St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (March 2020)
46 slides from St. Barbara's roadshow presentation, Mar 10, 2020
Slide 1: Presentation to analysts and shareholders in Melbourne and Sydney
10 March 2020 Presentation to analysts and shareholders in Melbourne and Sydney Attached is a presentation by Craig Jetson, Managing Director and CEO, to analysts and investors in Melbourne and Sydney this week. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1959 Media R
Slide 2: Melbourne & Sydney Roadshow
CRAIG JETSON, MANAGING DIRECTOR & CEO / 10 - 12 March 2020 ASX: SBM Melbourne & Sydney Roadshow
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 • Safety • Operations • Growth initiatives • Exploration • Conclusion Gwalia Mill 3 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 5: Corporate Overview
Corporate Overview Atlantic Gold Gwalia Simberi • Open pit mine • Underground mine • Open pit mine • FY19 production 93 koz • FY19 production 220 koz • FY19 production 142 koz • FY20F 95-105 koz • FY20F 170-180 koz • FY20F 105-115 koz • Mine plan to FY30 • Mine plan to FY31 • Mine plan to FY21 • Fou
Slide 6: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Production and cost profile Commodity Gold (Au) FY19A FY20F9 Market cap1 A$1.7B @ A$2.46/sh (koz @ AISC8) (koz @ AISC) Shares1 699 M 370 to 400 koz @ Consolidated 455 koz @ A$1,036/oz A$1,330 to 1,420/oz Liquidity2 7.7 M/day (1.1%) 1H FY20
Slide 7: Focus on safety
Focus on safety Key safety frameworks St Barbara LTIFR in comparison with • Health, Safety, Environment & Community Western Australian Mining benchmarks1 Management System (HSECMS) • Critical Risk Control Standards (CRCS) 1.9 1.9 • Rules to Live By • Visual Leadership System (observations) • ‘Start
Slide 8: FY20 Outlook
FY20 Outlook AISC1 (A$/oz) Consolidated 1375 1007 1080 932 907 891 Gold Production (koz) 403 377 381 385 362 328 110 116 135 100 80 142 110 248 267 265 268 220 175 FY15 FY16 FY17 FY18 FY19 FY20F Atlantic Gold Operations, Nova Scotia Guidance Gwalia Simberi Atlantic Gold Total mid-points 1. Non IFRS
Slide 9: 1H FY20 Key financial metrics
1H FY20 Key financial metrics 1,2 35 Underlying NPAT ($ M) 64 77 2 69 Atlantic EBITDA margin % 2 47 Gwalia EBITDA margin % 56 57 29 Simberi EBITDA margin % 39 44 0.06 EPS (basic, cents) 0.11 0.16 1H20 0.04 Dividend 2H19 0.04 per share (cents) 0.04 1H19 1. Underlying, see page 3 Financial Report 8 /
Slide 10: Interim dividend – 1H FY20
Interim dividend – 1H FY20 Dividends Paid 3.0% 2.2% • Interim fully franked dividend of A$0.04 2.1% Dividend 1.5% per share Yield1 (%) [Interim only] • Record date 4 March Total $0.12 • Dividend Reinvestment Plan1 at 1.0% Interim discount to 5 day VWAP $0.04 (election date 5 March) Total $0.08 Divid
Slide 11: Atlantic Gold, acquired July 2019
Atlantic Gold, acquired July 2019 Touquoy pit, Atlantic Gold Operations. Touquoy pit lookout, Atlantic Gold Operations. 10 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 12: Atlantic Gold production and cost profile
Atlantic Gold production and cost profile 1H FY20 Production Highlights AISC (A$/oz) • Record production for half 840 957 1,010 970 823 • 51 koz @ AISC A$887/oz • EBITDA margin of 69% • FY20F guidance 95 to 105 koz Production (koz) 105 29 93 95 23 23 18 20 47 40 4 4 4 FY19 FY19 FY19 FY20 FY20 FY18 F
Slide 13: Global Gold All-in Sustaining Cost Curve CY2019
Global Gold All-in Sustaining Cost Curve CY2019 Atlantic Gold is one of the lowest cost gold mines globally 3,000 All-In Sustaining Cost1 (US$/oz) 2,500 Atlantic Gwalia Simberi FY19A US$617/oz FY19A US$735/oz FY19A US$831/oz 2,000 FY20F US$630/oz FY20F US$1,025/oz FY20F US$1,070/oz Spot gold price U
Slide 14: Atlantic Gold Reserve and Resource Development
Atlantic Gold Reserve and Resource Development 0 5 10 km • Scope to expand production beyond existing 12 year reserve life1 • Expansion potential across all existing and planned pits, with focus on targets along strike between Touquoy and Fifteen Mile Stream (FMS) • Key exploration targets are near
Slide 15: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://www.youtube.com/watch?v=fw91T7KFIQ4 14 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 16: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 14.0 11.1 11.4 10.8 1H FY20 Production Highlights 7.9 • 80 koz @ AISC1 A$1,513/oz Reserve Grade2 • EBITDA margin of 47% 6.4 g/t Au June 2019 • FY20F guidance 170 to 180 koz Production • Development and production anticipated (koz) 141 1,513 to
Slide 17: Gwalia Extension Project and Total Material Moved
Gwalia Extension Project and Total Material Moved Commenced 27 March 2017, includes: • 2,660 m of 5 metre diameter ventilation shafts • Underground paste aggregate fill (PAF) plant to crush waste rock and mix with paste to fill stope cavities • Budget of A$112 million with planned completion in Apri
Slide 18: Gwalia Extension Project | Ventilation Plan
Gwalia Extension Project | Ventilation Plan For details refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’ 17 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 19: Simberi, Papua New Guinea
Simberi, Papua New Guinea Simberi truck fleet 18 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 20: Simberi production and cost profile
Simberi production and cost profile AISC1 1H FY20 Production Highlights (A$/oz) • 50 koz @ AISC A$1,717/oz 1,717 1,132 1,107 1,216 • EBITDA margin of 29% 1,010 • FY20F guidance 105 to 115 koz Production Sulphide Project (koz) 71 72 70 • Updated Resources and Reserves 64 65 released 2 March 2020 50 5
Slide 21: Simberi Sulphide – revised Resources and Reserves to inform feasibility study
Simberi Sulphide – revised Resources and Reserves to inform feasibility study Distribution of Ore Reserves at 31 December 2019 ('000 oz) • Sorowar drill results indicate significant additional sulphide and oxide 1,178 mineralisation • Updated Resources 236 155 and Reserves issued 140 107 56 123 70 2
Slide 22: Exploration
Exploration 21 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 23: Exploration | FY20 Guidance – A$31 to A$41 million
Exploration | FY20 Guidance – A$31 to A$41 million Australia – A$12 to A$16 million Papua New Guinea - A$8 to A$12 million • A$7 – A$9 million at Leonora Region to shift focus from • Simberi Oxides/Sulphides and Porphyry Gwalia Deep Drilling to Greater Gwalia and region Canada - A$11 to A$13 million
Slide 24: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 FY19 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 FY19 2021 LoM to be reviewed following update to Resources and Reserves Atlantic Gold FY19 2030 2015 2020 2025 2030 Gwalia and Simberi mine life as published in relevant Annual Report,
Slide 25: 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 26: Sustainability Report (ESG)
Sustainability Report (ESG) Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic Performance & Corporate Governance • Core values and Code of Conduct Statement • Ethical business conduct with all stakeholders • Disclosure guided by GRI • Manage for lon
Slide 27: Conclusion
Conclusion • Record half-year production at Atlantic Gold offset lower operational performance from Gwalia and Simberi • NPAT A$39 M • A$79 M cash at bank1 with A$138 M debt2 • 4 cps fully franked interim dividend Immediate Focus • GEP due to be completed in April 2020 • Simberi Sulphide Resources a
Slide 28: Questions?
Questions? Gwalia, June 2018 27 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 29: Appendices
Appendices Aircore drilling, Pinjin, Western Australia. Photo by Kiran Hudson 28 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 30: Transformational Acquisition of Atlantic Gold, July 2019
Transformational Acquisition of Atlantic Gold , July 2019 Consistent with our Strategy "Stronger for Longer" 3 Diversify • Substantial, low cost production in preferred mining jurisdiction • FY20F production of 95 – 105 koz at an AISC of A$900-955/oz1, production base with pathway to 200+ koz pa 2
Slide 31: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q1 Sep Q2 Dec 1H Guidance Consolidated FY19 FY 19 FY20 FY20 FY20 FY20 FY20 AG full quarter AG SBM attrib. St Barbara’s financial Qtr to Year to Qtr to Qtr to Qtr to 6 months to Year to year is 1 July to 30 Ju
Slide 32: 1H FY20 key achievements
1H FY20 key achievements • Consolidated half-year production of 182 koz of gold Operational • 1H FY20 AISC1 of A$1,391/oz performance • A$702/oz cash contribution1 • EBITDA margin of 36%2 overall, 69% for Atlantic Gold Financial • Cash flow from operating activities of A$65 M performance • NPAT of A
Slide 33: Balance Sheet
Balance Sheet A$M 1,000 Lease Liability (AASB 16) 800 480 Entitlement Offer 600 400 410 343 Cash 200 137 161 79 0 -106 Debt -32 -200 -226 -400 FY16 FY17 FY18 FY19 1H20 1. Cash balance comprises A$69 M cash, A$10 M term deposits (with 4 to 12 months maturity) 32 / Melbourne & Sydney Roadshow, 10-12 M
Slide 34: Growth Pipeline
Growth Pipeline Atlantic Gold (Regional) KEY Atlantic Gold (Moose River Corridor) Canada Tabar Island Group Papua New Guinea (Au, Au-Cu) Australia Equity Investments Back Creek Atlantic Gold Leonora Province (Beaver Dam) Atlantic Gold Greater Gwalia (Cochrane Hill) Peel Mining Atlantic Gold Atlantic
Slide 35: Hedging Summary at 10 March 2020
Hedging Summary at 10 March 2020 Financial Volume Delivery Price $/oz Type Announced Year ounces (all monthly instalments) FY20 16,000 A$1,809 Forward Mar to Jun 2020 26 Oct 2018 FY20 16,452 A$1,961 Forward Mar to Jun 2020 24 Feb 2020 [1] FY21 26,000 A$1,809 Forward Jul to Dec 2020 26 Oct 2018 FY21
Slide 36: Exploration activities
Exploration activities Nova Scotia, Canada Leonora, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 22 January 2020 ‘Quarterly Report Q2 December FY20’ 35 / Melbourne & Sydney Roadshow, 10-12 March 2020
Slide 37: Reserves and Resources as at 31 December 2019
Reserves and Resources as at 31 December 2019 Ore Reserves Mineral Resources 12.0 12.2 Atlantic Gold 2.4 2.4 9.2 6.4 5.9 3.7 4.2 4.4 Simberi 1.9 1.9 3.9 1.7 2.2 1.7 Leonora 5.5 5.4 5.4 2.2 2.4 2.4 FY 18 FY 19 FY 20 FY 18 FY 19 FY 20 Total Note: For full details refer to ‘Ore Reserves and Mineral Res
Slide 38: Ore Reserves Summary
Ore Reserves Summary Gwalia and Tower Hill reported as at 30 June 2019, Atlantic Gold as at 25 March 2019 and Simberi as at 31 December 2019 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)
Slide 39: Mineral Resources Summary
Mineral Resources Summary Gwalia and Tower Hill reported as at 30 June 2019, Atlantic Gold as at 25 March 2019 and Simberi as at 31 December 2019 Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('0
Slide 40: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • Awarded Runner Up, Gender Diversity Leader in the Mining Journal’s 2019 International Awards • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • Repres
Slide 41: Shareholders and Broker Coverage
Shareholders and Broker Coverage Broker Research Coverage Institutional 80% Argonaut James Wilson Not analysed 13% Canaccord Reg Spencer Citi Kate McCutcheon Credit Suisse Nick Herbert Non Institutional GMR David Radclyffe 7% Goldman Sachs Matthew Frydman JP Morgan Levi Spry Macquarie Ben Crowley Au
Slide 42: Board of Directors
Board of Directors Tim Netscher Craig Jetson Chairman – Non Executive Managing Director and CEO Appointed Director February 2014 Appointed February 2020 Appointed Chairman July 2015 Mr Jetson is a highly experienced career mining executive, having most recently Mr Netscher is an experienced internat
Slide 43: Executive Leadership Team
Executive Leadership Team Craig Jetson Maryse Bélanger Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director & CEO President Americas Chief Financial Officer Company Secretary General Manager Human Resources and Health, Safety, Appointed February 2020 Joined 2019, in transition until May 2020
Slide 44: Competent Persons Statement
Competent Persons Statement Exploration Results The information in this presentation that relates to Exploration Results for Simberi, Pinjin, Lake Wells, Back Creek and Horn Island is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metal
Slide 45: 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 46: 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 Simberi Operation at dusk, Papua New Guinea 45 / Melbourne & Sydney Roadshow, 10-12 March 2020