St. Barbara Ltd. · ASX:SBM
St. Barbara — Non-Deal Roadshow (March 2016)
63 slides from St. Barbara's roadshow presentation, March 2016
Slide 1: Asia Investor Relations Roadshow
BOB VASSIE, MANAGING DIRECTOR & CEO GARTH CAMPBELL-COWAN, CFO March 2016 Asia Investor Relations Roadshow St Barbara – Australia/Pacific Gold Producer
Slide 2: Forward statements
Forward statements 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 p
Slide 3: Contents
Contents ˃ Presenters ˃ Overview & headlines ˃ Operations ˃ Safety ˃ Leonora (WA) ˃ Simberi (PNG) ˃ Half year results ˃ Cash, debt, hedging ˃ Exploration ˃ Summary ˃ ‘3 moving parts’ ˃ Appendices Rainbow over Simberi processing plant, January 2016 3 / Asia Investor Relations Roadshow / March 2016
Slide 4: Presenters
Presenters 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 range of senio
Slide 5: Overview of operations
Overview of operations ASX 300 listed Company (SBM), founded 1969 Consolidated ˃ Shares on issue 495 M ˃ FY15A 377 koz ˃ Market Cap2 A$1.2 billion @ AISC A$1,007/oz ˃ Ore Reserves 30 June 2015 4.0 Moz 1 ˃ FY16F3 367 koz ˃ Mineral Resources 30 June 2015 9.2 Moz 1 @ AISC A$1,025/oz ˃ ADR OTC code STBM
Slide 6: 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 $91 million ˃ Accelerated de
Slide 7: 1H FY16 Financial Summary
1H FY16 Financial Summary1 1H 2H 1H FY16 FY15 FY15 Gold price Average gold price realised A$/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 8: Consolidated Gold Production
Consolidated Gold Production AISC (Consolidated) (A$/oz) 1,374 1,305 1H FY16 Operations Highlights 1,167 ˃ Consolidated production 882 922 • 203 koz ˃ Record production for: 211 190 203 • Gwalia 136 koz 184 50 29 16 167 58 • Simberi 58 koz 21 24 30 27 34 36 23 9 ˃ Simberi production • 108 koz for CY
Slide 9: Start safe, stay safe
Start safe, stay safe Total Recordable Injury Frequency Rate Safety performance 12.5 ˃ Record low TRIFR1 of 3.4 at Q2 FY16 9.0 ˃ Continued good results for mixed jurisdiction underground / open pit combination 6.0 ˃ Simberi Emergency Response 5.0 4.1 4.1 Team multi prize winners at 2015 3.4 national
Slide 10: Leonora, Western Australia
Leonora, Western Australia Gwalia Haul Road New generation Sandvik Underground Mining Truck Gwalia –Absorption Chiller Plant Byrnecut Jumbo Underground Drill Rig 10 / Asia Investor Relations Roadshow / March 2016
Slide 11: Gwalia: production increasing year on year
Gwalia: production increasing year on year ˃ FY15 AISC1 A$841/oz Mined Grade (g/t Au) June 2015 8.8 8.9 ˃ Reserves at 30 June 20152: 8.2 8.4 Reserve grade 9.4 g/t Au 6.9 5.3 Mt @ 9.4 g/t Au for 1.6 5.7 6.3 260 Moz Range 248 245 ˃ Mine life based on Ore 214 Reserves2 ≈7 years 185 183 ˃ Improvement pr
Slide 12: Gwalia gold production - 136 koz in H1
Gwalia gold production - 136 koz in H1 AISC (A$/oz) 883 860 FY15 AISC A$841/oz 846 Q2 December FY16 Quarter: 692 645 ˃ 63,533 oz produced in Q2 (Q1: 72,388 oz) ˃ 135,921 oz produced in H1 FY16 ˃ AISC1 of A$846/oz (Q1: A$692/oz) Mined Grade June 2015 9.7 9.7 (g/t Au) Reserve grade ˃ Production in Q2
Slide 13: Gwalia Production Profile – 'Centre out' method
Gwalia Production Profile – ‘Centre out’ method Objective: Maximise production, Stope diagram of South West Branch constrained by: showing mining in Q3 & Q4 FY2015 1) Waiting for adjacent/above stope’s Plunge, centre paste fill to dry of lode 2) Geotech considerations – not too many open stopes too
Slide 14: 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 15: 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 16: Gwalia future developments
Gwalia future developments Gwalia deep drilling ˃ Seeking to extend resource ˃ Deep drilling is continuing ˃ No new results since December 2015 quarterly report Gwalia materials handling ˃ In conjunction with drilling, conceptual studies underway to extend mine life, including: ˃ blind and raise-bor
Slide 17: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program Gwalia Deep Drilling Program > The full drilling program is aimed at delineating an indicated resource to support the planned shaft studies. > Refer report1 for full results of recent 6 holes that successfully intersected mine sequence > South West Branch in
Slide 18: Simberi
Simberi Staff BBQ & Relaxation Deck Ropecon looking east to Pigiput Bay and plant below Hitachi 1200 Excavation loading Bell 50D Articulated Dump Truck SAG Mill 18 / Asia Investor Relations Roadshow / March 2016
Slide 19: Simberi PNG – status
Simberi PNG – 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 o
Slide 20: Simberi: record half year and calendar year gold production
Simberi: record half year and calendar year gold production Q2 December FY16 Quarter: AISC (A$/oz) ˃ 28,379 oz produced in Q2 (Q1: 29,539 oz) 1,619 ˃ Record production: > 58 koz for H1 FY16 1,310 1,319 1,252 1,149 > 108 koz for CY 2015 ˃ AISC1 of A$1,319/oz impacted by significant Production (koz) e
Slide 21: 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 21 / Asia Investor Relations Roadshow / March 2016
Slide 22: 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 23: Simberi PNG – Pre-feasibility Study
Simberi PNG – Pre-feasibility Study ˃ Pre-feasibility Study (PFS) due April 2016 ˃ Progress report on the PFS proposes: ˃ Sulphide Project utilises the existing infrastructure on Simberi Island, including the airport, power station, village and wharf ˃ the existing semi-autogenous grinding (SAG) mil
Slide 24: Simberi PNG – PFS preliminary results
Simberi PNG –PFS preliminary results 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$100 million (A$
Slide 25: Simberi PNG – Strategic review
Simberi PNG –Strategic review ˃ Need to evaluate the potential investment in the Simberi Sulphide Project against the Company’s other potential investment opportunities ˃ to maintain continuity of production a decision on the Sulphide Project would be required by December 2016 ˃ Cutfield Freeman & C
Slide 26: FY16 Half Year Financial Results
FY16 Half Year Financial Results Spot Gold Price > Profit $1,800 > Cash flows $1,700 A$/oz $1,600 > Cash, debt & $1,500 hedging $1,400 $1,300 US$/oz $1,200 $1,100 $1,000 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 A$/oz US$/oz 26 / Asia Investor Relations Roadshow / March 2016 Source: IRESS to 17 Marc
Slide 27: Half on Half Profit Comparison
Half on Half Profit Comparison Half on Half Underlying Profit1,2 & Significant Items 17 60 43 -8 -1 -25 -14 -7 -16 -203 FY14 FY14 FY15 FY15 FY16 1H 2H 1H 2H 1H A$M NPAT Underlying Significant items (continuing operations) 1. All excluding results from discontinued operations 27 / Asia Investor Relat
Slide 28: Cash movement 1H FY16
Cash movement 1H FY16 Cash movement 1H FY16 16 -78 128 -17 -8 -10 -8 100 77 Cash Leonora Ops Simberi Ops Debt Interest Exploration Corporate Other Cash Jun 2015 repayments payments (incl capex) Dec 2015 A$ million 28 Asia Investor Relations Roadshow / March 2016
Slide 29: Cash and Debt FY15 and H1 FY16
Cash and Debt FY15 and H1 FY16 Debt, Cash Balance & Contribution from Operations (FY15 to present) 420 A$ Debt2,3 390 367 358 347 325 325 325 293 284 US$ Debt 271 249 216 204 108 115 A$ Cash balance1 100 approx. 100 68 77 56 80 70 69 A$ Cash Contribution4 57 10 32 FY15 FY15 FY15 FY15 FY16 FY16 FY16
Slide 30: Debt and hedging at 31 December 2015
Debt and hedging at 31 December 2015 US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 22 Feb 2016 ˃ 6 monthly interest payments in arrears each April and October ˃ Interest rate 8.875% p.a., matures April 2018 ˃ US$16 million repurchased in 1H FY16 ˃ Additional U
Slide 31: Cash and debt
Cash and debt June 2014 June 2015 Dec 2015 22 Feb A$M A$M A$M 2016 A$M Cash balance 1 79 77 100 ≈100 Interest bearing debt FX 0.94302 0.77132 0.73063 0.71073 ˃ US Senior Secured Notes US$ 250 196 180 168 ˃ Red Kite US$ 75 75 36 36 ˃ Total USD$ debt US$ 325 271 216 204 ˃ A$ equivalent4 A$ 330 A$ 342
Slide 32: Capitalisation as at 31 December 2015
Capitalisation as at 31 December 2015 Year ended A$M 31 Dec 2015 EBITDAx Interest Maturity Call Date Call Price Rating A$M Caa1(Stable) / Cash1 $100 CFR: B-(Stable) Red Kite debt facility (US$36m)2 $46 0.2x L+750 Jun-17 - - Caa1 / B- Senior Secured Notes (US$180m)1,3 $244 0.9x 8.875% Apr-18 Callable
Slide 33: Exploration: Focus on near mine targets
Exploration: Focus on near mine targets Exploration > A$15 million, approximately: > 70% Australia and > 30% Pacific > Gwalia Deep Drilling (WA) > Centenary (WA) > Pinjin (WA) > Simberi (PNG) + Banesa (PNG) 33 / Asia Investor Relations Roadshow / March 2016
Slide 34: Summary – Strong profits continue, debt significantly reduced
Summary – Strong profits of 2H FY15 continue, debt significantly reduced ˃ Profitability maintained from record 2H FY15 ˃ Continued strong operating results with underlying NPAT of $60 million ˃ $15 million profit on sale of King of the Hills & Kailis ˃ Continued accelerated debt repayments ˃ A$77 m
Slide 35: Appendices
Appendices 35 / Asia Investor Relations Roadshow / March 2016 Jan 2016: Shadows silhouetted viewing an ore pass, Gwalia mine.
Slide 36: St Barbara share price
St Barbara share price Exceeded A$1 billion market cap on 4 March 2016 ASX:SBM (with selected ASX announcements) $3.00 Q1 Production Update, inc: $2.50 Simberi 29.5 koz, A$12M cash flow3 SBM to rejoin ASX 200 $2.00 M’cap A$1B Q2 Production Update, inc: Simberi cash flow positive in Dec $1.50 Q3 Prod
Slide 37: EV/Production: St Barbara vs other gold companies
St Barbara vs other gold companies, ASX & globally Free cash flow, Enterprise Value, Production Bubble size = 7,000 production rate RRS LN (kozpa) AEM US DGC CN 6,000 NCM 5,000 GG US ABX US EV/Production (A$/oz) NEM US NGD US EGO US 4,000 AQG RRL EVN AUY US 3,000 BTG US KGC US NST SBM PPP US ANG SJ
Slide 38: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Q3 Mar Q4 Jun Year Q1 Sep Q2 Dec Guidance Consolidated FY15 FY15 FY15 FY16 FY16 FY163 Production Gwalia oz 76,954 57,208 248,142 72,388 63,533 245 - 260 koz (prev 230 to 250 koz) King of the Hills oz 11,836 15,014 49,677 9,112 -5 9
Slide 39: 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 40: Key changes to underlying profit/(loss) 2H FY15 to 1H FY16
Key changes to underlying profit/(loss)1 2H FY15 to 1H FY16 Underlying Profit1 After Tax Reconciliation (H1 FY16 v H2FY15) 4 -15 7 8 60 9 4 43 2H FY15 Gross Profit - Aust Gross Profit - D&A Net Financing Income tax Corporate + Other 1H FY16 Ops Simberi Ops Costs expense A$ Million 40 / Asia Investor
Slide 41: Significant items in net profit after tax
Significant items1 in net profit after tax Significant items in net profit after tax 77 -14 -2 -1 60 1H FY16 NPAT Profit on sale of KOTH & Foreign exchange Tax effect 1H FY16 Underlying NPAT Kailis A$ Million 41 / Asia Investor Relations Roadshow / March 2016 1. Non-IFRS measure, refer appendix
Slide 42: 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 42 / Asia Investor Relations Roadshow / March 2016
Slide 43: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program 43 / Asia Investor Relations Roadshow / March 2016
Slide 44: Exploration: Gwalia Deep Drilling Program
Exploration: Gwalia Deep Drilling Program 1. For full explanation and results refer to ASX release 21 January 2016 ‘Quarterly Report December 2015’ 44 / Asia Investor Relations Roadshow / March 2016
Slide 45: Exploration: Future Gwalia – Drilling Plan
Exploration: Future Gwalia – Drilling Plan 1. For full explanation and results refer to ASX release 21 January 2016 ‘Quarterly Report December 2015’ 45 / Asia Investor Relations Roadshow / March 2016
Slide 46: Exploration: Gwalia West Lode – Long Section
Exploration: Gwalia West Lode – Long Section West Lode > West Lode is one of the four major lode structures1 identified within the Gwalia Mine Sequence, and is located approximately 80m to the west of South West Branch. > Drilling results2 show encouraging grade and thickness: ˃ studies underway to
Slide 47: Exploration: Gwalia – Schematic Lode Plan View
Exploration: Gwalia – Schematic Lode Plan View 47 / Asia Investor Relations Roadshow / March 2016
Slide 48: Exploration: Centenary
Exploration: Centenary Centenary > In Q3 FY15 St Barbara conducted electromagnetic (EM) survey work on Centenary Project approximately 60 km north of Leonora. Four sites were drilled in Q4 FY15 with follow up drilling in Q1 and Q2 FY16 > New drilling targeted an anomalous nickel geochemistry feature
Slide 49: Exploration: Pinjin, Leonora WA
Exploration: Pinjin, Leonora WA Pinjin > The Pinjin Project is located 150 km northeast of Kalgoorlie, comprising a large tenement package of 1,358 km2 > Two reconnaissance field visits were conducted during the quarter and necessary approvals obtained > A significant aircore drilling program (of up
Slide 50: Exploration: Focus on near mine targets at Simberi
Exploration: Focus on near mine targets at Simberi Simberi PNG > Encouraging results 1 from drilling at Pigibo North (13 holes for 780m) and Patan (8 holes for 500m) included: Pigibo North: SDH342: 22m @ 0.7 g/t Au from 3m SDH347: 18m @ 1.0 g/t Au from 0m Patan: SDH348: 5m @ 14.1 g/t Au from 15m SDH
Slide 51: Exploration: Big Tabar Island
Exploration: Big Tabar Island Big Tabar Island > Further follow up trenching was conducted in the quarter on the Banesa Au-Cu porphyry prospect. Significant trench sampling results1 include: TABTR168: 20m @ 1.1 g/t Au and 0.3% Cu, and 30m @ 1.2 g/t Au TABTR171: 30m @ 1.2 g/t Au and 0.1% Cu, inc. 20m
Slide 52: Banesa Au-Cu Project – EL609 – historic drilling
Banesa Au-Cu Project – EL609 – historic drilling Banesa Porphyry Au-Cu Project: • 1996 – Nord completed 1 diamond hole BA001 for 384m1 • 2009 - Barrick Gold completed 6 diamond holes (BND2 to BND7) for 2,625m1 • Intersected Au-Cu alkaline porphyry style mineralisation • Best Intersection: 69m at 0.8
Slide 53: Ore Reserves Summary as at 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 54: Mineral Resources Summary as at 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 55: 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 56: Major variances to Ore Reserves FY14 to FY15
Major variances to Ore Reserves FY14 to FY15 1 koz 6,000 5,165 5,000 -673 4,003 4,000 -426 -60 -3 3,000 2,000 1,000 0 June Divestment of Gold Depletion through Design changes* King of the Hills June 2014 Ridge Operation mining and processing Closure 2015 of stockpiles * Changes include Geology, Desi
Slide 57: Major variances to Mineral Resources FY14 to FY15
Major variances to Mineral Resources FY14 to FY151 koz 14,000 13,161 12,000 10,000 -3,175 9,223 -426 -80 -4 -254 8,000 6,000 4,000 2,000 0 June Gold Ridge Depletion through Sterilisation of non- Revised geological Revised geological June 2014 Divestment mining and recoverable models for Leonora mode
Slide 58: Strong institutional share register
Strong institutional share register Shareholding Structure Institutional Australia 71% 32% Not analysed 13% UK 16% USA 17% Other 5% Non Non Institutional Institutional 16% 16% Not analysed 14% Analysis and geographic spread of shareholders as at 15 Feb 2016 58 / Asia Investor Relations Roadshow / Ma
Slide 59: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Significant Shareholders 1 Broker Research Coverage Hunter Hall 14% Argonaut Patrick Chang M&G Investment Mgt 12% Canaccord Reg Spencer Franklin Resources Inc 6% Deutsche Bank Brett Mckay Macquarie Ben Crowley Institutional Shareholders 2 71% Petra Cap
Slide 60: 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 the Managing Director of Mr Vassie is a mining engineer with 30 Gindalbie Metals Limited from 2011 to 2013, years international mining industry and
Slide 61: 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 62: 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 63: 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 / Asia Investor Relations Roadshow / March 2016