St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (February 2017)
54 slides from St. Barbara's corporate update, Feb 1, 2017
Slide 1: Presentation to analysts and investors at Leonora Operations
ASX Release / 1 February 2017 Presentation to analysts and investors at Leonora Operations Attached is a presentation to analysts and investors attending site visits during February at Leonora Operations, Western Australia. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Rel
Slide 2: Gwalia investor and analyst site visit February 2017
Kous Kirsten, General Manager Leonora Operations Rowan Cole, Company Secretary Gwalia investor and analyst site visit February 2017
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 of St Barbara ˃ Assets and Guidance ˃ Safety ˃ Gwalia Mine, Leonora, WA ˃ Production ˃ Innovation ˃ Growth ˃ Exploration Byrnecut Atlas Copco underground mining trucks at Gwalia November 2016 – ˃ Appendices MT65 in foreground, MT6020s in background. 3 / Leonora Operations Site Vi
Slide 5: St Barbara's history
St Barbara’s history 2006 Name changed to 2008 St Barbara Ltd Gwalia commissioned 2005 Leonora and Southern Cross acquired from Sons of Gwalia 2011 administrators King of the Hills & Meekatharra sold commissioned Gold production, Meekatharra, WA 2012 Allied Gold Ltd acquired 1991 Inc. Simberi and Go
Slide 6: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production > Shares on issue 497 M ˃ FY16 387 koz @ AISC4 A$933/oz > Market Cap2 A$1,159 M ˃ FY17F3 360 koz @ AISC A$990/oz > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resources June 2016 9.1 Moz 1 Simberi Leonora ˃ Gwal
Slide 7: FY16 Highlights
FY16 Highlights > Record Safety > Balance sheet repaired > Record Production > Addition to Gwalia > Record Profit Resources & Reserves > Best performing stock > Record Cash Flow in ASX 2001 1. www.mywealth.commbank.com.au, 1 July 2016. 6 / Leonora Operations Site Visit / February 2017
Slide 8: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (A$/oz) A$0 Resolute A$200 St Barbara Oceana Gold A$400 Evolution A$600 Saracen Regis A$800 Bubble size = estimated A$1,000 production rate Northern Star (koz p.a.) A$1,200 0% 5% 10% 15% 20% 25% 30% FCF Yield (FCF/EV) Source: Bell Potte
Slide 9: Gold positioning end 2016
Gold positioning end 2016 $10,000 EV/Production (US$/oz) $8,000 AEM TXG RRS NCM $6,000 OGC ABX GG NEM $4,000 THO EVN NST $2,000 SBM ACA * Bubble size = Production FCF (US$/oz) $0 $0 $100 $200 $300 $400 $500 $600 $700 Source: Global Mining Research (GMR), 1 February 2017, with permission 8 / Leonora
Slide 10: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate2 Safety performance 9.0 > Record low TRIFR1 of 1.8 continued to 31 December 2016 > Gwalia Emergency Response 6.0 Team overall winners for the 5.0 second year running in CMEWA 4.1 Underground Mine Emergency Response Competition3 > Initiativ
Slide 11: Gwalia, a mine with a rich history and future
Gwalia, a mine with a rich history and future > Low cost, high margin, cash generator1 > Long life2 > Opportunities to grow & extend3 1. Q2 Dec 2016 AISC A$ 716/oz, Leonora operating cash flow A$71M, refer Q2 December 2016 Quarterly Report (released 18 January 2017). 2. Gwalia mine plan to 2024, ref
Slide 12: Record production driven by productivity gains
Record production driven by productivity gains Mined Grade 9.3 (g/t Au) 8.8 8.9 8.2 8.4 6.9 6.3 Reserve Grade FY16 continued improvement 5.7 8.3 g/t Au June 2016 > FY16 production of 267 koz 267 265 Production 255 (FY15: 248 koz) (koz) 248 > AISC of A$783/oz 214 (FY15: A$841/oz) 185 183 AISC (A$/oz)
Slide 13: 8% year on year improvement with key innovations
8% year on year improvement with 3 key innovations Gwalia A rich history with a bright future Ore passes Allows bogger to work constantly, independent of ore trucks, removes ore from fired stopes more rapidly, allowing paste-filling and adjacent stopes to be fired earlier Continuous Remote Tele-bogg
Slide 14: Gwalia Q2 December 2016 quarter
Gwalia Q2 December 2016 quarter AISC (A$/oz) 846 836 770 774 716 FY16 average A$783/oz Q2 December 2016 quarter Mined Grade 11.9 (g/t Au) 10.4 > Production of 70,925 oz 10.2 9.3 (Q1: 67,118 oz) 7.9 FY16 average 9.3 g/t Au > AISC1 of A$716/oz Reserve grade 8.3 g/t Au (Q1: A$774/oz) Production (koz) 7
Slide 15: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB Mining method mining sequence manages the hanging wall ˃ Long hole stoping with fill FY11 ˃ North & South access on 2 two dual lift levels gives 4 mining areas 1 5 ˃ Greater percentage of free bogging increases 4 productivity of each stope Note: Single
Slide 16: Stope Cycles targeting higher production
Stope Cycles targeting higher production Stope Cycle Time – 6 months per stope ˃ ‘Bogging’ (extracting ore from the stope) represents just under 50% of stope cycle time ˃ Filling and curing around 30% of stope cycle time ˃ Adjacent stopes (beside, above, below) cannot be developed until curing compl
Slide 17: Gwalia Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many of lode open stopes too close together = ‘Centre out’ method Historical stopes (light blue)
Slide 18: St Barbara vs Global Gold Miners – Q4 June 2016 AISC
St Barbara vs Global Gold Miners – Q4 June 2016 US$ AISC Gwalia 1,400 Q4 June 2016 Global gold production – AISC 53 companies, 196 mines A rich history with a bright future 1,200 1,000 St Barbara US$716/oz AISC (inc. Gwalia US$644/oz AISC) 800 AISC (US$/oz) 600 400 200 0 0 2 4 6 8 10 Asia Africa Aus
Slide 19: Upgrade to Gwalia Resources & Reserves
Upgrade to Gwalia Resources & Reserves Gwalia A rich history with a bright future Gwalia Mineral Resource June 2015 Gwalia Mineral Resource June 2016 Measured 200m depth Indicated Inferred extension of Resource model +938 +193 +297 -346 -277 3,896 1,594 1,808 3,304 koz koz Gwalia Reserves Gwalia Res
Slide 20: Gwalia Extension Project
Gwalia Extension Project Ventilation upgrade feasibility study announced in August 2016 completed and approved. Gwalia> Allows mining to 2,000 metres below surface (mbs) A rich> history with a bright future Option to extend vent infrastructure in the future to mine to 2,200 mbs1 ˃ Paste Aggregate
Slide 21: Gwalia Extension Project – Ventilation Upgrade
Gwalia Extension Project – Ventilation Upgrade 20 / Leonora Operations Site Visit / February 2017 Conceptual illustration only, studies underway will determine final design
Slide 22: Gwalia Extension Project – PAF Isometric Fixed Plant View
Gwalia Extension Project – PAF Isometric Fixed Plant View 21 / Leonora Operations Site Visit / February 2017 Conceptual illustration only, studies underway will determine final design
Slide 23: PAF Isometric View
PAF Isometric View 1 2 1 Bogging Location 1 2 Bogging Location 2 Current Paste Infrastructure Proposed PAF Fixed Plant Waste Capacity 22 / Leonora Operations Site Visit / February 2017 Conceptual illustration only, studies underway will determine final design
Slide 24: Q2 December 2016 Exploration Results
Q2 December 2016 Exploration Results Gwalia A rich history with a bright future Gwalia - March 2016 23 / Leonora Operations Site Visit / February 2017
Slide 25: Exploration: Gwalia Summary
Exploration: Gwalia Summary Gwalia Deeps Extension Successful completion of daughter holes GWDD18B and GWDD18C Intersected 88m and 81m of Mine Sequence respectively interpreted to represent extensions of South West Branch Further drilling of ten additional daughter holes scheduled to be comple
Slide 26: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 25 / Leonora Operations Site Visit / February 2017
Slide 27: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 26 / Leonora Operations Site Visit / February 2017
Slide 28: Exploration: Gwalia Deeps Northern Extension
Exploration: Gwalia Deeps Northern Extension For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 27 / Leonora Operations Site Visit / February 2017
Slide 29: Exploration: Summary of greenfields projects
Exploration: Summary of greenfields projects Pinjin, WA > 3,329 metre RC drill program completed > In Q3 March 2017 a 17,000 metre aircore drill program commencing to follow up encouraging early stage results Back Creek, NSW > 3,776 line kilometre airborne geophysical survey was completed Tatau Isla
Slide 30: Exploration: Pinjin, WA
Exploration: Pinjin, WA For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’. 29 / Leonora Operations Site Visit / February 2017
Slide 31: Exploration: Pinjin, WA
Exploration: Pinjin, WA For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 30 / Leonora Operations Site Visit / February 2017
Slide 32: Exploration: Back Creek, NSW
Exploration: Back Creek, NSW Gwalia Back Creek, NSW A rich history with a bright future An airborne geophysical survey completed during the December 2016 quarter Data processing and image generation will be completed early in the March 2017 quarter A 3 sub-block application ELA5392 was submitt
Slide 33: Exploration: Gwalia Seismic campaign
Exploration: Gwalia Seismic campaign ˃ Use sound waves reflecting off mineral ˃ Q1 Gwalia, Q2 ‘Greater Gwalia’ Gwalia formations to explore. ˃ Leading edge use of sensors down deep A ˃richUsed history with a bright successfully future by other WA Gold drill holes miners 32 / Leonora Operations Site
Slide 34: Conclusion
Conclusion ˃ Q2 Dec 2016: 99 koz gold produced at AISC1 A$876 /oz ˃ Gwalia Extension Project studies approved, now includes PAF underground crushing and paste mixing ˃ Strong cash contribution leads to net cash1 position ˃ A$121M debt repayments in Q2 Dec 2016, further US$20M reduction in January 20
Slide 35: Appendices
Appendices 34 / Leonora Operations Site Visit / February 2017
Slide 36: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY16 FY16 FY17 FY17 FY173 Production Gwalia oz 65,098 267,166 67,118 70,925 255 to 265 koz (previously 245 to 265 koz1) King of the Hills4 oz - 9,112 - - - Simberi oz 26,935 110,286 25
Slide 37: Balance sheet positioned for growth
Balance sheet positioned for growth A$M Net Debt / Net Cash1 ˃ A$121 million debt $31 million 50 A$M Net Cash repayments during Q2 Dec 0 2016 -15 -50 > US$20 million Notes -92 repurchased in Jan 2017 -100 -134 36 / > US$20 million Notes -150 remaining at 31 Jan 2017 -199 -200 -243 > Remaining US$20
Slide 38: Eyes open for opportunities
Inorganic Growth Eyes open for opportunities Will Consider > Consider sensible inorganic > Exploration, project, development growth where it increases and operating assets shareholder value > Range of sizes > Robust and systematic evaluation > ‘Investible’ assets inside and process underway outside
Slide 39: 38 / Leonora Operations Site Visit / February 2017
38 / Leonora Operations Site Visit / February 2017
Slide 40: Gwalia
Gwalia A rich history with a bright future 39 / Leonora Operations Site Visit / February 2017
Slide 41: Gwalia
Gwalia A rich history with a bright future 40 / Leonora Operations Site Visit / February 2017
Slide 42: Gwalia Operations
Gwalia Operations St Barbara Byrnecut – contract mining ˃ Responsible for ˃ Byrnecut is part of Gwalia’s success ˃ Planning ˃ Started at Gwalia in Sep 2012 ˃ Processing ˃ Alliance agreement from Sep 2013 ˃ Procurement ˃ Approx. 200 employees ˃ Commercial ˃ Fleet: inc. ˃ Approx. 150 employees, ˃ 5 dr
Slide 43: Stress Results – Comparatively benign to region
Stress Results – Comparatively benign to region Stress Test Results & Yilgarn Block Trends Principal Stress (MPa) 0 50 100 150 200 250 300 0 200 400 600 800 Depth (mbs) 1000 1200 1400 1600 1800 2000 HI AE Min Yilgarn Max Yilgarn Extrapolated Max Yilgarn Trend AMC Calc Stress= 2/3UCS Extrapoloated Mi
Slide 44: Ore Reserves & Mineral Resources at June 2016
Ore Reserves & Mineral Resources at 30 June 2016 Gwalia A richMineral history with a bright future Resources Ore Reserves (Moz) (Moz) 9.2 9.1 5.0 4.6 Simberi 4.0 4.0 Leonora 2.1 1.9 Simberi 4.2 4.5 Leonora 1.9 2.1 FY 15 FY 16 FY 15 FY 16 Refer ASX announcement released 23 August 2016 titled ‘Ore Res
Slide 45: St Barbara share price vs US$ gold and XGD
St Barbara share price vs US$ gold and XGD - % change 700% Gwalia A600% rich history Topwith a bright performing future stock in the ASX 200 in FY20162 Joined ASX 200 500% Top performing stock in the 400% ASX 300 in CY20151 Joined ASX 300 300% SBM 279% 200% 100% XGD 62% A$ gold 4% 0% US$ gold 0% -10
Slide 46: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 Proved Probable Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194 9,407 1.3 381 14,094 1
Slide 47: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 Measured Indicated Inferred Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) g/t (k) g/t Gwalia (WA) 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 Tower Hill (WA) - - - 4,604 3.9 574 489 3.3 51 5,093
Slide 48: Strong institutional share register
Strong institutional share register Gwalia Shareholding Structure A rich history with a bright future Not analysed Institutional USA 39% 10% 84% Australia Non 22% Institutional 6% UK 12% Other 7% Non institutional / not analysed 21% Analysis and geographic spread of shareholders as at 15 Dec 2016 47
Slide 49: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Gwalia ASignificant rich history with a bright1 future Shareholders Research Coverage Van Eck Associates 16% Argonaut James Wilson M&G Investment Mgt 8% Canaccord Reg Spencer Vinva Investment Mgt 5% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocki
Slide 50: Board of Directors
Board of Directors Gwalia Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO A rich history with a Director Appointed bright future February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 Mr Netscher is an experienced internat
Slide 51: Executive Leadership Team
Executive Leadership Team Gwalia Bob Vassie Managing Director and CEO A rich history with a bright future Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Aus
Slide 52: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 53: 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 54: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 53 / Leonora Operations Site Visit / February 2017