St. Barbara Ltd. · ASX:SBM
St. Barbara — FY2021 Earnings Presentation
53 slides from St. Barbara's earnings presentation, Aug 26, 2021
Slide 1: Presentation on FY21 Financial Report and video webcast
26 August 2021 Presentation on FY21 Financial Report and video webcast Mr Craig Jetson, Managing Director & CEO, and Mr Garth Campbell-Cowan, Chief Financial Officer, will lead a briefing on St Barbara’s FY21 Financial Results at 11:00 am Australian Eastern Standard Time (UTC + 10 hours) on Thursday
Slide 2: FY21 Financial Results Presentation
FY21 Financial Results Presentation Craig Jetson Managing Director and CEO Garth Campbell-Cowan Chief Financial Officer 26 August 2021
Slide 3: Disclaimer
2 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 Com
Slide 4: Acknowledgement of Country
3 Acknowledgement of Country We at St Barbara acknowledge the First Nations people of the ancestral lands on which we operate in Australia, Canada and Papua New Guinea. We pay our respects to all First Nations people, and to Elders past, present, and emerging. We recognise the unique cultural herita
Slide 5: Safety always
4 Safety always TOTAL RECORDABLE INJURY FREQUNCY RATE (TRIFR)1 5.0 3.9 Safety 3.0 Always 2.1 Zero harm is always our target. Zero harm 1.2 to all people as we responsibly operate our assets to their full potential. This focus FY17 FY18 FY19 FY20 FY21 on safety guides everything we do. 1. Total Recor
Slide 6: Our sustainability framework
5 Our sustainability framework
Slide 7: Key Achievements FY21
6 Key Achievements FY21 • Production of 328 koz at AISC of A$1,616 per ounce • Underlying profit1 of A$81 M • Net operational cash contribution1 of A$208 M • Leonora Province Plan delivers ~2 Moz of Mineral Resources • Final dividend of A$0.02 taking total dividends for FY21 to A$0.06 • Delivered A$
Slide 8: Ore Reserves increase greater than depletion
7 Ore Reserves increase greater than depletion koz 222 400 5 (161) (104) (89) (34) 6,244 6,005 June Leonora Gold Price Gwalia Atlantic Simberi Simberi Stockpile June 2020 Reserve depletion depletion depletion Reserve Additions 2021 Update Update
Slide 9: Leonora Province Plan delivers ~2 Moz of Mineral Resources
8 Leonora Province Plan delivers ~2 Moz of Mineral Resources koz 602 764 618 (191) (136) (126) 13,087 11,555 June Gwalia Deeps Gwalia Open Pit Harbour Lights Leonora Atlantic Simberi June 2020 Resource depletion depletion depletion 2021 update
Slide 10: Building Brilliance our pathway to growing operating life
9 Building Brilliance our pathway to growing operating life Uplift 3: Grow through Uplift 2: Execute brownfield acquisitions and exploration 18 months – 3 years Uplift 1: Deliver Building expansion projects Acquire assets with a scalable Brilliance in operations and production outlook and capture De
Slide 11: Consolidated Performance
10 Consolidated Performance AISC1 (A$/oz) FY21 Consolidated Performance 1,711 1,517 1,649 1,623 FY20 FY21 1,421 1,364 1,405 1,301 Production koz 382 328 AISC A$/oz 1,369 1,616 GOLD PRODUCTION Sustaining capital A$M 73 91 (koz) Growth capital A$M 60 33 109 94 92 Net Operating Cashflow A$M 273 208 88
Slide 12: Summary of Financial Results
Summary of Financial Results
Slide 13: Solid operational and financial performance: FY21 Key Financial Metrics
12 Solid operational and financial performance FY21 Key Financial Metrics Cash flow from Underlying EBITDA1 Underlying NPAT1 (A$ M) (A$ M) operating activities (A$ M) 300 81 227 Down 12% since FY20 Down 26% since FY20 Down 19% since FY20 EBITDA Margin1 EPS Dividend (%) (Underlying, A$ cents ) (A$ ce
Slide 14: Maintained shareholder returns since dividends recommenced
13 Maintained shareholder returns since dividends recommenced Dividends per ounce produced (A$/oz)1 Dividends paid (cps) 14 45 40 40 12 35 34 $154 10 $149 30 $135 $129 8 8 26 25 6 4 4 20 18 $81 2 15 4 6 10 2 6 4 4 4 4 5 0 0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Interim Final Cumulative d
Slide 15: Non-cash impairment of Atlantic Operations
14 Non-cash impairment of Atlantic Operations • Non-cash impairment post tax of $248 M relating to carrying value of the Atlantic Operations • The majority of the impairment relates to delays in permitting for Beaver Dam, Fifteen Mile Stream and Cochrane Hill • Overall reduction in carrying value al
Slide 16: Movement in Underlying NPAT
15 Movement in Underlying NPAT A$ M 108 7 (27) 30 81 (21) 17 1 (31) (3) FY20 Profit - Profit - Profit - Exploration Corporate & Finance + FX Income tax Other FY20 Leonora Ops Simberi Ops Atlantic Ops Corp expense Royalties
Slide 17: FY21 cash movement
16 FY21 cash movement A$ M 111 (32) 52 (34) (37) 79 (22) (36) (45) 406 (62) (27) (220) 133 Cash Leonora Simberi Atlantic Growth Exploration Corporate Income Net Dividends MRRI Other Debt Cash Jun 2020 Ops Ops Ops capex & Corp tax financing acquisition repayment Jun 2021 Royalties costs
Slide 18: Balance sheet
17 Balance sheet1 A$ M Cash Debt Entitlement Offer 480 343 410 406 161 133 -1 -84 -307 FY17 FY18 FY19 FY20 FY21 1. Debt excludes lease liabilities
Slide 19: Leonora Operations
Leonora Operations Province Plan adding ~2 Moz on pathway to greater than 10yrs
Slide 20: Leonora Operations – turning around operational performance
Leonora Operations – turning 19 around operational performance AISC (A$/oz) 2,592 FY21 Operational Performance 1,471 1,556 1,389 1,573 1,555 1,663 FY20 FY21 MINED GRADE (g/t Au) Production koz 171 153 AISC A$/oz 1,485 1,744 7.8 8.0 8.1 8.1 8.3 8.0 7.0 6.5 Milled grade g/t Au 7.1 6.6 Reserve grade 5.
Slide 21: Uplift 1 – Debottlenecking Gwalia mine
20 Uplift 1 – Debottlenecking Gwalia mine Production drilling (metres/day) 9% improvement 500 400 300 200 100 0 Q1 Q2 Q3 Q4 FY22 FY22 Target FY21 Actual Automated long hole drill rig at Gwalia mine
Slide 22: Uplift 1 – Debottlenecking Gwalia mine
21 Uplift 1 – Debottlenecking Gwalia mine Total material moved (kt/day) 44% improvement 4.0 3.0 2.0 1.0 - Q1 Q2 Q3 Q4 Q1 FY21 Actual FY22 Target Development Fronts (Nos.) 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Loader at Gwalia mine FY21 Actual FY22 Target
Slide 23: Uplift 2 – Gwalia resource potential
22 Uplift 2 – Gwalia resource potential Underground upside • Underground upside with potential between 400 metres below surface and 1,100 metres below surface for additional Mineral Resources to be defined
Slide 24: Uplift 2 – Tower Hill, Harbour Lights and Gwalia near mine
23 Uplift 2 – Tower Hill, Harbour Lights and Gwalia near mine Aerial view Tower Hill and Harbour Lights
Slide 25: Uplift 3 – Exploring all options to add tonnes to the mill
24 Uplift 3 – Exploring all options to add tonnes to the mill Tolling Joint ventures Acquisitions Ore purchases Ore purchases from Linden Gold Alliance’s Second Fortune Mine
Slide 26: Uplift 3 – Leonora regional targets
25 Uplift 3 – Leonora regional targets Exploration drill rig at Jasper Region
Slide 27: Filling the mill
26 Filling the mill +1.7 0.3 1.4 1.4 Mtpa 1.3 0.3 Current 0.4 mill Maximise the value from current 0.2 capacity operations through productivity improvements and cost reduction 0.7 0.1 0.9 0.6 FY21 FY22 Uplift 1 ~FY23 Uplift 2 ~FY25 Actuals Guidance Outlook Gwalia underground Leonora province total B
Slide 28: Atlantic Operations
Atlantic Operations Satellite deposits to add operating life of greater than 10 years
Slide 29: Atlantic Operations
28 Atlantic Operations AISC (A$/oz) 988 1,008 999 1,128 1,011 FY21 Operational Performance 823 951 MILLED GRADE (g/t Au) FY20 FY21 Production koz 107 101 1.51 1.41 1.29 1.29 1.24 1.24 A$/oz 928 1,027 0.96 1.11 AISC Reserve grade 1.1 Milled grade g/t Au 1.36 1.15 g/t Au 30 June 2021 PRODUCTION Sustai
Slide 30: Uplift 1 – Improving plant performance
29 Uplift 1 – Improving plant performance Mill throughput (tonnes per hour) 22% improvement 380 360 340 320 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20 FY21 Actual FY21 target Trommel and spray bars at Touquoy processing plant Gravity screen at Touquoy processing plant
Slide 31: Uplift 1 – Improving plant performance
30 Uplift 1 – Improving plant performance Mill availability (%) 14% improvement 100% 95% 90% 85% 80% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20 FY21 Actual FY21 target Recovery (%) 95% 90% 85% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20 FY21 Downcomer installation in leach tanks Actual FY21 target at Touquoy processing plant
Slide 32: Uplift 2 – Projects overview – Beaver Dam & Fifteen Mile Stream
31 Uplift 2 – Projects overview – Beaver Dam & Fifteen Mile Stream
Slide 33: Uplift 3 – Exploration in Nova Scotia
32 Uplift 3 – Exploration in Nova Scotia
Slide 34: Simberi Operations
Simberi Operations Evolving to sulphide processing to achieve greater than 10 years of operating life
Slide 35: Simberi Operations
34 Simberi Operations AISC (A$/oz) 2,964 FY21 Operational Performance 2,426 1,851 2,070 1,629 1,467 1,678 FY20 FY21 MILLED GRADE koz 104 74 (g/t Au) Production 1.31 1.3 1.3 1.3 1.19 1.08 1.12 1.12 A$/oz 1,631 2,162 AISC Reserve grade 1.2 g/t Au 30 June 2020 Milled grade g/t Au 1.17 1.25 PRODUCTION (
Slide 36: Uplift 1 – Maximise value from oxides
35 Uplift 1 – Maximise value from oxides Oxide exploration drill rig at Simberi
Slide 37: Uplift 2 – Sulphide project – FY24 and beyond
36 Uplift 2 – Sulphide project – FY24 and beyond Feasibility Study highlights: Forecast Gold Production (koz) • Initial capital expenditure of US$170 M • Payback period of ~3 years • Life of mine averages • Gold production of ~160 koz per annum • AISC of US$896 per ounce • NPV of US$220 M (post-tax)
Slide 38: Uplift 3 – Exploration on Tabar Islands Group
37 Uplift 3 – Exploration on Tabar Islands Group Exploration drilling on Big Tabar Island
Slide 39: Strategic Outline
Strategic Outline
Slide 40: A growing gold company with a global outlook
39 A growing gold company with a global outlook 3 operations with pathway to greater than 10 years of operating life
Slide 41: Supplementary slides
Supplementary slides
Slide 42: FY21 Financial Summary
41 FY21 Financial Summary • Solid NPAT, EBITDA and cash flow from operations • A$133 million cash at bank • A$84 million debt1 • Fully franked final dividend of 2 cents per share (6 cents total for FY21) FY21 FY20 Change EBITDA (excluding significant items)2 A$M 300 339 (12%) EBITDA margin2 % 40 41
Slide 43: FY22 Guidance
42 FY22 Guidance Operation Production AISC Capex (koz) (A$/oz) ($AM) Sustaining Growth Atlantic Operations 65 – 85 1,305 – 1,5151 15 – 20 30 – 40 Leonora Operations 180 – 200 1,605 – 1,720 65 – 75 15 – 20 Simberi Operations 60 – 70 2,465 – 2,6502 15 – 20 25 – 35 Consolidated 305 – 355 1,710 – 1,860
Slide 44: Consolidated production, costs and guidance summary
43 Consolidated production, costs and guidance summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY20 FY21 FY21 FY21 FY21 FY21 FY21 FY22 St Barbara’s financial year is Year to Qtr to Qtr to Qtr to Qtr to Year to Year to Year to 1 July to 30 June 30 June
Slide 45: Hedging summary as at August 2021
44 Hedging summary as at 26 August 2021 Financial Volume Price Type Delivery Delivery Announced Year Ounces $/oz schedule Sep 21 to Dec 22 61,169 C$2,050 European call options Sep 2021 to Dec 22 Monthly 24 Feb 20201 1. The European call options replaced previous forward contacts priced at C$1,550/oz
Slide 46: Leonora Province
45 Leonora Province Indicative timeline for development
Slide 47: Project pipeline
46 Project pipeline KEY Canada Papua New Guinea Regional Nova Scotia Australia Equity Investments Moose River Corridor Simberi Island (oxides) Back Creek Leonora Province Cochrane Hill Kin Mining1 Pinjin Gwalia Shallows Fifteen Mile Stream Touquoy Mine (19%) Peel Mining Lake Wells JV2 Harbour Lights
Slide 48: Ore Reserves summary at 30 June 2021
47 Ore Reserves summary at 30 June 2021 Proved Probable Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,631 7.0 368 11,677 4.9 1,853 13,308 5.2 2,221 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 S
Slide 49: Mineral Resources summary at 30 June 2021
48 Mineral Resources summary at 30 June 2021 Measured Indicated Inferred Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia Deeps, (WA) 3,843 5.9 730 19,120 5.8 3,543 2,485 6
Slide 50: Competent persons statement
49 Competent persons statement Exploration Results The information in this presentation that relates to Exploration Results 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 employee of St Barbara a
Slide 51: Non-IFRS measures
50 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, inv
Slide 52: Investor Relations enquiries
Investor Relations enquiries Chris Maitland Head of Investor Relations T: +61 3 8660 1914 M: +61 477 120 070 E: info@stbarbara.com.au Scheduled ASX Announcements 17 September 2021 Annual Report Notice of Annual General Meeting 20 October 2021 Q1 September 2021 Quarterly Report
Slide 53: St Barbara
StBarbara