St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Mining Forum 2019
51 slides from St. Barbara's conference presentation, Aug 5, 2019
Slide 1: Presentation to Diggers and Dealers Mining Forum
ASX Release / 5 August 2019 Presentation to Diggers and Dealers Mining Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1900
Slide 2: Diggers & Dealers Mining Forum
BOB VASSIE, MANAGING DIRECTOR & CEO / 5-7 August 2019 Diggers & Dealers Mining Forum
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 • Highlights • Safety • Operations & Growth • Exploration • Strategy • Conclusion Environmental survey, Leonora. Gwalia mine - June 2018 3/ Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Market Cap1 A$2.5B @ A$3.65/sh Shares1 696 M Liquidity2 8.4 M/day (1.2%) 1H FY19 EPS3 A$0.16 1H FY19 Dividend A$0.04 Cash and cash deposits4 A$111 M Debt8 A$112 M (C$100 M) Ore Reserves (JORC) 5 5.8 Moz (3.9 Moz + 1.9 M
Slide 6: Strong margins, well funded, growth pipeline established
Strong margins, well funded, growth pipeline established Operational •FY19 production 362 koz @ AISC1 of A$1,080/oz excellence •Simberi record production and cash flow for FY19 •Continued successful Gwalia deep drilling and exploration • FY19 operational cash contribution2 of $284 M (FY18: $349 M) F
Slide 7: St Barbara Safety Focus
St Barbara Safety Focus Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 5.0 5.0 4.1 2.9 2.8 2.9 2.2 2.1 2.1 1.9 1.2 1.1 FY15 FY16 FY17 FY18 FY19 FY19 FY19 FY19 St Barbara WA Gold WA Metal, WA Metal, Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q4 FY1
Slide 8: Atlantic Gold acquisition completed July 2019
Atlantic Gold acquisition completed 19 July 2019 Touquoy pit lookout, Atlantic Gold Operations. 7/ Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 9: Atlantic Gold, transformational acquisition, consistent with Strategy
Atlantic Gold, transformational acquisition, consistent with Strategy • Substantial, low cost production from an established mining jurisdiction Diversify production base • CY19 forecast production of 92 – 98 koz at an AISC of C$695 – 755/oz (A$740 – 803/oz)1, with pathway to 200+ kozpa • Atlantic
Slide 10: Acquisition of Atlantic Gold adds a low cost operation
Acquisition of Atlantic Gold adds a low cost operation with expansion pipeline and exploration potential Acquired a great team of talented people who deliver Key statistics CY18 production 91 koz Atlantic Gold is a high quality producing asset in an CY19 production guidance 92 – 98 koz establish
Slide 11: Atlantic Gold Production Profile (Phases 1 and 2)
Atlantic Gold Production Profile (Phases 1 and 2) Processing plant commissioned in October 2017 Central processing facility Completed development of Touquoy pit. Commercial production declared in March 2018 Phase 1: Production of 91 koz in CY18 Touquoy and Beaver Dam CY19 production guidance
Slide 12: Atlantic Gold Timeline and Expansion Plan
Atlantic Gold Timeline and Expansion Plan CY19 CY20 CY21 CY22 CY23 Touquoy (63.5%)1 (Commercial production declared in March 2018) Producing Beaver Dam (100%) Environmental application Productionand currently construction planned from 2022 Production currently planned from 2022 (37km from Touquoy) F
Slide 13: Atlantic Gold Reserve and Resource Development (Phase 3)
Atlantic Gold Reserve and Resource Development (Phase 3) • Scope to expand production beyond existing 12 year reserve life1 • Expansion potential across all pits, with focus in CY19 on continued infill drilling of inferred resource at Touquoy and establishing a mineral resource at 149 Deposit • Expa
Slide 14: Atlantic Gold Near Mine Exploration (Phase 4)
Atlantic Gold Near Mine Exploration (Phase 4) • Program to systematically undertake up to 100,000 m of drilling along the 45+ km un-tested host structure around Atlantic Gold Existing operations processing facility in prospective geological Non operating gold deposits setting • Cochrane Hill has dem
Slide 15: Gwalia
Gwalia Portal, Hoover Decline, Gwalia. 14 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 16: Gwalia production year on year
Gwalia production year on year Mined Grade 12.5 (g/t Au) 11.1 9.3 10.7 8.8 8.2 8.4 8.9 6.9 6.3 5.7 Reserve Grade 7.5 g/t Au June 2018 Production 267 265 268 1260 (koz) 248 214 220 210 200 AISC 185 183 (A$/oz) 1027 940 131 841 802 783 785 109 83 Loader underground at Gwalia. FY09 FY10 FY11 FY12 FY13
Slide 17: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/D3uo4FKCi2I 16 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 18: Gwalia | Total material moved
Gwalia | Total material moved Gwalia total material moved (kt) GEP to liberate trucking capacity 267 260 262 • Excavation of the approx. 11 m high x 10 m 252 256 26 wide chambers at 1,420 and 1,460 mbs for 19 20 32 the PAF circuit commenced in Q1 Sep FY17 41 106 69 82 • Raise-boring of the four 5-me
Slide 19: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16K, GWDD16L and GWDD16M intersected the mine sequence at 2,000 - 2,100 mbs • Parent hole GWDD23 and daughter holes GWDD23A, GWDD23B and GWDD23C targeted the orebody at 2,100 - 2,200 mbs • Significant results include1: o 14.5 m at
Slide 20: Exploration | Seismic Targets
Exploration | Seismic Targets 19 / Diggers & Dealers Mining Forum – 5-7 August 2019 For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’
Slide 21: Exploration | Regional Targets
Exploration | Regional Targets Jessie Alma • Recent RC drilling returned significant results: o 6.0 m @ 8.6 g/t Au from 283 m (JARC004) o 1.0 m @ 6.3 g/t Au from 230 m (JARC006) o 4.0 m @ 4.3 g/t Au from 165 m (JARC016) Horse Paddock Well • Recent RC drilling returned significant results: o 4.0 m @
Slide 22: Simberi
Simberi Simberi truck fleet, 2019. 21 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 23: Simberi production year on year
Simberi production year on year AISC1 (A$/oz) • Fifth consecutive record annual production 1,464 1,293 1,187 1,3682 142 koz (FY18: 135 koz) 1,068 1,162 • Benefitted from improved grade and record Mined Grade recovery of 87% (FY19: 85%) (g/t Au) 1.43 • Sulphide drilling beneath Sorowar open pit 1.23
Slide 24: Simberi – Continues to deliver
Simberi – Continues to deliver • Cash contribution1 since the November 2016 decision to retain the asset is A$224 million • Operation has continued to set new records Quarterly cash contribution from Simberi A$M Decision to retain 34 Average since Q3 FY17 = $22 M 24 24 23 23 23 20 20 21 19 12 12 10
Slide 25: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG 24 / Diggers & Dealers Mining Forum – 5-7 August 2019 For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’.
Slide 26: Exploration | FY20 Guidance - A$20 to A$28 million
Exploration | FY20 Guidance - A$20 to A$28 million A$7 – A$9 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling A$5 – A$7 million Pinjin, Lake Wells and Back Creek • Geophysics/aircore drilling of identified targets A$8 – A$12 million PNG • Simberi Oxides/Sulphides and Porphyry Atlantic Go
Slide 27: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 26 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 28: 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 33%1 • Representation of women in leadership roles at 29%2 •
Slide 29: Community
Community Leonora sponsorships • Netball WA sponsorship with Gold Industry Group. • Shooting Stars. Uses netball as a vehicle to encourage greater engagement and attendance at school of young indigenous girls. • Clontarf Foundation. Uses football as a vehicle to improve the education, life skills, s
Slide 30: 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 31: Conclusion
Conclusion • Completed Atlantic Gold acquisition, adding a low cost, high margin operation with growth pipeline and exploration potential • Current operations continue to perform well • Significant drilling results at Gwalia Deeps and regionally • Continued positive Simberi Sulphide drilling results
Slide 32: Questions?
Questions? Gwalia, June 2018 31 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 33: Appendices
Appendices Leonora Operations, June 2018 32 / Diggers & Dealers Mining Forum – 5-7 August 2019
Slide 34: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY19 FY191 FY20 St Barbara’s financial year Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June Year to 30 June 2019 Year to
Slide 35: Balance Sheet
Balance Sheet Cash balance at 30 June 2019 of A$891M A$M 1000 891 800 480 600 A$780 M purchase price 400 for Atlantic Gold 411 (net balance $111 M) 343 200 77 137 161 0 -1 Undrawn debt facility -226 -200 limit -200 Separate A$112 M -347 (C$100 M) debt -400 facility acquired with FY15 FY16 FY17 FY18
Slide 36: 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 Q3 March FY202 • A$100 million spent on project to date • PAF crushing circuit on
Slide 37: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic 36 / Diggers & Dealers Mining Forum – 5-7 August 2019 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’
Slide 38: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements Note: Atlantic Gold mine life b
Slide 39: Growth Pipeline
Growth Pipeline Atlantic Gold KEY (Regional) Canada Papua New Guinea Tabar Island Group (Au) Australia Tabar Island Group Atlantic Gold Equity Investments (Cu-Au, OFA with NCM) (Beaver Dam) Atlantic Gold Back Creek (Cochrane Hill) Peel Mining Atlantic Gold Greater Gwalia (18%) (Fifteen Mile Stream)
Slide 40: 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): 185SRDH008: • 16 m at 2.25 g/t Au from 210 m 150SRDH031: • 17 m at 3.66 g/t Au fro
Slide 41: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG 40 / Diggers & Dealers Mining Forum – 5-7 August 2019 For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’
Slide 42: 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 Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 43: Sustainability Report
Sustainability Report Sustainability Report Annual Report Sustainability Report topics • Complements Annual Report Governance & Economic Performance & Corporate Governance Statement Integrated suite of • Core values and Code of Conduct annual reporting • Disclosure guided by GRI standards • Ethical
Slide 44: Hedging Summary at 2 August 2019
Hedging Summary at 2 August 2019 Financial Year Volume Price $/oz Delivery Announced ounces (all monthly instalments) FY20 42,000 A$1,750 August to December 2019 7 & 19 Feb 2018 and 7 (8,000 of initial 50,000 ounces delivered year to date since 1 July 2019) Mar 2018 FY20 24,000 A$1,809 January to Ju
Slide 45: 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 46: 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 47: Atlantic Ore Reserves Summary as at 13 March 2019
Atlantic Ore Reserves Summary as at 13 March 2019 Tonnes (mt) Grade (g/t Au) Gold oz's ('000's) Touquoy Proven Reserves 3.36 1.10 119 Probable Reserves 7.14 1.28 295 Stockpile reserves 2.14 0.57 44 Total Proven and Probable Reserves 12.91 1.10 458 Beaver Dam Proven Reserves 3.81 1.54 188 Probable Re
Slide 48: Atlantic Mineral Resources Summary as at 13 March 2019
Atlantic Mineral Resources Summary as at 13 March 2019 Touquoy Beaver Dam Tonnage Grade Contained Gold Tonnage Grade Contained Gold Confidence Category (Mt) (g/t Au) (Au oz x 1,000) (Mt) (g/t Au) (Au oz x 1,000) Measured 3.4 1.14 124 5.1 1.28 209 Indicated 7.9 1.27 321 4.6 1.23 182 Total Measured an
Slide 49: 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 50: 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 51: 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