36 slides from St. Barbara's earnings presentation, Jan 22, 2016
Slide 1: Presentation on Q2 December 2015 Quarterly Report and audio webcast
ASX Release / 22 January 2016 For personal use only Presentation on Q2 December 2015 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q2 December 2015 Quarterly Report at 10:00 am Australian Eastern Daylight Time (UTC + 11
Slide 2: Q2 December 2015 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 22 January 2016 For personal use only Q2 December 2015 Quarterly Presentation
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: Contents
Contents ˃ Highlights For personal use only ˃ Safety ˃ Operations Results ˃ Exploration ˃ Finance ˃ Conclusion ˃ Appendices 3 / Q2 December 2015 Quarterly Presentation
Slide 5: Highlights Q2 December 2015
Highlights Q2 December 2015 ˃ H1 FY16 gold production of 203 koz exceeded target, For personal use only resulting in FY16 guidance revised upward1 ˃ Significant debt reduction during quarter of US$33 million ˃ Debt repayment remains Company preferred use of continuing strong free cash flows ˃ Q2 pro
Slide 6: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate2 Safety performance 12.5 ˃ TRIFR1 a record low of 3.4 at 31 December 2015 9.0 ˃ Overall winners of CME (WA) Eastern Regional Council 6.0 2015 Underground Mine 5.0 Emergency Response 4.1 4.1 Competition3 in November 3.
Slide 7: Consolidated gold production – koz in H1 FY16
Consolidated gold production – 203 koz in H1 FY16 AISC (A$/oz) For personal use only 1,042 FY15 AISC A$1,007/oz 979 992 798 863 Q2 December FY16 Quarter: eee ˃ Production for Company of 92 koz Production (koz) 111 111 ˃ First half production of 203 koz 98 99 22 92 (H2 FY15: 210 koz) 30 17 12 27 ˃ Gw
Slide 8: Gwalia gold production - koz in H1
Gwalia gold production - 136 koz in H1 AISC (A$/oz) For personal use only 883 860 FY15 AISC A$841/oz 846 Q2 December FY16 Quarter: 692 645 ˃ 63,533 oz produced in Q2 (Q1: 72,388 oz) ˃ 135,921 oz produced in H1 FY16 ˃ AISC1 of A$846/oz (Q1: A$692/oz) Mined Grade June 2015 9.7 9.7 (g/t Au) Reserve gra
Slide 9: Simberi: record half year and calendar year gold production
Simberi: record half year and calendar year gold production For personal use only AISC (A$/oz) 1,619 Q2 December FY16 Quarter: ˃ 28,379 oz produced in Q2 (Q1: 29,539 oz) 1,310 1,319 1,252 1,149 ˃ Record production: > 58 koz for H1 FY16 > 108 koz for CY 2015 ˃ AISC1 of A$1,319/oz impacted by signific
Slide 10: Simberi: ore milled and gold production stable Q1 to Q2
Simberi: ore milled and gold production stable Q1 to Q2 For personal use only Ore milled Ore and Waste Mined last 5 quarters last 5 quarters = 2,606 859 = 2,417 832 1,710 750 768 1,541 = 1,882 620 = 1,618 1,157 = 1,389 1,158 905 896 876 725 484 460 FY15 FY15 FY15 FY16 FY16 FY15 FY15 FY15 FY16 FY16 Q
Slide 11: Organic growth studies - progress
Organic growth studies - progress Gwalia materials handling For personal use only ˃ Conceptual studies on potential materials handling systems for deeper mining. These studies include: ˃ blind and raise-bore shafts with skip hoisting ˃ a shaft with vertical conveying ˃ new ventilation shafts to faci
Slide 12: Gwalia Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, Stope diagram of South West Branch constrained by: showing mining in Q3 & Q4 FY2015 For personal use only 1) Waiting for adjacent/above stope’s Plunge, centre paste fill to dry of lode 2) Geotech considerations – not too
Slide 13: Exploration: Focus on near mine targets
Exploration: Focus on near mine targets For personal use only Exploration > Gwalia Deep Drilling (WA) > Centenary (WA) > Pinjin (WA) > Simberi (PNG) + Banesa (PNG) 12 / Q2 December 2015 Quarterly Presentation
Slide 14: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For personal use only Gwalia Deep Drilling Program > The full drilling program is aimed at delineating an indicated resource to support the planned shaft studies. > Refer report1 for full results of recent 6 holes that successfully intersected mine sequence
Slide 15: Exploration: Future Gwalia – Drilling Plan
Exploration: Future Gwalia – Drilling Plan For personal use only Figure 1.1 1. For full explanation and results refer to ASX release 21 January 2016 ‘Quarterly Report December 2015’ 14 / Q2 December 2015 Quarterly Presentation
Slide 16: Exploration: Gwalia West Lode – Long Section
Exploration: Gwalia West Lode – Long Section For personal use only West Lode > West Lode is one of the four major lode structures1 identified within the Gwalia Mine Sequence, and is located approximately 80m to the west of South West Branch. > Drilling results2 show encouraging grade and thickness:
Slide 17: Exploration: Centenary
Exploration: Centenary For personal use only Centenary > In Q3 FY15 St Barbara conducted electromagnetic (EM) survey work on Centenary Project approximately 60 km north of Leonora. Four sites were drilled in Q4 FY15 with follow up drilling in Q1 and Q2 FY16 > New drilling targeted an anomalous nicke
Slide 18: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA For personal use only Pinjin > The Pinjin Project is located 150km northeast of Kalgoorlie, comprising a large tenement package of 1,358 km2 (Figure 3.1). > Two reconnaissance field visits were conducted during the quarter and necessary approvals obtained. > A signifi
Slide 19: Exploration: Focus on near mine targets at Simberi
Exploration: Focus on near mine targets at Simberi For personal use only Simberi PNG > Encouraging results 1 from drilling at Pigibo North (13 holes for 780m) and Patan (8 holes for 500m) included: Pigibo North: SDH342: 22m @ 0.7 g/t Au from 3m SDH347: 18m @ 1.0 g/t Au from 0m Patan: SDH348: 5m @ 14
Slide 20: Exploration: Big Tabar Island
Exploration: Big Tabar Island For personal use only Big Tabar Island > Further follow up trenching was conducted in the quarter on the Banesa Au-Cu porphyry prospect. Significant trench sampling results1 include: TABTR168: 20m @ 1.1 g/t Au and 0.3% Cu, and 30m @ 1.2 g/t Au TABTR171: 30m @ 1.2 g/t Au
Slide 21: Cash and debt
Cash and debt June 2014 June 2015 Sep 2015 Dec 2015 For personal use only A$M A$M A$M A$M Cash balance 1 79 77 115 100 Interest bearing debt FX 0.94302 0.77132 0.70103 0.73063 ˃ US Senior Secured Notes US$ 250 196 183 180 ˃ Red Kite US$ 75 75 66 36 ˃ Total USD$ debt US$ 325 271 249 216 ˃ A$ equivale
Slide 22: Debt and hedging at December 2015
Debt and hedging at 31 December 2015 For personal use only US Senior Secured Notes ˃ US$250 million issued March 2013, US$180 million balance at 31 Dec 2015 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a., matures April 2018 ˃ US$70 million re
Slide 23: Cash and Debt FY15 and H1 FY16
Cash and Debt FY15 and H1 FY16 Debt, Cash Balance & Contribution from Operations For personal use only (FY15 to present) 420 AUD Debt2,3 390 367 358 347 325 325 325 299 USD Debt2 271 249 216 108 115 Cash balance1 Cash b 100 70 77 56 80 70 69 Cash Contribution4 57 10 32 FY15 FY15 FY15 FY15 FY16 FY16
Slide 24: Conclusion
Conclusion ˃ FY16 H1 gold production 203 koz, exceeded target For personal use only ˃ guidance increased at Gwalia ˃ guidance revised to upper end at Simberi ˃ US$ debt reduced by US$33 million in December 2015 quarter ˃ US$109 million of debt repaid since 1 June 2015 ˃ Gwalia H1 gold production 136
Slide 25: Appendices
For personal use only Appendices 24 / Q2 December 2015 Quarterly Presentation
Slide 26: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY15 FY15 FY15 FY16 FY16 FY163 For personal use only Production Gwalia oz 76,954 57,208 248,142 72,388 63,533 245 - 260 koz (prev 230 to 250 koz) King of the Hills oz 11,836 15,
Slide 27: St Barbara vs other gold companies, ASX & globally
St Barbara vs other gold companies, ASX & globally Free cash flow, Enterprise Value, Production Bubble size = For personal use only 7,000 production rate RRS LN (kozpa) AEM US DGC CN 6,000 NCM 5,000 GG US ABX US EV/Production (A$/oz) NEM US NGD US EGO US 4,000 AQG RRL EVN AUY US 3,000 BTG US KGC US
Slide 28: St Barbara share price
St Barbara share price ASX:SBM For personal use only $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 Source: IRESS 27 / Q2 December 2015 Quarterly Presentation
Slide 29: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$849 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 367 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,025/oz ˃ A
Slide 30: Exploration: Gwalia – Schematic Lode Plan View
Exploration: Gwalia – Schematic Lode Plan View For personal use only 29 / Q2 December 2015 Quarterly Presentation
Slide 31: St Barbara Emergency Response Teams: International success
St Barbara Emergency Response Teams: International success For personal use only St Barbara WA: Winners in 3 categories and overall winners, CME (WA) Eastern Regional Council 2015 Underground Mine Emergency Response Competition, held at Kanowna Belle WA, in November 2015 Gwalia Gwalia –– Undergroun
Slide 32: Ore Reserves Summary as at June 2015
Ore Reserves Summary as at 30 June 2015 Project Proved Probable Total For personal use only Tonnes (k) Au koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t g/t Gwalia (WA) 2,100 9.1 614 3,190 9.6 980 5,290 9.4 1,594 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 3,800 1.5 178 15
Slide 33: Mineral Resources Summary as at June 2015
Mineral Resources Summary as at 30 June 2015 Project Measured Indicated Inferred Total For personal use only Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia (WA) 4,781 7.2 1,112 6,112 9.3 1,833 2,036 5.5 359 12,929 7.9 3,304 King of the Hills - - - 799
Slide 34: Competent Persons Statement
Competent Persons Statement For personal use only 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 Musta
Slide 35: Non-IFRS Measures
Non-IFRS Measures For personal use only 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 ass
Slide 36: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 35 / Q2 December 2015 Quarterly Presentation