St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (May 2018)
54 slides from St. Barbara's corporate update, May 15, 2018
Slide 1: Presentation to analysts and investors at Leonora Operations
ASX Release / 15 May 2018 Presentation to analysts and investors at Leonora Operations Attached is a presentation to analysts and investors attending a site visit this week at Leonora Operations, Western Australia. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Relations Mr
Slide 2: Gwalia site visit presentation
Kous Kirsten, General Manager Leonora Operations / 15 May 2018 Gwalia site visit presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents Overview of St Barbara • Operations • Safety Gwalia Mine, Leonora, WA • History • Production • Innovation • Growth Exploration Appendices Adrian Diaz –Senior Resource Geologist (SBM) and Alexander Phillps 3/ (DDH1) at 2600 mbs deep drilling site, Jan 2018 Gwalia Site Visit Presentation / Ma
Slide 5: Overview of operations
Overview of operations ASX 200 (ASX: SBM), est. 1969 Commodity Gold (Au) Papua Simberi Operations A$2.5B @ New Guinea Market cap1 A$4.75/sh Shares1 517 M Liquidity2 2.8 M/day (0.5%) FY17 EPS3 A$0.32 FY17 DPS A$0.06 Australia Cash4 A$262 M Leonora Operations (Gwalia mine) Debt Nil5 Ore Reserves (JORC
Slide 6: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.6 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 Q3 FY18 FY18 FY18 • TRIFR corresponds to 8 low range injuries in last 12 mths • Corresponding LTIFR (lost time/ ’serious’ injury frequency rate) of 0.7 to 31 Mar 2018 compar
Slide 7: Gwalia mine history and extent
Gwalia | 120 not out! • From surface outcrop (first mined 1896) to current workings is approx. 3.5 km ‘straight line’ along shear • Herbert Hoover was the initial Gwalia mine manager (1897-1898), later a US President (1929-1933), noted angle of deposit – took mining underground via underlay shaft (f
Slide 8: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 11.7 10.7 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 to Production 248 250 (koz) 214 AISC 185 183 (A$/oz) 940 860 841 783 785 131 Q1-3 109 184 @ 83 858 & 12.1 g/t Au FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Slide 9: Gwalia Q3 FY18 results + FY18 guidance
Gwalia Q3 FY18 results + FY18 guidance AISC (A$/oz) 905 872 859 786 816 FY17 average A$785/oz 15.0 Q3 Mar FY18 production • 56,773 oz (Q2 FY18: 62,835 oz) Mined grade (g/t Au) 11.3 11.2 • AISC1 A$905/oz (Q2: A$859/oz) 10.7 • Mined grade of 15.0 g/t Au from 9.2 FY17 average 10.7 g/t Au Reserve grade
Slide 10: Gwalia: A rich history with a bright future
Gwalia animation Gwalia A rich history with a bright future Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 9/ Gwalia Site Visit Presentation / May 2018
Slide 11: Main current projects - timeline
Main current projects - timeline FY18 FY19 FY20 Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q1 Sep FY20 to Q3 Mar FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 2600 mbs hole drilling analysis & results 3D Targets interpreta
Slide 12: Gwalia 5-year outlook
Gwalia 5-year outlook Mined Grade 11.7 (g/t Au) 10.7 9.3 9.8 8.8 8.2 8.4 8.9 8.1 6.9 7.7 6.3 6.7 5.7 Reserve Grade to 2140 mbs 290 without 260 280 267 265 260 hydraulic 248 250 250 240 hoisting 240 214 AISC 185 183 LoM to (A$/oz) 940 920 930 FY 2031 841 860 131 783 785 720 109 650 83 GEP GMX FS FY 0
Slide 13: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 12 / Gwalia Site Visit Presentation / May 2018
Slide 14: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 13 / Gwalia Site Visit Presentation / May 2018
Slide 15: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB Mining method mining sequence manages the hanging wall • Long hole stoping with fill • North & South access on FY11 two dual lift levels gives 4 2 mining areas • Greater percentage of free 1 5 bogging increases productivity of each stope 4 • Sill drive
Slide 16: Stope Cycles targeting higher production
Stope Cycles targeting higher production Stope Cycle Time – 6 months per stope • ‘Bogging’ (extracting ore from the stope) represents just under 50% of stope cycle time • Filling and curing around 30% of stope cycle time • Adjacent stopes (beside, above, below) cannot be developed until curing compl
Slide 17: Gwalia Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many of lode open stopes too close together = ‘Centre out’ method Historical stopes (light blue)
Slide 18: Gwalia Resources & Reserves
Gwalia Resources & Reserves Gwalia Gwalia Reserves Gwalia Resources A rich history with a bright future +406 +1,061 +268 +15 koz +316 koz -276 -274 5,087 2,133 1,808 3,896 June Mining Depth Geology Modifying June June Mining Depth Additions June 2016 depletion extension and factors 2017 2016 depleti
Slide 19: Gwalia Ore Reserves
Gwalia Ore Reserves Gwalia A rich Gwalia historyOre with a bright future Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Proved Probable Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources Statement 30 June 2017’. 18 / Gwalia S
Slide 20: Gwalia Ore Reserves
Gwalia Ore Reserves Gwalia A rich history with a bright future Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Ore Reserves Grade (g/t) 4-6 6–8 8 – 10 10 – 12 >12 Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources S
Slide 21: Gwalia Ore Reserves grade
Gwalia Ore Reserves 0.4 Gwalia 0.2 A rich history with a bright future 0.2 0.3 0.1 0.6 g/t Au 8.3 7.8 Ore Reserve FY17 production Design changes Design changes Design changes Dilution factors Depth Extension Ore Reserve Grade June (SWB above (WL & SGS above (ML above 1940) Grade June 2016 1940) 1940
Slide 22: Ore Reserves 'The Sweet Spot'
Gwalia Ore Reserves ‘The Sweet Spot’ Gwalia • Deepest FY17 production A rich history with a bright future at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs • Extend mine ~one level (40 meters) per annum • Reserve grade 7.8 g/t Au1 • Resource model has historically under- p
Slide 23: Extension Project update - on schedule
Gwalia Extension Project update - on schedule • Project includes new ventilation shafts and • Raise bore activities progressing to schedule Gwalia underground crushing of waste, mixed with with second surface shaft pilot hole drilling A paste rich history withstopes to fill emptied a bright future u
Slide 24: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program Gwalia A rich history with a bright future Gwalia - March 2016 For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 23 / Gwalia Site Visit Presentation / May 2018
Slide 25: Exploration | Gwalia Deeps, 2600 mbs target
Exploration | Gwalia Deeps, 2600 mbs target Gwalia - March 2016 For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 24 / Gwalia Site Visit Presentation / May 2018
Slide 26: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration • 3 target areas identified between 600 and 1,900 mbs north and south of Gwalia • Drilling planned for two holes in Q4 June FY18 (GWDD20 and GWDD21) For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report March FY1
Slide 27: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Gwalia A rich history with a bright future Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 26 / Gwalia Site Visit Presentation / May 2018
Slide 28: Appendices
Appendices November 2017 – Gwalia management team visiting raisebore drilling site. 27 / Gwalia Site Visit Presentation / May 2018
Slide 29: Strategy for the next 5 years – "stronger for longer"
Strategy for the next 5 years – “stronger for longer” 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 all phases of the pipe
Slide 30: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q3 YTD Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY181 St Barbara’s financial year Year to Qtr to Qtr to Qtr to 9 mths to Year to 30 June 2018 Gwalia is 1 July to 30 June 30 June 2017 30 Sep 2017 31 De
Slide 31: Operations: St Barbara and Byrnecut contract mining
Gwalia Operations St Barbara Byrnecut – contract mining • Responsible for • Byrnecut is part of Gwalia’s success • Planning • Started at Gwalia in Sep 2012 • Processing • Alliance agreement from Sep 2013 • Procurement • Approx. 200 employees • Commercial • Fleet: inc. • Approx. 150 employees, mostly
Slide 32: Supporting the Leonora community
Supporting the Leonora community Sponsorships • Golden Gift (athletic event) • Kambalda/Leonora Football Club • Goldfields Girl • Leonora Primary School • Apprenticeship program 31 / Gwalia Site Visit Presentation / May 2018
Slide 33: Exploration FY18 Guidance - A$14 to A$18 million
Exploration FY18 Guidance - A$14 to A$18 million A$6 - A$8 million Gwalia • Gwalia Deep Drilling infill + Intermediates • Gwalia Seismic A$4 - A$5 million Pinjin WA • Aircore drilling of targets identified in FY17 A$4 - A$5 million PNG • Simberi Oxides/Sulphides • Tatau Oxides/Sulphides Option and f
Slide 34: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA • Full results received for 163 hole Aircore drill program completed in Q2 Dec FY18. • Drilling highlights anomalous gold in bedrock associated with three trends: Graham’s Find, Yindi Station and Mulgabbie. • Further drilling planned in Q4 Jun
Slide 35: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 34 / Gwalia Site Visit Presentation / May 2018
Slide 36: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 35 / Gwalia Site Visit Presentation / May 2018
Slide 37: Mass Extraction PFS – narrow lodes mining method
Gwalia Mass Extraction PFS – narrow lodes mining method 36 / Gwalia Site Visit Presentation / May 2018
Slide 38: LoM to FY 2031 (with hydraulic hoisting)
Gwalia LoM to FY 2031 (with hydraulic hoisting) Table 1: 5-year key metrics (with hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 940 1,150 1,400 Mined grade g/t Au 11.7 9.8 8.1 7.7 6.7 Gold Production koz 250-260 250 240 280 290 AIS
Slide 39: LoM to FY 2031 (without hydraulic hoisting)
Gwalia LoM to FY 2031 (without hydraulic hoisting) Table 2: 5-year key metrics (without hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 950 1,000 1,180 Mined grade g/t Au 11.7 9.7 7.9 8.3 6.5 Gold Production koz 250-260 250 240 260 2
Slide 40: Gwalia operations
Gwalia operations 39 / Gwalia Site Visit Presentation / May 2018
Slide 41: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 40 / Gwalia Site Visit Presentation / May 2018
Slide 42: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 41 / Gwalia Site Visit Presentation / May 2018
Slide 43: Reserves and Resources as at 30 June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves (Moz) Gwalia Reserves 4.3 4.0 • Increased by net 325 koz after depletion 1.3 1.4 0.5 • Lower average grade 8.3 to 7.8 g/t Au 0.6 0.3 0.3 • Cost of discovery at depth in FY17 1.8 2.1 A$23/oz FY16 FY17 Gwalia Resources Gwalia Tower Hill Simberi Ox
Slide 44: Mineral Resources – lowest expected mined depth
Gwalia – lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18F FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 1380 1420 Mineral Resources Ore Reserves 1500 1500 1540 1600 1580 1620 1700 1740 1800 1780 1820 2000 2140 2200 2200 Or
Slide 45: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves Ore Reserves At end of year (+ production during year) (Moz) 2.5 0.27 Moz Production 2.0 0.21 Moz 0.27 Moz 0.25 Moz 1.5 1.0 2.1 Moz Reserves 1.9 Moz 1.8 Moz 1.6 Moz 0.5 0.0 Maximum Depth of Ore Reserves (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 0 500 1000 1
Slide 46: Ore Reserves Summary as at 30 June 2017
Ore Reserves Summary as at 30 June 2017 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 3.7 306 2,572 3.7 306 Simbe
Slide 47: Mineral Resources Summary as at 30 June 2017
Mineral Resources Summary as at 30 June 2017 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 6.4 3,042 3,831 6.3 78
Slide 48: Predominantly institutional share register
Predominantly institutional share register Australia Not analysed Institutional 35% 8% 87% Non Institutional USA 33% 5% UK 10% Other 9% Non Institutional 5% Not analysed 8% 47 / Gwalia Site Visit Presentation / May 2018 Analysis as at 14 April 2018
Slide 49: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 11.2% Argonaut James Wilson Vinva 5.2% Canaccord Reg Spencer Institutional Shareholders 2 87% Citi Trent Allen Shares on issue 517 M Credit Suisse Mike Slifirski American Depositary Receipts (ADR
Slide 50: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years Mr Netscher is an experienced international mining international mining ind
Slide 51: Executive Leadership Team
Executive Leadership Team Gwalia A rich history with a bright future Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with ove
Slide 52: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 53: Non-IFRS Measures
Non-IFRS Measures 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 assist management, invest
Slide 54: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole T: +61 3 8660 1900 Company Secretary E: info@stbarbara.com.au St Barbara Board, underground at Gwalia, October 2017. L to R: Lucas Welsh (GM Finance), Andrew Walker (Underground Manager) Tim Netscher (Non-Executive Chairman), Bob Vassie (MD&CEO), Kerry Gleeson