42 slides from St. Barbara's earnings presentation, Aug 22, 2013
Slide 1: Presentation on FY13 Full Year Financial Report
ASX Release / 22 August 2013 For personal use only Presentation on FY13 Full Year Financial Report Attached is a presentation to analysts and investors regarding the FY13 Full Year Financial Report. Tim Lehany Managing Director and CEO St Barbara Limited Level 10, 432 St Kilda Road, Melbourne VIC 30
Slide 2: FY13 Full Year Financial Report
TIM LEHANY, MANAGING DIRECTOR & CEO / 22 August 2013 For personal use only FY13 Full Year Financial Report
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 ˃ St Barbara at a glance For personal use only ˃ Financial results ˃ Profit ˃ Cash ˃ Assets ˃ Operations ˃ Exploration ˃ FY14 Guidance ˃ What distinguishes St Barbara ˃ Appendices 3/ FY13 Full Year Financial Report
Slide 5: St Barbara at a glance
St Barbara at a glance For personal use only ˃ Australian based gold producer and explorer ˃ ASX Top 200 1 A$368 million market cap 1 ˃ Established operations Western Australia Papua New Guinea Solomon Islands ˃ Production FY13 365 koz FY14F Guidance 395 – 445 koz ˃ Balance sheet 2 Cash 3 A$129 mill
Slide 6: Established operations, growing production profile
Established operations, growing production profile Reserves 5.2 Moz 1 For personal use only Resources 13.2 Moz 1 Simberi Simberi ˃ Low strip open pit mine Leonora ˃ FY14F production: Gold Ridge 85 - 100 koz ˃ High grade underground ˃ Near mine targets for Gwalia mine exploration ˃ Gwalia FY14F produ
Slide 7: FY13 key achievements
FY13 key achievements For personal use only ˃ Acquired Allied Gold & commenced optimising the Pacific Operations ˃ Increased gold production by 8% to 364,601 ounces ˃ Issued five year US$250 million senior secured notes and retired syndicated bank debt ˃ Profitably divested Southern Cross Operations
Slide 8: FY financial highlights
FY 13 financial highlights For personal use only FY13 FY12 A$M A$M Profit ˃ Statutory (loss) / profit after tax (192) 130 ˃ Asset impairments & write downs after tax (221) (10) ˃ Underlying EBITDA 1 141 182 ˃ Underlying EBIT 1 48 118 ˃ Underlying NPAT 1 29 121 Cash Flow ˃ Cash flows from operations
Slide 9: FY financial highlights (continued)
FY 13 financial highlights (continued) For personal use only FY13 FY12 A$M A$M Investment in growth ˃ Capital expenditure 135 100 ˃ Exploration expenditure 21 21 Cash & debt ˃ Cash balance 1 129 185 ˃ Total interest bearing debt 328 4 ˃ Gearing – after impairment charges 2 25% - 1. Includes $12M res
Slide 10: Profit
Profit For personal use only NPAT Underlying NPAT 1 130 69 121 54 -40 -76 29 15 0.2 -192 -221 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 Impairment Impair (after -menttax) A$M A$M 1. Non-IFRS measure, refer slide 40 9/ FY13 Full Year Financial Report
Slide 11: Significant items in NPAT
Significant items in NPAT For personal use only 4 29 221 14 8 192 11 15 FY 13 Net gain Profit on sale Op. loss Asset Acquisition Borrowing FY 13 NPAT gold options Sthn Cross Sthn Cross impairment + integration costs Underlying afer tax expenses NPAT [1] $M, all amounts after tax 1. Non-IFRS measure,
Slide 12: Non-cash asset impairment and write downs
Non-cash asset impairment and write downs For personal use only Simberi Gold Ridge ˃ Predominantly due to sharp A$M A$M decline in short to medium term Write down of assets gold price assumptions since the ˃ Inventories 28 11 acquisition of the Pacific Impairments Operations ˃ PPE 92 55 ˃ Also impac
Slide 13: Segment profit
Segment profit For personal use only Segment profit / (loss) before tax 1 Australian Operations 125 ˃ Lower profit in FY13 primarily due 96 to lower gold price ˃ Southern Cross result includes care and maintenance period prior to sale 30 20 Pacific Operations - - ˃ Oxide expansion delays (0.4) ˃ Rec
Slide 14: Cash movement
Cash movement For personal use only 192 185 18 109 207 25 17 21 129 27 117+12 78 Cash Net Allied Acq'n & Pac Ops Aust Ops Sale Corp & Other Exploration Working Cash Jun 12 financing purchase Integ'n net cash flow net cash flow Sthn Cross capital Jun 13 $M 13 FY13 Full Year Financial Report
Slide 15: Company is well capitalised
Company is well capitalised Senior Secured Note issue for US$250 million completed March 2013: For personal use only ˃ 5 year term ˃ Coupon 8.875% p.a. ˃ Terms provide flexibility ˃ Syndicated bank debt facilities repaid (Red Kite gold loan remains) At 30 June 2013: ˃ A$129 million cash 1 ˃ A$328 mi
Slide 16: Operations
Operations For personal use only 15 / FY13 Full Year Financial Report
Slide 17: Operations
Operations ˃ Australian Operations performed well & achieved FY13 production guidance For personal use only ˃ Pacific Operations did not achieve planned performance for FY13 ˃ Simberi and Gold Ridge both have high fixed-cost profiles, therefore unit costs are sensitive to production volumes ˃ Equipm
Slide 18: Exploration
Exploration For personal use only 17 / FY13 Full Year Financial Report
Slide 19: Ore Reserves & Mineral Resources
Ore Reserves & Mineral Resources For personal use only Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.22 Leonora, Simberi, WA PNG 41% 42% 7.61 5.24 2.53 FY 12 FY 13 Gold Ridge, Mineral Resources Ore Reserves SI Moz 17% 1. Refer ASX announcement released 22 August 2013 titled ‘Ore Reserv
Slide 20: Focus on adding to near mine resources
Focus on adding to near mine resources Exploration spend FY14F $20-25M For personal use only ≈ 40% in Australia Tabar Island Group ≈ 60% in Pacific Operations (inc. Simberi) Simberi > Active drilling programs ˃ Ore bodies open ˃ Near mine targets for exploration Gold Ridge ˃ Sulphide potential Tabar
Slide 21: Tabar Island Group, Papua New Guinea
Tabar Island Group, Papua New Guinea For personal use only Simberi Island ˃ Exploration focused on identifying additional oxide resources ˃ Significant gold results from trenching and drilling at Botlu and Pigicow on near-mine prospects Tatau Island ˃ Significant gold results from exploring geochemi
Slide 22: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands For personal use only Encouraging near mine results Guadalcanal Island ˃ Drilling has commenced on the Charivunga zone at Gold Ridge mine, with encouraging gold results including (all down hole): ˃ GDC076: 13m @ 2.3 g/t Au from 48m; 15m @ 2.6 g/t Au from 215m; & 84m @ 2.0
Slide 23: FY14 Guidance
FY14 Guidance For personal use only 22 / FY13 Full Year Financial Report
Slide 24: FY14 Production guidance
FY14 Production guidance ˃ Gwalia mine remains the cornerstone asset: For personal use only ˃ Expected to generate significant cash in FY14 ˃ FY14F cash operating cost A$720-750 per ounce ˃ Even at lower gold prices, Gwalia generates sufficient cash to cover interest and corporate overhead ˃ The Pac
Slide 25: What distinguishes St Barbara in the gold sector
What distinguishes St Barbara in the gold sector ˃ Established gold miner with producing assets in three countries For personal use only ˃ Growing production profile, with clear plans to reduce unit costs ˃ Large, long life reserve base with upside potential ˃ Prospective land position in the Pacifi
Slide 26: Appendices
For personal use only Appendices 25 / FY13 Full Year Financial Report
Slide 27: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate ˃ Lowest annual TRIFR since 14.8 the measure was first 12.5 adopted by St Barbara in 11.1 2009 9.0 ˃ TRIFR includes Pacific 6.0 Operations from September 2012 ˃ Corresponds to LTIFR of 1.2 FY 09 FY 10 FY 11 FY 12 FY 1
Slide 28: FY14 Guidance
FY14 Guidance For personal use only Gold production Cash operating cost 1 Capex koz A$/oz A$M Gwalia 180 – 195 720 – 750 45 – 50 King of the Hills 55 – 60 1,040 – 1,090 12 – 15 Gold Ridge 75 – 90 1,100 – 1,190 14 – 18 Simberi 85 – 100 900 – 990 20 – 25 Total 395 – 445 880 – 940 91 – 108 Exploration
Slide 29: FY13 St Barbara Attributable Gold Production
FY13 St Barbara Attributable Gold Production For personal use only Sep Qtr Dec Qtr Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 ˃ Gwalia oz 34,293 43,745 40,772 64,307 ˃ King of the Hills oz 15,935 12,709 16,940 12,893 Production ˃ Southern Cross oz 19,176 12,292 - - ˃ Gold Ridge 1 oz 4,057 10,654 13,984 17,
Slide 30: Gwalia Mine, Leonora, WA
Gwalia Mine, Leonora, WA For personal use only ˃ Mineral Resources extend to 1,800 mbs, open at depth ˃ Indicative 9+ year mine life based on Ore Reserves 1 ˃ Ore mined in FY13 increased 5% to 696 kt 1. As at 30 June 2013 29 / FY13 Full Year Financial Report
Slide 31: Gwalia Mine, Leonora, WA
Gwalia Mine, Leonora, WA FY14 guidance For personal use only ˃ production 180 – 195 koz ˃ capex A$45 – 50 million ˃ cash operating cost A$720 – 750/oz Mined grade Annual production steady 8.8 200 8.2 175 6.3 150 5.7 125 100 75 50 25 0 FY10 FY11 FY12 FY13 FY 10 FY 11 FY 12 FY 13 FY 14F g/t Au Blank A
Slide 32: King of the Hills Mine, Leonora, WA
King of the Hills Mine, Leonora, WA For personal use only ˃ Satellite mine to utilise available Gold Production Gwalia mill capacity ˃ Consistent performer since 60 production commenced May 2011 ˃ Drilling program to test for 40 extension of deposit 20 FY14 guidance ˃ production 55 – 60 koz 0 ˃ cape
Slide 33: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only Annual production ˃ FY14 guidance includes commissioning oxide 120 expansion 100 ˃ Plant ramps up to 3.5 Mtpa run 80 rate during Q2 60 ˃ Enhancement of mining fleet 40 ˃ Cash operating costs expected 20 to fall below A$1,000/oz during 0 FY14
Slide 34: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands For personal use only Annual production ˃ FY14 guidance includes 100 improvements to plant front end 80 designed to lift tonnage by c. 25% 60 to plant nameplate 2.5 Mtpa from Q2 40 ˃ Mill recoveries improving from 20 better blending 0 ˃ Gold recovery c. 70% as currently F
Slide 35: Red Kite loan profile
Red Kite loan profile For personal use only Red Kite monthly loan repayments* Key features 3,000 ˃ 3 year term ends Dec 2014 oz US$/oz ˃ Repayable in physical gold 2,500 1,400 ˃ Notional ounces payable monthly 2,000 ˃ Volume varies ± 15% according to 1,600 US$ gold price 1,500 ˃ Indicative repayment
Slide 36: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only UK, 30% Private 8% Australia, 25% Unallocated / not analysed 8% USA, 27% Europe, 5% Institutions Asia, 3% 84% Other / not analysed, 10% Analysis and geographic spread of Top 100 Shareholders as at 15 July 2013 3
Slide 37: Significant Shareholders & wide broker coverage
Significant Shareholders & 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 Baker Steel Capital Managers 7% Canaccord Luke Sm
Slide 38: Mineral Resources Summary as at June 2013
Mineral Resources Summary as at 30 June 2013 For personal use only Category Measured Indicated Inferred Total Region Project Tonnes (k) Au g/t k oz Tonnes (k) Au g/t k oz Tonnes (k) Au g/t k oz Tonnes (k) Au g/t k oz Leonora Gwalia Deeps 5,521 6.1 1,088 7,422 9.9 2,362 1,467 7.2 341 14,410 8.2 3,791
Slide 39: Ore Reserves Summary as at June 2013
Ore Reserves Summary as at 30 June 2013 For personal use only Category Proved Probable Total Region Project kt Au g/t koz kt Au g/t koz kt Au g/t koz Leonora Southern Cross - - - - - - - - - Gwalia Deeps 1,670 8 424 4,900 8.4 1,330 6,570 8.3 1,754 Tower Hill 2,572 3.7 306 2,572 3.7 306 King of the H
Slide 40: Competent Persons Statements
Competent Persons Statements For personal use only The information in this report that relates to Mineral Resources is based on information compiled by Mr Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Uttley is a full-time employee of St Barbara Ltd and h
Slide 41: 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 42: 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 www.stbarbara.com.au ASX: SBM 41 / FY13 Full Year Financial Re