St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Mining Forum 2017
32 slides from St. Barbara's conference presentation, Aug 7, 2017
Slide 1: Presentation to Diggers and Dealers Mining Forum
ASX Release / 7 August 2017 For personal use only Presentation to Diggers and Dealers Mining Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia. Investor Relations Mr Rowan Cole Company Secretary +61 3 8
Slide 2: Diggers & Dealers Mining Forum
BOB VASSIE, MANAGING DIRECTOR & CEO / 7-9 August 2017 For personal use only Diggers & Dealers Mining Forum
Slide 3: Disclaimer
For personal use only Disclaimer 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: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM), est. 1969 Papua Simberi New Guinea For personal use only Commodity Gold (Au) Market cap2 A$1.4B @ A$2.81/sh Shares2 497 M Liquidity5 5.4 M/day (1.1%) EPS6 A$0.34 Cash8 A$161 M Australia Leonora Debt Nil7 (Gwalia mine) Ore Reserves (JORC) 1 4.0 Moz Mineral Resou
Slide 5: Highlights FY17
Highlights FY17 • Record safety For personal use only • Record annual production1 381 koz (FY16: 377 koz) • Record low AISC2 $907/oz (FY16: $933/oz) • Record cash contribution3 A$323M (FY16: A$277M) • Debt free, $161M cash at bank4 • $0.06 dividend (fully franked)5 • Positioned to grow 1. From conti
Slide 6: Record safety TRIFR result + trophies
Record safety TRIFR result + trophies Total Recordable Injury For personal use only St Barbara Gwalia ERT4 Frequency Rate 1,2,3 2015 team Winners 9.0 2015. 6.0 5.0 4.1 Again 2.1 1.2 2016 team 2016. FY 12 FY 13 FY 14 FY15 FY16 FY17 1. Total Recordable Injury Frequency Rate (12 month avg) 2. TRIFR inc
Slide 7: 'Three moving parts' from FY16 resolved in FY17
‘Three moving parts’ from FY16 resolved in FY17 FY16 questions FY17 results For personal use only Gwalia materials Gwalia extension project 1 handling • $100 M project approved March 2017 • Extends mining to at least 2,000 mbs in FY 2024 Simberi sulphides Simberi retained 2 & strategic review • Prod
Slide 8: FY17 actual vs guidance
FY17 actual vs guidance FY17 Actual vs guidance For personal use only 260 - 265 Production - Gwalia (koz) 265 245 265 Production - Simberi (koz) 95 105 105 110 116 AISC - Gwalia (A$/oz) 785 795 815 850 910 AISC - Simberi (A$/oz) 1187 1,285 1,330 1,490 - 1,330 80% 85% 90% 95% 100% 105% 110% 115% 120%
Slide 9: Debt repaid in full in March 2017
For personal use only Debt repaid in full in March 2017 Cash and debt Net Debt / Net Cash1 A$M A$M 200 200 160 161 98 100 137 100 31 79 77 Net Cash 0 0 -1 -15 -100 -100 -92 Net Debt -134 -200 -226 -200 -199 -243 -300 -340 -300 -270 -347 -311 -320 -312 -400 -400 2014 2015 2016 2017 FY15 FY15 FY15 FY1
Slide 10: Consolidated FY17 results + FY18 guidance
Consolidated FY17 results + FY18 guidance AISC (Consolidated) For personal use only (A$/oz) 1,007 1,000 Record production2 of 381 koz 932 907 • Exceeded FY17 guidance of 365 to 375 koz Gold Production AISC record low A$907/oz (koz) 377 381 328 363 • Outperformed FY17 guidance of 110 116 110 A$940 t
Slide 11: Gwalia production year on year
Gwalia production year on year Mined Grade For personal use only (g/t Au) 10.7 9.3 8.8 8.9 8.2 8.4 6.9 6.3 Reserve Grade 5.7 8.3 g/t Au June 2016 Production 267 265 260 (koz) 248 245 214 AISC 185 183 (A$/oz) 940 841 865 131 783 785 109 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18F
Slide 12: Gwalia mining | South West Branch
Gwalia mining | South West Branch ‘The Sweet Spot’ For personal use only • Deepest FY17 production at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs 1480MBS • Extend mine ~one level (40 Deepest level of meters) per annum ‘Sweet Spot’ mining, Q4 FY7, 1620 mbs • Reserve grad
Slide 13: Simberi FY14 to FY17
Simberi FY14 to FY17 Simberi Production For personal use only Simberi Ore Milled 3,690 115 3,315 110 116 105 2,670 80 1,714 44 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY18F kt koz Simberi Total Material Moved Simberi AISC1 2,300 14,335 1,464 1,380 9,899 1,293 1,187 1,260 6,294 4,151 FY14 FY15 FY16 F
Slide 14: Gwalia Extension Project
Gwalia Extension Project • Gwalia Extension Project approved For personal use only March 20171 • 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 extensio
Slide 15: Gwalia Extension Project | Paste Aggregate Fill
For personal use only Gwalia Extension Project | Paste Aggregate Fill Paste aggregate fill (PAF) • Waste from development (and raise-boring) deposited in 1 or 2 1 disused northern abutment stopes • Crushed via 2 stage crushing circuit on 1420 level • Aggregate stored in waste pass • Aggregate mixed
Slide 16: Gwalia Extension Project | Paste Aggregate Fill
For personal use only Gwalia Extension Project | Paste Aggregate Fill Innovative combination of existing techniques for unique challenges of a deep trucking mine • Fills stopes more rapidly • Eliminates waste haulage to surface, increasing truck efficiency • Increases ventilation efficiency • Reduce
Slide 17: Gwalia Extension Project update | on schedule
Gwalia Extension Project update | on schedule • A$8M capex spent in FY17 (inc. A$3.5m For personal use only in Q4) - drilling, studies, tunnel development • Major contracts completed: • Weir Minerals for PAF • RUC Cementation for vent shafts • Study with RUC for simultaneous shaft construction, pote
Slide 18: Gwalia Seismic Exploration
Gwalia Seismic Exploration Gwalia Seismic Exploration For personal use only • Results analysis during 1H FY18 • Key geological features strongly reflective • Early results indicate downward plunge below 2,500 mbs • Inform drilling program • Further seismic testing planned in Greater Gwalia area 17 /
Slide 19: Exploration | Gwalia Deep + Intermediates Drilling Program
For personal use only Exploration | Gwalia Deep + Intermediates Drilling Program Gwalia deep drilling objectives • Extend resources below 2,000 mbs • Intermediates – follow- up historic narrow high grade intercepts ~1,000 mbs For full explanation and results refer to ASX release 26 July 2017 ‘Quarte
Slide 20: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps FY18 Gwalia Deeps For personal use only • Further drilling 2,000 to 2,200 mbs with objective to extend Indicated Resource • 2,600 mbs drill starting Q2 Sep 2017 For full explanation and results refer to ASX release 26 July 2017 ‘Quarterly Report June 2017’ 19 / Diggers & D
Slide 21: Exploration | FY18 Guidance - A$16 to A$20 million
For personal use only Exploration | FY18 Guidance - A$16 to A$20 million A$8 - A$10 million Gwalia • Gwalia Deep Drilling + Seismic A$4 - A$5 million Pinjin WA • Aircore drilling of targets identified in FY17 A$4 - A$5 million PNG • Simberi Oxides/Sulphides • Tatau Oxides/Sulphides Option and farm i
Slide 22: PNG Exploration | Tatau Island
For personal use only PNG Exploration | Tatau Island Tatau Island Company’s own oxide and sulphide gold exploration • Aim to increase Simberi mine-life Option and farm-in agreement with Newcrest • Copper - gold porphyry exploration Tatau Is. viewed from Simberi, Tabar Is. left back Simberi Island Gr
Slide 23: Exploration | Pinjin
Exploration | Pinjin Pinjin Project For personal use only • Located 150 km northeast of Kalgoorlie, 1,358 km2 tenement package nearby Carosue Dam mine FY17 results • Aircore drilling of early stage prospects • Gravity and electromagnetic surveys FY18 program • Aircore testing of targets identified i
Slide 24: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender For personal use only Equality in 2014, 2015 & 2016, one of three resources companies certified • 2017 Company Diversity Program – Victorian Women in Resources Awards • Overall pay equity gap reduced from 43% in 2007 to 16% in 2016 1 • Nil gender
Slide 25: Profitable growth options
Profitable growth options Existing opportunities For personal use only • Gwalia extension project • Simberi mine life review, sulphides • Exploration in WA and PNG Eyes open for opportunities • Consider sensible inorganic growth where it increases shareholder value • Systematic evaluation process un
Slide 26: How we create shareholder value
How we create shareholder value FY18 Priorities For personal use only Operational Excellence Organic growth • A$100m Gwalia Extension Project • PNG exploration • Internal exploration pipeline Disciplined Strong Robust balance sheet Capital Balance Sheet Allocation • Strong free cashflow • Dividend &
Slide 27: Conclusion
Conclusion • Another record year – safety, production, For personal use only cash flow, and a dividend! • Sustained production and cash flow outlook, cash reserves, debt free2 • Profitable growth options in current portfolio: • Gwalia & Pinjin in WA • Simberi & Tatau in PNG • Positioned to grow Lake
Slide 28: Questions?
For personal use only Questions? Shadows silhouetted viewing an ore pass, Gwalia mine, January 2016 27 / Diggers & Dealers Mining Forum – 7-9 August 2017
Slide 29: Appendices
For personal use only Appendices Gwalia - January 2017 28 / Diggers & Dealers Mining Forum – 7-9 August 2017
Slide 30: Competent Persons Statement
For personal use only Competent Persons Statement 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 31: Non-IFRS Measures
Non-IFRS Measures We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain For personal use only non-IFRS financial measures, including cash operating costs. We believe that these measures provide meaningful information to ass
Slide 32: Investor Relations Enquiries
For personal use only Investor Relations Enquiries Rowan Cole Alistair Reid Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), 31 / D