St. Barbara Ltd. · ASX:SBM
St. Barbara — Diggers & Dealers Mining Forum 2016
31 slides from St. Barbara's conference presentation, Aug 1, 2016
Slide 1: Presentation to Diggers and Dealers Mining Forum
ASX Release / 1 August 2016 Presentation to Diggers and Dealers Mining Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to the Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Relatio
Slide 2: Diggers & Dealers Mining Forum
BOB VASSIE, MANAGING DIRECTOR & CEO / 1 August 2016 Diggers & Dealers Mining Forum
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: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production ˃ Shares on issue 495 M ˃ Ore Reserves June 2015 4.0 Moz 1 ˃ FY16 387 koz @ AISC4 A$933/oz ˃ Market Cap2 A$1,510 M ˃ Mineral Resources June 2015 9.2 Moz 1 ˃ FY17F3 355 koz @ AISC A$1,030/oz ˃ ADR OTC code STBMY
Slide 5: Overview
Overview ˃ Turnaround complete ˃ Record annual gold production and guidance exceeded ˃ Record safety performance: TRIFR2 of 2.1 ˃ Best performing stock in the ASX200 FY16 (↑418%)3 ˃ Strong cash flow generation ˃ FY16 AISC A$933 / oz ˃ Cash contribution1 A$275 million for FY16 ˃ US$ debt reduced US$1
Slide 6: Start safe, stay safe
Start safe, stay safe Record safety result of 2.1 for FY16 Total Recordable Injury Frequency Rate 1,2 9.0 6.0 5.0 4.1 4.1 3.4 2.7 2.1 St Barbara’s award winning Emergency Response Teams from Gwalia FY 12 FY 13 FY 14 FY15 Q1 Q2 Q3 Q4 (top) and Simberi (bottom) FY16 FY16 FY16 FY16 1. Total Recordable
Slide 7: Leonora, Western Australia
Leonora, Western Australia Gwalia Haul Road Underground Mining Trucks Gwalia Gwalia –Absorption ‘State Hotel’ Chiller Plant Byrnecut Jumbo Underground Drill Rig 6/ Diggers & Dealers Mining Forum – 1 August 2016
Slide 8: Gwalia: production increasing year on year
Gwalia: production increasing year on year Mined Grade 9.3 8.8 8.9 (g/t Au) 8.2 8.4 6.9 6.3 5.7 267 265 Production 248 245 (koz) 214 185 183 AISC 940 (A$/oz) 841 880 131 783 109 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 F Gwalia –Absorption Chiller Plant Gwalia – Absorption Chiller Pl
Slide 9: Simberi, Papua New Guinea
Simberi, Papua New Guinea Josephine Lakngnen – Truck Driver at Simberi, March 2016 8/ Diggers & Dealers Mining Forum – 1 August 2016
Slide 10: Simberi: Record FY16, gold production up 39%
Simberi: Record FY16, gold production up 39% AISC (A$/oz) 2,458 FY16 1,464 1,410 1,293 ˃ Record production 110,286 oz ˃ AISC1 A$1,293 /oz Production (koz) 110 105 ˃ Mine output up 57% Y on Y to 9.9 Mt 95 80 FY17 ˃ Improved mining practice and resource 44 offset by more complex mining and anticipated
Slide 11: Simberi Sulphide PFS & Strategic Review
Simberi Sulphide PFS & Strategic Review Simberi – Pigibo pit > Sulphide Project - assess additional > Strategic review of PNG assets to investment against potential eight year maximize shareholder value mine life extension 10 / Diggers & Dealers Mining Forum – 1 August 2016
Slide 12: Profitable growth options
Profitable growth options Existing opportunities > Gwalia mine extension study well advanced > Simberi strategic review underway > Exploration in WA and PNG Eyes open for other opportunities > Consider sensible inorganic growth where it increases shareholder value > Systematic evaluation process und
Slide 13: Gwalia mine extension
Gwalia mine extension Materials handling study outcome > Continued trucking with additional ventilation > Investment decision due by end CY16 > Commence Q3 Mar 2017, anticipate 18-24 month construction > Capital cost est. A$65 million (±20% at conceptual study accuracy) Gwalia - Bogging > Facilitate
Slide 14: Gwalia exploration program - summary
Gwalia exploration program - summary Q4 June 2016 Results1 > 2,200 mbs deep drilling > Southern Extension > Northern Extension FY17 > Continued deep drilling & Northern Extension > Seismic Reflective campaign 13 / Diggers & Dealers Mining Forum – 1 August 2016 1. For full explanation and results ref
Slide 15: Gwalia Deeps Exploration
Gwalia Deeps Exploration New intercepts at 2200 mbs1 ˃ Deepest intersection to date ˃ 200 m deeper vertically and 430 m further down-plunge than previous drilling ˃ Intersected over 70m of mineralised Gwalia mine sequence 14 / Diggers & Dealers Mining Forum – 1 August 2016 1. For full explanation an
Slide 16: Conceptual illustration of Gwalia ventilation solution
Conceptual illustration of Gwalia ventilation solution Twin vent shafts New primary New bulk air cooler exhaust fans • Increases both Existing bulk fresh air intake and air cooler Existing primary exhaust capacity exhaust fans Multiple lifts • Reduces diameter of • Keeps lengths of individual shafts
Slide 17: Exploration FY17 Guidance
Exploration FY17 Guidance Guidance A$18 to A$22 million A$10- A$12 million Gwalia ˃ Gwalia Deep Drilling infill + Northern Extension ˃ Gwalia Seismic A$8- A$10 million – 30% Pinjin WA, 70% PNG ˃ Pinjin – complete drilling ˃ Simberi Oxides – near mine ˃ Tatau Copper- Gold ˃ Tatau Oxides/Sulphides 16
Slide 18: FY17 PNG Exploration Focus
FY17 PNG Exploration Focus Simberi > Near mine oxide drilling & trenching Tatau > Preparing to drill anomaly near historical copper- gold prospect at Mt Letam > Further copper- gold zones in Southwest Tatau as well as Sulphide/Oxide targets Big Tabar > Historical copper-gold prospect Monun Creek, Si
Slide 19: FY17 Exploration Focus – Pinjin (WA)
FY17 Exploration Focus – Pinjin (WA) Pinjin Project > Located 150 km northeast of Kalgoorlie, WA > Comprises 1,358 km2 tenement package > 288 holes drilled to date for a total of 14,385 m with 7 positive intersections1 18 / Diggers & Dealers Mining Forum – 1 August 2016 1. For full explanation and r
Slide 20: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ $4.00 $3,000 Top performing stock in the ASX 200 in FY20162 $3.50 Top performing stock in the ASX 300 in CY20151 $2,500 $3.00 $2,000 $2.50 A$ gold (RHS) $2.00 $1,500 $1.50 US$ gold $1,000 $1.00 (RHS) ASX: XGD (RHS x 2) $500 $0.50 SBM (LHS) $0.00 $0 30 Jun
Slide 21: St Barbara share price vs gold, indexed from June 2014
St Barbara share price vs gold in A$ and US$ Indexed from 30 June 2014 3500% Top performing stock in the ASX 200 in FY20162 3000% Top performing stock in the ASX 300 in CY20151 2500% ASX:SBM 2000% 1500% 1000% 500% ASX: XGD A$ gold 0% US$ gold 30 Jun 14 30 Sep 14 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep
Slide 22: St Barbara vs selected Australian gold companies
St Barbara vs Comparator Group - FY16 St Barbara vs selected Australian gold companies koz / Reserves, FY16 Production, A$M FCF and FCF Yield Moz 1000 A$M 21% 25% (Reserves) (Production 9 &900 FCF) 18% 17% 20% 15% 14% 14% 14% 8 800 804 15% 10% 7 700 10% 6 600 5.9 601 1% 5% 5 500 5.5 561 FCF Yield %
Slide 23: Conclusion
Conclusion ˃ Turnaround complete ˃ Strong production and cash flow outlook ˃ Record safety performance ˃ Profitable growth options in current portfolio: ˃ Gwalia ˃ Pinjin ˃ Simberi & Tatau ˃ Eyes open for new opportunities 22 / Diggers & Dealers Mining Forum – 1 August 2016
Slide 24: Questions?
Questions? Shadows silhouetted viewing an ore pass, Gwalia mine, January 2016 23 / Diggers & Dealers Mining Forum – 1 August 2016
Slide 25: Appendices
Appendices Simberi, March 2016 24 / Diggers & Dealers Mining Forum – 1 August 2016
Slide 26: Cash and Debt
Cash and Debt Debt, Cash Balance & Contribution from Operations 420 (FY15 to present) AUD Debt2,3 390 367 355 358 325 325 299 271 325 249 248 USD Debt2 216 229 189 168 172 108 115 114 100 128 Cash balance1 70 77 137 56 70 69 80 71 69 57 A Cash 10 32 Contribution4 FY15 FY15 FY15 FY15 FY16 FY16 FY16 F
Slide 27: 'Three moving parts'
‘Three moving parts’ Gwalia Decide: Q2 Dec 2016 Start: ≈Q3 Mar 2017 ventilation materials Term: ≈18-24 mths only handling Simberi Decide: Q3 Mar 2017 Start: ≈Q1 Sep 2017 invest divest sulphide Term: ≈24 mths US$ Notes Decide: Q4 Jun 2017 payout cash Mature: April 2018 in full at 18 Jul 2016 payout i
Slide 28: Gwalia production increased 8% in FY16
Gwalia production increased 8% in FY16 Ore passes Underground Storage Allows bogger to work At critical times shorter waste removal constantly, independent turnaround time gives greater availability of of ore trucks, removes ore trucks for taking ore to surface from fired stopes more rapidly, allowi
Slide 29: 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 30: 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 31: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Garth Campbell-Cowan Company Secretary Chief Financial Officer T: +61 3 8660 1900 E: info@stbarbara.com.au St Barbara Board and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), 30 / Diggers & Dealers M