St. Barbara Ltd. · ASX:SBM
St. Barbara — Denver Gold Forum 2016
51 slides from St. Barbara's conference presentation, Sep 19, 2016
Slide 1: Denver Gold Forum 2016
BOB VASSIE, MANAGING DIRECTOR & CEO / 19 September 2016 Denver Gold Forum 2016
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: Overview of operations
Overview of operations ASX 200 listed Company (SBM), founded 1969 Consolidated production > Shares on issue 497 M ˃ FY16 387 koz @ AISC4 US$679/oz > Market Cap2 US$1,179 M ˃ FY17F3 355 koz @ AISC US$773/oz > ADR OTC code STBMY > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resources June 2016 9.1 Moz
Slide 4: Contents
Contents ˃ FY 2016 Results and Records ˃ FY 2017 Guidance ˃ Growth ˃ Resources & Reserves Upgrade ˃ Exploration ˃ Conclusion Sky over Gwalia processing plant, April 2016 4/ 2016 Denver Gold Forum
Slide 5: St Barbara since Denver 2015 – turnaround complete
St Barbara since Denver 2015 – turnaround complete Record production & costs Record safety performance2 Realised gold price 1,294 (US$/oz) 1,197 1,161 AISC1 1,230 (US$/oz) 9.0 TRIFR (Total Recordable 838 injury frequency rate) Production (koz) 679 387 374 377 6.0 9 45 50 110 5.0 71 80 4.1 44 267 248
Slide 6: St Barbara since Denver 2015 – turnaround complete
St Barbara since Denver 2015 – turnaround complete June June Change 2015 2016 Share price US$ 0.44 +400% 2.20 ˃ ASX 200 from Mar 2016 Market cap US$M 218 +400% 1,088 ˃ Record profit in FY16, ASX m’cap rank rank 297 +152 145 driven by1: ˃ 19% fall in US$ AISC2 NPAT (Statutory) US$M 33 +270% 123 ˃ 2%
Slide 7: Gwalia: Record production driven by productivity gains
Gwalia: Record production driven by productivity gains 8% year on year improvement, Mined Grade 9.3 3 key innovations (g/t Au) 8.8 8.2 8.4 8.9 6.9 Reserve Grade 6.3 8.3 g/t Au June 2016 5.7 Ore passes Allows bogger to work constantly, independent of ore trucks, 267 265 removes ore from fired stopes
Slide 8: Simberi FY14 to FY16 – improvements in all metrics
Simberi FY14 to FY16 – improvements in all metrics All-in sustaining cost (US$/oz) 2,111 1,218 941 9,898 Mining 110 110 Consecutive years of >50% improvement 6,293 100 Processing 3.3 Mt processed in FY16, 29% improvement Y on Y 80 Mining 4,151 (kt) Production (koz) 44 FY14 FY15 FY16 FY17F Production
Slide 9: FY17 – Continued strong cash generation
FY17 – Continued strong cash generation St Barbara’s AISC cash margin FY17 guidance 1,400 Average gold price realised US$/oz > Production 340 - 370 koz 1,200 > AISC1 US$735 – 810/oz > Exploration US$14 -17 million 1,000 Margin US$/oz > Capex US$34 – 40 million 800 Longer term 600 > Gwalia mine plan
Slide 10: St Barbara share price vs gold in A$ and US$
St Barbara share price vs gold in A$ and US$ Indexed from 1 July 2015 700% Top performing stock in the ASX 200 in FY20162 600% Top performing stock in ASX 300 in CY20151 500% ASX:SBM 400% 300% 200% ASX: XGD A$ gold 100% US$ gold 0% 1 Jul 15 1 Oct 15 1 Jan 16 1 Apr 16 1 Jul 16 1 Oct 16 Source: IRESS
Slide 11: Cash and Debt
Cash and Debt Debt, Cash Balance & Contribution from Operations (FY15 to present) AUD Debt2,3 420 390 367 358 355 325 325 299 325 271 USD Debt2 249 248 216 226 189 168 170 108 115 114 Cash balance1 100 128 77 137 70 56 70 80 71 69 69 57 A Cash 10 32 Contribution4 FY15 FY15 FY15 FY15 FY16 FY16 FY16 F
Slide 12: Profitable growth options
Profitable growth options Existing opportunities > Gwalia mine extension study well advanced > Simberi strategic review well progressed > Exploration in WA and PNG Eyes open for other opportunities > Consider sensible inorganic growth where it increases shareholder value > Systematic evaluation proc
Slide 13: Reserves and resources – Gwalia major variances FY15 to FY16
Reserves and resources Gwalia - Major variances FY15 to FY16 1 Gwalia Reserves Gwalia Resources +193 +428 +297 +379 +131 -346 -277 1,808 3,896 koz 1,594 koz 3,304 June Mining Depth Design June June Mining Main Lode SW branch SGS June 2015 depletion extension changes 2016 2015 depletion extensions ex
Slide 14: Gwalia - ongoing drilling program
Gwalia - ongoing drilling program 1. Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 14 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’
Slide 15: Gwalia - planning on a long profitable life
Gwalia - planning on a long profitable life Gwalia Reserves & Resources upgrade June 20161 > Reserves increased 1.6 to 1.8 Moz (net) > Resources increased 3.3 to 3.9 Moz (net) Upgrade supported by studies and future project2 > PFS reviewed shaft options versus trucking and increased ventilation capa
Slide 16: Gwalia 2200 Deeps Extension
Gwalia 2200 Deeps Extension For full details Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 16 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’ .
Slide 17: Northern extension FY17 drilling: seeking up-plunge extent
Northern extension FY17 drilling: seeking up-plunge extent For full details Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 17 / 2016 Denver Gold Forum 30 June 2016’ and ‘FY16 Financial Report Presentation’
Slide 18: Greater Gwalia – province exploration campaign in FY17
Greater Gwalia – province exploration campaign in FY17 ˃ Explore reflecting sound waves off mineral formations ˃ Used successfully by other regional gold miners ˃ Q1 Gwalia, Q2 ‘Greater Gwalia’ ˃ 2D/3D program, IP, + down hole sensors For full details Refer ASX announcement 23 August 2016 titled ‘Or
Slide 19: FY17 greenfields exploration – Pinjin (Western Australia)
FY17 greenfields exploration – Pinjin (Western Australia) Pinjin Project Located 150 km northeast of Kalgoorlie, WA, 250 south-east of Gwalia Comprises 1,358 km2 tenement package 288 holes drilled to date for a total of 14,385 m Further aircore and follow-up reverse circulation (RC) drilling
Slide 20: Simberi, Papua New Guinea: maximize shareholder value
Simberi, Papua New Guinea: maximize shareholder value Strategic review > Broad consideration of options for PNG assets to maximize shareholder value Sulphide Project > Potential to extend mine life by 8 years via investment in sulphide processing circuit Exploration Simberi: Near mine oxide drilli
Slide 21: FY17 Exploration PNG: Mt Letam Au-Cu target, Tatau Island
FY17 Exploration PNG: Mt Letam Au-Cu target, Tatau Island Mt Letam drill hole TTD061 Mt Letam drill hole TTD061 Mt Letam drill core Mt Letam camp 21 / 2016 Denver Gold Forum
Slide 22: St Barbara vs Comparators - FCF Yield, Reserves, Production
St Barbara vs Comparators - FCF Yield, Reserves, Production Reserves (Moz) Q4 June 2016 FCF Yield 18 (Implied free cash flow per share/ share price) 16 Detour New Gold 14 Bubble size = implied FCF 12 Acacia 10 B2 Gold Evolution 8 IAMGOLD 6 Semafo St Barbara Regis 4 Oceana Gold Resolute 2 Saracen Nor
Slide 23: St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC
St Barbara vs Global Gold Mines – Q4 June 2016 US$ AISC 1,400 Q4 June 2016 Global gold production – AISC 53 companies, 196 mines 1,200 1,000 800 AISC (US$/oz) St Barbara US$716/oz AISC Gwalia US$644/oz AISC 600 400 200 0 0 2 4 6 8 10 Asia Africa Australia North America South America Cumulative produ
Slide 24: Great year, big future
Great year, big future FY16 FY17 ˃ Record safety ˃ Aiming to maintain production & cash flow ˃ Record production ˃ Low Gwalia AISC generates high margin & cash flow ˃ Record profit ˃ Now looking at profitable growth options ˃ Record cash flow ˃ Working to extend Gwalia life ˃ Exploring Greater Gwali
Slide 25: Questions?
Questions? Shadows silhouetted viewing an ore pass, Gwalia mine, January 2016 25 / 2016 Denver Gold Forum
Slide 26: Appendices
Appendices March 2016: Rainbow over Hoover House and Gwalia pit. 26 / 2016 Denver Gold Forum
Slide 27: Consolidated Production, Costs, Guidance Summary
Consolidated Production, Costs, Guidance Summary Production Summary Year Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Guidance Guidance Consolidated FY15 FY16 FY16 FY16 FY16 FY16 FY16 FY17 Production Gwalia oz 248,142 72,388 63,533 66,147 65,098 267,166 260 to 265 koz3 245 to 265 koz King of the Hills5 oz 49,67
Slide 28: St Barbara share price vs gold in A$ 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 ASX 300 in CY20151 $2,500 $3.00 $2,000 $2.50 A$ gold (RHS) $2.00 $1,500 ASX: XGD (RHS/2) $1.50 $1,000 US$ gold (RHS) $1.00 $500 $0.50 SBM (LHS) $0.00 $0 30 Jun 15 30
Slide 29: FY16 Financial Summary (A$)
FY16 Financial Summary (A$) FY16 FY15 Gold price Average gold price realised A$/oz 1,595 1,439 All-In Sustaining Cost 2 A$/oz 933 1,007 Result ˃ Statutory profit after tax A$M 169 40 ˃ Underlying net profit after tax 2 A$M 127 42 ˃ EBITDA 2 A$M 298 168 ˃ Underlying EBITDA 2 A$M 286 184 Cash flow ˃ C
Slide 30: Key changes to underlying profit FY15 to FY16
Financial Results Key changes to underlying profit1 FY15 to FY16 Key changes to underlying profit1 FY15 to FY16 10 5 4 40 1 1 -1 -28 53 A$ Million 127 42 FY15 Gross Profit - Gross profit - Exploration Corporate D&A Finance + FX Royalties Other Income tax FY16 Aust Ops Simberi Ops expense 30 / 2016 D
Slide 31: Financial Results - Cash movement FY16
Financial Results - Cash movement FY16 Cash movement FY16 +34 +235 A$ Millions -142 -30 -16 -21 137 77 Cash Leonora Ops Simberi Ops Debt repayments Interest Exploration Corporate (inc. Cash June 2015 payments capex) + other June 2016 31 2016 Denver Gold Forum
Slide 32: Financial Results - Segment profit & cash flow
Financial Results Segment profit & cash flow Reportable segment profit/ Cash contribution from (loss) before tax1 operations1, 2 128 124 101 111 97 86 53 58 21 11 13 15 17 17 -14 -15 FY15 FY15 FY16 FY16 FY15 FY15 FY16 FY16 1H 2H 1H 2H 1H 2H 1H 2H A$M A$M Leonora Simberi Leonora Simberi 1. Results fo
Slide 33: Debt and hedging at June 2016 and today
Debt and hedging at 30 June 2016 and today US Senior Secured Notes ˃ US$250 million issued March 2013, US$168 million balance at 30 Jun 2016 ˃ Additional US$40 million repurchased 20 July 2016, balance at 23 Aug 2016 is US$128 million, US$122 million repurchased since 1 June 2015 ˃ 6 monthly interes
Slide 34: Growth - Three moving parts of capital management
Growth Three moving parts of capital management ˃ Anticipate strong free cash flows Decide: Q2 Dec 2016 Gwalia Prepare: Q3 Mar 2017 of FY16 to continue in FY17 Ventilation Start: Q1 Sep 2017 Upgrade Term: 24-30 mths ˃ Debt reduction still a focus in short term Simberi Decide: Q3 Mar 2017 sulphide
Slide 35: Conceptual illustration of Gwalia ventilation solution
Conceptual illustration of Gwalia ventilation solution Twin vent shafts New primary New bulk air cooler • Increases both exhaust fans fresh air intake and Existing bulk air cooler exhaust capacity Existing primary • Reduces diameter of exhaust fans Multiple lifts shafts and lowers geotechnical risk
Slide 36: Gwalia Mineral Resource Classification & Reserves June 2015 and June 2016
Gwalia Mineral Resource Classification & Reserves June 2015 and June 2016 Measured Indicated Inferred Gwalia Mineral Resource June 2015 Gwalia Mineral Resource June 2016 200m depth extension of Resource model Gwalia Mineral Resource kt g/t koz 2016 17,924 7.0 3,896 2015 12,929 7.9 3,304 Gwalia Ore R
Slide 37: Exploration FY17 Guidance
Exploration FY17 Guidance Exploration: 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: ˃ WA (30%) Pinjin – complete drilling ˃ PNG (70%) ˃ Simberi Oxides – near mine ˃ Tatau Copper- Gold ˃ Tatau Oxides/Su
Slide 38: Gwalia Deeps Exploration FY17
Gwalia Deeps Exploration FY17 Gwalia Exploration FY171 > 2000- 2200 mbs > Northern extension > ‘Greater Gwalia’ seismic campaign - Leonora province FY162 > 1800 – 2000 mbs > Southern Extension > Discovery of northern extension 1. Refer ASX announcements 23 August 2016 titled ‘Ore Reserves and Minera
Slide 39: Simberi: Reserve and Resource changes
Simberi: Reserve and Resource changes Resources - Oxide Resources - Sulphide +115 -17 -98 -134 -328 koz 1,413 koz 3,607 3,607 951 June Mining depletion Transitional ore June June Transitional Mining Resource June 2015 reclass. Oxide 2016 2015 ore reclass. depletion model 2016 Oxide changes/price Key
Slide 40: Gwalia - variances to Ore Reserve Grade FY15 to FY16
Gwalia - variances to Ore Reserve Grade FY15 to FY16 1 0.1 0.8 0.2 0.3 0.0 0.0 0.1 0.0 g/t Au 9.4 8.3 Ore Reserve FY16 Design Design Design Modifying Grade Cut-off grade Depth Ore Reserve Grade June production changes changes changes factors softening Extension Grade June 2015 (SWB above (WL & SGS (
Slide 41: Major variances to Ore Reserves FY15 to FY16
Major variances to Ore Reserves FY15 to FY16 1 +193 +297 -110 -96 -277 koz 4,003 4,011 June Gwalia mining Gwalia depth Gwalia design Simberi mining Mining cost June 2015 extension changes increase 2016 1. Refer ASX announcement 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 41
Slide 42: Major variances to Mineral Resources FY15 to FY16
Major variances to Mineral Resources FY15 to FY161 +938 -151 -104 -213 -98 -170 -346 koz 9,223 9,079 June Kailis KoTH Gwalia Gwalia Deeps Simberi Simberi material Revised June 2015 Divestment Divestment Depletion & Drilling Depletion type changes geological 2016 Sterilsation models for Simberi Opera
Slide 43: Ore Reserves Summary as at 30 June 2016
Ore Reserves Summary as at 30 June 2016 Project Proved Probable Total Tonnes (k) Au g/t koz Tonnes (k) Au g/t koz Tonnes (k) Au koz g/t Gwalia (WA) 2,286 9.6 702 4,510 7.6 1,105 6,795 8.3 1,808 Tower Hill (WA) - - - 2,572 3.7 306 2,572 3.7 306 Simberi Oxide (PNG) 4,687 1.3 194 9,407 1.3 381 14,094 1
Slide 44: Mineral Resources Summary as at 30 June 2016
Mineral Resources Summary as at 30 June 2016 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 4,951 7.7 1,232 11,773 6.8 2,584 570 4.4 80 17,294 7.0 3,896 (WA) Tower Hill - - - 4,604 3.9 574 489 3.3 51 5,093 3.8
Slide 45: Strong institutional share register
Strong institutional share register Shareholding Structure Australia Not analysed, Institutional 30% 11% 83% UK 16% Non Institutional, 6% USA 35% Other 8% Not analysed 11% Analysis and geographic spread of shareholders as at 15 Aug 2016 45 / 2016 Denver Gold Forum
Slide 46: Significant Shareholders & wide broker coverage
Significant Shareholders & wide broker coverage Significant Shareholders 1 Broker Research Coverage Van Eck 12.7% Argonaut James Wilson M&G Investment Mgt 8.4% Canaccord Reg Spencer Hunter Hall 6.8% Credit Suisse Mike Slifirski Vinva 5.2% Deutsche Bank Matt Hocking Macquarie Ben Crowley Institutiona
Slide 47: 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 Chainman July 2015 Mr Vassie is a mining engineer with over 30 Mr Netscher is an experienced international years international mining industry m
Slide 48: Executive Leadership Team
Executive Leadership Team Bob Vassie Managing Director and CEO Appointed 2014 Mr Vassie is a mining engineer with over 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
Slide 49: 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 50: 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 51: Investor Relations Enquiries
Investor Relations Enquiries Rowan Cole Garth Campbell-Cowan Company Secretary Chief Financial Officer T: +61 3 8660 1900 E: [email protected] St Barbara Board and executive June 2016 at Simberi. L to R: Garth Campbell-Cowan (CFO), David Moroney (Non-Executive Director), Bob Vassie (MD&CEO), Tim