St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2010)
38 slides from St. Barbara's shareholder meeting presentation, Nov 18, 2010
Slide 1: 2010 Annual General Meeting
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only 2010 Annual General Meeting We attach a copy of the Chairman’s address and Manag
Slide 2: Chairman's Address to the 2010 AGM
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only COLIN WISE, CHAIRMAN ADDRESS TO THE 2010 ANNUAL GENERAL MEETING OF SHAREHOLDERS
Slide 3: Chairman's Address (continued)
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only I am delighted to confirm that the past six consecutive quarters have delivered
Slide 4: Chairman's Address: share register and capital structure
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only We have been successful over the past 12 months in attracting to St Barbara’s sh
Slide 5: Chairman's Address: growth and acquisition criteria
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only St Barbara remains focused and disciplined in its growth aspirations and strateg
Slide 6: Investing for growth
For personal use only Investing for growth Tim Lehany, Managing Director & CEO 2010 Annual General Meeting 18 November, 2010 Annual General Meeting – 18 November 2010 1
Slide 7: Forward looking statements
Forward looking statements 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 i
Slide 8: What we'll cover today
What we’ll cover today For personal use only 1. A COMPANY TRANSFORMED 2. OUR BUSINESS 3. CREATING VALUE 4. INVESTMENT CASE 5. CONLUSION Annual General Meeting – 18 November 2010 3
Slide 9: A company transformed
For personal use only A company transformed Annual General Meeting – 18 November 2010 4
Slide 10: Accelerating and delivering on our plans
Accelerating and delivering on our plans For personal use only Annual General Meeting – 18 November 2010 5
Slide 11: Significant events in transforming our business
Significant events in transforming our business For personal use only November 2009 January 2010 December Quarter Institutional entitlement - offer raises A$73M Results - Gold production in line with December 2009 expectations for third consecutive Completion of retail offer - offer raises A$51M Qua
Slide 12: Market guidance for FY10 delivered
Market guidance for FY10 delivered For personal use only GUIDANCE Gold production (oz) 231,018 Guidance: 205,000-240,000 205,000 240,000 Actual: 231,018 Cost per ounce (A$/oz) 790 Guidance: 780-820 780 820 Actual: 790 Leonora 686 Guidance: 630-700 630 700 Actual: 686 Southern Cross 883 Guidance: 840
Slide 13: Operational reliability established
Operational reliability established For personal use only Koz Gold production - last four quarters 70 60 62.6 63.5 50 55.1 54.4 40 30 20 10 FY 10 - Q2 Dec FY 10 - Q3 Mar FY 10 - Q4 Jun FY 11 - Q1 Sep • Highest quarterly gold production in 12 months • Gwalia quarterly gold production expected to incr
Slide 14: Financial transformation opens up growth options
Financial transformation opens up growth options For personal use only A$M A$M Debt profile 120 100 80 60 40 20 15.9 0 2008 2009 2010 Strong balance sheet and low debt provide funding flexibility Note: St Barbara is not subject to the recently proposed Australian Minerals Resources Rent Tax Annual G
Slide 15: Building our reserves and extending mine life
Building our reserves and extending mine life For personal use only Contained Ounces 3,500 2,906 3,000 2,500 2,000 1,500 1,000 500 260 0 Ore Reserves Ore Reserves 2006 2007 2008 2009 2010 2005 2010 At 30 June 2010 Annual General Meeting – 18 November 2010 10
Slide 16: Safe production - Start Safe, Stay Safe
Safe production - Start Safe, Stay Safe For personal use only Total Recordable Injury Frequency Rate 16 14 12 14.8 10 11.1 8 6 4 2 0 2009 2010 Improving safety performance Annual General Meeting – 18 November 2010 11
Slide 17: Our business
For personal use only Our business Annual General Meeting – 18 November 2010 12
Slide 18: Leveraging growth from Leonora
Leveraging growth from Leonora For personal use only Mine life: 9+ years Ore Reserves: 10.2Mt @7.3g/t Au for 2.4Moz Mineral Resources: 27.7Mt @ 6.1g/t Au for 5.4Moz Cash Operating Cost: $A686/oz1 Highlights for Fiscal Year 2010 Gold production • Ore production from Gwalia mine continues to grow • Ne
Slide 19: The Gwalia mine – Our cornerstone project
The Gwalia mine – Our cornerstone project For personal use only Annual General Meeting – 18 November 2010 14
Slide 20: The Gwalia mine – Our cornerstone project
The Gwalia mine – Our cornerstone project For personal use only Annual General Meeting – 18 November 2010 15
Slide 21: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch For personal use only Annual General Meeting – 18 November 2010 16
Slide 22: King of the Hills - Leveraging Gwalia capital infrastructure
King of the Hills- Leveraging Gwalia capital infrastructure For personal use only Mine life: New pic required 5+ years Ore Reserves: 1.7Mt@4.3g/t Au for 230Koz Mineral Resources: 2.5Mt@5.3g/t Au for 418Koz Average Total Cost: A$1,020 - $1,050 /oz Highlights and Opportunities Gold production forecast
Slide 23: Leonora – Driving higher returns
Leonora – Driving higher returns For personal use only Leonora Gold Production Gwalia Cash Operating Costs 750 Gwalia Open Pit King of the Hills 300,000 700 250,000 650 A$ per ounce 200,000 600 Ounces 150,000 550 100,000 A 500 50,000 represents guidance range 0 450 FY09 Actual FY10 Actual FY11 FY12
Slide 24: Southern Cross Operations – Generating cash flow
Southern Cross Operations – Generating cash flow For personal use only Mine life: 2 + years Ore Reserves: 5.4Mt @2.8g/t Au for 500koz Mineral Resources: 19.9Mt @ 3.5g/t Au for 2.3Moz Cash Operating Cost: A$883/oz2 Highlights and Opportunities Gold production • Positive cash flows for FY11&12 at curr
Slide 25: Creating value
For personal use only Creating value Annual General Meeting – 18 November 2010 20
Slide 26: Investing in exploration success
Investing in exploration success For personal use only A new team, a new exploration philosophy, a prospective land bank and available funds • Budget of A$15 to A$16M pa for next 3 years • Ten quality targets identified for drill testing in FY11 Annual General Meeting – 18 November 2010 21
Slide 27: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia(4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Oth
Slide 28: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Hibernia (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (4000m) • Ot
Slide 29: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Annual General Meeting – 18 November 2010 24
Slide 30: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead Annual General Meeting – 18 November 2010 25
Slide 31: Filling the project pipeline – East Lachlan
Filling the project pipeline – East Lachlan For personal use only East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Te
Slide 32: How we will execute our medium term strategy
How we will execute our medium term strategy For personal use only Target 500Koz Koz 500 Per Annum LOWER CASH OPERATING COSTS 400 PROSPECTIVE 100koz+ TO 200koz PER ANNUM M&A Activity INVESTMENT CRITERIA Discovery MINIMUM IRR OF 15% 300 TARGET CONFIDENCE OF DEVELOPMENT 500Koz 231Koz PER ANNUM CONSENT
Slide 33: Investment case
For personal use only Investment case Annual General Meeting – 18 November 2010 28
Slide 34: St Barbara has quality ore reserves – great value
St Barbara has quality ore reserves – great value For personal use only Koz g/t Au A$ Philippines/New Zealand Reserve and Reserve Grade Market Capitalisation per Reserve Ounce as at 30 June 2010 St Barbara has the largest Australian reserve base of its peers, and the highest grade Annual General Mee
Slide 35: St Barbara – Long term, high cash margins
St Barbara – Long term, high cash margins For personal use only Annual General Meeting – 18 November 2010 30
Slide 36: Conclusion
For personal use only Conclusion Annual General Meeting – 18 November 2010 31
Slide 37: Strong, capable and growing
Strong, capable and growing For personal use only STRONG • Gwalia to deliver organic growth and lower costs • Financial strength provides flexibility for growth CAPABLE • Experienced Board & Executive team • Operational capability to deliver to guidance GROWING • Exploration drilling of defined targ
Slide 38: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement Significant gold intersections and geological interpretations contained in this report have been compiled by Mr. Phillip Uttley. Mr. Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full t