydney Mining Club 2 February 2017
Slide 37: The size of Gold
The size of Gold As at December 2015 1 Million Ounce Bar (a model!) 36 / Sydney Mining Club 2 February 2017
Slide 38: Rush: Australia's 21st Century Gold Industry
Australian Gold Mining in context “Rush: Australia’s 21st Century Gold Industry” • Tells the story of Australia’s world- leading gold industry and the ongoing contribution it makes to Australia's economic and social • Published by Minerals Council of Australia and the Chamber of Minerals and Energy
Slide 39: Australian Gold Industry
Australian Gold Industry 38 / Sydney Mining Club 2 February 2017
Slide 40: Global Gold Reserves
Global Gold Reserves 39 / Sydney Mining Club 2 February 2017 http://bit.ly/mcagoldbook
Slide 41: Gold Exploration
Gold Exploration 40 / Sydney Mining Club 2 February 2017 http://bit.ly/mcagoldbook
Slide 42: Commodity prices still well below peaks…
Commodity prices still well below peaks… Index 2014/15 = 100 250 200 150 100 50 0 commodity prices base metals prices bulk commodities Source: Reserve Bank of Australia, Index of Commodity Prices, July 2016, Table I2, released on 2 August 2016 41 / Sydney Mining Club 2 February 2017
Slide 43: But resources share of exports rising…
But resources share of exports rising… % 70 60 50 40 30 20 10 0 Rural Resource Manufacturers Services Source: Reserve Bank of Australia, International Trade and Balance of Payments Statistics, Table I1 to March 2016. 42 / Sydney Mining Club 2 February 2017
Slide 44: Value of resources exports and employment rising…
Value of resources exports and employment rising… 300 240 250 200 200 160 Employment '000 Exports A$B 150 120 100 80 50 40 0 0 Employment (LHS) Exports (RHS) Source: Australian Bureau of Statistics, Cat No. 6291 Labour Force, Australia, Detailed, Quarterly; Department of Industry, Innovation and Sci
Slide 45: Conclusion
Conclusion Pinjin, WA 44 / Sydney Mining Club 2 February 2017
Slide 46: Appendices
Appendices Gwalia processing plant, Leonora WA 45 / Sydney Mining Club 2 February 2017
Slide 47: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY16 FY16 FY17 FY17 FY173 Production Gwalia oz 65,098 267,166 67,118 70,925 255 to 265 koz (previously 245 to 265 koz1) King of the Hills4 oz - 9,112 - - - Simberi oz 26,935 110,286 25
Slide 48: Ore Reserves Summary as at 30 June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194 9,407 1.3 381 14,094 1
Slide 49: Mineral Resources Summary as at 30 June 2016
Mineral Resources Summary as at 30 June 2016 Project Measured Indicated Inferred Total Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574 489 3.3 51 5,093 3.8
Slide 50: Strong institutional share register
Strong institutional share register Gwalia Shareholding Structure A rich history with a bright future Not analysed Institutional USA 36% 10% 84% Australia Non 25% Institutional 6% UK 13% Other 20% Non Institutional 6% Analysis and geographic spread of shareholders as at 12 Jan 2017 49 / Sydney Minin
Slide 51: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Significant Shareholders 1 Research Coverage Van Eck Associates 16% Argonaut James Wilson M&G Investment Mgt 8% Canaccord Reg Spencer Vinva Investment Mgt 5% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocking Institutional Shareholders 2 84% Globa
Slide 52: 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 Mr Netscher is an experienced international years international mining industry m
Slide 53: Executive Leadership Team
Executive Leadership Team Bob Vassie Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 years with Rio Tinto
Slide 54: 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 55: 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 56: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 55 / Sydney Mining Club 2 February 2017