St. Barbara Ltd. · ASX:SBM
St. Barbara — H1 FY2016 Earnings Presentation
37 slides from St. Barbara's earnings presentation, Feb 23, 2016
Slide 1: Presentation on the December 2015 Half Year Financial Report and webcast
ASX Release / 23 February 2016 For personal use only Presentation on the December 2015 Half Year Financial Report and webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the December 2015 Half Year Financial Report at 10:00 am Australian Eastern Daylight T
Slide 2: December 2015 Half Year Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 23 February 2016 For personal use only December 2015 Half Year 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 ˃ Headlines ˃ Safety ˃ Production ˃ Financial result highlights ˃ Cash, debt, hedging ˃ Organic growth ˃ Simberi strategic review ˃ Conclusion ˃ Appendices 3/ December 2015 Half Year Presentation Rainbow over Simberi processing plant, January 2016
Slide 5: 1H FY16 Headlines: Record 1H profit and cash flow
1H FY16 Headlines: Record 1H profit and cash flow ˃ Statutory profit after tax $77 million For personal use only ˃ Up 28% on 2H FY15 of $60 million ˃ Underlying net profit after tax1 $60 million ˃ Up 40% on 2H FY15 of $43 million ˃ Cash flow from operations $123 million ˃ Up 35% on 2H FY15 of $91 mi
Slide 6: St Barbara share price performance
St Barbara share price performance ASX:SBM For personal use only $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 Source: IRESS to 22 Feb 2016 5/ December 2015 Half Year Presentation
Slide 7: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate Safety performance 12.5 ˃ Record low TRIFR1 of 3.4 at Q2 FY16 9.0 ˃ Continued good results for mixed jurisdiction underground / open pit combination 6.0 ˃ Simberi Emergency Response 5.0 4.1 4.1 Team multi prize winner
Slide 8: Consolidated Gold Production
Consolidated Gold Production For personal use only AISC (Consolidated) (A$/oz) 1,374 1,305 1H FY16 Operations Highlights 1,166 ˃ Consolidated production 882 922 • 203 koz ˃ Record production for: 211 190 203 • Gwalia 136 koz 184 50 29 16 167 58 • Simberi 58 koz 21 24 30 27 9 34 36 23 ˃ Simberi produ
Slide 9: 1H FY16 Financial Summary
1H FY16 Financial Summary1 1H 2H 1H For personal use only FY16 FY15 FY15 Gold price Average gold price realised A$/oz 1,564 1,461 1,411 All-In Sustaining Cost3 A$/oz 922 882 1,166 Result ˃ Statutory profit after tax A$M 77 60 (20) ˃ Underlying net profit/(loss) after tax 3 A$M 60 43 (1) ˃ EBITDA 3 A
Slide 10: Half on Half Profit Comparison
Half on Half Profit Comparison1 Half on Half Underlying Profit2 For personal use only & Significant Items 17 60 43 -8 -1 -25 -14 -7 -16 -203 FY14 FY14 FY15 FY15 FY16 1H 2H 1H 2H 1H A$M NPAT Underlying Significant items (continuing operations) 1. Excludes results from discontinued operations 9/ Decem
Slide 11: Segment profit & cash flow
Segment profit & cash flow For personal use only Reportable segment profit/ Cash flow from operations1 (loss) before tax1 128 128 97 86 58 53 21 17 11 15 -14 -15 FY15 FY15 FY16 FY15 FY15 FY16 1H 2H 1H 1H 2H 1H A$M A$M Leonora Simberi Leonora Simberi 1. Results for Leonora include King of the Hills (
Slide 12: Key changes to underlying profit 2H FY15 to 1H FY16
Key changes to underlying profit/(loss)1 2H FY15 to 1H FY16 Underlying Profit1 After Tax Reconciliation (H1 FY16 v H2FY15) For personal use only 4 -15 7 8 60 9 4 43 2H FY15 Gross Profit - Aust Gross Profit - D&A Net Financing Income tax Corporate + Other 1H FY16 Ops Simberi Ops Costs expense A$ Mill
Slide 13: Significant items in net profit after tax
Significant items1 in net profit after tax For personal use only Significant items in net profit after tax 77 -14 -2 -1 60 1H FY16 NPAT Profit on sale of KOTH & Foreign exchange Tax effect 1H FY16 Underlying NPAT Kailis A$ Million 12 / December 2015 Half Year Presentation 1. Non-IFRS measure, refer
Slide 14: Cash movement 1H FY16
Cash movement 1H FY16 For personal use only Cash movement 1H FY16 16 -78 128 -17 -8 -10 -8 100 77 Cash Leonora Ops Simberi Ops Debt Interest Exploration Corporate Other Cash Jun 2015 repayments payments (incl capex) Dec 2015 A$ million 13 December 2015 Half Year Presentation
Slide 15: Cash and Debt FY15 and H1 FY16
Cash and Debt FY15 and H1 FY16 Debt, Cash Balance & Contribution from Operations For personal use only (FY15 to present) 413 A$ Debt2,3 384 357 358 347 325 325 325 293 284 US$ Debt 271 249 216 204 108 115 A$ Cash balance1 100 approx. 100 68 77 56 80 70 69 A$ Cash Contribution4 57 10 32 FY15 FY15 FY1
Slide 16: Debt and hedging at December 2015
Debt and hedging at 31 December 2015 For personal use only US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 22 Feb 2016 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest rate 8.875% p.a., matures April 2018 ˃ US$55 million repurchased in
Slide 17: Organic growth studies - progress
Organic growth studies - progress Gwalia materials handling For personal use only ˃ Conceptual studies on potential materials handling systems for deeper mining. These studies include: ˃ blind and raise-bore shafts with skip hoisting ˃ a shaft with vertical conveying ˃ slurry pumping to surface ˃ ne
Slide 18: Simberi PNG – status
Simberi PNG – status Simberi: For personal use only ˃ profitable since month of December 2014 ˃ produced at target 100,000 ounce per annum production run rate since month of December 2014 ˃ produced 107, 553 ounces of gold in CY 2015 ˃ forecast to produce between 100,000 and 110,000 ounces for FY16
Slide 19: Simberi PNG – PFS
Simberi PNG –PFS For personal use only ˃ PFS now due April 2016 ˃ Progress report on the PFS proposes: ˃ Sulphide Project utilises the existing infrastructure on Simberi Island, including the airport, power station, village, and wharf ˃ the existing semi-autogenous grinding (SAG) mill and ball mill
Slide 20: Simberi PNG – PFS preliminary results
Simberi PNG –PFS preliminary results Scope Produce and sell gold concentrate from sulphide ore and For personal use only gold doré from oxide ore Ore Reserves Sulphide: 19.9 Mt @ 2.0 g/t Au for 1,285 koz of contained gold at 30 June 20151 Oxide: 19.1 Mt @ 1.3 g/t Au for 818 koz of contained gold2 Ca
Slide 21: Simberi PNG – Strategic review
Simberi PNG –Strategic review ˃ Need to evaluate the potential investment in the Simberi Sulphide Project against the Company’s other potential investment opportunities For personal use only ˃ to maintain continuity of production a decision on the Sulphide Project would be required by December 2016
Slide 22: Summary – Strong profits of 2H FY15 continue, debt significantly reduced
Summary – Strong profits of 2H FY15 continue, debt significantly reduced ˃ Profitability maintained from record 2H FY15 For personal use only ˃ Continued strong operating results with underlying NPAT of $60 million ˃ $15 million profit on sale of King of the Hills & Kailis ˃ Continued accelerated de
Slide 23: Appendices
Appendices For personal use only Jan 2016: Shadows silhouetted viewing an ore pass, Gwalia mine. 22 / December 2015 Half Year Presentation
Slide 24: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY15 FY15 FY15 FY16 FY16 FY163 For personal use only Production Gwalia oz 76,954 57,208 248,142 72,388 63,533 245 - 260 koz (prev 230 to 250 koz) King of the Hills oz 11,836 15,
Slide 25: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated For personal use only ˃ Shares on issue 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$861 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 367 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,025/oz ˃ A
Slide 26: Consolidated Gold Production
Consolidated Gold Production AISC (Consolidated) (A$/oz) For personal use only 1,042 979 992 863 1H FY16 Operations Highlights 798 ˃ Consolidated production FY15 AISC A$1,007/oz • 203 koz 111 111 ˃ Record production for: 98 99 22 30 92 • Gwalia 136 koz 17 12 27 9 28 • Simberi 58 koz 12 15 ˃ Simberi
Slide 27: Gwalia gold production
Gwalia gold production - 136 koz in H1 AISC (A$/oz) For personal use only 883 860 FY15 AISC A$841/oz 846 Q2 December FY16 Quarter: 692 645 ˃ 63,533 oz produced in Q2 (Q1: 72,388 oz) ˃ 135,921 oz produced in H1 FY16 ˃ AISC1 of A$846/oz (Q1: A$692/oz) Mined Grade June 2015 9.7 9.7 (g/t Au) Reserve gra
Slide 28: Simberi: record half year and calendar year gold production
Simberi: record half year and calendar year gold production For personal use only AISC (A$/oz) 1,619 Q2 December FY16 Quarter: ˃ 28,379 oz produced in Q2 (Q1: 29,539 oz) 1,310 1,319 1,252 1,149 ˃ Record production: 58 koz for H1 FY16 108 koz for CY 2015 ˃ AISC1 of A$1,319/oz impacted by signific
Slide 29: Cash and debt
Cash and debt For personal use only June 2014 June 2015 Dec 2015 22 Feb A$M A$M A$M 2016 A$M Cash balance 1 79 77 100 100 Interest bearing debt FX 0.94302 0.77132 0.72852 0.71073 ˃ US Senior Secured Notes US$ 250 196 180 168 ˃ Red Kite US$ 75 75 36 36 ˃ Total USD$ debt US$ 325 271 216 204 ˃ A$ equi
Slide 30: Key changes to underlying profit 1H FY15 to 1H FY16
Key changes to underlying profit/(loss)1 1H FY15 to 1H FY16 Underlying Profit After Tax Reconciliation 1HFY15 to 1HFY16 For personal use only 38 -3 -17 -2 60 45 -1 1H FY15 Gross Profit - Aust Gross Profit - D&A Income tax expense Corporate + Other 1H FY16 Ops Simberi Ops A$ Million 29 / December 201
Slide 31: 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 32: 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 33: Strong institutional share register
Strong institutional share register Shareholding Structure For personal use only Institutional Australia 71% 34% Not analysed, 14% UK 15% USA 17% Other 5% Non Non Institutional Institutional, 15% 15% Not analysed 14% Analysis and geographic spread of shareholders as at 15 Jan 2016 32 / December 2015
Slide 34: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage For personal use only Significant Shareholders 1 Broker Research Coverage Argonaut Patrick Chang Hunter Hall 15% M&G Investment Mgt 12% Canaccord Reg Spencer Franklin Resources Inc 6% Deutsche Bank Brett Mckay Macquarie Ben Crowley Petra Capital David
Slide 35: 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 36: 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 37: 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 36 / December 2015 Half Year Presentation