Exploration Figures and Tables
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Quarterly Report /Q1 September FY20 • Acquisition of Atlantic Gold completed 1 • Q1 FY20 production of 87,569 ounces at AISC0F of A$1,421 per ounce • Production at Gwalia impacted by ventilation constraints and lower grade • Significant exploration results informing Simberi sulphide project Executive Summary Operations Health & Safety • Consolidated gold production for the calendar quarter • The Total Recordable Injury Frequency Rate (TRIFR, 12- ended 30 September 2019 (Q1 Sep FY20) was 87,569 month moving average) is stable at 5.0 at the end of Q1 ounces (Q4 June FY19: 86,197 ounces). This includes 4,362 September FY20 (5.0 at end Q4 June FY19). ounces produced by Atlantic Gold prior to St Barbara’s acquisition on 19 July 2019. Gwalia Extension Project • • Consolidated All-In Sustaining Cost1 (AISC) for calendar Q1 The Gwalia Extension Project (GEP) remains on schedule, September FY20 was A$1,421 per ounce (Q4 June FY19: with the overall project budget of $112 million unchanged 2 (details page 6). A$1,219 per ounce)1F . The average realised gold price for Q1 September FY20 was A$1,948 per ounce (Q4 June FY19: • Commissioning activities relating to the Paste Aggregate Fill A$1,848 per ounce). (PAF) project continued during the quarter. Drilling of the • Gwalia (Australia) gold production for Q1 September FY20 pilot hole for the final raise bore shaft commenced during was 38,153 ounces (Q4 June FY19: 49,966 ounces) at AISC the quarter. Significant progress was achieved on of A$1,559 per ounce (Q4 June FY19: A$1,230 per ounce). installation of infrastructure associated with the vent fans, Mined grade for Q1 September FY20 was 7.8 g/t Au (Q4 cooling plant and power station expansion. Three of the June FY19 10.0 g/t Au) with 164 kt milled (Q4 June FY19: four 5-metre diameter ventilation shafts underpinning GEP 161 kt). In addition to the impact of lower production on are complete. Completion of the final shaft, along with AISC, capital mine development in Q1 September FY20 was completion and commissioning of surface infrastructure, higher than previous quarters. will enable the shafts and surface ventilation infrastructure to be commissioned from Q2 December FY20 with • Simberi (PNG) gold production for Q1 September FY20 was operation to commence in Q3 March FY20. The investment 27,061 ounces (Q4 June FY19: 36,231 ounces) at AISC of in GEP has been fundamental to extending Gwalia’s mine A$1,603 per ounce (Q4 June FY19: A$1,203 per ounce). life to 2031. Lower production in Q1 September FY20 was due primarily to lower milled grade of 1.19 g/t Au (Q4 June FY19: 1.68 g/t Exploration Au). The Simberi mining lease (ML136) has been extended • Leonora - Gwalia Deeps Extension: The Deeps drilling to December 2028. program progressed with the completion of a new parent • Atlantic Gold (Canada) gold production for Q1 September hole, GWDD25, targeting extensions to the south at an FY20 was 22,355 ounces (Q4 June FY19: 22,948 ounces) at interval between 2,200 and 2,400 metres below surface AISC of A$970 per ounce. Attributable production to St (mbs). Analytical results for this drilling are pending. Barbara post the acquisition on 19 July 2019 was 17,993 • Simberi Island (PNG): The sulphide drilling program ounces at AISC of A$964 per ounce. beneath the Sorowar pit has been completed, with the • Integration is well underway, with the current Atlantic Gold latest drilling results confirming significant additional operating team and key executives retained. Further details sulphide and oxide mineralisation is present. An updated are provided on page 9. Reserves and Resources statement is planned for Q3 March For personal use only FY20. Studies on pit design, processing and logistics options are progressing. 1 Non IFRS measure, refer appendix. 2 AISC attributable to the Company from 19 July 2019 for Q1 September FY20 was $1,445/oz Investor Relations Mr David Cotterell Manager Investor Relations +61 3 8660 1959 ASX: SBM Media Relations Mr Tim Duncan GRA Cosway with Hintons +61 408 441 122 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 • Significant results relating to 64 additional holes are • Debt of A$112 million (C$100 million) at 30 September reported in the exploration section and ancillary Table 8, 2019. In addition St Barbara has an undrawn A$200 million including (all intercepts downhole): three year syndicated revolving debt facility. 2 o 11 m @ 8.62 g/t Au from 21 m (110SRDH002) • The Company generated an operational cash contribution3F in Q1 September FY20 of A$43 million (Q4 Jun FY19: A$58 25 m @ 3.09 g/t Au from 136 m (150SRDH045) o million). • Cochrane Hill (Canada): Assay results from Q4 June FY19 infill drilling were received during Q1 September FY20, Outlook confirming the deposit is open at depth and to the east. • As announced on 18 October 2019, on completion of the Significant intercepts are reported in the exploration regular quarterly operational reforecast at Gwalia, the section and ancillary Table 10, including (all intercepts near-term production expectations for Gwalia were downhole): revised. While nearing completion, the remaining Gwalia CH-19-344: Extension Project (GEP) construction and raiseboring program is competing for constrained ventilation with 25 m @ 2.49 g/t Au from 220 m o scheduled production and development activities. CH-19-345: • The constrained ventilation and sequential mining schedule o 22 m @ 3.05 g/t Au from 286 m means any interruption to stoping, including from equipment failure causing a delay in stope development, 2 m @ 9.53 g/t Au from 314 m o cannot be recovered until after GEP is completed and new • Fifteen Mile Stream - Seloam Brook (Canada): Preliminary working faces have been developed. assay results were received from drilling the westward • Guidance for FY20 was revised on 18 October 2019 and is extension of the proposed Hudson and Plenty pits, with summarised as follows: significant intercepts reported in the exploration section and ancillary Table 12, including (all intercepts downhole) o Forecast Gwalia gold production between 175,000 and 190,000 ounces (previously 200,000 to 210,000 ounces) SB-19-031: at an AISC of between A$1,390 and A$1,450 per ounce o 4 m @ 9.73 g/t Au from 81 m (previously A$1,230 to A$1,290 per ounce). o 2 m @ 1.71 g/t Au from 149 m Sustaining capex of between A$60 million to A$65 million (previously A$55 to A$65 million), plus growth 6 m @ 2.22 g/t Au from 174 m o capex of between A$32 million to A$38 million • The exploration section, commencing on page 11, includes (previously A$30 to A$35 million). Gwalia sustaining progress on the following projects: capex includes increased capital towards development activities to establish dual declines and increasing the Pinjin (Australia) o number of mining fronts. This capex is reflected in the o Lake Wells (Australia) AISC guidance. o Back Creek (Australia) Contemporary detailed mine planning has prioritised development over production for FY20. There is Horn Island (Australia) o ongoing work to further optimise operations at Gwalia o Beaver Dam (Canada) in FY20 as the benefits of GEP are realised in the second half of the financial year. o Moose River Corridor Projects (Canada) Forecast Simberi gold production is unchanged at o South-west Nova Scotia (Canada) o between 110,000 and 125,000 ounces at an AISC of Finance (unaudited) between A$1,285 and A$1,450 per ounce, with sustaining capex of between A$4 and A$5 million, plus • Total cash at bank and term deposits at 30 September 2019 growth capex of between A$3 to A$4 million. 1 was A$762F million (30 Jun 2019: A$890 million), after For personal use only acquisition of Atlantic Gold of $780 million, dividend o Forecast Atlantic gold production, first announced on payments of $19 million, exploration expense of $13 18 October 2019, is between 95,000 and 105,000 million, growth capex of $14 million, income tax payments ounces at an AISC of between A$900 and A$955 per of $8 million and movement in working capital of $8 million. ounce, with sustaining capex of between A$13 and 1 Financial information unaudited. Balance comprises $66 M cash, 2 Non-IFRS measure, see cash movements table later in this quarterly $10 M term deposits and excludes $2 M restricted cash. report. Corresponds to Operational Cash Flow less sustaining capital, excludes growth capital of A$14 M (Q4 Jun: $20 M). St Barbara Limited Quarterly Report / Q1 September FY20 Page 2 of 22 A$17 million. Growth capex will be advised in Q2 Consolidated Gold Production December FY20. For comparative purposes, noting that gold production o Forecast exploration expenditure has been revised to from Atlantic Gold is attributable to St Barbara from 19 July between A$31 and A$41 million (previously A$20 to 2019, the below shows full quarter production and AISC A$28 million) and includes Atlantic Gold’s exploration plus historic theoretical combined quarterly production forecast of between A$11 and A$13 million (details on from St Barbara and Atlantic Gold. page 11). Quarterly AISC (A$/oz) 1,421 Bob Vassie 1,053 1,175 Managing Director and CEO 1,073 21 October 2019 868 Quarterly briefing and audio webcast Combined Quarterly Gold Production Bob Vassie, Managing Director & CEO, will brief analysts and (koz) investors on the Q1 September FY20 Quarterly Report at 11:00 126 am Australian Eastern Daylight Time (UTC + 11 hours) on 112 108 109 Monday 21 October 2019.