64 slides from St. Barbara's corporate update, Aug 9, 2012
Slide 1: Presentation to analysts and investors at Leonora Operations
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 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 to analysts and investors at Leonora Operations Attached is a prese
Slide 2: Leonora Site Tour
For personal use only Leonora Site Tour 9 August 2012
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: Overview
Overview For personal use only • Company Profile • Financial Overview • Operations • Leonora • Gwalia • King of the Hills • Projects • Expanded Plant • Discovery and Growth Leonora Site Visit – August 2012 3
Slide 5: Company Profile
For personal use only Company Profile Leonora Site Visit – August 2012 4
Slide 6: Historical context
Historical context For personal use only • March 2005 St Barbara acquired the Sons of Gwalia gold assets including Leonora and Southern Cross Operations from the Administrator - $2.3M cash consideration - assumed environmental bond obligations of $35.7M • Late 2005 certain assets divested • February
Slide 7: St Barbara at a glance
St Barbara at a glance For personal use only • Australian gold producer and explorer • Australasian and SE Asia focus • Mineral Resources 7.6 Moz (46.9 Mt @ 5.1 g/t Au) contained gold [1] • Ore Reserves 2.8 Moz (14.7 Mt @ 5.8 g/t Au) contained gold [1] • Indicative Gwalia mine life 8+ [2] years base
Slide 8: Strength across the value chain
Strength across the value chain For personal use only Exploration • 515,000 oz increase in Gwalia Mineral Resources in FY11 • Initial Mineral Resource estimate in FY12 for Frasers, Southern Cross, of 2.1 Mt @ 5.2 g/t Au containing 355,000 oz Reserves • 8 years Ore Reserves at Gwalia (6.9 Mt @ 8.9 g/
Slide 9: Financial Overview
For personal use only Financial Overview 8 Leonora Site Visit – August 2012
Slide 10: Proven performance – translating production into profit
Proven performance – translating production into profit For personal use only Gold Production Underlying Profit Per Ounce [1] +116% 346 FY 08 to FY 12 1H only 339 211 258 239 231 63 1 157 -186 FY 08 FY 09 FY 10 FY 11 FY 12 FY 12 FY 08 FY 09 FY 10 FY 11 1H 1H FY12 FY 12 koz A$M Financial years to 30
Slide 11: FY consolidated guidance achieved for production and costs
FY 12 consolidated guidance achieved for production and costs For personal use only FY 12 Production to Guidance 185 175 190 Gwalia 57 King of the Hills 55 60 97 Marvel Loch 90 100 339 Consolidated 320 350 -20 -10 0 +10 +20 Guidance Mid Points and Ranges koz Leonora Site Visit – August 2012 10
Slide 12: Positive cash generation
Positive cash generation For personal use only Cash Flow From Operations Cash & Debt Per Share 185 $0.36 $0.29 $0.26 1H only 79 $0.11 12 4 Debt Debt FY 09 FY 10 FY 11 1H 1H FY 12 Jun 2011 Jun 2012 A$ FY 12 A$M Shares adjusted for 6:1 consolidation Nov 2010 Leonora Site Visit – August 2012 11
Slide 13: Operational Overview
For personal use only Operational Overview Leonora Site Visit – August 2012 12
Slide 14: Operations – Philosophies and Principles
Operations - Philosophies and Principles For personal use only • Deliver to promise • Deliver sustainable production from Leonora of 230-250 koz pa • Contractor mining • Gwalia – Byrnecut (from Sep 2012) • KoTH - Byrnecut • Processing facilities are owner operated Leonora Site Visit – August 2012 13
Slide 15: Leonora
For personal use only Leonora Leonora Site Visit – August 2012 14
Slide 16: St Barbara holds significant land in the richly endowed Leonora region
St Barbara holds significant land in the richly endowed Leonora region For personal use only • 240 km north of Kalgoorlie • One of the 3 most richly endowed gold provinces in WA • Dominant land position in region • Leonora ore reserves: 11.2 Mt @ 7.0 g/t Au for 2.5 Moz [1] • King of the Hills locate
Slide 17: Leonora Operations – engine room for cash generation
Leonora Operations - engine room for cash generation For personal use only Gwalia Mine King of the Hills Mine More than 4.0 Moz of gold produced Satellite underground project since 1897 Successfully commissioned May 2011 FY13 forecast production of Utilises available Gwalia mill capacity 1
Slide 18: Gwalia Mine
For personal use only Gwalia Mine Leonora Site Visit – August 2012 17
Slide 19: Gwalia Mine – high quality, long life, high grade gold deposit
Gwalia Mine - high quality, long life, high grade gold deposit For personal use only As at 30 June 2011: • Ore Reserves of 6.9 Mt at 8.9 g/t Au containing 2.0 Moz of gold • Resources extended to 1,840 mbs, open at depth • Potential to extend Ore Reserves within mining envelope and at depth • Indicat
Slide 20: Gwalia Gold Production
Gwalia For personal use only Gold Production 185 • Commenced production in FY 09 131 • Record production in 109 FY 12 62 FY 09 FY 10 FY 11 FY 12 koz 19 Leonora Site Visit – August 2012
Slide 21: Gwalia Gold Production Quarterly
Gwalia For personal use only Gold Production Quarterly 54 46 • Record production in Q4 44 40 • Processing recovery 39 consistently at 97% FY 11 FY 12 FY 12 FY 12 FY 12 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun koz 20 Leonora Site Visit – August 2012
Slide 22: Gwalia grade and costs
Gwalia grade and costs For personal use only Grade Mined Grade • Q4 mined grade 10.5 g/t Au & Cash Cost 10.5 • Majority of ore sourced from the 722 712 richer South West Branch 683 9.3 • FY12 average mined grade FY12 average 8.8 8.8 g/t Au 627 7.5 Costs 6.9 8.1 580 • Q4 cash operating costs $580/oz,
Slide 23: Gwalia Mine – high quality, long life, high grade gold deposit
Gwalia Mine - high quality, long life, high grade gold deposit For personal use only Leonora Site Visit – August 2012 22
Slide 24: Potential for ore from other lodes to be brought into reserve
Potential for ore from other lodes to be brought into reserve For personal use only Leonora Site Visit – August 2012 23
Slide 25: Grade Distribution
For personal use only Grade Distribution Leonora Site Visit – August 2012 24
Slide 26: Gwalia – endowment and grade increase at depth
Gwalia – endowment and grade increase at depth For personal use only oz/vm Grade g/t Au RESERVES - Ounces per Vertical Metre C7000 20 u C ru 18 rr 6000 e r 16 n e tn5000 Currently 14 lt mining at y l 1300mbs 12 y 4000 m Limited im drilling data 10 n i 3000 in 8 n i g n 6 2000 FY12 g a Production ta
Slide 27: Gwalia – drilling density matches Resource
Gwalia – drilling density matches Resource For personal use only Number of Intersections Per Level for Surface Drilling 1140 - 1820 MBS (40 m Intervals) 50 45 Bottom of 40 Currently decline mining at No. of Drill Intersections 35 1300mbs 30 25 20 15 10 5 0 MBS Data at May 2012 Leonora Site Visit – A
Slide 28: Gwalia – extension of SWB to north and south
Gwalia – extension of SWB to north and south For personal use only Increase in Resources: FY 2011 • SWB + 138 koz • SGS + 295 koz FY 2012 • To be advised Leonora Site Visit – August 2012 27
Slide 29: Mining Method
For personal use only Mining Method Leonora Site Visit – August 2012 28
Slide 30: Increased grade and productivity from South West Branch
Increased grade and productivity from South West Branch For personal use only • Majority of Gwalia ore from FY12 onwards sourced from higher grade South West Branch • Improved mining method – “Dual Lift Stoping” • Long hole stoping with fill • North & South access on two dual lift levels gives 4 min
Slide 31: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB – mining sequence manages the hanging wall For personal use only FY11 2 1 5 4 3 Note: Single lift Hanging 8 Wall Span typically 32m (HR=6.15) 7 Development fully in 6 ore (limited dilution) 11 Leonora Site Visit – August 2012 30
Slide 32: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB – 3 Year Mining Sequence For personal use only FY11 FY12 FY13 FY14 Leonora Site Visit – August 2012 31
Slide 33: Consistent achievement of ore production targets
Consistent achievement of ore production targets For personal use only Annualised Ore Mined - Gwalia ktpa 900 800 700 600 500 400 300 200 100 0 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Quarters Leonora Site Visit – August 2012 32
Slide 34: Stress Results – lower than expected
Stress Results – lower than expected For personal use only Stress Test Results & Yilgarn Block Trends Principal Stress (MPa) 0 50 100 150 200 250 300 0 200 400 Result from HI stress test conducted at the 1130 Level. 600 In July 2009 800 Depth (mbs) 1000 1200 1400 1600 1800 2000 HI AE Min Yilgarn Max
Slide 35: New trucking technology
New trucking technology For personal use only Byrnecut Powertrans DAT 60 trucks on quarry trials •Two engines – front & rear •Faster – 15 km/h vs 7 km/h •Greater capacity – rated 60t Leonora Site Visit – August 2012 34
Slide 36: Processing & Infrastructure
For personal use only Processing & Infrastructure Leonora Site Visit – August 2012 35
Slide 37: Gwalia – Proven Process
Gwalia – Proven Process For personal use only Gwalia Mill – Design Capacity Capacity Availability Utilisation TPH % % Crusher 220 87% 87% Communition 170 96% 99% Leach 210 99% 99% The Gwalia mill is designed to treat 1.2 Mt p.a. of hard rock ore Leonora Site Visit – August 2012 36
Slide 38: Gwalia – recoveries consistently >95%
Gwalia - recoveries consistently >95% For personal use only Mill Recovery % 98% 97% 96% 95% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2011 2012 Leonora Site Visit – August 2012 37
Slide 39: Infrastructure is scalable to support deeper mining
Infrastructure is scalable to support deeper mining For personal use only Commissioned and ready for 10+ years life of mine • Ventilation Fans – 2 x 1350kW – Final Duty 450 m3/sec @ 4kPa • Refrigeration – 4 MWr – Upgradable to 8 MWr (2012/13) • Paste Fill Plant – 100 m3/hr (current rate 130 m3/hr) •
Slide 40: Gwalia - summary
Gwalia - summary For personal use only •Long life, 8+ years, backed by ore reserves •FY13 forecast production 175,000 – 190,000 oz •Expandable infrastructure •Regional targets to be drilled in H1 FY13 Leonora Site Visit – August 2012 39
Slide 41: Satellite Project King of the Hills
Satellite Project For personal use only King of the Hills Leonora Site Visit – August 2012 40
Slide 42: King of the Hills successfully commissioned
King of the Hills successfully commissioned For personal use only • Production commenced May 2011, ahead of plan • FY12 production 56,953 @ $753 per ounce • 2 ½ years LOM [1] • Reserve grade 4.3 g/t Au [2] • FY13 forecast production 55,000-60,000 ounces • Deposit open on the Eastern and Western Flan
Slide 43: King of the Hills Gold Production
King of the Hills For personal use only Gold Production 17 • Production in line with 16 14 expectations • FY12 production 56,953oz 9 within guidance 7 • Q4 cash operating costs $746/oz (Q3: $693/oz) • FY12 cash operating costs $753/oz FY 11 FY 12 FY 12 FY 12 FY 12 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun
Slide 44: KOTH open stoping in eastern flank
KOTH open stoping in eastern flank Mining Strategy (FY13 LoM Run 1) For personal use only • Moving to cut and fill in western flank Leonora Site Visit – August 2012 43
Slide 45: KOTH open down plunge
KOTH open down plunge For personal use only Leonora Site Visit – August 2012 44
Slide 46: Potential Expanded Processing Facility
For personal use only Potential Expanded Processing Facility Leonora Site Visit – August 2012 45
Slide 47: Gwalia – Mill has optionality
Gwalia – Mill has optionality For personal use only Gwalia Mill - Limiting Capacity Current mill • Incremental capacity expansion Capacity Availability Utilisation by crushing finer and increasing TPH % % ball mill Crusher 220 87% 87% Communition 170 96% 99% • Leach circuit has abundant Leach 210 99
Slide 48: Leonora regional strategies to leverage value from existing infrastructure
Leonora regional strategies to leverage value from existing infrastructure For personal use only • King of the Hills successfully developed • Near mine and regional exploration for more options • Focus on Greater Gwalia Area Leonora Site Visit – August 2012 47
Slide 49: Discovery & Growth
Discovery & Growth For personal use only September 2012 quarter exploration planned in 3 states • Exploration focus on discoveries: – in proximity to processing plants – prospective greenfield areas • 5,000+ km2 of prospective land around Australia 48 Leonora Site Visit – August 2012
Slide 50: Questions & Discussion
For personal use only Questions & Discussion Leonora Site Visit – August 2012 49
Slide 51: Appendices
Appendices For personal use only 50 Leonora Site Visit – August 2012
Slide 52: FY13 guidance
FY13 guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora S’thn Cross Gold koz 175-190 55-60 20-25 250-275 production FY13 guidance, including cash operating cost and capex ranges, is anticipated to be released by 31 August 2012. 51 Leonora Site Visit – August 20
Slide 53: Production summary
Production summary For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Consolidated FY12 FY12 FY12 FY12 FY12 Gold Production Gwalia oz 40,306 46,007 43,881 54,340 184,534 King of the Hills oz 9,343 14,107 17,110 16,393 56,953 Southern Cross oz 20,959 23,501 24,849 28,083 97
Slide 54: Gwalia
Gwalia For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Gwalia FY12 FY12 FY12 FY12 FY12 Underground ore mined t 173,498 181,204 145,609 161,989 662,300 Grade g/t Au 7.5 8.1 9.3 10.5 8.8 Ore milled t 174,056 192,592 168,049 181,943 716,640 Grade g/t Au 7.4 7.7 8.4 9.6 8.3
Slide 55: King of the Hills
King of the Hills For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year King of the Hills FY12 FY12 FY12 FY12 FY12 Underground ore mined t 77,034 107,840 136,016 136,486 457,375 Grade g/t Au 3.7 4.3 4.2 4.0 4.1 Ore milled t 82,179 105,541 131,739 133,482 452,941 Grade g/t Au
Slide 56: Marvel Loch
Marvel Loch For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Marvel Loch FY12 FY12 FY12 FY12 FY12 Underground ore mined t 251,628 163,814 240,957 235,966 892,365 Grade g/t Au 2.7 3.1 2.6 3.2 2.9 Ore milled t 295,076 518,560 527,790 501,394 1,842,820 Grade g/t Au 2.5 1.6
Slide 57: Start safe, stay safe
Start safe, stay safe For personal use only Safety • Safety performance significantly 14.8 improved from end of FY11 12.5 • Further improvement targeted in 11.1 FY13 9.0 FY 09 FY 10 FY 11 FY 12 TRIFR (rolling 12 month average Total Recordable Injury Frequency Rate) 56 Leonora Site Visit – August 201
Slide 58: Mineral Resources Statement
Mineral Resources Statement As at 30 June 2011* For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Gold Gold Gold Gold kt Au g/t koz kt Au g/t koz kt Au g/t ko
Slide 59: Ore Reserves Statement
Ore Reserves Statement As at 30 June 2011* For personal use only Region Category Proved Probable Total Tonnes Gold grade Gold Tonnes Gold grade Gold Tonnes Gold grade Gold Project kt Au g/t koz kt Au g/t koz kt Au g/t koz Leonora Gwalia Deeps 2,015 7.1 460 4,902 9.6 1,512 6,917 8.9 1,973 Tower Hill
Slide 60: Current hedge position - KoTH
Current hedge position - KoTH For personal use only Hedge Profile koz King of the Hills A$/oz 80 1,650 A$1,615 KoTH collar over 180 koz maturing in June 2015 70 1,600 • put option strike of 60 1,550 50 1,500 A$1,425/oz & call strike of 40 A$1,615/oz A$1,425 1,450 30 1,400 20 10 1,350 0 1,300 FY13 FY
Slide 61: 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 62: Non-IFRS Measures
Non-IFRS Measures For personal use only Underlying Profit Per Ounce 1H FY 12 FY 11 FY 10 FY 09 FY 08 Underlying net profit after tax A$000 53,347 54,431 14,547 209 (29,291) Gold production oz 154,223 258,474 231,018 238,900 157,477 Underlying Profit Per Ounce A$/oz 346 211 63 1 -186 Source: FY 08 to
Slide 63: Competent persons statement
Competent persons statement For personal use only The information in this presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Phillip Uttley who is a Fellow of the Australasian Institute of Mining and Metallurgy. Phillip Uttley is a full-time em
Slide 64: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 Leonora Site Visit – August 2012 63