St. Barbara Ltd. · ASX:SBM
St. Barbara — PNG Mining Seminar 2013
32 slides from St. Barbara's conference presentation, Dec 5, 2013
Slide 1: Presentation to PNG Mining Seminar
ASX Release / 5 December 2013 For personal use only Presentation to PNG Mining Seminar Attached is a presentation by Ross Kennedy, Executive General Manager Corporate Services and Company Secretary, to the PNG Mining Seminar in Port Moresby today, hosted by the PNG Chamber of Mines and Petroleum. Ti
Slide 2: PNG Chamber of Mines & Petroleum PNG Mining Seminar, Port Moresby
ROSS KENNEDY, EGM CORPORATE SERVICES / 5 December 2013 For personal use only PNG Chamber of Mines & Petroleum PNG Mining Seminar, Port Moresby
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: Outline
Outline ˃ Overview For personal use only ˃ Operations ˃ Exploration ˃ Investment Simberi ˃ Economic contribution ˃ FY14 Objectives ˃ Appendices 3/ PNG MINING SEMINAR / 5 December 2013
Slide 5: Building a long term business in the Pacific
Building a long term business in the Pacific For personal use only 4/ PNG MINING SEMINAR / 5 December 2013
Slide 6: Our Vision is to be a successful, leading and growing gold company
Our Vision is to be a successful, leading and growing gold company Simberi For personal use only PNG Simberi ˃ Low strip open pit mine SI ˃ Targeting c. 100 koz p.a. Gold Ridge ˃ Near mine targets for exploration Leonora ˃ Two underground mines: ˃ Gwalia Mine Gold Ridge FY14F production: Australia ˃
Slide 7: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only 6/ PNG MINING SEMINAR / 5 December 2013
Slide 8: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea ˃ Part of New Ireland Province For personal use only ˃ Open pit mining since 2008 ˃ Oxide plant expansion project commissioning has commenced ˃ Supportive, experienced local workforce, comprising 535 PNG National employees, plus numerous National contractors ˃ Pl
Slide 9: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only Expected long term production ˃ Full oxide plant expansion increase from plant expansion necessary to lift gold production to c.100 koz p.a. to ensure financial 120 viability at current gold price1 100 ˃ Upgrade of mining fleet expected 80 t
Slide 10: Investing for the future – not helped by falling US$ gold price
Investing for the future – not helped by falling US$ gold price For personal use only US$ Gold Price 1 Oct 2012 to 27 Nov 2013 US$/oz 1,900 ˃ US$ gold price has fallen US$ 538 (30%) from 1,800 US$1,775/oz at 1 Oct 2012 1,700 to US$1,237/oz at 27 Nov 1,600 2013 1,500 ˃ Simberi average total 1,400 ope
Slide 11: 42% of St Barbara Ore Reserves at Simberi
42% of St Barbara Ore Reserves at Simberi For personal use only Significant Ore Reserves Diversified portfolio of Ore and Mineral Resources 1 Reserves 1 13.22 Leonora, Simberi, WA PNG 41% 42% 7.61 5.24 2.53 FY 12 FY 13 Gold Ridge, Mineral Resources Ore Reserves SI Moz 17% 1. ASX release 22 August 20
Slide 12: Exploration
Exploration Focus on adding to near mine reserves Exploration spend FY14F A$20-25M For personal use only ≈ 40% in Australia Tabar Island Group ≈ 60% in Pacific Operations (inc. Simberi) Simberi > Active drilling programs on ˃ Ore bodies open at depth PNG defined targets SI ˃ Near mine targets for ex
Slide 13: Exploration - Simberi, Tatau and Tabar Islands, PNG
Exploration - Simberi, Tatau and Tabar Islands, PNG Simberi Island For personal use only ˃ Exploration focused on identifying near mine, higher grade, oxide resources ˃ Further encouraging gold results1 from drilling oxide mineralisation at Botlu and Pigicow on near-mine prospects including2: ˃ 14m
Slide 14: Simberi the first months: Investment
Simberi the first 12 months: Investment ˃ Significant funds invested in FY13 to improve For personal use only operating infrastructure ˃ Included PGK 102 million invested in the oxide expansion and other capital projects (c. A$47 million1 ) ˃ This investment includes technology to: ˃ Improve gold re
Slide 15: Simberi planned investment in FY14
Simberi planned investment in FY14 ˃ Capital expenditure for the 2014 financial year is forecast For personal use only to be between PGK 40-50 million (A$20-25 million1), inc: ˃ Completion of oxide expansion project; ˃ Additional mining fleet; ˃ Re-build of some existing mining fleet; ˃ Heavy vehicl
Slide 16: Simberi: Employment
Simberi: Employment Employees Providing jobs and training For personal use only 1000 The Company directly employs 800 approximately 535 PNG Nationals covering a diverse 600 range of employment & training 400 opportunities including: ˃ Supervisors 200 ˃ Engineers 0 ˃ Geologists Jan Feb Mar Apr May Ju
Slide 17: Respecting Local Communities and Community Development Projects
Respecting Local Communities and Community Development Projects ˃ The Company employs over 30 people in a variety For personal use only of community relations roles dedicated to addressing the concerns and needs of local landowners and community groups. 16 / PNG MINING SEMINAR / 5 December 2013
Slide 18: Simberi Operations Economic Contribution FY13
Simberi Operations Economic Contribution FY13 For personal use only Salaries People PGK million Island Residents 424 9 Nationals 310 17 Total 734 26 Purchases (food and materials) PGK million Simberi & Kavieng 4 Port Moresby & Lae 94 Fuels 29 Total 127 Royalties & MRA levy PGK million 2.25% of gold
Slide 19: Simberi strengths to build on
Simberi strengths to build on ˃ Local workforce enthusiastic to learn For personal use only ˃ Developing infrastructure (e.g. airstrip, telecoms) ˃ Accessibility to key decision makers – landowners and government ˃ Supportive Provincial and National Governments 18 / PNG MINING SEMINAR / 5 December 2
Slide 20: Simberi risks to manage
Simberi risks to manage For personal use only ˃ Difficult physical environment – high rainfall, remote for accessing supplies ˃ Permitting processes can take longer than expected ˃ Higher costs of production must be managed carefully in a weak gold price environment ˃ Visa and work permit constraint
Slide 21: FY14 Objectives
FY14 Objectives Australia For personal use only ˃ Forecast gold production 235 – 255 koz ˃ Continuing business improvement ˃ Drilling to test for mine life extensions at King of the Hills Pacific Operations ˃ Lifting operations performance and planning for growth ˃ Applying St Barbara operating capa
Slide 22: Conclusion
Conclusion ˃ St Barbara is continuing to invest significantly, but not For personal use only indefinitely, in Simberi to build a long term, profitable gold operation ˃ Investors in St Barbara require a reasonable return on the significant investment that has already been made ˃ Transparent, equitabl
Slide 23: Questions?
Questions? For personal use only 22 / PNG MINING SEMINAR / 5 December 2013
Slide 24: Appendices
Appendices For personal use only 23 / PNG MINING SEMINAR / 5 December 2013
Slide 25: Vision
Vision To be a successful, leading and growing gold company For personal use only Vision underpinned by: Values: • Safe production • We act with honesty and integrity • Capable and committed workforce • We treat people with respect • Environmental sustainability • We value working together • Benefic
Slide 26: High proportion of global institutional investors
High proportion of global institutional investors Top 100 Shareholding Structure For personal use only UK, 29% Private 8% USA, 25% Unallocated / not analysed 15% Australia, 22% Institutions Europe, 5% Asia, 2% 77% Other / not analysed, 17% Analysis and geographic spread of Top 100 Shareholders as at
Slide 27: Simberi poor performance being addressed
Simberi poor performance being addressed For personal use only Gold Production 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 11.7 ˃ Ore contained higher sulphide levels ˃ Cash oper
Slide 28: 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 29: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate 5 ˃ Lowest incidence of 4 recordable injuries in recent history 3 ˃ Only one recordable 2 injury since November 2012 1 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2012 2013 Recordable Injuries TRIFR TRIFR: r
Slide 30: 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 31: 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 32: 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 www.stbarbara.com.au ASX: SBM 31 / PNG MINING SEMINAR / 5 Dece