St. Barbara Ltd. · ASX:SBM
St. Barbara — BNY Mellon Nasdaq International Designation Virtual Investor Conference 2018
52 slides from St. Barbara's conference presentation, Mar 21, 2018
Slide 1: Presentation to Nasdaq International Designation Virtual Investor Conference
ASX Release / 21 March 2018 Presentation to Nasdaq International Designation Virtual Investor Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending the Nasdaq International Designation Virtual Investor Conference today. Investor Relations
Slide 2: BNY Mellon NASDAQ Virtual Investor Conference
BOB VASSIE, MANAGING DIRECTOR & CEO \ 21 March 2018 BNY Mellon NASDAQ Virtual Investor Conference Ticker ASX: SBM ADR STBMY (5 ORD = 1 ADR)
Slide 3: Forward statements
Forward statements This presentation has been prepared by St Barbara Limited (“the Company”). The material contained presentation or its contents or otherwise arising in connection with it, including without limitation, in this presentation is for information purposes only. This presentation is not
Slide 4: Contents
Contents • St Barbara overview • Growth initiatives • Safety • Exploration • Operations • Conclusion Simberi operations, October 2017 3/ BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 (ASX: SBM), est. 1969 Commodity Gold (Au) Papua Simberi Operations Market cap1 A$2.1B @ A$4.02/sh (US$1.6B) New Guinea Shares1 515 M Liquidity2 4.3 M/day (0.8%) FY17 EPS3 A$0.32 (US$0.24) FY17 DPS A$0.06 (US$0.045) Cash4 A$215 M (US$168 M) Australia Leonora Operations Debt
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 FY18 FY18 • Increase in TRIFR to 2.4 to 31 Dec 2017 due to four low- severity recordable injuries • Program to prevent recurrence implemented • Corresponding LTIFR of 0.7 to 31 Dec 20
Slide 7: 1H FY18 key achievements
1H FY18 key achievements • Record consolidated half-year production1 of 198 koz Operational • Record low half-year AISC2 of A$899/oz (US$700/oz) excellence • AISC margin2 of A$761/oz (US$593/oz) • Full year guidance increased at both operations Financial • EBITDA margin of 49%1 • Strong cash flow fr
Slide 8: Balance Sheet
Balance Sheet US$M Cash and debt 200 168 100 124 102 Cash 75 59 0 -0.4 -0.2 Debt -100 -169 -200 -268 -300 -320 -400 FY14 FY15 FY16 FY17 1H FY18 • Cash balance at 31 December of A$215 M (US$168 M), no debt1 • Hedging in place as at 9 March 2018: • FY18: 36 koz forward contracts at average A$1,728/oz
Slide 9: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 11.7 10.7 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 Production 248 250 (koz) 214 AISC 185 183 679 (US$/oz) 863 700 570 592 131 1H = 109 127 @ 83 653 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 1
Slide 10: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 9/ BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 11: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Project includes new ventilation shafts and underground • A$15 M (US$12 M) capex spent in 1H FY18, crushing of waste, mixed with paste to fill emptied A$23 M (US$18 M) project capex spent to date stopes • Raise bore activities have commenced, reaming •
Slide 12: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Gwalia - March 2016 Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 11 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 13: Gwalia 5-year outlook
Gwalia 5-year outlook Mined Grade 11.7 (g/t Au) 10.7 9.3 9.8 8.8 8.4 8.9 8.2 8.1 7.7 6.9 6.7 6.3 5.7 Reserve Grade to 2140 mbs 7.8 g/t Au June 2017 290 280 Production 267 265 260 250 250 260 (koz) 248 240 240 without 214 hydraulic hoisting AISC 185 183 (US$/oz) 863 131 700 727 735 109 679 LoM to 570
Slide 14: Gwalia Mass Extraction
Gwalia Mass Extraction Slurry Hydraulic Hoisting - single stage pumping from 1500 mbs 2 duty and 1 stand-by Top-up water to surface slurry pipes from Tower Hill Top-up water from Tower Hill Top-up water from old workings 3 x 2 MW additional generators At 1500mbs, crusher, HPGR1, screens, mixer, agit
Slide 15: Gwalia – lowest expected mined depth
Gwalia – lowest expected mined depth Lowest Expected Mined Depth in Year mbs FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18F FY19F FY20F FY21F FY22F 1000 1100 1200 1220 1300 1400 1380 Mineral Resources 1420 Ore Reserves 1500 1500 1600 1540 1580 1620 1700 1800 1740 1780 1820 2000 2200 2140 2200 Or
Slide 16: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration • Initial analysis has informed working theory of Gwalia’s mineralisation • Allows re-analysis of surrounding zone to identify analogous potential ‘repeats’ • 3 target areas identified between 600 and 1,900 mbs north and south of Gwalia • Drill
Slide 17: Simberi production and cost profile
Simberi production and cost profile AISC (US$/oz) 2,111 1,218 941 895 932 125 116 115 Production 110 (koz) 80 Mill throughput (Mt) 44 3.7 1H = 71 3.3 2.7 1.7 FY14 FY15 FY16 FY17 FY18F Survey work in Sorowar pit, October 2017 FY18F AISC is midpoint of guidance, released 23 January 2018 in Q2 December
Slide 18: Simberi Strategic Review – one year on
Simberi Strategic Review – one year on • Decision in November 2016 to retain Simberi operating assets was the right one • Cash contribution1 since the decision to retain the asset is A$91 million • Simberi well placed to achieve improved FY18 production and cost guidance Quarterly cash contribution1
Slide 19: Simberi Sulphide – potential long life mine extension
Simberi Sulphide – potential long life mine extension 1.4 Moz Sulphide Reserve @ 3.5 g/t Au, 3.2 Moz Sulphide Resource @ 1.8 g/t Au Simberi Sulphide PFS Capex US$100 million • Focused exploration for sulphide ore Production 130,000 ounces over 8 years underway to improve project economics (1 Moz Sul
Slide 20: Exploration FY18 Guidance
Exploration FY18 Guidance - A$16 to 20 million (US$12 to 16 million) Leonora Region & Gwalia, WA • Gwalia Deep Drilling + Seismic • A$8 - 10 million (US$6 - 8 million) Pinjin, WA • Aircore drilling of targets identified in FY17 • A$4 - 5 million (US$3 – 4 million) Tabar Island Group, PNG • Simberi O
Slide 21: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report Q2 December 2017’ 20 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 22: Reserves and Resources as at June 2017
Reserves and Resources as at 30 June 2017 Ore Reserves (Moz) Gwalia Reserves 4.3 4.0 • Increased by net 325 koz after depletion 1.3 1.4 0.5 • Lower average grade 8.3 to 7.8 g/t Au 0.6 0.3 0.3 • Cost of discovery at depth in FY17 A$23/oz (US$17/oz) 1.8 2.1 Gwalia Resources FY16 FY17 • Increased by ne
Slide 23: 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 24: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report and Corporate Governance Statement Governance & Economic Performance • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Available on website at • Manage for long
Slide 25: Conclusion
Conclusion • Sustained operational performance; record half-year production1 and record low half-year AISC2 • Record profitability: underlying NPAT2 A$98 M (US$76 M) • A$215 M (US$168 M) cash at bank3, INSERT • A$0.04 cps fully franked interim dividend NEW PHOTO • Profitable growth options underway:
Slide 26: Appendices
Appendices 2600 mbs drill hole in progress at Gwalia, Feb 2018 25 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 27: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q4 Jun Year Q1 Sep Q2 Dec 1H Guidance Consolidated FY17 FY17 FY18 FY18 FY18 FY181 Production Gwalia oz 62,098 265,057 64,283 62,835 127,118 250 to 260 koz (prev. 245 to 260) Simberi oz 32,128 116,044 33,976 36,674 70,650 115 to 125
Slide 28: Consolidated Gold Production
Consolidated Gold Production AISC (Consolidated) (US$/oz) 657 700 682 687 700 1H FY18 Production Highlights Consolidated • Record 198 koz @ koz record-low AISC1 A$899/oz (US$700/oz) 194 191 190 198 • EBITDA margin of 49% 184 • FY18F 365-385 koz 58 53 71 52 63 Gwalia • 127 koz @ AISC A$838/oz (US$653
Slide 29: Interim dividend
Interim dividend Dividend (for first half 2018 financial year) • A$0.04 (US$0.03) per share, fully franked. • Dividends are considered at each financial reporting date • Amount influenced by financial performance, balance sheet, internal and external investment opportunities Dividend Reinvestment Pl
Slide 30: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in 2014, 2015, 2016-7 and 2018 and the only mining company to be certified this year. • 2017 Winner Excellence in Diversity Programs and Performance, National Women in Resources Awards • Overall pay equity gap reduced from 43% in 2007 to
Slide 31: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Australia Pinjin Greater Gwalia GMX Tower Hill Gwalia Catalyst Gwalia Metals Peel Extension Mine 16% Mining 16%. Inorganic growth Evaluating exploration, project, development and operating assets in a range of sizes in Austra
Slide 32: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program Gwalia - March 2016 For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report December 2017’ 31 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 33: Exploration | Gwalia Deep Drilling Program
Exploration | Gwalia Deep Drilling Program Gwalia - March 2016 For full explanation and results refer to ASX release 23 January 2018 ‘Quarterly Report December 2017’ 32 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 34: Gwalia mining | South West Branch ‘The Sweet Spot’
Gwalia mining | South West Branch ‘The Sweet Spot’ • Deepest FY17 production at 1,580 mbs • Planned FY18 mining primarily between 1,540 mbs and 1,620 mbs • Extend mine ~one level (40 meters) 1480MBS per annum Deepest level of mining, Q4 FY7, • Reserve grade 7.8 g/t Au1 1620 mbs • Resource model has
Slide 35: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves Depth of Ore Reserves mbs 30 Jun 2014 30 Jun 2015 30 Jun 2016 30 Jun 2017 1000 1.9 Moz 1.6 Moz 1.8 Moz 2.1 Moz 1200 1400 1540 1600 1740 1800 1940 2000 2140 2200 Ore Reserves and Mineral Resources Statements as at 30 June 2017 (released 23 August 2017), and correspondin
Slide 36: Gwalia GMX Mining Method
Gwalia GMX Mining Method 30m Strike x 40m High stopes with Island Pillars Looking North Looking West 30m 80m 15m 40m 25m Rock pillar 35 BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 37: Gwalia LoM to FY 2031 (with hydraulic hoisting)
Gwalia LoM to FY 2031 (with hydraulic hoisting) Table 1: 5-year key metrics (with hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 940 1,150 1,400 Mined grade g/t Au 11.7 9.8 8.1 7.7 6.7 Gold Production koz 250-260 250 240 280 290 AIS
Slide 38: Gwalia LoM to FY 2031 (without hydraulic hoisting)
Gwalia LoM to FY 2031 (without hydraulic hoisting) Table 2: 5-year key metrics (without hydraulic hoisting) Gwalia Key Metrics Guidance Outlook FY18F FY19 FY20 FY21 FY22 Underground ore mined kt 700 820 950 1,000 1,180 Mined grade g/t Au 11.7 9.7 7.9 8.3 6.5 Gold Production koz 250-260 250 240 260 2
Slide 39: Tabar Islands
Exploration | Tabar Island group, PNG, Q2 FY18 Tabar Islands • Simberi Pit mapping and geochemical review completed, Cu-Au porphyry hole commenced at Pigiput • Newcrest Option and Farm-in Surface (soil and rock chip) sampling program ongoing at central Tatau and Tupinda • First drill hole TTD084 com
Slide 40: Exploration | Tatau Island, PNG, Q2 FY18
Exploration | Tatau Island, PNG, Q2 FY18 Copper-gold porphyry exploration Newcrest Option and Farm-in • Surface (soil and rock chip) sampling program completed • Talik North prospect identified as priority drill target • First diamond drill hole completed for 997 metres, second hole started January
Slide 41: Gwalia Reserves and Resources
Gwalia Reserves and Resources Gwalia Reserves Gwalia Resources +406 +15 +1,061 +268 koz +316 koz -276 -274 5,087 2,133 1,808 3,896 June Mining Depth Geology Modifying June June Mining Depth Additions June 2016 depletion extension and design factors 2017 2016 depletion & extensions (above 1940) 2017
Slide 42: Gwalia Ore Reserves
Gwalia Ore Reserves Gwalia Ore Reserves 30 June 2016 200m depth Gwalia Ore Reserves extension of Ore 30 June 2017 Reserves Proved Probable Refer ASX announcement 23 August 2017 titled ‘Ore Reserves and Mineral Resources Statement 30 June 2017’. 41 / BNY Mellon NASDAQ Virtual Investor Conference, Mar
Slide 43: Simberi Reserves and Resources
Simberi Reserves and Resources Reserves +92 Oxide Reserves -116 • Additional Reserves offset depletion 1,897 1,873 • Mine life extended one year to mid FY20 koz Sulphides Reserves • Change in reserves based on improved geological June 2016 Mining depletion Op costs & model revision June 2017 interpr
Slide 44: Ore Reserves Summary as at June 2017
Ore Reserves Summary as at 30 June 2017 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) 2,308 9.8 725 6,248 7.0 1,408 8,556 7.8 2,133 Tower Hill, (WA) - - - 2,572 3.7 306 2,572 3.7 306 Sim
Slide 45: Mineral Resources Summary as at June 2017
Mineral Resources Summary as at 30 June 2017 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) 5,045 7.8 1,265 14,877 6.4 3,042 3,831 6.3 7
Slide 46: Predominantly institutional share register
Predominantly institutional share register Not analysed Australia 8% 35% Institutional 88% Non Institutional USA 32% 4% UK 15% Other 10% Not analysed 8% Data as at 12 January 2018 45 / BNY Mellon NASDAQ Virtual Investor Conference, March 2018
Slide 47: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 11.2% Argonaut James Wilson M&G Investment Mgt 6.3% Vinva 5.2% Canaccord Reg Spencer Institutional Shareholders 2 88% Citi Trent Allen Shares on issue 515M Credit Suisse Mike Slifirski American D
Slide 48: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed Director February 2014 Appointed July 2014 Appointed Chairman July 2015 Mr Vassie is a mining engineer with over 30 years Mr Netscher is an experienced international mining international mining ind
Slide 49: Executive Leadership Team
Executive Leadership Team Bob Vassie Garth Campbell-Cowan Rowan Cole Val Madsen Managing Director and CEO Chief Financial Officer Company Secretary GM Human Resources Appointed 2014 Joined 2006 Joined 2010 Joined 2013 Mr Vassie is a mining engineer with over Mr Campbell-Cowan is a Chartered Mr Cole
Slide 50: 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 51: 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 52: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary T: +61 3 8660 1900 E: [email protected] St Barbara Board, executive and members of Leonora management team, October 2017 at Gwalia. L to R: Jeff Waddington (GM HSEC), Bob Vassie (MD&CEO), Kous Kirsten(GM Leonora), Kerry Gleeson (Non-Execu
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