39 slides from St. Barbara's earnings presentation, Jan 27, 2021
Slide 1: Presentation on Q2 December FY21 Quarterly Report and audio webcast
ASX Release / 27 January 2021 Presentation on Q2 December FY21 Quarterly Report and audio webcast Craig Jetson, Managing Director & CEO, will brief analysts and institutional investors on the Q2 December FY21 Quarterly Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours) on Wednesday
Slide 2: Q2 December FY21 Quarterly Presentation
Q2 December FY21 Quarterly Presentation 27 January 2021 Craig Jetson Managing Director and Chief Executive Officer 1 / Q2 December FY21 Quarterly 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: Acknowledgement of Country
Acknowledgement of Country We at St Barbara acknowledge the Traditional Custodians of the land upon which we operate and recognise their unique cultural heritage, beliefs and connection to these lands, waters and communities. We pay our respects to all members of these Indigenous communities, and to
Slide 5: Contents
Contents • We are St Barbara • Safety always • Q2 FY21 Highlights • Building Brilliance • Operational Performance o Atlantic o Leonora o Simberi • Project Update and Timeline • Exploration • What’s next& Exploration 4 / Q2 December FY21 Quarterly Presentation
Slide 6: St Barbara is taking action across our sustainability commitments
St Barbara is taking action across our sustainability commitments SAFETY EMPOWERED PEOPLE STRONGER RESPECTING THE GROWING ALWAYS DIVERSE TEAMS COMMUNITIES ENVIRONMENT SUSTAINABLY Target is Zero Harm We are the only mining Delivering on action Carbon neutral by Growing our business TRIFR1 40% company
Slide 7: Safety always
Safety always Total Recordable Injury Frequency Rate (TRIFR)1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 5.0 SAFETY 3.3 2.1 ALWAYS 3.0 3.1 1.7 1.5 Zero harm is always our target. 2.1 2.1 Zero harm to all people as we responsibly operate our assets 1.2 to their full po
Slide 8: Working safely during COVID-19
Working safely during COVID-19 St Barbara COVID-19 Management Framework • Developed infectious diseases critical risk control standard Support Barriers • Atlantic Gold: Screening controls for Programs of support for Proactive control to all employees, visitors and contractors personnel and their fam
Slide 9: Highlights Q2 December FY21
Highlights Q2 December FY21 • 90 koz produced at AISC of A$1,517/oz (Q1: 73 koz at A$1,711/oz) Operational • Building Brilliance initiatives are already driving improvements in performance operational efficiency and unit cost GROWING • Operational cash contribution of A$83 M (Q1: A$27 M) SUSTAINABLY
Slide 10: What is Building Brilliance?
What is Building Brilliance? Building Brilliance The first step in our strategy FY21: the first step in our strategy • Company-wide program to rapidly and sustainably improve performance • Focused on creating enduring value for St Barbara; addressing historical challenges and constraints • We have a
Slide 11: Building Brilliance initiatives are beginning to drive improvements
Building Brilliance initiatives Improved gravity circuit capacity and grinding efficiency Atlantic Mill de-bottlenecking driving >5% increase in throughput Building Maintenance efficiency Improved shutdown planning on track to deliver 30% reduction in mill downtime Brilliance Rigorous review process
Slide 12: Consolidated Q2 December FY21 Results
Consolidated Q2 December FY21 Results AISC (A$/oz) 1,711 1,517 Q2 FY21 AISC 1,364 1,405 1,301 • Consolidated A$1,517/oz (Q1: A$1,711/oz) • Atlantic A$999/oz (Q1: A$1,008/oz) • Leonora A$1,573/oz (Q1: A$2,592/oz) Gold Production (koz) • Simberi A$2,070/oz (Q1: A$1,678/oz) 109 94 92 90 29 Q2 FY21 Prod
Slide 13: Atlantic Q2 FY21 Results
Atlantic Q2 FY21 Results AISC Q2 FY21 production (A$/oz) 951 988 1,008 999 • 26,693 oz (Q1: 27,226 oz) 823 • AISC A$999/oz (C$952/oz) Milled grade (Q1: A$1,008/oz (C$960/oz) (g/t Au) 1.51 1.41 • Production was comparable to the previous quarter, 1.24 1.29 1.24 with marginally lower mill grades offse
Slide 14: Leonora Q2 FY21 Results
Leonora Q2 FY21 Results Q2 FY21 Production AISC (A$/oz) 2,592 • 42,198 oz (Q1: 22,625 oz) 1,556 1,573 1,471 1,389 • AISC A$1,573/oz (Q1: A$2,592/oz) • Mined grade of 8.3 g/t Au (Q1: 8.1 g/t Au) Mined grade (g/t Au) • Underground Wi-Fi network has been completed, 8.0 8.1 8.1 8.3 enabling long hole dr
Slide 15: Simberi Q2 FY21 Results
Simberi Q2 FY21 Results Q2 FY21 Production AISC • 20,779 oz (Q1: 23,139 oz) (A$/oz) 1,851 2,070 • AISC A$2,070/oz (Q1: A$1,678/oz) 1,629 1,467 1,678 • Grade stable at 1.30 g/t Au (Q1: 1.30 g/t Au) • Production lower due to substantially lower mill Milled grade (g/t Au) recovery at 63%, resulting fro
Slide 16: Brownfield project pipeline
Brownfield project pipeline Indicative development timeline1 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Atlantic Beaver Dam Fifteen Mile Stream Cochrane Hill Leonora Intermediates Shallows Extensions Simberi Sulphides 27-Jan-2021 Scoping Feasibility Permitting Construction &
Slide 17: Our strategy at Leonora is to fill the mill
Our strategy at Leonora is to fill the mill Annual mill throughput (Mt) Uplift #1: Maximise the value from current 1.3-1.4 1.4 operations through productivity improvements and 0.6 1.3 0.3 Current cost reduction 0.2 mill • Achieve consistency in performance with Building capacity Brilliance and open
Slide 18: Gwalia Shallows well advanced
Gwalia Shallows well advanced • An underground diamond drill program consisting of 20 holes was completed during the quarter testing the Gwalia Shallows mineralisation between 350 and 600 mbs • To date, 38 holes have been completed, identifying 3 hangingwall lodes • An additional phase comprising 8
Slide 19: Leonora Province
Leonora Province • An internal review completed in December 2020 assessed the current resource, mineral inventory base and historical stockpiles (with some milled in December and January) • The next stage is a strategic action plan, with a number of initial scopes now advanced and in the planning ph
Slide 20: Exploration | Gwalia near mine and regional targets
Exploration| Gwalia near mine and regional targets A$8 - $9 M exploration budget for near mine and regional exploration around Gwalia for FY21 Exploration activity during the quarter focussed on • Gwalia Shallows o Additional drilling underway to assist resource estimation • Leonora Regional (Jasper
Slide 21: Exploration | Nova Scotia
Exploration | Nova Scotia A$10 - $12 M exploration budgeted in Canada for FY21 Exploration activity during the quarter focussed on: • Higgins-Lawlers-Stillwater target o Located 2 km south west of Touquoy • Northeast Regional • Southwest Regional 20 / Q2 December FY21 Quarterly Presentation
Slide 22: Exploration | Simberi Island
Exploration |Simberi Island A$2 - $3 M exploration budget in PNG for FY21 Exploration activity during the quarter focussed on • 5 oxide targets on Simberi Island are being drill tested with the aim of defining additional inferred resources • Drilling is expected to continue through part of Q3 Mar FY
Slide 23: What's next
What’s next In the 2H FY21 we will progress each of our three assets aligned with the strategy presented in December: • Delivery of the Simberi sulphide project feasibility study • Advance the Leonora Province action plan, including regional exploration • Submission of the EIS for both Beaver Dam an
Slide 24: Supplementary slides
Supplementary slides 23 / Q2 December FY21 Quarterly Presentation
Slide 25: We are at the forefront of inclusion and diversity in the minerals industry
We are at the forefront of inclusion and diversity in the minerals industry, ahead of much larger peers Achieved 28% representation of women in Australian operations workforce in 2020 Women across our PNG workforce increased to 16%, on track for achieving target of 18% by June 2022 33% of Directors
Slide 26: We strive to help our communities thrive, grow and prosper
We strive to help our communities thrive, grow and prosper We continued to build on the breadth and depth of experience in the business to enhance Traditional Owner and First Nations engagement capacity, an important component of the Community and Social Performance Strategy. In PNG, members of the
Slide 27: Consolidated production, costs and guidance summary
Consolidated production, costs and guidance summary Production Summary Q2 Dec Q3 Mar Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 St Barbara’s financial year is Qtr to Qtr to Qtr to Year to Qtr to Qtr to 6 months to Year to 1 July to 30 June 31 Dec 2019
Slide 28: Guidance summary – exploration, capex, production profile
Guidance summary – exploration, capex, production profile Exploration Guidance FY21 A$ M Australia Leonora Region 8–9 FY21 Production Pinjin WA, Lake Wells WA, Back Creek NSW 10 – 11 Indicative Quarterly Guidance Profile Tabar Island Group, Papua New Guinea 2–3 Nova Scotia, Canada 10 – 12 Consol
Slide 29: Hedging summary as at 27 January 2021
Hedging summary as at 27 January 2021 Volume Price Delivery Financial Year Type Delivery Announced ounces $/oz schedule FY21 2,138 C$1,759 Forward Feb 2021 - 24 Feb 2020 2 Mar 21 to European call 78,010 C$2,050 Apr 2021 to Dec 2022 Monthly 24 Feb 2020 1 Dec 22 options 28 / Q2 December FY21 Quarterly
Slide 30: Equity investments and joint ventures
Equity investments and joint ventures Joint ventures with Australian explorers Drummartin with Catalyst Metals (ASX:CYL) Horn Island with Alice Queen (ASX:AQX) Lake Wells with Australian Potash (ASX:APC) Equity investments in Australian explorers Catalyst Metals Limited (ASX:CYL) 14% Duketon Mining
Slide 31: Project pipeline
Project pipeline KEY Regional Nova Scotia Canada Papua New Guinea Moose River Corridor Australia Equity Investments Simberi Island (oxides) Back Creek Cochrane Hill Greater Gwalia Simberi Sulphides Pinjin Leonora Province Peel Mining Aust Potash1 Gwalia Shallows Touquoy Mine (13%) (Au, EJV) Catalyst
Slide 32: Atlantic brownfield expansion projects are progressing to provide long-term stable production
Atlantic brownfield expansion projects are progressing to provide long-term stable production Indicative timeline for Atlantic project development FY21 FY22 FY23 FY24 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Production Changes in Federal regulatory permitting Touquoy IA have impacted project timeli
Slide 33: Leonora province plan is to ramp up production from near-mine opportunities
Leonora province plan is to ramp up production from near-mine opportunities Indicative timeline for Leonora Province development First ore FY21 FY22 FY23 FY24 Plant at Leonora has up to Feasibility & mine planning Gwalia 0.4 Mt in spare capacity Intermediates (1.4 Mt total) Development & production
Slide 34: Simberi brownfield expansion will maintain production beyond FY24
Simberi brownfield expansion will maintain production beyond FY24 Simberi sulphides expansion project indicative timeline Timeline variability Critical path Detailed plan FY20 FY21 FY22 FY23 FY24 Simberi sulphides expansion is an extension of existing operations Ore oxide processing & Mining until F
Slide 35: Ore Reserves Summary as at 30 June 2020
Ore Reserves Summary as at 30 June 2020 Proved Probable Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,583 8.0 409 7,824 5.9 1,483 9,407 6.3 1,892 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 36: Mineral Resources Summary at 30 June 2020
Mineral Resources Summary at 30 June 2020 Measured Indicated Inferred Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 3,991 6.4 819 17,403 6.0 3,353 1,201 5.5 214 22
Slide 37: Competent persons statement; Non-IFRS measures
Competent persons statement Exploration Results The information in this presentation that relates to Exploration Results 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 employee of St Barbara and
Slide 38: Investor Relations enquiries
Investor Relations enquiries Garth Campbell-Cowan Chief Financial Officer David Cotterell Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Scheduled ASX Announcements 17 February 2021 FY21 Half Year Financial Report 37 / Q2 December FY21 Quarterly Presentation
Slide 39: Slide 39