40 slides from St. Barbara's earnings presentation, Aug 24, 2012
Slide 1: FY12 Full Year Financial Report
For personal use only FY12 Full Year Financial Report Record Profit and Cashflow Garth Campbell-Cowan, Chief Financial Officer Deutsche Bank, Sydney 24 August 2012 1
Slide 2: 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 3: Outline
Outline For personal use only • Proven performance • Gwalia Mine – St Barbara’s cornerstone asset • Exploration • The remainder of FY 13 • Allied Gold • Appendices FY12 Financial Report 3
Slide 4: Financial highlights – FY12
Financial highlights – FY12 For personal use only Record profit and cash flow • Statutory profit up 90% to $130M • Underlying NPAT [1] up 140% to $131M • Cash flow from operations up 115% to $222M • Cash flow after funding capex $117M [2] • EPS up from $0.21 in 2011 to $0.40 in 2012 Investment in gr
Slide 5: Proven performance - translating reserves into operating cash flows
Proven performance - translating reserves into operating cash flows For personal use only Gold Production Cash Flow From Operations +31% increases year on year FY 11 to FY 12 +115% FY 11 to FY 12 339 222 231 258 239 157 103 77 25 24 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 koz A$M
Slide 6: Delivering a record profit
Delivering a record profit For personal use only NPAT Underlying NPAT* +90% +140% FY 11 to FY 12 FY 11 to FY 12 131 130 69 54 15 0.2 -40 -76 FY 09 FY 10 FY 11 FY 12 FY 09 FY 10 FY 11 FY 12 A$M A$M * Non-IFRS measure, calculation in Appendix FY12 Financial Report 6
Slide 7: FY consolidated guidance achieved for production and costs
FY 12 consolidated guidance achieved for production and costs For personal use only FY 12 Production to Guidance 185 175 190 Gwalia 57 King of the Hills 55 60 97 Marvel Loch 90 100 339 Consolidated 320 350 -20 -10 0 +10 +20 Guidance Mid Points and Ranges koz FY12 Financial Report 7
Slide 8: Significant items in NPAT
Significant items in NPAT For personal use only 10 (21) 5 6 130 131 FY 12 Net loss Expenses Asset Income Tax FY 12 NPAT on derivates associated with impairment write Benefit Underlying acquisitions down NPAT* $M FY12 Financial Report * Non-IFRS measure, calculation in Appendix. 8
Slide 9: Key changes in underlying NPAT
Key changes in underlying NPAT* For personal use only 73 109 (53) (16) 131 (32) (3) (1) 54 FY 11 Gold sales - Gold sales - Mine Mine D&A Exploration Other FY 12 volume price operating operating costs - costs - volume price $M * Non-IFRS measure, calculation in Appendix. 9 FY12 Financial Report
Slide 10: Delivering value per share
Delivering value per share For personal use only EPS Cash Flow From Operations Per Share $0.40 $0.68 $0.21 $0.36 $0.26 $0.11 -$0.14 FY 10 FY 11 FY 12 FY 09 FY 10 FY 11 FY 12 A$ A$ Shares adjusted for 6:1 consolidation Nov 2010 Shares adjusted for 6:1 consolidation Nov 2010 FY12 Financial Report 10
Slide 11: Delivering cash flow
Delivering cash flow For personal use only Revenue* Cash Flow From Operations +51%** +115% 541 222 360 297 281 103 77 24 FY 09 FY 10 FY 11 FY 12 FY 09 FY 10 FY 11 FY 12 A$M A$M * Sales Revenue FY12 Financial Report 11
Slide 12: Investing in development
Investing in development For personal use only Capital Expenditure $100M 5 5 Other PPE Mine infrastructure 2 3 Surface infrastructure 44 Mine development 2 23 1 11 4 Gwalia King of the Hills Southern Cross Other PPE $M FY12 FY12 Financial Report 12
Slide 13: Gwalia Mine - high quality, long life, rich gold deposit
Gwalia Mine - high quality, long life, rich gold deposit For personal use only • Operations focus on cost and reliable production • Ore Reserves of 3.9 Mt at 8.7 g/t Au containing 1.9 Moz of gold • Resources extended to 1,840 mbs, open at depth • Potential to extend Ore Reserves within mining envelo
Slide 14: Gwalia Gold Production
Gwalia For personal use only Gold Production 54 46 • Record production in Q4 44 40 • Processing recovery 39 consistently at 97% FY 11 FY 12 FY 12 FY 12 FY 12 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun koz 14 FY12 Financial Report
Slide 15: Gwalia grade and costs
Gwalia grade and costs For personal use only Grade Mined Grade • Q4 mined grade 10.5 g/t Au & Cash Cost 10.5 • Majority of ore sourced from the 722 712 richer South West Branch 683 9.3 • FY12 mined grade 8.8 g/t Au FY12 8.8 627 Costs 7.5 6.9 8.1 • Q4 cash operating costs $580/oz, 580 primarily due t
Slide 16: King of the Hills
King of the Hills For personal use only Gold Production 17 • Production in line with 16 14 expectations • FY12 production 56,953oz 9 within guidance 7 • Q4 cash operating costs $746/oz (Q3: $693/oz) • FY12 cash operating costs $753/oz FY 11 FY 12 FY 12 FY 12 FY 12 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun
Slide 17: Discovery & Growth
Discovery & Growth For personal use only September 2012 quarter exploration planned in 3 states • Expenditure for FY13 forecast at a minimum of $20M • Exploration focus on discoveries: – in proximity to processing plants – prospective greenfield areas • 5,000+ km2 of prospective land around Australi
Slide 18: FY13 guidance
FY13 guidance Australian operations For personal use only King of Gwalia Total the Hills Leonora Leonora Leonora Gold production koz 175-190 55-60 230-250 Cash operating cost $/oz 670-700 840-870 710-745 Capex $M 45-50 20-25 65-75 FY12 Financial Report 18
Slide 19: Combination with Allied Gold
Combination with Allied Gold For personal use only • Consistent with the strategy of last 3 years to grow long term EPS • Acquisition of two gold producing, 8+ year operations: • Gold Ridge, Solomon Islands • Simberi, Papua New Guinea • Significant near mine and regional exploration along Pacific Ri
Slide 20: Why Allied Gold?
Why Allied Gold? For personal use only • Allied Gold consistently rated as one of the best value targets in the region for relatively long term, profitable gold operations. • Highly geologically attractive yet under explored region. • Offer based on detailed due diligence, including rebuilding our o
Slide 21: Combined Group - Proven Producing Assets
Combined Group - Proven Producing Assets Supplemented by Development and Exploration Opportunities For personal use only Leonora Simberi • Gwalia underground mine Simberi • Simberi open pit mine • King of the Hills underground • Simberi processing plant (2.0Mtpa) mine • FY13F production: 70 – 80koz1
Slide 22: Enhanced Diversification
Enhanced Diversification For personal use only Reserves by Asset1 St Barbara Combined Group Allied Gold (2.8 Moz) (5.9 Moz) (3.2 Moz) 12% 19% 8% 33% 36% 8% 64% 72% 34% 6% 4% 4% FY13F Production by Asset (midpoint)2 St Barbara Combined Group Allied Gold (c.260 koz) (c.435 koz) (c.175 koz) 22% 23% 42%
Slide 23: Project Pipeline Spanning Exploration to Gold Production
Project Pipeline Spanning Exploration to Gold Production For personal use only St Barbara’s established, producing and cash flow generative assets at Gwalia, King of the Hills and Southern Cross complement Allied Gold’s expansion and exploration projects at Simberi, Gold Ridge and Tabar-Tatau Projec
Slide 24: Strong balance sheet post combination
Strong balance sheet post combination For personal use only • Net cash $181M Cash & Debt • Net interest bearing debt $4M 185 • Net debt / Equity <1% • Ability to fund exploration and expansion projects from cash flow 79 12 4 Debt Debt Jun 2011 Jun 2012 A$M FY12 Financial Report 24
Slide 25: Conclusion and Outlook
Conclusion and Outlook For personal use only • Consolidated FY12 guidance delivered • Strong cash generation to continue from Australian operations • June cash used to add value to new asset • Integration program ready for early September kick off • Strategic review of the Allied Gold assets to be c
Slide 26: Appendices
Appendices For personal use only 26 FY12 Financial Report
Slide 27: Production summary
Production summary For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Consolidated FY12 FY12 FY12 FY12 FY12 Gold Production Gwalia oz 40,306 46,007 43,881 54,340 184,534 King of the Hills oz 9,343 14,107 17,110 16,393 56,953 Southern Cross oz 20,959 23,501 24,849 28,083 97
Slide 28: Gwalia
Gwalia For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Gwalia FY12 FY12 FY12 FY12 FY12 Underground ore mined t 173,498 181,204 145,609 161,989 662,300 Grade g/t Au 7.5 8.1 9.3 10.5 8.8 Ore milled t 174,056 192,592 168,049 181,943 716,640 Grade g/t Au 7.4 7.7 8.4 9.6 8.3
Slide 29: King of the Hills
King of the Hills For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year King of the Hills FY12 FY12 FY12 FY12 FY12 Underground ore mined t 77,034 107,840 136,016 136,486 457,375 Grade g/t Au 3.7 4.3 4.2 4.0 4.1 Ore milled t 82,179 105,541 131,739 133,482 452,941 Grade g/t Au
Slide 30: Marvel Loch
Marvel Loch For personal use only Production Summary Sep Qtr Dec Qtr Mar Qtr Jun Qtr Year Marvel Loch FY12 FY12 FY12 FY12 FY12 Underground ore mined t 251,628 163,814 240,957 235,966 892,365 Grade g/t Au 2.7 3.1 2.6 3.2 2.9 Ore milled t 295,076 518,560 527,790 501,394 1,842,820 Grade g/t Au 2.5 1.6
Slide 31: Start safe, stay safe
Start safe, stay safe For personal use only Safety • Safety performance significantly 14.8 improved from end of FY11 12.5 • Further improvement targeted in 11.1 FY13 9.0 FY 09 FY 10 FY 11 FY 12 TRIFR (rolling 12 month average Total Recordable Injury Frequency Rate) 31 FY12 Financial Report
Slide 32: Southern Cross Operations
Southern Cross Operations For personal use only Gold Production 27 28 • Production in line with 24 25 expectations 21 • Underground mining expected to continue until October 2012 • Processing expected to continue until December 2012 FY 11 FY 12 FY 12 FY 12 FY 12 Q4 Jun Q1 Sep Q2 Dec Q3 Mar Q4 Jun ko
Slide 33: Current hedge position - KoTH
Current hedge position - KoTH For personal use only Hedge Profile koz King of the Hills A$/oz 80 1,650 A$1,615 KoTH collar over 180 koz maturing in June 2015 70 1,600 • put option strike of 60 1,550 50 1,500 A$1,425/oz & call strike of 40 A$1,615/oz 1,450 A$1,425 30 1,400 20 10 1,350 0 1,300 FY13 FY
Slide 34: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Top 100 Shareholding Structure Australia, 32% Private 7% USA, 28% Unallocated / not analysed 9% UK, 21% Institutions 87% Europe, 3% Asia, 3% Other / not analysed, 13% Analysis and geographic spread of Top 100 Shareholder
Slide 35: 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% Baillieu Ray Chantry Van Eck Associates 6% Bell Potter Stephen Thomas Franklin Resources 6% Citi Craig Sainsbury
Slide 36: Mineral Resources Statement
Mineral Resources Statement As at 30 June 2012* For personal use only Category Measured Indicated Inferred Total Tonnes Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Region Project (k) Gwalia Deeps 4,684 5.6 842 8,965 9.5 2,727 1,601 7.0 360 15,250 8.0 3,930 Gwalia Int
Slide 37: Ore Reserves Statement
Ore Reserves Statement As at 30 June 2012* For personal use only Category Proved Probable Total Region Project Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Leonora Gwalia Deeps 1,279 8.5 348 5,601 8.8 1,577 6,880 8.7 1,925 Tower Hill* 2,699 3.8 329 2,699 3.8 329 King of the Hill
Slide 38: Competent Persons Statement
Competent Persons Statement For personal use only The information in this report that relates to Mineral Resources is based The information in this report that relates to Ore Reserves is based on on information compiled by Mr. Phillip Uttley, who is a Fellow of The information compiled by Mr. John d
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 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 FY12 Financial Report 40