St. Barbara Ltd. · ASX:SBM
St. Barbara — Investor Presentation (June 2008)
30 slides from St. Barbara's investor presentation, Jun 10, 2008
Slide 1: Building a Bigger Future - Capital Raising
For personal use only Building a Bigger Future Capital Raising - A$120 million via Entitlement offer and Placement Mr Eduard Eshuys, Managing Director and CEO 10th June 2008 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 1 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited (Company). This presentation is not a prospectus and does not constitute an offer of shares. Any offer of shares will only be made in, or accompanied by, a prospectus which will be sent to eligible shareholder
Slide 3: Table of Contents
Table of Contents For personal use only Page Transaction Overview 4 Details of the Offer 7 Company Overview 11 What you need to do - next steps 19 Appendices 22 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 3 3
Slide 4: Transaction Overview
For personal use only Transaction Overview NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 4 4
Slide 5: Transaction Overview
Transaction Overview For personal use only Raising approximately A$120 million via a fully underwritten Renounceable Accelerated Entitlement offer (RAPIDS) and Placement Use of proceeds: ▪ Sustain the current higher level of exploration activities in line with the Company’s strategy to increase Ore
Slide 6: Sources and Use of Funds
Sources and Use of Funds For personal use only A$ million 140 A$120m A$120m 120 Working capital A$3 million Transaction fees A$5 million Southern Cross processing plant A$10 million Retail Offer & Bookbuild 100 A$46 million1 Exploration expenditure 80 A$35 million Institutional Placement A$6 million
Slide 7: Details of the Offer
For personal use only Details of the Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 7 7
Slide 8: Details of Offer
Details of Offer For personal use only ▪ 2 New Shares for every 7 St Barbara Shares held ▪ Offer price : A$0.40 per New Share ▪ 28.6% discount to closing price on last trading day, Friday 6 June 2008 of A$0.56 ▪ 23.7% discount to the theoretical ex-rights price, consistent with that offered in recen
Slide 9: Institutional Offer and Placement
Institutional Offer and Placement For personal use only ▪ Institutional Entitlement Offer to raise approximately A$68 million1 ▪ Eligible Institutional Shareholder offer open till 6pm (AEST) Wednesday 11 June 2008 ▪ Renounced entitlements and entitlements of ineligible institutional shareholders wil
Slide 10: Retail Offer
Retail Offer For personal use only ▪ Retail Entitlement Offer to raise approximately A$46 million 1 ▪ Prospectus and personalised Entitlement and Acceptance Form to be dispatched to Eligible Retail Shareholders the week beginning Monday 16 June 2008 ▪ Eligible Retail Shareholder offer open from Mond
Slide 11: Company Overview
For personal use only Company Overview NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 11 11
Slide 12: Who are we?
Who are we? For personal use only ▪ Australian focused gold producer and explorer ▪ Key assets include gold mines and associated infrastructure at Southern Cross and Leonora ▪ two of the three richest endowed gold provinces in Western Australia ▪ Established production track record with over 480,000
Slide 13: Strong growth profile
Strong growth profile For personal use only Southern Cross Leonora 400 Target 295-315 ozs 300 Production (Koz) 200 Forecast 155-160 ozs 100 0 FY June-06 FY June-07 FY June-08 FY June-09 ▪ Expected gold production of 155,000 – 160,000 ounces in FY08 at cash operating cost of approximately A$560 per o
Slide 14: St Barbara's Ore Reserves doubled
14 St Barbara’s Ore Reserves doubled For personal use only Reserves Resources 12,000 10,000 Resources and Reserves (Koz) 8,000 6,000 7,817 # 6,067 9,140 4,000 6,000 2,000 2,300 2,300 1,200 0 260 Jun-05 Jun-06 Jun-07 Dec-07 ▪ Over 90% increase in gold Ore Reserves over the twelve months to June 2007
Slide 15: Mine developer
Mine developer For personal use only Pre-commissioning Capital Expenditure on Gwalia (A$ million) YTD Apr-08 Total pre- commissioning budget Mining Developments 45.6 57.1 Processing Plant and Borefields 25.5 36.7 Mine Infrastructure 6.0 17.3 Run of Mine Pad 4.7 5.0 Mine Infrastructure 6.9 10.4 Total
Slide 16: Exploration upside
Exploration upside For personal use only ▪ Extensive tenements within Australia covering approximately 18,000 square kilometres ▪ Exploration expenditure for the 2009 financial year is expected to continue at the higher level of approximately A$35 million ▪ Focused on the discovery of higher grade u
Slide 17: No committed gold deliveries
No committed gold deliveries For personal use only ▪ Policy is to maximise the exposure of the Company to favourable movements in the spot gold price ▪ St Barbara has no committed gold deliveries ▪ Purchased put option strategy has been deployed since April 2007 ▪ benefits from increases in gold pri
Slide 18: Outlook 2008 Financial Year
Outlook For personal use only 2008 Financial Year ▪ Revised forecast gold production now in the range of 155,000 - 160,000 ounces (compares to previous guidance of 165,000 – 170,000 ounces) ▪ Difference in forecast gold production primarily attributable to lower than expected mill availability and t
Slide 19: Outlook 2009 Financial Year
Outlook For personal use only 2009 Financial Year ▪ Gold production from the Southern Cross and Leonora operations is targeted to be in the range of 295,000 – 315,000 ounces ▪ Previously announced target of producing at the rate of 450,000 ounces per annum by December 2008 is now expected to be achi
Slide 20: Effect of the Offer on financial position
Effect of the Offer on financial position For personal use only Cash Flow Movements A$’000 Cash balance at 31 December 2007 114,921 Net cash flows from operations 19,083 Gwalia development (65,522) Southern Cross capital (20,544) Exploration (18,296) Purchase of gold put options (4,480) Net financin
Slide 21: Next steps
For personal use only Next steps NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 21 21
Slide 22: What you need to do - next steps
What you need to do – next steps For personal use only ▪ Institutional Shareholders ▪ Read the Pathfinder Prospectus carefully and in full before making any investment decision ▪ Read the Procedures Manual carefully (provided by the Underwriter) ▪ Return the Institutional Shareholding Declaration Fo
Slide 23: Key dates
Key dates For personal use only Institutional Entitlement Offer Opens Tuesday 10 June 2008 Institutional Entitlement Offer Closes Wednesday 11 June 2008 Institutional Entitlement Bookbuild Thursday 12 – Friday 13 June 2008 Record Date Friday 13 June 2008 Prospectus lodged with ASIC and ASX Friday 13
Slide 24: Appendices
For personal use only Appendices Page St Barbara’s Operations 25 Key business risks 28 Mineral Resources (including Reserves) 29 as at 31 December 2007 Proven and Probable Reserves 30 as at 30 June 2007 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR U.S. PERSONS 24 24
Slide 25: St Barbara's Operations - Southern Cross
St Barbara’s Operations Southern Cross For personal use only ▪ Located 360km east of Perth, Western Australia ▪ Current operations include the Marvel Loch underground mine, and other ore deposits located in the GVG area 13km to the south ▪ Total gold production for the ten months to 30 April 2008 wa
Slide 26: Southern Cross - Marvel Loch
St Barbara’s Operations Southern Cross – Marvel Loch For personal use only Total tonnes mined: 1.5mt Total ounces produced: 204koz Average grade: 4.7g/t ▪ Cornerstone of St Barbara’s 300 Southern Cross operations 250 263 ▪ Gold mineralisation extends over 234 a 1.3km strike length, defined to 200 19
Slide 27: St Barbara's Operations - Leonora
St Barbara’s Operations Leonora For personal use only ▪ Located 200 kilometres north of Kalgoorlie ▪ Includes high grade Gwalia underground mine with a mine life of at least 8 years and Trump/Kailis open pit deposit ▪ Gwalia mine is on schedule to commence production in the September quarter 2008 ▪
Slide 28: Key business risks
Key business risks For personal use only ▪ Mining Operations Have Significant Operational and Development Risks ▪ Risks such as in extreme cases, cave ins, accidents, flooding, environmental hazards, the discharge of toxic chemicals and other hazards and other similar occurrences may delay productio
Slide 29: Mineral Resources (including Reserves)
Mineral Resources (including Reserves) as at 31 December 2007 For personal use only Notes – Southern Cross: Information in this report that relates to Southern Cross Ore Reserves is based on information compiled by Mr. Jacobus Kirsten and Mr. Sam Larritt who are Members of the Australasian Institute
Slide 30: Proven and Probable Reserves
Proven and Probable Reserves as at 30 June 2007 For personal use only These resources have been estimated under the direction of Mr Ben Bartlett and reviewed by Mr Peter Thompson. Mr Thompson and Mr Bartlett listed above have sufficient experience relevant to the style of mineralisation and type of