St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (October 2011)
45 slides from St. Barbara's corporate update, Oct 14, 2011
Slide 1: Presentation to Goldman Sachs and Investors at Leonora Operations
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 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 Presentation to Goldman Sachs and Investors at Leonora Operations Attached is a
Slide 2: Leonora Operations Investor Site Tour
Leonora Operations For personal use only Investor Site Tour Goldman Sachs, Australia 14 October 2011
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: Overview
Overview For personal use only • Company C P Profile fil • Leonora Overview • Gwalia Operations • King of the Hills • Gwalia Mine and Regional Prospectivity Leonora Site Visit October 2011 3
Slide 5: Company Profile
For personal use only COMPANY PROFILE Leonora Site Visit October 2011 4
Slide 6: One of Australia's largest gold companies
One of Australia’s largest gold companies -p profitable,, cash generating, g g, exploring p g For personal use only Stock Code SBM (ASX) ASX market capitalisation(2) A$668 million Proven FY 11 performance A$69 million NPAT FY12 production(1) 320,000-350,000 oz Net Cash(3) A$67 million Ore Reserves(3
Slide 7: Leonora Overview
For personal use only LEONORA OVERVIEW Leonora Site Visit October 2011 6
Slide 8: St Barbara holds a significant land position in the Leonora region
St Barbara holds a significant land position in the richly endowed Leonora region For personal use only • 240 km north of Kalgoorlie • One of the 3 most richly endowed gold provinces in WA • Leonora L ore reserves: 11.2 11 2 Mt M @ 7.0 g/t Au for 2.5 Moz1 • King of the Hills located 42 km NNW of Gwa
Slide 9: Leonora Operations - engine room for cash generation
Leonora Operations g - engine room for cash generation g For personal use only Gwalia Mine King of• the MineHills life: 12+ months Mine (AT JUNE 2011) Expect p to achieve sustainable Satellite • underground MarvelgLoch Minep project j gold production in FY12 of Successfully commissioned • Proc
Slide 10: All Gwalia infrastructure in place and paid for
All Gwalia infrastructure in place and paid for - designed for 10+ year life For personal use only Power Station Fridge Plant Compressor ROM Sh t Shotcrete t Batch B t h Plant Pl t Pad Fridge Plant BAC’s Paste Fill Plant Processing Plant Mine Office Tailings Primary Vent Fans Storage Facility Leonor
Slide 11: Infrastructure is scalable to support deeper mining
Infrastructure is scalable to support deeper mining For personal use only Commissioned and ready for life of mine • Ventilation V til ti FFans – 2 x 1350kW – Final D t 450 m3/sec Fi l Duty / @ 4kPa 4kP • Refrigeration – 4 MWr – Upgradable to 8 MWr (2012/13) • Paste Fill Plant – 100 m3/hr (current ra
Slide 12: Leonora recoveries consistently >95%
Leonora recoveries consistently >95% For personal use only FY11 Mill Recovery % 97% 96% 95% 94% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Leonora Site Visit October 2011 11
Slide 13: Stable FY11 safety performance - focus for improvement
Stable FY11 safety performance – focus for improvement For personal use only Leonora TRIFR Moving g Average g ((12mma)) 16 14 12 10 TRIFR 12mma 8 (T t l Recordable (Total R d bl IInjury j F Frequency R Rate) t ) 6 4 2 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Leonora Site Visit October 2011
Slide 14: Gwalia - Over 4.0 Moz gold produced since 1897
Gwalia- Over 4.0 Moz g gold produced p since 1897 For personal use only 1896 ‐ Welsh syndicate discovers the Gwalia Reef 1897 ‐ Herbert H b t Hoover H b buys mine i ffor Bewick Moreing 1929 ‐ Hoover becomes 31st President of USA 1963 ‐ Mine closes 4 daysy before Christmas havingg produced more than
Slide 15: Gwalia Operations
For personal use only GWALIA OPERATIONS Leonora Site Visit October 2011 14
Slide 16: Gwalia - growing production, improving margins and returns
Gwalia - growing production, improving g margins and returns as grade g increases For personal use only GROWING GWALIA PRODUCTION INCREASING GRADE DRIVES LOWER CASH OPERATING COSTS FOR GWALIA 175-190 1400 9 8.0-8.5 g/t Au 8 1200 6.3 g/t Au 7 131 1000 6 109 138 765 800 5 109 610-640 600 4 3 400 2 200
Slide 17: Leonora - profit generator
Leonora – profit generator For personal use only FY 10 FY 11 $M $M Revenue 139 195 Mine operating costs (74) (104) Gross profit 65 91 Royalties (5) (7) Depreciation and amortisation (31) (37) Profit before income tax 28 47 Profit before tax expected to increase in FY12 with increased production and
Slide 18: Gwalia FY12 forecast gold production up 40%
Gwalia FY12 forecast gold production up 40% For personal use only Operations FY12 Guidance • Underground • Production 175-190 koz – 700 to 730 ktpa p • Grade 8 8.0 0-8 8.5 5 g/t Au – Hoover Decline to expected (up from 6.3 g/t Au in FY11) to be at 1,450 mbs by end FY12 • Cash costs $610–640 /oz – Im
Slide 19: Gwalia - endowment and grade increase at depth
Gwalia – endowment and grade increase at depth For personal use only oz/vm RESERVES - Ounces per Vertical Metre Grade g/t Au C7000 20 u C ru 18 rr 6000 e r 16 n e tn5000 Currently 14 lt mining at y l 1300mbs 12 y4000 m Limited im drilling data 10 n i 3000 in 8 n i g n 6 2000 FY12 g a Production ta 4
Slide 20: FY12 forecast ore production of 700-730 ktpa is readily achievable
FY12 forecast ore production of 700-730 700 730 ktpa is readily achievable For personal use only Annualised Ore Mined - Gwalia ktpa 900 800 700 600 500 400 300 200 100 0 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Leonora Site Visit October 2011 19
Slide 21: Analysis of cash operating costs
Analysis y of cash operating p g costs For personal use only 4% 6% Reagents g 15% Government Royalties 43% Energy Wages Other Costs (including contractor and equipment q p charges) g ) 32% Leonora Site Visit October 2011 20
Slide 22: Increased grade and productivity planned from South West Branch
Increased grade and productivity planned from South West Branch For personal use only • Majority of Gwalia ore in FY12 to be sourced from higher grade South West Branch • Improved mining method – “Dual Lift Stoping” – North & South access on two dual lift levels gives 4 mining areas (minimum 3) – Gr
Slide 23: Gwalia Mining Strategy: Dual Lift Stoping mining sequence
Gwalia Mining Strategy Dual Lift Stoping p g in SWB – miningg sequence q manages g the hanging g g wall For personal use only FY11 2 1 5 4 Note: Single lift Hanging Wall Span 3 typically 32m (HR=6.15) 8 7 Development fully in ore (no dilution) 6 11 Leonora Site Visit October 2011 22
Slide 24: Gwalia Mining Strategy: Development Layout
Gwalia Mining Strategy Dual Lift Stoping p g in SWB – Development p Layout y For personal use only Note : SGS, Main Lode and West Lode MNL development optionality allowed for for, but not included in the current mine plan SWB WL SGS Leonora Site Visit October 2011 23
Slide 25: Gwalia Mining Strategy: Year Mining Sequence
Gwalia Mining Strategy For personal use only Dual Lift Stoping in SWB – 3 Year Mining Sequence FY11 FY12 FY13 FY14 Leonora Site Visit October 2011 24
Slide 26: Decline bypass
Portal Decline bypass For personal use only • 745 m of development Gwalia Open pit p Bypass yp for bypass including Decline decline, stockpiles & sumps Decline Old Workings BT • Bypass moves decline away from historical workings ki and d open pit • Capex $7.2 $7 2 M in FY12 Leonora Site Visit Octobe
Slide 27: Maximising Gwalia's value
Maximising g Gwalia’s value For personal use only • Indicative 10+ year life • Current major projects to unlock further value – Pre‐feasibility study for haulage optimisations at Gwalia including potential for a shaft – Scoping p g studyy for Gwalia mill expansion p from 1.2 Mtpa p to 1.8 Mtpa – Res
Slide 28: New Growth Project: King of the Hills
New Growth Project j For personal use only KING OF THE HILLS Leonora Site Visit October 2011 27
Slide 29: Ore processed at Gwalia mill - 42km on existing road
Ore processed at Gwalia mill – 42km on existing g road For personal use only Leonora Site Visit October 2011 28
Slide 30: King of the Hills successfully commissioned
King of the Hills successfully commissioned For personal use only • Production commenced Mayy 2011,, ahead of p plan • FY11 production 7,066 ounces at cash cost $699/oz • On schedule for FY12 production guidance • Probable Ore Reserves of 221,000 ounces • LOM grade 4.3 g/t Au • LOM production at 55,
Slide 31: KOTH planned development
KOTH planned development Mining g Strategy gy ((FY12 Plan)) For personal use only Leonora Site Visit October 2011 30
Slide 32: KOTH open stoping in eastern flank
KOTH open stoping in eastern flank Mining g Strategy gy ((FY12 Plan)) For personal use only Portal W5115 Level West Decline E5100 Level E5075 Level E5050 Level W5060 Level E5025 Level E5000 Level E4970 Level E4950 Level East Decline Leonora Site Visit October 2011 31
Slide 33: Gwalia Mine and Regional Prospectivity
For personal use only GWALIA MINE AND REGIONAL PROSPECTIVITY POTENTIAL FOR ADDITIONAL RESOURCES IN AND NEAR MINE Leonora Site Visit October 2011 32
Slide 34: Ore reserves increased to 2.0 Moz, open at depth
Ore reserves increased to 2.0 Moz (mainly in SWB), SWB) 10 yr life life, open at depth For personal use only Gold Contained Gwalia Deeps Tonnes Grade Gold kt g/t Au koz Reserves 6,917 8.9 1,973 R Resources 14 450 14,450 85 8.5 3 941 3,941 SBM UG Production 1,600Kt @ 6.1g/t Au (317Koz) Leonora Site V
Slide 35: Potential for ore from other lodes to be brought into reserve
Potential for ore from other lodes to be brought into reserve For personal use only Leonora Site Visit October 2011 34
Slide 36: Drilling targets for FY12
Drilling g targets g for FY12 For personal use only • Gwalia Deeps • Phase Ph 3 drilling d illi approved d ffor FY12 • Leonora • 3,000 m identified for testing identified targets under cover with potential for >1 Moz • New Targets • to be identified by studies, provides 10,000 m for geochemical air-
Slide 37: Gwalia
Gwalia For personal use only • Long life, 10+ 10 years, backed by ore reserves • Increasing grade in FY12 to deliver 30% increase in production • Expandable infrastructure • Regional targets to be drilled • Expected increasing margins and lower operating costs Leonora Site Visit October 2011 36
Slide 38: Investor Relations Enquiries
For personal use only Investor Relations Enquires: 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 Leonora Site Visit October 2011 37
Slide 39: Supporting documents
Supporting pp g documents For personal use only • Leonora Workforce • Protecting Margins • Mineral Resources Statement • Ore Reserves Statement • FY12 Guidance G id • Competent Persons Statement Leonora Site Visit October 2011 38
Slide 40: Leonora Workforce
Leonora Workforce For personal use only • 510 p personnel onsite • 130 SBM (inc. 20 contractors) • 225 Barminco • 155 Other ((Drilling, g, Catering, g, Byrnecut) • Local and FIFO (Perth) • State S off the h Art A Village Vill Facilities F ili i • Golden Gecko Award for Sustainability • Expansion und
Slide 41: Protecting margins on higher cost operation
Protecting margins on higher cost operation For personal use only Hedge edge Profile- o e King g of o the t e Hills s koz A$/oz 80 1,650 A$1,615 70 1,600 , 60 1,550 50 1,500 40 1,450 30 A$1,425 1,400 20 10 1,350 0 1,300 FY12 FY13 FY14 FY15 KOTH Floor KOTH Cap KOTH KOTH = King of the Hills Leonora Si
Slide 42: Mineral Resources Statement as at June 2011
Mineral Resources* Statement as at 30 June 2011 For personal use only Region Category Measured Indicated Inferred Total P j t Project T Tonnes G ld Gold Contained C t i d T Tonnes G ld Gold Contained C t i d T Tonnes G ld Gold Contained C t i d T Tonnes G ld Gold Contained C t i d Grade Gold Grade G
Slide 43: Ore Reserves Statement as at 30 June 2011
Notes: •Cut‐off grade = 2.5g/t Au. •Data is rounded to thousands of tonnes and thousands of ounces. Differences in totals may occur due to rounding. Ore Reserves Statement* For personal use only as at 30 June 2011 Region Category Proved Probable Total Gold Gold Gold Tonnes grade Gold Tonnes grade Go
Slide 44: FY12 Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora S’thn Cross Gold koz 175‐190 55‐60 90‐100 320‐350 production Cash operating 1,170 $/oz 610‐640 710‐750 $/ ‐ costt ‐1,220 1 220 Capex $M 55‐60* 55 60 20‐25 20 25 10‐15 10 15 85‐100 85 100 * Includes $12.6M
Slide 45: Competent Persons Statement
Competent p Persons Statement For personal use only References to Mineral Resources and exploration results presented in this References to Ore Reserves presented in this document have been produced document have been produced in accordance with The Australasian Code for in accordance with The Austr