33 slides from St. Barbara's earnings presentation, Jul 25, 2013
Slide 1: Presentation on the June 2013 Quarter & FY 14 Guidance
ASX Release / 25 July 2013 For personal use only Presentation on the June 2013 Quarter & FY 14 Guidance Attached is a presentation to analysts and investors by Tim Lehany, Managing Director & CEO. Ross Kennedy Executive General Manager Corporate Services Company Secretary St Barbara Limited Level 10
Slide 2: June 2013 Quarterly Report Highlights & FY 14 Guidance
TIM LEHANY, MANAGING DIRECTOR & CEO / 25 July 2013 For personal use only June 2013 Quarterly Report Highlights & FY 14 Guidance
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: June 2013 Quarter Highlights
June 2013 Quarter Highlights ˃ Q4 gold production up 24% to 107,363oz For personal use only ˃ FY13 gold production 364,601 oz at A$1,013/oz cash operating cost[1], up 8% on FY12 production ˃ Australian Operations performed well ˃ Pacific Operations below expectations ˃ Cash at bank increased to A$12
Slide 5: St Barbara Attributable Gold Production
St Barbara Attributable Gold Production For personal use only Gold Production 107 99 93 17 87 28 11 ˃ Record Q4 quarterly production 78 13 4 13 14 from Gwalia 4 13 16 19 12 15 ˃ Demonstrable improvement at 13 Gold Ridge 17 16 ˃ Attributable production includes 64 54 Pacific Operations from date of 4
Slide 6: Gwalia: St Barbara's cornerstone mine
Gwalia: St Barbara’s cornerstone mine For personal use only Gold Production 64.3 54.3 Q4 Key Points ˃ Record quarterly production 43.7 40.8 ˃ Higher tonnes of mined ore 34.3 ˃ Gwalia mill processed 345 kt of ore, beyond 1.2 Mt nameplate capacity at 96% recovery FY 12 FY 13 FY 13 FY 13 FY 13 Q4 Jun Q
Slide 7: Gwalia: Grade and costs
Gwalia: Grade and costs For personal use only Mined Grade & Cash Costs 9.0 Grade 8.2 ˃ Q4 mined grade 9.0 g/t Au 7.7 7.4 FY13 ˃ FY13 mined grade 8.2 g/t Au 8.2 g/t Au ˃ Majority of ore sourced from South West Branch (SWB) Costs FY13 A$751/oz ˃ Q4 cash op. cost A$661 / oz 853 814 744 ˃ FY13 cash op.
Slide 8: King of the Hills: Delivering to plan
King of the Hills: Delivering to plan For personal use only Gold Production 16.9 Q4 Key Points 16.4 15.9 ˃ Q4 production constrained by Gwalia mill capacity 12.7 12.9 ˃ Estimated 5,000 ounces of gold contained in stockpiles at 30 June 2013 ˃ FY13 production 58,477 oz ˃ FY13 cash op. cost A$843/oz FY
Slide 9: Gold Ridge: 23% increase in production
Gold Ridge: 23% increase in production For personal use only Gold Production Q4 Key Points 16.8 17.2 ˃ Continued improvement in gold production due to: 14.1 14.0 ˃ Increased mining fleet utilisation 10.7 ˃ Continuing improvements in processing plant ˃ Cash operating costs in Q4 A$1,627/oz, lower tha
Slide 10: Simberi: A poor quarter
Simberi: A poor quarter For personal use only Gold Production 15.1 Q4 Key Points 14.6 ˃ Production impacted by heavy 13.7 rainfall and mining fleet reliability 13.3 issues 12.9 ˃ Cash operating cost A$1,598/oz for Q4 due to lower production and higher maintenance costs ˃ Plant expansion now substant
Slide 11: Southern Cross: sale completed April 2013
Southern Cross: sale completed April 2013 For personal use only Gold Production ˃ Ceased mining and processing in Q2 19.2 ˃ Sale completed in Q3 ˃ A$18M cash proceeds plus A$8M cash released from environmental bonds 12.3 ˃ Remaining creditors paid out during quarter ˃ Provision for environmental Car
Slide 12: Discovery & Growth
For personal use only Discovery & Growth 11 / JUNE 2013 QUARTERLY REPORT HIGHLIGHTS & FY14 GUIDANCE
Slide 13: Exploration - Simberi, Tatau and Tabar Islands, PNG
Exploration - Simberi, Tatau and Tabar Islands, PNG For personal use only Simberi Island ˃ Exploration focused on identifying additional oxide resources ˃ Significant gold results from trenching and drilling at Botlu and Pigicow on near-mine prospects Tatau Island ˃ Significant gold results from exp
Slide 14: Exploration - Gold Ridge, Solomon Islands
Exploration - Gold Ridge, Solomon Islands Extending near mine resources For personal use only Guadalcanal Island ˃ Drilling has commenced on the Charivunga zone at Gold Ridge mine, with encouraging gold results including GDC076: ˃ 13m @ 2.3 g/t Au from 48m; 15m @ 2.6 g/t Au from 215m; and 84m @ 2.0
Slide 15: FY14 Guidance
For personal use only FY14 Guidance 14 / JUNE 2013 QUARTERLY REPORT HIGHLIGHTS & FY14 GUIDANCE
Slide 16: FY14 Guidance
FY14 Guidance ˃ The Gwalia mine at Leonora remains the Company’s cornerstone asset For personal use only and is expected to generate significant cash in FY14, even at lower spot gold prices, sufficient to cover finance and corporate overhead costs. ˃ The Pacific Operations, whilst taking longer and
Slide 17: FY14 Guidance
FY14 Guidance St Barbara LIMITED: Gold production Cash operating cost Capex koz AS/oz ASM Gwalia 180-195 720-750 45-50 King of the Hills 55-60 1,040 — 1,090 12-15 Gold Ridge 75-90 1,100 — 1,190 14-18 Simberi 85-100 900 — 990 20-25 Total 395 - 445 880-940 91-108 Exploration Expenditure ASM Australian
Slide 18: FY14 indicative quarterly guidance production profile
FY14 indicative quarterly guidance production profile For personal use only 27% 23% 25% 25% ˃ Consolidated production is anticipated to increase gradually throughout FY14 FY 14 FY 14 FY 14 FY 14 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Actual Indicative % of annual production (koz) 17 / JUNE 2013 QUARTERLY REPOR
Slide 19: FY14 Cash operating cost guidance ranges
FY14 Cash operating cost guidance ranges For personal use only A$1,250/oz 1,100-1,190 A$1,000/oz 1,040-1,090 900-990 880-940 A$750/oz 720-750 A$500/oz Gwalia King of the Hills Gold Ridge Simberi Consolidated A$/oz 18 / JUNE 2013 QUARTERLY REPORT HIGHLIGHTS & FY14 GUIDANCE
Slide 20: Company is well capitalised
Company is well capitalised Senior Secured Note issue for US$250 million completed For personal use only ˃ 5 year term ˃ Coupon 8.875% ˃ No performance covenants or early repayments on the notes ˃ All other bank debt facilities repaid (Red Kite gold loan remains) At 30 June 2013[1]: ˃ A$129 million
Slide 21: Conclusion
Conclusion ˃ FY13 has been one of transformation, with the divestment of Southern For personal use only Cross Operations and the acquisition of the Pacific Operations. ˃ Year on year, production increased 8% to 364,601 ounces. ˃ The Company has a number of planning scenarios to operate profitably in
Slide 22: Appendices
For personal use only Appendices 21 / JUNE 2013 QUARTERLY REPORT HIGHLIGHTS & FY14 GUIDANCE
Slide 23: FY13 St Barbara Attributable Gold Production
FY13 St Barbara Attributable Gold Production Production Summary: Consolidated For personal use only Sep Qtr FY13 Dec Qtr FY13 Mar Qtr FY13 Jun Qtr FY13 ˃ Gwalia oz 34,293 43,745 40,772 64,307 ˃ King of the Hills oz 15,935 12,709 16,940 12,893 Production ˃ Southern Cross oz 19,176 12,292 - - ˃ Gold R
Slide 24: Production Summary
Production Summary Production Summary: Consolidated For personal use only Year FY13 Guidance ˃ Gwalia oz 183,116 175 – 180,000 ˃ King of The Hills oz 58,477 55 – 60,000 Production ˃ Southern Cross oz 31,468 31,000 ˃ Gold Ridge1 oz 45,931 50 – 55,000 ˃ Simberi1 oz 45,609 55 – 60,000 Consolidated oz 3
Slide 25: Gwalia Production Summary
Gwalia Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 FY13 For personal use only Underground ore mined t 137,693 178,150 156,898 223,557 696,298 Grade g/t 7.4 7.7 8.2 9.0 8.2 Low grade ore & stockpiles t 45,841 51,235 12,402 26,159 135,638 Grade g/t 1.4 1.1 1.6 2.5 1.5 Ore mi
Slide 26: King of the Hills Production Summary
King of the Hills Production Summary For personal use only Sep Qtr Dec Qtr Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 FY13 Underground ore mined t 114,358 99,106 129,869 126,726 470,058 Grade g/t 4.3 4.7 4.1 4.4 4.4 Ore milled t 117,559 91,531 132,130 98,179 439,398 Grade g/t 4.4 4.6 4.2 4.3 4.4 Recovery %
Slide 27: Southern Cross Production Summary
Southern Cross Production Summary Sep Qtr Dec Qtr2 Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 FY13 For personal use only Underground ore mined t 175,471 79,277 - - 254,748 Grade g/t 2.2 2.1 - - 2.2 456,949 343,528 - - 800,477 Ore milled t 1.5 1.3 - - 1.4 Grade g/t 88 85 - - 86 Recovery % 19,176 12,292 - -
Slide 28: Gold Ridge Production Summary
Gold Ridge Production Summary [1] For personal use only Sep Qtr Dec Qtr Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 FY13 Underground ore mined kt 158 451 470 501 1,581 Grade g/t 1.3 1.3 1.5 1.7 1.5 Ore milled kt 140 373 452 471 1,437 Grade g/t 1.3 1.4 1.6 1.7 1.5 Recovery % 72 65 61 67 65 Gold production oz
Slide 29: Simberi Production Summary
Simberi Production Summary [1] For personal use only Sep Qtr Dec Qtr Mar Qtr Jun Qtr FY13 FY13 FY13 FY13 FY13 Underground ore mined kt 168 592 621 561 1,942 Grade g/t 1.1 1.0 1.0 1.0 1.0 Ore milled kt 140 432 485 414 1,471 Grade g/t 1.1 1.1 1.1 1.1 1.1 Recovery % 84 89 89 87 88 Gold production oz 4,
Slide 30: Start safe, stay safe
Start safe, stay safe For personal use only Safety: Total Recordable Injury Frequency Rate 14.8 12.5 11.1 ˃ Lowest annual TRIFR since the 9.0 measure was first adopted by 7.6 St Barbara in 2009 6.4 FY13 TRIFR 6.0 6.0 ˃ TRIFR includes Pacific Operations 5.5 from September 2012 FY 09 FY 10 FY 11 FY 12
Slide 31: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 30 / JUNE 2013 QUARTERLY REPORT HIGHLIGHTS & FY14 GUIDANCE
Slide 32: Competent Persons Statement
Competent Persons Statement For personal use only The information in this report that relates to Company-wide Exploration Results and Mineral Resources in Australia is based on information compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Phillip
Slide 33: 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