37 slides from St. Barbara's earnings presentation, Apr 20, 2017
Slide 1: Presentation on Q3 March 2017 Quarterly Report and audio webcast
ASX Release / 20 April 2017 For personal use only Presentation on Q3 March 2017 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q3 March 2017 Quarterly Report at 12:00 pm Australian Eastern Standard Time (UTC + 10 hours)
Slide 2: Q3 March 2017 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 20 April 2017 For personal use only Q3 March 2017 Quarterly Presentation
Slide 3: 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 4: Contents
Contents For personal use only > Highlights > Safety > Operations > Exploration > Conclusion > Appendices Operating under the stars, Gwalia, Finlay Wilkinson 3 / Q3 March 2017 Quarterly Presentation
Slide 5: Highlights Q3 March 2017
Highlights Q3 March 2017 > 95 koz gold produced at AISC1 A$862/oz For personal use only > Record production and AISC at Simberi: 30,430 oz @ $A1,025/oz > FY17F production revised up to 365 to 375 koz4 > Debt free2, $99 million cash at bank5 > Cash contribution from operations3 $91 million (Q2 Dec 20
Slide 6: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate2 Safety performance 9.0 ˃ New record low TRIFR1 of 1.5 to 31 March 6.0 2017 (Q2 Dec: 1.8) 5.0 ˃ Gold mining industry 4.1 average TRIFR is 2.53 2.1 1.8 1.8 1.5 FY 12 FY 13 FY 14 FY15 FY16 Q1 Q2 Q3 FY17 FY17 FY17 1. Tot
Slide 7: Debt free and new A$ gold hedge
For personal use only Debt free and new A$ gold hedge A$M Net Debt / Net Cash1 ˃ Final US$20 million 150 A$M principal of US Notes 98 100 repurchased in Q3 50 Net Cash 31 0 ˃ US$325 M (A$436 M) -50 -15 principal repaid since June -92 -100 2015 -134 -150 -199 ˃ A$99 million cash at bank Net Debt -200
Slide 8: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (A$/oz) For personal use only 0 St Barbara 100 Saracen Resolute Oceana Gold Regis 200 Northern Star 300 Evolution 400 Bubble size = estimated 500 production rate (koz p.a.) 600 0% 5% 10% 15% 20% 25% 30% 35% 40% FCF Yield (FCF/EV) Source
Slide 9: Consolidated Q3 March 2017 quarter
Consolidated Q3 March 2017 quarter AISC For personal use only (A$/oz) 960 947 935 876 > Consolidated company 862 FY16 average A$933/oz production of 95 koz Production (koz) (Q2 FY17: 99 koz) 92 92 93 99 95 > Gwalia 65 koz (Q2: 71 koz) 28 > Simberi 30 koz (Q2: 28 koz) 25 27 25 30 > Consolidated AISC1
Slide 10: Gwalia Q3 March 2017 quarter
Gwalia Q3 March 2017 quarter AISC (A$/oz) 836 770 774 786 For personal use only 716 FY16 average A$783/oz > Production: 64,916 oz Mined Grade 11.9 (g/t Au) 11.3 (Q2: 70,925 oz) 10.4 10.2 9.3 Reserve grade 8.3 g/t Au2 > AISC1: A$786/oz (Q2: A$716/oz) FY16 average 9.3 g/t Au > Mined grade of 11.3 g/t
Slide 11: Gwalia Extension Project
Gwalia Extension Project Gwalia Extension Project capex approved1 For personal use only Detailed budget and execution plan confirm that the project will generate a robust financial return and extend mining at Gwalia to at least 2,000 mbs2 Provides foundation for potential further extensions
Slide 12: Simberi Q3 March 2017 quarter
Simberi Q3 March 2017 quarter For personal use only AISC (A$/oz) 1,404 1,359 1,266 1,277 > Record production of 30,430 oz FY16 average AISC A$1,293/oz (Q2: 28,057 oz) at record low 1,025 AISC1 of A$1,025/oz (Q2:A$1,277/oz) Production (koz) > Operations enjoying benefit of pre- 30.4 strip of new mini
Slide 13: Simberi | Total material moved, milled grade & recovery
Simberi | Total material moved, milled grade & recovery For personal use only Total material moved Milled grade & recovery (kt) (g/t Au, %) 1.1 1.4 = 3,962 1.17 1.20 1 1.14 1.2 = 3,550 3,015 = 3,536 1.06 2,578 2,499 0.9 1 = 2,527 85% 0.8 83% 0.8 1,671 c 81% 77% c v 0.7 v0.6 0.6 0.4 972 947 1,037 856
Slide 14: Exploration results Q3 March 2017 quarter
Exploration results Q3 March 2017 quarter For personal use only Gwalia exploration 13 / Q3 March 2017 Quarterly Presentation
Slide 15: Exploration | Investment in exploration juniors
Exploration | Investment in exploration juniors For personal use only Strategy Targeted investment in early to advanced stage gold exploration through earn in arrangements, joint ventures or direct equity investments Catalyst Metals Limited A$1.5 million investment in Catalyst Metals Limited for 5
Slide 16: Exploration | Gwalia Summary
Exploration | Gwalia Summary Gwalia Seismic Reflection Program For personal use only A full evaluation of extensions to the Gwalia Shear Zone will be undertaken during Q4 June 2017 The survey will aim to identify extensions to the lode system and other potential occurrences of Gwalia style miner
Slide 17: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program For personal use only For full explanation and results refer to ASX release 20 April 2017 ‘Quarterly Report March 2017’ 16 / Q3 March 2017 Quarterly Presentation
Slide 18: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program For personal use only For full explanation and results refer to ASX release 20 April 2017 ‘Quarterly Report March 2017’ 17 / Q3 March 2017 Quarterly Presentation
Slide 19: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA For personal use only > Final results from 3,239 metre RC drill program received > A 305 hole Aircore drill program completed > A 965 line km Airborne Electromagnetic (AEM) survey will be conducted in the June 2017 quarter > A 330 km2 Ground G
Slide 20: Exploration | Pinjin, Q3 results and Q4 plan
Exploration | Pinjin, Q3 results and Q4 plan For personal use only For full explanation and results refer to ASX release 20 April 2017 ‘Quarterly Report March 2017’. 19 / Q3 March 2017 Quarterly Presentation Enlargements next slide.
Slide 21: Exploration | Pinjin, Q3 results
Exploration | Pinjin, Q3 results For personal use only Enlargement B Enlargement A For full explanation and results refer to ASX release 20 April 2017 ‘Quarterly Report March 2017’ 20 / Q3 March 2017 Quarterly Presentation
Slide 22: Exploration | Tatau Island, PNG
Exploration | Tatau Island, PNG Tatau Island, PNG For personal use only Detailed topographic map generated from the airborne LiDAR survey flown in the December 2016 quarter The diamond drill program at Mt Tiro and Nepewo, Southwest Tatau continued through the March 2017 quarter Southwest Tatau
Slide 23: Conclusion
Conclusion ˃ Debt free1 and one of best margins in world gold mining2 For personal use only ˃ 95 koz gold produced at AISC3 A$862/oz, generated $91 million cash contribution from operations4 > Strong organic and exploration growth prospects > Seeking growth opportunities Lake Rebecca, Pinjin, by Kyl
Slide 24: Appendices
Appendices For personal use only Summer Storms by Finlay Wilkinson, Leonora, Jan 2017 23 / Q3 March 2017 Quarterly Presentation
Slide 25: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary For personal use only Production Summary Year Q1 Sep Q2 Dec 1H Q3 Mar Q3 YTD Guidance Consolidated FY16 FY17 FY17 FY17 FY17 FY17 FY173 Production Gwalia oz 267,166 67,118 70,925 138,043 64,916 202,959 260 to 265 koz (previously 255 to 265 koz) King of
Slide 26: Exploration | FY17 Guidance: A$18 to $22 million
Exploration | FY17 Guidance: A$18 to $22 million For personal use only A$10-$12 million Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia + Province seismic A$8-$10 million greenfields (30% Pinjin WA, 70% PNG) ˃ Extensive aircore drilling at Pinjin (WA) ˃ Aerial survey at Back Creek
Slide 27: Gwalia Deeps Exploration – Northern Extension
Gwalia Deeps Exploration – Northern Extension For personal use only Reproduced from ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 26 / Q3 March 2017 Quarterly Presentation
Slide 28: Exploration | Back Creek, NSW
Exploration | Back Creek, NSW For personal use only Back Creek, NSW Data processing and image generation was completed during the March 2017 quarter Inversion modelling of the magnetic data over areas of interest is underway 3 sub-block EL8530 located adjacent to EL8214 was granted For full ex
Slide 29: Greater Gwalia | province exploration campaign in FY17
Greater Gwalia | province exploration campaign in FY17 For personal use only ˃ Explore reflecting sound waves off mineral formations ˃ Used successfully by other regional gold miners ˃ 2D Gwalia program via down-hole sensors complete. ˃ Greater Gwalia 3D program in progress For full details Refer AS
Slide 30: Gwalia – Q4 Planned seismic survey
Gwalia – Q4 Planned seismic survey For personal use only Q4 June 2017 Gwalia seismic survey 15km2 Receiving phones and vibe truck, April 2017 29 / Q3 March 2017 Quarterly Presentation For full explanation and results refer to ASX release 20 April 2017 ‘Quarterly Report March 2017’
Slide 31: Mining.com view of Gwalia
Mining.com view of Gwalia ‘10 mines still making good money if the gold price falls 50%’ For personal use only 609 576 565 573 574 AISC 529 530 (US$/oz) 475 400 402 460 473 425 Production (koz) 260 267 196 161 166 127 46 www.mining.com/10-mines-still-making-good-money-if-the-gold-price-falls-50/?utm
Slide 32: Cash and Debt FY15 to March 2017
Cash and Debt FY15 to March 2017 Debt, Cash Balance & Contribution from Operations For personal use only 154 137 Cash Balance (A$)1 108 115 114 100 99 77 87 70 56 80 83 91 70 69 71 69 76 10 57 32 Cash Contribution (A$)4 -1 -40 -53 -128 -168 -189 -216 -169 -249 Debt (US$)2 -271 -229 -248 -325 -325 -3
Slide 33: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 For personal use only Proved Probable Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194
Slide 34: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 For personal use only Measured Indicated Inferred Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia (WA) 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 Tower Hill (WA) - - - 4,604 3.
Slide 35: 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 36: Non-IFRS Measures
Non-IFRS Measures For personal use only 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 ass
Slide 37: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Garth Campbell-Cowan Company Secretary Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au Selected recent ASX releases 4 April 2017 Investment in Peel Mining Limited (ASX: PEX) 27 March 2017 Gwalia Extension Project appro