St. Barbara Ltd. · ASX:SBM
St. Barbara — H1 FY2019 Earnings Presentation
35 slides from St. Barbara's earnings presentation, Feb 20, 2019
Slide 1: Presentation on the December 2018 Half Year Report and webcast
ASX Release / 20 February 2019 For personal use only Presentation on the December 2018 Half Year Report and webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the December 2018 Half Year Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours)
Slide 2: December 2018 Half Year Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 20 February 2019 ASX:SBM For personal use only December 2018 Half Year Presentation
Slide 3: Disclaimer
Disclaimer 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 relation to, s
Slide 4: Contents
Contents For personal use only • Overview • Safety • 1H FY19 Highlights • Operations • Financials • Growth initiatives • Conclusion Gwalia processing plant, June 2018 3 / December 2018 Half Year Presentation
Slide 5: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 For personal use only 6.0 5.0 4.1 2.8 2.9 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 Q1 Q2 FY19 FY19 • Total Recordable Injury Frequency Rate1 of 2.9 at 31 December 2018 • Improved supervisor and investigation training underway Working with su
Slide 6: 1H FY19 key achievements
1H FY19 key achievements • Consolidated half-year production of 188 koz of gold Operational • 1H FY19 AISC1 of A$1,008/oz For personal use only excellence • A$800/oz cash contribution2 • Full year production guidance increased at Simberi • EBITDA margin of 45%1 Financial • Cash flow from operating a
Slide 7: Consolidated Gold Production
Consolidated Gold Production 1H FY19 Production Highlights For personal use only AISC (Consolidated) (A$/oz) 1,008 Consolidated 905 910 899 883 • Gold production of 188 koz @ AISC1 A$1,008/oz koz • EBITDA margin1 of 45% 205 191 190 198 188 • FY19F guidance 365-385 koz 53 63 71 64 Gwalia 72 • 116 koz
Slide 8: Gwalia production and cost profile
For personal use only Gwalia production and cost profile Mined Grade (g/t Au) 12.5 10.7 10.5 8.9 9.3 8.4 Reserve Grade3 7.5 g/t Au June 2018 Production 267 265 268 255 (koz) 248 245 214 AISC (A$/oz) 940 950 841 802 783 785 1H= 116 Underground and surface haul truck at portal to Hoover Decline, Gwali
Slide 9: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists For personal use only of two main components, a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$100 M with planned completion in Q2 December FY201 • GEP on schedule and approximately 60% complet
Slide 10: Simberi production and cost profile
Simberi production and cost profile For personal use only 2,300 1,464 2 1,293 1,187 1,325 (FYF) AISC1 1,068 (A$/oz) 1,107 (1H) Production 135 130 (koz) 116 120 110 80 1H= 44 72 FY14 FY15 FY16 FY17 FY18 FY19F Simberi Operation showing processing plant stockpile, February 2018. Photo by Liken Paulias.
Slide 11: 1H FY19 Key financial metrics
1H FY19 Key financial metrics For personal use only 1,2 77 Underlying NPAT ($ M) 104 98 57 2 Gwalia EBITDA margin % 64 60 44 2 Simberi EBITDA margin % 43 45 16 EPS (basic, cents) 24 21 4 1H19 Dividend 8 2H18 per share (cents) 4 1H18 1. Underlying, see page 3 Financial Report 10 / December 2018 Half
Slide 12: EBITDA and NPAT profile
EBITDA and NPAT profile A$ M Underlying EBITDA A$ M Underlying NPAT 120 For personal use only 200 184 104 150 162 80 98 148 100 77 40 50 0 0 1H FY18 2H FY18 1H FY19 1H FY18 2H FY18 1H FY19 A$ M EBITDA 160 A$ M NPAT 200 150 184 120 162 121 148 80 106 100 83 50 40 0 0 1H FY18 2H FY17 1H FY19 1H FY18 2
Slide 13: Key Changes to Underlying Profit 1H FY18 to 1H FY19
Key Changes to Underlying Profit 1H FY18 to 1H FY191 • Profit lower in 1H FY19 due to: For personal use only o Lower production at Gwalia compared to previous corresponding half o Higher income tax expense 8 1 2 -3 -2 -15 -11 -1 A$ M 98 77 1H18 Gross Profit - Gross Profit - Exploration Corporate & D
Slide 14: Segment profit and cash contribution from operations
Segment profit and cash contribution from operations For personal use only Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 A$M A$M 123 137 118 97 84 97 50 59 42 47 36 36 1H FY18 2H FY18 1H FY19 1H FY18 2H FY18 1H FY19 Leonora Simberi Leonora Simberi 1. Non-IFRS me
Slide 15: 1H FY19 Application of Cash
1H FY19 Application of Cash For personal use only 330 A$M -176 -11 -45 -5 42 -51 14 -28 Receipts Op costs & Exploration Capex Investments Income tax Cash surplus Dividends Change in Finance costs cash balance Note: Cash surplus = cash flow from operating activities less cash used in investing activi
Slide 16: Interim dividend – 1H FY19
Interim dividend – 1H FY19 For personal use only A$ FY18 final A$ Share Price dividend Dividend • Interim dividend of 0.08 A$0.04 per share 5.00 • Fully franked FY17 final dividend • Record date 6 March 0.06 4.00 FY19 interim • Dividend Reinvestment FY18 interim dividend dividend Plan1 at 1.0% disco
Slide 17: Balance Sheet
Balance Sheet • Cash balance at 31 December 2018 of $357 M1, and no debt For personal use only 400 A$M Cash and debt 343 357 300 116 184 Term deposits 200 226 161 173 100 137 79 77 Cash 0 -1 -100 -226 Debt -200 -300 -340 -347 -400 FY14 FY15 FY16 FY17 FY18 1H19 1. Cash balance comprises $173 M cash,
Slide 18: Strategy for the Next Years – Stronger for Longer
Strategy for the Next 5 Years – “Stronger for Longer” For personal use only 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
Slide 19: Growth Pipeline
Growth Pipeline For personal use only Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Metals Peel Gwalia Mining GMX 16% 18%. Gwalia Gwalia Aust. Prodigy Potash Tower Extension Mine Duketon Gold Mining Hill 10% 12% Au, EJV2 Inorganic growth Evaluati
Slide 20: Exploration and Equity Investments
Exploration and Equity Investments Gwalia, WA For personal use only • Testing the southern extension and regional targets Pinjin, WA • RC drilling continues to test targets in the region Simberi Island, PNG • Ongoing increased density sulphide drilling intersections beneath Sorowar pit. • Testing fo
Slide 21: Gender Diversity
Gender Diversity For personal use only • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • Representation of women on the board at 40%1 • Representation of women in leade
Slide 22: Conclusion
Conclusion • Strong operational performance, For personal use only record half-year production from Simberi • Increased FY19 guidance to 365 to 385 koz • NPAT $83 M • $357 M cash at bank1 • 4 cps fully franked interim dividend • Profitable organic growth options in progress: • Gwalia extension proje
Slide 23: Appendices
Appendices For personal use only Leonora Operations, June 2018 22 / December 2018 Half Year Presentation
Slide 24: Supporting the Leonora Community
Supporting the Leonora Community St Barbara is focused on working within the Leonora community For personal use only Sponsorships • Golden Gift (athletic carnival) • Shooting Stars (netball sport program for indigenous girls) • Kambalda/Leonora Football Club • Indigenous Hip Hop Program • Goldfields
Slide 25: Supporting the Leonora Community
Supporting the Leonora Community Community programs For personal use only • Tree Planting • Clean Up Australia Day • Autumn Clothes and Toy Appeal • Leonora Bike Challenge • Exercise, school, addiction programs •Gwalia Processing plant In-kind support of catering many local events Left: Autumn Cloth
Slide 26: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY18 FY18 FY19 FY19 FY19 FY191 For personal use only St Barbara’s financial year is Qtr to Year to 30 June Qtr to Qtr to 6 months to Year to 30 June 2019 1 July to 30 June 30 J
Slide 27: Hedging Summary at February 2019
Hedging Summary at 20 February 2019 Financial Volume Price Delivery Announced For personal use only Year ounces $/oz (all monthly instalments) 36,000 A$1,750 March to June 2019 7 & 19 Feb 2018 FY19 and 7 Mar 2018 (64,000 of initial 100,000 ounces delivered year to date since 1 July 2018) 50,000 A$1,
Slide 28: Main Current Projects – Timeline
Main Current Projects – Timeline For personal use only FY19 FY19 FY20 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Gwalia 2600 mbs hole analysis and further drilling analysis and Gwalia
Slide 29: Gwalia – Lowest expected mined depth
For personal use only Gwalia – Lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1200 1100 1220 1300 Mineral Resources 1400 deepest mineralised intersection Ore Reserves 1380 1420 1600 1500 1500 1540 158
Slide 30: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves Maximum Depth of Ore Reserves For personal use only (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 500 1000 1500 mbs 1500 mbs 1540 mbs 1500 1580 mbs 1620 mbs Maximum 1540 mbs Mined Depth 1740 mbs 2000 1940 mbs Maximum 2140 mbs 2140 mbs Reserves Dep
Slide 31: Ore Reserves Summary as at June 2018
Ore Reserves Summary as at 30 June 2018 For personal use only 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
Slide 32: Mineral Resources Summary as at June 2018
Mineral Resources Summary as at 30 June 2018 For personal use only 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
Slide 33: Competent Persons Statement
Competent Persons Statement For personal use only 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 Musta
Slide 34: Non-IFRS Measures
Non-IFRS Measures We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS For personal use only financial measures, including cash operating costs. We believe that these measures provide meaningful information to ass
Slide 35: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations For personal use only 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 Mana