40 slides from St. Barbara's corporate update, Aug 9, 2018
Slide 1: Presentation to analysts and investors at Leonora Operations
SBM Release / 9 August 2018 Presentation to analysts and investors at Leonora Operations Attached is a presentation to analysts and investors attending a site visit today at Leonora Operations, Western Australia. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1959 ASX: S
Slide 2: Gwalia site visit presentation
Kous Kirsten, General Manager Leonora Operations / August 2018 Gwalia site visit presentation
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 of St Barbara • Operations • Safety Gwalia Mine, Leonora, WA • History • Production • Innovation • Growth Exploration Appendices 2600 mbs deep drilling site, June 2018 3 / Gwalia Site Visit Presentation / August 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Papua Simberi Commodity Gold (Au) New Guinea Market cap2 A$2.2B @ A$4.17/sh Shares2 521 M Liquidity5 3.2 M/day (0.6%) H1 FY18 EPS6 A$0.21 H1 FY18 Dividend A$0.04 Australia Leonora Cash and cash deposits7 A$344 M (Gwalia mine) Debt Nil Ore
Slide 6: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate1 • Decrease in TRIFR from 2.6 at the end of Q3 Mar FY18 to 2.1 5.0 at the end of Q4 June FY18. 4.1 • Plans and strategies implemented to further reduce 2.6 2.4 2.1 the TRIFR rate through FY19. 2.1 1.2 1.2 • Corresponding LTIFR (lost time (
Slide 7: Gwalia mine history
Gwalia | 120 not out! • From surface outcrop (first mined 1896) to current workings is approx. 3.5 km ‘straight line’ along shear • Herbert Hoover was the initial Gwalia mine manager (1897-1898), later a US President (1929-1933), noted angle of deposit – took mining underground via underlay shaft (f
Slide 8: Gwalia production profile
Gwalia production profile Mined Grade (g/t Au) 12.5 FY18 performance 10.7 10.5 9.3 8.8 8.2 8.4 8.9 • Record production 268 koz 6.9 5.7 6.3 Reserve Grade (FY17: 265 koz) 7.8 g/t Au June 2017 267 265 268 260 • AISC1 A$802/oz Production (koz) 248 245 (FY17: A$785/oz) 214 AISC (A$/oz) 185 183 FY19 guida
Slide 9: Quarterly Gwalia production profile
Quarterly Gwalia production profile AISC (A$/oz) 872 905 859 816 FY18 average A$802/oz 679 Q4 Jun FY18 production Mined grade 15.0 (g/t Au) 13.4 • 84,537 oz 11.2 9.2 10.7 FY18 average 12.5 g/t Au (Q3 FY18: 56,773 oz) Reserve grade 7.8 g/t Au2 • AISC1 A$679/oz Production (koz) (Q3 FY18: A$905/oz) 84.
Slide 10: Gwalia: A rich history with a bright future
Gwalia animation Gwalia A rich history with a bright future Animation of Gwalia underground mine available at https://youtu.be/ya-GEzscdCY 9/ Gwalia Site Visit Presentation / August 2018
Slide 11: Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB Mining method mining sequence manages the hanging wall • Long hole stoping with fill • North & South access on FY11 two dual lift levels gives 4 2 mining areas • Greater percentage of free 1 5 bogging increases productivity of each stope 4 • Sill drive
Slide 12: Stope Cycles targeting higher production
Stope Cycles targeting higher production Stope Cycle Time – 6 months per stope • ‘Bogging’ (extracting ore from the stope) represents just under 50% of stope cycle time • Filling and curing around 30% of stope cycle time • Adjacent stopes (beside, above, below) cannot be developed until curing compl
Slide 13: Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many of lode open stopes too close together = ‘Centre out’ method Historical stopes (light blue)
Slide 14: Resources & Reserves
Gwalia Resources & Reserves Gwalia Gwalia Reserves Gwalia Resources A rich history with a bright future +406 +1,061 +268 +15 koz +316 koz -276 -274 5,087 2,133 1,808 3,896 June Mining Depth Geology Modifying June June Mining Depth Additions June 2016 depletion extension and factors 2017 2016 depleti
Slide 15: Gwalia Ore Reserves
Gwalia Ore Reserves Gwalia A rich Gwalia historyOre with a bright future Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Proved Probable Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources Statement 30 June 2017’. 14 / Gwalia S
Slide 16: Ore Reserves
Gwalia Ore Reserves Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Ore Reserves Grade (g/t) 4-6 6–8 8 – 10 10 – 12 >12 Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources Statement 30 June 2017’. 15 / Gwalia Site Vi
Slide 17: Ore Reserves grade reconciliation
Gwalia Ore Reserves 0.4 Gwalia 0.2 A rich history with a bright future 0.2 0.3 0.1 0.6 g/t Au 8.3 7.8 Ore Reserve FY17 production Design changes Design changes Design changes Dilution factors Depth Extension Ore Reserve Grade June (SWB above (WL & SGS above (ML above 1940) Grade June 2016 1940) 1940
Slide 18: Extension Project update
Gwalia Extension Project update • Project extends mining at Gwalia to at • Raise bore activities progressing to least 2,000 mbs1 schedule with second surface shaft pilot • Budget of A$100 million with planned hole drilling underway completion in Q2 December FY201 • Plan now anticipates some concurre
Slide 19: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 18 / Gwalia Site Visit Presentation / August 2018
Slide 20: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program Gwalia A rich history with a bright future • GWDD19A has been completed, intersecting four mineralised zones between 2,630-2,690 mbs. Gwalia - March 2016 • Results confirm Gwalia ore lodes are continuous to at least 2,700 mbs. For full explanation and resu
Slide 21: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic GwaliaSeismic Exploration Gwalia A rich history with a bright future • Two hole drill program completed in Q4 June FY18 showed shearing and alteration similar to the Gwalia deposit. • Downhole surveys planned in Q1 Sep FY19 for future drill targeting. • Further seismic t
Slide 22: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Gwalia A rich history with a bright future Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 21 / Gwalia Site Visit Presentation / August 2018
Slide 23: Appendices
Appendices Water sampling, June 2018 22 / Gwalia Site Visit Presentation / August 2018
Slide 24: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Mar Year Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY181 FY195 Gwalia St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 June Year to 30 June Year to 30 June year is
Slide 25: St Barbara Byrnecut – contract mining
Gwalia Operations St Barbara Byrnecut – contract mining • Responsible for • Byrnecut is part of Gwalia’s success • Planning • Started at Gwalia in Sep 2012 • Processing • Alliance agreement from Sep 2013 • Procurement • Approx. 230 employees • Commercial Underground fleet • Approx. 150 employees, mo
Slide 26: Supporting the Leonora community
Supporting the Leonora community Sponsorships • Golden Gift (athletics carnival) • Kambalda/Leonora Football Club • Goldfields Girl • Leonora Primary School • Apprenticeship program 25 / Gwalia Site Visit Presentation / August 2018
Slide 27: Exploration | Investment in exploration juniors
Exploration | Investment in exploration juniors Strategy Targeted investment in early to advanced stage gold Gwalia exploration A rich history through with a bright future earn in arrangements, joint ventures or direct equity investments • Catalyst Metals Ltd ASX:CYL Vic, 16% • Duketon Mining Ltd AS
Slide 28: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA Gwalia • Completed 313 hole Aircore drill program in Q4 June A rich history with a bright future FY18, testing six targets: Graham’s Find, Yindi Station, Old Homestead, Mulgabbie and reconnaissance drilling at two new targets. • A follow up 30
Slide 29: Gwalia operations
Gwalia operations 28 / Gwalia Site Visit Presentation / August 2018
Slide 30: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 29 / Gwalia Site Visit Presentation / August 2018
Slide 31: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 30 / Gwalia Site Visit Presentation / August 2018
Slide 32: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 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) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simbe
Slide 33: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 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) 5,045 7.8 1,265 14,877 6.4 3,042 3,831 6.3 78
Slide 34: Predominantly institutional share register
Predominantly institutional share register Australia Not analysed 34% 8% Institutional 87% Non Institutional USA 34% 5% UK 12% Other 12% Not analysed 8% Data as at 12 July 2018 33 / Gwalia Site Visit Presentation / August 2018
Slide 35: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 11.2% Argonaut James Wilson Vinva 5.2% Norges Bank 5.2% Canaccord Reg Spencer Institutional Shareholders 2 87% Citi Trent Allen Shares on issue 521M Credit Suisse Mike Slifirski American Deposita
Slide 36: Board of Directors
Board of Directors Gwalia Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO A rich history with Appointeda bright Director Februaryfuture 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years Mr Netscher is an experienced inte
Slide 37: Executive Leadership Team
Executive Leadership Team Gwalia A rich history with a bright future Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with ove
Slide 38: 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 39: 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, invest
Slide 40: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary David Cotterell Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au 39 / Gwalia Site Visit Presentation / August 2018