36 slides from St. Barbara's corporate update, Mar 11, 2011
Slide 1: Presentation to Investors at Leonora Operations
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 to Investors at Leonora Operations Attached is a presentation to in
Slide 2: Leonora Operations Investor Site Tour
For personal use only LEONORA OPERATIONS INVESTOR SITE TOUR Leonora Operations Friday 11 March, 2011 Garth Campbell-Cowan, CFO David Rose, COO Philip Hopkins, GM Leonora Operations 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: 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$726M 27.7Mt @ 6.1g/t Au for 5.4Moz Producing operations 2
Slide 5: 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 6: 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 7: 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% NTA p per share $ $1.24 3.1% 13 Dec 10 Dec 10 J 10 Jun D 10 Dec A$’M % VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 6
Slide 8: 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 7
Slide 9: 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 10: Rain disruption at Gwalia
Rain disruption at Gwalia For personal use only Exceptionally heavy rain 171 mm of rain fell in the Leonora region in the third and fourth weeks of February Total rainfall for February was 191mm This contrasts with the long term median for February of 13 mm Void intercepted decline Rain appe
Slide 11: Growing gold production
Growing gold production For personal use only 400,000 330-370Koz 350,000 300,000 250-270Koz1 250,000 231Koz 200,000 150,000 100,000 83Koz 50,000 0 2005 2006 2007 2008 2009 2010 2011 Guidance 2012 Guidance 1 = FY11 updated guidance incorporates the reduction in Gwalia gold production caused by the ex
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 - 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* 500-550 140-145 109 83 2009 2010 2011 Guidance 2012 Guidance 2009 2010 2011 Guidance 2012 Guidance Koz A$ * Unit cash
Slide 14: Leonora Operations - two mines, quality facilities
Leonora Operations - two mines, quality facilities For personal use only Personnel O it Onsite 139 SBM employees 218 Barminco 42 Byrnecut 102 Other (drilling, catering, maintenance) 501 total Fit for Purpose Facilities Village expansion Phase II underway King of the Hills infrastructur
Slide 15: Scaleable infrastructure designed for Life of Mine
Scaleable infrastructure designed for Life of Mine For personal use only Leonora Operations – Surface S f facilities f iliti Ventilation Fans 2 x 1350kW – Final D t 450 m3/sec Fi l Duty / @ 4kPa Refrigeration 4 MWr – Upgradable to 8 MWr (2011/12) Paste fill plant 100 m3/hr (current rate 130 m3
Slide 16: Leonora Processing plant
Leonora Processing plant 10+ year life For personal use only 1.2 mtpa processing plant +95%% recovery and +98%% availability Operating above design recovery level Hybrid Carbon-in-Leach circuit Readily expandable to ~1.7mtpa 1.7mtpa VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 15
Slide 17: Leonora Operations - two mines
Leonora Operations - two mines For personal use only Gwalia Gwalia continues to build gold production to a sustainable level of 200,000 oz pa Targeting g g first quartile cash cost position during FY12 Increasing grades drives lower costs Gwalia mineralization extended p to 1900mbs at depth
Slide 18: Gwalia - rich in history, rich in gold
Gwalia - rich in history, rich in gold For personal use only VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 17
Slide 19: Gwalia - the cornerstone asset
Gwalia - the cornerstone asset For personal use only VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 18
Slide 20: Gwalia - grade and thickness increases with depth
Gwalia - grade and thickness increases with depth For personal use only oz/vm RESERVES - Ounces per Vertical Metre g/t Au 10,000 20.0 9,000 18.0 8,000 16.0 7,000 14.0 6,000 12.0 5,000 10.0 4 000 4,000 80 8.0 3,000 6.0 2,000 4.0 1 000 1,000 20 2.0 0 0.0 1040 1060 1080 1100 1120 1140 1160 1180 1200 12
Slide 21: Gwalia - accessing the high grade South West Branch
Gwalia - accessing the high grade South West Branch For personal use only VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 20
Slide 22: Gwalia - mining improvements
Gwalia - mining improvements For personal use only Stoping Stoping p g Haulage • Opening up multiple • Underground equipment fleet independent mining areas upgrade complete – four ou a areas eas now o aavailable a ab e • In p pit RoM o sstockpile oc p e co commissioned ss o ed • Stoping parameters i
Slide 23: Gwalia - tonnes and grade improvements
Gwalia - tonnes and grade improvements For personal use only 250,000 55% Increase in Ore Tonnes 730,000 tpa rate uarter 200,000 Tonnes milled per qu 470,000 tpa rate 150,000 100,000 50 000 50,000 - Q1-FY09 Q2-FY09 Q3-FY09 Q4-FY09 Q1-FY10 Q2-FY10 Q3-FY10 Q4-FY10 Q1-FY11 Q2-FY11 12.00 10.00 Early sign
Slide 24: Maximising value at Gwalia
Maximising value at Gwalia For personal use only Construction Major j projects projects • UG workshop, refuelling • Regional & UG resources station, explosive magazine, • Material handling study pumping station • Process plant expansion study • Village expansion • Exploring for depth extensions • Si
Slide 25: Gwalia - extensions at depth confirmed
Gwalia - extensions at depth confirmed For personal use only VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 24
Slide 26: Gwalia - stress gradient supports deep mining
Gwalia - stress gradient supports deep mining For personal use only Gwalia Rock Strength VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 25
Slide 27: King of the Hills - on schedule
King of the Hills - on schedule For personal use only FIRST FIRING – 4:00pm, 9 October 2010 VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 26
Slide 28: King of the Hills - utilising plant capacity
King of the Hills - utilising plant capacity For personal use only King of the Hills • Production commencing in May 2011 • Gold production of 55-60Koz per annum • +5 years life of mine • Available Gwalia plant capacity fully utilised • A$ price risk mitigated through collar structure Mine life: 5+ y
Slide 29: King of the Hills - mine layout
King of the Hills For personal use only - mine layout Western Flank Western FAR – Emergency Flank RAR Egress E t Eastern Flank Fl k FAR – Emergency Egress Eastern Flank RAR VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 28
Slide 30: King of the Hills - development on schedule
King of the Hills - development on schedule For personal use only Lateral Development p Metres DMS Actual Development 1,000 1,100 1,200 Metres February 2011 VALUE FOCUSED GOLD COMPANY MARCH 2011 SLIDE 29
Slide 31: 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 30
Slide 32: 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 Marvel Loch Extension Gwalia Deeps Extension Tower Hill King of the Hills North Copperhead Frasers South
Slide 33: 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$/oz) 15 1.5 P/NAV(1) 12000 1 9000 0.74 6000 0.5 2 400 2,400 3000 0 0 Source: Company filings, IRESS equity research. Mar
Slide 34: Long life, high cash margins
Long life, high cash margins For personal use only Cash Margin (US$/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 500 400 2.0 4.0 6.0 8.0 10.0 12.0 Reserve Life (years) Note
Slide 35: 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 36: 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.