24 slides from St. Barbara's merger presentation, Jun 29, 2012
Slide 1: Creation of an International Diversified Gold Producer
For personal use only Creation of an International Diversified Gold Producer 29 June 2012 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited (“St Barbara”) and Allied Gold Mining Plc (“Allied Gold”). Fellow of the Australasian Institute of Mining and Metallurgy. Phillip Uttley is a full-time employee of St Barbara. Phillip Th material The i l c
Slide 3: Creation of an International Diversified Gold Mining and Exploration Company
CreationofanInternationalDiversifiedGold MiningandExplorationCompany For personal use only • Recommended offer to combine St Barbara and Allied Gold through a scheme of arrangement • Creation of an international diversified gold producer – ProformamarketcapitalisationofapproximatelyA$1bn1 – Prof
Slide 4: Geographically Diversified Portfolio of Established and Proven Producing Assets
GeographicallyDiversifiedPortfolioofEstablishedand Proven Producing Assets, Supplemented by Development ProvenProducingAssets,SupplementedbyDevelopment For personal use only andExplorationOpportunities Leonora Simberi • Gwaliaundergroundmine Simberi • Simberi openpitmine • KingoftheHillsundergrou
Slide 5: Clear Strategic and Financial Rationale for Shareholders of St Barbara and Allied Gold
ClearStrategicandFinancialRationalefor ShareholdersofStBarbaraandAlliedGold For personal use only 1 Participationinaninternationaldiversifiedgoldminingandexplorationcompany,with thelargestgoldreservesandresourcesportfolioofanymidͲtierASXlistedpeer1 • Portfolio of quality, longͲlife gold assets unde
Slide 6: Transaction Details
Transaction Details TransactionDetails For personal use only • Board recommended offer to combine the two companies p • A$2.72 for each Allied Gold share1, comprising A$1.025 in cash and 0.8 St Barbara shares • To be implemented by way of court sanctioned scheme of arrangement under UK law betwee
Slide 7: Value for St Barbara and Allied Gold Shareholders
ValueforStBarbaraandAlliedGold Shareholders For personal use only St Barbara Shareholders StBarbaraShareholders Allied Gold Shareholders AlliedGoldShareholders • Acquisitionofquality,longͲlifegoldassetswith • Attractivepremiumandmaterialcashcomponent explorationpotential • Abilitytoparticipateins
Slide 8: A Leading Company in Australian Mid-Tier Gold Sector
ALeadingCompanyinAustralianMidͲTierGold Sector For personal use only Proforma Market Cap of c A1$bn1 ProformaMarketCapofc.A1$bn Reserves Position (Moz)2 #1ReservesPosition(Moz) #1 Reserves Grade 1,762 1,426 8.0 12.0 1,075 1,035 5.9 5.3 5.2 909 6.0 9.0 832 7 46 88 61 5 61 2 37 3.7 8 68 481 4.0 3.2 3.
Slide 9: Project Pipeline Spanning Exploration to Gold Production
ProjectPipelineSpanningExplorationtoGold Production For personal use only StBarbara’sestablished,producingandcashflowgenerativeassetsatGwalia,KingoftheHillsandSouthern CrosscomplementAlliedGold’sexpansionandexplorationprojectsatSimberi,GoldRidgeandTabarͲTatau ProjectPipeline ProductionProfile1 Gol
Slide 10: Strong and Proven Management Capabilities
Strong and Proven Management Capabilities StrongandProvenManagementCapabilities For personal use only • St Barbara and Allied Gold have complementary management capabilities with significant depth of management – Experiencespanseachstepofthevaluechainfromexplorationthroughtogold production – Prov
Slide 11: Enhanced Diversification
Enhanced Diversification EnhancedDiversification For personal use only by Asset1 ReservesbyAsset Reserves StBarbara CombinedGroup AlliedGold (2.8Moz) (5.9Moz) (3.2Moz) 12% 19% 8% 33% 36% 8% 64% 72% 34% 6% 4% 4% FY13FProductionbyAsset(midpoint)2 StBarbara CombinedGroup AlliedGold (c.260koz) (c.435koz
Slide 12: A Number of Organic Growth Opportunities for the Combined Group
ANumberofOrganicGrowthOpportunitiesfor theCombinedGroup For personal use only • Anticipated growth in gold production from Allied Gold Gold’s assets – Improvedproductionreliabilityatexistingmines – Simberi Oxideexpansionto3.5Mtpa planned – PotentialdevelopmentofSimberi Sulphides project • p Ex
Slide 13: Identified Cost Reduction Opportunities for Allied Gold Assets
IdentifiedCostReductionOpportunitiesfor AlliedGoldAssets For personal use only ThecombinedmanagementteamanticipatesachievingcashoperatingcostreductionsfortheAlliedGold The combined management team anticipates achieving cash operating cost reductions for the Allied Gold operations GoldRidge Simberi
Slide 14: Improved Index Positioning of the Combined Group
ImprovedIndexPositioningoftheCombined Group For personal use only Basedonproformamarketcapitalisation,combinedgroupexpectedtoimproveASXindexpositioningpost Based on pro forma market capitalisation, combined group expected to improve ASX index positioning post transaction • Enhancedscaleandimprovedi
Slide 15: Pro Forma Operating Multiples
Pro Forma Operating Multiples ProFormaOperatingMultiples For personal use only EV/Reserves (A$/oz)1,2 EV/Reserves(A$/oz) (A$/oz)1,2 EV/Resources(A$/oz) EV/Resources 1,735 793 1,460 334 271 653 610 Peeraverage:534 183 512 164 155 Peeraverage:173 145 125 338 331 312 95 248 231 80 76 76 75 73 212 195 1
Slide 16: Board of Directors and Management Team
Board of Directors and Management Team BoardofDirectorsandManagementTeam For personal use only • Following completion of the transaction, intended that St Barbara’s existing senior management team and Board of Directors will remain in p place • St Barbara expects to appoint up to two existing Dir
Slide 17: Indicative Transaction Timetable
Indicative Transaction Timetable IndicativeTransactionTimetable For personal use only 29June2012 • Announcement date 16July 2012 • Post scheme document EarlyAugust2012 • Allied Gold shareholder meeting LateAugust/early g / y • Effective date of scheme September2012 • Settlement of consideration
Slide 18: Value Enhancing Transaction with Clear Strategic and Financial Rationale
ValueEnhancingTransactionwithClear StrategicandFinancialRationale For personal use only • Opportunity to create diversified, diversified high growth gold mining and exploration company • Value enhancing for both St Barbara and Allied Gold shareholders – AttractivepremiumforAlliedGoldshareholders
Slide 19: For personal use only
y ALLIED GOLD / St Barbara MINING PLc) 19
Slide 20: Appendices
For personal use only Appendices 20
Slide 21: Board Recommendation and Irrevocable Undertakings
BoardRecommendationandIrrevocable Undertakings For personal use only • Allied Gold Gold’s Board of Directors intend unanimously to recommend that Allied Gold shareholders vote in favour of the transaction • Irrevocable undertakings and letters of intent to vote in favour of the transaction receiv
Slide 22: Solomon Islands Overview
Solomon Islands Overview SolomonIslandsOverview For personal use only CountryOverview SolomonIslandsMap • LocatedeastofPapuaNewGuinea,consistingofnearly1,000 separateislands • CapitalisHoniaraontheislandofGuadalcanal • AformerBritishColony,remainsamemberofthe Commonwealth • SelfͲgovernmentachiev
Slide 23: Papua New Guinea Overview
Papua New Guinea Overview PapuaNewGuineaOverview For personal use only CountryOverview PapuaNewGuineaMap • LocatedinOceania,occupyingtheeasternhalfoftheislandof NewGuineabetweentheCoralSeaandSouthPacificOcean, east of Indonesia eastofIndonesia • CapitalisPortMoresbywithapopulationofc.300,000 • Co
Slide 24: Enquiries
Enquiries For personal use only StBarbara AlliedGold InvestorRelations InvestorRelations RossKennedy, y ExecutiveGeneralManager g Joe Dowling,GeneralManagerInvestor +613 86601903 8660 1903 +61 403369232 403 369 232 CorporateServices/CompanySecretary RelationsandCommunications Lazard(Lead Financial A