St. Barbara Ltd. · ASX:SBM
St. Barbara — BMO Capital Markets 28th Global Metals & Mining Conference 2019
45 slides from St. Barbara's conference presentation, Feb 25, 2019
Slide 1: Presentation to analysts and investors attending BMO Capital Markets 28th Global Metals & Mining Conference
ASX Release / 25 February 2019 Presentation to analysts and investors attending BMO Capital Markets 28th Global Metals & Mining Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending BMO Capital Markets 28th Global Metals & Mining Conferen
Slide 2: BMO 28th Global Metals & Mining Conference
BOB VASSIE, MANAGING DIRECTOR & CEO 25 - 27 February 2019 ASX: SBM BMO 28th Global Metals & Mining Conference
Slide 3: Forward statements
Forward statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained in The Company estimates its Ore Reserves and Mineral Resources in accordance with The Australasian Code this presentation is for information purposes only. This presentation is not a
Slide 4: Contents
Contents • St Barbara overview • Growth initiatives • Safety • Exploration • Operations • Conclusion Gwalia processing plant at dusk, June 2018 3 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Papua Simberi Market cap1 A$2.5B @ A$4.82/sh (US$1.8B) New Guinea Shares1 524 M Liquidity2 3.8 M/day (0.7%) 1H FY19 EPS3 A$0.16 (US$0.12) 1H FY19 DPS A$0.04 (US$0.03) Dividend yield4 0.8% Australia Leonora Cash and term
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.8 2.9 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 Q1 Q2 FY19 FY19 • The Total Recordable Injury Frequency Rate1 of 2.9 at 31 December 2018 • Improved supervisor and investigation training underway Working with suspended loads at G
Slide 7: 1H FY19 key achievements
1H FY19 key achievements • Consolidated half-year gold production of 188 koz Operational • 1H FY19 AISC1 of A$1,008/oz (US$730/oz) excellence • Full year production guidance increased at Simberi • EBITDA margin of 45%2 Financial • Cash flow from operating activities of A$95 M (US$70 M) performance •
Slide 8: 1H FY19 Key financial metrics
1H FY19 Key financial metrics (US$ 60) 83 NPAT (A$ M) (US$ 92) 121 (US$ 83) 106 57 1,2 Gwalia EBITDA margin % 64 60 1,2 44 Simberi EBITDA margin % 43 45 (US$ 0.12) 0.16 EPS (A$ basic) (US$ 0.18) 0.24 (US$ 0.16) 0.21 US$ 0.03 0.04 1H19 Dividend US$ 0.06 0.08 2H18 per share (A$) US$ 0.03 0.04 1H18 1.
Slide 9: Australian Gold Peer Comparison – 1H FY19 NPAT and EPS
Australian Gold Peer Comparison – 1H FY19 NPAT and EPS1 • St Barbara ranks favourably with Australian gold peers 4% 4% Bubble size = Bubble size = 1H19 gold production SBM 1H19 gold production SBM 1H FY19 NPAT vs Market Cap.1 (%) 1H FY19 EPS vs Share Price1 (%) 3% 3% RRL RRL 2% 2% EVN SAR SAR OGC EV
Slide 10: Balance Sheet
Balance Sheet US$M Cash and debt 300 254 252 200 86 130 Term deposits 168 100 124 122 102 75 59 0 Cash 0 -100 -169 -200 Debt -268 -300 -325 -400 FY14 FY15 FY16 FY17 FY18 1H FY19 1. Cash balance comprises US$122 M cash, US$130 M term deposits (with 4 to 12 months maturity) and excludes US$1 M restric
Slide 11: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 12.5 10.7 10.5 8.9 9.3 8.4 Reserve Grade3 7.5 g/t Au June 2018 Production (koz) AISC 267 268 255 265 (US$/oz) 248 245 214 863 685 700 1H= 592 622 116 570 Underground loader at Gwalia, June 2018 FY14 FY15 FY16 FY17 FY18 FY19F 1. FY19F AISC is mi
Slide 12: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://www.youtube.com/watch?v=ya-GEzscdCY 11 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 13: 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$100 M (US$79 M) with planned completion in Q2 December FY201 • GEP on schedule and approximately 60% complete. A$62 M (U
Slide 14: Gwalia Mass Extraction – Feasibility Study due March 2019
Gwalia Mass Extraction – Feasibility Study due March 2019 • Pre-Feasibility Study announced February 2018 • Future proofing costs of A$15 M (US$11 M) on ventilation fans and bulk air cooling to be spent in FY20 • 1H FY19 capex spend of A$2 M • 2H FY19F capex of A$3 M to A$4 M (US$2 M to US$3 M) on s
Slide 15: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16F, GWDD16G and GWDD16H intersected the mine sequence between 1,900 and 2,013 mbs • Significant results include1: o 0.9 m at 34.4 g/t Au o 3.6 m at 10.7 g/t Au o 1.8 m at 76.3 g/t Au o 10.8 m at 3.6 g/t Au • Results suggest this z
Slide 16: Exploration | Seismic Targets
Exploration | Seismic Targets Gwalia Seismic Exploration • Completed parent hole GWDD22 1 km south of underground mine development • The hole intersected 88 m of alteration and veined material interpreted as the southern extension of the Gwalia Shear Zone • Additional modelling is underway to identi
Slide 17: Simberi production and cost profile
Simberi production and cost profile 2,111 AISC1 1,218 2 941 895 773 955 (FYF) (US$/oz) 802 (1H) Production 135 130 (koz) 116 120 110 80 1H= 44 72 FY14 FY15 FY16 FY17 FY18 FY19F Overlooking Simberi Operations and Pigiput Bay, October 2017. Photo by George Danga Jnr. 1. AISC is a non IFRS measure, ref
Slide 18: 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 @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at
Slide 19: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG Sorowar Pit • Drilling results continue to be positive, indicating significant additional sulphide and oxide mineralisation is present • Best intersections include (all results downhole): 120SORDGC010: • 35 m at 3.11 g/t Au from 67 m 125SORDGC006: • 27 m at 8.92 g/t
Slide 20: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 19 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 21: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 20 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 22: Exploration FY19 Guidance
Exploration FY19 Guidance - A$25 to 30 million (US$18 to 22 million) Leonora Region & Gwalia, WA • Gwalia Deep Drilling + Seismic • A$12 - 15 million (US$9 - 11 million) Pinjin, WA • Aircore drilling of identified targets • A$4 - 5 million (US$3 – 4 million) Tabar Island Group, PNG • Simberi Oxides/
Slide 23: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 22 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 24: 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 25: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Gwalia Metals Peel GMX Mining Tower 16% Hill 18%. Aust. Gwalia Potash Extension Gwalia Prodigy Duketon Mine Gold Mining 10% 12% Au, EJV2 Inorganic growth Evaluating exploration, projec
Slide 26: Sustainability Report (ESG)
Sustainability Report (ESG) Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic Performance & Corporate Governance • Core values and Code of Conduct Statement • Ethical business conduct with all stakeholders • Disclosure guided by GRI • Manage for lon
Slide 27: Conclusion
Conclusion • Strong operational performance, record half-year production from Simberi • Increased FY19 guidance to 365 to 385 koz • NPAT A$83 M (US$60 M) • A$357 M (US$252 M) cash at bank1 • 4 cps (US$0.03) fully franked interim dividend • Profitable organic growth options in progress: • Gwalia exte
Slide 28: Appendices
Appendices Sunrise at Leonora Operations, June 2018 27 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 29: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY18 FY18 FY19 FY19 FY19 FY191 St Barbara’s financial year is Qtr to Year to 30 June Qtr to Qtr to 6 months to Year to 30 June 2019 1 July to 30 June 30 June 2018 2018 30 Sep 2
Slide 30: Hedging Summary at 25 February 2019
Hedging Summary at 25 February 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) 7 & 19 Feb 2018 FY19 36,000 A$1,750 March to June 2019 & 7 Mar 2018 (64,000 of initial 100,000 ounces delivered year to date since 1 July 2018) 7 & 19 Feb 2018 50,000 A$1,750 July
Slide 31: Consolidated Gold Production
Consolidated Gold Production AISC (Consolidated) 1H FY19 Production Highlights (A$/oz) 1,008 905 910 899 883 Consolidated (US$/oz) 730 • Gold production of 188 koz 682 687 700 668 @ AISC1 A$1,008/oz (US$730/oz) koz 205 • EBITDA margin1 of 45% 198 191 190 188 • FY19F guidance 365-385 koz 64 53 63 71
Slide 32: Interim dividend – 1H FY19
Interim dividend – 1H FY19 A$ A$ Share Price FY18 final dividend Dividend • Interim dividend of 0.08 A$0.04 (US$ 0.03) per share 5.00 FY17 final • Fully franked 4.00 dividend 0.06 • Record date 6 March FY18 interim FY19 interim • Dividend Reinvestment Plan1 at dividend 3.00 dividend 1.0% discount to
Slide 33: Gender Diversity
Gender Diversity • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • Representation of women on the board at 40%1 • Representation of women in leadership roles at 27%2 •
Slide 34: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program Gwalia - March 2016 For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 33 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 35: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 34 / BMO Metals & Mining Conference, 25-27 February 2019
Slide 36: Gwalia – lowest expected mined depth
Gwalia – lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 Mineral Resources 1380 Ore Reserves deepest mineralised intersection 1420 1500 1500 1600 1540 1580 1620 1700 1800 1740
Slide 37: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves Maximum Depth of Ore Reserves (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 500 1000 1500 mbs 1500 mbs 1540 mbs 1500 1580 mbs 1620 mbs 1540 mbs Maximum Mined Depth 1740 mbs 2000 1940 mbs Maximum Reserves Depth 2140 mbs 2140 mbs Ore Reserves and Mi
Slide 38: Ore Reserves Summary as at 30 June 2018
Ore Reserves Summary as at 30 June 2018 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) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 39: Mineral Resources Summary as at 30 June 2018
Mineral Resources Summary as at 30 June 2018 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) 4,581 7.1 1,048 14,690 6.3 2,997 3,831 6.3 7
Slide 40: Shareholders and Broker Coverage
Shareholders and Broker Coverage Broker Research Coverage Not analysed Argonaut James Wilson 8% Institutional 88% Canaccord Reg Spencer Citi Trent Allen Non Institutional 4% Credit Suisse Mike Slifirski Deutsche Bank Tim Hoff GMR David Radclyffe Goldman Sachs Matthew Frydman JP Morgan Mathew Hocking
Slide 41: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years’ international mining industry Mr Netscher is an experienced international
Slide 42: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary General Manager Human Resources and Health, Safety, Appointed 2014 Joined 2006 Joined 2010 Environment and Community Mr Vassie is a mining engineer with
Slide 43: 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 44: Non-IFRS Measures
Non-IFRS Measures 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 assist management, invest
Slide 45: 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 St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp
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