fy20 q2 dec quarterly presentation v1.23 · 1/22/2020 · 5 / q2 december fy20 quarterly...
TRANSCRIPT
ASX Release / 22 January 2020
Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1900 Media Relations Mr Tim Duncan GRACosway with Hintons +61 408 441 122 ASX: SBM Authorised by Rowan Cole Company Secretary +61 3 8660 1900 ADR: STBMY St Barbara Limited Level 10, 432 St Kilda Road, Melbourne VIC 3004 T +61 3 8660 1900 F +61 3 8660 1999 ACN 009 165 066 Locked Bag 9, Collins Street East, Melbourne VIC 8003 W www.stbarbara.com.au
Presentation on Q2 December FY20 Quarterly Report and audio webcast
Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the Q2 December FY20 Quarterly Report at 11:00 am Australian Eastern Daylight Time (UTC + 11 hours) on Wednesday 22 January 2020. Conference call details for analysts and investors Please dial in five minutes before the conference call starts and provide your name, company and the Conference ID 1874499. Dial-in numbers: Australia 1800 148 258 International Toll +61 (0) 2 8038 5271 Canada 1866 837 4489 France 0800 908 221 Germany 0800 1814 827 Hong Kong 800 965 808 Norway 80 010 112 Singapore 8006 162 170 United Kingdom 0800 056 9662 USA 1866 586 2813 A live audio webcast of the briefing will be available on St Barbara’s website at stbarbara.com.au/investors/webcast/ or by clicking here. The audio webcast is ‘listen only’ and does not enable questions. The audio webcast will subsequently be made available on the website.
Q2 December FY20 Quarterly Presentation
BOB VASSIE, MANAGING DIRECTOR & CEO / 22 January 2020 ASX:SBM
Q2 December FY20 Quarterly Presentation2 /
Disclaimer
This presentation has been prepared by St Barbara Limited (“Company”). The material contained in this presentation is for informationpurposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to,securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment.
This presentation may contain forward‐looking statements that are subject to risk factors associated with exploring for, developing,mining, processing and sale of gold. Forward‐looking statements include those containing such words as anticipate, estimates, forecasts,should, will, expects, plans or similar expressions. Such forward‐looking statements are not guarantees of future performance andinvolve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of theCompany, and which could cause actual results or trends to differ materially from those expressed in this presentation. Actual resultsmay vary from the information in this presentation. The Company does not make, and this presentation should not be relied upon as, anyrepresentation or warranty as to the accuracy, or reasonableness, of such statements or assumptions. Investors are cautioned not toplace undue reliance on such statements.
This presentation has been prepared by the Company based on information available to it, including information from third parties, andhas not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy orcompleteness of the information or opinions contained in this presentation.
The Company estimates its reserves and resources in accordance with the Australasian Code for Reporting of Identified MineralResources and Ore Reserves 2012 Edition (“JORC Code”), which governs such disclosures by companies listed on the Australian SecuritiesExchange.
Financial figures are in Australian dollars unless otherwise noted.Financial year is 1 July to 30 June.Q1 Sep FY20 = quarter to 30 Sep 2019 Q3 Mar FY20 = quarter to 31 Mar 2020Q2 Dec FY20 = quarter to 31 Dec 2019 Q4 Jun FY20 = quarter to 30 June 2020
Title Slide Picture: Touquoy pit, Atlantic Gold Operations
3 /
Contents
• Highlights
• Safety
• Operations
• Projects
• Exploration
• Growth
• Conclusion
• Appendices
Q2 December FY20 Quarterly Presentation
4 /
Highlights Q2 December FY20
Q2 December FY20 Quarterly Presentation
• 94 koz at AISC2 of A$1,364/oz (Q1: 88 koz at A$1,421/oz1)• Atlantic Gold record quarter production• Leonora Operations 2.5 million ounces under St Barbara ownership• Simberi Operations 1.0 million ounces since operations commenced
Operational performance
• Operational cash contribution2 of A$66 M (Q1: A$44 M)• A$679/oz cash contribution2• Gwalia and Simberi guidance revised this quarter
Financial metrics
• A$79 M cash at bank3, • A$112 M debt4• Consolidated the existing A$200 M (undrawn) and C$100 M debt facilities into one, reducing interest expense by A$1.6 M p.a.
Capital management
• Growth projects or studies at all mines• PAF (Paste Aggregate Fill) complete, delivering into stopes• GEP (Gwalia Extension Project) delivering increased ventilation now• Encouraging drilling results in Nova Scotia and Papua New Guinea
Growth
1. On full quarter from Atlantic basis. SBM attributable production was 83 koz at AISC of $1,445/oz 2. Non IFRS measure, refer corresponding slide in Appendix3. Financial information unaudited. Cash balance comprises $69 M cash, $10 M term deposits4. C$100 M debt facility
Q2 December FY20 Quarterly Presentation5 /
Focus on Safety
Total Recordable Injury Frequency Rate1
5.0
2.1
1.2
2.1
5.0 5.0
4.2
FY15 FY16 FY17 FY18 FY19 Q1FY20
Q2FY20
• The Total Recordable Injury Frequency Rate (TRIFR, 12 month moving average) at 4.2 at the end of Q2 Dec FY20
• Corresponding LTIFR of 1.0 remains below WA industry average
1.0
1.9 1.9
St BarbaraQ2 FY20
WA Gold WA Metal
St Barbara LTIFR2 in comparison with Western Australian Mining benchmarks3
1. Total Recordable Injury Frequency Rate (12 month avg.), total recordable injuries per million hours worked. 2. LTIFR = Lost Time Injury Frequency Rate (12 month avg.), the number of lost time injuries per million hours worked3.Most recent statistics from www.dmp.wa.gov.au/Safety/Safety‐statistics‐16198.aspx
Q2 December FY20 Quarterly Presentation6 /
Consolidated Q2 December FY20 Results
1,053 1,0731,175
1,421 1,364
AISC (A$/oz)
1. Non IFRS measure, refer corresponding slide in Appendix2. Atlantic Gold was acquired on 19 July 2019. Atlantic Gold quarterly production prior to this date provided for
comparison. Reported Q1 Sep FY20 production and FY20 guidance includes 4,362 ounces produced by Atlantic Gold prior to acquisition. Consolidated Q1 AISC inc SBM attributable production = A$1,445/oz.
53 54 50 38 42
36 34 36
27 23
23 20 23
22 29
112 108 109
88 94
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
Gwalia Simberi Atlantic Total
Figures displayed to nearest thousand ounces. Reported ounces in associated table.
Gold Production(koz)
Q2 FY20 AISC1
• Consolidated A$1,364/oz(Q1: A$1,421/oz2)
• Gwalia A$1,471/oz (Q1: A$1,559/oz)• Simberi A$1,851/oz (Q1: A$1,603/oz)• Atlantic A$823/oz (Q1: A$970/oz)
Q2 FY20 Production • Consolidated 94 koz (Q1: 88 koz2) • Gwalia 42 koz (Q1: 38 koz)• Simberi 23 koz (Q4: 27 koz)• Atlantic 29 koz (Q4: 22 koz)
10.411.7
10.07.8 8.0
Mined grade(g/t Au)
53.3 54.350.0
38.242.0
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
Gold Production(koz)
Reported ounces in Quarterly Report.
Q2 December FY20 Quarterly Presentation7 /
Gwalia Q2 December FY20 Results
Q2 FY20 Production • 42,022 oz (Q1: 38,153 oz)• AISC1 A$1,471/oz (Q1: A$1,559/oz)• Mined grade of 8.0 g/t Au(Q1: 7.8 g/t Au)
• Mined lower grade stopes in Q2 as part of centre‐out mining sequence
• Total material moved remained steady at 267 kt, increased mined volume in constrained environment
1. Non IFRS measure, refer corresponding slide in Appendix2. Refer ASX announcement released 21 August 2019 titled ‘Ore Reserves and Mineral Resources Statements 30
June 2019’.
Reserve grade FY19 7.5 g/t Au
1,081 1,016 1,2301,559 1,471
AISC(A$/oz)
FY19 average $1,027/oz
Reserve grade FY2026.4 g/t Au
Q2 December FY20 Quarterly Presentation8 /
Gwalia Production and Cost Profile
FY20 guidance revisedDelayed completion of final raise bore impacts forecast development rate Mining sequence now returning to higher grade areas at the end of the financial year • Production of 170 to 180 koz (previously 175 to 190 koz)
• AISC1 of A$1,470 to A$1,540/oz (previously A$1,390 to A$1,450/oz)
• Sustaining capex: A$60 to A$65 M (unchanged)
• Growth capex: A$32 to $38 M (unchanged)
1. Non IFRS measure, refer corresponding slide in Appendix2. Midpoint of FY20 AISC guidance
248267 265 268
220
170180
FY15 FY16 FY17 FY18 FY19 FY20F
Production(koz)
AISC(A$/oz)
841 783 785 8021,027
1,5052
Q2 December FY20 Quarterly Presentation9 /
Gwalia Total material moved
Impact of GEP on trucking capacity• Excavation of the approx. 11 m high x 10 m wide chambers at 1,420 and 1,460 mbs for the PAF circuit commenced in Q1 Sep FY17
• Raise‐boring of the four 5‐metre diameter vent shafts commenced in Q3 Mar FY18
• The vent shafts total 2,800 m in length and represent a volume of ~44,000 m3
• PAF now operational and being delivered into stopes
• Ventilation fans operational, delivering 55% of GEP vent benefits from Q3
158 146 156 152 165
8278
106 115 98
2032
4260 256 262 267 267
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
Gwalia total material moved (kt)
Ore mined Development waste
Raisebore waste Total material moved
GEP = Gwalia Extension ProjectPAF = Paste Aggregate Fill
Gwalia Extension Project Update – Completion in Q4
1. PAF involves mixing paste from surface with waste crushed underground to fill stope cavities.2. Project announced 27 March 2017 ‘Gwalia Extension Project approved’.
Budget revised in ‘Q3 March FY19 Quarterly Report ’ released 18 April 2019.10 / Q2 December FY20 Quarterly Presentation
• Gwalia Extension Project (GEP) consists of two main components: a ventilation upgrade and paste aggregate fill (PAF)1
• PAF crushing circuit on 1420 level and mixing and pumping on 1460 is complete and commenced operation during Q2 December FY20
• Three of the four vent shafts and all major surface infrastructure operational, delivering 55% of GEP vent benefits from Q3
• Planned completion now April 2020 (previously Q3 March FY202) due to delays in completing the reaming of the final raisebore during the quarter due to poor ground conditions in some sections
• A$110 million spent on project to dateTop: PAF crushing circuit on 1420 levelAbove: Exhaust fans on site at Leonora (both November 2019)
36.034.1
36.2
27.123.1
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
1,146 1,229 1,2031,603 1,851
Q2 December FY20 Quarterly Presentation11 /
Simberi Q2 December FY20 Results
Q2 FY20 Production
• 23,070 oz (Q1: 27,061 oz)
• AISC1 A$1,851/oz (Q1: A$1,603/oz)
• Milled grade lower (Q2: 1.08 g/t Au; Q1: 1.19 g/t Au), with the combined impacts of processing lower grade stockpiles and remaining oxide areas
Sorowar drilling
• Confirmed presence of significant additional oxide and sulphide mineralisation, updated Resources and Reserves statement due Q3
FY20 Guidance
Grade and tonnage issues in Q2 have lead to a reforecast of guidance
• FY20 guidance revised to 105 to 115 koz (previously 110 to 125 koz) at AISC A$1,500 to A$1,645/oz2 (previously A$1,285 to A$1,450/oz)
• Sustaining capex of A$6 M (previously A$4‐5 M)
• Growth capex of $5 M (previously A$3‐4 M)1. Non IFRS measure, refer corresponding slide in Appendix2. US$1,025 to US$1,125 per ounce @ AUD 0.68 (previously US$900 to US$1,015 per ounce @ AUD 0.70)
AISC(A$/oz)
FY19 average $1,162/oz
Production(koz)
1.64 1.83 1.681.19 1.08
Milled grade(g/t Au)
22.519.6
22.9
4.4
18.0
29.1
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
Pre‐acquisition SBM attributable
840957 1,010 970
823
Q2 December FY20 Quarterly Presentation12 /
Atlantic Gold Q2 December FY20 Results
Q2 FY20 production• Record 29,067 oz (Q1: 22,355 oz)1
• AISC2 A$823/oz (C$741/oz) (Q1:A$970/oz;C$879/oz)
• Mill throughput increased (Q2: 637 kt, Q1: 577 kt) as a result of investments in plant reliability and more effective preparation for winter
FY20 Guidance• FY20 guidance unchanged at 95 to 105 koz and AISC of A$900 to A$955/oz3
• Sustaining capex unchanged at A$13‐17 M• Growth capex A$10‐12 M plus A$4 M land acquisition
1. Atlantic Gold was acquired on 19 July 2019. Atlantic Gold quarterly production prior to this date provided for comparison. Reported Q1 Sep FY20 production and FY20 guidance includes 4,362 ounces produced by Atlantic Gold prior to acquisition. SBM attributable Q1 AISC = A$964/oz.
2. Non IFRS measure, refer corresponding slide in Appendix. 3. C$810 to C$860 per ounce @ AUD 0.90
Production(koz)
AISC(A$/oz)
357 382 410
76 79
25 28
480
‐343
‐112 ‐112
‐200
0
200
400
600
800
1000
FY19Q2 Dec
FY19Q3 Mar
FY19Q4 Jun
FY20Q1 Sep
FY20Q2 Dec
Cash balance Net cash movement Debt facility
Entitle‐ment Offer (net
proceeds)
A$780 Atlantic Gold
Purchase
13 /
Cash Balance
Q2 December FY20 Quarterly Presentation
A$M
As at 31 December 2019For full explanation refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
Q3 movement net of:
$19 M growth capex
$14 M dividends
$4 M tax
Q4 movement net of:
$20 M growth capex
$10 M exploration
$8 M tax
890
Q1 movement net of:
$19 M dividends
$14 M growth capex
$13 M exploration
$8 M working capital movement
Q2 movement net of:
$24 M tax
$15 M growth capex
$10 M exploration
14 /
Exploration | Key Developments
Gwalia, WA• Finalisation of deeps campaign, early stage studies on
historical satellite pits, Greater Gwalia and Leonora Regional medium term targets
Simberi Island, PNG• Final results of sulphide drilling beneath Sorowar pit (69 RC
holes), updated reserves and resources statement in Q3 FY20Moose River Corridor and Cochrane Hill, Canada, NS• Ongoing drilling at potential extensions to existing planned
pits and potential satellite pits with encouraging results at Fifteen Mile Stream, exploration drilling underway east of Touqouy at Wire Lake and Jed Lake
South West Nova Scotia Regional Program• Pleasantfield ‐ First drill results in the region find anomalous
gold over 1 km strike• North Brookfield drilling startedHorn Island Qld, Pinjin & Lake Wells WA, Back Creek NSW• Results from Horn Island (QLD) and Lake Wells (WA) JVs in full
report, Pinjin and Back Creek aircore drilling results in appendix
Potential new JV with Catalyst (VIC Australia) at Drummartin1
Q2 December FY20 Quarterly Presentation 1. Subject to approval by Catalyst shareholders at a General Meeting on 21 February 2020For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
15 /
Exploration | Simberi Island, PNG
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
16 /
Exploration | Fifteen Mile Stream, Nova Scotia, Canada
Q2 December FY20 Quarterly Presentation
149 Deposit: Drilling to confirm potential Fifteen Mile Stream satellite pit. Results include:
o 56 m @ 0.86 g/t Au from 121 m (FMS‐19‐481)
o 16 m @ 1.03 g/t Au from 27 m (FMS‐19‐486)
o 12 m @ 0.53 g/t Au from 117 m (FMS‐19‐486)
o 19 m @ 0.99 g/t Au from 152 m (FMS‐19‐486)
o 6 m @ 1.41 g/t Au from 6 m (FMS‐19‐510)
o 11 m @ 1.39 g/t Au from 67 m (FMS‐19‐510)
Seloam Brook: potential Fifteen Mile Stream pit extension. Results include:
o 5 m @ 0.87 g/t Au from 59 m (SB‐19‐032)
o 6 m @ 0.53 g/t Au from 123 m (SB‐19‐032)
o 20 m @ 0.57 g/t Au from 170 m (SB‐19‐032)
o 9 m @ 0.72 g/t Au from 46 m (SB‐19‐032)
o 1 m @ 7.46 g/t Au from 32 m (SB‐19‐032)
o 1 m @ 7.52 g/t Au from 58 m (SB‐19‐037)
o 3 m @ 2.85 g/t Au from 110 m (SB‐19‐037)
o 1 m @ 14.45 g/t Au from 188 m (SB‐19‐037)
o 6 m @ 1.19 g/t Au from 86 m (SB‐19‐038)
All intercepts downholeFor full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly ReportSee Slide 32 in appendix for further details’
17 /
Exploration | Pleasantfield, Nova Scotia, Canada
Q2 December FY20 Quarterly Presentation
Pleasantfield: First drill results in South West tenements, following up 2013 Atlantic Gold drilling and geophysical survey, 7 deep holes (for 741 m) and 29 shallow holes (for 638 m, only 2 results received so far). Results include:
PFRC‐19‐001:o 3 m @ 0.91 g/t Au from 6 m
o 1 m @ 3.00 g/t Au from 22 m
o 1 m @ 0.64 g/t Au from 46 m
o 1 m @ 1.32 g/t Au from 57 m
o 1 m @ 0.62 g/t Au from 62 m
o 1 m @ 0.55 g/t Au from 87 m
o 1 m @ 0.73 g/t Au from 92 m
MRG3998:o 2 m @ 1.28 g/t Au from 15 m
All intercepts downholeFor full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
18 /
Strategy for the next 5 years – “Stronger for Longer”
Q2 December FY20 Quarterly Presentation
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 pipelineActively add, manage and progress assets in all phases of the pipeline
Talented people who deliverSupport and work with our people to continue to achieve extraordinaryresults
Trusted to operateOur various stakeholders trust us everywhere we choose to operate
19 /
Growth Pipeline
Atlantic Gold(Regional)
Atlantic Gold(Moose River Corridor)
Tabar Island Group (Au, Au‐Cu)
Back Creek
Leonora Province Atlantic Gold(Beaver Dam)
Greater Gwalia Atlantic Gold(Cochrane Hill)
Peel Mining(16%)
Pinjin Atlantic Gold(Fifteen Mile Stream)
Atlantic Gold(Touquoy Mine)
Catalyst Metals(14%)
Aust Potash (Au, EJV)
Simberi Sulphide Simberi Mine
Duketon Mining(12%)
Horn Island(Au, EJV with AQX)
Tower Hill Gwalia Extension Gwalia Mine
Equity Investments Exploration Feasibility Construction Producing
KEY
Canada
Papua New Guinea
Australia
Equity Investments
Producing
1. Earn‐in and Joint Venture Agreement with Australian Potash announced 8 October 20182. Earn‐in and Joint Venture Agreement in Horn Island with Alice Queen announced 5 June 2019.3. Atlantic holds a 63.1% beneficial interest in Touquoy. Atlantic owns 60% of Touquoy and 7.9% of Moose River Resources Inc.
(MRRI) that has a 40% carried interest in Touquoy. Atlantic has the right to purchase MRRI's 36.9% beneficial interest at fair market value. Atlantic can recoup capital expenditures relating to the development of the mine and related assets before it begins making payments to MRRI with respect to the carried interest.
Q2 December FY20 Quarterly Presentation
20 /
Conclusion
Q2 December FY20 Quarterly Presentation
• Record Atlantic quarterly production a combination of increased grade and improvements in operating performance from a maturing workforce and business improvement program
• Gwalia mining and processing maintained in ventilation constrained environment, GEP completion due Q4 June FY20– PAF delivering into stopes now– Three of the four vent shafts and all major surface infrastructure operational,
increasing ventilation 55% during Q3 (from 450 to 700 m3/s)• Simberi reached one million ounce milestone, drill results confirm significant
additional oxide and sulphide mineralisation, updated R&R due Q3• Guidance revised at Gwalia and Simberi• Encouraging drill results at Gwalia, Simberi and Atlantic Gold
Appendices
Q2 December FY20 Quarterly Presentation21 /
Q2 December FY20 Quarterly Presentation22 /
Diversity and Sustainability Developments in Q2 FY20
$50,000 donation to Bushfire appeals
• $25,000 to Red Cross, $25,000 to Salvation Army plus Company will match employee donations
ESG reporting rating
• St Barbara rated in the 2nd quintile in Macquarie’s 2019 ESG Ratings Survey
Leonora Family Day
• 170 employees, contractors and family members hosted at Leonora Operations in October 2019
Integrated suite ofannual reporting
Sustainability Report
Corporate Governance Statement
Annual Report
L:R: Rehab works at the Sorowar waste dump Simberi PNG, January 2020, New Bridge built for community at Botlu village, following damage from king tides, Simberi PNG, January 2020, Family Day at Gwalia 6 October 2019
Production SummaryConsolidated
Q4 Jun FY19
YearFY 19
Q1 SepFY20
AG full quarter
Q1 SepFY20
AG SBM attrib.
Q2 DecFY20
1HFY20
Guidance FY20
St Barbara’s financial year is 1 July to 30 June
Qtr to 30 Jun 2019
Year to 30 June 2019
Qtr to 30 Sep 2019
Qtr to 30 Sep 2019
Qtr to 31 Dec 2019
6 months to31` Dec 2019
Year to 30 June 2020
ProductionGwalia oz 49,966 220,169 38,153 38,153 42,022 80,175 170‐180 koz (prev. 175 to 190 koz)Simberi oz 36,231 142,177 27,061 27,061 23,070 50,131 105‐115 koz (prev. 110 to 125 koz)Atlantic oz 22,948 92,639 22,355 17,993 29,067 51,422 95‐105 koz
Consolidated oz 109,145 454,985 87,569 83,206 94,159 181,728370‐400 koz
(prev. 380‐420 koz)Mined Grade Reserve grade1
Gwalia g/t 10.0 11.1 7.8 7.8 8.0 8.0 6.4Simberi g/t 1.48 1.43 1.09 1.09 1.03 1.06 1.3Atlantic g/t 0.91 0.98 0.86 0.86 1.02 0.93 1.1Total Cash Operating Costs2
Gwalia A$/oz 821 746 1,124 1,124 1,016 1,067 n/a
Simberi A$/oz 1,021 1,016 1,440 1,440 1,704 1,561 n/a
Atlantic A$/oz 744 662 747 746 669 703 n/a
Consolidated A$/oz 871 813 1,125 1,145 1,077 1,100 n/a
All‐In Sustaining Cost2
Gwalia A$/oz 1,230 1,027 1,559 1,559 1,471 1,513 1,470 to 1,540 (prev. 1,390 to 1,450)
Simberi A$/oz 1,203 1,162 1,603 1,603 1,851 1,717 1,500 to 1,6453 (prev. 1,285 to 1,450)
Atlantic A$/oz 1,010 862 970 964 823 887 900 to 9554 (new)
Consolidated A$/oz 1,175 1,036 1,421 1,445 1,364 1,3911,330 to 1,420
(prev. 1,240 to 1,330)
1. Ore Reserve grade at 30 June 2019, refer Ore Reserve and Mineral Resources Statement (released 21 August 2019).2. Non‐IFRS measure, refer Appendix.3. US$1,025 to US$1,125 per ounce @ AUD 0.68 (prev. US$900 to US$1,015 per ounce @ AUD 0.70)4. C$810 to C$860 per ounce @ AUD 0.90
23 /
Consolidated Production, Costs, Guidance Summary
Q2 December FY20 Quarterly Presentation
Q2 December FY20 Quarterly Presentation24 /
Consolidated FY20 guidance
FY20 Consolidated Guidance • Production 370 to 400 koz (previously 380‐420 koz)
• AISC1 A$1,330/oz to A$1,420/oz (previously A$1,240 to A$1,330/oz)
• Sustaining capex A$79 to A$88 M (previously A$77 to A$87 M)
• Growth capex A$51 to A$59 M (now inc. Atlantic Gold, previously A$35 to A$42 M excl. Atlantic Gold)
907 8911,080 1,375
AISC (A$/oz)
265 268220
175
116 135142
110
100
381 403362
385
FY17 FY18 FY19 FY20FGwalia Simberi Atlantic Total
Figures displayed to nearest thousand ounces. Reported ounces in associated table.
Production(koz)
(mid‐points)
1. Non IFRS measure, refer corresponding slide in Appendix
25 /
Exploration | FY20 Guidance – A$31 to A$41 million
A$7 – A$9 million Leonora • Shift in focus from Gwalia Deep Drilling to region and
Greater Gwalia
A$5 – A$7 million Pinjin, Lake Wells & Back Creek • AC, RC and diamond drilling of identified targets
A$8 – A$12 million PNG• Simberi Oxides/Sulphides and Porphyry
A$11 – 13 million Atlantic Gold Canada• Moose River Corridor and South West Region
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
26 /
Exploration | Gwalia Deep Drilling, WA
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
27 /
Exploration | Gwalia Deeps, WA
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
28 /
Exploration | Greater Gwalia & Leonora Regional, WA
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
29 /
Exploration | Pinjin ‐ Green Dam and Mulgabbie Trend South, WA
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
30 /
Exploration | Back Creek, NSW
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
Simberi Sulphide – Potential Long Life Mine Extension
Q2 December FY20 Quarterly Presentation31 /
Modelled ultimate pit shells1 with associated sulphide reserves
• Focused exploration for sulphide ore underway to improve project economics
• Sorowar not drilled at depth previously
• Sorowar drill results to date indicate significant additional sulphide and oxide mineralisation
• Updated Resources and Reserves planned for Q3 March FY20
1.4 Moz Sulphide Reserve @ 2.4 g/t Au,
3.3 Moz Sulphide Resource @ 1.6 g/t Au2
Distribution of 1.4 Moz Sulphide Reserve
Samat, 83 koz
Botlu, 109 koz
Pigibo, 57 koz
Pigiput, 1,006 koz
Sorowar, 122 koz
1. Taken from 2016 Simberi Sulphide PFS. PFS level of accuracy 30%. For full explanation refer to Q3 March 2016 Quarterly Report released 19 April 2016.
2. For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
32 /
Exploration | Fifteen Mile Stream, Nova Scotia, Canada
Q2 December FY20 Quarterly Presentation For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
Touquoy Tailings Management Facility (TMF)
Construction:• Type of TMF: Downstream raise • Rock dam with clay core and 2 filter
layers• Water Management: tailings pond,
effluent treatment plant (ETP), polishing pond and engineered wetland
Metrics:• Elevation: 125 masl• Current wall height: 19 m• Projected final wall height: 24 m• Tailings deposition rate (water volume):
8,499 m³/day• Reclaim (water recycling) rate
8,020 m³/day• Deposited dry density: 1.4 t/m3
• Total capacity: 9.3 Mt • Cyanide treatment – destruction via INCO sulphur dioxide treatment in processing plant• Arsenic treatment – two stage – initially in processing plant via oxygen reduction with ferric sulphate (~80%).
At Effluent Treatment Plant (ETP), with peroxide and ferric sulphate, capture of precipitate with ‘geo‐bags’/tubes
• 94% of Touquoy water requirements are extracted from the TMF. Remaining 6% is extracted from Scraggy Lake (which is also final discharge point)
• Built to Canadian Dam Association (CDA, member of ICOLD) guidelines.
33 / Q2 December FY20 Quarterly Presentation
• Engineer of Record & Independent Tailings Review Board in place
o A dam safety management x2 annual dam safety inspections and a dam safety review in Year 5.
o Groundwater testing performed at multiple locations and depths, reported to regulators
• Historic tailings permanently stored within an engineered containment cell. Historic contaminated water captured and treated.
• Potential for acid rock drainage is low
• Multiple protection plans (including Wetland, Groundwater, Wildlife) in place and audited.
• A regulatory mine closure plan is in place which includes rehabilitation of the TMF.
LeonoraTownship
LeonoraShire
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1.2 1.5 0.4 0.3 1.0 2.55 5
2 1
25
710 10
0
5
10
15
20
25
30
35
40
45
50
Arsenic Cyanide Copper Lead Nickel Zinc
2018 Average water quality in Scraggy Lake (mixing zone) vs CCME FAL
guideline and WHO drinking water guidelines (ug/L)
Scraggy Lake CCME WHO
2000500
Touquoy TMF ‐ Governance
No limit
ug/L = micro grams per litre, equivalent of ‘parts per billion’.Canadian Council of Ministers of the Environment (CCME) Freshwater Aquatic Life (FAL) guidelines:https://www.ccme.ca/en/resources/canadian_environmental_quality_guidelines/index.htmlWorld Health Organisation (WHO) Drinking water guidelines:https://apps.who.int/iris/bitstream/handle/10665/254637/9789241549950‐eng.pdf;jsessionid=18E95BF6E26AECE8850979910EA1E428?sequence=1Note for Cyanide, CCME uses WAD, WHO uses Total.
70
Q2 December FY20 Quarterly Presentation
Ug/L
35 /
Hedging Summary at 22 January 2020
Q2 December FY20 Quarterly Presentation
Financial Year
Volume ounces Price $/oz Delivery
(all monthly instalments) Announced
FY20 20,000 A$1,809 January and June 2020 26 Oct 2018
FY20 20,173 US$1,300 January and June 2020 10 Dec 2018
FY21 26,000 A$1,809 July and December 2020 26 Oct 2018
FY21 26,000 US$1,300 July and December 2020 10 Dec 2018
Atlantic Gold
Volume ounces Price $/oz Delivery
(quarterly instalments) Announced
Nov 2019 to Feb 2021 78,010 C$1,550 November 2019 to February 2021 21 Sep 2018
For full explanation and results refer to ASX release 22 January 2020 ‘Q2 December FY20 Quarterly Report’
36 /
Ore Reserves Summary as at 30 June 2019 + Atlantic Gold
Project
Proved Probable Total
Tonnes('000)
Gold (g/t)
Ounces('000)
Tonnes('000)
Gold (g/t)
Ounces('000)
Tonnes('000)
Gold (g/t)
Ounces('000)
Gwalia, (WA) 2,220 8.0 568 7,915 5.9 1,506 10,135 6.4 2,073
Tower Hill, (WA) ‐ ‐ ‐ 2,572 3.7 306 2,572 3.7 306
Simberi Oxide, (PNG) 1,547 1.5 75 5,346 1.2 213 6,893 1.3 288
Simberi Sulphide, (PNG) 1,615 2.0 105 16,520 2.4 1,270 18,135 2.4 1,375
Simberi Stockpiles, (PNG) 1,058 0.7 24 ‐ ‐ ‐ 1,058 0.7 24
Total (30 June 2019) 6,440 3.7 772 32,353 1.1 3,295 38,793 3.3 4,066
Atlantic Gold, (NS) 25,400 1.1 902 26,550 1.1 973 51,950 1.1 1,875
Total All Projects 31,840 1.6 1,674 58,903 2.3 4,268 90,743 2.0 5,941
Notes1. Ore Reserves are based on a gold price of: Gwalia (AU$1,600/oz), Tower Hill (AU$1,250/oz), Simberi (US$1,250/oz)2. Cut‐off Grades Gwalia (4.7g/t Au), Tower Hill (2.8g/t Au), Simberi Oxide (0.5g/t Au) 3. Mineral Resources are reported inclusive of Ore Reserves4. Data is rounded to thousands of tonnes and thousands of ounces. Discrepancies in totals may occur due to rounding5. Details relating to each of the estimates are contained in the 2019 Annual Mineral Resource and Ore Reserve Report at www.stbarbara.com.au/exploration/Ore‐Reserves‐mineral‐
resources/6. The information for the Atlantic Gold Mineral Resources or Ore Reserves is extracted from the report entitled ‘Moose River Consolidated Mine, Nova Scotia, Canada, NI 43‐101 Technical
Report’ created on 25 March 2019 and is available to view at stbarbara.com.au . The company confirms that it is not aware of any new information or data that materially affects the estimates of Mineral Resources or Ore Reserves, that all material technical assumptions and technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
Full details are contained in the ASX release dated 21 August 2019 ‘Ore Reserves and Mineral Resources Statements 30 June 2019’ available at www.stbarbara.com.au
Q2 December FY20 Quarterly Presentation
37 /
Mineral Resources Summary at 30 June 2019 + Atlantic Gold
Project
Measured Indicated Inferred Total
Tonnes('000)
Gold (g/t)
Ounces('000)
Tonnes('000)
Gold (g/t)
Ounces('000)
Tonnes('000)
Gold (g/t)
Ounces('000)
Tonnes('000)
Gold (g/t)
Ounces('000)
Gwalia, (WA) 5,034 7.3 1,183 17,527 6.0 3,393 1,129 5.5 199 23,690 6.3 4,775
Tower Hill, (WA) ‐ ‐ ‐ 4,604 3.9 574 489 3.3 51 5,093 3.8 625
Simberi Oxide, (PNG) 2,414 1.3 103 10,562 1.1 376 12,886 0.9 383 25,862 1.0 862
Simberi Sulphide, (PNG) 2,897 1.6 150 43,450 1.7 2,375 18,591 1.4 810 64,938 1.6 3,335
Total (30 June 2019) 10,345 4.3 1,436 76,143 2.7 6,718 33,095 1.4 1,443 119,583 2.5 9,597
Atlantic Gold, (NS) 25,180 1.2 936 32,230 1.1 1,183 6,060 1.3 252 63,470 1.2 2,371
Total All Projects 35,525 2.1 2,372 108,373 2.3 7,901 39,155 1.3 1,695 183,053 2.0 11,968
Notes1. Mineral Resources are reported inclusive of Ore Reserves2. Cut‐off Grades Gwalia (2.5g/t Au), Tower Hill (2.5g/t Au), Simberi Oxide (0.4g/t Au), Simberi Transitional and Sulphide (0.6g/t Au)3. Simberi Mineral Resources are reported constrained by a US$1,800/oz pit shell4. Data is rounded to thousands of tonnes and thousands of ounces. Discrepancies in totals may occur due to rounding5. Details relating to each of the estimates are contained in the 2019 Annual Mineral Resource and Ore Reserve Report at www.stbarbara.com.au/exploration/Ore‐Reserves‐mineral‐
resources/ 6. The information for the Atlantic Gold Mineral Resources or Ore Reserves is extracted from the report entitled ‘Moose River Consolidated Mine, Nova Scotia, Canada, NI 43‐101
Technical Report’ created on 25 March 2019 and is available to view at stbarbara.com.au . The company confirms that it is not aware of any new information or data that materially affects the estimates of Mineral Resources or Ore Reserves, that all material technical assumptions and technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
Full details are contained in the ASX release dated 21 August 2019 ‘Ore Reserves and Mineral Resources Statements 30 June 2019’ available at www.stbarbara.com.au
Q2 December FY20 Quarterly Presentation
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Non‐IFRS Measures and Scheduled Announcements
We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) withcertain non‐IFRS financial measures, including cash operating costs. We believe that these measures provide meaningfulinformation to assist management, investors and analysts in understanding our financial results and assessing our prospectsfor future performance.
Cash operating costs • Calculated according to common mining industry practice using The Gold Institute (USA)Production Cost Standard (1999 revision)Refer most recent quarterly report available at stbarbara.com.au for example
All‐In Sustaining Cost • All‐In Sustaining Cost is based on Cash Operating Costs, and adds items relevant to sustainingproduction. It includes some, but not all, of the components identified in World Gold Council’sGuidance Note on Non‐GAAP Metrics ‐ All‐In Sustaining Costs and All‐In Costs (June 2013)Refer most recent quarterly report available at stbarbara.com.au for example
Cash contribution • Refer cash movements table in Finance section of corresponding Quarterly Report. It is thesum of ‘operating cash flow’ from individual operations, net of sustaining capital expenditure.
• Cash contribution per ounce = cash contribution ounces of gold sold• Refer most recent quarterly report available at stbarbara.com.au for example
Q2 December FY20 Quarterly Presentation
Scheduled ASX Announcements
19 February 2020 Half Year Financial Report
39 /
Competent Persons Statement
Exploration ResultsThe information in this presentation that relates to Exploration Results for Simberi and Pinjin is based on information compiled by Dr Roger Mustard, who isa Member of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full‐time employee of St Barbara and has sufficient experience relevantto the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Mustard consents tothe inclusion in the report of the matters based on his information in the form and context in which it appears.The information in this presentation that relates to Exploration Results for Gwalia and the Leonora region is based on information compiled by Mr RobertLove, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Love is a full‐time employee of St Barbara and has sufficient experiencerelevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Personas defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Love consents tothe inclusion in the report of the matters based on his information in the form and context in which it appears.The information in this report that relates to Exploration Results for Nova Scotia is based on information compiled by Mr Klaus Popelka, M.Sc. (AppliedGeosciences), who is a member of the Professional Geoscientists of Nova Scotia. Mr. Popelka is a full‐time employee of St Barbara and has sufficientexperience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr.Popelka consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Mineral Resource and Ore Reserve EstimatesThe information in this presentation that relates to Mineral Resources or Ore Reserves for Gwalia, Tower Hill and Simberi is extracted from the report titled‘Ore Reserves and Mineral Resources Statements 30 June 2019’ released to the Australian Securities Exchange (ASX) on 21 August 2019 and available toview at stbarbara.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in theoriginal ASX announcement released on 21 August 2019 and that all material assumptions and technical parameters underpinning the estimates in theoriginal ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the CompetentPerson's findings are presented have not been materially modified from the original ASX announcement.The information for the Atlantic Gold Mineral Resources or Ore Reserves is extracted from the report entitled ‘Moose River Consolidated Mine, NovaScotia, Canada, NI 43‐101 Technical Report’ created on 25 March 2019 and is available to view at stbarbara.com.au. The company confirms that it is notaware of any new information or data that materially affects the estimates of Mineral Resources or Ore Reserves, that all material technical assumptionsand technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed. The companyconfirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original marketannouncement.
Full details are contained in the ASX release dated 21 August 2019 ‘Ore Reserves and Mineral Resources Statements 30 June 2019’ available atstbarbara.com.au.
Q2 December FY20 Quarterly Presentation
Q2 December FY20 Quarterly Presentation40 /
Investor Relations Enquiries
Rowan ColeCompany Secretary
T: +61 3 8660 1900
David CotterellManager Investor Relations