St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2017)
57 slides from St. Barbara's shareholder meeting presentation, Nov 29, 2017
Slide 1: Presentations to 2017 Annual General Meeting and audio webcast
ASX Release / 29 November 2017 Presentations to 2017 Annual General Meeting and audio webcast Attached are the Chairman’s address and the Managing Director and CEO’s presentation to the 2017 Annual General Meeting in Melbourne today. A live audio webcast of the meeting will be available on St Barbar
Slide 2: Chairman's Address to Shareholders
2017 Annual General Meeting Chairman’s Address to Shareholders Introduction Good morning ladies and gentlemen and welcome to St Barbara’s 2017 Annual General Meeting. It has been a successful year for the Company and I am pleased to share with you some of the recent highlights as well as update you
Slide 3: Chairman's Address: cash position and dividend
March 2017. Our cash position continues to build, and as at 30 September 2017, we had $199 million cash at bank, after having paid our first dividend since 1995. I am sure you will agree that the operational and financial transformation of the Company over the past three years has been remarkable. W
Slide 4: Dividend update and the St Barbara culture
The Board expects to provide an update on dividends with the first half 2018 financial results in February next year. The St Barbara culture I think it is worth exploring at this point what I believe to be the driving force behind the Company’s transformation, and that is the culture and the people
Slide 5: The St Barbara culture
year, we won the award for excellence in gender diversity programs and performance. Our people champion causes that are close to their hearts, in particular supporting the communities in which the company operates and where we live. At Simberi, we support the community through the provision of criti
Slide 6: Strategy and outlook
I am also pleased to say that whenever I engage with our employees on our sites, I detect an attitude of pride in belonging and a desire to continuously improve and indeed to excel. Strategy and outlook Turning now to our strategy and the outlook for the Company. The continued focus of the Board is
Slide 7: Gwalia seismic program and Simberi mine life
We have also been doing some exciting work with a 3D seismic reflection program in the Gwalia area. The survey aims to identify extensions to the lode system and other potential occurrences of Gwalia-style mineralisation. Our analysis of the results is ongoing, but we have identified structures that
Slide 8: Inorganic growth and Board composition
With the Company in a strong financial position, we are also in a position to look at inorganic growth opportunities. We have a systematic and diligent evaluation process underway and we will consider sensible inorganic growth where it increases shareholder value. Board composition Finally, I would
Slide 9: In conclusion
In conclusion In closing, I would like to congratulate our CEO, Bob Vassie, his Leadership Team and all those who work at St Barbara for their achievements in what has been a terrific year. I also extend my thanks to my fellow Directors, Kerry, David and Bob, for their ongoing commitment to the Comp
Slide 10: 2017 Annual General Meeting Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 29 November 2017 2017 Annual General Meeting Managing Director & CEO Presentation
Slide 11: 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 12: Contents
Contents • Safety • Growth initiatives • FY17 Highlights • Conclusion • FY18 Outlook • Appendices 3 / 2017 Annual General Meeting Presentation Photo: Starting shift, Gwalia, Scott Thomas
Slide 13: TRIFR safety record
TRIFR safety record Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 • Record low TRIFR1 of 1.2 Gwalia Emergency Response Team (ERT) training exercise. 1. Total Recordable Injury Frequency Rate per million hours worked (12 month avg). 4 / 2017 Annual General Mee
Slide 14: FY17 key achievements
FY17 key achievements • Record safety performance of 1.2 TRIFR1 Operational • Record consolidated annual production2 & record low AISC3 excellence • Achieved or exceeded guidance at both operations • Record cash flow from operating activities $303 M (FY16: $243 M) Record results • Record profitabili
Slide 15: FY17 Key Financial Metrics
FY17 Key Financial Metrics 50 EBITDA margin % 1,3 47 3 64 Gwalia EBITDA margin % 60 32 EPS (basic, cents) 26 61 ROCE (%) 1,3 48 DPS (cents) 6 2,3 Dividend yield (%) 2.1 FY17 FY16 1. Underlying, see page 3 2017 Financial Report 6 / 2017 Annual General Meeting Presentation 2. On share price as at 30 J
Slide 16: Segment profit and cash contribution from operations
Segment profit and cash contribution from operations Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2, 3 A$M A$M 244 249 220 198 186 139 70 51 34 33 -3 -33 FY15 FY16 FY17 FY15 FY16 FY17 Leonora Simberi Leonora Simberi 1. Results for Leonora include King of the Hill
Slide 17: Balance Sheet
Balance Sheet A$M Cash and debt Net Debt / Net Cash1 A$M Cash 199 200 200 160 Debt 161 98 137 100 100 Net Cash 79 77 31 0 0 -0.5 -15 -100 -100 -92 Net Debt -134 -200 -226 -200 -199 -243 -300 -300 -270 -340 -347 -311 -320 -312 -400 -400 FY14 FY15 FY16 FY17 FY15 FY15 FY15 FY15 FY16 FY16 FY16 FY16 FY17
Slide 18: Reserves and Resources as at June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves Gwalia Reserves (Moz) 4.3 • Increased by net 325 koz after depletion 4.0 1.4 1.3 • Lower average grade 8.3 to 7.8 g/t Au 0.5 0.6 0.3 0.3 • Cost of discovery at depth in FY17 $23/oz 2.1 (FY16: $30/oz) 1.8 Gwalia Resources FY16 FY17 Gwalia Tower H
Slide 19: SBM share price
SBM share price SBM share price vs ASX All Ords Gold Index 3,500% 3,000% 2722% 2,500% 2,000% 1,500% 1,000% 500% 206% 100% 0% Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 SBM ASX All Ords Gold Index (XGD) Source: IRESS 1 Jul 2014 to 24 Nov 2017 (weekly data), index rebased to 100 at 1 July 2014 1
Slide 20: FY18 Outlook
FY18 Outlook AISC1 (A$/oz) 1,464 1,293 1,320 Simberi 1,187 1,007 1,003 932 907 Consolidated Gwalia 841 865 783 785 FY15 FY16 FY17 FY18F Gold Production koz (continuing operations) 377 381 363 328 110 116 110 80 248 267 265 253 FY15 FY16 FY17 FY18F Guidance Gwalia Simberi mid-points 1. Non IFRS measu
Slide 21: Simberi Strategic Review – One year on
Simberi Strategic Review – One year on • Decision to retain Simberi operating assets was the right one • Cash contribution since the decision to retain the asset is $73 million • Simberi well placed to achieve FY18 production and cost guidance • 60 koz of forward contracts to be delivered monthly be
Slide 22: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 13 / 2017 Annual General Meeting Presentation
Slide 23: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Project includes new ventilation shafts and • A$4M capex spent in Q1 FY18 – roads, underground crushing of waste, mixed drilling, engineering, underground with paste to fill emptied stopes development, raisebore site preparation, • Budget of A$100 mill
Slide 24: Exploration | Gwalia + Leonora Province Summary
Exploration | Gwalia + Leonora Province Summary Gwalia Seismic Reflection Program • The survey will aim to identify extensions to the lode system and other potential occurrences of Gwalia style mineralisation • Analysis ongoing, positive indications of Gwalia-like systems to be targeted by drilling
Slide 25: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration • Results analysis during H1 FY18 • Key geological features strongly reflective • Early results indicate downward plunge below 2,500 mbs • Inform drilling program • Further seismic testing planned in Greater Gwalia area For full explanation and
Slide 26: Exploration | Gwalia Deep + Intermediates Drilling Program
Exploration | Gwalia Deep + Intermediates Drilling Program For full explanation and results refer to ASX release 17 October 2017 ‘Quarterly Report September 2017’ 17 / 2017 Annual General Meeting Presentation
Slide 27: Exploration | Gwalia Deeps, Q1 results and FY18 target
Exploration | Gwalia Deeps, Q1 results and FY18 target For full explanation and results refer to ASX release 17 October 2017 ‘Quarterly Report September 2017’ 18 / 2017 Annual General Meeting Presentation
Slide 28: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA • A 564 hole aircore drilling program 24,260 m was completed in Q1 FY18, testing 17 targets • A 3,000 metre Reverse Circulation (RC) and a 10,000 metre aircore drill program is planned in Q2 FY18 to follow-up encouraging aircore results • A su
Slide 29: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Australia Pinjin Greater Gwalia Tower Gwalia Catalyst Gwalia Peel Hill Extension Metals Mine 7% Mining 11%. Inorganic growth Evaluating exploration, project, development and operating assets in a range of sizes in Australia a
Slide 30: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report and Corporate Governance Statement Governance & Economic Performance • Available on website at • Ethical business conduct with all www.stbarbara.com.au/sustainability/ stakeholders sustainability_rep
Slide 31: Gender Diversity – National Excellence Award 2017
Gender Diversity – National Excellence Award 2017 • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards • 2017 Winner Company Gender Diversity Program, Victorian Women in Resources Awards Photo: Val Madsen, St Barbara General Manager Human Resources, acce
Slide 32: Winner '2017 Digger of the Year' Award
Winner ‘2017 Digger of the Year’ Award Diggers and Dealers awards presentation 9 Aug 2017 (L to R): Ian Murray, MD & CEO, Gold Road Resources Ltd ‘2017 Dealer of the Year’, Tim Netscher, Non-Executive Chairman of Gold Road Resources Ltd & St Barbara Ltd, Bob Vassie, MD & CEO, St Barbara Ltd ‘2017 Di
Slide 33: Conclusion
Conclusion • FY17 another record year – safety, production, cash flow and low AISC • A$0.06 fully franked full-year dividend • Awards for gender diversity, wellbeing programs and ‘Digger of the Year’ • At Gwalia, Resources increased by net 1.2 Moz, Reserves increased by net 325 koz • Profitable grow
Slide 34: Appendices
Appendices Summer Storms by Finlay Wilkinson, Leonora, Jan 2017 Underground at Gwalia Oct 2017, L to R: Ashleigh Smythe, Graduate Geologist, Kerry Gleeson, Non-exec 25 / 2017 Annual General Meeting Presentation Director, Tim Netscher, Non-exec Chairman, David Moroney, Non-exec Director, Bob Vassie,
Slide 35: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Guidance Consolidated FY17 FY17 FY17 FY18 FY181 Production Gwalia oz 64,916 62,098 265,057 64,283 245 to 260 koz Simberi oz 30,430 32,128 116,044 33,976 105 to 115 koz Consolidated oz 95,346 94,226 381,101
Slide 36: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM), est. 1969 Commodity Gold (Au) Papua Simberi Operations New Guinea Market cap1 A$1.6B @ A$3.13/sh Shares1 515 M Liquidity2 3.4 M/day (0.7%) FY17 EPS3 A$0.32 Australia FY17 DPS A$0.06 Leonora Operations (Gwalia mine) Cash4 A$199 M Debt Nil5 Ore Reserves (JORC)6 4
Slide 37: FY17 actual vs guidance
FY17 actual vs guidance FY17 Actual vs guidance Production - Gwalia (koz) 245 265 265 260-265 Production - Simberi (koz) 95 105 105 110 116 AISC - Gwalia (A$/oz) 785 795 815 850 850 910 1,285 AISC - Simberi (A$/oz) 1187 -1,330 1,330 1,490 80% 85% 90% 95% 100% 105% 110% 115% 120% 100% = initial guida
Slide 38: Consolidated 1Q FY18 results
Consolidated 1Q FY18 results AISC (A$/oz) 959 935 FY17 average A$907/oz 889 • Consolidated production of 876 862 98 koz (Q4 FY17: 94 koz) Production (koz) • Gwalia 64 koz (Q4: 62 koz) • Simberi 34 koz (Q4: 32 koz) 99 95 98 93 94 25 28 30 32 34 • Consolidated AISC1 of A$889/oz (Q4: A$959/oz) • Gwalia
Slide 39: Gwalia Q1 FY18 results + FY18 guidance
Gwalia Q1 FY18 results + FY18 guidance AISC (A$/oz) 872 816 774 FY17 average A$785/oz 786 Q1 Production 716 Mined Grade 11.9 • 64,283 oz (Q4 FY17: 62,098 oz) (g/t Au) 11.3 10.4 10.7 • AISC1 A$816/oz (Q4: A$872/oz) 9.2 FY17 average 10.7 g/t Au • Mined grade of 10.7 g/t Au higher Reserve grade 7.8 g/t
Slide 40: Simberi Q1 FY18 results + FY18 guidance
Simberi Q1 FY18 results + FY18 guidance AISC (A$/oz) 1,359 1,277 FY17 average A$1,187/oz 1,025 Q1 FY18 production 1,125 1,027 • Record 33,976 oz (Q4 FY17: 32,128 Production (koz) oz) • AISC1 A$1,027/oz (Q4: 1,125/oz) 32.1 34.0 • Record mill through-put and 30.4 improved recovery 28.1 25.4 FY18 guida
Slide 41: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 32 / 2017 Annual General Meeting Presentation
Slide 42: Exploration FY18 Guidance - A$16 to A$20 million
Exploration FY18 Guidance - A$16 to A$20 million A$8 - A$10 million Gwalia • Gwalia Deep Drilling infill + Intermediates • Gwalia Seismic A$4 - A$5 million Pinjin WA • Aircore drilling of targets identified in FY17 A$4 - A$5 million PNG • Simberi Oxides/Sulphides • Tatau Oxides/Sulphides Option and
Slide 43: Exploration | Gwalia, Q1 FY18 results
Exploration | Gwalia, Q1 FY18 results For full explanation and results refer to ASX release 17 October 2017 ‘Quarterly Report September 2017’ 34 / 2017 Annual General Meeting Presentation
Slide 44: Exploration | Gwalia, Q1 FY18 results
Exploration | Gwalia, Q1 FY18 results For full explanation and results refer to ASX release 17 October 2017 ‘Quarterly Report September 2017’ 35 / 2017 Annual General Meeting Presentation
Slide 45: Exploration | Pinjin, Q1 FY18 results
Exploration | Pinjin, Q1 FY18 results For full explanation and results refer to ASX release 17 October 2017 ‘Quarterly Report September 2017’ 36 / 2017 Annual General Meeting Presentation
Slide 46: Exploration | Tabar Island group, PNG, Q1 FY18
Exploration | Tabar Island group, PNG, Q1 FY18 Tatau Island • Diamond drill program completed at Mt Tiro, Nepewo, Mt Siro and Seraror (Southwest Tatau) • Newcrest Option and Farm-in Surface (soil and rock chip) sampling program ongoing • Copper-Gold and Copper-Molybdenum drill targets identified For
Slide 47: Exploration | Tatau Island, PNG, Q1 FY18
Exploration | Tatau Island, PNG, Q1 FY18 Copper-gold porphyry exploration Newcrest Option and Farm-in • Surface (soil and rock chip) sampling program ongoing • Talik North prospect identified as priority drill target • Subject to access, diamond drilling to commence in Q2 FY18 • Other prospects iden
Slide 48: Exploration | Horsepaddock Well – Leonora province
Exploration | Horsepaddock Well – Leonora province Q2 FY18 commencing geophysical surveys at Horsepaddock Well • Previous exploration to 2006 highlighted potential for a granite-intrusive type of deposit under ultramafics • Recent improvements in the depth penetration of IP and SAM (Induced Polarisa
Slide 49: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 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) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 50: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 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) 5,045 7.8 1,265 14,877 6.4 3,042 3,831 6.3 7
Slide 51: Predominantly institutional share register
Predominantly institutional share register Australia Not analysed Institutional 34% 10% 85% USA 30% Non Institutional 5% UK 17% Other 11% Not analysed 8% Data as at 15 Nov 2017 42 / 2017 Annual General Meeting Presentation
Slide 52: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 9.7% Argonaut James Wilson M&G Investment Mgt 6.3% Vinva 5.2% Canaccord Reg Spencer Institutional Shareholders 2 85% Citi Trent Allen Shares on issue 515M Credit Suisse Mike Slifirski American De
Slide 53: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years Mr Netscher is an experienced international mining international mining ind
Slide 54: Executive Leadership Team
Executive Leadership Team 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 over Mr Campbell-Cowan is a Chartered Mr Cole
Slide 55: 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 56: Non-IFRS Measures
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. We believe that these measures provide meaningful information to assist management, invest
Slide 57: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Alistair Reid Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), Bob Vassie (MD&CEO), Tim Ric