36 slides from St. Barbara's earnings presentation, Aug 23, 2017
Slide 1: Presentation on FY17 Financial Report and audio webcast
ASX Release / 23 August 2017 For personal use only Presentation on FY17 Financial Report, 30 June 2017 Ore Reserves & Mineral Resources Statements and audio webcast Bob Vassie, Managing Director & CEO, and Garth Campbell-Cowan, Chief Financial Officer, will brief analysts and institutional investors
Slide 2: FY17 Financial Results Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO For personal use only GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 23 August 2017 FY17 Financial Results 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 • Growth initiatives For personal use only • Financial results • Conclusion • Resources & Reserves update • Appendix Sky over Gwalia processing plant, April 2016 Rainclouds over Gwalia Tailings Storage Facility, 3 / FY17 Full Year Financial Presentation January 2017 Photo by Dan
Slide 5: FY17 key achievements
FY17 key achievements • Record safety performance of 1.2 TRIFR1 For personal use only Operational • Record consolidated annual production2 & record low AISC3 excellence • Achieved or exceeded guidance at both operations • Record cash flow from operating activities $303 M (FY16: $243 M) Record result
Slide 6: Record safety performance
Record safety performance Total Recordable Injury Frequency Rate1 For personal use only 9.0 6.0 5.0 4.1 2.1 1.2 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 • Record safety performance of 1.2 TRIFR1 • Gwalia winner of CME WA Underground Mine Emergency Response Team Competition2 Above: Winning Gwalia ERT, off
Slide 7: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade For personal use only (g/t Au) 10.7 9.3 8.8 8.9 8.2 8.4 6.9 6.3 Reserve Grade 5.7 7.8 g/t Au June 2017 267 265 260 248 245 Production (koz) 214 AISC 185 183 (A$/oz) 940 841 865 131 783 785 109 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 8: Simberi production and cost profile
For personal use only Simberi production and cost profile 2,300 AISC (kA$/oz) 1,464 1,293 1,320 1,187 116 115 110 Production (koz) 105 80 44 Senior in-pit coach Papof Lamasi FY14 FY15 FY16 FY17 FY18F FY18F AISC is midpoint of guidance, released 26 July 2017 in Q4 June 2017 Quarterly Report. 7 / FY17
Slide 9: EBITDA and NPAT profile
EBITDA and NPAT profile Underlying EBITDA Underlying NPAT For personal use only A$M A$M 321 160 284 127 184 42 FY15 FY16 FY17 FY15 FY16 FY17 EBITDA NPAT A$M A$M 169 298 158 293 168 40 FY15 FY16 FY17 FY15 FY16 FY17 EBITDA, Underlying EBITDA and Underlying NPAT are non IFRS measures, 8 / FY17 Full Yea
Slide 10: Key changes to underlying profit FY16 to FY17
For personal use only Key changes to underlying profit FY16 to FY171 -6 -4 -2 -5 19 -15 26 160 20 127 A$ M FY16 Gross Profit - Gross Profit - Exploration Corporate & D&A Finance + FX Other Income tax FY17 Aust Ops Simberi Ops Royalties expense 1. Underlying profit from continuing operations, Non-IFR
Slide 11: FY17 Key Financial Metrics
For personal use only FY17 Key Financial Metrics 50 EBITDA margin % 1,3 47 3 64 Gwalia EBITDA margin % 60 32 EPS (basic, cents) 26 61 ROCE (%) 1,3 48 DPS (cents) 6 2 Dividend yield (%) 2.1 FY17 FY16 1. Underlying, see page 3 Financial Report 10 / FY17 Full Year Financial Presentation 2. On share pri
Slide 12: 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, 3 A$M A$M 220 249 244 198 186 139 70 51 34 33 -3 -33 FY15 FY16 FY17 FY15 FY16 FY17 Leonora Simberi Leonora Simberi 1. Results for Leonora in
Slide 13: Commencement of Dividends
Commencement of Dividends Dividend (for full 2017 financial year) • A$0.06 per share, fully franked, announced 7 August 2017 For personal use only • Future dividends will be considered at each financial reporting date • Amount will be influenced by financial performance, balance sheet, internal and
Slide 14: Taxation
Taxation • All Australian tax losses were utilised during FY17 • Tax liability of $30 M recognised as at 30 June 2017 payable in December 2017 For personal use only with monthly instalments thereafter • Current tax liability includes a provision of $11 M for certain research and development projects
Slide 15: Cash movement FY17
Cash movement FY17 Reconciliation of cash movement For personal use only 70 -228 232 -19 -11 A$ M -20 137 161 Cash Jun 2016 Leonora Ops Simberi Ops Debt repayments Interest & Exploration Corporate (incl Cash Jun 2017 borrowing costs capex) Application of cash -309 A$M 640 2 -20 -18 -43 250 -228 24 R
Slide 16: Investing for the future
Investing for the future Capex Exploration For personal use only 96 6 53 42 36 4 8 9 19 18 37 14 30 6 5 27 4 1 4 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 Project
Slide 17: Balance Sheet
Balance Sheet • Cash balance at 30 June of $161 M – continuing to grow in FY18 For personal use only • All debt repaid except for minor finance leases totalling $0.5 M at year end • Hedging in place at 30 June 2017 for FY18 = 100 koz forward contracts at average price of A$1,728/oz deliverable July
Slide 18: Reserves and Resources as at June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves Gwalia Reserves (Moz) For personal use only 4.3 • Increased by net 325 koz after depletion 4.0 1.4 1.3 • Lower average grade 8.3 to 7.8 g/t Au 0.5 0.6 0.3 0.3 • Cost of discovery at depth in FY17 $23/oz 2.1 (FY16: $30/oz) 1.8 Gwalia Resources FY
Slide 19: Gwalia Reserves and Resources
For personal use only Gwalia Reserves and Resources Gwalia Reserves Gwalia Resources +406 +1,061 +268 +15 koz +316 koz -276 -274 5,087 2,133 1,808 3,896 June Mining Depth Geology Modifying June June Mining Depth Additions June 2016 depletion extension and factors 2017 2016 depletion & extensions (ab
Slide 20: Gwalia Ore Reserves
Gwalia Ore Reserves For personal use only Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Proved Probable Note: For full details refer to ‘Ore Reserves and Mineral Resources Statement 30 June 2017’ 19 / FY17 Full Year Financial Presentation rele
Slide 21: Gwalia Ore Reserves
Gwalia Ore Reserves For personal use only Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Ore Reserves Grade (g/t) 4-6 6–8 8 – 10 10 – 12 >12 Note: For full details refer to ‘Ore Reserves and Mineral Resources Statement 30 June 2017’ 20 / FY17 F
Slide 22: Gwalia variance to Ore Reserves grade
Gwalia variance to Ore Reserves grade 0.4 For personal use only 0.2 0.2 0.3 0.1 0.6 g/t Au 8.3 7.8 Ore Reserve FY17 production Design changes Design changes Design changes Dilution factors Depth Extension Ore Reserve Grade June (SWB above (WL & SGS above (ML above 1940) Grade June 2016 1940) 1940) 2
Slide 23: Gwalia mining | South West Branch
Gwalia mining | South West Branch ‘The Sweet Spot’ For personal use only • Deepest FY17 production at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs • Extend mine ~one level 1480MBS (40 meters) per annum Deepest level of mining, Q4 FY7, 1620 mbs • Reserve grade 7.8 g/t Au1
Slide 24: Simberi Reserves and Resources
Simberi Reserves and Resources Reserves Oxide Reserves For personal use only +92 -116 • Additional Reserves offset depletion • Mine life extended one year to mid FY20 1,897 1,873 koz Sulphides Reserves • Change in reserves based on improved June Mining depletion Op costs & model June geological inte
Slide 25: Gwalia Extension Project update
Gwalia Extension Project update For personal use only • Project is on schedule • A$8 M spent in FY17 (A$3.5 M in Q4) drilling, studies, tunnel development • Major contracts awarded: • Weir Minerals for “PAF” (Paste Aggregate Fill) • RUC Cementation for vent shafts • Study with RUC for simultaneous s
Slide 26: Profitable growth options
Profitable growth options Existing opportunities Profitable growth options For personal use only • Gwalia extension project • Simberi mine life review, sulphides • Exploration in WA and PNG Eyes open for opportunities • Consider sensible inorganic growth where it increases shareholder value • System
Slide 27: Gender Diversity
Gender Diversity For personal use only • WGEA Employer Of Choice For Gender Equality in 2014, 2015 & 2016, one of three resources companies certified • 2017 Company Gender Diversity Program, Victorian Women in Resources Awards • Overall pay equity gap reduced from 43% in 2007 to 16% in 20161 • Nil g
Slide 28: Conclusion | Digger of the Year 2017
Conclusion | Digger of the Year 2017 • Another record year – safety, For personal use only production, cash flow and low AISC • $0.06 fully franked full-year dividend • Awards for gender diversity, wellbeing programs and Digger of the Year • At Gwalia, Resources increased by net 1.2 Moz, Reserves in
Slide 29: Appendices
Appendices For personal use only Diggers and Dealers awards presentation 9 Aug 2017 (L to R): Ian Murray, MD & CEO, Gold Road Resources Ltd ‘2017 Dealer of the Year’, Tim Netscher, Non-Executive Chairman of Gold Road Resources Ltd & St Barbara Ltd, Bob Vassie, MD & CEO, St Barbara Ltd ‘2017 Digger o
Slide 30: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary - Consolidated Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance For personal use only FY16 FY17 FY17 FY17 FY17 FY17 FY173 FY18 Production Gwalia oz 267,166 67,118 70,925 64,916 62,098 265,057 260 to 265 koz 245 to 260 koz Sim
Slide 31: FY17 Financial Summary
For personal use only FY17 Financial Summary FY17 FY16 Change EBITDA 1, 2 A$M 321 284 13% • Record underlying NPAT and Underlying NPAT 1 A$M 160 127 26% cash flow from operations Reported NPAT A$M 158 169 (7%) • Debt free3 • A$228 M debt repaid in FY17 Cashflow from operations 4 A$M 303 243 25% • A$
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), Bob Va