26 slides from St. Barbara's investor presentation, Oct 24, 2007
Slide 1: Equity Raising Presentation
ASX Shareholders Report St Barbara For personal use only Equity Raising Presentation We attach a presentation being given to potential investors, in the context of the recently announced equity raising. Ross Kennedy General Manager Corporate Services/Company Secretary 24 October 2007 St Barbara Limi
Slide 2: Building a Big Future
For personal use only Building a Big Future Mr Eduard Eshuys, Managing Director and CEO 24 October 2007
Slide 3: Important notice and disclaimer
2 Important notice and disclaimer For personal use only This presentation was prepared exclusively for the benefit of this persons to whom it is presented or transmitted, and is for the confidential use of those persons only. This presentation It includes certain statements, estimates and projection
Slide 4: Today's agenda
3 Today’s agenda For personal use only 1. Today’s announcements • September quarter results • Equity raising 2. Overview of St Barbara 3. Upcoming milestones 4. Funding position 5. Summary
Slide 5: 1. Today's announcements
4 For personal use only 1. Today’s announcements
Slide 6: September 2007 quarterly activities report
5 September 2007 quarterly activities report For personal use only Recent outstanding drilling results at Tower Hill Favourable drilling results from the Marvel Loch underground mine and Nevoria at Southern Cross - supporting mine life extensions at Southern Cross Gold production for the Septe
Slide 7: Equity raising
6 Equity raising For personal use only St Barbara is undertaking an equity raising • To raise approximately A$100 million Institutional placement Share Purchase Plan Proceeds to be used to fund • Development and exploration of Tower Hill • Expansion of Southern Cross • Completion of developm
Slide 8: 2. Overview of St Barbara
7 For personal use only 2. Overview of St Barbara
Slide 9: Overview of St Barbara
8 Overview of St Barbara For personal use only Successful Australian explorer and gold producer Full upside exposure to gold price increase and protected downside Unique land bank of 18,000 square kilometres Substantial reserve and resource base Production for FY08 forecast at 175koz Ann
Slide 10: St Barbara – geographic profile
9 St Barbara – geographic profile For personal use only
Slide 11: Our current WA interests
10 Our current WA interests For personal use only A large world class land bank of 7000+ sq km Only 30% of Southern Cross & Leonora land effectively explored historically Operations and community infrastructure in place Spare capacity to allow for production expansion Well established regu
Slide 12: Corporate strategy
11 Corporate strategy For personal use only “To produce 1 million ounces of gold per annum and have reserves of 10 million ounces by the end of 2010” This is expected to be achieved by • Maximising the returns and potential from existing assets and operations • Focusing on further development and
Slide 13: Exploration strategy
12 Exploration strategy For personal use only Many areas under explored because • Mining in 1980s based on A$400/oz (US$360)* gold price and high cost plants • Drilling often only to shallow depths of 100m • Overburden made geological interpretation difficult • New technology and concepts Drilli
Slide 14: Recent achievements
13 Recent achievements For personal use only Exploration • Gold resources increased from 7.1moz to 8.4moz • Gold reserves increased from 1moz to 2.4moz • High average grade of reserves at 6g/t • Reserve delineation cost A$22/oz (US$20)* • Substantial recent exploration success at Tower Hill Prod
Slide 15: 3. Upcoming milestones
14 For personal use only 3. Upcoming milestones
Slide 16: Objectives for next months
15 Objectives for next 12 months For personal use only Produce 175koz pa @ A$500-A$525/oz (US$445–US$465/oz)* cash operating cost at Southern Cross Establish reserves at Tower Hill • Revised Resources and Reserves Statements scheduled to be completed as at the close of the December quarter Com
Slide 17: Expanding production to 110-120koz / quarter
16 Expanding production to 110-120koz / quarter For personal use only 140 120 Production (Koz) 100 80 60 40 Target 20 0 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Sep- Dec- 06 06 06 06 07 07 07 08 08 Southern Cross Gwalia Leonora Open Pits
Slide 18: Longer term objectives
17 Longer term objectives For personal use only Increase production to 1moz • Expand Southern Cross and Leonora production to 600koz pa • Remaining growth through further discovery and/or acquisitions Increase gold reserves to 10moz Increase profitability Reduce cash costs to A$450/oz (US$40
Slide 19: St Barbara in 2010
18 St Barbara in 2010 For personal use only Production of 1moz gold pa Reserves of 10moz gold
Slide 20: 4. Funding position
19 For personal use only 4. Funding position
Slide 21: Capital structure
20 Capital structure For personal use only Market cap - A$561 million Ordinary shares listed on ASX – (US$500 million)* ticker “SBM” 837m ordinary shares Convertible Notes listed on Singapore Stock Exchange 18.5m options (unlisted) Substantial shareholders A$100 million Convertible Not
Slide 22: Funding plan – to FY09
21 Funding plan – to FY09 For personal use only FY08 FY09 Total A$ million A$ million A$ million Cash and investments* 113 113 Capital raising 100 - 100 Operating cashflow# 50 110 160 Debt facility - 50 50 Debt / asset facility 10 10 20 Future additional 273 170 443 cash available * As at 30 June 20
Slide 23: Funding requirements – to FY09
22 Funding requirements – to FY09 For personal use only FY08 FY09 Total A$ million A$ million A$ million Southern Cross development 21 17 38 Gwalia development 107 54 161 Tower Hill exploration and 10 15 25 development Other exploration / development 31 38 69 Working capital / other 34 35 69 Total 2
Slide 24: 5. Summary
For personal use only 5. Summary 23
Slide 25: Summary
24 Summary For personal use only Attractive valuation on a per ounce of gold resource basis Full exposure to upside in gold price and protected on the downside Highly experienced Board and senior management team Large and unique portfolio of tenements Two production centres Upside from g
Slide 26: Thank you
For personal use only Thank you 25