23 slides from St. Barbara's roadshow presentation, Mar 10, 2011
Slide 1: Presentation by Tim Lehany, Managing Director and CEO
St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 For personal use only www.stbarbara.com.au Presentation by Tim Lehany Managing Director and CEO Attached is a presentation
Slide 2: Casimir Capital - Value Focused Gold Company
For personal use only CASIMIR CAPITAL Tim Lehany, Managing Director & CEO March 2011 VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 1
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“Company”). This presentation has been prepared by the Company based on The material contained in this presentation is for information purposes only. information available to it and has not been indep
Slide 4: Why gold?
Why gold? For personal use only "Gold Keeps p Looking g Good — US GOLD PRICES Gold rallied 30% in USD terms over CY10, substantially outperforming the major global equity indices and extending its sustained 10-year bullish uptrend." CITI - HELLO PRECIOUS REPORT JANUARY 2011 *SOURCE: IRESS Jan-10 May
Slide 5: Emerging mid-cap Australian gold producer & explorer
Emerging mid-cap Australian gold producer & explorer For personal use only STOCK CODE: SBM Ore Reserves A t li b Australian based d producer d (1) 231Koz 231K 10.2Mt @ 7.3g/t / Au for f 2.4Moz Mineral Resources ASX market capitalisation(2) A$664M 27.7Mt @ 6.1g/t Au for 5.4Moz Producing operations 2
Slide 6: Delivering growth since 2005
Delivering growth since 2005 For personal use only NPAT* NPAT CASH FLOW* FLOW PRODUCTION RESERVES +$32M 28,724 +$72M +180% +1000% 231,018 2,906 56,951 231018 XXX 83,247 83247 -3,607 -14,823 260 H1 05 H1 11 H1 05 H1 11 FY05 FY10 2005 2010 A$’000 A$’000 oz A$’000 31 December 2004 to 31 December 2010 3
Slide 7: Growing the business and increasing margins
Growing the business and increasing margins For personal use only ORGANIC GROWTH Increasing Gwalia production New mine being developed – King of the Hills Exploration E l ti success DRIVING BUSINESS MARGINS Procurement savings Systems improvement program Productivity improvement program
Slide 8: Strong financial performance = flexibility
Strong financial performance = flexibility For personal use only CASH DEBT DEBT ÷ EQUITY Record 1H 2011 Results 96 Underlying NPAT of $28.7M Underlying EPS of 8.82¢ 4 6% 4.6% $330M g $ gross value of tax losses 3.1% 13 Dec 10 Dec 10 J 10 Jun D 10 Dec A$’M % VALUE FOCUSED GOLD COMPANY MARCH 2011 SLID
Slide 9: Building a high performance business
Building a high performance business For personal use only IMPROVING SAFETY PERFORMANCE 14.8 11.1 8.9 Jun 09 Jun 10 Dec 10 Total Recordable Injury Frequency Rate VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 8
Slide 10: Building reserves – extending mine life
Building reserves – extending mine life For personal use only 2.9Moz in Ore Reserves 4,000 4,000 7 2.9Moz 6 3 000 3,000 3,000 5 4 2,000 2,000 3 2 1,000 1,000 1 0 0 0 2005 2006 2007 2008 2009 2010 Reserve & Reserve Grade St Barbara Ore Reserves AT 30 JUN 2010 AT 30 JUN 2010 VALUE FOCUSED GOLD COMPANY
Slide 11: Growing gold production
Growing gold production For personal use only 400,000 330-370Koz 350,000 265-295Koz1 300,000 250,000 231Koz 200,000 150,000 100,000 83Koz 50,000 0 2005 2006 2007 2008 2009 2010 2011 Guidance 2012 Guidance 1 = Exceptionally heavy rain at Leonora, WA, as reported on 21 February 2011, is likely to resu
Slide 12: Our operations
Our operations For personal use only Leonora Southern Cross Mine life: life Mi life: Mine lif 9+ years 24+ months (AT JUNE 2010) Ore Reserves: Ore Reserves: 10.2Mt @ 7.3g/t Au for 2.4Moz 5.4Mt @ 2.8g/t Au for 500Koz Mineral Resources: Mi Mineral l Resources: R 27.7Mt @ 6.1g/t Au for 5.4Moz 19.9Mt @
Slide 13: Leonora Operations
Leonora Operations For personal use only Gwalia U d Underground d Gwalia continues to build gold production towards a sustainable level of 200 200,000 000 oz pa First quartile cash cost position of $500-550 per ounce by FY12 Gwalia mineralisation extended at depth to 1900mbs King of the Hills
Slide 14: Leonora Operations – Gwalia Underground
Leonora Operations – Gwalia Underground For personal use only VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 13
Slide 15: Leonora Operations driving higher returns
Leonora Operations driving higher returns For personal use only GROWING GWALIA REDUCING GWALIA AND KING OF THE HILLS CASH OPERATING COSTS 719 PRODUCTION 245-270 686 83koz 630-680 500-550 155-170 109 83 2009 2010 2011 Guidance 2012 Guidance 2009 2010 2011 Guidance 2012 Guidance Koz A$ VALUE FOCUSED G
Slide 16: Southern Cross Operations
Southern Cross Operations For personal use only Marvel Loch Mature operation generating strong positive cash flows Prospective ospect e land a d for o discovery d sco e y VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 15
Slide 17: Unlocking asset potential
Unlocking asset potential For personal use only 5,000+ km2 of prospective land around Australia VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 16
Slide 18: Creating value – priority targets
Creating value – priority targets For personal use only Discovery TARGET DELINEATION DRILL TARGETING DRILL TESTING RESOURCE DELINEATION FEASIBILITY STUDY Pipeline Western Australia Gwalia Deeps Extension Tower Hill King of the Hills North Copperhead Frasers South Hibernia South Yerilla
Slide 19: Trading at a deep relative discount
Trading at a deep relative discount For personal use only EV/Reserves (A$/oz) EV/Resources (A$/oz) 600 250 500 200 400 150 300 199 100 200 76 100 50 0 0 15000 EV/LTM Production (A$/oz) 15 1.5 P/NAV(1) 12000 1 9000 0.74 6000 0.5 2 400 2,400 3000 0 0 Source: Company filings, IRESS equity research. Mar
Slide 20: Long life, high cash margins
Long life, high cash margins For personal use only Cash Margin (US$/oz) 1,000 Kingsgate 900 Low cost but Low cost and short mine long mine life Ramelius 800 Oceanagold Resolute 700 Catalpa Saracen St Barbara 600 ex-Southern Cross St Barbara 500 Unity 400 2.0 4.0 6.0 8.0 10.0 12.0 Reserve Life (years
Slide 21: Increasing institutional investment and high share liquidity
Increasing institutional investment and high share liquidity For personal use only 20%% increase in SIGNIFICANT HOLDERS 18.1% M&G Group (UK) institutional support 6.0% Franklin Templeton (US) in the last two years 6.4% Hunter Hall ((Aus)) $2.20–$3.90 Target share price range Register comprises ~80%
Slide 22: Why St Barbara?
For personal use only Wh St Barbara? Why B b ? Strong self-funding organic growth Leverage to gold price through growth and increasing margins Strong financial position – record net profit and operating cash flow Organic production growth guidance of 330 – 370Koz by FY12 Active drilling of p
Slide 23: Competent persons statement
Competent persons statement For personal use only Significant gold intersections and geological interpretations contained in this report have been compiled by Mr. Phillip Uttley. Mr. Uttley is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full time employee of the company.