St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (November 2019)
45 slides from St. Barbara's corporate update, Nov 13, 2019
Slide 1: Presentation to analysts and investors at Leonora Operations
ASX Release / 13 November 2019 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 David Cotterell Manager Investor Relations +61 3 8660 1900
Slide 2: Gwalia site visit presentation
Stean Barrie, General Manager Leonora Operations / November 2019 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 Melissa Walker, Process Technician at the paste plant, Gwalia. 3 / Gwalia Site Visit Presentation | November 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 FY19A FY20F7 Commodity Gold (Au) 380 to 420 koz 362 koz Market Cap1 A$1.8 B @ A$2.57/sh Consolidated @ AISC6 A$1,080/oz @ AISC A$1,240 to A$1,330/oz Shares1 699 M Liquidity2 8.5 M/day (1.2%) 175 to 190 koz 220 koz Gwalia @ AISC A$1,027/oz
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR in comparison with Western Australian Mining benchmarks2 5.0 5.0 5.0 1.9 1.9 2.1 2.1 1.6 1.2 FY15 FY16 FY17 FY18 FY19 FY20 St Barbara WA Gold WA Metal Q1 Sep Q1 FY20 • The Total Recordable Injury Frequency Rate (TRIFR, 12 month
Slide 7: Gwalia 120 not out!
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 profile
Gwalia production profile Mined Grade (g/t Au) 12.5 10.7 11.1 9.3 8.9 8.0 FY19 performance Reserve Grade1 6.4 g/t Au • Production of 220 koz June 2019 • AISC2 of A$1,027/oz Production 14203 (koz) 268 267 248 265 FY20 guidance 220 AISC2 190 • Production of 175 to 190 koz (A$/oz) 1027 175 841 • AISC o
Slide 9: Quarterly Gwalia production profile
Quarterly Gwalia production profile AISC (A$/oz) 1,559 1,081 1,228 833 1,016 Q1 FY20 Production FY19 average $1,027/oz • 38,153 oz (Q4: 49,966 oz) Mined grade (g/t Au) • AISC1 A$1,559/oz (Q4: A$1,228/oz) 10.4 11.7 10.0 • Mined grade of 7.4 g/t Au 7.4 (Q4: 10.0 g/t Au) Reserve grade FY19 7.5 g/t Au R
Slide 10: Gwalia animation
Gwalia animation Gwalia A rich history with a bright future Animation of Gwalia underground mine available at https://youtu.be/D3uo4FKCi2I 9 / Gwalia Site Visit Presentation | November 2019
Slide 11: Mining Strategy: Triple Lift Stoping in Wide SWB Zones
Gwalia Mining Strategy Triple Lift Stoping in Wide SWB Zones Mining method • Long hole open stoping with fill • North & south access on two levels gives 4 mining areas DL3 • Greater percentage of free 2 bogging increases productivity DL2 of each stope 40m 1 DL1 DL3 • Sill drives fully in ore – reduc
Slide 12: Mining Strategy (cont.): Double Lift Stoping
Gwalia Mining Strategy (cont.) Double Lift Stoping in South Gwalia Series and Narrower SWB Zones 80m // // 15m Cable Bolts and straps 40m 25m Cable Bolts and straps Mining method • Cable bolts installed from central ore drive, reducing dilution • Production drilling parallel to hangingwall to reduce
Slide 13: Mining Strategy (cont.): Single Lift Stoping in Narrower Zones
Gwalia Mining Strategy (cont.) Single Lift Stoping in Narrower Zones (Main Lode, West Lode) 87m // // 20m 40m 20m Mining method • Lower hydraulic radius reduces dilution • Production drilling parallel to hangingwall to reduce blast induced dilution 12 / Gwalia Site Visit Presentation | November 2019
Slide 14: Mining Strategy (cont.): Island Pillar Method Opportunity
Gwalia Mining Strategy (cont.) Island Pillar Method Opportunity 30m Mining method 15m • Island pillar supports hangingwall, reducing dilution 25m • Allows strike length to be increased • Fixed part of stoping cycle effectively spread over two stopes • Potential increase in stoping productivity 13 /
Slide 15: Mining Strategy (cont.)
Gwalia Mining Strategy (cont.) Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many open stopes of lode too close together = ‘Centre out’ method ‘Centre out’ – extract centre stope of lode firs
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 • PAF circuit optimisation to aid in reduction of filling time • Adjacent stope
Slide 17: Gwalia Extension Project Update | On Schedule
Gwalia Extension Project Update | On Schedule • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 million with planned completion in Q3 March FY202 • A$107 million spent on project to date • PAF crushing circuit on
Slide 18: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 17 / Gwalia Site Visit Presentation | November 2019
Slide 19: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program Gwalia A rich history with a bright future • Parent holes GWDD23C and GWDD25 targeted the orebody at 2,200 – 2,400 mbs • Daughter holes GWDD24 and GWDD24A targeted northern extensions to the lode system at 1,100 mbs and intersected weakly mineralised inter
Slide 20: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program Gwalia A rich history with a bright future Gwalia Deep Drilling • Awaiting assay results for GWDD025 For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 19 / Gwalia Site Visit Presentation | November 2
Slide 21: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia A rich history with a bright future For full explanation and results refer to ASX release 21 October 2019 ‘Q1 September FY20 Quarterly Report’ 20 / Gwalia Site Visit Presentation | November 2019
Slide 22: Exploration | Gwalia Region
Exploration | Gwalia Region Greater Gwalia Gwalia • Emphasis on short term exploitable A rich history with a bright future prosects • Phase 2 drilling, comprising of eight new diamond drill holes with RC pre-collars, and four existing hole extensions via diamond tails • Significant results from this
Slide 23: Exploration | Horse Paddock Well / Trevor Bore
Exploration | Horse Paddock Well / Trevor Bore • Horse Paddock Well (Leonora, Gwalia WA): A third phase of drilling A rich history with a bright future comprising eight RC drill holes and two extensional diamond tails. Results include (all downhole): o 1.0 m @ 5.3 g/t Au from 114 m (HWRC0015) o 1.0
Slide 24: Exploration | Gwalia Regional Targets
Exploration | Gwalia Regional Targets Gwalia A rich history with a bright future For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 23 / Gwalia Site Visit Presentation | November 2019
Slide 25: Gwalia Geological Interpretation
Gwalia Geological Interpretation Gwalia A rich history with a bright future Note: Stylised conceptual interpretation of the Gwalia geology and mineralisation 24 / Gwalia Site Visit Presentation | November 2019
Slide 26: Gwalia Deeps | 1620 – 1700 lode schematic
Gwalia Deeps | 1620 – 1700 lode schematic Gwalia A rich history with a bright future Gwalia - March 2016 Reproduced from ASX release 16 September 2019 ‘Denver Gold Forum 2019’ 25 / Gwalia Site Visit Presentation | November 2019
Slide 27: Appendices
Appendices Underground at Gwalia 26 / Gwalia Site Visit Presentation | November 2019
Slide 28: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q1 Sep Guidance Consolidated FY19 FY19 FY 19 FY20 FY20 FY20 AG full quarter AG SBM attributable St Barbara’s financial year Qtr to Qtr to Year to Qtr to Qtr to Year to is 1 July to 30 June 31 Mar 2019 30 Ju
Slide 29: Operations
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. 230 employees • Commercial Underground fleet • Approx. 170 employees, mo
Slide 30: Supporting the Leonora community
Supporting the Leonora community St Barbara is focused on working within the Leonora community. Sponsorships • Golden Gift (athletics carnival) • Kambalda/Leonora Football Club • Goldfields Girl (personal development program for young indigenous women) Gwalia Processing plant Gwalia Gwalia –– Underg
Slide 31: Gwalia operations
Gwalia operations 30 / Gwalia Site Visit Presentation | November 2019
Slide 32: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 31 / Gwalia Site Visit Presentation | November 2019
Slide 33: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 32 / Gwalia Site Visit Presentation | November 2019
Slide 34: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves Maximum Depth of Ore Reserves (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 30 Jun 2019 0 500 1000 1500 mbs 1500 mbs 1540 mbs 1580 mbs 1500 1620 mbs 1660 mbs Maximum 1540 mbs Mined Depth 1740 mbs 2000 1940 mbs Maximum Reserves Depth 2140 mbs 2140 mb
Slide 35: Gwalia Resources & Reserves
Gwalia Resources & Reserves Gwalia Gwalia Reserves Gwalia Resources A rich history with a bright future koz +183 koz +315 -233 +84 -225 4,825 4,775 2,073 1,899 June Mining Cut-off Lode Strike June June Mining Geology model June 2018 depletion grade Extensions 2019 2018 depletion update 2019 Refer AS
Slide 36: Tailings Storage Facility (TSF3)
Gwalia Tailings Storage Facility (TSF3) Upstream raise construction Gwalia • Type of TSF: Paddock A rich history with a bright future Metrics: • First approved: 1992 • Elevation: ~376m • Current wall height: 30 m • Projected final wall height: 32 m • Tailings deposition rate: 750-850 ktpa • Deposite
Slide 37: Tailings Storage Facility (TSF3) – Governance
Gwalia Tailings Storage Facility (TSF3) – Governance •Gwalia Engineer of Record & Independent Tailings Engineer A rich history with a bright future Leonora • Annual safety inspections Shire • Insurance Assessment • Annual visit • WA Government, Department of Water and Environmental Regulation • Peri
Slide 38: Ore Reserves Summary at June 2019 + Atlantic Gold
Ore Reserves Summary at 30 June 2019 + Atlantic Gold 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) 2,220 8.0 568 7,915 5.9 1,506 10,135 6.4 2,073 Tower Hill, (WA) - - - 2,572 3.7 306 2,5
Slide 39: Mineral Resources Summary at June 2019 + Atlantic Gold
Mineral Resources Summary at 30 June 2019+ Atlantic Gold 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) 5,034 7.3 1,183 17,527 6.0 3,393
Slide 40: Shareholders and broker coverage
Shareholders1 and broker coverage Broker Research Coverage Not Argonaut James Wilson Institutional analysed 84% Canaccord Reg Spencer 11% Citi Kate McCutcheon Non Credit Suisse Mike Slifirski Institutional GMR David Radclyffe 5% Goldman Sachs Matthew Frydman JP Morgan Levi Spry Macquarie Ben Crowley
Slide 41: 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’ international Mr Netscher is an experienced international mining executiv
Slide 42: Executive Leadership Team
Executive Leadership Team Gwalia A rich history with a bright future Bob Vassie Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer Appointed July 2014 Joined 2006 Mr Vassie is a mining engineer with over 30 years’ international mining Mr Campbell-Cowan is a Chartered Accountant w
Slide 43: Competent Persons Statement
Competent Persons Statement Exploration Results The information in this presentation that relates to Exploration Results for Gwalia and the Leonora region is based on information compiled by Mr Robert Love, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Love is a full-tim
Slide 44: 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 45: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary David Cotterell Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au 44 / Gwalia Site Visit Presentation | November 2019