40 slides from St. Barbara's earnings presentation, Aug 26, 2015
Slide 1: Presentation on the FY15 Financial Report and Ore Reserves and Mineral Resources Statements
ASX Release / 26 August 2015 For personal use only Presentation on the FY15 Financial Report and 30 June 2015 Ore Reserves and Mineral Resources Statements Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the FY15 Financial Report and 30 June 2015 Ore Reserves
Slide 2: FY15 Financial Report Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 26 August 2015 For personal use only FY15 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 For personal use only ˃ Financial Result Highlights ˃ Safety ˃ Results ˃ Performance Comparisons ˃ Growth & Exploration ˃ Reserves & Resources ˃ Conclusion ˃ Appendices 3/ FY15 Full Year Financial Presentation Gwalia deep drilling, January 2015
Slide 5: Highlights: Full year results buoyed by strong 2H
Highlights: Full year results buoyed by strong 2H ˃ Statutory profit after tax: For personal use only ˃ Full year FY15 A$40 million profit (FY14: A$501 million loss) ˃ 2H FY15 statutory profit after tax of A$60 million1 ˃ Underlying net profit after tax2: ˃ FY15 A$42 million profit (FY14: A$34 milli
Slide 6: FY15 Scorecard
FY15 Scorecard Objective Result For personal use only Guidance Gwalia – production and AISC1 Exceeded Simberi – production and AISC1 Achieved – 100 koz p.a. run rate Achieved – cash flow positive by June Quarter2 Exceeded Corporate Cost reduction Achieved Board renewal Achieved Gold Ridge - divestme
Slide 7: Overview of operations
Overview of operations Simberi Simberi For personal use only ˃ Open pit mine ˃ FY15 production 80 koz Leonora ˃ FY16F production 90 – 110 koz ˃ Gwalia ˃ Potential for long underground mine life sulphide mine Australia ˃ FY15 production ˃ Near mine targets 248 koz Leonora for exploration ˃ FY16F prod
Slide 8: Relentless focus on safety
Relentless focus on safety For personal use only Total Recordable Injury Frequency Rate2 Safety performance 14.8 ˃ TRIFR1 of 5.0 at 30 June 2015 12.5 11.1 ˃ Continued good results for mixed jurisdiction underground / open 9.0 pit combination ˃ TRIFR has plateaued due to a number of low 6.0 4.9 sever
Slide 9: FY15 Results: Operational Highlights
FY15 Results: Operational Highlights AISC (Consolidated) (A$/oz) For personal use only 1,344 1,042 FY15 Highlights 979 FY15 AISC A$1,007/oz 798 ˃ Record production for: ˃ Company 377 koz Production 98 (koz) ˃ Gwalia 248 koz 99 98 22 ˃ Simberi 80 koz 17 27 91 12 12 ˃ Simberi production exceeded 13 15
Slide 10: Key changes to underlying profit/(loss) in FY15
Key changes to underlying profit/(loss)1 in FY15 70 11 -4 For personal use only 60 -3 -3 3 -7 50 8 42 40 40 30 20 A$ Million 10 -34 31 - (10) (20) (30) (40) FY14 Leonora - Simberi - Exploration Corporate D&A Finance + FX Income tax Royalties Other FY15 increase in turnaround expense profit to profit
Slide 11: FY15 Financial Summary
FY15 Financial Summary 2H FY15 FY15 FY14 A$M A$M A$M For personal use only Average gold price realised A$1,468/oz A$1,439/oz A$1,410/oz Result ˃ Statutory profit after tax 60 40 (501) ˃ Significant items 4 (3) (467) ˃ Underlying EBITDA 1 135 186 1152 ˃ Underlying EBIT 1 87 101 192 ˃ Underlying net p
Slide 12: Significant items in net profit after tax
Significant items1 in net profit after tax For personal use only 80 18 -19 70 60 6 -2 2 -14 11 50 42 40 A$ Million 40 30 20 10 - FY15 NPAT Asset Rehab Foreign Discontinued Borrowing Other Tax effect FY15 impairments provision exchange operations costs Underlying NPAT[1] 11 / FY15 Full Year Financial
Slide 13: FY15 financial highlights (continued)
FY15 financial highlights (continued) FY15 FY14 For personal use only A$M A$M Investment in operations ˃ Capital expenditure 48 892 ˃ Exploration expenditure 10 21 June 2015 Jun 2014 Cash & debt ˃ Cash balance 1 77 79 ˃ Interest bearing debt ˃ US Senior Secured Notes US$196 M (2014: $250M) and Red K
Slide 14: Cash movement FY15
Cash movement FY15 300 For personal use only 275 186 - -14 -10 250 -22 225 -10 Includes $67M -28 repurchase of US Notes in Q4 200 -71 175 A$ Million 150 125 -33 100 79 77 75 50 25 - Cash Jun Leonora Ops Simberi Ops Gold Ridge Exploration Corporate Other Net interest Other Working Cash Jun 2014 Ops (
Slide 15: Gwalia: FY15 - Step up in cash generation
Gwalia: FY15 - Step up in cash generation Gwalia Production and AISC1 Leonora Cash Contribution2 For personal use only last 4 quarters last 8 quarters AISC 1,086 (A$/oz) 865 883 860 68 FY15 AISC A$841/oz 59 645 Production 77.0 (koz) 45 68.6 59.4 57.2 37 45.4 30 28 20 20 FY 14 FY 15 FY 15 FY 15 FY 15
Slide 16: FY15 Redefining cash generation
FY15 Redefining cash generation Simberi Cash Contribution1 All-in-sustaining-cost2 Q4 For personal use only last 4 quarters Gwalia, Simberi & St Barbara 2,205 vs comparator companies AISC (A$/oz) 1,619 1,389 1,362 1,421 1,310 1,149 1,172 1,149 1,112 1,048 979 10 860 2 -5 A$M -10 A$/oz FY15 FY15 FY15
Slide 17: Comparison – Second half cash flow and Enterprise Value
Comparison – Second half cash flow and Enterprise Value Second half ‘AISC Cash Flow’ Second half ‘AISC Cash For personal use only vs comparator companies Flow’ as a % of EV vs comparator companies 26% 135 139 107 110 12% 11% 11% Northern Star Oceana Gold Evolution St Barbara Northern Star Oceana Gol
Slide 18: Comparison: Second half cash flow, production, margin
Comparison: Second half cash flow, production, margin St Barbara versus comparator companies Second half: AISC cash flow, production, AISC margin For personal use only 350 Bubble Size = 2H AISC Cash Flow 300 2H FY15 Production (koz) Northern Star 250 St Barbara Evolution 200 Oceana Gold 150 100 400
Slide 19: Growth & Exploration
For personal use only Growth & Exploration 18 / FY15 Full Year Financial Presentation
Slide 20: Organic growth: Gwalia Deep Drilling Program
Organic growth: Gwalia Deep Drilling Program “This is an important input into the planned shaft study.”1 For personal use only > Drilling has been completed on a third daughter hole from the original parent hole (GWDD16) > Drill hole intersected three significant mineralised veins, interpreted to re
Slide 21: Exploration: Future Gwalia – Schematic Lode Plan View
Exploration: Future Gwalia – Schematic Lode Plan View For personal use only 1. For full explanation and results refer to ASX release 20 / FY15 Full Year Financial Presentation 21 July 2015 ‘Quarterly Report June 2015’
Slide 22: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide ˃ Sulphide mining at Simberi potentially extends life For personal use only (15 years +) based on existing reserve, open at depth1 ˃ Simberi oxide mine life ~4 years1 ˃ Oxide ores are the weathered shell of underlying, much larger sulphide deposits oxide mining pre-
Slide 23: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide For personal use only Simberi – Sorowar pit – 13 Aug 2015 (oxides ores being mined, exposing the sulphide wall behind.) Schematic showing a theoretical oxide/sulphide pit design Ultimate pit design Green – oxides Blue – sulphides 22 / FY15 Full Year Financial Presen
Slide 24: 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 25: Exploration: Simberi, Centenary, Pinjin projects are ongoing
Exploration Simberi, Centenary, Pinjin projects are ongoing For personal use only Centenary – significant base metal targets being drilled. Simberi – emphasis on near mine oxide targets to extend oxide mine life. Pinjin – promising gold zone, (in same formation as Carosue Dam) historically underexpl
Slide 26: 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 27: Major variances to Ore Reserves FY14 to FY15
Major variances to Ore Reserves FY14 to FY15 1 koz For personal use only 6,000 5,165 5,000 -673 4,003 4,000 -426 -60 -3 3,000 2,000 1,000 0 June Divestment of Gold Depletion through Design changes* King of the Hills June 2014 Ridge Operation mining and processing Closure 2015 of stockpiles * Changes
Slide 28: Major variances to Mineral Resources FY14 to FY15
Major variances to Mineral Resources FY14 to FY151 koz For personal use only 14,000 13,161 12,000 10,000 -3,175 9,223 -426 -80 -4 -254 8,000 6,000 4,000 2,000 0 June Gold Ridge Depletion through Sterilisation of non- Revised geological Revised geological June 2014 Divestment mining and recoverable m
Slide 29: King of the Hills + Kailis divestment
King of the Hills + Kailis divestment ˃ Sale of King of the Hills mine and Kailis resource announced For personal use only 20 August 20152 ˃ Consideration for the sale is $3 million, with $0.3 million payable on completion ˃ On completion of the sale the rehabilitation provision of $14 million1 rela
Slide 30: Summary – Strong results of 2H are representative for future
Summary – Strong results of 2H are representative for future ˃ Second Half of FY15 strong results for whole group For personal use only ˃ Leonora cash contribution growth: $127 million in 2H FY15 ($123 million in whole of FY14) ˃ Simberi Q4 AISC2 better than many ASX gold companies, Simberi run rate
Slide 31: Appendices
For personal use only Appendices 30 / FY15 Full Year Financial Presentation
Slide 32: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance For personal use only Consolidated FY15 FY15 FY15 FY15 FY15 FY15 [3] FY16 Production Gwalia oz 45,391 68,589 76,954 57,208 248,142 235 – 240 koz 220 - 250 koz King of the Hills oz 1
Slide 33: Results: Cash and debt at June 2015
Results: Cash and debt at 30 June 2015 Cash at 30 June 2015 of A$77 million1 For personal use only Interest bearing debt of A$347 million, comprising: ˃ US$1962 million Senior Secured Notes ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a., matu
Slide 34: 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 35: 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 36: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure For personal use only Institutions UK, 21% 69% Private, 13% Australia, 36% Unallocated/ not analysed, USA, 15% 18% Europe, 5% Other / not analysed, 1% Asia, 3% Analysis and geographic spread of Top 100 Shareholders as at 30 July 2015
Slide 37: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Canaccord Reg Spencer Hunter Hall 15% M&G Investment Mgt 13% Deutsche Bank Matthew Hocking Franklin Resources Inc 7% Petra Capital David Cotterell Institutional Shareholders 1 69
Slide 38: 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 39: 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 40: 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 39 / FY15 Full Year Financial Presentation