St. Barbara Ltd. · ASX:SBM
St. Barbara — Sydney Mining Club (February 2017)
57 slides from St. Barbara's conference presentation, Feb 2, 2017
Slide 1: Presentation to Sydney Mining Club
ASX Release / 2 February 2017 For personal use only Presentation to Sydney Mining Club Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Sydney Mining Club today. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Relations Mr Tim Duncan Hinton & Assoc
Slide 2: Sydney Mining Club Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 2 February 2017 For personal use only Sydney Mining Club Managing Director & CEO 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: Outline
Outline For personal use only • Introduction • Company Overview • The Turnaround Story • Gwalia 105 years young • Exploration & Growth • Gold is fun St Barbara Leonora Operations: Overall winners for the second year running in CMEWA Underground Mine An open pit at Emergency Simberi Response Operatio
Slide 5: Bob Vassie - Introduction
Bob Vassie - Introduction For personal use only L: Directors and management site visit to Simberi, June 2016. L to R: Garth Campbell Cowan (CFO), David Moroney (Director), Bob Vassie (MD&CEO), Tim Richards (General Manager Simberi Operations), Kerry Gleeson ( Director) R: 1 Mile deep at Gwalia , Dec
Slide 6: … and Bob on annual leave …
… and Bob on annual leave … For personal use only Variety Club Queensland 2016 Bash 5 / Sydney Mining Club 2 February 2017
Slide 7: St Barbara's history
St Barbara’s history For personal use only 2006 Name changed to 2008 St Barbara Ltd Gwalia commissioned 2005 Leonora and Southern Cross acquired from Sons of Gwalia 2011 administrators King of the Hills & Meekatharra sold commissioned Gold production, Meekatharra, WA 2012 Allied Gold Ltd acquired 19
Slide 8: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production For personal use only • Shares on issue 497 M • FY16 387 koz @ AISC4 A$933/oz • Market Cap2 A$1,159 M • FY17F3 360 koz @ AISC A$990/oz • ADR OTC code STBMY • Ore Reserves June 2016 4.0 Moz 1 • Mineral Resources
Slide 9: New MD & CEO July 2014 – decisions, decisions
New MD & CEO July 2014 – decisions, decisions…. FY14 cash movement1 Assessment For personal use only 140 -71 Simberi ˃ make profitable or stop -39 Gold Ridge ˃ stabilize, minimize spend, divest -21 -42 Corporate ˃ ‘right size’ A$ million - Included redundancies $3M, corporate royalties $9M -55 Explo
Slide 10: Record production & costs for the Group
Record production & costs for the Group AISC1 1,340 For personal use only (A$/oz) 1,007 933 Production (koz) 377 387 368 9 46 50 110 70 80 45 267 248 215 FY14 FY15 FY16 Gwalia Simberi King of the Hills Gold Ridge 9/ Sydney Mining Club 2 February 2017 1. Non IFRS measure, refer slide in appendix
Slide 11: St Barbara share price vs US$ gold and XGD
St Barbara share price vs US$ gold and XGD - % change 3000% For personal use only Gwalia Top performing stock in the ASX 200 in FY20162 A rich history with a bright future Joined ASX 200 2500% Top performing stock in the ASX 300 in CY20151 2000% SBM 1875% Joined ASX 300 1500% 1000% Sold Gold Ridge S
Slide 12: FY16 Financial Summary
FY16 Financial Summary For personal use only FY16 FY15 Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost1 A$/oz 933 1,007 Result Statutory profit after tax A$M 169 40 Underlying net profit after tax 1 A$M 127 42 Cash flow Cash flows from operating activities A$M 243 113
Slide 13: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (A$/oz) For personal use only A$0 Resolute A$200 St Barbara Oceana Gold A$400 Evolution A$600 Saracen Regis A$800 Bubble size = estimated A$1,000 production rate Northern Star (koz p.a.) A$1,200 0% 5% 10% 15% 20% 25% 30% FCF Yield (FCF/
Slide 14: Gold positioning end 2016
Gold positioning end 2016 $10,000 EV/Production (US$/oz) For personal use only $8,000 AEM TXG RRS NCM $6,000 OGC ABX GG NEM $4,000 THO EVN NST $2,000 SBM ACA * Bubble size = Production FCF (US$/oz) $0 $0 $100 $200 $300 $400 $500 $600 $700 Source: Global Mining Research (GMR), 1 February 2017, with p
Slide 15: Balance sheet positioned for growth
For personal use only Balance sheet positioned for growth A$M Net Debt / Net Cash1 $31 million 50 A$M Net Cash 0 -15 -50 -92 -100 -134 -150 -199 -200 -243 -250 -270 -311 -312 -300 -320 -350 FY15 FY15 FY15 FY15 FY16 FY16 FY16 FY16 FY17 FY17 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 S
Slide 16: Continued safety success
Continued safety success Total Recordable Injury Frequency Rate1 Safety For personal use only 9.0 • Record FY16 TRIFR of 2.1 • Record safety performance of 6.0 1.8 TRIFR1 in H1 FY17 5.0 4.1 • Overall winners for the second year running in CMEWA Underground 2.1 1.8 Mine Emergency Response Competition
Slide 17: Gender Diversity
Gender Diversity For personal use only • The overall pay equity gap at St Barbara reduced from 43% in 2007 to 16% in 2016 (compared to 23% nationally and 16% for the mining industry1) • Nil gender pay gap in ‘like-for-like’ roles2 • Bob Vassie, MD & CEO, appointed in 2014 as one of 32 CEO Ambassador
Slide 18: Gwalia
For personal use only Gwalia A rich history with a bright future 17 / Sydney Mining Club 2 February 2017
Slide 19: Gwalia - one of Australia's most historic mines
Gwalia- one of Australia’s most historic mines For personal use only 1896 - Welsh syndicate discovers the Gwalia Reef. 1897 - Herbert Hoover buys mine for Bewick Moreing 1929 - Hoover becomes 31st President of USA 1963 - Mine closes 4 days before Christmas having produced more than 2.5 Moz over 67 y
Slide 20: Exploration: Gwalia
Exploration: Gwalia For personal use only For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 19 / Sydney Mining Club 2 February 2017
Slide 21: Gwalia Deeps Exploration – Northern Extension
Gwalia Deeps Exploration – Northern Extension For personal use only For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ 20 / Sydney Mining Club 2 February 2017
Slide 22: Record production driven by productivity gains
Record production driven by productivity gains Mined Grade 9.3 For personal use only (g/t Au) 8.8 8.9 8.2 8.4 6.9 Reserve Grade 6.3 5.7 8.3 g/t Au June 2016 FY16 continued improvement • FY 16 production of 267 koz 267 265 Production 255 (FY15 248 koz) (koz) 248 • AISC of A$783/oz 214 (FY15 A$841/oz)
Slide 23: 8% year on year improvement with key innovations
FY16 vs FY15 8% year on year improvement with 3 key innovations For personal use only Ore passes Allows bogger to work constantly, independent of ore trucks, removes ore from fired stopes more rapidly, allowing paste-filling and adjacent stopes to be fired earlier Continuous Remote Tele-bogging (CY1
Slide 24: St Barbara vs Global Gold Miners – Q4 June 2016 US$ AISC
St Barbara vs Global Gold Miners – Q4 June 2016 US$ AISC Q4 June 2016 Global gold production – AISC For personal use only 1,400 53 companies, 196 mines 1,200 1,000 St Barbara US$716/oz AISC (inc. Gwalia US$644/oz AISC) 800 AISC (US$/oz) 600 400 200 0 0 2 4 6 8 10 Asia Africa Australia North America
Slide 25: Gwalia Extension Project
Gwalia Extension Project For personal use only Conceptual illustration only, studies underway will determine final design 24 / Sydney Mining Club 2 February 2017
Slide 26: Gwalia Extension Project – PAF Isometric Fixed Plant View
Gwalia Extension Project – PAF Isometric Fixed Plant View For personal use only 25 / Sydney Mining Club 2 February 2017 Conceptual illustration only, studies underway will determine final design
Slide 27: PAF Isometric View
PAF Isometric View For personal use only 1 2 1 Bogging Location 1 2 Bogging Location 2 Current Paste Infrastructure Proposed PAF Fixed Plant Waste Capacity 26 / Sydney Mining Club 2 February 2017 Conceptual illustration only, studies underway will determine final design
Slide 28: Simberi
Simberi For personal use only Reliable cash producer | Strategic Review complete 27 / Sydney Mining Club 2 February 2017
Slide 29: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (A$/oz) For personal use only 2,300 1,464 1,293 9,898 Mining Consecutive years of >50% improvement 6,293 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Mining 4,151 (kt) 110 80 Production (koz) 44 FY14 FY15 FY16 P
Slide 30: Simberi FY14, FY15 and FY16
Simberi FY14, FY15 and FY16 SIMBERI MINE OUTPUT SIMBERI GOLD PRODUCTION For personal use only 9,899 kt 110 koz 80 koz 6,293 kt 4,151 kt 44 koz FY14 FY15 FY16 FY14 FY15 FY16 SIMBERI MILL THROUGHPUT AISC1 (A$/oz) 3,315 kt 2,300 2,670 kt 1,464 1,293 1,713 kt FY14 FY15 FY16 FY14 FY15 FY16 29 / Sydney Mi
Slide 31: Simberi strategic review complete
Simberi strategic review complete For personal use only • St Barbara to retain and operate Simberi Operations1 • Option and Farm-in Agreement (joint venture) with Newcrest for joint copper-gold porphyry exploration on nearby islands • Focused exploration underway to improve the economics of possible
Slide 32: Exploration
Exploration For personal use only St Barbara’s organic growth opportunity 31 / Sydney Mining Club 2 February 2017
Slide 33: Exploration – greenfields projects - summary
Exploration – greenfields projects - summary For personal use only • Tatau Island, PNG • Pinjin, WA • Greater Gwalia, WA For full explanation and results refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’ 32 / Sydney Mining Club 2 February 2017
Slide 34: Exploration: PNG – Tatau Island
Exploration: PNG – Tatau Island For personal use only Right – drilling at Monun, Simberi, October 2015. 33 / Sydney Mining Club 2 February 2017 For details refer to ASX release 18 Jan 2017 ‘Quarterly Report December 2016’
Slide 35: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA The Pinjin Project is located 150km For personal use only northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 For full explanation and results refer to ASX release 19 October 2016 ‘Quarterly Report September 2016’ 34 / Sydney Mining Club 2 Feb
Slide 36: Seismic Exploration campaign
Seismic Exploration campaign Greater Gwalia Province in FY17+ • Use sound waves reflecting off mineral • 1H FY17 calibration and focus on Gwalia to For personal use only formations to explore Greater Gwalia gain a greater understanding of deposit • Used successfully by other WA Gold • 2H FY17+ explo
Slide 37: Gold is Fun!
Gold is Fun! For personal use only … whether at Leonora … … or Simberi … 36 / Sydney Mining Club 2 February 2017
Slide 38: The size of Gold
The size of Gold For personal use only As at December 2015 1 Million Ounce Bar (a model!) 37 / Sydney Mining Club 2 February 2017
Slide 39: Australian Gold Mining in context
Australian Gold Mining in context “Rush: Australia’s 21st Century Gold Industry” For personal use only • Tells the story of Australia’s world- leading gold industry and the ongoing contribution it makes to Australia's economic and social • Published by Minerals Council of Australia and the Chamber o
Slide 40: Australian Gold Industry
Australian Gold Industry For personal use only 39 / Sydney Mining Club 2 February 2017
Slide 41: Global Gold Reserves
Global Gold Reserves For personal use only 40 / Sydney Mining Club 2 February 2017 http://bit.ly/mcagoldbook
Slide 42: Gold Exploration
Gold Exploration For personal use only 41 / Sydney Mining Club 2 February 2017 http://bit.ly/mcagoldbook
Slide 43: Commodity prices still well below peaks…
Commodity prices still well below peaks… For personal use only Index 2014/15 = 100 250 200 150 100 50 0 commodity prices base metals prices bulk commodities Source: Reserve Bank of Australia, Index of Commodity Prices, July 2016, Table I2, released on 2 August 2016 42 / Sydney Mining Club 2 February
Slide 44: But resources share of exports rising…
But resources share of exports rising… For personal use only % 70 60 50 40 30 20 10 0 Rural Resource Manufacturers Services Source: Reserve Bank of Australia, International Trade and Balance of Payments Statistics, Table I1 to March 2016. 43 / Sydney Mining Club 2 February 2017
Slide 45: Value of resources exports and employment rising…
Value of resources exports and employment rising… For personal use only 300 240 250 200 200 160 Employment '000 Exports A$B 150 120 100 80 50 40 0 0 Employment (LHS) Exports (RHS) Source: Australian Bureau of Statistics, Cat No. 6291 Labour Force, Australia, Detailed, Quarterly; Department of Indust
Slide 46: Conclusion
Conclusion For personal use only Pinjin, WA 45 / Sydney Mining Club 2 February 2017
Slide 47: Appendices
Appendices For personal use only Gwalia processing plant, Leonora WA 46 / Sydney Mining Club 2 February 2017
Slide 48: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY16 FY16 FY17 FY17 FY173 For personal use only Production Gwalia oz 65,098 267,166 67,118 70,925 255 to 265 koz (previously 245 to 265 koz1) King of the Hills4 oz - 9,112 - - - Simber
Slide 49: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total For personal use only Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz 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 50: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 Project Measured Indicated Inferred Total For personal use only 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 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574
Slide 51: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Gwalia A rich history with a bright future Not analysed Institutional USA 36% 10% 84% Australia Non 25% Institutional 6% UK 13% Other 20% Non Institutional 6% Analysis and geographic spread of shareholders as at 12 Jan
Slide 52: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Research Coverage Van Eck Associates 16% Argonaut James Wilson M&G Investment Mgt 8% Canaccord Reg Spencer Vinva Investment Mgt 5% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocking Institutional Sh
Slide 53: Board of Directors
Board of Directors For personal use only 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 Mr Netscher is an experienced international years internati
Slide 54: Executive Leadership Team
Executive Leadership Team Bob Vassie For personal use only Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 1
Slide 55: 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 56: 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 57: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 56 / Sydney Mining Club 2 February 2017