48 slides from St. Barbara's earnings presentation, Jul 26, 2018
Slide 1: Presentation on Q4 June FY18 Quarterly Report and audio webcast
ASX Release / 26 July 2018 For personal use only Presentation on Q4 June FY18 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q4 June FY18 Quarterly Report at 11:00 am Australian Eastern Standard Time (UTC + 10 hours) on
Slide 2: Q4 June FY18 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 26 July 2018 ASX:SBM For personal use only Q4 June FY18 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer 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 in relation to, s
Slide 4: Contents
Contents For personal use only • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices 3 / Q4 June FY18 Quarterly Presentation Photo: Simberi waste dump, February 2018, photo by George Danga Jnr.
Slide 5: Highlights Q4 June FY18
Highlights Q4 June FY18 • Record annual production 403 koz (FY17: 381 koz) at For personal use only record low AISC1 A$891/oz (FY17: A$907/oz) • Record quarter production of 119 koz (Q3: 86 koz) at record low AISC A$812/oz (Q3: A$982/oz) • Record annual production at both operations • Debt free, A$3
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 For personal use only 5.0 4.1 2.6 2.4 2.1 2.1 1.2 1.2 FY 14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 FY18 FY18 FY18 FY18 • Decrease in TRIFR from 2.6 at the end of Q3 Mar FY18 to 2.1 at the end of Q4 June FY18. • Plans and strategies implemented to further r
Slide 7: Consolidated Q4 FY18 quarter
Consolidated Q4 FY18 quarter For personal use only AISC 982 (A$/oz) 959 910 • Consolidated production of 889 812 119 koz (Q3 FY18: 86 koz) • Gwalia 85 koz (Q3: 57 koz) Production 119 • Simberi 35 koz (Q3: 29 koz) (koz) 98 100 94 35 86 • Consolidated AISC1 of A$812/oz 32 34 37 29 (Q3: A$982/oz) • Gwa
Slide 8: Consolidated FY18 results + FY19 guidance
Consolidated FY18 results + FY19 guidance For personal use only AISC (A$/oz) 1,065 Record production of 403 koz 932 907 891 • Exceeded FY18 increased guidance of 375 to 392 koz Production AISC record low A$891/oz (koz) 381 403 • Outperformed FY18 guidance of 377 363 A$920 to A$970/oz 110 116 135 110
Slide 9: Gwalia Q4 FY18 results
Gwalia Q4 FY18 results AISC (A$/oz) 872 905 859 For personal use only 816 FY18 average A$802/oz 679 Q4 Jun FY18 production Mined grade 15.0 • 84,537 oz (Q3 FY18: 56,773 oz) (g/t Au) 13.4 10.7 11.2 • AISC1 A$679/oz (Q3: A$905/oz) 9.2 FY18 average 12.5 g/t Au • Mined grade of 13.4 g/t Au from Reserve
Slide 10: Gwalia production and cost profile
Gwalia production and cost profile For personal use only AISC (A$/oz) FY18 performance 940 841 783 785 802 950 • Record production 268 koz (FY17: 265 koz) • AISC A$802 /oz (FY17: A$785 /oz) Production FY19 guidance (koz) 267 265 268 260 • Production of 245 to 260 koz 248 245 • AISC1 of A$920 to A$98
Slide 11: Simberi Q4 FY18 results
Simberi Q4 FY18 results AISC For personal use only (A$/oz) 1,125 1,129 1,135 1,027 Q4 Jun FY18 production 994 FY18 Average $1,068/oz • 34,899 oz (Q3: 29,112 oz) • AISC1 A$1,135/oz (Q3: Production A$1,129/oz), increase in (koz) sustaining capital spend in Q4 36.7 • Mined grade was 1.30 g/t Au 34.9 32
Slide 12: Simberi production and cost profile
Simberi production and cost profile AISC For personal use only (A$/oz) 2,300 FY18 performance • Fourth consecutive record annual 1,464 1,293 1,325 1,187 1,068 production 135 koz (FY17: 116 koz) and record low AISC A$1,068 /oz (FY17: A$1,187 /oz) Production 135 • Improved grade (FY18: 1.25 g/t Au, (k
Slide 13: Simberi mine life extension to FY21
Simberi mine life extension to FY21 For personal use only New Life of mine plan • Recent work on Simberi’s life of mine plan has extended oxide mine life to the end of FY21 • Mining continues through FY19 and FY20 • Low grade stockpiles accumulated over FY18 to FY20 to be processed in FY21 Simberi O
Slide 14: Increasing cash balance
Increasing cash balance For personal use only 344 A$M 82 46 262 Q4 movement net of: $7 M tax 17 216 Q3 movement net of: $4 M investments 38 199 Q2 movement net of: $16 M dividends $31 M tax 161 Q1 movement net of: $4 M investments $12 M investments $25 M dividends FY17 FY18 FY18 FY18 FY18 Q4 Jun Q1
Slide 15: Cash generation and usage
Cash generation and usage A$M 120 105 For personal use only 100 Operational cash contribution 86 79 79 80 60 Net cash movement for qtr 40 82 Corp. costs & royalties, 46 explr. & working cap. 20 38 17 Strategic investments 0 -7 -16 -25 -10 Leonora - growth capital -31 -2 -20 -7 -4 -3 -4 -1 -4 -4 -18
Slide 16: Key Project Timeline
Key Project Timeline FY18 FY19 FY19 For personal use only Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 2600 mbs hole drilling analysis & results 3D Targets interpretati
Slide 17: Gwalia Extension Project update
Gwalia Extension Project update • Project includes new ventilation shafts • Raise bore activities progressing to For personal use only and paste aggregate fill (PAF) schedule with second surface shaft pilot • Budget of A$100 million with planned hole drilling due for completion late July completion
Slide 18: Gwalia Mass Extraction – PFS (Original)
Gwalia Mass Extraction – PFS (Original) For personal use only For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 17 / Q4 June FY18 Quarterly Presentation
Slide 19: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) For personal use only For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 18 / Q4 June FY18 Quarterly Presentation
Slide 20: Gwalia Mass Extraction PFS – Alternative Flow sheet
Gwalia Mass Extraction PFS – Alternative Flow sheet For personal use only For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 19 / Q4 June FY18 Quarterly Presentation
Slide 21: Gwalia Mass Extraction PFS
Gwalia Mass Extraction PFS • Gwalia life of mine to FY31 (with hydraulic hoisting) For personal use only Gwalia Key Metrics Guidance Outlook FY19F FY20 FY21 FY22 Underground ore mined kt 770 960 1,150 1,400 Mined grade g/t Au 10.5 8.4 7.7 7.0 Gold Production koz 245-260 255 280 300 AISC (inc. Corp a
Slide 22: Exploration | Gwalia Deeps, Seismic and 2600 mbs targets
Exploration | Gwalia Deeps, Seismic and 2600 mbs targets For personal use only • GWDD19A has been completed, intersecting four mineralised zones between 2,630-2,690 mbs. • Results confirm Gwalia ore lodes are continuous to 2,700 mbs. For full explanation and results refer to ASX release 26 July 2018
Slide 23: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA For personal use only • Completed 313 hole Aircore drill program in Q4 June FY18, testing six targets: Graham’s Find, Yindi Station, Old Homestead, Mulgabbie and reconnaissance drilling at two new targets. • A follow up 300 hole lake aircore d
Slide 24: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 For personal use only One of four sections, remaining sections in appendix. For full explanation and results refer to ASX release 26 July 23 / Q4 June FY18 Quarterly Presentation 2018 ‘Quarterly Report Q4 June FY18’
Slide 25: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production only Back Creek Australia personal use Pinjin Greater Gwalia Catalyst Metals Peel 16% Mining 16%. Gwalia Tower Gwalia Prodigy GMX Hill Gwalia Duketon Extension Gold2 Mine 10% Mining 12%. Inorganic growth Evaluating exploration, project,
Slide 26: Strategy for the next years – stronger for longer
Strategy for the next 5 years – “stronger for longer” For personal use only Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in
Slide 27: Conclusion
Conclusion • Record annual production For personal use only and AISC • A$344M cash at bank and term deposits1, no debt • Organic growth underway: o Gwalia – GEP, GMX and deep drilling o Simberi – life extended, sulphide gold and copper-gold drilling • Well positioned for inorganic growth Ore conveyo
Slide 28: Appendices
Appendices For personal use only Portal to Hoover Decline at Gwalia – June 2018 27 / Q4 June FY18 Quarterly Presentation
Slide 29: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Mar Year Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY181 FY19 For personal use only St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 June Year to 30 June Year to 3
Slide 30: Simberi Strategic Review
Simberi Strategic Review • Decision in November 2016 to retain Simberi operating assets was the right one For personal use only • Cash contribution1 since the decision to retain the asset is A$126 million Quarterly cash contribution1 from Simberi Decision to retain $82 M in FY18 24 24 23 23 19 20 12
Slide 31: Gwalia Mass Extraction PFS – narrow lodes mining method
Gwalia Mass Extraction PFS – narrow lodes mining method For personal use only 30 / Q4 June FY18 Quarterly Presentation
Slide 32: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic For personal use only Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 31 / Q4 June FY18 Quarterly Presentation
Slide 33: Exploration FY19 Guidance - A$21 to A$27 million
Exploration FY19 Guidance - A$21 to A$27 million For personal use only A$9 – A$12 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$8 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry • Tatau
Slide 34: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration For personal use only • Two hole drill program completed in Q4 June FY18 showed shearing and alteration similar to the Gwalia deposit. • Downhole surveys planned in Q1 Sep FY19 for future drill targeting. For full explanation and results refer
Slide 35: Exploration | Pinjin, Q4 June FY18 results
Exploration | Pinjin, Q4 June FY18 results For personal use only For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 34 / Q4 June FY18 Quarterly Presentation
Slide 36: Exploration | Horsepaddock Well – Leonora province
Exploration | Horsepaddock Well – Leonora province Q4 June FY18 geophysical surveys at Horsepaddock Well completed For personal use only • Detailed interpretation of the Induced Polarisation and Sub Audio Magnetics surveys has been completed, with analysis identifying 24 targets. • Four targets have
Slide 37: Exploration | Tabar Island group, PNG, Q4 June FY18
Exploration | Tabar Island group, PNG, Q4 June FY18 Tabar Islands For personal use only • Simberi drilling beneath Sorowar open pit has identified sulphide mineralisation from the initial 15 reverse circulation (RC) holes. • A single 808 m deep hole intersected Cu-Au porphyry style mineralisation at
Slide 38: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 Sorowar Pit For personal use only Best results include: SORDGC001 – 28m @ 1.37g/t Au from 114m SORDGC002 – 19m @ 4.96g/t Au from 82m SORDGC007 – 20m @ 8.42g/t Au from 60m; and 15m @ 7.08g/t Au from 89m For full explanation and results refer to ASX rele
Slide 39: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 For personal use only For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 38 / Q4 June FY18 Quarterly Presentation
Slide 40: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 For personal use only For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 39 / Q4 June FY18 Quarterly Presentation
Slide 41: Exploration | Simberi Island, PNG, Q4 June FY18
Exploration | Simberi Island, PNG, Q4 June FY18 For personal use only For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 40 / Q4 June FY18 Quarterly Presentation
Slide 42: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension For personal use only 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.2 Moz Sulphide Resource @ 1.8 g/t Au Simberi Sulphide PFS • Focused exploration for sulphide ore Capex US$100 million underway to improve project Annual Production 130,000 ounces over
Slide 43: Hedging Summary at June 2018
Hedging Summary at 30 June 2018 For personal use only Financial Volume Price Delivery Announced Year ounces A$/oz (all monthly instalments) FY 19 100,000 $1,750 July 2018 to June 2019 7 & 19 Feb 2018 and 7 Mar 2018 FY 20 50,000 $1,750 July to December 2019 7 & 19 Feb 2018 and 7 Mar 2018 For full exp
Slide 44: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 For personal use only Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7
Slide 45: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 For personal use only Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 5,045 7.8 1,265 14,877
Slide 46: 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 47: Non-IFRS Measures and recent announcements
Non-IFRS Measures and recent announcements 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 mean
Slide 48: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary T: +61 3 8660 1900 David Cotterell Manager Investor Relations 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), Bob