St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Forum 2007
37 slides from St. Barbara's conference presentation, Aug 7, 2007
Slide 1: Diggers and Dealers Forum 2007 Presentation
ASX Shareholders Report St Barbara For personal use only Diggers and Dealers Forum 2007 Presentation We attach a copy of Mr Eduard Eshuys presentation this week to the Diggers and Dealers Forum 2007 in Kalgoorlie. Ross Kennedy General Manager Corporate Services/Company Secretary 6 August 2007 St Bar
Slide 2: Growing Australian Gold Producer and Explorer
For personal use only Growing Australian Gold Producer and Explorer Eduard Eshuys, Managing Director & CEO Diggers & Dealers Forum August 2007
Slide 3: Delivered Since 2006
Delivered Since 2006 For personal use only Doubled reserves to 2.3 Moz Met gold production forecast of 171 koz Gwalia Hoover decline at 800mbs – 80% complete Raised A$100 M capital to support expansion Generated $57M* cash from operations & asset sales Purchased put options to underwrite
Slide 4: Doubled Reserves at Southern Cross and Gwalia
Doubled Reserves at Southern Cross and Gwalia 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$22/oz Resources increased from 7.1 Moz to 8.4 Moz Major focus now on open pit reserves
Slide 5: Southern Cross Achieved Production Forecast
4 Southern Cross Achieved Production Forecast For personal use only 70 60 60 50 Quarterly forecasts Production (Koz) 49.5 40 43.7 45 41.6 40.1 38.1 37.8 30 20 10 F.cast Target 0 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-08
Slide 6: Operational Performance FY07
Operational Performance FY07 For personal use only A$M EBITDA from Operations* 46 Profit from Asset Sales* 11 Operations & asset sales funding exploration * Unaudited figures
Slide 7: Capital Expenditure - 2007/08
6 Capital Expenditure - 2007/08 For personal use only A$M Southern Cross 25 Gwalia 110 Exploration 25 Total 160 Building operations base for long term production
Slide 8: Raised Capital to Support Production Expansion
7 Raised Capital to Support Production Expansion For personal use only A$M Cash & Investments 113 Bank debt underway 50 Operational cash flow + Asset sales + Total 163++ Completed A$100 M convertible note issue
Slide 9: Future Operating Cash Flows
8 Future Operating Cash Flows For personal use only Purchased put options at a cost of A$11 million 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 Unlimited exposure to increase in gold price Zero delivery commitm
Slide 10: Capital Structure
9 Capital Structure For personal use only Market Cap A$450M – A$500M 836M ordinary shares 18M unlisted options Strong Australian & international shareholding base Convertible notes listed in Singapore
Slide 11: Our Current WA Interests
10 Our Current WA Interests… For personal use only A large world class consolidated land bank - 5000 sq km Only 30% of Southern Cross & Leonora land effectively explored Operations and community infrastructure in place Spare capacity to allow for production expansion
Slide 12: Southern Cross Operations
11 Southern Cross Operations For personal use only
Slide 13: Southern Cross - Marvel Loch Reserves
Southern Cross - Marvel Loch Reserves For personal use only
Slide 14: Southern Cross Operations Upside
13 Southern Cross Operations Upside For personal use only Extend Marvel Loch underground reserves Nevoria underground production Dec quarter 2008 Continuing to convert open pit resources to reserves Extending mine life beyond current 5 years Capital expenditure of $25 M to improve profitab
Slide 15: Gwalia
For personal use only Gwalia 14
Slide 16: Gwalia Hoover Decline 80% Complete
15 Gwalia Hoover Decline 80% Complete For personal use only Hoover Decline at 800 metres below surface Ground conditions at 800mbs are favourable Commencing gold production Sept Quarter 2008 Initial rate of 100,000 oz pa Cash costs A$395/oz for life of mine 8 years
Slide 17: Gwalia Hoover Decline at 800m
16 Gwalia Hoover Decline at 800m For personal use only 800m
Slide 18: Gwalia Reserves & the Future
17 Gwalia Reserves & the Future For personal use only
Slide 19: Gwalia Upside
For personal use only Gwalia Upside 800m
Slide 20: Gwalia - the High Grades
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 21: Exploration Strategy - 2007/08
Exploration Strategy - 2007/08 For personal use only Suspended drilling at Gwalia Exploration expenditure continues at $25 million pa Accelerating nickel and base metal drilling at Leonora Drilling focus on open pit reserves Incremental cash from open pit reserves
Slide 22: Southern Cross Open Pits Focus
21 Southern Cross Open Pits Focus For personal use only Total endowment of 12Moz 20 open pit target – cutbacks Cutback of pits mined at $400/oz small scale high cost Mining at Hercules & GVG
Slide 23: Southern Cross - GVG Open Pit Focus
Southern Cross - GVG Open Pit Focus For personal use only Potential for 300koz Mineralised strike 7km Reserves to be completed Jan 2008
Slide 24: GVG Cross Section
23 GVG Cross Section For personal use only Pits previously mined to 50-60 metres Oxide mineralisation extends to ~110 metres Testing the gap for reserves
Slide 25: Transvaal Long Section
24 Transvaal Long Section For personal use only
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 – New Cross Section
26 Tower Hill – New Cross Section For personal use only
Slide 28: World Class Nickel Province
27 World Class Nickel Province For personal use only Nickel production is~100kt pa Tenements cover >100 km strike of this world class province Encouraged by results to date $5M base metal budget for 2008
Slide 29: Sullivans Nickel Drilling
Sullivans Nickel Drilling For personal use only
Slide 30: Leonora Base Metal Targets
29 Leonora Base Metal Targets For personal use only Jaguar highlights the prospectivity Jaguar mineralisation starts at 250mbs Drilling within our land less than 50m Drilling to commence this Sept Qtr
Slide 31: Objectives - 2007/08
30 Objectives - 2007/08 For personal use only Produce 175k oz pa @ A$505/oz cash cost at Southern Cross Expand open pit reserves at Southern Cross and Leonora Hoover Decline to reach reserves by March 08 Recommence Gwalia gold production by Sept 08 Discover nickel and copper/zinc at Leonor
Slide 32: Expanding Production to 120koz/qtr
31 Expanding Production to 120koz/qtr For personal use only 140 Leonora Open Pits 120 Gwalia Southern Cross 100 Production (Koz) 80 60 40 20 0 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Sep- Dec- 06 06 06 06 07 07 07 08 08
Slide 33: St Barbara's Cost Position
St Barbara’s Cost Position For personal use only Australian Gold Cost Curve 1200 1000 800 A$ Cash Cost 600 400 SBM SBM End 2006 End 2008 200 A$474 A$485 0 0.5M Cumulative Production Moz 1.5 Based on December quarter
Slide 34: Best Value per Reserve Ounce!
33 Best Value per Reserve Ounce! For personal use only Market Cap / Reserve 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 35: Longer Term Objectives by 2010
34 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 Convert exploration successes into shareholder wealth Cash flow funds aggressive gr
Slide 36: St Barbara in 2010
35 St Barbara in 2010 For personal use only Production of 1Moz gold pa Reserves of 10Moz gold
Slide 37: Disclaimer
36 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