St. Barbara Ltd. · ASX:SBM
St. Barbara — Corporate Update (August 2019)
42 slides from St. Barbara's corporate update, Aug 8, 2019
Slide 1: Presentation to analysts and investors at Leonora Operations
ASX Release / 8 August 2019 Presentation to analysts and investors at Leonora Operations Attached is a presentation to analysts and investors attending a site visit this week at Leonora Operations, Western Australia. Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1900 AS
Slide 2: Gwalia site visit presentation
Stean Barrie, General Manager Leonora Operations / August 2019 Gwalia site visit presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents Overview of St Barbara • Operations • Safety Gwalia Mine, Leonora, WA • History • Production • Innovation • Growth Exploration Appendices Melissa Walker, Process Technician at the paste plant, Gwalia. 3 / Gwalia Site Visit Presentation | August 2019
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 FY19A FY20F7 Commodity Gold (Au) 310 to 335 koz Market Cap1 A$2.6 B @ A$3.69/sh 362 koz @ AISC A$1,250 to Consolidated @ AISC6 A$1,080/oz A$1,350/oz Shares1 696 M (+ Atlantic Gold TBA) Liquidity2 8.4 M/day (1.2%) 200 to 210 koz 220 koz 1H
Slide 6: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR in comparison with Western Australian Mining benchmarks2 5.0 5.0 4.1 2.9 2.8 2.9 2.2 1.9 2.1 2.1 1.2 1.1 FY15 FY16 FY17 FY18 FY19 FY19 FY19 FY19 St Barbara WA Gold WA Metal, WA Metal, Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q4 FY19 Surface
Slide 7: Gwalia 120 not out!
Gwalia | 120 not out! • From surface outcrop (first mined 1896) to current workings is approx. 3.5 km ‘straight line’ along shear • Herbert Hoover was the initial Gwalia mine manager (1897-1898), later a US President (1929-1933), noted angle of deposit – took mining underground via underlay shaft (f
Slide 8: Gwalia production profile
Gwalia production profile Mined Grade (g/t Au) 12.5 10.7 11.1 9.3 8.9 FY19 performance Reserve Grade1 7.5 g/t Au June 2018 • Production of 220 koz (FY18: 268 koz) Production (koz) • AISC2 of A$1,027/oz 267 265 268 248 12603 (FY18: A$802/oz) 220 210 AISC2 (A$/oz) 200 FY20 guidance 1027 841 802 • Prod
Slide 9: Quarterly Gwalia production profile
Quarterly Gwalia production profile AISC (A$/oz) 1,228 1,081 1,016 833 679 FY19 average $1,027/oz Q4 FY19 Production • 49,966 oz (Q3: 54,261 oz) Mined grade (g/t Au) • AISC1 A$1,228/oz (Q3: A$1,016/oz) 13.4 12.4 10.4 11.7 10.0 • The sequential nature of the mine plan, and continued ventilation Reser
Slide 10: Gwalia animation
Gwalia animation Gwalia A rich history with a bright future Animation of Gwalia underground mine available at https://youtu.be/D3uo4FKCi2I 9 / Gwalia Site Visit Presentation | August 2019
Slide 11: Mining Strategy: Triple Lift Stoping in Wide SWB Zones
Gwalia Mining Strategy Triple Lift Stoping in Wide SWB Zones Mining method • Long hole open stoping with fill • North & south access on two levels gives 4 mining areas DL3 • Greater percentage of free 2 bogging increases productivity DL2 of each stope 40m 1 DL1 DL3 • Sill drives fully in ore – reduc
Slide 12: Mining Strategy (cont.): Double Lift Stoping
Gwalia Mining Strategy (cont.) Double Lift Stoping in South Gwalia Series and Narrower SWB Zones 80m // // 15m Cable Bolts and straps 40m 25m Cable Bolts and straps Mining method • Cable bolts installed from central ore drive, reducing dilution • Production drilling parallel to hangingwall to reduce
Slide 13: Mining Strategy (cont.): Single Lift Stoping in Narrower Zones
Gwalia Mining Strategy (cont.) Single Lift Stoping in Narrower Zones (Main Lode, West Lode) 87m // // 20m 40m 20m Mining method • Lower hydraulic radius reduces dilution • Production drilling parallel to hangingwall to reduce blast induced dilution 12 / Gwalia Site Visit Presentation | August 2019
Slide 14: Mining Strategy (cont.): Island Pillar Method Opportunity
Gwalia Mining Strategy (cont.) Island Pillar Method Opportunity 30m Mining method 15m • Island pillar supports hangingwall, reducing dilution 25m • Allows strike length to be increased • Fixed part of stoping cycle effectively spread over two stopes • Potential increase in stoping productivity 13 /
Slide 15: Mining Strategy (cont.)
Gwalia Mining Strategy (cont.) Objective: Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry Plunge, centre 2) Geotech considerations – not too many open stopes of lode too close together = ‘Centre out’ method ‘Centre out’ – extract centre stope of lode firs
Slide 16: Stope Cycles targeting higher production
Stope Cycles targeting higher production Stope Cycle Time – 6 months per stope • ‘Bogging’ (extracting ore from the stope) represents just under 50% of stope cycle time • Filling and curing around 30% of stope cycle time • PAF circuit optimisation to aid in reduction of filling time • Adjacent stope
Slide 17: Extension Project Update – On Schedule
Gwalia Extension Project Update – On Schedule • Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1 • Budget of A$112 million with planned completion in Q2 December FY202 • A$100 million spent on project to date • PAF crushing circuit
Slide 18: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 17 / Gwalia Site Visit Presentation | August 2019
Slide 19: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program Gwalia A rich history with a bright future • Daughter holes GWDD16K, GWDD16L and GWDD16M intersected the mine sequence at 2,000 - 2,100 mbs • Gwalia - March Parent hole GWDD23 and daughter holes GWDD23A, GWDD23B and GWDD23C targeted the 2016 orebody at 2,1
Slide 20: Exploration | Gwalia Deeps Drilling Program
Exploration | Gwalia Deeps Drilling Program Gwalia • Extensive mineralised A alteration rich history with a bright future and quartz veining encountered in GWDD23C has provided new information on the direction and thickening of the lode system • Significant results include: o 14.5 m at 5.7 g/t Au fr
Slide 21: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia A rich history with a bright future For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 20 / Gwalia Site Visit Presentation | August 2019
Slide 22: Exploration | Gwalia Region
Exploration | Gwalia Region • An 18 hole RC drilling program was Gwalia completed in April testing a 1.6km A rich history with a bright future strike south of Tower Hill and 500 m west of the Gwalia Open Pit. • Significant results from this program include (all intercepts down-hole): o 6.0 m @ 8.6 g
Slide 23: Exploration | Gwalia Regional Targets
Exploration | Gwalia Regional Targets Gwalia A rich history with a bright future For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 22 / Gwalia Site Visit Presentation | August 2019
Slide 24: Geological Interpretation
Gwalia Geological Interpretation Gwalia A rich history with a bright future Note: Stylised conceptual interpretation of the Gwalia geology and mineralisation 23 / Gwalia Site Visit Presentation | August 2019
Slide 25: Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Gwalia A rich history with a bright future Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 24 / Gwalia Site Visit Presentation | August 2019
Slide 26: Appendices
Appendices Underground at Gwalia 25 / Gwalia Site Visit Presentation | August 2019
Slide 27: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY19 FY191 FY20 St Barbara’s financial year Year to 30 Qtr to Qtr to Qtr to 9 months to Year to 30 June Year to 30 June 2019 Year to 30 Ju
Slide 28: St Barbara Byrnecut – contract mining
Gwalia Operations St Barbara Byrnecut – contract mining • Responsible for • Byrnecut is part of Gwalia’s success • Planning • Started at Gwalia in Sep 2012 • Processing • Alliance agreement from Sep 2013 • Procurement • Approx. 230 employees • Commercial Underground fleet • Approx. 150 employees, mo
Slide 29: Supporting the Leonora community
Supporting the Leonora community St Barbara is focused on working within the Leonora community. Sponsorships • Golden Gift (athletics carnival) • Kambalda/Leonora Football Club • Goldfields Girl (personal development program for young Gwalia Processing plantindigenous Gwalia Gwalia –– Underground Un
Slide 30: Gwalia operations
Gwalia operations 29 / Gwalia Site Visit Presentation | August 2019
Slide 31: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 30 / Gwalia Site Visit Presentation | August 2019
Slide 32: Gwalia operations
Gwalia operations Gwalia A rich history with a bright future 31 / Gwalia Site Visit Presentation | August 2019
Slide 33: Gwalia – Depth of Ore Reserves
Gwalia – Depth of Ore Reserves Maximum Depth of Ore Reserves (mbs) 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 30 Jun 2018 0 500 1000 1500 mbs 1500 mbs 1540 mbs 1580 mbs 1500 1620 mbs Maximum 1540 mbs Mined Depth 1740 mbs 2000 1940 mbs Maximum Reserves Depth 2140 mbs 2140 mbs Ore Reserves and Mi
Slide 34: Gwalia Resources & Reserves
Gwalia Resources & Reserves Gwalia Gwalia Reserves Gwalia Resources A rich history with a bright future koz koz -262 -234 5,087 4,825 2,133 1,899 June Mining depletion June June Mining depletion June 2017 2018 2017 2018 Refer ASX announcement 27 August 2018 titled ‘Ore Reserves and Mineral Resources
Slide 35: Ore Reserves Summary as at 30 June 2018
Ore Reserves Summary as at 30 June 2018 Proved Probable Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 1,845 9.0 531 6,061 7.0 1,368 7,907 7.5 1,899 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 36: Mineral Resources Summary as at 30 June 2018
Mineral Resources Summary as at 30 June 2018 Measured Indicated Inferred Total Project Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces Tonnes Gold Ounces ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) ('000) (g/t) ('000) Gwalia, (WA) 4,581 7.1 1,048 14,690 6.3 2,997 3,831 6.3 7
Slide 37: Shareholders and broker coverage
Shareholders1 and broker coverage Broker Research Coverage Not analysed Argonaut James Wilson 8% Institutional Canaccord Reg Spencer 87% Citi Trent Allen Non Institutional Credit Suisse Mike Slifirski 5% GMR David Radclyffe Goldman Sachs Matthew Frydman JP Morgan TBC Macquarie Ben Crowley RBC Paul H
Slide 38: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman – Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years’ international Mr Netscher is an experienced international mining executiv
Slide 39: Executive Leadership Team
Executive Leadership Team Gwalia A rich history with a bright future Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary General Manager Human Resources and HSEC Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mi
Slide 40: Competent Persons Statement
Competent Persons Statement Exploration Results The information in this presentation that relates to Exploration Results for Gwalia and the Leonora region is based on information compiled by Mr Robert Love, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Love is a full-tim
Slide 41: Non-IFRS Measures
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. We believe that these measures provide meaningful information to assist management, invest
Slide 42: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary David Cotterell Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au 41 / Gwalia Site Visit Presentation | August 2019