St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (September 2010)
48 slides from St. Barbara's roadshow presentation, Sep 9, 2010
Slide 1: Presentation by the Managing Director and CEO to investors, fund managers and analysts
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au Presentation by the Managing Director and CEO to investors, fund managers and analysts We attach a cop
Slide 2: A Company Transformed
A Company Transformed Tim Lehany Managing Director & CEO International Roadshow Presentation to shareholders & investors United Kingdom, Canada and USA September 2010
Slide 3: Forward looking statements
Forward looking statements 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, securit
Slide 4: What we'll cover today
What we’ll cover today 1. INTRODUCING ST BARBARA 2. OUR BUSINESS 3. INVESTING IN DISCOVERY 4. GROWTH 5. INVESTMENT PROPOSITION A Company Transformed – September 2010 3
Slide 5: Introducing St Barbara
Introducing St Barbara A Company Transformed – September 2010 4
Slide 6: Gold focused, capable and growing
Gold focused, capable and growing Stock code: SBM Australian based producer 231Koz1 ASX market capitalisation: US$652M2 Ordinary shares: 1,953M Significant holders M&G Group 16.0% Franklin Templeton 6.0% Hunter Hall 5.1% Producing operations: 2 Exploration land bank: 6,000+ kms² Ore Reserves 15.7Mt@
Slide 7: Clear vision steering the course to success
Clear vision steering the course to success 4. 5. 6. 1. 2. 3. 1. Robert K Rae 2. Timothy J Lehany 3. S J Colin Wise B.Com (Hons), FAICD B.E., MBA, MAusIMM LL.B, FAICD, FAusIMM Non Executive Director Managing Director & Chief Executive Officer Chairman – Non Executive 4. Phillip C Lockyer 5. Barbara
Slide 8: Depth and diversity of skills delivering results
Depth and diversity of skills delivering results Ross Kennedy David Rose Tim Lehany Garth Campbell-Cowan Phil Uttley Executive General Manager Chief Operating Officer Managing Director Chief Financial Officer Executive General Corporate Services & & Chief Executive Officer Manager Discovery Company
Slide 9: Market guidance for FY10 delivered
Market guidance for FY10 delivered GUIDANCE Gold production (ozs) 231,018 Guidance: 205,000-240,000 205,000 240,000 Actual: 231,018 Cost per ounce (US$/oz) 703 Guidance: 663-730 663 730 Actual: 703 Leonora 611 Guidance: 561-623 561 623 Actual: 611 Southern Cross 786 Guidance: 748-828 748 828 Actual:
Slide 10: Growing gold production since 2005
Growing gold production since 2005 Ounces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2005 2006 2007 2008 2009 2010 Guidance Guidance 2011 2012 A Company Transformed – September 2010 9
Slide 11: Building our reserves and extending mine life
Building our reserves and extending mine life Contained Ounces 3,500 2,906 3,000 2,500 2,000 1,500 1,000 500 260 0 Ore Reserves Ore Reserves 2006 2007 2008 2009 2010 2005 2010 At 30 June 2010 A Company Transformed – September 2010 10
Slide 12: Financial transformation opens up growth options
Financial transformation opens up growth options US$M Net Assets US$M Debt profile 400 100 300 80 91M 200 60 40 100 20 0 0 $14M 2008 2009 2010 2008 2009 2010 Strong balance sheet and low debt provide funding flexibility Note: St Barbara is not subject to the recently proposed Australian Minerals Res
Slide 13: Our Business
Our Business A Company Transformed – September 2010 12
Slide 14: Safe production - Start Safe, Stay Safe
Safe production - Start Safe, Stay Safe Total Recordable Injury Frequency Rate 20 15 14.8 10 11.1 5 0 2009 2010 Improving safety performance A Company Transformed – September 2010 13
Slide 15: Leveraging growth from Leonora
Leveraging growth from Leonora Mine life: 9+ years Ore Reserves: 10.2Mt @7.3g/t Au for 2.4Moz Mineral Resources: 27.7Mt @ 6.1g/t Au for 5.4Moz Cash cost: $US610/oz1 Highlights for Fiscal Year 2010 Gold production • Ore production from Gwalia mine continues to grow 2009 83Koz • New areas for mining i
Slide 16: Gwalia – rich in gold mining history
Gwalia – rich in gold mining history 1983 1999 Lalor brothers purchase mine and Open pit finishes and underground open cut mining commences mining commences 1963 2002 Mine closes having Mine put on care and produced more than maintenance >2.5Moz over 67 years 1.3Moz produced 1983-2002 2005 1897 Mine
Slide 17: The new Gwalia mine – Our cornerstone project
The new Gwalia mine – Our cornerstone project A Company Transformed – September 2010 16
Slide 18: Gwalia – Drilling to increase ore reserves and mine life
Gwalia – Drilling to increase ore reserves and mine life A Company Transformed – September 2010 17
Slide 19: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch New diagram under development A Company Transformed – September 2010 18
Slide 20: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch A Company Transformed – September 2010 19
Slide 21: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch A Company Transformed – September 2010 20
Slide 22: Gwalia – Driving higher returns
Gwalia – Driving higher returns Leonora Gold Production Gwalia Cash Operating Costs Gwalia Open Pit King of the Hills 650 630 300000 610 250000 590 US$ per ounce 570 200000 550 Ounces 150000 530 100000 510 490 50000 470 0 450 FY09 Actual FY10 Actual FY11 FY12 FY13 FY09 Actual FY10 Actual FY11 FY12 F
Slide 23: King of the Hills - Leveraging Gwalia capital infrastructure
King of the Hills- Leveraging Gwalia capital infrastructure Mine life: New pic required 5+ years Ore Reserves: 1.6Mt@4.3g/t Au for230Koz Mineral Resources: 2.5Mt@5.3g/t Au for 418Koz Average total cost: ~US$907/oz Highlights and Opportunities Gold production forecast • Production commencing in June
Slide 24: Southern Cross Operations – Generating cash flow
Southern Cross Operations – Generating cash flow Mine life: 22+ months1 Ore Reserves: 5.4Mt @2.8g/t Au for 500koz Mineral Resources: 19.9Mt @ 3.5g/t Au for 2.3Moz Cash cost: US$786/oz2 Highlights and Opportunities Gold production • Positive cash flows for FY11&12 at current gold prices 2009 156Koz •
Slide 25: Investing in Discovery
Investing in Discovery A Company Transformed – September 2010 24
Slide 26: Growth through exploration success
Growth through exploration success A new team, a new exploration philosophy, a prospective land bank and available funds • Budget of US$14.3M pa for next 3 years • Aim for 2010-11 is to test a series of quality targets • Active acquisition search for advanced exploration projects and M&A opportuniti
Slide 27: Pursuing organic growth through discovery
Pursuing organic growth through discovery A Company Transformed – September 2010 26
Slide 28: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Thunderbox Corridor (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Other targets
Slide 29: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Thunderbox Corridor (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Other targets
Slide 30: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (Western Series) (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead A Company Transformed – September 2010 29
Slide 31: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (Western Series) (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead A Company Transformed – September 2010 30
Slide 32: Filling the project pipeline – East Lachlan
Filling the project pipeline – East Lachlan East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Testing porphyry copper
Slide 33: Filling the pipeline – East Lachlan (New South Wales)
Filling the pipeline – East Lachlan (New South Wales) East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Testing porphy
Slide 34: Growth
Growth A Company Transformed – September 2010 33
Slide 35: Achieving value and scale
Achieving value and scale Our strategic objective is to achieve production at the rate of over 500,000 ounces of gold per annum by 2014, through: • Operational effectiveness • Exploration success • M&A activity A Company Transformed – September 2010 34
Slide 36: Seizing M&A opportunities
Seizing M&A opportunities Target 500Koz Koz 500 Per Annum LOWER CASH OPERATING COSTS 400 100koz+ PROSPECTIVE TO 200koz PER ANNUM M&A Activity INVESTMENT CRITERIA Discovery MINIMUM IRR OF 15% 300 TARGET CONFIDENCE OF DEVELOPMENT 500Koz 231Koz CONSENT PER ANNUM 200 231Koz RESERVE OF 5+ YEARS; RESOURCE
Slide 37: Investment Proposition
Investment Proposition A Company Transformed – September 2010 36
Slide 38: St Barbara has quality ore reserves – great value
St Barbara has quality ore reserves – great value Koz g/t Au US$ ozs USD Reserve and Reserve Grade Market Capitalisation per Reserve Ounce as at 30 June 2010 A Company Transformed – September 2010 37
Slide 39: Strong, capable and growing
Strong, capable and growing STRONG • Gwalia to deliver organic growth and lower costs • Financial strength provides flexibility for growth CAPABLE • Experienced Board & Executive team • Operational capability to deliver to guidance GROWING • Exploration drilling of defined targets • Potential acquis
Slide 40: Competent Persons Statement
Competent Persons Statement Competent Persons Statement Significant gold intersections and geological interpretations contained in this report have been compiled by Mr. Phillip Uttley. Mr. Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full time employee of the co
Slide 41: Appendices
Appendices A Company Transformed – September 2010 40
Slide 42: Ore Reserves Statement as at 30 June 2010
Ore Reserves Statement as at 30 June 2010 Category Proved Probable Total Notes 1. The Ore Reserve estimates used a gold price of Project Tonne Gold Gold Tonnes Gold Gold Tonnes Gold Gold US$1890/oz. Region s grade (k oz) (kt) grade (koz) (kt) grade (koz) 2. All data is rounded to two significant fig
Slide 43: Mineral Resources Statement as at 30 June 2010
Mineral Resources Statement as at 30 June 2010 Category: Measured Indicated Inferred Total Notes Identified Mineral Resources have been estimated under the direction of Mr Region Contained Contained Contained Gold Contained Ben Bartlett (MAusIMM, MAIG) who qualifies as the Competent Person. Tonnes G
Slide 44: Share consolidation details
Share consolidation details The Company is planning three capital management initiatives: 1. A share consolidation of six existing shares for one new share, subject to shareholder approval; 2. Establishing a voluntary share sale facility and top-up facility for small shareholders, free from transact
Slide 45: Board of Directors
Board of Directors S J Colin Wise LL.B, FAICD, FAusIMM Chairman – Non Timothy J Lehany B.E., MBA, MAusIMM Managing Director Executive and Chief Executive Officer Mr Wise is an experienced corporate lawyer, consultant and Mr Lehany is a mining engineer with extensive operating company director with s
Slide 46: Executive Management
Executive Management Managing Director and Chief Executive Officer Executive General Manager Corporate Services/Company Secretary Tim is a mining engineer with extensive operating experience over the past twenty years with number of Ross has more than 24 years of experience in mining companies, incl
Slide 47: Gwalia – lowering unit costs and increasing margins
Gwalia – lowering unit costs and increasing margins 250 700 561-605 190-210 190-210 600 200 445-490 472-516 145-160 500 150 400 300 100 200 50 100 0 0 FY11 FY12 FY13 FY11 FY12 FY13 Production US$ Cash costs A Company Transformed – September 2010 46
Slide 48: Forward Guidance FY11-13
Forward Guidance FY11- 13 GUIDANCE FY11 FY12 FY13 Gold production (koz) -Gwalia 145 - 160 190 - 210 190 - 210 - SXO 110 - 125 65 - 80 - - King of the Hills1 10 50 - 60 50 - 60 - TOTAL 265 - 295 305 - 350 240 - 270 Cash operating cost (US$/oz) - Gwalia 561 - 605 445 - 490 472 - 516 - SXO 845 - 881 93