St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2020
39 slides from St. Barbara's conference presentation, Sep 21, 2020
Slide 1: Presentation to 2020 Denver Gold Forum
ASX Release / 21 September 2020 Presentation to 2020 Denver Gold Forum Craig Jetson, Managing Director and CEO, will present to the Denver Gold Forum being held virtually this week. A webcast of the presentation will be available on the Gold Forum Americas website at https://www.denvergold.org/compa
Slide 2: Denver Gold Forum 2020
Denver Gold Forum 2020 20-23 September 2020 Craig Jetson Managing Director and Chief Executive Officer 1 / Denver Gold Forum 2020
Slide 3: Forward statements
Forward statements This presentation has been prepared by St Barbara Limited (“the 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
Slide 4: Contents
Contents • We are St Barbara • Safety • FY20 in review • Operations & Growth Projects o Atlantic Gold o Gwalia o Simberi • Exploration • Outlook 3 / Denver Gold Forum 2020
Slide 5: We are St Barbara. A growing gold company with a global outlook
We are St Barbara. A growing gold company with a global outlook. An ASX 200 company, our gold mining operations are located in Australia, Canada and Papua New Guinea. As we operate our business and care for our people, we are guided by our five commitments and values-led culture. At St Barbara, doin
Slide 6: We are guided by our five commitments and our values-led culture
We are St Barbara We are guided by our five commitments and our values-led culture SAFETY EMPOWERED PEOPLE STRONGER RESPECTING THE GROWING ALWAYS DIVERSE TEAMS COMMUNITIES ENVIRONMENT SUSTAINABLY Zero harm is always We are an employer We strive to help our We are committed to Growing our business ou
Slide 7: We have improved our safety record and managed COVID-19 risks
We have improved our safety record and have proactively managed the risks that COVID-19 presents The TRIFR of 3.0 at the end of June Total Recordable Injury Frequency Rate (TRIFR)1 FY20 corresponds to 16 low severity injuries in the last 12 months & 3 months recordable injury free 5.0 LTIFR2 of 0.4
Slide 8: We have shown solid performance in FY20 with a healthy growth pipeline ahead
We have shown solid performance in FY20 with a healthy growth pipeline ahead Improved safety record Significant free cash flow from operations Continued focus on productivity improvements An employer of choice with a caring, diverse and inclusive culture Maintained A$0.08 annual dividend Progressed
Slide 9: Snapshot of St Barbara (SBM.ASX)
Snapshot of St Barbara (SBM.ASX) - A global ASX 200 gold producer Market Market Capitalisation1 A$2.4 B @ A$3.37/share (US$1.7 B) Outstanding shares1 704 M Liquidity2 6 M/day (0.8%) Financial FY20 EPS3 A$0.18 (US$0.12) St Barbara has a strong balance sheet supported FY20 total dividend A$0.08 (US$0.
Slide 10: Maintained returns to shareholders since recommencing dividends in FY17
Maintained returns to shareholders since recommencing dividends in FY17 Fully franked final dividend of A$0.04 (US$ 0.03) per Dividends 154 149 share to be paid per ounce 135 (US$119) (US$100) 29 September 2020 produced (US$97) (A$/oz)1 81 (US$61) Dividend represents A$149 (US$100) per ounce of gold
Slide 11: We are forecasting sustained performance in FY21 across our assets
We are forecasting sustained performance in FY21 across our assets AISC1 (A$/oz) 1,369 1,4352 891 1,080 (US$919) (US$1,019) (US$691) (US$772) Production Atlantic Gold (koz) 403 FY20 saw high ore production tonnages at 382 370 – 410 362 Touquoy while permitting on expansion projects progress 135 95 -
Slide 12: Atlantic had a record performance in FY20 post acquisition
Atlantic had a record performance in FY20 post acquisition AISC (A$/oz) 1,0281 928 862 Record performance at Touquoy (US$623) (US$730) (US$616) Milled grade Work continues on the optimal (g/t Au) 1.36 1.34 1.33 sequencing of the suite of Atlantic Gold projects Consolidation of Touquoy ownership Prod
Slide 13: Gwalia continues to produce sustainably at lower grades
Gwalia continues to produce sustainably at lower grades AISC 1,485 1,4981 (A$/oz) 1,027 Record material movement achieved in 802 (US$997) (US$1,063) 785 Q4 FY20 supporting the delivery of full (US$735) (US$592) (US$622) year production guidance 1H FY21 will prioritise development to Mined Grade 12.5
Slide 14: Gwalia returning to higher levels of material movement
Gwalia returning to higher levels of material movement Mined grade (g/t Au) 12.5 10.7 11.1 7.7 Gwalia extension project ventilation 8.3 Reserve Grade shaft completed in August 2020 will Total material moved 6.3 g/t Au June 2020 (kt) support growth of total material 1,218 1,137 movement in FY21 1,126
Slide 15: Simberi delivered a solid FY20
Simberi delivered a solid FY20 AISC (A$/oz) 1,7531 1,631 1,187 1,068 1,162 (US$1,244) Steady production from remaining (US$1,095) (US$895) (US$831) oxide reserves (US$828) Milled grade (g/t Au) 1.64 Feasibility Study progressing to 1.19 1.35 1.17 1.25 determine expansion potential. Reserve Grade1 1.
Slide 16: Resources and Reserves significantly increased
Resources and Reserves significantly increased by Simberi sulphide exploration and Atlantic acquisition Resources Net +2.0 Moz primarily due to Atlantic Gold FY19 9.6 acquisition and Simberi Sulphide update 4.8 0.6 0.9 3.3 Gwalia decreased due to mining and sterilisation FY20 4.4 0.60.6 3.7 2.2 11.6
Slide 17: Continuing to invest in exploration with a healthy pipeline of targets
To maintain our future reserves, we are continuing to invest in exploration and have a healthy pipeline of targets Australia/PNG Atlantic Canada A$8 – $9 M (US$6 M) Leonora regional A$10 – $12 M (US$7 – 9 M) across four main camps in A$10 – $11 M (US$7 – 8 M) at Pinjin, Back Creek and the JVs Nova S
Slide 18: In FY21, we intend to drive transformative value improvements
In FY21, we intend to drive transformative value improvements across all aspects of our business Integrated company-wide transformation project underway Company Encompasses all aspects of our operations and capital projects Transformation Operating model to prioritise technical expertise and embed b
Slide 19: Operational overview Supplement
Operational overview Supplement 18 / Denver Gold Forum 2020
Slide 20: Sustainability highlights FY20
Sustainability highlights FY20 Greenhouse gas emission targets supporting Paris 2015 Continued engagement with traditional owners and support indigenous communities across all locations Trial of solar powered battery system underway at Atlantic Gold, seeking to drive to carbon neutrality Pla
Slide 21: At the forefront of inclusion and diversity in the minerals industry
We are at the forefront of inclusion and diversity in the minerals industry, ahead of much larger peers FY20 progress Women across our Australian workforce increased to 26% against targets Women across our PNG workforce increased to 15%, achieving 3-year target 33% of Directors are women1 100% of wo
Slide 22: Commitment to sustainable operations recognised by multiple awards
Our commitment to sustainable operations across our people & environment has been recognised by multiple awards .. and progressed on .. leading to recognition We’ve engaged our people… environmental initiatives through awards 71% favourable engagement New climate change targets: meeting our Australi
Slide 23: Consolidated production, costs and guidance summary
Consolidated production, costs and guidance summary Q1 Sep Q1 Sep Production Summary Year Q2 Dec Q3 Mar Q4 Jun Guidance Guidance FY20 FY20 FY20 Consolidated FY 19 FY20 FY20 FY20 FY20 FY21 AG full qtr AG SBM attrib. St Barbara’s financial year is Year to Qtr to Qtr to Qtr to Qtr to Qtr to Year to Yea
Slide 24: Guidance summary – exploration, capex, production profile
Guidance summary – exploration, capex, production profile Exploration Guidance FY21 A$ M Australia Leonora Region 8–9 FY21 Production (US$6 M) Indicative Quarterly Guidance Profile 10 – 11 Pinjin WA, Lake Wells WA, Back Creek NSW (US$7 – 8 M) 2–3 Tabar Island Group, PNG (US$1 – 2 M) 10 – 12 Nova
Slide 25: Project pipeline
Project pipeline Regional Nova Scotia KEY Moose River Corridor Canada Papua New Guinea Tabar Island Group (Au, Au-Cu) Australia Equity Investments Back Creek Leonora Province Greater Gwalia Beaver Dam Pinjin Cochrane Hill Peel Mining Aust Potash1 Fifteen Mile Stream Touquoy Mine4 (16%) (Au, EJV) Cat
Slide 26: FY20 financial summary
FY20 financial summary Solid NPAT, EBITDA and cash flow from operations A$406 million cash at bank and term deposits1 (US$280 M) A$307 million debt2 (US$212 M) Fully franked dividends for FY20 of AUD 8 cents per share (USD 5 cents) FY20 FY19 Change A$ M 339 275 EBITDA 3 23% (US$228 M) (US$19
Slide 27: FY20 Key Financial Metrics
Solid operational and financial performance, providing St Barbara with a platform to grow FY20 Key Financial Metrics EBITDA1 (A$ M) Underlying NPAT1 (A$ M) Cash flow from operating activities (A$ M) 339 108 280 (US$228 M) (US$73 M) (US$ 188 M) Up 23% since FY19 Down 24% since FY19 Up 16% since FY19
Slide 28: Balance sheet
Balance sheet US$ M Entitlement Offer (net receipts) Cash Debt 337 254 288 280 102 124 149 -1 -77 -169 -212 FY16 FY17 FY18 FY19 FY20 Jul 2020 27 / Denver Gold Forum 2020 Note: FX conversion as per page 2. 2020 debt position excludes A$28 M in lease liabilities, numbers may not add due to rounding
Slide 29: Hedging summary
Hedging summary as at 21 September 2020 Volume Price Delivery Financial Year Type Delivery Announced ounces $/oz schedule FY21 22,000 A$1,809 Forward Sep to Dec 2020 Monthly 26 Oct 2018 FY21 14,865 A$1,961 Forward Sep to Dec 2020 Monthly 24 Feb 2020 1 FY21 29,740 C$1,759 Forward Sep 2020 to Feb 2021
Slide 30: American Depositary Receipt Information (ADR: STBMY)
American Depositary Receipt Information (ADR: STBMY) Ticker code STBMY • St Barbara established an American Depositary Type Sponsored Level 1 ADR Receipt (ADR) programme in 1994 with The Bank of New York (now BNY Mellon) as depositary. CUSIP 852278100 • St Barbara’s ADR joined the NASDAQ Internation
Slide 31: Share register
Share register Institutional 82% Not analysed Australia 42% 11% USA 34% Non Institutional 7% UK 15% Europe 6% Rest of World 3% Location of institutional shareholders Analysis as at 14 August 2020 30 / Denver Gold Forum 2020
Slide 32: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck Associates Corp. 10.0% Canaccord Reg Spencer Citi Kate McCutcheon Vanguard Group 5.0% Credit Suisse Nick Herbert Institutional Shareholders 2 82% Global Mining Research David Radclyffe Shares on
Slide 33: Board of Directors
Board of Directors Tim Netscher Craig Jetson Chairman – Non Executive Managing Director and CEO Appointed Director February 2014. Appointed Chairman July 2015. Appointed February 2020 Mr Netscher is an experienced international mining executive with extensive Mr Jetson is a highly experienced career
Slide 34: Executive Leadership Team
Executive Leadership Team Craig Jetson Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer Appointed February 2020 Joined 2006 Mr Jetson is a highly experienced career mining executive, having most Mr Campbell-Cowan is a Chartered Accountant with 30 years’ experience in recently s
Slide 35: Ore Reserves Summary as at 30 June 2020
Ore Reserves Summary as at 30 June 2020 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) 1,583 8.0 409 7,824 5.9 1,483 9,407 6.3 1,892 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 36: Mineral Resources Summary at 30 June 2020
Mineral Resources Summary at 30 June 2020 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, (WA) 3,991 6.4 819 17,403 6.0 3,353 1,201 5.5 214 22
Slide 37: 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 38: 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 39: Investor Relations enquiries
Investor Relations enquiries Rowan Cole Company Secretary David Cotterell Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Scheduled ASX Announcements 21 October 2020 Q1 September 2020 Quarterly Report 38 / Denver Gold Forum 2020