St. Barbara Ltd. · ASX:SBM
St. Barbara — Q1 FY2019 Earnings Presentation
38 slides from St. Barbara's earnings presentation, Oct 17, 2018
Slide 1: Presentation on Q1 September FY19 Quarterly Report and audio webcast
ASX Release / 17 October 2018 For personal use only Presentation on Q1 September FY19 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q1 September FY19 Quarterly Report at 11:00 am Australian Eastern Daylight Time (UTC +
Slide 2: Q1 September FY19 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 17 October 2018 ASX:SBM For personal use only Q1 September FY19 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 • Growth For personal use only • Safety • Diversity & Sustainability • Operations • Conclusion • Projects • Appendices • Exploration Laboratory Technician Sharee Briggs completing GIC , February 2018. 3 / Q1 September FY19 Quarterly Presentation
Slide 5: Highlights Q1 September FY19
Highlights Q1 September FY19 • Quarter production of 99 koz (Q4: 119 koz) For personal use only at AISC1 of A$919/oz (Q4: A$812/oz) • 2 millionth ounce poured at Gwalia since 2008 restart under St Barbara ownership • Record cash contribution1 from Simberi of A$34 M • Significant drill results at Gwa
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 For personal use only 6.0 5.0 4.1 2.8 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 Q1 FY19 • Increase in TRIFR from 2.1 at the end of Q4 June FY18 to 2.8 at the end of Q1 September FY19, due to 5 low severity incidents ‘slips and trips’ Inspecti
Slide 7: Consolidated Q1 September FY19 Quarter
Consolidated Q1 September FY19 Quarter For personal use only AISC 982 (A$/oz) 919 889 910 • Consolidated production of 812 99 koz (Q4 FY18: 119 koz) • Gwalia 63 koz (Q4: 85 koz) Production 119 • Simberi 36 koz (Q4: 35 koz) (koz) 98 100 99 35 86 • Consolidated AISC1 of A$919/oz 34 37 36 29 (Q4: A$812
Slide 8: Gwalia Q1 September FY19 Results
Gwalia Q1 September FY19 Results For personal use only AISC (A$/oz) 905 859 833 816 FY18 average $802/oz 679 Q1 FY19 Production Mined grade (g/t Au) 15.0 10.7 11.2 13.4 12.4 • 62,685oz (Q4 FY18: 84,537 oz) • AISC1 A$833/oz (Q4: A$679/oz) Reserve grade FY18 Reserve grade FY192 • Mined grade of 12.4 g
Slide 9: Simberi Q1 September FY19 Results
Simberi Q1 September FY19 Results AISC For personal use only (A$/oz) 1,129 1,135 1,027 994 1,068 Q1 FY 19 Production • 35,862 oz (Q4 FY18: 34,899 oz) FY18 average $1,068/oz • AISC1 A$1,068/oz Production (Q4: A$1,135/oz) (koz) • Record operating cash 36.7 35.9 contribution1 of $34 million 34.0 34.9 2
Slide 10: Increasing Cash Balance
Increasing Cash Balance For personal use only 343 7 350 A$M 82 46 261 Q4 movement net Q1 movement net of: of: 17 215 Q3 movement net $7 M tax $28 M dividends 198 of: Q2 movement net $4 M investments $6 M tax of: $16 M dividends $4 M investments Q1 movement net $31 M tax $4 M investments of: $12 M in
Slide 11: Cash Generation and Usage
Cash Generation and Usage A$M 120 105 For personal use only 100 86 Operational cash contribution 79 79 79 80 60 Net cash movement for qtr 40 82 46 Corp. costs & royalties, 20 38 explr. & working cap. 17 0 7 -7 Strategic investments -16 -25 -10 -28 -31 -2 -20 -7 -4 -3 -4 -1 -4 Leonora - growth capita
Slide 12: Main Current Projects – Timeline
Main Current Projects – Timeline For personal use only FY19 FY19 FY20 Q1 Sep Q2 Dec Q3 Mar Q4 Jun & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Gwalia 2600 mbs hole analysis and further drilling analysis and Gwalia 3D Targets fur
Slide 13: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule For personal use only • Gwalia Extension Project (GEP) consists of two main components, a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$100 M with planned completion in Q2 December FY201 • GEP on schedule and within budget, approximat
Slide 14: Gwalia Mass Extraction – PFS (Original)
Gwalia Mass Extraction – PFS (Original) For personal use only For details refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 13 / Q1 September FY19 Quarterly Presentation
Slide 15: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) For personal use only For details refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 14 / Q1 September FY19 Quarterly Presentation
Slide 16: Exploration – Key Developments
Exploration – Key Developments Gwalia, WA For personal use only • Significant intersections at 2,000 mbs • New seismic target, south of current targets Simberi Island, PNG • Further sulphide drilling intersections beneath Sorowar pit • Testing for copper-gold porphyry deposits at depth below Pigiput
Slide 17: Exploration – Gwalia Deeps and Seismic Targets
Exploration – Gwalia Deeps and Seismic Targets Gwalia Deep Drilling For personal use only • Daughter holes GWDD16D and GWDD16E have been completed, intersecting the mine sequence between 1,940-2,000 mbs. • Significant results include1: o 6.0 m at 12.2 g/t Au o 18.6 m at 10.3 g/t Au 1. For full expla
Slide 18: Exploration – Gwalia Deeps and Seismic Targets
Exploration – Gwalia Deeps and Seismic Targets Gwalia Seismic Exploration For personal use only • Two hole drill program completed in June quarter showed shearing and alteration similar to the Gwalia deposit, with some gold mineralisation • New seismic target identified further south of previous 2 t
Slide 19: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 Sorowar Pit For personal use only Best intersections include (all results downhole): 125SORDGC003: 33 m at 5.67 g/t Au from 55 m 165SORDGC013: 9 m at 6.42 g/t Au from 91 m 165SORDGC014: 7 m at 5.45 g/t Au from 157 m, EOH For full explanation and r
Slide 20: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 For personal use only One of five sections, remaining sections in appendix. For full explanation and results refer to ASX release 17 October 19 / Q1 September FY19 Quarterly Presentation 2018 ‘Quarterly Report Q1 September FY19’
Slide 21: Strategy for the Next Years – Stronger for Longer
Strategy for the Next 5 Years – “Stronger for Longer” For personal use only 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
Slide 22: Growth Pipeline
Growth Pipeline For personal use only Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Gwalia Metals Peel GMX Mining Tower 16% 18%. Hill Aust. Gwalia Gwalia Prodigy Potash Extension Mine Duketon Gold Mining 10% 12% Au, EJV2 Inorganic growth Evaluati
Slide 23: Diversity and Sustainability – Developments in Q1 Sep FY19
Diversity and Sustainability – Developments in Q1 Sep FY19 • WGEA Employer Of Choice For Gender Equality For personal use only in 2014-15, 2015-16, 2016-17 and 2017-18 and the only mining company to be certified in 2017-18 • 2018 Winner of Australian Women in Resources Alliance Award, AMMA’s Nationa
Slide 24: Conclusion
Conclusion • Production and costs in line with For personal use only FY19 guidance • Record cash contribution1 from Simberi of A$34 M • Significant drill results at Gwalia deep drilling program • Sulphide drilling results at Simberi remain encouraging • Debt free, $350 M cash and term deposits2 Gwal
Slide 25: Appendices
Appendices For personal use only Boats for Exploration logistics, Tatau Island PNG – June 2018, Mt Banesa, site of Cu-Au drilling in Q2 FY19 in background. 24 / Q1 September FY19 Quarterly Presentation
Slide 26: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Guidance Consolidated FY18 FY18 FY18 FY19 FY191 For personal use only St Barbara’s financial year is 1 July Qtr to Qtr to Year to 30 June 2018 Qtr to Year to 30 June to 30 June 30 Sep 2017 31 Dec 2017
Slide 27: Exploration FY19 Guidance - A$24 to A$30 million
Exploration FY19 Guidance - A$24 to A$30 million For personal use only A$12 – A$15 million Leonora (previously A$9 – A12 million) • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$8 – A$10 million PNG • Simberi Oxides
Slide 28: Exploration – Gwalia Deep Drilling
Exploration – Gwalia Deep Drilling For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 27 / Q1 September FY19 Quarterly Presentation
Slide 29: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 28 / Q1 September FY19 Quarterly Presentation
Slide 30: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 29 / Q1 September FY19 Quarterly Presentation
Slide 31: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 30 / Q1 September FY19 Quarterly Presentation
Slide 32: Gwalia Mass Extraction PFS – Alternative Flow sheet
Gwalia Mass Extraction PFS – Alternative Flow sheet For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 31 / Q1 September FY19 Quarterly Presentation
Slide 33: Hedging Summary at October 2018
Hedging Summary at 17 October 2018 For personal use only Financial Volume Price Delivery Announced Year ounces A$/oz (all monthly instalments) FY 19 68,000 $1,750 Nov 2018 to June 2019 7 & 19 Feb 2018 and 7 Mar 2018 (32,000 of initial 100,000 ounces delivered year to date since 1 July 2018) FY 20 50
Slide 34: Ore Reserves Summary as at June 2018
Ore Reserves Summary as at 30 June 2018 For personal use only Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7
Slide 35: Mineral Resources Summary as at June 2018
Mineral Resources Summary as at 30 June 2018 For personal use only Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 4,581 7.1 1,048 14,690
Slide 36: 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 37: Non-IFRS Measures and Recent Announcements
Non-IFRS Measures and Recent Announcements 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 mean
Slide 38: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell For personal use only 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 Mana