40 slides from St. Barbara's earnings presentation, Aug 22, 2018
Slide 1: Presentation on FY18 Financial Report and audio webcast
ASX Release / 22 August 2018 For personal use only Presentation on FY18 Financial Report and audio webcast Bob Vassie, Managing Director & CEO, and Garth Campbell-Cowan, Chief Financial Officer, will brief analysts and institutional investors on the full year financial results at 11:00 am Australian
Slide 2: FY18 Financial Results Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CHIEF FINANCIAL OFFICER / 22 August 2018 For personal use only FY18 Financial Results 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 • Overview • Exploration For personal use only • Safety • Strategy • Profit & Cash • Conclusion • Growth Gwalia mine - June 2018 Paste aggregate fill (PAF) chamber at Gwalia - June 2018 3 / FY18 Financial Results Presentation
Slide 5: FY18 Financial Results – Another Record Year
FY18 Financial Results – Another Record Year FY18 Financial Results – Another record year •Record annual production and record low AISC1 For personal use only Operational •Cornerstone Gwalia mine with Life of Mine Plan to FY31 excellence •Simberi mine life extension to FY21 •4th consecutive record p
Slide 6: St Barbara Safety Focus
St Barbara Safety Focus For personal use only Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.1 2.1 1.2 FY 13 FY 14 FY15 FY16 FY17 FY18 • TRIFR corresponds to 9 low range injuries in last 12 mths Elevated work platform at Gwalia - June 2018 • Corresponding LTIFR (lost time/ ’serious’ injury fr
Slide 7: Gwalia Production, Cost and Grade Profile
Gwalia Production, Cost and Grade Profile1 For personal use only Mined Grade (g/t Au) 12.5 10.7 10.5 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 267 265 268 260 Production (koz) 248 245 214 185 183 AISC (A$/oz) 940 950 841 802 131 783 785 109 83 FY09 FY10 FY11 FY12 FY13 FY14 F
Slide 8: Simberi Production and Cost Profile
Simberi Production and Cost Profile For personal use only 2,300 1,464 1,293 1,325 AISC1 1,187 1,068 (A$/oz) Production 135 (koz) 116 115 110 105 80 44 FY14 FY15 FY16 FY17 FY18 FY19F 2 Simberi processing plant, June 2018 – photo by Anna Mote 1. AISC is a non IFRS measure, refer corresponding slide in
Slide 9: FY18 Key financial metrics
FY18 Key financial metrics For personal use only 1,2 51 EBITDA margin % 50 47 2 62 Gwalia EBITDA margin % 64 60 2 44 Simberi EBITDA margin % 36 27 1,2 39 EPS (basic, cents) 32 26 1,2 37 Return on Equity (%) 44 49 12 Dividend per share (cents) 6 FY18 FY17 3 3.0 Dividend yield (%) 2.1 FY16 1. Underlyi
Slide 10: Profit Growth
Profit Growth Underlying EBITDA Underlying NPAT For personal use only A$M A$M 346 321 202 284 160 184 127 42 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EBITDA NPAT A$M 346 A$M 227 298 293 169 158 168 40 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EBITDA, Underlying EBITDA and Underlying NPAT are non IFRS m
Slide 11: Key Changes to Underlying Profit FY17 to FY18
Key Changes to Underlying Profit FY17 to FY181 For personal use only 16 6 25 1 -4 4 -4 -2 A$ Millions 202 160 FY17 Gross Profit - Gross Profit - Exploration Corporate & D&A Finance + FX Income tax Other FY18 Leonora Ops Simberi Ops Royalties expense 1. Underlying profit from continuing operations, N
Slide 12: Segment Profit and Cash Contribution From Operations
Segment Profit and Cash Contribution From Operations For personal use only Reportable segment profit / (loss) before tax1 Cash contribution from operations1, 2, 3 A$M A$M 249 255 244 220 219 198 186 139 78 83 70 51 34 33 -3 -33 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Leonora Simberi Leonora Simberi
Slide 13: Balance Sheet
Balance Sheet Cash and term deposits at FY18 of A$343M , no debt1 For personal use only A$M Cash, term deposits and debt 400 343 300 261 116 215 Term deposits 198 200 161 137 79 77 226 100 Cash 0 -1 -100 Debt -200 -226 -300 -340 -347 -400 FY14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 FY18 FY18 FY18 FY18 1. Amount
Slide 14: Paying Fully Franked Dividends
Paying Fully Franked Dividends For personal use only A$ FY18 final A$ dividend 0.08 5.00 • A$0.08 per share final FY17 final dividend, fully franked dividend 0.06 4.00 • Increase of 33% on final FY17 H1 FY18 dividend 3.00 Interim 0.04 • Total dividends for year of 2.00 12 cents, up 100% from FY17 1.
Slide 15: Mine Life Extensions
Mine Life Extensions Life of Mine Extensions For personal use only Gwalia FY16 2024 FY17 2024 FY18 2031 Simberi FY16 2018 FY17 2020 FY18 2021 2015 2020 2025 2030 2035 • Mine lives have been extended in FY18 based on Ore Reserves and Mineral Resources as at 30 June 2017, and the mining and haulage me
Slide 16: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Gwalia Extension Project (GEP) consists of • Raise bore activities progressing to For personal use only two main components, a ventilation schedule, first shaft hole complete and upgrade and paste aggregate fill (PAF)1 second surface shaft underway • B
Slide 17: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension Modelled ultimate pit shells1 with associated sulphide reserves For personal use only 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.1 Moz Sulphide Resource @ 1.8 g/t Au 2 • Focused exploration for sulphide ore underway to improve project economics • S
Slide 18: Exploration | Sorowar Pit sulphide drilling
Exploration | Sorowar Pit sulphide drilling For personal use only Best results include: SORDGC001 – 28m @ 1.37g/t Au from 114m, SORDGC002 – 19m @ 4.96g/t Au from 82m, SORDGC007 – 20m @ 8.42g/t Au from 60m; and 15m @ 7.08 g/t Au from 89m All intercepts downhole, for full explanation and results refer
Slide 19: Exploration | FY19 Guidance - A$21 to A$27 million
Exploration | FY19 Guidance - A$21 to A$27 million For personal use only A$9 – A$12 million Leonora • Greater Gwalia Area • Gwalia Deep Drilling • Gwalia Seismic A$4 – A$5 million Pinjin WA • Aircore drilling of identified targets A$8 – A$10 million PNG • Simberi Oxides/Sulphides and Porphyry • Tata
Slide 20: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production For personal use only Back Creek Pinjin Greater Australia Gwalia Catalyst Metals Peel Mining 16% Tower Gwalia 16%. Hill Extension Gwalia Gwalia GMX Mine Prodigy Duketon Gold2 Mining 10% 12% Inorganic growth Evaluating exploration, proje
Slide 21: Strategy for the next years – “stronger for longer”
Strategy for the next 5 years – “stronger for longer” For personal use only 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
Slide 22: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in For personal use only 2014-15, 2015-16, 2016-17 and 2017-18 and the only mining company to be certified in 2017-18 • 2017 Winner Excellence in Company Diversity Programs and Performance, Women in Resources National Awards • 2018 Winne
Slide 23: Conclusion
Conclusion For personal use only • Record year again – production, costs, profit and cash flow • 8 cent per share fully franked final dividend, 12 cent total dividends for year • Strong balance sheet, no debt • Mine life extended at both operations • Fully funded near-term growth options at current
Slide 24: Appendices
Appendices For personal use only Water sampling at Leonora - June 2018 23 / FY18 Financial Results Presentation
Slide 25: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary For personal use only Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Mar Year Final Guidance Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY18 FY18 FY191 St Barbara’s financial Year to Qtr to Qtr to Qtr to Qtr to Year to 30 June Year to 30 June Yea
Slide 26: Main current projects - timeline
Main current projects - timeline FY18 FY19 FY19 For personal use only Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 & beyond Gwalia Extension Project construction (completion due Q2 Dec FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 2600 mbs hole drilling analysis & further drilling 3D
Slide 27: FY18 Financial Summary
FY18 Financial Summary • Record underlying NPAT, EBITDA and cash flow from operations For personal use only • Debt free • A$343 million cash at bank and term deposits • Final fully franked dividend of 8c per share (12 cents total for FY18) FY18 FY17 Change EBITDA 1, 2 A$M 346 321 8% Underlying NPAT
Slide 28: Increasing Cash Balance
Increasing Cash Balance For personal use only A$M 343 82 46 261 Q4 movement net of: $7 M tax 17 215 Q3 movement net of: $4 M investments 37 198 Q2 movement net of: $16 M dividends 161 Q1 movement net of: $31 M tax $4 M investments $25 M dividends $12 M investments FY17 FY18 FY18 FY18 FY18 Q4 Jun Q1
Slide 29: FY18 Cash Movement
FY18 Cash Movement For personal use only Reconciliation of cash movement 83 255 -9 -14 -39 -32 -21 -41 A$M 343 161 Cash Jun 2017 Leonora Ops GEP Capex Simberi ops Corporate & Exploration Income tax Investments Dividends Cash Jun 2018 Other (inc. capex) 28 / FY18 Financial Results Presentation
Slide 30: FY18 Application of Cash
FY18 Application of Cash For personal use only 681 A$M -318 -14 5 -71 -21 -39 -41 218 182 Receipts Op costs & Exploration Capex Investments Income tax Cash surplus Other Dividends Change in Finance cash balance costs Note: Cash surplus = cash flow from operating less investing activities 29 / FY18 F
Slide 31: Gwalia Mass Extraction – PFS (Original)
Gwalia Mass Extraction – PFS (Original) • Pre-feasibility Study announced February 2018 For personal use only • Comprises selective “island pillar” mining and hydraulic hoisting • Supports mine life to FY31 30 / FY18 Financial Results Presentation For details refer to ASX release 26 July 2018 ‘Quart
Slide 32: Gwalia Mass Extraction – PFS (Alternative)
Gwalia Mass Extraction – PFS (Alternative) Feasibility Study considering alternative 3-stage crushing underground For personal use only • For details refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 31 / FY18 Financial Results Presentation
Slide 33: Exploration | Gwalia Deeps, Seismic and 2600 mbs targets
Exploration | Gwalia Deeps, Seismic and 2600 mbs targets Exploration Gwalia deep|drilling Gwaliaobjectives Deeps, Seismic and 2600 mbs targets For personal use only • Further drilling 2,000 to 2,200 mbs seeking to extend Indicated Resource • Additional targets identified from 3D seismic model For fu
Slide 34: Gwalia Deeps 1540 – 1580 schematic
Gwalia Deeps 1540 – 1580 schematic Gwalia Deeps 1540 – 1580 lode schematic For personal use only Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 33 / FY18 Financial Results Presentation
Slide 35: Gwalia – lowest expected mined depth
Gwalia – lowest expected mined depth For personal use only Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 Mineral Resources 1400 Ore Reserves 1380 deepest mineralised intersection 1420 1500 1500 1600 1540 158
Slide 36: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves 2.5 For personal use only 0.27 Moz Production 2.0 0.21 Moz 0.27 Moz 0.25 Moz Ore Reserves 1.5 At end of year (+ production during year) Reserves (Moz) 1.0 2.1 Moz 1.9 Moz 1.8 Moz 1.6 Moz 0.5 0.0 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 0 Maximum Depth 500 of Ore
Slide 37: Exploration activities
Exploration activities Exploration activities For personal use only Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 26 July 2018 ‘Quarterly Report Q4 June FY18’ 36 / FY18 Financial Results Presentation
Slide 38: 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 39: 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, including cash operating costs. We believe that these measures provide meaningful information to assist management, invest
Slide 40: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole David Cotterell For personal use only Company Secretary Manager Investor Relations T: +61 3 8660 1900 E: info@stbarbara.com.au Gwalia Board visit November 2017, Underground, L to R: Ashleigh Smyth - Graduate Geologist, Kerry Gleeson – Director, 39 / FY18 Finan