St. Barbara Ltd. · ASX:SBM
St. Barbara — FY2019 Earnings Presentation
39 slides from St. Barbara's earnings presentation, Aug 21, 2019
Slide 1: Presentation on FY19 Financial Report and audio webcast
ASX Release / 21 August 2019 Presentation on FY19 Financial Report and audio webcast Bob Vassie, Managing Director & CEO, and Garth Campbell-Cowan, Chief Financial Officer, will brief analysts and institutional investors on the full year financial results at 11:00 am Australian Eastern Standard Time
Slide 2: FY19 Financial Results Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 21 August 2019 FY19 Financial Results 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 • Overview • Growth • Safety • Exploration • Operations • Strategy • Profit & Cash • Conclusion • Reserves & Resources • Appendices Simberi truck fleet, February 2019. Photo by Elvis Karon. 3 / FY19 Financial Results Presentation
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Market Cap1 A$2.5B @ A$3.59/sh Shares1 696 M Liquidity2 9.0 M/day (1.3%) FY19 EPS3 A$0.27 FY19 Total Dividend A$0.08 Cash and cash deposits4 A$110 M Debt A$112 M (C$100 M)9 Ore Reserves (JORC) 5 5.9 Moz (4.1 Moz + 1.9 M
Slide 6: FY19 Highlights
FY19 Highlights FY18 Financial Results – Another 362 •FY19 production record year koz @ AISC1 of A$1,080/oz Operational •Simberi record production and cash flow for FY19 excellence •Continued successful Gwalia deep drilling and exploration • NPAT of A$144 million (FY18: A$227 M) Financial • FY19 ope
Slide 7: St Barbara Safety Focus
St Barbara Safety Focus Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 9.0 2.0 1.9 6.0 1.6 5.0 5.0 4.1 1.1 2.1 2.1 1.2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 St Barbara WA Metal, WA Gold WA Metal, FY19 Underground Surface • TRIFR c
Slide 8: Atlantic Gold acquisition completed July 2019
Atlantic Gold acquisition completed 19 July 2019 Touquoy pit lookout, Atlantic Gold Operations. 7 / FY19 Financial Results Presentation
Slide 9: Transformational Acquisition Consistent with our Strategy 'Stronger for Longer'
Transformational Acquisition Consistent with our Strategy "Stronger for Longer" • Substantial, low cost production from an established mining Diversify jurisdiction • CY19 forecast production of 92 – 98 koz at an AISC of C$695 – production base 755/oz (A$740 – 803/oz)1, with pathway to 200+ kozpa
Slide 10: Gwalia
Gwalia Leonora Operations at dusk, June 2018. 9 / FY19 Financial Results Presentation
Slide 11: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile1 Mined Grade (g/t Au) 12.5 10.7 11.1 8.8 8.9 9.3 8.2 8.4 8.0 6.9 6.3 5.7 Reserve Grade2 6.4 g/t Au June 2019 Production 267 265 268 12601 (koz) 248 AISC 220 210 (A$/oz) 214 200 185 183 1027 940 841 802 783 785 Portal, Hoover Decline, Gwalia. FY12 FY13 FY14 F
Slide 12: Simberi
Simberi Jason Eade, Manager Fixed Plant Maintenance, viewing the Ropecon Simberi Operations, July 2019. 11 / FY19 Financial Results Presentation
Slide 13: Simberi Production and Cost Profile
Simberi Production and Cost Profile AISC1 (A$/oz) 1,464 1,293 1,3682 • Fifth consecutive record annual 1,187 1,068 1,162 production 142 koz (FY18: 135 koz) Mined Grade • Benefitted from improved grade (g/t Au) 1.43 and record recovery of 87% 1.23 1.26 1.25 1.13 Reserve Grade3 1.16 (FY19: 85%) 1.3 g/
Slide 14: FY19 Key financial metrics
FY19 Key financial metrics 1,2 43 EBITDA margin % 51 50 2 56 Gwalia EBITDA margin % 62 64 2 42 Simberi EBITDA margin % 44 36 1,2 27 EPS (basic, cents) 1,2 39 32 8 Dividend per share (cents) 12 6 FY19 2.2 3 FY18 Dividend yield (%) 3.0 2.1 FY17 1. Underlying, see page 3 Financial Report 13 / FY19 Fina
Slide 15: Profit
Profit Underlying EBITDA Underlying NPAT A$M A$M 346 321 202 284 279 160 127 142 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 EBITDA NPAT A$M A$M 227 346 298 293 275 169 158 144 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 EBITDA, Underlying EBITDA and Underlying NPAT are non IFRS measures, 14 / FY19 Financia
Slide 16: Key Changes to Underlying NPAT FY18 to FY19
Key Changes to Underlying NPAT FY18 to FY191 14 8 4 -4 -6 202 -66 -10 A$ M 142 FY18 Gross Profit - Gross Profit - Exploration Corporate & D&A Finance + FX Income tax FY19 Leonora Ops Simberi Ops Royalties expense 1. Underlying NPAT from continuing operations, Non-IFRS measure, refer to corresponding
Slide 17: Segment Profit and Cash Contribution From Operations
Segment Profit and Cash Contribution From Operations Reportable segment profit before tax1 Cash contribution from operations1, 2, 3 A$M A$M 249 255 220 219 244 198 186 162 90 103 78 83 34 70 51 33 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Leonora Simberi Leonora Simberi 1. Results for Leonora include
Slide 18: FY19 Application of Cash
FY19 Application of Cash 648 A$ M -327 -31 -118 -4 3 -61 107 -42 68 Receipts Op costs & Exploration Capex Investments Tax paid Cash surplus Other Dividends Change in finance movements paid cash & costs deposits Note: Cash surplus = cash flow from operating less investing activities 17 / FY19 Financi
Slide 19: Balance Sheet
Balance Sheet Cash balance at 30 June 2019 of A$890M A$M 1000 890 800 480 A$780 M 600 purchase price for Atlantic Gold 400 (net balance $110 M) 410 343 200 137 161 77 0 -1 Undrawn debt facility -226 -200 limit -200 Separate A$112 M -347 (C$100 M) debt facility acquired with -400 Atlantic Gold on FY1
Slide 20: Paying Fully Franked Dividends
Paying Fully Franked Dividends Dividends Paid 3.0% 2.2% • Dividend payments 2.1% Annual recommenced in FY17 Yield1 (%) $0.26 Cumulative • Fully franked final dividend dividend of A$0.04 per (A$) share to be paid 25 $0.18 September 2019 Total • Cumulative dividend payments of A$0.26 Interim $0.06 $0.
Slide 21: Reserves and Resources as at June 2019
Reserves and Resources as at 30 June 2019 Gwalia Reserves Ore Reserves (Moz) 5.9 • Increased by net 174 koz after depletion 1.9 3.9 • Lower average grade 7.5 to 6.4 g/t Au 1.4 1.4 Gwalia Resources 0.3 0.3 0.3 0.3 • Decreased by net 50 koz 1.9 2.1 • Lower average grade 6.5 to 6.3 g/t Au FY18 FY19 Sim
Slide 22: Ore Reserve Changes 2018 to 2019
Ore Reserve Changes 2018 to 2019 • Results of Sorowar drilling to 30 April 2019 included in Resources and Reserves, before the commencement of 30m x 30m infill drilling • An update to Sorowar reserves will be post completion of the infill drilling 315 171 koz 24 36 85 -87 -175 -225 3,923 4,066 June
Slide 23: Mineral Resources Changes 2018 to 2019
Mineral Resources Changes 2018 to 2019 koz 346 407 183 -233 -268 9,162 9,597 June Mining depletion Geology Model Mining depletion Geological Geological June 2018 Update Model Revison Model Revision 2019 (Measured & (Inferred) Indicated) Gwalia Simberi 22 / FY19 Financial Results Presentation Note: F
Slide 24: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Gwalia and Simberi mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements. Atlantic Go
Slide 25: Growth Pipeline
Growth Pipeline KEY Atlantic Gold (Regional) Canada Papua New Guinea Tabar Island Group Atlantic Gold (Au, Au-Cu) (Beaver Dam) Australia Equity Investments Atlantic Gold Back Creek (Cochrane Hill) Peel Mining Atlantic Gold Greater Gwalia (18%) (Fifteen Mile Stream) Catalyst Metals Atlantic Gold Pinj
Slide 26: Exploration | FY20 Guidance - A$20 to A$28 million
Exploration | FY20 Guidance - A$20 to A$28 million A$7 – A$9 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling A$5 – A$7 million Pinjin, Lake Wells and Back Creek • Geophysics/aircore drilling of identified targets A$8 – A$12 million PNG • Simberi Oxides/Sulphides and Porphyry • Newcrest
Slide 27: 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 28: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • Representation of women on the board at 33%1 • Representation of women in leadership roles at 29%2 •
Slide 29: Conclusion
Conclusion • Current operations continue to perform well, with record production and cash flow from Simberi in FY19 • Atlantic Gold acquisition consistent with strategic objectives • 4 cents per share fully franked final dividend, 8 cent total for FY19 • Significant drilling results at Gwalia Deeps
Slide 30: Appendices
Appendices Aircore drilling, Pinjin, Western Australia. Photo by Kiran Hudson 29 / FY19 Financial Results Presentation
Slide 31: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY19 FY191 FY20 St Barbara’s financial year Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June Year to 30 June 2019 Year to
Slide 32: FY19 Financial Summary
FY19 Financial Summary • Solid underlying NPAT, EBITDA and cash flow from operations • A$110 million cash at bank and term deposits (net of A$780 M Atlantic Gold consideration paid in July), and an undrawn A$200 M debt facility1 • A$112 million (C$100 million) debt assumed with Atlantic Gold acquisi
Slide 33: Increasing Cash Balance
Increasing Cash Balance 1000 A$M 890 800 480 600 A$780 M purchase 28 price for 400 25 7 7 Atlantic 410 382 Gold 343 Q1 movement net of: 350 Q2 movement net of: 357 Q3 movement net of: Q4 movement net of: $28 M dividends $46 M tax $19 M growth capex $20 M growth capex 200 $11 M growth capex $13 M gro
Slide 34: FY19 Cash Movement
FY19 Cash Movement 8902 4801 Reconciliation of cash movement A$M 102 186 -33 -6 -60 -31 16 -61 -4 -42 410 343 Cash Jun Leonora Ops GEP Capex Simberi ops Corporate & Corporate Exploration Income tax Investments Dividends Working Cash Jun 2018 other royalties capital & 2019 (inc. capex) financing 1. N
Slide 35: Ore Reserves Summary as at 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 36: Mineral Resources Summary at 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 37: 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 38: 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 39: 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. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Company 38 / FY19