30 slides from St. Barbara's earnings presentation, Aug 25, 2011
Slide 1: Presentation by Garth Campbell-Cowan, Chief Financial Officer
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 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 by Garth Campbell‐Cowan, Chief Financial Officer Attached is a pres
Slide 2: Delivering Profit Growth: FY11 Full Year Financial Report
For personal use only Delivering Profit Growth FY 11 Full Year Financial Report G hC Garth Campbell‐Cowan b ll C Chief Financial Officer Deutsche Bank 25 August 2011 1
Slide 3: Forward statements
Forward statements 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 relati
Slide 4: Contents
Contents For personal use only • Increasing production • Strong lift in profit • Tax effect accounting • Depreciation & amortisation • Balance Sheet • Guidance FY 11 Full Year Financial Results 3
Slide 5: Record gold production underpins higher returns
Record gold production underpins d i hi higher h returns t For personal use only GOLD PRODUCTION ounces 275,000 +12% 258 474 258,474 250,000 238,900 231 018 231,018 225,000 200,000 FY 09 FY 10 FY 11 FY 11 Full Year Financial Results 4
Slide 6: Strong lift in FY11 profit
Strong lift in FY11 profit For personal use only Revenue $369 0M $369.0M +22% NPAT $68.6M +$108.8M Underlying NPAT $54.4M +$39.9M EPS $ 0.21 0 21 +$0 35 +$0.35 Cash flow – Operations $117.1M +53% Cash on hand $79.5M Receivables for gold sales $15 0M $15.0M Total debt $12.1M FY 11 Full Year Financial
Slide 7: Profitability increasing
Profitabilityy increasingg For personal use only UNDERLYING NPAT Improving profitability fi bili iis a $54 4M $54.4M keyy stepp in drivingg $M 60 54.4 better returns and 50 creating ti 40 30 shareholder 20 10 0.2 14.5 value” 0 FY 09 FY 10 FY 11 TIM LEHANY MANAGING DIRECTOR & CEO FY 11 Full Year Fina
Slide 8: Key drivers of underlying NPAT
Keyy drivers of underlying y g NPAT For personal use only $m $ K D Key Drivers i off IImprovementt iin Underlying U d l i NPAT 80 70 36.9 6.5 60 4.0 54.4 50 (5.4) (8.1) (2.5) 40 30 85 8.5 20 14.5 10 0 FY 2010 Gold sales Gold Sales Mine operating Corporate Exploration Interest Other FY 2011 volume -
Slide 9: Operating costs carefully managed
Operating p g costs carefullyy managed g For personal use only $m Operating Costs 230 7 2 218 220 16 (3) 210 200 196 190 Under Construction 180 170 160 150 FY 2010 Mine costs Mine costs Gold royalties Toll FY 2011 - volume - price processing revenue FY 11 Full Year Financial Results 8
Slide 10: Depreciation and amortisation
Depreciation p and amortisation For personal use only DEPRECIATION AND FY 11 FY 10 AMORTISATION $/oz $/oz Gwalia 268 269 Southern Cross 170 179 FY 11 Full Year Financial Results 9
Slide 11: Moving to tax effect accounting
Movingg to tax effect accountingg For personal use only • $342M est. gross tax losses available at 30 June 2011 • $168M tax losses recognised at 30 June 2011 • $174M tax losses carried forward • Deferred tax accounting commenced at 30 June 2011 • Actual tax payments expected to be at least two years
Slide 12: Minimum prices secured to lock in margins
Minimum prices secured to lock in margins for non‐core, non core higher cost operations For personal use only Hedge Profile Hedge Profile King of the Hills Southern Cross koz A$/oz koz A$/oz 80 1,650 80 1,650 70 1,600 70 1,600 60 60 1,550 1,550 50 50 1,500 1,500 40 40 1,450 1,450 30 30 1,400 1,400 2
Slide 13: Increasing operating cash flows driven by production increases
Increasing operating cash flows driven by production increases For personal use only OPERATING CASH FLOW $M +53% 140 117 120 100 77 80 60 40 24 20 0 FY 09 FY 10 FY 11 FY 11 Full Year Financial Results 12
Slide 14: Investing in development
Investingg in development p For personal use only CAPITAL EXPENDITURE • Capital predominantly mine development $M $118M Property, Plant, Equipment • King of Hills mine 60 successfully 3 Mine Development & 50 Infrastructure commissioned adding 40 to production base 6 30 51 7 • Funded from cash 20 res
Slide 15: Investing in discovery
Investing in discovery For personal use only EXPLORATION EXPENDITURE Drilling at Gwalia during FY11 has added 515,000 ounces to $22M resources at depth1 $2.5M $ $2.9M $11.7M $4 9M $4.9M Drilling Salaries & Admin Land Holding Support Activities [1] June 2011 Ore Reserves and Mineral Resources Stateme
Slide 16: Strong balance sheet = flexibility
Strongg balance sheet = flexibilityy For personal use only DEBT REDUCED BY • A Assett fi financing i ffacility ilit to be paid out in August 2011 $3.8M $M Cash vs Debt • Internal growth funded 120 102 from cash flows 100 79 80 • Conventional banking 60 facilities established 40 20 0 ‐20 ‐16 ‐12 ‐40
Slide 17: Focus on delivering shareholder returns
Focus on delivering shareholder returns For personal use only UNDERLYING EARNINGS NET TANGIBLE ASSETS PER SHARE UP 238% PER SHARE UP 24% 16 70¢ 16.70¢ $1 34 $1.34 Cents $1.60 18 16.70 1.34 16 $1.40 14 $1.20 1.08 12 $1.00 10 $0.80 8 $0.60 6 4.94 4 $0.40 2 $0.20 ‐ $0.00 FY 10 FY 11 Jun 10 Jun 11 FY 11
Slide 18: FY12 Outlook
For personal use only FY12 OUTLOOK FY 11 Full Year Financial Results 17
Slide 19: FY12 Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora SS’thn thn Cross Gold production koz 175 190 175‐190 55 60 55‐60 90 100 90‐100 320 350 320‐350 Cash operating 1,170 $/oz 610‐640 710‐750 ‐ cost ‐1,220 , Capex $M 55‐60 55 60 20‐25 20 25 10‐15 10 15 85‐100
Slide 20: Leveraging value for Leonora operations
Leveraging value for Leonora operations i For personal use only • Business Improvement Program • Procurement P t centralised t li d ‐ $10M costt savings i iin 2 years • Increased productivity in mining • Haulage optimisation study underway • Potential for increased volumes • Reduce life of mine oper
Slide 21: Production growing
Production ggrowingg 30 % For personal use only PRODUCTION COST CAPEX • FY 12 gold production guidance up 30% to 320‐350 koz • Gwalia output underpinned by increasing grades • Southern h Cross production d i maintained i i d at 90‐100 koz for another year • King of the Hills full year production at
Slide 22: Gwalia costs to reduce significantly
Gwalia costs to reduce significantly g y For personal use only PRODUCTION COST CAPEX • FY12 Gwalia cash cost gguidance $610‐640/oz compared to FY11 $765/oz • Driven primarily by increase in grade to 8.0 – 8.5 g/t Au • Southern Cross price protection secures solid cash margin • King of the Hills cash
Slide 23: Capex disciplined
Capex p disciplined p For personal use only PRODUCTION COST CAPEX • Gwalia capex $55‐60 M –One O off ff ddecline li duplication d li i in i FY12 • King of the Hills $20‐25 M –Higher Hi h capital i lddevelopment l b but llower operating development • Southern S h Cross C –Lower capex $10‐15 M underpi
Slide 24: Carbon Tax
Carbon Tax For personal use only PRODUCTION COST CAPEX • CO2‐e emissions estimated to be 117 kt in FY13 • Unable to pass higher costs on to customers • Gold sector unlikely to receive transitional assistance • Impact in FY 13 estimated to be $1M1,2,3, , • Continue to seek energy efficiencies to redu
Slide 25: Investor Relations Enquiries
For personal use only Investor Relations Enquiries to: Ross Kennedy Executive General Manager Corporate Services Rowan Cole General Manager Corporate Services T: +61 3 8660 1900 E: rowan.cole@stbarbara.com.au FY 11 Full Year Financial Results 24
Slide 26: Appendices
For personal use only APPENDICES FY 11 Full Year Financial Results 25
Slide 27: Results summary
Results summary For personal use only FY 11 FY 10 $M $M Sales revenue 359.6 296.8 EBITDA (including significant items) 125.2 33.8 EBIT (including significant items) 66.7 (38.1) Reported net profit (loss) after tax for the year 68.6 (40.2) Total significant items (after tax) 14.2 (54.7) EBITDA (exclu
Slide 28: Significant items
Significant g items For personal use only SIGNIFICANT ITEMS FY 11 FY 10 $M $M Profit on sale of Tarmoola processing plant 1.2 ‐ Net fair value gain (loss) on derivatives 13.4 (19.5) g Proceeds from sale of tenement rights 2.0 ‐ Native Title accrual (2.4) ‐ Gain on sale of investments ‐ 2.7 Asset imp
Slide 29: EBITDA to NPAT
EBITDA to NPAT For personal use only FY 11 FY 10 $M $M EBITDA 125.2 33.8 Depreciation & Amortisation (58.5) (71.9) Interest Revenue 5.6 5.2 Interest Expense (3.7) (7.3) Income Tax Expense ‐ ‐ NPAT 68.6 (40.2) FY 11 Full Year Financial Results 28
Slide 30: Net cash flow composition
Net cash flow composition p For personal use only FY 11 FY 10 $M $M EBITDA (underlying) 111.0 73.2 Operating cash flows below EBITDA: Net interest 51 5.1 (0 3) (0.3) Other finance costs (1.1) (1.8) Net working capital 1.1 5.7 Other non‐cash items 1.0 (0.2) Net operating cash flows 117.1 76.6 FY 11 F