St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2017
42 slides from St. Barbara's conference presentation, Sep 25, 2017
Slide 1: Presentation to 2017 Denver Gold Forum
ASX Release / 25 September 2017 Presentation to 2017 Denver Gold Forum Bob Vassie, Managing Director and CEO, will present to the Denver Gold Forum in Colorado, USA, on Tuesday 26 September 2017. A webcast of the presentation will be available for on-demand viewing on the Denver Gold Forum website a
Slide 2: Denver Gold Forum 2017
BOB VASSIE, MANAGING DIRECTOR & CEO / 25 -27 September 2017 Denver Gold Forum 2017
Slide 3: Forward statements
Forward statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained in in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries this presentation is for information purposes only. This presentation is not a
Slide 4: Contents
Contents • FY17 Achievements • Operations o Gwalia o Simberi • Resources and Reserves • Exploration • Growth • Conclusion Gwalia (Western Australia) Tailings Storage Facility, May 2016, photo by Dan Pintea 3 / Denver Gold Forum 25 - 27 September 2017
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM), est. 1969 Papua Simberi Operations Commodity Gold (Au) New Guinea Market cap1 A$1.5B @ A$2.93/sh Shares1 513 M Liquidity2 5.3 M/day (1.0%) FY17 EPS3 A$0.32 FY17 DPS A$0.06 Australia Cash4 A$161 M (US$124 M) Leonora Operations (Gwalia mine) Debt Nil5 Ore Reserve
Slide 6: Record safety performance
Record safety performance Total Recordable Injury Frequency Rate1 9.0 • Record safety performance of 1.2 TRIFR1 6.0 • Gwalia repeat winner of CME WA 5.0 4.1 Underground Mine Emergency Response Team 2.1 Competition2 1.2 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 Above: Winning Gwalia ERT, official photo. Si
Slide 7: FY17 Key Achievements
FY17 Key Achievements • Record safety performance of 1.2 TRIFR1 Operational • Record consolidated annual production2 & record low AISC3 excellence • Achieved or exceeded guidance at both operations • Record cash flow from operating activities A$303 M (US$228 M) Record results • Record profitability:
Slide 8: FY17 Key Financial Metrics (A$)
FY17 Key Financial Metrics (A$) EBITDA margin %1,3 50 47 Gwalia EBITDA 64 margin % 3 60 EPS (basic, cents) 1 32 26 ROCE (%)1,3 61 48 DPS (cents) 6 Dividend yield (%) 2 2.1 FY17 FY16 1. Underlying, see page 3 2017 Financial Report 3. Non-IFRS measure, refer Appendix 7 / Denver Gold Forum 25 - 27 Sept
Slide 9: US$ debt repaid in full in March 2017
US$ debt repaid in full in March 2017 Cash and Debt1 US$M Net Debt / Net Cash2 US$M 150 150 124 100 124 100 75 102 50 75 50 22 59 Net Cash 0 [3] 0 -0.4 -50 -11 -50 -100 -100 -67 -150 -169 Net Debt -103 -150 -200 -145 -250 -268 -200 -170 -208 -300 -320 -250 -238 -350 -300 -272 -262 FY14 FY15 FY16 FY1
Slide 10: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 10.7 8.9 9.3 8.8 8.4 8.2 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 Production 248 245 (koz) 214 185 183 AISC 863 (US$/oz) 131 109 700 683 83 570 592 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18F Bogger undergroun
Slide 11: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 10 / Denver Gold Forum 25 - 27 September 2017
Slide 12: Gwalia mining | South West Branch 'The Sweet Spot'
Gwalia mining | South West Branch ‘The Sweet Spot’ • Deepest FY17 production at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs • Extend mine ~one level (40 meters) 1480MBS per annum Deepest level of mining, Q4 FY7, 1620 mbs • Resource model has historically under-predicted
Slide 13: Gwalia Extension Project | Overview
Gwalia Extension Project | Overview • Approved March 2017 • Project will generate a robust financial return • Extend mining at Gwalia to at least 2,000 mbs2 and basis for potential further extensions • Budget of US$79 million and will take two and half to three years to construct • Project is on sch
Slide 14: Gwalia Extension Project | Paste Aggregate Fill
Gwalia Extension Project | Paste Aggregate Fill Innovative combination of existing techniques for unique challenges of a deep trucking mine • Fills stopes more rapidly • Eliminates waste haulage to surface, increasing truck efficiency • Increases ventilation efficiency • Reduces production impact of
Slide 15: Exploration | Gwalia Deeps FY18
Exploration | Gwalia Deeps FY18 Gwalia Deeps • Deep drilling campaign added >1 Moz to resources in FY17 • Further drilling 2,000 to 2,200 mbs with objective to extend Indicated Resource • 2,600 mbs drill starting Q2 Dec 2017 • Potential for drilling of additional targets generated by seismic explora
Slide 16: Exploration | Gwalia Deep + Intermediates Drilling Program
Exploration | Gwalia Deep + Intermediates Drilling Program 15 / Denver Gold Forum 25 - 27 September 2017 For full explanation and results refer to ASX release 26 July 2017 ‘Quarterly Report June 2017’
Slide 17: Gwalia Seismic Exploration
Gwalia Seismic Exploration Gwalia Seismic Exploration • Results analysis during 1H FY18 • Key geological features strongly reflective • Early results indicate downward plunge below 2,500 mbs • Inform drilling program • Further seismic testing planned in Greater Gwalia area 16 / Denver Gold Forum 25
Slide 18: Simberi production and cost profile
Simberi production and cost profile 2,111 AISC (US$/oz) 1,218 941 1,043 895 116 115 Production 110 (koz) 105 80 44 FY14 FY15 FY16 FY17 FY18F Note: FY18F AISC is midpoint of guidance, released in Q4 June 2017 Quarterly Report. AISC is a non IFRS measure, refer Appendix. 17 / Denver Gold Forum 25 - 27
Slide 19: Reserves and Resources as at June 2017
Reserves and Resources as at 30 June 2017 Gwalia Reserves Simberi Reserve & Resource models reviewed • Increased by net 325 koz after depletion, • Oxide mine life extended, grade steady at 1.3 g/t Au cost of discovery at depth in FY17 A$23/oz • Sulphide reserves increased by 81 koz to 1.4 Moz, • Ave
Slide 20: Gwalia Reserves and Resources
Gwalia Reserves and Resources Movement between June 2016 and June 2017 Gwalia Reserves Gwalia Resources koz +15 +406 +268 koz +1,061 +316 -274 -276 2,133 5,087 1,808 3,896 June Mining Depth Geology and Modifying June June Mining Depth Additions June 2016 depletion extension design factors 2017 2016
Slide 21: Exploration | FY18 Guidance - US$12 to 16 million
Exploration | FY18 Guidance - US$12 to 16 million1 US$6 - 8 million Gwalia • Gwalia Deep Drilling + Seismic US$3 - 4 million Pinjin WA • Aircore drilling of targets identified in FY17 US$3 - 4 million PNG • Simberi Oxides/Sulphides • Tatau & Big Tabar Oxides/Sulphides Option and farm in with Newcres
Slide 22: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 26 July 2017 ‘Quarterly Report Q4 June 2017’ 21 / Denver Gold Forum 25 - 27 September 2017
Slide 23: Profitable growth options
Profitable growth options Profitable growth options Existing opportunities • Gwalia extension project, Simberi mine life review, sulphides • Exploration in WA and PNG Eyes open for opportunities • Consider sensible inorganic growth where it increases shareholder value • Systematic evaluation process
Slide 24: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Australia Greater Catalyst Gwalia Metals Tower Gwalia 7% Peel Gwalia Mining Hill Extension Mine 10%. Inorganic growth Evaluating exploration, project, development and operating assets in a range of sizes in Australia a
Slide 25: Conclusion
Conclusion • Another record year – safety, production, cash flow and low AISC • A$0.06 fully franked full-year dividend • Awards for gender diversity, wellbeing programs and ‘Digger of the Year’ • At Gwalia, Resources increased by net 1.2 Moz, Reserves increased by net 325 koz • Profitable growth op
Slide 26: Appendices
Appendices Diggers and Dealers awards presentation 9 Aug 2017 (L to R): Ian Murray, MD & CEO, Gold Road Resources Ltd ‘2017 Dealer of the Year’, Tim Netscher, Non-Executive Chairman of Gold Road Resources Ltd & St Barbara Ltd, Bob Vassie, MD & CEO, St Barbara Ltd ‘2017 Digger of the Year’ diggersnde
Slide 27: Consolidated Production, Costs (A$), Guidance Summary
Consolidated Production, Costs (A$), Guidance Summary Production Summary - Consolidated Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance FY16 FY17 FY17 FY17 FY17 FY17 FY173 FY18 Production Gwalia oz 267,166 67,118 70,925 64,916 62,098 265,057 260 to 265 koz 245 to 260 koz Simberi oz 110,286 2
Slide 28: FY17 Financial Summary (A$)
FY17 Financial Summary (A$) FY17 FY16 Change • Record underlying NPAT and cash EBITDA 1, 2 A$M 321 284 13% flow from operations • Debt free3 Underlying NPAT 1 A$M 160 127 26% • A$228 M debt repaid in FY17 Reported NPAT A$M 158 169 (7%) • A$432 M debt repaid since June Cashflow from operations 4 A$M
Slide 29: Ore Reserves Summary as at 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 Sim
Slide 30: Mineral Resources Summary as at 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 7
Slide 31: Gender Diversity
Gender Diversity • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards and Winner Company Gender Diversity Program, Victorian Women in Resources Awards • WGEA Employer Of Choice For Gender Equality in 2014, 2015 & 2016, one of three resources companies ce
Slide 32: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps 31 / Denver Gold Forum 25 - 27 September 2017
Slide 33: Gwalia Ore Reserves
Gwalia Ore Reserves Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of 30 June 2017 Ore Reserves Proved Probable 32 / Denver Gold Forum 25 - 27 September 2017 Note: For full details refer to ‘Ore Reserves and Mineral Resources Statement 30 June 2017’ released 23 August 2017
Slide 34: Gwalia Ore Reserves Grade
Gwalia Ore Reserves Grade Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of 30 June 2017 Ore Reserves Ore Reserves Grade (g/t) 4-6 6–8 8 – 10 10 – 12 >12 33 / Denver Gold Forum 25 - 27 September 2017 Note: For full details refer to ‘Ore Reserves and Mineral Resources State
Slide 35: Gwalia variance to Ore Reserves grade
Gwalia variance to Ore Reserves grade 0.4 0.2 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) 2017 Note: Totals may n
Slide 36: Predominately institutional share register
Predominately institutional share register Shareholding Structure Australia Not analysed Institutional 32% 10% 84% USA 29% Non Institutional 6% UK 17% Other 12% Not analysed 10% Note: Data as at 15 Aug 2017 35 / Denver Gold Forum 25 - 27 September 2017
Slide 37: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 9.7% Argonaut James Wilson M&G Investment Mgt 7.3% Canaccord Reg Spencer Norges Bank Investment Mgt 5.9% Citi Trent Allen Vinva 5.2% Credit Suisse Mike Slifirski Deutsche Bank Paul Young Institut
Slide 38: 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 Netscher is an experienced international mining Mr Vassie is a mining engineer with over 30 years executive with extensive
Slide 39: Executive Leadership Team
Executive Leadership Team 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 over 30 years Mr Campbell-Cowan is a Chartered
Slide 40: 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 41: 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 42: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Alistair Reid Company Secretary Manager Investor Relations T: +61 3 8660 1900 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 Vassie (MD&CEO), Tim Ric