St. Barbara Ltd. · ASX:SBM
St. Barbara — Macquarie Melbourne Mining Forum 2019
59 slides from St. Barbara's conference presentation, Jun 27, 2019
Slide 1: Presentation to Macquarie Melbourne Mining Forum
ASX Release / 27 June 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Presentation to Macquarie Melbourne Mining Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending the Macquarie Melbourne Mining Forum today. Investor Relations Mr
Slide 2: Macquarie Melbourne Mining Forum 2019
BOB VASSIE, MANAGING DIRECTOR & CEO 27 June 2019 ASX: SBM Macquarie Melbourne Mining Forum 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 3: Important Notices and Disclaimer
Important Notices and Disclaimer This investor presentation (Presentation) has been prepared by St Barbara Limited (ACN 009 165 066) (St Barbara or the Company). This Presentation has been prepared in relation to an underwritten pro-rata accelerated non-renounceable entitlement offer of new St Barba
Slide 4: Important Notices and Disclaimer
Important Notices and Disclaimer Financial data: This Presentation contains pro forma financial information. The pro forma financial information and past information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of St Barbara's views on it
Slide 5: Important Notices and Disclaimer
Important Notices and Disclaimer Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current m
Slide 6: Important Notices and Disclaimer
Important Notices and Disclaimer Notes: Financial year is 1 July to 30 June, e.g. FY19 = 1 July 2018 to 30 June 2019. Calendar year is 1 January to 31 December, e.g. CY18 = 1 January 2018 to 31 December 2018. Q1 Sep FY19 = quarter to 30 Sep 2018 Q3 Mar FY19 = quarter to 31 Mar 2019 Q2 Dec FY19 = qua
Slide 7: Contents
Contents • Overview • Safety • Strategy • Highlights • Operations & Growth • Exploration • Conclusion Pre-start inspection, Leonora 6/ Macquarie Melbourne Mining Forum 2019
Slide 8: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM; ADR: STBMY), est. 1969 Commodity Gold (Au) Papua Simberi Market cap1 A$2.1B @ A$3.04/sh New Guinea Shares1 696 M Liquidity2 7.3 M/day (1.0%) 1H FY19 EPS3 A$0.16 1H FY19 DPS A$0.04 Dividend yield4 3.0% Leonora Australia Cash and term deposits5 A$870 M (Gwalia min
Slide 9: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 5.0 4.1 2.0 1.9 1.6 2.8 2.9 2.1 2.1 0.9 1.2 FY15 FY16 FY17 FY18 Q1 Q2 Q3 St Barbara WA Metal, WA Gold WA Metal, FY19 FY19 FY19 Q3 FY19 Underground Surface • Deterioratio
Slide 10: Strategy for the next 5 years – “stronger for longer”
Strategy for the next 5 years – “stronger for longer” Diversify production base Seeking a portfolio of robust operations Sustainable long life operations Aiming for above average mine life at bottom-third AISC Quality growth pipeline Actively add, manage and progress assets in all phases of the pipe
Slide 11: Transformational Acquisition, Consistent with our Strategy
Transformational Acquisition, Consistent with our Strategy "Stronger for Longer" • Substantial, low cost production from an established mining jurisdiction Diversify production base • CY19 forecast production of 92 – 98 koz at an AISC of C$695 – 755/oz (A$740 – 803/oz)1, with pathway to 200+ koz p
Slide 12: Acquisition of Atlantic Adds a Low Cost Producer with Expansion Pipeline and Exploration Potential
Acquisition of Atlantic Adds a Low Cost Producer with Expansion Pipeline and Exploration Potential Key statistics Acquiring a great team of talented people who deliver CY18 production 91 koz Touquoy is a high quality producing asset in an established CY19 production guidance 92 – 98 koz mining j
Slide 13: Atlantic Gold
Atlantic Gold Touquoy Halifax 12 / Macquarie Melbourne Mining Forum 2019
Slide 14: Australian Gold Peer Comparison - 1H FY19 NPAT and EV/Reserves
Australian Gold Peer Comparison - 1H FY19 NPAT and EV/Reserves Bubble size = Bubble size = 1H19 gold production 1H19 gold production 6% $2,000 $1,800 1H FY19 NPAT ÷ Market Cap. (%) 5% SBM (Pro forma) $1,600 NST SBM $1,400 EV/Reserves (A$/oz) 4% $1,200 RRL $1,000 EVN 3% RRL $800 SAR OGC $600 OGC 2% E
Slide 15: Diversifies Production Base
Diversifies Production Base St Barbara St Barbara Key operating statistics by asset pre-transaction post-transaction Gwalia Simberi Atlantic Gold 91 136 CY18 production (koz) 257 136 91 CY18 production 257 257 (koz) 136 C$731/oz CY18 AISC A$849/oz A$1,118/oz (A$761/oz) FY19E production (koz)1 220 14
Slide 16: Atlantic Gold is a Strong Strategic Fit within St Barbara's Growth Pipeline
Atlantic Gold is a Strong Strategic Fit within St Barbara's Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Gwalia Catalyst Horn Metals Peel Island Mining Gwalia 14% Au, EJV3 16%. GMX Tower Gwalia Gwalia Prodigy Aust. Hill Extension Mine Gold Duket
Slide 17: Strong margins & liquidity, actively growing, well positioned
Strong margins & liquidity, actively growing, well positioned • FY19F guidance1 of 360 koz at AISC2 of A$1,088 Operational • Simberi setting new operational records excellence • Continued successful Gwalia deep drilling and exploration • Operational cash contribution3 of $226 M year to date Financia
Slide 18: Consolidated Q3 FY19 quarter
Consolidated Q3 FY19 quarter AISC (A$/oz) 1,108 1,098 982 Q3 FY19 Production 919 812 • Consolidated 88 koz (Q2: 89 koz) • Gwalia 54 koz (Q2: 53 koz) • Simberi 34 koz (Q2: 36 koz) Production (koz) 119 99 Q3 FY19 AISC1 35 89 86 88 • Consolidated A$1,098/oz (Q2: A$1,108/oz) 36 29 36 34 • Gwalia A$1,016
Slide 19: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade 12.5 (g/t Au) 10.7 10.5 8.9 9.3 8.4 Reserve Grade3 7.5 g/t Au June 2018 Production (koz) AISC2 267 265 268 (A$/oz) 248 214 220 940 990 841 783 785 802 Q3 YTD 170 @ $969 Loader underground at Gwalia. FY 14 FY 15 FY 16 FY 17 FY 18 FY 19F 1 1. FY19F AISC i
Slide 20: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/fw91T7KFIQ4 19 / Macquarie Melbourne Mining Forum 2019
Slide 21: Gwalia 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$86 million spent on project to date • PAF crushing circuit
Slide 22: Gwalia – Total Material Moved
Gwalia – Total Material Moved Gwalia total material moved (kt) 267 260 256 26 252 Impact of GEP on trucking capacity 20 19 32 • Excavation of the approx. 11 m high x 10 m wide 41 192 69 82 chambers at 1,420 and 1,460 mbs for the PAF 16 78 circuit commenced in Q1 Sep FY17 57 • Raise-boring of the fou
Slide 23: Gwalia – future indicative production profile
Gwalia – future indicative production profile Gwalia – future indicative production profile1 • H1 FY20 ventilation constrained until GEP is complete • H2 FY20 production will compete with GMX development Production (koz) • FY21 and FY22 production outlook based on building to, 220 220 230 230 but no
Slide 24: Exploration | Gwalia
Exploration | Gwalia • Gwalia deeps drilling continues to return significant • Near mine drilling at Jessie Alma has recently been results completed, with results pending. Visual interpretation • Results for GWDD16K are pending of core indicates drilling intersected mineralisation For full explanati
Slide 25: Simberi production and cost profile
Simberi production and cost profile AISC2 2,300 (A$/oz) 1,464 1,293 1,187 1,273 1,068 135 140 Production (koz) 116 110 Q3 YTD 106 80 @ $1,146 44 FY14 FY15 FY16 FY17 FY18 FY19F 1 Overlooking Simberi Operations. Photo: A’aiba Elias 1. FY19F AISC is midpoint of guidance, released 18 April 2019 in Q3 Ma
Slide 26: Simberi – continues to deliver
Simberi – continues to deliver • Cash contribution1 since the November 2016 decision to retain the asset is A$203 million • Operation has continued to set new records Quarterly cash contribution from Simberi A$M Decision to retain 34 Average since Q3 FY17 = $23 M 24 24 23 23 23 19 20 20 12 12 10 9 8
Slide 27: Simberi Sulphide – Potential Long Life Mine Extension
Simberi Sulphide – Potential Long Life Mine Extension Modelled ultimate pit shells1 with associated sulphide reserves 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au2 • Focused exploration for sulphide ore underway to improve project economics • Sorowar not drilled at d
Slide 28: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG Sorowar Pit Drilling results continue to be positive, indicating significant additional sulphide and oxide mineralisation is present Best intersections include (all results downhole): 135SORDGC003: • 20 m at 3.26 g/t Au from 95 m • 7 m at 25.5 g/t Au from 153 m 185S
Slide 29: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For details refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 28 / Macquarie Melbourne Mining Forum 2019
Slide 30: Mine Life
Mine Life Life of Mine Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi (Oxide) FY16 2018 FY17 2020 FY18 2021 Atlantic Gold FY19 2030 2015 2020 2025 2030 Mine life as published in relevant Annual Report, based on corresponding Ore Reserves and Mineral Resources Statements Note: Atlantic Gold mine life b
Slide 31: Exploration FY19 Guidance - A$25 to A$30 million
Exploration FY19 Guidance - A$25 to A$30 million A$12 – A$15 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$9 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry Option and farm in with Newcr
Slide 32: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 31 / Macquarie Melbourne Mining Forum 2019
Slide 33: Dividends – Recommenced in FY17
Dividends – Recommenced in FY17 Dividends Paid 3.0% $0.22 Cumulative dividend (A$) • Dividend payments Annual Yield1 (%) 2.2% $0.18 recommenced in FY17 • Fully franked FY19 interim Total $0.12 dividend of A$0.04 per share Interim $0.04 paid 27 March 2019 $0.06 • Cumulative dividend payments Final Di
Slide 34: Balance Sheet
Balance Sheet Cash balance at 14 June 2019 of A$870M , no debt1,2 A$M Cash and debt 1000 870 800 600 480 A$779 est. purchase 400 price Atlantic Gold 382 390 343 200 77 137 161 0 -1 -226 -200 Undrawn debt facility -200 -347 -400 -600 FY15 FY16 FY17 FY18 Q3 14 Jun FY19 2019 Debt Cash Entitlement Offer
Slide 35: Increasing cash balance
Increasing cash balance A$M 25 7 7 382 350 357 343 82 Q3 movement net of: $19 M growth capex 261 Q2 movement net of: $14 M dividends $46 M tax $4 M tax Q1 movement net of: $13 M growth capex $28 M dividends Q4 movement net of: $2 M investments $11 M growth capex $7 M tax $6 M tax $10 M growth capex
Slide 36: Cash Generation and Usage
Cash Generation and Usage 120 105 100 79 79 76 Operational cash contribution 80 71 60 Net cash movement for qtr 40 82 Corp. costs & royalties, 20 46 explr. & working cap. 25 A$M 7 7 Strategic investments 0 -7 -14 -16 -10 -28 -20 -2 -4 -4 -7 -3 -46 -4 -19 Leonora - growth capital -4 -6 -40 -11 -9 -4
Slide 37: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality since 2014 and the only mining company to be currently certified • 2018 Winner of AMMA’s Australian Women in Resources Alliance Award • Representation of women on the board at 40%1 • Representation of women in leadership roles at 28%2 •
Slide 38: Community
Community Leonora sponsorships Simberi initiatives • Netball WA sponsorship with Gold Industry Group • The Fred Hollows Foundation. Works toward eliminating avoidable blindness. • Clontarf Foundation. Uses football as a vehicle to improve the education, discipline, life skills, self-esteem and emplo
Slide 39: Conclusion
Conclusion • Atlantic Gold acquisition adds a low cost, high margin operation with growth pipeline and exploration potential, completion due 20 July (AEST) • Current operations continue to perform well • Successful drilling at Gwalia Deeps and regionally • Continued positive Simberi Sulphide drillin
Slide 40: Appendices
Appendices Update image Simberi truck fleet. Photo: Elvis Karon 39 / Macquarie Melbourne Mining Forum 2019
Slide 41: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q3 YTD Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY191 St Barbara’s financial year is 1 July to Year to 30 June Qtr to Qtr to Qtr to 9 months to Year to 30 June 2019 30 June 2018 30 Sep 2018 31 Dec 201
Slide 42: Atlantic Gold transaction timetable
Atlantic Gold transaction timetable Event Status Vancouver time Melbourne time Interim Court Order completed Mon 10 June Tue 11 June Entitlement Offer completed Tue 11 June Wed 12 June Atlantic Arrangement Circular completed Thu 20 June Fri 21 June Atlantic shareholder vote scheduled Mon 15 Ju
Slide 43: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report Governance & Economic Performance & Corporate Governance Statement • Core values and Code of Conduct • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Available
Slide 44: Hedging Summary
Hedging Summary at 27 June 2019 Financial Year Volume Price $/oz Delivery Announced ounces (all monthly instalments) FY20 50,000 A$1,750 July and December 2019 7 & 19 Feb 2018 and 7 Mar 2018 FY20 24,000 A$1,809 January and June 2020 26 Oct 2018 FY20 24,000 US$1,300 January and June 2020 10 Dec 2018
Slide 45: Atlantic Ore Reserves Summary
Atlantic Ore Reserves Summary per 25 March 2019 Release Tonnes (mt) Grade (g/t Au) Gold oz's ('000's) Touquoy Proven Reserves 3.36 1.10 119 Probable Reserves 7.14 1.28 295 Stockpile reserves 2.14 0.57 44 Total Proven and Probable Reserves 12.91 1.10 458 Beaver Dam Proven Reserves 3.81 1.54 188 Proba
Slide 46: Atlantic Mineral Resources Summary
Atlantic Mineral Resources Summary per 13 March 2019 Release Touquoy Beaver Dam Tonnage Grade Contained Gold Tonnage Grade Contained Gold Confidence Category (Mt) (g/t Au) (Au oz x 1,000) (Mt) (g/t Au) (Au oz x 1,000) Measured 3.4 1.14 124 5.1 1.28 209 Indicated 7.9 1.27 321 4.6 1.23 182 Total Measu
Slide 47: Exploration | Gwalia Deep Drilling
Exploration | Gwalia Deep Drilling For full explanation and results refer to ASX release 18 April 2019 ‘Quarterly Report Q3 March FY19’ 46 / Macquarie Melbourne Mining Forum 2019
Slide 48: Gwalia Extension Project
Gwalia Extension Project For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 47 / Macquarie Melbourne Mining Forum 2019
Slide 49: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 48 / Macquarie Melbourne Mining Forum 2019
Slide 50: Gwalia – Lowest expected mined depth
Gwalia – Lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1100 1200 1220 Mineral Resources 1300 1400 deepest mineralised intersection Ore Reserves 1380 1420 1500 1500 1600 1540 1580 1620 1700 1800 1740
Slide 51: 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 1500 1580 mbs 1620 mbs 1540 mbs Maximum Mined Depth 1740 mbs 2000 1940 mbs 2140 mbs 2140 mbs Maximum Reserves Depth Ore Reserves and Mi
Slide 52: 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 53: 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 54: Shareholders and Broker Coverage
Shareholders and Broker Coverage Shareholders1 Broker Research Coverage Argonaut James Wilson Not analysed 8% Canaccord Reg Spencer Institutional 88% Citi Trent Allen Non Institutional Credit Suisse Mike Slifirski 4% Deutsche Bank James Gurry GMR David Radclyffe Goldman Sachs Matthew Frydman JP Morg
Slide 55: 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 mining industry Mr Netscher is an experienced international
Slide 56: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary General Manager Human Resources and Health, Safety, Appointed 2014 Joined 2006 Joined 2010 Environment and Community Mr Vassie is a mining engineer with
Slide 57: Competent Persons Statement
Competent Persons Statement 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 Mustard is a full-time empl
Slide 58: 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, inves
Slide 59: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board, underground at Gwalia, October 2017. L to R: Tim Netscher (Non-Executive Chairman), Andrew Walker (Underground Manager), Rowan Cole (Comp