St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (April 2012)
43 slides from St. Barbara's roadshow presentation, Apr 26, 2012
Slide 1: Presentation to International Analysts and Investors
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only Presentation to International Analysts and Investors Attached is a presentation
Slide 2: About St Barbara Limited
About St Barbara Limited St Barbara was established in 1969, and is one of Australia’s most profitable ASX listed gold produces and explorers. St Barbara has three mines and two processing plants, at Leonora and Southern Cross, in the For personal use only 2 Eastern Goldfields region of Western Aust
Slide 3: Proven Performance, Creating Value
For personal use only Proven Performance, Creating Value Tim Lehany, Managing Director & CEO International Roadshow April - May 2012 1
Slide 4: Forward statements
Forward statements For personal use only This presentation has been prepared by St Barbara Limited (“Company”). The This presentation has been prepared by the Company based on information material contained in this presentation is for information purposes only. This available to it and has not been
Slide 5: Outline
Outline For personal use only • St Barbara at a glance • Proven performance • Gwalia - underpinning future performance • Exploration – creating upside opportunities • What to expect • Appendices Proven Performance, Creating Value April-May 2012 3
Slide 6: St Barbara at a glance
St Barbara at a glance For personal use only • Australian gold producer and explorer • Two operations, three mines • Proven development and operations credentials • FY 12 production guidance 320,000-350,000 ounces • Ore Reserves 2.8 Moz (14.7 Mt @ 5.8 g/t Au) contained gold [1] • Gwalia Mineral Reso
Slide 7: Proven performance
For personal use only Proven performance Proven Performance, Creating Value April-May 2012 5
Slide 8: Proven performance – translating production into profit
Proven performance – translating production into profit For personal use only Gold Production Underlying Profit Per Ounce [1] +64% 346 FY 08 to FY 11 1H only 258 211 239 231 63 157 154 1 1H only -186 FY 08 FY 09 FY 10 FY 11 1H 1H FY 08 FY 09 FY 10 FY 11 1H 1H FY FY 12 12 FY 12 FY 12 koz A$M Financia
Slide 9: Delivering value per share
Delivering value per share For personal use only EPS Cash Flow From Operations Per Share $0.38 $0.36 $0.29 $0.21 $0.26 1H $0.14 only 1H only $0.11 -$0.14 FY 10 FY 11 1H FY 12 F* FY 12 FY 09 FY 10 FY 11 1H A$ FY 12 * IRESS broker consensus 23 Apr 12 A$ Shares adjusted for 6:1 consolidation Nov 2010 S
Slide 10: Strong cash position
Strong cash position For personal use only • Net cash backing per share A$0.41 [1] Cash & Debt • Almost no debt [1] 137 • debt to equity ratio < 1% [1] • Gross tax losses A$342M [2], not expecting to pay tax for FY12 and FY13 79 • Ability to fund exploration and potential development projects from c
Slide 11: Gwalia Mine: high quality
For personal use only Gwalia Mine: • high quality • 8+ g/t Au [1] • 10+ year life [2] [1] At 30 June 2011, Ore Reserves of 6.9 Mt @ 8.9 g/t Au containing 2.0 Moz of gold. [2] Based on Ore Reserves at 30 June 2011. Proven Performance, Creating Value April-May 2012 9
Slide 12: Gwalia Mine, Leonora - high quality, long life, rich gold deposit
Gwalia Mine, Leonora - high quality, long life, rich gold deposit For personal use only • Ore Reserves of 6.9 Mt at 8.9 g/t Au containing 2.0 Moz of gold [1] • Mineral Resources extended to 1,840 mbs, open to north, south and at depth • Indicative 10+ year mine life based on Ore Reserves • Forecast
Slide 13: Gwalia at depth
Gwalia at depth FY12 drilling program and results For personal use only 11 Proven Performance, Creating Value – April – May 2012
Slide 14: Growing value in the business
For personal use only Growing value in the business Proven Performance, Creating Value April-May 2012 12
Slide 15: Increasing exploration activity – targeting new discoveries
Increasing exploration activity– targeting new discoveries to leverage value For personal use only • Drilling for new discoveries • Over 5,000 km2 of prospective land • 10 targets planned to be drilled in 2H FY 12 Exploration 22 22 Total Total 12 11 Drilling Drilling FY 11 A$M FY 12 F Proven Perform
Slide 16: Regional strategies to leverage value: Leonora
Regional strategies to leverage value from existing infrastructure For personal use only Leonora • King of the Hills successfully developed • Near mine and regional exploration for more options • Focus on Greater Gwalia Area Proven Performance, Creating Value April-May 2012 14 14
Slide 17: Gwalia region structural geology
Gwalia region structural geology For personal use only • Structural geology Drill targets Savannah review identified Open pit Harbour Lights outlines prospective targets close to Gwalia N Tower Hill • Drilling of priority targets planned in Gwalia Footwall FY 12 (subject to Leonora Central permits)
Slide 18: Regional strategies to leverage value: Southern Cross
Regional strategies to leverage value from existing infrastructure For personal use only Southern Cross • Net cash generator • Focus on building optionality • Strategic options being evaluated Proven Performance, Creating Value April-May 2012 16 16
Slide 19: Frasers (Southern Cross)
Frasers (Southern Cross) Initial Mineral Resource estimate underway For personal use only Proven Performance, Creating Value April-May 2012 17
Slide 20: Exploration at East Lachlan, NSW
Exploration at East Lachlan, NSW -targeting copper-gold porphyry deposits For personal use only • Large and prospective land position • Encouraging results from first drilling program, may indicate being proximal to a potential infusion-related copper-gold system • Follow-up detailed gravity surveys
Slide 21: Strength across the value chain
Strength across the value chain For personal use only Exploration • 515,000 oz increase in Gwalia Mineral Resources in FY11 • $22M exploration spend in FY12 Reserves • 10 years Ore Reserves at Gwalia (6.9 Mt @ 8.9 g/t Au containing 2.0 Moz Au) [1] Development • Gwalia deep underground mine expertise
Slide 22: Strong growth in cash continues
Strong growth in cash continues For personal use only • Net cash up $67 million from June 2011, to $134 million at March 2012 • Cash balance of $137 million, debt of $3 million • Net cash backing per share up 24% (Q3 on Q2) • $0.41 per share at 31 March 2012 • On market share-buy back facility activ
Slide 23: What to expect
What to expect For personal use only • Increased profitability and cash generation • Delivery of Company’s FY 12 Guidance • Disciplined capital management • On market share buy back implemented • Cash resources available to generate shareholder value • Creation of value opportunities • Leonora hoist
Slide 24: Appendices
Appendices For personal use only Proven Performance, Creating Value April-May 2012 22
Slide 25: FY12 guidance
FY12 guidance As at April 2012 For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora S’thn Cross Gold koz 175-190 55-60 90-100 320-350 production Cash operating 1,170 $/oz 650-660 710-750 790-830 cost -1,220 Capex $M 55-60* 20-25 10-15 85-100 * Includes $12.6M of one off c
Slide 26: Board and management – experienced, talented, capable
Board and management – experienced, talented, capable For personal use only Experienced, independent Board • 6 directors • Extensive mining and public company experience • Mining, exploration, legal, financial expertise Experienced, capable management team • Revitalised team under new MD&CEO appoint
Slide 27: Board of Directors
Board Boardof Directors of Directors For personal use only S J Colin Wise Phillip C Lockyer Chairman – Non Executive Director– Non Executive Mr Wise is an experienced corporate lawyer, consultant Mr Lockyer is an experienced mining engineer and and company director with significant expertise in the
Slide 28: Executive Management
Executive Management Executive management For personal use only Tim Lehany Ross Kennedy Managing Director Executive General Manager Corporate and Chief Executive Officer Services/Company Secretary Tim joined St Barbara in March 2009, and has over 20 years Ross has been with St Barbara since 2004. He
Slide 29: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only Leonora Operations Southern Cross Operations Ore Reserves: Ore Reserves: 11.2 Mt @ 7.0g/t Au for 2.5 Moz1,2 3.5 Mt @ 2.1g/t Au for 233 koz1 Mineral Resources: Mineral Resources: 27.0 Mt @ 6.2g/t Au for 5.4 Moz1
Slide 30: Gwalia mining strategy
Gwalia mining strategy Dual Lift Stoping in SWB – mining sequence manages the hanging wall For personal use only FY11 2 1 5 4 3 Note: Single lift Hanging 8 Wall Span typically 32m (HR=6.15) 7 Development 6 fully in ore (no 11 Cross section dilution) Proven Performance, Creating Value April-May 2012
Slide 31: Gwalia
Gwalia For personal use only Gold Production • Mine performance in line with 46 expectations 44 39 40 • Annualised haulage rates 34 exceed forecast 700 ktpa • Processing recovery consistently at 97% • Q3 mining activity included developing the 1380 level, resulting in lower tonnes mined • Anticipate
Slide 32: Gwalia - endowment and grade increase at depth
Gwalia -endowment and grade increase at depth For personal use only oz/vm ORE RESERVES - Ounces per Vertical Metre Grade g/t Au C7000 20 u C ru 18 rr 6000 e r 16 n e tn 5000 Currently 14 lt y mining at l 1300mbs 12 y m4000 im Limited n drilling data 10 i in3000 n i 8 g n g2000 6 a FY12 ta Production
Slide 33: Production and reserves growth
Production and reserves growth For personal use only Reserves and Production 3,069 2,906 2,756 2,574 2,300 Reserves koz 335 [at year end] 258 239 231 Production koz [for year] 171 157 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 F* 515,000 ounces of Indicated and Inferred Resources added in FY11 at Gwalia be
Slide 34: Long life, high grade reserves
Long life, high grade reserves For personal use only 5,000 koz 7 6 4,000 5 3,000 4 3 2,000 2 1,000 1 0 0 Based on most recently disclosed company filings as at 10 February 2011 Proven Performance, Creating Value April-May 2012 32
Slide 35: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Top 100 Shareholding Structure Australia, 31% Private 7% USA, 30% Unallocated / not analysed 9% UK, 22% Institutions Europe, 3% 84% Asia, 3% Other / not analysed, 11% Analysis and geographic spread of Top 100 Shareholder
Slide 36: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Significant Shareholders [1] Broker Research Coverage Argonaut Securities Troy Irvin M&G Investment Mgt 18.1% Baillieu Ray Chantry Franklin Resources 6.0% Bell Potter Stephen Thomas Van Eck Associates 5.1% Citi Craig Sai
Slide 37: Mineral Resources Statement
Mineral Resources Statement As at 30 June 2011* For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Tonnes Gold Grade Contained Gold Gold Gold Gold kt Au g/t koz kt Au g/t koz kt Au g/t ko
Slide 38: Ore Reserves Statement
Ore Reserves Statement As at 30 June 2011* For personal use only Region Category Proved Probable Total Tonnes Gold grade Gold Tonnes Gold grade Gold Tonnes Gold grade Gold Project kt Au g/t koz kt Au g/t koz kt Au g/t koz Leonora Gwalia Deeps 2,015 7.1 460 4,902 9.6 1,512 6,917 8.9 1,973 Tower Hill
Slide 39: Competent Persons Statement
Competent Persons Statement For personal use only References to Mineral Resources and exploration results presented in References to Ore Reserves presented in this document have been this document have been produced in accordance with The Australasian produced in accordance with The Australasian Cod
Slide 40: Non-IFRS Measures
Non-IFRS Measures For personal use only 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 and underlying net profit after tax. We believe tha
Slide 41: Non-IFRS Measures
Non-IFRS Measures For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 NPAT to Underlying NPAT [1] A$000 A$000 A$000 A$000 A$000 Sales revenue 249,315 359,575 172,950 296,760 281,129 EBITDA (including significant items) 88,937 125,190 67,146 33,793 39,701 EBIT (including significa
Slide 42: Non-IFRS Measures
Non-IFRS Measures For personal use only 31 Dec 11 30 Jun 11 31 Dec 10 30 Jun 10 30 Jun 09 Significant items [1] A$000 A$000 A$000 A$000 A$000 Net fair value gains/(losses) on gold options (7,464) 12,946 9,641 (19,513) 1,515 Realised gain on derivates 635 525 - - - Profit on sale of Tarmoola processi
Slide 43: Investor Relations Enquires
Investor Relations Enquires For personal use only Ross Kennedy Executive General Manager Corporate Services E: ross.kennedy@stbarbara.com.au Rowan Cole General Manager Corporate Services E: rowan.cole@stbarbara.com.au T: +61 3 8660 1900 www.stbarbara.com.au ASX: SBM Proven Performance, Creating Valu