37 slides from St. Barbara's earnings presentation, Aug 27, 2014
Slide 1: Presentation on the FY14 Financial Report and audio webcast
ASX Release / 27 August 2014 For personal use only Presentation on the FY14 Financial Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the FY14 Financial Report at 1:00 pm Australian Eastern Standard Time (UTC + 10 hours) today, 27 Augu
Slide 2: FY14 Financial Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 27 August 2014 For personal use only FY14 Financial 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: Outline
Outline ˃ St Barbara at a glance For personal use only ˃ Safety ˃ Financial results ˃ Results ˃ Cash ˃ Assets ˃ Remuneration Report ˃ Operations ˃ Exploration ˃ FY15 Guidance ˃ Conclusion ˃ Appendices 3/ FY14 Full Year Financial Presentation
Slide 5: St Barbara at a glance
For personal use only St Barbara at a glance Simberi PNG Simberi SI ˃ Low strip open pit mine ˃ Target annualised Gold Ridge production 90 to 100 koz ˃ Near mine targets for Leonora exploration ˃ Two underground mines: ˃ Gwalia Mine FY15F production: 180 - 200 koz Australia Gold Ridge ˃ Estimated mi
Slide 6: Significant improvement in safety in FY14
Significant improvement in safety in FY14 For personal use only Total Recordable Injury Frequency Rate 14.8 Improving safety performance 12.5 11.1 ˃ FY14 TRIFR1 of 4.1 is a significant improvement on 6.0 at 30 June 9.0 2013 ˃ An outstanding result for a 6.0 combination of underground and 4.7 4.5 ope
Slide 7: FY14: Financial results overview
FY14: Financial results overview ˃ Result ˃ Statutory loss after tax of $501 million, including impairment charge of $411 million after For personal use only tax ˃ Underlying net loss 1 after tax of $94 million ˃ Underlying EBITDA 1 of positive $73 million ˃ Leonora EBITDA 1 of $179 million ˃ Cash f
Slide 8: FY14 Financial Summary
FY14 Financial Summary FY14 FY13 For personal use only A$M A$M Average gold price realised A$1,412/oz A$1,544/oz Result ˃ Statutory loss after tax (501) (192) ˃ Asset impairments & write downs after tax (411) (221) ˃ Underlying EBITDA 1 73 141 ˃ Underlying EBIT 1 (36) 48 ˃ Underlying net (loss)/prof
Slide 9: FY14 Operational performance, exploration and corporate
FY14 Operational performance, exploration and corporate ˃ Leonora, Western Australia For personal use only ˃ Outperformed production guidance, continues to generate strong cash flow ˃ Simberi, Papua New Guinea ˃ Continued to underperform, operating review underway ˃ Processing plant expansion operat
Slide 10: FY14 Operational performance (continued)
FY14 Operational performance (continued) For personal use only FY14 FY13 A$M A$M Investment in operations ˃ Capital expenditure 89 135 ˃ Discovery & Growth expenditure 21 1 21 Jun 2014 Jun 2013 Cash & debt ˃ Cash balance 2 81 129 ˃ Total interest bearing debt 340 328 1. Includes $0.8M of redundancy
Slide 11: Key changes to underlying profit/(loss) in FY14
Key changes to underlying profit/(loss) in FY14 Underlying Profit/(Loss)1 after Tax Reconciliation For personal use only 60 40 29 1 -56 20 -94 0 -20 A$ Million 1 -2 -40 -16 -60 -80 -27 -10 -100 -14 -120 FY13 Gross Profit - Gross Loss - Exploration Royalties D&A Net Financing Income tax Corporate + F
Slide 12: Significant items in NPAT
Significant items in NPAT For personal use only 0 -100 -3 -1 -94 5 -200 -300 -400 -42 -500 -369 -501 2 1 -600 FY 14 Net gain Proceeds on Asset Asset Redundancy Write back of Borrowing FY 14 NPAT gold options sale impairment impairment Costs onerous costs Underlying Sthn Cross afer tax Dec afer tax J
Slide 13: Non-cash asset impairments and write downs
Non-cash asset impairments and write downs Impairments at 30 June Simberi Gold Ridge For personal use only 2014 A$M A$M Write down of assets ˃ Total Pacific Operations impairment of ˃ Inventories 7 15 $411M after tax in FY14 Impairments ˃ Simberi impairment ˃ PPE 94 87 - slower than expected ˃ Miner
Slide 14: Cash movement
Cash movement For personal use only Includes: Redundancies $3M Corporate Royalties $9M Mainly represents repayments of the gold prepayment facility * Includes ‘restricted cash’ 13 FY14 Full Year Financial Presentation
Slide 15: Remuneration Report
Remuneration Report ˃ Non-executive Director changes For personal use only ˃ Directors fees reduced 10% in March 2014 ˃ No increase in Directors fees in FY15 ˃ Board reduced to 5 with 3 new Directors since FY13 ˃ Executive management changes ˃ Number of senior executives reduced from 6 to 3 ˃ No inc
Slide 16: Operations
Operations For personal use only 15 / FY14 Full Year Financial Presentation
Slide 17: FY Operations Summary
FY 14 Operations Summary ˃ Leonora Operations For personal use only ˃ Exceeded FY14 production guidance ˃ Gwalia outlook remains strong with FY15 guidance similar to FY14 production at 180 to 200 koz. ˃ King of the Hills mine life extended for all of FY15, at 60 – 70 koz ˃ Simberi ˃ Gold Ridge ˃ Con
Slide 18: Exploration
Exploration For personal use only 17 / FY14 Full Year Financial Presentation
Slide 19: FY15 Focus on adding to near mine resources
FY15 Focus on adding to near mine resources Exploration expenditure will be further reduced in FY15 Simberi For personal use only ˃ Near mine oxide targets for Tabar Island Group exploration (inc. Simberi) ˃ Sulphide potential Leonora Tabar Island Group ˃ Gwalia open at depth – Gold Ridge ˃ Explorat
Slide 20: Ore Reserves & Mineral Resources at June 2014
Ore Reserves & Mineral Resources at 30 June 2014 ˃ Overall, ore reserves have been largely maintained. For personal use only ˃ Gwalia Ore Reserves increased to 7.3 Mt @ 8.2 g/t Au for 1,914 koz (1,754 koz at 30 June 2013) % of Ore Reserves 1 Ore Reserves and Mineral Resources 1 Leonora, 13.22 13.16
Slide 21: FY15 Guidance
FY15 Guidance For personal use only 20 / FY14 Full Year Financial Presentation
Slide 22: FY15 Guidance
FY15 Guidance For personal use only Gold Cash operating Capex production cost 1 koz A$/oz A$M Gwalia 180 – 200 720 – 750 45 – 50 King of the Hills 60 – 70 1,190 – 1,240 15 – 19 Simberi To be advised (see next page) 1. Non-IFRS measure, refer slide 36 21 / FY14 Full Year Financial Presentation
Slide 23: Simberi Outlook FY15
Simberi Outlook FY15 ˃ A detailed operating review of Simberi Operations is in progress. For personal use only ˃ Previous capital expenditure at Simberi provides the base to underpin profitable operations ˃ New low hour mining fleet achieving required mining rates ˃ Plant expansion SAG Mill circuit
Slide 24: Summary
Summary For personal use only ˃ FY14 statutory loss of $501 million including impairments and write downs of $411 million ˃ $81 million cash at 30 June 2014 (includes $2 million restricted cash) ˃ Leonora (Gwalia + King of the Hills) ˃ Sustained strong cash flow with FY14 EBITDA1 of $179 million ˃ F
Slide 25: Appendices
For personal use only Appendices 24 / FY14 Full Year Financial Presentation
Slide 26: Consolidated Production Summary
Consolidated Production Summary Q1 Sep Q2 Dec Q3 Mar Q4 June Year Guidance For personal use only FY14 FY14 FY14 FY14 FY14 FY14 Gwalia oz 53,230 52,552 49,148 59,389 214,319 180- 195,000 King of the Hills oz 12,893 17,205 16,837 19,421 70,711 55- 60,000 Production Gold Ridge oz 17,236 14,912 15,690 -
Slide 27: Gwalia Mine, Leonora, WA
Gwalia Mine, Leonora, WA ˃ Mineral Resources extend For personal use only to 1,800 mbs, open at depth ˃ Indicative 9+ year mine life based on Ore Reserves1 ˃ Mined grade in FY14 above reserve grade ˃ FY 14 all in sustaining costs A$940/ounce ˃ Deep drilling planned in FY15 1. Refer ASX announcement
Slide 28: Debt profile
Debt profile US$250 million Senior Secured Notes For personal use only ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a. ˃ Matures April 2018 US$75 million Red Kite debt facility ˃ No principal repayments until March 2015 ˃ Eight equal quarterly
Slide 29: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutions 62% UK, 26% Private 8% Australia, 16% USA, 17% Europe, 7% Asia, 5% Unallocated / not analysed Other / not analysed, 30% 26% Analysis and geographic spread of Top 100 Shareholders as at 30 July 2014
Slide 30: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Baillieu Holst Rob Craigie M&G Investment Mgt 13% Baker Steel Capital Managers 7% Canaccord Luke Smith Franklin Resources Inc 7% Deutsche Bank Chris Terry Evans and Partners Cath
Slide 31: Mineral Resources Summary as at June 2014
Mineral Resources Summary as at 30 June 2014 For personal use only and Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 30 / FY14 Full Year Financial Presentation
Slide 32: Major sources of variance to Mineral Resource Inventory
Major sources of variance to Mineral Resource Inventory between FY13 and FY141 For personal use only koz 14,000 13,215 +1,532 13,161 -289 12,000 -206 -56 +1,379 -68 +156 +39 10,000 -2,189 -352 8,000 6,000 4,000 2,000 0 June Mining Depletion Sterilisation Mining Depletion Mining Depletion A$1875 Gold
Slide 33: Mineral Reserves Summary as at June 2014
Mineral Reserves Summary as at 30 June 2014 For personal use only and Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 32 / FY14 Full Year Financial Presentation
Slide 34: Major variances to Ore Reserves between FY13 and FY14
Major variances to Ore Reserves between FY13 and FY14 1 For personal use only koz 5,500 5,238 +606 5,165 5,000 -422 4,500 -257 4,000 3,500 3,000 2,500 2,000 1,500 Jun 2013 Net mining activities Interpretation & design changes* Additions Jun 2014 * Changes include Geology, Design and Factor Changes 1
Slide 35: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 34 / FY14 Full Year Financial Presentation
Slide 36: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results is based on information compiled by Dr Roger Mustard, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full-time emplo
Slide 37: 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