St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (October 2019)
55 slides from St. Barbara's shareholder meeting presentation, Oct 23, 2019
Slide 1: Presentations to 2019 Annual General Meeting and audio webcast
ASX Release / 23 October 2019 Presentations to 2019 Annual General Meeting and audio webcast Attached are the Chairman’s address and the Managing Director and CEO’s presentation to the 2019 Annual General Meeting in Melbourne today. A live audio webcast of the meeting will be available on St Barbara
Slide 2: Chairman's Address to Shareholders
St Barbara Ltd 2019 Annual General Meeting Chairman’s Address to Shareholders Introduction Good morning ladies and gentlemen, and welcome to St Barbara’s 2019 Annual General Meeting. The 2019 financial year has been both a challenging and transformative year for the Company, which saw solid operatio
Slide 3: Chairman's Address: Safety and FY19 Highlights
I will start my report on our transformative year with safety. Our Total Recordable Injury Frequency Rate increased to 5.0 at the end of the 2019 financial year, up from 2.1 in the previous financial year. This represented 23 recordable injuries for the year, including five lost time injuries. Most
Slide 4: Atlantic Gold Acquisition Meets Strategic Objectives
The Atlantic Gold acquisition meets all five of St Barbara’s strategic objectives: • It diversifies production with a low-cost operating mine of substantial size, in its second year of production • It promises a 12-year mine life with the three other projects identified for development and potential
Slide 5: Gwalia Extension Project and Ventilation
immediate constraints on ventilation are exacerbated by the added ventilation demands required for the underground development and construction to expand ventilation. We are now nearing the completion of the Gwalia Extension Project, which commenced in March 2017, and is a key component in extending
Slide 6: Exploration and Community and Sustainability
We also have several exploration programs underway on the neighbouring islands of Tatau and Big Tabar. In Nova Scotia, the focus is on the permitting and approval to develop the three projects along strike from Touquoy, the current operating mine. In addition, exploration is targeting advanced prosp
Slide 7: Community Support
opinion of St Barbara, as well as confirming our views regarding the importance of supporting the community through funding local charities and providing employment and business opportunities. There was also constructive feedback on what we can do better. At Gwalia, we continue to support the local
Slide 8: Board Appointments and Conclusion
Board appointments I introduced Stef Loader as a Director at last year’s AGM, and Stef is up for election at this year’s meeting. Steven Dean was appointed to the Board in July this year following the acquisition of Atlantic Gold. Steven is the former Chairman, CEO and co-founder of Atlantic Gold, a
Slide 9: 2019 Annual General Meeting Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 23 October 2019 2019 Annual General Meeting Managing Director & CEO Presentation
Slide 10: 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 11: Contents
Contents • Safety • FY19 Review • Overview & Outlook • Operations & Growth o Atlantic Gold o Gwalia o Simberi • Exploration • Conclusion Board of Directors inspecting PAF project at Leonora, October 2019 3 / 2019 Annual General Meeting Presentation
Slide 12: St Barbara Safety Focus – Start Safe, Stay Safe
St Barbara Safety Focus – Start Safe, Stay Safe St Barbara Safety Focus Total Recordable Injury Frequency Rate1 9 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 6 5 5 1.9 1.9 1.6 4 2 2 1 St Barbara WA Gold WA Metal Q1 FY20 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Safety re
Slide 13: FY19 Review
FY19 Review •FY19 production 362 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 operating cash contribution2 of A$289 M (FY18: A$338
Slide 14: Paying Fully Franked Dividends
Paying Fully Franked Dividends Dividends Paid • FY19 total dividend 3.0% Annual 2.1% 2.2% A$0.08 per share Yield1 (%) • FY19 dividend yield 2.2%1 Cumulative • Cumulative dividend $0.26 dividend payments of A$0.26 since (A$) dividends recommenced in $0.18 FY17 Total $0.12 Interim $0.04 Total $0.08 $0
Slide 15: St Barbara today
St Barbara today Leonora (Gwalia mine) Simberi Atlantic Gold • Gwalia underground mine • Open pit mine • Open pit mine • FY 20F production 175-190 koz • FY 20F production 110 – 125 koz • FY 20F production 95–105 koz • 2.1 Moz Ore Reserve • 0.3 Moz oxide and 1.4 Moz • 1.9 Moz Ore Reserve (open at dep
Slide 16: Global Gold All-in Sustaining Cost Curve CY2019
Global Gold All-in Sustaining Cost Curve CY2019 • Atlantic is one of the lowest cost gold mines globally 3,000 All-In Sustaining Cost1 (US$/oz) 2,500 Atlantic Gwalia Simberi FY19A US$616/oz FY19A US$735/oz FY19A US$831/oz 2,000 FY20F US$649/oz FY20F US$994/oz FY20F US$957/oz Spot gold price US$1,500
Slide 17: Atlantic Gold acquisition completed July 2019
Atlantic Gold acquisition completed 19 July 2019 Touquoy pit, Atlantic Gold Operations. 9 / 2019 Annual General Meeting Presentation
Slide 18: Transformational Acquisition Consistent with Our Strategy
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$740 – 803/oz)1, with pathway to 200+ kozpa
Slide 19: Atlantic Gold Production and Cost Profile
Atlantic Gold Production and Cost Profile AISC Q1 Sep FY20 performance (A$/oz) • Production 22.3 koz full quarter3 957 1,010 970 840 • AISC1 A$970/oz (C$879/oz) 688 • Hurricane Dorian and detox tank maintenance interrupted processing Production (koz) for approx. one week 22.3 FY20 guidance • 95 – 10
Slide 20: Atlantic Gold Reserve and Resource Development
Atlantic Gold Reserve and Resource Development • Scope to expand production 0 5 10 km beyond existing 12 year reserve life1 • Expansion potential across all pits, with focus on targets along strike between Touquoy and Fifteen Mile Stream • The 149 Deposit was the first discovery of the Corridor Regi
Slide 21: FY20 Outlook
FY20 Outlook AISC1 (A$/oz) Consolidated 1,285 1,007 1,036 932 907 891 FY15 FY16 FY17 FY18 FY19 FY20F Gold Production koz 403 400 377 381 362 328 135 100 110 116 80 142 118 248 267 265 268 220 183 FY15 FY16 FY17 FY18 FY19 FY20F Guidance Gwalia Simberi Atlantic Gold Total mid-points PAF chamber prior
Slide 22: Gwalia
Gwalia Aerial view of Leonora Operations 14 / 2019 Annual General Meeting Presentation
Slide 23: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile Gwalia production year on year Mined Grade 12.5 (g/t Au) 11.1 9.3 10.7 8.8 8.2 8.4 8.9 6.9 6.3 5.7 Reserve Grade 6.4 g/t Au June 2019 1420 Production 267 265 268 (koz) 248 214 220 AISC 190 185 183 (A$/oz) 1027 175 940 131 841 802 783 785 109 83 Loader underg
Slide 24: Gwalia | Total material moved
Gwalia | Total material moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 262 267 • Excavation of the approx. 11 m high x 260 256 252 10 m wide chambers at 1,420 and 1,460 mbs for the PAF circuit 69 82 106 115 commenced in Q1 Sep FY17 78 • Raise-boring of the four 5-metre dia
Slide 25: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 million with planned completion in Q3 March FY202 • A$107 million spent on project to date • PAF crushing circuit on
Slide 26: Gwalia Extension Project | Ventilation Plan
Gwalia Extension Project | Ventilation Plan For details refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 18 / 2019 Annual General Meeting Presentation
Slide 27: Simberi
Simberi Jason Eade, Manager Fixed Plant Maintenance, viewing the Ropecon Simberi Operations, July 2019 19 / 2019 Annual General Meeting Presentation
Slide 28: Simberi Production, Cost and Grade Profile
Simberi Production, Cost and Grade Profile Mined Grade (g/t Au) 1.43 1.23 1.26 1.25 1.13 1.16 1.00 Reserve Grade 1.3 g/t Au June 2019 AISC1 2,300 (A$/oz) 135 142 Production 125 (koz) 110 116 110 1,464 1,368 1,293 80 1,187 1,162 1,068 44 FY14 FY15 FY16 FY17 FY18 FY19 FY20F Simberi processing plant. P
Slide 29: Simberi – Continues to deliver
Simberi – Continues to deliver • Cash contribution1 since the November 2016 decision to retain the asset is A$224 million • Operation has continued to set new records Quarterly cash contribution from Simberi A$M Decision to retain 34 Average since Q3 FY17 = $22 M 24 24 23 23 23 20 20 21 19 12 12 10
Slide 30: Simberi Sulphide | Potential long life mine extension
Simberi Sulphide | Potential long life mine extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 2.4 g/t Au, 3.3 Moz Sulphide Resource @ 1.6 g/t Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 31: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 23 / 2019 Annual General Meeting Presentation
Slide 32: Exploration | FY20 Guidance
Exploration | FY20 Guidance – A$31 to A$41 million A$7 – A$9 million Leonora A$8 – A$12 million PNG • Shift in focus from Gwalia Deep Drilling to • Simberi Oxides/Sulphides and Porphyry region and Greater Gwalia A$11 – 13 million Atlantic Gold Canada A$5 – A$7 million Pinjin, Lake Wells & • Moose Ri
Slide 33: Growth Pipeline
Growth Pipeline Atlantic Gold (Regional) Atlantic Gold (Moose River Corridor) Tabar Island Group KEY (Au, Au-Cu) Canada Papua New Guinea Back Creek Australia Equity Investments Atlantic Gold Leonora Province (Beaver Dam) Peel Mining Atlantic Gold Greater Gwalia (16%) (Cochrane Hill) Catalyst Metals
Slide 34: Reserves and Resources as at June 2019 + Atlantic Gold
Reserves and Resources as at 30 June 2019 + Atlantic Gold Ore Reserves Mineral Resources 12.0 2.4 Atlantic 9.2 Gold 3.7 4.2 Simberi 5.9 1.9 3.9 1.7 1.7 Leonora 5.5 5.4 2.2 2.4 FY 18 FY 19 FY 18 FY 19 Total Note: For full details refer to ‘Ore Reserves and Mineral Resources Statement 30 June 2019’ re
Slide 35: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Gwalia and Simberi mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements. Atlantic Go
Slide 36: Australian Gold Peer Comparison – NPAT
Australian Gold Peer Comparison – NPAT1 • St Barbara ranks strongly with Australian gold peers on NPAT … 300 Bubble size = FY19 gold production 250 200 EVN NPAT1 (A$M) RRL 150 SBM SAR 100 NST OGC 50 RSG 0 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 1. Australian gold peers (market cap A$1.0
Slide 37: Australian Gold Peer Comparison – ROME
Australian Gold Peer Comparison – ROME1 • … and on return on market value 10% Bubble size = FY19 gold production SBM 8% NPAT / Market Cap.1 (%) RRL 6% OGC 4% SAR 2% RSG EVN NST 0% 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 1. Return on Market Value of Equity. Australian gold peers (market
Slide 38: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic & Corporate Governance Performance Statement • Core values and Code of Conduct • Disclosure guided by GRI • Ethical business conduct standards • Manage for long term growth • Av
Slide 39: 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 40: Conclusion
Conclusion • Current operations continue to perform well, with record production and cash flow from Simberi in FY19 • FY19 NPAT of A$144 M • Total FY19 dividends of A$0.08 per share • Ended FY19 in strong financial position: – A$110 M cash at bank1, – A$112 M debt, and – A$200 M undrawn debt facilit
Slide 41: Appendices
Appendices Aircore drilling, Pinjin, Western Australia. Photo by Kiran Hudson 33 / 2019 Annual General Meeting Presentation
Slide 42: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q1 Sep Guidance Consolidated FY19 FY19 FY 19 FY20 FY20 FY20 AG full quarter AG SBM attributable St Barbara’s financial year Qtr to Qtr to Year to Qtr to Qtr to Year to is 1 July to 30 June 31 Mar 2019 30 Ju
Slide 43: Segment Profit and Cash Contribution From Operations
Segment Profit and Cash Contribution From Operations Reportable segment profit before tax1 Cash contribution from operations1, 2, 3 A$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 44: Exploration Activities
Exploration Activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 36 / 2019 Annual General Meeting Presentation
Slide 45: Atlantic Gold Exploration
Atlantic Gold Exploration • Atlantic Gold has 21 exploration projects in Nova Scotia, with >1,900km2 of exploration tenements • Key exploration targets are near current deposits, the Moose River corridor program and south-west region • Limited drilling has occurred to date, planning now to increase
Slide 46: Hedging Summary at October 2019
Hedging Summary at 18 October 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) FY20 20,280 A$1,750 October and December 2019 7 & 19 Feb 2018 and (29,720 of initial 50,000 ounces delivered year to date since 1 July 2019) 7 Mar 2018 FY20 24,000 A$1,809 January
Slide 47: 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 48: 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 49: Institutional Share Register
Institutional Share Register Not analysed Australia 10% Institutional 38% 85% Non Institutional USA 31% 5% UK 10% Other 11% Not analysed 10% Data as at 12 September 2019 41 / 2019 Annual General Meeting Presentation
Slide 50: Substantial Shareholders and Broker Coverage
Substantial Shareholders and Broker Coverage Substantial Shareholders 1 Broker Research Coverage Van Eck Associates Corp. 12.2% Argonaut James Wilson Institutional Shareholders 2 85% Canaccord Reg Spencer Shares on issue 696M Citi Kate McCutcheon American Depositary Receipts (ADR) Credit Suisse Mike
Slide 51: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014. Appointed Chairman July 2015. Appointed July 2014 Mr Netscher is an experienced international mining executive with extensive Mr Vassie is a mining engineer with over 30 ye
Slide 52: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer Appointed July 2014 Joined 2006 Mr Vassie is a mining engineer with over 30 years’ international mining Mr Campbell-Cowan is a Chartered Accountant with 30 years’ experience industry experienc
Slide 53: 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 54: 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 55: 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 Board visit to Fifteen Mile Stream Project, Nova Scotia, Canada (September 2019). L to R: David Moroney (Non-Executive Director), Kerry Gleeson (Non-Execut