31 slides from St. Barbara's corporate update, Jul 10, 2009
Slide 1: Strategic Review Outcomes
For personal use only Strategic Review Outcomes 10 July 2009 Tim Lehany, Managing Director & CEO 1 1
Slide 2: 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 secur
Slide 3: Outline
Outline For personal use only • June 2009 Half production achieves forecast • Strategic Review completed • Forecast production growth over 3 years based on reserves • Financial positioning for medium term sustainable cash flows • Summary • Appendices 3
Slide 4: June 2009 Half production achieves forecast
For personal use only June 2009 Half production achieves forecast 4
Slide 5: Operational improvements are working…
Operational improvements are working… For personal use only June 2009 half production forecasts have been achieved. • Focus on improving performance Koz Sth Cross & Leonora June Half 09 136 – Specialist mining expertise mobilised 134 – Mine management and processes strengthened Guidance 132 range •
Slide 6: Strategic Review completed
For personal use only Strategic Review completed 6
Slide 7: Framework for the Strategic Review
Framework for the Strategic Review For personal use only The review has been led by Tim Lehany, who joined the Company as MD/CEO in March 2009. • Comprehensive holistic assessment covering all aspects of Company operations – Open and honest review of the entire asset portfolio, systems and processes
Slide 8: Key outcomes
Key outcomes For personal use only St Barbara has a strong long-term future underpinned by the Gwalia operation. • Key outcome is a much stronger emphasis on lower-cost, higher-margin gold production – Replaces strategy of utilising excess plant capacity with lower grade open pit ore • Three year pl
Slide 9: Implementation
Implementation For personal use only • Drive Gwalia development • Strengthen operating • Leverage strong Gwalia cash reliability and capability flows Shareholder Value Horizon • Grow output and • Develop project pipeline opportunities • Utilise excess mill capacity • Reduce costs • Identify new grow
Slide 10: The Three Year Plan
The 3 Year Plan For personal use only The three year plan is to maximise sustainable cash flows, deliver strong investment returns and pursue growth options to enhance shareholder value. • Based substantially on current reserves – High level of confidence in being able to deliver to promise Forecast
Slide 11: What hasn't changed
What hasn’t changed For personal use only The core basis of the St Barbara value proposition remains the same. • Australian based gold producer 3.1 Moz Reserves • Two gold producing operations in significant gold producing areas Nevoria • Established plant and infrastructure • Strong reserve positio
Slide 12: Forecast production growth over three years based on reserves
For personal use only Forecast production growth over 3 years based on reserves 12
Slide 13: Gwalia
Gwalia For personal use only An updated mine plan optimises this exciting deposit. • Production growth with increasing grade and ore body width at depth Three year forecast • Priority for FY10 is driving the Hoover 250 12 decline and level access 10 – Reach the richer and wider part of the ore body
Slide 14: Gwalia value increases with depth
Gwalia value increases with depth For personal use only 14
Slide 15: Delivering Gwalia production
Delivering Gwalia production For personal use only Implemented changes to drive operational effectiveness • Operational Improvement – Stronger underground mining expertise engaged – Mine management and systems strengthened – Agreed cost and efficiency improvements for underground mining contractor •
Slide 16: Southern Cross
Southern Cross For personal use only Marvel Loch Underground forecast to continue to generate positive cash flows. • History demonstrates potential for reserves extensions at Marvel Loch Three year forecast • Marvel Loch Underground forecast to be 140 1000 profitable – Agreed cost and efficiency imp
Slide 17: Lower cost production
Lower cost production For personal use only Forecast Gwalia mine production drives St Barbara down cost curve • Specific cost reduction initiatives target 15% cost reduction by 2012 – New mining contract – Procurement – Operational effectiveness • Gwalia expected to be first quartile cost gold produ
Slide 18: Exploration
Exploration For personal use only • FY10 exploration activity strategic in focus – Forecast expenditure for FY10 is approx $6m – Project evaluation – Tests of key strategic targets • Additional funding allocated to extend conversion of mine resources to reserves – $3.6m at Southern Cross – $1.4m at
Slide 19: Non core assets
Non core assets For personal use only • Strategic Review identified a number of non-core assets for divestment • Tarmoola and surrounding tenements north of Leonora – Do not align with focus on high margin assets – Larger land package than previously offered – A sale process has commenced • Other sm
Slide 20: Financial positioning for medium term sustainable cash flows
For personal use only Financial positioning for medium term sustainable cash flows 20
Slide 21: FY10 outlook
FY10 outlook For personal use only Funding for June 2010. • Cash at 30 June 2009 $78 million (includes • St Barbara has sufficient funds for FY 10 $24m cash backing of bank guarantee facility) operating and capital expenditure • Factors impacting June 2010 cash • Forecast cash for June 2010 not suff
Slide 22: Financing strategies
Financing strategies For personal use only Asset sales and funding initiatives to be pursued • Funding options are being pursued to meet possible June Quarter 2010 requirements – Three year plan is forecast to be self funding from FY11 onwards • Several potential outcomes have not been included in c
Slide 23: Summary
For personal use only Summary 23
Slide 24: Summary
Summary For personal use only St Barbara’s Board and Management are excited by the Company’s prospects. • FY10 is expected be an important development and consolidation year for the Company • The short-term focus is on – Conserving cash and investing it wisely – Satisfying FY10 cash requirements in
Slide 25: Appendix
For personal use only Appendix 25
Slide 26: Gwalia production sequence
Gwalia production sequence FY 09 and FY 10 For personal use only 26
Slide 27: Gwalia production sequence
Gwalia production sequence FY 11 and FY 12 For personal use only 27
Slide 28: Leonora – Tower Hill
Leonora – Tower Hill For personal use only Tower Hill represents significant potential upside. • Key statistics – Located 2km from Gwalia processing plant – Reserves of 2.1m tonnes @ 4.7 g/t for 323,000 oz – Ore body flat dipping [35-50o] – Ultramafic hanging wall • Evaluation – Further evaluation w
Slide 29: Southern Cross – Other projects
Southern Cross – Other projects For personal use only Nevoria represents a significant opportunity. Nevoria Exploration • Potential to add 35,000 oz p.a. • Marvel Loch underground further drilling is planned to extend reserves at depth and within the existing • Ore bodies are complex footprint • Fur
Slide 30: Exploration targets
Exploration targets For personal use only 30
Slide 31: Thank you
For personal use only 31 ….thank you 31