St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2011)
30 slides from St. Barbara's shareholder meeting presentation, Nov 17, 2011
Slide 1: 2011 Annual General Meeting
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only 2011 Annual General Meeting Attached is a copy of the Chairman’s address and Man
Slide 2: Chairman's Address to the 2011 AGM
COLIN WISE, CHAIRMAN ADDRESS TO THE 2011 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ST BARBARA LTD Ladies and Gentlemen For personal use only The headlines I am delighted to report that the past 12 months have seen St Barbara’s emergence as a profit generating gold producer. We have begun to realise
Slide 3: Where to now? Share capital and related matters
Unfortunately for Australian based gold producers like St Barbara, the benefit of the strong rise in the US dollar gold price over the past 12 months has been abated by the rising Australian dollar relative to the US dollar. Another consequence of a strong Australian dollar is that Australian costs
Slide 4: For personal use only
the Company’s balance sheet is strong, with almost no debt and a rapidly increasing capacity to generate cash in current market conditions; all of St Barbara’s project developments are now fully paid for; For personal use only all of which has finally allowed our strategic business focus to ch
Slide 5: For personal use only
‘Outstanding Equal Employment Opportunity Practice for the Advancement of Women in a non traditional area’. There have been other important developments: the Company’s corporate governance framework has been reviewed and strengthened, with For personal use only our policies and charters benchmarke
Slide 6: Strategic approach
Strategic approach The overall strategy is for St Barbara to continue as a gold company, although not necessarily with entirely Australian based operations. All the fundamentals are expected to remain in place for a sustained period of high US dollar gold prices. For personal use only Our best lever
Slide 7: Conclusion
Despite strong support in favour of the resolutions, it is apparent from the number of proxy votes received against them, that the required majority of votes in favour of the resolutions would not be achieved if they were to be determined by poll. Conclusion For personal use only In concluding, I pa
Slide 8: Proven Performance, Focus on Value
For personal use only Proven Performance, Performance Focus on Value Tim Lehany, Ti L h Managing M i Director Di t & CEO Annual General Meeting, 17 November 2011
Slide 9: Disclaimer
Di l i 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. l This Thi presentation t ti is i nott an offer ff or invitation i it ti for f subscription b i ti or purchase
Slide 10: Delivering profits
Delivering profits For personal use only 3 Proven Performance, Focus on Value – November 2011
Slide 11: One of Australia's largest gold companies
One of Australia’s largest gold companies - profitable, profitable cash generating generating, exploring For personal use only Stock Code SBM (ASX) ASX market capitalisation(2) A$801 million Proven FY 11 performance A$69 million NPAT FY12 production(1) 320,000-350,000 oz Net Cash(4) A$71 million Ore
Slide 12: Delivering production growth in FY11
Delivering production growth in FY 11 For personal use only SAFETY PRODUCTION • Gwalia continues to -1.4 +12% move to higher grade p g production 12.5 11.1 258 • more ounces 231 • lower costs • King of Hills successfully commissioned • Safety performance a key focus FY10 FY11 FY10 FY 11 TRIFR koz As
Slide 13: Converting production to EPS
Converting production to EPS For personal use only NPAT* NPAT CASH FLOW** FLOW EPS* +$39M +$40M +$0.12 54 117 A$0.35** 77 A$0.17 15 A$0.05 FY 10 FY 11 FY 10 FY 11 FY 10 FY 11 FY 12 F A$M A$ A$M Year to 30 June 2010 and 30 June 2011 Year to 30 June 2010 and 30 June 2011 * Underlying EPS * Underlying
Slide 14: Experienced operators
Experienced operators For personal use only Successful developers and miners 7 Proven Performance, Focus on Value – November 2011
Slide 15: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only PRODUCTION GUIDANCE RANGE FY12 320 000 – 350,000 320,000 350 000 oz Leonora Operations Southern Cross Operations Ore Reserves: Ore Reserves: 11.2 Mt @ 7.0g/t Au for 2.5 Moz1,2 3.5 Mt @ 2.1g/t Au for 233 koz1 Mi
Slide 16: Leonora Operations - engine room for cash generation
Leonora Operations - engine room for cash generation For personal use only Gwalia Mine Mine life: 12+ months ((AT JUNE 2011)) Expect to achieve sustainable gold Marvel Loch Mine production in FY12 of 175,000 to Processing capacity: 2.2Mtpa 190 000 ounces p 190,000 p.a. a Ore Reserves: Forecast c
Slide 17: Gwalia reserves increased to 2.0 Moz, open at depth
Gwalia reserves increased to 2.0 Moz, indicative 10 yr mine life, open at depth For personal use only Gold Contained Gwalia Deeps Tonnes Grade Gold Kt g/t Au koz Reserves 6,917 8.9 1,973 Resources 14,450 8.5 3,941 SBM UG Production 1,600Kt @ 6.1g/t Au (317Koz) 10 Proven Performance, Focus on Value –
Slide 18: Gwalia FY12 forecast ore production
Gwalia FY12 forecast ore production of 700 730 kt 700-730 ktpa iis readily dil achievable hi bl For personal use only Annualised Ore Mined - Gwalia ktpa 900 800 700 600 500 400 300 200 100 0 Sep 08 Sep-08 Dec 08 Dec-08 Mar 09 Mar-09 Jun 09 Jun-09 Sep 09 Sep-09 Dec 09 Dec-09 Mar 10 Mar-10 Jun 10 Jun-
Slide 19: Gwalia - growing production, improving margins and returns
Gwalia - growing production, improving margins and returns as grade increases For personal use only GROWING GWALIA PRODUCTION INCREASING GRADE DRIVES LOWER CASH OPERATING COSTS FOR GWALIA 175-190 1400 9 8.0-8.5 g/t Au 8 1200 6.3 g g/t Au 7 131 1000 6 109 138 765 800 5 109 610-640 600 4 3 400 2 200 1
Slide 20: King of the Hills - Satellite project generating cash flow
King of the Hills – Satellite project generating cash flow For personal use only King of the Hills Mine Satellite underground project Successfully commissioned May 2011 Opportunity to fully use Gwalia mill capacity p y 55,000 to 60,000 ounces pa Life of 4 ½+ years Minimum gold price of A
Slide 21: Driving shareholder value
Driving shareholder value For personal use only Capability has been established, now we are looking to drive value 14 Proven Performance, Focus on Value – November 2011
Slide 22: Driving shareholder value: Discovery and Growth
Driving shareholder value 1 Discovery and Growth 1. For personal use only 15 Proven Performance, Focus on Value – November 2011
Slide 23: Investing in exploration for discoveries
Investing in exploration for discoveries For personal use only 515,000 , ounces of Indicated and Inferred Resources added in FY11 at Gwalia below 1,640 mbs for discovery cost of $16 per ounce INCREASING EXPLORATION EXPENDITURE $22M 37,000 m 22 8 $12M Drilling Salaries & Admin FY10 FY11 Land Holding
Slide 24: Australia wide drilling targets
Australia wide drilling targets For personal use only • 4,700+ km2 of prospective land around Australia • 12 targets planned to be drilled in FY12* * subject to results 17 Proven Performance, Focus on Value – November 2011
Slide 25: Leveraging value at Leonora Operations
Driving shareholder value 2 Leveraging value at Leonora Operations 2. For personal use only • Loweringg cost and improving p g productivity p y at Gwalia • Haulage optimisation pre‐ feasibility study due 2H FY12 • Procurement focus already saved A$10M in 2 years • Business improvement program underw
Slide 26: Disciplined evaluation of external opportunities
Driving shareholder value 3. Disciplined p evaluation of external For personal use only opportunities – driven by prospectivity • Clearly defined investment criteria • Focus on value accretive opportunities, pp supported by prospectivity upside 19 Proven Performance, Focus on Value – November 2011
Slide 27: St Barbara - driving shareholder value
St Barbara – driving shareholder value For personal use only • Gwalia G li costs t to t fall f ll and d margins i lift with ith higher hi h grades d • Plans to leverage further value from Gwalia • Active drilling Australia wide for discoveries • Financial strength to fund growth • FY12 consensus EPS
Slide 28: Proven Performance, Focus on Value
For personal use only Proven Performance, Focus on Value
Slide 29: Investor Relations Enquiries
Proven Performance Performance, Focus on Value For personal use only Investor Relations Enquires: Ross Kennedy Executive General Manager Corporate Services E: ross ross.kennedy@stbarbara.com.au kennedy@stbarbara com au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T +6
Slide 30: Competent persons statement
Competent persons statement For personal use only References to Mineral Resources and exploration results presented in this References to Ore Reserves presented in this document have been produced in document have been produced in accordance with The Australasian Code for accordance with The Austral