St. Barbara Ltd. · ASX:SBM
St. Barbara — Q2 FY2020 Earnings Presentation
41 slides from St. Barbara's earnings presentation, Jan 22, 2020
Slide 1: Presentation on Q2 December FY20 Quarterly Report and audio webcast
ASX Release / 22 January 2020 Presentation on Q2 December FY20 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q2 December FY20 Quarterly Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours) on Wednesday 2
Slide 2: Q2 December FY20 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 22 January 2020 ASX:SBM Q2 December FY20 Quarterly 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: Contents
Contents • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices 3 / Q2 December FY20 Quarterly Presentation
Slide 5: Highlights Q2 December FY20
Highlights Q2 December FY20 • 94 koz at AISC2 of A$1,364/oz (Q1: 88 koz at A$1,421/oz1) Operational • Atlantic Gold record quarter production performance • Leonora Operations 2.5 million ounces under St Barbara ownership • Simberi Operations 1.0 million ounces since operations commenced • Operationa
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with 5.0 5.0 5.0 Western Australian Mining benchmarks3 4.2 1.9 1.9 2.1 2.1 1.2 1.0 FY15 FY16 FY17 FY18 FY19 Q1 Q2 St Barbara WA Gold WA Metal FY20 FY20 Q2 FY20 • The Total Recordable Injury Frequency Rate (TRIFR,
Slide 7: Consolidated Q2 December FY20 Results
Consolidated Q2 December FY20 Results AISC Q2 FY20 AISC1 (A$/oz) 1,421 1,364 • Consolidated A$1,364/oz 1,175 1,053 1,073 (Q1: A$1,421/oz2) • Gwalia A$1,471/oz (Q1: A$1,559/oz) Gold Production • Simberi A$1,851/oz (Q1: A$1,603/oz) (koz) • Atlantic A$823/oz (Q1: A$970/oz) 112 108 109 23 20 88 94 23 Q2
Slide 8: Gwalia Q2 December FY20 Results
Gwalia Q2 December FY20 Results AISC (A$/oz) 1,559 1,471 1,230 1,081 1,016 Q2 FY20 Production FY19 average $1,027/oz • 42,022 oz (Q1: 38,153 oz) Mined grade (g/t Au) • AISC1 A$1,471/oz (Q1: A$1,559/oz) 11.7 10.4 10.0 7.8 8.0 • Mined grade of 8.0 g/t Au Reserve grade FY19 7.5 g/t Au (Q1: 7.8 g/t Au)
Slide 9: Gwalia Production and Cost Profile
Gwalia Production and Cost Profile AISC (A$/oz) FY20 guidance revised 1,5052 Delayed completion of final raise 841 783 785 802 1,027 bore impacts forecast development rate Mining sequence now returning to Production (koz) higher grade areas at the end of the 267 265 268 financial year 248 • Producti
Slide 10: Gwalia Total material moved
Gwalia Total material moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 262 267 267 • Excavation of the approx. 11 m high x 260 256 4 10 m wide chambers at 1,420 and 20 32 1,460 mbs for the PAF circuit 98 82 106 115 commenced in Q1 Sep FY17 78 • Raise‐boring of the four 5‐met
Slide 11: Gwalia Extension Project Update – Completion in Q4
Gwalia Extension Project Update – Completion in Q4 • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • PAF crushing circuit on 1420 level and mixing and pumping on 1460 is complete and commenced operation during Q2 December FY20 •
Slide 12: Simberi Q2 December FY20 Results
Simberi Q2 December FY20 Results AISC (A$/oz) 1,603 1,851 Q2 FY20 Production 1,146 1,229 1,203 • 23,070 oz (Q1: 27,061 oz) FY19 average $1,162/oz • AISC1 A$1,851/oz (Q1: A$1,603/oz) Milled grade • Milled grade lower (Q2: 1.08 g/t Au; Q1: 1.19 (g/t Au) 1.64 1.83 1.68 g/t Au), with the combined impact
Slide 13: Atlantic Gold Q2 December FY20 Results
Atlantic Gold Q2 December FY20 Results AISC (A$/oz) 1,010 970 Q2 FY20 production 957 840 823 • Record 29,067 oz (Q1: 22,355 oz)1 • AISC2 A$823/oz (C$741/oz) (Q1:A$970/oz; C$879/oz) Production • Mill throughput increased (Q2: 637 kt, Q1: 29.1 (koz) 577 kt) as a result of investments in plant 22.5 22.
Slide 14: Cash Balance
Cash Balance A$M 1000 890 480 800 Entitle‐ ment 600 Offer A$780 (net Atlantic proceeds) Gold Purchase Q1 movement net of: Q2 movement net of: 28 400 25 $19 M dividends $24 M tax 410 382 $14 M growth capex $15 M growth capex 357 Q3 movement net of: Q4 movement net of: $10 M exploration $13 M explorat
Slide 15: Exploration | Key Developments
Exploration | Key Developments Gwalia, WA South West Nova Scotia Regional Program • Finalisation of deeps campaign, early stage studies on • Pleasantfield ‐ First drill results in the region find anomalous historical satellite pits, Greater Gwalia and gold over 1 km strike Leonora Regional medium te
Slide 16: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 15 / Q2 December FY20 Quarterly Presentation
Slide 17: Exploration | Fifteen Mile Stream, Nova Scotia, Canada
Exploration | Fifteen Mile Stream, Nova Scotia, Canada 149 Deposit: Drilling to confirm potential Fifteen Mile Stream satellite pit. Results include: o 56 m @ 0.86 g/t Au from 121 m (FMS‐19‐481) o 16 m @ 1.03 g/t Au from 27 m (FMS‐19‐486) o 12 m @ 0.53 g/t Au from 117 m (FMS‐19‐486) o 19 m @ 0.99 g/
Slide 18: Exploration | Pleasantfield, Nova Scotia, Canada
Exploration | Pleasantfield, Nova Scotia, Canada Pleasantfield: First drill results in South West tenements, following up 2013 Atlantic Gold drilling and geophysical survey, 7 deep holes (for 741 m) and 29 shallow holes (for 638 m, only 2 results received so far). Results include: PFRC‐19‐001: o 3 m
Slide 19: 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 20: Growth Pipeline
Growth Pipeline 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 Atlantic Gold Atlantic
Slide 21: Conclusion
Conclusion • Record Atlantic quarterly production a combination of increased grade and improvements in operating performance from a maturing workforce and business improvement program • Gwalia mining and processing maintained in ventilation constrained environment, GEP completion due Q4 June FY20 –
Slide 22: Appendices
Appendices 21 / Q2 December FY20 Quarterly Presentation
Slide 23: Diversity and Sustainability Developments in Q2 FY20
Diversity and Sustainability Developments in Q2 FY20 $50,000 donation to Bushfire appeals • $25,000 to Red Cross, $25,000 to Salvation Army Annual Report plus Company will match employee donations Integrated suite of ESG reporting rating annual reporting Corporate Sustainability • St Barbara rated i
Slide 24: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q1 Sep Q2 Dec 1H Guidance Consolidated FY19 FY 19 FY20 FY20 FY20 FY20 FY20 AG full quarter AG SBM attrib. St Barbara’s financial Qtr to Year to Qtr to Qtr to Qtr to 6 months to Year to year is 1 July to 30 30 Jun
Slide 25: Consolidated FY20 guidance
Consolidated FY20 guidance AISC (A$/oz) 907 1,080 1,375 FY20 Consolidated Guidance 891 • Production 370 to 400 koz Production (previously 380‐420 koz) (koz) 381 403 385 • AISC1 A$1,330/oz to A$1,420/oz 362 (previously A$1,240 to A$1,330/oz) 116 135 100 142 • Sustaining capex A$79 to A$88 M 110 (prev
Slide 26: Exploration | FY20 Guidance – A$31 to A$41 million
Exploration | FY20 Guidance – A$31 to A$41 million A$7 – A$9 million Leonora A$8 – A$12 million PNG • Shift in focus from Gwalia Deep Drilling to region and • Simberi Oxides/Sulphides and Porphyry Greater Gwalia A$11 – 13 million Atlantic Gold Canada A$5 – A$7 million Pinjin, Lake Wells & Back • Moo
Slide 27: Exploration | Gwalia Deep Drilling, WA
Exploration | Gwalia Deep Drilling, WA For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 26 / Q2 December FY20 Quarterly Presentation
Slide 28: Exploration | Gwalia Deeps, WA
Exploration | Gwalia Deeps, WA For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 27 / Q2 December FY20 Quarterly Presentation
Slide 29: Exploration | Greater Gwalia & Leonora Regional, WA
Exploration | Greater Gwalia & Leonora Regional, WA For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 28 / Q2 December FY20 Quarterly Presentation
Slide 30: Exploration | Pinjin - Green Dam and Mulgabbie Trend South, WA
Exploration | Pinjin ‐ Green Dam and Mulgabbie Trend South, WA For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 29 / Q2 December FY20 Quarterly Presentation
Slide 31: Exploration | Back Creek, NSW
Exploration | Back Creek, NSW For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 30 / Q2 December FY20 Quarterly Presentation
Slide 32: 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 33: Exploration | Fifteen Mile Stream, Nova Scotia, Canada
Exploration | Fifteen Mile Stream, Nova Scotia, Canada For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 32 / Q2 December FY20 Quarterly Presentation
Slide 34: Touquoy Tailings Management Facility (TMF)
Touquoy Tailings Management Facility (TMF) Construction: • Type of TMF: Downstream raise • Rock dam with clay core and 2 filter layers • Water Management: tailings pond, effluent treatment plant (ETP), polishing pond and engineered wetland Metrics: • Elevation: 125 masl • Current wall height: 19 m •
Slide 35: Touquoy TMF - Governance
Touquoy TMF ‐ Governance 2018 Average water quality in Scraggy • Engineer of Record & Independent Tailings Lake (mixing zone) vs CCME FAL Review Board in place guideline andLeonora WHO drinking water o A dam safety management x2 annual dam guidelines Shire (ug/L) safety inspections and a dam safety
Slide 36: Hedging Summary at 22 January 2020
Hedging Summary at 22 January 2020 Financial Volume Delivery Price $/oz Announced Year ounces (all monthly instalments) FY20 20,000 A$1,809 January and June 2020 26 Oct 2018 FY20 20,173 US$1,300 January and June 2020 10 Dec 2018 FY21 26,000 A$1,809 July and December 2020 26 Oct 2018 FY21 26,000 US$1
Slide 37: Ore Reserves Summary as at 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 38: Mineral Resources Summary at 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 39: Non-IFRS Measures and Scheduled Announcements
Non‐IFRS Measures and Scheduled Announcements 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
Slide 40: 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 41: 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 40 / Q2 December FY20 Quarterly Presentation