St. Barbara Ltd. · ASX:SBM
St. Barbara — Citi 3rd Annual Australian & New Zealand Conference 2011
33 slides from St. Barbara's conference presentation, Oct 25, 2011
Slide 1: Presentation by Garth Campbell-Cowan, Chief Financial Officer
St Barbara Limited ACN 009 165 066 Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au For personal use only Presentation by Garth Campbell‐Cowan, Chief Financial Officer Attached is a pres
Slide 2: Proven Performance, Increasing Returns
Proven Performance, Increasing Returns For personal use only Garth Campbell-Cowan CFO Citi 3rd Annual Australian & New Zealand Conference 25 & 26 October 2011
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: One of Australia's largest gold companies
One of Australia’s largest gold companies - profitable, cash generating, exploring For personal use only Stock Code SBM (ASX) ASX market capitalisation(2) A$668 million Proven FY 11 performance A$69 million NPAT FY12 production(1) 320,000-350,000 oz Net Cash(2) A$71 million Ore Reserves(3) 2.8 Moz (
Slide 5: Proven performance - translating reserves into operating cash flows
Proven performance - translating reserves into operating cash flows For personal use only RESERVES PRODUCTION CASH FLOW* +130% +55% +$123M 2,756 117 258 166 1,200 -6 FY 06 FY 11 FY 06 FY 11 2006 2011 koz koz A$M As at 30 June 2006 and 30 June 2011 Year to 30 June 2006 and 30 June 2011 Year to 30 Jun
Slide 6: Proven performance – growing NPAT and EPS
Proven performance – growing NPAT and EPS For personal use only NPAT* EPS* +$50M +$0.12 54 A$0.35** A$0.17 A$0.05 4 FY 06 FY 11 FY 10 FY 11 FY 12 F A$M A$ Year to 30 June 2006 and 30 June 2011 * Underlying EPS * Underlying NPAT ** Factset FY12 Broker Consensus 5 Proven Performance, Increasing Return
Slide 7: September Quarter Gold Production
September Quarter Gold Production For personal use only Consolidated Gold Production 80 koz • Key factors underpinning 70 Q1 production: 60 • Grade improvement at Gwalia (7.4g/t Au compared to 7.0g/t Au in 50 FY11-Q4) • King of the Hills production up 40 • Southern Cross tonnage down 30 • Gold produ
Slide 8: Proven Operating Capability
For personal use only Proven Operating Capability Underground mining expertise 7 Proven Performance, Increasing Returns – October 2011
Slide 9: Two gold processing plants and three mines diversify operating risk
Two gold processing plants and three mines diversify operating risk For personal use only PRODUCTION GUIDANCE RANGE FY12 320,000 – 350,000 oz Leonora Operations Southern Cross Operations Ore Reserves: Ore Reserves: 11.2 Mt @ 7.0g/t Au for 2.5 Moz1,2 3.5 Mt @ 2.1g/t Au for 233 koz1 Mineral Resources:
Slide 10: Leonora Operations - engine room for cash generation
Leonora Operations - engine room for cash generation For personal use only Gwalia Mine Mine life: 12+ months (AT JUNE 2011) Expect to achieve sustainable gold Marvel Loch Mine production in FY12 of 175,000 to Processing capacity: 2.2Mtpa 190,000 ounces p.a. Ore Reserves: Forecast cash cost in FY
Slide 11: Leonora Operations - King of the Hills Mine
Leonora Operations - engine room for cash generation For personal use only King of the Hills Mine Satellite underground mine Successfully commissioned May 2011 Opportunity to fully use Gwalia mill capacity 55,000 to 60,000 ounces pa Life of 4 ½+ years 10 Proven Performance, Increasing Retu
Slide 12: Gwalia reserves increased to 2.0 Moz, open at depth
Gwalia reserves increased to 2.0 Moz, indicative 10 yr mine life, open at depth For personal use only Gold Contained Gwalia Deeps Tonnes Grade Gold Kt g/t Au koz Reserves 6,917 8.9 1,973 Resources 14,450 8.5 3,941 SBM UG Production 1,600Kt @ 6.1g/t Au (317Koz) 11 Proven Performance, Increasing Retur
Slide 13: Gwalia - growing production, improving margins and returns as grade increases
Gwalia - growing production, improving margins and returns as grade increases For personal use only GROWING GWALIA PRODUCTION INCREASING GRADE DRIVES LOWER CASH OPERATING COSTS FOR GWALIA 175-190 1400 9 8.0-8.5 g/t Au 8 1200 6.3 g/t Au 7 131 1000 6 109 138 765 800 5 109 610-640 4 600 3 400 2 200 1 0
Slide 14: Long life, high grade reserves
Long life, high grade reserves For personal use only 5,000 Reserve & Reserve Grade 7 6 4,000 5 3,000 4 3 2,000 2 1,000 1 0 0 Note: Based on most recently disclosed company filings as at 31 August 2011 13 Proven Performance, Increasing Returns – October 2011
Slide 15: Finance and Capital Management
For personal use only Finance and Capital Management 14 Proven Performance, Increasing Returns – October 2011
Slide 16: Strong balance sheet provides financial flexibility
Strong balance sheet provides financial flexibility For personal use only Net cash • Project development fully paid A$M 100 • Strong cash position, growing 90 86 progressively as production 80 71 increases in FY12 70 67 • Total debt at 30 September $4M 60 50 • Ready access to debt facilities 40 (if
Slide 17: Disciplined capital management adding value
Disciplined capital management adding value For personal use only A$M Capex 140 • Internal growth funded from 120 cash flows 100 • Decision on potential Leonora enhancements in 2H FY12 80 • Decisions based on robust 60 investment criteria 40 • Capital management reviewed regularly with the Board 20
Slide 18: Collar structure underpins revenue with low opportunity cost
Collar structure underpins revenue with low opportunity cost For personal use only A$M 800 Opportunity Cost 700 Revenue 600 500 400 300 200 100 0 A$1,600 A$1,800 A$2,000 Average Gold Price per Ounce Revenue based on midpoints of FY12 Guidance 17 Proven Performance, Increasing Returns - October 2011
Slide 19: Strong institutional share register, wide broker coverage
Strong institutional share register, wide broker coverage For personal use only Significant Shareholders1 Broker Research Coverage Argonaut Securities Troy Irvin Baillieu Ray Chantry M&G Investment Mgt 18.1% Tradewinds 6.4% Bell Potter Peter Chapman Hunter Hall 6.4% Citi Craig Sainsbury Franklin Res
Slide 20: Pathways to Increase Value
For personal use only Pathways to Increase Value 19 Proven Performance, Increasing Returns – October 2011
Slide 21: St Barbara - trading at a deep relative discount
St Barbara - trading at a deep relative discount For personal use only EV / FY12 EBITDA1,3 P/NAV4,5 12.7x 1.93x 1.54x 1.23x 8.5x 8.2x 1.15x 7.6x 0.91x 0.90x 0.89x 5.8x 0.78x 0.75x 0.74x 0.73x 0.72x 0.64x 4.7x 4.7x 0.60x 4.5x 0.51x 3.9x 3.7x 3.5x 3.2x 2.9x 2.6x 2.5x Oceanagold Integra Silver Lake All
Slide 22: #1 Strategy for growing value - investing in exploration for discoveries
#1 Strategy for growing value - investing in exploration for discoveries For personal use only 515,000 ounces of Indicated and Inferred Resources added in FY11 at Gwalia below 1,640 mbs for discovery cost of $16 per ounce INCREASING EXPLORATION EXPENDITURE $22M 37,000 m 22 8 $12M Drilling Salaries &
Slide 23: Focus on priority Leonora drilling targets for FY12
Focus on priority Leonora drilling targets for FY12 For personal use only • Gwalia Deeps • Phase 3 drilling approved for FY12 • Leonora • 3,000 m identified for testing identified targets under cover with potential for >1 Moz • New Targets • to be identified by studies, provides 10,000 m for geochem
Slide 24: Australia wide drilling targets
Australia wide drilling targets For personal use only • 4,500+ km2 of prospective land around Australia • 12 targets planned to be drilled in FY12* * subject to results 23 Proven Performance, Increasing Returns - October 2011
Slide 25: #2 Strategy for growing value - leveraging Leonora Operations
#2 Strategy for growing value - leveraging Leonora Operations For personal use only • Lowering cost and improving productivity at Gwalia • Haulage optimisation definitive feasibility study due 2H FY12 • Procurement focus already saved A$10M in 2 years • Business improvement program underway • Expans
Slide 26: Value in St Barbara today
Value in St Barbara today For personal use only • FY12 consensus EPS* up 106%** to $0.35 • Gwalia unit costs to fall & margins to lift with higher grades • Active drilling of prospective targets Australia wide • Strong balance sheet and growing cash provide financial flexibility • Proven performance
Slide 27: Investor Relations Enquiries
Proven Performance, Increasing Returns For personal use only Investor Relations Enquires: 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 26 Proven Performance,
Slide 28: Competent Persons Statement
Competent Persons Statement For personal use only References to Mineral Resources and exploration results presented in this References to Ore Reserves presented in this document have been produced in document have been produced in accordance with The Australasian Code for accordance with The Austral
Slide 29: Supporting documents
Supporting documents For personal use only • Mineral Resources Statement • Ore Reserves Statement • Southern Cross Operation • FY12 Guidance 28 Proven Performance, Increasing Returns - October 2011
Slide 30: Mineral Resources Statement as at June 2011
Mineral Resources Statement* as at 30 June 2011 For personal use only Region Category Measured Indicated Inferred Total Project Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Tonnes Gold Contained Notes Grade Gold Grade Gold Grade Gold Grade Gold Identified Mineral Resources have
Slide 31: Ore Reserves Statement as at 30 June 2011
Notes: •Cut-off grade = 2.5g/t Au. •Data is rounded to thousands of tonnes and thousands of ounces. Differences in totals may occur due to rounding. Ore Reserves Statement* as at 30 June 2011 For personal use only Region Category Proved Probable Total Tonnes Gold grade Gold Tonnes Gold grade Gold To
Slide 32: Southern Cross Operations generating positive cash flow
Southern Cross Operations generating positive cash flow For personal use only Marvel Loch Mature operation generating strong positive cash flows Prospective land for discovery Cash flow protected by options 31 Proven Performance, Increasing Returns – October 2011
Slide 33: FY Guidance
FY 12 Guidance For personal use only King of Marvel Gwalia Total the Hills Loch Leonora Leonora S’thn Cross Gold koz 175-190 55-60 90-100 320-350 production Cash operating 1,170 $/oz 610-640 710-750 - cost -1,220 Capex $M 55-60* 20-25 10-15 85-100 * Includes $12.6M of one off costs 32 Proven Perform
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