St. Barbara Ltd. · ASX:SBM
St. Barbara — BMO Capital Markets 26th Global Metals & Mining Conference 2017
50 slides from St. Barbara's conference presentation, Feb 27, 2017
Slide 1: Presentation to analysts and investors attending BMO 26th Global Metals & Mining Conference
ASX Release / 27 February 2017 For personal use only Presentation to analysts and investors attending BMO Capital Markets 26th Global Metals & Mining Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending BMO Capital Markets 26th Global Me
Slide 2: St Barbara – Australia / Pacific Gold Producer
BOB VASSIE, MANAGING DIRECTOR & CEO For personal use only 27 February – 1 March 2017 BMO 26th Global Metals and Mining Conference St Barbara – Australia / Pacific Gold Producer
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$680/oz > Market Cap2 US$1,063 M ˃ FY17F3 360 koz @ AISC US$759/oz > ADR OTC code STBMY > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resour
Slide 5: Contents
Contents ˃ Safety For personal use only ˃ Financial & Operational Results (since BMO 2016) ˃ Growth – Development, Exploration & M&A ˃ Conclusion ˃ Appendices Sky over Gwalia processing plant, April 2016 DDH1 Drilling at Gwalia, November 2016 4/ BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017
Slide 6: Continued safety success
Continued safety success Total Recordable Injury Frequency Rate1 Safety For personal use only 9.0 > Record FY16 TRIFR of 2.1 > Record safety performance of 6.0 1.8 TRIFR1 in H1 FY17 5.0 4.1 > Overall winners for the second year running in Western Australia 2.1 1.8 Underground Mine Emergency Response
Slide 7: Highlights
For personal use only Highlights 6/ BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017
Slide 8: FY16 Highlights
FY16 Highlights For personal use only > Record Safety > Balance sheet repaired > Record Production > Resources & Reserves > Record Profit growth at Gwalia > Best performing stock > Record Cash Flow in ASX 2001 BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017 1. www.mywealth.commbank.com.au, 1 J
Slide 9: First half FY17 Highlights: Record cash flow
For personal use only First half FY17 Highlights: Record cash flow 105 > Record cash flow & 88 88 Underlying NPAT1 68 63 > Net-cash1 from Nov 61 55 49 2016, debt free2 43 from March 2017 > Positioned for growth 1H FY16 2H FY16 1H FY17 NPAT NPAT Cash flow (underlying) (statutory) from op'ns US$M 1. N
Slide 10: Debt free from March 2017
For personal use only Debt free1 from March 2017 Net Debt / Net Cash1 US$M US$M ˃ US$325 million debt 100 repaid June 2015 to 50 US$23 million net cash March 2017 0 -11 ˃ 376 koz gold produced at -50 -68 AISC US$691/oz in CY16 -103 > Debt free1 once US Notes -100 -145 -150 -170 repaid in full on 15
Slide 11: Consolidated Gold Production
Consolidated Gold Production For personal use only AISC (Consolidated) (US$/oz) 1,037 1H FY17 Production Highlights Consolidated 687 657 700 682 > 192 koz @ AISC1 US$682/oz 211 203 > 376 koz CY16 192 167 50 58 184 Gwalia 52 53 30 27 9 > 138 koz record @ US$583/oz 23 > 269 koz CY16 134 136 131 138 11
Slide 12: Gwalia | Record production driven by productivity gains
Gwalia | Record production driven by productivity gains 8% year on year improvement, Mined Grade 9.3 3 key innovations (g/t Au) 8.8 8.9 For personal use only 8.2 8.4 6.9 Reserve Grade 6.3 8.3 g/t Au June 2016 5.7 Ore passes Allows bogger to work constantly, independent of ore trucks, 267 265 removes
Slide 13: Simberi | FY14 to FY16 – improvements in all metrics
Simberi | FY14 to FY16 – improvements in all metrics For personal use only All-in sustaining cost (US$/oz) 2,111 Guidance 1,218 25 mid-point 941 1,064 Mining 3,315 Consecutive years of >50% improvement 2,670 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Milling (kt) 110 100 1,714 Guida
Slide 14: Growth
For personal use only Growth 13 / BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017
Slide 15: Development: Gwalia Extension Project Ventilation Upgrade
Development Gwalia Extension Project | Ventilation Upgrade For personal use only 14 / BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017 Conceptual illustration only, studies underway will determine final design
Slide 16: Organic Growth | Gwalia Extension Project
Organic Growth | Gwalia Extension Project > Feasibility studies and A$6 million For personal use only early works approved > Investment decision due March 2017 Gwalia Extension Project Capex US$65 to $72 million in total Construction period 2 to 2.5 years Works Objective Ventilation shafts, • Suppor
Slide 17: Gwalia Extension Project | Paste Aggregate Fill
Gwalia Extension Project | Paste Aggregate Fill For personal use only Paste Aggregate Fill (PAF): Operational benefits + Mix paste with waste synergies with rest of project crushed underground for stope filling > Increases truck productivity, only ore hauled to surface > Allows faster stope filling,
Slide 18: Exploration | FY17 Guidance
Exploration | FY17 Guidance For personal use only Guidance US$14 to $17 million ˃ US$8-$9 million Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia seismic ˃ US$6-$8 million – 30% Pinjin WA, 70% PNG ˃ Pinjin – complete drilling ˃ Tatau copper- gold ˃ Tatau oxides/sulphides 17 / BMO
Slide 19: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program For personal use only FY 17 drilling target 2,000 to 2,200 mbs > In FY16, added R&R below 1,800 mbs > In FY17, looking to add further R&R below 2,000 mbs Northern Extension target area > Gwalia lateral extensions remain open ‘R&R’ = Mineral Resources and Or
Slide 20: Gwalia Deeps Exploration | Northern Extension
Gwalia Deeps Exploration | Northern Extension For personal use only For full explanation and results refer to ASX release 19 Oct 2016 ‘Quarterly Report September 2016’ and ‘2016 19 / BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017 Annual Mineral Resources and Ore Reserves Report at 30 June 201
Slide 21: 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 22: 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 23: 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 ˃ Complete: 2D Gwalia program via down- hole sensors. Q3 commencing on Greater Gwalia 3D program For full details Ref
Slide 24: Exploration | Pinjin WA
Exploration | Pinjin WA For personal use only Pinjin, WA > The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 > An initial 25,000m aircore drill campaign in 2016 returned encouraging results > A 17,000m aircore drill program will be compl
Slide 25: Exploration | Pinjin, WA
Exploration | Pinjin, WA > Pinjin WA - Q2 FY17 RC drilling results confirmed bedrock For personal use only anomalies > Geochemical and geophysical analysis used in early 2017 to successfully identify additional targets Enlargement A Enlargement B For full explanation and results refer to ASX release
Slide 26: Exploration | Tabar Island Group PNG
Exploration | Tabar Island Group PNG Tatau Island, PNG For personal use only > Focus of Greenfields exploration in PNG > Pure-gold exploration focused on improving economics of future investment in Simberi > Zones of high grade trenching results with follow up drilling underway > Farm-in and option
Slide 27: Simberi Sulphide | potential long life mine extension
Simberi Sulphide | potential long life mine extension For personal use only 1.3 Moz Sulphide Reserve @ 3.0 g/t Au, 3.6 Moz Sulphide Resource @ 1.7 g/t Au Simberi Sulphide PFS Capex US$100 million > Focused exploration for oxide and sulphide Production 130,000 ounces over 8 years ore underway on near
Slide 28: Positioned for growth
Positioned for growth Business performing well For personal use only > Production, costs, safety Strong balance sheet > Debt free1, accumulating cash Pursuing organic growth options > Exploration – Greater Gwalia, Pinjin, Back Creek, Simberi & Tabar Islands > Option and farm in with Newcrest > Gwali
Slide 29: St Barbara vs Comparators FCF Yield & EV/Reserves
St Barbara vs Comparators FCF Yield & EV/Reserves EV/Reserve oz (US$/oz) For personal use only 0 Resolute New Gold 200 Iam Gold Acacia St Barbara 400 Oceana Gold Saracen B2 Gold Evolution 600 Regis 800 Bubble size = estimated Northern Star production rate (koz p.a.) 1,000 0% 5% 10% 15% 20% 25% 30% F
Slide 30: St Barbara vs Comparators AISC Margin & EV/Production
St Barbara vs Comparators AISC Margin & EV/Production EV/Production (US$/oz) For personal use only 0 1,000 2,000 St Barbara Resolute 3,000 Regis Northern Star 4,000 Evolution 5,000 Oceana Gold Bubble size = estimated 6,000 production rate New Gold (koz p.a.) B2 Gold 7,000 350 400 450 500 550 600 650
Slide 31: Exciting future off a sustainable, profitable base
Exciting future off a sustainable, profitable base > Record and reliable cash generation For personal use only > US$105 million this half, building on US$88 and US$88 million in prior halves > Company will be debt free @ 15 March 20171 > Dividends under review, taking into account performance and co
Slide 32: Appendices
For personal use only Appendices Schoolhouse, Gwalia village, by Stuart Smith 31 / BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017
Slide 33: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY16 FY16 FY17 FY17 FY173 For personal use only Production Gwalia oz 65,098 267,166 67,118 70,925 255 to 265 koz (previously 245 to 265 koz1) King of the Hills4 oz - 9,112 - - - Simber
Slide 34: St Barbara share price vs US$ gold and XGD
St Barbara share price vs US$ gold and XGD - % change 700% For personal use only Gwalia A600% rich history with a stock Top performing bright future in the ASX 200 in FY20162 Joined ASX 200 500% Top performing stock in the 400% ASX 300 in CY20151 Joined ASX 300 SBM 379% 300% 200% 100% XGD 94% A$ gol
Slide 35: Gender Diversity
Gender Diversity For personal use only > The overall pay equity gap at St Barbara reduced from 43% in 2007 to 16% in 2016 (compared to 23% nationally and 16% for the mining industry1) > Nil gender pay gap in ‘like-for-like’ roles2 > Bob Vassie, MD & CEO, appointed in 2014 as one of 32 CEO Ambassador
Slide 36: 1H FY17 Financial Results Summary
1H FY17 Financial Results Summary1 1H 2H 1H For personal use only FY17 FY16 FY16 Gold price Average gold price realised A$/oz 1,687 1,664 1,564 All-In Sustaining Cost2 A$/oz 905 954 922 Result ˃ Statutory profit after tax A$M 83 92 77 ˃ Underlying net profit/(loss) after tax 2 A$M 81 67 60 ˃ EBITDA
Slide 37: FY16 Financial Summary
FY16 Financial Summary1 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 286
Slide 38: Segment results
Segment results > EBITDA margin at Gwalia: 66% For personal use only Underlying profit from Cash contribution from operations1 operations1, 2 111 113 106 12 100 95 19 16 84 84 100 11 13 94 90 88 15 10 65 81 74 69 12 53 FY15 FY16 FY16 FY17 FY15 FY16 FY16 FY17 2H 1H 2H 1H 2H 1H 2H 1H Leonora Simberi T
Slide 39: Financial Results | Cash movement 1H FY17 (A$)
Financial Results | Cash movement 1H FY17 (A$) Cash movement 1H FY17 For personal use only 25 -173 132 137 -15 -9 -10 87 Cash Jun 2016 Leonora Ops Simberi Ops Debt repayments Interest Exploration Corporate (incl Cash Dec 2016 payments [1] capex) + other A$ Million 38 BMO Metals & Mining Conference |
Slide 40: Gwalia | Long, profitable, stable, life ahead
Gwalia | Long, profitable, stable, life ahead Western Australia: Gwalia: For personal use only #1 mining jurisdiction1 benign geotechnical environment SBM Cash contribution % in 1H FY172 PNG 17% WA 83% Fraser Institute Annual Survey or Mining Companies 2015 Benign geotechnical environment, proac
Slide 41: Gwalia | Long, profitable, stable, life ahead
Gwalia | Long, profitable, stable, life ahead LOM to 2024 at 1940 mbs1 Successful and prospective exploration For personal use only Investing to extend LOM program2 Prod. (koz) Bubble size = Implied LOM (years) 350 Gwalia - SBM 300 Duketon South - RRL 250 Jundee - NST 200 Cowal - EVN Carosue D
Slide 42: Gwalia | not out!
Gwalia | 120 not out! For personal use only > From surface outcrop (first mined 1896) to current workings is approx. 3.5 km ‘straight line’ along shear > Herbert Hoover was the initial Gwalia mine manager (1897-1898), later a US President (1929-1933), noted angle of deposit – took mining underground
Slide 43: 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
Slide 44: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 For personal use only Proved Probable Total Project Tonnes Au koz Tonnes Au koz Tonnes Au koz (k) g/t (k) g/t (k) 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 For personal use only Measured Indicated Inferred Total Project 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 (WA) 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 Tower Hill (WA) - - - 4,604 3.
Slide 46: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Gwalia A rich history with a bright future Institutional holdings by location (=84%) Not analysed Institutional 10% 84% USA 36% Non Institutional 6% Australia 25% UK 13% Other 10% Analysis and geographic spread of shar
Slide 47: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Research Coverage Van Eck Associates 17% Argonaut James Wilson M&G Investment Mgt 7% Canaccord Reg Spencer Vinva Investment Mgt 5% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocking Institutional Sh
Slide 48: 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 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 49: 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 50: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 49 / BMO Metals & Mining Conference | 27 Feb to 1 Mar 2017
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