St. Barbara Ltd. · ASX:SBM
St. Barbara — Mines and Money London 2019
51 slides from St. Barbara's conference presentation, Nov 25, 2019
Slide 1: Presentation to Mines and Money London
ASX Release / 25 November 2019 Presentation to Mines and Money London Bob Vassie, Managing Director and CEO, will present to Mines and Money London this week. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1900 ASX: SBM Media Relations Mr Tim Duncan GRACosway with Hinton
Slide 2: Mines and Money London 2019
BOB VASSIE, MANAGING DIRECTOR & CEO / 25-27 November 2019 Mines and Money London 2019
Slide 3: Forward Statements
Forward Statements This presentation has been prepared by St Barbara Limited (“the Company”). The material Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore contained in this presentation is for information purposes only. This presentation is not an Reserves 2012 Edit
Slide 4: Contents
Contents • Safety • FY19 Review • Overview & Outlook • Operations & Growth o Atlantic Gold o Gwalia o Simberi • Exploration • Conclusion Board of Directors inspecting Paste Aggregate Fill (PAF) project at 1,420 mbs, Leonora, October 2019 3 / Mines and Money London 25-27 November 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Market Cap1 A$1.8 B @ A$2.55/sh (US$1.2 B) Shares1 699 M Liquidity2 8.0 M/day (1.1%) FY19 EPS3 A$0.27 (US$0.19) FY19 Total Dividend A$0.08 (US$0.06) Cash and cash deposits4 A$76 M (US$51 M) Debt9 A$112 M (US$76 M) Ore R
Slide 6: St Barbara today
St Barbara today Leonora (Gwalia mine) Simberi Atlantic Gold • Gwalia underground mine • Open pit mine • Open pit mine • FY 20F production 175-190 koz • FY 20F production 110 – 125 koz • FY 20F production 95–105 koz • 2.1 Moz Ore Reserve • 0.3 Moz oxide and 1.4 Moz • 1.9 Moz Ore Reserve (open at dep
Slide 7: FY20 Outlook
FY20 Outlook AISC1 (US$/oz) Consolidated 900 705 725 652 635 624 FY15 FY16 FY17 FY18 FY19 FY20F Gold Production 403 400 377 381 362 328 135 100 110 116 80 142 118 248 267 265 268 220 183 FY15 FY16 FY17 FY18 FY19 FY20F Guidance Gwalia Simberi Atlantic Gold Total mid-points PAF chamber prior to constr
Slide 8: St Barbara Safety Focus – Start Safe, Stay Safe
St Barbara Safety Focus – Start Safe, Stay Safe St Barbara Safety Focus Total Recordable Injury Frequency Rate1 9 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 6 5 5 1.9 1.9 1.6 4 2 2 1 St Barbara WA Gold WA Metal Q1 FY20 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Safety re
Slide 9: Paying Fully Franked Dividends
Paying Fully Franked Dividends Dividends Paid • FY19 total dividend 3.0% Annual 2.1% 2.2% A$0.08 per share Yield1 (%) • FY19 dividend yield 2.2%1 Cumulative • Cumulative dividend A$0.26 dividend payments of A$0.26 since (A$) dividends recommenced in A$0.18 FY17 Total $0.12 Interim $0.04 Total $0.08
Slide 10: Global Gold All-in Sustaining Cost Curve CY2019
Global Gold All-in Sustaining Cost Curve CY2019 • Atlantic is one of the lowest cost gold mines globally 3,000 All-In Sustaining Cost1 (US$/oz) 2,500 Atlantic Gwalia Simberi FY19A US$616/oz FY19A US$735/oz FY19A US$831/oz 2,000 FY20F US$649/oz FY20F US$994/oz FY20F US$957/oz Spot gold price US$1,500
Slide 11: Atlantic Gold acquisition completed July 2019
Atlantic Gold acquisition completed 19 July 2019 Touquoy pit, Atlantic Gold Operations. 10 / Mines and Money London 25-27 November 2019
Slide 12: Transformational Acquisition Consistent with our Strategy
Transformational Acquisition Consistent with our Strategy "Stronger for Longer" Diversify • Substantial, low cost production in preferred mining jurisdiction • FY20F production of 95 – 105 koz at an AISC of A$900-955/oz production base (US$630 – 670/oz)1, with pathway to 200+ koz pa 2 Sustainabl
Slide 13: Atlantic Gold Production and Cost Profile
Atlantic Gold Production and Cost Profile Q1 Sep FY20 performance AISC (US$/oz) • Production 22.3 koz full quarter3 707 602 682 665 • AISC1 A$970/oz (US$665/oz) 503 • Hurricane Dorian and detox tank maintenance interrupted processing Production for approx. one week (koz) FY20 guidance 22.3 • 95 – 10
Slide 14: Atlantic Gold Reserve and Resource Development
Atlantic Gold Reserve and Resource Development • Scope to expand production 0 5 10 km beyond existing 12 year reserve life1 • Expansion potential across all pits, with focus on targets along strike between Touquoy and Fifteen Mile Stream • The 149 Deposit was the first discovery of the Corridor Regi
Slide 15: Gwalia
Gwalia Aerial view of Leonora Operations 14 / Mines and Money London 25-27 November 2019
Slide 16: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile Gwalia production year on year Mined Grade 12.5 (g/t Au) 11.1 9.3 10.7 8.8 8.2 8.4 8.9 6.9 8.0 5.7 6.3 Reserve Grade 6.4 g/t Au June 2019 267 268 Production 265 248 (koz) 214 220 190 185 183 175 AISC (US$/oz) 863 882 131 700 735 109 592 622 83 570 Loader und
Slide 17: Gwalia Extension Project and Total Material Moved
Gwalia Extension Project and Total Material Moved Gwalia total material moved (kt) Gwalia Extension Project (GEP) 1 260 256 262 267 252 • Commenced 27 March 2017, includes: 69 82 106 115 • 2,800 m of 5 metre diameter ventilation 78 shafts • Underground paste aggregate fill (PAF) 164 158 146 156 152
Slide 18: Gwalia Extension Project | Ventilation Plan
Gwalia Extension Project | Ventilation Plan For details refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 17 / Mines and Money London 25-27 November 2019
Slide 19: Simberi
Simberi Jason Eade, Manager Fixed Plant Maintenance, viewing the Ropecon Simberi Operations, July 2019 18 / Mines and Money London 25-27 November 2019
Slide 20: Simberi Production, Cost and Grade Profile
Simberi Production, Cost and Grade Profile Mined Grade (g/t Au) 1.43 1.23 1.26 1.25 1.13 1.16 1.00 Reserve Grade 1.3 g/t Au June 2019 AISC1 2,111 (US$/oz) 142 135 125 116 110 110 Production (koz) 80 941 958 1,218 895 828 831 44 FY14 FY15 FY16 FY17 FY18 FY19 FY20F Simberi processing plant. Photo by A
Slide 21: Simberi Sulphide | Potential long life mine extension
Simberi Sulphide | Potential long life mine extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 2.4 g/t Au, 3.3 Moz Sulphide Resource @ 1.6 g/t Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 22: Exploration | FY20 Guidance – US$14 to US$20 million
Exploration | FY20 Guidance – US$14 to US$20 million US$5 – US$6 million Leonora US$6 – US$8 million PNG • Shift in focus from Gwalia Deep Drilling to • Simberi Oxides/Sulphides and Porphyry region and Greater Gwalia US$8 – US$9 million Atlantic Gold Canada US$4 – US$5 million Pinjin, Lake Wells • M
Slide 23: Growth Pipeline
Growth Pipeline Atlantic Gold (Regional) Atlantic Gold (Moose River Corridor) Tabar Island Group KEY (Au, Au-Cu) Canada Papua New Guinea Back Creek Australia Equity Investments Atlantic Gold Leonora Province (Beaver Dam) Peel Mining Atlantic Gold Greater Gwalia (16%) (Cochrane Hill) Catalyst Metals
Slide 24: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Gwalia and Simberi mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements. Atlantic Go
Slide 25: Australian Gold Peer Comparison – NPAT
Australian Gold Peer Comparison – NPAT1 • St Barbara ranks strongly with Australian gold peers on NPAT … 300 Bubble size = FY19 gold production 250 200 EVN NPAT1 (A$M) RRL 150 SBM SAR 100 NST OGC 50 RSG 0 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 1. Australian gold peers (market cap A$1.0
Slide 26: Australian Gold Peer Comparison – ROME
Australian Gold Peer Comparison – ROME1 • … and on return on market value 10% Bubble size = FY19 gold production SBM 8% NPAT / Market Cap.1 (%) RRL 6% OGC 4% SAR EVN 2% RSG NST 0% 0.0 2.0 4.0 6.0 8.0 10.0 Market Capitalisation (A$B) 1. Return on Market Value of Equity. Australian gold peers (market
Slide 27: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic & Corporate Governance Performance Statement • Core values and Code of Conduct • Disclosure guided by GRI • Ethical business conduct standards • Manage for long term growth • Av
Slide 28: Strategy for the Next 5 Years – Stronger for Longer
Strategy for the Next 5 Years – “Stronger for Longer” Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in all phases of the pipe
Slide 29: Conclusion
Conclusion • Current operations continue to perform well, with record production and cash flow from Simberi in FY19 • FY20F guidance of 380-420 koz of gold • Dividend paying, cumulative A$0.26 per share since restarting in FY17 • Strong financial position: – A$76 M (US$51 M) cash at bank1, – A$112 M
Slide 30: Appendices
Appendices Aircore drilling, Pinjin, Western Australia. Photo by Kiran Hudson 29 / Mines and Money London 25-27 November 2019
Slide 31: FY19 Review
FY19 Review •FY19 production 362 koz @ AISC1 of A$1,080/oz Operational •Simberi record production and cash flow for FY19 excellence •Continued successful Gwalia deep drilling and exploration • NPAT of A$144 million (FY18: A$227 M) Financial • FY19 operating cash contribution2 of A$289 M (FY18: A$338
Slide 32: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q1 Sep Guidance Consolidated FY19 FY19 FY 19 FY20 FY20 FY20 AG full quarter AG SBM attributable St Barbara’s financial year Qtr to Qtr to Year to Qtr to Qtr to Year to is 1 July to 30 June 31 Mar 2019 30 Ju
Slide 33: Segment Profit and Cash Contribution From Operations
Segment Profit and Cash Contribution From Operations Reportable segment profit before tax1 Cash contribution from operations1, 2, 3 A$M A$M 249 255 220 219 244 198 186 162 90 103 78 83 34 70 51 33 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Leonora Simberi Leonora Simberi 1. Results for Leonora include
Slide 34: Simberi – Continues to deliver
Simberi – Continues to deliver • Cash contribution1 since the November 2016 decision to retain the asset is A$246 million • Operation has continued to set new records Quarterly cash contribution from Simberi A$M Decision to retain 34 Average since Q3 FY17 = $22 M 24 24 23 23 23 21 22 19 20 20 12 12
Slide 35: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 34 / Mines and Money London 25-27 November 2019
Slide 36: Exploration Activities
Exploration Activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 35 / Mines and Money London 25-27 November 2019
Slide 37: Gwalia Animation
Gwalia Animation Animation of Gwalia underground mine available at https://youtu.be/D3uo4FKCi2I 36 / Mines and Money London 25-27 November 2019
Slide 38: Gwalia Deeps | 1620 – 1700 Lode Schematic
Gwalia Deeps | 1620 – 1700 Lode Schematic 37 / Mines and Money London 25-27 November 2019 Reproduced from Denver Gold Forum Presentation, 16 September 2019
Slide 39: Atlantic Gold Exploration
Atlantic Gold Exploration • Atlantic Gold has 21 exploration projects in Nova Scotia, with >1,900km2 of exploration tenements • Key exploration targets are near current deposits, the Moose River corridor program and south-west region • Limited drilling has occurred to date, planning now to increase
Slide 40: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • Representation of women on the board at 33%1 • Representation of women in leadership roles at 29%2 •
Slide 41: Reserves and Resources as at 30 June 2019 + Atlantic Gold
Reserves and Resources as at 30 June 2019 + Atlantic Gold Ore Reserves Mineral Resources 12.0 2.4 Atlantic 9.2 Gold 3.7 4.2 Simberi 5.9 1.9 3.9 1.7 1.7 Leonora 5.5 5.4 2.2 2.4 FY 18 FY 19 FY 18 FY 19 Total Note: For full details refer to ‘Ore Reserves and Mineral Resources Statement 30 June 2019’ re
Slide 42: Hedging Summary at 22 November 2019
Hedging Summary at 22 November 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) FY20 10,868 A$1,750 November and December 2019 7 & 19 Feb 2018 and (39,132 of initial 50,000 ounces delivered year to date since 1 July 2019) 7 Mar 2018 FY20 24,000 A$1,809 Januar
Slide 43: Ore Reserves Summary as at 30 June 2019 + Atlantic Gold
Ore Reserves Summary as at 30 June 2019 + Atlantic Gold Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 2,220 8.0 568 7,915 5.9 1,506 10,135 6.4 2,073 Tower Hill, (WA) - - - 2,572 3.7 306
Slide 44: Mineral Resources Summary at 30 June 2019 + Atlantic Gold
Mineral Resources Summary at 30 June 2019 + Atlantic Gold Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 5,034 7.3 1,183 17,527 6.0 3,39
Slide 45: Institutional Share Register
Institutional Share Register Not analysed Australia 11% Institutional 38% 84% Non Institutional USA 32% 5% UK 9% Other 10% Not analysed 11% Data as at 15 October 2019 44 / Mines and Money London 25-27 November 2019
Slide 46: Substantial Shareholders and Broker Coverage
Substantial Shareholders and Broker Coverage Substantial Shareholders 1 Broker Research Coverage Van Eck Associates Corp. 12.1% Argonaut James Wilson Vanguard Group 5.0% Canaccord Reg Spencer Institutional Shareholders 2 84% Citi Kate McCutcheon Shares on issue 699M Credit Suisse Mike Slifirski Amer
Slide 47: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014. Appointed Chairman July 2015. Appointed July 2014 Mr Netscher is an experienced international mining executive with extensive Mr Vassie is a mining engineer with over 30 ye
Slide 48: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer Appointed July 2014 Joined 2006 Mr Vassie is a mining engineer with over 30 years’ international mining Mr Campbell-Cowan is a Chartered Accountant with 30 years’ experience industry experienc
Slide 49: 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 50: 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 51: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Board visit to Fifteen Mile Stream Project, Nova Scotia, Canada (September 2019). L to R: David Moroney (Non-Executive Director), Kerry Gleeson (Non-Execut