St. Barbara Ltd. · ASX:SBM
St. Barbara — Macquarie Mining in Melbourne Forum 2018
47 slides from St. Barbara's conference presentation, Jun 28, 2018
Slide 1: Presentation to Macquarie Mining in Melbourne Forum
Shareholder Notice / 28 June 2018 Presentation to Macquarie Mining in Melbourne Forum Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors attending the Macquarie Mining in Melbourne Forum today. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660
Slide 2: Macquarie Mining in Melbourne Forum
BOB VASSIE, MANAGING DIRECTOR & CEO 28 June 2018 ASX: SBM Macquarie Mining in Melbourne 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: Contents
Contents • Overview • Safety • Highlights • Operations & Growth • Exploration • Strategy • Conclusion Photo: Gwalia Mine, WA, processing plant ‘Morning Glory’, photo by Daniel Elsden. 3/ Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 5: Corporate Overview
Corporate Overview ASX 200 ASX: SBM Est. 1969 ADR: STBMY Papua Simberi Operations Commodity Gold (Au) New Guinea Market cap1 A$2.6B @ A$4.94/sh Shares1 521 M Liquidity2 2.8 M/day (0.5%) FY17 EPS3 A$0.32 FY17 DPS A$0.06 Australia Cash4 A$262 M Leonora Operations (Gwalia mine) Debt Nil5 Ore Reserves (
Slide 6: Focus on safety
Focus on safety Total Recordable Injury Frequency Rate1 6.0 5.0 4.1 2.6 2.4 2.1 1.2 1.2 FY 13 FY 14 FY15 FY16 FY17 Q1 Q2 Q3 FY18 FY18 FY18 • TRIFR corresponds to 8 low range injuries in last 12 mths • Corresponding LTIFR (lost time/ ’serious’ injury frequency rate) of 0.7 to 31 Mar 2018 compares wit
Slide 7: Strong margins & liquidity, actively growing, well positioned
Strong margins & liquidity, actively growing, well positioned Operational •FY18F Production ∼384 koz @ AISC A$945/oz1 excellence •Cornerstone Gwalia Mine with Life of Mine Plan to FY 2031 Financial •EBITDA margin of 49%2 performance •A$837/oz cash contribution2 Capital •Debt free, A$262 M cash at ba
Slide 8: Balance Sheet
Balance Sheet Cash balance at 31 March 2018 of A$262M , no debt1 A$M Cash and debt 300 262 200 216 199 161 100 137 79 77 Cash 0 -0.3 -0.2 -0.2 -1 Debt -100 -200 -226 -300 -340 -347 -400 FY14 FY15 FY16 FY17 Q1 Q2 Q3 FY18 FY18 FY18 1. Cash balance excludes A$1.2 M restricted cash, no interest bearing
Slide 9: Increasing cash balance
Increasing cash balance 262 46 A$M 17 216 Q3 movement net of: 38 199 Q2 movement net of: $16 M dividends $31 M tax $4 M investments 161 Q1 movement net of: $12 M investments $7 M Gwalia growth capex $25 M dividends $11 M Gwalia growth capex $4 M Gwalia growth capex FY17 FY18 FY18 FY18 Q4 Jun Q1 Sep
Slide 10: Main current projects - timeline
Main current projects - timeline FY18 FY19 FY20 Q3 Mar Q4 Jun Q1 Sep Q2 Dec & beyond Gwalia Extension Project construction (completion due Q1 Sep FY20 to Q3 Mar FY20) Gwalia Mass Extraction feasibility study Investment decision Dec 2018 2600 mbs hole drilling analysis & results 3D Targets interpreta
Slide 11: Gwalia production and cost profile
Gwalia production and cost profile Mined Grade (g/t Au) 11.7 10.7 8.8 8.9 9.3 8.2 8.4 6.9 6.3 5.7 Reserve Grade 7.8 g/t Au June 2017 267 265 260 to Production 248 250 (koz) 214 AISC 185 183 (A$/oz) 940 860 841 783 785 131 Q1-3 109 184 @ 83 858 & 12.1 g/t Au FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Slide 12: Gwalia animation
Gwalia animation Animation of Gwalia underground mine available at https://youtu.be/e7slJIjDLtc 11 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 13: Gwalia Extension Project update – on schedule
Gwalia Extension Project update – on schedule • Project includes new ventilation shafts and underground • A$7M capex spent in Q3 Mar FY18 crushing of waste, mixed with paste to fill emptied stopes • Raise bore activities progressing to schedule with second surface shaft pilot hole drilling underway
Slide 14: Gwalia Deeps 1540 – 1580 lode schematic
Gwalia Deeps 1540 – 1580 lode schematic Reproduced from ASX release 25 September 2017 ‘Denver Gold Forum 2017’ 13 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 15: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 14 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 16: Exploration | Gwalia Seismic
Exploration | Gwalia Seismic Gwalia Seismic Exploration • 3 target areas identified between 600 and 1,900 mbs north and south of Gwalia • Drilling two holes in Q4 June FY18 (GWDD20 and GWDD21) For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report March FY18’ 15 / Macq
Slide 17: Simberi production and cost profile
Simberi production and cost profile AISC (A$/oz) 2,300 1,464 1,293 1,187 1,100 132 125 116 Production 110 (koz) 80 Q1-3 100 @ Mill 1,045 throughput 2.8 (Mt) 3.7 milled 44 3.3 2.7 1.7 FY14 FY15 FY16 FY17 FY18F Aerial Rope Conveyor or ‘Ropecon’ at Simberi PNG. FY18F AISC is midpoint of guidance, relea
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$114 million • Simberi well placed to achieve improved FY18 production and cost guidance Quarterly cash contribution
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 - A$14 to A$18 million
Exploration FY18 Guidance - A$14 to A$18 million A$6 - A$8 million Gwalia • Gwalia Deep Drilling infill + Intermediates • Gwalia Seismic A$4 - A$5 million Pinjin WA • Aircore drilling of targets identified in FY17 A$4 - A$5 million PNG • Simberi Oxides/Sulphides • Tatau Oxides/Sulphides Option and f
Slide 21: Exploration activities
Exploration activities Leonora, Western Australia Pinjin, Western Australia Simberi Island Group (PNG) 20 / Macquarie Mining in Melbourne Forum – 28 June 2018 For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’
Slide 22: 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 23: Sustainability Report
Sustainability Report Sustainability Report Sustainability Report topics • Complements Annual Report and Corporate Governance & Economic Performance Governance Statement • Core values and Code of Conduct • Disclosure guided by GRI standards • Ethical business conduct with all stakeholders • Manage f
Slide 24: Gender Diversity
Gender Diversity • WGEA Employer Of Choice For Gender Equality in 2014, 2015, 2016 and 2017-18 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 t
Slide 25: Conclusion
Conclusion • Sustained operational performance, EBITDA margin 49% 1, 2 • A$262 M cash at bank3 • Paying fully franked dividends • Profitable growth options underway: • Gwalia extension project & mass extraction • Simberi sulphide exploration, copper-gold porphyry exploration with Newcrest • Debt fre
Slide 26: Appendices
Appendices 2600 mbs drill hole in progress at Gwalia, Feb 2018 25 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 27: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q3 YTD Guidance Consolidated FY17 FY18 FY18 FY18 FY18 FY181 St Barbara’s financial year Year to Qtr to Qtr to Qtr to 9 mths to Year to 30 June 2018 is 1 July to 30 June 30 June 2017 30 Sep 2017 31 Dec 2017
Slide 28: Hedging Summary
Hedging Summary at 27 June 2018 Financial Volume Price Delivery Announced Year ounces A$/oz (all monthly instalments) FY 18 nil $1,725 Delivery completed in 12 April 2017 & June 2018 & $1,730 1 June 2017 FY 19 100,000 $1,750 July 2018 to June 2019 7 February 2018 FY 20 50,000 $1,750 July to December
Slide 29: Consolidated Q3 FY18 quarter
Consolidated Q3 FY18 quarter AISC (A$/oz) 982 959 889 910 • Consolidated production of FY17 average A$907/oz 86 koz (Q2 FY18: 100 koz) 862 • Gwalia 57 koz (Q2: 63 koz) Production (koz) • Simberi 29 koz (Q2: 37 koz) 100 95 94 98 • Consolidated AISC1 of A$982/oz 86 (Q2: A$910/oz) 30 32 34 37 29 • Gwal
Slide 30: Growth Pipeline
Growth Pipeline Exploration Feasibility Construction Production Back Creek Pinjin Greater Australia Catalyst Gwalia Metals Peel 16% Mining Tower Gwalia GMX Gwalia 16%. Hill Extension Mine Prodigy Duketon Gold Mining 10% 12% Inorganic growth Evaluating exploration, project, development and operating
Slide 31: Exploration | Gwalia Deeps, 2600 mbs target
Exploration | Gwalia Deeps, 2600 mbs target For full explanation and results refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 30 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 32: Reserves and Resources as at 30 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 1.8 2.1 Gwalia Resources FY16 FY17 • Increased by net 1,191 koz
Slide 33: 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 1420 Mineral Resources Ore Reserves 1500 1500 1540 1600 1580 1620 1700 1740 1800 1780 1820 2000 2140 2200 2200 Or
Slide 34: Gwalia – depth of Ore Reserves
Gwalia – depth of Ore Reserves 2.5 0.27 Moz Production 2.0 0.21 Moz 0.27 Moz Ore Reserves 0.25 Moz 1.5 At end of year (+ production during year) (Moz) 1.0 2.1 Moz Reserves 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 Reserves (mbs) 1000 1
Slide 35: Gwalia Mass Extraction - PFS
Gwalia Mass Extraction - PFS For details refer to ASX release 19 April 2018 ‘Quarterly Report Q3 March FY18’ 34 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 36: Gwalia Mass Extraction PFS – narrow lodes mining method
Gwalia Mass Extraction PFS – narrow lodes mining method 35 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 37: Tabar Islands
Exploration | Tabar Island group, PNG, Q3 March FY18 Tabar Islands • Simberi Pigiput 750m drill hole to assess conceptual Cu-Au porphyry target ongoing • Newcrest Option and Farm-in Three drills holes targeting Cu- Au porphyry at Talik North, for 2,481 metres in total completed. 36 / Macquarie Minin
Slide 38: Exploration | Horsepaddock Well – Leonora province WA
Exploration | Horsepaddock Well – Leonora province WA, Q3 March FY18 Q3 March FY18 geophysical surveys at Horsepaddock Well completed • Previous exploration to 2006 highlighted potential for a granite-intrusive type of deposit under ultramafics • Recent improvements in the depth penetration of IP an
Slide 39: Ore Reserves Summary as at 30 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 40: Mineral Resources Summary as at 30 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 41: Predominantly institutional share register
Predominantly institutional share register Not analysed Australia 8% 35% Institutional 87% Non Institutional 5% USA 33% UK 10% Other 9% Non Institutional 5% Not analysed 8% Analysis as at 14 April 2018 40 / Macquarie Mining in Melbourne Forum – 28 June 2018
Slide 42: Substantial shareholders and broker coverage
Substantial shareholders and broker coverage Substantial Shareholders 1 Broker Research Coverage Van Eck 11.2% Argonaut James Wilson Vinva 5.2% Canaccord Reg Spencer Institutional Shareholders 2 87% Shares on issue 521 M Citi Trent Allen American Depositary Receipts (ADR) Credit Suisse Mike Slifirsk
Slide 43: 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 44: 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 45: 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 46: 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 47: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole T: +61 3 8660 1900 Company Secretary E: [email protected] St Barbara Board, underground at Gwalia, October 2017. L to R: Lucas Welsh (GM Finance), Andrew Walker (Underground Manager) Tim Netscher (Non-Executive Chairman), Bob Vassie (MD&CEO), Kerry Gleeson
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