St. Barbara Ltd. · ASX:SBM
St. Barbara — BMO Capital Markets 27th Global Metals & Mining Conference 2018
52 slides from St. Barbara's conference presentation, Feb 26, 2018
Slide 1: Presentation to analysts and investors attending BMO Global Metals & Mining Conference
ASX Release / 26 February 2018 For personal use only Presentation to analysts and investors attending BMO Capital Markets 27th Global Metals & Mining Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending BMO Capital Markets 27th Global Me
Slide 2: BMO 27th Global Metals & Mining Conference
BOB VASSIE, MANAGING DIRECTOR & CEO 26 - 28 February 2018 ASX: SBM For personal use only BMO 27th Global Metals & Mining Conference
Slide 3: Forward statements
For personal use only Forward statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained presentation or its contents or otherwise arising in connection with it, including without limitation, in this presentation is for information purposes only. Thi
Slide 4: Contents
Contents • St Barbara overview • Growth initiatives For personal use only • Safety • Exploration • Operations • Conclusion Simberi operations, October 2017 3/ BMO Metals & Mining Conference, 26-28 February 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM), est. 1969 Papua Simberi Operations For personal use only Commodity Gold (Au) Market cap1 A$2.1B @ A$4.02/sh (US$1.6B) New Guinea Shares1 515 M Liquidity2 4.3 M/day (0.8%) FY17 EPS3 A$0.32 (US$0.24) FY17 DPS A$0.06 (US$0.045) Cash4 A$215 M (US$168 M) Australia L
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 For personal use only 6.0 5.0 4.1 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 FY18 FY18 • Increase in TRIFR to 2.4 to 31 Dec 2017 due to four low- severity recordable injuries • Program to prevent recurrence implemented • Corresponding LTI
Slide 7: 1H FY18 key achievements
1H FY18 key achievements • Record consolidated half-year production1 of 198 koz Operational • Record low half-year AISC2 of A$899/oz (US$700/oz) For personal use only excellence • AISC margin2 of A$761/oz (US$593/oz) • Full year guidance increased at both operations Financial • EBITDA margin of 49%1
Slide 8: Balance Sheet
Balance Sheet US$M Cash and debt For personal use only 200 168 100 124 102 Cash 75 59 0 -0.4 -0.2 Debt -100 -169 -200 -268 -300 -320 -400 FY14 FY15 FY16 FY17 1H FY18 • Cash balance at 31 December of A$215 M (US$168 M), no debt1 • Hedging in place as at 21 February 2018: • FY18: 36 koz forward contra
Slide 9: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade For personal use only (g/t Au) 11.7 10.7 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 Production 248 250 (koz) 214 AISC 185 183 679 (US$/oz) 863 700 570 592 131 1H = 109 127 @ 83 653 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14
Slide 10: Gwalia animation
Gwalia animation For personal use only Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 9/ BMO Metals & Mining Conference, 26-28 February 2018
Slide 11: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Project includes new ventilation shafts and underground • A$15 M (US$12 M) capex spent in 1H FY18, For personal use only crushing of waste, mixed with paste to fill emptied A$23 M (US$18 M) project capex spent to date stopes • Raise bore activities hav
Slide 12: Gwalia Deeps 1540 – 1580 lode schematic
For personal use only Gwalia Deeps 1540 – 1580 lode schematic Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 11 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 13: Gwalia 5-year outlook
Gwalia 5-year outlook Mined Grade 11.7 (g/t Au) 10.7 9.8 For personal use only 8.8 8.9 9.3 8.2 8.4 8.1 7.7 6.9 6.7 6.3 5.7 Reserve Grade to 2140 mbs 7.8 g/t Au June 2017 290 280 Production 267 265 260 250 250 260 (koz) 248 240 240 without 214 hydraulic hoisting AISC 185 183 (US$/oz) 863 131 700 727
Slide 14: Gwalia Mass Extraction
Gwalia Mass Extraction Slurry Hydraulic Hoisting - single stage pumping from 1500 mbs For personal use only 2 duty and 1 stand-by Top-up water to surface slurry pipes from Tower Hill Top-up water from Tower Hill Top-up water from old workings 3 x 2 MW additional generators At 1500mbs, crusher, HPGR1
Slide 15: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic For personal use only Gwalia Seismic Exploration • Initial analysis has informed working theory of Gwalia’s mineralisation • Allows re-analysis of surrounding zone to identify analogous potential ‘repeats’ • 3 target areas identified between 600 and 1,900 mbs north and s
Slide 16: Simberi production and cost profile
Simberi production and cost profile AISC For personal use only (US$/oz) 2,111 1,218 941 895 932 125 116 115 Production 110 (koz) 80 Mill throughput (Mt) 44 3.7 1H = 71 3.3 2.7 1.7 FY14 FY15 FY16 FY17 FY18F Survey work in Sorowar pit, October 2017 FY18F AISC is midpoint of guidance, released 23 Janua
Slide 17: Simberi Strategic Review – one year on
Simberi Strategic Review – one year on • Decision in November 2016 to retain Simberi operating assets was the right one For personal use only • Cash contribution1 since the decision to retain the asset is A$91 million • Simberi well placed to achieve improved FY18 production and cost guidance Quarte
Slide 18: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension For personal use only 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.2 Moz Sulphide Resource @ 1.8 g/t Au Simberi Sulphide PFS Capex US$100 million • Focused exploration for sulphide ore Production 130,000 ounces over 8 years underway to improve projec
Slide 19: Exploration FY18 Guidance
Exploration FY18 Guidance - A$16 to 20 million (US$12 to 16 million) Leonora Region & Gwalia, WA For personal use only • Gwalia Deep Drilling + Seismic • A$8 - 10 million (US$6 - 8 million) Pinjin, WA • Aircore drilling of targets identified in FY17 • A$4 - 5 million (US$3 – 4 million) Tabar Island
Slide 20: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For personal use only For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report Q2 December 2017’ 19 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 21: Reserves and Resources as at June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves (Moz) Gwalia Reserves For personal use only 4.3 4.0 • Increased by net 325 koz after depletion 1.3 1.4 0.5 • Lower average grade 8.3 to 7.8 g/t Au 0.6 0.3 0.3 • Cost of discovery at depth in FY17 A$23/oz (US$17/oz) 1.8 2.1 Gwalia Resources FY16
Slide 22: Strategy for the next years – stronger for longer
Strategy for the next 5 years – “stronger for longer” Diversify production base For personal use only 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
Slide 23: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics For personal use only • Complements Annual Report and Corporate Governance Statement Governance & Economic Performance • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Available on website
Slide 24: Conclusion
Conclusion • Sustained operational performance; record half-year For personal use only production1 and record low half-year AISC2 • Record profitability: underlying NPAT2 A$98 M (US$76 M) • A$215 M (US$168 M) cash at bank3, INSERT • A$0.04 cps fully franked interim dividend NEW PHOTO • Profitable gr
Slide 25: Appendices
For personal use only Appendices 2600 mbs drill hole in progress at Gwalia, Feb 2018 24 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 26: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance For personal use only Consolidated FY17 FY17 FY18 FY18 FY18 FY181 Production Gwalia oz 62,098 265,057 64,283 62,835 127,118 250 to 260 koz (prev. 245 to 260) Simberi oz 32,128 116,044 33,976 36,
Slide 27: Consolidated Gold Production
Consolidated Gold Production AISC (Consolidated) For personal use only (US$/oz) 657 700 682 687 700 1H FY18 Production Highlights Consolidated • Record 198 koz @ koz record-low AISC1 A$899/oz (US$700/oz) 194 191 190 198 • EBITDA margin of 49% 184 • FY18F 365-385 koz 58 53 71 52 63 Gwalia • 127 koz @
Slide 28: Interim dividend
Interim dividend Dividend (for first half 2018 financial year) • A$0.04 (US$0.03) per share, fully franked. For personal use only • Dividends are considered at each financial reporting date • Amount influenced by financial performance, balance sheet, internal and external investment opportunities Di
Slide 29: Gender Diversity
Gender Diversity For personal use only • WGEA Employer Of Choice For Gender Equality in 2014, 2015, 2016-7 and 2018 and the only mining company to be certified this year. • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards • Overall pay equity gap reduc
Slide 30: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production For personal use only Back Creek Australia Pinjin Greater Gwalia GMX Tower Hill Gwalia Catalyst Gwalia Metals Peel Extension Mine 16% Mining 16%. Inorganic growth Evaluating exploration, project, development and operating assets in a ra
Slide 31: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program For personal use only Gwalia - March 2016 For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report December 2017’ 30 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 32: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program For personal use only Gwalia - March 2016 For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report December 2017’ 31 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 33: Gwalia mining | South West Branch
For personal use only Gwalia mining | South West Branch ‘The Sweet Spot’ • Deepest FY17 production at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs • Extend mine ~one level (40 meters) 1480MBS per annum Deepest level of mining, Q4 FY7, • Reserve grade 7.8 g/t Au1 1620 mbs
Slide 34: Gwalia – lowest expected mined depth
Gwalia – lowest expected mined depth Lowest Expected Mined Depth in Year For personal use only mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18F FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 1380 Mineral Resources 1420 Ore Reserves 1500 1500 1600 1540 1580 1620 1700 1800 1740 1780 1820
Slide 35: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves Depth of Ore Reserves For personal use only mbs 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 1000 1.9 Moz 1.6 Moz 1.8 Moz 2.1 Moz 1200 1400 1540 1600 1740 1800 1940 2000 2140 2200 Ore Reserves and Mineral Resources Statements as at 30 June 2017 (released 23 August 2
Slide 36: Gwalia GMX Mining Method
Gwalia GMX Mining Method 30m Strike x 40m High stopes with Island Pillars For personal use only Looking North Looking West 30m 80m 15m 40m 25m Rock pillar 35 BMO Metals & Mining Conference, 26-28 February 2018
Slide 37: Gwalia LoM to FY 2031 (with hydraulic hoisting)
For personal use only Gwalia LoM to FY 2031 (with hydraulic hoisting) Table 1: 5-year key metrics (with hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 940 1,150 1,400 Mined grade g/t Au 11.7 9.8 8.1 7.7 6.7 Gold Production koz 250-2
Slide 38: Gwalia LoM to FY 2031 (without hydraulic hoisting)
Gwalia LoM to FY 2031 (without hydraulic hoisting) For personal use only Table 2: 5-year key metrics (without hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 950 1,000 1,180 Mined grade g/t Au 11.7 9.7 7.9 8.3 6.5 Gold Production koz
Slide 39: Exploration | Tabar Island group, PNG, Q2 FY18
Exploration | Tabar Island group, PNG, Q2 FY18 For personal use only Tabar Islands • Simberi Pit mapping and geochemical review completed, Cu-Au porphyry hole commenced at Pigiput • Newcrest Option and Farm-in Surface (soil and rock chip) sampling program ongoing at central Tatau and Tupinda • First
Slide 40: Exploration | Tatau Island, PNG, Q2 FY18
Exploration | Tatau Island, PNG, Q2 FY18 For personal use only Copper-gold porphyry exploration Newcrest Option and Farm-in • Surface (soil and rock chip) sampling program completed • Talik North prospect identified as priority drill target • First diamond drill hole completed for 997 metres, second
Slide 41: Gwalia Reserves and Resources
Gwalia Reserves and Resources Gwalia Reserves Gwalia Resources For personal use only +406 +15 +1,061 +268 koz +316 koz -276 -274 5,087 2,133 1,808 3,896 June Mining Depth Geology Modifying June June Mining Depth Additions June 2016 depletion extension and design factors 2017 2016 depletion & extensi
Slide 42: Gwalia Ore Reserves
Gwalia Ore Reserves For personal use only Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Proved Probable Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources Statement 30 June 2017’. 41 / BMO Metals & Mining Conferen
Slide 43: Simberi Reserves and Resources
Simberi Reserves and Resources Reserves Oxide Reserves For personal use only +92 -116 • Additional Reserves offset depletion 1,897 1,873 • Mine life extended one year to mid FY20 koz Sulphides Reserves • Change in reserves based on improved geological June 2016 Mining depletion Op costs & model revi
Slide 44: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 For personal use only 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) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7
Slide 45: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 For personal use only 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) 5,045 7.8 1,265 14,877
Slide 46: Predominantly institutional share register
Predominantly institutional share register For personal use only Not analysed Australia 8% 35% Institutional 88% Non Institutional USA 32% 4% UK 15% Other 10% Not analysed 8% Data as at 12 January 2018 45 / BMO Metals & Mining Conference, 26-28 February 2018
Slide 47: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage For personal use only Substantial Shareholders 1 Broker Research Coverage Van Eck 11.2% Argonaut James Wilson M&G Investment Mgt 6.3% Vinva 5.2% Canaccord Reg Spencer Institutional Shareholders 2 88% Citi Trent Allen Shares on issue 515M Credit Suisse Mik
Slide 48: Board of Directors
Board of Directors For personal use only 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 Mr Netscher is an experienced international mining in
Slide 49: Executive Leadership Team
Executive Leadership Team For personal use only Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with over Mr Campbell-Cowan i
Slide 50: 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 51: 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, For personal use only including cash operating costs. We believe that these measures provide meaningful information to ass
Slide 52: Investor Relations Enquiries
Investor Relations Enquiries For personal use only Rowan Cole Alistair Reid Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board, executive and members of Leonora management team, October 2017 at Gwalia. L to R: Jeff Waddington (GM HSEC), Bob Vass
St Barbara — BMO Capital Markets 27th Global Metals & Mining Conference 2018 on 6ix