St. Barbara Ltd. · ASX:SBM
St. Barbara — BMO Capital Markets 21st Global Metals & Mining Conference 2012
43 slides from St. Barbara's conference presentation, Feb 27, 2012
Slide 1: Presentation by Tim Lehany, Managing Director and CEO
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only Presentation by Tim Lehany, Managing Director and CEO Attached is a presentation
Slide 2: About St Barbara Limited
About St Barbara Limited St Barbara was established in 1969, and is one of Australia’s most profitable ASX listed gold produces and explorers. St Barbara has three mines and two processing plants, at Leonora and Southern Cross, in the For personal use only Eastern Goldfields region of Western Austra
Slide 3: Proven Performance, Creating Value
For personal use only Proven Performance Performance, Creating Value Tim Lehany, Lehany Managing Director & CEO BMO Capital Markets 21st Global Metals & Mining Conference February 2012 1
Slide 4: Forward statements
Forward statements For personal use only Thi presentation This i has h been b preparedd by b St S Barbara B b Li i d (“Company”). Limited (“C ”) The Th This presentation Thi i h has b been prepared d by b the h Company C b basedd on information i f i material contained in this presentation is for in
Slide 5: Outline
Outline For personal use only • St S BBarbara b at a glance l • Proven performance • Gwalia Mine – St Barbara’s cornerstone asset • Exploration • The remainder of FY 12 • Appendices Proven Performance, Creating Value - February 2012 3
Slide 6: St Barbara at a glance
St Barbara at a glance For personal use only • Australian l goldld producer d andd explorer l • Australasian and SE Asia focus • FY 12 gu guidance: da ce production p oduc o 320,000‐350,000 3 0,000 350,000 ounces at consolidated cash operating cost of A$790 to A$830 per ounce [2] • Ore Reserves 2 2.
Slide 7: Proven performance - translating reserves into operating cash flows
Proven performance ‐ translating reserves into operating cash flows For personal use only G ld Production Gold P d ti C h Flow Cash Fl From F Operations O ti +51% +340% FY 07 tto FY 11 FY 07 tto FY 11 117 258 239 231 94 77 171 157 154 26 25 24 FY 07 FY 08 FY 09 FY 10 FY 11 1H FY 07 FY 08 FY 09 FY 10
Slide 8: Delivering profits
Delivering profits For personal use only NPAT U d l i NPAT* Underlying 69 54 53 47 15 ‐40 0.2 ‐76 FY 09 FY 10 FY 11 1H FY 09 FY 10 FY 11 1H FY 12 FY 12 A$M A$M * Non-IFRS measure, calculation in Appendix Proven Performance, Creating Value - February 2012 6
Slide 9: Delivering value per share
Delivering value per share For personal use only EPS Cash Flow From Operations Per Share $0 42 $0.42 $0.36 $0.29 $0 21 $0.21 $0 26 $0.26 $0.14 $0.11 -$0.14 FY 10 FY 11 1H FY 12 F* FY 12 FY 09 FY 10 FY 11 1H A$ FY 12 * IRESS broker consensus 20 Feb 2010 A$ Shares adjusted for 6:1 consolidation Nov 20
Slide 10: Delivering cash flow – half on half
Delivering cash flow – half on half For personal use only R Revenue* * C h Flow Cash Fl From F Operations O ti +44%** +65%* 94 249 187 173 60 57 1H FY 11 2H FY 11 1H FY 12 1H FY 11 2H FY 11 1H FY 12 A$M A$M Half year results Half year results * Sales Revenue * 1H FY12 1H FY11 ** 1H FY12 1H FY11
Slide 11: Strong cash position
Strong cash position For personal use only • Net cash backing per share A$0.33 [1] Cash & Debt 110 • Almost os no deb [1] o debt • debt to equity ratio < 1% [1] 79 • Gross tax losses A$342M [2], nott expecting ti tto pay ttax ffor att least l t2 years • Abilityy to fund exploration p and potential p
Slide 12: Gwalia Mine - high quality, long life, rich gold deposit
Gwalia Mine ‐ high quality, long life, rich gold deposit For personal use only • Ore Reserves off 6.9 Mt at 8.9 g/t Au containing 2.0 Moz of gold • Resources extended to 1,840 mbs, open at depth p • Potential to extend Ore Reserves within mining envelope and at depth • Indicative 10+ year mine life
Slide 13: Gwalia Mine - engine room for cash generation
Gwalia Mine ‐ engine room for cash generation For personal use only • Expect E pect to deli deliver er ssustainable stainable gold production in FY12 of 175,000 to 190,000 ounces • Increasing margins as grade increases • Forecast cash cost in FY12 of A$610 - 640/oz [1] • Studies underway to increase
Slide 14: Gwalia - endowment and grade increase at depth
Gwalia ‐endowment and grade increase at depth For personal use only oz/vm ORE RESERVES - Ounces per Vertical Metre Grade g/t Au C7000 20 u C ru 18 rr 6000 e r 16 n e tn 5000 Currently 14 lt y mining at l 1300 b 1300mbs 12 y m4000 im Limited n drilling data 10 i in3000 n i 8 g n g2000 6 a FY12 ta Pro
Slide 15: Exploration – targeting new discoveries to leverage value
Exploration – targeting new discoveries to leverage value For personal use only • Drilling D illi ffor new didiscoveries i • High priority, rich gold endowed areas • 5,000+ km2 off prospective land • 10 targets planned to be d ill d in drilled i FY12 Exploration 22 22 Total Total 12 11 Drilling Dril
Slide 16: Regional strategies to leverage value from existing infrastructure – Leonora
Regional strategies to leverage value from existing infrastructure For personal use only Leonora • King of the Hills: proven development capacity • Regional p exploration Proven Performance, Creating Value - February 2012 14 14
Slide 17: Regional strategies to leverage value from existing infrastructure – Southern Cross
Regional strategies to leverage value from existing infrastructure For personal use only S h Southern Cross C • Net cash generator • On‐going drilling to build optionality Proven Performance, Creating Value - February 2012 15 15
Slide 18: Sound first half FY12 – provides operational leverage
Sound first half FY 12 – provides operational leverage For personal use only • Half H lf on Half H lf comparison i ( FY 12 vs 1H FY 11)) (1H • NPAT up 12% to A$47M U d l i NPAT [3] • Underlying up 86% tto A$53M • EPS up 12% to A$0.14 • Cash flow from operations up 65% to A$94M • Consensus FY 12F EPS
Slide 19: FY Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora S’ h C S’thn Cross Gold koz 175 190 175‐190 55 60 55‐60 90 100 90‐100 320 350 320‐350 production Cash operating 1,170 [1] A$/oz 610‐640 710‐750 790‐830 cost ‐1,220 Capex A$M 55‐60[2] 20‐25 10‐15 85‐100 [1
Slide 20: What to expect
What to expect For personal use only • Increased profitability and cash generation • Delivery of FY 12 Guidance • Disciplined capital management • On market share buy back implemented • Cash resources available to generate shareholder value • Creation of value opportunities • Leonora hoisting shaft
Slide 21: Appendices
Appendices For personal use only Proven Performance, Creating Value - February 2012 19
Slide 22: Board and management – experienced, talented, capable
Board and management – experienced, talented, capable For personal use only E Experienced, i d iindependent d d B Board d • 6 directors • Extensive mining andd public bl company experience • Mining, exploration, legal, financial expertise Experienced, capable management team • Revitalised team under
Slide 23: Board of Directors
Board of Directors St Barbara LIMITED S J Colin Wise » Chairman — Non Executive »] Mr Wise is an experienced corporate lawyer, consultant and company director with significant expertise in the mining and exploration industry and resources, energy and corporate sectors. He spent 24 years with WMC, in
Slide 24: Executive Management
Executive Management St Barbara LIMITED Tim Lehany Managing Director and Chief Executive Officer Tim joined St Barbara in March 2009, and has over 20 years extensive operating experience with a number of mining companies, including Newerest Mining Limited and WMC Limited. Tim is a mining engineer, a
Slide 25: Disciplined capital management adding value
Disciplined p capital p management g adding value For personal use only C Capex* * • Internal growth funded 119 from cash flows 93 • Decision on potential Gwalia hoisting shaft in Q4 FY12 • Decisions based on robust investment criteria • Capital p management g FY 11 FY 12 F ** reviewed regularly wit
Slide 26: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only Leonora Operations S th Southern Cross C Operations O ti Ore Reserves: Ore Reserves: g Au for 2.5 Moz1,2 11.2 Mt @ 7.0g/t 3.5 Mt @ 2.1g/t Au for 233 koz1 Mineral Resources: Mineral Resources: 27.0 Mt @ 6.2g/t A
Slide 27: Gwalia mining strategy
Gwalia mining strategy Dual Lift Stoping in SWB – mining sequence manages the hanging wall For personal use only FY11 2 1 5 4 3 Note: Single lift Hanging 8 Wall Span typically 32m (HR=6.15) 7 Development 6 fully in ore (no 11 Cross section dilution) Proven Performance, Creating Value - February 2012
Slide 28: Gwalia - growing production, improving margins and returns as grade increases
Gwalia ‐ growing production, improving margins and returns as grade increases For personal use only Growing Gwalia Production Increasing Gwalia Grade Declining Cash Cost 175-190 1400 9 8.0-8.5 g/t Au 8 1200 131 6.3 g/t Au 7 1000 6 109 765 800 5 610-640 4 600 3 400 2 200 1 0 0 FY 10 FY 11 FY 12F FY 1
Slide 29: Gwalia – grade by quarter
Gwalia – grade by quarter For personal use only • Majority of ore now sourced from Mined Grade the richer South West Branch. Branch 7.9 8.1 • Grade expected to lift further in 7.5 6.9 2H FY12, leading to an expected corresponding reduction in cash 4.9 operating costs. 2005 Acquired gold assets FY 11
Slide 30: Reserves supplemented whilst production grown
Reserves supplemented whilst production grown For personal use only R Reserves and dPProduction d i 3,069 2,906 2,756 2 574 2,574 2,300 Reserves koz 335 [at year end] 258 239 231 Production koz [[for year] y ] 171 157 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 F* 515,000 ounces of Indicated and Inferred Re
Slide 31: King of the Hills Mine
King of the Hills Mine For personal use only • Satellite underground mine • Successfully developed and commissioned i i d May M 2011 • Opportunity to fully use Gwalia mill capacity and generate increased cash flow • Production rate of 55 55,000 000 to 60,000 ounces p.a. • Life of 4 ½+ years • Deposi
Slide 32: Long life, high grade reserves
Long life life, high grade reserves For personal use only 5,000 koz 7 6 4,000 5 3,000 4 3 2,000 2 1,000 1 0 0 Based on most recently disclosed company filings as at 10 February 2011 Proven Performance, Creating Value - February 2012 30
Slide 33: Gwalia Mine trend
Gwalia Mine trend For personal use only • Structural geology Drill targets Savannah review identified Open pit Harbour Lights outlines prospective targets close to Gwalia N Tower Hill • Drilling of priority targets planned in Gwalia Footwall FY 12 (subject to Leonora Central permits) : ‐ Gwalia Nort
Slide 34: East Lachlan, NSW - targeting copper-gold porphyry deposits
East Lachlan, NSW ‐targeting copper‐gold porphyry deposits For personal use only • Large and d prospective lland d position • Encouraging results from first drilling program • Follow‐up detailed gravity surveys of two areas largely g y completed p • Interpretation of results underway • Subject to an
Slide 35: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only T 100 Sh Top Shareholding h ldi Structure St t Australia, 32% Private 7% USA, 28% Unallocated / not analysed 9% UK 21% UK, Institutions Europe, 3% 84% Asia, 3% Other / not analysed, 13% Analysis and geographic spread of
Slide 36: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Argonaut Securities Troy Irvin M&G Investment Mgt g 18.1% B illi Baillieu R Ch Ray Chantry t Franklin Resources 6.0% Citi Craig Sainsbury Hunter Hall 5.3% Van Eck Ass
Slide 37: Mineral Resources Statement
Mineral Resources Statement As at 30 June 2011* For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Gold Gold Gold Gold kt Au g/t koz kt Au g/t koz kt Au g/t ko
Slide 38: Ore Reserves Statement
Ore Reserves Statement As at 30 June 2011* For personal use only Region Category Proved Probable Total Tonnes Gold grade Gold Tonnes Gold grade Gold Tonnes Gold grade Gold Project kt Au g/t koz kt Au g/t koz kt Au g/t koz Leonora Gwalia Deeps 2 015 2,015 71 7.1 460 4 902 4,902 96 9.6 1 512 1,512 6 9
Slide 39: Competent Persons Statement
Competent Persons Statement For personal use only References to Mineral Resources and exploration results presented in References to Ore Reserves presented in this document have been this document have been produced in accordance with The Australasian produced in accordance with The Australasian Cod
Slide 40: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 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 and underlying net profit after tax. We be
Slide 41: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 NPAT to Underlying NPAT [1] A$000 A$000 A$000 A$000 A$000 Sales revenue 249,315 359,575 172,950 296,760 281,129 EBITDA (including significant items) 88,937 125,190 67,146 33,793 39,701 EBIT (including
Slide 42: Non IFRS Measures
Non IFRS Measures Non‐IFRS For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 Significant items [1] A$000 A$000 A$000 A$000 A$000 Net fair value gains/(losses) on gold options (7,464) 12,946 9,641 (19,513) 1,515 Realised gain on derivates 635 525 ‐ ‐ ‐ Profit on sale of Tarmoola
Slide 43: Investor Relations Enquires
Investor Relations Enquires For personal use only Ross K R Kennedy d Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au ross kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: S
St Barbara — BMO Capital Markets 21st Global Metals & Mining Conference 2012 on 6ix