ASX Release / 5 December 2016 Presentation to PNG Mining and Petroleum Investment Conference Attached is a presentation by Bob Vassie, Managing Director and CEO, to the 14th Papua New Guinea Mining and Petroleum Investment Conference in Sydney today. Investor Relations Mr Rowan Cole Company Secretary +61 3 8660 1900 Media Relations Mr Tim Duncan Hinton & Associates +61 3 9600 1979 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
BOB VASSIE, MANAGING DIRECTOR & CEO / 5 December 2016 PNG Mining & Petroleum Investment Conference
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 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 and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results or trends to differ materially from those expressed in this presentation. Actual results may vary from the information in this presentation. The Company does not make, and this presentation should not be relied upon as, any representation or warranty as to the accuracy, or reasonableness, of such statements or assumptions. Investors are cautioned not to place undue reliance on such statements. This presentation has been prepared by the Company based on information available to it, including information from third parties, and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness 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 Mineral Resources and Ore Reserves 2012 Edition ( JORC Code ), which governs such disclosures by companies listed on the Australian Securities Exchange. Financial figures are in Australian dollars unless otherwise noted. Financial year is 1 July to 30 June. This presentation published 1 December 2016. As at 30 Nov 2016: AUD $1.00 = USD $0.75, USD $1.00 = AUD $1.34 AUD $1.00 = PGK $2.37, PGK 1.00 = AUD $0.42 www.rba.gov.au 2 / PNG Mining & Petroleum Conference / 5 December 2016
Contents Overview Strategic Review Simberi Operations People + Community Exploration 3 / PNG Mining & Petroleum Conference / 5 December 2016
Overview of operations ASX 200 listed Company (SBM), founded 1969 > Shares on issue 497 M > Market Cap 2 A$1,099 M > Ore Reserves June 2016 4.0 Moz 1 > Mineral Resources June 2016 9.1 Moz 1 Consolidated production FY16 387 koz @ AISC 4 A$933/oz FY17F 3 355 koz @ AISC A$1,030/oz Leonora Gwalia underground mine FY16 production 267 koz @ AISC A$783/oz FY17F 3 production 255 koz @ AISC A$880/oz Exploration Greenfields and brownfields exploration portfolio in Australia & PNG Near mine targets JV with Newcrest in PNG 4 / PNG Mining & Petroleum Conference / 5 December 2016 Leonora Australia Simberi Simberi Open pit mine FY16 production 110 koz @ AISC A$1,293/oz FY17F 3 production 100 koz @ AISC @ A$1,410 1. Refer ASX announcement 23 August 2016 titled Ore Reserves and Mineral Resources Statements 30 June 2016. 2. As at close 30 Nov 2016, A$2.21ea. 3. FY17F is midpoint of guidance, released 19 July 2016 in Q4 June 2016 Quarterly Report. 4. Non IFRS measure, refer corresponding slide in Appendix
Simberi Operations 5 / PNG Mining & Petroleum Conference / 5 December 2016
Start safe, stay safe Simberi Total Recordable Injury Frequency Rate 1 10 8 6 4 2 0 FY13 FY14 FY15 FY16 Recordable Injury 12 Month TRIFR Ongoing improvement in safety results Regulatory & internal audits Heavy vehicle safety - training focus in FY16 Strong team commitment 6 / PNG Mining & Petroleum Conference / 5 December 2016 1. Total Recordable Injury Frequency Rate calculated as a 12 month rolling average
Mining rate is the key to production Mining (kt) 9,898 6,293 Mining Consecutive years of >50% improvement Processing 3.3 Mt processed in FY16, 29% improvement Y on Y Production (koz) 4,151 80 110 44 FY14 FY15 FY16 Production Mining 7 / PNG Mining & Petroleum Conference / 5 December 2016 Mining is total material moved (ore + waste).
Simberi FY14, FY15 and FY16 SIMBERI MINE OUTPUT SIMBERI GOLD PRODUCTION 4,151 kt 6,293 kt 9,899 kt 44 koz 80 koz 110 koz FY14 FY15 FY16 SIMBERI MILL THROUGHPUT FY14 FY15 FY16 AISC 1 (A$/oz) 1,713 kt 2,670 kt 3,315 kt 2,300 1,464 1,293 8 / FY14 FY15 FY16 PNG Mining & Petroleum Conference / 5 December 2016 FY14 FY15 FY16 1. Non IFRS measure, refer corresponding slide in Appendix
Strategic review complete St Barbara to retain and operate Simberi Operations Option and Farm-in Agreement with Newcrest for joint coppergold porphyry exploration on nearby islands Focused exploration underway on Tatau and Big Tabar to improve the economics of possible future sulphide expansion 9 / PNG Mining & Petroleum Conference / 5 December 2016 For full explanation refer to ASX release Simberi Strategic Review Concluded 14 November 2016
Exploration 10 / PNG Mining & Petroleum Conference / 5 December 2016 Left, Descent from Mt Banesa, Top, view from Tomalabat Exploration camp, Bottom, drilling at Mt Letam copper-gold porphyry prospect
Exploration Progressing exploration to add resources and reserves to current oxide mine life and potential sulphide project Bekou South Mt Letam, Tatau Southwest Tatau LiDAR (Light Detection and Ranging) survey of Tatau and Big Tabar Islands to generate an accurate and detailed digital terrain model JV with Newcrest for copper-gold porphyry exploration > Recognises copper-gold porphyry potential on Tabar Islands > JV enables the required large scale exploration and development 11 / PNG Mining & Petroleum Conference / 5 December 2016 For full explanation and results refer ASX release 19 October 2016 Quarterly Report September 2016
Bekou South, Simberi Island 10 hold diamond drill program was completed at Bekou South during the June 2016 quarter Final results for the drilling program were received during the September 2016 quarter 12 / PNG Mining & Petroleum Conference / 5 December 2016 For full explanation and results refer ASX release 19 October 2016 Quarterly Report September 2016
Mr Letam, Tatau Island A single 530m diamond drill hole was completed on the Au-Cu porphyry prospect during the September 2016 quarter Results to be interpreted during the December 2016 quarter 13 / PNG Mining & Petroleum Conference / 5 December 2016 For full explanation and results refer ASX release 19 October 2016 Quarterly Report September 2016
Southwest Tatu Island Trenching and diamond drill program underway targeting higher grade sulphideoxide potential 14 / PNG Mining & Petroleum Conference / 5 December 2016 For full explanation and results refer ASX release 19 October 2016 Quarterly Report September 2016
People and Community Gwalia Processing plant Gwalia Underground mining Truck 15 / PNG Mining & Petroleum Conference / 5 December 2016
Economic contribution PGK million Salaries FY14 FY15 FY16 Island Residents 12 10 12 Nationals 22 19 19 Total salaries 34 29 31 Purchases within PNG (inc. with local contractors and landowner businesses) food and materials 61 51 58 services, airlines, freight 60 e 50 e 69 Local Area compensation payments and support 0.4 0.8 1.0 Royalties (2.0% of gold revenue) 2.7 4.8 7.3 MRA Levy (0.25% of gold revenue) 0.3 0.6 0.9 PAYG 9.6 10.4 11.0 Withholding Taxes 1.7 0.7 0.6 Total contribution 170 147 179 16 / PNG Mining & Petroleum Conference / 5 December 2016 e = estimated expenditure
Commitment to employing the community Simberi Operation directly employs approx. 630 PNG Nationals Supports landowner businesses through 30 direct contracts totalling 20 million kina in FY16 Gwalia Processing plant Bakery Boats Earthmoving & trucking Relocation houses Roads Exploration logistics Wet mess Contracts range between K3,000 to K500,000 per month Expats 4% PNG Gwalia Underground mining Truck Nationals 36% New Irelanders 5% Total Simberi Employees Simberi & Tabar Islanders 54% 17 / PNG Mining & Petroleum Conference / 5 December 2016
Upskilling our workforce Commitment to upskilling our workforce Apprenticeships 900,000 Kina spent on training in FY16 17 enrolled in nationally recognised apprenticeships Gwalia Processing plant 3 scholarships to university degree level students 7 graduated from Finance & Administration course, 5 employed Flexible Open & Distance Education (e-learning) free to employees & locals 24 completed 1 or more subjects at year 10-12 Traineeships Gwalia Underground Scholarships mining Truck Adult High School Internal training courses Internal development programs 18 / PNG Mining & Petroleum Conference / 5 December 2016 Top: Exploration Manager Henry Korowa Centre: Senior Superintendent Environment & Community Basil Bulkua Bottom: Senior in-pit Coach, Papof Lamasi
Addressing Family & Sexual Violence > PNG Business Coalition for Women > Gender Smart Safety Project delivering robust and sustainable gender-smart safety management and practices > The Warrior Culture Program education and awareness program on domestic violence with very positive feedback > Family & Sexual Violence Policy currently investigating a policy that introduces specific support measures 19 / PNG Mining & Petroleum Conference / 5 December 2016
Supporting the community Ongoing focus on road and water infrastructure, education, medical services Maintaining roads bridges, water supply, school and clinics Logistical support to school and police Gwalia Processing plant inc. housing, travel, vehicles Simberi clinic conducts approx. 900 consultations per month 3 doctors and 6 other staff from Australian Doctors International visited the Clinic in November 2016 Work closely with PIMI to eradicate malaria free testing and drugs provided to all employees and the local community 20 / PNG Mining & Petroleum Conference / 5 December 2016 Gwalia Underground mining Truck Top L+R Exploration access signing ceremony on Tabar Island Bottom Community relations visit to Maragon Primary school where Company has commissioned landowner company to build two new houses for teachers.
Supporting the community Simberi Ring Road Maintenance > Resurfacing utilizing local landowner contractors > Re-sheeting of washouts / potholes > Culvert and bridge maintenance Gwalia Processing plant School Support > K10,000 towards classroom books > Joint venture with SMAA & SGCL to construct two teachers houses Gwalia Underground mining Truck Community Policing Support > Provision of vehicle for police operations > Accommodation and meals onsite > Travel to and from Simberi Island 21 / PNG Mining & Petroleum Conference / 5 December 2016 Top Simberi ring road construction of new culverts Bottom Opening ceremony for new house company commissioned for teacher at Maragon primary school, one of two.
Supporting Simberi s future Increased focus on sustainable and independent business development Landowners business umbrella company SMS (Simberi Mining Services) established to provide sustainable business opportunities post mining e.g. bakery, rehabilitation, agriculture, tourism, fishing Receive training in business acumen & accounting Gwalia Underground mining Truck Business Development Initiatives Market Garden Complete Chicken Farm Complete Fisheries Initial fingerling release, training being sourced Coffee and Coca plantation Sites being selected 22 / PNG Mining & Petroleum Conference / 5 December 2016
Conclusion Simberi turn-around complete Proven to be a reliable cash generating business 6 quarters of greater than 100 koz p.a. rate Approximately 2 more years of oxide mine life remaining exploration underway for additional sources of oxide to extend mine life Sulphide project estimated cost A$130 million, two years to build Exploration required to improve mineable reserves and investment proposition before reconsider project Series of prospective targets planned for drilling Joint venture with Newcrest for copper-gold exploration Good opportunity for both companies Recognition of exploration prospectivity 23 / PNG Mining & Petroleum Conference / 5 December 2016
Questions? 24 / PNG Mining & Petroleum Conference / 5 December 2016
Appendices Near shore sampling at Simberi 25 / PNG Mining & Petroleum Conference / 5 December 2016
Simberi FY17 guidance and production summary Simberi Guidance for FY17 Gold production of between 95,000 and 105,000 ounces All-In Sustaining Cost 1 (AISC) of between A$1,330 and A$1,490 per ounce (derived from AISC in Simberi s functional currency of between US$1,000 to US$1,120/ounce) Sustaining capex of between A$5 and A$6 million (US$4 to US$5 million) Forecast exploration expenditure in PNG (excluding the joint venture exploration) of between A$6 and A$7 million Production Summary Q3 Mar FY16 Q4 Jun FY16 Year FY16 Q1 Sep FY17 Guidance FY17 3 Production oz 25,433 26,935 110,286 25,429 95 to 105 koz Mined Grade g/t 1.35 1.18 1.26 1.05 1.3 2 Total Cash Operating Costs 1 A$/oz 1,198 1,164 1,143 1,247 n/a All-In Sustaining Cost 1 A$/oz 1,404 1,266 1,293 1,359 1,330 to 1,490 [1] Non-IFRS measure, refer Q1 September 2016 quarterly report (released 19 October 2016) [2] Ore Reserve grade at 30 June 2016, refer 30 June 2016 Ore Reserve and Mineral Resources Statement (released 23 August 2016) [3] FY17 guidance announced in Q4 June 2016 quarterly report (released 19 July 2016) 26 / PNG Mining & Petroleum Conference / 5 December 2016
Ore Reserves & Mineral Resources at 30 June 2016 Mineral Resources (Moz) Ore Reserves (Moz) 9.2 9.1 5.0 4.6 Simberi Leonora 4.0 4.0 4.2 4.5 2.1 1.9 1.9 2.1 Simberi Leonora FY 15 FY 16 FY 15 FY 16 27 / PNG Mining & Petroleum Conference / 5 December 2016 Refer ASX announcement released 23 August 2016 titled Ore Reserves and Mineral Resources Statements 30 June 2016. Mineral Resources are reported inclusive of Ore Reserves.
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 employee of St Barbara and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Mustard consents to the 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 Robert Love, 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 experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Love 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 Estimates The information in this presentation that relates to Mineral Resources or Ore Reserves is extracted from the report titled Ore Reserves and Mineral Resources Statements 30 June 2016 released to the Australian Securities Exchange (ASX) on 23 August 2016 and available to view at www.stbarbara.com.au and for which Competent Persons consents were obtained. Each Competent Person s consent remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 23 August 2016 and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX 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 ASX announcement. Competent Person Tim Richards is entitled to participate in St Barbara s long term incentive plan, details of which are included in the 2016 Directors and Financial Report released to the ASX on 23 August 2016 Full details are contained in the ASX release dated 23 August 2016 Ore Reserves and Mineral Resources Statements 30 June 2016 available at www.stbarbara.com.au. 28 / PNG Mining & Petroleum Conference / 5 December 2016
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, investors and analysts in understanding our financial results and assessing our prospects for future performance. Cash operating costs Calculated according to common mining industry practice using The Gold Institute (USA) Production Cost Standard (1999 revision). All-In Sustaining Cost All-In Sustaining Cost is based on Cash Operating Costs, and adds items relevant to sustaining production. It includes some, but not all, of the components identified in World Gold Council s Guidance Note on Non-GAAP Metrics - All-In Sustaining Costs and All-In Costs (June 2013). 29 / PNG Mining & Petroleum Conference / 5 December 2016
Investor Relations Enquiries Rowan Cole Company Secretary T: +61 3 8660 1900 Garth Campbell-Cowan Chief Financial Officer E: info@stbarbara.com.au 30 / PNG Mining & Petroleum Conference / 5 December 2016