St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2016
52 slides from St. Barbara's conference presentation, Sep 19, 2016
Slide 1: Presentation to 2016 Denver Gold Forum
ASX Release / 19 September 2016 For personal use only Presentation to 2016 Denver Gold Forum Bob Vassie, Managing Director and CEO, will present to the Denver Gold Forum in Colorado, USA, at 8:30am Denver time (UTC -6 hours) on Monday 19 September 2016 (12:30am Melbourne time (UTC +10 hours) on Tues
Slide 2: Denver Gold Forum 2016
BOB VASSIE, MANAGING DIRECTOR & CEO / 19 September 2016 For personal use only Denver Gold Forum 2016
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“the Company”). The material Investors are cautioned not to place undue reliance on such statements. contained in this presentation is for information purposes only. This presentation is not an This p
Slide 4: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production For personal use only > Shares on issue 497 M ˃ FY16 387 koz @ AISC4 US$679/oz > Market Cap2 US$1,179 M ˃ FY17F3 355 koz @ AISC US$773/oz > ADR OTC code STBMY > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resour
Slide 5: Contents
Contents ˃ FY 2016 Results and Records For personal use only ˃ FY 2017 Guidance ˃ Growth ˃ Resources & Reserves Upgrade ˃ Exploration ˃ Conclusion Sky over Gwalia processing plant, April 2016 4/ 2016 Denver Gold Forum
Slide 6: St Barbara since Denver 2015 – turnaround complete
St Barbara since Denver 2015 – turnaround complete Record production & costs Record safety performance2 For personal use only Realised gold price 1,294 (US$/oz) 1,197 1,161 AISC1 1,230 (US$/oz) 9.0 TRIFR (Total Recordable 838 injury frequency rate) Production (koz) 679 387 368 377 6.0 9 46 50 110 5.
Slide 7: St Barbara since Denver 2015 – turnaround complete
St Barbara since Denver 2015 – turnaround complete June June Change 2015 2016 For personal use only Share price US$ 0.44 +400% 2.20 ˃ ASX 200 from Mar 2016 Market cap US$M 218 +400% 1,088 ˃ Record profit in FY16, ASX m’cap rank rank 297 +152 145 driven by1: ˃ 19% fall in US$ AISC2 NPAT (Statutory) U
Slide 8: Gwalia: Record production driven by productivity gains
Gwalia: Record production driven by productivity gains 8% year on year improvement, Mined Grade 9.3 3 key innovations (g/t Au) 8.8 8.9 For personal use only 8.2 8.4 6.9 Reserve Grade 6.3 8.3 g/t Au June 2016 5.7 Ore passes Allows bogger to work constantly, independent of ore trucks, 267 265 removes
Slide 9: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (US$/oz) For personal use only 2,111 1,218 941 9,898 Mining 110 110 Consecutive years of >50% improvement 6,293 100 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y 80 Mining 4,151 (kt) Production (koz) 44 FY14 FY15
Slide 10: FY17 – Continued strong cash generation
FY17 – Continued strong cash generation St Barbara’s AISC cash margin FY17 guidance For personal use only 1,400 Average gold price realised US$/oz > Production 340 - 370 koz 1,200 > AISC1 US$735 – 810/oz > Exploration US$14 -17 million 1,000 Margin US$/oz > Capex US$34 – 40 million 800 Longer term 6
Slide 11: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ Indexed from 1 July 2015 700% For personal use only Top performing stock in the ASX 200 in FY20162 600% Top performing stock in ASX 300 in CY20151 500% ASX:SBM 400% 300% 200% ASX: XGD A$ gold 100% US$ gold 0% 1 Jul 15 1 Oct 15 1 Jan 16 1 Apr 16 1 Jul 16 1
Slide 12: Cash and Debt
Cash and Debt Debt, Cash Balance & Contribution from Operations (FY15 to present) For personal use only AUD Debt2,3 420 390 367 358 355 325 325 299 325 271 USD Debt2 249 248 216 226 189 168 170 108 115 114 Cash balance1 100 128 77 137 70 56 70 80 71 69 69 57 A Cash 10 32 Contribution4 FY15 FY15 FY15
Slide 13: Profitable growth options
Profitable growth options Existing opportunities For personal use only > Gwalia mine extension study well advanced > Simberi strategic review well progressed > Exploration in WA and PNG Eyes open for other opportunities > Consider sensible inorganic growth where it increases shareholder value > Syst
Slide 14: Reserves and resources
Reserves and resources Gwalia - Major variances FY15 to FY16 1 For personal use only Gwalia Reserves Gwalia Resources +193 +428 +297 +379 +131 -346 -277 1,808 3,896 koz 1,594 koz 3,304 June Mining Depth Design June June Mining Main Lode SW branch SGS June 2015 depletion extension changes 2016 2015 d
Slide 15: Gwalia - ongoing drilling program
Gwalia - ongoing drilling program For personal use only 1. Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 14 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’
Slide 16: Gwalia - planning on a long profitable life
Gwalia - planning on a long profitable life Gwalia Reserves & For personal use only Resources upgrade June 20161 > Reserves increased 1.6 to 1.8 Moz (net) > Resources increased 3.3 to 3.9 Moz (net) Upgrade supported by studies and future project2 > PFS reviewed shaft options versus trucking and incr
Slide 17: Gwalia 2200 Deeps Extension
Gwalia 2200 Deeps Extension For personal use only For full details Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 16 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’ .
Slide 18: Northern extension FY17 drilling: seeking up-plunge extent
Northern extension FY17 drilling: seeking up-plunge extent For personal use only For full details Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 17 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’
Slide 19: Greater Gwalia – province exploration campaign in FY17
Greater Gwalia – province exploration campaign in FY17 For personal use only ˃ Explore reflecting sound waves off mineral formations ˃ Used successfully by other regional gold miners ˃ Q1 Gwalia, Q2 ‘Greater Gwalia’ ˃ 2D/3D program, IP, + down hole sensors For full details Refer ASX announcement 23
Slide 20: FY17 greenfields exploration – Pinjin (Western Australia)
FY17 greenfields exploration – Pinjin (Western Australia) For personal use only Pinjin Project Located 150 km northeast of Kalgoorlie, WA, 250 south-east of Gwalia Comprises 1,358 km2 tenement package 288 holes drilled to date for a total of 14,385 m Further aircore and follow-up reverse cir
Slide 21: Simberi, Papua New Guinea: maximize shareholder value
Simberi, Papua New Guinea: maximize shareholder value For personal use only Strategic review > Broad consideration of options for PNG assets to maximize shareholder value Sulphide Project > Potential to extend mine life by 8 years via investment in sulphide processing circuit Exploration Simberi:
Slide 22: FY17 Exploration PNG: Mt Letam Au-Cu target, Tatau Island
FY17 Exploration PNG: Mt Letam Au-Cu target, Tatau Island For personal use only Mt Letam drill hole TTD061 Mt Letam drill hole TTD061 Mt Letam drill core Mt Letam camp 21 / 2016 Denver Gold Forum
Slide 23: St Barbara vs Comparators - FCF Yield, Reserves, Production
St Barbara vs Comparators - FCF Yield, Reserves, Production Reserves (Moz) Q4 June 2016 FCF Yield For personal use only 18 (Implied free cash flow per share/ share price) 16 Detour New Gold 14 Bubble size = implied FCF 12 Acacia 10 B2 Gold Evolution 8 IAMGOLD 6 Semafo St Barbara Regis 4 Oceana Gold
Slide 24: St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC
St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC Q4 June 2016 Global gold production – AISC For personal use only 1,400 53 companies, 196 mines 1,200 1,000 800 AISC (US$/oz) St Barbara US$716/oz AISC Gwalia US$644/oz AISC 600 400 200 0 0 2 4 6 8 10 Asia Africa Australia North America South Am
Slide 25: Great year, big future
Great year, big future FY16 FY17 For personal use only ˃ Record safety ˃ Aiming to maintain production & cash flow ˃ Record production ˃ Low Gwalia AISC generates high margin & cash flow ˃ Record profit ˃ Now looking at profitable growth options ˃ Record cash flow ˃ Working to extend Gwalia life ˃ E
Slide 26: Questions?
Questions? For personal use only Shadows silhouetted viewing an ore pass, Gwalia mine, January 2016 25 / 2016 Denver Gold Forum
Slide 27: Appendices
Appendices For personal use only March 2016: Rainbow over Hoover House and Gwalia pit. 26 / 2016 Denver Gold Forum
Slide 28: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 FY17 For personal use only Production Gwalia oz 248,142 72,388 63,533 66,147 65,098 267,166 260 to 265 koz3 245 to 265 koz King
Slide 29: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ $4.00 $3,000 For personal use only Top performing stock in the ASX 200 in FY20162 $3.50 Top performing stock in ASX 300 in CY20151 $2,500 $3.00 $2,000 $2.50 A$ gold (RHS) $2.00 $1,500 ASX: XGD (RHS/2) $1.50 $1,000 US$ gold (RHS) $1.00 $500 $0.50 SBM (LHS)
Slide 30: FY16 Financial Summary (A$)
FY16 Financial Summary (A$) FY16 FY15 For personal use only Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost 2 A$/oz 933 1,007 Result ˃ Statutory profit after tax A$M 169 40 ˃ Underlying net profit after tax 2 A$M 127 42 ˃ EBITDA 2 A$M 298 168 ˃ Underlying EBITDA 2 A$M
Slide 31: Financial Results
Financial Results Key changes to underlying profit1 FY15 to FY16 Key changes to underlying profit1 FY15 to FY16 For personal use only 10 5 4 40 1 1 -1 -28 53 A$ Million 127 42 FY15 Gross Profit - Gross profit - Exploration Corporate D&A Finance + FX Royalties Other Income tax FY16 Aust Ops Simberi O
Slide 32: Financial Results - Cash movement FY16
Financial Results - Cash movement FY16 Cash movement FY16 For personal use only +34 +235 A$ Millions -142 -30 -16 -21 137 77 Cash Leonora Ops Simberi Ops Debt repayments Interest Exploration Corporate (inc. Cash June 2015 payments capex) + other June 2016 31 2016 Denver Gold Forum
Slide 33: Financial Results: Segment profit & cash flow
Financial Results Segment profit & cash flow For personal use only Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 128 124 101 111 97 86 53 58 21 11 13 15 17 17 -14 -15 FY15 FY15 FY16 FY16 FY15 FY15 FY16 FY16 1H 2H 1H 2H 1H 2H 1H 2H A$M A$M Leonora Simberi Leonora
Slide 34: Debt and hedging at June 2016 and today
Debt and hedging at 30 June 2016 and today For personal use only US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 30 Jun 2016 ˃ Additional US$40 million repurchased 20 July 2016, balance at 23 Aug 2016 is US$128 million, US$122 million repurchased since 1 June 20
Slide 35: Growth: Three moving parts of capital management
Growth Three moving parts of capital management ˃ Anticipate strong free cash flows For personal use only Decide: Q2 Dec 2016 Gwalia Prepare: Q3 Mar 2017 of FY16 to continue in FY17 Ventilation Start: Q1 Sep 2017 Upgrade Term: 24-30 mths ˃ Debt reduction still a focus in short term Simberi Decide
Slide 36: Conceptual illustration of Gwalia ventilation solution
Conceptual illustration of Gwalia ventilation solution Twin vent shafts For personal use only New primary New bulk air cooler • Increases both exhaust fans fresh air intake and Existing bulk air cooler exhaust capacity Existing primary • Reduces diameter of exhaust fans Multiple lifts shafts and low
Slide 37: Gwalia Mineral Resource Classification & Reserves
Gwalia Mineral Resource Classification & Reserves June 2015 and June 2016 Measured For personal use only Indicated Inferred Gwalia Mineral Resource June 2015 Gwalia Mineral Resource June 2016 200m depth extension of Resource model Gwalia Mineral Resource kt g/t koz 2016 17,924 7.0 3,896 2015 12,929
Slide 38: Exploration FY17 Guidance
Exploration FY17 Guidance For personal use only Exploration: Guidance A$18 to A$22 million A$10- A$12 million, Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia Seismic A$8- A$10 million: ˃ WA (30%) Pinjin – complete drilling ˃ PNG (70%) ˃ Simberi Oxides – near mine ˃ Tatau Copper-
Slide 39: Gwalia Deeps Exploration FY17
Gwalia Deeps Exploration FY17 Gwalia Exploration For personal use only FY171 > 2000- 2200 mbs > Northern extension > ‘Greater Gwalia’ seismic campaign - Leonora province FY162 > 1800 – 2000 mbs > Southern Extension > Discovery of northern extension 1. Refer ASX announcements 23 August 2016 titled ‘O
Slide 40: Simberi: Reserve and Resource changes
Simberi: Reserve and Resource changes Resources - Oxide Resources - Sulphide For personal use only +115 -17 -98 -134 -328 koz 1,413 koz 3,607 3,607 951 June Mining depletion Transitional ore June June Transitional Mining Resource June 2015 reclass. Oxide 2016 2015 ore reclass. depletion model 2016 O
Slide 41: Gwalia - variances to Ore Reserve Grade FY15 to FY16
Gwalia - variances to Ore Reserve Grade FY15 to FY16 1 For personal use only 0.1 0.8 0.2 0.3 0.0 0.0 0.1 0.0 g/t Au 9.4 8.3 Ore Reserve FY16 Design Design Design Modifying Grade Cut-off grade Depth Ore Reserve Grade June production changes changes changes factors softening Extension Grade June 2015
Slide 42: Major variances to Ore Reserves FY15 to FY16
Major variances to Ore Reserves FY15 to FY16 1 For personal use only +193 +297 -110 -96 -277 koz 4,003 4,011 June Gwalia mining Gwalia depth Gwalia design Simberi mining Mining cost June 2015 extension changes increase 2016 1. Refer ASX announcement 23 August 2016 titled ‘Ore Reserves and Mineral Re
Slide 43: Major variances to Mineral Resources FY15 to FY16
Major variances to Mineral Resources FY15 to FY161 For personal use only +938 -151 -104 -213 -98 -170 -346 koz 9,223 9,079 June Kailis KoTH Gwalia Gwalia Deeps Simberi Simberi material Revised June 2015 Divestment Divestment Depletion & Drilling Depletion type changes geological 2016 Sterilsation mo
Slide 44: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total For personal use only Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194
Slide 45: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 Project Measured Indicated Inferred Total For personal use only Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574
Slide 46: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Australia Not analysed, Institutional 30% 11% 83% UK 16% Non Institutional, 6% USA 35% Other 8% Not analysed 11% Analysis and geographic spread of shareholders as at 15 Aug 2016 45 / 2016 Denver Gold Forum
Slide 47: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Van Eck 12.7% Argonaut James Wilson M&G Investment Mgt 8.4% Canaccord Reg Spencer Hunter Hall 6.8% Credit Suisse Mike Slifirski Vinva 5.2% Deutsche Bank Matt Hocking Macquarie Be
Slide 48: Board of Directors
Board of Directors For personal use only Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chainman July 2015 Mr Vassie is a mining engineer with over 30 Mr Netscher is an experienced international years internati
Slide 49: Executive Leadership Team
Executive Leadership Team Bob Vassie For personal use only Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 1
Slide 50: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results for Simberi and Gold Ridge is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr M
Slide 51: 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
Slide 52: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Garth Campbell-Cowan Company Secretary Chief Financial Officer 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), Bo