St. Barbara Ltd. · ASX:SBM
St. Barbara — BMO Capital Markets 25th Global Metals & Mining Conference 2016
63 slides from St. Barbara's conference presentation, Feb 29, 2016
Slide 1: Presentation to analysts and investors attending BMO conference
ASX Release / 29 February 2016 For personal use only Presentation to analysts and investors attending BMO Capital Markets 25th Global Metals & Mining Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending BMO Capital Markets 25th Global Me
Slide 2: St Barbara – Australia/Pacific Gold Producer
BOB VASSIE, MANAGING DIRECTOR & CEO / 28 February – 2 March 2016 For personal use only BMO 25th Global Metals and Mining Conference St Barbara – Australia/Pacific Gold Producer
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“the Company”). The material Investors are cautioned not to place undue reliance on such statements. contained in this presentation is for information purposes only. This presentation is not an This p
Slide 4: Contents
Contents ˃ Overview For personal use only ˃ Financial result highlights ˃ Safety ˃ Production ˃ Cash, debt, hedging ˃ Organic growth ˃ Simberi strategic review ˃ Exploration ˃ Conclusion ˃ Appendices 3 / BMO Presentation 28 Feb to 2 Mar 2016 Rainbow over Simberi processing plant, January 2016
Slide 5: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$913 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 367 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,025/oz ˃ A
Slide 6: St Barbara share price
St Barbara share price ASX:SBM For personal use only (with selected ASX announcements) Q1 Production Update, inc: $2.00 Simberi 29.5 koz, A$12M cash flow3 $1.80 $1.60 $1.40 Q2 Production Update, inc: $1.20 Simberi cash flow positive in Dec $1.00 Q3 Production Update, inc: Simberi 22.5 koz , A$10 M c
Slide 7: 1H FY16 Headlines: Record 1H profit and cash flow
1H FY16 Headlines: Record 1H profit and cash flow ˃ Statutory profit after tax $77 million For personal use only ˃ Up 28% on 2H FY15 of $60 million ˃ Underlying net profit after tax1 $60 million ˃ Up 40% on 2H FY15 of $43 million ˃ Cash flow from operations $123 million ˃ Up 35% on 2H FY15 of $91 mi
Slide 8: 1H FY16 Financial Summary
1H FY16 Financial Summary1 1H 2H 1H For personal use only FY16 FY15 FY15 Gold price Average gold price realised A$/oz 1,564 1,461 1,411 All-In Sustaining Cost3 A$/oz 922 882 1,166 Result ˃ Statutory profit after tax A$M 77 60 (20) ˃ Underlying net profit/(loss) after tax 3 A$M 60 43 (1) ˃ EBITDA 3 A
Slide 9: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate Safety performance 12.5 ˃ Record low TRIFR1 of 3.4 at Q2 FY16 9.0 ˃ Continued good results for mixed jurisdiction underground / open pit combination 6.0 ˃ Simberi Emergency Response 5.0 4.1 4.1 Team multi prize winner
Slide 10: Consolidated Gold Production
Consolidated Gold Production For personal use only AISC (Consolidated) (A$/oz) 1,374 1,305 1H FY16 Operations Highlights 1,167 ˃ Consolidated production 882 922 • 203 koz ˃ Record production for: 211 190 203 • Gwalia 136 koz 184 50 29 16 167 58 • Simberi 58 koz 21 24 30 27 34 36 23 9 ˃ Simberi produ
Slide 11: Leonora, Western Australia
Leonora, Western Australia For personal use only Gwalia Haul Road New generation Sandvik Underground Mining Truck Gwalia –Absorption Chiller Plant Byrnecut Jumbo Underground Drill Rig 10 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 12: Gwalia: production increasing year on year
Gwalia: production increasing year on year ˃ FY15 AISC1 A$841/oz Mined Grade For personal use only (g/t Au) June 2015 8.8 8.9 ˃ Reserves at 30 June 20152: 8.2 8.4 Reserve grade 9.4 g/t Au 6.9 5.3 Mt @ 9.4 g/t Au for 1.6 5.7 6.3 260 Moz Range 248 245 ˃ Mine life based on Ore 214 Reserves2 ≈7 years 18
Slide 13: Gwalia gold production - koz in H1
Gwalia gold production - 136 koz in H1 AISC (A$/oz) For personal use only 883 860 FY15 AISC A$841/oz 846 Q2 December FY16 Quarter: 692 645 ˃ 63,533 oz produced in Q2 (Q1: 72,388 oz) ˃ 135,921 oz produced in H1 FY16 ˃ AISC1 of A$846/oz (Q1: A$692/oz) Mined Grade June 2015 9.7 9.7 (g/t Au) Reserve gra
Slide 14: Simberi
Simberi For personal use only Staff BBQ & Relaxation Deck Ropecon looking east to Pigiput Bay and plant below Hitachi 1200 Excavation loading Bell 50D Articulated Dump Truck SAG Mill 13 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 15: Simberi: record half year and calendar year gold production
Simberi: record half year and calendar year gold production For personal use only Q2 December FY16 Quarter: AISC (A$/oz) ˃ 28,379 oz produced in Q2 (Q1: 29,539 oz) 1,619 ˃ Record production: > 58 koz for H1 FY16 1,310 1,319 1,252 1,149 > 108 koz for CY 2015 ˃ AISC1 of A$1,319/oz impacted by signific
Slide 16: Half on Half Profit Comparison
Half on Half Profit Comparison Half on Half Underlying Profit2 For personal use only & Significant Items 17 60 43 -8 -1 -25 -14 -7 -16 -203 FY14 FY14 FY15 FY15 FY16 1H 2H 1H 2H 1H A$M NPAT Underlying Significant items (continuing operations) 1. All excluding results from discontinued operations 15 /
Slide 17: Cash movement 1H FY16
Cash movement 1H FY16 Cash movement 1H FY16 For personal use only 16 -78 128 -17 -8 -10 -8 100 77 Cash Leonora Ops Simberi Ops Debt Interest Exploration Corporate Other Cash Jun 2015 repayments payments (incl capex) Dec 2015 A$ million 16 BMO Presentation 28 Feb to 2 Mar 2016
Slide 18: Cash and Debt FY15 and H1 FY16
Cash and Debt FY15 and H1 FY16 Debt, Cash Balance & Contribution from Operations For personal use only (FY15 to present) 420 A$ Debt2,3 390 367 358 347 325 325 325 293 284 US$ Debt 271 249 216 204 108 115 A$ Cash balance1 100 approx. 100 68 77 56 80 70 69 A$ Cash Contribution4 57 10 32 FY15 FY15 FY1
Slide 19: Debt and hedging at December 2015
Debt and hedging at 31 December 2015 US Senior Secured Notes For personal use only ˃ US$250 million issued March 2013, US$168 million balance at 22 Feb 2016 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest rate 8.875% p.a., matures April 2018 ˃ US$16 million repurchased in
Slide 20: Organic growth studies - progress
Organic growth studies - progress Gwalia materials handling For personal use only ˃ Conceptual studies on potential materials handling systems for deeper mining. These studies include: ˃ blind and raise-bore shafts with skip hoisting ˃ a shaft with vertical conveying ˃ slurry pumping to surface ˃ ne
Slide 21: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For personal use only Gwalia Deep Drilling Program > The full drilling program is aimed at delineating an indicated resource to support the planned shaft studies. > Refer report1 for full results of recent 6 holes that successfully intersected mine sequence
Slide 22: Exploration: Focus on near mine targets
Exploration: Focus on near mine targets For personal use only Exploration > A$15 million, approximately: > 70% Australia and > 30% Pacific > Gwalia Deep Drilling (WA) > Centenary (WA) > Pinjin (WA) > Simberi (PNG) + Banesa (PNG) 21 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 23: Simberi PNG – status
Simberi PNG – status Simberi: For personal use only ˃ profitable since month of December 2014 ˃ produced at target 100,000 ounce per annum production run rate since month of December 2014 ˃ produced 107, 553 ounces of gold in CY 2015 ˃ forecast to produce between 100,000 and 110,000 ounces for FY16
Slide 24: Simberi PNG – PFS
Simberi PNG –PFS ˃ PFS due April 2016 For personal use only ˃ Progress report on the PFS proposes: ˃ Sulphide Project utilises the existing infrastructure on Simberi Island, including the airport, power station, village, and wharf ˃ the existing semi-autogenous grinding (SAG) mill and ball mill woul
Slide 25: Simberi PNG – PFS preliminary results
Simberi PNG –PFS preliminary results Scope Produce and sell gold concentrate from sulphide ore and gold doré from oxide ore For personal use only Ore Reserves Sulphide: 19.9 Mt @ 2.0 g/t Au for 1,285 koz of contained gold at 30 June 20151 Oxide: 19.1 Mt @ 1.3 g/t Au for 818 koz of contained gold2 Ca
Slide 26: Simberi PNG – Strategic review
Simberi PNG –Strategic review ˃ Need to evaluate the potential investment in the Simberi Sulphide Project against the Company’s other potential investment opportunities For personal use only ˃ to maintain continuity of production a decision on the Sulphide Project would be required by December 2016
Slide 27: Summary – Strong profits continue, debt significantly reduced
Summary – Strong profits of 2H FY15 continue, debt significantly reduced ˃ Profitability maintained from record 2H FY15 For personal use only ˃ Continued strong operating results with underlying NPAT of $60 million ˃ $15 million profit on sale of King of the Hills & Kailis ˃ Continued accelerated de
Slide 28: Appendices
Appendices For personal use only Jan 2016: Shadows silhouetted viewing an ore pass, Gwalia mine. 27 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 29: St Barbara vs other gold companies, ASX & globally
St Barbara vs other gold companies, ASX & globally Free cash flow, Enterprise Value, Production Bubble size = For personal use only 7,000 production rate RRS LN (kozpa) AEM US DGC CN 6,000 NCM 5,000 GG US ABX US EV/Production (A$/oz) NEM US NGD US EGO US 4,000 AQG RRL EVN AUY US 3,000 BTG US KGC US
Slide 30: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY15 FY15 FY15 FY16 FY16 FY163 For personal use only Production Gwalia oz 76,954 57,208 248,142 72,388 63,533 245 - 260 koz (prev 230 to 250 koz) King of the Hills oz 11,836 15,
Slide 31: St Barbara Emergency Response Teams: International success
St Barbara Emergency Response Teams: International success For personal use only St Barbara WA: Winners in 3 categories and overall winners, CME (WA) Eastern Regional Council 2015 Underground Mine Emergency Response Competition, held at Kanowna Belle WA, November 2015 Gwalia Gwalia –– Underground U
Slide 32: Cash and debt
Cash and debt June 2014 June 2015 Dec 2015 22 Feb For personal use only A$M A$M A$M 2016 A$M Cash balance 1 79 77 100 ≈100 Interest bearing debt FX 0.94302 0.77132 0.73063 0.71073 ˃ US Senior Secured Notes US$ 250 196 180 168 ˃ Red Kite US$ 75 75 36 36 ˃ Total USD$ debt US$ 325 271 216 204 ˃ A$ equi
Slide 33: Key changes to underlying profit 2H FY15 to 1H FY16
Key changes to underlying profit/(loss)1 2H FY15 to 1H FY16 Underlying Profit1 After Tax Reconciliation (H1 FY16 v H2FY15) For personal use only 4 -15 7 8 60 9 4 43 2H FY15 Gross Profit - Aust Gross Profit - D&A Net Financing Income tax Corporate + Other 1H FY16 Ops Simberi Ops Costs expense A$ Mill
Slide 34: Significant items in net profit after tax
Significant items1 in net profit after tax Significant items in net profit after tax For personal use only 77 -14 -2 -1 60 1H FY16 NPAT Profit on sale of KOTH & Foreign exchange Tax effect 1H FY16 Underlying NPAT Kailis A$ Million 33 / BMO Presentation 28 Feb to 2 Mar 2016 1. Non-IFRS measure, refer
Slide 35: Leonora, Western Australia
Leonora, Western Australia For personal use only Gwalia Processing plant Gwalia Gwalia –– Underground Underground mining mining Truck Truck Gwalia – New Absorption Chiller Plant Underground drilling 34 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 36: Gwalia Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, Stope diagram of South West Branch constrained by: showing mining in Q3 & Q4 FY2015 For personal use only 1) Waiting for adjacent/above stope’s Plunge, centre paste fill to dry of lode 2) Geotech considerations – not too
Slide 37: Developments at Gwalia in FY15
Developments at Gwalia in FY15 ˃ New absorption chiller plant For personal use only utilises waste heat from power plant ˃ Deep HV Cable drop to 1,400 mbs ˃ New mining techniques improve production and efficiency Ore Pass system: increases efficiency of trucking and bogging Underground waste storage
Slide 38: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB Mining method For personal use only ˃ mining sequence manages the hanging wall ˃ Long hole stoping with fill FY11 ˃ North & South access on 2 two dual lift levels gives 4 mining areas 1 ˃ Greater percentage of 5 free bogging increases productivity of e
Slide 39: Gwalia – targeting higher production
Gwalia – targeting higher production Stope Cycle Time – 6 months per stope For personal use only – ‘Bogging’ (extracting ore from the stope) represents just under 50% of stope cycle time – Filling and curing around 30% of stope cycle time – Adjacent stopes (beside, above, below) cannot be developed
Slide 40: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For personal use only Gwalia Processing Plant Gwalia deep drilling by DDH1 at night Gwalia deep drill cores Atlas Copco MT6020 Mining trucks 39 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 41: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For personal use only 40 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 42: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program For personal use only Figure 1.0 1. For full explanation and results refer to ASX release 21 January 2016 ‘Quarterly Report December 2015’ 41 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 43: Exploration: Future Gwalia – Drilling Plan
Exploration: Future Gwalia – Drilling Plan For personal use only Figure 1.1 1. For full explanation and results refer to ASX release 21 January 2016 ‘Quarterly Report December 2015’ 42 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 44: Exploration: Gwalia West Lode – Long Section
Exploration: Gwalia West Lode – Long Section For personal use only West Lode > West Lode is one of the four major lode structures1 identified within the Gwalia Mine Sequence, and is located approximately 80m to the west of South West Branch. > Drilling results2 show encouraging grade and thickness:
Slide 45: Exploration: Centenary
Exploration: Centenary For personal use only Centenary > In Q3 FY15 St Barbara conducted electromagnetic (EM) survey work on Centenary Project approximately 60 km north of Leonora. Four sites were drilled in Q4 FY15 with follow up drilling in Q1 and Q2 FY16 > New drilling targeted an anomalous nicke
Slide 46: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA For personal use only Pinjin > The Pinjin Project is located 150km northeast of Kalgoorlie, comprising a large tenement package of 1,358 km2 (Figure 3.1). > Two reconnaissance field visits were conducted during the quarter and necessary approvals obtained. > A signifi
Slide 47: Simberi
Simberi For personal use only 46 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 48: Simberi Ore Delivery System
Simberi Ore Delivery System FEEDER For personal use only BREAKER ROPECON (CV02) 2.7km long Aerial Rope Conveyor CV03/CV10 Overland Conveyor SAG APRON FEEDER CV01 Fixed Speed Feed Conveyor CV04 / STACKER 47 / BMO Presentation 28 Feb to 2 Mar 2016
Slide 49: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide For personal use only Simberi – Sorowar pit – 13 Aug 2015 (oxide ore being mined, exposing the sulphide wall behind) Sulphide mining at Simberi potentially extends life based on existing reserve, open at depth1 Simberi oxide mine life ~3 years1 Oxide mining pre-stri
Slide 50: Exploration: Focus on near mine targets at Simberi
Exploration: Focus on near mine targets at Simberi For personal use only Simberi PNG > Encouraging results 1 from drilling at Pigibo North (13 holes for 780m) and Patan (8 holes for 500m) included: Pigibo North: SDH342: 22m @ 0.7 g/t Au from 3m SDH347: 18m @ 1.0 g/t Au from 0m Patan: SDH348: 5m @ 14
Slide 51: Exploration: Big Tabar Island
Exploration: Big Tabar Island For personal use only Big Tabar Island > Further follow up trenching was conducted in the quarter on the Banesa Au-Cu porphyry prospect. Significant trench sampling results1 include: TABTR168: 20m @ 1.1 g/t Au and 0.3% Cu, and 30m @ 1.2 g/t Au TABTR171: 30m @ 1.2 g/t Au
Slide 52: Ore Reserves Summary as at June 2015
Ore Reserves Summary as at 30 June 2015 Project Proved Probable Total For personal use only Tonnes (k) Au koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t g/t Gwalia (WA) 2,100 9.1 614 3,190 9.6 980 5,290 9.4 1,594 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 3,800 1.5 178 15
Slide 53: Mineral Resources Summary as at June 2015
Mineral Resources Summary as at 30 June 2015 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 (WA) 4,781 7.2 1,112 6,112 9.3 1,833 2,036 5.5 359 12,929 7.9 3,304 King of the Hills - - - 799
Slide 54: Ore Reserves & Mineral Resources at June 2015
Ore Reserves & Mineral Resources at 30 June 2015 ˃ Ore Reserves & Resources reduced via production depletion and For personal use only sale of Gold Ridge Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.16 Leonora, 9.22 WA 47% Simberi, 5.16 PNG 4.02 53% FY 14 FY 15 Mineral Resources Ore R
Slide 55: Major variances to Ore Reserves FY14 to FY15
Major variances to Ore Reserves FY14 to FY15 1 koz For personal use only 6,000 5,165 5,000 -673 4,003 4,000 -426 -60 -3 3,000 2,000 1,000 0 June Divestment of Gold Depletion through Design changes* King of the Hills June 2014 Ridge Operation mining and processing Closure 2015 of stockpiles * Changes
Slide 56: Major variances to Mineral Resources FY14 to FY15
Major variances to Mineral Resources FY14 to FY151 koz For personal use only 14,000 13,161 12,000 10,000 -3,175 9,223 -426 -80 -4 -254 8,000 6,000 4,000 2,000 0 June Gold Ridge Depletion through Sterilisation of non- Revised geological Revised geological June 2014 Divestment mining and recoverable m
Slide 57: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutional Australia 71% 34% Not analysed 14% UK 15% USA 17% Other 5% Non Non Institutional Institutional 15% 15% Not analysed 14% Analysis and geographic spread of Top 100 Shareholders as at 15 Jan 2016 56 /
Slide 58: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Argonaut Patrick Chang Hunter Hall 15% M&G Investment Mgt 12% Canaccord Reg Spencer Franklin Resources Inc 6% Deutsche Bank Brett Mckay Macquarie Ben Crowley Petra Capital David
Slide 59: Board of Directors
Board of Directors For personal use only Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed February 2014 Appointed July 2014 Mr Netscher was the Managing Director of Mr Vassie is a mining engineer with 30 Gindalbie Metals Limited from 2011 to 2013, years internation
Slide 60: 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 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 yea
Slide 61: 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 62: 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 63: 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 62 / BMO Presentation 28 Feb to 2 Mar 2016
St Barbara — BMO Capital Markets 25th Global Metals & Mining Conference 2016 on 6ix