St. Barbara Ltd. · ASX:SBM
St. Barbara — Investor Presentation (November 2010)
49 slides from St. Barbara's investor presentation, Nov 15, 2010
Slide 1: Presentation to International Investors at Leonora Operations
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 to International Investors at Leonora Operations We attach a copy o
Slide 2: A value focused Australian gold company
For personal use only A value focused Australian gold company Presentation to International Institutional Investors Leonora Operations Tim Lehany, Managing Director & CEO 15 November, 2010
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, sec
Slide 4: Overview
Overview For personal use only 1. ST BARBARA – A TRANSFORMATIONAL YEAR 2. LEONORA OPERATIONS – LEVERAGING GROWTH 3. GWALIA – OUR CORNERSTONE ASSET 4. KING OF THE HILLS – A NEW PROJECT 5. SOUTHERN CROSS OPERATIONS 6. OUR PEOPLE 7. INVESTING IN DISCOVERY 8. CREATING VALUE 9. INVESTMENT PROPOSITION Val
Slide 5: A transformational year
For personal use only A transformational year
Slide 6: Gold focused, capable and growing
Gold focused, capable and growing For personal use only Stock code: SBM Australian based producer(1) 231Koz ASX market capitalisation(2) A$977M Significant holders M&G Group 17.0% Franklin Templeton 6.0% Hunter Hall 5.1% Producing operations 2 Exploration land bank 6,000+ km² Ore Reserves(3) 15.7Mt@
Slide 7: Financial transformation opens up growth options
Financial transformation opens up growth options For personal use only A$M A$M Debt profile 120 100 80 60 40 20 15.9 0 2008 2009 2010 Strong balance sheet and low debt provide funding flexibility Note: St Barbara is not subject to the recently proposed Australian Minerals Resources Rent Tax Value Fo
Slide 8: Market guidance for FY10 delivered
Market guidance for FY10 delivered For personal use only GUIDANCE Gold production (oz) 231,018 Guidance: 205,000-240,000 205,000 240,000 Actual: 231,018 Cost per ounce (A$/oz) 790 Guidance: 780-820 780 820 Actual: 790 Leonora 686 Guidance: 630-700 630 700 Actual: 686 Southern Cross 883 Guidance: 840
Slide 9: September 2010 Quarter
September 2010 Quarter For personal use only Koz Gold production - last four quarters 70 60 62.6 63.5 50 55.1 54.4 40 30 20 10 FY 10 - Q2 Dec FY 10 - Q3 Mar FY 10 - Q4 Jun FY 11 - Q1 Sep • Highest quarterly gold production in 12 months • Gwalia quarterly gold production expected to increase through
Slide 10: Growing gold production since 2005
Growing gold production since 2005 For personal use only Ounces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2005 2006 2007 2008 2009 2010 Guidance Guidance 2011 2012 Value Focused Gold Company– 15 November 9
Slide 11: Building our reserves and extending mine life
Building our reserves and extending mine life For personal use only Contained Ounces 3,500 2,906 3,000 2,500 2,000 1,500 1,000 500 260 0 Ore Reserves Ore Reserves 2006 2007 2008 2009 2010 2005 2010 At 30 June 2010 Value Focused Gold Company– 15 November 10
Slide 12: Leonora Operations – leveraging growth
For personal use only Leonora Operations – leveraging growth
Slide 13: Leveraging growth from Leonora
Leveraging growth from Leonora For personal use only Mine life: 9+ years Ore Reserves: 10.2Mt @7.3g/t Au for 2.4Moz Mineral Resources: 27.7Mt @ 6.1g/t Au for 5.4Moz Cash Operating Cost: $A686/oz1 Leonora Operations Gold production • Gwalia Deeps - in operation since 2008 2009 83Koz • King of the Hil
Slide 14: Gwalia gold endowment 5.8Moz+
Gwalia gold endowment 5.8Moz+ For personal use only Value Focused Gold Company– 15 November 13
Slide 15: Sharing values and managing performance
Sharing values and managing performance For personal use only 444 Personnel Onsite State of the Art Village Facilities 113 SBM Golden Gecko Award for 231 Barminco sustainability 28 Byrnecut 1st Expansion complete 72 Other (drilling, catering, maintenance) 2nd Expansion underway Val
Slide 16: Processing plant 10+ year life
Processing plant 10+ year life For personal use only Gwalia – Processing Plant 1.2 mtpa processing plant, +95% recovery & +98% availability 660,000 to 700,000 tonnes of ore p.a access to third party ore pending KoTH ore Value Focused Gold Company– 15 November 15
Slide 17: Commissioned and ready for life of mine
Commissioned and ready for life of mine For personal use only • Ventilation Fans – 2 x 1350kW – Final Duty 450 m3/sec @ 4kPa • Refrigeration – 4 MWr – Upgradable to 8 MWr (2011/12) • Paste Fill Plant – 100 m3/hr (current rate 130 m3/hr) • Power Station – 4 MW (Dual Fuel) + 11MW (Gas) – Upgradable Va
Slide 18: Gwalia - our cornerstone asset
For personal use only Gwalia - our cornerstone asset
Slide 19: Gwalia rich in history, rich in gold
Gwalia rich in history, rich in gold For personal use only 1983 1999 Lalor brothers purchase mine and Open pit finishes and the open cut mining commences Hoover Deline is established for underground mining 1963 2002 Mine closes having Mine put in care and produced more than maintenance >2.5Moz over
Slide 20: Leveraging growth from Gwalia
Leveraging growth from Gwalia For personal use only Mine life: 9+ years Ore Reserves: 6.3Mt @9.0g/t Au for 1.8Moz Mineral Resources: 12.9Mt @ 8.6g/t Au for 3.6Moz Cash Operating Cost: $A686/oz1 Highlights for Fiscal Year 2010 Gold production • Ore production from Gwalia mine continues to grow • New
Slide 21: Gwalia – accessing the high grade South West Branch
Gwalia – accessing the high grade South West Branch For personal use only Value Focused Gold Company– 15 November 20
Slide 22: Improved decline design
Improved decline design For personal use only Current Stopes retreating New Stopes retreating MNL North to South • Currently accessing North to South stopes via south end • Plan to move decline MNL location to allow centre SWB access to stoping levels • Increases working faces • Design modelled and
Slide 23: Gwalia ore body intersected at depth
Gwalia ore body intersected at depth For personal use only Value Focused Gold Company– 15 November 22
Slide 24: Maximising the value of Gwalia
Maximising the value of Gwalia For personal use only Construction projects to Current Major Projects to improve efficiency & reduce unlock further value costs •Underground waste disposal •UG workshop, refuelling station, explosive magazine, •Material handling study pumping station •Improving decline
Slide 25: Leonora – Driving higher returns
Leonora – Driving higher returns For personal use only Leonora Gold Production Gwalia Cash Operating Costs Gwalia Open Pit King of the Hills 750 300,000 700 250,000 650 A$ per ounce 200,000 600 Ounces 150,000 550 100,000 50,000 500 represents guidance range 0 450 FY09 FY10 FY11 FY12 FY13 FY09 FY10 F
Slide 26: King of the Hills – a new project
For personal use only King of the Hills – a new project
Slide 27: King of the Hills - Leveraging capital infrastructure
King of the Hills- Leveraging capital infrastructure For personal use only Mine life: New pic required 5+ years Ore Reserves: 1.7Mt@4.3g/t Au for 230Koz Mineral Resources: 2.5Mt@5.3g/t Au for 418Koz Average Total Cost: A$ 1,020 - $1,050 /oz Highlights and Opportunities Gold production forecast • Dev
Slide 28: King of the Hills - Adding value to our business
King of the Hills - Adding value to our business For personal use only • Underground development commenced 9 October 2010 • Project on budget and on schedule • Gold production to commence June 2011 Value Focused Gold Company– 15 November 27
Slide 29: Southern Cross Operations
For personal use only Southern Cross Operations
Slide 30: Southern Cross Operations – Generating cash flow
Southern Cross Operations – Generating cash flow For personal use only Mine life: 2 years + Ore Reserves: 5.4Mt @2.8g/t Au for 500Koz Mineral Resources: 19.9Mt @ 3.5g/t Au for 2.3Moz Cash Operating Cost: A$883/oz2 Highlights and Opportunities Gold production • Positive cash flows for FY11&12 at curr
Slide 31: Our people
For personal use only Our people
Slide 32: Building a high performance team
Building a high performance team For personal use only • Strengthening organisational capability • Leadership development based on shared values • Integrating planning systems and processes • Close alignment with contractors Value Focused Gold Company– 15 November 31
Slide 33: Safe production - Start Safe, Stay Safe
Safe production - Start Safe, Stay Safe For personal use only Improving safety performance Value Focused Gold Company– 15 November 32
Slide 34: Investing in Discovery
For personal use only Investing in Discovery
Slide 35: Pursuing organic growth through discovery
Pursuing organic growth through discovery For personal use only A new team, a new exploration philosophy, a prospective land bank and available funds • Budget of A$15 to A$16M pa for next 3 years • Ten quality targets identified for drill testing in FY11 Value Focused Gold Company– 15 November 34
Slide 36: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia(4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Oth
Slide 37: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Ot
Slide 38: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Value Focused Gold Company– 15 November 37
Slide 39: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Value Focused Gold Company– 15 November 38
Slide 40: Filling the project pipeline – East Lachlan
Filling the project pipeline – East Lachlan For personal use only East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Te
Slide 41: Creating Value
For personal use only Creating Value
Slide 42: Achieving value and scale
Achieving value and scale For personal use only Medium term • Lower costs strategy • Drive margins • Increase production to • Add value through the rate of over 500koz discovery of gold p.a. by 2014, in • Pursue growth order to drive superior options TSR performance Next two years Value Focused Gold
Slide 43: How we will execute our medium term strategy
How we will execute our medium term strategy For personal use only Target 500Koz Koz 500 Per Annum LOWER CASH OPERATING COSTS 400 PROSPECTIVE 100koz+ TO 200koz PER ANNUM M&A Activity INVESTMENT CRITERIA Discovery MINIMUM IRR OF 15% 300 TARGET CONFIDENCE OF DEVELOPMENT 500Koz 231Koz PER ANNUM CONSENT
Slide 44: Investment Proposition
For personal use only Investment Proposition
Slide 45: St Barbara has quality ore reserves – great value
St Barbara has quality ore reserves – great value For personal use only Koz g/t Au A$ Philippines/New Zealand USD Reserve and Reserve Grade Market Capitalisation per Reserve Ounce as at 30 June 2010 St Barbara has the largest Australian reserve base of its peers, and the highest grade Value Focused
Slide 46: St Barbara – Long term, high cash margins
St Barbara – Long term, high cash margins For personal use only Value Focused Gold Company– 15 November 45
Slide 47: Strong, capable and growing
Strong, capable and growing For personal use only STRONG • Gwalia to deliver organic growth and lower costs • Financial strength provides flexibility for growth CAPABLE • Experienced Board & Executive team • Operational capability to deliver to guidance GROWING • Exploration drilling of defined targ
Slide 48: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement 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 t
Slide 49: Thank you
For personal use only Thank you Investor Relations Enquiries Tel: 61 (3) 8660 1900 Email: xian.davies@stbarbara.com.au