17 September 2021
2021 Annual Report
The 2021 Annual Report for St Barbara Limited is attached, as distributed to shareholders today.
The Annual Report complements, and should be read in conjunction with, information contained in the Company’s corresponding
Sustainability Report and Corporate Governance Statement, both released today and are available at www.stbarbara.com.au.
For more information
Investor Relations
Media Relations
Mr Chris Maitland
Head of Investor Relations
Mr Ben Wilson
GRACosway
T +61 3 8660 1914
T +61 407 966 083
Authorised by
Board of Directors
St Barbara Limited ACN 009 165 066
Level 10, 432 St Kilda Road, Melbourne VIC 3004
Locked Bag 9, Collins Street East, Melbourne VIC 8003
T +61 3 8660 1900 F +61 3 8660 1999 stbarbara.com.au
ASX: SBM
ADR: STBMY
Annual
Report
2021
We are St Barbara
A growing gold company with a global outlook. We’re here to create value
in everything we do for our people, our communities and our shareholders.
As we strive towards our vision to be a brilliant, global mining company
that grows sustainably and creates enduring, positive impacts, we are
guided every day by our five commitments and values-led culture.
At St Barbara, doing the right thing genuinely matters to all of us.
Our commitments
Our values
Our values guide us in our
decision-making every day.
We act with honesty
and integrity
We treat people with respect
We value working together
We deliver to promise
We strive to do better
Safety Always
Empowered People, Diverse Teams
Stronger Communities
Respecting the Environment
Growing Sustainably
Contents
Our company
Letter from the Chairman
Letter from the
Managing Director and CEO
FY21 key performance
achievements
Building a culturally diverse
and inclusive St Barbara
i
ii
iv
ix
x
St Barbara Limited ABN 36 009 165 066
Atlantic Operations
xii
Directors and financial report
Leonora Operations
Simberi Operations
Exploration
Building Brilliance at St Barbara
Our sustainability framework
xiv
xvi
xviii
xix
xx
We are St Barbara
Our company
A growing gold company with a global outlook. We’re here to create value
in everything we do for our people, our communities and our shareholders.
As we strive towards our vision to be a brilliant, global mining company
that grows sustainably and creates enduring, positive impacts, we are
guided every day by our five commitments and values-led culture.
At St Barbara, doing the right thing genuinely matters to all of us.
We are an Australian based, ASX 200 company with gold mining
operations in Australia, Canada and Papua New Guinea. Our assets
include our Leonora Operations in Western Australia, our Atlantic
Operations in Nova Scotia, Canada and our Simberi Operations
in New Ireland Province, Papua New Guinea.
Our values guide us in our
decision-making every day.
We act with honesty
and integrity
We treat people with respect
We value working together
We deliver to promise
We strive to do better
Our assets
Canada
Operation
Office
Atlantic
Operations
Touquoy
mine
Simberi
Operations
Simberi
mine
Papua
New Guinea
Leonora
Operations
Gwalia
mine
Australia
Atlantic Operations
Leonora Operations
Simberi Operations
Open pit mine
Underground mine
Open pit mine
FY21 Production
101 koz
Three additional open pits
planned in Moose River Corridor
Atlantic Province Plan:
prospective tenements
FY21 Production
153 koz
Mine plan to FY31
Leonora Province Plan:
prospective tenements
FY21 Production
74 koz
Mine plan to FY23, sulphide
project well advanced a further
11 years of mine life
Prospective tenements
At 30 June 2021, St Barbara had almost
13.1 million ounces of mineral resources,
including ore reserves of 6.2 million
ounces of contained gold.
We also hold extensive landholding with granted
tenements and tenement applications in all three
countries in which we operate.
Our approach to exploration activity is coordinated
globally. All activity is conducted near to and
surrounding each of our existing operations, with
the aim of both extending life of mine and providing
future growth opportunities.
St Barbara Limited ABN 36 009 165 066
St Barbara Annual Report 2021 | i
Our commitments
Our values
Safety Always
Empowered People, Diverse Teams
Stronger Communities
Respecting the Environment
Growing Sustainably
Our company
Atlantic Operations
xii
Directors and financial report
Letter from the Chairman
Leonora Operations
Contents
Letter from the
Managing Director and CEO
FY21 key performance
achievements
Building a culturally diverse
and inclusive St Barbara
i
ii
iv
ix
x
Simberi Operations
Exploration
Building Brilliance at St Barbara
Our sustainability framework
xiv
xvi
xviii
xix
xx
Letter from the Chairman
Thank you for your continued support of
our business especially through what has
been another profoundly challenging year
for most communities around the world.
Across St Barbara, there was a
year-on-year increase in low severity
recordable injuries and an upward
movement in TRIFR to 3.9. While LTIFR
is consistent with the previous year,
a comprehensive review of our critical
risk control standards has been
instigated with a laser focus on
zero harm across the Group. I hope
to report an improvement in this
regard during FY22.
Our financial performance reflected
challenges of the year past, which
included an impairment loss on our
Atlantic Operations. Despite the
strong operational performance
of the Touquoy mine, the delays
in permitting our future satellite
operations have been a set-back.
Notwithstanding, we remain optimistic
about the potential of these projects
and our commitment to the Province
of Nova Scotia.
With full-year cash flow from operating
activities of $227 million supporting
our continued investment and growth
in the company, we also announced
a 4% increase in ore reserves to
6.2 million ounces of contained gold.
It's particularly promising to see an
additional 2.0 million ounces of
gold mineral resources added to
our Leonora Province. The 2.0 million
ounces incorporates the recent work
done in the Province to recognise the
potential of the Gwalia Open Pit and
Harbour Lights as well as the increase
this year from Gwalia Deeps.
The development of our Leonora
Province Plan, which is one of our
key strategic priorities, continues
to progress with studies underway
to expand the Leonora processing
facility. This will allow us to sustainably
build on the strengths provided by our
existing infrastructure and community
presence in the Leonora region.
I am pleased to confirm we have
maintained the payment of a fully
franked dividend; with a dividend of
six cents per share – comprising the
interim and final dividend of four and
two cents respectively.
The results from the Simberi Sulphide
Feasibility Study were announced in
April, indicating strong fundamentals
for the Sulphide Project. This is an
important milestone for the future of
the Project and our Simberi Operations,
with the mine life now set to extend for
another 11 years. The Board approved
pre-investment work of US$13 million
for the Project, with a final investment
decision scheduled for March 2022,
depending on the status of requisite
development approvals. The Board
has every confidence in this project;
it’s exciting to see our vision for
Simberi being realised.
At our Atlantic Operations, work
steadily progresses on our strong
project pipeline to unlock the value
of the Atlantic Province. The acquisition
of Moose River Resources Incorporated
(MRRI), in July 2020 saw St Barbara
own 100% of the Touquoy Mine and
surrounding exploration tenements.
Dear shareholder
While nobody could have predicted
the acute impacts of the COVID-19
pandemic, I am proud of the way
our leadership and operational
teams have responded swiftly,
decisively and tirelessly to protect
our people and business. Despite
the challenges, the past year has
been transformational for St Barbara;
we have realised opportunities
to unlock value in our business
and strengthened our foundations
for sustainable growth.
Nothing is a higher priority or
commitment for St Barbara than
the safety of our people – Safety
Always matters most. It was therefore
with deep sadness that in May this
year we reported the tragic fatality
of one of our local Papua New Guinean
employees at our Simberi Operations.
The effect of this loss was felt right
across our business. We supported
the independent investigation
conducted by the PNG Mineral
Resources Authority (MRA) and
immediately implemented an internal
review of risks, controls and our
overarching safety management
system. The preventative actions
from this review are well underway
to being fully implemented.
Our Simberi Operation has also
weathered the challenges of COVID-19,
along with our other operations and
local communities. I’m heartened by
the way in which St Barbara’s teams
and support systems have adapted
and delivered to our commitments,
with safety and health being the
absolute priority during the course
of this pandemic.
ii | St Barbara Annual Report 2021
The team will deliver this strategy
in three uplifts, focusing on Building
Brilliance in operations and brownfield
expansion projects in the near-term.
This approach is designed to meet
our enduring commitment to
sustainable growth and operations
as a responsible contributor of value
to our various stakeholders.
The strategic direction for the business
is clear, tangible and achievable.
I commend Craig and his team for
the work they have done, during an
extraordinary year, to bring this laser
focus to the direction of the business.
Finally, I’m sure you have noticed
the new look and feel to St Barbara
branding in our recent communications
and this report. This new brand
identity was developed in a holistic
and consultative manner to ensure
that it best reflects our purpose and
what we’re striving for as we step
into the future.
It is a future we step into confidently;
ready and able to build on the strong
foundations that have been laid
despite the difficult year – thank you
for your support.
Tim Netscher
Non-Executive Chairman
With the submission of the revised
Environmental Impact Study (EIS)
in June for Beaver Dam and an EIS for
Fifteen Mile Stream in early February,
these projects offer significant value
opportunities to our business and
promise to deliver longstanding
employment benefits and business
opportunities for the surrounding
communities and the broader
population of Nova Scotia.
Now in his second year as our
Managing Director and CEO, the
Board is pleased to report that
in addition to dealing with the
challenges of COVID-19 across
multiple jurisdictions, Craig Jetson
and his leadership team have done
considerable work in paving the way
for the future success of St Barbara.
This year they have overseen
an integrated company-wide
transformation program, Building
Brilliance, to create sustainable
value through improving operational
performance, including reducing
costs, to deliver A$80 to A$120 million
of annual cash contribution by FY23.
To that end, they have already made
significant progress – delivering
a cash benefit of A$41 million to
30 June 2021, exceeding the target
of A$30 million to A$40 million.
The Board and I were pleased to
endorse the leadership team’s new
business strategy for St Barbara
which defines our strategic priorities.
These are to operate safely and
sustainably; through empowered
people and diverse teams; to operate
our assets with excellence; to execute
projects by means of disciplined
project management and to deliver
deliberate, value-accretive growth.
St Barbara Annual Report 2021 | iii
Letter from the Managing Director and CEO
It has been a year of
significant change and
challenge for St Barbara.
All the while, we have
worked hard to transform
our company and unlock
the value within.
Dear shareholder
With Safety Always the commitment
we make to our people, it was with
a very heavy heart that we reported
a fatality at our Simberi Operations in
May this year. This was a tragic event
for everyone in the St Barbara family
and, most deeply, for our employee’s
family and community. I was deeply
saddened by this event and took
courage from the rapid response
of our people and the thoroughness
of the investigations that ensued.
We welcomed the lessons learnt
through the investigation conducted
by the PNG Mineral Resources
Authority, which was well executed
and insightful. This tragedy is a stark
reminder of the risks associated
with mining and reinforces the fact
that Safety Always needs to remain
central to all our decision-making
and behaviours.
Caring for our people and our safety
performance was front of mind
at each operation during the year
in review. We reported four more
recordable injuries compared to FY20,
with the majority of all recordable
injuries involving contractors. We
have been working closely with our
contractors to address this and
remain focused on improving our
contractor management processes.
To this end, we have developed
an online portal for our suppliers
to access our HSEC standards,
together with tailored training packs.
Safety has, and always will be, our
top priority, along with our culture
of care. At its very heart, safety is
about just that, which is why our CARE
safety behaviours (Control, Action,
Respect and Engage) are central
to our safety culture and core
to our leadership development.
A big part of our focus is on having
conversations that matter about
safety, particularly around our critical
risks and controls. These conversations
can make the difference between
going home safely and not going
home at all, and our people are
encouraged to have them whenever
and wherever they’re required.
St Barbara’s strategy
We’ve set in place a three-step
strategy to unlock value in our
business, against which we are
already starting to deliver with
provincial plans in place for each
jurisdiction in which we operate.
With clear direction, we’ve undertaken
a company-wide transformation –
Building Brilliance – which is already
delivering impressive results. And,
with an eye to future growth, we’ve
progressed our current brownfield
expansion projects across all our
operations. Most recently, we also
launched a bold, new brand identity
which truly represents our vision to
be a brilliant global mining company.
Transformation program:
Building Brilliance in our business
In September 2020, we launched
our company-wide transformation
program: Building Brilliance, which
is designed to unlock value in our
business, lift our performance and
also reduce costs. We set ourselves
ambitious targets which, we are
well on the way to achieving. Our
aspiration is A$150 million cash
contribution each year through
a combination of improved
productivity, reduced operating
costs and lower sustaining capital.
Building Brilliance, and the owner’s
mindset required to deliver against
our targets, has now become
a way of working for our people.
In the year ahead, Building Brilliance
will focus on the sustainability of
initiatives at each operation, and
embedding the Building Brilliance
process as “business as usual”
to ensure business improvement
initiatives continue to be developed
and implemented.
iv | St Barbara Annual Report 2021
St Barbara’s strategy
Uplift 1
Deliver Building Brilliance
in operations and extend
mine life
Reduce cost while increasing
throughput and recovery through
Building Brilliance program.
Extend mine life of Simberi
Oxides and Touquoy through
near-mine exploration and
mine plan optimisation.
Uplift 2
Execute brownfield
expansion projects
Deliver Simberi Sulphide and
Atlantic expansion projects
on-time and within budget.
Develop surrounding Leonora
province to fill mill with
St Barbara mined ore.
Uplift 3
Grow through acquisitions
and exploration
Acquire assets with a scalable
production outlook and
capture portfolio synergies.
Invest in prospective JV and
exploration opportunities that
have the potential to develop
into future operations.
<
0 to 18 months
>
<
18 months and beyond
>
near Leonora Operations and presents
exploration upside potential.
Turning to Simberi Operations
where, despite a steady start to FY21,
production was impacted by the
shutdown of mining operations
in May following the fatality. The
following month, placement of tailings
through Simberi’s deep-sea tailings
placement (DSTP) pipeline ceased
following a routine inspection
identified pipe damage. Annual gold
production was thus impacted with
73,723 ounces produced this year, with
milled grade of 1.25 g/t and an AISC
of A$2,162 per ounce. I am pleased
to report that a recovery plan for
Simberi is well underway, incorporating
corrective actions from the investigation
into the fatality, with mining since
restarted and replacement of the
DSTP pipeline underway.
In April this year, the Board signed
off US$13 million for pre-investment
work on the Sulphide Project. This
project will increase the life of mine
significantly, allowing us to continue
making a real difference to social
outcomes in the New Ireland Province,
home to our Simberi Operations.
Solid operational performance
in challenging times
We moved, and continue to move,
rapidly and effectively to protect our
people and to keep our operations
running during the COVID-19
pandemic. Looking across our three
operations, our achievements are set
against the backdrop of a global
pandemic, which has impacted
the mobility of our people, placed
pressure on our talent pool and
resulted in long lead times on
equipment and resources.
Despite these ongoing challenges,
I am pleased to report that Atlantic
Operations achieved a strong year
producing 101,243 ounces of gold
at an average milled grade of
1.15 g/t Au. A new record was set for
mill throughput with 2,918 kt processed
during the year. In the final quarter
of the year, the team achieved a
30% quarter-on-quarter increase
in gold produced. This resulted in
an all-in-sustaining cost of A$1,027
per ounce for the year.
We have a strong pipeline of Atlantic
projects, which are set to create
hundreds of new jobs for the people
of Nova Scotia and significant benefits
for the community – building on our
existing presence and commitments.
In February this year we submitted
the Environmental Impact Statement
for Fifteen Mile Stream. Our plans for
Beaver Dam are further advanced,
with the submission of the revised
Environmental Impact Study (EIS) and
second round of information requests
in June 2021. Following the completion
of several reviews, the Feasibility
Study is being refined and due to
be completed during the first quarter
of FY22. First ore is expected to be to
be delivered from Beaver Dam in the
first half of the 2024 financial year.
At our Leonora Operations we
produced 152,696 ounces of gold with
an average milled ore grade of 6.6 g/t
Au. All-in-sustaining cost was A$1,744
per ounce of gold due to lower mined
grades, ore purchase costs and the
cost of transitioning to a new mining
contractor. Of note, Building Brilliance
delivered instrumental improvements
at Gwalia with a focus on the mine
planning achieving an increase
in development fronts. This means
minimal development is required
to achieve FY22 production, which
is a significant improvement on how
we started FY21. The benefit of Building
Brilliance will be truly realised in FY22
as the full impact of the initiatives
start to take hold.
The transition to Macmahon as
the underground mining contractor
at Gwalia mine took place in the
second half of the year and is
progressing to plan. To date, we
have seen improvements in
productivity and this partnership
promises to enliven Gwalia’s future
by delivering predictable and strong
financial returns.
With an eye to our future, we’re
making good progress with our
Leonora Province Plan, developing
the surrounding area to fill the mill
with St Barbara mined ore. In early
July 2021, St Barbara acquired a 19.8%
equity position in Kin Minerals which
has 1.2 million ounces of gold resources
St Barbara Annual Report 2021 | v
Letter from the Managing Director and CEO
Making progress against
our business commitments
I am pleased to report we have
adopted the Minerals Council
of Australia’s new Towards
Sustainable Mining operational-level
performance framework (see page
xiii). As we advance our sustainability
performance, we have also
commenced progressive reporting
to the Sustainability Accounting
Standards Board Metals and Mining
disclosure guidelines.
Empowered People,
Diverse Teams
We remain at the forefront of inclusion
and diversity in the minerals industry,
leading the way with our gender
diversity initiatives. During the year,
we updated our Diversity and Inclusion
Policy to reflect our commitment
in this area, as we also establish
an Inclusion and Diversity Council
charged with setting the overall
strategy for inclusion and gender
safety across the Group.
We were enormously proud to again
receive our WGEA Employer of Choice
for Gender Equality citation – making
us the only mining company to
receive this recognition for seven
consecutive years. I am likewise proud
to continue in my role as a WGEA
Pay Equity Ambassador.
Further to this, we were also named
as one of only 10 Australian companies
to be included in the Bloomberg
Gender Equality Index (GEI), within
a total of 380 companies across
11 sectors worldwide.
We continue to make great strides
in improving the gender diversity
of our workforce. Currently at Atlantic
Operations, 21% of our workforce
is represented by women and in
Australia it’s 28%. In both countries,
we’re aiming for 30%. In PNG, we’re
currently sitting at 16% and we’ve
set ourselves a target of 18%. We are
committed to constant progress
and, in terms of diversity more
generally, our focus is on improving
our attraction and retention of
First Nations peoples in Canada
and Australia.
The ‘Diversity Matters’ case study in
this report highlights our progress and
the pride our people have in being
part of an organisation that’s been
working to create diverse teams for
many years now. While this is not new
to St Barbara, we are now taking even
bigger steps as we set in place an
enhanced approach towards building
a culturally inclusive, equity focused
St Barbara.
Stronger Communities
Our deep-rooted sense of care
extends to the communities that
host us. Over the course of the last
year, we’ve broadened the reach
of our connection to community with
our focus on community wellbeing,
youth and education, and the
psychological health of others.
During a large spike in COVID-19
community transmission at Simberi,
we focused on ensuring our support
included counselling services,
on-island assistance, and the
best medical support possible;
all designed to safeguard the
community and care for our people.
vi | St Barbara Annual Report 2021
In a demonstration of our
commitment to eliminating modern
slavery practices within our global
operations and supply chains,
we also submitted our inaugural
Modern Slavery Statement to the
Australian Government.
Across our global footprint, we are
operating on ancestral lands of First
Nations people. We acknowledge their
unique cultural heritage, beliefs and
connection to these lands, waters
and communities. We also recognise
the importance of the continued
protection and preservation of
cultural, spiritual and educational
practices. We value treating all
people with respect and aim to build
culturally-sensitive and mutually
beneficial relationships with the First
Nations peoples of all of the lands
on which we operate.
In Leonora, we continue our work
supporting Indigenous youth, while
in Nova Scotia we are openly and
actively consulting the First Nations
people. At Simberi, we are doing
all we can to help the community
through COVID-19 and the challenges
this presents across PNG. Our efforts
in each jurisdiction take into account
our knowledge that working together
takes time, respect and understanding.
I urge you to read the case studies
in this report, together with our
Sustainability Story, for a full account
of our activities.
Reflecting our respect of land and cultures
As we operate our business with excellence and care for our people and communities, we consciously respect and acknowledge
the land on which we operate today as we aspire to grow sustainably.
In FY21, we launched a new brand for St Barbara with a thoughtful colour design that reflects the regions in which we operate
and our deep connection to country.
Atlantic Operations:
Leonora Operations:
Simberi Operations:
A deep blue reflects pristine
Nova Scotia, its First Nations
people, the fisheries, rivers
and blue lakes. It honours the
heritage of the First Nations
people and encompasses our
commitment of respecting the
environment and conducting our
operations accordingly.
A red colour palette represents the
traditional lands of the Aboriginal
people and their deep connection
to their land. It epitomises the
colours of the landscape, the bright
sun overhead and the community
we are proudly a part of.
As a tropical island, the rich green
represents the tropical rainforest
of Simberi Island amidst the Tabar
Island group. It reflects generations
of Simberian people, the Mai Mais
of today and the past, clan leaders
and chiefs of the community; while
respecting and acknowledging
their culture and land.
Respecting the Environment
We’re working hard to reduce our
environmental footprint. We’ve set
ourselves the target to be carbon
neutral by 2050. Atlantic Operations
is aiming to be carbon neutral by
2025, contingent on assessments
of renewable power sources,
batteries and low-footprint expansion
projects. Leonora Operations is
using innovative solutions to reduce
emissions footprints such as absorption
chillers run on waste mine heat and
a smart mine layout that reduces
truck mileage and emissions. For the
first time we are this year reporting
our Scope 3 emissions and new data
on our waste management process.
Notwithstanding, it is the day-to-day
way we run our business sustainably
that truly matters. At Atlantic Operation,
we’ve put tested controls in place to
avoid run-off from roadways and our
Simberi team is currently replacing
the DSTP pipeline – working together
with the PNG Conservation Protection
Agency. At Leonora, it was pleasing
to see environmental initiatives
incorporated into Building Brilliance
with a rethink of waste materials
delivering environmental solutions
and cost improvements.
Growing sustainably
through our vision
Our commitment to Growing
Sustainably means we’re committed
to growing responsibly, where it
makes sense, and where we can
add the most value for our people,
our communities and our shareholders.
We’re exploring growth opportunities
across all three of our operations that
will sustain and enhance production
and continue to deliver employment
and economic benefits to the
communities in which we operate.
Our leadership team is clear on
our strategy and the future direction
for St Barbara. Our vision is to be
a brilliant global mining company
that grows sustainably and creates
enduring positive impacts. Our new
brand signals this change and growth.
We’re focused on three strategic
uplifts to help us achieve this:
delivering Building Brilliance across
our operations and extending the
mine life of Simberi Oxides and
Touquoy; executing brownfield
expansion projects at all three
operations; and continuing to grow
through acquisitions and exploration.
We have strengthened our
executive leadership team with
new appointments over the past
12 months, notably the promotion
and appointment of a new Chief
Financial Officer, together with the
appointment of a Chief Development
Officer to lead our Provincial growth
plans and a President Americas
to oversee all North American
operations and projects.
We’ve assembled the right team
with exceptional operational and
technical experience to take us
forward. Supported by the best teams
on the ground, we will continue to
build on the momentum of the last
year as we create a brilliant future
for St Barbara.
Craig Jetson
Managing Director and CEO
St Barbara Annual Report 2021 | vii
Full year gold production of
327,662 ounces
and AISC of A$1,616 per ounce
Full year cash flow of
$227 million
from operating activities
Maintained a total fully
franked dividend of
6 cents
per share for the 2021
financial year
viii | St Barbara Annual Report 2021
FY21 key performance achievements
A successful year with the following highlights:
• Our COVID-19 management safeguarded our people, business, and community.
• Full year gold production of 327,662 ounces and AISC of A$1,616 per ounce.
• A$41M of savings from Building Brilliance, exceeding target.
• Record annual mill throughput at Atlantic Operations of 2,918 kt.
• Full-year cash flow from operating activities of $227 million.
• Two million ounces of gold Mineral Resources added to Leonora.
• US$13 million pre-investment in Simberi Sulphide project.
• A total fully franked dividend of 6 cents per share for the 2021 financial year, comprising
the interim dividend and final dividend of 4 and 2 cents per share each.
Total recordable injury frequency rate
Gold production (ounces)
6
5
4
3
2
1
5.0
FY21
3.9 TRIFR
3.9
2.1
3.0
1.2
FY21
327,662
ounces
1
0
1
,
1
8
3
9
8
0
3
0
4
,
7
8
8
,
1
8
3
6
4
3
2
6
3
,
2
6
6
7
2
3
,
500,000
400,000
300,000
200,000
100,000
FY17
FY18
FY19
FY20
FY21
St Barbara Group
0
FY17
FY18
FY19
FY20
FY21
All-in sustaining cost (A$/oz)
Ore reserves and mineral resources (Moz)
1,800
1,500
1,200
900
600
300
0
6
1
6
,
1
FY21
A$1,616/oz
9
6
3
,
1
0
8
0
,
1
7
0
9
1
9
8
FY17
FY18
FY19
FY20
FY21
15
12
9
6
3
0
13.1
2.1
4.2
6.8
11.6
2.2
4.3
5.0
6.0
1.7
2.1
2.2
6.2
1.7
2.1
2.5
FY20
FY21
Ore reserves
FY20
FY21
Mineral resources
Atlantic Gold
Simberi
Leonora
Employee numbers and gender breakdown
Total
employees
1,313
Female
227
17% 83%
Male
1,086
St Barbara Annual Report 2021 | ix
Building a culturally diverse and inclusive St Barbara
We continue to make strides as an Employer of Choice for gender
equality and know that real change requires conviction, especially
from leaders. Our FY21 Diversity Matters campaign demonstrated that.
We are delivering against long-standing objectives, supported by policies and procedures
that support inclusion, flexibility, respect and safety. Our goal is to provide an equitable
workplace for all people, where cultural diversity is celebrated. We work to support those
affected by domestic violence and address this in communities in which we operate. The
mental health and wellbeing of our people and communities is forefront in daily practices
as we encourage cultural respect and inclusivity and embrace flexible work practices.
Our citations
• For the first time, included in the 2021 Bloomberg Gender-Equality Index
(GEI) as one of only ten Australian listed companies, within a total
of 380 companies across 11 sectors worldwide.
• Workplace Gender Equality Agency (WGEA) ‘Employer of choice
for gender equality’ for a seventh consecutive year. We remain
the only Australian miner to receive the citation.
• Became a signatory to the UN Women’s Empowerment Principles.
Our achievements
• Women in our Australian Operations increased to 28% towards
our goal of 30% by 2022.
• Continued to exceed the percentage of women on ASX 200 Boards
with 33% representation.
• Reduced the Australian Operations overall gender pay gap
to a new low of 7.65%.
• No gender pay gaps for like-for-like roles across the
St Barbara Group.
• 100% of our female Australian employees have returned
to work after parental leave for the last 12 years.
• Percentage of women at Simberi rose again and
now stands at 16%.
• Set new objectives for the proportion
of both women and First Nations employees
at our Atlantic Operations, and a revised
target date of June 2022 for the proportion
of Indigenous employees at Leonora Operations.
x | St Barbara Annual Report 2021
1
2
3
4
5
6
7
8
9
Objective
As at 30
June 2018
As at 30
June 2019
As at 30
June 2020
Target
By
As at 30
June 2021
Increase the proportion
of women in the Australian
Operations workforce
24%
25%
26% 30% 30 June
2022
28%
Reduce the Australian Operations
Overall Gender Pay Gap
14%
12%
12%
Increase the proportion of
Aboriginal employees in the
Australian Operations
Increase the proportion
of women in the workforce
at Simberi
Increase the proportion
of women in the workforce
in Atlantic Operations
Increase the proportion
of First Nations employees
in Atlantic Operations
Maintain nil gender pay gap
for ‘like-for-like’ roles
4%
3%
3%
8% 30 June
2022
5% 30 June
2022
8%
2%
14%
15%
15%
18% 30 June
2022
16%
_
_
_
_
(cid:676)(cid:684)(cid:664) 30% 30 June
2022
23%
(cid:678)(cid:664)
5% 30 June
2022
2%
0%
0%
0%
0% Ongoing
0%
Maintain the percentage of women
who return to work after a period
of Parental Leave (Australia)
100%
100%
100% 80% Ongoing
100%
Maintain the percentage
of women on the Board
25%
40%
33%
33% Ongoing
33%
St Barbara Annual Report 2021 | xi
Atlantic Operations
Becoming part of St Barbara in July 2019, our Atlantic Operations are located approximately
80km north east of Halifax, Nova Scotia, Canada. Open cut mining of the current open pit
at Touquoy commenced in 2017 with commercial production commencing in March 2018.
With additional planned pits nearby at Beaver Dam, Fifteen Mile Stream and Cochrane Hill,
Atlantic Operations has an estimated mine life to 2030, with strong regional exploration
potential. Atlantic Operations prides itself on operating sustainably and providing prosperity
and opportunity for families in rural Nova Scotia.
Year highlights
During FY21 St Barbara assumed full control of Atlantic
Operations, completing transition to 100% ownership
of Touquoy mine and surrounding exploration tenements
following the acquisition of Moose River Resources
Incorporated. This provides operational efficiencies
and the opportunity to unlock financial value and
pursue the asset’s full potential.
Atlantic Operations delivered to promise in FY21 with
production of 101,243 ounces of gold at an average milled
grade of 1.15 g/t Au. Mill throughput for FY21 was a new
record of 2,918 kt accompanied by an All-in-sustaining
cost of A$1,027 per ounce. The Building Brilliance program
delivered significant productivity benefits, as demonstrated
by mill performance in Q4 FY21 when mill throughput was
up 8% on Q3 FY21 performance. The fourth quarter achieved
a 30% quarter-on-quarter increase in gold produced.
FY21 highlights
Safety performance: TRIFR
5.7
Gold production
101 koz
All-in sustaining cost
A$1,027/oz
Workforce composition
333
employees
20% 80%
Female
Male
xii | St Barbara Annual Report 2021
Safety Always and Respecting
the Environment
During the year in review St Barbara’s
Safety Always program and CARE
culture was introduced, with strong
uptake across Atlantic Operations.
Notwithstanding, there was a
year-on-year increase in the total
recordable injury frequency 1 rate
(TRIFR) from 4.4 to 5.7; this was
accompanied by improved reporting,
visible leadership, enhanced safety
awareness and no lost time injuries.
The Atlantic exploration team reported
zero recordable injuries. Furthermore,
working within St Barbara’s COVID-19
management plan, there were
no significant safety, health or
operational impacts from COVID-19.
Environmental performance was
consistently managed to plan. Prior
to St Barbara’s acquisition of Atlantic
Mining Nova Scotia (AMNS), there had
been environmental breaches that
were self-reported at the time. Since
the acquisition took place in July 2019
and St Barbara assumed ownership,
one further infringement occurred
at the same location which was
immediately reported and corrected.
These incidents relate to significant
rainfall events, which caused water
containing silty road materials to run
off secondary access driveways and
overwhelm the existing stormwater
management system.
Atlantic Operations has implemented
a constructed solution to ensure
best-practice stormwater
management, which now ensures
full compliance with environmental
regulations and no further run-off.
New reporting processes have also
been developed to ensure even closer
contact with regulators during these
rare rainfall events. Management is
working proactively with federal and
provincial regulators, with a goal to
ensure agreed measures exceed the
expectations of both regulators and
the community.
The tailings management facility
at Touquoy Mine, together with other
related environmental requirements,
continue to be managed to plan.
Public consultation has commenced
on the proposal to store future tailings
in the former Touquoy open-cut mine
pit in FY22.
Building Brilliance
The Building Brilliance transformation
program has been very successful
at Atlantic Operations, particularly
with regards to the mill. Increases
in mill throughput rates have
been realised from gravity circuit
enhancements, increasing power
draw on the ball mill and enhanced
operator management of the plant.
Most recently, these improvements
yielded a 13% improvement in
average throughput rates in Q4 FY21.
By adopting a new approach
towards maintenance, shifting from
a scheduled/routine to a condition
monitoring based approach, together
with improvements to reduce wear
to the ball mill feed chute, mill
availability has increased from
90% to 97%. This is complemented
by an improvement in recovery
from 92% to 94%.
Unlocking value:
the Atlantic Province Plan
Beyond the productive Touquoy mine,
Atlantic Operations has an exciting
project pipeline with promising growth
opportunities for both St Barbara and
the Nova Scotia community. Gaining
the permit for Beaver Dam is the
first step in the Company’s Atlantic
Province Plan, which also includes
Cochrane Hill and Fifteen Mile Stream.
Each project will result in hundreds
of construction roles, more than 700
employment opportunities across the
three projects, and a strong revenue
stream for the region.
The revised Environmental Impact
Study (EIS) for Beaver Dam was
submitted in June 2021. The Feasibility
Study is being refined with a view
to completion during Q1 Sep FY22.
The EIS for Fifteen Mile Stream was
submitted in February 2021, with
permitting support and land
acquisition activities continuing.
Meanwhile, baseline monitoring
for permitting is continuing
at Cochrane Hill.
Stronger Communities
These project processes are supported
by proactive community relations
and government engagement. Atlantic
Operations is committed to developing
resources in a sustainable way that
creates shared value. This includes
a focus on relationship building with
First Nations people and all local
communities – both close to the
projects and spanning beyond this
to ensure benefits and value creation
for all. St Barbara’s history of project
design and implementation also
shows a commitment to incorporating
environmental protection and
management as a priority, as
demonstrated at the Touquoy mine.
Case study
Adopting the ‘Towards Sustainable Mining’ framework
St Barbara has been an active member of the Minerals Council of Australia (MCA) for more than 14 years. In February
2020, recognising the community’s evolving expectations of the Australian mining industry’s environmental, social and
governance (ESG) performance, the MCA Board agreed to adopt the Canadian Towards Sustainable Mining (TSM) ESG
performance system.
Like other MCA members, St Barbara is adopting TSM to demonstrate our commitment to ESG performance at a facility
level, with full application by 2025. We have commenced planning to implement the system at each of our operations.
TSM was established by the Mining Association of Canada and is in place in eight countries. MCA’s adoption of the
system builds on existing member commitments in Enduring Value, the MCA’s Australian minerals sustainable
development framework. Enduring Value’s ten principles and commitments align to those of the International Council
on Mining & Metals, as well as other key sustainability guidance, such as the UN Global Compact, of which we are a member.
TSM’s set of tools and indicators reflect good practice in environmental and social performance. They help drive overall
improvement via a consistent approach to assessing, demonstrating, and communicating site-level performance
in a transparent and accountable way. This builds community confidence and trust.
1 Per million hours worked
St Barbara Annual Report 2021 | xiii
Leonora Operations
The Gwalia underground mine is located outside Leonora, 235 kilometres from
Kalgoorlie, Western Australia. The cornerstone of Leonora Operations, Gwalia is the
deepest underground trucking mine in Australia and has been operating for over
a century. The mine was originally established in 1896 by Herbert Hoover, who later
became the 31st President of the United States. The Leonora Operations includes
the Gwalia 1.4 Mtpa processing plant and underground mine, as well as nearby
development opportunities which form part of the Leonora Province Plan.
The year’s highlights
In FY21, there was a focus on a changeover of contractor
at Gwalia and prioritisation of development to ensure
a solid footing for ongoing production. Gwalia produced
152,696 ounces of gold in FY21 with an average milled ore
grade of 6.6 g/t Au. The fourth quarter was the strongest
with 45,157 ounces of gold produced, ore mined up 16% and
281 kt of ore milled – the highest quarter of mill tonnes since
Q1 FY16. Throughout the year work continued on opening
up new mining areas – such as the Intermediates.
A focus on material movement at Gwalia saw the
introduction of many initiatives which have increased
truck availability and utilisation. Importantly, establishing
WiFi underground has expanded the use of tele-remote
operations for the trucking fleet and drilling activities.
FY21 highlights
Safety performance: TRIFR
6.4
Gold production
153koz
All-in sustaining cost
A$1,744/oz
Workforce composition
164
employees plus
282 contractors
20% 80%
Female
Male
xiv | St Barbara Annual Report 2021
Safety Always and Respecting
the Environment
Safety performance again improved,
year-on-year, with TRIFR trending
downwards by 17%. This was in part
a reflection of ongoing improvements
in Leonora’s contractor management
and safety leadership. While there
were no significant health and safety
impacts from COVID-19, workforce
mobility and availability became
increasingly more difficult with state
border closures and international
arrival restrictions.
The focus on environmental
management was constant, with
ongoing remediation of legacy
tailings and augmentation works on
the current tailings storage facilities.
The paste aggregate fill plant
was further optimised to allow for
permanent storage of all waste rock.
Building Brilliance
The Building Brilliance transformation
program commenced in September
2020 and delivered instrumental
improvements at Gwalia. In particular,
the focus on the mine planning
process increased the development
fronts from 12 at the start of FY21 to
24 in Q4 FY21. Development fronts are
expected to increase to 28 by the
end of FY22. Importantly, improved
development has positioned Gwalia
so that minimal development is
required to achieve FY22 production.
Other examples of Building Brilliance
at Leonora include an initiative
to refine the separation process
of waste steel (rock bolts, mesh, etc.)
from the main ore stockpiles to
increase the amount of ore reclaimed
and to sell the steel as scrap. A further
initiative focused on the number
of pours required to backfill a stope
after it has been bogged out, with
extensive research and testing
seeing a reduction in the number
of pours required. This delivered
an improvement in the total curing
time of the paste by up to 48 hours
per stope.
Unlocking value:
the Leonora Province Plan
In June St Barbara released the
Leonora Province Plan, adding
approximately 1.4 million ounces of
gold and a further 0.6 million ounces
of gold from Gwalia Deeps (before
depletion) in August, to the existing
5.0 million ounces of gold. The three-
stage strategy of growing sustainable
production at a lower cost profile
to deliver superior returns to
shareholders remains on track.
Resource development and
extensional drilling has commenced,
as has a combined Pre-Feasibility
Study for Tower Hill and Harbour Lights
complexes. The additional resource
inventory supports a Mill Expansion
Study, which is scheduled for
completion in Q4 Jun FY22.
The Gwalia Intermediates was
incorporated in the Life of Mine plan
and will be included in the Ore
Reserves update.
Third-party ore source opportunities
for both toll treatment and ore
purchase continue to be explored
and the Company is working closely
with a number of parties.
Stronger Communities
Restrictions due to COVID-19 saw
a change in the delivery of Leonora’s
diverse community support and
benefit program, with efforts to stay
in touch with community groups in
new ways. Once initial restrictions
lifted, there was a focus on COVID-19
impact relief – where needed –
supporting local events and addressing
local disadvantage. In particular
Leonora is striving to support
opportunity for Indigenous youth.
These important investments in the
strong, longstanding relationship
with the local community of Leonora
reinforce Leonora Operations’
position as a consistent, reliable
gold producer and partner in the
West Australian goldfields.
Case study
Supporting education opportunities for Indigenous youth
Leonora Operations’ sponsorship of the Leonora Shooting Stars program
(girls netball, education and skills development) and Kalgoorlie Clontarf
Academy programs (boys football, education and skills development)
helps Indigenous youth from local communities continue their education
and achieve their goals.
Our support of Shooting Stars has helped increase Indigenous girls’
school attendance rates – by 24% above the average school
attendance in 2018, by 19% in 2019, and by 11% in 2020 – despite
some impact from COVID-19.
But the benefits have moved beyond the original aim of increasing
school attendance to fostering relationships that give us a deeper
understanding of the local community.
Through our partnership with Shooting Stars, we became aware of three
Indigenous sisters from Leonora who needed support to accept partial
scholarship positions at St Hilda’s Anglican School in Perth. Using our
own flight service to Leonora, we have been able to help the girls travel
home over their years of attendance at St Hilda’s, while providing items
essential for them to participate fully in school life. This will ensure they
can take advantage of their scholarship opportunities, while still retaining
their all-important connection with their family, culture, and community.
St Barbara Annual Report 2021 | xv
Simberi Operations
Simberi is an open cut mining operation situated on the northern most island of the
Tabar Island group, in New Ireland province. Operations commenced in 2008, with
the upcoming sulphide project set to extend Simberi’s life. Almost 96% of the workforce
are from Simberi Island, the nearby Tabar Islands, and other parts of PNG, meaning
sustainable economic opportunities for local families, businesses and suppliers.
The year’s highlights
Despite an exceptionally challenging year, including managing
the persistent threat of COVID-19, Simberi Operations continued
to strive towards the development of its sulphide expansion
and processing capability.
In April 2021, the Board approved pre-investment work
of US$13 million, with a final investment decision targeted
for March 2022. Key changes from the 2020 Pre-Feasibility
Study include an increase in nameplate capacity, with
an option to expand to 3.7 Mtpa supported by an improved
All-in Sustaining Cost of ~3%. The pre-investment work will
enable a ramp-up in mining, ongoing drilling to further increase
ore body knowledge and studies to de-risk the project.
After a tragic, fatal accident at the mine in May, mining was
suspended to allow for thorough and fulsome investigations.
In the fourth quarter, a routine inspection of the deep-sea
tailings placement (DSTP) pipe identified pipe damage and
placement of tailings was ceased. No environmental harm
or pluming was reported.
The temporary break in operations provided opportunity to
complete maintenance, implement multiple processing plant
upgrades and undertake work required to transition to the
sulphide expansion project.
Annual gold production was impacted by these events with
73,723 ounces produced in FY21, with average milled grade
of 1.25 g/t. Moving into FY22, mining operations have resumed
and the DSTP pipeline is being replaced.
xvi | St Barbara Annual Report 2021
FY21 highlights
Safety performance: TRIFR
2.7
Gold production
74 koz
All-in sustaining cost
A$2,162 /oz
Workforce composition
employees
767
<5% expats
16% 84%
Female
Male
Safety Always and Respecting
the Environment
The focus of Simberi’s health and
safety program was keeping our
people and the community safe from
the threat of COVID-19. Against the
backdrop of escalating COVID-19
cases in PNG during the latter half
of the year, Simberi’s strict protocols
and operational adaptations
were essential.
COVID-19 protocols were successful
in the early identification of cases
at Simberi, with on-site isolation,
quarantine procedures, contact
tracing and regular testing for
employees and the community.
Notwithstanding, two Papua New
Guinean employees contracted
COVID-19 and, with underlying health
conditions, succumbed to the virus.
Reflecting the extraordinary year,
TRIFR rose to 2.7 from 0.7.
Respecting COVID-19 restrictions,
Simberi’s experienced environment
team continued detailed monitoring
of the environment. Working together
with the community, mangrove forest
and coral reef restoration programs
were progressed to further enhance
sustainable development.
Building Brilliance
Stronger Communities
Simberi Operations embraced
Building Brilliance from the outset
of the transformation. Initiatives
encompassed mining fleet
productivity, mill recovery and spend
control. Productivity of the mining fleet
improved with enhanced availability
due to workforce capability uplift,
review of maintenance and spares
strategy with critical spares ordered
and sourcing of additional truck
capacity (contractor and second-
hand market).
Mill recovery improvements came
from a review of planning processes
to better delineate and identify
sulphide transitional material, with
improved mine to mill reconciliation.
Importantly, negotiation of key
contracts achieved immediate savings.
While operations were suspended
in Q4, many Building Brilliance
initiatives progressed to ensure
the benefits can be realised as
operations restart. Initiatives focussed
on equipment availability and
productivity, mill recoveries and cost
reduction, and preparation for the
sulphide expansion. The project’s
pre-investment phase is advancing,
as the regulator considers the
Social and Environmental Impact
Statement then granting the mining
permit. Anticipating approval in Q3
FY22, first sulphide ore production
would be in Q2 FY24.
The Simberi Operations are integrated
into the community with local
employment and long-term support
and involvement in sustainable
development projects. Simberi Mine
Services, St Barbara’s community
business and governance organisation,
is a valuable business partner and
vehicle for implementing community
enterprise projects such as cocoa
farming and other agriculture exports.
An important part of managing
COVID-19 at Simberi has been
to work with local authorities
to ensure controls are in place to
protect the surrounding community
and safeguard the continuity
of essential services and supplies.
Reflecting this, community initiatives
continued in a COVID-safe manner
with investment and support
aimed largely at local pandemic
management support, development
of local infrastructure and sustainable
business. The completion of the
sulphide project awareness program
in all the villages on Simberi and the
two adjacent islands was a significant
achievement, with tremendous
participation and support from
the local people.
Case study
Sweet success with Tabar’s first chocolate bars
We strive to help our communities thrive, grow and prosper. Under Simberi
Mine Services, a community business coordination and governance company,
we’ve been working with Tabar locals for several years to help
them establish their own commercial ventures.
These include mariculture (seafood), inland fisheries, market gardens,
a poultry farm, a pizzeria, a bakery, and a thriving cocoa farming business.
St Barbara reintroduced cocoa farming upon purchasing Simberi mine
in 2012. Planting began in 2017 and 50 hectares now grow on Simberi
and nearby Big Tabar Island.
In 2020 we worked with about 120 family farmers to help them produce their
first-ever chocolate bars, thereby supporting the community cocoa enterprise.
Tabar Islands Chocolate is now made from 75% cocoa sourced entirely
from the local enterprise. It is produced in partnership with Paradise Foods
in Port Moresby, who will sell the chocolate.
St Barbara’s community relations team provides technical and agricultural
advice through all stages of the delicate process of cocoa planting
and production.
Our vision is that one day cocoa shipments will be made every couple of weeks.
This will help build a sustainable future for Tabar locals, economically
empowering them for a life beyond mining.
St Barbara Annual Report 2021 | xvii
Exploration
Exploration at St Barbara is coordinated globally, with activities conducted near to and
surrounding each operation. The exploration strategy is focused on extending the life
of each operation and providing future growth options for St Barbara. This is fundamental
to the Group’s respective provincial plans and paving the way for each operation to have
greater than ten years of operating life.
FY21 highlights
Safety performance: TRIFR
0.0
Production
1,500
(Diamond, RC and Aircore)
holes drilled for 110,000 metres
completed testing 52 targets
Location
Exploration teams based at
Gwalia mine, Touquoy mine,
Simberi mine and Perth for
regional Australian projects
Workforce composition
63
employees
30% 70%
Female
Male
xviii | St Barbara Annual Report 2021
Safety Always and Respecting
the Environment
In FY21, extensive drilling and
exploration field work was conducted
across 12 projects within three
countries. Even with the high level
of exploration activity, the global
exploration group achieved its target
of zero recordable injuries across all
sites. This reflects the strong culture
of zero harm and our approach
to Safety Always centred on CARE.
All activities are conducted
within St Barbara’s environmental
management system with a
proactive focus on conducting
exploration to both comply
with and respect regulatory
and community expectations.
Exploration activities include active
consultation with community
and other stakeholders consistent
with St Barbara’s commitment to
ensuring local communities thrive,
grow and prosper.
Adding future value
Exploration in FY22 will consistently
focus on the potential for additional
near-mine ore sources around the
three existing operations including
Gwalia mine and the surrounding
mine lease, Touquoy mine and the
Moose River Corridor and Simberi
mine and mining lease ML136.
Regional exploration will focus on the
discovery of new deposits with the
potential to support a standalone
operation including: Australia – Lake
Wells, Leonora Regional, Back Creek
and Drummartin; Nova Scotia – NE
Regional and SW Regional areas;
and PNG – Tabar Island Group.
At the close of FY21, St Barbara had
investments in Australian exploration
companies including Catalyst
Metals Limited, Kin Mining NL and
Peel Mining Limited.
The year’s highlights
St Barbara’s annual targeting process
consistently ranks targets from the
global exploration portfolio, thereby
providing a clear annual exploration
plan. During FY21, our exploration
program had periodic postponement
due to COVID-19 restrictions but
otherwise met its objectives for the
year. Exploration continued across
all three jurisdictions to support the
Company’s provincial plans with
significant progress achieved both
at and around all three operations.
In Western Australia, the exploration
portfolio focused on identifying
additional targets to support Leonora
Operations in its quest for greater
than ten years of operating life.
To this end, Gwalia near-mine drilling
program continued testing shallow
and intermediate portions of the
Gwalia mine sequence. In the Jasper
area, 20 kilometres north of Gwalia,
RC drilling commenced during
the final quarter of FY21 testing five
targets: Falklands Trend, Hawaii,
Jasper Hill, Trevor Bore and Ascension.
In Nova Scotia, diamond and RC
drilling tested the 11 highest ranked
targets within the three camps,
namely Touquoy, Moose River Corridor
and Northeast Regional. Most drilling
occurred between west of Touquoy
mine and Cochrane Hill. In Southwest
Nova Scotia, shallow reverse
circulation drilling tested 11 of 15
targets identified during the large
airborne geophysical survey
completed in FY20.
On Simberi Island, drill testing
for oxide resources immediately
adjacent to current open cuts
progressed within tenement ML136.
Six targets were drill tested including
Pigibo North, Pigibo East/Cell Tower,
Pigicow, Sorowar NW, Monun South
and Andora. Drilling results will be
included in a new resource estimate
for Simberi planned for Q1 FY22.
Drilling was conducted at all five
Australian regional projects including
Pinjin, Lake Wells JV (Western
Australia), Back Creek (NSW),
Horn Island JV (Queensland), and
Drummartin JV (Victoria). St Barbara
withdrew from the Horn Island JV in
May 2021 after diamond drill testing
the two highest ranked targets.
Building Brilliance at St Barbara
Case study
Safety Always Matters, everyday
Our ‘Safety Always Matters’ campaign across St Barbara
encouraged our people to speak up about safety as our
first commitment, and to share their stories of why Safety
Always matters.
our CARE safety culture program, we empower people
to do that. Having the right conversations at the right
moment can make all the difference and ensures
we have the strongest controls in place.
Our approach to safety centres on our CARE behaviours,
which was launched in FY21. CARE stands for: the controls
we use to identify risk and reduce exposure to harm; the
actions we must take to plan our work, manage change
and report progress; the respect we show each other and
the care we take in our inspections and investigations
and; how we engage our people with visual leadership
and via regular safety meetings and forums.
Everyone at St Barbara must work safely and feel
comfortable to speak up about safety. Through
campaigns such as Safety Always Matters and
The focused campaign included a series of videos
explaining our 16 Critical Risk Control Standards, leading
team conversations around these controls and hosting
safety awareness and training events.
Andrew Taylor, GM Atlantic Operations reiterated the
priority in his submission on why safety matters to him:
“Nothing is so important that we need to do it right now
in an unsafe manner; we can always take the time to
stop and plan to do it safely. Without safety we will not
have production; production always follows safety.”
Case study
Diversity Matters to us
Being an Australian Workplace Gender Equality Agency Employer of choice
and leading the mining industry on diversity initiatives is part of us delivering
on our Empowered people, Diverse teams commitment.
Each year we continue to challenge ourselves to keep driving change
as an industry leader in this space, because the work we’re doing is making
a difference for our people, our business and the industry.
In February we updated our Diversity and Inclusion Policy to better reflect our
broader commitment in this area, as we work towards achieving our near-term
goals and targets.
Diversity matters to us every day of the year, but we took March as an
opportunity to reflect and really celebrate our commitment by sharing our
stories and showcasing them.
We received such a strong response when we asked our people for ‘Why
Diversity Matters to Me’ stories as part of our inaugural ‘Diversity Matters month’.
Through these stories, we celebrated our commitment to being diverse and, in
so doing, encouraged inclusive thinking on all forms of diversity and welcomed
our people’s perspectives on why diversity and inclusion matters to them.
Hearing our people’s lived experiences helps to breathe life into the work we
do and inspires all of us to keep delivering against our diversity and inclusion
goals as we live our culture of care, acceptance and inclusion.
St Barbara Annual Report 2021 | xix
In FY21, we developed a sustainability framework to capture our commitment
to sustainable practices and our approach.
Our sustainability framework
The framework supports St Barbara’s purpose, vision and business strategy which collectively focus
on value creation for our stakeholders.
Environmental, social and corporate governance are central to our framework. We measure and
report on our environmental, social, and economic performance, we govern our business via approved
charters, policies and standards, and our code of conduct ensures we do the right thing – always.
Our purpose
We’re here to create value in everything we do, for our people, our communities and our shareholders.
Our vision
To be a brilliant, global mining company that grows sustainably and creates enduring positive impacts.
Our values
Our values guide us in our decision-making every day.
We act with honesty and integrity
We treat people with respect
We value working together
We deliver to promise
We strive to do better
Our code of conduct
Sets out our purpose and vision, outlines how we work
together, and sets expectations for our behaviour.
It explains the importance of our five values and
commitments as we operate our business and care
for and interact with each other, our suppliers,
communities and third parties.
O u r values
c o d e of conduct
r
u
O
Alignment & performance
We optimise our alignment and
performance to our governance
settings, industry standards,
and internal commitments,
targets and goals. We regularly
report our performance
to our stakeholders.
A
l
i
g
n
m
e
n
t
&
p
e
r
f
o
r
m
a
n
ce
e
c
n
a
n
r
e
v
s
e
i
c
oli
s
l
o
r
t
n
o
h arters & p
S t a n d ards & c
S tr o n g go
C
Strong governance
A cascading set of charters,
policies, standards, and
controls ensures appropriate
governance. Endorsed by
the Board, these lay out our
Group-wide requirements
and expectations and explain
what we must do in practice.
This approach is supported
at an operational level with
local procedures specific
to risks and our business
in those areas.
Our commitments
Our approach to sustainability is guided by our five Group-wide commitments
Safety
Always
Empowered People
Diverse Teams
Stronger
Communities
Respecting the
Environment
Growing
Sustainably
xx | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Directors and
Financial Report
30 June 2021
St Barbara Annual Report 2021 | 1
Page 1 of 91
St Barbara Directors and Financial Report / 30 June 2021
Contents
Directors’ Report
Directors
Principal activities
Overview of group results
Overview of operating results
Analysis of Leonora Operations
Analysis of Simberi Operations
Analysis of Atlantic Operations
Discussion and analysis of the consolidated income
statement
Discussion and analysis of the consolidated cash flow
statement
Discussion and analysis of the consolidated balance
sheet
Business strategy and future prospects
Material business risks
Risk management
Regulatory environment
Information on Directors
Meetings of Directors
Directors’ interests
Remuneration Report (Audited)
Indemnification and insurance of officers
Proceedings on behalf of the company
Environmental management
Non-audit services
Auditor independence
Events occurring after the end of the financial year
Rounding of amounts
Financial Report
2
2
2
3
4
6
7
8
9
10
10
11
12
15
15
16
20
20
21
43
43
43
43
43
45
45
46
Directors’ Report
Directors
The Directors present their report on the “St Barbara Group”,
consisting of St Barbara Limited and the entities it controlled at
the end of, or during, the financial year ended 30 June 2021.
The following persons were Directors of St Barbara Limited at
any time during the year and up to the date of this report:
(cid:120) T C Netscher
Non-Executive Chairman
(cid:120) C A Jetson
Managing Director & CEO
(cid:120) S G Dean
Non-Executive Director
(cid:120) K J Gleeson
Non-Executive Director
(cid:120) S E Loader
Non-Executive Director
(cid:120) D E J Moroney
Non-Executive Director
The qualifications, experience and special responsibilities of the
Directors are presented on page 16.
Principal activities
During the year the principal activities of the Group were mining
and the sale of gold, mineral exploration and development.
There were no significant changes in the nature of activities of
the Group during the year
2 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Overview of group results
The consolidated results for the year are summarised as
follows:
EBITDA(3)(6)
EBIT(2)(6)
(Loss)/profit before tax(4)
Statutory (loss)/profit (1) after tax
2021
$’000
(63,001)
(250,871)
(257,764)
(176,596)
2020
$’000
338,762
173,396
162,447
128,230
Total net significant items after tax
(257,224)
19,758
EBITDA (6) (excluding significant
items)
EBIT (6) (excluding significant items)
Profit before tax (excluding
significant items)
299,719
338,869
111,849
104,956
173,503
162,554
Underlying net profit after tax(5)(6)
80,628
108,472
Details of significant items included in the statutory (loss)/profit
for the year are reported in the table below. Descriptions of
each item are provided in Note 3 to the Financial Report.
Atlantic Gold Corporation acquisition
costs
Amortisation of derivative financial
liability
Gold hedge restructure
2021
$’000
-
-
-
2020
$’000
(7,538)
16,583
11,810
Call option fair value movements
17,271
(20,962)
Building Brilliance transformation
Impairment loss on assets
Capitalised exploration write off
Significant items before tax
Income tax
Corporate income tax change
Significant items after tax
(22,695)
(349,296)
(8,000)
(362,720)
105,496
-
(257,224)
-
-
-
(107)
20
19,845
19,758
(1) Statutory (loss)/profit is net (loss)/profit after tax attributable to owners of the parent.
(2) EBIT is earnings before interest revenue, finance costs and income tax expense.
(3) EBITDA is EBIT before depreciation and amortisation.
(4) (Loss)/profit before tax is earnings before income tax expense.
(5) Underlying net profit after income tax is net profit after income tax (“statutory profit”)
excluding significant items as described in Note 3 to the consolidated financial statements.
(6) EBIT, EBITDA and underlying net profit after tax are non-IFRS financial measures, which
have not been subject to review or audit by the Group’s external auditors. These measures
are presented to enable understanding of the underlying performance of the Group by users.
The Group’s underlying net profit after tax for the 2021 financial
year was materially lower than the prior year due to reduced
production from Leonora and Simberi Operations, lower gold
sales
from Atlantic Gold and higher depreciation and
amortisation associated with Atlantic Gold. The key results for
the year were:
(cid:120) Statutory net loss after tax of $176,596,000 (2020: profit of
$128,230,000) after recognising an after tax impairment
write off in relation to the Atlantic Gold cash-generating unit
of $248,000,000, and the write off of capitalised exploration
associated with Atlantic Gold tenements totalling $5,680,000
after tax;
(cid:120) Acquisition on 4th September 2020 of Moose River
Resources Incorporated (MRRI) to consolidate 100 percent
ownership of the Touquoy Mine and surrounding tenements;
(cid:120) Production for the Group totalled 327,662 ounces (2020:
381,887 ounces);
(cid:120) EBITDA loss of $63,001,000 (2020: $338,762,000 profit)
reflecting the significant impact of the impairment write off
and lower result across all three operations, particularly in
the second half of the financial year at Simberi and Atlantic
Gold;
(cid:120) Cash contribution from operations of $208,094,000 (2020:
$273,190,000) after sustaining and growth capital totalling
$139,683,000 (2020: $133,025,000); and
(cid:120) Total dividends paid in the year of $56,356,000 (2020:
$55,815,000).
Underlying net profit after tax, representing net profit excluding
significant items, was $80,628,000 for the year (2020:
$108,472,000). Net significant items in the 2021 financial year
included the impairment and exploration write offs at Atlantic
Gold, costs associated with
the Building Brilliance
transformation program and unrealised fair value gain related
to gold call options. Net significant items totalling $257,224,000
resulted in the statutory net loss after tax of $176,596,000
(2020: items totalling a net $19,758,000 were deducted from
statutory net profit after tax).
Cash on hand was $133,370,000 at 30 June 2021 (2020:
$405,541,000). The significant reduction in cash in the year
was associated with the acquisition of MRRI and repayment of
the $200 million Australian tranche of the syndicated facility.
interest-bearing
liabilities at 30 June 2021 were
Total
$109,252,000
included
$25,036,000 of leases associated with ‘right-of-use’ assets
(2020: $27,577,000).
(2020: $331,766,000), which
The key shareholder returns for the year are presented in the
table below.
Basic earnings per share
(cents per share)
Return on equity
Change in closing share price
2021
(25.03)
(14%)
(46%)
2020
18.33
10%
7%
Underlying shareholder returns for the year are presented in
the table below.
Underlying basic earnings per
share(1)(cents per share)
Underlying return on equity(1)
2021
11.43
6%
2020
15.51
8%
(1) Underlying basic earnings per share and return on equity are non-IFRS financial
measures, which have not been subject to review or audit by the Group’s external auditors.
These measures are presented to enable understanding of the underlying performance of
the Group by users.
St Barbara Annual Report 2021 | 3
St Barbara Directors and Financial Report / 30 June 2021
Overview of operating results
The table below provides a summary of the profit before tax from St Barbara Group operations.
$’000
Revenue
Leonora
Simberi
Atlantic
Group
2021
2020
2021
2020
2021
2020
2021
2020
329,893
355,712
204,754
238,859
205,600
233,155
740,247
827,726
Mine operating costs
(160,269)
(164,515)
(144,039)
(151,291)
(67,529)
(69,014)
(371,837)
(384,820)
Gross profit
Royalties
EBITDA
169,624
191,197
(16,632)
(16,896)
152,992
174,301
60,715
(5,025)
55,690
87,568
(5,952)
138,071
164,141
368,410
442,906
(4,107)
(4,326)
(25,764)
(27,174)
81,616
133,964
159,815
342,646
415,732
Depreciation and amortisation
(71,951)
(65,767)
(16,470)
(21,398)
(96,759)
(75,511)
(185,180)
(162,676)
Profit from operations(1)
81,041
108,534
39,220
60,218
37,205
84,304
157,466
253,056
(1) Excludes impairment and other write offs, corporate costs, exploration expenses, interest and tax and is non-IFRS financial information, which has not been subject to review or audit by the
Group’s external auditors.
The table below provides a summary of the cash contribution from St Barbara Group cash generating units.
$’000
2021
2020
2021
2020
2021
2020
2021
2020
Leonora
Simberi
Atlantic
Group
Operating cash contribution
158,596
169,938
(63,683)
(52,559)
94,913
117,379
(32,499)
(40,584)
60,715
(9,214)
51,501
(5,129)
83,409
128,466
152,868
347,777
406,215
(5,194)
(17,657)
(15,327)
(90,554)
(73,080)
78,215
110,809
137,541
257,223
333,135
(4,147)
(11,501)
(15,214)
(49,129)
(59,945)
Capital - sustaining
Cash Contribution (1)
Growth capital (2)
Cash contribution after growth
capital
62,414
76,795
46,372
74,068
99,308
122,327
208,094
273,190
(1) Cash contribution is non-IFRS financial information, which has not been subject to review or audit by the Group’s external auditors. This measure is provided to enable an understanding of the
cash generating performance of the operations. This amount excludes corporate royalties paid, taxation and growth capital.
(2) Growth capital at Leonora includes mining equipment purchased from the previous underground mining contractor and expenditure on projects associated with additional cooling and ventilation
and the Tailings Storage Facility, expenditure on the sulphides project at Simberi and capitalised near mine drilling and studies expenditure at Atlantic Gold.
During the 2021 financial year the Group’s operations did not
achieve the planned results, particularly at Leonora and
Simberi.
Safety of people working across the Group is of paramount
importance, and the focus is to maintain a low total recordable
injury frequency rate (TRIFR) calculated as a rolling 12-month
average.
On 21 May 2021, a truck driver at Simberi was fatally injured
when the truck travelled over a safety berm and fell
approximately 40 metres into the open pit. All of St Barbara was
deeply saddened by the tragic incident. Assistance has been
provided to the employee’s family, together with counselling
support for the Simberi team. An independent investigation was
completed, and the report was submitted to the Mineral
Resource Authority (MRA), who also conducted an inquiry. The
recommended
site
improvements
both
investigations.
implementing
preventative
currently
actions
team
from
and
is
Total Recordable Injury Frequency Rate (TRIFR) safety
performance was 3.9 as at 30 June 2021 (2020: 3.0). The
corresponding Lost Time Injury Frequency Rate on 30 June
2021 was 0.59 (2020: 0.38).
The Group continues to work in an urgent and focused way on
preventing injuries through training programs and improved
supervision of employees and contractors. Investigating and
learning from incidents to prevent reoccurrence is a key
consideration in developing training and supervision programs.
Safety focus in the year has been on the development of
communities of practices to improve the Critical Control Risk
4 | St Barbara Annual Report 2021
Standards and
Company’s Safety Always leadership program.
the ongoing development work
for
the
Total production for the Group in the 2021 financial year was
327,662 ounces of gold (2020: 381,887 ounces), and gold
sales amounted to 332,786 ounces (2020: 381,105 ounces) at
an average gold price of $2,215 per ounce (2020: $2,166 per
ounce). The lower production was attributable mainly to
Leonora and Simberi. Production for the year at Leonora was
significantly impacted by the September quarter performance.
Mined volumes in the first quarter of the financial year were
substantially
to a planned prioritisation of
development during the start of the financial year, together with
the impact of a seismic event causing a fall of ground, resulting
in closure of the decline and rehabilitation of a 30-metre lateral
section. At Simberi production in the second half of the
financial year was significantly impacted by cessation of mining
due to the fatality and processing as a result of damage to the
deep-sea tailings placement (DSTP) pipeline identified after an
inspection.
lower due
Consolidated All-In Sustaining Cost (AISC) for the Group was
$1,616 per ounce in 2021 (2020: $1,369 per ounce), reflecting
the impact of materially lower production and the shutdown of
operations at Simberi.
from
Total net cash contribution
the operations was
$208,094,000 (2020: $273,190,000). The cash contribution
from the operations was lower than the prior year due to the
reduced production and higher sustaining capital at Leonora
and Simberi. The increase to sustaining capital at Leonora was
mainly due to higher capital mine development expenditure and
St Barbara Directors and Financial Report / 30 June 2021
mine-infrastructure. Growth capital during the year was
concentrated on a number of capital improvement projects
within the Gwalia underground mine and the Tailings Storage
Facility, on studies related to the Simberi sulphide project and
additional drilling and studies to further advance the Atlantic
Gold growth projects.
Building Brilliance transformation project
Since its launch in September 2020, the Building Brilliance
transformation program has delivered a cash benefit of
A$41,000,000 to 30 June 2021 compared with the target for the
year of A$30,000,000 to A$40,000,000, with many of the
production and cost initiatives realising their potential.
During the 2022 financial year, Building Brilliance will focus on
the sustainability of
initiatives at each operation, and
embedding the Building Brilliance process as a “business as
to ensure business
usual” mindset
improvement
to be developed and
implemented. The focus of Building Brilliance in the 2021
financial year was on operational productivity and cost
efficiency with the program extended to corporate activities in
2022.
initiatives continue
in daily activities
Impact of COVID-19
As restrictions were put in place at the Group’s various
the world, measures have been
operations around
implemented in line with relevant local government advice,
including screening site workers for COVID-19 prior to
attending site, cancelling all non-essential and international
travel, working from home where practicable, enforcing self-
isolation policies when appropriate, and encouraging good
hygiene practices and physical distancing across all
workplaces.
The impact of COVID-19 on St Barbara’s Australian &
Canadian operations, workforce and local community health
has been minimal following adherence to the comprehensive
program of preventative actions. As a result, there have not
been any material disruptions to operations or to the supply of
goods and services during the year.
The COVID-19 situation in Papua New Guinea did deteriorate
during the March 2021 quarter, with a significant increase in
community transmissions, with a number of employees and
community members
for COVID-19.
Employees were isolated in the onsite quarantine camp with
to protect other employees and
containment measures
continue operations. While medical care and support has
ensured the recovery of the majority of cases, it is with
sympathy that two employees with pre-existing conditions
passed away whilst they had a positive COVID-19 diagnosis.
testing positive
in place
to minimise disruptions
All of St Barbara’s operations have business continuity plans
and contingencies
to
operations in the event of a significant number of operational
employees and/or contractors contracting the virus. These
plans have enabled the operations to continue producing in line
with the production schedule despite the challenges posed by
the COVID-19 pandemic.
St Barbara Annual Report 2021 | 5
St Barbara Directors and Financial Report / 30 June 2021
Analysis of Leonora Operations
from
revenue
Total sales
the Leonora Operations of
$329,893,000 (2020: $355,712,000) was generated from gold
sales of 150,797 ounces (2020: 171,840 ounces) in the year at
an average achieved gold price of $2,185 per ounce (2020:
$2,068 per ounce). The reduction in gold ounces sold was
attributable to lower gold production.
A summary of production performance for the year ended
30 June 2021 is provided in the table below.
Details of 2021 production performance
Underground ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost (1) (A$/oz.)
All-In Sustaining Cost (AISC)
(2) (A$/oz.)
Leonora Operations
2021
2020
605
7.6
749
6.6
97
152,696
150,797
1,185
1,744
697
7.7
771
7.1
97
171,156
171,840
1,071
1,485
(1) Cash operating costs are mine operating costs including government royalties, and after
by-product credits. This is a non-IFRS financial measure that has not been subject to review
or audit by the Group’s external auditors. It is presented to provide meaningful information to
assist management, investors and analysts in understanding the results of the operations.
Cash operating costs are calculated according to common mining industry practice using The
Gold Institute (USA) Production Cost Standard (1999 revision).
(2) All-In Sustaining Cost (AISC) is a non-IFRS financial measure that has not been subject to
review or audit by the Group’s external auditors. AISC is based on cash operating costs and
adds items relevant to sustaining production. It includes some, but not all, of the components
identified in the World Gold Council’s Guidance Note on Non-GAAP Metrics – All-In Sustaining
Costs and All-In Costs (June 2013), which is a non-IFRS financial measure.
Leonora produced 152,696 ounces of gold in 2021 (2020:
171,156 ounces), which included 3,531 ounces recovered from
ore purchased from Linden Gold Alliance in the June 2021
quarter. The lower gold production in the year was attributable
to lower mined tonnes mainly in the first quarter of the year and
lower grade.
the year
Ore tonnes mined from the Gwalia underground mine reduced
substantially to 605,178 tonnes (2020: 697,432 tonnes), mainly
due to the impact of a seismic event in the first quarter of the
financial year causing a fall of ground, resulting in closure of
the decline and rehabilitation of a 30-metre lateral section.
to
During
debottlenecking the Gwalia underground mine. The Building
Brilliance program delivered improvements at Leonora, in
particular the mine planning process resulting in an increase in
development fronts from twelve at the start of the financial year
to twenty-four in the June 2021 quarter. The number of
development fronts are expected to increase further in the next
financial year.
there was considerable attention
The following figure shows total tonnes moved, including ore,
development waste and raise bore waste over the past
eighteen months.
6 | St Barbara Annual Report 2021
Leonora total material moved (kt)
292
17
44
231
193
6
102
85
241
84
157
241
73
168
266
71
195
FY20
Q4 Jun
FY21
Q1 Sep
FY21
Q2 Dec
FY21
Q3 Mar
FY21
Q4 Jun
Ore mined
Raisebore waste
Development waste
Column1
Ore mined grade was only marginally lower at 7.6 grams per
tonne (2020: 7.7 grams per tonne). The Leonora mill continued
to perform consistently, with the average recovery at 97%
(2020: 97%). The lower processed grade of 6.6 grams per
tonne (2020: 7.1 grams per tonne) was due to processing lower
grade stockpile material and purchased ore.
Leonora gold production
(koz)
265
268
220
171
153
2017
2018
2019
2020
2021
Leonora unit cash operating cost (1) for the year was $1,185 per
ounce (2020: $1,071 per ounce). The higher unit operating cost
in the 2021 financial year was due mainly to the lower gold
production and mined grades, cost of purchased ore and costs
related to the transition to the new underground mining contract
in the June 2021 quarter. The unit All-In Sustaining Cost
(AISC)(2) for Leonora was $1,744 per ounce in 2021 (2020:
$1,485 per ounce), with the higher unit cost attributable to the
increased cash operating cost and higher sustaining capital
expenditure. Total cash operating costs at Gwalia were
$180,945,000 (2020: $183,308,000).
Leonora generated net cash flows in 2021 of $62,414,000
(2020: $76,795,000), after sustaining and growth capital. The
lower cash contribution from Leonora was due to reduced
production and higher sustaining capital. Sustaining capital in
2021 increased to $63,683,000 (2020: $52,559,000), mainly
due to higher capital mine development of $54,682,000 (2020:
$47,573,000) and mine infrastructure of $8,550,000 (2020:
$3,516,000). Growth capital in 2021 was a total of $32,499,000
(2020: $40,584,000), consisting mainly of capital projects
within the underground mine and the Tailings Storage Facility
(TSF) as well as mining equipment with a value of $16,275,000
which was acquired from the previous mining contractor to
facilitate
the new mining
contractor. In the prior year growth capital included the
completion of the Gwalia Extension Project expenditure of
$31,751,000.
to Macmahon,
transition
the
St Barbara Directors and Financial Report / 30 June 2021
Analysis of Simberi Operations
Production for 2021 at Simberi Operations was severely
impacted by the shutdown of mining operations on 21 May
2021 due a fatal accident at the mine, and then cessation of the
placement of tailings through Simberi’s deep-sea tailings
placement (DSTP) pipeline after an inspection identified pipe
damage.
Total sales revenue from Simberi in 2021 was $204,754,000
(2020: $238,859,000), generated
from gold sales of
82,013,000 ounces (2020: 102,189 ounces) at an average
achieved gold price of A$2,482 per ounce (2020: A$2,323 per
ounce).
A recovery plan is underway at Simberi, incorporating
corrective actions from the mining fatality and replacement of
the DSTP pipeline. The processing facility is expected to restart
towards the end of calendar year 2021 on the commissioning
of the new DSTP pipeline.
Gold production in 2021 of 73,723 ounces (2020: 104,068
ounces) was well down on the prior year due to the shutdown
of mining operations in May 2021, lower mining volumes
caused partly by poor truck availability and low mill recovery
from processing transitional ore.
A summary of production performance at Simberi for the year
ended 30 June 2021 is provided in the table below.
Details of 2021 production performance
Open pit ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost(1) (A$/oz.)
All-In Sustaining Cost (AISC)(2) (A$/oz.)
Simberi Operations
2021
2,390
1.35
2,758
1.25
67
2020
2,963
1.06
3,314
1.17
83
73,723
104,068
82,013
102,189
1,912
2,162
1,482
1,631
(1) Cash operating costs are mine operating costs including government
royalties, and after by-product credits. This is a non-IFRS financial measure that
has not been subject to review or audit by the Group’s external auditors. It is
presented to provide meaningful information to assist management, investors
and analysts in understanding the results of the operations. Cash operating costs
are calculated according to common mining industry practice using The Gold
Institute (USA) Production Cost Standard (1999 revision).
(2) All-In Sustaining Cost (AISC) is a non-IFRS financial measure that has not
been subject to review or audit by the Group’s external auditors. AISC is based
on cash operating costs and adds items relevant to sustaining production. It
includes some, but not all, of the components identified in the World Gold
Council’s Guidance Note on Non-GAAP Metrics – All-In Sustaining Costs and All-
In Costs (June 2013), which is a non-IFRS financial measure.
Ore mined in 2021 totalled 2,390,000 tonnes (2020: 2,963,000
tonnes), a decrease of 19% on the prior year. Waste material
moved in 2021 was 6,410,000 tonnes (2020: 8,638,000
tonnes). Movement was impacted by the shutdown of mining in
May 2021.
Simberi annual total material moved
(kt)
14,335
13,610
12,345
11,601
11,599
2017
2018
2019
2020
2021
Ore milled during the year totalled 2,758,000 tonnes (2020:
3,314,000 tonnes), with the shutdown of operations impacting
the last quarter of the financial year. The recovery performance
of the Simberi mill for the year was an average of 67% (2020:
83%), with the decrease directly attributable to processing
transitional ore. Work is continuing into understanding the
expected recovery of the various types or ore at Simberi to
better optimise the mine and mill feed schedule.
Simberi Operations gold production
(koz)
135
142
116
104
74
2017
2018
2019
2020
2021
Simberi unit cash operating cost for the year was $1,912 per
ounce (2020: $1,482 per ounce). The unit All-In Sustaining
Cost (AISC) for Simberi for the year was $2,162 per ounce
(2020: $1,631 per ounce), which reflected the impact of lower
production and the cost of suspending operations in May 2021.
Total cash operating costs at Simberi during 2021 were lower
than the prior year at $140,958,000 (2020: $154,229,000) due
to the impact of lower mining activity and mill throughput.
In 2021 Simberi generated positive net cash flows of
$46,372,000 (2020: $74,068,000), after sustaining and growth
capital expenditure. Sustaining capital expenditure of
$9,214,000 (2020: $5,194,000) included expenditure to refresh
fleet. Growth capital of $5,129,000 (2020:
the mining
$4,147,000) related to studies and additional drilling to support
the sulphides project.
St Barbara Annual Report 2021 | 7
St Barbara Directors and Financial Report / 30 June 2021
Analysis of Atlantic Operations
Total gold sales revenue from Atlantic Operations in 2021 was
$205,600,000 (2020 from acquisition date: $233,155,000),
generated from gold sales of 99,976 ounces (2020: 107,076
ounces) at an average achieved gold price of A$2,062 per
ounce (2020: A$2,020 per ounce). During the year 12,000
ounces of gold sales were delivered to the gold call options that
matured, with revenue determined at the call option strike price
of C$2,050 per ounce.
Total material moved in the year was 8,433,000 tonnes (2020:
7,609,000 tonnes), which included total ore mined of 3,710,000
tonnes (2020: 4,388,000 tonnes) at an average grade of 0.88
grams per tonne (2020: 0.92 grams per tonne).
Atlantic Operatons
quarterly total material moved (kt)
A summary of production performance at Atlantic Operations
for the year ended 30 June 2021 is provided in the table below.
7,609
2,213
1,942
2,027
2,251
FY20
FY21
Q1 Sep
FY21
Q2 Dec
FY21
Q3 Mar
FY21
Q4 Jun
Ore milled was 2,918,000 tonnes in the year (2020: 2,457,000
tonnes) at a grade of 1.15 grams per tonne (2020: 1.38 grams
per tonne) and recovery of 94% (2020: 94%).
Atlantic Gold quarterly
production
(koz)
109
27
27
21
27
FY20
FY21
Q1 Sep
FY21
Q2 Dec
FY21
Q3 Mar
FY21
Q4 Jun
Atlantic Gold unit cash operating cost for the year was $761 per
ounce (2020: $711 per ounce), with the increase mainly due to
lower production. The unit AISC was $1,027 per ounce for the
year (2020: $927 per ounce), which reflected the impact of
lower production and increased sustaining capital. Total cash
operating costs
the year were $77,045,000 (2020:
$72,736,000).
for
In the year, Atlantic Gold generated net cash flows of
$99,308,000 (2020: $122,327,000), after sustaining capital of
$17,657,000
(2020: $15,327,000) and growth capital
expenditure of $11,501,000 (2020: $15,214,000). Increased
sustaining capital was mainly related to work on the Tailings
Management Facility and to refresh the mining fleet. Growth
capital was related to studies associated with the development
projects at Beaver Dam, Fifteen Mile Stream and Cochrane Hill.
Details of 2021 production performance
Open pit ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost(1) (A$/oz.)
Atlantic Operations
2021
3,710
0.88
2,918
1.15
94
2020
4,388
0.92
2,457
1.38
94
101,243
102,301
99,976
107,076
761
711
1,027
All-In Sustaining Cost (AISC)(2) (A$/oz.)
(1) Cash operating costs are mine operating costs including government
royalties, and after by-product credits. This is a non-IFRS financial measure that
has not been subject to review or audit by the Group’s external auditors. It is
presented to provide meaningful information to assist management, investors
and analysts in understanding the results of the operations. Cash operating costs
are calculated according to common mining industry practice using The Gold
Institute (USA) Production Cost Standard (1999 revision).
927
(2) AISC is a non-IFRS financial measure that has not been subject to review or
audit by the Group’s external auditors. It is presented to provide a meaningful
measure by which to assess the total sustaining cash cost of operation. It is
calculated in accordance with the World Gold Council’s Guidance Note on Non-
GAAP Metrics – All-In Sustaining Costs and All-In Costs (June 2013).
The Touquoy mine has integrated well into the St Barbara
portfolio and has performed strongly since the acquisition of
Atlantic Gold in July 2019. The Building Brilliance program at
Atlantic Operations has delivered material productivity benefits,
particularly in the mill, with throughput up 13% on the prior year.
Mill availability in the June 2021 quarter also achieved a record
of 97%.
Atlantic Gold production for the year was 101,243 ounces
(2020: 102,301 ounces). The result for the year was impacted
by lower processed grade. Mining in the second half of the year
was impacted by congestion due to smaller work areas on the
lower benches of the pit.
8 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Discussion and analysis of the consolidated
income statement
Revenue
Total revenue decreased from $827,726,000 in 2020 to
$740,247,000 in 2021 mainly due to lower production at
Leonora and Simberi. The average realised gold price for the
year was A$2,215 per ounce (2020: A$2,166 per ounce).
Mine operating costs
Mine operating costs in 2021 were $371,837,000 compared
with $384,820,000 in the prior year. Total operating costs were
lower in the year due mainly to the impact of reduced
production at Leonora and Simberi.
Other revenue and income
Interest revenue was $1,103,000 in 2021 (2020: $2,306,000),
earned on cash held during the year. The lower interest
revenue was due to a reduction in cash during the year.
Other income was $1,113,000 for the year (2020: $56,000)
comprising mainly royalty income.
Exploration
Total exploration expenditure during the 2021 year amounted
to $34,189,000 (2020: $45,738,000), with an amount of
$7,593,000 (2020: $22,142,000) capitalised. Capitalised
exploration related to exploration in the Moose River Corridor
at Atlantic Gold and at Simberi. Exploration expenditure
expensed in the income statement in the year was $34,596,000
including the write off of capitalised
(2020: $23,596,000),
exploration amounting to $8,000,000.
Corporate costs
for
the year of $26,621,000
(2020:
Corporate costs
$27,156,000) comprised mainly expenses relating to the
corporate office, technical support to the operations and
compliance costs.
Royalties
Royalty expenses for the year were $25,764,000 (2020:
$27,174,000). Royalties paid in Western Australia are 2.5% of
gold revenues, plus a corporate royalty of 1.5% of gold
revenues. Royalties paid in Papua New Guinea are 2.5% of
gold revenues earned from the Simberi mine. Royalties paid in
Canada (Nova Scotia) are 1% of gold revenues due to the
Province, plus a 1% royalty on gold revenues to third parties.
The lower royalties expense in the year was due to reduced
gold revenue.
mineral rights acquired (2020: $61,028,000), and $212,000
relating to ‘right-of-use’ assets (2020: $756,000).
The higher charge at Leonora was associated with increased
plant and equipment from the Extension Project, while the
increase in mineral rights amortisation at Atlantic Gold was due
to the acquisition of MRRI.
Share based payments
Share based payments of $1,765,000 (2020: $2,472,000)
relate to the amortisation of employee benefits under the
performance rights plan (refer to Note 19).
Other expenses
Other expenditure of $22,695,000 (2020: $4,735,000)
comprised mainly the cost of the Building Brilliance program in
2021, whereas in the prior year this expenditure was
associated with business development activities and studies.
Impairment of assets
Impairment of mineral rights in relation to the Atlantic Gold
cash-generating unit (CGU) was recognised as at 30 June
2021 amounting to a charge of $349,296,000 (2020: Nil). The
non-cash impairment charge was taken as the carrying value
of the CGU exceeded its recoverable amount.
Finance costs
in
the year were $7,996,000 (2020:
Finance costs
$13,255,000). Finance costs comprised interest on
the
syndicated facility of $4,658,000 (2020: $5,971,000), interest
paid and payable on finance leases of $907,000 (2020:
$3,295,000) including ‘right-of-use’ assets lease expense and
borrowing costs relating to banking facilities and guarantee
fees of $2,431,000 (2020: $2,036,000).
Net foreign exchange loss
A net foreign exchange gain of $5,316,000 was recognised for
the year (2020: net loss of $2,377,000). The foreign exchange
gain related to movements in exchange rates associated with
US dollar and Canadian dollar bank accounts and
intercompany balances.
Gold instrument fair value adjustments
A net movement in the fair value of gold call options amounted
to a gain of $22,897,000 (2019: loss of $9,152,000). The call
options are associated with the Atlantic Gold operations and
are marked to market at each reporting date. The net gain
reported comprised a realised component of $5,626,000 (2020:
(2020:
and unrealised amount of $17,271,000
$Nil)
$9,152,000).
Depreciation and amortisation
Income tax
for
to
Depreciation and amortisation of fixed assets, capitalised mine
development and mineral rights amounted to $187,870,000
the year. Depreciation and
(2020: $165,366,000)
amortisation attributable
the Gwalia Operations was
$71,951,000
(2020: $65,767,000); higher depreciation
included $8,389,000 relating to the depreciation of ‘right-of-use’
assets (2020: $7,357,000). The expense at Simberi was
$16,470,000 (2020: $21,398,000),
including $2,800,000
relating to ‘right-of-use’ assets (2020: $2,591,000). Atlantic
Gold expensed an amount of $96,759,000
(2020:
$75,511,000), including $75,636,000 relating to amortisation of
An income tax credit of $81,168,000 was recognised for the
year (2020: income tax expense of $34,217,000), which
comprised an income tax credit of $184,000 in relation to
Australia (2020: expense of $17,975,000), an income tax
expense of $11,088,000 for the PNG operations (2020:
$18,703,000) and an income tax credit of $92,072,000 (2020:
$2,461,000 tax credit) for the Canadian operations. The income
tax credit for the Canadian operations was due to the
substantial impairment write off in the income statement.
.
St Barbara Annual Report 2021 | 9
St Barbara Directors and Financial Report / 30 June 2021
Discussion and analysis of the consolidated
cash flow statement
Operating activities
Cash flows from operating activities for the year were
$227,098,000 (2020: $279,533,000), reflecting the impact of
lower revenue from operations. Cash flows from Leonora and
Simberi were lower in 2021 as a result of reduced production,
while Atlantic Gold reported lower gold sales in the year.
Receipts from customers in the year were $737,195,000 (2020:
$831,788,000), reflecting the impact of lower gold sales.
Payments to suppliers and employees were $454,455,000
(2020: $477,135,000), with the lower expenditure due mainly
to reduced production at Leonora and Simberi.
Payments for exploration expensed in the year amounted to
$26,596,000 (2020: $23,596,000).
in
Net interest received was $1,103,000 (2020: $8,244,000 paid).
Interest paid
(2020:
$10,550,000), which was lower than the prior year due to
repayment of the Australian tranche of the syndicated facility
early in the year.
totalled $5,565,000
the year
tax
payments
Income
(2020:
$41,244,000). Income tax payments in the year included PAYG
instalments of $15,537,000 and an amount of $6,615,000
relating to the prior financial year tax provision.
$22,152,000
totalled
Investing activities
Net cash flows used in investing activities amounted to
$199,265,000 (2020: $896,885,000) for the year. Investing
activities in the year included mine development expenditure of
$58,414,000 (2020: $85,881,000) and $67,425,000 (2020:
Investing
$26,331,000) on property, plant and equipment.
activities also included the purchase of MRRI for an amount of
$62,176,000 (2020: included purchase of Atlantic Gold).
Higher expenditure on property, plant and equipment was due
mainly to higher sustaining capital at Leonora and Simberi.
Exploration expenditure capitalised during the year totalled
$7,593,000 (2020: $22,142,000).
Investing capital expenditure was in the following major areas:
(cid:120) Underground mine development and
Gwalia: $54,683,000 (2020: $47,573,000)
infrastructure at
(cid:120) Purchase of property, plant and equipment at Leonora of
$25,275,000 (2020: $4,986,000), Simberi of $9,214,000
(2020: $5,158,000) and Atlantic Gold of $17,657,000 (2020:
$15,327,000).
(cid:120) Leonora growth capital of $32,499,000 (2020: $40,584,000),
which included $16,275,000 for the purchase of mining
equipment to support transition to the new mining contractor.
(cid:120) Simberi growth: $5,129,000 (2020: $4,147,000).
(cid:120) Atlantic Gold growth expenditure: $11,501,000 (2020:
$15,214,000).
Financing activities
Net cash flows related to financing activities was a net outflow
of $293,784,000 (2020: net inflow of $147,370,000). Financing
activities in 2021 included $219,973,000 (2020: inflow of
10 | St Barbara Annual Report 2021
$207,014,000) of repayments of the syndicated
facility,
dividend payments totalling $45,357,000 (2020: $37,510,000)
and the loan to Linden Alliance of $15,750,000. Repayments
under ‘right-of-use’ asset leases amounted to $12,704,000
(2020: $13,899,000).
Discussion and analysis of the consolidated
balance sheet
Net assets and total equity
St Barbara’s net assets decreased during the year by
$235,310,000 to $1,113,667,000 due to the impairment of
mineral rights and write off of capitalised exploration.
Current assets decreased
(2020:
$512,205,000) due mainly to the reduction in cash related to
the repayment of the Australian tranche of the syndicated
facility and purchase of MRRI.
to $263,286,000
Non-current assets decreased during
the year by
$290,333,000 to $1,372,475,000 (2020: $1,662,808,000) due
to the impairment of mineral rights.
Current trade and other payables increased to $69,583,000 at
30 June 2021 (2020: $66,970,000) due to the timing of
payments at year end. Current interest-bearing liabilities of
$93,534,000 (2020: $12,199,000) includes the $84,216,000
syndicated debt facility that was reclassified from non-current
to current due to the impact of the impairment on financial
covenants, for which the syndicate has provided a waiver (refer
to Note 21 for further information). A current provision for tax
payable of $14,538,000 was recognised at 30 June 2021
(2020: $10,893,000).
reduced
liabilities
Non-current
to $313,589,000 (2020:
$709,938,000) due to the repayments of the syndicated facility
and the reclassification of the interest-bearing liability to
current. The deferred tax balance was a net liability of
$219,419,000 (2020: net liability of $289,914,000). The non-
current rehabilitation provision increased to $61,701,000
(2020: $53,162,000) due to a revision to the Simberi and
Atlantic Gold provisions during the year. The total derivative
financial liabilities of $14,088,000 (2020: $37,448,000) was
lower than the prior year as a result of call option contracts
maturing in the year, together with a change in the mark-to-
market value of call options still to mature.
Debt management and liquidity
The available cash balance at 30 June 2021 was $133,370,000
(2020: $405,541,000), with no deposits held to maturity (2020:
$Nil).
Total interest-bearing liabilities were $109,252,000 at 30 June
2021 (2020: $331,766,000), comprising $84,216,000 (2020:
$304,189,000) drawn down under the syndicated facility and
$25,036,000 (2020: $27,577,000) of lease liabilities relating to
‘right-of-use’ assets.
The AUD/USD exchange rate as at 30 June 2021 was 0.7501
(30 June 2020: 0.6904). The AUD/CAD exchange rate as at
30 June 2021 was 0.9296 (30 June 2020: 0.9351).
St Barbara Directors and Financial Report / 30 June 2021
Business strategy and future prospects
St Barbara’s strategic focus is on developing or acquiring gold
deposits in order to diversify the Group’s production base to
create a portfolio of sustainable long life operations at costs in
the bottom third of AISC. In relation to growth by acquisition or
development, St Barbara’s focus is to actively add, manage
and progress assets in all phases of the ‘growth pipeline’ from
exploration through feasibility and construction to production.
The Group aligns its decisions and activities to this strategy by
focusing on key value drivers: relative total shareholder returns,
increase in gold ore reserves, return on capital employed and
exploration success.
In relation to current operations, St Barbara’s focus is on
maximising production at the lowest possible cost from Gwalia
and the Leonora region, Simberi and Atlantic Gold, and to
extend mine life through drilling and capital development where
the Group’s investment criteria are met.
During the 2021 financial year the Group achieved a number of
strategic milestones:
Strategic drivers for the business include:
(cid:120) Building Brilliance transformation program: The focus of the
Building Brilliance program is on operational productivity and
cost efficiency to maximise the value of current operations.
The program was launch in December 2020 with a target of
delivering cash benefits totalling A$30 to A$40 million in the
2021 financial year. Cash benefits of A$41 million were
realised in the year and the focus now is on the sustainability
of initiatives to ensure business improvement continues to be
developed and implemented.
(cid:120) Optimising cash flow and reducing the cost base: The Group
is focused on optimising cash flow from operations through
maximising production and managing costs at its existing
and
operations,
incorporating new technologies across St Barbara. The
Group will continue to identify opportunities to enhance
productivity and improve operating performance in a volatile
gold market.
capabilities
enhancing
operating
(cid:120) Improving productivity: The Group is focused on maintaining
consistent operations at Leonora, Simberi and Atlantic Gold.
St Barbara continues to invest to improve infrastructure,
mining fleets and capability to ensure consistent and reliable
production at its operations and to maintain operating costs
at levels that protect profit margins and ensure an adequate
return on capital invested.
(cid:120) Growing the ore reserve base through the development of
existing Mineral Resources and exploration activities: A
number of potential organic growth opportunities have been
identified, which could increase production and extend the
life of the Gwalia, Simberi and Atlantic Gold operations.
During 2021 the Leonora Province Plan was developed with
the objective of maximising the value of tenements in the
region and providing ore to the Gwalia processing facility. As
a result of the work completed during the year the Province
Plan has increased the Mineral Resources in the Leonora
Province by 1.4 million ounces. At Simberi, a sulphide
feasibility study was completed during the year and a pre-
investment phase was approved by the Board. The sulphide
projects presents an opportunity to create a long life
production centre at Simberi. In Canada, the focus has been
on advancing the growth projects at Beaver Dam, Fifteen
Mile Stream and Cochrane Hill.
(cid:120) Maintaining a conservative financial profile: The Group
continues to maintain prudent financial management policies
with the objective of ensuring adequate liquidity to pursue
appropriate investments in the operations and exploration.
The Group’s financial management policies are aimed at
generating net cash flows from operations to meet financial
commitments and fund exploration to the extent viable and
appropriate. The Group’s capital management plan is
reviewed and discussed with the Board on a regular basis.
(cid:120) Continue and strengthen
the Group’s commitment
to
employees and local communities: The Group considers the
capability and wellbeing of its employees as key in delivering
the business strategy. Creating and sustaining a safe work
environment and ensuring that operations conform to
applicable environmental and sustainability standards are an
important focus for the Group. The Group invests in the
training and development of
talent
management and succession planning.
its employees,
(cid:120) The Company views such efforts as an important component
of instilling St Barbara’s values throughout the organisation
and retaining continuity in the workforce. The Group has in
place a comprehensive talent management framework to
strengthen the capacity to attract, motivate and retain
capable people. St Barbara places significant importance on
gender diversity and is certified by the Workplace Gender
Equality Agency (WEGA) as an Employer of Choice for
Gender Equality. The Group also has an ongoing
commitment to work with local communities to improve
infrastructure, particularly in health and education, support
local businesses, and provide venues for leisure activities,
and other opportunities for developing communities in which
the Group operates.
The Group’s priorities in the 2022 financial year are:
Atlantic Operations: progressing the various studies and
regulatory activities for each of the development projects. Work
continues on the optimal sequencing of the suite of Atlantic
Gold projects and optimisation of capital and operational
outcomes and progressing the activities towards permitting.
Leonora Operations: Embed the productivity and cost
efficiency initiatives that have been implemented as part of
Building Brilliance. The productivity improvements will support
the operations in consistently delivering to plan.
financial
investment decision. This
Simberi Operations: progressing the Simberi sulphide project
to
further
optimising some aspects of the feasibility study. The Social and
Environmental
review by
Conservation and Environmental Protection Authority (CEPA)
and engaged independent reviewer, Coffey. Anticipated
approval of the permit is in the March 2022 quarter with first
production expected in the December 2023 quarter.
Impact Statement
is under
involves
Focussed exploration and business development activity will
continue within COVID-19 restrictions.
For the 2022 financial year the Group’s operational and
financial outlook is as follows:
(cid:120) Gold production is expected to be in the range 305,000
ounces to 355,000 ounces;
St Barbara Annual Report 2021 | 11
St Barbara Directors and Financial Report / 30 June 2021
(cid:120) All-In Sustaining Cost is expected to be in the range of
$1,710 per ounce to $1,860 per ounce for the Group;
(cid:120) Sustaining capital expenditure is expected to be in the range
of $95 million to $115 million;
(cid:120) Growth capital is anticipated to be between $70 million to $95
million; and
(cid:120) Exploration expenditure of between $28 million and $32
million.
The focus for the exploration program in 2022 will be to extend
the life of each operation and provide future growth options for
the Company. The program will largely concentrate on the
potential for additional near-mine ore sources around the three
existing operations,
the
surrounding mine lease, Touquoy mine and the Moose River
Corridor, and Simberi mine and mining lease ML136.
including: Gwalia mine and
Material business risks
St Barbara prepares its business plan using estimates of
production and financial performance based on a business
planning system and a range of assumptions and expectations.
There is uncertainty in these assumptions and expectations,
and risk that variation from them could result in actual
performance being different to planned outcomes. St Barbara’s
business, operating and financial results and performance are
subject to risks and uncertainties, some of which are beyond
the Company’s reasonable control. The uncertainties arise
from a range of factors, including the Group’s international
operating scope, nature of the mining industry and changing
economic factors. The business risks assessed as having the
potential to have a material impact on the business, operating
and/or financial results and performance by the Group include:
(cid:120) Fluctuations in the United States Dollar (“USD”) spot gold
price: Volatility in the gold price creates revenue uncertainty
and requires careful management of business performance
to ensure that operating cash margins are maintained
despite a fall in the spot gold price.
(cid:120) Declining gold prices can also impact operations by requiring
a reassessment of the feasibility of a particular exploration or
development project. Even
is ultimately
determined to be economically viable, the need to conduct
such a reassessment could cause substantial delays and/or
interrupt operations, which may have a material adverse
effect on the results of operations and financial condition.
if a project
(cid:120) In assessing the feasibility of a project for development, the
Group may consider whether a hedging instrument should be
put in place to guarantee a minimum level of return. The
Group has also used gold forward contracts to secure
revenues during the completion of the turnaround at Simberi
and subsequently to ensure a reasonable margin.
(cid:120) The Group has a centralised treasury function that monitors
the risk of fluctuations in the USD gold price and impacts on
expenditures from movements in local currencies. Where
possible, the exposure to movements in the USD relative to
USD denominated expenditure is offset by the exposure to
the USD gold price (a natural hedge position).
(cid:120) Hedging risk: The Group has hedging agreements in place
for the forward sale of fixed quantities of gold production from
12 | St Barbara Annual Report 2021
its operations. There is a risk that the Group may not be able
to deliver the amount of gold required under its hedging
arrangements if, for example, there is a production shortage.
In this event the Group’s financial performance may be
adversely affected. Under the hedging agreements, rising
gold prices could result in part of the Group’s gold production
being sold at less than the prevailing spot gold prices at the
time of sale.
(cid:120) Government regulation: The Group’s current and future
mining, processing, development and exploration activities
are subject to various laws and statutory regulations
governing prospecting, development, production, taxes,
royalty payments, labour standards and occupational health,
mine safety,
land use, water use,
communications, land claims of local people and other
matters, and to obtaining and maintaining the necessary
titles, authorisations, permits and licences.
toxic substances,
(cid:120) No assurance can be given that new laws, rules and
regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have
an adverse effect on the Group’s financial position and
results of operations, or on the success of development
projects. Any such amendments to current laws, regulations
and permits governing operations and activities of mining,
exploration and development projects, or more stringent
implementation thereof, could have a material adverse
impact on the Group’s result of operations, financial condition
and prospects. Failure to comply with any applicable laws,
in
regulations or permitting requirements may result
enforcement actions against the Group, including orders
issued by regulatory or judicial authorities causing operations
to cease or be curtailed, and may include corrective
measures requiring capital expenditures, installation of
additional equipment, or remedial actions.
(cid:120) Operating risks and hazards:
The Group’s mining
operations, consisting of open pit and underground mines,
generally involve a high degree of risk, and these risks
increase when mining occurs at depth. The Group’s
operations are subject to all the hazards and risks normally
encountered in the exploration, development and production
of gold. Processing operations are subject to hazards such
as equipment failure, toxic chemical leakage, loss of power,
fast-moving heavy equipment, failure of deep sea tailings
disposal pipelines and retaining dams around tailings
containment areas, rain and seismic events that may result
in environmental pollution and consequent liability. The
impact of these events could lead to disruptions in production
and scheduling, increased costs and loss of facilities, which
may have a material adverse impact on the Group’s results
of operations, financial condition, license to operate and
prospects. These risks are managed by a structured
operations risk management framework and formalised
procedures.
facilities and
(cid:120) Reliance on transportation facilities and infrastructure: The
Group depends on the availability and affordability of reliable
infrastructure (e.g. roads,
transportation
bridges, airports, air transport, power sources and water
supply) to deliver consumables to site, and final product to
market. Interruption in the provision of such infrastructure
(e.g. due to adverse weather, community or government
interference) could adversely affect St Barbara's operations,
St Barbara Directors and Financial Report / 30 June 2021
financial condition and results of operations. The Group’s
operating procedures include business continuity plans
the event any particular
in
which can be enacted
infrastructure is temporarily unavailable.
(cid:120) Information technology and cyber risk: The Group’s
operations are supported by information technology systems,
consisting of infrastructure, networks, applications and
service providers. The Group could be subject to network and
systems interference or disruptions from a number of
sources, including security breaches, cyber-attacks and
system failures. The impact of information technology
systems interferences or disruption could include production
downtime, operational delays, destruction or corruption of
data, disclosure of sensitive information and data breaches,
any of which could have a material impact on the Group’s
business, operations, financial condition and performance.
Disaster recovery plans are in place for all of the Group’s
major sites and critical information technology systems,
together with a well-developed cyber-security protection and
monitoring system.
(cid:120) Production, cost and capital estimates: The Group prepares
estimates of future production, operating costs and capital
expenditure relating to production at
its operations. The
ability of the Group to achieve production targets or meet
operating and capital expenditure estimates on a timely basis
cannot be assured. The assets of the Group are subject to
uncertainty with regards to ore tonnes, grade, metallurgical
recovery, ground conditions, operational environment,
funding for development, regulatory changes, accidents and
other unforeseen circumstances such as unplanned
mechanical failure of plant and equipment. Failure to achieve
production, cost or capital estimates, or material increases to
costs, could have an adverse impact on the Group’s future
financial condition. The
cash
development of estimates is managed by the Group using a
rigorous budgeting and forecasting process. Actual results
are compared with budgets and forecasts on a regular basis
to identify drivers behind discrepancies that may result in
updates to future estimates.
flows, profitability and
(cid:120) Changes in input costs: Mining operations and facilities are
intensive users of electricity, gas and carbon-based fuels.
Energy prices can be affected by numerous factors beyond
the Group's control, including global and regional supply and
demand, carbon taxes, inflation, political and economic
conditions, and applicable regulatory regimes. The prices of
various sources of energy may increase significantly from
current levels.
The Group's production costs are also affected by the prices of
commodities it consumes or uses in its operations, such as
diesel, lime, sodium cyanide and explosives, and increases in
labour rates. The prices of such commodities are influenced by
supply and demand trends affecting the mining industry in
general and other
the Group's control.
factors outside
Increases in the price for materials consumed in St Barbara's
mining and production activities could materially adversely
affect its results of operations and financial condition.
The Group's operations use contractors for mining services at
those operations, and some of its construction projects are
conducted by contractors. As a result, the Group's operations
are subject to a number of risks, including:
(cid:120) negotiation and renewal of agreements with contractors on
acceptable terms;
(cid:120) failure of contractors to perform under their agreements,
including
to comply with safety systems and
standards, contractor insolvency and failure to maintain
appropriate insurance;
failure
(cid:120) failure of contractors to comply with applicable legal and
regulatory requirements; and
(cid:120) changes in contractors.
In addition, St Barbara may incur liability to third parties as a
result of the actions of its contractors. The occurrence of one
or more of these risks could have a material adverse effect on
its results of operations and financial position.
The Group manages risks associated with input costs through
a centralised procurement function which analyses market
trends, supply environment, and operational demand planning,
to establish appropriate sourcing strategies
for spend
categories.
The Group manages risks associated with contractors through
a contractor management system.
the exploration
for mineral deposits and
(cid:120) Exploration and development risk: Although the Group’s
activities are primarily directed towards mining operations
and the development of mineral deposits, its activities also
include
the
possibility of third- party arrangements including joint
ventures, partnerships,
treating arrangements, ore
purchase arrangements or other third-party contracts. An
ability to sustain or increase the current level of production in
the longer term is in part dependent on the success of the
Group’s exploration activities and development projects, and
the expansion of existing mining operations.
toll
(cid:120) The exploration for and development of mineral deposits
involves significant risks that even a combination of careful
evaluation, experience and knowledge may not eliminate.
While the discovery of an ore body may result in substantial
rewards, few properties that are explored subsequently have
economic deposits of gold identified, and even fewer are
ultimately developed into producing mines. Major expenses
may be required to locate and establish mineral reserves, to
establish rights to mine the ground, to receive all necessary
operating permits, to develop metallurgical processes and to
construct mining and processing facilities at a particular site.
It is impossible to ensure that the exploration or development
programs the Group plans will result in a profitable mining
operation.
Whether a mineral deposit will be commercially viable depends
on a number of factors.
The Group has a disciplined approach to allocating budget to
exploration projects. The Group also has investment criteria to
ensure that development projects are only approved if an
adequate economic return on the investment is expected.
(cid:120) Ore Reserves and Mineral Resources: The Group's
estimates of Ore Reserves and Mineral Resources are based
on different levels of geological confidence and different
degrees of technical and economic evaluation, and no
assurance can be given that anticipated tonnages and
grades will be achieved, that the indicated level of recovery
St Barbara Annual Report 2021 | 13
St Barbara Directors and Financial Report / 30 June 2021
will be realised or that Ore Reserves could be mined or
processed profitably. The quality of any Ore Reserve or
Mineral Resource estimate is a function of the quantity of
available technical data and of the assumptions used in
engineering and geological interpretation, and modifying
factors affecting economic extraction. Such estimates are
compiled by experienced and appropriately qualified
geoscientists using mapping and sampling data obtained
from bore holes and field observations, and subsequently
reported by Competent Persons under the JORC Code.
Fluctuation in gold prices, key input costs to production, as well
as the results of additional drilling, and the evaluation of
reconciled production and processing data subsequent to any
estimate may require revision of such estimates.
Actual mineralisation of ore bodies may be different from those
predicted, and any material variation in the estimated Ore
Reserves, including metallurgy, grade, dilution, ore loss, or
stripping ratio at the Group's properties may affect the
economic viability of its properties, and this may have a
material adverse impact on the Group's results of operations,
financial condition and prospects.
There is also a risk that depletion of reserves will not be offset
by discoveries or acquisitions, or that divestitures of assets will
lead to a lower reserve base. The reserve base of the Group
may decline
reserves are mined without adequate
replacement and the Group may not be able to sustain
production beyond current mine lives, based on current
production rates.
if
to political, economic and other
(cid:120) Political, social and security risks: St Barbara has production
and exploration operations in a developing country that is
risks and
subject
uncertainties. The
implementation of
formulation and
government policies in this country may be unpredictable.
Operating in developing countries also involves managing
security risks associated with the areas where the Group has
activities. The Group has established policies and
procedures
in managing and monitoring
government relations. The Group’s operating procedures at
its mine in Papua New Guinea (PNG) includes detailed
security plans. In PNG there is political focus on potential
future policy changes that could include changes to the
existing Mining Act, the level and manner of local equity
participation in projects, taxation regimes, changes to
banking and foreign exchange controls and changes in
controls pertaining to the holding of cash and remittance of
profits and capital to the parent company.
to assist
(cid:120) Foreign exchange: The Group has an Australian dollar
presentation currency for reporting purposes. However, gold
is sold throughout the world based principally on the U.S.
dollar price, and most of the Group's revenues are realised
in, or linked to, U.S. dollars. The Group is also exposed to
U.S. dollars and Papua New Guinea Kina in respect of
operations located in Papua New Guinea and Canadian
dollars in respect of the Atlantic Gold operations as the
operating costs are denominated in these currencies. There
is a “natural” (but not perfect) hedge that matches to some
degree U.S. denominated revenue and obligations related to
U.S. dollar expenditure (similarly with Canadian dollar
denominated revenues and expenses). The Group is
foreign currency
therefore exposed
fluctuations
to
in
14 | St Barbara Annual Report 2021
exchange rates. The Group monitors foreign exchange
exposure and risk on a monthly basis through the centralised
function and a Management Treasury Risk
treasury
Committee.
(cid:120) Community relations: A failure to adequately manage
community and social expectations within the communities in
which the Group operates may lead to local dissatisfaction
which, in turn, could lead to interruptions to production,
permitting and exploration operations. The Group has an
established stakeholder engagement framework to guide the
management of the Group’s community relations efforts. At
Simberi there is a dedicated community relations team to
work closely with the local communities and government.
(cid:120) Insurance: The Group maintains insurance to protect against
certain risks. However, the Group’s insurance will not cover
all the potential risks associated with a mining company’s
operations. The Group may also be unable to maintain
insurance to cover these risks at economically feasible
premiums. Insurance coverage may not continue to be
available or may not be adequate to cover any resulting
liability. Moreover, insurance against risks such as loss of title
to mineral property, environmental pollution, or other hazards
as a result of exploration and production is not generally
available to the Group, or to other companies in the mining
industry on acceptable terms. The Group might also become
subject to liability for pollution or other hazards which may
not be insured against, or which it may elect not to insure
against because of premium costs or other reasons. Losses
from these events may cause the Group to incur significant
costs that could have a material adverse effect upon its
financial performance and results of operations.
(cid:120) Climate change: Climate change related risks that may
impact the Group include physical as well as regulatory and
macro-economic impacts. The effects of changes in rainfall
patterns, changing storm patterns and intensities have from
time to time adversely impacted, and may in the future
adversely impact, the cost, production levels and financial
performance of the Group's operations. The Group's mining
operations have been, and may in the future be, subject from
time to time to severe storms and high rainfalls leading to
flooding and associated damage, which has resulted, and
may result in delays to, or loss of production at its mines (e.g.
due to water ingress and flooding at the base of the mine at
Leonora WA and tropical storms; sea level increases
impacting logistics and mining operations at Simberi PNG;
and/or snow storms preventing access to the mining
operations at Touquoy in Nova Scotia). Carbon related
regulatory impacts on the Group’s operations are currently
low, but may increase adversely in future, for instance should
a carbon trading scheme be introduced. Climate change
related impacts on commodity markets are difficult to predict,
but might include increased energy cost to the Group.
(cid:120) Other natural disasters: Seismic activity is of particular
concern to mining operations. The Simberi mine in Papua
New Guinea is in an area known to be seismically active and
is subject to risks of earthquakes and the related risks of tidal
surges and tsunamis. The Gwalia underground mine may be
impacted by potential seismic events associated with
operating at depth.
St Barbara Directors and Financial Report / 30 June 2021
(cid:120) Risk of impairment: If the gold price suffers a significant
decline, or the operations are not expected to meet future
production levels, there may be the potential for future
impairment write downs at any of the operations. At Atlantic
Gold a significant portion of the value ascribed to the
acquisition is in mineral rights. The value of mineral rights is
realised through profitable production from the Touquoy
operation, the development of projects at Beaver Dam,
Fifteen Mile Stream and Cochrane Hill and an increase to ore
reserves through exploration. Any further delay in the
permitting and development of the Atlantic Gold projects or
future
the expected performance of
changes
operations, and in achieving positive exploration results in
Canada, could give rise to the impairment of assets. The
recoverability of the carrying value of the Group’s assets is
assessed on a regular basis using a range of assumptions
and expectations as part of the business planning system.
the
to
(cid:120) COVID-19: While St Barbara has implemented extensive
procedures to manage the risk of COVID-19 spreading
through an operation, there is a risk that if broader community
transmission of COVID-19 increases in a particular region,
there is a risk that the local government (state, provincial or
federal) may place restrictions that could ultimately result in
closing the site and running in care and maintenance until
restrictions are lifted. The closure of a site will have a material
impact on cash flows. Additionally, while COVID-19 related
restrictions may not directly impact the operations, there is a
risk that suppliers of key consumables, parts and equipment
could be negatively impacted, resulting in interruption of
supply to the operations. The restriction in the mobility of the
work force both within Australia and globally could also
impact the operations.
Risk management
risks
through an established enterprise-wide
The Group manages the risks listed above, and other day-to-
day
risk
management framework, which conforms to Australian and
international standards and guidance. The Group’s risk
reporting and control mechanisms are designed to ensure
strategic, safety, environment, operational, legal, financial, tax,
reputational and other risks are identified, assessed and
appropriately managed.
The financial reporting and control mechanisms are reviewed
during
the Audit and Risk
Committee, the internal audit function and the external auditor.
the year by management,
Senior management and the Board regularly review the risk
portfolio of the business and the effectiveness of the Group’s
management of those risks.
Regulatory environment
Australia
The Group’s Australian mining activities are in Western
Australia and governed by Western Australian legislation,
including the Mining Act 1978, the Mines Safety and Inspection
Act 1994, Dangerous Goods Safety Act 2004 and other mining
related and subsidiary legislation. The Mining Rehabilitation
Fund Act 2012 took effect from 1 July 2013. The Mining
Rehabilitation Fund replaces unconditional environmental
performance bonds for companies operating under the Mining
Act 1978.
The Group is subject to significant environmental regulation,
including the Western Australian Environmental Protection Act
1986, Contaminated Sites Act 2003, Wildlife Conservation Act
1950, Aboriginal Heritage Act 1972 and the Commonwealth
Environmental Protection and Biodiversity Conservation Act
1999, as well as safety compliance in respect of its mining and
exploration activities.
The Group is registered pursuant to the National Greenhouse
and Energy Reporting Act 2007 under which it is required to
report annually its energy consumption and greenhouse gas
emissions. St Barbara also reports to Government pursuant to
both the Energy Efficiency Opportunities Act 2006 and the
National Environmental Protection
(National Pollutant
Inventory) Measure (subsidiary legislation to the National
Environmental Protection Measures (Implementation) Act
1998). The Group has established data collection systems and
processes to meet these reporting obligations. The Group’s
Australian operations are also required to comply with the
Australian Federal Government’s Clean Energy Act 2011,
effective from 1 July 2012.
Papua New Guinea
The primary Papua New Guinea mining legislation is the Mining
Act 1992, which governs the granting and cessation of mining
rights. Under the Mining Act, all minerals existing on, in or
below the surface of any land in Papua New Guinea, are the
property of the State. The Mining Act establishes a regulatory
regime for the exploration for, and development and production
of, minerals and is administered by the Minerals Resources
the
Authority. Environmental
Environment Act 2000, administered by the Department of
Environment and Conservation. The PNG government has
been reviewing the Mining Act since 2014. There is no public
timeframe for completion of the review.
is governed by
impact
Canada
The Group’s Canadian mining activities, located in Nova
Scotia, are subject to both Provincial and Federal legislation.
Atlantic Gold is subject to the Canadian Environmental
Protection Act, 1999 (CEPA) under Environment and Climate
Change Canada (ECCC). Atlantic Gold is also required to
comply with the Canadian Federal Government’s Department
of Fisheries and Oceans (Fisheries Act), the Transportation of
Dangerous Goods Act and the Migratory Birds Convention Act
1994. In Canada, Provincial governments are responsible for
regulating mining within their jurisdictions.
Atlantic Gold is registered with ECCC to report under the
(E2 Propane
Environmental Emergency Regulations
Emergency Response Plan), Greenhouse Gas Reporting
Program (Greenhouse Gas emissions), and the National
Pollutant Release Inventory. Atlantic Gold also reports to
ECCC pursuant to the Metal and Diamond Mining Effluent
Regulations.
Provincially, Atlantic Gold is governed by the Nova Scotia
Environment Act 1994-1995 and the Mineral Resources Act
2018. Nova Scotia Environment has established a set of
regulatory conditions for the construction, operation and
reclamation of the Facility through the facility’s operating
permits. Atlantic Gold also reports to the Department of Energy
and Mines through mineral lease requirements and the
Department of Lands and Forestry through the Crown lease
agreement.
St Barbara Annual Report 2021 | 15
St Barbara Directors and Financial Report / 30 June 2021
Information on Directors
Timothy (Tim) C Netscher
BSc (Eng.) (Chemical), BCom, MBA, FIChE, CEng, FAICD
Craig A Jetson
Accredited Mechanical Engineer
Managing Director and Chief Executive Officer
Appointed as Managing Director and CEO 3 February 2020
Special responsibilities:
(cid:120)
Nil (attends Board Committee Meetings by invitation)
Mr Jetson is a highly experienced international career mining
executive, having most recently served as Executive General
Manager of Cadia, Lihir and Global Technical Services at
Newcrest Mining Limited. Previously, he was the General
Manager of Lihir and prior to that held long-term senior
operating roles in Australia, USA, Canada and Europe. His
career began in Comalco (majority-owned and subsequently
fully acquired by Rio Tinto) in operations, engineering and
asset management which led him to senior management and
leadership roles with Nyrstar and Zinifex in their zinc smelting
businesses.
Mr Jetson has experience in successfully leading challenging
businesses in complex operating environments, together with
deep technical knowledge. He was awarded the 2019 Victorian
Women in Resources Gender Diversity Champion.
Other current listed public company directorships: Nil
Former listed company directorships in last three years: Nil
Other current relevant experience:
Professional Society of Engineers
(cid:120)
(cid:120) Member of Strategic
Industry Research Foundation
Australia
Independent Non-Executive Chairman
Appointed as a Director 17 February 2014
Appointed as Chairman 1 July 2015
Special responsibilities:
(cid:120) Member of Audit and Risk Committee
(cid:120) Member of Growth and Business Development Committee
(cid:120) Member of Health, Safety, Environment and Community
Committee
(cid:120) Member of Remuneration and Nomination Committee
Mr Netscher is an experienced international mining executive
with extensive operational, project development, transactional
and sustainability experience gained in senior executive and
board roles over many years. His key executive positions
during a 25 year executive career have included Managing
Director and CEO of Gindalbie Metals Ltd, Senior Vice
President Asia Pacific Region of Newmont Inc., Managing
Director of Vale Coal Australia, President of P T Inco and
Executive Director of Refining & New Business at Impala
Platinum Ltd.
Mr Netscher’s experience covers a wide range of resources
including platinum group metals, nickel, coal, iron ore, uranium
and gold in Africa, Asia, USA and Australia.
Other current listed company directorships:
(cid:120) Gold Road Resources Limited
o Non-Executive Chairman
o Member of Audit & Risk Committee
o Member of Remuneration & Nomination Committee
(cid:120) Western Areas Limited
o Non-Executive Director
o Member of Audit & Risk Committee
o Chairman of Remuneration Committee
Former listed company directorships in last three years: Nil
Other previous relevant experience:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Non-Executive Chairman of Deep Yellow Limited
Non-Executive Chairman of Toro Energy Limited
Director of Queensland Resources Council
Director of Minerals Council of Australia
Director of Chamber of Minerals and Energy of Western
Australia
16 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Steven G Dean
FCA, FAusIMM, CIMMP
Independent Non-Executive Director
Appointed as a Director 23 July 2019
Special responsibilities:
Kerry J Gleeson
LLB (Hons), FAICD
Independent Non-Executive Director
Appointed as a Director 18 May 2015
Special responsibilities:
Chair of Growth and Business Development Committee
(cid:120)
(cid:120) Member of the Remuneration & Nomination Committee
Following the successful completion of the acquisition of
Atlantic Gold Corporation on 19 July 2019, Steven Dean,
former Chairman, Chief Executive Officer and founder of
Atlantic Gold Corporation, was appointed to the Board of St
Barbara Limited as an Non-Executive Director effective 23 July
2019.
Mr Dean has extensive experience internationally in mining,
including as President of Teck Cominco Limited (now Teck
Resources Ltd, (TSX: TECK.A and TECK.B, NYSE: TECK).
Teck is Canada's largest diversified resource company, is the
largest producer of metallurgical coal in North America and a
major producer of copper, zinc, and energy from 13 mines in
Canada, United States, Chile and Peru.
Prior to joining Teck, Mr Dean was a founding member of
management of the Normandy Poseidon Group, (which
became Normandy Mining) which was the largest Australian
gold producer and a significant producer of base metals and
industrial minerals until its acquisition by Newmont Mining in
2002, as well as co-founder of PacMin Mining Corporation
which became a subsidiary of Teck Corporation in 1999. Mr
Dean was also a co-founder and former chairman of Amerigo
Resources Ltd, and is the former Chairman and a director of
Sierra Metals Inc. (TSX:SMT), and Chairman of Oceanic Iron
Ore Corp. (TSX-V:FEO).
Mr Dean is a recipient of the Viola R MacMillan Award from the
Prospectors and Developers Association of Canada (PDAC)
for individuals demonstrating leadership in management and
financing for the exploration and development of mineral
resources.
Other current listed company directorships:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Chairman and CEO of Artemis Gold Inc. (CanadaTSX-
V:ARTG)
Chairman of Oceanic Iron Ore Corp. (TSX-V:FEO)
Non-Executive Director of Sierra Metals Inc. (TSX:SMT)
Non-Executive Director of Velocity Minerals Ltd. (TSX-
V:VLC)
Former listed company directorships in last three years:
Chair of Remuneration & Nomination Committee
(cid:120)
(cid:120) Member of Audit and Risk Committee
(cid:120) Member of Health, Safety, Environment and Community
Committee
is an experienced Non-Executive Director
Ms Gleeson
following a 30-year career as a senior executive and as a
lawyer in both the UK and Australia. She has significant
experience in international governance, strategic mergers and
acquisitions and complex corporate finance transactions, as
well as in risk and crisis management.
Ms Gleeson was a member of the Group Executive at Incitec
Pivot Limited for 10 years until 2013, including as Company
Secretary and General Counsel, with involvement across its
international operations in explosives and chemicals, mining,
transport and
Incitec Pivot’s
Corporate Affairs function across government, media and
regulatory affairs as well as leading international crises
responses and major environmental remediation projects, and
the Group’s Culture & Values and Diversity programs.
logistics. Ms Gleeson
led
Earlier in her career, Ms Gleeson practised as a corporate
lawyer, with Blake Dawson Waldron (now Ashurst)
in
Melbourne after a 10 year legal career in the UK, including as
a corporate finance and transactional partner in an English law
firm, focusing on mergers and acquisitions and initial public
offerings.
Other current listed company directorships:
(cid:120)
New Century Resources Limited (ASX:NCR)
o Non- Executive Director
o Chair of the ESG Committee
o Member of the Audit and Risk Committee
o Member of
the Nomination and Remuneration
Committee
Former listed company directorships in last three years: Nil
Other current relevant experience:
(cid:120)
(cid:120)
(cid:120)
Non-Executive Director of Chrysos Corporation Limited
Chair of Trinity College, University of Melbourne
A member of the Corporate Governance Consultative
Panel of the Australian Securities and Investments
Commission
(cid:120)
Chairman, CEO and Director of Atlantic Gold Corporation
(TSX-V:AGB) (Resigned July 2019)
Other previous relevant experience:
Other previous relevant experience:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Chairman of Sierra Metals Inc.
Co-founder and Chairman of Amerigo Resources Ltd
Co-founder of PacMin Mining Corporation
Executive roles, Normandy Poseidon Group
President of Teck Cominco Limited
(cid:120)
Non-Executive Director of Rivet Group (formerly known as
McAleese Limited)
St Barbara Annual Report 2021 | 17
St Barbara Directors and Financial Report / 30 June 2021
Stefanie (Stef) E Loader
BSc Hons (Geology), GAICD
David E J Moroney
BCom, FCA, FCPA, GAICD
Independent Non-Executive Director
Appointed as a Director 1 November 2018
Independent Non-Executive Director
Appointed as a Director 16 March 2015
Special responsibilities:
Special responsibilities:
(cid:120)
Chair of Health, Safety, Environment and Community
Committee
(cid:120) Member of Audit and Risk Committee
(cid:120) Member of Growth and Business Development Committee
Ms Loader is a company director, geologist and former mining
executive with experience in mining operations, mineral
exploration and project development.
In her extensive
executive career, Ms Loader has worked in seven countries
across four continents.
Ms Loader’s experience covers a wide range of commodities
and regions including copper and gold in Australia, Laos, Chile
and Peru, and diamonds in Canada and India. Ms Loader held
the role of Managing Director of Northparkes copper and gold
mine for CMOC International and Rio Tinto from 2012 to 2017
and was Chair of the NSW Minerals Council from 2015 to 2017.
Ms Loader has also served in the office of the CEO for Rio Tinto
supporting the Executive Committee and as Exploration
Executive.
Ms Loader advises organisations, as a director and consultant,
in the areas of leadership, strategy and regional economic
development and was recognised as one of the Australian
Financial Review 100 Women of Influence in 2013.
Other current listed company directorships:
(cid:120)
(cid:120)
Non-Executive director of Sunrise Energy Metals Ltd
(ASX:SRL)
Non-Executive director of Clean TeQ Water Ltd
(ASX ASX:CNQ)
Former listed company directorships in last three years: Nil
Other current relevant experience:
(cid:120)
(cid:120)
(cid:120)
Independent Chair of Port Waratah Coal Services Limited
Deputy chair of CatholicCare Wilcannia-Forbes Limited
Non-Executive director of Forestry Corporation NSW
Other previous relevant experience:
(cid:120)
Chair of the NSW Minerals Council from 2015 to 2017.
Chair of Audit and Risk Committee
(cid:120)
(cid:120) Member of Health, Safety, Environment and Community
Committee
(cid:120) Member of Remuneration & Nomination Committee
Mr Moroney is an experienced finance executive with more
than 30 years’ experience in senior corporate finance roles,
including 20 years in the mining industry, and extensive
international work experience with strong skills in finance,
strategic planning, governance,
risk management and
leadership. Mr Moroney’s executive positions included CFO of
Co-Operative Bulk Handling, CFO of First Quantum Minerals
Ltd, General Manager Group Business Services at Wesfarmers
Ltd, CFO of Wesfarmers CSBP Ltd, Deputy CFO/Executive
GM Accounting of Normandy Mining Ltd and CFO at Aurora
Gold Ltd.
Mr Moroney’s experience covers a wide range of resources
including diamonds, copper, cobalt, nickel, silver and gold in
Africa, Asia, Scandinavia and Australia.
Other current listed company directorships: Nil
Former listed company directorships in last three years: Nil
Other current relevant experience: Nil
Other previous relevant experience:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Non-Executive Independent Director, WA Super (Western
Australia’s largest public offer superannuation fund)
o Chair of Risk Committee
o Member of Audit & Compliance Committee
o Member of Human Resources Committee
Non-Executive Director, Hockey Australia Ltd (National
Sporting Organisation for Hockey enabling Australian
national hockey teams the Kookaburras and Hockeyroos)
Non-Executive Director, Geraldton Fishermen’s Co-
Operative Ltd (largest exporter of lobster in the southern
hemisphere)
National Councillor, Group of 100 Inc.
Non-Executive Director, CPA Australia Ltd
18 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Information on Executives
Craig Jetson
Accredited Mechanical Engineer
Managing Director and Chief Executive Officer
Appointed 3 February 2020
Mr Jetson is a highly experienced career mining executive,
having most recently served as Executive General Manager
Cadia, Lihir and Global Technical Services at Newcrest Mining
Limited. Previously, Mr Jetson was GM Lihir and prior to that
held long-term senior operating roles at Nyrstar and Zinifex in
Australia, USA, Canada and Europe. Mr Jetson has experience
in successfully leading challenging businesses in complex
operating environments,
technical
knowledge.
together with deep
Garth Campbell-Cowan
B.Comm, Dip-Applied Finance & Investments, FCA
Chief Financial Officer
Mr Campbell-Cowan is a Chartered Accountant with over 36
years’ experience in senior management and finance positions
across a number of different industries.
treasury,
Mr Campbell-Cowan was appointed to the position of Chief
Financial Officer in September 2006 and is responsible for the
Group’s Finance function, covering financial reporting and
accounting,
internal audit, capital
taxation,
management, Group procurement and information technology.
Prior to joining the Group, Mr Campbell-Cowan’s executive
roles included four years as Director of Corporate Accounting
at Telstra, five years as GM Finance and Tax at Newcrest
Mining Limited and five years as Manager Group Policy and
Special Projects at ANZ Bank.
Evan Spencer
Master of Mineral Economics, Bachelor of Applied Science
Geology (Hons)
Chief Operating Officer
Mr Spencer is a mining executive with more than 25 years of
industry experience across a wide range of executive, senior
management and operational
in Australia and
internationally, including Papua New Guinea.
roles
Mr Spencer was appointed to the position of Chief Operating
Officer in November 2020. Most recently he was President and
CEO of Nevada Copper Corporation and prior to that held
executive
roles at Kasbah Resources, Asian Mineral
Resources and Kagara, as well as senior roles at Barrick. Mr
Spencer has significant experience in mine planning, project
development, feasibility studies, permitting and business
development.
Sarah Standish
BA, LLB, GAICD
General Counsel and Company Secretary
Appointed 11 December 2020
legal, governance,
Ms Standish has over 15 years’ experience in Australia and
internationally in both private practice and in-house roles
spanning
risk and compliance. Ms
Standish’s most recent experience includes leading the legal,
risk and compliance functions at an ASX listed mining
technology company. Ms Standish’s experience and key areas
of expertise include corporate and commercial transactions,
regulatory compliance, corporate governance, corporate and
commercial law, anti-bribery and anti-corruption compliance,
risk management,
strategy
development and execution, project management and delivery
and intellectual property and technology.
restructuring,
corporate
St Barbara Annual Report 2021 | 19
St Barbara Directors and Financial Report / 30 June 2021
Meetings of directors
The number of meetings of Directors (including meetings of Committees of Directors), and the numbers of meetings attended by each
of the Directors of the Company during the financial year was:
Board meeting
Scheduled
Supplementary Audit & Risk
Committee
Remuneration
& Nomination
Committee -
Scheduled
Health, Safety,
Environment
& Community
Committee
Growth and
Business
Development
Committee
S Dean
K Gleeson
S Loader
D Moroney
T Netscher
C Jetson
A
7
7
7
7
7
7
H
7
7
7
7
7
7
A
4
5
5
5
5
5
H
5
5
5
5
5
5
A
-
4
4
4
4
4
H
-
4
4
4
4
4
A
4
4
4
4
4
4
H
4
4
-
4
4
4
A
-
4
4
4
4
4
H
-
4
4
4
4
4
A
3
3
3
3
3
3
H
3
-
3
-
3
3
Table 1: Meetings of Directors
A = Number of meetings attended
H = Number of meetings held during the time the Director held office or was a member of the committee during the year and was
eligible to attend
In addition to the meetings of Directors, Directors attended additional meetings with Management in consideration of strategic projects.
Directors’ interests
The relevant interest of each Director in the shares and rights over such instruments issued by the companies within the Group and
other related bodies corporate as notified by the Directors to the ASX in accordance with S205G(1) of the Corporations Act 2001, as
the date of this report is as follows:
Ordinary shares
Rights over
ordinary shares
-
28,613
30,000
105,438
90,170
100,000
-
5,576
18,587
-
-
345,483
S Dean
K Gleeson
S Loader
D Moroney
T Netscher
C Jetson
Table 2: Directors’ Interests
No Directors have an interest in options over shares issued by companies within the Group.
20 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Remuneration Report (Audited)
Contents
1.
2.
Introduction and Key Management Personnel
2021 Remuneration Summary
3. Remuneration Governance
4. Executive Remuneration Framework
5. Components of Executive remuneration
6.
Looking ahead to FY22
7. Relationship between Group performance and remuneration - past five years
8. FY21 Executive remuneration outcomes and disclosures
9. Non-Executive Director remuneration
10. Additional statutory information
1.
Introduction and Key Management Personnel
The Remuneration Report (as part of the Annual Report) complements, and should be read in conjunction with, information contained
in the Company’s corresponding annual Corporate Governance Statement and Sustainability Report, both available at
www.stbarbara.com.au
The pages of the report that follow have been prepared in accordance with section 300A of the Corporations Act 2001 (Cth) (Act) and
audited as required by section 308(3C) of the Act.
The Group’s Key Management Personnel (KMP) named in this report are those with the authority and responsibility for planning,
directing and controlling the activities of the Group. KMP for the financial year ended 30 June 2021 are outlined below and each was
a KMP for the entire period unless otherwise stated.
1.1 Key Management Personnel during FY21
Non-Executive Directors
Tim Netscher
Steven Dean
Independent Non-Executive Chairman
Independent Non-Executive Director
Kerry Gleeson
Independent Non-Executive Director
Stef Loader
Independent Non-Executive Director
David Moroney
Independent Non-Executive Director
Executives
Craig Jetson
Managing Director & Chief Executive Officer
Garth Campbell-Cowan0F
1
Chief Financial Officer
Evan Spencer
Chief Operating Officer (appointed 2 November
2020)
Former Executives
Rowan Cole
Table 3: FY21 KMP
Company Secretary (ceased 11 December 2020)
1 Mr Campbell-Cowan is leaving the Company to pursue other opportunities and will remain with the Company until 10 September 2021.
St Barbara Annual Report 2021 | 21
St Barbara Directors and Financial Report / 30 June 2021
2.
2021 remuneration summary
The information below provides a high-level summary of remuneration outcomes in respect of FY21.
There were increases of 2.5% to Total Fixed Remuneration (TFR) for Mr
Campbell-Cowan and Mr Cole in FY21.
Mr Jetson’s TFR remained unchanged at $1,000,000 per annum.
Refer to Section 10 for Statutory Remuneration disclosures.
The FY21 STI was payable based on performance against Key Performance
Indicators (KPIs) for Group performance and individual performance. For Executive
KMP their STI comprises 80% for Group Performance and 20% for individual
performance.
With regards to Group Performance, the threshold measure for each of the KPIs on
safety, production, and AISC were not met. The fourth Group KPI on Exploration
was assessed as above threshold. Refer to Section 8.2 for more detail on Group
STI outcomes.
With regards to individual performance, the Board assessed and acknowledged the
leadership and oversight throughout the ongoing COVID-19 pandemic, the
execution of strategy and the operational improvements through the Group’s
Building Brilliance initiative. Refer to Section 8.3 for more detail on individual STI
outcomes.
However, the Board exercised its discretion not to award any STI payment to the
Executive KMP for FY21.
Refer to Section 8 for detailed STI outcomes.
33% of the Performance Rights in respect of the FY19 LTI were assessed to have
vested in light of the Return On Capital Equity (ROCE) in the Group over the three-
year period to 30 June 2021.
Total Shareholder Return (TSR) for the three-year period to 30 June 2021 did not
meet the “positive TSR” gateway required to be considered for performance vesting,
and this portion of the FY19 LTI (67%) lapsed. No discretion was applied to the
determination of the FY19 LTI, and no Performance Rights have been deferred for
re-testing in a subsequent financial year.
The MD and CEO, who is not a participant in the FY19 LTI, was issued with 100,000
shares during FY21 as part of a sign-on arrangement that was disclosed in the FY20
Remuneration Report.
Refer to Section 8.7 which provides more detail on LTI vesting outcomes.
There were no increases to Non-Executive Director Fees in FY21.
Refer to Section 9 for information relating to Non-Executive Directors.
After conducting a review of the Company’s remuneration framework, in light of
practice of the Company’s peers, market trends and the Company’s strategic long
term objectives, the Board remained satisfied that the current framework was
robust.
With the continued strong support of the remuneration report by the Company’s
Shareholders at its Annual General Meeting over many years (FY20: 98.45%, FY19:
97.25% and FY18: 98.35%) for the FY22 LTI, the Board approved a third strategic
performance measure, Replenishment of Reserves, to complement the existing two
performance measures used in the earlier LTI plans, namely relative TSR and
ROCE.
The TSR and ROCE performance measures of the LTI were also reviewed and the
Board is satisfied that these performance measures remain appropriate and the
vesting schedules sufficiently challenging. However, the TSR weighting has been
adjusted from 67% to 50% and the ROCE weighting from 33% to 30% to
accommodate the new Replenishment of Reserves measure with a weighting of
20%. The relative TSR measure will retain a “positive TSR” gateway.
Fixed Remuneration for Executive KMP will remain unchanged.
STI measures will continue to focus on Group safety, production and AISC.
NED fees will remain unchanged.
Refer to Section 6 for more information regarding KMP Remuneration in FY22.
Executive
remuneration
ZERO to 2.5%
Increase
Short Term
Incentive (STI)
outcomes
ZERO STI
Long Term
Incentive (LTI)
outcomes
33%
LTI VESTING
Non-Executive
Director
remuneration
ZERO
Increase
Looking ahead
to FY22
22 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
3. Remuneration governance
The roles and responsibilities of the Board, Remuneration & Nomination Committee, Management, and external advisors in relation
to the governance of remuneration for KMP and employees at St Barbara are outlined below.
The Board has an active role in governance, oversight and evaluation of the Remuneration Framework, including
approving overall Company, Director and specific executive remuneration and related performance standards.
It ensures the Framework is designed to align the interests of Executives with the creation of value for the
Company’s shareholders, with the Company’s values, purpose, strategic objectives and risk appetite in mind.
Board
The Remuneration & Nomination Committee (the Committee) was established by the Board and operates under
a Charter to assist and advise the Board on matters relating to the overall remuneration strategies and policies
of the Company including the remuneration arrangements of the Managing Director and CEO, and other
Executives, Non-Executive Directors and in general, the employees of the Group.
It oversees and reviews the effectiveness of the Remuneration Strategy, policies and practices to ensure
remuneration arrangements are equitable and aligned to the long term interest of shareholders, while operating
within the Group’s enterprise-wide risk framework and supporting the Company’s purpose and values. The
Committee is responsible for making recommendations to the Board on all aspects of remuneration
arrangements for KMP and, in doing so may take into consideration information provided by other Board
Committees, on a range of matters including culture, diversity, safety and environmental performance,
governance, financial and risk management.
In addition, it also receives reports on organisation capability and effectiveness, skills, training and development
and succession planning for key roles.
The Committee is comprised entirely of independent Non-Executive Directors – K Gleeson (Chair), T Netscher
(Member), D Moroney (Member) and S Dean (Member).
Additional information regarding the Committee's roles and responsibilities can be found in the Committee
Charter at https://stbarbara.com.au/our-company/governance/
Remuneration
& Nomination
Committee
Management is responsible for the implementation and continuous improvement of remuneration policies and
practices and may provide the Committee with information and insights to assist the Committee in discharging
its duties.
Management
The Managing Director and CEO may make recommendations to the Committee regarding the performance and
remuneration of other Executives and has delegated authority to approve the remuneration of employees at
manager level and below within the Group.
External Remuneration Consultants may be engaged directly by the Board or the Committee to provide
information or advice. Where a remuneration recommendation is made relating to KMP, the advice will be
provided directly to an Independent Non-Executive Director and shall be free of influence from management.
External
Remuneration
Consultants
In FY21, there were no engagements with remuneration specialists on advice relating to KMP and therefore no
fees were paid to remuneration consultants during the period. Godfrey Remuneration Group Pty Ltd were
engaged for assistance and advice on the review of the LTI plan for FY22 and their fee including GST did not
exceed A$5,500.
Through the Remuneration and Nomination Committee, the Board actively monitors market practices and recommendations from
industry participants on remuneration structure and disclosure, and may amend the Remuneration Framework accordingly at any
time. The Chair of the Remuneration and Nomination Committee actively meets with proxy advisors to discuss and seek feedback
on remuneration practices. At its 2020 annual general meeting, the Group received a 98.45% ‘for’ vote on its remuneration report for
FY20.
The Board seeks to ensure that the Remuneration Framework attracts, retains and encourages high performance by its key
employees, whilst remaining aligned with shareholder experience. The competition for employees in general and executives in
particular is primarily against other Australian domiciled gold mining companies, and close attention is paid to their remuneration
practices.
St Barbara Annual Report 2021 | 23
St Barbara Directors and Financial Report / 30 June 2021
4. Executive remuneration framework
The Group’s Executive remuneration strategy is designed to attract, reward and retain high calibre, high performing, and team
orientated individuals capable of delivering the Group strategy. The remuneration strategy and related employment policies and
practices are aligned with the Group strategy.
The guiding principles that underpin the Executive remuneration strategy are outlined below.
Strategy and vision
Culture and values
Shareholders
Performance
Market
Align short and long-
term performance
measures to drive the
execution of the
Company’s strategy,
including our
commitment to safety
and sustainability in
order to create value in
everything we do, for
our people, our
communities and our
shareholders.
In setting the
remuneration strategy,
the Board is cognisant
of the link between
remuneration and
setting and maintaining
a positive company
culture. The clawback
of Executive incentives
for poor Executive or
organisational
behaviour is therefore
permissible under its
framework. Our values
guide the way we
make decisions and
how we treat one
another and all our
stakeholders.
Executive
remuneration
outcomes are aligned
with the shareholder
experience, as the STI
and LTI link personal
remuneration
outcomes with the
achievement of targets
which drive Group
performance and
sustainable
shareholder returns.
Appropriate levels of
“at risk”, to encourage
and reward
sustainable, high
performance aligned
with value creation for
shareholders. This
includes STI based on
achieving key safety,
production and
strategic milestones
and LTI closely aligned
with the shareholder
experience.
The Group’s
remuneration strategy
and practices are
influenced by the
Australian gold mining
industry and the peer
companies with which
it competes for talent,
with remuneration mix
and levels aligned to
comparable roles in
our peer companies.
A$/oz
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
A$ gold vs SBM share price
ASX:SBM
$5
$4
$3
$2
$1
$0
Jun-16
Jun-17
Jun-18
Jun-19
Gold A$/oz (LHS)
Jun-20
SBM (RHS)
Jun-21
Source: Refinitiv Eikon
Figure 1: A$ gold vs SBM share price
The gold price is the primary determinant of the share price of
gold companies, including St Barbara Limited. The gold price is
volatile, as illustrated by the chart below.
As such, the nature of the industry and the share price volatility
has resulted in certain key features of the Group’s performance-
linked “at risk” remuneration, in the form of the annual STI and
the LTI, which measures performance over three financial
years.
The criteria used to assess the annual STI include safety,
production and key strategic objectives that are within the
control of the Executives and underpin the overall financial
performance of the Group. The Board is aware that some
stakeholders support the partial deferral of an STI to subsequent
years as share rights, notionally to more closely align the STI
with a company’s share price performance. The Board has
determined that no deferral of STI is appropriate as a feature of
the Company’s remuneration strategy as deferral is extremely
rare among the resources companies with which St Barbara
competes for talent and is considered a disincentive to current
and prospective employees. In addition the LTI is closely
aligned with the Company’s share price performance and
provides a significant retention incentive.
24 | St Barbara Annual Report 2021
ST BARBARA LIMITED 2021
Directors’ Report
Remuneration Report (audited)
5. Components of Executive remuneration
5.1 Remuneration components and links to strategy
Executive remuneration comprises of:
(cid:120)
(cid:120)
(cid:120)
Total Fixed Remuneration (TFR);
Short Term Incentives (STI); and
Long Term Incentives (LTI).
The premise behind the combination of fixed remuneration plus “at risk” STI and LTI, is to ensure an appropriate amount of
remuneration of Executives is linked to the performance and success of the Group and thereby align the interests of Executives and
shareholders.
The STI and LTI are integral to a competitive total remuneration package that is prevalent with the Company’s market peers and
should not be misinterpreted as ‘bonuses’ paid on top of fixed remuneration ‘for doing the job’. As a result, a significant portion of
Executive remuneration is “at risk” based on challenging performance measures.
Each of these components is outlined in more detail in the figure below.
In relation to the STI, for each Key Performance Indicator there are defined “threshold”, “target” and “stretch” measures which are
capable of objective assessment:
Threshold performance
Threshold performance represents the minimum level of acceptable performance acknowledging
extrinsic risks assumed in achievement of the full year budget (where the budget is normally more
demanding year on year) for quantifiable measures which are within the control of STI participants
such as safety, production and all-in sustaining cost (as proxies for profitability and cash generation),
as well as the achievement of near-term goals linked to the annual strategy.
Target performance
Target performance represents challenging but achievable levels of performance beyond
achievement of budget measures.
Stretch (or maximum)
performance
Stretch (or maximum) performance requires significant performance above and beyond normal
expectations and, if achieved, is anticipated to result in a substantial improvement in key strategic
outcomes, operational or financial results, and/or the business performance of the Group.
St Barbara Annual Report 2021 | 25
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
Fixed component
“At Risk” components
Fixed remuneration
Short-Term Incentive
Long-Term Incentive
Designed
to attract and
retain talented Executives to
lead St Barbara.
Reviewed annually based
on individual performance
and responsibilities of the
role, the knowledge, skills
and experience required for
the
the
Group’s need to attract and
retain the right person for
the role.
position,
and
In
Comprises of base salary,
superannuation and other
setting
benefits.
remuneration
for
the
Executives,
Remuneration & Nomination
Committee
considers
relevant industry trend data
remuneration
and other
information including market
salary
and
benchmarking.
surveys
Purpose
Links to
Strategy
Approach
in FY21
Reward business and
performance in the financial year.
individual
The STI is linked to specific corporate
and personal objectives over
the
financial year and is structured to
incentivise Executives for achieving
outcomes that are within their control,
as well as
individual
performance targets and behaviours.
In the event of a fatality, the Safety
component of the Group Measures will
be assessed as zero.
Max. quantum (% of Fixed
Remuneration):
their own
the creation of value
Reward long-term performance of the
Company
for
shareholders.
in equity and based on
Delivered
that are correlated with
measures
and
capital
returns
shareholder
management
and ROCE).
(TSR
Outcomes for Executives will be aligned
to the returns of shareholders over the
performance period. The TSR portion
can only vest if the Company’s TSR
performance
the
performance period.
Max.
Remuneration):
is positive over
quantum
Fixed
(%
of
CEO
Other
Executives
100%
75%
CEO
Other
Executives
75%
60%
Target – 50% of Max.
Measures:
Weighted 80% to Group and 20% to
individual measures.
Group Measures:
Target = 50% of Max.
Measures:
TSR (67%) relative to a peer group of
companies*.
ROCE (33%)
TSR Vesting:
< Median
= Median
= or >P75
> Median and < P75 Pro-rata
Nil
50%
100%
ROCE Vesting
<= WACC
WACC + 3%
WACC +7%
> +3% and < +7% Pro-rata
Nil
50%
100%
The Board has discretion on whether any STI or LTI should be awarded, or the amount varied in any given year.
The Board also has absolute discretion to reduce, withhold or cancel any unpaid STI or LTI in relation to fraud, defalcation or gross
misconduct, or a material misstatement in the Group’s financial statements. As noted earlier in this report, deferral of STI is extremely
rate amongst the resources companies with which the Group competes for talent and is considered a disincentive to current and
prospective employees. The current weighting between STI and LTI is considered to provide appropriate alignment with long term
share price performance and retention of Executives.
FY21 TSR Peer Group: Alacer Gold Corporation, Alkane Resources, AngloGold Ashanti, Bellevue Gold, De Grey Mining, Evolution Mining, Gold
Road Resources, Newcrest Mining, Northern Star Resources, OceanaGold Corporation, Perseus Mining, Ramelius Resources, Red 5, Regis
Resources, Resolute Mining, Saracen Mining, Silver Lake Resources, Tribune Resources, West African Resources, Westgold Resources.
Figure 2: Components of remuneration
26 | St Barbara Annual Report 2021
Directors’ Report
Remuneration Report (audited)
5.2 Remuneration mix
The ‘target’ remuneration mix for Executives for 2021 is as follows:
ST BARBARA LIMITED 2021
CEO
53%
27%
20%
Executive KMP
66%
25%
10%
Fixed Remuneration
STI (at risk)
LTI (at risk)
Figure 3: Composition of Executive remuneration
(1) STI as a % of Fixed Remuneration at ‘target’ with STI at ‘maximum’ = 2 x ‘target’. Less than target performance will result in less than the target
allocation, potentially down to zero, and significant outperformance can lead to achieving ‘maximum’ (100%) of the STI.
(2) LTI as a % of Fixed Remuneration at ‘target’ with LTI at ‘maximum’ = 2 x ‘target’. The LTI allocation is fixed at grant, but the proportion of the
grant that ultimately vests, if any, is subject to performance measurement under the relevant LTI plan.
(3) Refer to Sections 8.4 and 8.5 for STI outcome in FY21.
The relationship between ‘target’ and ‘maximum’ remuneration of the Managing Director and CEO for 2021 is as follows:
Target
Maximum
53%
53%
27%
20%
100%
53%
40%
146%
Fixed Remuneration
STI (at risk)
LTI (at risk)
Figure 4: Relationship of STI and LTI at target and maximum for Managing Director and CEO remuneration
Figures are rounded to nearest whole percent and may not add.
5.3 Executive remuneration profile
The timing of payments of Executive remuneration for 2021 is as follows (illustrated using Managing Director and CEO at target):
LTI (at-risk)
STI (at-risk)
Fixed
remuneration (FR)
20%
27%
FY21 LTI measurement period - 3 yrs from 1 Jul 2020 to 30 Jul 2023
20%
FY21 STI
measurement
period
27%
53%
53%
53%
53%
FY21 Target
FY21
(FY21 FR paid)
FY22
(FY21 STI paid)
0%
FY23
FY24
(FY21 LTI vested)
Figure 5: Payment profile of Executive remuneration
Fixed remuneration is inclusive of cash, superannuation & benefits.
Fixed remuneration for 2021 was paid during 2021.
STI performance for 2021 is assessed as part of this report after the end of the 2021 financial year and is paid in the 2022 financial year (provided an
STI is awarded).
LTI performance for 2021 is assessed after the end of the three-year performance period (1 July 2020 to 30 June 2023) and, if determined to have
vested, the corresponding performance rights vest in the 2024 financial year.
5.4 Executive contracts
Remuneration and other terms of employment for Executives are formalised in service agreements. These agreements provide,
where applicable, for the provision of performance related cash payments, other benefits including allowances, and participation in
the St Barbara Limited LTI Plan.
All service agreements with Executives comply with the provisions of Part 2 D.2, Division 2 of the Corporations Act.
St Barbara Annual Report 2021 | 27
Directors’ Report
Remuneration Report (audited)
These service agreements may be terminated early by either party giving the required notice and subject to termination payments
detailed in the agreement. Other major provisions of the agreements relating to remuneration are set out below.
ST BARBARA LIMITED 2021
C Jetson – Managing Director and CEO
Term of agreement – permanent employee, commenced 3 February 2020.
A summary of the material terms of Mr Jetson’s executive employment contract was released to the Australian Securities Exchange
(ASX) on 6 December 2020. Key components of the contract include:
o
Total Fixed Remuneration (TFR) of $1,000,000 to be reviewed annually, inclusive of superannuation and salary sacrifice
benefits
o One-off on-boarding payment of:
100,000 shares six months from the commencement date (issued on 3 August 2020)
(cid:131)
100,000 shares 18 months from the commencement date (issued on 3 August 2021)
(cid:131)
STI of up to 100% of TFR and LTI of up to 75% of TFR as described earlier in Section 5 above.
o
Mr Jetson’s overall remuneration package was determined at the time of his appointment giving regard to relevant market
data. The one-off on-boarding shares provided a non-cash, immediate retention and shareholder-aligned performance incentive
until such time as performance rights associated with the LTI can be issued.
Other than for serious misconduct or serious breach of duty, the Company or Mr Jetson may terminate employment at any time
with 6 months’ notice.
G Campbell-Cowan – Chief Financial Officer
Term of agreement – permanent employee, commenced 1 September 2006.
o
o
TFR of $553,178 to be reviewed annually, inclusive of superannuation and salary sacrifice benefits
STI of up to 75% of TFR and LTI of up to 60% of TFR as described earlier in Section 5 above.
Other than for gross misconduct or for poor performance as judged by the Company in its absolute discretion, the Company may
terminate the employment at any time with payment of a termination benefit equal to 8 months’ notice. Mr Campbell-Cowan may
terminate employment at any time with 6 weeks’ notice.
Mr Campbell-Cowan is leaving the Company to pursue other opportunities and will remain with the Company until 10 September
2021. See ASX announcement on 5 July 2021 relating to CFO transition.
E Spencer – Chief Operating Officer
Term of agreement – permanent employee, commenced 2 November 2020.
o
o
TFR of $625,000 to be reviewed annually, inclusive of superannuation and salary sacrifice benefits
STI of up to 75% of TFR and LTI of up to 60% of TFR as described earlier in Section 5 above.
Mr Spencer’s remuneration package was determined at the time of his appointment in November 2020, based on the relevant
market data for candidates with similar credentials and experience.
Other than for gross misconduct or for poor performance as judged by the Company in its absolute discretion, the Company may
terminate the employment at any time with payment of a termination benefit equal to 6 months’ notice. Mr Spencer may terminate
employment at any time with 6 months’ notice.
28 | St Barbara Annual Report 2021
ST BARBARA LIMITED 2021
Directors’ Report
Remuneration Report (audited)
6. Looking ahead to FY22
There are no significant structural changes planned for FY22 in relation to Fixed Remuneration or the STI, however, there will be a
rebalancing of the measures in the FY22 LTI with the introduction of a strategic component, a measure addressing the Replenishment
of Reserves. The introduction of this measure is a result of a review undertaken by the Board in FY21, to align long-term measures
with the business strategy and focus over the coming years.
The Board is confident that the revised LTI is aligned to the creation value for shareholders and our guiding principles (see Section
4) and continues to seek a balance between rewarding and retaining our Executives and recognising the interests of shareholders.
Fixed remuneration
There will be no increases to Fixed Remuneration for Executive KMP in FY22.
The Managing Director and CEO’s Fixed Remuneration will remain at $1,000,000 per annum, inclusive of superannuation.
STI FY22
There will be no change to the STI design in FY22. The Group measures have been set and are detailed below. The weighting
between Group Measures and Individual measures will remain as 80/20.
Group Measure
Weighting
Group Safety
Group Gold
Production
AISC
LTI FY22
30%
40%
30%
Performance rights to be granted to KMP in respect of the 2022 financial year (FY22 Performance Rights) will be offered pursuant to
the terms of the Rights Plan approved by the Board on 22 September 2015 and the performance conditions set out below.
Subject to service conditions, the proportion of the FY22 Performance Rights that vest will be determined in accordance with the LTI
measures described below:
Measure
Weighting
Rationale
Relative TSR
50%
(adjusted from 67%)
Includes being subject to a positive TSR Gateway. Ensures alignment of
remuneration outcomes for Executives with the shareholder experience over a
three-year period. The primary LTI performance measure of relative total
shareholder return means that LTI awards will not increase merely due to an
increase in gold price, but only on better than average industry performance.
ROCE
Reserves
Replenishment
30%
(adjusted from 33%)
Like all mining companies St Barbara is a capital intensive business and ROCE
measures the Company’s profitability and capital management efficiency.
20%
(new)
Critical driver of long-term sustainability of the Company. Ensures long-term
resource quantity and value, no reduction in life of mine and quality of tenements.
The LTI opportunity for Executives or the vesting schedule for relative TSR or ROCE and the Reserves Replenishment measure will
be assessed by the Board at the end of the performance period, based on the FY21 baseline.
The proportion of the FY22 Performance Rights that vest will be influenced by the Company’s TSR relative to the comparator group
over the three-year vesting period commencing 1 July 2021 and ending on 30 June 2024 as outlined below:
Relative TSR Performance
Below 50th percentile
50th percentile
Between 50th & 75th percentiles
75th percentile and above
% Contribution to the Number of Rights to Vest
0%
50%
Pro-rata from 50% to 100%
100%
For ROCE, the margins above the Company’s WACC for vesting to occur are sufficiently challenging, based on historical performance
and near-term forecasts over the three-year period.
St Barbara Annual Report 2021 | 29
Directors’ Report
Remuneration Report (audited)
Return on Capital Employed (ROCE)
% Contribution to the Number of Rights to Vest
ST BARBARA LIMITED 2021
Less than or equal to the average annual weighted average cost of
capital (WACC) over the three year period commencing on 1 July 2021
WACC (calculated as above) + 3%
WACC (calculated as above) + between 3% and 7%
WACC (calculated as above) + 7%
0%
50%
Pro-rata from 50% to 100%
100%
Reserves Replenishment measures long-term sustainability of the Company. This is a new measure which the Board has included
for the FY22 LTI.
Reserves Replenishment
% of the performance rights that vest will be determined based on the
Company’s replenishment of Ore Reserves net of production over the
three-year period commencing on 1 July 2021 as outlined below:
Zero growth/depletion replaced
0% of performance rights to vest
Depletion replaced plus 10% growth
50% of performance rights to vest
Depletion replaced plus 20% growth
100% of performance rights to vest
The Peer Group for measuring TSR performance will include two North American companies. The Peer Group comprises 14
companies that are of a similar size (up to $5 billion market capitalisation) and complexity, with operations and geographic footprint
similar to St Barbara.
FY22 TSR Peer Group
Alamos Gold Inc. (AGI)
Ramelius Resources (RMS)
Coeur Mining Inc. (CDE)
Regis Resources Limited (RRL)
Bellevue Gold Limited (BGL)
Resolute Mining Limited (RSG)
Capricorn Metals Limited (CMM)
Silver Lake Resources Limited (SLR)
Gold Road Resources Limited (GOR)
SSR Mining Inc (SSR)
OceanaGold Corp (OGC)
West African Resources (WAF)
Perseus Mining Limited (PRU)
Westgold Resources Limited (WGX)
Non-Executive Director Remuneration
There will be no increase to Non-Executive Director Fees or Committee Fees in FY22. There have been no increases to Director
Fees or Committee Fees since FY19. As fees are inclusive of superannuation, changes to the superannuation guarantee to 10% will
not have any impact on overall fees paid. The Non-Executive Director Equity Plan, adopted by the Board in FY21, with the primary
objective to facilitate the acquisition of shares by the Group’s Non-Executive Directors, will remain in place.
Refer to Section 9.3 for more detail on the Non-Executive Director Equity Plan.
30 | St Barbara Annual Report 2021
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
7. Relationship between Group performance and remuneration - past five years
The Board has regard to the overall performance of the Group over a number of years in assessing and ensuring proper alignment
of the performance linked “at risk” remuneration framework to deliver fair and proper outcomes consistent with the Group’s
performance.
Full details of the Group’s operational and financial performance are set out in the Directors’ Report immediately preceding the
Remuneration Report, and in the Financial Report, immediately following the Remuneration Report. For convenience, a summary of
key operating and financial measures is reproduced in the Remuneration Report.
In assessing the Group’s performance and shareholder return, consideration is given to the following measures in respect of the
current financial year and the previous four financial years.
Earnings
Sales revenue
EBITDA
2021
2020
2019
2018
2017
740,247
827,726
650,321
679,204
641,702
(63,001)
338,762
274,810
345,514
293,302
Statutory net profit/(loss) after tax
(176,596)
128,230
144,163
226,998
157,572
Underlying net profit/(loss) after tax1
80,628
108,472
141,728
201,892
160,366
Table 4: Five-year financial performance ($’000)
The table below provides the share price performance of the Group’s shares in the current financial year and the previous four
financial years.
Share price history
Period end share price
(cid:120)
(cid:120)
Closing price on last trading day
10-day VWAP used for Relative Total
Shareholder Return (RTSR) and Employee
Rights pricing
Dividends paid and declared for financial year 2F
2
Average share price for the year
Market capitalisation
Table 5: Five-year share price history ($/share)
2021
2020
2019
2018
2017
1.71
1.77
0.06
2.56
3.15
3.151F
1
0.08
2.83
2.94
2.91
0.08
4.01
4.83
4.92
0.12
3.58
2.91
2.89
0.06
2.71
$1.21 B
$2.20 B
$2.05 B
$2.51 B
$1.45 B
During the 2021 financial year, the Group’s daily closing share price ranged between $1.70 to $3.98 per share (2020 financial year:
$1.62 to $4.06 per share).
The table below provides the percentage of performance linked remuneration awarded to Executives in the current financial year and
the previous four financial years. LTI earned in 2021 relates only to Mr Campbell-Cowan, as Mr Jetson and Mr Spencer were not
participants in the FY19 LTI.
Performance-linked remuneration
% of maximum potential STI earned
% of maximum potential LTI earned
Table 6: Five-year performance-linked remuneration history
2021
0%
33%
2020
34%
33%
2019
60%
33%
2018
2017
84%
100%
90%
100%
1 10-day VWAP coincidentally equalled close price on 30 June 2020. 10 day close price ranged between $2.99 and $3.31.
2
Interim and final dividend allocated to relevant financial year (e.g.: FY20 interim and final dividends allocated to 2020 (i.e. FY20)). Fully franked unless otherwise
noted.
St Barbara Annual Report 2021 | 31
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
koz
400
300
200
100
0
Gold Production
Total Recordable Injury Frequency Rate3
6
5
4
3
2
1
0
2017
2018
Gwalia
2019
Simberi
2020
2021
Atlantic
2017
2018
2019
2020
2021
Figure 6: Five-year gold production history
Figure 7: Five-year TRIFR history
8. FY21 Executive remuneration outcomes and disclosures
8.1 How the STI is calculated
The STI is an annual “at risk” component of remuneration for Executives. It is payable based on performance against key measures
set at the beginning of the financial year.
The proportion of the STI earned is calculated by adding the average result of the Group targets with the individual’s performance
outcome. The overall STI for each KMP are weighted to 80% Group targets and 20% individual targets. Group and individual targets
are established by reference to the Group Strategy and those measures that are priority for the Company during the year. The Safety
component of the Group Measures is subject to a “no fatalities” gateway. This portion of the STI will be assessed as zero (or below
threshold) in the event of a fatality.
The net amount of any STI after allowing for applicable taxation, is normally payable in cash, however, the Board retains discretion
to pay some or all of the STI in shares.
The calculation of STI earned can be summarised as follows:
STI earned =
STI value at risk x [(80% x overall Group STI performance) plus (20% x Individual performance outcome)]
8.2 FY21 Group STI measure outcomes
The Group STI Measures were assessed for the financial year ended 30 June 2021 with outcomes as shown below.
STI Measure
Target
Weighting
Result
% of max.
achieved
Threshold
Target
Max
0%
25%
50%
75%
100
%
(a) Group Safety –
Recordable
Injuries
Performance Gateway of
no fatalities.
11 Recordable Injuries3F
1
(b) Group Gold
production
425koz
(c) Group AISC
A$1,494/oz.
(d) Exploration
Define near mine
resources at Simberi
(100koz Au) and Leonora
(200koz Au) to be
assessed as feasible to
be included in near term
production profile;
advance a Canadian
brownfields target to near
Inferred status (100koz
Au).
30%
30%
30%
10%
20 Recordable
Injuries recorded with
a fatality at Simberi
Operations
Below threshold (16)
327koz produced,
Below threshold
(375koz)
A$1,611/oz.
Greater than
threshold of
A$1,510/oz.
Board assessment
against objectives,
over threshold but
less than target
0%
0%
0%
60%
Overall Group STI Performance
6%
1 Recordable Injury (RI) includes fatalities, lost time injuries, medical treatment injuries. It does not include first aid injury.
32 | St Barbara Annual Report 2021
Directors’ Report
Remuneration Report (audited)
Table 7: 2021 Group STI performance
ST BARBARA LIMITED 2021
8.3 Individual Performance outcomes
For 2021, the Board determined the personal component of Executive’s STI by their individual contribution to the Group’s strategy
and growth objectives. The outcome of the assessment is included in Table 8 on the following page. Some of the detailed measures
and outcomes assessed are commercially sensitive and are described below in general terms only.
Summary of Executive individual STI performance assessed by Board
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
Review and renewal of longer-term Group strategy
Leadership and oversight through the ongoing evolving COVID-19 pandemic, responding to the various Government restrictions, and
management of the Group’s COVID-19 Management framework
Set up of the Group-wide transformation program including planning, target setting and organisation health index
Leadership and oversight of permitting of projects in Atlantic including engagement with community and government agencies
Continued, structured identification and evaluation of multiple inorganic growth opportunities worldwide
Leadership and oversight of organic growth projects including the Leonora Province Plan, progression of the Simberi Sulphide Project and
sequencing of Atlantic growth projects
Independently measured success in advancing values-based organisational culture and employee engagement
8.4 Board discretion not to award STI for FY21
Despite the key achievements in the year and the efforts of the Executives and employees across the Group during FY21, the Board
exercised its discretion and resolved not to award any STI payments to Executives (current and former) for FY21. The Board believes
this is a prudent decision and firmly aligns the outcomes for Executives with the experience and expectations of all our stakeholders.
8.5 STI outcomes for FY21
The table below describes the STIs available to and achieved by Executives during the year. Amounts shown as “Actual STI” represent
the amounts accrued in relation to the 2021 financial year, based on achievement of the specified performance criteria. No additional
amounts vest in future years in respect of the STI plan for the 2021 financial year.
Pro-
rata
Type
Maximum potential STI Actual STI
Awarded
Weighted
Group
Component
Weighted
Individual
Component
% of maximum
Executive
months
Target
$
1
Stretch4F
$
C Jetson
G Campbell-Cowan
2
E Spencer5F
12
12
7
Table 8: FY21 STI Outcomes
Standard
500,000
1,000,000
Standard
248,930
497,860
Standard
281,250
562,500
$
0
0
0
%
6
6
6
%
0
0
0
Earned
Forfeited
0
0
0
100
100
100
1
2
Inclusive of STI “Target”.
Pro-rated for time served in the KMP role from 2 November 2020
St Barbara Annual Report 2021 | 33
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
8.6 Performance linked remuneration – LTI outcomes
The three-year performance period for the FY19 Performance Rights was 1 July 2018 to 30 June 2021.
Selected highlights of the Group’s performance during the three-year performance period from 1 July 2018 to 30 June 2021 are set
out below:
Share price (10-day VWAP)
$
$1.77
$2.89
-$1.12
-39% TSR inc $0.28 dividends paid during
2
period7F
30 June 2021
30 June 20186F
1
Change
Change (%)
Dividend declared for financial
year
cents
3
$0.068F
$0.06
$0.00
Market Cap
EBITDA
Cash and deposits
4
Net cash9F
Safety
Reserves
Resources
Table 9: Three-year performance
$B
$M
$M
$M
TRIFR1
Moz
Moz
$1.21 B
$(63)M
$133 M
$24 M
3.9
6.2
13.1
$1.45 B
-$0.24 B
$293 M
-$356 M
$226 M
-$93 M
$160 M
-$136 M
1.2
4.3
9.6
+2.7
+1.9
+3.5
Absolute performance over
FY19 LTI 3 year vesting period
2018
2019
2020
2021
SBM
$5.00
$4.00
$3.00
$2.00
$1.00
$-
XGD
A$
gold
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
200%
150%
100%
50%
0%
Relative performance over
FY19 LTI 3 year vesting period
0%
-17%
-122%
-4%
-85%
225% increase
+44%
+36%
140%
125%
36%
2018
2019
2020
2021
ASX:XGD
Source: IRESS, Refinitiv Eikon
Gold Price
(A$/oz)
SBM
(10 day VWAP)
Excludes dividends
SBM
(10 day VWAP)
Source: IRESS, Refinitiv Eikon
ASX:XGD
Gold Price
(A$/oz)
Excludes dividends
A$M
3,000
2,500
2,000
1,500
1,000
500
0
Market cap over
FY19 LTI 3 year vesting period
ASX: SBM share price
FY19 LTI vsting period
-$1,303M
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2018
2019
2020
2021
decrease
2018 to 2021
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
M'Cap
Source: Refinitive Eikon
SBM
Figure 8: Five-year LTI-related performance history
1
30 June 2018 figures used as ‘starting’ balances for the three-year performance period from 1 July 2018 to 30 June 2021 (i.e. the corresponding Notice of 2018 Annual General Meeting notes
TSR for the period to be calculated from ‘the 10 day VWAP calculation up to, and including, the last business day of the financial period immediately preceding the period that the performance
rights relate to’.
2 Excludes $0.02 final fully-franked dividend announced 26 August 2021 in respect of the 2021 financial year
Includes $0.02 final fully-franked dividend announced 26 August 2021 in respect of the 2021 financial year.
3
4 Net cash is cash and cash equivalents less interest bearing liabilities.
34 | St Barbara Annual Report 2021
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
8.7 Calculation of the number of FY19 Performance Rights vested in 2021
The partial vesting of the FY19 LTI relates to Mr Campbell-Cowan and former KMPs Mr Vassie and Mr Cole. Mr Jetson and Mr
Spencer were not participants in the FY19 LTI.
33% of FY19 Performance Rights were assessed and approved as vested based on ROCE performance and 67% lapsed due to not
meeting the positive TSR gateway over the three-year performance period.
The Performance Rights vested represent less than 0.03% of total shares on issue at 30 June 2021. The FY19 rights were issued in
November 2018 at a 10-day VWAP price calculated under the Rights Plan Rules and Notice of 2018 Annual General Meeting of $4.92
each. No Performance Rights have been deferred for retesting in a subsequent financial year.
Proportion of rights to vest
Nil
(0%)
Min
(50%)
Max
(100%)
The FY19 Performance Rights were assessed as follows:
(a)
(b)
Weighting:
Actual score:
Calculation:
Weighting:
Actual ROCE:
Calculation:
(c)
Combined score:
RTSR
67%
TSR of (59.5%) 6th percentile of
comparator group (details below)
0% (failed to meet positive TSR gateway)
ROCE
33%
14.1% (details below)
100% (for achieving above upper
threshold of WACC 4.7% +7.0% =
11.7%)
(0% x 67%)
+ (100% x 33%)
= 33%
Table 10: FY19 Performance Rights Assessment
8.7 (a) RTSR calculation for FY19 Performance Rights
The result of the RTSR component of the FY19 Performance Rights for the period 1 July 2018 to 30 June 2021 was:
Relative TSR Performance
Percentage of Performance Rights to
vest
Result
Below 50th percentile
50th percentile
0%
50%
Between 50th & 75th percentiles
Pro-rata from 50% to 100%
75th percentile and above
100%
St Barbara achieved a TSR of (59.5%) for the period and
ranked at the 6th percentile of the comparator group of
companies for the period. As a result, TSR did not meet the
positive TSR performance gateway and all Performance
Rights linked to this measure have lapsed.
TSR over LTI vesting period
ROCE over LTI vesting period
50th percentile
PONMLKJIHGFEDCB
MA
B
S
250%
200%
150%
100%
50%
0%
-50%
-100%
50%
40%
30%
20%
10%
0%
41%
13%
2019
27%
11%
2020
14%
12%
2021
ROCE (3 yr)
100% threshold
Figure 9: Chart of TSR results for comparator companies
Figure 10: Chart of ROCE (calculated on the next page)
St Barbara Annual Report 2021 | 35
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
The comparator group of companies for FY19 Performance Rights comprised:
Alacer Gold Corp. (ASX: AQG)10F
AngloGold Ashanti Limited (ASX: AGG)
1
Newcrest Mining Limited (ASX: NCM)
Northern Star Resources Ltd (ASX: NST)
Dacian Gold Limited (ASX: DCN)
OceanaGold Corporation (ASX: OGC)
Evolution Mining Limited (ASX: EVN)
Gold Road Resources Limited (ASX: GOR)
Perseus Mining Limited (ASX: PRU)
Ramelius Resources Limited (ASX: RMS)
Regis Resources Limited (ASX: RRL)
Resolute Mining Limited (ASX: RSG)
Saracen Mineral Holdings Limited (ASX:
SAR)11F
Silver Lake Resources Limited (ASX: SLR)
Tribune Resources Limited (ASX: TBR)
Westgold Resources Limited (ASX: WGX)
2
8.7 (b) ROCE calculation for FY19 Performance Rights
The result of the ROCE component over the three-year vesting period commencing 1 July 2018 and ending on 30 June 2021 was:
ROCE
Percentage of Performance
Rights to vest
Result
Less than or equal to the average annual
WACC over the three-year period commencing
on 1 July 2018
0%
WACC (calculated as above):
50%
+ 3%
+ between 3% and 7%
+ 7%
Table 11: ROCE vesting
Pro-rata from 50% to 100%
100%
St Barbara achieved a ROCE for the period of 14.4% (see
calculation below), which is above the upper threshold of
WACC for the period of 4.7% +7.0% = 11.7%.
As a result, 100% of the Performance Rights linked to ROCE
vested.
ROCE is calculated as EBIT before significant items expressed as a percentage of average total capital employed (net debt and total
equity)12F
3.
Measure
EBIT (excluding significant items)
Capital employed – opening balance
Total equity
Net debt13F4
Capital employed – opening balance
Capital employed– closing balance
Total equity (before impairment)
Net debt3
Capital employed– closing balance
Capital employed – average for period
ROCE (EBIT ÷ average total capital employed) for year
ROCE average of the 3 years in the vesting period
WACC average of the 3 years in the vesting period
Table 12: ROCE calculation
2021
2020
2019
111,849
173,503
199,032
1,348,977
_____ -
1,348,977
1,370,891
_____ -
1,370,891
1,359,934
9.1%
14.4%
4.7%
1,257,023
_____ -
1,257,023
1,348,977
_____ -
1,348,977
1,303,000
13.3%
26.6%
4.3%
665,870
_____ -
665,870
1,257,023
_____ -
1,257,023
961,447
20.7%
40.6%
5.6%
WACC is calculated using the widely available formula of (relative weight of equity x required rate of return) + (relative weight of debt
5. In this instance, WACC is calculated on a pre-tax basis to match the pre-tax nature of EBIT. The full calculation of
x cost of debt)14F
WACC is not disclosed as it is considered to be commercial in confidence, however, the primary variables include:
Reported balance sheet figures for debt and equity;
(cid:120)
(cid:120) Government 10-year bond rate as proxy for risk free premium; and
(cid:120)
ASX All Ordinaries Index as proxy for market portfolio and to determine relative volatility.
On this basis, average WACC of the three-year measurement period commencing 1 July 2018 and ending on 30 June 2021 is 4.7%
(2020 financial year: 4.3%).
1 Alacer Gold Corp. (AQG) has been replaced with SSR Mining (SSR) as Alacer Gold Corp. was merged with SSR Mining
2 Saracen Mineral Holdings Limited (SAR) was delisted after merging with Northern Star (NST)
3 ROCE is not an IFRS measure and is calculated in the table above.
4 Net debt comprises cash and cash equivalents, interest bearing borrowings – current and interest bearing borrowings – non-current. The minimum net debt figure applied to the calculation is
nil (i.e. where the Company is in a net cash position).
5 WACC is not an IFRS measure. The above parameters can be used to calculate WACC using commonly available formula.
36 | St Barbara Annual Report 2021
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
8.8 Allocation of sign-on awards for the Managing Director and CEO
As disclosed in the FY20 Remuneration Report and as detailed in Section 5.4, Mr Jetson received a one-off on-boarding payment of
two tranches of 100,000 shares in the Company. The first tranche of that award was allocated in August 2020 (see ASX
announcement dated 3 August 2020) and the remaining tranche was allocated on 3 August 2021 (refer to ASX announcement dated
3 August 2021).
8.9 Rights Vested and On Issue
There are three LTI tranches relevant to the 2021 financial year, which are summarised below:
Grant year /
tranche name
Description
FY19 Performance
Rights
FY20 Performance
Rights
FY21 Performance
Rights
Granted as LTI remuneration in
2019 and disclosed in the
2018 Notice of AGM and
2019 Remuneration Report
Granted as LTI remuneration in
2020 and disclosed in the
2019 Notice of AGM and
2020 Remuneration Report
Granted as LTI remuneration in
2021 and disclosed in the
2020 Notice of AGM and
2021 Remuneration Report
Table 13: LTI tranches relevant to 2021 financial year
The three LTI tranches are illustrated on a timeline below:
Performance
Conditions
Weighting
RTSR
67%
ROCE
33%
Performance
Period
&
Status
1 July 2018
to 30 June 2021
Assessed as at 30 June
2021 and reported above
RTSR
67%
ROCE
33%
1 July 2019
to 30 June 2022
To be tested June 2022
RTSR
67%
ROCE
33%
1 July 2020
to 30 June 2023
To be tested June 2023
2019
2020
2021
2022
2023
Financial year
FY19 Performance Rights
3-yr vesting period, tested June 2021
FY20 Performance Rights
3-yr vesting period, to be tested June 2022
FY21 Performance Rights
Issued in FY21
3-yr vesting period, to be tested June 2023
Figure 14: Current LTI tranche timeline
St Barbara Annual Report 2021 | 37
Directors’ Report
Remuneration Report (audited)
ST BARBARA LIMITED 2021
8.10 Summary of rights on issue and vested in 2021
The number of rights over ordinary shares in the Company held directly, indirectly or beneficially during the financial year by each
Executive, including their related parties, and the number of rights that vested, are set out below:
Grant Date
Grant
year /
tranche
name
Price on
issue
date
Held at
1 July 2020
Granted as
compensati
on during
the year
Vested
during the
year
1
15F
Forfeited
during the
year
Held at
30 June
2021
2
16F
Financial
year in
which
grant may
vest
C Jetson
FY20
28 Oct 2020
FY21
28 Oct 2020
E Spencer
FY21
2 Nov 2020
G Campbell-Cowan
FY19
24 Oct 2018
FY20
27 Nov 2019
FY21
24 Jul 2020
Former Executives
3
R Vassie17F
FY19
24 Oct 2018
FY20
27 Nov 2019
R Cole
FY19
24 Oct 2018
FY20
27 Nov 2019
FY21
24 Jul 2020
Table 15: Summary of rights on issue and vested in 2021
8.11 Rights granted in 2021
$2.91
$3.15
$3.15
$4.92
$2.91
$3.15
$4.92
$2.91
$4.92
$2.91
$3.15
-
-
-
107,388
238,095
123,809
-
-
-
-
-
-
107,388
238,095
2022
2023
123,809
2023
64,524
111,275
-
-
-
105,367
(21,293)
(43,231)
-
-
-
-
-
111,275
105,367
132,347
168,127
48,829
88,748
-
-
-
-
84,036
(43,675)
(88,672)
-
-
-
168,127
(16,114)
(32,715)
-
-
-
-
88,748
(46,279)
37,757
2021
2022
2023
2021
2022
2021
2022
2023
Details on rights over ordinary shares in the Company that were granted as remuneration to each Executive in the 2021 financial year
are as follows:
Grant year /
tranche
identifier
Grant date
Number of
performance
rights granted
during 2021
Issue price per
performance
right
C Jetson19F
5,
6
20F
FY21
FY20
28/10/2020
28/10/2020
G Campbell-Cowan
FY21
24/07/2020
E Spencer
FY21
2/11/2020
Former Executives
238,095
107,388
105,367
123,809
$3.15
$2.91
$3.15
$3.15
Expiry date
30 Jun 2023
30 Jun 2022
30 Jun 2023
30 Jun 2023
Fair value per
performance right
at grant date
4
($ per share)18F
$1.45
$2.57
$2.47
$1.45
R Cole
FY21
24/07/2020
84,036
$3.15
30 Jun 2023
$2.47
Table 16: Rights granted in 2021
8.12 Details of FY21 Performance Rights granted during 2021
FY21 Performance Rights were granted under the St Barbara Limited Rights Plan and details of the performance conditions were set
out in the Notice of 2020 Annual General Meeting, with the grant of Rights for the Managing Director and CEO approved by
shareholders at the meeting.
1
These rights were determined by the Board on 26 August 2021 to have vested as at 30 June 2021 and are pending issue as shares as at the date of this report. The value of the shares at time of issue
will be disclosed in an ASX release as the five-day volume weighted average price up to and including the day prior to issue. The five-day volume weighted average price for shares issued on 21 August
2
3
4
2020 to satisfy FY18 rights exercised on 21 August 2020 was $3.46 per share.
The vesting of rights held at 30 June 2021 is subject to future performance conditions.
Former Managing Director & Chief Executive Officer (ceased as MD & CEO 2 February 2020, ceased as a KMP 31 March 2020).
For accounting purposes, the estimated fair value of performance rights at grant date was determined using a Black-Scholes valuation to which a Monte Carlo simulation was applied to determine the
probability of the market conditions associated with the rights being met. Fair values at grant date are based on the prevailing market price on the date the performance right is granted. The assessed
fair value at the grant date of performance rights is allocated equally over the period from grant date to vesting date. This methodology complied with the requirements of Australian Accounting standard
AASB 2 Share-based Payments.
5
6
The granting of FY20 and FY21 Rights for Mr Jetson were approved by shareholders at the AGM on 28 October 2020.
FY20 Rights for Mr Jetson were issued under the same terms as FY20 Rights for other KMP, which were disclosed in the FY20 Remuneration Report.
38 | St Barbara Annual Report 2021
ST BARBARA LIMITED 2021
Directors’ Report
Remuneration Report (audited)
Key Features of FY21 Performance Rights
Performance conditions
Other conditions
Issue price
Measurement period
Vesting date
8.12 (a) RTSR
TSR (67% weighting);
ROCE in excess of the weighted average cost of capital (33%
weighting).
Continuing employment
10-day VWAP at start, 30 June 2020, $3.15
1 July 2020 to 30 June 2023
30 June 2023
RTSR is measured against a defined peer group of companies which the Board considers compete with the Company for the same
investment capital, both in Australia and overseas, and which by the nature of their business are influenced by commodity prices and
other external factors similar to those that influence the TSR performance of the Company.
The comparator group of companies for FY21 Performance Rights comprises the largest 20 companies in the S&P ASX All Ordinaries
Gold Index (ASX: XGD) at the start of the performance period and is set out in the table below. At the discretion of the Board, the
composition of the comparator group may change from time to time.
FY21 Comparator Group
Alacer Gold Corp (ASX: AQG)21F
1
Perseus Mining Limited (ASX: PRU)
Alkane Resources Limited (ASX: ALK)
Ramelius Resources Limited (ASX: RMS)
AngloGold Ashanti Limited (ASX: AGG)
Red 5 Limited (ASX: RED)
Bellevue Gold Limited (ASX:BGL)
Regis Resources Limited (ASX: RRL)
De Grey Mining Ltd (ASX: DEG)
Resolute Mining Limited (ASX: RSG)
Evolution Mining Limited (ASX: EVN)
Saracen Mineral Holdings Limited (ASX:
SAR)22F
2
Gold Road Resources Limited (ASX:
Silver Lake Resources Limited (ASX: SLR)
GOR)
Newcrest Mining Limited (ASX: NCM)
Tribune Resources Limited (ASX: TBR)
Northern Star Resources Ltd (ASX: NST) West Africa Resources (ASX: WAF)
OceanaGold Corporation (ASX: OGC)
Westgold Resources Limited (ASX: WGX)
The proportion of the FY21 Performance Rights that vest will be influenced by the Company’s TSR relative to the comparator group
over the three-year vesting period commencing 1 July 2020 and ending 30 June 2023 as outlined below:
Relative TSR Performance
% Contribution to the Number of
Performance Rights to Vest
Below 50th percentile
50th percentile
0%
50%
Between 50th & 75th percentiles
Pro-rata from 50% to 100%
75th percentile and above
100%
8.12 (b) ROCE
The proportion of FY21 Performance Rights that vest will be influenced by the ROCE achieved by the Company over the three-year
vesting period commencing 1 July 2020 and ending 30 June 2023.
Return on Capital Employed (ROCE)
% Contribution to the Number of
Performance Rights to Vest
Less than or equal to the average annual weighted average cost
of capital (WACC) over the three-year period commencing on 1
July 2017
WACC (calculated as above) + 3%
0%
50%
WACC (calculated as above) + between 3% and 7%
Pro-rata from 50% to 100%
WACC (calculated as above) + 7%
100%
The outcome of FY21 Performance Rights will be reported in the 2023 Remuneration Report.
1 Alacer Gold Corp. (AQG) has merged with SSR Mining (SSR) since the start of the performance period.
2 Saracen Mineral Holdings Limited (SAR) was delisted after merging with Northern Star (NST).
St Barbara Annual Report 2021 | 39
ST BARBARA LIMITED 2021
Directors’ Report
Remuneration Report (audited)
9. Non-Executive Director Remuneration
9.1 Non-Executive Director remuneration policy
Non-Executive Director fees are reviewed annually by the Board with reference to the responsibilities and time commitment relevant
to the role of Director, Committee memberships and corresponding Chair roles and external advice, including benchmarking, may be
sought as part of the review.
The fee of the Board Chair is determined independently, based on roles and responsibilities in the external market for companies
comparable with St Barbara. The Board Chair is not present at any discussions relating to the determination of his own remuneration.
The level of fees paid to Non-Executive Directors is set by the Board, within the aggregate pool approved by shareholders (which is
$1,200,000 per annum in aggregate, approved by shareholders at the Annual General Meeting in November 2012) and reported to
shareholders in this report each year.
Consistent with Australian corporate governance practice, Non-Executive Directors do not receive performance-based remuneration
to maintain their independence.
9.2 Board and Committee Fees
The remuneration of Non-Executive Directors consists of Director Fees and Committee Fees. Committee Fees are paid in addition
to Director Fees to recognise the additional time commitment required by Non-Executive Directors who serve those committees. The
Board Chair does not receive any additional fees in addition to the Board Chair fee.
The table below summarises the Non-Executive Director fee policy for FY21. All fees are inclusive of superannuation.
Director Fees
Board Chair
Non-Executive Directors
Committee Fees
Committee Chair
Committee Member
Table 17: Board and Committee Fees
$263,340
$106,260
$25,000
$15,000
9.3 Non-Executive Director equity plan
The Board has adopted a Non-Executive Director equity plan with the primary objective to facilitate the acquisition of shares by the
Group’s Non-Executive Directors. The fee-substitution plan enables Non-Executive Directors to nominate a fixed amount of their total
Director’s fee to acquire shares on an ongoing basis, in compliance with the Corporations Law and Securities Dealing Policy
restrictions on Director share trading. The plan operates on a financial year basis, with the number of shares acquired by a Non-
Executive Director determined by the volume-weighted average price of shares traded on the ASX for the period 1 July to 30 April
within each financial year. Shares are acquired on market by an externally administered independent share trust.
During FY21 Ms Gleeson and Ms Loader participated in the Non-Executive Director Equity Plan. See Section 10.2 for information
relating to Non-Executive Director shareholdings and movements.
9.4 FY21 Non-Executive Director statutory remuneration
Cash
1
salary & fees23F
$
240,493
240,493
146,260
132,839
148,571
147,270
151,607
147,270
147,270
147,270
Non-
monetary
benefits
$
-
-
-
-
-
-
-
-
-
-
834,201
815,142
-
-
Superannuation
$
22,847
22,847
-
-
12,689
13,990
9,653
13,990
13,990
13,990
59,179
64,817
Total
$
263,340
263,340
146,260
132,839
161,260
161,260
161,260
161,260
161,260
161,260
893,380
879,959
Name
Year
T C Netscher
S G Dean
K J Gleeson
S E Loader
D E J Moroney
Totals
FY21
FY20
FY21
FY20
FY21
FY20
FY21
FY20
FY21
FY20
FY21
FY20
Table 18: Non-Executive Director Remuneration
1
Inclusive of any participation in the Non-Executive Director Equity Plan.
40 | St Barbara Annual Report 2021
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St Barbara Annual Report 2021 | 41
St Barbara Directors and Financial Report / 30 June 2021
10.2 Key Management Personnel shareholdings
The numbers of shares in the Company held directly, indirectly or beneficially during the year by each Key Management Personnel,
including their related parties, are set out below. There were no shares granted during the year as compensation.
Balance at
the start of
the year
Issued upon
exercised of
employee
rights
Purchased
Sold
Dividend
Reinvestment
Plan
Other
changes
Balance at
the end of
the year
Name
Non-Executive Directors
S G Dean
K J Gleeson
S E Loader
D E J Moroney
T C Netscher
Executives
1
C A Jetson34F
G Campbell-Cowan
E Spencer
Former Executives
-
28,213
30,000
105,438
87,290
-
300
-
-
5,576
18,587
-
-
-
35,024
-
R Cole
18,760
24,938
Table 20: Key Management Personnel Shareholding
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(35,024)
-
(24,000)
-
399
-
-
2,880
-
300
-
650
-
-
-
-
-
-
34,188
48,587
105,438
90,170
2
100,00035F
100,000
-
-
-
3
- 36F
-
4
20,34837F
10.3 Shareholding guidelines for Non-Executive Directors and Executives
The Group encourages Non-Executive Directors, Executives and employees to own shares in St Barbara Limited (subject to the
Group’s Securities Dealing Policy). The Group is not licenced or authorised to provide individuals with financial product advice under
the Corporations Act.
The Group does not specify target volumes for such shareholdings, as it does not know the personal preferences and objectives,
financial situation or risk profile of individuals. The Group acknowledges that gold mining equities would normally only comprise a
small proportion of an individual’s balanced investment portfolio, and that gold mining equities are generally considered to be volatile
and counter-cyclical to economic cycles. Shareholding guidelines are uncommon amongst key peers with which the Group competes
for talent, and would be a disincentive in attracting executives.
The Group acknowledges that, in the absence of share trading prohibitions, KMP generally incur an income tax liability on the market
value of shares issued upon vesting of employee rights under the LTI, and will generally need to sell a portion of their allocated shares
to cover their income tax obligations. Where this occurs, it will be in compliance with the Company’s Securities Dealing Policy.
10.4 Loans to Directors and Executives
There were no loans to Directors or Executives during the 2021 financial year.
1 Appointed as a Director 3 February 2020.
2
Issue of 100,000 fully paid ordinary shares as one-off on-boarding payment to Mr Jetson, MD & CEO, six months from his commencement date, in accordance with his employment contract as
disclosed in ASX announcement dated 6 December 2019.
In addition, 21,292 employee rights were determined by the Board on 26 August 2021 to have vested as at 30 June 2021 and are pending issue as shares as at the date of this report.
In addition, 16,113 employee rights were determined by the Board on 26 August 2021 to have vested as at 30 June 2021 and are pending issue as shares as at the date of this report.
3
4
42 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Indemnification and insurance of officers
The Company’s Constitution provides that, to the extent
permitted by law, the Company must indemnify any person
who is, or has been, an officer of the Company against any
liability incurred by that person including any liability incurred
as an officer of the Company or a subsidiary of the Company
and legal costs incurred by that person in defending an action.
The Constitution further provides that the Company may enter
into an agreement with any person who is, or has been, an
officer of the Company or a subsidiary of the Company to
indemnify the person against such liabilities.
The Company has entered into Deeds of Access, Indemnity
and Insurance with current and former officers. The Deeds
address the matters set out in the Constitution. Pursuant to
those deeds, the Company has paid a premium in respect of
a contract insuring current and former officers of the Company
and current and former officers of its controlled entities against
liability for costs and expenses incurred by them in defending
civil or criminal proceedings involving them as such officers,
with some exceptions where the liability relates to conduct
involving lack of good faith.
During the year the Company paid an insurance premium for
Directors’ and Officers’ Liability and Statutory Liability policies.
The contract of insurance prohibits disclosure of the amount
of the premium and the nature of the liabilities insured under
the policy.
The Company has agreed to indemnify their external auditors,
PricewaterhouseCoopers, to the extent permitted by law,
against any claim by a third party arising from the Company’s
breach of their agreement. The indemnity stipulates that the
Company will meet the full amount of any such liabilities
including a reasonable amount of legal costs.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the
Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to
which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those
proceedings.
No proceedings have been brought or intervened in on behalf
of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
Environmental management
for
St Barbara regards compliance with environmental legislation,
regulations and regulatory instruments as the minimum
performance standard
its operations. The Group’s
operations in Western Australia are subject to environmental
regulation under both Commonwealth and State legislation. In
Papua New Guinea, the Group ensures compliance with the
relevant National and Provincial
legislation and where
appropriate standards or legislation are not available, the
Group reverts to the standard of environmental performance
as stipulated in the Western Australian legislation. In Canada,
the Group is subject to both Federal and Provincial legislation.
A Group-wide Environmental Management System (EMS) has
been implemented to facilitate the effective and responsible
management of environmental issues to the same high
standard across all sites in both Australia and Papua New
Guinea. Adoption of the EMS at all operations has contributed
to further reductions in the number of minor environmental
incidents, and an improvement in internal compliance rates for
environmental audits and inspections. St Barbara reported
and managed two separate environmental compliance issues
during the 2021 financial year. Atlantic Operations received
notification from Nova Scotia Environment (NSE) of legal
proceedings in relation to environmental non-compliances, in
the 2017 to 2020 calendar years period, which were self-
reported by the previous operation’s owner (2017-July 2019)
and St Barbara (2019-2020) to NSE. Atlantic has been
proactively working with NSE to address these matters. At our
Simberi Operations in May, placement of tailings through the
Deep Sea Tailings Placement
(DSTP) pipeline was
suspended when a routine inspection of the pipe, by a remote-
controlled submersible vehicle, discovered significant pipe
damage at a depth of 55 metres. No environmental damage
or pluming of tailings was observed, with environmental
monitoring indicating the pipe was essentially performing
effectively from the shallower depth. A project is underway to
replace the pipe so as to allow compliant resumption of
processing (subject to regulatory approval).
Non-audit services
During the year the Company did employ the auditor to provide
services in addition to their statutory audit duties. Details of the
amounts
auditor,
PricewaterhouseCoopers, for non-audit services provided
during the 2021 financial year are set out in Note 20 to the
consolidated financial statements.
payable
paid
the
or
to
The Board of Directors has considered the position and, in
accordance with the advice received from the Audit & Risk
Committee, is satisfied that the provision of non-audit services
during the year as set out in Note 20 did not compromise the
auditor independence requirements of the Corporations Act
2001 for the following reasons:
(cid:120) All non-audit services were reviewed by the Audit & Risk
Committee to ensure they do not impact the impartiality and
objectivity of the auditor; and
(cid:120) The Audit & Risk Committee annually informs the Board of
the detail, nature and amount of any non-audit services
rendered by PricewaterhouseCoopers during the financial
year, giving an explanation of why the provision of these
services
If
applicable, the Audit & Risk Committee recommends that
the Board take appropriate action in response to the Audit &
Risk Committee’s report to satisfy itself of the independence
of PricewaterhouseCoopers.
is compatible with auditor
independence.
Auditor independence
A copy of the Auditor’s Independence Declaration required
under section 307C of the Corporations Act 2001 is set out on
page 44 and forms part of this Directors’ Report.
St Barbara Annual Report 2021 | 43
Auditor’s Independence Declaration
As lead auditor for the audit of St Barbara Limited for the year ended 30 June 2021, I declare that to
the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of St Barbara Limited and the entities it controlled during the period.
John O'Donoghue
Partner
PricewaterhouseCoopers
Melbourne
26 August 2021
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:23)(cid:23)(cid:3)(cid:82)(cid:73)(cid:3)(cid:28)(cid:20)
44 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Events occurring after the end of the financial
year
Due to the non-cash impairment at 30 June 2021 the Group
was not able to satisfy certain ratio covenants under the terms
of the syndicated facility. As a result, the amount outstanding
on the facility was reclassified from non-current to current
liabilities at the reporting date. Subsequent to year end a
waiver from compliance with the relevant covenants has been
granted by the lenders in accordance with the terms of the
facility.
Subsequent to year end, the directors have declared a fully
franked final dividend in relation to the 2021 financial year of 2
cents per ordinary share, to be paid on 30th September 2021.
A provision for this dividend has not been recognised in the
30 June 2021 consolidated financial statements.
Rounding of amounts
St Barbara Limited is a Company of the kind referred to in
ASIC Corporations (Rounding in Financial/Directors’ Report)
Instrument 2016/191 issued by the Australian Securities and
Investment Commission (ASIC). As a result, amounts in this
Directors’ Report and the accompanying Financial Report
have been rounded to the nearest thousand dollars, except
where otherwise indicated.
This report is made in accordance with a resolution of
Directors.
For and on behalf of the Board
Dated at Melbourne this 26th day of August 2021.
Craig Jetson
Managing Director and CEO
St Barbara Annual Report 2021 | 45
St Barbara Directors and Financial Report / 30 June 2021
Financial Report
Contents
Consolidated Financial Statements
Page
About this report
Consolidated comprehensive income statement
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial
statements
A. Key results
1 Segment information
2 Tax
3 Significant items
4 Earnings per share
5 Dividends
B. Mining operations
6 Property, plant and equipment
7 Deferred mining costs
8 Mine properties and mineral rights
9 Exploration and evaluation
10 Rehabilitation provision
C. Capital and risk
11 Working capital
12 Financial risk management
13 Net debt
14 Contributed equity
D. Business Portfolio
15 Parent entity disclosures
16 Financial assets and fair value of financial
assets
17 Controlled entities
E. Remunerating our people
18 Employee benefit expenses and provisions
19 Share-based payments
F.
Further disclosures
20 Remuneration of auditors
21 Events occurring after the balance sheet
date
22 Contingencies
23 Business combinations
24 Basis of preparation
25 Accounting standards
Signed reports
Directors’ declaration
Independent auditor’s report
Ore Reserves and Mineral
Resources Statements
Shareholder Information
Corporate directory
46 | St Barbara Annual Report 2021
47
46
48
47
49
48
50
49
51
50
52
51
55
54
57
56
58
57
58
57
59
58
61
60
62
61
66
65
67
66
68
67
69
68
74
73
75
74
75
76
75
76
76
77
78
77
79
78
81
80
81
80
81
80
82
81
83
82
83
82
84
83
85
(cid:27)(cid:23)
90
90
99
99
102
102
St Barbara Directors and Financial Report / 30 June 2021
About this report
St Barbara Limited (the “Company” or “Parent Entity”) is a
company limited by shares incorporated in Australia whose
shares are publicly traded on the Australian Stock Exchange.
The consolidated financial statements of the Company as at
and for the year ended 30 June 2021 comprise the Company
and its subsidiaries (together referred to as the “Group”). The
Group is a for-profit entity primarily involved in mining and sale
of gold, mineral exploration and development.
The financial report is a general-purpose financial report,
which has been prepared in accordance with Australian
(including Australian
Accounting Standards
(AASBs)
Interpretations) adopted by
the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001.
Where required by accounting standards comparative figures
have been adjusted to conform to changes in presentation in
the current year. The consolidated financial report of the
International Financial Reporting
Group complies with
Standards
the
interpretations
International Accounting Standards Board.
(IFRSs) and
issued by
The consolidated financial statements have been presented in
Australian dollars and all values are rounded to the nearest
thousand dollars ($000) as specified in the ASIC Corporation
Instrument 2016/191 unless otherwise stated.
The Board of Directors approved the consolidated financial
statements on 25th August 2021.
What’s in this report
St Barbara’s Directors have included information in this report
that
the
to
understanding of the financial statements and the Group.
to be material and relevant
they deem
A disclosure has been considered material and relevant
where:
(cid:120) the dollar amount is significant in size (quantitative);
(cid:120) the dollar amount is significant in nature (qualitative);
(cid:120) the Group’s result cannot be understood without the specific
disclosure; and
(cid:120) it relates to an aspect of the Group’s operations that is
important to its future performance.
Accounting policies and critical accounting judgements and
estimates applied to the preparation of the consolidated
the related
financial statements are presented where
accounting balance or consolidated financial statement matter
is discussed. To assist in identifying critical accounting
judgements and estimates, we have highlighted them in the
following manner:
Accounting judgements and estimates
St Barbara Annual Report 2021 | 47
St Barbara Directors and Financial Report / 30 June 2021
Consolidated comprehensive income statement
for the year ended 30 June 2021
Operations
Revenue
Mine operating costs
Gross profit
Interest revenue
Other income
Exploration expensed
Corporate costs
Royalties
Depreciation and amortisation
Expenses associated with acquisition
Share based payments
Other expenses
Impairment loss on assets
Operating (loss)/profit
Finance costs
Net foreign exchange gain/(loss)
Gold instrument fair value adjustments
(Loss)/profit before income tax
Income tax benefit/(expense)
Net (loss)/profit after tax
(Loss)/profit attributable to equity holders of the Company
Other comprehensive income
Items that will not be reclassified to profit or loss:
Changes in fair value of financial assets
Income tax on other comprehensive (loss)/income
Items that may be reclassified to profit or loss:
Foreign currency translation differences - foreign operations
Other comprehensive loss net of tax(1)
Notes
1
1
1
6
3
19
3
3
13
3
2
Consolidated
2021
$'000
2020
$'000
740,247
827,726
(371,837)
(384,820)
368,410
442,906
1,103
1,113
(34,596)
(26,621)
(25,764)
2,306
56
(23,596)
(27,156)
(27,174)
(187,870)
(165,366)
-
(1,765)
(22,695)
(349,296)
(7,538)
(2,472)
(4,735)
-
(277,981)
187,231
(7,996)
5,316
22,897
(257,764)
81,168
(176,596)
(176,596)
(11,976)
3,473
(6,809)
(15,312)
(13,255)
(2,377)
(9,152)
162,447
(34,217)
128,230
128,230
8,763
(2,482)
(7,347)
(1,066)
Total comprehensive income attributable to equity holders of the Company
(191,908)
127,164
Earnings per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
4
4
(25.03)
18.33
(24.91)
18.24
(1) Other comprehensive income comprises items of income and expense that are recognised directly in reserves or equity. These items are not recognised in the consolidated income statement in
accordance with the requirements of the relevant accounting standards. Total comprehensive income comprises the result for the year adjusted for the other comprehensive income.
The above consolidated comprehensive income statement should be read in conjunction with the notes to the consolidated financial statements.
48 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Consolidated balance sheet
As at 30 June 2021
Notes
Consolidated
2021
$'000
2020
$'000
Assets
Current assets
Cash and cash equivalents
Financial assets
Trade and other receivables
Inventories
Deferred mining costs
Total current assets
Non-current assets
Inventories
Property, plant and equipment
Financial assets
Trade and other receivables
Deferred mining costs
Mine properties
Exploration and evaluation
Mineral rights
Deferred tax assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Interest bearing liabilities
Rehabilitation provision
Other provisions
Derivative financial liabilities
Current tax liability
Total current liabilities
Non-current liabilities
Interest bearing liabilities
Rehabilitation provision
Deferred tax liabilities
Derivative financial liabilities
Other provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
13
16
11
11
7
11
6
16
11
7
8
9
8
2
11
13
10
18
12
13
10
2
12
18
14
The above consolidated balance sheet should be read in conjunction with the notes to the consolidated financial statements.
133,370
405,541
-
40,301
86,628
2,987
5,999
11,225
87,401
2,039
263,286
512,205
40,077
33,335
344,314
324,279
42,163
42,906
4,250
3,173
206,189
153,943
569,230
9,136
-
4,386
172,165
149,949
922,118
13,670
1,372,475
1,662,808
1,635,761
2,175,013
69,583
93,543
8,160
13,931
8,750
14,538
66,970
12,199
354
19,922
5,760
10,893
208,505
116,098
15,709
61,701
319,567
53,162
228,555
303,584
5,338
2,286
31,688
1,937
313,589
709,938
522,094
826,036
1,113,667
1,348,977
1,434,573
1,422,290
(50,137)
(35,091)
(270,769)
(38,222)
1,113,667
1,348,977
St Barbara Annual Report 2021 | 49
St Barbara Directors and Financial Report / 30 June 2021
Consolidated statement of changes in equity
for the year ended 30 June 2021
Note
19
5
19
5
Balance at 1 July 2019
Transactions with owners of the Company recognised directly
in equity:
Share-based payments expense
Performance rights issued/(expired)
Dividends paid
Dividends reinvested
Sale of shares in financial asset
Total comprehensive income for the year
Profit attributable to equity holders of the Company
Other comprehensive gain/(loss)
Balance at 30 June 2020
Transactions with owners of the Company recognised
directly in equity:
Share-based payments expense
Performance rights issued/(expired)
Dividends paid
Dividends reinvested
Sale of shares in financial asset
Total comprehensive income for the year
Profit attributable to equity holders of the Company
Other comprehensive loss
Balance at 30 June 2021
Consolidated
Contributed
Equity
$'000
Foreign
Currency
Translation
Reserve
$'000
Other
Reserves
$'000
Accumulated
Losses
$'000
Total
$'000
1,402,675
(45,671)
12,078
(112,059)
1,257,023
-
1,310
-
18,305
-
-
-
-
-
-
-
-
-
2,472
(3,849)
-
-
945
2,367
4,839
-
(2,539)
(37,510)
(37,510)
(18,305)
(945)
-
-
-
128,230
128,230
(7,347)
6,281
-
(1,066)
1,422,290
(53,018)
17,927
(38,222)
1,348,977
-
1,284
-
10,999
-
-
-
-
-
-
-
-
-
1,765
(1,094)
-
-
(405)
-
-
1,765
190
(45,357)
(45,357)
(10,999)
405
-
-
-
(176,596)
(176,596)
(6,809)
(8,503)
-
(15,312)
1,434,573
(59,827)
9,690
(270,769)
1,113,667
The above consolidated statement of changes in equity should be read in conjunction with the notes to the consolidated financial statements.
50 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Consolidated cash flow statement
for the year ended 30 June 2021
Cash Flows From Operating Activities:
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Payments for exploration and evaluation
Interest received
Interest paid
Borrowing cost
Net income tax payments
Notes
Net cash inflow from operating activities
13
Cash Flows From Investing Activities:
Movement in deposits held to maturity
Proceeds from sale of property, plant and equipment
Payments for property, plant and equipment
Payments for development of mining properties
Payments for exploration and evaluation
Divestment/(investments) in shares
MRRI acquisition (2020: Atlantic Gold Corporation)
Cash acquired
Net cash outflow from investing activities
Cash Flows From Financing Activities:
Movement in restricted cash
Dividend payments
Principal elements of lease payments
Repayment of lease facility
Loan to Linden Gold Alliance Pty Ltd
Syndicate facility (payments)/drawn
Net cash (outflow)/inflow from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Net movement in foreign exchange rates
Cash and cash equivalents at the end of the year
13
Consolidated
2021
$'000
2020
$'000
737,195
831,788
(454,455)
(477,135)
(26,596)
1,103
(5,565)
(2,432)
(22,152)
227,098
-
2
(67,425)
(58,414)
(7,593)
(3,717)
(23,596)
2,306
(10,550)
(2,036)
(41,244)
279,533
10,000
-
(26,331)
(85,881)
(22,142)
3,261
(62,176)
(779,857)
58
4,065
(199,265)
(896,885)
-
(45,357)
(12,704)
-
(15,750)
(219,973)
(293,784)
2,400
(37,510)
(13,899)
(10,635)
-
207,014
147,370
(265,951)
(469,982)
405,541
(6,220)
133,370
880,199
(4,676)
405,541
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST component of cash flows arising from investing or financing activities,
which are recoverable from, or payable to, the taxation authority are classified as part of operating cash flows.
The above consolidated cash flow statement should be read in conjunction the notes to the consolidated financial statements
St Barbara Annual Report 2021 | 51
St Barbara Directors and Financial Report / 30 June 2021
A. Key results
1
Segment information
Gold revenue
Silver revenue
Total revenue
Leonora
Simberi
Atlantic
Total segments
2021
$’000
2020
$’000
2021
$’000
2020
$’000
2021
$’000
2020(4)
$’000
2021
$’000
2020
$’000
329,431
355,319
202,177
237,340
205,458
232,903
737,066
825,562
462
393
2,577
1,519
142
252
3,181
2,164
329,893
355,712
204,754
238,859
205,600
233,155
740,247
827,726
Mine operating costs
(160,269)
(164,515)
(144,039)
(151,291)
(67,529)
(69,014)
(371,837)
(384,820)
Gross profit
169,624
191,197
60,715
87,568
138,071
164,141
368,410
442,906
Royalties (1)
(16,632)
(16,896)
(5,025)
(5,952)
(4,107)
(4,326)
(25,764)
(27,174)
Depreciation and amortisation
(71,951)
(65,767)
(16,470)
(21,398)
(96,759)
(75,511)
(185,180)
(162,676)
Impairment loss on assets
-
-
-
-
(349,296)
-
(349,296)
-
Segment profit before income tax
81,041
108,534
39,220
60,218
(312,091)
84,304
(191,830)
253,056
Capital expenditure
Sustaining
Growth(2)
(63,683)
(52,559)
(32,499)
(8,833)
Gwalia Extension Project
-
(31,751)
(9,214)
(5,129)
-
(5,194)
(4,147)
-
(17,657)
(15,327)
(90,554)
(73,080)
(11,501)
(15,214)
(49,129)
(28,194)
-
-
-
(31,751)
Total capital expenditure
(96,182)
(93,143)
(14,343)
(9,341)
(29,158)
(30,541)
(139,683)
(133,025)
Segment assets
430,099
414,370
102,850
146,409
925,413
1,286,081
1,458,362
1,846,860
Segment non-current assets
401,070
389,474
Segment liabilities
53,608
62,847
50,028
50,284
49,877
863,782
1,176,685
1,314,880
1,616,036
49,164
355,745
455,578
459,637
567,589
(1) Royalties include state and government royalties for each operation, and corporate royalties in relation to Atlantic Gold and Leonora gold sales.
(2) Growth capital at Leonora includes mining equipment purchased from the previous underground mining contractor to facilitate the transition to the new contractor in
May 2021 and expenditure on projects associated with additional cooling and ventilation and the Tailings Storage Facility. At Simberi growth capital represents
expenditure associated with the sulphides project. At Atlantic Gold growth capital represents expenditure associated with capitalised exploration and studies.
The Group has three operational business units: Leonora
Operations, Simberi Operations, and Atlantic Operations. The
operational business units are managed separately due to their
separate geographic regions.
to
transactions with any of
A reportable segment is a component of the Group that
engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that
relate
the Group’s other
components. The operating results (including production, cost
per ounce and capital expenditure) of all reportable segments
are regularly reviewed by the Group’s Executive Leadership
Team (“ELT”) to make decisions about resources to be
allocated to the segment and assess performance.
Performance is measured based on segment profit before
income tax, as this is deemed to be the most relevant in
assessing performance, after taking into account factors such
as cost per ounce of production.
Segment capital expenditure represents the total cost incurred
during the year for mine development, acquisitions of property,
plant and equipment and growth projects. Growth projects are
focussed on extending mine life, and in the case of exploration
increasing mineral resources and ore reserves.
52 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Sales revenue
Revenue from the sale of gold and silver in the course of
ordinary activities is measured at the fair value of the
consideration received or receivable. The Group recognises
revenue at a point in time when control (physical or contractual)
is transferred to the buyer, the amount of revenue can be
reliably measured and the associated costs can be estimated
reliably, and it is probable that future economic benefits will flow
to the Group.
Royalties
Royalties are payable on gold sales revenue, based on gold
ounces produced and sold, and are therefore recognised as the
sale occurs.
Major Customers
Major customers to whom the Group provides goods that are
more than 10% of external revenue are as follows:
Revenue
% of external
revenue
2021
$’000
2020
$’000
2021
%
338,732 462,501
45.5
50,970 104,707
47,047
87,183
144,343 148,699
162,816
-
6.9
6.3
19.4
21.9
2020
%
57.1
12.9
10.8
18.3
-
Customer A
Customer B
Customer C
Customer D
Customer E
St Barbara Annual Report 2021 | 53
St Barbara Directors and Financial Report / 30 June 2021
1
Segment information (continued)
Operations
Consolidated
2021
$’000
2020
$’000
Total loss for reportable segments
(191,830)
253,056
Interest revenue
Other income
Exploration expensed
1,103
1,113
2,306
56
(34,596)
(23,596)
Corporate depreciation and amortisation
(2,690)
(2,690)
Finance costs
Corporate costs
(7,996)
(13,255)
(26,621)
(27,156)
Net foreign exchange (loss)/gain
5,316
(2,377)
Expenses associated with acquisition
Net derivative movement
Share based payments
Other expenses
-
22,897
(1,765)
(22,695)
(7,538)
(9,152)
(2,472)
(4,735)
Consolidated loss before income tax
(257,764)
162,447
Assets
Total assets for reportable segments
1,458,362
1,846,860
Cash and cash equivalents
84,792
277,140
Trade and other receivables (current)
35,015
-
Trade and other receivables (non-
current)
Financial assets
Corporate property, plant & equipment
4,250
4,243
42,163
11,179
42,906
3,864
Consolidated total assets
1,635,761
2,175,013
Liabilities
Total liabilities for reportable segments
459,637
567,589
Trade and other payables
26,242
18,410
Interest bearing liabilities (current)
Interest bearing liabilities (non-current)
Provisions (current)
Provisions (non-current)
Current tax liability
Deferred tax liabilities
762
1,921
9,183
1,436
-
455
200,968
11,522
1,307
2,422
22,913
23,363
Consolidated total liabilities
522,094
826,036
Segment results that are reported to the ELT include items
directly attributable to a segment and those that can be
allocated on a reasonable basis. Unallocated items comprise
mainly corporate assets and related depreciation, exploration
expense, revenue, finance costs and corporate costs.
54 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
2
Tax
Income tax expense
Current tax expense
Deferred income tax benefit
Consolidated
2021
$'000
2020
$'000
18,813
55,043
(96,469)
(24,637)
Under provision in respect of the prior year(1)
(3,512)
3,811
Total income tax (benefit)/expense
(81,168)
34,217
Numerical reconciliation of income tax expense to prima
facie tax payable
2021
$'000
2020
$'000
(Loss)/ Profit before income tax
(257,764)
162,447
Tax at the Australian tax rate of 30%
(77,329)
48,734
Difference in overseas tax rates
Equity settled share-based payments
Sundry items(1)
Research and development incentive
Permanent differences arising from foreign
exchange within the tax consolidated group
3,018
(1,544)
(1,413)
(2,639)
(1,261)
272
240
773
(198)
4,241
Change in tax rate in Nova Scotia(2)
-
(19,845)
Income tax (benefit)/expense
(81,168)
34,217
(1) Relates to under/over provision for Simberi & Allied Gold.
(2) \During 2020, the Nova Scotia provincial government reduced the provincial
tax rate from 16% to 14%, representing an overall reduction, including the
Canadian federal tax rate, from 31% to 29%. The amount of $19,845,000
represents the impact of the lower tax rate on Canadian related deferred tax
balances.
Income tax
Income tax expense comprises current and deferred tax.
Current tax and deferred tax are recognised in the consolidated
income statement, except to the extent that it relates to a
business combination, or items recognised directly in equity or
in other comprehensive income.
Current tax is the expected tax payable or receivable on the
taxable profit for the year, using tax rates enacted or
substantively enacted at
the reporting date, and any
adjustment to tax payable in respect of previous years.
Tax exposure
In determining the amount of current and deferred tax the
Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. This
assessment relies on estimates and assumptions and may
involve a series of
judgements about future events. New
information may become available that causes the Group to
change its judgement regarding the adequacy of existing tax
liabilities; such changes to tax liabilities may impact tax
expense in the period that such a determination is made.
Tax consolidation
Entities in the Australian tax consolidated group at 30 June
2021 included: St Barbara Ltd (head entity) and Allied Gold Pty
Ltd. Current and deferred tax amounts are allocated using the
“separate taxpayer within group” method.
A tax sharing and funding agreement has been established
between the entities in the tax consolidated group. The
Company recognises deferred tax assets arising from the
unused tax losses of the tax consolidated group to the extent
that it is probable that future taxable profits of the tax
consolidated group will be available against which the asset
can be utilised. At 30 June 2021,
tax
consolidated group did not have any unused tax losses.
the Australian
Current tax liability
As at 30 June 2021, the Company recognised a net current tax
receivable of $4,143,000 (2020: $10,893,000 payable),
consisting of an Australian receivable of $18,681,000 and a
Canadian and Papua New Guinea tax payable of $14,538,000
relating to the year ended 30 June 2021.
Accounting judgements and estimates
At 30 June 2021, tax losses not recognised relating to entities
associated with Atlantic Gold in Canada of $3,656,000 (tax
effected) were not booked.
St Barbara Annual Report 2021 | 55
St Barbara Directors and Financial Report / 30 June 2021
2
Tax (continued)
Deferred tax balances
Deferred tax assets
Tax losses
Provisions and accruals
Property, plant and equipment
Derivative financial liabilities
Other
Total
Tax effect
Deferred tax liabilities
Accrued income
Mine properties – exploration
Mine properties – development
Consumables
Capitalised convertible notes costs
Unrealised foreign exchange gains
Property, plant & equipment
Investment at fair value
Other liabilities
Total
Tax effect
Net deferred tax balance
Consolidated
2021
$'000
2020
$'000
8,664
86,657
41,763
14,088
5,887
19,663
71,969
67,333
37,448
9,494
157,059
205,907
46,651
60,952
270
349
148,877
72,197
584,080
921,593
56,155
78,050
948
22,157
84,170
12,890
2,546
1,399
23,759
85,100
22,035
-
912,093 1,204,482
266,070
350,866
(219,419)
(289,914)
Comprising:
Australia – net deferred tax liabilities
(22,913)
(23,363)
PNG – net deferred tax assets
9,136
13,670
Canada – net deferred tax liabilities
(205,642)
(280,221)
Net deferred tax balance
(219,419)
(289,914)
Deferred tax
Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for:
(cid:120) Temporary differences on the initial recognition of assets or
liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
(cid:120) Temporary differences related to investments in subsidiaries
and jointly controlled entities to the extent that it is probable
that they will not reverse in the foreseeable future; and
(cid:120) Taxable
temporary differences arising on
the
initial
recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to
be applied to temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted
by the reporting date.
A deferred tax asset is recognised for unused tax losses, tax
credits and deductible temporary differences, to the extent that
it is probable that future taxable profits will be available against
which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
Tax benefits acquired as part of a business combination, but
not satisfying the criteria for separate recognition at that date,
are recognised subsequently if new information about facts
and circumstances change.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on
the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis
or their tax assets and liabilities will be realised simultaneously.
Accounting judgements and estimates
jurisdiction and
At each reporting date, the Group performs a review of the
probable future taxable profit in each
jurisdiction. The
assessments are based on the latest life of mine plans relevant
to each
the application of appropriate
economic assumptions such as gold price and operating costs.
Any resulting recognition of deferred tax assets is categorised
by type (e.g. tax losses or temporary differences) and
recognised based on which would be utilised first according to
that particular jurisdiction’s legislation.
56 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
3.
Significant items
Significant items are those items where their nature or amount
is considered material to the financial report. Such items
included within the consolidated results for the year are
detailed below.
Atlantic Gold Corporation acquisition
costs(1)
Amortisation of derivative financial
liability(2)
Gold hedge restructure(3)
Consolidated
2021
$'000
2020
$'000
-
-
-
(7,538)
16,583
11,810
Call option fair value movements(4)
17,271
(20,962)
Building Brilliance transformation(5)
Impairment loss on assets(6)
Capitalised exploration write off in
exploration expensed(6)
(22,695)
(349,296)
(8,000)
-
-
-
Total significant items – pre tax
(362,720)
(107)
Tax Effect
Nova Scotia tax rate change(7)
-
19,845
Tax effect of pre-tax significant items
105,496
20
Total significant items – post tax
(257,224)
19,758
(1) Atlantic Gold Corporation acquisition costs
Costs relating to the acquisition of Atlantic Gold Corporation
included due diligence costs, share registry charges and
integration costs.
(2) Amortisation of derivative financial liability
As part of the acquisition of Atlantic Gold, a derivative financial
liability of $44,992,000 was recognised for the “out-of-the-
money” position of the gold forward contracts acquired. This
liability was amortised as a credit to revenue as the forward
contracts matured. As a result of the restructure of the hedge
program in February 2020 the forward contracts were acquired
and cancelled, with the remaining amortisation accelerated
and the amount recognised in revenue totalling $16,583,000.
(3) Gold hedge restructure
In February 2020, the Atlantic gold forwards were restructured,
lifting the strike price on the remaining 78koz of forward
contracts from C$1,549 per ounce to C$1,759 per ounce. This
was achieved by selling 78,000 ounces of call options at a
strike price of C$2,050 per ounce. The net impact of
accelerating the remaining unamortised balance of the
acquired forward contracts and recognising the fair value of the
call options at the date of restructure was $11,810,000.
(4) Call option fair value movements
The gold call options were entered into as part of the Atlantic
for hedge
Gold hedge restructure and do not qualify
accounting. This is on the basis that the sold call options do
not protect against downside risk. Therefore, movements in the
fair value of the call options are recognised in income
statement. Fair value movements in the year were a total gain
of $22,897,000 (2020: loss of 20,962,000), with the unrealised
component amounting to $17,271,000.
(5) Building Brilliance transformation
Building Brilliance transformation program was established
during the year to create sustainable value through improving
operational performance and reducing costs. The costs
incurred to manage the Building Brilliance program are
included within other expenses.
(6) Impairment loss on assets
The impairment loss represents the write down of mineral
rights in relation to Atlantic Gold (refer to note 8). Capitalised
to certain Atlantic Gold
exploration written off relates
tenements intended to be relinquished.
(7) Canada province tax rate change
On 1 April 2020, the tax rate in Nova Scotia, the province in
which the Atlantic Gold operations reside, was reduced from
16% to 14%. When added to the Canadian federal rate of
15%, the total tax rate reduced from 31% to 29%. The credit
of $19,845,000 in the income tax expense represented the
benefit from the reduction of the net deferred tax liability.
St Barbara Annual Report 2021 | 57
St Barbara Directors and Financial Report / 30 June 2021
4. Earnings per share
Basic earnings per share
Diluted earnings per share
Consolidated
Basic earnings per share
2021
Cents
(25.03)
(24.91)
2020
Cents
18.33
18.24
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding
during the reporting period.
Reconciliation of earnings used in
calculating earnings per share
Consolidated
Basic and diluted earnings per share:
(Loss)/profit after tax for the year
(176,596)
128,230
2021
$'000
2020
$'000
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares, and the
weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential
ordinary shares.
Weighted average number of shares
Consolidated
Performance rights
2021
2020
Number
Number
705,572,502 699,442,910
Performance rights granted to employees under the St Barbara
Performance Rights Plan are considered to be potential
ordinary shares and are included in the determination of diluted
earnings per share to the extent to which they are dilutive. The
rights are not included in the determination of basic earnings
per share.
709,015,656 702,895,987
Weighted average of number of shares
Weighted average number of ordinary
shares used in calculating basic earnings
per share
Weighted average number of ordinary
shares and potential ordinary shares used
in calculating diluted earnings per share
5. Dividends
Consolidated
2021
$'000
2020
$'000
Declared and paid during the year on
ordinary shares (fully-franked at 30 per
cent)
2021 interim dividend: 4 cents (2020: 4 cents)
28,214
27,848
2020 final dividend: 4 cents (2019: 4 cents)
28,142
27,967
Total dividends paid
56,356
55,815
Dividends paid in cash or satisfied by the issue
of shares under the dividend reinvestment plan
during the year were as follows:
Paid in cash
DRP – satisfied by issue of shares
Total dividends paid
45,357
37,510
10,999
18,305
56,356
55,815
Proposed and not recognised as a liability
(fully-franked at 30 per cent)
2021 final dividend: 2 cents (2020: 4 cents)
14,160
28,124
Franking credit balance
Franking credits available for future years at 30
per cent adjusted for the payment of income
tax and dividends received or payable
Impact on the franking account of dividends
proposed before the financial report was issued
but not recognised as a distribution to equity
holders during the year
63,585
68,314
(6,069)
(12,053)
58 | St Barbara Annual Report 2021
The calculation of the weighted average number of shares is
based on the number of ordinary shares and performance
shares during the period, including the number of treasury
shares held in trust.
Treasury shares are issued shares held by the company in
trust for employee performance rights.
Dividend Reinvestment Plan
The Company’s Dividend Reinvestment Plan (DRP) continues
to be available to eligible shareholders, whereby holders of
ordinary shares may elect to have all or parts of their dividend
entitlements satisfied by the issue of new ordinary shares
instead of receiving cash.
DRP shares in relation to the 2021 interim dividend and the
2020 final dividend were issued at a 1% discount to the 5 day
volume weighted average price.
Final Dividend
Subsequent to the 30 June 2021 full year report date, the
Directors declared the payment of a final dividend of 2 cents
per fully paid ordinary share fully franked. The aggregate
amount of the proposed dividend is expected to be paid on30
September 2021 out of retained earnings at 30 June 2021, and
has not been recognised as a liability at the end of the year.
DRP shares in relation to the 2021 final dividend will be issued
at a 1% discount to the 5 day volume weighted average price.
St Barbara Directors and Financial Report / 30 June 2021
B. Mining operations
6. Property, plant and equipment
Land and buildings
At the beginning of the year
Recognition of right-of-use assets
Acquired fixed assets (Atlantic Gold)
Additions
Depreciation (range 3-15 years)
Disposals
Effects of movement in foreign
exchange rates
Reconciliation of depreciation and
amortisation to the consolidated
income statement
Depreciation
Land and buildings
Plant and equipment
Consolidated
2021
$'000
2020
$'000
(2,980)
(2,721)
(67,910)
(66,215)
Capitalised depreciation
-
6,775
Amortisation
Mine properties(1)
Mineral rights(1)
Total
(40,635)
(76,345)
(41,059)
(62,146)
(187,870)
(165,366)
The above depreciation table includes right-of-use asset depreciation
(1) Refer Note 8: Mine properties and mineral rights.
Consolidated
2021
$'000
12,206
3,093
-
1,367
(2,980)
-
(171)
2020
$'000
11,610
1,860
1,038
434
(2,721)
(61)
46
At the end of the year
13,515
12,206
Plant and equipment
At the beginning of the year
Recognition of right-of-use assets
Acquired fixed assets (MRRI/Atlantic
Gold)
Additions
Transfers
Disposals
Depreciation (range 3-15 years)
Effects of movement in FX rates
At the end of the year
Total(1)
312,073
17,340
90,124
35,634
20,284
116,808
44,922
32,600
16,435
105,182
(10,281)
(80)
(67,910)
(66,215)
(2,064)
330,799
344,314
(1,980)
312,073
324,279
(1) The above PP&E table includes right-of-use assets and associated
accumulated depreciation.
Security
In accordance with security arrangements the syndicated
facility and gold call options are secured by the assets of the
Group, excluding assets of the Simberi Operations.
Capital commitments
Purchase orders raised for contracted
capital expenditure
Consolidated
2021
$’000
2020
$’000
10,612
9,870
Buildings, plant and equipment are stated at historical cost less
accumulated depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance are
charged to the consolidated income statement during the
financial period in which they are incurred.
Depreciation of assets is calculated using the straight line
method to allocate the cost or revalued amounts, net of
residual values, over their estimated useful lives.
Where the carrying value of an asset is less than its estimated
residual value, no depreciation is charged. Residual values
and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date.
An asset’s carrying amount is written down immediately to its
recoverable amount, if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposal are determined by comparing
proceeds with the carrying amount. These gains and losses
are included in the consolidated income statement when
realised.
St Barbara Annual Report 2021 | 59
St Barbara Directors and Financial Report / 30 June 2021
6. Plant, property and equipment (continued)
Right-of-use assets (leases)
This note provides information for right-of-use of assets where
the group is a lessee
that are held by the lessor. Leased assets are not used as
security for borrowing purposes.
All finance and operating leases are recognised as right-of-use
assets with a corresponding liability at the date at which each
leased asset is available for use by the group.
Accounting judgements and estimates
Right-of-use assets
Land and buildings
Consolidated
2021
$'000
2020
$’000
Assets and liabilities arising from a lease are initially measured
on a present value basis. Lease liabilities include the net
present value of the following lease payments:
(cid:120) fixed payments, less any lease incentives receivable
At the beginning of the year
1,394
1,860
(cid:120) the exercise price of a purchase option if the Group is
Additions
3,093
-
reasonably certain to exercise that option, and
Depreciation (range 1-5 years)
(563)
(465)
(cid:120) payments of penalties for terminating the lease, if the lease
Disposals
-
-
term reflects the Group exercising that option.
At the end of the year
3,924
1,395
Plant and equipment
At the beginning of the year
25,936
35,634
Acquired right-of-use assets
Additions
Disposals
15,794
1,546
(10,279)
1,425
2,557
-
Depreciation (range 1-5 years) (1)
(11,401)
(13,680)
At the end of the year
Total
21,596
25,520
25,936
27,331
(1) Depreciation of right-of-use assets which are used in mine development are
capitalised.
Lease liabilities(2)
Current
Non-current
Total
Consolidated
2021
$'000
9,327
15,709
25,036
2020
$’000
12,199
15,378
27,577
(2) The Group has lease liabilities relating to a finance lease relating to the
purchase of mining equipment.
The Group’s leasing activities
The Group leases offices, warehouses, equipment and
vehicles as part of its operational requirements. Contracts are
typically made for fixed periods of 6 months to 8 years but may
have extension options as described below.
Contracts may contain both lease and non-lease components.
The group allocates the consideration in the contract to the
lease and non-lease components based on their relative stand-
alone value. As a Lessee the Group will individually access
single lease components.
Lease payments to be made under reasonably certain
extension options under management’s assessment are also
included in the measurement of the liability.
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined,
the lessee’s incremental borrowing rate is used, being the rate
that the individual lessee would have to pay to borrow the funds
necessary to obtain the asset.
Lease payments are allocated between principal and finance
cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.
Management has applied judgement in determining whether
assets used by a supplier in providing services to the Group
qualify as right-of-use assets.
Right-of-use assets are depreciated over the shorter of the
asset's useful life or the lease term on a straight-line basis. If
the group is reasonably certain to exercise a purchase option,
the right-of-use asset is depreciated over the underlying asset’s
useful life. The Group has chosen not to do so for the right-of-
use assets held by the Group.
The lease term is reassessed if an option is actually exercised
(or not exercised) or the Group becomes obliged to exercise
(or not exercise) it. The assessment of reasonable certainty is
only revised if a significant event or a significant change in
circumstances occurs, which affects this assessment, and that
is within the control of the lessee. During the current financial
year, the financial effect of remeasuring lease terms to reflect
the effect of exercising extension and termination options was
an increase in recognised lease liabilities and right-of-use
assets of $145,515 (2020: $2,557,000).
terms are negotiated on
individual operational
Lease
requirements and contain a wide range of different terms and
conditions. The
impose any
covenants other than the security interests in the leased assets
lease agreements do not
60 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
7. Deferred mining costs
Current
Consolidated
2021
$'000
2020
$'000
Certain mining costs, principally those that relate to the
stripping of waste in open pit operations and operating
development in underground mines, which provides access so
that future economically recoverable ore can be mined, are
deferred in the balance sheet as deferred mining costs.
Deferred operating mine development
2,987
2,039
Underground operations
Non-current
Deferred operating mine development
3,173
4,386
In underground operations mining occurs progressively on a
level-by-level basis. Underground mining costs in the period
are deferred based on the metres developed for a particular
level.
Open pit operations
Overburden and other mine waste materials are often removed
during the initial development of a mine site in order to access
the mineral deposit and deferred. This activity is referred to as
deferred stripping.
Removal of waste material normally continues throughout the
life of an open pit mine. This activity is referred to as production
stripping.
The Group has no deferred waste costs associated with open
pit operations at 30 June 2021 (2020: $Nil).
Accounting judgements and estimates
The Group applies the units of production method for
amortisation of underground operating development. The
amortisation rates are determined on a level-by-level basis. In
underground operations an estimate is made of the life of level
average underground mining cost per recoverable ounce to
expense underground costs in the consolidated income
statement. Underground mining costs in the period are
deferred based on the metres developed for a particular level.
St Barbara Annual Report 2021 | 61
St Barbara Directors and Financial Report / 30 June 2021
8.
Mine properties and mineral rights
Mine properties
At beginning of the year
Direct expenditure
Rehabilitation asset(1)
Transfer to PP&E(2)
Amortisation for the year
Study costs written off(3)
At end of the year
Consolidated
2021
$'000
2020
$'000
172,165
226,330
79,550
18,266
89,690
7,372
(21,135)
(109,329)
(40,635)
(41,059)
(2,022)
(839)
206,189
172,165
(1) Rehabilitation asset generated as a result of an increase to the provision at
Atlantic Gold and Simberi (refer Note 10).
(2) Relates to the Gwalia Extension Project where the majority of costs incurred
were in respect of the purchase and construction of PP&E.
(3) Study costs relating to the ventilation study of the Gwalia Mass Extraction
Program and exploration drilling surrounding Gwalia deposits which were
previously capitalised.
Mineral rights
At the beginning of the year
Acquired mineral rights (MRRI/Atlantic
Gold)(1)
Amortisation
Impairment write off
Consolidated
2021
$'000
922,118
67,044
2020
$'000
1,872
988,709
(76,345)
(62,146)
(349,296)
-
Effects of movements in FX rates
5,709
(6,317)
At the end of the year
569,230
922,118
(1) Refer Note 23: Business combinations.
62 | St Barbara Annual Report 2021
Mine properties
Mine development expenditure represents the acquisition cost
and/or accumulated exploration, evaluation and development
expenditure in respect of areas of interest in which mining has
commenced.
When further development expenditure is incurred in respect of
a mine, after
the commencement of production, such
expenditure is carried forward as part of the mine development
only when substantial
future economic benefits are
established, otherwise such expenditure is classified as part of
production and expensed as incurred.
Mine development costs are deferred until commercial
production commences, at which time they are amortised on a
unit-of-production basis over mineable
reserves. The
calculation of amortisation takes into account future costs
which will be incurred to develop all the mineable reserves.
Changes to mineable reserves are applied from the beginning
of the reporting period and the amortisation charge is adjusted
prospectively from the beginning of the period.
Accounting judgements and estimates
remaining
The Group applies the units of production method for
amortisation of its life of mine specific assets, which results in
an amortisation charge proportional to the depletion of the
anticipated
life of mine production. These
calculations require the use of estimates and assumptions in
relation to reserves, metallurgy and the complexity of future
capital development requirements; changes to these estimates
and assumptions will impact the amortisation charge in the
consolidated income statement and asset carrying values.
Mineral rights
Mineral rights comprise identifiable exploration and evaluation
assets, mineral resources and ore reserves that are acquired
as part of a business combination or a joint venture acquisition,
and are recognised at fair value at the date of acquisition.
Mineral rights are attributable to specific areas of interest and
are amortised when commercial production commences on a
unit of production basis over the estimated economic reserves
of the mine to which the rights relate.
The Group’s mineral rights are associated with the Atlantic
Gold Operations and interests.
Accounting judgements and estimates
remaining
The Group applies the units of production method for
amortisation of its life of mine specific assets, which results in
an amortisation charge proportional to the depletion of the
anticipated
life of mine production. These
calculations require the use of estimates and assumptions in
relation to reserves, resources and metallurgical recovery,
changes to these estimates and assumptions could impact the
amortisation charge in the consolidated income statement and
asset carrying values.
St Barbara Directors and Financial Report / 30 June 2021
8. Mine properties and mineral rights
(continued)
Impairment of assets
All asset values are reviewed at each reporting date to
determine whether there is objective evidence that there have
been events or changes in circumstances that indicate that the
carrying value may not be recoverable. Where an indicator of
impairment exists, a formal estimate of the recoverable amount
is made. An impairment loss is recognised for the amount by
which the carrying amount of an asset or a cash generating unit
(‘CGU’) exceeds the recoverable amount. Impairment losses
are recognised in the consolidated income statement.
Impairment is assessed at the level of CGU which, in
accordance with AASB 136 ‘Impairment of Assets’, is identified
as the smallest identifiable group of assets that generates cash
inflows that are largely independent of the cash inflows from
other assets. The Group assesses impairment of all assets at
each reporting date by evaluating conditions specific to the
Group and to the particular assets that may lead to impairment.
The identified CGUs of the Group are: Leonora, Simberi and
Atlantic Gold. The carrying value of all CGUs are assessed
when an indicator of impairment is identified. The recoverable
amount is assessed by reference to the higher of value in use
(being the net present value of expected future cash flows of
the relevant cash-generating unit in its current condition) and
fair value less costs of disposal (‘Fair Value’). The Group has
used the fair value methodology.
commodity price and exchange
Fair Value is estimated based on discounted cash flows using
market-based
rate
assumptions, estimated quantities of recoverable minerals,
production levels, operating costs, capital requirements and
rehabilitation and restoration costs, based on the CGU’s latest
life-of-mine (LoM) plans. In certain cases, where multiple
investment options and economic input ranges exist, Fair Value
may be determined from a combination of two or more
scenarios that are weighted to provide a single Fair Value.
When plans and scenarios used to estimate Fair Value do not
fully utilise the existing mineral resource for a CGU, and options
exist for the future extraction and processing of all or part of
those resources, an estimate of the value of unmined
resources, in addition to an estimate of the value of exploration
potential outside of resources, is included in the calculation of
Fair Value.
Fair Value estimates are considered to be level 3 fair value
measurements as defined by accounting standards, as they
are derived from valuation techniques that include inputs that
are not based on observable market data. The Group considers
the inputs and the valuation approach to be consistent with the
approach taken by market participants.
Estimates of quantities of recoverable minerals, production
levels, operating costs, capital requirements and rehabilitation
and restoration costs are sourced from the Group’s planning
and budgeting process, including LoM plans, latest short-term
forecasts, CGU-specific studies and
rehabilitation and
restoration plans to meet environmental and regulatory
obligations. In the case of future mines included in the
estimation of Fair Value, some assumptions are management’s
best estimates based on experience and cost structures of
similar mines and advice from independent experts.
Key Assumptions and Estimates
The table below summarises the key assumptions used in the
carrying value assessment as at 30 June 2021.
Assumptions
2022
2023
2024
2025
Long
Term
Gold
(US$ per ounce)
AUD/USD
exchange rate
USD/PGK
exchange rate
AUD/CAD
exchange rate
Discount rate
(%)
$1,780
$1,733
$1,689
$1,646
$1,500
$0.75
$0.73
$0.73
$0.73
$0.72
$3.50
$3.50
$3.50
$3.50
$3.50
$0.95
$0.95
$0.95
$0.95
$0.97
Atlantic Gold CGU: 5%
Commodity prices and exchange rates estimation
Commodity prices and foreign exchange rates are estimated
with reference to external market forecasts. The rates applied
have regard to observable market data including spot and
forward values and are expressed in real terms.
Discount rate
In determining Fair Value of CGUs the future cash flows were
discounted using rates based on the Group’s estimated real
after tax weighted average cost of capital, with an additional
premium applied having regard to the geographic location of,
and specific risks associated with the CGU. In the case of the
Atlantic Gold CGU no specific risk premium was applied. The
Group uses a capital asset pricing model to estimate it’s real
after tax weighted average cost of capital.
Production activity, operating costs and capital requirements
LoM production activity and operating and capital cost
assumptions are based on the Group’s latest forecasts and
longer term LoM plans. These projections can include expected
operating performance improvements reflecting the Group’s
objectives to maximise free cash flows, optimise and reduce
operating activity, apply technology, improve capital and labour
productivity. In the case of projects to be developed into future
mines, Fair Value is based on estimates on production profiles,
operating cost and capital requirements from feasibility studies
and assumptions about the timing of regulatory approvals and
permitting the mines. Estimates of rehabilitation and restoration
costs are based on expected restoration and closure activities
to satisfy environmental legislation requirements.
Changes in these key assumptions and estimates will impact
the Fair Value and recoverable amount of the CGU. In the case
of estimating the timing of approvals and permitting future
mines, significant delays could have a material impact on Fair
Value and result in care and maintenance costs for current
operations.
St Barbara Annual Report 2021 | 63
St Barbara Directors and Financial Report / 30 June 2021
Impact of impairment assessment
Following an assessment of the recoverable amount of the
Group’s CGUs as at 30 June 2021, it has been determined that
the Atlantic Gold CGU carrying value exceeded its recoverable
amount of $623,000,000.
Cash-Generating Unit
Pre-Tax
$’000
Tax
$’000
Post-Tax
$’000
Atlantic Gold
349,296
(101,296)
248,000
The drivers of the impairment at Atlantic Gold are:
(cid:120)
(cid:120)
the
latest permitting and development
Based on
schedules for the Beaver Dam, Fifteen Mile Stream and
Cochrane Hill projects that form part of the Atlantic CGU,
there is a significant delay in commencement of mining
from these future mines and in realising the cash flows
from operations. The delay in future cash flows has
materially impacted the discounted cash flows in support
of the carrying value of the CGU.
Increase in the estimated capital requirements for
developing the projects and costs for rehabilitation and
restoration of the mines.
In total approximately 15% of the Atlantic Gold Fair Value is
attributable to unmined resources not included in production in
the LoM model and exploration value.
Unfavourable changes to key assumptions would further
reduce the Fair Value.
Sensitivity analysis
The Atlantic CGU Fair Value has a high sensitivity to the gold
price, change in discount rate and timing for commencement of
mining at the future mines. Changes in key assumptions will
impact the Fair Value of the Atlantic Gold CGU. The
sensitivities were estimated as set out below and represent the
theoretical impacts on Fair Value of the changes assessed on
an individual basis.
Sensitivity
Impact ($’000)
A$50 per ounce change in gold price
0.5% change in discount rate
Change in commencement of mining at
Beaver Dam and Fifteen Mile Stream
(cid:120) 6-month earlier
(cid:120) 6-month delay
50,000
21,000
9,000
(9,000)
impacts. Action
The above sensitivities assume that the specific assumption
moves in isolation, with all other assumptions remaining
constant. In reality, the factors may not move in isolation and
may have offsetting
taken by
management to respond to adverse change that may mitigate
the impact of the change. The sensitivity analysis has not
calculated a delay in permitting future mines beyond six
months, which could materially change the Fair Value of the
CGU and result in care and maintenance of the current
operations at Touquoy.
is also
Accounting judgements and estimates - Impairment
Significant judgements and assumptions are required in
determining estimates of Fair Value. This is particularly the
case in the assessment of long-life assets and development
64 | St Barbara Annual Report 2021
to variability
projects expected to be cash generating mines in the future.
The CGU valuations are subject
in key
assumptions including, but not limited to: short and long-term
gold prices, currency exchange
rates,
production profiles, operating costs, future capital expenditure,
permitting of new mines and the impact of environmental
legislation on rehabilitation and restoration estimated costs. An
adverse change in one or more of the assumptions used to
estimate Fair Value could result in a reduction in a CGU’s
recoverable amount. This could lead to the recognition of
impairment losses in the future.
rates, discount
At 30 June 2021, the Group’s net assets exceeded the market
capitalisation of St Barbara Limited. As a result, an impairment
assessment was carried out on each of the Group’s CGUs. The
assessment confirmed that there was no impairment of the
Leonora and Simberi CGUs due to long mine life in the case of
Leonora and low carrying value to recover at Simberi. In the
case of the Atlantic Gold CGU the delays to permitting of future
mines that form part of the CGU and higher estimated
development capital requirements caused the carrying value to
exceed recoverable amount at 30 June 2021.
Ore Reserves
The Group determines and reports Ore Reserves under the
2012 edition of the Australian Code for Reporting of Mineral
Resources and Ore Reserves, known as the JORC Code. The
JORC Code requires the use of reasonable investment
assumptions to calculate reserves. Due to the fact that
economic assumptions used to estimate reserves change from
period to period, and geological data is generated during the
course of operations, estimates of reserves may change from
period to period.
Accounting judgements and estimates– Ore Reserves
Reserves are estimates of the amount of gold product that can
be economically extracted from the Group’s properties. In order
to calculate reserves, estimates and assumptions are required
about a range of geological, technical and economic factors,
including quantities, grades, production techniques, recovery
rates, production costs, future capital requirements, short and
long term commodity prices and exchange rates.
Estimating the quantity and/or grade of reserves requires the
size, shape and depth of ore bodies to be determined by
analysing geological data. This process may require complex
and difficult geological judgements and calculations to interpret
the data.
Changes in reported reserves may affect the Group’s financial
results and financial position in a number of ways, including:
(cid:120) Asset carrying values may be impacted due to changes in
estimated future cash flows.
(cid:120) The recognition of deferred tax assets.
(cid:120) Depreciation and amortisation charged in the consolidated
income statement may change where such charges are
calculated using the units of production basis.
(cid:120) Underground capital development deferred in the balance
sheet or charged in the consolidated income statement may
change due to a revision in the development amortisation
rates.
St Barbara Directors and Financial Report / 30 June 2021
Decommissioning,
restoration and environmental
provisions may change where changes in estimated reserves
affect expectations about the timing or cost of these activities
site
St Barbara Annual Report 2021 | 65
St Barbara Directors and Financial Report / 30 June 2021
9. Exploration and evaluation
Non-current
At beginning of the year
Acquired exploration (Atlantic Gold)
Additions
Transfers
Write off of capitalised exploration
Effects of movement in FX rates
At end of the year
Commitments for exploration
In order to maintain rights of tenure to
mining tenements for the next financial year,
the Group is committed to tenement rentals
and minimum exploration expenditure in
terms of the requirements of the relevant
government mining departments in
Australia, Papua New Guinea and Canada.
This requirement will continue for future
years with the amount dependent upon
tenement holdings.
Consolidated
2021
$'000
149,949
-
7,593
4,702
(8,000)
2020
$'000
40,858
87,712
17,995
4,147
-
(301)
(763)
153,943
149,949
Consolidated
2021
$’000
2020
$’000
8,867
14,155
66 | St Barbara Annual Report 2021
All exploration and evaluation expenditure incurred up to
establishment of resources is expensed as incurred. From the
point in time when reserves are established, or where there is
a reasonable expectation
for reserves, exploration and
evaluation expenditure is capitalised and carried forward in the
consolidated financial statements, in respect of areas of
interest for which the rights of tenure are current and where
such costs are expected to be recouped through successful
development and exploitation of the area of interest, or
alternatively, by its sale. Capitalised costs are deferred until
commercial production commences from the relevant area of
interest, at which time they are amortised on a unit of
production basis.
Exploration and evaluation expenditure consists of an
accumulation of acquisition costs and direct exploration and
evaluation costs incurred, together with an allocation of directly
related overhead expenditure.
Feasibility expenditures represent costs related
the
preparation and completion of a feasibility study to enable a
development decision to be made in relation to that area of
interest. Pre-feasibility expenditures are expensed as incurred
until a decision has been made to proceed to feasibility at which
time the costs are capitalised.
to
Exploration and evaluation assets not relating to operating
assets are assessed for impairment if (i) sufficient data exists
to determine technical feasibility and commercial viability, and
(ii) facts and circumstances suggest that the carrying amount
exceeds
the purpose of
impairment testing, exploration and evaluation assets are
allocated to cash-generating units to which the exploration
activity relates.
the recoverable amount. For
When an area of interest is abandoned, or the Directors
determine it is not commercially viable to pursue, accumulated
costs in respect of that area are written off in the period the
decision is made.
Accounting judgements and estimates
Exploration and evaluation expenditure is capitalised where
reserves have been established for an area of interest, or
where there is a reasonable expectation for reserves, and it is
considered likely to be recoverable from future exploitation or
sale. The accounting policy requires management to make
certain estimates and assumptions as to future events and
circumstances, in particular whether an economically viable
extraction operation is likely. These estimates and assumptions
may change as new information becomes available. If, after
having capitalised the expenditure under the accounting policy,
a judgement is made that recovery of the expenditure is
unlikely, the relevant capitalised amount will be written off to
the consolidated income statement.
St Barbara Directors and Financial Report / 30 June 2021
10. Rehabilitation provision
Consolidated
2021
$'000
2020
$'000
Current
Provision for rehabilitation
8,160
354
Provisions, including those for legal claims and rehabilitation
and restoration costs, are recognised when the Group has a
present legal or constructive obligation as a result of past
events, it is more likely than not that an outflow of resources
will be required to settle the obligation, and the amount has
been reliably estimated. Provisions are not recognised for
future operating losses.
61,701
69,861
53,162
53,516
The Group has obligations to dismantle, remove, restore and
rehabilitate certain items of property, plant and equipment and
areas of disturbance during mining operations.
Non-current
Provision for rehabilitation
Movements in Provisions
Rehabilitation
Balance at start of year
Acquired rehabilitation (Atlantic Gold)
Change in discount rate(1)
Unwinding of discount
Provision used during the year
Increase in provisions
Effects of movements in FX rates
Balance at end of year
53,516
-
-
-
-
18,266
(1,921)
69,861
31,090
12,951
7,372
1,953
(58)
-
208
53,516
(1) Represents a reduction in real discount rate to 0% applied to the
rehabilitation provision at all operations in the prior year. This reduction was
reflective of the reduction in the long term government bond rates.
A provision is made for the estimated cost of rehabilitation and
restoration of areas disturbed during mining operations up to
reporting date but not yet rehabilitated. The provision also
includes estimated costs of dismantling and removing the
assets and restoring the site on which they are located. The
provision is based on current estimates of costs to rehabilitate
such areas, discounted to their present value based on
expected future cash flows. The estimated cost of rehabilitation
includes
topsoiling and
revegetation to meet legislative requirements. Changes in
estimates are dealt with on a prospective basis as they arise.
the current cost of contouring,
There is some uncertainty as to the extent of rehabilitation
obligations that will be incurred due to the impact of potential
changes in environmental legislation and many other factors
(including future developments, changes in technology and
price increases). The rehabilitation liability is remeasured at
each reporting date in line with changes in the timing and /or
amounts of the costs to be incurred and discount rates. The
liability is adjusted for changes in estimates. Adjustments to the
estimated amount and timing of future rehabilitation and
restoration cash flows are a normal occurrence in light of the
significant judgments and estimates involved.
Accounting judgements and estimates
Mine rehabilitation provision requires significant estimates and
assumptions as there are many transactions and other factors
that will ultimately affect the liability to rehabilitate the mine
sites. Factors that will affect this liability include changes in
regulations, prices fluctuations, changes in technology, and
changes in timing of cash flows which are based on life of mine
plans. When these factors change or are known in the future,
such differences will impact the mine rehabilitation provision in
the period in which it becomes known.
St Barbara Annual Report 2021 | 67
St Barbara Directors and Financial Report / 30 June 2021
C. Capital and risk
11. Working capital
Trade and other receivables
Consolidated
Current
Trade receivables
Other receivables(1)
Loan receivable
Prepayments
Total
2021
$'000
826
25,493
11,500
2,482
2020
$'000
630
8,070
-
2,525
40,301
11,225
(1) Consist mainly of a tax receivable from the ATO as well as goods and
service tax and harmonized sales tax refunds due to the Company at the end of
the year.
Non-current
Loan receivable
Total
Inventories
Current
Consumables
Ore stockpiles
Gold in circuit
Bullion on hand
Non-current
Ore stockpiles
Total
4,250
4,250
-
-
Consolidated
2021
$'000
61,368
3,061
18,073
4,126
86,628
2020
$'000
58,862
4,432
12,720
11,387
87,401
40,077
126,705
33,335
120,736
Trade and other payables
Consolidated
Current
Trade payables
Other payables
Total
2021
$'000
67,107
2,476
69,583
2020
$'000
63,550
3,420
66,970
68 | St Barbara Annual Report 2021
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost, less provision for
doubtful debts. Trade receivables are usually due
for
settlement no more than 30 days from the date of recognition.
Collectability of trade receivables is reviewed on an ongoing
basis. Debts which are known to be uncollectible are written off.
The amount of the provision for doubtful receivables is the
difference between the asset’s carrying amount and the
present value of estimated future cash flows, discounted at the
effective interest rate.
The Group does not have material trade receivables for which
there is an expected credit loss though the consolidated income
statement. It only sells to reputable banks, refiners and
commodity traders.
Amounts receivable from Director related entities
At 30 June 2021, there were no amounts receivable from
Director related entities (2020: $Nil).
Raw materials and consumables, ore stockpiles, gold-in-circuit
and bullion on hand are valued at the lower of cost and net
realisable value.
labour and an
Cost comprises direct materials, direct
appropriate proportion of variable and
fixed overhead
expenditure relating to mining activities, the latter being
allocated on the basis of normal operating capacity. Costs are
assigned to individual items of inventory on the basis of
weighted average costs. Net realisable value is the estimated
selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs
necessary to make the sale.
Accounting judgements and estimates
The calculation of net realisable value (NRV) for ore stockpiles,
gold in circuit and bullion on hand involves judgement and
estimation in relation to timing and cost of processing, future
gold prices, exchange rates and processing recoveries. A
change in any of these assumptions will alter the estimated
NRV and may
the carrying value of
inventories.
therefore
impact
These amounts represent liabilities for goods and services
provided to the Group prior to the end of the financial year,
which remain unpaid as at reporting date. The amounts are
unsecured and are usually paid within 30 days from the end of
the month of recognition.
St Barbara Directors and Financial Report / 30 June 2021
12. Financial risk management
Financial risk management
The Group’s management of financial risk is aimed at ensuring
net cash flows are sufficient to withstand significant changes in
cash flow under certain risk scenarios and still meet all financial
commitments as and when they fall due. The Group continually
monitors and tests its forecast financial position and has a
detailed planning process that forms the basis of all cash flow
forecasting.
The Group's normal business activities expose it to a variety of
financial risk, being: market risk (especially gold price and
foreign currency risk), credit risk and liquidity risk. The Group
may use derivative instruments as appropriate to manage
certain risk exposures.
the Group Treasury
Risk management in relation to financial risk is carried out by a
centralised Group Treasury function in accordance with Board
approved directives that underpin Group Treasury policies and
processes. The Treasury Risk Management Committee assists
function, Executive
and advises
Leadership Team, Audit and Risk Committee and Board in
discharging their responsibilities in relation to forecasted risk
profiles, risk issues, risk mitigation strategies and compliance
with Treasury policy. Group Treasury regularly reports the
findings to the Treasury Risk Management Committee and the
Board.
(a) Market risk
Market risk is the risk that changes in market prices, such as
commodity prices, foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its
holdings of financial instruments, cash flows and financial
position. The Group may enter into derivatives, and also incur
financial liabilities, in order to manage market risks. All such
transactions are carried out within directives and policies
approved by the Board.
(b) Currency risk
The Group is exposed to currency risk on gold sales,
purchases, cash holdings and interest bearing liabilities that
are denominated in a currency other than the Company’s
presentation currency of Australian dollars. The currencies in
which transactions primarily are denominated are Australian
Dollars (AUD), United States Dollars (USD), Papua New
Guinea Kina (PGK) and Canadian Dollars (CAD).
The exchange rates at the reporting date were as follows:
Closing rate as at
30 June 2021
30 June 2020
AUD/USD
AUD/PGK
AUD/CAD
0.7501
2.5644
0.9296
0.6904
2.3364
0.9351
Exposure to currency
USD
Cash and cash equivalents
Trade receivables
Trade payables
Interest bearing liabilities
PGK
Cash and cash equivalents
Trade receivables
Trade payables
CAD
Cash and cash equivalents
Trade receivables
Trade payables
Interest bearing liabilities
5,150
326
(6,592)
(879)
7,712
166
(1,402)
39,330
291
(5,269)
-
6,321
133
(2,322)
36,700
1,658
(10,389)
(80,288)
82,314
1,415
(1,668)
(105,966)
Sensitivity analysis:
The following table details the Group's sensitivity to a 10%
movement (i.e. increase or decrease) in the AUD against the
USD, PGK and CAD at the reporting date, with all other
variables held constant. The 10% sensitivity is based on
reasonably possible changes, over a financial year, using the
observed range of actual historical rates for the preceding five
year period:
Impact on Profit After Tax
(Increase)/decrease profit
2021
$'000
266
(266)
5,465
2020
$'000
(3,435)
3,435
3,491
AUD/USD +10%
AUD/USD -10%
AUD/CAD +10%
AUD/CAD -10%
PGK against the AUD has been reviewed and considered an immaterial
currency risk.
(5,465)
(3,491)
Significant assumptions used in the foreign currency exposure
sensitivity analysis above include:
(cid:120) Reasonably possible movements in foreign exchange rates.
(cid:120) The translation of the net assets in subsidiaries with a
functional currency other than the Australian dollar has not
been included in the sensitivity analysis as part of the equity
movement.
St Barbara Annual Report 2021 | 69
St Barbara Directors and Financial Report / 30 June 2021
(cid:120) The net exposure at the reporting date is representative of
what the Group is expected to be exposed to in the next 12
months.
(cid:120) The sensitivity analysis only includes the impact on the
balance of financial assets and financial liabilities at the
reporting date.
(c) Interest rate exposures
The Group Treasury function manages the interest rate
exposures according to the Board approved Treasury policy.
Any decision to hedge interest rate risk is assessed in relation
to the overall Group exposure, the prevailing interest rate
market, and any funding counterparty requirements.
70 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
12
Financial risk management (continued)
Credit risks related to deposits and derivatives
(d) Capital management
The Group’s total capital is defined as total shareholders’ funds
plus net debt. The Group aims to maintain an optimal capital
structure
the cost of capital and maximise
shareholder returns. The Group has a capital management
plan that is reviewed by the Board on a regular basis.
to reduce
Consolidated capital
2021
$’000
2020
$’000
Total shareholders’ funds
1,113,667
1,348,977
Borrowings
(109,253)
(331,766)
Cash and cash equivalents(1)
109,253
331,766
Credit risk from balances with banks, financial institutions and
derivative counterparties is managed by the centralised Group
Treasury function in accordance with the Board approved
policy. Investments of surplus funds are only made with
approved counterparties with a minimum Standard & Poor’s
credit rating, and there is a financial limit on funds placed with
any single counterparty.
transactions are only made with approved
Derivative
counterparties
in accordance with the Board approved
Treasury Policy. Derivative transactions do not cover a major
proportion of total Group production, with maturities occurring
over a relatively short period of time.
Total capital
1,113,667
1,348,977
(f) Cash flow hedges
(1) Cash and cash equivalents are included to the extent that the net
debt position is nil.
The Group does not have a target net debt/equity ratio. In July
2019 the Group established an A$200,000,000 syndicated
facility to support the Group following the acquisition of Atlantic
Gold. This facility was restructured in December 2019 to
combine the A$200,000,000 facility with the C$100,000,000
debt facility acquired as part of the acquisition of Atlantic Gold.
The syndicated facility has a term that expires on 23 July 2022.
The Group is not subject to externally imposed capital
requirements other than normal banking requirements.
Investments and other financial assets
The Group classifies its investments and other financial assets
in the following categories: financial assets at fair value through
the consolidated income statement or other comprehensive
income, and assets measured at amortised cost. The
classification depends on
the
investments were acquired and are determined at initial
recognition. The Group has made an irrevocable election at the
time of initial recognition to account for the current equity
investments at fair value through other comprehensive income.
the purpose
for which
Investments and other financial assets are recognised initially
at fair value plus, for assets not at fair value through profit and
loss, any directly attributable transaction costs.
(e) Credit risk
Credit risk is the risk that a counter party does not meet its
obligations under a financial instrument or customer contract,
with a maximum exposure equal to the carrying amount of the
financial assets as recorded in the consolidated financial
statements. The Group is exposed to credit risk from its
operating activities (primarily customer receivables) and from
its financing activities, including deposits with banks and
financial institutions and derivatives.
Credit risks related to receivables
The Group’s most significant customer accounts for $186,000
of the trade receivables carrying amount at 30 June 2021
(2020: $62,000), representing receivables owing from ore
processing services. Based on historic rates of default, the
Group believes that no impairment has occurred with respect
to trade receivables, and none of the trade receivables at
30 June 2021 were past due.
The Group’s revenue is exposed to spot gold price risk. Based
upon sensitivity analysis, a movement in the average spot price
of gold during the year of $100 per ounce and all other factors
remaining constant, would have changed after tax profit by
$23,121,000.
In accordance with the Group’s financial risk management
policies, the Group has managed commodity price risk from
time to time using gold forward contracts as described below.
Forward contracts acquired from Atlantic Gold with a forward
price of C$1,549 per ounce were restructured with the effect of
lifting the forward price to C$1, 759 per ounce. This was
achieved by selling gold call options with delivery dates from
March 2021 to December 2022 at a strike price of C$2,050 per
ounce.
As physical delivery of gold is used to close out forward
contracts, the standard provides an “own use” exemption under
which the Group is not subject to the requirements of AASB 9
for these contracts. All forward gold contracts were closed out
during the year. The gold call options do not qualify for hedge
accounting as they do not protect against gold price risk.
The maturity profile of the gold call options remaining as at
30 June 2021 is provided in the table below.
Strike Price
Total
ounces
6
months
or less
ounces
6 – 12
months
ounces
1 – 2
years
ounces
2 – 5
years
ounces
Call options
C$2,050/oz.
66,010
18,000
23,000
25,010
-
Cash flow hedge sensitivity
The relationship between currencies, spot gold price and
volatilities is complex and changes in the spot gold price can
influence volatility, and vice versa.
At 30 June 2021, the Group did not hold any gold forwards to
hedge against the risk of negative movements in the gold price,
however this is reviewed by the Board as part of the risk
management framework.
Changes in the fair value of the call options are recognised in
the income statement.
St Barbara Annual Report 2021 | 71
St Barbara Directors and Financial Report / 30 June 2021
12
Financial risk management (continued)
(g) Fair value estimation
The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Group
approximates carrying value. The fair value of other monetary financial assets and financial liabilities is based upon market prices.
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement, or for disclosure
purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and securities) is
based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the
current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined
using generally accepted valuation techniques. The Group uses a variety of methods and makes assumptions that are based on
market conditions existing at each balance date.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values.
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current
market interest rate that is available to the Group for similar financial instruments.
1 year or
less
$’000
Over 1 to 5
years
$’000
Fixed Interest Maturing in 2021
Financial assets
Cash and cash equivalents
Restricted cash and cash equivalent
Receivables
Financial assets(1)
Weighted average interest rate
Financial liabilities
Trade and other payables
Lease liabilities
Loans from other entities
Derivative financial liabilities
Weighted average interest rate
Floating
Interest rate
$’000
133,370
-
-
-
133,370
0.18%
-
-
-
-
-
n/a
-
-
11,500
-
11,500
8.50%
-
9,327
84,216
8,750
102,293
2.68%
Non-
interest
bearing
$’000
-
-
26,319
42,163
68,482
n/a
-
69,583
-
-
-
-
-
4,250
-
4,250
8.50%
15,709
-
5,338
21,047
1.58%
Total
$’000
Fair value
$’000
133,370
133,370
-
42,069
42,163
-
42,069
42,163
217,602
217,602
n/a
n/a
69,583
25,036
84,216
14,088
69,583
25,036
84,216
14,088
69,583
192,923
192,923
n/a
(1,101)
n/a
24,679
n/a
24,679
Net financial assets
133,370
(90,793)
(16,797)
72 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
Fixed Interest Maturing in 2020
Financial assets
Cash and cash equivalents
178,038
227,503
Restricted cash and cash equivalent
Receivables
Financial assets(1)
Weighted average interest rate
Financial liabilities
Trade and other payables
Lease liabilities
Loans from other entities(2)
Derivative financial liabilities
Weighted average interest rate
-
-
-
178,038
0.26%
-
-
-
-
-
n/a
-
-
-
227,503
-
-
-
-
-
-
-
8,700
48,905
57,605
405,541
405,541
-
8,700
48,905
-
8,700
48,905
463,146
463,146
0.86% n/a
n/a
-
12,199
-
-
12,199
4.14%
-
66,970
15,378
307,404
-
322,782
-
-
37,448
104,418
2.76% n/a
66,970
27,577
307,404
37,448
439,399
66,970
27,577
308,707
37,448
440,702
Net financial assets
(322,782)
(1) Fair value is determined based on Level 1 inputs as the balance represents investments in listed securities.
(2) Excludes capitalised borrowing costs of $3,215,000.
215,304
178,038
(46,813)
23,747
22,444
(h)
Liquidity risk
Prudent liquidity risk management requires maintaining sufficient cash and marketable securities, the availability of funding through
an adequate amount of committed credit facilities and the ability to close out market positions.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows, and matching maturity profiles of financial
assets and liabilities. The Group undertakes sensitivity analysis to stress test the operational cash flows, which are matched with
capital commitments to assess liquidity requirements. The capital management plan provides the analysis and actions required in
detail for the next twelve months and longer term.
Surplus funds are invested in instruments that are tradeable in highly liquid markets.
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash
flows, which includes interest obligations over the term of the facilities.
Maturity of financial liabilities – 2021
Trade and other payables
Lease liabilities
Syndicated facility
Call options
Maturity of financial liabilities – 2020
Trade and other payables
Lease liabilities
Syndicate facility(1)
Call options
(1) Excludes capitalised borrowing costs of $3,215,000.
Less than
12 months
$‘000
Between 1
and 5 years
$‘000
Over 5
years
$‘000
Total
contractual
cash flows
$‘000
Carrying
amount
$‘000
69,583
8,903
88,858
8,750
176,094
66,970
13,025
8,571
5,760
94,326
-
14,935
-
5,338
20,273
-
16,100
316,640
31,688
364,428
-
2,295
-
-
69,583
26,133
88,858
14,088
69,583
25,036
84,216
14,088
2,295
198,662
192,923
-
-
-
-
-
66,970
29,125
325,211
37,448
458,754
66,970
27,577
307,404
37,448
439,399
St Barbara Annual Report 2021 | 73
Cash and cash equivalents include cash on hand, deposits and
cash at call held at financial institutions, other short term, highly
liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk
of changes in value.
Cash at bank and on hand
Cash at bank at 30 June 2021 was invested “at call” earning
interest at an average rate of 0.18% per annum (2020: 0.26%
per annum)
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount
is recognised in the consolidated income statement over the
period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities, which are not
incremental costs relating to the actual draw down of the
facility, are recognised as prepayments and amortised on a
straight line basis over the term of the facility.
St Barbara Directors and Financial Report / 30 June 2021
13. Net debt
Cash and cash equivalents
Consolidated
Cash at bank and on hand
Term deposits
Interest bearing liabilities
Current
Secured
Lease liabilities
Syndicated facility(
1)
38F
Total current
Non-current
Secured
Lease liabilities
Syndicated facility
Capitalised borrowing costs
Total non-current
2021
$'000
2020
$'000
133,370
178,038
-
227,503
133,370
405,541
Consolidated
2021
$'000
2020
$'000
9,327
12,199
84,216
-
93,543
12,199
15,709
15,378
-
-
307,404
(3,215)
15,709
319,567
Total interest-bearing liabilities
109,252
331,766
1
Refer to note 21 – Events occurring after the balance sheet date for details of
reclassification
Profit before income tax includes the following specific
expenses:
Finance Costs
Interest paid/payable
Bank fees and borrowing costs
Finance lease interest
Provisions: unwinding of discount
Consolidated
2021
$'000
4,658
2,431
907
-
2020
$'000
5,971
2,036
3,295
1,953
7,996
13,255
.
74 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
13. Net debt (continued)
14. Contributed equity
Details
Number of
shares
$'000
Opening balance 1 July 2020
703,094,616
1,422,290
Vested performance rights
Shares issued on DRP
487,435
4,441,738
1,284
10,999
Closing balance 30 June 2021
708,023,789
1,434,573
Contributed equity
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares and
performance rights are recognised as a deduction from equity,
net of any tax effects.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends
and the proceeds on winding up of the Company in proportion
to the number of and amounts paid on the shares held. On a
show of hands every holder of ordinary shares present at a
meeting in person or by proxy, is entitled to one vote, and upon
a poll each share is entitled to one vote.
Reconciliation of (loss)/profit from ordinary activities
after income tax to net cash flows from operating
activities
Consolidated
2021
$'000
2020
$'000
(Loss)/profit after tax for the year
(176,596)
128,230
Depreciation and amortisation
187,870
165,366
Impairment loss on assets
Capitalised exploration write off
349,296
8,000
-
-
Net derivative movement
(22,897)
9,152
Difference between income tax expenses
and tax payments
(103,320)
(7,027)
Unwinding of rehabilitation provision
-
1,953
Unrealised/realised foreign exchange
(profit)/loss
Equity settled share-based payments
Change in operating assets and liabilities
(5,316)
1,765
2,377
2,472
Receivables and prepayments
(4,166)
3,338
Inventories
Other assets
Trade creditors and payables
(6,874)
(7,813)
1,213
2,379
(5,673)
(2,691)
Provisions and other liabilities
(4,256)
(10,151)
Net cash flows from operating activities
227,098
279,533
St Barbara Annual Report 2021 | 75
St Barbara Directors and Financial Report / 30 June 2021
D. Business portfolio
15. Parent entity disclosures
As at, and throughout, the financial year ended 30 June 2021,
the parent company of the Group was St Barbara Limited.
Financial statements
16. Financial assets and fair value of financial
assets
Consolidated
2021
$'000
2020
$'000
Results of the parent entity
Profit after tax for the year
Other comprehensive (loss)/profit
Parent Entity
2021
$'000
2020
$'000
8,599
38,732
(3,117)
6,281
Current
Investment in private company
-
5,999
Non-current
Australian listed shares and equity
42,163
42,906
Total comprehensive income for the year
5,482
45,013
Other comprehensive income is set out in the Consolidated
statement of comprehensive income.
At the 30 June 2021 reporting date, the Group’s non-current
financial assets of $42,163,000 (30 June 2020: $42,906,000)
represented investments in shares listed on the Australian
Securities Exchange, which are valued using Level 1 inputs.
These financial assets relate to the Company’s investment in
the following Australian Securities Exchange listed companies:
Financial position of the parent entity
at year end
Current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity
comprising:
Share capital
Reserves
Dividend payments
Accumulated losses
Total equity
2021
$'000
2020
$'000
(cid:120) Peel Mining Limited (PEX)
(cid:120) Catalyst Metals Limited (CYL)
139,703
310,468
(cid:120) Duketon Mining Limited (DKM)
1,093,583
1,264,445
74,656
65,331
138,838
330,041
1,434,573
1,422,290
(8,228)
(11,345)
(56,356)
(55,815)
(415,244)
(420,726)
954,745
934,404
The Group recognised Level 1, 2 and 3 financial assets on a
recurring fair value basis as at 30 June 2021 as follows:
Level 1: The fair value of financial instruments traded in active
markets is based on quoted market prices at the end of the
reporting period. The quoted marked price used for financial
assets held by the group is the close price. These instruments
are included in level 1.
Level 2: The fair value of financial instruments that are not
traded in an active market is determined using valuation
techniques, which maximise the use of observable market data
and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on
observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities.
Transactions with entities in the wholly-owned group
St Barbara Limited is the parent entity in the wholly-owned
group comprising
its wholly-owned
the Company and
subsidiaries. It is the Group’s policy that transactions are at
arm’s length.
During the year the Company charged management fees of
$6,251,000 (2020: $7,019,000), operating lease rents of $Nil
(2020: $Nil), and paid interest of $3,179,000 (2020: $546,000)
to entities in the wholly-owned group.
Net loans payable to the Company amount to a net payable of
$118,212,000 (2020: net payable $53,011,000).
Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have
been eliminated on consolidation.
76 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
17. Controlled entities
The consolidated financial statements incorporate the assets,
liabilities and results of the following subsidiaries in
accordance with the accounting policy on consolidation.
Except as noted below, all subsidiaries are 100% owned at
30 June 2020 and 30 June 2021.
Parent entity
St Barbara Limited
Subsidiaries of St Barbara Limited
Allied Gold Pty Ltd
Subsidiaries of Allied Gold Pty Ltd
Nord Pacific Limited
Subsidiaries of Nord Pacific Limited
Nord Australex Nominees (PNG) Ltd
Simberi Gold Company Limited
Atlantic Mining NS Inc.(1)
Moose River Resources(1)
Country of
Incorporation
Australia
Australia
Canada
PNG
PNG
Canada
Canada
(1)On 14 September 2020, the Group, through its subsidiary Atlantic Mining
Nova Scotia, acquired the remaining 93% of the issued shares of Moose River
Resources Incorporated (“MRRI”) resulting in 100% St Barbara ownership.
St Barbara Annual Report 2021 | 77
St Barbara Directors and Financial Report / 30 June 2021
E. Remunerating our people
18. Employee benefit expenses and other
provisions
Expenses
Consolidated
Employee related expenses
Wages and salaries
Retirement benefit obligations
Equity settled share-based payments
2021
$'000
2020
$'000
85,909
100,005
7,262
1,765
7,436
2,472
94,936
109,913
Key management personnel
Consolidated
Short term employee benefits
Post-employment benefits
Leave
Share-based payments
2021
$'000
2,438
102
210
910
3,660
2020
$'000
3,193
81
248
924(1)
4,446
(1) FY20 share-based payments comparative has been revised from $144,000
to $924,000 for an accounting correction.
Other provisions
Consolidated
Current
Employee benefits – annual leave
Employee benefits – long service leave
Other provisions
Non-current
Employee benefits - long service leave
2021
$'000
5,531
3,200
5,200
2020
$'000
5,665
4,512
9,745
13,931
19,922
2,286
2,286
1,937
1,937
78 | St Barbara Annual Report 2021
Wages and salaries, and annual leave
Liabilities for wages and salaries, including non-monetary
benefits and annual leave expected to be paid within 12 months
of the reporting date, are recognised in other payables in
respect of employees' services up to the reporting date and are
measured at the amounts expected to be paid, including
expected on-costs, when the liabilities are settled.
Retirement benefit obligations
Contributions to defined contribution funds are recognised as
an expense as they are due and become payable. The Group
has no obligations in respect of defined benefit funds.
Equity settled share-based payments
Performance rights issued to employees are recognised as an
expense by reference to the fair value of the equity instruments
at the date at which they are granted. Refer to Note 19 for
further information.
Executive incentives
Senior executives may be eligible for short term incentive
payments (“STI”) subject to achievement of key performance
indicators, as recommended by the Remuneration Committee
and approved by the Board of Directors. The Group recognises
a liability and an expense for STIs in the reporting period during
which the service is provided by the employee.
Disclosures relating
to Directors and key management
personnel are included within the Remuneration Report, with
the exception of the table opposite.
Employee related and other provisions are recognised when
the Group has a present legal or constructive obligation as a
result of past events, it is more likely than not that an outflow of
resources will be required to settle the obligation, and the
amount has been reliably estimated.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may be
small.
Long service leave
The liability for long service leave is recognised in the provision
for employee benefits and measured as the present value of
expected future payments to be made, plus expected on-costs,
in respect of services provided by employees up to the
reporting date. Consideration is given to the expected future
wage and salary levels, experience of employee departures
and periods of service. Expected future payments are
discounted with reference to market yields on corporate bonds
with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflow
St Barbara Directors and Financial Report / 30 June 2021
19. Share-based payments
Employee Performance Rights
During the year ended 30 June 2021, there was no amount transferred as a gain for performance rights that expired during the year
(2020: $2,367,000). Accounting standards preclude the reversal through the consolidated income statement of amounts that have
been booked in the share-based payments reserve for performance rights, and which satisfy service conditions but do not vest due
to market conditions.
Set out below are summaries of performance rights granted to employees under the St Barbara Limited Performance Rights Plan
approved by shareholders:
Consolidated and parent entity 2021
Grant Date
Expiry Date Issue price
24 Oct 2018
30 Jun 2021
21 Dec 2018
30 Jun 2021
27 Nov 2019
30Jun 2021
27 Nov 2019
30 Jun 2022
03 Feb 2020
30 Jun 2022
28 Oct 2020
30 Jun-2022
24 Jul 2020
30 Sep 2023
28 Oct 2020
30 Sep 2023
2 Nov 2020
30 Sep 2023
Total
Consolidated and parent entity 2020
16 Nov 2017
30 Jun 2020
24 Oct 2018
30 Jun 2021
21-Dec 2018
30 Jun 2021
27 Nov 2019
30 Jun 2020
27 Nov 2019
30 Jun 2021
27 Nov 2019
30 Jun 2022
03 Feb 2020
30 Jun 2022
03 Feb 2020
30 Jun 2022
$4.92
$4.92
$2.91
$2.91
$2.91
$2.91
$3.15
$3.15
$2.73
$2.89
$4.92
$4.92
$2.91
$2.91
$2.91
$2.91
$3.15
Granted
during the
year
Number
Vested during
the year
Number
Expired
during the
year
Number
Balance at
end of the
year
Number
Exercisable
at end of the
year
Number
Balance at
start of the
year
Number
683,038
54,523
50,982
1,381,392
86,664
-
-
-
-
-
(152,289)
(590,582)
(4,427)
(10,400)
(50,096)
(40,582)
-
-
-
-
-
-
-
-
-
(331,605)
1,049,787
(60,309)
-
26,355
107,388
(248,357)
1,277,608
-
-
238,095
123,809
-
-
-
-
107,388
1,525,965
238,095
123,809
2,256,599
1,995,257
(167,116)
(1,321,531)
2,823,042
1,175,059
711,080
54,523
-
-
-
-
-
-
-
-
56,544
56,544
1,505,276
86,664
107,388
(341,277)
(833,782)
-
-
(16,824)
-
-
-
-
(28,042)
-
(39,720)
(5,562)
-
683,038
54,523
-
50,982
(123,884)
1,381,392
-
-
86,664
107,388
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
1,940,662
1,812,416
(358,101)
(1,030,990)
2,363,987
-
St Barbara engaged BDO Corporate Finance to provide an
opinion on the fair value of the performance and retention rights
issued during the year. The assessed fair value of these rights
was $4,428,000. This outcome was based on the likelihood of
the market and non-market conditions being met as at the date
the rights vest.
The weighted average
life of
performance rights outstanding at the end of the year was 1.5
years (2020: 1.1 years). Conditions associated with rights
granted during the year ended 30 June 2021 included:
remaining contractual
(cid:120) Rights are granted for no consideration. The vesting of rights
granted in 2021 is subject to a continuing service condition
as at the vesting date, Return on Capital Employed over a
three-year period (for the key management personnel only),
and relative Total Shareholder Return over a three year
period measured against a peer group.
(cid:120) Performance rights do not have an exercise price.
(cid:120) Any performance right that does not vest will lapse.
(cid:120) Grant date varies with each issue.
The fair value of rights issued was adjusted according to
estimates of the likelihood that the market conditions will be
met. A Monte-Carlo simulation was performed using data at
grant date to assist management in estimating the probability
of the rights vesting.
St Barbara Annual Report 2021 | 79
St Barbara Directors and Financial Report / 30 June 2021
Expenses arising from share-based payment transactions
Total expenses arising from equity settled share-based
payment transactions recognised during the year as part of the
employee benefit expenses were as follows:
Consolidated
2021
$
2020
$
Performance rights issued under
performance rights plan
1,765,000
2,472,000
Accounting judgements and estimates
The Group measures the cost of equity settled transactions
with employees by reference to the fair value of the equity
instruments at the date at which they are granted.
Where the vesting of share-based payments contains market
conditions, in estimating the fair value of the equity instruments
issued, the Group assesses the probability of the market
conditions being met, and therefore the probability of fair value
vesting, by undertaking a Monte-Carlo simulation. The
simulation performs sensitivity analysis on key assumptions in
order to determine potential compliance with the market
performance conditions. The simulation specifically performs
sensitivity analysis on share price volatility based on the
historical volatility for St Barbara Limited and the peer group
companies. The results of the Monte-Carlo simulation are not
intended to represent actual results but are used as an
estimation tool by management to assist in arriving at the
judgment of probability.
.
80 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
F. Further disclosures
20. Remuneration of auditors
During the year the following fees were paid or payable for
services provided by PricewaterhouseCoopers Australia, the
auditor of the parent entity, and its related practices:
Consolidated
2021
2020
$
$
401,130
407,820
24,969
24,969
PricewaterhouseCoopers Australia audit
and review of financial reports
PricewaterhouseCoopers Papua New
Guinea audit and review of financial
reports
Accounting advice and other assurance
related services
Taxation consulting services
Total remuneration for audit and non-audit
related services
5,500
-
-
32,950
431,599
465,739
21. Events occurring after the balance sheet
date
The Directors are not aware of any matter or circumstance that
has arisen since the end of the financial year that, in their
opinion, has significantly affected or may significantly affect in
future years the Company’s or the Group’s operations, the
results of those operations or the state of affairs, except as
described in this note.
Due to the non-cash impairment at 30 June 2021 the Group
was not able to satisfy certain ratio covenants under the terms
of the syndicated facility. As a result, the amount outstanding
to current
on the facility was reclassified from non-current
liabilities at the reporting date. Subsequent to year end a waiver
from compliance with the relevant covenants has been granted
by the lenders in accordance with the terms of the facility.
Subsequent to year end, the directors have declared a fully
franked final dividend in relation to the 2021 financial year of 2
cents per ordinary share, to be paid on 30 September 2021. A
provision for this dividend has not been recognised in the
30 June 2021 consolidated financial statements.
22. Contingencies
As a result of the Australian Taxation Office’s (ATO) program
of routine and regular tax reviews and audits, the Group
anticipates that ATO reviews and audits may occur in the
future. The ultimate outcome of any future reviews and audits
by tax authorities cannot be determined with an acceptable
degree of reliability at this time. Nevertheless, the Group
believes it is making adequate provision for its tax liabilities,
including amounts shown as deferred tax liabilities, and takes
reasonable steps to address potentially contentious issues with
the ATO.
St Barbara Annual Report 2021 | 81
The assets and liabilities recognised as a result of
acquisition are as follows:
the
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Property, plant and equipment
Mineral rights
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net identifiable assets acquired
Net assets acquired
Provisional
Fair value
$’000
58
100
158
20,284
67,044
87,328
87,486
235
235
24,452
24,452
24,687
62,799
62,799
St Barbara Directors and Financial Report / 30 June 2021
23. Business combinations
On 14 September 2020, the Group, through its subsidiary
Atlantic Mining Nova Scotia, acquired the remaining 93% of the
issued shares of Moose River Resources
Incorporated
(“MRRI”) resulting in 100% St Barbara ownership.
Current Year
The acquisition of MRRI consolidates 100 percent of the
Touquoy Mine and surrounding tenements within St Barbara.
The initial accounting for the acquisition of MRRI was
provisionally determined at 31 December 2020. The necessary
calculations have been finalised as at 30 June 2021 and
therefore the fair value of the assets and liabilities have been
reported as final in this report.
Prior Year
On 19 July 2019, the Group, through its subsidiary Nord Pacific
Limited, acquired 100 percent of the issued shares of Atlantic
Gold Corporation (“Atlantic Gold”), a gold mining, development
and exploration company with operations in Nova Scotia,
Canada.
Details of this business combination were disclosed in note 23
of the Group’s annual financial statements for the year ended
30 June 2020.
Consideration transferred
Cash and cash equivalents(1)
Total Consideration
Consolidated
2020
$'000
2019
$'000
62,799
779,857
62,799
779,857
Goodwill arising on acquisition
Consideration transferred(1)
62,799
779,857
Less: Fair value of identifiable net
assets acquired
(62,799)
(779,857)
Total goodwill arising on acquisition
-
-
Consideration paid in cash
62,176
779,857
Less: Cash and cash equivalents
balance acquired
(58)
(4,207)
Net cash out flow on acquisition
62,118
775,650
(1) Consideration transferred during the year ended 30 June 2021 was
$62,176,000. $623,000 was paid as a deposit in June 2020.
82 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
24. Basis of preparation
Basis of measurement
The consolidated financial statements have been prepared on
the historical cost basis, except for the following material items:
(cid:120) Financial assets are measured at fair value;
(cid:120) Share based payment arrangements are measured at fair
value;
(cid:120) Derivative financial liabilities are measured at fair value;
level 1 financial assets, are included in the fair value reserve in
equity.
The assets and liabilities of controlled entities incorporated
overseas with functional currencies other than Australian
dollars are translated into the presentation currency of
St Barbara Limited (Australian dollars) at
the year-end
exchange rate and the revenue and expenses are translated at
the rates applicable at the transaction date. Exchange
differences arising on translation are taken directly to the
foreign currency translation reserve in equity.
(cid:120) Rehabilitation provision is measured at net present value;
Critical accounting judgement and estimates
(cid:120) Long service leave provision is measured at net present
value.
Principles of consolidation - Subsidiaries
The consolidated financial statements incorporate the assets
and liabilities of all subsidiaries of St Barbara Limited as at
30 June 2021 and the results of all subsidiaries for the year
then ended.
Subsidiaries are all those entities (including special purpose
entities) over which the Group has the power to govern the
financial and operating policies, and as a result has an
exposure or rights to variable returns, generally accompanying
a shareholding of more than one-half of the voting rights. The
existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing
whether the Group controls another entity. Subsidiaries are
consolidated from the date on which control commences until
the date control ceases.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
Foreign currency translation
Both the functional and presentation currency of St Barbara
Limited and its Australian controlled entities is Australian
the Simberi
dollars (AUD). The
Operations is US dollars (USD), and the functional currency of
the Atlantic Operations is Canadian dollars (CAD).
functional currency of
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions, and from the translation at
year end exchange rates of monetary assets and liabilities
denominated in foreign currencies, are recognised in the
consolidated income statement, except when deferred in equity
as qualifying cash flow hedges and qualifying net investment
hedges.
Translation differences on non-monetary financial assets and
liabilities are reported as part of the fair value gain or loss.
Translation differences on non-monetary financial assets and
liabilities, such as equities held at fair value through profit or
loss, are recognised in the consolidated income statement as
part of the fair value gain or loss. Translation differences on
non-monetary financial assets, such as equities classified as
The preparation of consolidated financial statements
in
conformity with AASB and IFRS requires management to make
judgements, estimates and assumptions
the
application of accounting policies and the reported amount of
assets, liabilities, income and expenses. Actual results may
differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
that affect
25. Accounting standards
New Standards adopted
financial
The accounting policies applied by the Group in this 30 June
2021 consolidated
report are consistent with
Australian Accounting Standards. All new and amended
Australian Accounting Standards
interpretations
mandatory as at 1 July 2020 to the group have been adopted
and have no material impact on the recognition.
and
The Group has adopted all of the new and revised Standards
and Interpretations issued by the AASB that are relevant to its
operations and effective for the current full year report, with no
material impacts to the financial statements.
Critical accounting judgement and estimates
The preparation of consolidated financial statements requires
management to make judgements, estimates and assumptions
that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.
St Barbara Annual Report 2021 | 83
St Barbara Directors and Financial Report / 30 June 2021
Directors’ declaration
1
In the opinion of the directors of St Barbara Limited (the Company):
(cid:11)(cid:68)(cid:12)
the consolidated financial statements and notes that are contained in pages 46 to 8(cid:22) and the remuneration report
in the Directors’ report, set out on pages 21 to 42, are in accordance with the Corporations Act 2001, including:
(cid:11)(cid:76)(cid:12)
(cid:11)(cid:76)(cid:76)(cid:12)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for
the financial year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(cid:11)(cid:69)(cid:12)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief
executive officer and chief financial officer for the financial year ended 30 June 2021.
The directors draw attention to page 46 of the consolidated financial statements, which includes a statement of compliance
with International Financial Reporting Standards.
2
3
Signed in accordance with a resolution of the Directors:
Craig Jetson
Managing Director and CEO
Melbourne
26 August 2021
84 | St Barbara Annual Report 2021
Independent auditor’s report
To the members of St Barbara Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of St Barbara Limited (the Company) and its controlled entities (together the
Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
(cid:3511)
(cid:3511)
(cid:3511)
(cid:3511)
(cid:3511)
(cid:3511)
the consolidated balance sheet as at 30 June 2021
the consolidated comprehensive income statement for the year then ended
the consolidated statement of changes in equity for the year then ended
the consolidated cash flow statement for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies and
other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities
in accordance with the Code.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of the financial report.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
St Barbara Annual Report 2021 | 85
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on
the financial report as a whole, taking into account the geographic and management structure of the Group, its
accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
Key audit matters
(cid:3511)
(cid:3511)
Our audit focused on where the
Group made subjective
judgements; for example,
significant accounting estimates
involving assumptions and
inherently uncertain future
events.
The Group operates mines in
Western Australia, Papua New
Guinea (PNG) and Nova Scotia,
Canada and has a centralised
corporate accounting function
based in Melbourne.
(cid:3511)
Amongst other relevant topics,
we communicated the following
key audit matters to the Audit
and Risk Committee:
(cid:3381)
(cid:3381)
Assessing the carrying
value of mining assets
Accounting for the cost of
rehabilitation
(cid:3511)
These are further described in
the Key audit matters section of
our report.
(cid:3511)
For the purpose of our audit we
used overall Group materiality of
$6.2 million, which represents
approximately 5% of the Group’s
three year adjusted weighted
average of profit before tax.
(cid:3511) We applied this threshold,
together with qualitative
considerations, to determine the
scope of our audit and the nature,
timing and extent of our audit
procedures and to evaluate the
effect of misstatements on the
financial report as a whole.
(cid:3511) We chose Group profit before tax
because, in our view, it is the
benchmark against which the
performance of the Group is most
commonly measured, and due to
fluctuations in profit and loss from
year to year, we chose an
adjusted weighted three year
average.
(cid:3511) We utilised a 5% threshold based
on our professional judgement,
noting that it is within the range
of commonly accepted profit
related thresholds.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report for the current period. The key audit matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in
that context.
86 | St Barbara Annual Report 2021
Key audit matter
How our audit addressed the key audit matter
Assessing the carrying value of mining assets
(Refer to note 8)
As at 30 June 2021, the Group recognised $344 million of
Property, Plant and Equipment, $206 million of Mine
Properties, $154 million of Exploration and Evaluation, and
$569 million of Mineral Rights on the consolidated balance
sheet (together the mining assets).
During the year the Group identified an indicator of
impairment and therefore undertook an impairment
assessment of each CGU. The recoverable amounts of the
CGUs were assessed under the fair value less cost of
disposal method, using discounted cash flow models (the
models).
The Group recognised an impairment charge of $349
million before tax on its mining assets related to the
Atlantic Gold CGU. No impairment charge was recognised
for either of the Leonora or Simberi CGUs.
The impairment assessment required the Group to make
significant judgements in relation to assumptions, such as:
Short and long-term gold prices and currency
(cid:3511)
exchange rates
Production levels
Discount rates
Operating costs, future capital expenditure, and
Permitting of new mines at Atlantic Gold.
(cid:3511)
(cid:3511)
(cid:3511)
(cid:3511)
This was a key audit matter due to the significance of the
carrying value of mining assets to the consolidated
balance sheet and the judgements and assumptions
outlined above in determining the recoverable amount
and whether an impairment charge was required.
We performed the following procedures, amongst others,
for all CGUs:
(cid:3511) Assessed whether the division of the Group’s mining
assets into CGUs, which are the smallest identifiable
group of assets that can generate largely independent
cash flows, was consistent with our knowledge of the
Group’s operations.
(cid:3511) Assessed whether each CGU appropriately included all
directly attributable assets and liabilities.
(cid:3511) Assessed whether the valuation methodology, utilising
a discounted cash flow model to estimate the
recoverable amount of each CGU, was consistent with
the basis required by Australian Accounting Standards.
(cid:3511) Assessed the Group’s judgement in relation to the
timing of permitting of new mines by comparing to a
sample of technical planning documents.
(cid:3511) Assessed whether the forecast cash flows in the
models were appropriate by comparing:
- Short and long-term gold pricing data and currency
-
-
-
exchange rate assumptions used to current
independent industry forecasts, assisted by PwC
valuation experts.
the Group’s forecast gold production over the life
of mine to the Group’s most recent reserves and
resources statements
the forecast cash flows to historical actual cash
flows achieved by each CGU for previous years to
assess the accuracy of the Group’s forecasting, and
the forecast cash flows including operating costs
and capital expenditure to the most recent internal
budgets, Life of Mine operating plans and other
technical planning documents on a sample basis.
(cid:3511) Assessed the discount rate used for each CGU, assisted
by PwC valuation experts.
(cid:3511) Performed tests of the mathematical accuracy of the
models’ calculations, and
(cid:3511) Evaluated the reasonableness of the disclosures made
in Note 8 in light of the requirements of Australian
Accounting Standards.
St Barbara Annual Report 2021 | 87
Accounting for the cost of rehabilitation
(Refer to note 10)
To assess the Group’s rehabilitation provisions, we
performed the following procedures, amongst others:
The Group is required under the laws and regulations of
Western Australia, PNG and Nova Scotia, Canada to
rehabilitate the Gwalia, Simberi and Atlantic Gold
operations respectively, at the completion of mining
activities.
At 30 June 2021 the consolidated balance sheet included
provisions for such obligations of $70 million.
Calculating the rehabilitation obligations requires
significant estimation and judgement by the Group.
Assumptions are required to be made in respect of
methods of rehabilitation, timing of cash flows, changes to
discount rates as well as the potential for changes in
regulatory requirements and technology.
Given the financial significance of this balance and the
judgemental factors outlined above, the accounting for
the cost of rehabilitation was a key audit matter.
(cid:3511)
(cid:3511)
(cid:3511)
(cid:3511)
Obtained the Group’s calculation of the
rehabilitation provisions. We checked the
mathematical accuracy of these calculations on
a sample basis and whether the timing of the
cash flows in the rehabilitation models was
consistent with the Life of Mine plans.
Evaluated the competency and independence of
the experts used by the Group to assist with the
assessment of its rehabilitation obligations.
Assessed whether the significant rehabilitation
cost assumptions made within the models were
appropriate by comparing these, on a sample
basis, to other similar costs incurred by the
Group.
Assessed whether the discount rates used in the
rehabilitation models were appropriate by
comparing them to those generally used in the
industry to discount liabilities of this nature.
Other information
The directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2021, but does not include the financial report and
our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
88 | St Barbara Annual Report 2021
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf.
This description forms part of our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 21 to 42 of the directors’ report for the year ended
30 June 2021.
In our opinion, the remuneration report of St Barbara Limited for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
PricewaterhouseCoopers
John O'Donoghue
Melbourne
26 August 2021
St Barbara Annual Report 2021 | 89
St Barbara Directors and Financial Report / 30 June 2021
(cid:50)(cid:85)(cid:72)(cid:3)(cid:53)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:48)(cid:76)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)
(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)
90 | St Barbara Annual Report 2021
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(cid:50)(cid:85)(cid:72)(cid:3)(cid:53)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:76)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:20)
Ore Reserves and Mineral Resources Statements as at 30 June 2021
(cid:120) Group Ore Reserves increased ~4% to 6.2 Moz of contained gold, net after depletion
(cid:120) Group Mineral Resources increased ~13% to 13.1Moz of contained gold, net after depletion
(cid:120)
(cid:120)
Resource extension drilling has contributed to an increase in Gwalia Mineral Resources and Ore Reserves
Review of material type models has resulted in an increase in Simberi Oxide + Transitional Reserves
Company Summary
(cid:120)
Total Ore Reserves are estimated at: 101 Mt @ 1.9 g/t Au for 6.2 Moz of contained gold, comprising:
(cid:120)
(cid:120)
(cid:120)
Leonora Operations 15.9 Mt @ 4.9 g/t Au for 2.5 Moz of contained gold
Simberi Operations 35.3 Mt @ 1.8 g/t Au for 2.1 Moz of contained gold
Atlantic Operations 49.9 Mt @ 1.0 g/t Au for 1.7 Moz of contained gold
(cid:120)
Total Mineral Resources0F
1 are estimated at: 202.7 Mt @ 2.0 g/t Au for 13.1 Moz of contained gold, comprising:
(cid:120)
(cid:120)
(cid:120)
Leonora Operations 51.9 Mt @ 4.1 g/t Au for 6.8 Moz of contained gold
Simberi Operations 90.1 Mt @ 1.4 g/t Au for 4.2 Moz of contained gold
Atlantic Operations 60.7 Mt @ 1.1 g/t Au for 2.1 Moz of contained gold
The 30 June 2021 Ore Reserves and Mineral Resources Statements are attached.
1 Mineral Resources are reported inclusive of Ore Reserves
St Barbara Annual Report 2021 | 91
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Overview
St Barbara's Mineral Resources and Ore Reserves position at 30 June 2021, is summarised and compared with the 30 June 2020
statement in Table 1.
Project
Gwalia Deeps (WA)
Tower Hill (WA)
Total Leonora Operations
Simberi Oxide (PNG)
Simberi Transitional (PNG)
Simberi Sulphide (PNG)
Simberi Stockpile
Total Simberi Operations
Atlantic Operations (NS)
Atlantic Operations Stockpile
(NS)
Total Atlantic Operations
Grand Total
2020 Ore Reserves
FY21
Production
2021 Ore Reserves
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
(‘000)
Ounces
(‘000)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
(‘000)
9,407
2,572
11,979
7,737
-
22,638
678
31,053
45,070
5,450
50,520
93,552
6.3
3.7
5.7
1.2
-
2.4
0.6
2.1
1.1
0.5
1.1
2.0
1,892
306
2,198
293
-
1,765
12
2,070
1,647
89
1,737
6,005
153
74
101
13,308
2,572
15,880
4,675
6,378
24,010
188
35,251
43,480
6,400
49,880
328
101,011
5.2
3.7
4.9
1.2
1.5
2.0
2.3
1.8
1.1
0.5
1.0
1.9
2,221
306
2,527
178
307
1,563
14
2,062
1,558
97
1,655
6,244
Project
2020 Mineral Resources
2021 Mineral Resources
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
(‘000)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
(‘000)
Gwalia Deeps (WA)
22,595
6.0
4,386
Gwalia Open Pit (WA)
Harbour Lights (WA)
Tower Hill (WA)
Total Leonora Operations
Simberi Oxide (PNG)
Simberi Transitional (PNG)
Simberi Sulphide (PNG)
Total Simberi Operations
Atlantic Operations (NS)
Total Atlantic Operations
-
-
5,093
27,688
18,801
-
72,459
91,260
63,883
63,883
Grand Total
182,832
-
-
3.8
5.6
1.0
-
1.6
1.4
1.1
1.1
2.0
-
-
625
5,011
630
-
3,687
4,318
2,227
2,227
25,448
8,439
12,884
5,093
51,864
12,061
17,023
61,023
90,107
60,693
60,693
5.9
2.8
1.5
3.8
4.1
1.1
1.1
1.6
1.4
1.1
1.1
2.0
4,813
764
602
625
6,804
422
605
3,164
4,192
2,091
2,091
13,087
11,555
202,665
Table 1: St Barbara 2021 and 2020 Ore Reserves and Mineral Resources Comparison
The Company’s Ore Reserves and Mineral Resources have increased since June 2020 above net mining depletion as a
consequence of:
92 | St Barbara Annual Report 2021
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(cid:120)
(cid:120)
(cid:120)
The update of Mineral Resources and Ore Reserves for Gwalia Deeps with resource extension drilling and mine design
changes,
the inclusion of updated Mineral Resources for Gwalia Open Pit and Harbour Lights (refer ASX Release 21 June, 2021 -
‘Progress on the Leonora Province Plan’),
the reassessment of Gwalia Deeps, Simberi and Atlantic Ore Reserves at a higher gold price, A$2000/oz, US$1,500/oz
and C$1,948/oz (Touquoy and Beaver Dam only. Fifteen Mile Stream and Cochrane Hill used C$1,688/oz as per 30 June
2020 Ore Reserves) respectively.
Ore Reserves Revisions
Gwalia Deeps
The previous publicly reported Proved and Probable Ore Reserves Estimate reported at 30 June 2020 was 9,407,000 t @ 6.3 g/t Au
containing 1,892,000 ounces of gold. This has increased by 329,000 ounces of gold to 13,308,000 t @ 5.2 g/t Au containing
2,221,000 ounces of gold.
Gwalia Ore Reserves increased after mining depletion primarily due to resource extension and infill drilling which has extended
mineralisation along strike and at depth and upgraded some Inferred Resources to Indicated. Changes to the mine design which
have reduced development intensity have also helped with bringing these strike and depth extensions into the Ore Reserves along
with a higher gold price (from A$1,600/oz to A$2,000/oz). Resource extensions however, have a lower average grade than existing
Reserves and in combination with a lower cut-off grade has resulted in an overall reduction in Reserve grade from 6.3 g/t Au to 5.2
g/t Au.
Simberi Operations
The previous publicly reported Proved and Probable Ore Reserves Estimate reported at 30 June 2020 was 31,053,000 t @ 2.1 g/t
Au containing 2,070,000 ounces of gold. This has reduced by 8,000 ounces of gold to 35,251,000 t @ 1.8 g/t Au containing 2,062,000
ounces of gold.
Outside of mining depletion and notwithstanding a higher gold price (from US$1,300 to US$1,500) the Simberi Ore Reserves have
reduced, marginally because of the application of modifying factors (ore loss and dilution).
Transitional Ore Reserves, which were previously reported as part of the Sulphide Ore Reserves, are reported separately for the
first time due to the importance of this material type in the Simberi Life of Mine plan while work continues toward progressing the
mining and processing of sulphides. This change in reporting combined with a revised geological model has contributed to a reduction
in the Sulphide Ore Reserves but an increase in Oxide/Transitional Ore Reserves.
St Barbara Annual Report 2021 | 93
(cid:50)(cid:85)(cid:72)(cid:3)(cid:53)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:76)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:20)
Atlantic Operation
The previous publicly reported Proved and Probable Ore Reserves Estimate reported at 30 June 2020 was 50,250,000 t @ 1.1 g/t
Au containing 1,737,000 ounces of gold. This has reduced by 82,000 ounces of gold to 49,880,000 t @ 1.0 g/t Au containing
1,655,000 ounces of gold.
The decrease in the Ore Reserves is largely driven by mining depletion at Touquoy, partially offset by pit design changes for Beaver
Dam.
Mineral Resources Revisions
Gwalia Deeps
The previous publicly reported Measured, Indicated and Inferred Mineral Resources Estimate reported at 30 June 2020 was
22,595,000 t @ 6.0 g/t Au containing 4,386,000 ounces of gold. This has increased by 427,000 ounces of gold to 25,448,000 t @
5.9 g/t Au containing 4,813,000 ounces of gold.
Net of mining depletion Gwalia Mineral Resources have increased primarily due to resource extension and infill drilling which has
extended mineralisation along strike and at depth.
Gwalia Open Pit
As part of the Leonora Province Plan (LPP) remnant mineralisation at the Gwalia Mine between 280 and 500 metres below surface
was identified as a potential source of open pit mill feed, post the completion of underground mining. Existing unreported models
were reviewed and resulted in the addition of Measured and Indicated Mineral Resources of 8.4 million tonnes at 2.8 g/t Au containing
764,000 ounces of gold (refer ASX Release 21 June 2021 - ‘Progress on the Leonora Province Plan’).
Harbour Lights
Also as part of the LPP, a revised estimate of the Harbour Lights Mineral Resources was completed during the year adding Indicated
and Inferred Mineral Resources totalling 12,884,000 t @ 1.5 g/t Au containing 602,000 ounces of gold (refer ASX Release 21 June
2021 - ‘Progress on the Leonora Province Plan’).
Simberi Operations
The previous publicly reported Measured, Indicated and Inferred Mineral Resources Estimate reported at 30 June 2020 was
91,260,000 t @ 1.4 g/t Au containing 4,318,000 ounces of gold. This has decreased by 126,000 ounces of gold to 90,107,000 t @
1.4 g/t Au containing 4,192,000 ounces of gold.
Transitional Mineral Resources, which were previously reported as part of the Sulphide Mineral Resources, are reported separately
for the first time due to the importance of this material type in the Simberi Life of Mine plan. This change in reporting combined with
a revised geological model has contributed to a reduction in Sulphide Mineral Resources but an increase in Oxide/Transitional
Mineral Resources.
Atlantic Operations
The previous publicly reported Measured, Indicated and Inferred Mineral Resources Estimate reported at 30 June 2020 was
63,883,000 t @ 1.1 g/t Au containing 2,227,000 ounces of gold. This has reduced by 136,000 ounces of gold to 60,693,000 t @ 1.1
g/t Au containing 2,091,000 ounces of gold.
The Mineral Resources are unchanged and have been depleted for mining at the Touquoy pit.
94 | St Barbara Annual Report 2021
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St Barbara Annual Report 2021 | 95
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96 | St Barbara Annual Report 2021
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St Barbara Annual Report 2021 | 97
(cid:50)(cid:85)(cid:72)(cid:3)(cid:53)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:76)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:20)
JORC Code Compliance Statements
The information in this report that relates to Ore Reserves at Gwalia is based on information compiled by Mr. Kevin Oborne who is
a Member of the Australasian Institute of Mining and Metallurgy. Kevin Oborne is a full-time employee of Oborne Engineering Pty
Ltd 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”. Kevin Oborne consents to the inclusion in the statement of the matters
based on his information in the form and context in which it appears.
The information in this report that relates to Ore Reserves at Tower Hill is based on information compiled by Mr. Angus Roe who is
a Member of the Australasian Institute of Mining and Metallurgy. Angus Roe is a full-time employee of St Barbara Ltd 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”. Angus Roe consents to the inclusion in the statement of the matters based on his
information in the form and context in which it appears.
The information in this report that relates to Ore Reserves at Simberi Operations is based on information compiled by Mr. Cameron
Legg who is a Member of the Australasian Institute of Mining and Metallurgy. Cameron Legg is a full-time employee of Mining One
Pty Ltd 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. Cameron Legg consents to the inclusion in the statement of the matters
based on his information in the form and context in which it appears.
The information in this report that relates to Ore Reserves at Atlantic Operations is based on information compiled by Mr. Marc
Schulte who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Marc Schulte is an
associate of Moose Mountain Technical Services 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”. Marc Schulte consents
to the inclusion in the statement of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at Gwalia Deeps, Gwalia Open Pit, Harbour Lights and Tower Hill is
based on information compiled by Ms. Jane Bateman who is a Fellow of the Australasian Institute of Mining and Metallurgy. Jane
Bateman is a full-time employee of St Barbara Ltd and has sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which she 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”. Jane Bateman
consents to the inclusion in the statement of the matters based on her information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at Simberi Operations is based on information compiled by Mr. Chris
De-Vitry who is a Member of the Australasian Institute of Mining and Metallurgy. Chris De-Vitry is a full-time employee of Manna Hill
Geoconsulting 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”. Chris De-Vitry consents to the inclusion in the statement
of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at Atlantic Operations is based on information compiled by Mr. Neil
Schofield who is a Member of the Australasian Institute of Geoscientists. Neil Schofield is a full-time employee of FSSI Consultants
(Australia) Pty Ltd 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”. Neil Schofield consents to the inclusion in the statement
of the matters based on his information in the form and context in which it appears.
98 | St Barbara Annual Report 2021
St Barbara Directors and Financial Report / 30 June 2021
(cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)
(cid:44)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)
St Barbara Annual Report 2021 | 99
Page 1 of 91
Shareholder (cid:44)nformation as at 26 August 2021
Information on shareholders required by the ASX Listing Rules and not disclosed elsewhere in this report is set out
below.
The information refers to ‘ordinary fully paid shares’ (‘shares’) and is provided as at 26 August 20211.
Twenty Largest Shareholders2
Rank
Name
Shares
% of Issued
Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
286,901,533
85,653,115
64,952,452
42,378,505
CS THIRD NOMINEES PTY LIMITED
19,115,611
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BNP PARIBAS NOMINEES PTY LTD
ROVER INVESTMENTS PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
J & A VAUGHAN SUPER PTY LTD
CITICORP NOMINEES PTY LIMITED
MR ROBERT SCOTT VASSIE
CUBA PTY LTD
CRANFIELD PROPERTIES PTY LTD
MR TRUNG VAN LY
CS FOURTH NOMINEES PTY LIMITED
11,328,823
9,195,018
8,314,126
7,190,000
5,382,587
4,030,505
3,585,232
2,270,000
1,779,101
1,020,434
895,000
820,033
762,583
732,565
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
712,012
40.51
12.09
9.17
5.98
2.70
1.60
1.30
1.17
1.02
0.76
0.57
0.51
0.32
0.25
0.14
0.13
0.12
0.11
0.10
0.10
Total top 20 holders of ordinary fully paid shares
Total remaining holders
Total
557,019,235
151,271,670
78.64
21.36
708,290,905
100.00
1
The 2021 Directors’ and Financial Report was signed on 26 August 2021.
2 A number of the 20 largest shareholders shown in the table hold shares as a nominee or custodian. In accordance with the ASX Listing Rules, the table reflects the legal ownership of shares and
not the details of the beneficial holders.
100 | St Barbara Annual Report 2021
Shareholder (cid:44)nformation as at 26 August 2021
Distribution of Shareholdings
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unmarketable Parcels
Total holders
Shares
% of issued
capital
6,930
3,287,207
7,726
20,531,126
2,606
19,945,733
2,698
72,057,163
173
592,469,676
0.46
2.90
2.82
10.17
83.65
20,133
708,290,905
100.00
Minimum $500.00 parcel at $ 1.5350 per share1
2,764
446,473
326
Total holders
Shares
Minimum
parcel size
Substantial Shareholders2
Name
Date notice
released on ASX
Shares
% of issued
capital
Schroder Investment Management
3 June 2021
47,265,290
L1 Capital Pty Ltd
27 May 2021
42,622,118
6.68
6.04
End of Annual Report
1 Close price on 26 August 2021.
2 As notified by the substantial shareholders to the ASX as at 26 August 2021.
St Barbara Annual Report 2021 | 101
SHARE REGISTRY
Computershare Investment Services Pty Ltd
GPO Box 2975
Melbourne Victoria 3001 Australia
Telephone (within Australia): 1300 653 935
Telephone (international): +61 3 9415 4356
Facsimile: +61 3 9473 2500
AUDITOR
PricewaterhouseCoopers
2 Riverside Quay
Southbank Victoria 3006 Australia
Corporate Directory
BOARD OF DIRECTORS
T C Netscher
C A Jetson
S G Dean (cid:3) (cid:3) (cid:3)
K J Gleeson
S E Loader
Non-Executive Chairman
Managing Director & CEO
(cid:3)Non-Executive Director
Non-Executive Director
Non-Executive Director
D E J Moroney
Non-Executive Director
COMPANY SECRETARY
Sarah Standish
REGISTERED OFFICE
Level 10, 432 St Kilda Road
Melbourne Victoria 3004 Australia
Telephone: +61 3 8660 1900
Facsimile: +61 3 8660 1999
Email: info@stbarbara.com.au
Website: stbarbara.com.au
STOCK EXCHANGE LISTING
Shares in St Barbara Limited are quoted on the Australian Securities
Exchange
Ticker Symbol: SBM
102 | St Barbara Annual Report 2021
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St Barbara Annual Report 2021 | 103
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104 | St Barbara Annual Report 2021
St Barbara Annual Report 2021 | 105
stbarbara.com.au
106 | St Barbara Annual Report 2021