St Barbara Limited

Thank you for standing by and welcome to the St Barbara FY21 Q4 June quarterly report and presentation. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr Chris Maitland, Head of Investor Relations. Please go ahead.

Thank you, Melanie. Good morning, everyone, and thank you for joining us today. Please note the disclaimers on the second slide of this presentation pack. On the call with me today are our Managing Director and CEO, Craig Jetson, Chief Financial Officer, Garth Campbell-Cohen, Deputy Chief Financial Officer, Lucas Welsh, Chief Operating Officer, Evan Spencer, and Executive General Manager of People, Val Madsen. On today's call, Craig will discuss our Q4 results, and Lucas will update you on our Building Brilliance Program, after which we will open up the call to questions. With that, I'll hand the call over to you, Craig.

Thank you, Chris, and good morning, everybody. So, look, welcome to St Barbara's June Quarter Report. I, as always, would like to begin by recognising the traditional owners, First Nations people of the lands on which St Barbara operates in Australia, Canada, Papua New Guinea, and pay my respects to Elders past, present and emerging. Before I move into the main body of the presentation, I'd like to sadly but openly discuss the fatality we had at Sinbury in May. One of our truck drivers was fatally injured when the truck they were driving travelled over a safety berm and eventually rolling into the open pit. All of Zimbabwe was deeply saddened by this tragic incident and we have been providing assistance to the employee's family and counselling to support for our Sinbury team. Every day, everyone at Zimbabwe is working to eliminate fatalities and life-changing injuries. This is our number one priority. An independent investigation has been completed with the report submitted to the Papua New Guinea Mineral Resource Authority and the recommendations were reviewed and accepted. Further education on fatigue management is underway with fatigue technology ordered for all our trucks and vehicles and will be progressively installed. This technology is already proven in PNG and operating in places and mining throughout PNG operations. So just moving on from that said update, we're moving to safety always. We had two other recordable injuries for the quarter. Both were of low severity. We had no recordable injuries in April and June. We were committed to achieving our zero harm goals. Turn to slide five on key achievements in quarter four. On slide five, it points out in the June quarter, we continue to drive our strategy of establishing three mines with greater than 10 years of operating life. We released the Leonora Province Plan and added approximately 1.4 million ounces of gold to our existing 5 million ounces of gold mineral resource. We have commenced further resource and development as well as extensional drilling and I'll discuss the Leonora Province plan in more detail shortly. During the quarter, we also progressed the Sinbury sulphide project through further metallurgical testing, along with the development of opportunities identified in the feasibility study. We have put a process package out to tender and expect to deliver the front-end engineering and design study by the third quarter of this financial year, after which we will be in a position to make the final investment decision. The Pugna Guinea Conservation and Environmental Protection Authority continued its review of the social and environmental impact statement. I expect we will submit the remaining documentation required in the second quarter of this year. We remain on track for the first sulphide ore production in the second quarter of 2024 financial year. Our Atlantic operations had a strong quarter with meal delivering record throughputs. Lucas Welsh, who will be stepping into the Chief Financial Officer's role at the end of August, has mostly recently been promoted as Chief Transformation Officer. We'll shortly take you through our Building Brilliance program. Lucas has been leading the program as the Chief Transformation Officer, which has been instrumental in delivering the process improvements which have helped Atlantic achieve a record throughput. From a financial perspective, we continue to strengthen our balance sheet with $100 million of cash contribution from our operations. After paying $21 million in debt, this quarter our cash on hand increased by 45% to $133 million. The COVID-19 situation in our operations at St. Barry has improved with a significant decrease in community transmissions. Simberi has continued to implement the Zimbabwe COVID-19 protocols with the support and guidance from external medical specialists and additional controls limit people movements in and out of the operations and on and off the islands. Currently a COVID-19 vaccination program is taking place on site. To date, approximately 22% of our employees and contractors have received their initial vaccination. We are targeting more than 80% and we have commenced information campaign for all employees, contractors and the community. As you would expect, St Barbara's COVID-19 management plan is working quite well and continues across all our sites. So turning to slide six, consolidated Q4 results. Goal production for the quarter remained at steady 82,000 which is a strong result given our operations at Sinbury were suspended for almost half the quarter. This week, the MRA has granted conditional approval for mining to recommence, with the mine production to ramp up over the coming weeks ahead. The Sinbury processing facility is expected to be brought back online into production by the end of the first half of this financial year. Our group oil and sustaining costs for the June quarter were approximately 2% lower at $1,623 per ounce compared to the prior quarter, largely driven and due to the increased gold production at Atlantic. And most importantly, we have continued to operate despite our COVID-19 headwinds. Our Atlantic operation recorded a 30% increase in product in production for the fourth quarter to 26,718 ounces. The mine focused on delivering high-grade ore from the pit. Mine ore was up 19% compared to the prior quarter. This was despite the challenges of pit dewatering and congestion due to smaller work areas on the lower benches of the pit as the mine approaches end of life. The increase in gold production was a primary driver of the 10% quarter-on-quarter reduction in all instastating costs to $1,011 per ounce. Turning to the Leonora at this point, gold production was up 6% to 45,157 ounces. The strategy for the quarter was to increase the tons, maximize the resource from mining more than one area at a time. As a result, the mine grade for the quarter was 1.5 grams per tonne lower at 6.5 grams per tonne. This lower grade combined with all purchase and cost and the cost of transitioning the new mining contractor resulted in a higher oil and sustaining cost for this quarter of $1,663 per ounce. On a positive note, Leonora, all mined at Gwalior was 27,000 tonnes higher at 195,000 tonnes, reflecting the continued focus on de-bottlenecking. This has enabled a strong increase in ore milled for the quarter at 291,000 tonnes. This is the highest quarter of milled tonnes in five years since the first quarter of FY16, and significantly increased depth of mine is certainly a great result. As expected, grade was down to 5.3 grams per tonne, as there were increased stockpile material and purchased oil to maximize the mill capacity. This generated additional ounces in revenue. At Sinbury, gold production was primarily impacted by the shutdown of the mining operations on the 21st of May due to the fatal accident at the mine. Just briefly, and on slide seven, I turn to slide seven now, an inspection of the Sinbury's deep sea tailings placement pipe identified that had been damaged leading to the halt of processing. An independent assessment has been conducted into the failure of the pipe by consulting environmental engineers and has concluded the likely cause of failure to be a local landslide in the vicinity of the pipe. We have commenced purchasing materials and expect the piping to be delivered to site at the end of the current quarter. Installation of the pipeline will be conducted in the second quarter with the plan to restart shortly thereafter. On slide 8, and turning to slide 8 now, guidance for FY22 has been impacted by the suspension and processing at Sinbury for the majority of the first half of the year. Noting that grade reconciliation issues that landing operations have been experienced for the past year, we have lowered grade expectation and guidance accordingly. For the Leonora operations, guidance includes 10,000 ounces of production from all purchase from the Linden Gold Alliance. Consolidated production for the year is slightly weighted to the second half due to the Sinbury restart. And with that, I will now hand the presentation over to Lucas, who will take you through our building programs. Over to you, Lucas.