St. Barbara Ltd. · ASX:SBM
St. Barbara — Q4 FY2019 Earnings Presentation
48 slides from St. Barbara's earnings presentation, Jul 24, 2019
Slide 1: Presentation on Q4 June FY19 Quarterly Report and audio webcast
ASX Release / 24 July 2019 Presentation on Q4 June FY19 Quarterly Report and audio webcast Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q4 June FY19 Quarterly Report at 11:00 am Australian Eastern Standard Time (UTC + 10 hours) on Wednesday 24 July 2019
Slide 2: Q4 June FY19 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 24 July 2019 ASX:SBM Q4 June FY19 Quarterly Presentation
Slide 3: Disclaimer
Disclaimer 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, securities in the Compa
Slide 4: Contents
Contents • Highlights • Exploration • Safety • Growth • Operations • Conclusion • Projects • Appendices Manager Processing and Company Secretary at Leonora Operations. 3 / Q4 June FY19 Quarterly Presentation
Slide 5: Highlights Q4 June FY19
Highlights Q4 June FY19 • 86 koz at AISC1 of A$1,219/oz (Q3: 88 koz at A$1,098/oz) Operational • Simberi record production and cash flow for FY19 excellence • Continued successful Gwalia deep drilling and exploration • Operational cash contribution2 of $58 M (Q3: $71 M) Financial • A$682/oz cash con
Slide 6: Transformational Acquisition Consistent with our Strategy "Stronger for Longer"
Transformational Acquisition Consistent with our Strategy "Stronger for Longer" Substantial, low cost production from an established mining Diversify • jurisdiction CY19 forecast production of 92 – 98 koz at an AISC of C$695 – production base • 755/oz (A$740 – 803/oz)1, with pathway to 200+ koz pr
Slide 7: Acquisition of Atlantic Adds a Low Cost Producer with Expansion Pipeline and Exploration Potential
Acquisition of Atlantic Adds a Low Cost Producer with Expansion Pipeline and Exploration Potential Acquiring a great team of talented people who deliver Key statistics CY18 production 91 koz Touquoy is a high quality producing asset in an established mining jurisdiction CY19 production 92 – 98 k
Slide 8: Atlantic Gold
Atlantic Gold Touquoy Halifax 7 / Q4 June FY19 Quarterly Presentation
Slide 9: Focus on Safety
Focus on Safety Total Recordable Injury Frequency Rate1 St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3 5.0 5.0 2.9 4.1 2.2 2.8 2.9 1.9 2.1 2.1 1.1 1.2 FY15 FY16 FY17 FY18 FY19 FY19 FY19 FY19 St Barbara WA Gold WA Metal, WA Metal, Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q4 FY19 Surfac
Slide 10: Consolidated Q4 June FY19 Results
Consolidated Q4 June FY19 Results AISC (A$/oz) Q4 FY19 Production 1400 1,108 1,098 1,219 1200 • Consolidated 86 koz (Q3: 88 koz) 919 812 FY19 average $1,080/oz 1000 800 • Gwalia 50 koz (Q3: 54 koz) 600 • Simberi 36 koz (Q3: 34 koz) Gold Production (koz) 400 119 200 0 35 99 89 Q4 FY19 AISC1 88 86 36
Slide 11: Gwalia Q4 June FY19 Results
Gwalia Q4 June FY19 Results AISC (A$/oz) 1,230 1,081 1,016 Q4 FY19 Production 833 679 FY19 average $1,027/oz • 49,966 oz (Q3: 54,261 oz) • AISC1 A$1,230/oz (Q3: A$1,016/oz) Mined grade (g/t Au) 13.4 12.4 • The sequential nature of the mine plan, 11.7 10.4 10.0 and continued ventilation constraints l
Slide 12: Gwalia production and cost profile
Gwalia production and cost profile AISC (A$/oz) FY19 performance 1,2603 841 783 785 802 1,027 • Production 220 koz (FY18: 268 koz) • AISC1 A$1,027/oz (FY18: A$802/oz) FY20 guidance Production (koz) • Production of 200 to 210 koz 267 265 268 • AISC1 of A$1,230 to A$1,290/oz 248 220 210 • Sustaining c
Slide 13: Simberi Q4 June FY19 Results
Simberi Q4 June FY19 Results AISC (A$/oz) 1,229 1,203 1,135 1,068 1,146 FY19 average $1,162/oz Q4 FY19 Production • 36,231 oz (Q3: 34,097 oz) Production • AISC1 A$1,203/oz (Q3: A$1,229/oz) (koz) • Milled grade 1.68 g/t Au (Q3: 1.83 g/t 34.9 35.9 36.0 34.1 36.2 Au), from higher grade zones in Sorowar
Slide 14: Simberi production and cost profile
Simberi production and cost profile AISC (A$/oz) FY19 performance 1,464 1,293 1,187 1,068 1,162 1,3682 • Fifth consecutive record annual production 142 koz (FY18: 135 koz) • AISC1 A$1,162/oz (FY18: A$1,068/oz) • Improved grade (FY19: 1.64 g/t Au, Production 142 (koz) 135 FY18: 1.35 g/t Au) 125 110 1
Slide 15: Atlantic Gold production and cost profile
Atlantic Gold production and cost profile AISC (A$/oz) 923 FY19 performance 791 761 727 • Production 93 koz • AISC1 A$787/oz (YTD Q3 FY19) Production 27.6 FY20 guidance (koz) • Guidance due to be released in the 22.3 22.5 22.9 Q1 September FY20 quarterly report 19.6 FY 18 FY19 FY19 FY19 FY19 Q4 Jun
Slide 16: Consolidated FY19 results & FY20 guidance
Consolidated FY19 results & FY20 guidance AISC FY19 Consolidated Results (A$/oz) 1,080 1,300 • Production of 362 koz 907 891 • AISC1 A$1080/oz Production (koz) 381 403 362 FY20 Consolidated Guidance 323 116 135 • Production 310 to 335 koz 142 118 • AISC A$1,250/oz to A$1,350/oz • Sustaining capex A$
Slide 17: Increasing Cash Balance
Increasing Cash Balance 1000 A$M 891 800 480 A$780 600 purchase price for 29 Atlantic 400 25 Gold 7 7 411 Q3 movement net of: 382 Q4 movement net of: 343 Q1 movement net of: 350 Q2 movement net of: 357 $28 M dividends $46 M tax $19 M growth capex $20 M growth capex 200 $14 M dividends $10 M explorat
Slide 18: Cash Generation and Usage
Cash Generation and Usage A$M 150 508 105 Operational cash contribution 100 79 76 71 58 Net cash movement for qtr 50 82 Corp. costs & royalties, explr. & working cap. 29 25 Strategic investments 0 7 7 -7 -14 -8 -10 -28 -4 -4 -20 Leonora - growth capital -4 -46 -2 -6 -19 -11 -9 -50 -4 Income tax paym
Slide 19: 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 Q3 March FY202 • A$100 million spent on project to date • PAF crushing circuit on
Slide 20: Gwalia | Total material moved
Gwalia | Total material moved Gwalia total material moved (kt) Impact of GEP on trucking capacity 267 • Excavation of the approx. 11 m high x 260 262 252 256 10 m wide chambers at 1,420 and 26 20 19 32 1,460 mbs for the PAF circuit 41 106 commenced in Q1 Sep FY17 69 82 78 • Raise-boring of the four
Slide 21: Gwalia | Future indicative production profile
Gwalia | Future indicative production profile Gwalia – future indicative • H1 FY20 ventilation constrained until production profile1 GEP is complete • H2 FY20 production will compete with Production (koz) development 230 230 • Opportunity to improve anticipated 220 210 200 production profile by achi
Slide 22: Exploration | Key Developments
Exploration | Key Developments Gwalia, WA • Continued testing of southern extensions to orebody returned extensive intervals of mineralised alteration and quartz veining, providing new information on direction and thickening of the lode system Jessie Alma, WA • RC drilling continued testing targets
Slide 23: Exploration | Gwalia Deeps
Exploration | Gwalia Deeps Gwalia Deep Drilling • Daughter holes GWDD16K, GWDD16L and GWDD16M intersected the mine sequence at 2,000 - 2,100 mbs • Parent hole GWDD23 and daughter holes GWDD23A, GWDD23B and GWDD23C targeted the orebody at 2,100 - 2,200 mbs • Significant results include1: o 14.5 m at
Slide 24: 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): 185SRDH008: • 16 m at 2.25 g/t Au from 210 m 150SRDH031: • 17 m at 3.66 g/t Au fro
Slide 25: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’. See also slide 37. 24 / Q4 June FY19 Quarterly Presentation
Slide 26: Exploration | Summary of greenfields projects
Exploration | Summary of greenfields projects Pinjin, WA • Completed a 30 hole RC drill program testing four targets and a 178 hole aircore drill program which tested seven targets • Land and lake aircore drilling is planned for Q1 September FY20 to test five new targets Tabar Islands, PNG • Simberi
Slide 27: 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 28: Growth Pipeline
Growth Pipeline Atlantic Gold is a Strong Strategic Fit within St Barbara's Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Gwalia Australia Catalyst Horn Metals Peel Island Mining 14% Gwalia Au, EJV3 GMX 16%. Tower Gwalia Gwalia Prodigy Aust. Hill Mine Exte
Slide 29: Conclusion
Conclusion • Completed Atlantic Gold acquisition, adding a low cost, high margin operation with growth pipeline and exploration potential • Current operations continue to perform well • Significant drilling results at Gwalia Deeps and regionally • Continued positive Simberi Sulphide drilling results
Slide 30: Appendices
Appendices Sunrise on Lake Rebecca. Photo by Nora O’Keeffe. 29 / Q4 June FY19 Quarterly Presentation
Slide 31: Diversity and Sustainability | Developments in Q4 FY19
Diversity and Sustainability | Developments in Q4 FY19 Leonora sponsorships • Netball WA. St Barbara supports Gold Industry Group’s $5 million partnership with Netball WA. The largest ever investment in women’s sport in the state, the proceeds will benefit from the grassroots level through to the el
Slide 32: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY18 FY19 FY19 FY19 FY19 FY19 FY191 FY20 St Barbara’s financial year Year to 30 Qtr to Qtr to Qtr to 9 months to Year to 30 June Year to 30 June 2019 Year to 30 Ju
Slide 33: Exploration FY20 Guidance – A$20 to A$28 million
Exploration FY20 Guidance – A$20 to A$28 million A$7 – A$9 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling A$5 – A$7 million Pinjin, Lake Wells and Back Creek • Geophysics/aircore drilling of identified targets A$8 – A$12 million PNG • Simberi Oxides/Sulphides and Porphyry Atlantic Gold
Slide 34: Exploration | Gwalia Deep Drilling
Exploration | Gwalia Deep Drilling For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 33 / Q4 June FY19 Quarterly Presentation
Slide 35: Exploration | Seismic Targets
Exploration | Seismic Targets For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 34 / Q4 June FY19 Quarterly Presentation
Slide 36: Exploration | Seismic Targets
Exploration | Seismic Targets For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 35 / Q4 June FY19 Quarterly Presentation
Slide 37: Exploration | Jessie Alma
Exploration | Jessie Alma • An 18 hole RC drilling program was completed in April testing a 1.6km strike south of Tower Hill and 500 m west of the Gwalia Open Pit. • Significant results from this program include (all intercepts down-hole): o 6.0 m @ 8.6 g/t Au from 283 m (JARC004) o 1.0 m @ 6.3 g/t
Slide 38: Exploration | Simberi Island, PNG
Exploration | Simberi Island, PNG For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 37 / Q4 June FY19 Quarterly Presentation
Slide 39: Exploration | Pinjin
Exploration | Pinjin For full explanation and results refer to ASX release 24 July 2019 ‘Quarterly Report Q4 June FY19’ 38 / Q4 June FY19 Quarterly Presentation
Slide 40: 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 41: Hedging Summary at 24 July 2019
Hedging Summary at 24 July 2019 Financial Volume Price $/oz Delivery Announced Year ounces (all monthly instalments) FY20 42,000 A$1,750 July and December 2019 7 & 19 Feb 2018 and 7 (8,000 of initial 50,000 ounces delivered year to date since 1 July 2019) Mar 2018 FY20 24,000 A$1,809 January and Jun
Slide 42: 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 43: 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 44: Atlantic Ore Reserves Summary per March 2019 Release
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 45: Atlantic Mineral Resources Summary per March 2019 Release
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 46: 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 47: Non-IFRS Measures and Scheduled Announcements
Non-IFRS Measures and Scheduled Announcements 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
Slide 48: 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