St. Barbara Ltd. · ASX:SBM
St. Barbara — Q1 FY2014 Earnings Presentation
32 slides from St. Barbara's earnings presentation, Oct 31, 2013
Slide 1: Presentation on the September 2013 Quarter and audio webcast
ASX Release / 31 October 2013 For personal use only Presentation on the September 2013 Quarter and audio webcast Tim Lehany, Managing Director & CEO, will brief analysts and institutional investors on the September 2013 Quarterly Report at 12:00 noon Australian Eastern Daylight Time (UTC + 11 hours)
Slide 2: September 2013 Quarterly Report
TIM LEHANY, MANAGING DIRECTOR & CEO / 31 October 2013 For personal use only September 2013 Quarterly Report
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, s
Slide 4: Diversified Australia-Pacific gold producer
Diversified Australia-Pacific gold producer - established operations in three countries For personal use only Simberi PNG Simberi SI ˃ Low strip open pit mine ˃ Near mine targets for Gold Ridge exploration Leonora ˃ Two underground mines: ˃ Gwalia Mine FY14F production: Australia 180 - 195 koz Gold
Slide 5: September 2013 Q1 Key Points
September 2013 Q1 Key Points ˃ Q1 gold production was 96,739 oz (Q4 June 13 - 107,363 oz) For personal use only ˃ Australian Operations performed strongly ˃ Gold Ridge performed in line with expectations ˃ Simberi did not meet performance targets – underperformance being addressed ˃ Delays in commis
Slide 6: Consolidated Gold Production
Consolidated Gold Production Second highest gold production For personal use only since Allied Gold acquired 107 97 ˃ Gwalia and King of the Hills 17 93 performed strongly 87 15 11 78 13 14 ˃ Gold Ridge as expected 4 13 12 4 13 12 15 17 ˃ Simberi disappointed due to 19 poor operating performance and
Slide 7: Gwalia: St Barbara's cornerstone mine
Gwalia: St Barbara’s cornerstone mine For personal use only Gold Production Q1 Key Points 64.3 ˃ Strong gold production, although grade mined lower at 7.7 g/t Au (June qtr 9.0 g/t Au) 53.2 ˃ High tonnages of mined ore – 43.7 40.8 224 kt, expected to drop to 180 kt per quarter for balance of 34.3 FY1
Slide 8: Gwalia: Grade and costs
Gwalia: Grade and costs For personal use only Mined Grade & Cash Costs Grade 9.0 ˃ Q1 mined grade 7.7 g/t Au, includes lower grade ore sources 8.2 7.7 7.7 ˃ Minor dilution issues now g/t Au addressed ˃ Remainder FY14 mined grade expected above 8.0 g/t Au ˃ Majority of ore sourced from South West Bra
Slide 9: King of the Hills: Delivering to plan
King of the Hills: Delivering to plan For personal use only Gold Production Q1 Key Points ˃ Optimisation of room and pillar 16.9 17.2 15.9 method has potential for savings ˃ Aim is to increase effective grade 12.7 12.9 ˃ Est. 6 koz of gold contained in stockpiles at 30 Sep 2013 ˃ September quarter c
Slide 10: Gold Ridge: Progressing to plan
Gold Ridge: Progressing to plan For personal use only Gold Production Q1 Key Points ˃ Gold production as expected 17.2 ˃ Higher total material movement 1.4 Mt (June Q 1.2 Mt) to set up 14.5 14.1 14.0 Kupers and Dawson Pits ˃ Continuing improvements in 10.7 processing plant – but ore mix unfavourable
Slide 11: Simberi: Poor performance being addressed
Simberi: Poor performance being addressed For personal use only Gold Production Q1 Key Points ˃ Production impacted by poor 15.1 equipment availability and other factors 13.7 ˃ External consultants assisting 13.3 12.9 with productivity improvements ˃ Ore contained higher sulphide 11.7 levels ˃ Cash
Slide 12: Simberi oxide plant expansion
Simberi oxide plant expansion ˃ Pre- commissioning independent integrity audit identified issues with For personal use only electrical circuit ˃ Completion works also required in tailings thickener and detox unit ˃ FY14 capex guidance of A$20-A$25 million anticipated to increase to A$28-A$33 million
Slide 13: Simberi productivity review
Simberi productivity review ˃ Virtual Consulting International (VCI) engaged in August 2013 to review For personal use only operational productivity ˃ VCI working with Management to implement a number of productivity recommendations ˃ Includes an immediate and significant reduction in Simberi’s cost
Slide 14: Discovery & Growth
For personal use only Discovery & Growth 13 / September 2013 Quarterly Report
Slide 15: Exploration - Simberi, Tatau and Tabar Islands, PNG
Exploration - Simberi, Tatau and Tabar Islands, PNG For personal use only Simberi Island ˃ Exploration focused on identifying near mine, higher grade, oxide resources ˃ Further encouraging gold results2 from trenching and drilling oxide mineralisation at Botlu and Pigicow on near-mine prospects incl
Slide 16: Exploration - Gold Ridge, Solomon Islands
Exploration - Gold Ridge, Solomon Islands Extending near mine resources For personal use only Guadalcanal Island ˃ On-going drilling on the Charivunga zone at Gold Ridge mine, producing further encouraging gold results2 including DGD0111 : ˃ 15m @ 1.4 g/t Au from 14m ˃ 20m @ 2.0 g/t Au from 128m ˃ 6
Slide 17: Exploration – King of the Hills, Western Australia
Exploration – King of the Hills, Western Australia Extending near mine resources For personal use only King of the Hills ˃ Early drilling results2 testing for lode extensions to the north have been encouraging with results including1: ˃ 3m @ 117.4 g/t Au from 72m ˃ 7m @ 12.0 g/t Au from 111m ˃ 7m @
Slide 18: Finance
Finance At 30 September 2013 1: For personal use only ˃ A$106 million cash ˃ A$331 million interest bearing liabilities – inc. Senior Secured Notes + Red Kite gold loan A$47 million Senior Secured Note issue for US$250 million ˃ Maturity March 2018 ˃ Coupon 8.875% p.a. ˃ No performance covenants or
Slide 19: Conclusion
Conclusion ˃ Australian operations performing well and maintain guidance For personal use only ˃ Gold Ridge volumes will increase and unit costs decrease - guidance maintained ˃ Simberi undergoing restructuring based on external review with key milestones well defined ˃ Simberi oxide plant expansion
Slide 20: Appendices
For personal use only Appendices 19 / September 2013 Quarterly Report
Slide 21: FY14 Guidance
FY14 Guidance For personal use only Gold production Cash operating cost1 Capex koz A$/oz A$M Gwalia 180 – 195 720 – 750 45 – 50 King of the Hills 55 – 60 1,040 – 1,090 12 – 15 Gold Ridge 75 – 90 1,100 – 1,190 14 – 18 Simberi Simberi guidance update to follow commissioning of oxide plant expansion –
Slide 22: FY14 indicative quarterly guidance production profile
FY14 indicative quarterly guidance production profile For personal use only 27% ˃ Consolidated production is 25% 25% 23% 23% anticipated to increase gradually throughout FY14 ˃ September 2013 quarter production 0% 0% 0% represents 23% of FY14 production FY 14 FY 14 FY 14 FY 14 guidance mid-point pub
Slide 23: Consolidated Production Summary
Consolidated Production Summary For personal use only Q3 Mar Qtr Q4 Jun Qtr Q1 Sep Qtr FY13 FY13 FY14 Gwalia oz 40,772 64,307 53,230 King of the Hills oz 16,940 12,893 17,249 Production Gold Ridge oz 13,984 17,236 14,519 Simberi oz 15,122 12,927 11,741 Consolidated oz 86,818 107,363 96,739 Gwalia g/
Slide 24: Gwalia Production Summary
Gwalia Production Summary Dec Qtr Mar Qtr Jun Qtr Sep Qtr FY13 FY13 FY13 FY14 For personal use only Underground ore mined kt 178 157 224 224 Grade g/t 7.7 8.2 9.0 7.7 Low grade ore & stockpiles kt 51 12 26 16 Grade g/t 1.1 1.6 2.5 2.2 Ore milled kt 230 171 247 231 Grade g/t 6.2 7.7 8.4 7.5 Recovery
Slide 25: King of the Hills Production Summary
King of the Hills Production Summary For personal use only Dec Qtr Mar Qtr Jun Qtr Sep Qtr FY13 FY13 FY13 FY14 Underground ore mined kt 99 130 127 135 Grade g/t 4.7 4.1 4.4 4.4 Ore milled kt 91 132 98 117 Grade g/t 4.6 4.2 4.3 4.8 Recovery % 95 95 95 95 Gold production oz 12,709 16,940 12,893 17,249
Slide 26: Gold Ridge Production Summary
Gold Ridge Production Summary For personal use only Dec Qtr Mar Qtr Jun Qtr Sep Qtr FY13 FY13 FY13 FY14 Ore mined kt 451 470 501 431 Grade g/t 1.3 1.5 1.7 1.6 Ore milled kt 373 452 471 476 Grade g/t 1.4 1.6 1.7 1.6 Recovery % 65 61 67 60 Gold production oz 10,654 13,984 17,236 14,519 Cash Operating
Slide 27: Simberi Production Summary
Simberi Production Summary For personal use only Dec Qtr Mar Qtr Jun Qtr Sep Qtr FY13 FY13 FY13 FY14 Ore mined kt 592 621 561 513 Grade g/t 1.0 1.0 1.0 1.0 Ore milled kt 432 485 414 459 Grade g/t 1.1 1.1 1.1 0.9 Recovery % 89 89 87 83 Gold production oz 13,291 15,122 12,927 11,471 Cash Operating Cos
Slide 28: All-In Sustaining Cost
All-In Sustaining Cost September Quarter FY14 Gwalia King Simberi Gold Ridge Group For personal use only of the Hills Total Cash Operating Costs $/oz 754 902 1,874 1,991 1,102 less operating development 2 $/oz (149) (210) - - (120) Adjusted Cash Operating Costs $/oz 605 692 1,874 1,991 982 Corporate
Slide 29: Start safe, stay safe
Start safe, stay safe For personal use only Safety: Total Recordable Injury Frequency Rate 14.8 12.5 11.1 ˃ Lowest annual TRIFR since the 9.0 measure was first adopted by St Barbara in 2009 6.0 ˃ TRIFR includes Pacific Operations 4.7 from September 2012 FY 09 FY 10 FY 11 FY 12 FY 13 Q1 FY14 28 / Sep
Slide 30: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 29 / September 2013 Quarterly Report
Slide 31: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results is based on information compiled by Mr Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Uttley is a full-time emplo
Slide 32: Non-IFRS Measures
Non-IFRS Measures For personal use only 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 ass