41 slides from St. Barbara's earnings presentation, Aug 24, 2020
Slide 1: Presentation on FY20 Financial Report and audio webcast
ASX Release / 24 August 2020 Presentation on FY20 Financial Report and audio webcast Mr Craig Jetson, MD & CEO, and Mr Garth Campbell-Cowan, Chief Financial Officer, will brief analysts and institutional investors to discuss the full year financial results at 11:00 am Australian Eastern Standard Tim
Slide 2: FY20 Financial Results Presentation
FY20 Financial Results Presentation 24 August 2020 Craig Jetson Managing Director and Chief Executive Officer Garth Campbell-Cowan Chief Financial Officer 1 / FY20 Financial Results 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 • MD & CEO update • Financial overview • Operational overview • Appendices 3 / FY20 Financial Results Presentation
Slide 5: MD and CEO Update
MD and CEO Update Craig Jetson Managing Director and Chief Executive Officer 4 / FY20 Financial Results Presentation
Slide 6: Solid performance in FY20 with a healthy growth pipeline ahead
We have shown solid performance in FY20 with a healthy growth pipeline ahead Significant free cash flow from operations Improved safety record Continued focus on productivity improvements An Employer of Choice with a caring, diverse and inclusive culture Continue to deliver shareholder returns Progr
Slide 7: We are St Barbara
We are St Barbara We are guided by our five commitments and our values-led culture Zero harm is always our target. Safety always Zero harm to all people as we responsibly operate our assets to their full potential. This focus on safety guides everything we do. Empowered people An employer of choice
Slide 8: Improved safety record and COVID-19 risk management
We have improved our safety record and have proactively managed the risks that COVID-19 presents The TRIFR of 3.0 at the end of June Total Recordable Injury Frequency Rate (TRIFR)1 FY20 corresponds to 16 low severity injuries in the last 12 months & 3 months injury free 5.0 LTIFR2 of 0.4 at the end
Slide 9: Forefront in diversity and inclusion in the minerals industry
We are at the forefront in diversity and inclusion in the minerals industry, ahead of much larger peers FY20 progress Women across our Australian workforce increased to 26% against targets Women across our PNG workforce increased to 15%, achieving 3-year target 40% of Non-Executive Directors are wom
Slide 10: Commitment to sustainable operations recognised by awards
Our commitment to sustainable operations across our people & environment has been recognised by multiple awards .. and progressed on .. leading to recognition We’ve engaged our people… environmental initiatives through awards 71% favourable engagement New climate change targets: meeting our Australi
Slide 11: Financial overview
Financial overview Financial overview Garth Campbell-Cowan Chief Financial Officer 10 / FY20 Financial Results Presentation
Slide 12: FY20 financial summary
FY20 financial summary Solid NPAT, EBITDA and cash flow from operations A$406 million cash at bank and term deposits1 (A$200 M used to reduce debt in July 2020) A$307 million debt2 (paid down to A$107 M at the end of July 2020) Fully franked final dividend of 4 cents per share (8 cents total
Slide 13: FY20 Key Financial Metrics
Solid operational and financial performance, providing St Barbara with a platform to grow FY20 Key Financial Metrics EBITDA1 (A$ M) Underlying NPAT1 (A$ M) Cash flow from operating activities (A$ M) 339 108 280 Up 23% since FY19 Down 24% since FY19 Up 16% since FY19 EBITDA Margin1 (%) EPS (Basic, A$
Slide 14: Maintained returns to shareholders since recommencing dividends in FY17
Maintained returns to shareholders since recommencing dividends in FY17 Fully franked final dividend of A$0.04 per Dividends share to be paid per ounce 154 29 September 2020 149 produced 135 (A$/oz)1 81 Dividend represents A$149 per ounce of gold produced1 Dividends 34 Cumulative dividend Cumulative
Slide 15: Annual profit comprised contributions from all three operations
Annual profit comprised significant contributions from all three operations Underlying NPAT1, A$ M 142 68 -5 12 -6 -2 108 -19 -53 -29 FY19 Profit - Profit - Profit - Exploration Corporate & Finance + FX Income tax Other FY20 Leonora Ops Simberi Ops Atlantic Ops Corp Royalties expense 14 / FY20 Finan
Slide 16: FY20 cash movement
FY20 cash movement A$ M 890 138 207 -60 406 78 -35 -46 117 -41 -35 7 -38 -776 Cash Atlantic Leonora Simberi Atlantic Growth Exploration Corporate Income Net Dividends Other Debt Cash Jun 2019 Gold Ops Ops Ops capex & Corp tax financing drawdown Jun 2020 acquisition 1 Royalties costs 15 / FY20 Financ
Slide 17: Forecasting sustained performance in FY21 across our assets
We are forecasting sustained performance in FY21 across our assets Consolidated Atlantic Gold Gwalia Simberi FY20 Production (koz) 382 1071 171 104 AISC (A$/oz) 1,369 928 1,485 1,631 FY21F Production (koz) 370 - 410 100 - 115 175 - 190 95 - 105 AISC (A$/oz) 1,360 – 1,510 955 – 1,100 1,435 – 1,560 1,
Slide 18: Operational overview
Operational overview Operational overview Craig Jetson Managing Director and Chief Executive Officer 17 / FY20 Financial Results Presentation
Slide 19: Atlantic had a record performance in FY20 post acquisition
Atlantic had a record performance in FY20 post acquisition Summary of operational & capital expenditure metrics Operational FY19 FY20 FY21F Record performance at Touquoy Production (koz) 93 1071 100 - 115 Work continues on the optimal AISC (A$/oz) 862 928 955 - 1,1002 sequencing of the suite of Atla
Slide 20: Gwalia continues to produce sustainably at lower grades
Gwalia continues to produce sustainably at lower grades Summary of operational & capital expenditure metrics Operational FY19 FY20 FY21F Record material movement achieved in Q4 FY20 supporting the delivery of full Production (koz) 220 171 175 - 190 year production guidance AISC (A$/oz) 1,027 1,485 1
Slide 21: Gwalia returning to higher levels of material movement
Gwalia returning to higher levels of material movement Summary of total material moved & mined grade Mined grade (g/t Au) 12.5 9.3 10.7 11.1 7.7 8.3 1H FY21 will prioritise development Reserve Grade1 to allow for more operational areas Total material moved 6.3 g/t Au June 2020 (kt) to support greate
Slide 22: Simberi delivered a solid FY20
Simberi delivered a solid FY20 Summary of operational & capital expenditure metrics Operational FY19 FY20 FY21F Solid production from remaining oxide reserves Production (koz) 142 104 95 - 105 AISC (A$/oz) 1,162 1,631 1,665 - 1,8401 Feasibility Study progressing to determine expansion potential Mill
Slide 23: Resources and Reserves significantly increased
Resources and Reserves significantly increased by Simberi sulphide exploration and Atlantic acquisition Resources Net +2.6 Moz due to Atlantic Gold FY19 9.6 acquisition and Simberi Sulphide update 4.8 0.6 0.9 3.3 Gwalia decreased by 389 koz due to mining and sterilisation FY20 4.4 0.60.6 3.7 2.2 11.
Slide 24: Continuing to invest in exploration with a healthy pipeline of targets
To maintain our future reserves, we are continuing to invest in exploration and have a healthy pipeline of targets Australia/PNG Atlantic Canada A$8 - $9 M Leonora regional A$10 - $12 M across four main camps in Nova Scotia: A$10 - $11 M at Pinjin, Back Creek and the JVs Touquoy, Moose River Corrido
Slide 25: FY21 transformative value improvements across the business
In FY21, we intend to drive transformative value improvements across all aspects of our business Integrated company-wide transformation project to commence Company Encompasses all aspects of our operations and capital projects Transformation Operating model to prioritise technical expertise and embe
Slide 26: Appendices
Operational overview Appendices 25 / FY20 Financial Results Presentation
Slide 27: Sustainability highlights FY20
Sustainability highlights FY20 Greenhouse gas emission targets supporting Paris 2015 Continued engagement with traditional owners and support indigenous communities Building local businesses and employment in PNG Ongoing support for gender safety including warrior program in PNG and audits
Slide 28: Snapshot of St Barbara - A global ASX 200 gold producer
Snapshot of St Barbara (SBM.ASX) - A global ASX 200 gold producer Market Market Capitalisation1 A$2.5B @ A$3.39/share Outstanding shares1 703 M Liquidity2 6 M/day (0.9%) Financial FY20 EPS3 A$0.18 St Barbara has a strong balance sheet supported FY20 total dividend A$0.08 by operational performance p
Slide 29: Consolidated production, costs and guidance summary
Consolidated production, costs and guidance summary Q1 Sep Q1 Sep Production Summary Year Q2 Dec Q3 Mar Q4 Jun Guidance Guidance FY20 FY20 FY20 Consolidated FY 19 FY20 FY20 FY20 FY20 FY21 AG full qtr AG SBM attrib. St Barbara’s financial year is Year to Qtr to Qtr to Qtr to Qtr to Qtr to Year to Yea
Slide 30: Guidance summary – exploration, capex, production profile
Guidance summary – exploration, capex, production profile Exploration Guidance FY21 A$ M FY21 Production Indicative Quarterly Guidance Profile Australia • Leonora Region 8-9 • Pinjin WA, Lake Wells WA, Back Creek NSW 10 - 11 Tabar Island Group, PNG 2-3 Nova Scotia, Canada 10 - 12 Consolidated 30 - 3
Slide 31: Increasing cash balance
Increasing cash balance A$ M 480 Entitle- 780 ment Atlantic Offer Entitle-ment (net Gold Offer proceeds) Purchase (net proceeds) 410 86 406 41 200 320 3 draw down -34 76 79 -112 -112 Q1 movement net of: Q2 movement net of: Q3 movement net of: -316 Q4 movement net of: -307 $19 M dividends $24 M tax $
Slide 32: Segment profit and cash contribution from operations
Segment profit and cash contribution from operations Leonora Simberi Atlantic Reportable segment profit before tax1 Cash contribution from operations1, 2, 3 A$ M A$ M 220 219 249 255 244 198 162 186 138 109 117 90 84 103 78 83 78 60 70 51 34 33 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 1. Re
Slide 33: Balance sheet
Balance sheet A$ M Entitlement Offer Cash Debt (net receipts) 890 480 98 343 98 161 410 406 161 206 137 -1 -107 -226 -307 -90 FY16 FY17 FY18 FY19 FY20 July 2020 32 / FY20 Financial Results Presentation Note: 2020 debt position excludes $28 M in lease liabilities, numbers may not add due to rounding
Slide 34: Ore Reserve changes 2019 to 2020
Ore Reserve changes 2019 to 2020 koz +1,878 +46 -181 -103 -187 6,005 +486 4,066 June Simberi Dec Atlantic Gwalia Simberi Atlantic Stockpile June 2019 2019 Reserve Acquisition depletion depletion depletion Additions 2020 Update 33 / FY20 Financial Results Presentation Note: For full details refer to
Slide 35: Mineral Resources changes 2019 to 2020
Mineral Resources changes 2019 to 2020 koz +2,371 +63 -389 -161 -207 11,555 +281 9,597 June Simberi Dec 19 Atlantic US$1,800 gold Gwalia Simberi Atlantic June 2019 Resource update acquisition price Atlantic depletion depletion depletion 2020 34 / FY20 Financial Results Presentation Note: For full de
Slide 36: Hedging summary as at August 2020
Hedging summary as at 24 August 2020 Volume Price Delivery Financial Year Type Delivery Announced ounces $/oz schedule FY21 18,620 A$1,809 Forward Aug to Dec 2020 Monthly 26 Oct 2018 FY21 22,000 A$1,961 Forward Aug to Dec 2020 Monthly 24 Feb 2020 1 FY21 33,682 C$1,759 Forward Aug 2020 to Feb 2021 Qu
Slide 37: Ore Reserves Summary as at June 2020
Ore Reserves Summary as at 30 June 2020 Proved Probable Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,583 8.0 409 7,824 5.9 1,483 9,407 6.3 1,892 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 38: Mineral Resources Summary at June 2020
Mineral Resources Summary at 30 June 2020 Measured Indicated Inferred Total Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Project ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 3,991 6.4 819 17,403 6.0 3,353 1,201 5.5 214 22
Slide 39: 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 40: 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 41: 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 Scheduled ASX Announcements 18 September 2020 Annual Report Notice of Annual General Meeting 21 October 2020 Q1 September 2020 Quarterly Report 40 / FY20 F