St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2010
46 slides from St. Barbara's conference presentation, Sep 20, 2010
Slide 1: Presentation by the Managing Director and CEO to the Denver Gold Forum
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 www.stbarbara.com.au For personal use only Presentation by the Managing Director and CEO to the Denver Gold Forum, Colorado
Slide 2: A Company Transformed
For personal use only A Company Transformed Tim Lehany Managing Director & CEO Denver Gold Conference, Denver 20 September, 2010 A Company Transformed – 20 September 2010 1
Slide 3: Forward looking statements
Forward looking statements 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. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation i
Slide 4: What we'll cover today
What we’ll cover today For personal use only 1. INTRODUCING ST BARBARA 2. OUR BUSINESS 3. INVESTING IN DISCOVERY 4. VALUE 5. INVESTMENT PROPOSITION A Company Transformed – 20 September 2010 3
Slide 5: Introducing St Barbara
For personal use only Introducing St Barbara A Company Transformed – 20 September 2010 4
Slide 6: Gold focused, capable and growing
Gold focused, capable and growing For personal use only Stock code: SBM Australian based producer 231Koz1 ASX market capitalisation: US$797M2 Ordinary shares: 1,953M Significant holders M&G Group 17.0% Franklin Templeton 6.0% Hunter Hall 5.1% Producing operations: 2 Exploration land bank: 6,000+ kms
Slide 7: Clear vision steering the course to success
Clear vision steering the course to success For personal use only 4. 5. 6. 1. 2. 3. 1. Robert K Rae 2. Timothy J Lehany 3. S J Colin Wise B.Com (Hons), FAICD B.E., MBA, MAusIMM LL.B, FAICD, FAusIMM Non Executive Director Managing Director & Chief Executive Officer Chairman – Non Executive 4. Phillip
Slide 8: Depth and diversity of skills delivering results
Depth and diversity of skills delivering results For personal use only Ross Kennedy David Rose Tim Lehany Garth Campbell-Cowan Phil Uttley Executive General Manager Chief Operating Officer Managing Director Chief Financial Officer Executive General Corporate Services & & Chief Executive Officer Mana
Slide 9: Market guidance for FY10 delivered
Market guidance for FY10 delivered For personal use only GUIDANCE Gold production (ozs) 231,018 Guidance: 205,000-240,000 205,000 240,000 Actual: 231,018 Cost per ounce (US$/oz) 703 Guidance: 663-730 663 730 Actual: 703 Leonora 611 Guidance: 561-623 561 623 Actual: 611 Southern Cross 786 Guidance: 7
Slide 10: Growing gold production since 2005
Growing gold production since 2005 For personal use only Ounces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2005 2006 2007 2008 2009 2010 Guidance Guidance 2011 2012 A Company Transformed – 20 September 2010 9
Slide 11: Building our reserves and extending mine life
Building our reserves and extending mine life For personal use only Contained Ounces 3,500 2,906 3,000 2,500 2,000 1,500 1,000 500 260 0 Ore Reserves Ore Reserves 2006 2007 2008 2009 2010 2005 2010 At 30 June 2010 A Company Transformed – 20 September 2010 10
Slide 12: Financial transformation opens up growth options
Financial transformation opens up growth options For personal use only US$M US$M Net Assets US$M Debt profile 400 100 300 80 $91M 200 60 40 100 20 0 0 $14M 2008 2009 2010 2008 2009 2010 Strong balance sheet and low debt provide funding flexibility Note: St Barbara is not subject to the recently prop
Slide 13: Our Business
For personal use only Our Business A Company Transformed – 20 September 2010 12
Slide 14: Safe production - Start Safe, Stay Safe
Safe production - Start Safe, Stay Safe For personal use only Total Recordable Injury Frequency Rate 20 15 14.8 10 11.1 5 0 2009 2010 Improving safety performance A Company Transformed – 20 September 2010 13
Slide 15: Leveraging growth from Leonora
Leveraging growth from Leonora For personal use only Mine life: 9+ years Ore Reserves: 10.2Mt @7.3g/t Au for 2.4Moz Mineral Resources: 27.7Mt @ 6.1g/t Au for 5.4Moz Cash cost: $US610/oz1 Highlights for Fiscal Year 2010 Gold production • Ore production from Gwalia mine continues to grow 2009 83Koz •
Slide 16: The new Gwalia mine – Our cornerstone project
The new Gwalia mine – Our cornerstone project For personal use only A Company Transformed – 20 September 2010 15
Slide 17: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch For personal use only New diagram under development A Company Transformed – 20 September 2010 16
Slide 18: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch For personal use only A Company Transformed – 20 September 2010 17
Slide 19: Gwalia – Accessing the high grade South West Branch
Gwalia – Accessing the high grade South West Branch For personal use only A Company Transformed – 20 September 2010 18
Slide 20: Gwalia – Driving higher returns
Gwalia – Driving higher returns For personal use only Leonora Gold Production Gwalia Cash Operating Costs Gwalia Open Pit King of the Hills 650 630 300,000 610 250,000 590 US$ per ounce 570 200,000 550 Ounces 150,000 530 100,000 510 490 50,000 470 0 450 FY09 Actual FY10 Actual FY11 FY12 FY13 FY09 Ac
Slide 21: King of the Hills - Leveraging Gwalia capital infrastructure
King of the Hills- Leveraging Gwalia capital infrastructure For personal use only Mine life: New pic required 5+ years Ore Reserves: 1.7Mt@4.3g/t Au for230Koz Mineral Resources: 2.5Mt@5.3g/t Au for 418Koz Average total cost: ~US$907/oz Highlights and Opportunities Gold production forecast • Producti
Slide 22: Southern Cross Operations – Generating cash flow
Southern Cross Operations – Generating cash flow For personal use only Mine life: 22+ months1 Ore Reserves: 5.4Mt @2.8g/t Au for 500koz Mineral Resources: 19.9Mt @ 3.5g/t Au for 2.3Moz Cash cost: US$786/oz2 Highlights and Opportunities Gold production • Positive cash flows for FY11&12 at current gol
Slide 23: Investing in Discovery
For personal use only Investing in Discovery A Company Transformed – 20 September 2010 22
Slide 24: Growth through exploration success
Growth through exploration success For personal use only A new team, a new exploration philosophy, a prospective land bank and available funds • Budget of US$13 to US$14M pa for next 3 years • Aim for 2010-11 is to test a series of quality targets • Active acquisition search for advanced exploration
Slide 25: Pursuing organic growth through discovery
Pursuing organic growth through discovery For personal use only A Company Transformed – 20 September 2010 24
Slide 26: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Thunderbox Corridor (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (
Slide 27: Filling the project pipeline – Leonora
Filling the project pipeline – Leonora For personal use only Leonora (Western Australia) Drilling in FY11 is planned to test the following targets: • King of the Hills Northern Extension (3600m) • Thunderbox Corridor (4000m) • Jasper Flat geochemical drilling (2400m) • Yerilla geochemical drilling (
Slide 28: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (Western Series) (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead A Company Transformed – 20 Septemb
Slide 29: Filling the project pipeline – Southern Cross
Filling the project pipeline – Southern Cross For personal use only Southern Cross (Western Australia) Drilling is planned in FY11 to test the following targets: • Copperhead (Western Series) (2500m) • Fraser’s South (3100m) • Corinthian (900m) Priority: Copperhead A Company Transformed – 20 Septemb
Slide 30: Filling the project pipeline – East Lachlan
Filling the project pipeline – East Lachlan For personal use only East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Priority: Te
Slide 31: Filling the pipeline – East Lachlan (New South Wales)
Filling the pipeline – East Lachlan (New South Wales) For personal use only East Lachlan (New South Wales) Plan to drill test in FY11 the highest ranked targets (4000m), subject to completing: • Detailed gravity (and possibly electrical) surveys • Economic modelling of Cu-Au target style at depth Pr
Slide 32: Value
For personal use only Value A Company Transformed – 20 September 2010 31
Slide 33: Achieving value and scale
Achieving value and scale For personal use only Our strategic objective is to increase production to the rate of over 500,000 ounces of gold per annum by 2014 to drive superior TSR performance by: • Lowering costs • Driving margins • Achieving economies of scale A Company Transformed – 20 September
Slide 34: How we will execute our strategy
How we will execute our strategy For personal use only Target 500Koz Koz 500 Per Annum LOWER CASH OPERATING COSTS 400 100koz+ PROSPECTIVE TO 200koz PER ANNUM M&A Activity INVESTMENT CRITERIA Discovery MINIMUM IRR OF 15% 300 TARGET CONFIDENCE OF DEVELOPMENT 500Koz 231Koz PER ANNUM CONSENT 200 231Koz
Slide 35: Investment Proposition
For personal use only Investment Proposition A Company Transformed – 20 September 2010 34
Slide 36: St Barbara has quality ore reserves – great value
St Barbara has quality ore reserves – great value For personal use only Koz g/t Au US$ ozs USD Reserve and Reserve Grade Market Capitalisation per Reserve Ounce as at 30 June 2010 A Company Transformed – 20 September 2010 35
Slide 37: Strong, capable and growing
Strong, capable and growing For personal use only STRONG • Gwalia to deliver organic growth and lower costs • Financial strength provides flexibility for growth CAPABLE • Experienced Board & Executive team • Operational capability to deliver to guidance GROWING • Exploration drilling of defined targ
Slide 38: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement 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 t
Slide 39: Appendices
For personal use only Appendices A Company Transformed – 20 September 2010 38
Slide 40: Ore Reserves Statement as at June 2010
Ore Reserves Statement as at 30 June 2010 Notes For personal use only Category Proved Probable Total 1. The Ore Reserve estimates used a gold price of US$850/oz. Project Tonnes Gold Gold Tonnes Gold Gold Tonnes Gold Gold 2. All data is rounded to two significant figures. Region (kt) grade (k oz) (kt
Slide 41: Mineral Resources Statement as at June 2010
Mineral Resources Statement as at 30 June 2010 For personal use only Category: Measured Indicated Inferred Total Notes Identified Mineral Resources have been estimated under the direction of Mr Region Contained Contained Contained Gold Contained Ben Bartlett (MAusIMM, MAIG) who qualifies as the Comp
Slide 42: Share consolidation details
Share consolidation details For personal use only The Company is planning three capital management initiatives: 1. A share consolidation of six existing shares for one new share, subject to shareholder approval; 2. Establishing a voluntary share sale facility and top-up facility for small shareholde
Slide 43: Board of Directors
Board of Directors For personal use only S J Colin Wise LL.B, FAICD, FAusIMM Chairman – Non Timothy J Lehany B.E., MBA, MAusIMM Managing Director Executive and Chief Executive Officer Mr Wise is an experienced corporate lawyer, consultant and Mr Lehany is a mining engineer with extensive operating c
Slide 44: Executive Management
Executive Management For personal use only Managing Director and Chief Executive Officer Executive General Manager Corporate Services/Company Secretary Tim is a mining engineer with extensive operating experience over the past twenty years with number of Ross has more than 24 years of experience in
Slide 45: Gwalia – lowering unit costs and increasing margins
Gwalia – lowering unit costs and increasing margins For personal use only 250 700 561-605 190-210 190-210 600 200 445-489 472-516 145-160 500 150 400 300 100 200 50 100 0 0 FY11 FY12 FY13 FY11 FY12 FY13 Production US$ Cash costs A Company Transformed – 20 September 2010 44
Slide 46: Forward Guidance FY11-FY13
Forward Guidance FY11- 13 For personal use only GUIDANCE FY11 FY12 FY13 Gold production (koz) -Gwalia 145 - 160 190 - 210 190 - 210 - SXO 110 - 125 65 - 80 - - King of the Hills1 10 50 - 60 50 - 60 - TOTAL 265 - 295 305 - 350 240 - 270 Cash operating cost (US$/oz) - Gwalia 561 - 605 445 - 490 472 -