St. Barbara Ltd. · ASX:SBM
St. Barbara — European Gold Forum 2017
52 slides from St. Barbara's conference presentation, Apr 4, 2017
Slide 1: Presentation to analysts and investors attending European Gold Forum
ASX Release / 4 April 2017 Presentation to analysts and investors attending European Gold Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending European Gold Forum this week. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 M
Slide 2: European Gold Forum
BOB VASSIE, MANAGING DIRECTOR & CEO 4 to 6 April 2017 European Gold Forum St Barbara – ASX 200 Australia / Pacific Gold Producer
Slide 3: Forward statements
Forward statements This presentation has been prepared by St Barbara Limited (“the Company”). The material This presentation has been prepared by the Company based on information available to it contained in this presentation is for information purposes only. This presentation is not an and has not
Slide 4: Outline
Outline > Introduction & overview > Recent history > Operations > Gwalia Mine, WA > Simberi Mine, PNG > Growth & exploration > Conclusion > Appendices 865 mbs Gwalia mine, 2017 (Scott Thomas) 3 / European Gold Forum | 4 to 6 April 2017
Slide 5: An introduction to St Barbara
An introduction to St Barbara A$1.2 billion (US$0.9 billion)1 Production & AISC ASX 200 gold producer and explorer US$/oz 1230 • Debt free6 • FCF Yield 24%2 838 • Positioned to grow 750 680 Production FY16A 387 koz @ AISC US$680/oz (first half) FY17F3 360 koz @ AISC US$750/oz 387 koz 368 377 360 Ass
Slide 6: Corporate Overview
Corporate Overview Papua New Guinea ASX 200 (ASX: SBM), est. 1969 Simberi Commodity Gold (Au) Market cap2 US$935 M @ US$1.88/sh (A$1.2B @ A$2.46/sh) Shares2 497 M Liquidity5 6 M/day (1.3%) Australia EPS6 US$0.25 Leonora Cash8 US$75 M (Gwalia mine) Debt Nil7 Ore Reserves (JORC) 1 4.0 Moz Mineral Reso
Slide 7: Continued safety success
Continued safety success Total Recordable Injury Frequency Rate1 Safety 9.0 > Record FY16 TRIFR of 2.1 > Record safety performance of 6.0 1.8 TRIFR1 in H1 FY17 5.0 4.1 > Overall winners for the second year running in Western Australia 2.1 1.8 Underground Mine Emergency Response Competition2 FY 12 FY
Slide 8: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (US$/oz) 0 St Barbara New Gold 200 Iam Gold Oceana Gold Resolute Acacia 400 Saracen Evolution B2 Gold Regis 600 800 Bubble size = Northern Star estimated production rate (koz p.a.) 1,000 0% 5% 10% 15% 20% 25% 30% 35% 40% FCF Yield (FCF/
Slide 9: St Barbara share price vs US$ gold
St Barbara share price vs US$ gold - June 2013 to present, % change 600% 500% Join ASX 200 400% Join ASX 300 ASX: SBM % 300% 200% Exit ASX 200 Exit ASX 300 100% US$ Gold % 0% US$325 M debt repaid Simberi cashflow +ve Gold Ridge sold Source: IRESS to close 15 Mar 2017 8 / European Gold Forum | 4 to 6
Slide 10: Consolidated production & costs, FY14 to present
Consolidated production & costs, FY14 to present AISC1 1,230 (US$2/oz) 838 (Guidance 750 mid point) 680 Production (koz) 387 368 377 9 370 Full Year 46 50 110 350 Guidance range 70 80 45 267 248 215 53 138 First half 0 FY14 FY15 FY16 FY17 Gwalia Simberi King of the Hills Gold Ridge Forecast 1. Non I
Slide 11: Cash contribution, every segment improved Y on Y
Cash contribution, every segment improved Y on Y Cash Contribution by Segment since FY14 34 Second half 25 235 186 134 125 First half -7 -64 (Simberi = Break even) -38 FY14 FY15 FY16 FY17 A$M Leonora (Gwalia) Simberi Gold Ridge ‘Cash contribution’ is a non-IFRS measure of segment operating cash cont
Slide 12: Debt free from March 2017
Debt free1 from March 2017 Net Cash / (Net Debt) 1 US$M US$M 100 US$ 75M 50 Net Cash ˃ Debt free1 US$ 22M 0 -11 ˃ Net cash position to -50 -68 grow in 2H FY17 -103 -100 Net Debt -145 ˃ US$325 million debt -150 -170 -207 repaid between -200 -238 June 2015 and -262 -250 -272 March 2017 -300 FY15 FY15
Slide 13: Cash and Debt FY15 to March 2017
Cash and Debt FY15 to March 2017 Debt, Cash Balance & Contribution from Operations 154 137 Cash Balance (A$)1 108 115 114 100 99 77 87 70 56 80 83 76 70 69 71 69 10 57 32 Cash Contribution (A$)4 0 -40 -53 -128 -168 -189 -216 -169 -249 Debt (US$)2 -271 -229 -248 -325 -325 -325 -299 Cash Contribution
Slide 14: Gwalia, Western Australia
Gwalia, Western Australia 13 / European Gold Forum | 4 to 6 April 2017
Slide 15: Gwalia | Profitably mined for over 100 years
Gwalia | Profitably mined for over 100 years > Ore body 3.5 km ‘straight line’ from surface > Herbert Hoover was the initial manager - later a US President (1929-1933) > Rare 100 years + deposit (Kalgoorlie Super Pit WA, Cripple Creek & Victor USA) 14 / European Gold Forum | 4 to 6 April 2017
Slide 16: Gwalia in St Barbara ownership
Gwalia in St Barbara ownership Mined Grade 9.3 (g/t Au) 8.8 8.9 8.2 8.4 6.9 Reserve Grade 6.3 5.7 8.3 g/t Au June 2016 267 260 248 (guidance mid point) 214 185 183 863 138 Production 131 1H FY17 (koz) 109 700 AISC 630 (US$/oz) 570 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 F FY17F AISC
Slide 17: Mining.com view of Gwalia
Mining.com view of Gwalia ‘10 mines still making good money if the gold price falls 50%’ 609 576 565 573 574 AISC 529 530 (US$/oz) 475 400 402 460 473 425 Production (koz) 260 267 196 161 166 127 46 www.mining.com/10-mines-still-making-good-money-if-the-gold-price-falls-50/?utm_source=digest-en-mini
Slide 18: Simberi, Papua New Guinea
Simberi, Papua New Guinea 17 / European Gold Forum | 4 to 6 April 2017
Slide 19: Simberi | Production & AISC
Simberi | Production & AISC All-in sustaining cost (US$/oz) 2,111 1,218 25 941 Guidance 1,064 mid-point 3,315 Mining Consecutive years of >50% improvement 2,670 Milling (kt) 110 1,714 100 Guidance mid-point 80 Production (koz) 53 44 1H FY17 FY 14 FY 15 FY 16 FY 17 F Milling equals processing through
Slide 20: Growth
Growth 19 / European Gold Forum | 4 to 6 April 2017
Slide 21: Gwalia Extension Project | Supports mining to 2,000 mbs
Gwalia Extension Project | Supports mining to 2,000 mbs Capex US$75 million in total (inc. ‘PAF’) Construction period 2.5 to 3 years (inc. 1 yr for ‘PAF’) Refer announcement 27 March 2017. Conceptual illustration only, studies underway will 20 / European Gold Forum | 4 to 6 April 2017 determine fina
Slide 22: Simberi Sulphide | potential long life mine extension
Simberi Sulphide | potential long life mine extension 1.3 Moz Sulphide Reserve @ 3.0 g/t Au, 3.6 Moz Sulphide Resource @ 1.7 g/t Au Simberi Sulphide PFS > Focused exploration for oxide and Capex US$100 million sulphide ore underway on nearby Tatau 130,000 ounces over 8 years Production (1 Moz Sulphi
Slide 23: Exploration | FY17 Guidance: US$14 to $17 million
Exploration | FY17 Guidance: US$14 to $17 million US$8-$9 million Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia + Province seismic US$6-$8 million greenfields (30% Pinjin WA, 70% PNG) ˃ Pinjin – large scale drill campaign ˃ Aerial survey Back Creek NSW ˃ Tatau Island (PNG) ˃ cop
Slide 24: Exciting future off a sustainable, profitable base
Exciting future off a sustainable, profitable base > Debt free1 and one of best margins in world gold mining2 > Experienced and successful team with proven capability to: > improve profitable operations > turn-around loss-making operations > Strong organic and exploration growth prospects > Seeking
Slide 25: Appendices
Appendices Underground at Gwalia, by Finlay Wilkinson 24 / European Gold Forum | 4 to 6 April 2017
Slide 26: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY16 FY16 FY17 FY17 FY173 Production Gwalia oz 65,098 267,166 67,118 70,925 255 to 265 koz (previously 245 to 265 koz1) King of the Hills4 oz - 9,112 - - - Simberi oz 26,935 110,286 25
Slide 27: Consistent quarterly production
Consistent quarterly production AISC (A$/oz) 992 947 960 935 Q2 December 2016 quarter 876 FY16 average A$933/oz > Consolidated company production of Production (koz) 99 koz (Q1 FY17: 93 koz) 99 > Gwalia 71 koz (Q1:67 koz) 92 92 92 93 28 > Simberi 28 koz (Q1: 25 koz) 28 25 27 25 > Consolidated AISC1
Slide 28: Consolidated gold production H on H
Consolidated gold production H on H AISC (Consolidated) (US$/oz) 1,037 1H FY17 Production Highlights Consolidated 687 657 700 682 > 192 koz @ AISC1 US$682/oz 211 203 > 376 koz CY16 192 167 50 58 184 Gwalia 52 53 30 27 9 > 138 koz record @ US$583/oz 23 > 269 koz CY16 134 136 131 138 114 Simberi > 53
Slide 29: Gender Diversity
Gender Diversity > The overall pay equity gap at St Barbara reduced from 43% in 2007 to 16% in 2016 (compared to 23% nationally and 16% for the mining industry1) > Nil gender pay gap in ‘like-for-like’ roles2 > Bob Vassie, MD & CEO, appointed in 2014 as one of 32 CEO Ambassadors of the Workplace Gen
Slide 30: 1H FY17 Financial Results Summary (A$)
1H FY17 Financial Results Summary1 (A$) 1H 2H 1H FY17 FY16 FY16 Gold price Average gold price realised A$/oz 1,687 1,664 1,564 All-In Sustaining Cost2 A$/oz 905 954 922 Result ˃ Statutory profit after tax A$M 83 92 77 ˃ Underlying net profit/(loss) after tax 2 A$M 81 67 60 ˃ EBITDA 2 A$M 144 137 161
Slide 31: FY16 Financial Summary (A$)
FY16 Financial Summary1 (A$) FY16 FY15 Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost 2 A$/oz 933 1,007 Result ˃ Statutory profit after tax A$M 169 40 ˃ Underlying net profit after tax 2 A$M 127 42 ˃ EBITDA 2 A$M 298 168 ˃ Underlying EBITDA 2 A$M 286 184 Cash flow ˃
Slide 32: First half FY17 Highlights | Record cash flow
First half FY17 Highlights | Record cash flow 105 > Record cash flow & 88 88 Underlying NPAT1 68 61 63 > Debt free2 from 55 49 March 2017 43 > Positioned for growth 1H FY16 2H FY16 1H FY17 NPAT NPAT Cash flow (underlying) (statutory) from op'ns US$M 1. Non IFRS measure, refer corresponding slide in
Slide 33: Segment results
Segment results > EBITDA margin at Gwalia: 66%4 Underlying profit from Cash contribution from operations1 operations1, 2 111 113 106 12 100 95 19 16 84 84 100 11 13 94 90 88 15 10 65 81 74 69 12 53 FY15 FY16 FY16 FY17 FY15 FY16 FY16 FY17 2H 1H 2H 1H 2H 1H 2H 1H Leonora Simberi Total Leonora Simberi
Slide 34: Financial Results | Cash movement 1H FY17 (A$)
Financial Results | Cash movement 1H FY17 (A$) Cash movement 1H FY17 25 -173 132 137 -15 -9 -10 87 Cash Jun 2016 Leonora Ops Simberi Ops Debt repayments Interest Exploration Corporate (incl Cash Dec 2016 payments [1] capex) + other A$ Million 33 / European Gold Forum | 4 to 6 April 2017 1. Includes
Slide 35: Gwalia | Long, profitable and stable life ahead
Gwalia | Long, profitable and stable life ahead LOM to 2024 at 1940 mbs1 Successful and prospective exploration Investing to extend LOM3 program2 Prod. (koz) Bubble size = Implied LOM (years) 350 Gwalia - SBM 300 Duketon South - RRL 250 Jundee - NST 200 Cowal - EVN Carosue Dam (province)- SAR
Slide 36: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program FY 17 drilling target 2,000 to 2,200 mbs > In FY16, added R&R below 1,800 mbs > In FY17, looking to add further R&R below 2,000 mbs Northern Extension target area > Gwalia lateral extensions remain open ‘R&R’ = Mineral Resources and Ore Reserves, for full e
Slide 37: Gwalia Extension Project | Paste Aggregate Fill
Gwalia Extension Project | Paste Aggregate Fill Paste Aggregate Fill (PAF): Operational benefits + Mix paste with waste synergies with rest of Gwalia Extension Project crushed underground for stope filling > Increases truck productivity, only ore hauled to surface > Allows faster stope filling, redu
Slide 38: Gwalia Deeps Exploration | Northern Extension
Gwalia Deeps Exploration | Northern Extension For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ and 37 / European Gold Forum | 4 to 6 April 2017 ‘2016 Annual Mineral Resources and Ore Reserves Report at 30 June 2016’ (www.stbarbara.com.au)
Slide 39: Gwalia Mineral Resource Classification & Reserves
Gwalia Mineral Resource Classification & Reserves June 2015 and June 2016 Measured Indicated Inferred Gwalia Mineral Resource June 2015 Gwalia Mineral Resource June 2016 200m depth extension of Resource model Gwalia Mineral Resource kt g/t koz 2016 17,924 7.0 3,896 2015 12,929 7.9 3,304 Gwalia Ore R
Slide 40: Reserves and resources: Gwalia major variances FY15 to FY16
Reserves and resources Gwalia - Major variances FY15 to FY16 1 Gwalia Reserves Gwalia Resources +193 +428 +297 +379 +131 -346 -277 1,808 3,896 koz 1,594 koz 3,304 June Mining Depth Design June June Mining Main Lode SW branch SGS June 2015 depletion extension changes 2016 2015 depletion extensions ex
Slide 41: Greater Gwalia | province exploration campaign in FY17
Greater Gwalia | province exploration campaign in FY17 ˃ Explore reflecting sound waves off mineral formations ˃ Used successfully by other regional gold miners ˃ Complete: 2D Gwalia program via down- hole sensors. Q3 commencing on Greater Gwalia 3D program For full details Refer ASX announcement 23
Slide 42: Exploration | Pinjin WA
Exploration | Pinjin WA Pinjin, WA > The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 > An initial 25,000m aircore drill campaign in 2016 returned encouraging results > A 17,000m aircore drill program due to be completed in Q3 March 201
Slide 43: Tatau Island, PNG
Exploration | Tabar Island Group PNG Tatau Island, PNG > Focus of Greenfields exploration in PNG > Pure-gold exploration focused on improving economics of future investment in Simberi > Zones of high grade trenching results with follow up drilling underway > Option and farm-in with Newcrest for copp
Slide 44: Ore Reserves Summary as at 30 June 2016
Ore Reserves Summary as at 30 June 2016 Proved Probable Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194 9,407 1.3 381 14,094 1
Slide 45: Mineral Resources Summary as at 30 June 2016
Mineral Resources Summary as at 30 June 2016 Measured Indicated Inferred Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia (WA) 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 Tower Hill (WA) - - - 4,604 3.9 574 489 3.3 51 5,093
Slide 46: Strong institutional share register
Strong institutional share register Gwalia Shareholding Structure A rich history with a bright future Institutional holdings by location (=82%) Not analysed USA 38% 11% Institutional 82% Non Institutional Australia 7% 21% UK 13% Other 9% Analysis and geographic spread of shareholders as at 14 Feb 2
Slide 47: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Significant Shareholders 1 Research Coverage Van Eck Associates 18% Argonaut James Wilson M&G Investment Mgt 7% Canaccord Reg Spencer Vinva Investment Mgt 5% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocking Institutional Shareholders 2 82% Globa
Slide 48: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 Mr Netscher is an experienced international years international mining industry m
Slide 49: Executive Leadership Team
Executive Leadership Team Bob Vassie Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 years with Rio Tinto
Slide 50: 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 51: 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 52: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 51 / European Gold Forum | 4 to 6 April 2017