Presentation to European Gold Forum

52 Pages·2017·4.51 MB·English

ASX Release / 4 April 2017 

Presentation to analysts and investors attending European Gold Forum  
Attached is a presentation by Bob Vassie, Managing Director and CEO, to analysts and investors 
attending European Gold Forum this week.  

Investor Relations  Mr Rowan Cole  Company Secretary [phone]
Media Relations  Mr Tim Duncan  Hinton& Associates [phone]
St Barbara Limited   Level 10, 432 St Kilda Road, Melbourne VIC 3004  T [phone]  F [phone]  

ACN 009 165 066  Locked Bag 9, Collins Street East, Melbourne VIC 8003  W www.stbarbara.com.au
BOB VASSIE, MANAGING DIRECTOR & CEO
4 to 6 April 2017
European Gold Forum
St Barbara – ASX 200 Australia / Pacific Gold Producer
Forward statements
ThispresentationhasbeenpreparedbyStBarbaraLimited(“theCompany”).Thematerial ThispresentationhasbeenpreparedbytheCompanybasedoninformationavailabletoit
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or investment advice. It does not take into account the investment objectives, financial directors,employees,agents,representativesoradvisersofanysuchparty,noranyother
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an investor or prospective investor should read this document in its entirety, consider contentsorotherwisearisinginconnectionwithit,includingwithoutlimitation,anyliability
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TheCompanyestimatesitsOreReservesandMineralResourcesinaccordancewithThe
productadviceinrespectoftheCompany’ssecurities.
AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves
Thispresentationmaycontainforward-lookingstatementsthataresubjecttoriskfactors 2012Edition("JORC Code"), whichgovernssuchdisclosuresby companies listedonthe
associated with exploring for, developing, mining, processing, sale of gold, as well as AustralianSecuritiesExchange.TheJORCCodediffersinseveralsignificantrespectsfrom
financing,hedgingandsovereignriskmatters.Forward-lookingstatementsincludethose IndustryGuide7 oftheUS SecuritiesandExchangeCommission(“SEC”),whichgoverns
containingsuchwordsasanticipate,estimates,forecasts,guidance,outlook,should,will, disclosuresofmineralreservesinregistrationstatementsandreportsfiledwiththeSEC.In
expects,plansorsimilarexpressions.Suchforward-lookingstatementsarenotguarantees particular, Industry Guide 7 does not recognise classifications other than Proved and
offutureperformanceandinvolveknownandunknownrisks,uncertainties,assumptions Probable Reserves, and the SEC does not permit mining companies to disclose Mineral
andotherimportantfactors,manyofwhicharebeyondthecontroloftheCompany.Itis ResourcesinSECfilings.
believedthattheexpectationsreflectedinthesestatementsarereasonablebuttheymay
beaffectedbyarangeofvariablesandchangesinunderlyingassumptionswhichcould FinancialfiguresareinAustraliandollarsunlessotherwisestated.
TheCompany’sfiscalyear(‘FY’)is 1Julyto30June.
causeactualresultsortrendstodiffermaterially.Nothinginthisdocumentisapromiseor
As at 15 Mar 2017, A$1.00 = US$0.7574, US$1 .00 = A$1.32 (www.rba.gov.au)
representation as to the future. Actual results may vary from the information in this
US$ in this presentation converted from previously published A$ results using FX rates
presentationandanyvariationmaybematerial.Pastperformanceisnotanindicationof used in preparation of financial statements:
futureperformance.Statementsorassumptionsinthispresentationastofuturematters Spot: 31 Dec 2016 = 0.7217, 30 Jun 2016 = 0.7452, 30 Jun 2015 = 0.7713,
Average: 1HFY17 = 0.7546, FY16 = 0.7281, FY15 = 0.8319, FY14 = 0.9178 (Reuters).
mayprovetobeincorrectandanydifferencesmaybematerial.TheCompanydoesnot
This presentation published Tuesday 4 April 2017.
makeanyrepresentationorwarrantyastotheaccuracyofsuchstatementsorassumptions.
Investorsarecautionednottoplaceunduerelianceonsuchstatements.
2/ European Gold Forum | 4 to 6 April 2017
Outline
> Introduction &
overview
> Recent history
> Operations
> Gwalia Mine, WA
> Simberi Mine, PNG
> Growth & exploration
> Conclusion
> Appendices
865 mbs Gwalia mine, 2017 (Scott Thomas)
3/ European Gold Forum | 4 to 6 April 2017
An introduction to St Barbara
A$1.2 billion (US$0.9 billion)1 Production & AISC
ASX 200 gold producer and explorer
US$/oz 1230
• Debt free6
• FCF Yield 24%2
838
• Positioned to grow
750
680
Production FY16A 387 koz @ AISC US$680/oz
(first half)
FY17F3 360 koz @ AISC US$750/oz
koz 368 377 387 360
Assets Gwalia mine, Western Australia (86%5)
(& profit
• High grade (8.3 g/t Au4),
contribution5)
• high margin (AISC US$630/oz3)
Simberi mine, Papua New Guinea (14%5)
FY14 FY15 FY16 FY17F
1. Market Cap at 29 March 2017 @ A$2.46/share, A$=0.7644. 2. ‘FCF Yield’ as at 29 March 2017 when SBM =
A$2.46/share. FCF Yield is a Non-IFRS measure, refer corresponding slide in appendix. 3. Midpoint of guidance,
refer ASX release 18 January 2017. 4. Reserve grade as at 30 June 2016, refer ‘Ore Reserves and Mineral
4/ European Gold Forum | 4 to 6 April 2017 Resources Statements 30 June 2016’ released 23 August 2016. 5. Relative percentage of segment profit for year
to 30 June 2016. 6. No interest bearing borrowings, except for equipment leases amounting to less than A$1 M.
Corporate Overview
Papua New Guinea
ASX 200 (ASX: SBM), est. 1969
Simberi
Commodity Gold (Au)
Market cap2 US$935 M @ US$1.88/sh
(A$1.2B @ A$2.46/sh)
Shares2 497 M
Liquidity5 6 M/day (1.3%)
Australia
EPS6 US$0.25
Leonora
Cash8 US$75 M (Gwalia mine)
Debt Nil7
Ore Reserves (JORC)1 4.0 Moz
Mineral Resources1 9.1 Moz
Consolidated Gwalia Simberi
FY16A 387 koz @ AISC US$680/oz9 267 koz @ AISC US$570/oz 110 koz @ AISC US $941/oz
FY17F3 360 koz @ AISC US$750/oz 260 koz @ AISC US$630/oz 100 koz @ AISC US$1,064/oz
1. Refer ASX announcement 23 August 2016 titled ‘Ore Reserves and Mineral Resources Statements 30 June 2016’. Mineral
ResourcesarereportedinclusiveofOreReserves.2.Asatclose29March2017,A$2.46ea@A$0.7644. 3.FY17Fismidpointof
guidancerevised18Jan2017inQ2Dec2016QuarterlyReport.4.NonIFRSmeasure,refercorrespondingslideinAppendix.5.3
5/ European Gold Forum | 4 to 6 April 2017 monthsto9Mar2017,perIRESS.6.EPSforFY16. 7.Nointerestbearingborrowings,exceptforequipmentleasesamountingtoless
thanA$1million.8.Cashat31March2017.9.IncludesKingoftheHillsmine9koz(soldOct2015).
Continued safety success
Total Recordable Injury Frequency Rate1 Safety
9.0 > Record FY16 TRIFR of 2.1
> Record safety performance of
6.0 1.8 TRIFR1 in H1 FY17
5.0 > Overall winners for the second
4.1
year running in Western Australia
2.1
1.8 Underground Mine Emergency
Response Competition2
FY 12 FY 13 FY 14 FY 15 FY 16 Dec-16
1. Total Recordable Injury Frequency Rate (12 month average)
6/ European Gold Forum | 4 to 6 April 2017 2. The Chamber of Minerals and Energy Western Australia Underground Mine Emergency Response Competition,
November 2016, Kalgoorlie
St Barbara vs Comparators FCF Yield & EV/Reserves
EV/Reserve oz
(US$/oz)
0
St Barbara
New Gold
200
Iam Gold Oceana Gold Resolute
Acacia
400 Saracen
Evolution
Regis
B2 Gold
600
800
Northern Star
Bubble size =
estimated
production rate
(koz p.a.)
1,000
0% 5% 10% 15% 20% 25% 30% 35% 40%
FCF Yield (FCF/EV)
Source: Bell Potter 3 March 2017 (with permission) + public reports for US/Canadian miners, when SBM = A$2.38/share,
EV = US$895M, spot gold = US$1,235/oz. EV = Market cap + net debt. AISC margin = US$ spot gold less reported AISC (SBM =
7/ European Gold Forum | 4 to 6 April 2017 US$572 /oz Q2 Dec 2016). Production is gold ounces only, by-product credits are accounted for in AISC.
Implied free cash flow = AISC margin x estimated annualised production, and is an estimate only.
St Barbara share price vs US$ gold
- June 2013 to present, % change
600%
Join ASX 200
500%
400% Join ASX 300
ASX: SBM %
300%
200% Exit ASX 200 Exit ASX 300
100% US$ Gold %
0%
US$325 M debt repaid
Simberi cashflow +ve Gold Ridge sold
Source: IRESS to close 15 Mar 2017
8/ European Gold Forum | 4 to 6 April 2017
Consolidated production & costs, FY14 to present
AISC1 1,230
(US$2/oz)
838
(Guidance
750
mid point)
680
Production (koz)
387
368 377
9
Full Year
46 50 110 370
Guidance
350
range
80
70
267
45
248
215
53
138
First
half
0
FY14 FY15 FY16 FY17
Gwalia Simberi King of the Hills Gold Ridge Forecast
1. Non IFRS measure, refer slide in appendix.
9/ European Gold Forum | 4 to 6 April 2017 2. US$/A$ exchange rates average for the financial year per Reuters, see slide 2