St. Barbara Ltd. · ASX:SBM
St. Barbara — European Gold Forum 2011
28 slides from St. Barbara's conference presentation, Apr 14, 2011
Slide 1: Presentation by Tim Lehany, Managing Director and CEO
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only Presentation by Tim Lehany Managing Director and CEO Attached is a copy of a pre
Slide 2: European Gold Forum: Driving Increased Returns
For personal use only European Gold Forum DRIVING INCREASED RETURNS ZURICH // SWITZERLAND // 15 April 2011 Tim Lehany, Managing Director & CEO SLIDE 1 | DRIVING INCREASED RETURNS APRIL 2011
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“Company”). This presentation has been prepared by the Company based on The material contained in this presentation is for information purposes only. information available to it and has not been indep
Slide 4: One of Australia's largest ASX listed gold producers & explorers
One of Australia’s largest ASX listed gold producers & explorers For personal use only STOCK CODE: SBM Australian based producer(1) 250-270Koz ASX market capitalisation(2) A$726M Producing operations 2 Ore Reserves Exploration land bank 5,000+ kms2 10.2Mt @ 7.3g/t Au for 2.4Moz Ore Reserves(3) 15.7M
Slide 5: Translating production growth into profitability
Translating production growth into profitability For personal use only RESERVES PRODUCTION CASH FLOW* NPAT** +1000% +177% 231,018 +$72M 56,951 +$32M 28,724 2,906 XXX 231018 83,247 83247 -14,823 -3,607 260 2005 2010 FY05 FY10 H1 05 H1 11 H1 05 H1 11 Koz oz A$’000 A$’000 As at 30 June 2005 and 30 June
Slide 6: Driving business margins to increase returns
Driving business margins to increase returns For personal use only ORGANIC GROWTH Increasing Gwalia production and margins New mine being developed – King of the Hills Exploration success DRIVING BUSINESS MARGINS Procurement savings Systems improvement program Productivity improvement pr
Slide 7: Delivering a healthy earnings growth trajectory
Delivering a healthy earnings growth trajectory For personal use only EARNINGS RETURN Experienced management, PER SHARE ON EQUITY 0.38 demonstrated capability 25.6 0.18 13.9 0.05 4.5 FY10 FY11* FY12* FY10 FY11* FY12* ¢ % *SOURCE: BROKER CONSENSUS DATA MARCH 2011: THOMSON REUTERS SLIDE 6 | DRIVING IN
Slide 8: High quality reserves underpinning long mine life
High quality reserves underpinning long mine life For personal use only 2.9Moz in Ore Reserves 4,000 4,000 7 2.9Moz 6 3,000 3,000 5 4 2,000 2,000 3 2 1,000 1,000 1 0 0 0 2005 2006 2007 2008 2009 2010 Reserve & Reserve Grade St Barbara Ore Reserves AT 30 JUN 2010 AT 30 JUN 2010 SLIDE 7 | DRIVING INCR
Slide 9: Increasing production and capitalising on higher gold prices
Increasing production and capitalising on higher gold prices For personal use only 400,000 330-370Koz 350,000 300,000 250-270Koz 250,000 231Koz 200,000 150,000 100,000 83Koz 50,000 0 2005 2006 2007 2008 2009 2010 2011* 2012* *GUIDANCE AS AT MARCH 2011 SLIDE 8 | DRIVING INCREASED RETURNS APRIL 2011
Slide 10: Two gold producing operations providing diversity
Two gold producing operations providing diversity For personal use only PRODUCTION GUIDANCE RANGE FY12 330 – 370Koz * Leonora Southern Cross Mine life: Mine life: 9+ years (AT JUNE 2010) 24+ months (AT JUNE 2010) Gwalia Mine and Marvel Loch Mine King of the Hills Mine Processing capacity: Processing
Slide 11: Leonora Operations an engine room for cash generation
Leonora Operations an engine room for cash generation For personal use only Gwalia Mine Gwalia continues to build gold production to a sustainable level of 200,000 oz pa Forecast first quartile cash cost of $500-550 per ounce in FY12 Gwalia mineralisation extended at depth to 1900mbs King of t
Slide 12: Leonora Operations – Gwalia: a high quality, long life mine
Leonora Operations – Gwalia a high quality, long life mine For personal use only AS AT 31 MARCH 2011 SLIDE 11 | DRIVING INCREASED RETURNS APRIL 2011
Slide 13: Leonora Operations - Gwalia: exceptional gold endowment
Leonora Operations - Gwalia exceptional gold endowment For personal use only oz/vm RESERVES - Ounces per Vertical Metre Grade Au 10,000 14.00 9,000 12.00 Currently mining 8,000 at1300mbs 7,000 10.00 6,000 8.00 5,000 6.00 4,000 3,000 4.00 2,000 2.00 1,000 0 0.00 mbs 1040 1060 1080 1100 1120 1140 1160
Slide 14: Leonora Operations - Gwalia: growing production at lower costs
Leonora Operations - Gwalia growing production at lower costs For personal use only GROWING GWALIA AND INCREASING GRADE DRIVES LOWER KING OF THE HILLS PRODUCTION CASH OPERATING COSTS FOR GWALIA 719 686 245-270 83koz 630-680** 500-550 140-145 109 83 2009 2010 2011* 2012* 2009 2010 2011* 2012* Koz A$/
Slide 15: Southern Cross Operations generating positive cash flow
Southern Cross Operations generating positive cash flow For personal use only Marvel Loch Mature operation generating strong positive cash flows Prospective land for discovery SLIDE 14 | DRIVING INCREASED RETURNS APRIL 2011
Slide 16: Drilling targets Australia-wide
Drilling targets Australia-wide For personal use only 5,000+ km2 of prospective land around Australia SLIDE 15 | DRIVING INCREASED RETURNS APRIL 2011
Slide 17: Combining experience and technology to optimise discovery
Combining experience and technology to optimise discovery For personal use only Land Acquisition Targeting Prioritisation Principles Principles Principles Evaluating regional Applying robust Continual economic endowment geological models optimisation of targets Assembling geospatial Develo
Slide 18: Investing exploration funds effectively and strategically
Investing exploration funds effectively and strategically For personal use only Discovery TARGET DELINEATION DRILL TARGETING DRILL TESTING RESOURCE DELINEATION FEASIBILITY STUDY Pipeline Western Australia Marvel Loch Extension Gwalia Deeps Extension Tower Hill King of the Hills North Coppe
Slide 19: Trading at a deep relative discount
Trading at a deep relative discount For personal use only EV / Reserves (A$/oz) EV / Resources (A$/oz) 720 EV / Resources (A$/oz) EV/Reserves (A$/oz) 196 177 449 152 417 374 131 309 105 101 98 240 87 83 218 67 170 Ramelius Silver Lake Ramelius Resolute Resolute Intrepid Minerals OceanaGold OceanaGol
Slide 20: High quality share register and strong share liquidity
High quality share register and strong share liquidity For personal use only 20% increase in Significant Holders institutional support 18.1% M&G Group (UK) 6.4% Hunter Hall (Aus) in the last two years 6.0% Franklin Templeton (US) Target share price range* Register comprises $2.20–$3.90 ~80% institut
Slide 21: Why St Barbara?
Why St Barbara? For personal use only Earnings growth per share forecast to double Leverage to gold price through growth and increasing margins Strong financial position – record net profit and operating cash flow in H1 11 Organic production growth underpins guidance of 330 – 370Koz for FY12
Slide 22: Competent persons statement
Competent persons statement For personal use only Significant gold intersections and geological interpretations contained in this report have been compiled by Mr. Phillip Uttley. Mr. Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full time employee of the company.
Slide 23: Supporting documents
Supporting documents For personal use only • Executive Management • Board of Directors • Mineral Resources Statement • Ore Reserves Statement • 3 Year Forward Guidance SLIDE 22 | DRIVING INCREASED RETURNS APRIL 2011
Slide 24: Executive management
Executive management For personal use only Tim Lehany Ross Kennedy Managing Director Executive General Manager Corporate and Chief Executive Officer Services/Company Secretary Tim joined St Barbara on 2 March 2009 and has extensive Ross has been with St Barbara since 2004. He has 24 operating experi
Slide 25: Board of Directors
Board of Directors For personal use only S J Colin Wise Phillip C Lockyer Chairman – Non Executive Director– Non Executive Mr Wise is an experienced corporate lawyer, consultant Mr Lockyer is an experienced mining engineer and and company director with significant expertise in the metallurgist with
Slide 26: Mineral Resources Statement
Mineral Resources Statement as at 30 June 2010 For personal use only Notes Identified Mineral Resources have been estimated under the direction of Mr Ben Bartlett (MAusIMM, 990986, MAIG) who qualifies as the Competent Person. Mr Bartlett has sufficient experience relevant to the style of mineralisat
Slide 27: Ore Reserves Statement
Ore Reserves Statement as at 30 June 2010 For personal use only Notes 1. The Ore Reserve estimates used a gold price of A$1000/oz. 2. All data is rounded to two significant figures. Differences in summations will occur due to rounding. 3. The ore reserves estimates have been estimated and compiled u
Slide 28: Forward guidance
Forward guidance For personal use only GUIDANCE FY11 FY12 FY13 Gold production (koz) - Gwalia1 130 - 135 190 - 210 190 - 210 - King of the Hills2 10 55 - 60 55 - 60 - Southern Cross Operations 110 - 125 85 -100 - - TOTAL 250 - 270 330 - 370 245 - 270 Cash operating cost (A$/oz) - Gwalia3 630 - 680 5