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St Barbara Ltd.

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September 16, 2024 at 8:10 AM (MDT)|Broadmoor Hotel & Resort

Andrew Strelein

Managing Director and CEO

Mr Strelein is a highly experienced mining executive with extensive global experience in leadership roles across a number of mining jurisdictions including Australia, Indonesia, Africa and North America. Mr Strelein joined St Barbara as Chief Development Officer in August 2021 and was instrumental in the acquisition of Bardoc Gold and the sale of the Leonora assets to Genesis Minerals. Prior to joining St Barbara, Mr Strelein was Chief Executive Officer of the entity progressing development planning and permitting of the Nimba Iron Ore Project in West Africa. Before that Mr Strelein worked at Newmont as Group Executive Corporate Development and in a Group Executive role for the Asia Pacific region. Earlier in his career with Newmont and Normandy, Mr Strelein was accountable for joint venture interests in Boddington, KCGM, Goldfields Power and reclamation works at Kaltails.

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Thanks everyone. And again, thanks by the previous speaker. Thank you for coming so early. I'm gonna be presenting on Saint Barbara and just wanted to highlight some of the features of the, you know, what Saint Barbara now looks like compared to what people have seen before before I go off the, the cover page. Just wanted to show this is a picture of Sambi looking down from the top of the overland conveyor. So just, just a, it's a good picture to show we've already got an established operation at the bay there. So we've got a wall facility, an existing processing plant that's AC Ol Circuit. So well established. It's been in operation since 2008, but we'll talk about in the coming coming slides just in terms of where the value proposition is as we head towards the sulfides. Now, for the disclaimer and cautionary statements, please go to the website. Just wanted to start before we go on to the projects themselves. So just what the the, the the major numbers for us are. So we're sitting with a market cap around just over $200 million Australian. We have 100 and $91 million in the bank. As at the end of June, I'll come back to that. We had an equity portfolio at the end of June, which was worth around about $50 million Australian. So we, we did actually sell one of our major holdings during, during the last few weeks. So we ma we raised $25 million from that. Just before anyone gets incredibly excited by the cash balance versus market cap. Just remember, we've got 90 million, about 90 million Australian will be in a restricted account. So of the 191 we've got 100 and 1 million unrestricted. So a shareholder for distribution has changed a bit obviously, since we did the transaction and, and split the company with with the Australian assets going over to Genesis and Saint Barbara keeping the overseas assets. now much more much stronger high net worth deep value funds have have replaced the index funds. So as we distributed about half our market cap in that transaction in July 23 we, we dropped out of the gold index. So that's, that's sort of the next target for us is to, to build up on the back of the, the, the, the value institutions and the high net worths. So the asset portfolio. So the main asset that we're gonna talk about today is Simbi. So that's, that's the main focus of the company. Just wanna mention briefly though the Atlantic assets. So that was the acquisition that Saint Barbara did back in 2000 2020. So I'll, I'll talk about that. We've still got the 1.4 million ounces there in proven and probable. We've still got the processing plant there at Tuoi that's ready to be relocated up to 15 mile project. We can essentially have that project up and running in 12 months from the time we get the permit. The, the issue is that CBI is, you know, we, we're a small team. We need to focus on one of the two projects and so Syberia is gonna be our focus, but we we, we, we like the look of Atlantic of operation there in Nova Scotia. And that, that still sits there as great optionality. So with Sri as I said, the value proposition is the sulfide project. We do continue to operate the oxide project. So it is, it is high cost and some of some of the investment market focus on the high cost current operations. The issue for us is that we're really trying to keep that business running so that we've got a steady steady development timetable for the sulfides. So if you know, avoiding care and maintenance and the closure and the, the disruption to the workforce and having to recruit a workforce. the disruption to the local, the local clans, businesses. We, we prefer to if we're even though we can break even or do better than that, that's what we'll keep doing. The sulfide project we hope will come online in late 2027 calendar, 2027. So it's a sound investment in keeping the business running. So I'll talk a bit more about Simi. So firstly, I think, so for those that have heard of Simbi before, I, I and people ask, well, what's new about Simbi? I think what we've been trying to add in the last 12 months is the credibility for the project. So, it's been looked at before and it's been attempted to move forward. But really when you look back, underdone underdone for a project that was being trying to enter into the construction phase. So lack of drilling, a lot of infill drilling that was necessary that hadn't been done. The metallurgical test work was probably lacking. We had a lot of feedback on that from in investors and also Corporates that looked at the project. Even things like GEOTECH hadn't really been done. So, although we had an advanced study, the geotech wasn't properly fully understood in terms of the wall, things like wall designs. So it's been a, a relatively boring year for investors because we've got, we had a lot of, a lot of hard grind work to do infill drilling, never exciting but really important for this project. A big metallurgical drilling campaign abs just totally dedicated to generating the sample we need for doing the comprehensive test work, the geotech work and a number of other studies. So we've, we've invested that time and effort. Again, we had a healthy balance sheet. So for a developer, we're very well positioned to make sure this work gets done properly. And in this page, we've ticked off everything we said we would do back when the new management team launched in July 23. The, the headline numbers with that, we've increased the resource by 1 million ounces. So even though it was largely an infield drilling campaign, the resource increased from 4 to 5 million ounces. More importantly though we converted 1.9 million ounces from inferred up to measured indicated. And that allowed us to finish off the year. We finish off our financial year with the reserve upgrade. So we've added 800,000 ounces to the reserve to build it from 2 to 2.8. So that's set us up much much better for for looking at the project to move forward and given it the credibility in terms of the technical work that's there to support, to support the project. So we also were working on a concept study. So obviously, we had a, we had a lot of very advanced work. The previous management team had actually taken that their design through to to a full front end engineering design. But there were a number as aspects of the project that we wanted to tweak having done the metallurgical test work. Well, the first, the first phase of the metallurgical test work and with the new, new resource and reserve and in May, we were able to update our, the best knowledge that we, that we had gained into a concept study, which we announced on May 10th and I'm gonna, I'm gonna quickly go across and I encourage anybody that's looking at the project to go back to that May 10th announcement. So what we've been able to come up with is a, is a mine plan that exceeds 10 years. That's, and that's just unproven and probable. We haven't included any, any of the new fangled concept like expiration targets. We haven't even really used inferred. This is 10 years plus unproven and probable. We're going for a, a 3 ft range in the sort of mid mid +33 point million tons per annum. The concept study came up with 3.7. And at that rate we're well over 200,000 ounces as we step into the sulfides, the oil in sustaining cost drops dramatically. Obviously, the head grade co that we're, that we're running at during the oxides is more around the 1 to 1.1 g a ton with the recoveries in the, in the, the 70% with the sulfides, we move up to 2.5 g a ton average. Once we're in the sulfides with, with ST recoveries that I'll, I'll highlight later. remembering it's a, it's a brownfield site, so we already have the col project. So we're, we're looking at adding, we'll actually keep the S A mill circuit as it is. We're not gonna worry about upgrading the, the motor or the or the S A. So we need a bore mill, a floatation circuit obviously, but not, not, not too expensive. The concentrate shed and the Wharf upgrade. So it's not a, it's not a dramatic sort of you know, a Greenfield site. It's a quite a manageable expansion that we have ahead of us. We're sufficiently confident in the project and I wanna make sure that we do everything to keep the timetable tight. So we've actually committed from the balance sheet to a program of about 40 to $55 million us in, in growth capital, but pre pre the expansion decision. So that'll make sure that we've got a lot of the fiddly jobs and work done before we get into the main scope of work. And more recently we announced that the test work, the, the second phase of the test work program. we, we o operating from a higher cut off grade than our predecessors were working. So achieving a better concentrate. And so with the better grade concentrate, we're able to re-look at adding the, the rougher floatation stage. And with that, although it does it does average down the average grade of the concentrate. It, it's giving us about 5% extra recoveries than, than what we had in the May concept study, but also in the the compared to previous work. so we're getting about 90% recovery with 84% of the gold going into the concentrate and about 6% that we leach from the concentrate tail in the current market, we're looking at very good payables as well. So of that 84% that we're getting into the concentrate we're getting we're expecting above 90% in terms of the payables in the current concentrate market. So some excellent results for us and a real payback for all the hard work. we're starting to get some recognition for it now, but yeah, we just had to get through that pretty boring. 12 months of hard grind. So what does that look visually? Maybe makes it easier than, than me talking about it. So you see people say, well, what's the, you know, what have we got to look forward to when we can move on to the sulfides is obviously the dramatic jump up in, in throughput. And the A IC dr drops dramatically. And that's really,, you know, the, the overall cost of the operation, looks pretty consistent. We, we have high mining rates now, but just the sheer jump in grade from to up to 2.5 g a ton during that sulfide phase is the real kicker. I won't spend too long on this because it doesn't end up being very visible from the back. But if this is a slide that's trying to show it's not a major upgrade, we've got a lot of the existing existing plant there. So again, as I said, we've got, we had a, we had a ball mill, we're using the existing sag mill circuit. We've got the existing col circuit for leaching the tail and we add the floatation circuit in the, in the, in the middle. not gonna go through all these numbers. But again, if you refer back to the May announcement in terms of the capital costs and the, and the main, the main makeup of the, the project outcomes, I just did, did wanna highlight that the, the, the in that first year, even not a complete year. So our current like we work on a June financial year. So our first year of operation of the sulfides, even though the sulfides only kick in in November 2027 at $2000 an ounce, we'd be generating cash flow of 100 and 68 million and at 2502 176 million. So we make our market cap back in the, in the pretty much the first six months of steady state operations under the sulfide project. So the returns, the returns for all this effort are quite, are quite sensational. OK, in terms of next steps. So, we're completing the metallurgical test work. But now we've got to the point where we're just getting re refining the me metallurgical test work with various composites of the different open pits, making sure we, we've got a full, a full coverage of the full variability that we might expect. It's not, it's not highly variable, they all pretty predictable. But nonetheless, when these, these flotation circuits, we wanna make sure we've thought, thought through the full range. We, whilst we haven't changed the pro sheet dramatically, we have tweaked some of the plant layout, we've simplified the crushing circuit. So we've got some, we've now got to bring that up to backup to pref feasibility study and then feasibility study level of design this financial year, we do have our permit. So that's an important thing for us. We have a permit for producing a Sable concentrate at these three puts the the permit had some conditions. So obviously, before we present our final design, we'll have our waste dump designs, our surface water management plans and our final closure plan. So that's, that's all happening as we speak to make sure that's delivered in time for a final investment decision. And I'll come back to this in the coming slides. But we've also got whilst we were focused on the boring infill drilling during the last 12 months, we actually discovered a new war zone between two of the main deposits. So on top of the infill, we've located the new war zone and we've got drilling going back into that. In addition, we, we, we hardly did any exploration drilling last year. We were focused on the resource that and, and I'll, I'll have a slide later on that just to show that we want to get back in and prove up some of those some of those sulfide projects which haven't really had a lot of attention. So a bit about that exploration potential and where we've been operating, it's a, a classic epidermal system. It's a, it's a pretty young system, so it's behaved, it's behaving itself in terms of how you see it. The geologists call this an inverted cone geometry. I like the Martini glass. So it's a, it's for those who haven't seen an epi the deposit before it's a circular structure around a, a porphyry feeder system. We know the porphyry is not high copper, so don't get excited about copper copper porphyry potential. But it has delivered us a nice a nice set of open pits surrounding that feeder zone in the middle. So the main pits the piggy put is the biggest in our reserve portfolio. And SOA and piggy bo this year, we've got two areas where we're following up on the resource and the reserve potential. So you see the dark blue area which was our new discovery zone at Piggy Put and SOA we've got drilling going into that to prove that up and extend it. We also have some down to the bottom of the map there around sat. We've got these peripheral deposits which we discovered as oxide deposits. We don't really have a lot of drilling into the sulfide potential. So we want to prove that up sat in particular was a high grade oxide pit. So we're hoping that the overall tenor there will be, will be higher. And then we've got a bunch of exploration zones that now that we fully understand the geometry of the system. We've got a number of zones where we know there's Bret, the, the logical host rock that we can chase and also then chase the depth potential where where we had lacking drilling. One of the most remarkable things I found out taking over in July 2023 was that, although Saint Barbara has owned this asset since 2012, it had not put any diamond drilling into the sulfides project. So this has been a resource that's been inherited and, and sat there and hadn't been really extended significantly at all. Hence why some of the metallurgical test work was also underdone. There just wasn't the material to work with. So that big campaign that we've done has given us, given us a much greater clarity on the potential here and and obviously given us the much better idea of the metallurgical performance. So plenty to work with is a different, a different oblique angle and a cross section again, that destroys my Martini glass analogy because it's completely wonky. But you get, you get the, the idea, there's the stem feeding a bret your system above and that's got the main pits, soroa piggy put and piggy bow. And you can see again, this is just an oblique angle showing where we're gonna be put in the, the 9000 m of drilling in, in this 12 month period. I think the, the thing we'd like to highlight here is we do have these offset deposits at Bolo Piki Cow Samar Beu. We haven't got the drilling in to understand how, how, how those, I mean, will they come off the same epi the system? But in terms of what the full sulfides potential is there, that will be something that is delivered from the current drilling program and just wanna finish off. We've been doing a similar amount of work on at the Nova Scotia operation. So a big workload there to redesign these projects after we had permitting a lack of permitting success in 2023. So these projects are now better shown on this map. So, Tuoi was the project that you might be aware of and the history, the next big project is 15 miles. So we've got 600,000 ounces there, Beaver Dam, we've got about 220,000 ounces which can be trucked up to 15 mile. And and so the Tuoi plant is not that far away. So we'll just it's, it's fortunately for us, it's been built in a very modular fashion. So that plant can be dis relocated as it is up to 15 mile saving us on the capital cost. So that project is again ready to go. So we, we, when we're ready to get permitting, we think that's a 12 month relocation and construction period at low capital costs because we've got a large amount, the, the low costs given it's a relatively low grade, sort of really high recovery, low tripp ratio plant that we've operated before. And we understood. We understand. So, we, yeah, we, we love this asset. It's had permitting difficulties. So we're, we're basically putting that on the back burner while we advance s Beri and that's the presentation, hopefully with a couple of minutes for questions. Yes. Any questions from the floor first off? Ok. I, I'll start with the question as you mentioned, it's in very sulf fired extension. It's, it's at a, an operation, you're already, you know, at how do you see that reducing the risks versus something that's, that's totally Greenfield. Sorry, I catch, I didn't catch the end of that. Yeah, it's a project you're currently operating. It. Just an amendment. You know, how, how do you see the risk reduction versus what other things we might be hearing today about a, a fully Greenfield project? Yeah, I think if I understood the question, the, the current operations, It's, it's again, the focus is on staying in business. So, that's the, that's the main prerogative at the moment where we've got a bit of a higher sustaining capital load for this year. It drops off in the next two years as we lead into the Sulfides project. primarily because there's, you know, there's, there's been an under investments in the processing plant. So we've got things like conveyor belts on the Overland conveyor that change out, which is happening this week. So we'll, we'll see a higher sustaining capital load this year and that drops off in the next two years. So, although production is only slightly ex expected to be slightly higher in the next two years, the sustaining capital load drops off. So a ISC comes down we expect in the next two years. And that'll help us with cash flow generation at these gold prices. OK. Questions. OK. Just just one in general on operating in PNG, it's been AAA country with a few negative headlines. But h how do you see the market perceptions around that versus its history of quite a few mines operating quite stably in the region? Are, are you comfortable being there? Yeah, it's a one of the maps might be a good way to just demonstrate the difference between the mainland projects and where we are. So just so on the slide here, we, we operate over very close to LA hire. So on a good day, you can see Lahire from, from our island. So the eastern eastern Papua New Guinea Island is 909 100 kilometers away from Port Moresby. So we don't see the same troubles that people have with landowner and, and of course, the up in the mountains, they have a lot of linear infrastructure which also causes the, the difficulties. So we're on a small island, you know, sort of around 1,502,000 people. Our, our dispute resolution process involves your onion plants being placed on the, on the road. When they, when they want us to pay attention to a concern that they have rather than, than, than violence., so we, we, it operates,, we have a great operation out there. Good relationships with the landowners. It is PNG., but we don't have a lot of the issues that you see with the mainland. Yeah. Ok. I think that's the time., thank you, Andrew. Thank you.


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