St. Barbara Ltd. · ASX:SBM
St. Barbara — H1 FY2018 Earnings Presentation
38 slides from St. Barbara's earnings presentation, Feb 21, 2018
Slide 1: Presentation on the December 2017 Half Year Report and webcast
ASX Release / 21 February 2018 For personal use only Presentation on the December 2017 Half Year Report and webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the December 2017 Half Year Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours)
Slide 2: December 2017 Half Year Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 21 February 2018 For personal use only December 2017 Half Year Presentation
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, s
Slide 4: Contents
Contents • Overview • Gwalia outlook For personal use only • Financial results • Conclusion • Growth initiatives • Appendix Simberi operations, October 2017 3 / December 2017 Half Year Presentation
Slide 5: 1H FY18 key achievements
1H FY18 key achievements • Record consolidated half-year production1 of 198 koz Operational • Record-low half-year AISC2 of A$899/oz For personal use only excellence • AISC margin of A$761/oz • Full year guidance increased at both operations • EBITDA margin of 49%1 Financial • Strong cash flow from
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 For personal use only 6.0 5.0 4.1 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 FY18 FY18 • Increase in TRIFR to 2.4 to 31 Dec 2017 due to four low-severity recordable injuries o Program to prevent recurrence implemented • Corresponding LTIF
Slide 7: Consolidated Gold Production
Consolidated Gold Production 1H FY18 Production Highlights For personal use only AISC (Consolidated) (A$/oz) Consolidated 922 954 905 910 899 • Record 198 koz @ record-low AISC1 A$899/oz koz • EBITDA margin of 49% 194 184 191 190 198 • FY18F 365-385 koz 58 52 53 63 71 Gwalia • 127 koz @ AISC A$838/o
Slide 8: Gwalia production and cost profile
For personal use only Gwalia production and cost profile Mined Grade (g/t Au) 11.7 10.7 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 248 250 Production (koz) 214 860 AISC 185 183 940 (A$/oz) 841 783 785 131 1H= 109 127 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY
Slide 9: Gwalia 5-year outlook
Gwalia 5-year outlook Mined Grade 11.7 (g/t Au) 10.7 9.8 For personal use only 8.8 8.9 9.3 8.2 8.4 8.1 7.7 6.9 6.7 6.3 5.7 Reserve Grade to 2140 mbs 7.8 g/t Au June 2017 290 260 280 267 265 250 250 260 without 248 240 240 hydraulic 214 hoisting AISC 185 183 (A$/oz) 940 920 930 LoM to 841 860 FY 2031
Slide 10: Gwalia Mass Extraction
Gwalia Mass Extraction Slurry Hydraulic Hoisting - single stage pumping from 1500 mbs For personal use only 2 duty and 1 stand-by Top-up water to surface slurry pipes from Tower Hill Top-up water from Tower Hill Top-up water from old workings 3 x 2 MW additional generators At 1500mbs, crusher, HPGR1
Slide 11: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Project includes new ventilation shafts and • A$15 M capex spent in 1H FY18 For personal use only underground crushing of waste, mixed with (A$23 M project capex spent to date) paste to fill emptied stopes • Raise bore activities have commenced, • Budg
Slide 12: Simberi production and cost profile
Simberi production and cost profile 2,300 For personal use only AISC (A$/oz) 1,464 1,293 1,180 1,187 125 Production 116 (koz) 110 115 80 Mill throughput 3.7 (Mt) 3.3 44 2.7 1H = 71 1.7 FY14 FY15 FY16 FY17 FY18F Survey work in Sorowar pit, October 2017 FY18F AISC is midpoint of guidance, released 23
Slide 13: 1H FY18 key financial metrics
1H FY18 key financial metrics • Record NPAT of $106 M, up 28% For personal use only Profitable • Record-low AISC1 of A$899/oz, down 1% • EPS up 25% at 20.8cps • Group EBITDA margin1 of 49%: High margin • Gwalia margin of 60%, Simberi margin of 45% • Cash contribution from operations after growth cap
Slide 14: EBITDA and NPAT profile
EBITDA and NPAT profile A$ M Underlying EBITDA A$ M Underlying NPAT For personal use only 200 120 150 164 157 162 80 98 100 81 80 40 50 0 0 1H FY17 2H FY17 1H FY18 1H FY17 2H FY17 1H FY18 A$ M EBITDA 120 A$ M NPAT 200 150 106 162 80 144 149 83 100 75 40 50 0 0 1H FY17 2H FY17 1H FY18 1H FY17 2H FY17
Slide 15: Key changes to underlying profit 1H FY17 to 1H FY18
For personal use only Key changes to underlying profit 1H FY17 to 1H FY181 4 98 14 81 -22 21 A$ M 1H FY17 Gross Profit - Aust Ops Gross Profit - Simberi Finance + FX Other 1H FY18 Ops 1. Underlying profit from continuing operations, Non-IFRS measure, refer to corresponding slide in Appendix 14 / Dec
Slide 16: Segment profit and cash contribution from operations
Segment profit and cash contribution from operations For personal use only Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 A$M A$M 119 135 120 118 101 97 42 45 47 22 30 25 1H FY17 2H FY17 1H FY18 1H FY17 2H FY17 1H FY18 Leonora Simberi Leonora Simberi 1. Non-IFRS
Slide 17: Interim dividend
Interim dividend Dividend (for first half 2018 financial year) • A$0.04 per share, fully franked. For personal use only • Dividends are considered at each financial reporting date • Amount influenced by financial performance, balance sheet, internal and external investment opportunities Dividend Rei
Slide 18: Cash movement 1H FY18
Cash movement 1H FY18 Reconciliation of cash movement For personal use only 47 -3 -13 -7 -31 2 118 -15 -12 -25 -7 215 A$ M 161 Cash Jun 2017 Leonora Ops GEP Capex Simberi Ops Corporate Corp Exploration Tax paid Investments Other Dividends Working Cash Dec 2017 (incl capex) Royalties financing paid c
Slide 19: Balance Sheet
Balance Sheet • Cash balance at 31 December of $215 M1 For personal use only • Hedging in place as at 21 February 2018: • FY18: 36 koz forward contracts at average price of A$1,728/oz deliverable February to June 2018 • FY19: 83 koz forward contracts at A$1,750/oz between July 2018 and June 2019 • F
Slide 20: Investing for the future
Investing for the future Capex Exploration For personal use only 96 6 53 42 36 4 8 9 19 18 A$M 38 14 30 6 5 27 4 4 A$M 1 8 9 9 5 FY16 FY17 FY18F FY16 FY17 FY18F Capex Capex Capex Exploration Exploration Exploration (mid-points) (mid-points) Gwalia - sustaining Gwalia - deep drilling Gwalia Extension
Slide 21: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA For personal use only • A 15 hole RC and 163 hole Aircore drill program was completed in Q2. • At Grahams Find, RC drilling returned narrow (2 to 6m) intercepts between 1 and 2 g/t Au, and Aircore drilling returned anomalous gold (≥100 ppb Au)
Slide 22: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production only Back Creek Australia personal use Pinjin Greater Gwalia Tower Gwalia Catalyst Gwalia Peel Hill Extension Metals Mine 16% Mining 16%. Inorganic growth Evaluating exploration, project, development and operating assets in a range of s
Slide 23: Strategy for the next years – “stronger for longer”
Strategy for the next 5 years – “stronger for longer” Diversify production base For personal use only 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
Slide 24: Gender Diversity
Gender Diversity For personal use only • WGEA Employer Of Choice For Gender Equality in 2014, 2015, 2016-7 and 2018 and the only mining company to be recognised this year. • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards. • Overall pay equity gap red
Slide 25: Conclusion
Conclusion • Sustained operational performance; For personal use only record half-year production1 and record low half-year AISC2 • Record profitability: underlying NPAT2 $98 M • $215 M cash at bank3, INSERT NEW • 4 cps fully franked interim dividend PHOTO • Profitable growth options underway: • Gwa
Slide 26: Appendices
Appendices For personal use only 2600 mbs drill hole in progress at Gwalia, Feb 2018 25 / December 2017 Half Year Presentation
Slide 27: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY17 FY17 FY18 FY18 FY18 FY181 For personal use only Production Gwalia oz 62,098 265,057 64,283 62,835 127,118 250 to 260 koz (prev. 245 to 260) Simberi oz 32,128 116,044 33,976 36,
Slide 28: 1H FY18 Financial Summary
For personal use only 1H FY18 Financial Summary 1H18 1H17 Change • Record underlying NPAT of A$98 M in 1H FY18 EBITDA 1, 2 A$M 162 164 (1%) • Strong cashflow from EBITDA margin % 49 51 (2 points) operations Underlying NPAT 1 A$M 98 81 21% • EPS up 25% to 20.8 cents in Reported NPAT A$M 106 83 28% 1H
Slide 29: Taxation
Taxation • Tax deduction related to share based payments for employee performance rights For personal use only • Additional recognition of deferred tax asset in respect of PNG operations of A$7 M as at 31 December 2017 Reconciliation of 1H FY18 income tax expense to prima facie tax payable 36 -1 -7
Slide 30: Gwalia LoM to FY 2031 (with hydraulic hoisting)
Gwalia LoM to FY 2031 (with hydraulic hoisting) For personal use only Table 1: 5-year key metrics (with hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 940 1,150 1,400 Mined grade g/t Au 11.7 9.8 8.1 7.7 6.7 Gold Production koz 250-2
Slide 31: Gwalia LoM to FY 2031 (without hydraulic hoisting)
Gwalia LoM to FY 2031 (with hydraulic hoisting) For personal use only Table 2: 5-year key metrics (without hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 950 1,000 1,180 Mined grade g/t Au 11.7 9.7 7.9 8.3 6.5 Gold Production koz 25
Slide 32: Gwalia – Lowest expected mined depth
For personal use only Gwalia – Lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18F FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 1380 Mineral Resources 1420 Ore Reserves 1500 1500 1600 1540 1580 1620 1700 1800 1740 1780 1820
Slide 33: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves For personal use only Depth of Ore Reserves mbs 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 1000 1.9 Moz 1.6 Moz 1.8 Moz 2.1 Moz 1200 1400 1540 1600 1740 1800 1940 2000 2140 2200 Ore Reserves and Mineral Resources Statements as at 30 June 2017 (released 23 August 2
Slide 34: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 For personal use only 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) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7
Slide 35: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 For personal use only 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) 5,045 7.8 1,265 14,877
Slide 36: Competent Persons Statement
Competent Persons Statement For personal use only 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 Musta
Slide 37: Non-IFRS Measures
Non-IFRS Measures We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS For personal use only financial measures, including cash operating costs. We believe that these measures provide meaningful information to ass
Slide 38: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Alistair Reid Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board, executive and members of Leonora management team, October 2017 at Gwalia. L to R: Jeff Waddington (GM HSEC), Bob Vass