St. Barbara Ltd. · ASX:SBM
St. Barbara — Q1 FY2020 Earnings Presentation
41 slides from St. Barbara's earnings presentation, Oct 24, 2019
Slide 1: Presentation on Q1 September FY20 Quarterly Report and audio webcast
ASX Release / 21 October 2019 Presentation on Q1 September FY20 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q1 September FY20 Quarterly Report at 11:00 am Australian Eastern Standard Time (UTC + 11 hours) on Monday 21
Slide 2: Q1 September FY20 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 21 October 2019 ASX:SBM Q1 September FY20 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices Maryse Bélanger (President Americas) and Bob Vassie (Managing Director and CEO) at Touquoy, NS Canada, September 2019. David Cotterell (Manager Investor Relations) and Les Cook (Mine Operations Su
Slide 5: Highlights Q1 September FY20
Highlights Q1 September FY20 • 88 koz1 at AISC2 of A$1,421/oz1 (Q4: 86 koz at A$1,219/oz) Operational • Gwalia total material moved increasing, best in 5 qtrs. performance • Updated guidance issued 18 October • Operational cash contribution2 of $43 M (Q3: $58 M) Financial • A$503/oz cash contributio
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with 5.0 5.0 5.0 Western Australian Mining benchmarks3 1.9 1.9 1.6 2.1 2.1 1.2 FY15 FY16 FY17 FY18 FY19 Q1 St Barbara WA Gold WA Metal FY20 Q1 FY20 • The Total Recordable Injury Frequency Rate (TRIFR, 12 month mo
Slide 7: Consolidated Q1 September FY20 Results
Consolidated Q1 September FY20 Results AISC (A$/oz) Q1 FY20 Production 1600 • Consolidated 88 koz (Q4: 86 koz) 2 1,421 1400 1200 • Gwalia 38 koz (Q4: 50 koz) 1,175 1,053 1,073 868 1000 800 • Simberi 27 koz (Q4: 36 koz) 600 400 • Atlantic 22 koz (Q4: 23 koz) Gold Production (koz) 200 0 126 28 112 108
Slide 8: Gwalia Q1 September FY20 Results
Gwalia Q1 September FY20 Results AISC (A$/oz) 1,559 833 1,081 1,016 1,230 Q1 FY20 Production FY19 average $1,027/oz • 38,153 oz (Q4: 49,966 oz) Mined grade (g/t Au) • AISC1 A$1,559/oz (Q4: A$1,230/oz) 12.4 10.4 11.7 10.0 • Mined grade of 7.4 g/t Au 7.4 (Q4: 10.0 g/t Au) Reserve grade FY19 7.5 g/t Au
Slide 9: Gwalia production and cost profile
Gwalia production and cost profile AISC (A$/oz) 1,4202 1,027 841 783 785 802 FY20 guidance Production • Production of 175 to 190 koz (koz) (previously 200 to 210 koz) 267 265 268 248 • AISC1 of A$1,390 to A$1,450/oz 220 (previously A$1,230 to A$1,290/oz) 190 175 • Sustaining capex: A$60 to A$65 M (p
Slide 10: Gwalia | Total material moved
Gwalia | Total material moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 262 267 • Excavation of the approx. 11 m high x 260 256 252 10 m wide chambers at 1,420 and 1,460 mbs for the PAF circuit 69 82 106 115 commenced in Q1 Sep FY17 78 • Raise-boring of the four 5-metre dia
Slide 11: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 million with planned completion in Q3 March FY202 • A$107 million spent on project to date • PAF crushing circuit on
Slide 12: Simberi Q1 September FY20 Results
Simberi Q1 September FY20 Results AISC (A$/oz) 1,603 Q1 FY20 Production • 27,061 oz (Q4: 36,231 oz) 1,146 1,229 1,203 1,068 • AISC1 A$1,603/oz (Q4: A$1,203/oz) • Milled grade 1.09 g/t Au (Q4: 1. 68 g/t FY19 average $1,162/oz Production Au), due to stripping campaign in mining (koz) areas, 33% of mil
Slide 13: Atlantic Gold Q1 September FY20 Results
Atlantic Gold Q1 September FY20 Results AISC Q1 Sep FY20 performance (A$/oz) • Production 22.3 koz full quarter3 957 1,010 970 840 • AISC1 A$970/oz (C$879/oz) 688 • Hurricane Dorian and detox tank maintenance interrupted processing Production (koz) for approx. one week 22.3 FY20 guidance • 95 – 105
Slide 14: Consolidated FY20 guidance
Consolidated FY20 guidance AISC (A$/oz) 1,080 1,285 907 891 FY20 Consolidated Guidance • Production 380 to 420 koz Production • AISC1 A$1,240/oz to A$1,330/oz (koz) 381 403 362 400 • Sustaining capex A$77 to A$87 M 116 135 100 • Growth capex A$35 to A$42 M 142 (excluding Atlantic Gold) 118 265 268 2
Slide 15: Cash Balance
Cash Balance 1000 A$M 890 800 480 Entitle- ment 600 Offer A$780 (net Atlantic proceeds) Q1 movement net of: Gold 28 400 25 purchase $19 M dividends 410 $14 M growth capex 357 Q3 movement net of: 382 Q4 movement net of: $13 M exploration $19 M growth capex $20 M growth capex 200 $8 M working capital
Slide 16: Exploration | Key Developments
Exploration | Key Developments Gwalia, WA mineralisation including encouraging intersections near • Continued testing of southern extensions in Deeps, results surface pending. Ongoing testing of near-mine prospects exploitable Moose River Corridor, Canada, NS in short term at Rushmore, Jessie Alma,
Slide 17: Exploration | Gwalia Deep Drilling
Exploration | Gwalia Deep Drilling For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 16 / Q1 September FY20 Quarterly Presentation
Slide 18: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 17 / Q1 September FY20 Quarterly Presentation
Slide 19: Exploration | Fifteen Mile Stream, Nova Scotia, Canada
Exploration | Fifteen Mile Stream, Nova Scotia, Canada • Seloam Brook: 13 diamond drill holes follow-up of FY2018-FY2019 drilling. Significant intercepts (all downhole): SB-19-028: o 7 m @ 0.79 g/t from 63 m SB-19-030: o 4 m @ 0.84 g/t Au from 56 m SB-19-031: o 4 m @ 9.73 g/t Au from 81 m o 2 m @ 1.
Slide 20: Exploration | Cochrane Hill, Nova Scotia, Canada
Exploration | Cochrane Hill, Nova Scotia, Canada • Cochrane Hill down dip and eastern Extension: 17 diamond drill holes resource conversion • Significant intersections (all downhole): CH-19-335: o 1 m @ 10.25 g/t Au from 243 m o 1 m @ 19.55 g/t Au from 248 m o 15 m @ 2.17 g/t Au from 253 m o 7 m @ 1
Slide 21: Strategy for the next 5 years – “Stronger for Longer”
Strategy for the next 5 years – “Stronger for Longer” Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in all phases of the pipe
Slide 22: Growth Pipeline
Growth Pipeline Atlantic Gold (Regional) Atlantic Gold (Moose River Corridor) Tabar Island Group KEY (Au, Au-Cu) Canada Papua New Guinea Back Creek Australia Equity Investments Atlantic Gold Leonora Province (Beaver Dam) Peel Mining Atlantic Gold Greater Gwalia (16%) (Cochrane Hill) Catalyst Metals
Slide 23: Conclusion
Conclusion • Operational results at Gwalia and Simberi impacted by lower grades, mining sequence, GEP at Gwalia • Underlying results (total material moved and plant throughput) improving • Updated guidance at Gwalia • New guidance at Atlantic Gold • First quarter from Atlantic encouraging, first pla
Slide 24: Appendices
Appendices Visit by Board to Fifteen Mile Stream Atlantic Gold development project, Nova Scotia, Canada September 2019. L to R: David Moroney (Non-Executive Director), Kerry Gleeson (Non-Executive Director), Tim Netscher (Non-Executive Chairman), Klaus Popelka (obscured) GM Exploration, Stef Loader
Slide 25: Diversity and Sustainability | Developments in Q1 FY20
Diversity and Sustainability | Developments in Q1 FY20 Gender Diversity Leader Runner-up Mining Journal Awards • St Barbara recognised for its commitment to gender diversity, awarded Runner Up, Gender Diversity Leader in the Mining Journal’s 2019 International Awards. ESG Reporting rated ‘Leading’ A
Slide 26: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q1 Sep Guidance Consolidated FY19 FY19 FY 19 FY20 FY20 FY20 AG full quarter AG SBM attributable St Barbara’s financial year Qtr to Qtr to Year to Qtr to Qtr to Year to is 1 July to 30 June 31 Mar 2019 30 Ju
Slide 27: Exploration | FY20 Guidance – A$31 to A$41 million
Exploration | FY20 Guidance – A$31 to A$41 million A$7 – A$9 million Leonora A$8 – A$12 million PNG • Shift in focus from Gwalia Deep Drilling to • Simberi Oxides/Sulphides and Porphyry region and Greater Gwalia A$11 – 13 million Atlantic Gold Canada A$5 – A$7 million Pinjin, Lake Wells & • Moose Ri
Slide 28: Exploration | Gwalia Deeps and Greater Gwalia
Exploration | Gwalia Deeps and Greater Gwalia Gwalia Deep Drilling • Awaiting assay results for GWDD025 For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 27 / Q1 September FY20 Quarterly Presentation
Slide 29: Exploration | Seismic Targets
Exploration | Seismic Targets For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 28 / Q1 September FY20 Quarterly Presentation
Slide 30: Exploration | Seismic Targets
Exploration | Seismic Targets For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 29 / Q1 September FY20 Quarterly Presentation
Slide 31: Exploration | Greater Gwalia
Exploration | Greater Gwalia Greater Gwalia • Emphasis on short term exploitable prosects • Phase 2 drilling, comprising of eight new diamond drill holes with RC pre-collars, and four existing hole extensions via diamond tails Significant results from this program include (all intercepts down-hole):
Slide 32: Exploration | Horse Paddock Well / Trevor Bore
Exploration | Horse Paddock Well / Trevor Bore • Horse Paddock Well (Leonora, WA): A third phase of drilling comprising eight RC drill holes and two extensional diamond tails. Results include (all downhole): o 1.0 m @ 5.3 g/t Au from 114 m (HWRC0015) o 1.0 m @ 2.6 g/t Au from 23 m (HWRC0018) o 2.0 m
Slide 33: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG DRAFT For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 32 / Q1 September FY20 Quarterly Presentation
Slide 34: Simberi Sulphide – Potential long life mine extension
Simberi Sulphide – Potential long life mine extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 2.4 g/t Au, 3.3 Moz Sulphide Resource @ 1.6 g/t Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 35: Exploration | Nova Scotia, Canada
Exploration | Nova Scotia, Canada • In Canada’s Nova Scotia province the Group has exploration interests at various stages, including: • Advanced prospects being permitted for mining operations (Beaver Dam, Fifteen Mile Stream, Cochranes Hill) • Potential satellite pits within the Moose River Corrid
Slide 36: Hedging Summary at 18 October 2019
Hedging Summary at 18 October 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) FY20 20,280 A$1,750 October and December 2019 7 & 19 Feb 2018 and (29,720 of initial 50,000 ounces delivered year to date since 1 July 2019) 7 Mar 2018 FY20 24,000 A$1,809 January
Slide 37: Ore Reserves Summary as at 30 June 2019 + Atlantic Gold
Ore Reserves Summary as at 30 June 2019 + Atlantic Gold Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 2,220 8.0 568 7,915 5.9 1,506 10,135 6.4 2,073 Tower Hill, (WA) - - - 2,572 3.7 306
Slide 38: Mineral Resources Summary at 30 June 2019 + Atlantic Gold
Mineral Resources Summary at 30 June 2019 + Atlantic Gold Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 5,034 7.3 1,183 17,527 6.0 3,39
Slide 39: Non-IFRS Measures and Scheduled Announcements
Non-IFRS Measures and Scheduled Announcements 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
Slide 40: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 41: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Stef Loader (Non-Executive Director) and Bob Vassie (MD & CEO), discussing PAF commissioning, 1,420 mbs at Gwalia, October 2019 40 / Q1 September FY20 Quar