St. Barbara Ltd. · ASX:SBM
St. Barbara — 25th Denver Gold Forum 2014
42 slides from St. Barbara's conference presentation, Sep 15, 2014
Slide 1: Presentation to Denver Gold Forum (ASX Release)
ASX Release / 15 September 2014 For personal use only Presentation to Denver Gold Forum Bob Vassie, Managing Director and CEO, will present to the Denver Gold Forum in Colorado, USA, at 5:30pm Denver time (UTC -6 hours) on Tuesday 16 September 2014 (9:30am Melbourne time (UTC +10 hours) on Wednesday
Slide 2: St Barbara – Australia/Pacific Gold Producer
BOB VASSIE, MANAGING DIRECTOR & CEO / 16 September 2014 For personal use only 25th Denver Gold Forum St Barbara – Australia/Pacific Gold Producer
Slide 3: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“the Company”). The material Investors are cautioned not to place undue reliance on such statements. contained in this presentation is for information purposes only. This presentation is not an This p
Slide 4: Contents
Contents ˃ Safety For personal use only ˃ Overview of operations ˃ Leonora, Australia ˃ Simberi, Papua New Guinea ˃ Gold Ridge, Solomon Islands ˃ Exploration ˃ FY15 Outlook ˃ Conclusion ˃ Appendices 3/ 25th DENVER GOLD FORUM / 16 September 2014
Slide 5: Significant improvement in safety in FY14
Significant improvement in safety in FY14 For personal use only Total Recordable Injury Frequency Rate1 14.8 Improving safety performance 12.5 11.1 ˃ FY14 TRIFR1 of 4.1 at June 2014 is a significant improvement on 6.0 at June 2013 9.0 ˃ It is an outstanding result for a combination of underground an
Slide 6: Overview of operations
Overview of operations Simberi For personal use only Simberi ˃ Low strip ratio open pit mine Leonora Gold Ridge ˃ Target annualised ˃ Two underground mines: Solomon production 100 koz ˃ Gwalia Mine Islands ˃ Near mine targets for FY15F production: exploration 180 - 200 koz, estimated mine life 9+ Go
Slide 7: St Barbara – Significant ASX mid tier gold producer
St Barbara – Significant ASX mid tier gold producer For personal use only FY14 Actual Gold Production (koz) koz 500 400 300 200 100 0 1 OceanaGold Evolution Independence St Barbara Regis Northern Star Silver Lake Kingsgate Saracen Minerals Source: Deutsche Group Services Pty Limited, Natural Resourc
Slide 8: Highest Ore Reserves of ASX mid tier gold producers
St Barbara – Highest Ore Reserves of ASX mid tier gold producers 2014 Ore Reserves and Mineral Resources (Moz) For personal use only Moz 18 16 14 12 10 8 6 4 2 0 1 St Barbara OceanaGold Kingsgate Independence Evolution Regis Saracen Northern Star Silver Lake Minerals Reserves (Moz) Resources (Moz) S
Slide 9: Rebuilding St Barbara: Focus on cornerstone Leonora assets
Rebuilding St Barbara Focus on cornerstone Leonora assets ˃ Leonora Operations – Gwalia mine For personal use only ˃ High grade, low cost, reliable cash margins ˃ FY15F 180 – 200 koz gold production ˃ 9+ year mine life ˃ Mine life extension potential at depth ˃ Leonora Operations –King of the Hills
Slide 10: Rebuilding St Barbara: Focus on Simberi turnaround
Rebuilding St Barbara Focus on Simberi turnaround ˃ Significant turnaround continuing at For personal use only Simberi, PNG ˃ Capital largely already invested ˃ Focus on improving whole value chain to lift production and lower unit costs ˃ Anticipated to be cash positive by June Quarter 2015 ˃ Stron
Slide 11: Focus on cash management
Focus on cash management ˃ At 30 June 2014 For personal use only ˃ A$81 million cash 1 ˃ Total Debt of A$340 million2 ˃ Leonora – continuous improvement ˃ Simberi – forecast cash flow positive by June Quarter 2015 ˃ Gold Ridge – expenditure minimised, negotiating transfer to SI Govt ˃ Exploration ex
Slide 12: Leonora Operations, Australia
For personal use only Leonora Operations, Australia High performing mining operations underpinning Company cash generation 11 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 13: Gwalia – independently rated as one of the best gold mines in the ASX
Gwalia – Independently rated as one of the best gold mines in the ASX ASX underground gold mines – Reserves and Reserve Grade For personal use only Source: Argonaut Research, Perth, 27 August 2014 12 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 14: Gwalia, Leonora Operations – cornerstone asset
Gwalia, Leonora Operations - cornerstone asset & reliable cash margin generator ˃ Reliable, sustainable production For personal use only ˃ FY13: 183 koz ˃ FY14: 214 koz @A$940/oz AISC1 ˃ FY15F: 180 - 200 koz ˃ Low costs, high grade, high cash margins ˃ 9+ year mine life based on current Ore Reserves
Slide 15: Future Gwalia – Drilling Plan (Long Section View)
Future Gwalia – Drilling Plan (Long Section View) For personal use only Potential Shaft shaft location New parent and daughter holes 1,550mbs 1,800mbs Target area 2,200mbs 14 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 16: Future Gwalia – Drilling Plan (Cross Section View)
Future Gwalia – Drilling Plan (Cross Section View) For personal use only Potential Shaft shaft location New parent and daughter holes 1,800mbs Target area 2,200mbs 15 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 17: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea For personal use only 16 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 18: Simberi Operations, Papua New Guinea
Simberi Operations, Papua New Guinea ˃ Potential long term, cash generating gold operation For personal use only ˃ Substantial past capital expenditure provides base for turnaround ˃ New low hour mining fleet achieving required mining rates ˃ Plant expansion SAG Mill circuit operating ˃ Improvement
Slide 19: Simberi Sulphide Project
Simberi Sulphide Project ˃ Simberi sulphide Ore Reserve as at 30 June 2014: For personal use only ˃ 19.9 Mt@ 2.0 g/t Au for 1.3 Moz contained gold ˃ 2011 PFS used as basis for Ore Reserve ˃ Recommended onsite roasting ˃ Brownfield project with infrastructure in place (mills, power, etc) ˃ Independen
Slide 20: Gold Ridge, Solomon Islands
Gold Ridge, Solomon Islands ˃ Operations suspended For personal use only ˃ Negotiations underway for potential transfer to Solomon Islands Government 19 / 25th DENVER GOLD FORUM /16 September 2014
Slide 21: Focused Exploration – Leveraging value from current operations
Focused Exploration – Leveraging value from current operations For personal use only 20 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 22: FY15 Exploration focus on adding to near mine resources
FY15 Exploration focus on adding to near mine resources Exploration expenditure FY15F A$8 million Simberi For personal use only ˃ Monun Creek near ˃ FY15F exploration at Gwalia and Simberi mine oxide target ˃ FY14 Exploration expenditure Tabar Island Group close to processing of A$21 million fully e
Slide 23: Exploration: Tatau and Big Tabar Island
For personal use only Exploration: Tatau and Big Tabar Island ˃ Simberi Island ˃ Focus on drilling Monun Creek Oxide target which is within trucking distance to the processing plant. ˃ Big Tabar Island ˃ Historic drilling has identified potential copper- gold porphyry target ˃ Possible Joint Venture
Slide 24: Ore Reserves & Mineral Resources at June 2014
Ore Reserves & Mineral Resources at 30 June 2014 % of Ore Reserves ˃ Total Proved and Probable Ore Reserves For personal use only 69.1 Mt @ 2.3 g/t Au for 5.16 Moz1 ˃ Gwalia Ore Reserves increased after depletion Leonora, WA Simberi, to 7.3 Mt @ 8.2 g/t Au for 1.91 Moz Papua 44% New ˃ Represents ind
Slide 25: FY15 Outlook
FY15 Outlook For personal use only 24 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 26: Returning the business to positive cash flows
Returning the business to positive cash flows ˃ Leonora: high quality, cornerstone asset For personal use only ˃ Gwalia mine is a high grade, low cost, reliable cash producer ˃ FY15F 240-270 koz gold production ˃ 9+ year mine life with sustaining capex ˃ Depth potential planned for testing with deep
Slide 27: Returning the business to positive cash flows
Returning the business to positive cash flows ˃ Exploration For personal use only ˃ Reduction in exploration expenditure (FY14 $21m; FY15F $8m) ˃ FY15 exploration focused on near mine resources at Gwalia and Simberi ˃ Corporate ˃ Focus on cash generation and rebuilding Company performance ˃ Corporat
Slide 28: Appendices
For personal use only Appendices 27 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 29: Gwalia – Schematic plan of Mine Sequence
Gwalia – Schematic plan of Mine Sequence For personal use only 28 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 30: Gwalia Southwest Branch – Ounce / Depth Profile
Gwalia Southwest Branch – Ounce / Depth Profile For personal use only Deep drilling planned 29 / 25th DENVER GOLD FORUM / 16 September 2014
Slide 31: Exploration: recent Simberi and Tatau Islands results
Exploration: recent Simberi and Tatau Islands results Simberi Island For personal use only ˃ Results obtained from a diamond drilling program at Monun Creek include1: SDH317: ˃ 22m @ 2.9 g/t Au from 1m (including 11m @ 4.5 g/t Au from 8m) ˃ 23m @ 1.0 g/t Au from 28m SDH318: ˃ 19m @ 1.4 g/t Au from 2
Slide 32: Finance
Finance ˃ Total Debt of A$340 million at 30 June 2014 comprises For personal use only ˃ US$250 million Senior Secured Notes (5 year term maturing April 2018, no amortisation, coupon 8.875% p.a.) ˃ US$75 million Red Kite debt facility (amortises over 8 quarters from March 2015, interest rate (current
Slide 33: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutions 62% UK, 26% Private 8% Australia, 16% USA, 17% Europe, 7% Asia, 5% Unallocated / not analysed Other / not analysed, 30% 26% Analysis and geographic spread of Top 100 Shareholders as at 30 July 2014
Slide 34: Board of Directors
Board of Directors Bob Vassie For personal use only S J Colin Wise Chairman – Non Executive Managing Director and CEO Appointed 2004 Appointed July 2014 Mr Wise is an experienced corporate lawyer, consultant and Mr Vassie is a mining engineer with 29 years international company director with signifi
Slide 35: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Managing Director and CEO Chief Financial Officer For personal use only Appointed 2014 Joined 2006 Mr Vassie is a mining engineer with 29 years international Garth is a Chartered Accountant with over 25 years mining industry experience, inclu
Slide 36: Significant shareholders & broker coverage
Significant shareholders & broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Hunter Hall Investment Mgt 9% Canaccord Luke Smith M&G Investment Mgt 7% Deutsche Bank Chris Terry Baker Steel Capital Managers 7% Evans and Partners Cathy Moises Ord Minnett David Br
Slide 37: Mineral Resources Summary as at June 2014
Mineral Resources Summary as at 30 June 2014 Mineral Resources are inclusive of Ore Reserves For personal use only and Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 36 / 25th DENV
Slide 38: Ore Reserves Summary as at June 2014
Ore Reserves Summary as at 30 June 2014 For personal use only and 1 2 Refer ASX announcement released 27 August 2014 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2014’ available at www.stbarbara.com.au for full details. 1. Includes 1.3 Moz ounces of gold in sulphide ore 2. Gold Ridg
Slide 39: Gwalia cooling upgrade project
Gwalia cooling upgrade project ˃ Deeper mining challenges Trigenration (New Concept) To Cooling Tower For personal use only capacity of existing cooling and 32 c ventilation plants – without Exhaust from Engine 7c Multi energy Chilled Water upgrade increasing depth would VAM 12 c lead to decreasing
Slide 40: Competent Persons Statement
Competent Persons Statement For personal use only Exploration Results The information in this presentation that relates to Exploration Results is based on information compiled by Dr Roger Mustard, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full-time emplo
Slide 41: 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 42: 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 41 / 25th DENVER GOLD FORUM / 16 September 2014