St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (October 2018)
49 slides from St. Barbara's shareholder meeting presentation, Oct 24, 2018
Slide 1: Presentations to 2018 Annual General Meeting and audio webcast
ASX Release / 24 October 2018 For personal use only Presentations to 2018 Annual General Meeting and audio webcast Attached are the Chairman’s address and the Managing Director and CEO’s presentation to the 2018 Annual General Meeting in Melbourne today. A live audio webcast of the meeting will be a
Slide 2: Chairman's Address to Shareholders
2018 Annual General Meeting Chairman’s Address to Shareholders For personal use only Introduction Good morning ladies and gentlemen and welcome to St Barbara’s 2018 Annual General Meeting. The 2018 financial year has been another highly successful year in which the Company has built on the achieveme
Slide 3: Chairman's Address: Dividends and Growth Initiatives
The Company is in a strong financial position, as we continue to execute on our organic growth projects and consider inorganic opportunities that will add value for shareholders. I will discuss some of our projects and our growth strategy later in this address. For personal use only The Company has
Slide 4: Chairman's Address: Gwalia projects
At the Gwalia mine, the immediate focus is the A$100 million Gwalia Extension Project, which we commenced in March 2017 and which is approximately 50% complete. The first of the surface ventilation shafts is complete, with the second surface shaft underway. The paste For personal use only aggregate
Slide 5: Chairman's Address: Board visit, Simberi and exploration
The Board visited the Gwalia mine two weeks ago and we viewed first-hand the progress made on the Extension Project, including the paste-aggregate-fill infrastructure at 1,420 metres below surface. We were also provided with a technical update on the Gwalia Mass Extraction Project and exploration pr
Slide 6: Culture, community and sustainability
of opportunities over the last 12 months, but we have yet to uncover a merger or acquisition that has survived our due diligence and made sense for shareholders. Going forward we will continue to apply the same disciplined approach. Having the discipline to walk away from a potentially value destruc
Slide 7: Sustainability Report and Board appointment
St Barbara published its second Sustainability Report in conjunction with the Annual Report and it incorporates a number of developments. We responded to the Carbon Disclosure Project for the first time, became a supporter of the Extractive Industries Transparency For personal use only Initiative an
Slide 8: Board appointment and conclusion
Stef is a Non-Executive Director of Clean TeQ Ltd, Deputy Chair of CatholicCare Wilcannia- Forbes Ltd, and advises organisations in the areas of leadership, strategy and regional economic development. For personal use only I am sure that Stef will prove to be a valuable addition to the St Barbara bo
Slide 9: 2018 Annual General Meeting: Managing Director & CEO
BOB VASSIE, MANAGING DIRECTOR & CEO / 24 October 2018 For personal use only 2018 Annual General Meeting Managing Director & CEO Presentation
Slide 10: 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 11: Contents
Contents For personal use only • Safety • Growth & Exploration • FY18 Highlights • Diversity & Sustainability • FY19 Outlook • Conclusion Photo: Gwalia processing plant from the TSF, paste plant in background, June 2018. 3 / 2018 Annual General Meeting Presentation
Slide 12: St Barbara Safety Focus – Start Safe, Stay Safe
St Barbara Safety Focus – Start Safe, Stay Safe St Barbara Safety Focus – Start Safe, Stay Safe For personal use only Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 LTIFR comparison WA mining benchmarks2 2.9 2.1 2.2 0.5 Working at Heights - demonstrat
Slide 13: FY18 Financial Highlights
FY18 Financial Highlights FY18 Financial Highlights For personal use only •Record annual production and record low AISC1 Operational •Cornerstone Gwalia mine with Life of Mine Plan to FY31 excellence •Simberi mine life extension to FY21 •4th consecutive record profit, NPAT of A$227 M Financial perfo
Slide 14: Balance Sheet
Balance Sheet For personal use only Cash and cash deposits at FY18 of A$344M , no debt1 A$M Cash, cash deposits and debt 400 344 300 116 Cash deposits 200 161 137 100 79 77 228 Cash 0 -1 -100 Debt -200 -226 -300 -340 -347 -400 FY14 FY15 FY16 FY17 FY18 1. Amounts rounded to nearest $ million. Balance
Slide 15: SBM Share Price
SBM Share Price For personal use only SBM share price vs ASX All Ords Gold Index 1,000% FY16-FY18 3 yr TSR 890% 900% 800% 700% 711% SBM 600% 500% 400% FY18 1 yr TSR 72% 300% 200% 207% XGD 100% 109% XAO 0% Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 SBM ASX All Ords Gold Index (XGD) ASX All Ords
Slide 16: Australian Gold Peer Comparison – NPAT and FCF
Australian Gold Peer Comparison – NPAT and FCF1,2 For personal use only • Gwalia and Simberi both delivered strong contributions to FY18 profitability • St Barbara ranks favourably with Australian gold peers 14% 14% Bubble size = Bubble size = FY18 gold production1 12% SBM FY18 gold production1 12%
Slide 17: FY19 Outlook
FY19 Outlook AISC1 (A$/oz) 1,464 For personal use only 1,293 1,325 Simberi 1,187 1,068 1,065 1007 932 Consolidated 907 891 950 Gwalia 841 802 783 785 FY15 FY16 FY17 FY18 FY19F Gold Production koz (continuing operations) 403 377 381 363 328 110 116 135 80 110 248 267 265 268 253 FY15 FY16 FY17 FY18 F
Slide 18: Gwalia Animation
Gwalia Animation For personal use only Place holder for gwalia animation Animation of Gwalia underground mine available at https://youtu.be/xnnxRwKy6gk 10 / 2018 Annual General Meeting Presentation
Slide 19: Gwalia Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule For personal use only • 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 within budget, approximat
Slide 20: Exploration – Gwalia Deeps and Seismic Targets
Exploration – Gwalia Deeps and Seismic Targets For personal use only Gwalia Deep Drilling • Daughter holes GWDD16D and GWDD16E have been completed, intersecting the mine sequence between 1,940-2,000 mbs. • Significant results include1: o 6.0 m at 12.2 g/t Au o 18.6 m at 10.3 g/t Au 1. For full expla
Slide 21: Exploration – Gwalia Deeps and Seismic Targets
Exploration – Gwalia Deeps and Seismic Targets For personal use only Gwalia Seismic Exploration • Two hole drill program completed in June quarter showed shearing and alteration similar to the Gwalia deposit, with some gold mineralisation • New seismic target identified further south of previous 2 t
Slide 22: Simberi PNG
Simberi PNG For personal use only Simberi –Processing plant and Pigiput Bay in centre, Ropecon to left, heavy vehicle workshop to right. 14 / 2018 Annual General Meeting Presentation Photo taken from edge of Pigiput mining pit.
Slide 23: Simberi Strategic Review
Simberi Strategic Review Simberi Strategic Review • Decision in November 2016 to retain Simberi operating assets was the For personal use only right one • Cash contribution1 since the decision to retain the asset is A$160 million Quarterly cash contribution from Simberi A$M Decision to retain $82 M
Slide 24: Simberi Sulphide – Potential Long Life Mine Extension
Simberi Sulphide – Potential Long Life Mine Extension Modelled ultimate pit shells1 with associated sulphide reserves For personal use only 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • S
Slide 25: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 Sorowar Pit For personal use only Best intersections include (all results downhole): 125SORDGC003: 33 m at 5.67 g/t Au from 55 m 165SORDGC013: 9 m at 6.42 g/t Au from 91 m 165SORDGC014: 7 m at 5.45 g/t Au from 157 m, EOH For full explanation and r
Slide 26: Exploration
Exploration For personal use only L: Gwalia – deep drilling June 2018. R: Simberi – Cu-Au Porphyry drilling at Pigiput, Simberi Island, August 2018. 18 / 2018 Annual General Meeting Presentation
Slide 27: Exploration – Key Developments
Exploration – Key Developments Gwalia, WA For personal use only • Significant intersections at 2,000 mbs • New seismic target, south of current targets Simberi Island, PNG • Further sulphide drilling intersections beneath Sorowar pit • Testing for copper-gold porphyry deposits at depth below Pigiput
Slide 28: Growth Pipeline
Growth Pipeline For personal use only 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 Evaluati
Slide 29: Strategy for the Next Five Years – Stronger for Longer
Strategy for the Next Five Years – “Stronger for Longer” For personal use only 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
Slide 30: Sustainability Report
Sustainability Report Sustainability Report • Disclosure guided by GRI standards For personal use only • Complements Annual Report and • Available on website at Corporate Governance Statement www.stbarbara.com.au/sustainability/ Sustainability Report topics Governance & Economic Performance • Core v
Slide 31: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in For personal use only 2014-15, 2015-16, 2016-17 and 2017-18 and the only mining company to be certified in 2017-18. • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards • 2018 Winner of AM
Slide 32: Conclusion
Conclusion • Record production, profit and cash For personal use only flow in FY18 • Paying fully franked dividends • $350 million cash at bank at 30 September 2018, no debt • Mine life extended at both operations • Fully funded near-term growth options at both operations • Exploration focus – St Ba
Slide 33: Appendices
Appendices For personal use only Explosives crew at Gwalia: Tim Atherton, Ian James and Jaime-Lee Hemphill, April 2018, photo by Jane Graham. 25 / 2018 Annual General Meeting Presentation
Slide 34: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs , Guidance Summary For personal use only Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Final Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY18 FY191 St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 Year to 30 June Year to
Slide 35: St Barbara Today – Overview of Operations
St Barbara Today – Overview of Operations ASX 200 listed Company (SBM), founded 1969 Consolidated production For personal use only • Shares on issue 524 M • FY18 403 koz @ AISC4 A$891/oz • Market Cap2 A$2,181 M • FY19F3 363 koz @ AISC A$1,065/oz • Ore Reserves June 2018 3.9 Moz 1 • Mineral Resources
Slide 36: Australian Gold Peer Comparison & FY18 Share Metrics
Australian Gold Peer Comparison & FY18 Share Metrics For personal use only • Underlying profit1 has increased year on year since FY14 • Commenced paying fully franked dividends in FY17 • Dividend yield compares favourably to Australian gold peers Dividend yield 1,2 4% 39 EPS (basic, A$ 32 Dividend Y
Slide 37: Reserves and Resources as at June 2018
Reserves and Resources as at 30 June 2018 For personal use only Gwalia Reserves and Resources Ore Reserves 4.3 • Reduced by mining depletion 4.0 3.9 1.4 1.3 Simberi Sulphide • Update to reserves and 0.5 1.4 0.6 Simberi Oxide resources following completion 0.3 0.3 0.3 0.3 of GMX Feasibility Study 1.8
Slide 38: Segment Profit and Cash Contribution from Operations
Segment Profit and Cash Contribution from Operations For personal use only Reportable segment profit / (loss) before tax1 Cash contribution from operations1, 2, 3 A$M A$M 249 255 244 220 219 198 186 139 78 83 70 51 34 33 -3 -33 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Leonora Simberi Leonora Simberi
Slide 39: Exploration Activities
Exploration Activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For personal use only For full explanation and results refer to ASX release 17 Oct 2018 ‘Quarterly Report Q1 Sep FY18’ 33 / 2018 Annual General Meeting Presentation
Slide 40: Gwalia Mass Extraction – PFS
Gwalia Mass Extraction – PFS • Pre-feasibility Study announced February 2018 • Comprises selective “island pillar” mining and hydraulic hoisting For personal use only • Utilises increased ventilation from GEP • Supports mine life to FY31 • Feasibility study due March 2019, expanded to consider alter
Slide 41: Exploration – Simberi Island, PNG, Q1 September FY19
Exploration – Simberi Island, PNG, Q1 September FY19 For personal use only For full explanation and results refer to ASX release 17 October 2018 ‘Quarterly Report Q1 September FY19’ 33 / 2018 Annual General Meeting Presentation
Slide 42: Ore Reserves Summary as at June 2018
Ore Reserves Summary as at 30 June 2018 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) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7
Slide 43: Mineral Resources Summary as at June 2018
Mineral Resources Summary as at 30 June 2018 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) 4,581 7.1 1,048 14,690
Slide 44: Shareholders and Broker Coverage
Shareholders and Broker Coverage Broker Research Coverage For personal use only Not analysed Argonaut James Wilson 8% Institutional 88% Canaccord Reg Spencer Non Citi Trent Allen Institutional 4% Credit Suisse Mike Slifirski Deutsche Bank Tim Hoff GMR David Radclyffe JP Morgan Mathew Hocking Macquar
Slide 45: Board of Directors
Board of Directors Tim Netscher For personal use only Chairman– Non Executive Bob Vassie Appointed Director February 2014 Managing Director and CEO Appointed Chairman July 2015 Appointed July 2014 Mr Netscher is an experienced international mining Mr Vassie is a mining engineer with over 30 years ex
Slide 46: Executive Leadership Team
Executive Leadership Team For personal use only Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with Mr Campbell-Cowan is a C
Slide 47: 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 48: Non-IFRS Measures
Non-IFRS Measures We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non- For personal use only IFRS financial measures, including cash operating costs. We believe that these measures provide meaningful information to as
Slide 49: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell For personal use only 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 Mana