St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (September 2007)
42 slides from St. Barbara's roadshow presentation, Sep 21, 2007
Slide 1: North American Roadshow Presentation
ASX Shareholders Report St Barbara For personal use only North American Roadshow Presentation We attach a copy of a presentation being given by Mr Eduard Eshuys, Managing Director & CEO, on a North American Roadshow. Ross Kennedy General Manager Corporate Services/Company Secretary 21 September 2007
Slide 2: Leading Australian Gold Producer and Explorer
For personal use only Leading Australian Gold Producer and Explorer Eduard Eshuys, Managing Director & CEO September 2007
Slide 3: Recent Achievements
2 Recent Achievements For personal use only Doubled reserves to 2.3 Moz Achieved gold production forecast of 171 koz pa EBITDA $46M (US$38M) from operations Gwalia Hoover Decline over 80% complete Purchased put options for 1.5 Moz Substantial exploration success at Tower Hill
Slide 4: Capital Structure
3 Capital Structure For personal use only Mk Cap A$440M (US$370M) Ords listed on ASX – SBM Notes listed Singapore 836M ordinary shares Major Shareholders 18M options (unlisted) • Resource Capital A$100M Conv. Notes Funds – 9.4% (Convert to 137.7M ords) • JP Morgan Asset Management - 5.
Slide 5: Future Operating Cash Flows
4 Future Operating Cash Flows For personal use only Full exposure to increase in gold price Zero gold delivery commitments Purchased put options at a cost of A$11M 1.30 Moz for Gwalia at A$700/oz for 8 years 0.17 Moz for SX at A$760/oz for FY2008 Underwrite cash flow should gold price fall
Slide 6: Our Current WA Interests
55 Our Current WA Interests… For personal use only A large world class land bank – 7000+ sq km Only 30% of Southern Cross & Leonora land effectively explored Operations and community infrastructure in place Spare capacity to allow for production expansion Well established regulatory enviro
Slide 7: Company Drivers
6 Company Drivers For personal use only Producer with strong exploration focus Many areas under explored because Mining in 1980s based on A$400/oz (US$333) gold price and high cost plants Drilling often only to shallow depths of 100m Overburden made geological interpretation difficult New
Slide 8: Exploration Strategy
7 Exploration Strategy For personal use only Drilling focus on open pit reserves Outstanding results at Tower Hill – previously not tested at depth Good results from Southern Cross – revitalizing old areas Nickel and base metal drilling at Leonora – targets at 100m plus depth
Slide 9: Recent Exploration Success
8 Recent Exploration Success For personal use only Reserves increased from 1 Moz to 2.3 Moz High average grade of reserves at 6g/t Reserve delineation cost A$22/oz (US$18) Resources increased from 7.1 Moz to 8.4 Moz
Slide 10: Southern Cross Operations
9 Southern Cross Operations For personal use only
Slide 11: Southern Cross Achieved Production Forecast
10 Southern Cross Achieved Production Forecast use only 70 60 60 50 Production (Koz) 49.5 For personal 40 43.7 45 41.6 40.1 38.1 37.8 30 20 10 F.cast Target 0 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-08
Slide 12: Southern Cross - Marvel Loch the Cornerstone
11 Southern Cross - Marvel Loch the Cornerstone For personal use only
Slide 13: Southern Cross Operations
12 Southern Cross Operations For personal use only Marvel Loch underground production at 800,000 tpa Open pit mining at Hercules and GVG Mill capacity 2.5Mtpa Nevoria reserves established Drilling focused on expanding open pit reserves
Slide 14: Southern Cross Open Pits Focus
13 Southern Cross Open Pits Focus For personal use only Total endowment of 12Moz 20+ open pit targets Cutback of pits mined at $400/oz (US$333) with small scale high cost plants Existing roads and infrastructure
Slide 15: Southern Cross - GVG Open Pit Focus
14 Southern Cross - GVG Open Pit Focus For personal use only Mining at Great Victoria Bronco East new discovery Reserves and mining at other targets by Jan 2008 Mineralised strike length 7km
Slide 16: Bronco East Cross Section
15 Bronco East Cross Section For personal use only
Slide 17: Nevoria
For personal use only Nevoria 16
Slide 18: Nevoria Cross Section – Western End
17 Nevoria Cross Section – Western End For personal use only Pits previously mined to 100-120 metres Reserves already defined at Eastern End Western End reporting encouraging results Focus now on open pit mining in 2008 Target grade 4g/t
Slide 19: Gwalia
For personal use only Gwalia 18
Slide 20: Gwalia and Tower Hill
19 Gwalia and Tower Hill For personal use only
Slide 21: Gwalia Hoover Decline – 80%+ complete
20 Gwalia Hoover Decline – 80%+ complete For personal use only Hoover Decline at 830 metres below surface Underground stress levels remain with-in plan Gwalia gold production Sept Quarter 2008 Initial rate of 100,000 oz pa Building to 200,000 oz pa Current reserve life 9+ years Cash costs A$40
Slide 22: Gwalia Hoover Decline at 830m
21 Gwalia Hoover Decline at 830m For personal use only 830m
Slide 23: Gwalia Reserves & the Future
22 Gwalia Reserves & the Future For personal use only
Slide 24: Gwalia Upside
For personal use only Gwalia Upside 830m 23
Slide 25: Gwalia - the High Grades
24 Gwalia - the High Grades For personal use only Ounces Per Vertical Metre 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 975 1035 1095 1155 1215 1275 1335 1395 1455 1515 1575 1635 1695 Level Below Surface (m)
Slide 26: Leonora Open Pits
25 Leonora Open Pits For personal use only Gwalia mill <50% utilised by Gwalia production Tower Hill past production 200 koz, Kailis 50 koz Resources of 600koz Evaluating cut backs at Tower Hill and Kailis Other targets to be drilled
Slide 27: Tower Hill
26 Tower Hill For personal use only 2 km from Gwalia mill Gwalia mill has 600-800ktpa spare capacity Benefit from nearby existing infrastructure 6 drill rigs on site Initial reserves expected in Jan 2008 Development options – fast track review
Slide 28: Tower Hill & Gwalia-Regional Geology
27 Tower Hill & Gwalia-Regional Geology For personal use only
Slide 29: Tower Hill – Cross Section
28 Tower Hill – Cross Section For personal use only
Slide 30: Tower Hill – Cross Section
29 Tower Hill – Cross Section For personal use only
Slide 31: Tower Hill – Drilling Results
Tower Hill – Drilling Results For personal use only
Slide 32: Tower Hill – Long Section
31 Tower Hill – Long Section For personal use only
Slide 33: World Class Nickel Province
32 World Class Nickel Province For personal use only Nickel production is~100kt pa St Barbara’s tenements cover >100 km strike of this world class province Encouraged by results to date A$5M base metal budget for 2008
Slide 34: Leonora Base Metal Targets
33 Leonora Base Metal Targets For personal use only Jaguar highlights the prospectivity Jaguar mineralisation starts at 250mbs Drilling within St Barbara’s tenements less than 50m Drilling to commence early 2008
Slide 35: Objectives for Next Months
34 Objectives for Next 12 Months For personal use only Produce 175k oz pa @ A$505/oz (US$424) cash cost at Southern Cross Commence Gwalia gold production by Sept 08 Establish reserves at Tower Hill and start mining Expand open pit reserves at Southern Cross In preparation for 450,000 oz annual p
Slide 36: Expanding Production to 120koz/qtr
35 Expanding Production to 120koz/qtr For personal use only 140 Leonora Open Pits 120 Gwalia Southern Cross 100 Production (Koz) 80 60 40 Target Target 20 0 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Sep- Dec- 06 06 06 06 07 07 07 08 08
Slide 37: St Barbara's Cost Position
36 St Barbara’s Cost Position For personal use only Australian Gold Cost Curve 1200 1000 800 A$ Cash Cost 600 400 SBM SBM End 2006 End 2008 200 A$474 A$485 (actual) (target) 0 0.5M 1.5 Based on December quarter Cumulative Production Moz
Slide 38: St Barbara's Value per Resource Ounce against Australian Companies
37 St Barbara’s Value per Resource Ounce against Australian Companies For personal use only A$ Market Cap / Resource Ounce 250 200 150 100 50 0 SBM AXM CNT KCN EQI CRE NCM LGL SGX BSG AVO Current Comparison - Source Southern Cross Equities July 07
Slide 39: St Barbara's Value Compared to Canadian Gold Company Averages
38 St Barbara’s Value Compared to Canadian Gold Company Averages For personal use only Enterprise Value / Resource Ounce Gold Explorers Gold Developers Small Gold Producers SBM 0 20 40 60 80 100 US$/oz Source data on Canadian averages – Haywood Securities June 07
Slide 40: Longer Term Objectives by 2010
39 Longer Term Objectives by 2010… For personal use only Expand Southern Cross & Leonora production to 600,000 oz pa Moving from 3rd to 2nd quartile of Australian cost curve Pursue growth through acquisitions and/or discovery Convert exploration successes into shareholder wealth
Slide 41: St Barbara's targets of 2010
40 St Barbara’s targets of 2010 For personal use only Production of 1Moz gold pa Reserves of 10Moz gold
Slide 42: Disclaimer
41 For personal use only Disclaimer: This presentation includes certain statements, estimates and projections with respect to the future performance of St Barbara. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove to no