St. Barbara Ltd. · ASX:SBM
St. Barbara — Q2 FY2019 Earnings Presentation
38 slides from St. Barbara's earnings presentation, Jan 23, 2019
Slide 1: Presentation on Q2 December FY19 Quarterly Report and audio webcast
ASX Release / 23 January 2019 Presentation on Q2 December FY19 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q2 December FY19 Quarterly Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours) on Wednesday 2
Slide 2: Q2 December FY19 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 23 January 2019 ASX:SBM Q2 December FY19 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices Carmen Potito, Procurement Superintendent, conducting pre-start checks at Leonora, June 2018. 3 / Q2 December FY19 Quarterly Presentation
Slide 5: Highlights Q2 December FY19
Highlights Q2 December FY19 • Quarter production of 89 koz at AISC1 A$1,108/oz (Q1: 99 koz at AISC A$919/oz) • Consolidated production guidance increased to 365 to 385 koz (previously 350 to 375 koz), with AISC of A$1,045 to A$1,100/oz (previously A$1,030 to A$1,100/oz) • Continued significant drill
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.8 2.9 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 Q1 Q2 FY19 FY19 • The Total Recordable Injury Frequency Rate (TRIFR, 12 month moving average) Thomas Garrett (Paramedic and ERT Co-ordinator), visiting Maragon Village clinic, Simb
Slide 7: Consolidated Q2 December FY19 Quarter
Consolidated Q2 December FY19 Quarter AISC (A$/oz) 1,108 982 919 910 812 FY18 average A$891/oz • Consolidated production of 89 koz (Q1 FY19: 99 koz) • Gwalia 53 koz (Q1: 63 koz) Gold Production (koz) 119 • Simberi 36 koz (Q1: 36 koz) 100 99 86 35 89 37 36 • Consolidated AISC1 of $1,108/oz 29 36 (Q1:
Slide 8: Gwalia Q2 December FY19 Results
Gwalia Q2 December FY19 Results AISC (A$/oz) 1,081 Q2 FY19 Production 859 905 833 FY18 average $802/oz 679 • 53,257 oz (Q1 FY19: 62,685oz) • AISC1 A$1,081/oz (Q4: A$833/oz) Mined grade (g/t Au) 15.0 13.4 12.4 • Lower production, higher capex and 11.2 10.4 higher capital development Reserve grade FY1
Slide 9: Simberi Q2 December FY19 Results
Simberi Q2 December FY19 Results AISC (A$/oz) Q2 FY19 Production • 35,987 oz (Q1 FY18: 35,862 oz) 1,129 1,135 1,146 994 1,068 • AISC1 A$1,146/oz (Q1: A$1,068/oz) FY18 average $1,068/oz • Unplanned Ropecon2 and ball mill outages, together with weaker AUD, Production impacted costs (koz) • Record mill
Slide 10: Increasing Cash Balance
Increasing Cash Balance A$M 7 7 350 357 343 82 46 261 Q2 movement net of: Q1 movement net 215 of: $46 M tax Q4 movement net $28 M dividends $13 M growth capex of: Q3 movement net $11 M growth capex $2 M investments of: $7 M tax $6 M tax $16 M dividends $10 M growth capex $4 M investments $7 M growth
Slide 11: Cash Generation and Usage
Cash Generation and Usage A$M 120 105 100 Operational cash contribution 79 79 79 76 80 60 Net cash movement for qtr 40 82 46 Corp. costs & royalties, 20 explr. & working cap. 17 0 7 7 -7 Strategic investments -16 -10 -28 -31 -2 -20 -7 -4 -3 -46 -4 Leonora - growth capital -4 -6 -40 -11 -11 -12 -4 -1
Slide 12: Main Current Projects – Timeline
Main Current Projects – Timeline FY19 FY19 FY20 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Gwalia 2600 mbs hole analysis and further drilling analysis and Gwalia 3D Targets further sei
Slide 13: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists of two main components, a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$100 M with planned completion in Q2 December FY201 • GEP on schedule and approximately 60% complete. A$12 M spent in Q2
Slide 14: Gwalia Mass Extraction – Feasibility Study due March 2019
Gwalia Mass Extraction – Feasibility Study due March 2019 • Pre-Feasibility Study announced February 2018 • Future proofing costs of $15 M on ventilation fans and bulk air cooling to be spent in FY20 (scope increased from previous $9 M) • Feasibility Study on schedule for March 2019 For details refe
Slide 15: Exploration – Key Developments
Exploration – Key Developments Gwalia, WA • Testing the southern extension to orebody returned significant results Horse-Paddock Well, WA • RC drilling of several geophysical targets, with 3 holes returning anomalous gold • Hole HWRC0007 intersected 4 m zone of mineralisation including 1 m at 7.2 g/
Slide 16: Exploration – Gwalia Deeps
Exploration – Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16F, Gwalia Deeps Q2 FY19 Drilling Program Long Section Looking West GWDD16G and GWDD16H intersected the mine sequence between 1,900 and 2,013 mbs • Significant results include1: o 0.9 m at 34.4 g/t Au o 3.6 m at 10.7 g/t Au o 1.8
Slide 17: Exploration – Seismic Targets
Exploration – Seismic Targets Gwalia Seismic Exploration • Completed parent hole GWDD22 1 km south of underground mine development • The hole intersected 88 m of alteration and veined material interpreted as the southern extension of the Gwalia Shear Zone • Additional modelling is underway to identi
Slide 18: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG Sorowar Pit • Drilling results continue to be positive, indicating significant additional sulphide and oxide mineralisation is present • Best intersections include (all results downhole): 120SORDGC010: • 35 m at 3.11 g/t Au from 67 m 125SORDGC006: • 27 m at 8.92 g/t
Slide 19: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 18 / Q2 December FY19 Quarterly Presentation
Slide 20: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 19 / Q2 December FY19 Quarterly Presentation
Slide 21: 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 22: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Gwalia Metals Peel GMX Mining Tower 16% 18%. Hill Aust. Gwalia Gwalia Prodigy Potash Extension Mine Duketon Gold Mining 10% 12% Au, EJV2 Inorganic growth Evaluating exploration, projec
Slide 23: Conclusion
Conclusion • FY19 consolidated production guidance increased • GEP is progressing well and GMX feasibility study is on track • Continued significant drill results from Gwalia deep drilling program suggest greater gold endowment than previously modelled • Sulphide drilling results at Simberi continue
Slide 24: Appendices
Appendices View to the South from Simberi Exploration office Boats for Exploration logistics, Tatau Island PNG – June 2018, Mt Banesa, site of Cu-Au drilling in Q2 FY19 in background. 23 / Q2 December FY19 Quarterly Presentation
Slide 25: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY18 FY18 FY19 FY19 FY19 FY191 St Barbara’s financial year is Qtr to Year to 30 June Qtr to Qtr to 6 months to Year to 30 June 2019 1 July to 30 June 30 June 2018 2018 30 Sep 2
Slide 26: Exploration FY19 Guidance - A$25 to A$30 million
Exploration FY19 Guidance - A$25 to A$30 million A$12 – A$15 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$9 – A$10 million PNG (previously A$8 – A$10 million) • Simberi Oxides/Sulphides and Porphy
Slide 27: Exploration – Gwalia Deep Drilling
Exploration – Gwalia Deep Drilling For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 26 / Q2 December FY19 Quarterly Presentation
Slide 28: Exploration – Gwalia Geological Interpretation
Exploration – Gwalia Geological Interpretation Note: Stylised conceptual interpretation of the Gwalia geology and mineralisation 27 / Q2 December FY19 Quarterly Presentation For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’
Slide 29: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 28 / Q2 December FY19 Quarterly Presentation
Slide 30: Exploration – Simberi Island, PNG
Exploration – Simberi Island, PNG For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 29 / Q2 December FY19 Quarterly Presentation
Slide 31: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) For details refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 30 / Q2 December FY19 Quarterly Presentation
Slide 32: Gwalia Mass Extraction PFS – Alternative Flow sheet
Gwalia Mass Extraction PFS – Alternative Flow sheet For full explanation and results refer to ASX release 23 January 2019 ‘Quarterly Report Q2 December FY19’ 31 / Q2 December FY19 Quarterly Presentation
Slide 33: Hedging Summary at 23 January 2019
Hedging Summary at 23 January 2019 Financial Volume Price Delivery Announced Year ounces $/oz (all monthly instalments) FY19 44,000 A$1,750 February and June 2019 7 & 19 Feb 2018 and 7 Mar 2018 (56,000 of initial 100,000 ounces delivered year to date since 1 July 2018) FY20 50,000 A$1,750 July and D
Slide 34: Ore Reserves Summary as at 30 June 2018
Ore Reserves Summary as at 30 June 2018 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) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 35: Mineral Resources Summary as at 30 June 2018
Mineral Resources Summary as at 30 June 2018 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) 4,581 7.1 1,048 14,690 6.3 2,997 3,831 6.3 7
Slide 36: 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 37: Non-IFRS Measures and Recent Announcements
Non-IFRS Measures and Recent Announcements 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
Slide 38: 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 St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp