40 slides from St. Barbara's earnings presentation, Feb 23, 2012
Slide 1: Presentation on the December 2011 Half Year Report
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 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 on the December 2011 Half Year Report Attached is a presentation to
Slide 2: About St Barbara Limited
About St Barbara Limited St Barbara was established in 1969, and is one of Australia’s most profitable ASX listed gold produces and explorers. St Barbara has three mines and two processing plants, at Leonora and Southern Cross, in the For personal use only Eastern Goldfields region of Western Austra
Slide 3: December 2011 Half Year Results: Record Profit and Cashflow
For personal use only December 2011 Half Year Results Record Profit and Cashflow Garth Campbell‐Cowan, Campbell Cowan, Chief Financial Officer 23 February, 2012 1
Slide 4: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited ((“Company”) 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 rel
Slide 5: Outline
Outline For personal use only • St S BBarbara b at a glance l • Proven performance • Gwalia Mine – St Barbara’s cornerstone asset • King of the Hills and Marvel Loch Mines • Exploration • The Th remainder i d off FY 12 • Appendices December 2011 Half Year Result 3
Slide 6: Financial highlights – 1H FY12
Financial highlights – 1H FY12 For personal use only Record profit and cash flow • NPAT up 12% to $47M • U d l i NPAT [1] up 86% to Underlying t $53M • Cash flow from operations up 65% to $94M • Cash flow after funding capex $40M [2] Investment in growth • Capital expenditure $52M • Exploration expe
Slide 7: St Barbara at a glance
St Barbara at a glance For personal use only • Australian li goldld producer d andd explorer l • Established 1969, acquired current assets in 2005 • Australasian and SE Asia focus • FY 12 guidance: production 320,000‐350,000 ounces at consolidated cash operating cost [3] of $790 to $830 per ounce •
Slide 8: Production up 15% on prior half
Production up 15% on prior half For personal use only G ld Production Gold P d i 154 • Production has increased for 134 4 consecutive halves 124 117 114 • Strong production growth achieved and expected to continue into 2H FY12 • All three th mines i on ttrackk tto deliver FY12 production guidance 20
Slide 9: Strong revenue and cash flow growth
Strong revenue and cash flow growth For personal use only R Revenue* * C h Flow Cash Fl From F Operations O ti +44%** +65%* 94 249 187 173 60 57 1H FY 11 2H FY 11 1H FY 12 1H FY 11 2H FY 11 1H FY 12 $M $M Half year results Half year results * Sales Revenue * 1H FY12 1H FY11 ** 1H FY12 1H FY11 De
Slide 10: Delivering a record profit
Delivering a record profit For personal use only NPAT U d l i Underlying NPAT[1] • Underlying NPAT +12%* +86%* benefited from 24% higher gold production 47 53 41 and 17% higher gold price p 27 29 • Majority of difference 26 between reported NPAT andd underlying d l NPAT is unrealised movement on der
Slide 11: Significant items in NPAT
Significant items in NPAT For personal use only 7 (1) 53 47 1H FY 12 Unrealised loss Realised gain 1H FY 12 NPAT on derivates on derivates Underlying NPAT* $M * Non‐IFRS measure, calculation in Appendix. December 2011 Half Year Result 9
Slide 12: Key changes in underlying NPAT
Key changes in underlying NPAT* For personal use only 36 40 (26) (3) 53 (17) (2) (4) 29 1H FY 11 Gold sales ‐ Gold sales ‐ Mine Mine D&A Exploration Other 1H FY 12 volume price operating operating costs ‐ costs ‐ volume price $M * Non‐IFRS measure, calculation in Appendix. 10 December 2011 Half Year
Slide 13: Delivering value per share
Delivering value per share For personal use only EPS Cash Flow From Operations $0.42 Per Share $0.36 $0.21 $0.29 $0 26 $0.26 $0.14 -$0.14 $0 14 $0.11 FY 10 FY 11 1H FY 12 F* FY 12 FY 09 FY 10 FY 11 1H * IRESS broker consensus 20 Feb 2010 FY 12 Shares adjusted for 6:1 consolidation Nov 2010 Shares ad
Slide 14: Net cash flow turnaround
Net cash flow turnaround For personal use only Net Cash Flows 94 (76) Net cash flow from ((60)) 60 operating activities 57 (54) Net cash flow from 40 investing activities (inc Capex) (inc. Net cash flow from operating and investing activities (3) (16) 1H FY 11 2H FY 11 1H FY 12 $M 12 December 2011 H
Slide 15: Investing in development
Investing in development For personal use only C it l Expenditure Capital E dit $52M 2 3 Other PPE 1 Mine infrastructure Surface infrastructure 22 1 Mine development 1 13 8 2 Gwalia King of the Hills Southern Cross Other PPE $M 1H FY12 December 2011 Half Year Result 13
Slide 16: Strong cash position
Strong cash position For personal use only • Net cash h backing b k per share h $0.33 $ [1] Cash & Debt • Almost no debt [1] 110 • debt to equity ratio <1% • Gross tax losses $342M [3], 79 not expecting to pay tax for at least two years • Ability to fund exploration and potential development project
Slide 17: Delivering shareholder value
Delivering shareholder value For personal use only Net Tangible Assets Per Share • Focus on increasing $1 47 $1.47 profitability 1.47 1 34 1.34 • Virtually no debt 1.19 1.08 • Strong balance sheet provides flexibility Jun 09 Jun 10 Jun 11 Dec 11 Shares adjusted for 6:1 consolidation Nov 2010 15 Dece
Slide 18: Gwalia Mine – high margin, long life gold deposit
Gwalia Mine ‐ high margin, long life gold deposit For personal use only • Ore Reserves of 6.9 Mt at 8.9 g/t Au containing 2.0 Moz of gold g • Resources extended to 1,840 mbs, open at d th depth • Potential to extend Ore Reserves within miningg envelope and at depth • Indicative 10+ year mine life De
Slide 19: Gwalia production growing
Gwalia production growing For personal use only Gold Production • Continued d improvement in mine 46 reliability and operational 39 40 performance 34 • Annualised haulage rates exceed 29 forecast 700 ktpa • Economic viability of a hoisting shaft is being assessed though DFS ‐ result due June 2012 qu
Slide 20: Gwalia mined grade and costs
Gwalia For personal use only Mi d Grade Mined G d G d Grade • Majority of ore now sourced from the richer South West Branch 7.9 81 8.1 7.5 • Grade to lift further in 2H FY12 6.9 Costs 4.9 • Cash operating costs of $683/oz for Q2 FY12 to reduce in 2H FY12, from higher grade and incremental lower cost
Slide 21: Gwalia - growing production, improving margins and returns
Gwalia - growing production, improving margins and returns as grade increases For personal use only Growing Gwalia Production Increasing Gwalia Grade 175-190 Declining Cash Cost [1] 1400 9 8.0-8.5 g/t Au 8 1200 131 6.3 g/t Au 7 1000 109 6 765 800 5 610-640 4 600 3 400 2 200 1 0 0 FY 10 FY 11 FY 12F
Slide 22: King of the Hills
King of the Hills For personal use only G ld Production Gold P d i 14 • Full scale sustainable production levels achieved 9 7 • Stopes reconciling to Ore Reserve • Higher Hi h production d ti anticipated ti i t d iin Q3 and Q4 FY12 0 2005 Acquired gold assets FY 11 FY 11 FY 12of Gwalia FY 12 of Sons
Slide 23: Southern Cross Operations
Southern Cross Operations For personal use only G ld Production Gold P d i 32 • Southern Cross Operations 27 27 generated $6M positive cash flow (net of capex) in 1H FY12 24 21 • Processing of legacy site low grade stockpiles t k il contributing t ib ti tot cashh flow generation • Most of the Marvel
Slide 24: Exploration – targeting new discoveries to leverage value
Exploration – targeting new discoveries to leverage value For personal use only • Drilling D illi ffor new discoveries di i • High priority, rich gold endowed areas • 5 000+ km2 of prospective land 5,000+ • 10 targets planned to be drilled in FY12 Exploration 22 22 Total Total 12 11 Drilling Drillin
Slide 25: Discovery & Growth
Discovery & Growth For personal use only G li Gwalia • High grade intersections indicate potential resource extensions to the north and south, within the current planned mining envelope (down to 1,780 mbs) b) • The deposit is still open at depth Active and expanding drilling programs • Leonora regio
Slide 26: Maintaining FY guidance
Maintaining FY 12 guidance FY12 Guidance maintained For personal use only King of Marvel Gwalia Total the Hills Loch L Leonora L Leonora S’th C S’thn Cross Gold koz 175‐190 175 190 55‐60 55 60 90‐100 90 100 320‐350 320 350 production d i Cash operating 1,170 1 170 $/oz 610‐640 710‐750 790‐830 cost [
Slide 27: What to expect in H2 FY12
What to expect in H2 FY 12 For personal use only • Increased profitability and cash generation • Delivery of FY 12 Guidance • Disciplined capital management • On market share buy back implemented • Cash resources available to generate shareholder value • Creation of value opportunities • Leonora hoi
Slide 28: Appendices
Appendices For personal use only December 2011 Half Year Result 26
Slide 29: Consolidated production summary
Consolidated production Appendices – production summary summary For personal use only Production Summary Jun Qtr Sep Qtr Dec Qtr Consolidated FY11 FY12 FY12 Gold Production Gwalia oz 38,556 40,306 46,007 King of the Hills oz 7,066 9,343 14,107 Southern Cross oz 27,238 20,959 23,501 Consolidated oz 7
Slide 30: Gwalia production summary
Gwalia For personal use only Production Summaryy Jun Q Qtr Sep p Qtr Q Dec Q Qtr Gwalia FY11 FY12 FY12 Underground ore mined t 176,214 173,498 181,204 Grade g/t Au 6.9 7.5 8.1 Ore milled t 177,703 174,056 192,592 Grade g/t Au 7.0 7.4 7.7 Recovery % 96 97 97 Gold production oz 38,556 40,306 46,007 Ca
Slide 31: King of the Hills production summary
King of the Hills For personal use only Production Summary Jun Qtr Sep Qtr Dec Qtr King of the Hills FY11 FY12 FY12 Underground ore mined t 58,139 77,034 107,840 Grade g/t Au 4.7 3.7 4.3 Ore milled t 50,105 82,179 105,541 Grade g/t Au 4.6 3.8 4.4 Recovery % 95 94 94 Gold production oz 7 066 7,066 9
Slide 32: Southern Cross production summary
Southern Cross For personal use only Production Summary Jun Qtr Sep Qtr Dec Qtr Marvel Loch FY11 FY12 FY12 Underground ore mined t 308,389 251,628 163,814 Grade g/t Au 2.9 2.7 3.1 Ore milled t 316,149 295,076 518,560 Grade g/t Au 2.9 2.5 1.6 Recovery % 93 89 88 Gold production oz 27 238 27,238 20 95
Slide 33: Focus on returns from non-core, higher cost operations
Focus on returns from non‐core, higher cost operations For personal use only Hedge Profile Hedge Profile koz King of the Hills A$/oz koz Southern Cross A$/oz 80 1,650 80 1,650 A$1,615 A$1,610 70 1,600 70 1,600 60 60 1,550 , 1,550 A$1,550 $ 50 50 1,500 1,500 40 40 1,450 1,450 30 A$1,425 30 1,400 1,40
Slide 34: Start Safe, Stay Safe
Start Safe Safe, Stay Safe For personal use only S f Safety • Safety performance improving 14 8 14.8 • N injuries No i j i SSep tto N Nov 2011 12.5 11.9 • Severity of injuries is reducing 11.1 2005 Acquired gold assets FY 09 FY 10 FY 11 of Sons of Gwalia1H FY 12 TRIFR (rolling 12 month average Total
Slide 35: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 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 and underlying net profit after tax. We be
Slide 36: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 A$000 A$000 A$000 A$000 A$000 NPAT to Underlying NPAT [1] Sales revenue 249,315 359,575 172,950 296,760 281,129 EBITDA (including significant items) 88,937 125,190 67,146 33,793 39,701 EBIT (including
Slide 37: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 A$000 A$000 A$000 A$000 A$000 Significant items [1] Net fair value gains/(losses) on gold options (7,464) 12,946 9,641 (19,513) 1,515 Realised gain on derivates 635 525 ‐ ‐ ‐ P fit on sale Profit l off
Slide 38: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 1H FY12 2H FY11 1H FY11 A$000 A$000 A$000 Underlying EBITDA [1] 95,766 56,614 54,378 Depreciation & Amortisation (43,173) (31,817) (26,663) Interest Revenue 2,612 2,563 3,048 Interest Expense (1,858) (1,653) (2,039) Income Tax Expense ‐ ‐ ‐ Underlying
Slide 39: Competent Persons Statement
Competent Persons Statement For personal use only References to Mineral Resources and exploration results presented in References to Ore Reserves presented in this document have been this document have been produced in accordance with The Australasian produced in accordance with The Australasian Cod
Slide 40: Investor Relations Enquires
Investor Relations Enquires For personal use only Ross K R Kennedy d Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au ross kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: S