St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (November 2012)
114 slides from St. Barbara's corporate update, Nov 5, 2012
Slide 1: Presentation to analysts attending the Pacific 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 analysts attending the Pacific Operations Attached is a presenta
Slide 2: Presentation to Analysts: St Barbara's Pacific Operations
For personal use only Presentation to Analysts S Barbara’s Pacific St f Operations 05 November 2012 Alistair Croll Chief Operating Officer Pacific Operations Site Tour - November 2012 1
Slide 3: Forward statements
Forward statements For personal use only Thi presentation This i has h been b preparedd by b St S Barbara B b Li i d (“Company”). Limited (“C ”) The Th This presentation Thi i h has b been prepared d by b the h Company C b basedd on information i f i material contained in this presentation is for in
Slide 4: Company Overview
For personal use only Company Overview Pacific Operations Site Tour - November 2012 3
Slide 5: Combination with Allied Gold
Combination with Allied Gold For personal use only • On 7 September 2012, St Barbara acquired 100% of Allied Gold • The acquisition is consistent with the strategy of the last 3 years to grow long term EPS • Immediately NAV accretive and EPS accretive after first year of combination for St Barbara s
Slide 6: Three diverse and established gold operations
Three diverse and established gold operations; all underpinned by long life ore reserves and For personal use only each prospective for growth Reserves: 5.6 Moz Simberi Resources: 16.6 Moz Simberi 2 FY13F production : 435 koz • Expanding oxide plant • FY13F: 70 – 80 koz1 Gold Ridge • 9+ year mine li
Slide 7: Strong balance sheet
Strong balance sheet For personal use only • Issued Shares: 488M2 • Market Cap: A$927M3 • At combination date: p • Total debt expected to be approx. pp A$195M1 • Net debt expected to be < A$100M1 • Gearing < 20%1,4 • Gearing reduces significantly over next two years • Upside U id exposure to t gold
Slide 8: St Barbara, a leading Australian listed mid tier gold company
St Barbara, a leading Australian listed mid tier gold company For personal use only #1 Resources Position (Moz)1 #1 Reserves Position (Moz)1 Reserves Grade 16.6 13.9 8.0 12.0 10.3 9.8 55.7 5.3 53 8.0 6.0 9.0 6.5 6.2 4.4 5.0 4.5 4.3 3.7 3.6 3.1 2.8 4.0 3.2 3.0 2.9 6.0 2.1 1.4 2.4 0.4 2.0 1.3 0.8 3.0
Slide 9: Gold operations
For personal use only Gold operations Pacific Operations Site Tour - November 2012 8
Slide 10: Gwalia Mine, Leonora, WA
Gwalia Mine, Leonora, WA ‐ high quality, long life, rich gold deposit For personal use only • Ore O Reserves R off 6 6.9 9MMt at 8 8.7 7 g/t Au containing 1.9 Moz of gold [1] • Mineral Resources extended to 1,840 mbs, open to north, south and at depth • Indicative 9+ year mine life based on Ore Rese
Slide 11: Simberi, Papua New Guinea
Simberi, Papua New Guinea Growing gold production, highly For personal use only prospective Western Pacific Rim • 2.0 Moz Ore Reserves1 • 6.5 Moz Mineral Resources1 • Anticipated A ti i t d 70‐80 70 80 koz k for f FY13 • Ore bodies not closed off • Oxide expansion to be completed in FY13 lifts produ
Slide 12: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands Long life operation with near mine For personal use only potential • 1.1 1 1 Moz M OreO reserves1 • 2.5 Moz Mineral Resources1 • Targeting T ti production d ti off 105 kkoz pa • 9+ year mine life • Significant near mine potential • Mine established and ramping up • Cost r
Slide 13: What to expect
For personal use only What to expect Pacific Operations Site Tour - November 2012 12
Slide 14: Plans for Simberi and Gold Ridge
Plans for Simberi and Gold Ridge – improving operating capabilities For personal use only Phase h 1 – FY2013 2013 • Complete integration by 31 December 2012 • Includes strategic review of Simberi and Gold Ridge • Update guidance after strategic review • Simberi and Gold Ridge g FY13 pperformance obj
Slide 15: Plans for Gold Ridge: improving operating capabilities
Plans for Gold Ridge – improving operating capabilities For personal use only • Resources • Review of all grade control and short term models ‐ enhance drilling programmes • Mining • Review mine planning • Improving mining efficiencies • Additions to fleet to improve outputs and options for ore deli
Slide 16: Plans for Gold Ridge: improving operating capabilities
Plans for Gold Ridge – improving operating capabilities For personal use only • Commercial C i l • Review of supply chain practices • Review of management g accountingg p practices and cost controls ‐ remove costs from the business • Organisational structures • Review of of, and recruiting for for,
Slide 17: Plans for Simberi: improving operating capabilities
Plans for Simberi – improving operating capabilities For personal use only • Resources • Review of all grade control and short term models ‐ enhance drilling programmes • Mining Mi i • Review mine planning • Improving mining efficiencies – drill and blast • Increase in mining rates to supply Oxide E
Slide 18: Plans for Simberi: improving operating capabilities
Plans for Simberi – improving operating capabilities For personal use only • Commercial • Review of supply chain practices – logistics • Charters arrangement review • Review R i off managementt accounting ti practices ti and d costt controls t l ‐ remove costs from the business • Organisational stru
Slide 19: Diversified project pipeline spanning exploration to gold production
Diversified project pipeline spanning exploration to gold production For personal use only P j Project Pipeline Pi li P fil 1 P d i Profile Production SULLIVAN’S YILGARN Gold production (koz) EAST LACHLAN EXPLORATION CREEK TARGETS 600 SOUTHERN GWALIA REGION TABAR ‐ TATAU CROSS 500 ADVANCED SIMBERI N
Slide 20: Investment opportunity
Investment opportunity For personal use only • Track T k record d off delivering d li i production d i growth h • Track record of converting production to cash and profit • Pathwaysy identified to improve p performance p of Pacific assets • Growth opportunities identified • Strong balance sheet to p
Slide 21: Appendices
Appendices For personal use only Pacific Operations Site Tour - November 2012 20
Slide 22: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Broker Research Coverage • Approved Depositary Receipts (ADR) Argonaut Securities Troy Irvin are trading in USA Baillieu Ray Chantry Bell Potter Stephen Thomas Citi Daniel Seeney CLSA James Stewart Deutsche Bank Chris Te
Slide 23: FY13 guidance
FY13 guidance Australian li operations i For personal use only King of Gwalia Total the Hills Leonora Leonora Leonora Gold production koz 175 190 175‐190 55 60 55‐60 230 250 230‐250 Cash operating cost $/oz 670‐700 840‐870 710‐745 Capex $M 45‐50 20‐25 65‐75 Pacific Operations Site Tour - November 20
Slide 24: Board of Directors
Board of Directors S J Colin Wise | Chairman — Non Executive Mr Wise is an experienced corporate lawyer, consultant and company director with significant expertise in the mining and exploration industry and resources, energy and corporate sectors. He spent 24 years with WMC, including 10 years as Ge
Slide 25: Executive Management
Executive Management St Barbara LIMITED Tim Lehany Managing Director and Chief Executive Officer Tim joined St Barbara in March 2009, and has over 20 years extensive operating experience with a number of mining companies, including Newcrest Mining Limited and WMC Limited. Tim is a mining engineer, a
Slide 26: Financial highlights in FY12
Financial highlights in FY12 For personal use only Record profit and cash flow • Statutory profit up 90% to $130M • Underlying NPAT [[1]] up 140% to $131M • Cash flow from operations up 115% to $222M • Cash flow after funding capex $117M [2] • EPS up from $0.21 in 2011 to $0.40 in 2012 Investment in
Slide 27: Australian Production Summary
Australian Production Summary For personal use only Production d Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Consolidated FY12 FY12 FY12 FY12 FY12 Gold Production Gwalia oz 40,306 46,007 43,881 54,340 184,534 King of the Hills oz 9,343 14,107 17,110 16,393 56,953 Southern Cross oz 20,959 23,501 24,
Slide 28: Australian Mineral Resources Statement
Australian Mineral Resources Statement ‐ As at 30 June 2012* For personal use only Category g y Measured Indicated Inferred Total Tonnes Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Region Project (k) Gwalia Deeps 4,684 5.6 842 8,965 9.5 2,727 1,601 7.0 360 15,250 8.0
Slide 29: Australian Ore Reserves Statement
Australian Ore Reserves Statement As at 30 June 2012* For personal use only C t Category P Proved d P b bl Probable T t l Total Region Project Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Leonora Gwalia Deeps 1,279 8.5 348 5,601 8.8 1,577 6,880 8.7 1,925 Tower Hill* 2,699 3.8 32
Slide 30: South West Pacific Mineral Resources Statement
South West Pacific Mineral Resources Statement ‐ As at 31 December 2011 For personal use only Mineral Resources as at 31 December 2011 Mt Au g/t Moz Gold Ridge Measured 7.33 1.54 0.36 Indicated 38 06 38.06 1 22 1.22 1 49 1.49 Measured & Indicated 45.39 1.27 1.85 Inferred 15.15 1.28 0.62 Simberi Meas
Slide 31: South West Pacific Ore Reserves Statement
South West Pacific Ore Reserves Statement ‐ As at 31 December 2011 For personal use only O R Ore Reserves as att 31 December D b 2011 Mt A g/t Au /t M Moz Gold Ridge Proved ‐ ‐ ‐ Probable 20.29 1.73 1.13 Total Reserves 20.29 1.73 1.13 Simberi Proved 10.55 1.06 0.36 Probable 31.91 1.63 1.67 Total Res
Slide 32: Competent Persons Statement
Competent Persons Statement For personal use only The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Phillip Uttley is a full‐time emp
Slide 33: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only We supplement pp our financial information reporting p g determined under International Financial Reporting p g Standards ((IFRS)) with certain non‐IFRS financial measures, including cash operating costs. We believe that these measures provide meaning
Slide 34: Non IFRS Measures: Underlying Profit Per Ounce
Non IFRS Measures Non‐IFRS For personal use only Underlying Profit Per Ounce FY 12 FY 11 FY 10 FY 09 FY 08 Underlying net profit after tax A$000 130,782 54,431 14,547 209 (29,291) Gold production oz 338,879 258,474 231,018 238,900 157,477 Underlying Profit Per Ounce A$/oz 386 211 63 1 ‐186 Source: F
Slide 35: Investor Relations Enquires
Investor Relations Enquires For personal use only Ross K R Kennedy d Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au ross kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: S
Slide 36: Gold Ridge
For personal use only Gold Ridge Wayne Hatton-Jones General Manager, Gold Ridge Operation Analyst Site Visit 5-7 November 2012 1
Slide 37: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited ((“Company”) 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 rel
Slide 38: Strategic Overview
Strategic Overview For personal use only • Immediate focus on improving operating consistency and reliability, reducing costs • Maximise resource base at existing deposits • Invest appropriately in processing capacity to capture economies of scale and maximise NPV • Explore regionally to leverage ex
Slide 39: Gold Ridge History
Gold Ridge History For personal use only • First serious exploration started in 1939 • Mining lease granted 12 March 1997, covering 30km2, plus special prospecting licence SPL194 covering 130km2 • Previous owners included Ross Mining and Delta Gold • 1998 to June 2000, operational mine produced 210,
Slide 40: Gold Ridge Overview
Gold Ridge Overview For personal use only Mine Life Minimum 9 years[1] Quarterly Production (kozpa) Capex $150m refurbishment 20 19 19 completed on time on budget Plant 2.5 Mtpa CIL plant 10 Mining Open Pit. Strip Ratio 1.5:1 2 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Production Building toward 105 kozpa
Slide 41: Safety
Safety For personal use only The company is committed to achieving a safe and healthy work environment for all of its employees, contractors, partners and visitors. 2012 Hours 2012 LTIs Gold Ridge 4,382,690 2 A att 31 S As September t b 2012 Pacific Operations Site Tour – November 2012 6
Slide 42: Human Capital
Human Capital For personal use only • Construction to steady state • Stable management team • Roster 16/12 Category December March September 2011 2012 2012 Expats 39 29 23 DCE’s 100 89 71 National 858 807 641 Total 967 925 735 Pacific Operations Site Tour – November 2012 7
Slide 43: Mining Overview
Mining Overview For personal use only Pacific Operations Site Tour – November 2012 8
Slide 44: Site Layout
Site Layout For personal use only Pacific Operations Site Tour – November 2012 9
Slide 45: Life of Mine Pit Shells
Life of Mine Pit Shells For personal use only Pacific Operations Site Tour – November 2012 10
Slide 46: Ore Reserves – December 2011
Ore Reserves – December 2011 For personal use only Gold Ridge Mineral Reserves Mt Au g/t Moz Proven ‐ ‐ ‐ Probable 20.29 1.73 1.13 Total Reserves 20.29 1.73 1.13 Based on gold price of US$850/oz and mill throughput of 2.5 mtpa • LOM 9+ years as at 31 December 2011 • Average grade over LOM is 1.70 g/
Slide 47: Operations Flow Sheet
Operations Flow Sheet For personal use only Pacific Operations Site Tour – November 2012 12
Slide 48: Mining Fleet
Mining Fleet For personal use only EQUIPMENT # Cat 740 7 Cat 775 6 Excavators (385 & 345) 5 Graders 3 Dozers 4 Pacific Operations Site Tour – November 2012 13
Slide 49: Processing
For personal use only Processing Pacific Operations Site Tour – November 2012 14
Slide 50: Project History
Project History For personal use only 1997 • Ross Mining had constructed the process plant to treat the oxidized Valahaichichi mine. The Plant capacity was 2.5Mtpa using the current crush, mill, CIL and tailings tank. • The gravity circuit from Ross Mining used a Knelson concentrator and gravity tab
Slide 51: Gold Ridge Performance
Gold Ridge Performance For personal use only Recovery Tonnes Milled (%) (000) 76 74 539 70 70 72 72 473 64 460 446 435 417 55 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Pacific Operations Site Tour – November 2012 16
Slide 52: Typical Recoveries by area
Typical Recoveries by area For personal use only Gold Recovery by Ore Type (%) Pit Oxide Transitional Fresh Valehaichichi 90 73 73 Namachamata 91 68 68 Kupers 89 81 81 Dawsons 95 85 85 Pacific Operations Site Tour – November 2012 17
Slide 53: Exploration
For personal use only Exploration Pacific Operations Site Tour – November 2012 18
Slide 54: Gold Ridge Pacific Rim Geological Setting
Gold Ridge g Pacific Rim Geological Setting For personal use only North Pacific Operations Site Tour – November 2012 19
Slide 55: Gold Ridge Guadalcanal Island Geology
Gold Ridge g Guadalcanal Island Geology For personal use only Pacific Operations Site Tour – November 2012 20
Slide 56: Gold Ridge Local Geological Setting
Gold Ridge g Local Geological Setting For personal use only L Local l Geology G l • typical low sulphidation epithermal gold deposit • known mineralisation extends over 1.5km x 2.5 km • hosted by Gold Ridge Volcanics (orange) and structurally controlled • open at depth • potential for Cu-Au Cu Au po
Slide 57: Gold Ridge Deposits Geology
Gold Ridge g Deposits Geology For personal use only Shallow NE dipping largely epiclastic sedimentary package – Boulder and pebble conglomerates/breccias – Sand and siltstone – Minor claystone – Occasional diorite dykes y Structures – Bedding parallel and steep dipping veins – NNE,, N and NW faults
Slide 58: Gold Ridge Deposits Conceptual Model
Gold Ridge g Deposits p Conceptual Model For personal use only Pacific Operations Site Tour – November 2012 23
Slide 59: Gold Ridge Deposits Mineral Resources
Gold Ridge g Deposits p For personal use only Mineral Resources (depleted 31 December 2011) G ld Ridge Gold Rid Mineral Mi l Resources R (ALD Ann Rpt 2011) Mt A g/t Au /t M Moz Measured 7.3 1.54 0.36 Indicated 38.1 1.22 1.49 Measured and Indicated 45.4 1.27 1.85 Inferred 15.2 1.28 0.62 S ti 40075N S
Slide 60: Gold Ridge and Solomon Is Opportunities
Gold Ridge g and Solomon Is Opportunities For personal use only • Extend E t d and dddefine fi kknown resources ffor currentt project j t (resource ( replacement) • Locate additional resources for expanded project • Under-explored area’s within ML • Unexplored p area’s within Mt Vunusa SPL • Test fo
Slide 61: Gold Ridge Drilling Recent Activity
Gold Ridge g Drillingg Recent Activity (Sep 12 Qtr) For personal use only Drilling: • GDC028 to GDC043 completed • GDC044 in progress GDC035 GDC032 Pacific Operations Site Tour – November 2012 26
Slide 62: Gold Ridge Opportunities: Under-explored Charivunga
Gold Ridge g Opportunities pp For personal use only Under‐explored ‐ Charivunga C N D A B 175m A C D B Oblique Section through GDC003 +/- 25m Level Plan 175mRL Pacific Operations Site Tour – November 2012 27
Slide 63: Gold Ridge Opportunities: Under-explored Region
Gold Ridge Opportunities Under-explored - Region So ~ 4 & E S 8 8950000" " = aoe D Disc " = ait Pacific Operations Site Tour — November 2012 28
Slide 64: Exploration Programme Fundamentals
Gold Ridge g Opportunities pp For personal use only Exploration Programme ‐ Fundamentals Mapping • All new exposures, particularly Namachamata, Kupers and Dawsons deposit and access tracks Re-logging • Detailed re re‐logging logging of available CVG core holes to build deposit 3D model and refine dr
Slide 65: Environmental Management
For personal use only Environmental Management Pacific Operations Site Tour – November 2012 30
Slide 66: Environmental Objectives
Environmental Objectives For personal use only • EEnsure the h project j operates in i accordance d with i h good d iindustry d practice, i the GRML Environmental Management and Monitoring Plan (EMMP) and in compliance with environmental conditions prescribed by the Solomon Islands Government • Main
Slide 67: Compliance
Compliance For personal use only • GRML complies with environmental commitments to the following: • The Gold Ridge Mining Agreement (1996) • Special Conditions of the Mining Lease (1997) • The original mine EIS (1996) • Environment E i Management M Monitoring M i i Plan Pl (EMMP) is a document that
Slide 68: Routine Activities
Routine Activities For personal use only • Water W t quality lit monitoring it i • Erosion and sediment control • Vegetation and landscape clearance permitting • Revegetation • Waste management • Pest and weed control • Environmental incident investigation • Environmental audits/inspections • Provid
Slide 69: Major Improvements in 2011 and 2012
Major Improvements in 2011 and 2012 For personal use only Cyanide Management • All open water bodies are under 50ppm WAD which is International Cyanide Management Code (ICMC) compliant • Maintain an INCO CN Detox Plant which reduces CN to below 50ppm • CN storage facilities built to comply with ICMC
Slide 70: Major Improvements in 2011 and 2012
Major Improvements in 2011 and 2012 For personal use only Revegetation • Development of landscape and vegetation clearance p permit to ensure minimal disturbance • Revegetation activities at all relocation sites to stabilize sediments • In pit progressive top top‐soiling soiling and revegetation act
Slide 71: Competent persons statement
Competent persons statement For personal use only The h information f in this h report that h relates l to Exploration l Results l andd Minerall Resources in Australia l is based b d on information f compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallur
Slide 72: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager g Corporate p Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 37 Pacific Operations Site Tour – November 2012
Slide 73: Simberi Operations
For personal use only Simberi Operations Peter Du Plessis General Manager, Simberi Operation Analyst site Visit 5-7 November 2012 1
Slide 74: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited ((“Company”) 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 rel
Slide 75: Simberi History
Simberi History For personal use only Date Event 1983 First exploration started by Kennecott Dec 1996 ML 136 is granted to Simberi Gold Company Ltd, a subsidiary of Nord Pacific 2003 Allied Gold acquires Nord Pacific and obtains 100% ownership of the project by 2005 2005 The Optimised Feasibility St
Slide 76: Human Capital
Human Capital For personal use only • Steady state • Stable management team • R t 16/12 Roster Category September 2012 Expats 17 National 267 Locals 349 Total 633 Pacific Operations Site Tour – November 2012 4
Slide 77: Safety
Safety For personal use only Simberi Si b i is i committed i d to achieving hi i a safef andd healthy h l h workk environment for everyone associated with us • Recent Fatality: 8th September 2012 • LTI Free Days 37 days • Previous Best • LTI Free Days up to 29/07/12 849 days • LTI Free Man Hours Ach
Slide 78: Reserves and Resources
Reserves and Resources For personal use only Simberi Mineral Resources[1] Mt Au g/t Moz Measured 9.58 1.11 0.34 I di t d Indicated 72 73 72.73 1 28 1.28 2 99 2.99 Measured and Indicated 82.32 1.26 3.33 Inferred 101 58 101.58 0 97 0.97 3 18 3.18 Simberi Mineral Reserves[1] Mt Au g/t Moz Proven 10.55
Slide 79: Mining Fleet and Mining Rate
Mining Fleet and Mining Rate For personal use only EQUIPMENT NUMBER Cat 740 11 Haulmax 4 Excavators (385 & 345) 5 Graders 2 Dozers 7 Total Average TPD 14,000 Pacific Operations Site Tour – November 2012 7
Slide 80: Processing
Processing For personal use only Pacific Operations Site Tour – November 2012 8
Slide 81: Simberi Mining and Milling
Simberi Mining and Milling For personal use only Tonnes Mined (000) 1110 991 1007 1003 887 874 717 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 T Tonnes Mill Milled d (000) 563 529 509 482 464 421 369 *ARC ARC unavailable for 0 Days during the Sept Quarter Quarter. Mar‐11 Jun‐11 Sep‐11 Dec‐11 Ma
Slide 82: Simberi grade and production
Simberi grade and production For personal use only Grade (g/t) Au 1.14 1.13 1.11 1.07 1.06 1.06 1.03 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Gold Produced (koz) 18.1 15.9 15.1 14.6 13.7 12.4 10.9 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Pacific Operations Site Tour – November 2012 1
Slide 83: Simberi Community
Simberi Community For personal use only • P Population l ti ~2000, ~2000 including i l di approx. 800 local Simberi villagers • SGC employs more than 600 people, including 350 Simberi locals • Strong community support and engagement • 2.25% royalty, of which 2% goes to local community and local leve
Slide 84: Exploration
For personal use only Exploration Pacific Operations Site Tour – November 2012 12
Slide 85: Simberi Locality Map
Simberi Locality Map For personal use only Simberi Tatau Tabar Pacific Operations Site Tour – November 2012 13
Slide 86: Geology - Tabar Islands Group: Pacific Rim Geological Setting
Geology gy ‐ Tabar Islands Group p Pacific Rim Geological Setting For personal use only North Tectonic Elements of the SW Pacific (from Elsevier Publications) Pacific Operations Site Tour – November 2012 14
Slide 87: Geology - Tabar Islands Group: PACRIM Geological Setting
Geology gy ‐ Tabar Islands Group p PACRIM Geological Setting For personal use only Simberi SW Tatau Banesa Present day analogy: Rabaul Stratavolcano complex in marine environment, environment PNG Pacific Operations Site Tour – November 2012 15
Slide 88: Geology - Simberi Local Geological Setting
Geology gy ‐ Simberi Local Geological Setting For personal use only Epithermal Au ± Ag system • Strata-volcano with collapsed p caldera • Intruded by a sequence of alkali to intermediate rocks • Arc-parallel and arc normal structural intersections control andesite and breccia emplacement • Broad are
Slide 89: Geology - Simberi Mineral Resources
Geology ‐ SimberiMineral Resources ((as at 31 December For personal use only 2011) SIMBERI Mineral Mi l Resources R Mt A g/t Au /t M Moz Measured 9.6 1.11 0.34 Indicated 72.7 1.28 2.99 Measured and Indicated 82.3 1.26 3.33 Inferred 101.6 0.97 3.18 B A B A Example Section : PIGIPUT Deposit 44300mE Pa
Slide 90: Exploration Opportunities
Exploration p Opportunities pp Simberi and Tatau / Big Tabar For personal use only • Extend and define known resources for current project (resource replacement) • Locate additional resources for expanded project • Under-explored areas within the ML136 • Unexplored areas within the EL609 on Simberi
Slide 91: Simberi – Work Programme
Simberi – Work Programme ML136 – Level 2 (Oxide + Sulphide) For personal use only Oxide 28 Targets Sulphide ( Targets)) (52 Area 2 4 3 A 8 Area 8 7 4 7 Area 9 5 5 42 10 Area 1 1 9 6 3 1 10 6 3 2 Pacific Operations Site Tour – November 2012 (Simberi Aero-TEM Z-Ch06) 19
Slide 92: Simberi - Oxide expansion feed
Simberi ‐ Oxide expansion feed For personal use only Botlu SW Pacific Operations Site Tour – November 2012 20
Slide 93: Geology – Tatau / Big Tabar Is
Geology – Tatau / Big Tabar Is For personal use only Mt LETAM – 2011 EXPLORATION Drilled Q4 2010 Results rec’d rec d Q1 2011 3 holes / 738m core drilled Best intercept: 37m @ 0.14g/t Au from 75m (TTD015) 2012 EXPLORATION TARGET - BANESA Mt TIRO – 2011 EXPLORATION Best intercept: 69m @ 0.83g/t Au and
Slide 94: EL609 – Work Programme
EL609 – Work Programme g Phase 1 (to 5/05/2013) For personal use only • Confirmed at Banesa Access • Negotiations in progress at Tatau SW (conditions verbally agreed) • Negotiations in progress at Simberi (8% achieved) • Grid soil sampling in progress at Big Tabar (Banesa) Sampling • Stream sediment
Slide 95: Environmental Management
For personal use only Environmental Management Pacific Operations Site Tour – November 2012 23
Slide 96: Environmental Objectives
Environmental Objectives For personal use only • Ensure the project operates in accordance with good industry practice, the SGCL Environmental Management and Monitoring Plan (EMMP) and in compliance with the environmental conditions prescribed by the PNG Government. • Maintain a transparent dialogue
Slide 97: Compliance
Compliance For personal use only • SGCL complies li with ith th the following f ll i environmental commitments: Environmental Permits: • Water W extraction: i WE‐L3 WE L3 (15) • Water discharge: WD‐L3(36). • Environmental Management and Monitoring Plan. • The Environment Management Monitoring Plan (
Slide 98: Routine Activities
Routine Activities For personal use only • The Environment Management Monitoring Plan (EMMP) is a document that prescribes the monitoringg and management g that is required q to meet the legislative requirements of the Environmental Permits • Water quality monitoring (streams, process and marine) •
Slide 99: Routine Activities
Routine Activities For personal use only • Waste W t managementt • Pest and weed control • Environmental incident investigation g • Environmental audits/inspections • Coral reef monitoring • Marine fish tissue monitoring • Community awareness • Report to the SGCL management, management PNG Governmen
Slide 100: Major Improvements in 2011 and 2012
Major Improvements in 2011 and 2012 For personal use only Cyanide Management • No N open watert bodies b di containing t i i CN. CN • No CN detected above 0.04ppm WAD in marine waters. • Installation I t ll ti off INCO CN detox d t plant l t andd ttailings ili thickener to improve CN management (sch
Slide 101: Major Improvements in 2011 and 2012
Major Improvements in 2011 and 2012 For personal use only Revegetation • Progressive rehabilitation and regeneration of closed pit sites, windrows and exploration sites such as Samat and Sorowar pits • Continual propagation and hardening of native plant species at the SGCL nursery, for transplanting
Slide 102: Simberi Oxide Plant Expansion & Power Station Replacement
For personal use only Simberi Oxide Plant Expansion & Power Station Replacement Alistair Croll Chief Operating Officer Pacific Operations Site Tour – November 2012 30
Slide 103: Simberi Projects
Simberi Projects For personal use only FY 2013 Q1 Q2 Q3 Q4 OUTCOME Project Simberi Lifts annual milling to 3.5Mtpa 3.5 Mtpa and output to ~95 kozpa Simberi Lowers energy HFO Cost , Saving $30‐$50/oz Simberi BFS Sulphide Pacific Operations Site Tour – November 2012 31
Slide 104: Simberi Projects
Simberi Projects For personal use only • IIncrease th the plant l t th throughput h t ffrom nominal 2.5Mtpa to 3.5Mtpa • Gold production will increase from current ~72,000 ozpa to ~95,000 ozpa • Accelerate royalties commensurate with increased throughput • Strengthens the business • Increase in work
Slide 105: Oxide Plant Expansion Scope
Oxide Plant Expansion Scope For personal use only • Upgrade of rope conveyor to 600tph • New ore reclaimer at Pigiput • New 2.5MW SAG mill,, scats crusher & associated classification • 2 new 2,500m3 leach tanks • New 26m diameter tails thickener • New tails cyanide dilution circuit • Replacement hea
Slide 106: Oxide Plant Site Layout
Oxide Plant Site Layout For personal use only Pacific Operations Site Tour – November 2012 34
Slide 107: Process Flow Sheet
Process Flow Sheet For personal use only Pacific Operations Site Tour – November 2012 35
Slide 108: Power Conversion Scope
Power Conversion Scope For personal use only • Current contract (Aggreko) diesel fired power supply lapses in 2012 • Replaces Contractor power station with HFO station, t ti C Company OOwned d& Operated • Wartsila HFO fired gensets ‐ 7x1.5MW sets • Installed power 10.5MW, continuous base load 6MW (e
Slide 109: Power Conversion
Power Conversion For personal use only • Power station P t ti commissioning i i i on LFO (diesel) December 2012 • Gensets delivered (7 off) and placed (4 off) • 2 x2,400t HFO storage tanks completed • Switchgear and transformers installed • Aggreko to be demobilised December 2012 • First st HFO O de
Slide 110: Simberi – Possible Sulphide Project
Simberi – Possible Sulphide Project For personal use only Pacific Operations Site Tour – November 2012 38
Slide 111: Simberi Projects
Simberi Projects For personal use only • Discovered in mid 1980’s with hole P1 intersecting 5m@183g/t Au from 193m at Pigiput Ridge • Main sulphide mineralisation occurs at Pigiput with other mineable sulphide ores from all the other known deposits • Ore is refractory with gold contained within pyri
Slide 112: Possible Sulphide Project
Possible Sulphide Project For personal use only Pacific Operations Site Tour – November 2012 40
Slide 113: Competent persons statement
Competent persons statement For personal use only The h information f in this h report that h relates l to Exploration l Results l andd Minerall Resources in Australia l is based b d on information f compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallur
Slide 114: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager g Corporate p Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 42 Pacific Operations Site Tour – November 2012