St. Barbara Ltd. · ASX:SBM
St. Barbara — Precious Metals Investment Symposium 2018
33 slides from St. Barbara's conference presentation, Oct 3, 2018
Slide 1: Presentation to 2018 Precious Metals Investment Symposium, Perth
Shareholder Information / 3 October 2018 Presentation to 2018 Precious Metals Investment Symposium, Perth Stean Barrie, General Manager Technical Services, will present to the Precious Metals Investment Symposium in Perth, Western Australia, today. Investor Relations Mr David Cotterell Manager Inves
Slide 2: Precious Metals Investment Symposium 2018
STEAN BARRIE, GENERAL MANAGER TECHNICAL SERVICES 3-4 October 2018 Precious Metals Investment Symposium 2018
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 • Safety • Strategy • St Barbara today • Future Growth • Operations: • Conclusion Gwalia & Simberi Gwalia mine - June 2018 Paste aggregate fill (PAF) chamber at Gwalia – June 2018 3/ Precious Metals Symposium 3 - 4 October 2018
Slide 5: St Barbara Today – Overview of Operations
St Barbara Today – Overview of Operations ASX 200 listed Company (SBM), founded 1969 Consolidated production • Shares on issue 524 M • FY18 403 koz @ AISC4 A$891/oz • Market Cap2 A$1,814 M • FY19F3 363 koz @ AISC A$1,065/oz • Ore Reserves June 2018 3.9 Moz 1 • Mineral Resources June 2018 9.2 Moz 1 L
Slide 6: St Barbara Safety Focus – Start Safe, Stay Safe
St Barbara Safety Focus – Start Safe, Stay Safe Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 LTIFR comparison WA mining benchmarks2 2.9 2.1 2.2 0.5 Pump isolation at Gwalia plant St Barbara WA Gold WA Metal, WA Metal, 2018 Surface Underground 1. Tot
Slide 7: Australian Gold Peer Comparison & FY18 Share Metrics
Australian Gold Peer Comparison & FY18 Share Metrics • Underlying profit1 has increased year on year since FY14 • Commenced paying fully franked dividends in FY17 • Dividend yield compares favourably to Australian gold peers 4% Bubble size = FY18 gold production 1,2 39 EPS (basic, Dividend Yield2,3
Slide 8: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile Mined Grade 12.5 (g/t Au) 10.7 10.5 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade3 7.5 g/t Au June 2018 Production 267 265 268 260 (koz) 248 245 214 AISC2 185 183 (US$/oz) 863 131 109 700 713 570 592 622 83 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 9: Year on Year Operational Improvements from Innovation and Business Improvement Program
Year on Year Operational Improvements from Innovation and Business Improvement Program Ore passes (introduced FY15) Allows bogger to work constantly, independent of ore trucks, Absorption Chiller Plant (installed 2015) removes ore from fired stopes more rapidly, allowing paste- Uses waste heat for c
Slide 10: Simberi Production and Cost Profile
Simberi Production and Cost Profile 2,300 1,464 1,293 1,187 1,068 1,325 AISC1 (A$/oz) Production 135 (koz) 115 116 110 105 80 44 2 FY14 FY15 FY16 FY17 FY18 FY19F Simberi processing plant, June 2018 – photo by Anna Mote 1. AISC is a non IFRS measure, refer corresponding slide in Appendix 9 / Precious
Slide 11: Simberi – Improvements in all Metrics
Simberi – Improvements in all Metrics During FY14 to FY18: • Mining and haul fleet replaced Simberi Total Material • Preventative maintenance increased fleet Moved (kt)1 availability • Ball mill retained and refurbished, used in 14,335 13,610 9,899 conjunction with SAG mill 6,289 • Improved understa
Slide 12: Strategy for the Next Five Years – “Stronger for Longer”
Strategy for the Next Five Years – “Stronger for Longer” Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in all phases of the p
Slide 13: Gwalia Extension Project Update – on Schedule
Gwalia Extension Project Update – on Schedule • Gwalia Extension Project (GEP) consists of two main • Raise bore activities progressing to schedule, first shaft components, a ventilation upgrade and paste hole complete and second surface shaft underway aggregate fill (PAF)1 • Paste aggregate fill (P
Slide 14: Gwalia Mass Extraction – PFS
Gwalia Mass Extraction – PFS • Pre-feasibility Study announced Feb 2018 • Comprises selective “island pillar” mining and hydraulic hoisting • Utilises increased ventilation from GEP • Supports mine life to FY31 • Feasibility study now due March 2019, expanded to consider alternative flow sheets 13 /
Slide 15: Simberi Sulphide – Potential Long Life Mine Extension
Simberi Sulphide – Potential Long Life Mine Extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at
Slide 16: Mine Life Extension
Mine Life Extension Life of Mine Extensions Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (Oxide) FY16 2018 FY17 2020 FY18 2021 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources 15 / Precious Metals Symposium 3 - 4 October
Slide 17: Exploration – Gwalia Deeps, Seismic and 2600 mbs Targets
Exploration – Gwalia Deeps, Seismic and 2600 mbs Targets Gwalia Deep Drilling • Hole to 2,600mbs completed in Q4 FY18 • Daughter hole targeting step out at 2,600mbs Gwalia Seismic Exploration • Drill program completed in Q4 June FY18 showed shearing and alteration similar to the Gwalia deposit • Dow
Slide 18: Exploration Activities
Exploration Activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 17 / Precious Metals Symposium 3 - 4 October 2018
Slide 19: Conclusion
Conclusion • Record production, profit and cash flow in FY18 • Paying fully franked dividends • $343 million cash at bank, no debt • Mine life extended at both operations • Fully funded near-term growth options at both operations • Exploration focus – St Barbara tenements, JVs and targeted investmen
Slide 20: Questions?
Questions? Gwalia plant at sunrise 19 / Precious Metals Symposium 3 - 4 October 2018
Slide 21: Appendices
Appendices Water sampling at Leonora 20 / Precious Metals Symposium 3 - 4 October 2018
Slide 22: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs , Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Final Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY18 FY191 St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 Year to 30 June Year to 30 June year is 1 Jul
Slide 23: FY18 Financial Highlights
FY18 Financial Highlights • Record annual production and record low AISC1 Operational • Cornerstone Gwalia mine with Life of Mine Plan to FY31 excellence • Simberi mine life extension to FY21 • 4th consecutive record profit, NPAT of A$227 M Financial • EBITDA margin of 51%1 performance • A$842/oz ca
Slide 24: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in 2014-15, 2015-16, 2016-17 and 2017-18 and the only mining company to be certified in 2017-18 • 2017 Winner Excellence in Company Diversity Programs and Performance, Women in Resources National Awards • 2018 Winner of Australian Women
Slide 25: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Australia Greater Gwalia Catalyst Metals Peel Gwalia Mining GMX Tower 16% 18%. Hill Gwalia Gwalia Extension Mine Prodigy Duketon Gold2 Mining 10% 12% Inorganic growth Evaluating exploration, project, development and op
Slide 26: Exploration – FY19 Guidance – A$21 to A$27 million
Exploration – FY19 Guidance – A$21 to A$27 million A$9 – A$12 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$8 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry • Tatau Sulphides In additio
Slide 27: Reserves and Resources as at 30 June 2018
Reserves and Resources as at 30 June 2018 Ore Reserves 4.3 Gwalia Reserves and Resources 4.0 3.9 1.4 • Reduced by mining depletion 1.3 1.4 Simberi Sulphide 0.5 0.6 0.3 Simberi Oxide • Update to reserves and resources 0.3 0.3 0.3 following completion of GMX 2.1 1.9 Tower Hill 1.8 Feasibility Study Gw
Slide 28: Gwalia – Lowest Expected Mined Depth
Gwalia – Lowest Expected Mined Depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1200 1100 1220 Mineral Resources deepest mineralised intersection 1300 Ore Reserves 1400 1380 1420 1600 1500 1500 1540 1580 1620 1800 1700 1740
Slide 29: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves 2.5 0.27 Moz 2.0 0.21 Moz 0.27 Moz Production 0.27 Moz Ore Reserves 0.25 Moz At end of year 1.5 (+ production during year) (Moz) 1.0 1.9 Moz 2.1 Moz 1.9 Moz Reserves 1.6 Moz 1.8 Moz 0.5 0.0 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 Maximum Depth 500
Slide 30: Shareholders and Broker Coverage
Shareholders and Broker Coverage Not analysed Broker Research Coverage 7% Non Institutional Argonaut James Wilson Institutional 89% 4% Canaccord Reg Spencer Citi Trent Allen Credit Suisse Mike Slifirski Deutsche Bank Tim Hoff USA 35% GMR David Radclyffe Australia JP Morgan Mathew Hocking 34% Macquar
Slide 31: 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 32: 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 33: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp
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