St. Barbara Ltd. · ASX:SBM
St. Barbara — Q3 FY2014 Earnings Presentation
29 slides from St. Barbara's earnings presentation, Apr 29, 2014
Slide 1: Presentation on the March 2014 Quarterly Report and audio webcast
ASX Release / 29 April 2014 For personal use only Presentation on the March 2014 Quarterly Report and audio webcast Tim Lehany, Managing Director & CEO, will brief analysts and institutional investors on the March 2014 Quarterly Report at 1:00 pm Australian Eastern Standard Time (UTC + 10 hours) tod
Slide 2: March 2014 Quarterly Report
TIM LEHANY, MANAGING DIRECTOR & CEO / 29 April 2014 For personal use only March 2014 Quarterly Report
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: Diversified Australia-Pacific gold producer
For personal use only Diversified Australia-Pacific gold producer Simberi PNG Simberi SI ˃ Low strip open pit mine ˃ FY14F 45-50 koz Gold Ridge ˃ Near mine targets for exploration Leonora ˃ Two underground mines: ˃ Gwalia Mine FY14F production: Australia 180 - 195 koz Gold Ridge ˃ King of the Hills
Slide 5: Key Points
Key Points ˃ Q3 gold production was 92,522 oz (Q2 Dec 13: 93,577 oz) For personal use only ˃ Australian Operations performed in line with expectations ˃ Simberi performance improved, but below expectation due to: ˃ Poor mobile fleet reliability ˃ Previously announced delayed ramp up of recently comp
Slide 6: Consolidated Gold Production
Consolidated Gold Production For personal use only 107 17 97 94 93 87 13 15 15 16 ˃ Gwalia performed in line with 14 12 9 expectations 13 11 15 17 17 ˃ King of the Hills performed 17 above expectations 17 ˃ Gold Ridge and Simberi both 64 53 53 49 increased production but lower 41 than expected FY 13
Slide 7: Gwalia: St Barbara's cornerstone mine
Gwalia: St Barbara’s cornerstone mine For personal use only Gold Production ˃ Leonora produced 1,000,000th 64.3 ounce of gold since Gwalia recommissioned in October 2008 53.2 52.6 49.1 ˃ Gold production in line with expectations 40.8 ˃ Ore mined reduced to 178 kt as expected (Q2 Dec 13: 202 kt) ˃ Ex
Slide 8: Gwalia: Grade and costs
Gwalia: Grade and costs For personal use only Mined Grade & Cash Costs Grade 9.0 8.7 ˃ Q3 mined grade 8.7 g/t Au, 8.2 8.2 included higher grade shoots 7.7 g/t Au ˃ Remainder FY14 mined grade expected around 8.0 g/t Au ˃ Majority of ore sourced from South West Branch (SWB) Costs 814 A$/oz 754 787 ˃ Q
Slide 9: King of the Hills: Delivering to plan
King of the Hills: Delivering to plan For personal use only Gold Production ˃ Q3 production exceeded expectations ˃ Optimisation of room and pillar 16.9 17.2 17.2 16.8 method using split firing to differentiate ore from waste and increase the effective mined grade 12.9 ˃ Est. 5.5 koz of gold contain
Slide 10: Simberi: Key to lower costs and lifting production
Simberi: Key to lower costs and lifting production is optimising the new processing circuit For personal use only Gold Production ˃ Signs of improvement 15.1 ˃ Previously announced 12.9 production impacted by poor 11.7 equipment availability and delay 10.8 on ramp up of recently completed plant expa
Slide 11: Gold Ridge: Incremental improvement
Gold Ridge: Incremental improvement For personal use only Gold Production ˃ Marginally higher gold 17.2 production, impacted by 148 15.7 hours plant downtime in Feb 14.9 14.0 14.5 primarily to replace conveyor belt ˃ Gold Ridge recovery increased, exceeded 75% for month of March ˃ Q3 cash operating
Slide 12: Gold Ridge – Operations suspended, ready to return to site
Gold Ridge – Operations suspended, ready to return to site ˃ Operations suspended 3 April 2014 and site evacuated 7 April following For personal use only torrential rain to ensure safety of workforce ˃ Access road cut, unable to deliver diesel and other essential supplies to maintain habitation ˃ Fo
Slide 13: Discovery & Growth
For personal use only Discovery & Growth 12 / March 2014 Quarterly Report
Slide 14: Exploration – Simberi Islands, PNG
Exploration – Simberi Islands, PNG For personal use only Simberi Island ˃ Exploration has identified potential near mine, higher grade, oxide targets ˃ Further encouraging gold results1 from trenching and drilling oxide mineralisation at near-mine prospects on Simberi including trenches : Samat East
Slide 15: Exploration - Gold Ridge, Solomon Islands
Exploration - Gold Ridge, Solomon Islands For personal use only Guadalcanal Island ˃ Drilling adjacent to Dawsons open pit, producing further encouraging gold results1 in the March quarter including: DGD0252 ˃ 31m @ 1.3 g/t Au from 10m; DGD0261 ˃ 12m @ 0.8 g/t Au from 8m, ˃ 1m @ 28.6 g/t Au from 29m
Slide 16: Finance
Finance At 31 March 20141: For personal use only ˃ A$58 million cash (inc. $2 million restricted cash) ˃ A $24 million undrawn facility available under Red Kite debt facility ˃ A$337 million interest bearing liabilities > Inc. US $250 million Senior Secured Notes + US $53 Red Kite debt facility > No
Slide 17: Cash Balance
Cash Balance Cash balance A$M For personal use only Cash balance 31 December 2013 70 Gold loan repayments (7) Net proceeds from Red Kite facility restructure 19 Net interest and finance costs (2) Leonora – operating cash flow [1] 28 Pacific Ops – operating cash flow [1] (21) – project capex (7) Reha
Slide 18: Conclusion
Conclusion ˃ Australian operations performing well and maintain guidance For personal use only ˃ Simberi rectification work on the new 3.5Mtpa processing circuit progressing to plan ˃ Expect Simberi to be cash flow positive in December 2014 ˃ Gold Ridge suspended pending safe return to site ˃ Site a
Slide 19: Appendices
For personal use only Appendices 18 / March 2014 Quarterly Report
Slide 20: Consolidated Production Summary
Consolidated Production Summary For personal use only Q1 Sep Q2 Dec Q3 Mar FY14 FY14 FY14 Gwalia oz 53,230 52,552 49,148 King of the Hills oz 17,249 17,205 16,837 Production Gold Ridge oz 14,519 14,912 15,690 Simberi oz 11,741 8,908 10,847 Consolidated oz 96,739 93,577 92,522 Gwalia g/t 7.7 8.2 8.7
Slide 21: Gwalia Production Summary
Gwalia Production Summary Q1 Sep Q2 Dec Q3 Mar FY14 FY14 FY14 For personal use only Underground ore mined kt 224 200 178 Grade g/t 7.7 8.2 8.7 Low grade ore & stockpiles kt 16 12 21 Grade g/t 2.2 2.9 3.1 Ore milled kt 231 214 190 Grade g/t 7.5 8.0 8.4 Recovery % 96 96 96 Gold production oz 53,230 52
Slide 22: King of the Hills Production Summary
King of the Hills Production Summary Q1 Sep Q2 Dec Q3 Mar FY14 FY14 FY14 For personal use only Underground ore mined kt 135 124 105 Grade g/t 4.4 4.4 5.2 Ore milled kt 117 126 135 Grade g/t 4.8 4.5 4.1 Recovery % 95 95 95 Gold production oz 17,249 17,205 16,837 Cash Operating Costs1 ,2 $ per ounce M
Slide 23: Gold Ridge Production Summary
Gold Ridge Production Summary Q1 Sep Q2 Dec Q3 Mar FY14 FY14 FY14 For personal use only Ore mined kt 431 531 463 Grade g/t 1.6 1.4 1.3 Ore milled kt 476 485 506 Grade g/t 1.6 1.4 1.3 Recovery % 60 68 73 Gold production oz 14,519 14,912 15,690 Cash Operating Costs1,2 $ per ounce Mining 596 682 657 Pr
Slide 24: Simberi Production Summary
Simberi Production Summary Q1 Sep Q2 Dec Q3 Mar For personal use only FY14 FY14 FY14 Ore mined kt 513 452 421 Grade g/t 1.0 0.9 1.0 Ore milled kt 459 423 368 Grade g/t 0.9 0.8 1.2 Recovery % 83 79 79 Gold production oz 11,471 8,908 10,847 Cash Operating Costs1,2 $ per ounce Mining 562 782 489 Proces
Slide 25: All-In Sustaining Cost
All-In Sustaining Cost Q3 March FY14 Gwalia King Gold Ridge Simberi Group For personal use only of the Hills Total Cash Operating Costs $/oz 650 1,035 2,002 2,269 1,139 less operating development 2 $/oz (38) (205) - - (57) Adjusted Cash Operating Costs $/oz 612 830 2,002 2,269 1,082 Corporate & admi
Slide 26: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate 14.8 12.5 11.1 9.0 Improving safety performance ˃ TRIFR consistent with FY14 target 6.0 ˃ TRIFR includes Pacific Operations 4.7 4.5 from September 2012 4.0 FY 09 FY 10 FY 11 FY 12 FY 13 Q1 Q2 Q3 FY14 FY14 FY14 25 / Ma
Slide 27: 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 26 / March 2014 Quarterly Report
Slide 28: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results is based on information compiled by Dr Roger Mustard, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full-time emplo
Slide 29: 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