St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2016)
52 slides from St. Barbara's shareholder meeting presentation, Nov 30, 2016
Slide 1: Presentations to 2016 Annual General Meeting and audio webcast
ASX Release / 30 November 2016 For personal use only Presentations to 2016 Annual General Meeting and audio webcast Attached is the Chairman’s address and the Managing Director and CEO’s presentation to the 2016 Annual General Meeting in Melbourne today. A live audio webcast of the meeting will be a
Slide 2: Chairman's Address to the 2016 AGM
TIM NETSCHER, NON-EXECUTIVE CHAIRMAN ADDRESS TO THE 2016 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ST BARBARA LTD For personal use only Introduction Good morning ladies and gentlemen and welcome to St Barbara’s 2016 Annual General Meeting. I am pleased to be able to share with you today some of the
Slide 3: Chairman's address: exploration and Simberi Strategic Review
where. We believe that this is not yet reflected adequately in our share price, which Bob Vassie will touch on shortly. The exploration campaign at Gwalia that we began in 2014 has borne fruit this year and has therefore justified that exploration investment. We added substantially to both our reser
Slide 4: Chairman's address: Strategy and Outlook
The conduct of this review was exhaustive and we believe that the conclusion reached is sound. The joint venture with Newcrest represents a strong opportunity for both companies, and Bob will comment further on this. Strategy and Outlook For personal use only Now, turning to ongoing matters of strat
Slide 5: Dividends
Dividends Since we published our end of year results, some analysts and shareholders have asked about our dividend policy. For the past two years, we have been single-minded in conserving cash and applying any surplus cash to reducing debt. As I previously mentioned, we anticipate being debt free in
Slide 6: In Conclusion
In Conclusion To summarise, the refocus of the Company on the two mines at Gwalia and Simberi has been successful, and generated a year of record results. The strong cash flows have been deployed sensibly to effect a very significant positive change in the Company’s financial position. Our focus wil
Slide 7: Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 30 November 2016 For personal use only 2016 Annual General Meeting Managing Director & CEO Presentation
Slide 8: 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 9: Outline
Outline For personal use only • FY16 Highlights • Leonora Operations • Simberi Operations • Exploration & Growth • Outlook • Appendices An open pit at Simberi Operation, Papua New Guinea 3 / Annual General Meeting 30 November 2016
Slide 10: FY16 Highlights
FY16 Highlights For personal use only • Record Safety • Balance sheet repaired • Record Production • Addition to Gwalia • Record Profit Resources & Reserves • Best performing stock • Record Cash Flow in ASX 2001 1. www.mywealth.commbank.com.au, 1 July 2016. 4 / Annual General Meeting 30 November 201
Slide 11: Continued safety success
Continued safety success Total Recordable Injury Frequency Rate1 Safety For personal use only 9.0 • Record FY16 TRIFR of 2.1 • Record safety performance of 6.0 1.8 TRIFR1 in Q1 FY17 5.0 4.1 • Overall winners for the second year running in CMEWA Underground 2.1 Mine Emergency Response Competition2 FY
Slide 12: Record production & costs for the Group
For personal use only Record production & costs for the Group AISC1 1,340 (A$/oz) Record production & costs 1,007 • Record production at 933 Gwalia, Simberi and Production (koz) 377 387 consolidated 368 9 46 50 110 70 80 • Increased production and 45 248 267 215 continued cost management resulting i
Slide 13: FY16 Financial Summary
FY16 Financial Summary For personal use only FY16 FY15 Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost1 A$/oz 933 1,007 Result Statutory profit after tax A$M 169 40 Underlying net profit after tax 1 A$M 127 42 Cash flow Cash flows from operating activities A$M 243 113
Slide 14: Balance sheet repaired and positioned for growth
Balance sheet repaired and positioned for growth St Barbara A$ Net Debt1 For personal use only A$M 50 Net cash Dramatic debt reduction +ve program executed through 0 FY16 in line with strategic -15 -50 plan -92 -100 -134 • Net debt reduced by -150 A$178 million during FY16 -199 to A$92 million at Ju
Slide 15: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz For personal use only (A$/oz) A$0 A$200 St Barbara A$400 Oceana Gold A$600 Saracen Evolution A$800 Regis A$1,000 Bubble size = estimated production rate Northern Star A$1,200 (koz p.a.) A$1,400 5% 7% 9% 11% 13% 15% 17% 19% 21% 23% FCF Y
Slide 16: Gwalia: A rich history with a bright future
For personal use only Gwalia A rich history with a bright future 10 / Annual General Meeting 30 November 2016
Slide 17: Record production driven by productivity gains
Record production driven by productivity gains Mined Grade 9.3 For personal use only (g/t Au) 8.8 8.9 8.2 8.4 6.9 Reserve Grade 6.3 5.7 8.3 g/t Au June 2016 FY16 continued improvement • FY 16 production of 267 koz 267 265 (FY15 248 koz) Production (koz) 248 245 • AISC of A$783/oz 214 (FY15 A$841/oz)
Slide 18: 8% year on year improvement with key innovations
8% year on year improvement with 3 key innovations For personal use only Ore passes Allows bogger to work constantly, independent of ore trucks, removes ore from fired stopes more rapidly, allowing paste-filling and adjacent stopes to be fired earlier Continuous Remote Tele-bogging (CY16) At critica
Slide 19: St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC
St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC Q4 June 2016 Global gold production – AISC For personal use only 1,400 53 companies, 196 mines 1,200 1,000 St Barbara US$716/oz AISC (inc. Gwalia US$644/oz AISC) 800 AISC (US$/oz) 600 400 200 0 0 2 4 6 8 10 Asia Africa Australia North America S
Slide 20: Upgrade to Gwalia Resources & Reserves
Upgrade to Gwalia Resources & Reserves For personal use only Gwalia Mineral Resource June 2015 Gwalia Mineral Resource Measured June 2016 200m depth Indicated Inferred extension of Resource model +938 +193 +297 -346 -277 3,896 1,594 1,808 3,304 koz koz Gwalia Reserves Gwalia Resources June Mining De
Slide 21: Future Gwalia: Innovation facilitating deeper, longer, greater production
Future Gwalia: Innovation facilitating deeper, longer, greater production For personal use only Gwalia ventilation upgrade study • Investment decision December 2016 • Enable mining at current rates below 1800 mbs • Potential for more mining fronts (e.g. West Lode) MT65 Mining Truck • More productive
Slide 22: Simberi: Reliable cash producer | Strategic Review complete
Simberi For personal use only Reliable cash producer | Strategic Review complete 16 / Annual General Meeting 30 November 2016
Slide 23: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (A$/oz) For personal use only 2,300 1,464 1,293 9,898 Mining Consecutive years of >50% improvement 6,293 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Mining 4,151 (kt) 110 80 Production (koz) 44 FY14 FY15 FY16 P
Slide 24: Simberi FY14, FY15 and FY16
Simberi FY14, FY15 and FY16 Simberi Mine Output Simberi Gold Production For personal use only 9,899 kt 110 koz 80 koz 6,293 kt 4,151 kt 44 koz FY14 FY15 FY16 FY14 FY15 FY16 Simberi Mill Throughput AISC1 (A$/oz) 3,315 kt 2,300 2,670 kt 1,464 1,293 1,713 kt FY14 FY15 FY16 FY14 FY15 FY16 18 / Annual Ge
Slide 25: Simberi strategic review complete
Simberi strategic review complete St Barbara to retain and operate For personal use only Simberi Operations • Reliable cash generator, FY16 segment profit A$34 million, cash contribution A$34 million1 Option and Farm-in Agreement (joint venture) with Newcrest for joint copper- gold porphyry explorat
Slide 26: Simberi strategic review: JV for copper-gold exploration
Simberi strategic review: JV for copper-gold exploration JV with Newcrest for copper-gold porphyry exploration For personal use only • Newcrest recognised as a copper-gold porphyry expert • JV enables the required large scale exploration (and development) for copper- gold porphyry • Recognises coppe
Slide 27: Exploration: St Barbara's organic growth opportunity
Exploration For personal use only St Barbara’s organic growth opportunity 21 / Annual General Meeting 30 November 2016
Slide 28: Exploration FY17: Locations & Guidance
Exploration FY17: Locations & Guidance For personal use only A$18 to A$22 million • A$10- A$12 million Gwalia • Gwalia Deep drilling infill + Northern Extension • Gwalia Seismic • A$8- A$10 million – 30% Pinjin WA, 70% PNG • Pinjin – complete drilling • Simberi oxide – near mine • Tatau copper- gold
Slide 29: Gwalia Deeps & Northern Extension exploration continues
Gwalia Deeps & Northern Extension exploration continues For personal use only For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 23 / Annual General Meeting 30 November 2016
Slide 30: Gwalia Deeps Exploration – Northern Extension
Gwalia Deeps Exploration – Northern Extension For personal use only For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 24 / Annual General Meeting 30 November 2016
Slide 31: Seismic Exploration campaign
Seismic Exploration campaign Greater Gwalia Province in FY17+ • Use sound waves reflecting off mineral • 1H FY17 calibration and focus on Gwalia to For personal use only formations to explore Greater Gwalia gain a greater understanding of deposit • Used successfully by other WA Gold • 2H FY17+ explo
Slide 32: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA The Pinjin Project is located 150km For personal use only northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 For full explanation and results refer to ASX release 19 October 2016 ‘Quarterly Report September 2016’ 26 / Annual General Meeting 3
Slide 33: Exploration: Pinjin WA
Exploration: Pinjin WA Results Q1 September 2016 For personal use only 27 / Annual General Meeting 30 November 2016 For full explanation and results refer ASX release 19 October 2016 ‘Quarterly Report September 2016’
Slide 34: Inorganic Growth
Inorganic Growth For personal use only Eyes open for opportunities Will Consider • Consider sensible inorganic • Exploration, project, development growth where it increases and operating assets shareholder value • Range of sizes • Robust and systematic evaluation • ‘Investible’ assets inside and pro
Slide 35: Great year, big future
Great year, big future FY16 FY17 For personal use only • Record safety • On track to achieve FY17F production & AISC1 • Record production • Low Gwalia AISC1 generates high margin & cash flow • Record profit • Now looking at profitable growth options • Record cash flow • Working to further extend Gwa
Slide 36: Appendices
Appendices For personal use only Gwalia processing plant, Leonora WA 30 / Annual General Meeting 30 November 2016
Slide 37: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production For personal use only • Shares on issue 497 M • FY16 387 koz @ AISC4 A$933/oz • Market Cap2 A$1,093 M • FY17F3 355 koz @ AISC A$1,030/oz • ADR OTC code STBMY • Ore Reserves June 2016 4.0 Moz 1 • Mineral Resourc
Slide 38: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Guidance Consolidated FY16 FY16 FY16 FY17 FY173 For personal use only Production Gwalia oz 66,147 65,098 267,166 67,118 245 to 265 koz King of the Hills4 oz - - 9,112 - - Simberi oz 25,433 26,935 110,286 25
Slide 39: Gender Diversity
Gender Diversity For personal use only • The overall pay equity gap at St Barbara reduced from 43% in 2007 to 16% in 2016 (compared to 23% nationally and 16% for the mining industry1) • Nil gender pay gap in ‘like-for-like’ roles2 • Bob Vassie, MD & CEO, appointed in 2014 as one of 32 CEO Ambassador
Slide 40: People
People For personal use only • St Barbara was selected as a finalist in the Australian HR Awards 2016 in the category ’Best Health & Wellbeing Program’ • In PNG, St Barbara has facilitated and supported: • a domestic violence prevention ‘Warrior’ program in conjunction with domestic violence leave g
Slide 41: Australian Gold Mining in context
Australian Gold Mining in context “Rush: Australia’s 21st Century Gold Industry” For personal use only • Tells the story of Australia’s world- leading gold industry and the ongoing contribution it makes to Australia's economic and social • Published by Minerals Council of Australia and the Chamber o
Slide 42: St Barbara share price vs US$ gold and XGD
St Barbara share price vs US$ gold and XGD - % change 700% For personal use only Top performing stock in the ASX 200 in FY20162 600% Joined ASX 200 500% Top performing stock in the 400% ASX 300 in CY20151 Joined ASX 300 300% SBM 279% 200% 100% XGD 62% A$ gold 4% 0% US$ gold 0% -100% 1 Jul 15 1 Oct 1
Slide 43: Cash and Debt FY15 to December 2016
Cash and Debt FY15 to December 2016 Debt, Cash Balance & Contribution from Operations For personal use only (FY15 to present, USD/AUD millions) 420 AUD Debt2,3 390 367 358 347 325 325 325 USD 299 Debt2 320 312 271 311 249 248 270 229 AUD Net Debt5 216 243 189 168 169 199 154 134 108 115 Cash balance
Slide 44: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total For personal use only Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194
Slide 45: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 Project Measured Indicated Inferred Total For personal use only Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574
Slide 46: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Not analysed Institutional USA 39% 10% 83% Non Australia Institutional 28% 7% UK 14% Other 8% Not analysed 11% 40 / Annual General Meeting 30 November 2016 Analysis and geographic spread of shareholders as at 15 Oct 201
Slide 47: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Research Coverage Van Eck Associates 17% Argonaut James Wilson M&G Investment Mgt 8% Canaccord Reg Spencer Hunter Hall Investments 6% Credit Suisse Mike Slifirski Vinva Investment Mgt 5% Deutsche Bank Ma
Slide 48: Board of Directors
Board of Directors For personal use only Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chainman July 2015 Mr Vassie is a mining engineer with over 30 Mr Netscher is an experienced international years internati
Slide 49: Executive Leadership Team
Executive Leadership Team Bob Vassie For personal use only Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 1
Slide 50: 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 51: 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 52: 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 46 / Annual General Meeting 30 November 2016