St. Barbara Ltd. · ASX:SBM
St. Barbara — PNG Mining and Petroleum Conference 2015
43 slides from St. Barbara's conference presentation, Nov 24, 2015
Slide 1: Presentation to PNG Mining and Petroleum Conference
ASX Release / 24 November 2015 For personal use only Presentation to PNG Mining and Petroleum Conference Bob Vassie, Managing Director and CEO, will present to the PNG Mining and Petroleum Conference in Port Moresby today, hosted by the PNG Chamber of Mines and Petroleum. A copy of the presentation
Slide 2: Simberi Turnaround
BOB VASSIE, MANAGING DIRECTOR & CEO / 24 November 2015 For personal use only Simberi Turnaround PNG Chamber of Mines & Petroleum PNG Mining and Petroleum Conference, 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: Building a long term business in the Pacific: Contents
Building a long term business in the Pacific For personal use only Contents ˃ St Barbara Ltd ˃ Safety ˃ Simberi ˃ Turnaround ˃ PNG Contribution ˃ Future Opportunities ˃ Sulphides Project ˃ Exploration ˃ Gold Ridge Divestment 3/ PNG Mining & Petroleum Conference / 24 November 2015
Slide 5: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$636 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 349 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,033/oz ˃ A
Slide 6: Safety – Start safe stay safe
Safety – Start safe stay safe Simberi Total Recordable Strong improvement in audit results For personal use only Injury Frequency Rate1 5 4 3 2 1 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 14 14 15 15 15 15 15 15 15 15 15 15 Recordable injuries TRIFR 12mma Latest initiatives: ˃ Crisis drills
Slide 7: St Barbara in PNG National mine rescue competition
St Barbara in PNG National mine rescue competition National Mines Rescue Challenge held over 4 days in Madang, For personal use only Papua New Guinea, August 2015 Winners in 4 categories , including ‘Multi-Casualty Event’ and ‘Most Improved’ 6/ PNG Mining & Petroleum Conference / 24 November 2015
Slide 8: Simberi Operations Turnaround
Simberi Operations Turnaround For personal use only 7/ PNG Mining & Petroleum Conference / 24 November 2015
Slide 9: St Barbara FY15 Scorecard – Simberi a key element
St Barbara FY15 Scorecard – Simberi a key element Objective Result For personal use only Guidance Gwalia – production and AISC1 Exceeded Simberi – production and AISC1 Achieved – 100 koz p.a. run rate Achieved – cash flow positive by June 2015 Quarter2 Exceeded Corporate Cost reduction Achieved Boar
Slide 10: Share Price Reflects Turnaround
Share Price Reflects Turnaround ASX:SBM For personal use only $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 9/ PNG Mining & Petroleum Conference / 24 November 2015 Source: IRESS, close price, to 20 Nov 2015
Slide 11: Key Elements of the Turnaround
Key Elements of the Turnaround ˃ Decision to persevere For personal use only ˃ Care & Maintenance was considered ˃ Capital had been invested in the plant expansion ˃ New, very capable leadership team ˃ Existing capable Island and National workforce ˃ Realisation the new SAG mill would not deliver th
Slide 12: Simberi: Record production in consecutive quarters
Simberi: Record production in 4 consecutive quarters Q1 September FY16 Quarter: For personal use only AISC1 (A$/oz) 2,205 ˃ Record production for Q1 FY16 of 29,359 oz (Q4 FY15: 27,137 oz) 1,619 ˃ Gold production for the quarter comfortably exceeded the 100,000 oz 1,310 1,252 p.a. target run rate 1,1
Slide 13: Simberi: Increased gold production key driver in cash flow turnaround
Simberi: Increased gold production key driver in cash flow turnaround For personal use only Gold production Simberi Cash Contribution FY14 & FY15 FY15 12 10 29 27 23 2 17 13 13 12 11 -5 9 -10 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 FY16 FY15 FY15 FY15 FY15 FY16 Q1 Sep Q2 Jun Q3 Mar Q4 Jun Q1 Sep Q2
Slide 14: Simberi return on investment: It's a long way back
Simberi return on investment: It’s a long way back Simberi - segment EBIT1 Simberi - capex For personal use only FY13 – FY15 FY13 – FY15 7 47 32 9 -197 FY13 FY14 FY15 -247 A$M FY13* FY14* FY15 A$M *Includes impairment losses comprising FY13: A$200M FY14:A$215M 1. Non- IFRS measure. Refer appendix So
Slide 15: Simberi Contribution
Simberi Contribution For personal use only 14 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 16: Simberi Contribution
Simberi Contribution For personal use only 15 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 17: Simberi Operations Economic Contribution FY15
Simberi Operations Economic Contribution FY15 Salaries PGK million For personal use only FY15 FY14 Island Residents 10 12 Nationals 19 22 Total 29 34 Purchases within PNG (food and materials) 51 61 Local Area compensation payments and support 0.8 0.4 Royalties (2.0% of gold revenue) 4.8 2.7 MRA Levy
Slide 18: Simberi: Employment
Simberi: Employment For personal use only Providing jobs and training Total Simberi Employees The Company directly employs approximately 600 PNG Nationals covering a diverse range of employment & training Gwalia Processing plant Gwalia Gwalia –– Underground Underground mining mining Truck Truck oppo
Slide 19: Local Contractor employment and Community programs
Local Contractor employment and Community programs Landowner contractors: ˃ There are over 21 Landowner For personal use only businesses providing civil and mining/ore haulage, camp services ˃ annual spend exceeds 12 million kina Right: Landowner contractors completing church meeting room Gwalia Pr
Slide 20: Recent Community Health Initiatives
Recent Community Health Initiatives In a small Island environment, Simberi can and does For personal use only have a significant positive influence on health and well-being, including: ˃ First PNG Anti Malaria program (PIMI) ˃ Complete measles vaccination program ˃ Australian Doctors International t
Slide 21: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide For personal use only Simberi – Sorowar pit – 13 Aug 2015 (oxide ore being mined, exposing the sulphide wall behind.) ˃ Sulphide mining at Simberi potentially extends life (15 years +) based on existing reserve, open at depth1 ˃ Simberi oxide mine life ~4 years1 ˃ O
Slide 22: Simberi Sulphide Study
Simberi Sulphide Study ˃ A prefeasibility study (PFS) to process sulphide ore is underway. For personal use only ˃ The plan indicates that a phased cut over to sulphide processing, including a period of processing both sulphides and oxides would be optimal. This is due to areas of oxide reserves lyi
Slide 23: Exploration
Exploration For personal use only 22 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 24: Pigibo North, Simberi ML
Pigibo North, Simberi ML 136 For personal use only Diamond drilling completed at Pigibo North on 20th October Pigibo North: • 13 holes (SDH335 to SDH347) completed for 779.3m; results returned for first 7 holes; significant intercepts include1: • SDH336: 28m @ 0.9 g/t Au, from 14m • SDH339: 8m @ 1.4
Slide 25: Pigibo North, Simberi ML
Pigibo North, Simberi ML 136 For personal use only Trenching finished at Pigibo North in late October Pigibo North: • Final trench (SIMTR953) completed for 7 samples covering 35m; significant results include: • SIMTR953: 10m @ 0.8 g/t Au1 1. New results since September 2015 Quarterly Report. Refer t
Slide 26: Patan, Simberi ML
Patan, Simberi ML 136 For personal use only Diamond drilling completed at Patan on 6th November Patan: • 8 Holes (SDH348 to SDH355) completed for 503.5m; depth of weathering varies between 12m and 36m down hole • Assay results expected mid December 25 / PNG Mining & Petroleum Conference / 24 Novembe
Slide 27: Banesa Au-Cu Prospect – EL609
Banesa Au-Cu Prospect – EL609 For personal use only Banesa Porphyry Au-Cu Project: • ~9 line km of mapping completed; trenching and mapping to be finalised in early December • To date 108 trenches (TABTR064 to TABTR174) completed • TABTR168 significant results1 include: • 30m @ 1.2 g/t Au • 20m @ 1.
Slide 28: Banesa Au-Cu Project – EL609 – historic drilling
For personal use only Banesa Au-Cu Project – EL609 – historic drilling Banesa Porphyry Au-Cu Project: • 1996 – Nord completed 1 diamond hole BA001 for 384m1 • 2009 - Barrick Gold completed 6 diamond holes (BND2 to BND7) for 2,625m1 • Intersected Au-Cu alkaline porphyry style mineralisation • Best In
Slide 29: Conclusion
Conclusion ˃ Cash generating gold operation For personal use only ˃ Very strong improvement year on year across the whole operation ˃ Processing throughput ˃ Mining rate ˃ Costs drastically reduced, still with room to improve ˃ Strong loyalty to the local community ˃ Community programs in education,
Slide 30: Gold Ridge (Solomon Islands) Divestment
Gold Ridge (Solomon Islands) Divestment For personal use only RC TO UPDATE 29 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 31: Questions?
Questions? For personal use only 30 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 32: Appendices
Appendices For personal use only Near shore sedimentation sampling at Simberi Photo: George Samson 31 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 33: Simberi production summary ($AUD)
Simberi production summary ($AUD) Production Summary Q3 Mar Q4 Jun Q1 Sep Simberi FY15 FY15 FY16 Total ore & waste mined kt 1,618 1,882 2,606 For personal use only Ore mined kt 460 725 896 Grade g/t 1.38 1.28 1.22 Ore milled kt 750 768 859 Grade g/t 1.1 1.3 1.3 Recovery % 83 86 84 Gold production oz
Slide 34: Ore Reserves & Mineral Resources at June 2015
Ore Reserves & Mineral Resources at 30 June 2015 ˃ Ore Reserves at Simberi are 53% of St Barbara total For personal use only Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.16 Leonora, 9.22 WA 47% Simberi, 5.16 PNG 4.02 53% FY 14 FY 15 Mineral Resources Ore Reserves 1. Refer ASX announce
Slide 35: Competent Persons Statement
Competent Persons Statement For personal use only 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 Musta
Slide 36: 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 37: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary E: info@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: SBM 36 / PNG Mining & Petroleum Conference / 24 November 2015
Slide 38: Exploration Tables / November 2015
Exploration Tables / 24 November 2015 Table 1: Significant Intercepts – Pigibo North, ML136 - Simberi Island, Papua New Guinea For personal use only Down-hole Dip/ Total Mineralised Intersection Hole Id North East RL Azimuth Depth Lode Gold From Interval grade m m g/t Au SDH335 209654 43802 189.0 -5
Slide 39: SIMBERI - JORC Code, 2012 Edition – Table
SIMBERI - JORC Code, 2012 Edition – Table 1 Contents For personal use only Drilling: Section 1 Sampling Techniques and Data Section 2 Reporting of Exploration Results Trenching: Section 1 Sampling Techniques and Data Section 2 Reporting of Exploration Results Drilling - Section 1 Sampling Techniques
Slide 40: For personal use only
Criteria Commentary Location of data points All Simberi Island collars were surveyed by in-house surveyors using DGPS using Tabar Island Grid (TIG) which is based on WGS84 ellipsoid and is GPS compatible (RC holes reported in this period are still For personal use only pending pickup by dGPS). Tat
Slide 41: For personal use only
Criteria Commentary Relationship between Down hole length is reported for all holes; true width is not known as the orientation of the orebody is not mineralisation widths fully understood. For personal use only and intercept lengths Diagrams Diagrams show all drill holes material and immaterial
Slide 42: For personal use only
Criteria Commentary Data spacing and Trench data spacing is irregular and broad spaced. distribution For personal use only Orientation of data in Where preceding surface mapping and sampling of trenches has contributed to understanding of relation to geological outcropping geological structures,
Slide 43: For personal use only
Criteria Commentary Relationship between Trench intercepts are sampled along the length of the trench and are reported for all trenches; true width mineralisation widths is not reported. For personal use only and intercept lengths Diagrams Diagrams show all trenches material and immaterial to Ex
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