St. Barbara Ltd. · ASX:SBM
St. Barbara — Investor Presentation (October 2011)
35 slides from St. Barbara's investor presentation, Oct 10, 2011
Slide 1: Presentation by Tim Lehany, Managing Director and CEO
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 by Tim Lehany, Managing Director and CEO Attached is a presentation
Slide 2: Proven Performance, Increasing Returns
Proven Performance, Increasing Returns For personal use only Tim Lehany M Managing i Director Di t & CEO EL & C Baillieu October 2011
Slide 3: Forward Statement
Forward Statement For personal use only This ppresentation has been p prepared p by y St Barbara Limited ((“Company”). p y) This p presentation has been p prepared p by y the Company p y based on The material contained in this presentation is for information purposes only. information available to i
Slide 4: One of Australia's largest gold companies
One of Australia’s largest gold companies - profitable, profitable cash generating generating, exploring For personal use only Stock Code SBM (ASX) ASX market capitalisation(2) A$668 million P Proven FY 11 performance f A$69 million illi NPAT FY12 production(1) 320,000-350,000 oz Net Cash(3) A$67 mi
Slide 5: Proven performance - translating reserves into operating cash flows
Proven performance - translating reserves into operating cash flows For personal use only RESERVES PRODUCTION CASH FLOW* +130% +55% +$123M 2756 117 258 166 1200 -6 FY 06 FY 11 FY 06 FY 11 2006 2011 koz koz A$M As at 30 June 2006 and 30 June 2011 Year to 30 June 2006 and 30 June 2011 Year to 30 June
Slide 6: Proven performance - growing NPAT and EPS
Proven performance – growing NPAT and EPS For personal use only NPAT* NPAT EPS* EPS +$50M +$0.12 54 A$0 35** A$0.35** A$0.17 A$0.05 4 FY 06 FY 11 FY 10 FY 11 FY 12 F A$M A$ Year to 30 June 2006 and 30 June 2011 * Underlying EPS * Underlying NPAT ** Factset FY12 Broker Consensus 5 Proven Performance,
Slide 7: Strong balance sheet - provides financial flexibility
Strong balance sheet - provides financial flexibility For personal use only • Strong cash position, Net cash A$M ggrowingg in FY12 100 90 86 • Capex forecast to decrease 80 in FY12 and FY13 70 67 60 • Ready access to debt 50 facilities 40 30 • Significant tax losses 20 available: A$342M gross 10 val
Slide 8: Focus on Managing Costs
Focus on Managing Costs For personal use only A$M Operating Costs 230 7 2 218 220 16 (3) 210 200 196 190 180 170 160 150 FY 10 Mine costs Mine costs Gold royalties Toll FY 11 - volume - price processing revenue 7 Proven Performance, Increasing Returns - October 2011
Slide 9: Proven Operating Capability
For personal use only P Proven O Operating ti Capability C bilit Underground mining expertise 8 Proven Performance, Increasing Returns – October 2011
Slide 10: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only PRODUCTION GUIDANCE RANGE FY12 320 000 – 350,000 320,000 350 000 oz Leonora Operations Southern Cross Operations Ore Reserves: Ore Reserves: 11.2 Mt @ 7.0g/t Au for 2.5 Moz1,2 3.5 Mt @ 2.1g/t Au for 233 koz1 Mi
Slide 11: Leonora Operations - engine room for cash generation
Leonora Operations - engine room for cash generation For personal use only Gwalia Mine Mine life: 12+ months ((AT JUNE 2011)) Expect to achieve sustainable gold Marvel Loch Mine production in FY12 of 175,000 to Processing capacity: 2.2Mtpa 190 000 ounces p 190,000 p.a. a Ore Reserves: Forecast c
Slide 12: Leonora Operations - King of the Hills Mine
Leonora Operations - engine room for cash generation For personal use only King of the Hills Mine Satellite underground project Successfully commissioned May 2011 Opportunity to fully use Gwalia mill capacity p y 55,000 to 60,000 ounces pa Life of 4 ½+ years Minimum gold price of A$1,425
Slide 13: Gwalia reserves increased to 2.0 Moz, open at depth
Gwalia reserves increased to 2.0 Moz, indicative 10 yr mine life, open at depth For personal use only Gold Contained Gwalia Deeps Tonnes Grade Gold Kt g/t Au koz Reserves 6,917 8.9 1,973 Resources 14,450 8.5 3,941 SBM UG Production 1,600Kt @ 6.1g/t Au (317Koz) 12 Proven Performance, Increasing Retur
Slide 14: Gwalia - endowment and grade increase at depth
Gwalia – endowment and grade i increase att depth d th For personal use only oz/vm RESERVES - Ounces per Vertical Metre Grade g/t Au C 7000 20 u C ru 18 rr 6000 e r 16 n e tn 5000 Currently 14 lt y mining at l 1300mbs y 12 m 4000 im Limited n drilling data 10 i in 3000 n i 8 g n g 2000 6 a FY12 ta P
Slide 15: Gwalia - growing production, improving margins and returns
Gwalia - growing production, improving margins and returns as grade increases For personal use only GROWING GWALIA PRODUCTION INCREASING GRADE DRIVES LOWER CASH OPERATING COSTS FOR GWALIA 175-190 1400 9 8.0-8.5 g/t Au 8 1200 6.3 g g/t Au 7 131 1000 6 109 138 765 800 5 109 610-640 600 4 3 400 2 200 1
Slide 16: Long life, high grade reserves
Long life, life high grade reserves For personal use only 5 000 5,000 Reserve & Reserve Grade 7 6 4,000 5 3,000 4 3 2,000 2 1,000 1 0 0 Note: Based on most recently disclosed company filings as at 31 August 2011 15 Proven Performance, Increasing Returns – October 2011
Slide 17: Pathways to Increase Value
For personal use only Pathways to I Increase Value V l 16 Proven Performance, Increasing Returns – October 2011
Slide 18: St Barbara - trading at a deep relative discount
St Barbara - trading t di att a deep d relative l ti discount di t For personal use only EV / FY12 EBITDA1,3 P/NAV4,5 17.8x 3.03x 1.99x 9.4x 8.7x 1 .32x 1 .29x 10x 6.7x 1.0 0x 0.9 9x 4x 1x 0x 7x 0.79xx 0.79xx 6.4 0.75xx 6.1 5.1xx 0.90 1.1 0.87 0.68xx 0.61x 4.4x 0.58x 3.9x 3.6x 3.3x 3.1x 3.1x 3.1x 2.
Slide 19: Investing in exploration for discoveries
Investing in exploration for discoveries For personal use only 515,000 , ounces of Indicated and Inferred Resources added in FY11 at Gwalia below 1,640 mbs for discovery cost of $16 per ounce INCREASING EXPLORATION EXPENDITURE $22M 37,000 m 22 8 $12M Drilling Salaries & Admin FY10 FY11 Land Holding
Slide 20: Drilling targets Australia-wide
Drilling targets Australia Australia-wide wide For personal use only • 4,500+ km2 of prospective land around Australia • 12 targets planned to be drilled in FY12* * subject to results 19 Proven Performance, Increasing Returns - October 2011
Slide 21: Investing exploration funds effectively and strategically
Investing exploration funds effectively and strategically For personal use only Discovery Pipeline Target Drill Drill Resource Delineation Targeting Testing Delineation Western Australia Gwalia Deeps Extension Tower Hill King of the Hills North Copperhead Frasers Marvel Loch near mine
Slide 22: Leveraging value at Leonora Operations in FY12
Leveraging value at Leonora Operations in FY12 For personal use only • Loweringg cost and improving p g productivity p y at Gwalia • Haulage optimisation pre‐ feasibility study due 2H FY12 • Procurement focus already saved A$10M in 2 years • Business improvement program underway • Expansion • Scopin
Slide 23: Actively looking to add value
Actively looking to add value For personal use only • The exploration team evaluates other companies: • Gold G ld discoveries di i • Advanced exploration • Project developments in Australia and SE Asia • Robust investment criteria applied • Key focus on valuing upside potential • Objective is to inc
Slide 24: Value in St Barbara today
Value in St Barbara today For personal use only • FY12 consensus EPS* up 106%** tto $0 $0.35 35 • Gwalia costs to fall and margin lifts with higher grades • Financially strong and strong forecast cash flow • Active drilling of prospective targets Australia wide • Proven performance, increasing retur
Slide 25: Investor Relations Enquiries
Proven Performance Performance, Increasing Returns For personal use only Investor Relations Enquires: Ross Kennedy Executive General Manager Corporate Services E: ross ross.kennedy@stbarbara.com.au kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au
Slide 26: Supporting documents
Supporting documents For personal use only • Board off Directors • Executive Management • Mineral Resources Statement • Ore O Reserves R St Statement t t • Price Protection • Southern Cross Operation • FY12 GGuidance id • Share Register • Competent Persons Statement 25 Proven Performance, Increasing
Slide 27: Board of Directors
Board of Directors SJ Colin Wise Chairman — Non Executive Mr Wiseis an experienced corporate lawyer, consultant and company director with significant expertise in the mining and exploration industry and resources, energy and corporate sectors. He spent 24 years with WMC, including 10 years as Genera
Slide 28: Executive management
Executive management Tim Lehany Managing Director and Chief Executive Officer Tim joined St Barbara in March 2009 and has extensive operating experience over the past 22 years with a number ‘of mining companies, including Newcrest Mining and WMC. He is a mining engineer, having held operating, manag
Slide 29: Mineral Resources Statement as at June 2011
Mineral Resources* Statement as at 30 J June ne 2011 For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Notes Grade Gold Grade Gold Grade Gold Grade Gold Identified Mineral Resources
Slide 30: Ore Reserves Statement as at 30 June 2011
Notes: •Cut‐off grade = 2.5g/t Au. •Data is rounded to thousands of tonnes and thousands of ounces. Differences in totals may occur due to rounding. 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 To
Slide 31: Focus on returns from non-core, higher cost operations
Focus on returns from non-core, higher cost operations For personal use only Hedge Profile Hedge Profile koz King of the Hills A$/oz koz Southern Cross A$/oz 80 1,650 80 1,650 A$1 615 A$1,615 A$1,610 $ 70 1,600 70 1,600 60 60 1,550 1,550 A$1,550 50 50 1,500 1,500 40 40 1,450 1,450 30 A$1,425 30 1,40
Slide 32: Southern Cross Operations generating positive cash flow
Southern Cross Operations generating ti positive iti cashh flow fl For personal use only Marvel Loch Mature Mat re operation generating strong positive cash flows Prospective land for discovery Cash flow protected by options 31 Proven Performance, Increasing Returns – October 2011
Slide 33: FY Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora L Leonora S’ h C S’thn Cross Gold koz 175 190 175‐190 55 60 55‐60 90 100 90‐100 320 350 320‐350 production Cash operating 1,170 $/oz 610‐640 710‐750 ‐ cost ‐1,220 Capex $M 55‐60* 20‐25 10‐15 85‐100 * Includes $12
Slide 34: Strong institutional share register, wide broker coverage
Strong institutional share register, wide id broker b k coverage For personal use only Significant Shareholders1 Broker Research Coverage Argonaut Securities Troy Irvin B illi Baillieu R Ch Ray Chantry t M&G Investment Mgt 18.1% Tradewinds 6.4% Bell Potter Peter Chapman Hunter Hall 6 4% 6.4% Citigro
Slide 35: Competent persons statement
Competent persons statement For personal use only References to Mineral Resources and exploration results presented in this References to Ore Reserves presented in this document have been produced in document have been produced in accordance with The Australasian Code for accordance with The Austral