St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (September 2010)
38 slides from St. Barbara's roadshow presentation, Sep 1, 2010
Slide 1: Chief Financial Officer's Presentation to Analysts and Investors
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 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 Chief Financial Officer’s Presentation to Analysts and Investors We attach a cop
Slide 2: Delivering Financial Flexibility for Growth
For personal use only Delivering Financial Flexibility for Growth Garth Campbell-Cowan Chief Financial Officer 1 September, 2010
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, sec
Slide 4: What we'll cover today
What we’ll cover today For personal use only 1. WHO WE ARE 2. FINANCIAL RESULTS 3. CASH FLOWS 4. FINANCIAL POSITION 5. LOOKING FORWARD 6. DRIVING GROWTH Delivering Financial Flexibility for Growth – 1 September, 2010 3
Slide 5: Who we are
For personal use only Who we are Delivering Financial Flexibility for Growth – 1 September, 2010 4
Slide 6: Who we are
Who we are For personal use only Stock code: SBM Gold production FY10 231 kozs ASX market cap: 30/08/10 A$674m (.345c) 30/06/09 A$342m Ordinary shares: 1,953m Significant holders: M&G Group 15.19% Franklin Templeton 6.0% Hunter Hall 5.1% Producing operations 2 Ore Reserves1 2.9moz Mineral Resources
Slide 7: Strategic Objective
Strategic Objective For personal use only St Barbara is a successful and growing Australian gold company. Our strategic objective is to achieve production at the rate of over 500,000 ounces of gold per annum by 2014, through - Continued operational excellence - Exploration success - Successful M&A D
Slide 8: Experienced executive
Experienced executive For personal use only Managing Director and Chief Executive Officer Executive General Manager Corporate Services/Company Secretary Tim is a mining engineer with extensive operating experience over the past twenty years with number of Ross has more than 24 years of experience in
Slide 9: Delivering results
Delivering results For personal use only • CONSISTENT OPERATIONAL PERFORMANCE Operational capability strengthened Five quarters of delivery to guidance Improved safety performance TRIFR reduction from 14.8 to 11.4 • FINANCIAL RESTRUCTURING COMPLETED Strong cash position of $102.2M at 30 Jun
Slide 10: Operations delivering reliably
Operations delivering reliably For personal use only WE DELIVERED TO GUIDANCE FOR FY10 Actual Guidance Gold production ozs 231,018 205,000 - 240,000 Cost per ounce $/oz 790 745 - 820 • Leonora 686 630 - 700 • Southern Cross 883 840 - 930 Capital expenditure $m 88.1 85 - 95 FIVE CONSECUTIVE QUATRERS
Slide 11: FY10 Financial Results
For personal use only FY10 Financial Results Delivering Financial Flexibility for Growth – 1 September, 2010 10
Slide 12: Delivering improved results
Delivering improved results For personal use only UNDERLYING RESULTS 30 June 10 30 June 09 $’000 $’000 EBITDA contribution – Leonora 61,481 42,010 EBITDA contribution – Southern Cross 43,802 48,738 105,283 90,748 EBITDA – group 73,163 52,445 EBIT – group 16,654 6,150 Underlying net profit after tax
Slide 13: Key drivers for improved NPAT
Key drivers for improved NPAT For personal use only Delivering Financial Flexibility for Growth – 1 September, 2010 12
Slide 14: Significant items
Significant items For personal use only Significant Items 30 June 10 30 June 09 $’000 $’000 Net realised/unrealised (loss)/gain on gold options (19,513) 1,515 Write down of listed investments - (6,192) Gain on sale of investments 2,724 - Restructuring provision - (1,957) Redundancy payments - (3,877
Slide 15: Impairment write down June 2010
Impairment write down 30 June 2010 For personal use only Marvel Loch Underground, Southern Cross Operations 1. Drilling at depth has intersected pegmatite intrusions in the southern lodes. Mining below the pegmatite is not expected to be economically feasible. 2. The SXO base case consists of a 22 m
Slide 16: Depreciation & amortisation
Depreciation & amortisation For personal use only 30 June 2010 30 June 2009 $’000 $’000 Total depreciation & amortisation - Leonora 28,189 17,533 - Southern Cross 22,819 24,176 - Other 5,501 4,586 Total (before impairment write-offs) 56,509 46,295 • Mine development and mine infrastructure are capit
Slide 17: Mark to market valuation
Mark to market valuation For personal use only 30 June 2010 Put and Call Options valuation Time value $19.5 (Profit & Loss expense) Intrinsic value $19.2 (Balance Sheet Reserve) $38.7M Price protection facility in place for King of the Hills gold production - Secures minimum price for 250,000 ozs of
Slide 18: Cash flows
For personal use only Cash flows Delivering Financial Flexibility for Growth – 1 September, 2010 17
Slide 19: Record net operating cash flows
Record net operating cash flows For personal use only A$M 90 80 81.8 70 60 50 40 30 20 25 24.3 10 0 2008 2009 2010 Delivering Financial Flexibility for Growth – 1 September, 2010 18
Slide 20: Cash flows composition
Cash flows composition For personal use only 30 June 2010 30 June 2009 ($’000) ($’000) EBITDA - underlying 73, 163 52,445 Operating cash flows below EBITDA: Interest paid (4,829) (7,653) Interest received 4,575 2,940 Other finance costs (1,786) (1,415) Exploration expenditure – included in investing
Slide 21: Capital Expenditure
Capital Expenditure For personal use only Movement in Capital Expenditure 200,000 180,000 164,741 160,000 140,000 120,000 103,118 A$'000 100,000 80,000 60,000 40,000 20,000 - FY2009 UG Mine PP & E Mines Under KotH Exploration FY2010 Development Construction pre-commissioning expenditure Notes: PPE:
Slide 22: Financial position
For personal use only Financial position Delivering Financial Flexibility for Growth – 1 September, 2010 21
Slide 23: Net Assets – increasing cash
Net Assets – increasing cash For personal use only 400 350 300 102 54 250 36 A$M 200 Cash 150 100 50 0 2008 2009 2010 Delivering Financial Flexibility for Growth – 1 September, 2010 22
Slide 24: Total debt decreasing
Total debt decreasing For personal use only A$M 120.0 100.0 80.0 60.0 100.9 97.5 40.0 20.0 15.9 - 2008 2009 2010 Delivering Financial Flexibility for Growth – 1 September, 2010 23
Slide 25: Financial flexibility
Financial flexibility For personal use only • Strong cash position at 30 June 2010 – $102.2M • Low gearing giving financial flexibility • Performance bond facility $25m refinanced to release cash backing • Gold option facility negotiated – collar in place for 250koz of King of the Hills production •
Slide 26: Mitigating price risk for non-core project
Mitigating price risk for non-core project For personal use only King of the Hills Hedge Profile 80 Cap 1,615 60 A$/oz kozs 40 Floor 1,425 20 0 1,235 Q2 - FY11 FY12 FY13 FY14 H1 - FY15 Collar Structure Put Strike Price - A$ 1425/oz Call Strike Price - A$ 1615/oz Delivering Financial Flexibility for
Slide 27: Significant increase in Ore Reserves
Significant increase in Ore Reserves For personal use only • As at 30 June 2010 – Ore Reserves totalled 15mt @ 5.8 g/t Au for 2.9 moz contained gold – Mineral Resources 47mt @ 5.0 g/t Au for 7.7 moz contained gold • Ore Reserves increase 13% net of production – Gwalia Probable Ore Reserves increased
Slide 28: Improving the quality of our Resources and Reserves
Improving the quality of our Resources and Reserves For personal use only 12,000 7.00 6.00 10,000 5.00 8,000 4.00 g/t Au Koz 6,000 3.00 4,000 2.00 2,000 1.00 0 0.00 2005 2006 2007 2008 2009 2010 Ore Reserve Ounces Mineral Resource Ounces Ore Reserve Grade Mineral Resource Grade Note: Tarmoola open p
Slide 29: Tax losses available
Tax losses available For personal use only As at 30 June 2010: • Carried forward tax losses (estimate) ~ $332M • Unbooked tax asset ~ $71M Notes: The proposed Minerals Resource Rent Tax does not apply to St Barbara Delivering Financial Flexibility for Growth – 1 September, 2010 28
Slide 30: Looking forward
For personal use only Looking forward Delivering Financial Flexibility for Growth – 1 September, 2010 29
Slide 31: Forward looking objectives
Forward looking objectives For personal use only • Revitalised operations • Continued Operational • Strengthened financial position Excellence • Review of organisation • Discovery and Growth Success capability and performance • Growth through M&A completed • Reinvigorated Discovery & Growth team Rev
Slide 32: Guidance Table
Guidance Table For personal use only GUIDANCE FY11 FY12 FY13 Gold production (koz) - Gwalia 145 - 160 190 - 210 190 - 210 - SXO 110 - 125 65 - 80 - - King of the Hills1 10 50 - 60 50 - 60 - TOTAL 265 - 295 305 - 350 240 - 270 Cash operating cost (A$/oz) -Gwalia 630 - 680 500 - 550 530 - 580 -SXO 950
Slide 33: Driving growth
For personal use only Driving growth Delivering Financial Flexibility for Growth – 1 September, 2010 32
Slide 34: Maximising our current projects
Maximising our current projects For personal use only EXISTING ASSETS EXPLORATION ACQUISITION Leveraging Value from Leonora • Production expected to grow to 200 to 250koz of gold per annum in FY12 • King of the Hills - gold production to commence June 2011 • Third party sources of ore to utilise mil
Slide 35: Investing in exploration
Investing in exploration For personal use only EXISTING ASSETS EXPLORATION ACQUISITION • Budget and resources expanded • Minimum exploration budget of $12m per annum in plan • Strategic land holding in Leonora and Southern Cross • Targets for potential discoveries identified • Drilling programs to t
Slide 36: Driving growth through acquisition
Driving growth through acquisition For personal use only EXISTING ASSETS EXPLORATION ACQUISITION • Criteria for growth established • Operating capability and capacity for growth developed • Financial capability strengthened Delivering Financial Flexibility for Growth – 1 September, 2010 35
Slide 37: Criteria that informs growth decisions
Criteria that informs growth decisions For personal use only Low cost of operation Minimum actual or potential annual production of 100,000 oz+ Minimum five years LOM from existing operations Identifiable potential for growth Advanced exploration prospects or gold producing asset Deliverin
Slide 38: Delivering Financial Flexibility for Growth
For personal use only Delivering Financial Flexibility for Growth Investor Relations Enquiries Ross Kennedy Executive General Manager, Corporate Services Xian Davies Senior Investor Relations Advisor Tel: +61 3 8660 1900 Email: xian.davies@stbarbara.com.au