St. Barbara Ltd. · ASX:SBM
St. Barbara — 2015 Denver Gold Forum
50 slides from St. Barbara's conference presentation, Sep 21, 2015
Slide 1: Presentation to 2015 Denver Gold Forum
ASX Release / 21 September 2015 For personal use only Presentation to 2015 Denver Gold Forum Bob Vassie, Managing Director and CEO, will present to the Denver Gold Forum in Colorado, USA, at 10:15am Denver time (UTC -6 hours) on Wednesday 23 September 2015 (2:15am Melbourne time (UTC +10 hours) on T
Slide 2: 2015 Denver Gold Forum – St Barbara Australia/Pacific Gold Producer
BOB VASSIE, MANAGING DIRECTOR & CEO / 21-23 September 2015 For personal use only 2015 Denver Gold Forum St Barbara – Australia/Pacific Gold Producer
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“the Company”). The material Investors are cautioned not to place undue reliance on such statements. contained in this presentation is for information purposes only. This presentation is not an This p
Slide 4: Contents
Contents ˃ History For personal use only ˃ Overview of operations ˃ Safety ˃ Performance Turnaround ˃ Leonora, Australia ˃ Simberi, Papua New Guinea ˃ Organic Growth Opportunities ˃ Exploration ˃ FY16 Outlook ˃ Conclusion ˃ Appendices 3/ 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 5: St Barbara's history
St Barbara’s history For personal use only 2005 2006 Leonora and Southern Cross Name changed to acquired from Sons of Gwalia St Barbara Ltd administrators & Meekatharra sold 2008 Gwalia commissioned 2004 Change in Board and 2011 Management King of the Hills commissioned Gold production, Meekatharra,
Slide 6: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$426 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 344 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,038/oz ˃ A
Slide 7: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate2 Safety performance 12.5 ˃ TRIFR1 of 5.0 at 30 June 2015 ˃ Continued good results for mixed 9.0 jurisdiction underground / open pit combination ˃ TRIFR has plateaued due 6.0 to a number of low 4.9 4.7 4.9 5.0 severity
Slide 8: Share Price Reflects Turnaround
Share Price Reflects Turnaround ASX:SBM For personal use only A$1.00 A$0.90 A$0.80 A$0.70 A$0.60 A$0.50 A$0.40 A$0.30 A$0.20 A$0.10 A$0.00 30 Jun 14 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 Source: IRESS, close price, 30 Jun 2014 to 18 Sep 2015 7/ 2015 DENVER GOLD FORUM / 21-23 September 20
Slide 9: St Barbara since Denver Gold 2014
St Barbara since Denver Gold 2014 FY14 Change FY15 A$M FY14 to FY15, A$M A$M For personal use only NPAT1 (501) +541 turnaround 40 (2H FY15 A$60M) Underlying NPAT1 (34) +76 turnaround 42 (2H FY15 A$56M) Cash flows from 20 465% 113 (2H FY15 A$91M) operating activities A$/oz A$/oz AISC3 1,206 17% 1,
Slide 10: We did what we said we'd do
We did what we said we’d do Objective Result For personal use only Guidance Gwalia – production and AISC1 Exceeded Simberi – production and AISC1 Achieved – 100 koz p.a. run rate Achieved – cash flow positive by June Quarter2 Exceeded Corporate Cost reduction Achieved Board renewal Achieved Gold Rid
Slide 11: Cash, debt, hedging at June 2015
Cash, debt, hedging at 30 June 2015 June 2015 June 2014 For personal use only A$M A$M Cash balance 1 77 79 Interest bearing debt ˃ US Senior Secured Notes US$196 M (2014: $250M) and Red Kite US$75M (2014: US$75M) 342 330 ˃ Lease liabilities 5 10 ˃ Total 347 340 ˃ US Senior Secured Notes ˃ US$250 M i
Slide 12: St Barbara vs ASX and TSX peers – AISC, Production and EV
Q4 June 2015 Snapshot: St Barbara vs ASX and TSX peers – AISC, Production and Enterprise Value 1,600 For personal use only Bubble Size = Production B2Gold 1,400 1,200 Evolution (Q4 June 2015, excl. Cowal & La Mancha) Northern Star Enterprise Value US M$ 1,000 800 Iamgold 600 Oceana Gold Primero St B
Slide 13: Leonora, Western Australia
Leonora, Western Australia For personal use only Gwalia Processing plant Gwalia Gwalia –– Underground Underground mining mining Truck Truck Gwalia – New Absorption Chiller Plant Underground drilling 12 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 14: Gwalia - one of Australia's most historic mines
Gwalia- one of Australia’s most historic mines For personal use only 1896 - Welsh syndicate discovers the Gwalia Reef. 1897 - Herbert Hoover buys mine for Bewick Moreing 1929 - Hoover becomes 31st President of USA 1963 - Mine closes 4 days before Christmas having produced more than 2.5 Moz over 67 y
Slide 15: Gwalia: production increasing year on year
Gwalia: production increasing year on year ˃ FY15 AISC1 A$841/oz For personal use only ˃ Reserves at 30 June 20152: 250 5.3 Mt @ 9.4 g/t Au for 1.6 Moz 248 Range 220 ˃ Mine life based on Ore 214 Reserves2 ≈7 years 185 183 ˃ Improvement projects 131 ˃ increase production rate 109 ˃ prepare for mining
Slide 16: Developments at Gwalia in FY15
Developments at Gwalia in FY15 ˃ New absorption chiller plant For personal use only utilises waste heat from power plant ˃ Deep HV Cable drop to 1,400 mbs ˃ New mining techniques improve production and efficiency Ore Pass system: increases efficiency of trucking and bogging Underground waste storage
Slide 17: Simberi
Simberi For personal use only 16 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 18: Simberi: turnaround evident in FY15
Simberi: turnaround evident in FY15 For personal use only AISC (A$/oz) 2,205 June Quarter: ˃ Record production for Q4 of 1,619 [2] 27,137 oz at AISC1 of A$1,149/oz 1,310 1,338 1,149 ˃ Gold production for the quarter comfortably exceeded the 100,000 oz p.a. target run rate, including 10,005 27.1 25.0
Slide 19: Simberi Ore Delivery System
Simberi Ore Delivery System Mobile Crusher Breaker For personal use only RopeCon Station RopeCon SAG Mill Feed Conveyor 18 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 20: Opportunities within Portfolio
Opportunities within Portfolio Gwalia deep drilling Simberi sulphide For personal use only 19 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 21: Organic growth: Gwalia Deep Drilling Program
Organic growth: Gwalia Deep Drilling Program “This is an important input into the planned shaft study.”1 For personal use only > Drilling has been completed on a third daughter hole from the original parent hole (GWDD16) > Drill hole intersected three significant mineralised veins, interpreted to re
Slide 22: Exploration: Gwalia West Lode – Long Section
Exploration: Gwalia West Lode – Long Section For personal use only > Ongoing exploration of an alternative mining area, ‘West Lode’ has revealed high grade intercepts and led to an improved Resource > It is anticipated that the modelling of West Lode, incorporating the results of recent drilling, wi
Slide 23: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide For personal use only Simberi – Sorowar pit – 13 Aug 2015 (oxides ores being mined, exposing the sulphide wall behind.) ˃ Sulphide mining at Simberi potentially extends life (15 years +) based on existing reserve, open at depth1 ˃ Simberi oxide mine life ~4 years1 ˃
Slide 24: Exploration – Focus on near mine targets
Exploration – Focus on near mine targets For personal use only Exploration > FY16F spend of A$10 million > 55% Western Australia > 45% Papua New Guinea > The FY16 exploration program will largely focus on potential near-mine ore sources at Gwalia and Simberi. > The aim for FY16 is to extend the life
Slide 25: Exploration: Simberi, Centenary, Pinjin projects
Exploration Simberi, Centenary, Pinjin projects are ongoing For personal use only Centenary – significant base metal and nickel targets being drilled. Simberi Is. Group – emphasis on near mine oxide targets to extend oxide mine life. Pinjin – several gold in bedrock On nearby Big Tabar Island, targe
Slide 26: FY16 Guidance
FY16 Guidance Gwalia For personal use only > FY16 guidance – > Production: 220,000 to 250,000 ounces > AISC1 : A$875/oz – A$950/oz > Capex: A$30-$35m > Ore pass system currently 30% in place, will grow to 100% over the next 18 months Simberi > FY16 guidance > Production: 90,000 to 110,000 ounces > A
Slide 27: Conclusion: The new St Barbara in FY16
Conclusion: The new St Barbara in FY16 ˃ Excess cash from operations to be applied to further reduce For personal use only debt in advance of schedule ˃ A$91 million cash flow from operations in 2H FY15 ˃ US$54M repaid June 2015, additional US$3M repaid August ˃ Progress opportunities within portfol
Slide 28: Appendices
For personal use only Appendices Simberi SAG mill 27 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 29: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance For personal use only Consolidated FY15 FY15 FY15 FY15 FY15 FY15 [3] FY16 Production Gwalia oz 45,391 68,589 76,954 57,208 248,142 235 – 240 koz 220 - 250 koz King of the Hills oz 1
Slide 30: FY15 Results: Operational Highlights
FY15 Results: Operational Highlights AISC (Consolidated) (A$/oz) For personal use only 1,344 1,042 FY15 Highlights 979 FY15 AISC A$1,007/oz 798 ˃ Record production for: ˃ Company 377 koz Production (koz) 98 ˃ Gwalia 248 koz 98 99 ˃ Simberi 80 koz 22 17 12 27 ˃ Simberi production exceeded 91 12 100 k
Slide 31: Gwalia: St Barbara's cornerstone mine
Gwalia: St Barbara’s cornerstone mine AISC For personal use only (A$/oz) 1,086 June Quarter: 865 883 860 ˃ Record production of 248 koz for FY15 FY15 AISC A$841/oz 645 with 57,208 oz produced in Q4 ˃ Mined ore grade of 8.6 g/t Au higher 77.0 than predicted due to minimised 68.6 dilution and high gra
Slide 32: New developments at Gwalia
New developments at Gwalia New absorption chiller plant: For personal use only ˃ First utilisation of this technology in mining globally ˃ Cost A$5.5 million, projected savings in power usage- $2.7 million p.a. Deep HV Cable drop ˃ 1400m vertical HV cable drop – longest in southern hemisphere. ˃ Dup
Slide 33: Gwalia – targeting higher production
Gwalia – targeting higher production Waste rock disposal Northern abutment stopes For personal use only below ground – three strategies Concurrent Stope filling Redundant level development 32 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 34: Leonora – targeting higher production
Leonora – targeting higher production Ore Pass system For personal use only 33 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 35: Gwalia – Schematic plan of Mine Sequence
Gwalia – Schematic plan of Mine Sequence For personal use only 34 / 2015 DENVER GOLD FORUM / 21-23 September 2015
Slide 36: Ore Reserves & Mineral Resources at June 2015
Ore Reserves & Mineral Resources at 30 June 2015 ˃ Ore Reserves & Resources reduced via production depletion and For personal use only sale of Gold Ridge Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.16 Leonora, 9.22 WA 47% Simberi, 5.16 PNG 4.02 53% FY 14 FY 15 Mineral Resources Ore R
Slide 37: FY15 Financials
FY15 Financials 2H FY15 FY15 FY14 For personal use only A$M A$M A$M Average gold price realised A$1,468/oz A$1,439/oz A$1,410/oz Result ˃ Statutory profit after tax 60 40 (501) ˃ Significant items 4 (3) (467) ˃ Underlying EBITDA 1 135 186 1152 ˃ Underlying EBIT 1 87 101 192 ˃ Underlying net profit/(
Slide 38: A game of two halves
“A game of two halves” ˃ Leonora (Western Australian) For personal use only ˃ Reliable, profitable performance in 2014 ˃ Second half of FY15 significantly improved production and profitability ˃ Simberi (Papua New Guinea) ˃ Operating loss in FY14 ˃ Modest profit in FY15 overall, second half profit a
Slide 39: Simberi – Improvement in all aspects
Simberi – Improvement in all aspects Tons Milled and Recovery FY14 & FY15 (kt / Qtr) FY14 & FY15 Ore and Waste mined (kt) 1,882 900 100% 2000 86% 86% (total displayed) For personal use only 800 83% 83% 90% 1800 79% 78% 1,618 77% 78% 700 768 80% 1600 1,448 1,405 750 1,389 70% 1400 1,250 600 616 60% 1
Slide 40: A$ margin increases as exchange rate decreases
A$ margin increases as exchange rate decreases FY15 A$ and US$ St Barbara AISC Margin For personal use only $/oz 1,700 (using St Barbara FY15 AISC of A$1,007/oz) 1,600 AUD$ Gold price/oz 1,500 1,400 1,300 A$ margin Gold Shaded Area = A$ spot – AISC Margin expanding 1,200 1,100 1,000 St Barbara A$ AI
Slide 41: USD Gold, AUD Gold, SBM – July 2014 to August 2015
USD Gold, AUD Gold, SBM – July 2014 to August 2015 $/oz US$ Gold, A$ Gold, A$/US$, SBM AISC For personal use only A$/US$ 1,800 $1.00 AUD/USD $0.95 1,600 $0.90 A$/oz $0.85 1,400 $0.80 1,200 $0.75 US$/oz $0.70 1,000 SBM A$ AISC/oz $0.65 FY16 F AISC $0.60 800 SBM US$ AISC/oz (Midpoint) $0.55 600 $0.50
Slide 42: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutions 70% Australia, 36% Private, 12% UK, 22% USA, 15% Unallocated/ Europe, 5% not analysed, Asia, 2% 18% Other / not analysed, 20% Analysis and geographic spread of Top 100 Shareholders as at 14 Aug 2015
Slide 43: Significant shareholders & wide broker coverage
Significant shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Hunter Hall 15% Canaccord Reg Spencer M&G Investment Mgt 13% Deutsche Bank Matthew Hocking Franklin Resources Inc 7% Macquarie Ben Crowley Petra Capital David Cotterell Instituti
Slide 44: Board of Directors
Board of Directors For personal use only Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed February 2014 Appointed July 2014 Mr Netscher was the Managing Director of Mr Vassie is a mining engineer with 30 Gindalbie Metals Limited from 2011 to 2013, years internation
Slide 45: Executive Leadership Team
Executive Leadership Team Bob Vassie For personal use only Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 yea
Slide 46: Mineral Resources Summary as at June 2015
Mineral Resources Summary as at 30 June 2015 For personal use only Project and Measured Indicated Inferred Total Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) g/t (k) g/t Gwalia (WA) 4,781 7.2 1,112 6,112 9.3 1,833 2,036 5.5 359 12,929 7.9 3,304 King of the Hills (WA)5
Slide 47: Ore Reserves Summary as at June 2015
Ore Reserves Summary as at 30 June 2015 For personal use only Proved Probable Total Project and Au Au Tonnes (k) koz Tonnes (k) Au g/t koz Tonnes (k) koz g/t g/t Gwalia (WA) 2,100 9.1 614 3,190 9.6 980 5,290 9.4 1,594 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 3,800 1.5 17
Slide 48: Competent Persons Statement
Competent Persons Statement For personal use only 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 Musta
Slide 49: 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
Slide 50: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary E: info@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: SBM 49 / 2015 DENVER GOLD FORUM / 21-23 September 2015