47 slides from St. Barbara's earnings presentation, Aug 24, 2016
Slide 1: Presentation on the FY16 Financial Report and 30 June 2016 Ore Reserves and Mineral Resources Statements
ASX Release / 24 August 2016 For personal use only Presentation on the FY16 Financial Report and 30 June 2016 Ore Reserves and Mineral Resources Statements Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the FY16 Financial Report and 30 June 2016 Ore Reserves
Slide 2: FY16 Financial Report Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 24 August 2016 For personal use only FY16 Financial Report 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 ˃ Headlines ˃ Exploration & Outlook For personal use only ˃ Operations ˃ Conclusion ˃ Financial Results ˃ Appendices ˃ Resources and Reserves Sky over Gwalia processing plant, April 2016 3/ FY16 Full Year Financial Presentation
Slide 5: FY16 Headlines: Record safety and production results
FY16 Headlines: Record safety and production results AISC1 (A$/oz) 1,340 Total Recordable Injury Frequency Rate2 For personal use only 12.5 1,007 933 Production (koz) 387 9.0 368 377 9 46 50 110 70 80 6.0 5.0 45 248 267 4.1 215 2.1 FY14 FY15 FY16 Gwalia Simberi King of the Hills Gold Ridge FY 11 FY
Slide 6: FY16 Headlines: Record profit and cash flow
FY16 Headlines: Record profit and cash flow FY16 FY15 Change For personal use only NPAT (Statutory) A$M 169 40 327% ˃ Record profit Cashflow from A$M 243 113 114% ˃ Balance sheet repaired operations ˃ Debt reduced by A$185 million Debt A$M 142 71 100% to A$170 M2 at 23 Aug 2016, repayments 1 with co
Slide 7: Gwalia: Record production driven by productivity gains
Gwalia: Record production driven by productivity gains 8% year on year improvement, Mined Grade 9.3 3 key innovations (g/t Au) 8.8 8.4 8.9 For personal use only 8.2 6.9 Reserve Grade 6.3 8.3 g/t Au June 2016 5.7 Ore passes Allows bogger to work constantly, independent of ore trucks, 267 265 removes
Slide 8: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (A$/oz) For personal use only 2,300 1,464 1,293 9,898 Mining Consecutive years of >50% improvement 6,293 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Mining 4,151 (kt) 110 80 Production (koz) 44 FY14 FY15 FY16 P
Slide 9: FY16 Financial Summary
FY16 Financial Summary1 FY16 FY15 For personal use only Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost 2 A$/oz 933 1,007 Result ˃ Statutory profit after tax A$M 169 40 ˃ Underlying net profit after tax 2 A$M 127 42 ˃ EBITDA 2 A$M 298 168 ˃ Underlying EBITDA 2 A$M 286
Slide 10: Financial Results: Key changes to underlying profit
Financial Results Key changes to underlying profit1 FY15 to FY16 Key changes to underlying profit1 FY15 to FY16 For personal use only 10 5 4 40 1 1 -1 -28 53 A$ Million 127 42 FY15 Gross Profit - Gross profit - Exploration Corporate D&A Finance + FX Royalties Other Income tax FY16 Aust Ops Simberi O
Slide 11: Financial Results - Cash movement FY16
Financial Results - Cash movement FY16 Cash movement FY16 For personal use only +34 +235 -142 A$ Millions -30 -16 -21 137 77 Cash Leonora Ops Simberi Ops Debt repayments Interest Exploration Corporate (inc. Cash June 2015 payments capex) + other June 2016 10 FY16 Full Year Financial Presentation
Slide 12: Financial Results: Segment profit & cash flow
Financial Results Segment profit & cash flow For personal use only Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 128 124 101 111 97 86 53 58 21 11 13 15 17 17 -14 -15 FY15 FY15 FY16 FY16 FY15 FY15 FY16 FY16 1H 2H 1H 2H 1H 2H 1H 2H A$M A$M Leonora Simberi Leonora
Slide 13: Cash and Debt
Cash and Debt Debt, Cash Balance & Contribution from Operations (FY15 to present) For personal use only AUD Debt2,3 420 390 367 358 355 325 325 299 325 271 USD Debt2 249 248 229 216 189 168 170 108 115 114 Cash balance1 100 128 77 137 70 56 70 80 71 69 69 57 A Cash 10 32 Contribution4 FY15 FY15 FY15
Slide 14: Reserves and resources: Gwalia major variances FY15 to FY16
Reserves and resources Gwalia - Major variances FY15 to FY16 1 For personal use only Gwalia Reserves Gwalia Resources +938 +193 +297 -346 -277 1,808 3,896 koz 1,594 koz 3,304 June Mining Depth Design June June Mining Depth June 2015 depletion extension changes 2016 2015 depletion & extensions 2016 *
Slide 15: Gwalia Mineral Resource Classification & Reserves
Gwalia Mineral Resource Classification & Reserves June 2016 and June 2015 Measured For personal use only Indicated Inferred Gwalia Mineral Resource June 2015 Gwalia Mineral Resource June 2016 200m depth extension of Resource model Gwalia Mineral Resource kt g/t koz 2016 17,924 7.0 3,896 2015 12,929
Slide 16: Simberi: Reserve and Resource changes
Simberi: Reserve and Resource changes Resources - Oxide Resources - Sulphide For personal use only +115 -17 -98 -134 -328 1,413 koz 3,607 3,607 koz 951 June Transitional Mining Resource June June Mining depletion Transitional ore June 2015 ore reclass. depletion model 2016 2015 reclass. Oxide 2016 O
Slide 17: Mt Letam Au-Cu target, Tatau Island
Mt Letam Au-Cu target, Tatau Island For personal use only Mt Letam drill hole TTD061 Mt Letam drill hole TTD061 Mt Letam drill core Mt Letam camp 16 / FY16 Full Year Financial Presentation
Slide 18: Profitable growth options
Profitable growth options Existing opportunities For personal use only > Gwalia mine extension study well advanced > Simberi strategic review underway > Exploration in WA and PNG Eyes open for other opportunities > Consider sensible inorganic growth where it increases shareholder value > Systematic
Slide 19: Gwalia mine life extension & Reserves upgrade
Gwalia mine life extension & Reserves upgrade For personal use only Gwalia Reserves & Resources increased > Mine plan to 1940 mbs (in FY24) > Reserves increased by net 214 koz (gross increase 490 koz) > Resources increased by net 592 koz (gross increase 938 koz) Ventilation study underway > Trucking
Slide 20: Gwalia ventilation study
Gwalia ventilation study A ventilation PFS has been completed and a feasibility study will For personal use only now compare the following options (all figures approximate at +/-20% study accuracy): (A) Increase ventilation infrastructure (on surface) and install two 4.5m ventilation shafts to 1,500
Slide 21: Gwalia ventilation study
Gwalia ventilation study > The Gwalia life of mine plan used for the 2016 Ore Reserves and Mineral For personal use only Resources includes capital expenditure for the Option A ventilation upgrade. > As a consequence of incorporating the proposed Option A ventilation upgrade, Reserves and Resources
Slide 22: Conceptual illustration of Gwalia ventilation solution
Conceptual illustration of Gwalia ventilation solution Twin vent shafts New primary New bulk air cooler For personal use only • Increases both exhaust fans fresh air intake and Existing bulk air cooler exhaust capacity Existing primary • Reduces diameter of exhaust fans Multiple lifts shafts and low
Slide 23: Simberi: maximize shareholder value
Simberi: maximize shareholder value For personal use only Sulphide Project > Assess additional investment against potential eight year mine life extension Strategic review > Broad consideration of options for PNG assets to maximize shareholder value Exploration > Simberi: Near mine oxide drilling &
Slide 24: Exploration FY17 Guidance
Exploration FY17 Guidance For personal use only Exploration: Guidance A$18 to A$22 million A$10- A$12 million, Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia Seismic A$8- A$10 million: ˃ WA (30%) Pinjin – complete drilling ˃ PNG (70%) ˃ Simberi Oxides – near mine ˃ Tatau Copper-
Slide 25: St Barbara vs Comparator mines - FY16 production & LOM
St Barbara vs Comparator mines - FY16 production & LOM Prod. (koz) Bubble size = Implied For personal use only LOM (years) 350 Gwalia - SBM 300 Duketon South - RRL 250 Jundee - NST Carosue Dam 200 (province)- SAR Mungari - EVN Cowal - EVN 150 Kundana - NST Dipidio - OGC Simberi - SBM Waihi - OGC Red
Slide 26: Great year, big future
Great year, big future FY16 FY17 For personal use only ˃ Record safety ˃ Aiming to maintain strong production & cash flow ˃ Record production ˃ Strong Reserves and Resources position ˃ Record profit ˃ Now looking at profitable growth options ˃ Record cash flow ˃ Working to extend Gwalia life ˃ Explo
Slide 27: Appendices
Appendices For personal use only March 2016: Rainbow over Hoover House and Gwalia pit. 26 / FY16 Full Year Financial Presentation
Slide 28: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production For personal use only > Shares on issue 495 M ˃ FY16 387 koz @ AISC4 A$933/oz > Market Cap2 A$1,569 M ˃ FY17F3 355 koz @ AISC A$1,030/oz > ADR OTC code STBMY > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resourc
Slide 29: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 FY17 For personal use only Production Gwalia oz 248,142 72,388 63,533 66,147 65,098 267,166 260 to 265 koz3 245 to 265 koz King
Slide 30: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ $4.00 $3,000 For personal use only Top performing stock in the ASX 200 in FY20162 $3.50 Top performing stock in the ASX 300 in CY20151 $2,500 $3.00 $2,000 $2.50 A$ gold (RHS) $2.00 $1,500 $1.50 US$ gold $1,000 (RHS) $1.00 ASX: XGD (RHS x 2) $500 $0.50 SBM
Slide 31: Significant items in FY16 net profit after tax
Significant items1 in FY16 net profit after tax Significant Items in NPAT For personal use only 169 1 -14 127 -29 A$ Million FY16 NPAT Disposal of assets Foreign exchange Income tax FY16 Underlying NPAT[1] 30 / FY16 Full Year Financial Presentation 1. Non-IFRS measure, refer appendix
Slide 32: Debt and hedging at June 2016 and today
Debt and hedging at 30 June 2016 and today For personal use only US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 30 Jun 2016 ˃ Additional US$40 million repurchased 20 July 2016, balance at 23 Aug 2016 is US$128 million, US$122 million repurchased since 1 June 20
Slide 33: Growth: Three moving parts of capital management
Growth Three moving parts of capital management ˃ Anticipate strong free cash flows For personal use only Gwalia Decide: Prepare: Q2 Dec 2016 ≈Q3 Mar 2017 of FY16 to continue in FY17 Ventilation Start: ≈Q1 Sep 2017 Upgrade Term: ≈24-30 mths ˃ Debt reduction still a focus in short term Decide: Q3 Mar
Slide 34: Gwalia – Ore Reserve Grade Movement
Gwalia – Ore Reserve Grade Movement FY16 Stoping For personal use only Grade (g/t) 4–6 6–8 8 – 10 Gwalia Ore Reserve Grade 10 – 12 June 2015 >12 Grade reduction informed by additional drilling data 200m depth extension of Gwalia Ore Reserve Grade Resource model June 2016 33 / FY16 Full Year Financia
Slide 35: Gwalia - variances to Ore Reserve Grade FY15 to FY16
Gwalia - variances to Ore Reserve Grade FY15 to FY16 1 For personal use only 0.1 0.8 0.2 0.3 0.0 0.0 0.1 0.0 g/t Au 9.4 8.3 Ore Reserve FY16 Design Design Design Modifying Grade Cut-off grade Depth Ore Reserve Grade June production changes (SWB changes (WL changes (ML factors softening Extension Gra
Slide 36: Gwalia Mineral Resource Movement
Gwalia Mineral Resource Movement June 2015 to June 2016 For personal use only 428 379 131 53 277 16 3,896 koz 3,304 June 2015 Sterilisation Mining depletion West Lode Main Lode SW branch SGS Extensions June 2016 remodel extensions extensions Refer ASX announcement 23 August 2016 titled ‘Ore Reserves
Slide 37: Gwalia Ore Reserve Movement
Gwalia Ore Reserve Movement June 2015 to June 2016 36 For personal use only 158 297 1,808 277 koz 1,594 June 2015 Mining depletion Depth Extension Geology & Design Grade Softening June 2016 Changes Factors & Cut Off Refer ASX announcement 23 August 2016 titled ‘Ore Reserves and Mineral Resources Sta
Slide 38: Greater Gwalia – province exploration campaign in FY17+
Greater Gwalia – province exploration campaign in FY17+ ˃ Use sound waves reflecting off mineral ˃ Q1 Gwalia, Q2 ‘Greater Gwalia’ For personal use only formations to explore. ˃ Leading edge use of sensors down deep ˃ Used successfully by other WA Gold drill holes miners For full explanation and resu
Slide 39: Major variances to Ore Reserves FY15 to FY16
Major variances to Ore Reserves FY15 to FY16 1 For personal use only +193 +297 -110 -96 -277 koz 4,003 4,011 June Gwalia Mining Gwalia Depth Design changes Simberi mining Mining cost June 2015 Extension (Gwaila) increase 2016 1. Refer ASX announcement 23 August 2016 titled ‘Ore Reserves and Mineral
Slide 40: Major variances to Mineral Resources FY15 to FY16
Major variances to Mineral Resources FY15 to FY161 For personal use only +938 -104 -151 -170 -213 -98 -346 9,223 koz 9,079 June Kailis KoTH Gwalia Gwalia Deeps Simberi Simberi material Revised June 2015 Divestment Divestment Depletion & Drilling Depletion type changes geological 2016 Sterilsation mo
Slide 41: Ore Reserves Summary as at June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total For personal use only Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194
Slide 42: Mineral Resources Summary as at June 2016
Mineral Resources Summary as at 30 June 2016 Project Measured Indicated Inferred Total For personal use only Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574
Slide 43: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Australia 23% Not analysed, Institutional 10% 82% UK 12% Non USA 33% Institutional, 8% Other 7% Not analysed 25% Analysis and geographic spread of shareholders as at 15 Jul 2016 42 / FY16 Full Year Financial Presentatio
Slide 44: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Van Eck 12.7% Argonaut Adam Miethke M&G Investment Mgt 8.4% Canaccord Reg Spencer Hunter Hall 6.8% Credit Suisse Mike Slifirski Deutsche Bank Matt Hocking Institutional Sharehold
Slide 45: 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 Gold Ridge is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr M
Slide 46: 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 47: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au 46 / FY16 Full Year Financial Presentation