St. Barbara Ltd. · ASX:SBM
St. Barbara — Melbourne Mining Club - Cutting Edge Series (May 2016)
90 slides from St. Barbara's conference presentation, May 17, 2016
Slide 1: Presentation to Melbourne Mining Club
17 May 2016 Presentation to Melbourne Mining Club Bob Vassie, Managing Director and CEO, will present to the Melbourne Mining Club today (www.melbourneminingclub.com/events/cutting-edge/). Attached are the presentation and a handout to attendees. Investor Relations Mr Rowan Cole Company Secretary +6
Slide 2: 2014 to 2016 Turnaround
BOB VASSIE, MANAGING DIRECTOR & CEO / 17 May 2016 Melbourne Mining Club - Cutting Edge Series 2014 to 2016 Turnaround
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: Outline
Outline ˃ Overview ˃ Safety ˃ Turnaround ˃ Growth ˃ Comparisons ˃ Questions Simberi power station, processing plant, workshops, ROM, ropecon, Pigiput Bay – March 2016 3/ Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 5: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 ˃ Market Cap A$1.3 Billion 2 ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ Mineral Resources 30 June 2015 9.2 Moz 1 Simberi ˃ FY15A 377 koz @ AISC A$1,007/oz ˃ Open pit mine ˃ FY16F 3 377 koz @ AISC A$980/oz ˃ FY16F production Simberi 100 –
Slide 6: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate 1,2 12.5 9.0 6.0 5.0 4.1 4.1 3.4 2.7 FY 11 FY 12 FY 13 FY 14 FY15 Q1 Q2 Q3 FY16 FY16 FY16 1. Total Recordable Injury Frequency Rate (12 month avg) 5/ Melbourne Mining Club – Cutting Edge Series 17 May 2016 2. TRIFR includes Pacific Operati
Slide 7: New MD & CEO July 2014 – decisions, decisions
New MD & CEO July 2014 – decisions, decisions…. FY14 cash movement1 Assessment 140 -71 Simberi ˃ make profitable or stop -39 Gold Ridge ˃ stabilize, minimize spend, divest -21 - -42 Corporate ˃ ‘right size’ A$ million Included redundancies $3M, corporate royalties $9M -55 Exploration ˃ reduce spend,
Slide 8: Leonora, Western Australia
Leonora, Western Australia Gwalia Haul Road New generation Sandvik Underground Mining Truck Gwalia –Absorption Chiller Plant Byrnecut Jumbo Underground Drill Rig 7/ Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 9: Gwalia: production increasing year on year
Gwalia: production increasing year on year Mined Grade (g/t Au) 8.8 8.9 June 2015 Reserve grade 8.2 8.4 9.4 g/t Au1 6.9 5.7 6.3 265 Range 260 248 Production 214 (koz) 185 183 131 109 83 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 F 1. Refer ASX announcement released 25 August 2015 titled ‘Ore Re
Slide 10: Simberi, Papua New Guinea
Simberi, Papua New Guinea Josephine Lakngnen – Truck Driver at Simberi, March 2016 9/ Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 11: Simberi production
Simberi production AISC 1 (A$/oz) 2,205 1,619 1,404 1,310 1,252 1,319 1,149 29.5 Production 28.4 (koz) 27.1 25.4 22.5 17.3 12.7 FY 15 FY 15 FY 15 FY 15 FY 16 FY 16 FY 16 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec Q3 Mar 10 / Melbourne Mining Club – Cutting Edge Series 17 May 2016 1. AISC is a non IFR
Slide 12: Cash and Debt FY15 and H1 FY16
Cash and Debt FY15 and H1 FY16 Debt, Cash Balance & Contribution from Operations 420 (FY15 to present) AUD Debt2,3 390 367 358 355 325 325 325 299 271 USD Debt2 249 248 233 216 189 179 108 115 114 100 Cash balance1 70 77 56 70 69 80 71 Cash Contribution4 57 10 32 FY15 FY15 FY15 FY15 FY16 FY16 FY16 A
Slide 13: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ $4.00 $1,800 $3.50 $1,600 A$ gold (RHS) $1,400 $3.00 $1,200 $2.50 US$ gold (RHS) SBM rejoins ASX 200 $1,000 $2.00 $800 M’cap A$1B $1.50 Gold Ridge sold $600 Simberi cash flow $1.00 positive Dec 2014 $400 SBM rejoins ASX 300 $0.50 $200 SBM (LHS) US$54M deb
Slide 14: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program Gwalia Processing Plant Gwalia deep drilling by DDH1 at night Gwalia deep drill cores Atlas Copco MT6020 Mining trucks 13 / Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 15: Gwalia Deeps – Extension exploration
Gwalia Deeps – Extension exploration Q4 and into FY17 2000 - 2200 mbs down plunge and Southern Extension 14 / Melbourne Mining Club – Cutting Edge Series 17 May 2016 For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’
Slide 16: Gwalia exploration program - summary
Gwalia exploration program - summary Exploration at Gwalia 3 programs > Northern Extension Target > 1800 – 2000 mbs > 2000 – 2200 mbs Down plunge plus Southern Extension Target 15 / Melbourne Mining Club – Cutting Edge Series 17 May 2016 For full explanation and results refer to ASX release 19 April
Slide 17: Simberi Sulphide PFS & Strategic Review
Simberi Sulphide PFS & Strategic Review > Sulphide Project - need to assess > Strategic review announced Feb 2016 to additional investment against potential evaluate Sulphide Project against other eight year mine life extension potential investment opportunities 16 / Melbourne Mining Club – Cutting
Slide 18: Three moving parts
‘Three moving parts’ Gwalia Decide: Q2 Dec 2016 materials Start: ≈Q3 Mar 2017 full shaft handling Term: ≈12-24 mths vent(s) only Simberi Decide: Q3 Mar 2017 Start: ≈Q1 Sep 2017 invest divest sulphide Term: ≈24 mths Decide: Q4 Jun 2017 US$ Notes Mature: April 2018 payout in full cash at 31 Mar 2016 p
Slide 19: Exploration – Focus on Three Projects
Exploration – Focus on Three Projects Simberi Island Group (PNG) Centenary (WA) Pinjin (WA) 18 / Melbourne Mining Club – Cutting Edge Series 17 May 2016 For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’
Slide 20: Australian gold comparator group – CY 2015
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and production Australian gold comparator group – CY 2015 Production and US$ AISC 802 820 821 787 741 753 690 709 679 595 563 570 414 419 344 292 270 205 171 97 Gwalia St Barbara Alacer Oceana Evolution Saracen Regis Northern Resolute Doray Sta
Slide 21: Valuation comparison with selected ASX peers
Valuation comparison with selected ASX peers EV / EBITDA (CY16 estimate)1 16.2x 12.3x 9.3x 6.3x 5.9x 5.2x 5.0x 4.6x 4.5x 3.9x 3.3x KCN SAR IGO RRL OGC PRU NST SBM EVN BDR DRM 1. Enterprise Value and EBITDA are not IFRS measures, refer corresponding slide in Appendix. 20 / Melbourne Mining Club – Cut
Slide 22: EV/Production (A$/oz)
St Barbara vs other gold companies, ASX & globally Free cash flow, Enterprise Value, Production 10,000 Bubble size = production rate (kozpa) DGC CN NGD US 9,000 RRS LN AEM US 8,000 GG US ABX US 7,000 NCM EGO US EV/Production (A$/oz) 6,000 BTG US AUY US AQG 5,000 NEM US RRL 4,000 EVN KGC US ANG SJ GF
Slide 23: Global gold - CY 2015
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and cumulative production AISC costs (US$/oz) Global gold - CY 2015 1,400 Production and US$ AISC for 53 companies Average USD Gold price 2015 1,200 1,000 SBM 800 US$679/oz 600 400 200 0 0 5 10 15 20 25 30 35 40 Cumulative production (Moz) Asia
Slide 24: Questions?
Questions? Shadows silhouetted viewing an ore pass, Gwalia mine, January 2016 23 / Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 25: 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 26: 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 27: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: [email protected] 26 / Melbourne Mining Club – Cutting Edge Series 17 May 2016
Slide 28: St Barbara Limited – Australia / Pacific Gold Producer
BOB VASSIE, MANAGING DIRECTOR & CEO / 17 May 2016 Melbourne Mining Club – Cutting Edge Series St Barbara Limited – Australia / Pacific Gold Producer
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by St Barbara Limited (“the Company”). The material Investors are cautioned not to place undue reliance on such statements. contained in this presentation is for information purposes only. This presentation is not an This presentation has been prepared
Slide 30: Gold Miner of the year 2015
Gold Miner of the year 20151 Best performing ASX 300 stock in 2015, up 1,257%2 ASX 200 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue 495 M ˃ FY15A 377 koz ˃ Market Cap A$1,203 M 4 @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 3 ˃ FY16F5 377 koz ˃ Mineral Resources 30 June
Slide 31: Contents
Contents ˃ Overview ˃ Highlights ˃ Safety ˃ Operations ˃ Exploration and Growth ˃ Cash, debt, hedging ˃ Conclusion ˃ Appendices Rainbow over Simberi processing plant, January 2016 4 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 32: Highlights Q3 March 2016
Highlights Q3 March 2016 ˃ Consolidated FY16 gold production guidance increased to between 369 to 384 koz (was 354 to 379 koz) ˃ Q3 gold production of 92 koz above expectation ˃ Gwalia materials handling conceptual study to be informed by deeper drilling ˃ exploration targeting potential new Norther
Slide 33: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate2 Safety performance 9.0 ˃ 31 March 2016 TRIFR1 a record low of 2.7 6.0 ˃ PNG Mining safety Week March 2016, focus on: 5.0 4.1 ˃ Boating 4.1 3.4 ˃ Light vehicles 2.7 ˃ Chainsaw FY 12 FY 13 FY 14 FY15 Q1 Q2 Q3 FY16 FY16 FY16 1. Total Recorda
Slide 34: Consolidated gold production Q3 Mar 2016
Consolidated gold production Q3 Mar 2016 AISC (A$/oz) 992 979 947 863 Q3 March FY16 Quarter: 798 ˃ Consolidated company production of 92 koz (Q2: 92 koz) Production (koz) 111 111 ˃ Gwalia 66 koz (Q2: 64 koz) 99 22 92 92 ˃ Simberi 25 koz (Q2: 28 koz) 30 12 27 ˃ Consolidated Q3 AISC1 A$947/oz 9 28 25
Slide 35: Leonora, Western Australia
Leonora, Western Australia Gwalia Haul Road New generation Sandvik Underground Mining Truck Gwalia –Absorption Chiller Plant Byrnecut Jumbo Underground Drill Rig 8 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 36: Gwalia: production increasing year on year
Gwalia: production increasing year on year ˃ FY15 AISC1 A$841/oz Mined Grade (g/t Au) June 2015 8.8 8.9 ˃ Reserves at 30 June 20152: 8.2 8.4 Reserve grade 9.4 g/t Au 6.9 5.3 Mt @ 9.4 g/t Au for 1.6 5.7 6.3 265 Range Moz 260 248 ˃ Improvement projects 214 ˃ designed to increase 185 183 production rat
Slide 37: Gwalia gold production – FY16 guidance increased
Gwalia gold production – FY16 guidance increased to 260 – 265 koz (was 245 – 260 koz) AISC (A$/oz) 860 846 770 Q3 March FY16 Quarter: 692 645 ˃ 66,147 oz produced in Q3 (Q2: 63,533 oz) Mined Grade 10.2 (g/t Au) 9.7 ˃ AISC1 of A$770/oz (Q2: A$846/oz) 8.6 9.7 7.9 June 2015 ˃ Higher than expected mined
Slide 38: Simberi, Papua New Guinea
Simberi, Papua New Guinea Staff BBQ & Relaxation Deck Ropecon looking east to Pigiput Bay and plant below Hitachi 1200 Excavation loading Bell 50D Articulated Dump Truck SAG Mill 11 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 39: Simberi – status
Simberi – status Simberi: ˃ profitable since month of December 2014 ˃ produced at target 100,000 ounce per annum production run rate since month of December 2014 ˃ produced 107, 553 ounces of gold in CY 2015 ˃ forecast to produce between 100,000 and 110,000 ounces for FY16 ˃ approx. 3 years of oxide
Slide 40: Simberi: 110 koz for year to 31 March 2016
Simberi: 110 koz for year to 31 March 2016 AISC (A$/oz) 2,205 Q3 March FY16 Quarter: ˃ 25,433 oz produced in Q3 (Q2: 28,379 oz) 1,619 ˃ 110,488 oz produced for the year to 31 1,404 1,310 1,252 1,319 March 2016, exceeding the 100,000 oz 1,149 p.a. target run rate for the fourth consecutive quarter Pr
Slide 41: Gwalia exploration program
Gwalia exploration program Sunrise at Gwalia, March 2016 14 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 42: Gwalia Deeps – Extension exploration
Gwalia Deeps – Extension exploration Q4 and into FY17 2000 - 2200 mbs down plunge and Southern Extension 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 15 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 43: Gwalia exploration program - Summary
Gwalia exploration program - Summary Exploration at Gwalia 3 programs > Northern Extension Target > 1800 – 2000 mbs > 2000 – 2200 mbs Down plunge plus Southern Extension Target 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 16 / Melbourne Mining
Slide 44: Gwalia exploration – Northern Extension drilling target
Gwalia exploration – Northern Extension drilling target 1. For full explanation and results refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 17 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 45: Gwalia exploration – Northern Extension drilling target
Gwalia exploration – Northern Extension drilling target Northern Extension > New program targeting prospective zones higher in the mine sequence. Intersections include1: > UGD2391 5.7m @ 12.6 g/t Au from 1,639 mbs > UGD2401 24.5m @ 5.3 g/t Au from 1,644 mbs > The intersections are less than 100m awa
Slide 46: Gwalia deep drilling results – 1800 to 2000 mbs
Gwalia deep drilling results – 1800 to 2000 mbs New intercepts 1800- 2000 mbs > Confirm mineralised system extends predictably > Anticipated to be reflected in annual Resources and Reserves Statement. New intersections include1: > GWDD17BW1 South Gwalia Series 2 3.3m @ 28.6 g/t Au from 2,057 mbs > G
Slide 47: Gwalia Deeps – Extension exploration
Gwalia Deeps – Extension exploration Q4 and into FY17 2000 - 2200 mbs down plunge and Southern Extension 1. For details refer to ASX release 19 April 2016 ‘Quarterly Report March 2016’ 20 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 48: Gwalia - materials handling update
Gwalia - materials handling update 21 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 49: Gwalia - materials handling update
Gwalia - materials handling update ˃ Studies commenced in Q1 Sep 2015 in parallel with deep drill program to ensure a materials handling solution available to support anticipated new resource estimation. ˃ Options included: ˃ 7m diameter blind sink shaft with skip hoisting ˃ 5m diameter raise bore s
Slide 50: Gwalia materials handling – comparison of options table
Gwalia materials handling – comparison of options table Option Capex1 Capex NPV2 NPV3 Construction Risk4 (A$M) (ratio5) (ratio5) (ratio5) time 2015 900 ktpa to Reserve 2,000 mbs Indicative results at conceptual study accuracy Trucking (and 65 1: 1: 1: n/a Low ventilation) Blind Sink 220 3.4 0.6 0.9
Slide 51: Gwalia materials handling – commentary on options
Gwalia materials handling –– Commentary on comparison of options table ˃ The benefits of each option need to be evaluated against capex and design and execution complexity. ˃ The lost production during major underground construction is a significant consideration ˃ All the materials handling options
Slide 52: Simberi Sulphide PFS
Simberi Sulphide PFS Simberi: Mining at Pigibo, 14 March 2016 ˃ Project could extend mine life at ˃ Project will utilise existing Simberi by eight years (beyond infrastructure, incl. mills, wharf, current oxide mine life). airstrip, power station & camp. ˃ Independent review of the underlying ˃ Flot
Slide 53: Simberi PNG – PFS parameters
Simberi PNG – PFS parameters Scope Produce and sell gold concentrate from sulphide ore and gold doré from oxide ore Ore Reserves Sulphide: 19.9 Mt @ 2.0 g/t Au for 1,285 koz of contained gold at 30 June 20151 Oxide: 19.1 Mt @ 1.3 g/t Au for 818 koz of contained gold2 Capex US$100 million (A$135 mill
Slide 54: Simberi Strategic Review
Simberi Strategic Review1 ˃ Company is evaluating Simberi Sulphide Project and its PNG assets against the Company’s other potential investment opportunities ˃ Decision on the Sulphide Project will be required by Q3 March 2017 to maintain continuous production ˃ Cutfield Freeman & Co assisting the Co
Slide 55: Exploration: Focus on near mine targets at Simberi
Exploration: Focus on near mine targets at Simberi Simberi PNG: Near mine exploration on Simberi continued in Q3 20161 Bekou South: > Seven bedrock samples returned >0.5 g/t Au, with a maximum of 3.7 g/t Au. > Recent trench sample results include > SIMTR961 90m@ 1.3 g/t Au > SIMTR962 35m @ 1.9 g/t A
Slide 56: Exploration: Big Tabar Island
Exploration: Big Tabar Island Big Tabar Island Banesa: > Additional trench mapping and channel sampling was completed at Banesa Au-Cu prospect (EL609) to test for potential extensions NW and SE. Results are pending.1 Fotombar: > Reconnaissance mapping, rock chip and float sampling commenced at Fotom
Slide 57: Exploration: Centenary
Exploration: Centenary Centenary > In Q3 March 2016 St Barbara conducted electromagnetic (EM) survey work on Centenary Project approximately 60 km north of Leonora. > A second phase of drilling was undertaken with two drill holes completed. No significant intercepts were returned. > High powered, sy
Slide 58: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA Pinjin > The Pinjin Project is located 150km northeast of Kalgoorlie WA, comprising a large tenement package of 1,358 km2 > A significant aircore drilling program (of up to 25,000 metres) targeting 16 bedrock geochemical and geophysical targets commenced in the March
Slide 59: Cash and Debt FY15 and FY16 YTD
Cash and Debt FY15 and FY16 YTD Debt, Cash Balance & Contribution from Operations (FY15 to present) 420 AUD Debt2,3 390 367 358 355 325 325 325 299 USD Debt2 271 249 248 233 216 189 179 108 115 114 Cash balance1 100 70 77 56 80 71 70 69 Cash Contribution4 57 10 32 FY15 FY15 FY15 FY15 FY16 FY16 FY16
Slide 60: Cash and debt
Cash and debt June 14 June 15 Sep 15 Dec 15 Mar 16 A$M A$M A$M A$M A$M Cash balance 1 79 77 115 100 114 Interest bearing debt FX 2 0.9430 0.7713 0.7010 0.7306 0.7657 ˃ US Senior Secured Notes US$ 250 196 183 180 168 ˃ Red Kite US$ 75 75 66 36 21 ˃ Total USD$ debt US$ 325 271 249 216 189 ˃ A$ equival
Slide 61: Debt and hedging at 31 March 2016
Debt and hedging at 31 March 2016 US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 31 Mar 2016 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest payments fixed at 8.875% p.a., matures April 2018 ˃ US$82 million repurchased between June 20
Slide 62: Conclusion
Conclusion ˃ Continued strong gold production at Gwalia and Simberi in Q3 has led to a further increase in FY16 production guidance and additional accelerated debt reduction ˃ FY16 guidance anticipates record annual production for both assets ˃ Gwalia: ˃ materials handling to be informed by deep dri
Slide 63: Appendices
Appendices Shadows silhouetted viewing an ore pass in Gwalia mine, January 2016 36 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 64: 1H FY16 Headlines: Record 1H profit and cash flow
1H FY16 Headlines: Record 1H profit and cash flow ˃ Statutory profit after tax $77 million ˃ Up 28% on 2H FY15 of $60 million ˃ Underlying net profit after tax1 $60 million ˃ Up 40% on 2H FY15 of $43 million ˃ Cash flow from operations $123 million ˃ Up 35% on 2H FY15 of $91 million ˃ Accelerated de
Slide 65: 1H FY16 Financial Summary
1H FY16 Financial Summary1 1H 2H 1H FY16 FY15 FY15 Gold price Average gold price realised A$/oz 1,564 1,461 1,411 All-In Sustaining Cost3 A$/oz 922 882 1,166 Result ˃ Statutory profit after tax A$M 77 60 (20) ˃ Underlying net profit/(loss) after tax 3 A$M 60 43 (1) ˃ EBITDA 3 A$M 161 92 57 ˃ Underly
Slide 66: EV/Production (A$/oz)
St Barbara vs other gold companies, ASX & globally Free cash flow, Enterprise Value, Production 10,000 Bubble size = production rate (kozpa) DGC CN NGD US 9,000 RRS LN AEM US 8,000 GG US ABX US 7,000 NCM EGO US EV/Production (A$/oz) 6,000 BTG US AUY US AQG 5,000 NEM US RRL 4,000 EVN KGC US ANG SJ GF
Slide 67: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ $4.00 $1,800 $3.50 $1,600 A$ gold (RHS) $1,400 $3.00 $1,200 US$ gold $2.50 (RHS) SBM rejoins ASX 200 $1,000 $2.00 $800 M’cap A$1B $1.50 Gold Ridge sold $600 Simberi cash flow $1.00 positive Dec 2014 $400 SBM rejoins ASX 300 $0.50 $200 SBM (LHS) US$54M deb
Slide 68: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec 1H Q3 Mar Q3 YTD Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 Production Gwalia oz 248,142 72,388 63,533 135,921 66,147 202,068 260 to 265 koz (previously 245 to 260 koz) [3] King of the Hills oz 49,67
Slide 69: St Barbara Emergency Response Teams: International success
St Barbara Emergency Response Teams: International success St Barbara WA: Winners in 3 categories and overall winners, CME (WA) Eastern Regional Council 2015 Underground Mine Emergency Response Competition, held at Kanowna Belle WA, November 2015 Gwalia Gwalia –– Underground Underground mining mini
Slide 70: Australian gold comparator group – CY 2015
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and production Australian gold comparator group – CY 2015 Production and US$ AISC 820 821 787 802 741 753 709 679 690 595 563 570 414 419 344 292 270 205 171 97 Gwalia St Barbara Alacer Oceana Evolution Saracen Regis Northern Resolute Doray Sta
Slide 71: Global gold - CY 2015
St Barbara vs Comparator Group – Calendar 2015 US$ AISC and cumulative production AISC costs (US$/oz) Global gold - CY 2015 1,400 Production and US$ AISC for 53 companies Average USD Gold price 2015 1,200 1,000 SBM 800 US$679 (red) 600 400 200 0 0 5 10 15 20 25 30 35 40 Cumulative production (Moz) A
Slide 72: Three moving parts
‘Three moving parts’ Gwalia Decide: Q2 Dec 2016 materials Start: ≈Q3 Mar 2017 full shaft handling Term: ≈12-24 mths vent(s) only Simberi Decide: Q3 Mar 2017 Start: ≈Q1 Sep 2017 invest divest sulphide Term: ≈24 mths Decide: Q4 Jun 2017 US$ Notes Mature: April 2018 payout in full cash at 31 Mar 2016 p
Slide 73: Leonora, Western Australia
Leonora, Western Australia Gwalia Processing plant Gwalia Gwalia –– Underground Underground mining mining Truck Truck Gwalia – New Absorption Chiller Plant Underground drilling 46 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 74: Gwalia - West Lode drilling results to be considered
Gwalia - West Lode drilling results to be considered ˃ West Lode drilling now ceased with no further results. ˃ High grade zone of West Lode thins and ceases at ~1700 mbs ˃ High grade zones underneath West Lode interpreted as South Gwalia series ˃ Previous West Lode drilling results will be consider
Slide 75: Gwalia materials handling – maximum production rate
Gwalia materials handling – maximum production rate Mining method Maximise production, constrained by: 1) Waiting for adjacent/above stope’s paste fill to dry 2) Seismic support – not too many open stopes too close together 3) Ventilation – sucking out diesel and Historical blast fumes and cooling s
Slide 76: Developments at Gwalia in FY15
Developments at Gwalia in FY15 ˃ New absorption chiller plant utilises waste heat from power plant ˃ Deep HV Cable drop to 1,400 mbs ˃ New mining techniques improve production and efficiency Ore Pass system: increases efficiency of trucking and bogging Underground waste storage: allows greater propo
Slide 77: Gwalia Mining Strategy
Gwalia Mining Strategy Dual Lift Stoping in SWB Mining method ˃ mining sequence manages the hanging wall ˃ Long hole stoping with fill FY11 ˃ North & South access on 2 two dual lift levels gives 4 mining areas 1 ˃ Greater percentage of 5 free bogging increases productivity of each 4 stope ˃ Sill dri
Slide 78: Simberi
Simberi 51 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 79: Simberi Ore Delivery System
Simberi Ore Delivery System FEEDER BREAKER ROPECON (CV02) 2.7km long Aerial Rope Conveyor CV03/CV10 Overland Conveyor SAG APRON FEEDER CV01 Fixed Speed Feed Conveyor CV04 / STACKER 52 / Melbourne Mining Club Cutting Edge 17 May 2016
Slide 80: Organic Growth – Simberi sulphide
Organic Growth – Simberi sulphide Simberi – Sorowar pit – 13 Aug 2015 (oxide ore being mined, exposing the sulphide wall behind) Sulphide mining at Simberi potentially extends life based on existing reserve, open at depth1 Simberi oxide mine life ~3 years1 Oxide mining pre-strips for sulphide mining
Slide 81: Ore Reserves Summary as at 30 June 2015
Ore Reserves Summary as at 30 June 2015 Project Proved Probable Total Tonnes (k) Au koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t g/t Gwalia (WA) 2,100 9.1 614 3,190 9.6 980 5,290 9.4 1,594 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 3,800 1.5 178 15,317 1.3 660 19,117 1.
Slide 82: Mineral Resources Summary as at 30 June 2015
Mineral Resources Summary as at 30 June 2015 Project Measured Indicated Inferred Total Tonnes Au koz Tonnes Au koz Tonnes Au koz Tonnes (k) Au koz (k) g/t (k) g/t (k) g/t g/t Gwalia (WA) 4,781 7.2 1,112 6,112 9.3 1,833 2,036 5.5 359 12,929 7.9 3,304 King of the Hills - - - 799 5.5 142 71 12.3 28 870
Slide 83: Ore Reserves & Mineral Resources at June 2015
Ore Reserves & Mineral Resources at 30 June 2015 ˃ Ore Reserves & Resources reduced via production depletion and sale of Gold Ridge Ore Reserves and % of Ore Reserves 1 Mineral Resources 1 13.16 Leonora, 9.22 WA 47% Simberi, 5.16 PNG 4.02 53% FY 14 FY 15 Mineral Resources Ore Reserves 1. Refer ASX a
Slide 84: Strong institutional share register
Strong institutional share register Top 100 Shareholding Structure Australia Not analysed Institutional 35% 13% 75% USA 27% Non UK 17% Institutional 12% Other 8% Not analysed 13% Analysis and geographic spread of Top 100 Shareholders as at 15 April 2016 57 / Melbourne Mining Club Cutting Edge 17 May
Slide 85: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Significant Shareholders 1 Broker Research Coverage Argonaut Patrick Chang M&G Investment Mgt 12% Hunter Hall 11% Canaccord Reg Spencer Van Eck Associates Corporation 6% Credit Suisse Mike Slifirski Franklin Resources Inc 6% Deutsche Bank Brett Mckay M
Slide 86: Board of Directors
Board of Directors Tim Netscher Bob Vassie Chairman– Non Executive Managing Director and CEO Appointed February 2014 Appointed July 2014 Mr Netscher was appointed as a Non- Mr Vassie is a mining engineer with 30 Executive Director in February 2014, and as years international mining industry Non-Exec
Slide 87: Executive Leadership Team
Executive Leadership Team Bob Vassie Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with 30 years international mining industry experience, including as Managing Director and CEO of Inova Resources Limited (formerly Ivanhoe Australia Limited) and 18 years with Rio Tinto in a
Slide 88: 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 89: 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 90: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Company Secretary Garth Campbell-Cowan Chief Financial Officer T: +61 3 8660 1900 E: [email protected] 63 / Melbourne Mining Club Cutting Edge 17 May 2016
St Barbara — Melbourne Mining Club - Cutting Edge Series (May 2016) on 6ix