28 slides from St. Barbara's earnings presentation, Feb 25, 2011
Slide 1: Presentation by Chief Financial Officer
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 For personal use only Presentation by Garth Campbell-Cowan, Chief Financial Officer We attach a copy o
Slide 2: Delivering Profitability: December 2010 Half Year Results
For personal use only Delivering Profitability December 2010 Half Year Results Garth Campbell-Cowan Chief Financial Officer Macquarie Bank Presentation 25 February, 2011 1
Slide 3: Forward statements
Forward statements For personal use only 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 relati
Slide 4: Strong H1 2010 profit
Strong H1 2010 profit For personal use only Revenue $172.9M +26% NPAT $41.5M +$40.7M Underlying NPAT $28.7M +$30.9M Cash flow – Operations $57.0M +129% Cash on hand $96.0M Total debt $12.5M
Slide 5: Record Gold Production
Record Gold Production For personal use only GOLD PRODUCTION (HALF ON HALF) +9% 126,000 124,161 124,000 122,000 120,000 118,000 117,080 116,000 113,938 114,000 112,000 110,000 108,000 Ounces H1 10 H2 10 H1 11
Slide 6: Building a high performance business
Building a high performance business For personal use only BUSINESS IMPROVEMENT INITIATIVES • Driving business margins • Systems improvement program underway • Productivity improvement program underway • Procurement function in place
Slide 7: Profitability increasing
Profitability increasing For personal use only UNDERLYING NPAT A step towards meeting the Company’s $28.7M commitment to 35,000 28,724 shareholders to lift 30,000 25,000 profitability, build on 20,000 16,728 our financial credibility 15,000 10,000 and create value” 5,000 -2,181 0 TIM LEHANY -5,000 M
Slide 8: Results summary
Results summary For personal use only CONSOLIDATED (6 Month interim period) H1 11 H1 10 $’000 $’000 Sales revenue 172,950 137,567 EBITDA (including significant items) 67,146 30,217 EBIT (including significant items) 40,483 3,297 Reported net profit after tax for the year 41,492 803 Total significant
Slide 9: Key drivers of underlying NPAT
Key drivers of underlying NPAT For personal use only Key Drivers of Improvement in Underlying NPAT 40.0 35.0 24.2 30.0 0.7 28.7 4.3 (2.9) 3.9 25.0 20.0 (10.2) 15.0 10.0 10.9 5.0 0.0 -5.0 (2.2) -10.0 Dec 2009 Gold Sales - Gold Sales - Mine Corporate Exploration Interest Other Dec 2010 volume price op
Slide 10: Key drivers of mining costs
Key drivers of mining costs For personal use only Movements in Mining Costs 120.0 3.0 1.3 106.3 110.0 8.1 96.1 (2.2) 100.0 90.0 80.0 70.0 60.0 50.0 H1 10 Mine costs - Mine costs - Gold royalties Toll processing H1 11 volume price revenue
Slide 11: Significant items
Significant items For personal use only SIGNIFICANT ITEMS H1 11 H1 10 $’000 $’000 Profit on sale of Tarmoola processing plant 1,164 - Unrealised gain on derivatives 9,641 - Proceeds from sale of tenement rights 1,963 - Gain on sale of investments - 2,724 Discount on buy-back of convertible notes - 2
Slide 12: Depreciation and amortisation
Depreciation and amortisation For personal use only TOTAL DEPRECIATION AND 1H 11 1H 10 1H 11 1H 10 AMORTISATION $’000 $’000 $/oz $/oz Leonora 15,840 13,671 271 269 Southern Cross 10,539 11,288 161 179 Other 284 1,961 n/a n/a Total 26,663 26,920 Note: The higher depreciation and amortisation charge i
Slide 13: Mixed operational performance
Mixed operational performance For personal use only OUT PERFORMED UNDER PERFORMED CASH COST GUIDANCE $950-$990/oz CASH COST GUIDANCE $630-$680/0z (from mid-point of $970) (from mid-point of $655) -19% +27% SOUTHERN CROSS LEONORA $1,200 $1,000 950-990 832 $1,000 $800 820 630-680 $800 $600 $600 $400 $
Slide 14: Gwalia performance issues addressed
Gwalia performance issues addressed For personal use only Processing performed well Required tonnes were hauled Operational issues, which have since been addressed, resulted in lower grade Lower grade resulted in lower production and higher unit costs Increased ore grade to underpin higher productio
Slide 15: EBITDA to NPAT
EBITDA to NPAT For personal use only UNDERLYING 1H 11 1H 10 ($’000) ($’000) EBITDA 54,378 27,233 Depreciation & Amortisation (26,663) (26,920) Interest Revenue 3,048 1,757 Interest Expense (2,039) (4,251) Income Tax Expense - - NPAT 28,724 (2,181)
Slide 16: Net cash flow composition
Net cash flow composition For personal use only 1H 11 1H 10 ($’000) ($’000) EBITDA - underlying 54,378 27,233 Operating cash flows below EBITDA: Interest received 2,376 1,244 Interest paid (166) (3,084) Other finance costs (573) (924) Net working capital 288 236 Other non-cash items 648 170 Net oper
Slide 17: Increasing operating cash flows
Increasing operating cash flows For personal use only OPERATING CASH FLOW (HALF ON HALF) $M +129% 60 57 52 50 40 30 25 20 10 0 H1 10 H2 10 H1 11
Slide 18: Hedge maturity profile
Hedge maturity profile For personal use only King of the Hills Hedge Profile 80 Cap 1,615 60 A$/oz Floor kozs 40 1,425 20 0 1,235 Q4 - FY11 FY12 FY13 FY14 H1 - FY15
Slide 19: Investing in development
Investing in development For personal use only CAPITAL EXPENDITURE $61.2M
Slide 20: Investing in discovery
Investing in discovery For personal use only Exploration projects EXPLORATION EXPENDITURE compete for capital +$15M pa
Slide 21: Strong balance sheet = flexibility
Strong balance sheet = flexibility For personal use only DEBT TO EQUITY RATIO DEBT REDUCED BY -1.5% $3.4M 5 120 Cash vs Debt 4.6% 102 100 96 4 3.1% 80 3 60 2 40 1 16 13 20 0 0 Jun 10 Dec 10 Jun 10 Dec 10
Slide 22: Delivering shareholder value
Delivering shareholder value For personal use only UNDERLYING EARNINGS NET TANGIBLE ASSETS PER SHARE PER SHARE 8.82¢ $1.24 10.00 8.82 1.3 1.26 1.24 8.00 5.68 1.2 6.00 4.00 1.1 1.08 2.00 1 - (2.00) (0.84) 0.9 H1 2010 H2 2010 H1 2011 Dec 09 Jun 10 Dec 10
Slide 23: Capital Management
Capital Management For personal use only CAPITAL MANAGMENT • Cash flows are expected to grow • Organic growth to be funded internally • Significant tax losses available ($330M as at 30 June 2010) • Capital management strategy reviewed by the Board annually
Slide 24: Holding full year guidance
Holding full year guidance For personal use only PRODUCTION COST CAPEX • Full year gold production guidance confirmed at lower end of 265-295Koz range • Improved H2 performance at Gwalia underpinned by increasing grades • Any impact from recent rain events in the gold fields on Gwalia production wil
Slide 25: Holding full year guidance
Holding full year guidance For personal use only PRODUCTION COST CAPEX • Full year Gwalia cash cost guidance confirmed at upper end of $630-$680/oz range • Gwalia production and cash cost in H2 improves as a result of the increased grades 24
Slide 26: Holding full year guidance
Holding full year guidance For personal use only PRODUCTION COST CAPEX • Full year CAPEX confirmed at upper end of $65- $75M guidance range • Projects have commenced to extend mine life at Southern Cross Operations which may require further investment 25
Slide 27: Forward looking objectives
Forward looking objectives For personal use only • Delivering full year guidance • Delivering superior business performance through – Driving business margins – Systems improvement program – Productivity improvement program – Procurement function • Company’s growth strategy remains unchanged
Slide 28: Investor Relations Enquiries
For personal use only Investor Relations Enquiries to: Ross Kennedy Executive General Corporate Services Xian Davies Senior Investor Relations Advisor T: +61 3 8660 1900 E: xian.davies@stbarbara.com.au 27