51 slides from St. Barbara's earnings presentation, Apr 20, 2016
Slide 1: Presentation on Q3 March 2016 Quarterly Report and audio webcast
ASX Release / 20 April 2016 For personal use only Presentation on Q3 March 2016 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q3 March 2016 Quarterly Report at 10:00 am Australian Eastern Standard Time (UTC + 10 hours)
Slide 2: Q3 March 2016 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 20 April 2016 For personal use only Q3 March 2016 Quarterly 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 ˃ Highlights For personal use only ˃ Safety ˃ Operations Results ˃ Exploration and Growth Studies ˃ Finance ˃ Conclusion ˃ Appendices 3 / Q3 March 2016 Quarterly Presentation
Slide 5: Highlights Q3 March 2016
Highlights Q3 March 2016 ˃ Consolidated FY16 gold production guidance increased to between 369 to 384 koz (was 354 to 379 koz) For personal use only ˃ Q3 gold production of 92 koz above expectation ˃ Gwalia materials handling conceptual study to be informed by deeper drilling ˃ exploration targeting
Slide 6: Start safe, stay safe
Start safe, stay safe For personal use only Total Recordable Injury Frequency Rate2 Safety performance 9.0 ˃ 31 March 2016 TRIFR1 a record low of 2.7 6.0 ˃ PNG Mining safety Week March 2016, focus on: 5.0 4.1 ˃ Boating 4.1 3.4 ˃ Light vehicles 2.7 ˃ Chainsaw FY 12 FY 13 FY 14 FY15 Q1 Q2 Q3 FY16 FY16
Slide 7: Consolidated gold production Q3 Mar 2016
Consolidated gold production Q3 Mar 2016 AISC For personal use only (A$/oz) 992 979 947 863 Q3 March FY16 Quarter: 798 ˃ Consolidated company production of 92 koz (Q2: 92 koz) Production (koz) 111 111 ˃ Gwalia 66 koz (Q2: 64 koz) 99 22 92 92 ˃ Simberi 25 koz (Q2: 28 koz) 30 12 27 ˃ Consolidated Q3 A
Slide 8: Gwalia gold production – FY16 guidance increased
Gwalia gold production – FY16 guidance increased to 260 – 265 koz (was 245 – 260 koz) For personal use only AISC (A$/oz) 860 846 770 Q3 March FY16 Quarter: 692 645 ˃ 66,147 oz produced in Q3 (Q2: 63,533 oz) Mined Grade 10.2 (g/t Au) 9.7 ˃ AISC1 of A$770/oz (Q2: A$846/oz) 8.6 9.7 7.9 June 2015 ˃ High
Slide 9: Simberi: koz for year to March 2016
Simberi: 110 koz for year to 31 March 2016 For personal use only AISC (A$/oz) 1,619 Q3 March FY16 Quarter: 1,404 1,310 1,252 ˃ 25,433 oz produced in Q3 (Q2: 28,379 oz) 1,149 ˃ 110,488 oz produced for the year to 31 March 2016, exceeding the 100,000 oz Production (koz) p.a. target run rate for the fo
Slide 10: Gwalia exploration program - update
Gwalia exploration program - update For personal use only Sunrise Gwalia, March 2016 9 / Q3 March 2016 Quarterly Presentation
Slide 11: Gwalia Deeps – Extension exploration Q4 and into FY17
Gwalia Deeps – Extension exploration Q4 and into FY17 2000 - 2200 mbs down plunge and Southern Extension For personal use only Figure 6.0 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 10 / Q3 March 2016 Quarterly Presentation
Slide 12: Gwalia exploration program - Summary
Gwalia exploration program - Summary For personal use only Exploration at Gwalia 3 programs > Northern Extension Target > 1800 – 2000 mbs > 2000 – 2200 mbs Down plunge plus Southern Extension Target Figure 5.0 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report M
Slide 13: Gwalia exploration – Northern Extension drilling target
Gwalia exploration – Northern Extension drilling target For personal use only Figure 3.0 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 12 / Q3 March 2016 Quarterly Presentation
Slide 14: Gwalia exploration – Northern Extension drilling target
Gwalia exploration – Northern Extension drilling target For personal use only Northern Extension > New program targeting prospective zones higher in the mine sequence. Intersections include1: > UGD2391 5.7m @ 12.6 g/t Au from 1,639 mbs > UGD2401 24.5m @ 5.3 g/t Au from 1,644 mbs > The intersections
Slide 15: Gwalia deep drilling results – 1800 to 2000 mbs
Gwalia deep drilling results – 1800 to 2000 mbs For personal use only New intercepts 1800- 2000 mbs > Confirm mineralised system extends predictably > Anticipated to be reflected in annual Resources and Reserves Statement. New intersections include1: > GWDD17BW1 South Gwalia Series 2 3.3m @ 28.6 g/t
Slide 16: Gwalia Deeps – Extension exploration Q4 and into FY17
Gwalia Deeps – Extension exploration Q4 and into FY17 2000 - 2200 mbs down plunge and Southern Extension For personal use only Figure 7.0 1. For details refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 15 / Q3 March 2016 Quarterly Presentation
Slide 17: Gwalia - materials handling update
Gwalia - materials handling update For personal use only 16 / Q3 March 2016 Quarterly Presentation
Slide 18: Gwalia - materials handling update
Gwalia - materials handling update ˃ Studies commenced in Q1 Sep 2015 in parallel with deep drill program to For personal use only ensure a materials handling solution available to support anticipated new resource estimation. ˃ Options included: ˃ 7m diameter blind sink shaft with skip hoisting ˃ 5m
Slide 19: Gwalia materials handling – comparison of options table
Gwalia materials handling – comparison of options table Option Capex1 Capex NPV2 NPV3 Construction Risk4 (ratio) (ratio) time For personal use only (A$M) (ratio) 2015 900 ktpa to Reserve 2,000 mbs Indicative results at conceptual study accuracy Trucking 65 1 1 1 n/a Low (and ventilation) Blind Sink
Slide 20: Gwalia materials handling – commentary on comparison of options
Gwalia materials handling –– Commentary on comparison of options table ˃ The benefits of each option need to be evaluated against capex and design and For personal use only execution complexity. ˃ The lost production during major underground construction is a significant consideration ˃ All the mate
Slide 21: Simberi Sulphide PFS
Simberi Sulphide PFS For personal use only 20 / Q3 March 2016 Quarterly Presentation
Slide 22: Simberi Sulphide PFS
Simberi Sulphide PFS Simberi: Mining at Pigibo 14 March 2016 For personal use only ˃ Project could extend mine life at ˃ Project will utilise existing Simberi by eight years (beyond infrastructure, incl. mills, wharf, current oxide mine life). airstrip, power station & camp. ˃ Independent review of
Slide 23: Simberi PNG – PFS parameters
Simberi PNG – PFS parameters Scope Produce and sell gold concentrate from sulphide ore and gold doré from oxide ore For personal use only 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 Capex US$1
Slide 24: Simberi Strategic Review
Simberi Strategic Review1 ˃ Company is evaluating Simberi Sulphide Project and its PNG assets For personal use only against the Company’s other potential investment opportunities ˃ Decision on the Sulphide Project will be required by Q3 March 2017 to maintain continuous production ˃ Cutfield Freeman
Slide 25: Cash and debt
Cash and debt June 14 June 15 Sep 15 Dec 15 Mar 16 For personal use only A$M A$M A$M A$M A$M Cash balance 1 79 77 115 100 114 Interest bearing debt FX 2 0.9430 0.7713 0.7010 0.7306 0.7657 ˃ US Senior Secured Notes US$ 250 196 183 180 168 ˃ Red Kite US$ 75 75 66 36 21 ˃ Total USD$ debt US$ 325 271 24
Slide 26: Debt and hedging at March 2016
Debt and hedging at 31 March 2016 US Senior Secured Notes For personal use only ˃ US$250 million issued March 2013, US$168 million balance at 31 Mar 2016 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a., matures April 2018 ˃ US$82 million repur
Slide 27: 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) 420 AUD Debt2,3 390 367 358 355 325 325 325 299 USD Debt2 271 249 248 233 216 189 179 108 115 114 Cash balance1 100 70 77 56 80 71 70 69 Cash Contribution4 57 10 32 FY15 FY15 FY15
Slide 28: Conclusion
Conclusion ˃ Continued strong gold production at Gwalia and Simberi in Q3 For personal use only has led to a further increase in FY16 production guidance and additional accelerated debt reduction ˃ FY16 guidance anticipates record annual production for both assets ˃ Gwalia: ˃ materials handling to b
Slide 29: Appendices
Appendices For personal use only Josephine Lakngnen – Truck Driver at Simberi, March 2016. 28 / Q3 March 2016 Quarterly Presentation
Slide 30: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec 1H Q3 Mar Q3 YTD Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 Production For personal use only Gwalia oz 248,142 72,388 63,533 135,921 66,147 202,068 260 to 265 koz (previously 245 to 260 koz) [3] King
Slide 31: St Barbara share price
St Barbara share price ASX:SBM For personal use only $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 31 Mar 16 Source: IRESS to 18 April 2016 30 / Q3 March 2016 Quarterly Presentation
Slide 32: St Barbara vs Comparator Group – Calendar 2015 US$ AISC and production
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and production Australian gold comparator group – CY 2015 For personal use only Production and US$ AISC 820 821 787 802 741 753 709 679 690 639 595 570 414 419 344 292 270 205 171 97 Gwalia St Barbara Alacer Oceana Evolution Saracen Regis North
Slide 33: St Barbara vs Comparator Group – cumulative production
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and cumulative production Global gold - CY 2015 For personal use only AISC costs (US$/oz) 1,400 Production and US$ AISC for 53 companies Average USD Gold price 2015 1,200 1,000 SBM 800 US$679 (red) 600 400 200 0 0 5 10 15 20 25 30 35 40 Cumulat
Slide 34: Three moving parts
‘Three moving parts’ For personal use only Gwalia Decide: Q2 Dec 2016 materials Start: ≈Q3 Mar 2017 full shaft handling Term: ≈12-24 mths vent(s) only Simberi Decide: Q3 Mar 2017 Start: ≈Q1 Sep 2017 invest divest sulphide Term: ≈24 mths Decide: Q4 Jun 2017 US$ Notes Mature: April 2018 payout in full
Slide 35: Gwalia materials handling - update
Gwalia materials handling- update For personal use only Sunrise Gwalia, March 2016 34 / Q3 March 2016 Quarterly Presentation
Slide 36: Gwalia materials handling – maximum production rate
Gwalia materials handling – maximum production rate Mining method Maximise production, constrained by: For personal use only 1) Waiting for adjacent/above stope’s paste fill to dry 2) Seismic support – not too many open stopes too close together 3) Ventilation – sucking out diesel and Historical bla
Slide 37: West Lode - results going into Resource and Reserves revision
West Lode - results going into Resource and Reserves revision For personal use only ˃ West Lode drilling now ceased with no further results. ˃ High grade zone of West Lode thins and ceases at ~1700 mbs ˃ High grade zones underneath West Lode interpreted as South Gwalia series ˃ Previous West Lode dr
Slide 38: Simberi: ore milled and material moved
Simberi: ore milled and material moved For personal use only Ore milled Ore and Waste Moved, tons and m3 last 5 quarters last 5 quarters Simberi Total Volume Moved (million m3) 1.2 1.1 1.1 0.9 0.8 859 832 = 2,606 750 768 743 = 2,417 Simberi Ore and 1,710 = 2,348 Waste Moved (kt) 1,541 1,625 = 1,882
Slide 39: Simberi Sulphide PFS – Update: Float circuit design
Simberi Sulphide PFS – Update Float circuit design For personal use only 38 / Q3 March 2016 Quarterly Presentation
Slide 40: Simberi Sulphide PFS – Update
Simberi Sulphide PFS – Update For personal use only Simberi - Sulphide material (left, grey) and oxide (right, brown) at Pigiput pit, Simberi 12 March 2016 39 / Q3 March 2016 Quarterly Presentation
Slide 41: Exploration: Developing portfolio
Exploration: Developing portfolio For personal use only Exploration > Centenary (WA) > Pinjin (WA) > Simberi + Banesa (PNG) 40 / Q3 March 2016 Quarterly Presentation
Slide 42: Exploration: Centenary
Exploration: Centenary For personal use only Centenary > In Q3 March 2016 St Barbara conducted electromagnetic (EM) survey work on Centenary Project approximately 60 km north of Leonora. > A second phase of drilling was undertaken with two drill holes completed. No significant intercepts were return
Slide 43: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA For personal use only Pinjin > The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of1,358 km2 > A significant aircore drilling program (of up to 25,000 metres) targeting 16 bedrock geochemical and geophysical targets co
Slide 44: Exploration: Focus on near mine targets at Simberi
Exploration: Focus on near mine targets at Simberi For personal use only Simberi PNG: Near mine exploration on Simberi continued in Q3 20161 Bekou South: > Seven bedrock samples returned >0.5 g/t Au, with a maximum of 3.7 g/t Au. > Fourteen trenches follow up trench samples include: > SIMTR961: 90m
Slide 45: Exploration: Big Tabar Island
Exploration: Big Tabar Island For personal use only Big Tabar Island Banesa: > Additional trench mapping and channel sampling was completed at Banesa Au-Cu prospect (EL609) to test for potential extensions NW and SE. Trenching results so far showed no significant mineralisation.1 Fotombar: > Reconna
Slide 46: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue For personal use only 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$1,163 M @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 377 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$980/oz ˃ A
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 50 / Q3 March 2016 Quarterly Presentation