St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2014)
32 slides from St. Barbara's shareholder meeting presentation, Nov 25, 2014
Slide 1: 2014 Annual General Meeting and audio webcast
ASX Release / 25 November 2014 For personal use only 2014 Annual General Meeting and audio webcast Attached is the Chairman’s address and the Managing Director and CEO’s presentation to the 2014 Annual General Meeting in Melbourne today. A live audio webcast of the Annual General Meeting will be ava
Slide 2: Chairman's Address: The Year in Review
COLIN WISE, CHAIRMAN ADDRESS TO THE 2014 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ST BARBARA LTD Ladies and Gentlemen THE YEAR IN REVIEW For personal use only Following the September 2012 merger with Allied Gold, the first complete financial year (ending 30 June 2014) has seen a marked difference i
Slide 3: The Current Position & Immediate Outlook
It is trite to say that St Barbara’s overall corporate performance in the past 12 months has been unsatisfactory. The Company’s renewed Board and new Managing Director & CEO remain actively engaged in making significant changes to transform the Company. Costs have been cut with a substantial reducti
Slide 4: Cost reduction and FY15 guidance
Efforts to further reduce costs at all levels within the Company are continuing. FY15 budgeted exploration expenditure has more than halved to A$8 million, down from A$22 million in the previous year. Corporate costs and activities will continue to be closely monitored and further reduced where it i
Slide 5: Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 25 November 2014 For personal use only 2014 Annual General Meeting Managing Director & CEO Presentation
Slide 6: 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 7: Contents
Contents ˃ Safety For personal use only ˃ Overview of Operations ˃ Rebuilding St Barbara ˃ Exploration ˃ Gender Diversity ˃ Conclusion 3/ Annual General Meeting 25 November 2014
Slide 8: Significant improvement in safety in FY14
Significant improvement in safety in FY14 For personal use only Total Recordable Injury Frequency Rate1 14.8 Improving safety performance 12.5 11.1 ˃ FY14 TRIFR1 of 4.1 at June 2014 is a significant improvement on 6.0 at June 2013 9.0 ˃ It is an outstanding result for a combination of underground an
Slide 9: Overview of operations
Overview of operations Simberi For personal use only Simberi ˃ Low strip ratio open pit mine Leonora Gold Ridge ˃ Target annualised ˃ Two underground mines: Solomon production 100 koz ˃ Gwalia Mine Islands ˃ Near mine targets for FY15F production: exploration 180 - 200 koz, estimated mine life 9+ Go
Slide 10: Significant ASX mid tier gold producer
St Barbara – Significant ASX mid tier gold producer koz FY14 Actual Gold Production (koz) 500 For personal use only 400 300 200 100 0 1 OceanaGold Evolution Independence St Barbara Regis Northern Star Silver Lake Kingsgate Saracen Minerals Moz 2014 Ore Reserves and Mineral Resources (Moz) 15 10 5 0
Slide 11: FY14 Operational performance, exploration and corporate
FY14 Operational performance, exploration and corporate Leonora, Western Australia ˃ Outperformed production guidance, continues to generate strong cash flow For personal use only Simberi, Papua New Guinea ˃ Continued to underperform, operating review underway ˃ Processing plant expansion operating,
Slide 12: FY14 Remuneration Report
FY14 Remuneration Report For personal use only ˃ Non-executive Director changes ˃ Board reduced to 5, with 3 new Directors since FY13 ˃ Succession underway for 2 long serving Directors ˃ Executive management changes ˃ Number of senior executives reduced from 6 to 3, then 2 at end November ˃ First St
Slide 13: Rebuilding St Barbara: Focus on cornerstone Leonora assets
Rebuilding St Barbara Focus on cornerstone Leonora assets ˃ Gwalia For personal use only ˃ High grade, low cost, reliable cash margins ˃ FY15F 180 – 200 koz gold production ˃ 9 year mine life (reserves)1 ˃ Consistent and predictable ore body open at depth, with mine life extension potential at depth
Slide 14: Rebuilding St Barbara: Simberi turnaround continuing
Rebuilding St Barbara Simberi turnaround continuing ˃ Potential long term, cash generating gold For personal use only operation ˃ Significant turnaround continuing ˃ Capital largely already invested ˃ Focus on improving whole value chain to lift production and lower unit costs ˃ Anticipated to be ca
Slide 15: Rebuilding St Barbara: Exploration and Corporate
Rebuilding St Barbara Exploration For personal use only ˃ 60% reduction in exploration headcount (July 2013 to Oct 2014) and expenditure (FY14 $21m; FY15F $8m) ˃ FY15 exploration focused on near mine resources at Gwalia and Simberi Corporate ˃ Focus on cash generation and rebuilding Company performa
Slide 16: FY14 Cash movement and proposed FY15 actions
FY14 Cash movement and proposed FY15 actions For personal use only Simberi anticipated to be cash flow positive by June 2015 quarter Focus & improve operation Minimise expenditure in FY15 Aim to divest / exit GRML in FY15 Reduce to est. $8M in FY15, inc. Gwalia deep hole FY14 inc. $9M royalty and $3
Slide 17: Leonora Operations, Australia
For personal use only Leonora Operations, Australia New Gwalia chiller plant under construction, doubles chilling capacity, uses heat from existing power plant, saves CO2 and power costs 13 / Annual General Meeting 25 November 2014
Slide 18: Gwalia – independently rated as one of the best gold mines in the ASX
Gwalia – Independently rated as one of the best gold mines in the ASX ASX underground gold mines – Reserves and Reserve Grade For personal use only Source: Argonaut Research, Perth, 27 August 2014 14 / Annual General Meeting 25 November 2014
Slide 19: Gwalia, Leonora Operations - cornerstone asset
Gwalia, Leonora Operations - cornerstone asset & reliable cash margin generator ˃ Reliable, sustainable production For personal use only ˃ FY13: 183 koz ˃ FY14: 214 koz @A$940/oz AISC1 ˃ FY15F: 180 - 200 koz ˃ Low costs, high grade, high cash margins ˃ 9+ year mine life based on current Ore Reserves
Slide 20: Future Gwalia – Drilling Plan (Cross Section View)
Future Gwalia – Drilling Plan (Cross Section View) For personal use only West Surface East Potential shaft location New parent hole - GWDD16 1,800mbs Target 2,200mbs 16 / Annual General Meeting 25 November 2014
Slide 21: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands ˃ Operations suspended, costs minimised For personal use only ˃ Negotiations underway for potential transfer to Solomon Islands Government 17 / Annual General Meeting 25 November 2014
Slide 22: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only 18 / Annual General Meeting 25 November 2014
Slide 23: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea ˃ Potential long term, cash generating gold operation For personal use only ˃ Substantial past capital expenditure provides base for turnaround ˃ New low hour mining fleet achieving required mining rates ˃ Plant expansion SAG Mill circuit operating ˃ Improvement
Slide 24: Simberi Sulphide Project
Simberi Sulphide Project ˃ Simberi sulphide Ore Reserve as at 30 June 20141: For personal use only ˃ 19.9 Mt@ 2.0 g/t Au for 1.3 Moz contained gold ˃ 2011 PFS used as basis for Ore Reserve ˃ Recommended onsite roasting ˃ Brownfield project with infrastructure in place (mills, power, etc) ˃ Independe
Slide 25: Monun Creek, Simberi ML
Monun Creek, Simberi ML 136 For personal use only 21 / Annual General Meeting 25 November 2014
Slide 26: Gender Diversity & 2014 Awards
Gender Diversity & 2014 Awards ˃ The overall pay equity gap at St Barbara reduced from 43% in 2007 to 11.4% For personal use only in 2014 (compared to 23.8% for the mining industry and 18.2% nationally1) ˃ Awarded 2014 ‘Outstanding Company Initiative’ at Chamber of Minerals and Energy of WA Women in
Slide 27: Conclusion
Conclusion For personal use only ˃ Continued focus on safety ˃ Concerted focus on cash generation and rebuilding Company performance, corporate costs significantly reduced ˃ Exploring operational improvements to maximise Leonora production ˃ Simberi operational performance improving towards run rate
Slide 28: Appendices
For personal use only Appendices 24 / Annual General Meeting 25 November 2014
Slide 29: FY15 Outlook and Consolidated Production Summary
FY15 Outlook and Consolidated Production Summary Q1 Sep Guidance For personal use only FY15 FY15 Gwalia oz 45,391 180 - 200,000 Production King of the Hills oz 10,793 60 - 70,000 Simberi oz 12,639 70 - 80,000 Consolidated oz 68,823 310 - 350,000 Gwalia g/t 7.9 Mined Grade King of the Hills g/t 4.1 S
Slide 30: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this report that relates to Exploration Results 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 employee of
Slide 31: 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 32: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary E: info@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: SBM 28 / Annual General Meeting 25 November 2014