32 slides from St. Barbara's earnings presentation, Feb 21, 2013
Slide 1: Presentation on the December 2012 Half Year Report
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 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 on the December 2012 Half Year Report Attached is a presentation to
Slide 2: December 2012 Half Year Results
For personal use only December 2012 Half Year Results Acquisition and integration of Pacific Assets Garth Campbell-Cowan, Chief Financial Officer 21 February 2013 1
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: Outline
Outline For personal use only • St Barbara Overview • Financial results • Profit and Loss • Balance Sheet • Sale of Southern Cross • Conclusion • Appendices December 2012 Half Year Result 3
Slide 5: Overview: Three gold operations underpinned by long life ore reserves
Overview: Three gold operations underpinned by long life ore reserves and prospective for growth For personal use only Reserves: 5.7 Moz 4 Simberi Resources: 16.6 Moz 4 Simberi FY13F production: • Low strip open pit mine • aggregate 400 koz 2 • Expanding production Gold Ridge capacity to 100 koz p.a
Slide 6: Financial results – 1H FY13
Financial results – 1H FY13 (inc. Allied Gold from 7 Sep 2012) For personal use only $100M Significant investment in Pacific Operations Net cash flow 1H FY13 to ensure production reliability and lower $50M unit costs $48M $0M Profit and cash flow -$64M • NPAT $2.5M, Underlying NPAT $17.2M [1] -$50M
Slide 7: Production up 10% on corresponding half
Production up 10% on corresponding half For personal use only Gold Production 185 • Production growth 170 trend continues 154 after record 32 124 134 2H FY12 114 117 138 • Production growth expected to continue into 2H FY13 2005 Acquired gold assets of Sons of Gwalia 1H FY 10 2H FY 10 1H FY 11 2H FY
Slide 8: Pacific Operations yet to contribute
Pacific Operations yet to contribute For personal use only Key profit drivers Segment Profit A$M Australian Operations 60 • Lower production at Gwalia 50 • Winding down of Southern Cross 40 Operations –EBIT loss but $6M 30 net cash generated 20 Pacific Operations 10 • Simberi production shutdowns 0
Slide 9: Key changes in underlying EBIT
Key changes in underlying EBIT* For personal use only $M 3 (38) 50 (20) 47 (14) (2) 2 2 30 EBIT* Gold Gold Unit Volume D&A Corporate Exploration Other EBIT* 1H FY 12 volume price operating operating 1H FY 13 costs costs * Non-IFRS measure, calculation in Appendix. 8 December 2012 Half Year Result
Slide 10: Key changes in underlying Australian EBIT
Key changes in underlying Australian EBIT* For personal use only $M 48 (6) 1 (6) (2) 1 40 2 2 Underlying Gold Gold price Unit Volume Movement Exploration Other Underlying EBIT* volume operating operating in EBIT* 1H FY 12 costs costs derivatives 1H FY 13 * Non-IFRS measure, calculation in Appendix.
Slide 11: Significant items in NPAT
Significant items in NPAT 1H FY13 For personal use only $M 3 (4) 2 4 4 17 8 7 3 NPAT Southern Acquisition Integration Redundancy Borrowing Unrealised Tax effect Underlying Cross costs gain NPAT* derivatives December 2012 Half Year Result * Non-IFRS measure, calculation in Appendix. 10
Slide 12: Cash used to support growth of Pacific Operations
Cash used to support growth of Pacific Operations For personal use only $M 142 (207) 185 (14) (64) 48 (24) 66 Pacific Assets Cash Borrowings Consideration Acquisition & Pac Ops Aust Ops Corp, Expl, Other Cash Jun 12 Integration net cash flow net cash flow Dec 12 December 2012 Half Year Result 11
Slide 13: Operational cash flows
Operational cash flows 1H FY 13 For personal use only $M 100 80 60 40 20 0 Operating cash flow -20 Capex -40 Working Capital -60 Australian Operations Pacific Operations December 2012 Half Year Result 12
Slide 14: Investing in development
Investing in development For personal use only Capital Expenditure 1H FY13 $M $70M 2 5 Mine infrastructure 23 Surface infrastructure Mine development 18 13 5 0.4 2 2 Gwalia King of the Southern Gold Ridge Simberi Hills Cross December 2012 Half Year Result 13
Slide 15: Significant changes in Net Assets
Significant changes in Net Assets For personal use only $M 72 (77) 270 (146) (259) 366 48 838 564 Pacific Assets Net Assets PPE Mining Inventories Gold Other net Net debt Other Net Assets Jun 12 rights loan liabilities Jun 13 December 2012 Half Year Result 14
Slide 16: Financial strength
Financial strength For personal use only • Gearing 21% [1, 3] Cash & Debt • Gross tax losses $220M [2], 217 not expecting to pay tax for at 185 least two years • Ability to fund Pacific Operations growth from cash flow • Capital management reviewed 66 regularly 4 Cash Debt Cash Debt 1. As at 31 Dec
Slide 17: Banking facilities
Banking facilities Well capitalised for development For personal use only Bank debt facilities increased from $120 to $150 million • Better aligns the facility with working capital and investment requirements of the Pacific Operations • Provided by Barclays and Deutsche • Term of up to 4 years using
Slide 18: Sale of Southern Cross strengthens finances
Sale of Southern Cross strengthens finances For personal use only • Sale to Hanking Gold Mining Pty Ltd • Sale agreement subject to preconditions • Payment of $22.5M, deposit of $5M received in trust • Rehabilitation obligations of approx. $17 million transfer to the acquirer December 2011 Half Year
Slide 19: Conclusion
Conclusion For personal use only • Focus on restoring and improving infrastructure, mining and processing reliability at Gold Ridge and Simberi • Production expected to increase in Q3 and Q4 • FY13 guidance issued in December 2012 maintained • Drilling programs targeting discoveries continuing at: •
Slide 20: Appendices
Appendices For personal use only December 2012 Half Year Result 19
Slide 21: Acquisition of Allied Gold
Acquisition of Allied Gold For personal use only • St Barbara gained control of Allied Gold Mining Plc on 7 September 2012 • Consideration: Cash $211 million Equity $273 million Purchase price $484 million • Allocation of purchase price in financial statements is provisional December 2011 Half Year
Slide 22: St Barbara Attributable Gold Production
St Barbara Attributable Gold Production For personal use only St Barbara Attributable Gold Production • This chart only includes 99 production attributable to St Barbara, 93 86 11 84 28 incorporating 78 4 13 24 25 4 production from the 16 12 19 14 17 13 16 Pacific Operations from 46 44 54 44 the dat
Slide 23: Consolidated Guidance
Consolidated Guidance Gold production attributable to St Barbara [1] For personal use only Q3 FY13 Q4 FY13 FY13 Gold Production koz 371-401 • Leonora 230-250 • Southern Cross 31 • Gold Ridge 16-18 23-25 55-60 • Simberi [2] 16-18 20-22 55-60 Cash Operating Costs A$/oz • Leonora 710-745 • Southern Cro
Slide 24: Focus on returns from non-core, higher cost operations
Focus on returns from non-core, higher cost operations For personal use only Hedge Profile Red Kite monthly loan koz King of the Hills A$/oz koz repayments* 80 1,650 3.0 A$1,615 70 1,600 2.5 60 1,550 2.0 50 1,500 1.5 40 1,450 1.0 30 A$1,425 1,400 0.5 20 1,350 0.0 10 Apr-13 Jul-13 Apr-14 Jul-14 Oct-1
Slide 25: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Top 100 Shareholding Structure UK, 28% Private 7% Australia, 27% Unallocated / not analysed 9% USA, 26% Institutions 84% Europe, 4% Asia, 3% Other / not analysed, 12% Analysis and geographic spread of Top 100 Shareholder
Slide 26: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Argonaut Securities Troy Irvin M&G Investment Mgt 19% Baillieu Sophie Spartalis Van Eck Associates 8% Bell Potter Stephen Thomas Franklin Resources 6% Canaccord Luke
Slide 27: Start safe, stay safe
Start safe, stay safe For personal use only Safety • TRIFR includes Pacific Operations 14.8 from September 2012 12.5 11.1 9.0 7.6 6.4 FY 09 FY 10 FY 11 FY 12 Q1 Q2 TRIFR FY 13 FY 13 (rolling 12 month average Total Recordable Injury Frequency Rate) Note: TRIFR for Sep 2012 initially reported as 6.1 b
Slide 28: Non-IFRS Measures
Non-IFRS Measures For personal use only 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 and underlying net profit after tax. We believe tha
Slide 29: Non-IFRS Measures
Non-IFRS Measures For personal use only 31 Dec 12 31 Dec 11 NPAT to Underlying NPAT [1] A$000 A$000 Sales revenue 285,755 249,315 EBITDA (including significant items) 65,574 88,937 EBIT (including significant items) 13,676 42,764 Reported net profit/(loss) after tax for the year 2,461 46,518 Total n
Slide 30: Non-IFRS Measures
Non-IFRS Measures For personal use only 31 Dec 12 31 Dec 11 Significant items [1] A$000 A$000 - Unrealised gain/(loss) on derivatives (4,087) 7,464 Realised gain on derivatives (190) (635) Borrowing costs written off 2,678 - Southern Cross related disposal costs 305 - Allied Gold related acquisition
Slide 31: Competent persons statement
Competent persons statement For personal use only The information in this report that relates to Company-wide Exploration Results and Mineral Resources in Australia is based on information compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Phillip
Slide 32: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 31 December 2012 Half Year Result