St. Barbara Ltd. · ASX:SBM
St. Barbara — Shareholder Meeting (November 2015)
53 slides from St. Barbara's shareholder meeting presentation, Nov 27, 2015
Slide 1: Presentations to 2015 Annual General Meeting and audio webcast
ASX Release / 27 November 2015 For personal use only Presentations to 2015 Annual General Meeting and audio webcast Attached is the Chairman’s address and the Managing Director and CEO’s presentation to the 2015 Annual General Meeting in Melbourne today. A live audio webcast of the meeting will be a
Slide 2: Chairman's Address to the 2015 AGM
TIM NETSCHER, NON-EXECUTIVE CHAIRMAN ADDRESS TO THE 2015 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ST BARBARA LTD For personal use only Introduction Good morning ladies and gentlemen and welcome to St Barbara’s 2015 Annual General Meeting. As your new Chairman I am conscious of both the honour and r
Slide 3: Chairman's Address: Simberi and Gold Ridge
At the Simberi operation in Papua New Guinea we are seeing the results of our investment in capital equipment and technical capability. This operation has been producing consistently at its targeted run-rate of 100,000 ounces per year since March this year and has been generating positive cash flow
Slide 4: Chairman's Address: Strategy and outlook
critical security and local resourcing issues to be addressed, providing the new owners with the opportunity to return this asset to operation and to once again create value for its owners, the local communities and the people of the Solomon Islands. In Western Australia, we disposed of the King of
Slide 5: In conclusion
In conclusion To summarise, we have refocused the Company on its profitable assets and we have delivered a strong turnaround in financial performance with record production, improved profitability and strong cash flows. The Company has a much improved balance sheet, with the prospect of further impr
Slide 6: Managing Director & CEO Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 27 November 2015 For personal use only 2015 Annual General Meeting Managing Director & CEO Presentation
Slide 7: 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 8: Contents
Contents ˃ Safety For personal use only ˃ FY15 Outcomes ˃ Overview of Operations ˃ Organic Growth ˃ Exploration ˃ Recognition ˃ Conclusion 3/ Annual General Meeting 27 November 2015
Slide 9: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate Safety performance 12.5 ˃ TRIFR1 of 5.0 for FY15, reverted to 4.1 at 30 September 2015 ˃ Continued good results for mixed 9.0 jurisdiction underground / open pit combination 6.0 ˃ Simberi Emergency Response 5.0 Team m
Slide 10: St Barbara Emergency Response Teams: International success
St Barbara Emergency Response Teams: International success For personal use only St Barbara WA: Winners in 3 categories and overall winners, CME (WA) Eastern Regional Council 2015 Underground Mine Emergency Response Competition, held at Kanowna Belle WA, November 2015 Gwalia Gwalia –– Underground U
Slide 11: FY15 Scorecard
FY15 Scorecard Objective Result For personal use only Guidance Gwalia – production and AISC1 Exceeded Simberi – production and AISC1 Achieved – 100 koz p.a. run rate Achieved – cash flow positive by June 2015 Quarter2 Exceeded Corporate Cost reduction Achieved Board renewal Achieved Gold Ridge - div
Slide 12: FY15 Financial Summary
FY15 Financial Summary 2H FY15 FY15 FY14 For personal use only A$M A$M A$M Average gold price realised A$1,468/oz A$1,439/oz A$1,410/oz Result ˃ Statutory profit after tax 60 40 (501) ˃ Significant items 4 (3) (467) ˃ Underlying EBITDA 1 135 186 1152 ˃ Underlying EBIT 1 87 101 192 ˃ Underlying net p
Slide 13: Cash Movement FY15 – debt repayment in Q4
Cash Movement FY15 – debt repayment in Q4 300 For personal use only 275 186 - -14 -10 250 -20 -12 225 -28 Includes $67M repurchase of US Notes 200 in Q4 -71 175 A$ Million 150 125 -33 100 79 77 75 50 25 - Cash Jun Leonora Ops Simberi Ops Gold Ridge Exploration Corporate Other Net interest Other Work
Slide 14: Cash and debt
Cash and debt June 2014 June 2015 Sep 2015 Nov 2015 A$M A$M A$M A$M For personal use only forecast Cash balance 1 79 77 115 ≈952 Interest bearing debt FX3 0.9430 0.7713 0.7010 0.7239 4 ˃ US Senior Secured Notes US$ 250 196 183 181 US$ 75 75 66 46 ˃ Red Kite US$ 325 271 249 227 ˃ A$ equivalent5 A$ 33
Slide 15: Highlights: Record cash contribution
Highlights: Record cash contribution For personal use only Cash contribution by operation1 80 70 68 69 68 59 37 32 20 10 12 10 2 -5 -10 FY15 FY15 FY15 FY15 FY16 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep A$M Total Leonora Simberi Note: Simberi became cash flow positive month of December 2014. 1. Non-IFRS me
Slide 16: Share Price Reflects Turnaround
Share Price Reflects Turnaround ASX:SBM For personal use only $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 11 / Annual General Meeting 27 November 2015 Source: IRESS, close price, to 26 Nov 2015
Slide 17: St Barbara vs ASX peers – Free cash flow, Reserves, Enterprise Value
Q4 June 2015 Snapshot: St Barbara vs ASX peers – Free cash flow Sep Qtr, Reserves, Enterprise Value 2,200 Enterprise Value use only 2,000 Evolution 1,800 Northern Star 1,600 Oceana Gold 1,400 A$ M For personal 1,200 1,000 Regis 800 St Barbara 600 400 Saracen Bubble Size = FCF 200 1.0 2.0 3.0 4.0 5.0
Slide 18: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$559 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 349 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,033/oz ˃ A
Slide 19: Consolidated Gold Production
Consolidated Gold Production For personal use only 1,344 FY15 Highlights 1,042 979 FY15 AISC A$1,007/oz 798 eee 863 ˃ Record production for: ˃ Company 377 koz 111 111 ˃ Gwalia 248 koz 99 98 22 ˃ Simberi 80 koz 30 17 12 27 ˃ FY15 AISC1 A$1,007/oz 69 9 12 13 15 ˃ Gold Ridge Project sold 11 69 77 72 ˃
Slide 20: Leonora, Western Australia
Leonora, Western Australia For personal use only Gwalia Processing plant Gwalia Gwalia –– Underground Underground mining mining Truck Truck Gwalia – New Absorption Chiller Plant Underground drilling 15 / Annual General Meeting 27 November 2015
Slide 21: Gwalia: production increasing year on year
Gwalia: production increasing year on year Mined Grade ˃ FY15 AISC1 A$841/oz For personal use only (g/t Au) June 2015 8.8 8.9 8.2 8.4 Reserve grade ˃ Reserves at 30 June 20152: 6.9 6.3 9.4 g/t Au 5.3 Mt @ 9.4 g/t Au for 1.6 Moz 5.7 250 248 Range ˃ Mine life based on Ore Reserves2 230 ≈7 years 214 18
Slide 22: Developments at Gwalia in FY15
Developments at Gwalia in FY15 Absorption chiller plant: For personal use only ˃ First utilisation of this technology in mining globally ˃ Cost A$5.5 million, projected savings in power usage- $2.7 million p.a. ˃ Environmental merit award winner1 Deep HV Cable drop ˃ 1400m vertical HV cable drop – l
Slide 23: Gwalia – targeting higher production
Gwalia – targeting higher production Waste rock disposal below ground Northern abutment stopes For personal use only – three strategies Concurrent Stope filling Redundant level development 18 / Annual General Meeting 27 November 2015
Slide 24: Leonora – targeting higher production
Leonora – targeting higher production Ore Pass system For personal use only 19 / Annual General Meeting 27 November 2015
Slide 25: Simberi
Simberi For personal use only 20 / Annual General Meeting 27 November 2015
Slide 26: Simberi: Record production in FY15 and Q1 September 2015
Simberi: Record production in FY15 and Q1 September 2015 For personal use only AISC1 (A$/oz) 2,205 ˃ Record production for FY15 and in Q1 Sep 2015 of 29,359 oz ˃ Gold production for the quarter 1,619 comfortably exceeded the 100,000 oz 1,310 1,252 p.a. target run rate 1,149 ˃ Mill achieved 3.4 Mtpa
Slide 27: Simberi: Increased gold production key driver in cash flow turnaround
Simberi: Increased gold production key driver in cash flow turnaround For personal use only Gold production Simberi Cash Contribution1 FY14 & FY15 FY15 12 10 30 27 2 22 13 13 12 -5 12 11 9 -10 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 FY16 FY15 FY15 FY15 FY15 FY16 Q1 Sep Q2 Jun Q3 Mar Q4 Jun Q1 Sep Q2
Slide 28: Simberi Ore Delivery System
Simberi Ore Delivery System FEEDER For personal use only BREAKER ROPECON (CV02) 2.7km long Aerial Rope Conveyor CV03/CV10 Overland Conveyor SAG APRON FEEDER CV01 Fixed Speed Feed Conveyor CV04 / STACKER 23 / Annual General Meeting 27 November 2015
Slide 29: Organic growth: Gwalia – Deep Drilling Program
Organic growth: Gwalia – Deep Drilling Program For personal use only 24 / Annual General Meeting 27 November 2015
Slide 30: Organic growth: Gwalia Deep Drilling Program
Organic growth: Gwalia Deep Drilling Program “This is an important input into For personal use only the planned shaft study.” > Daughter holes GWDD13I and GWDD 13J have been completed > Drilling results reported to date have confirmed extensions of and the results are being analysed. Main Lode, Sout
Slide 31: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide For personal use only Simberi – Sorowar pit – 13 Aug 2015 (oxide ore being mined, exposing the sulphide wall behind) ˃ Sulphide mining at Simberi potentially extends life (15 years +) based on existing reserve, open at depth1 ˃ Simberi oxide mine life ~4 years1 ˃ Ox
Slide 32: Simberi Sulphide Study
Simberi Sulphide Study ˃ A prefeasibility study (PFS) to process sulphide ore is underway. For personal use only ˃ The plan indicates that a phased cut over to Sulphide processing, including a period of processing both sulphides and oxides would be optimal. This is due to areas of oxide reserves lyi
Slide 33: Exploration
Exploration For personal use only Exploration FY16 exploration focused on near mine resources at Gwalia and Simberi Drilling at Monun Creek, Simberi PNG 2014 Deep drill at Gwalia, Western Australia, 2015 28 / Annual General Meeting 27 November 2015
Slide 34: Exploration – focus on near mine targets
Exploration – focus on near mine targets For personal use only Exploration > FY16F spend of A$10 million > 55% Western Australia > 45% Papua New Guinea > The FY16 exploration program will largely focus on potential near-mine ore sources at Gwalia and Simberi. > The aim for FY16 is to extend the life
Slide 35: Simberi, Centenary, Pinjin projects are ongoing
Exploration Simberi, Centenary, Pinjin projects are ongoing For personal use only Centenary – significant base metal and nickel targets being drilled. Simberi Is. Group – emphasis on near mine oxide targets to extend oxide mine life. Pinjin – several gold in bedrock On nearby Big Tabar Island, targe
Slide 36: Gender Diversity - Recent Awards
Gender Diversity - Recent Awards For personal use only ˃ The overall pay equity gap at St Barbara reduced from 43% in 2007 to 11.4% 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
Slide 37: Golden Gecko Certificate of Merit
Golden Gecko Certificate of Merit ˃ St Barbara awarded a Certificate of Merit in 2015 Golden Gecko awards for Gwalia Chiller project For personal use only ˃ Golden Gecko Award is a Western Australian State Government, Department of Minerals and Petroleum, award for environmental excellence ˃ Full de
Slide 38: Waterwise Business Awards
Waterwise Business Awards (Water Corporation, WA) ˃ Over the past two years, Leonora Operation has saved approximately 28 For personal use only million litres of potable water p.a. with cash savings of nearly $250,000p.a. ˃ In recognition of the initiates to efficiently use and minimise the use of v
Slide 39: Conclusion: The year ahead
Conclusion: The year ahead ˃ Apply surplus cash from operations to further reduce debt in For personal use only advance of schedule ˃ A$91 million cash flow from operations1 in 2H FY15 ˃ US Debt reduced by US$982 million between June and November 2015 ˃ Progress opportunities within portfolio ˃ Gwal
Slide 40: Appendices
For personal use only Appendices 35 / Annual General Meeting 27 November 2015
Slide 41: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Q1 Sep Guidance Consolidated FY15 FY15 FY16 FY163 For personal use only Production Gwalia oz 76,954 57,208 72,388 230 - 250 koz (previously 220 to 250 koz) King of the Hills oz 11,836 15,014 9,112 9 koz4 Simberi oz 22,
Slide 42: Gwalia: FY16 guidance and continuous improvement
Gwalia: FY16 guidance and continuous improvement ˃ Production guidance for FY16 is 230,000 to 250,000 ounces. For personal use only ˃ FY15 result proved operational improvements can keep pace with and exceed impacts of increasing depth. ˃ Waste storage underground1 has proven to be valuable and need
Slide 43: Gold Ridge (Solomon Islands) Divestment
Gold Ridge (Solomon Islands) Divestment For personal use only RC TO UPDATE • Gold Ridge tailings storage facility, water treatment plant (blue containers) installed as part of sale agreement • Gold Ridge Project sale commitments finalised in Nov 2015 38 / Annual General Meeting 27 November 2015
Slide 44: St Barbara has strong cash generation relative to its peers
100 125 0 25 50 75 For personal use only Hidden Valley Plutonic South Kalgoorlie Casposo (A$M) Cosmo Sabodala Talang Santo Sunrise Dam Stawell Chatree Andorinhas Darlot Higginsville Kathleen Valley Telfer Siana 39 / Annual General Meeting 27 November 2015 Tucano Pajingo Edikan Edna May Youga Austral
Slide 45: Debt and hedging at June 2015
Debt and hedging at 30 June 2015 For personal use only US Senior Secured Notes ˃ US$250 million issued March 2013, US$181 million balance at 30 Nov 2015 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a., matures April 2018 ˃ US$69 million repurc
Slide 46: Debt repayment profile (US$M)
Debt repayment profile (US$M) For personal use only Payments made to date Payments scheduled US$M (to 30 Nov 2015) (from 1 Dec 2015) 325 300 275 250 225 200 175 150 125 100 181 75 50 13 2 25 54 9 20 9 19 18 0 FY14 FY15 Q1 Oct-Nov Dec Q3-4 FY17 FY18 FY16 2015 2015 FY16 Red Kite US Notes Combined Bala
Slide 47: Leonora Growth Projects – Gwalia ore delivery infrastructure
Leonora Growth Projects – Gwalia ore delivery infrastructure Indicative timeline For personal use only Dependent on drilling and FY16 FY17 FY18 FY19 FY20 findings of studies >Resource Definition Drilling H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 - SWB Phase 3 - SWB Phase 4 - ML north of SWB - West Lode >Probabl
Slide 48: Ore Reserves & Mineral Resources at June 2015
Ore Reserves & Mineral Resources at 30 June 2015 ˃ Ore Reserves & Resources reduced via production depletion and For personal use only sale of Gold Ridge Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.16 Leonora, 9.22 WA 47% Simberi, 5.16 PNG 4.02 53% FY 14 FY 15 Mineral Resources Ore R
Slide 49: Ore Reserves Summary as at June 2015
Ore Reserves Summary as at 30 June 2015 Project Proved Probable Total For personal use only Tonnes (k) Au koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t g/t Gwalia (WA) 2,100 9.1 614 3,190 9.6 980 5,290 9.4 1,594 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 3,800 1.5 178 15
Slide 50: Mineral Resources Summary as at June 2015
Mineral Resources Summary as at 30 June 2015 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 (WA) 4,781 7.2 1,112 6,112 9.3 1,833 2,036 5.5 359 12,929 7.9 3,304 King of the Hills - - - 799
Slide 51: 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 Pinjin is based on information compiled by Dr Roger Mustard, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Musta
Slide 52: 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 53: 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 48 / Annual General Meeting 27 November 2015