15 September 2023
2023 Annual Report
The 2023 Annual Report for St Barbara Limited (ASX: SBM) (“Company”) 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
Corporate Governance Statement released today and available at www.stbarbara.com.au.
Authorised by
Board of Directors
For more information
Investor Relations
David Cotterell
General Manager Business Development &
Investor Relations
info@stbarbara.com.au
T: +61 3 8660 1959
M: +61 447 644 648
Media Relations
Paul Ryan / Michael Weir
Citadel-MAGNUS
M: +61 409 296 511 / +61 402 347 032
St Barbara Limited ACN 009 165 066
Level 19, 58 Mounts Bay Road, Perth WA 6000
PO Box 1161, West Perth, WA 6872
T +61 8 9476 5555 www.stbarbara.com.au
ASX: SBM
ADR: STBMY
Annual
Report
2023
We are St Barbara
An Australian based, ASX listed company with gold mining operations
in Canada and Papua New Guinea.
We are driven by our values-led culture and adhere to our five
commitments.
Our commitments
Our values
Safety Always
We act with honesty and integrity
We treat people with respect
We value working together
We deliver to promise
We strive to do better
Empowered People, Diverse Teams
Stronger Communities
Growing Sustainably
Respecting the Environment
Contents
Our company ..........................................................................I
Letter to shareholders .......................................................II
FY23 overview ........................................................................V
Our operations .....................................................................VI
Building a culturally diverse and
inclusive St Barbara .........................................................VII
Our sustainability framework .....................................VII
Directors and Financial Report .....................................1
Ore Reserves and Mineral Resource .....................87
Shareholder Information and Corporate
Directory ................................................................................95
St Barbara Limited ABN 36 009 165 066
Our assets
*
* The sale of Leonora Operations was completed 30 June 2023
Leonora Operations
Simberi Operations
Atlantic Operations
Gwalia underground mine
Simberi open pit mine
Touquoy open pit mine
FY23 production
138koz
The Leonora assets were sold to
Genesis Minerals Limited on
30 June 2023 for total consideration
of $638 million
FY23 production
78 koz
Achieved upper end of production
guidance
Oxide mine life extended into FY26
Sulphide drilling and updated
studies to inform investment
decision ahead of renewal of
Mining Lease in FY28
FY23 production
44 koz
Met production guidance
Focused on Fifteen Mile stream as
next production centre
Exploration potential at Cochrane
Hill, Mooseland, Southwest and
Coldboro East
St Barbara 2023 Annual Report | I
Letter to our shareholders
We enter the new
We enter the new
financial year
financial year focused
focused on
on delivering value
delivering positive
from our Simberi and
outcomes for our
Fifteen Mile Stream
people, our
projects and the
shareholders and
wider investment and
communities.
exploration portfolio.
Dear shareholder
The 2023 financial year (FY23) was
challenging and transformational,
culminating in the sale of our
Leonora Operations and delivering a
significant capital return of $268
million to St Barbara shareholders
through Genesis Minerals shares.
Group performance for the year
delivered solid results with
production at the top end of
guidance at 260,368 ounces and our
All-in sustaining cost (AISC) below
the bottom end of guidance at
$2,443 per ounce. We started FY24 in
a strong financial position with $294
million cash at bank and no debt.
[1]
Financial performance
We reported a statutory loss after tax
of $429 million for the year, including
non-cash after tax impairments
totaling $376 million for Atlantic
Operations and $74 million for
Simberi Operations.
The impairments for Atlantic were as
a result of the delays in permitting
approvals for our planned Beaver
Dam mine and of in-pit tailings
storage that would have extended
production from the Touquoy
processing facility, as well as an
increase in anticipated reclamation
costs. The impairment for Simberi
relates to delayed development
timing for the Simberi Sulphide
Expansion Project.
Underlying loss after tax for the year
was $13 million with EBITDA
(excluding significant items) of $114
million. While Simberi and Atlantic
Operations performed within the
upper end of expectations for the
year, the underlying performance for
the Group reflects the performance
at Leonora Operations which failed
to recover during the year to the
level of improvement in underground
ore extraction rates required to offset
the declining mine grade at Gwalia.
Atlantic Operations delivered to
guidance producing 43,998 ounces
at an AISC of $2,244 per ounce.
During the first quarter, production at
Atlantic was impacted by Post-
Tropical Storm Fiona; the strongest
storm recorded in Canadian history.
While the site lost power, which
impacted production, the site’s
advanced storm preparations
resulted in no major damage to
infrastructure and no environmental
breaches.
Simberi Operations achieved the
upper end of guidance with
production of 78,320 ounces at an
AISC of $2,419 per ounce. In
particular, Q4 delivered the best
production in three years as a result
of high grades from the Sorowar pit.
People and safety performance
Throughout the uncertainty of the
year we maintained our focus on
Safety Always. Zero harm is always
our target.
We have robust health and safety
system standards and training, and
our Safety Always program
continues to drive cultural change
across the Group. Now in its third
year, the program focuses on
personal safety and empowers
every employee to share personal
stories about why safety is important
to them.
On 30 June 2023 we completed the
sale of our Leonora Operations,
repaid our debt facilities and ended
the year with $294 million cash at
bank and no debt. Whilst tax on the
profit of the sale and a portion of the
transaction costs remained to be
paid at year end, we are now well
positioned to deliver on our plans to
realise the development potential at
both our Atlantic and Simberi
Operations.
Operational performance
Operational challenges at Gwalia in
the first half of the year impacted
performance and altered the outlook
for the financial year, with a
downgrade in guidance issued in
October 2022. The underground
performance stabilised in the
second half of the year and Leonora
Operations finished the financial year
with production above revised
guidance at 138,050 ounces and
AISC within guidance at $2,521 per
ounce. Delivery of the inaugural
Mineral Resources and Ore Reserves
Statement for Tower Hill also added
560koz to Ore Reserves.
[1] Cash includes $47 million in relation to the Touquoy reclamation security bond and before
tax payments on the sale of the Leonora Assets and transaction costs
St Barbara 2023 Annual Report | II
Despite this continued focus on
safety, our Total Recordable Injury
Frequency Rate (TRIFR) increased
from 3.4 in FY22 to 4.1 in FY23, with a
number of injuries in the first four
months of the year (including two
lost time injuries). Encouragingly
across the remainder of FY23 there
were multiple months without a
recordable injury. This is reflected in
the TRIFR three month moving
average of 3.7 to June 2023.
Our global exploration team
continued their excellent safety
performance and are now three
years reportable injury free. At
Atlantic, in recognition for their safety
achievements, the team won the
2023 John T Ryan Regional East
Safety Trophy for the Best
Performance in Health and Safety in
the Select Mines category from the
Canadian Institute of Mining,
Metallurgy and Petroleum.
As part of our continued
commitment to diversity and
inclusion we are an Employer of
Choice for Gender Equality from
Workplace Gender Equality Agency
(WGEA) and remain focused on
providing a safe and inclusive
workplace for all employees.
FY24 priorities
Looking ahead, there are a number
of priority areas for St Barbara: at
both Atlantic and Simberi and also
at a corporate level.
At Atlantic, the delays in permitting
approval have resulted in early
completion of low grade stockpile
processing at Touquoy and that
plant will be placed on care and
maintenance. The priority is the
standalone development of Fifteen
Mile Stream with the relocation of the
Touquoy processing plant confirmed
as an attractive development option.
As a result the Company has
withdrawn existing permit
applications relating to in-pit tailings
at Touquoy and the previous
development plans for Beaver Dam
and Fifteen Mile Stream.
At Fifteen Mile Stream the Company
plans to complete a Prefeasibility
Study by November 2023, along with
submission of new permitting
applications once the revised project
design is sufficiently advanced.
Another area of focus is exploration
drilling which is planned at Cochrane
Hill, Goldboro East, Mooseland and
Southwest.
An outcome of the Strategic Review
of Simberi Operations was
confirmation that the oxide mine life
could extend to FY26. Focus areas for
Simberi are the extension drilling to
confirm mineralisation below the
current pit outlines as well as
conversion of mineralisation to be
included in an update to our Mineral
Resource and Ore Reserve in Q4
FY24. This information will be used to
update the study work on the
Sulphide Expansion Project and help
inform the investment decision
ahead of the Mining Lease renewal in
FY28.
At a corporate level, the focus is on
managing expenditure and a
disciplined approach to capital
management. Following the change
in our operational footprint, we
dramatically reduced our corporate
function and undertook an
organisational restructure. We now
have a small, nimble leadership
team focused on bringing our
development projects to decision
points as rapidly as possible.
New Leadership
During this transformational year
there have been a number of Board
and management changes. In
November 2022 Mr Craig Jetson
resigned as Managing Director and
Chief Executive Officer and the
Company moved quickly to appoint
Mr Dan Lougher to the role to focus
on stabilising the performance from
Gwalia underground following the
downgrade in production
announced in October 2022. We
thank Craig for his efforts particularly
through the impacts of the global
pandemic.
Mr Dan Lougher retired at the end of
the financial year, following the
completion of the sale of Leonora
Operations, and we thank Dan for his
leadership in the second half of the
year with Gwalia meeting revised
guidance and the successful
conclusion of the Leonora
transaction. Mr Andrew Strelein was
appointed as Managing Director and
CEO on 1 July 2023.
Ms Kerry Gleeson was appointed as
Non-Executive Chair following the
retirement of Mr Tim Netscher in April
2023. Tim served as Director and
Chairman over multiple terms
overseeing significant changes and
challenges in that time and on
behalf of the Board we thank Tim for
his dedicated years of service.
In line with the Board’s renewal
process announced in April 2023,
with a view to refreshing the Board
while retaining some continuity to
support the Group post the sale of
Leonora, and following a review of
the skills matrix, we appointed three
new independent non-executive
directors, Mr Mark Hine, Ms Joanne
Palmer and Mr Warren Hallam, on 7
September 2023.
Mark, Joanne and Warren bring
appropriate skills and
complementary experience to the
Board, particularly in project
development and international
operations.
In addition, as part of the Board
renewal process, Mr David Moroney
has indicated he will retire from the
Board with effect on 31 December
2023. We take this opportunity to
welcome Mark, Joanne and Warren
to the Board and thank David for his
contribution to St Barbara over the
last eight years, including as Chair of
Audit and Risk Committee.
Mr Mark Hine, Ms Joanne Palmer and
Mr Warren Hallam will stand for
election at the Company’s Annual
General Meeting on 25 October
2023. With these changes, we will
continue to review the composition
of the Board and maintain our
commitment to best practice
corporate governance
This financial year has been one of
significant change for St Barbara.
However, with a change of
leadership and a new operational
footprint we enter the new financial
year ready to focus on delivering
positive outcomes for our people,
shareholders and communities.
On behalf of the Board, the
leadership team and everyone at
St Barbara, we would like to thank
shareholders for your continued
support. To St Barbara employees
we thank you for all your hard work
and commitment throughout this
challenging year.
Kerry Gleeson
Independent Non-Executive Chair
Andrew Strelein
Managing Director & CEO
St Barbara 2023 Annual Report | III
St Barbara 2023 Annual Report | IV
FY23 overview
A year of transformation:
Full year gold production of 260,368 ounces and AISC of $2,443 per ounce
Total Recordable Injury Frequency Rate of 4.1
Sale of our Leonora Operations for a consideration of approximately $638 million
Cash of $294 million and no debt as at 30 June 2023
Total recordable injury frequency rate
Gold production (ounces)
5
4
3
2
1
0
5.0
3.9
FY23
4.1
4.1 TRIFR
3.0
3.4
400,000
300,000
200,000
100,000
7
8
8
,
1
8
3
6
4
3
2
6
3
,
2
6
6
7
2
3
,
FY23
260,368
ounces of gold
,
6
4
7
0
8
2
8
6
3
0
6
2
,
FY19
FY20
FY21
FY22
FY23
St Barbara Group
0
FY19
FY20
FY21
FY22
FY23
All-In Sustaining Cost (A$/oz)
Ore Reserves and Mineral Resources (Moz)
2,500
2,000
1,500
1,000
500
0
6
6
1
,
1
9
6
3
,
1
0
8
0
,
1
3
4
4
2
,
FY23
A$2,443/oz
8
4
8
,
1
Leonora
Simberi
Atlantic
FY23
+560 koz
Tower Hill
Ore Reserves
16.5
2.0
4.2
10.3
16.4
1.9
4.0
10.4
20
15
10
5
0
6.2
1.6
2.1
2.5
6.5
1.5
2.0
3.0
FY19
FY20
FY21
FY22
FY23
31 Dec 2021 31 Dec 2022
Ore Reserves
31 Dec 2021 31 Dec 2022
Mineral Resources
19%
81%
St Barbara 2023 Annual Report | V
Leonora
Operations
The Gwalia underground
mine is located outside
Leonora, 235 kilometres
from Kalgoorlie-Boulder,
Western Australia.
The Leonora Operations
include the Gwalia 1.4mtpa
processing plant and
underground mine, as well
as nearby development
opportunities.
Atlantic
Operations
The Atlantic Operations are
located approximately
80 kilometres northeast of
Halifax in Nova Scotia,
Canada. Open cut mining
of the Touquoy open pit
commenced in 2017, with
commercial production
commencing in March
2018.
The Fifteen Mile Stream
Project, ~40 kilometres
east-northeast of Touquoy,
is being designed as a
standalone operation and
the next stage of
development for the
Atlantic Operations.
Simberi
Operations
Simberi is an open cut
mining operation situated
on the northern most island
of the Tabar Group, in New
Ireland Province of Papua
New Guinea.
The Sulphide Expansion
Project is expected to
extend Simberi’s life by
more than ten years. More
than 90 percent of the
workforce are from Simberi
Island, the nearby Tabar
Islands, and other parts of
Papua New Guinea,
meaning sustainable
economic opportunities for
local families.
FY23 highlights
FY23 highlights
FY23 highlights
Safety performance: TRIFR
Safety performance: TRIFR
Safety performance: TRIFR
3.5
9.0
1.2
Gold production
Gold production
Gold production
44
koz
138
koz
78
koz
All-In Sustaining Cost
All-In Sustaining Cost
All-In Sustaining Cost
$2,244
Mineral Resources
/oz
$2,521
Mineral Resources
/oz
$2,419
Mineral Resources
/oz
1.9
Moz
Ore Reserves
1.5
Moz
St Barbara 2023 Annual Report | VI
10.4
Ore Reserves
Moz
3.0 Moz
4.0
Moz
Ore Reserves
2.0 Moz
Building a culturally diverse and inclusive St Barbara
Our goal is to provide an equitable workplace. We achieved in three critical areas during the year
and continued making progress towards our other objectives during a year of transformation.
As we move into the new financial year, we will review and update our diversity objectives in line
with our new strategic focus and operational footprint.
Objective
1
Maintain the percentage
of women on the board
(including MD & CEO)
As at 30
June 2020
As at 30
June 2021
As at 30
June 2022
Target
By
As at 30
June 2023
33%
33%
40%
33% Ongoing 50%
2 Maintain nil gender pay gap
for like-for-like roles
0%
0%
0%
0% Ongoing
0%
3 Increase the proportion of
women in the Australia workforce
26%
28%
26%
35%
30 June
2024
22%
4 Reduce the overall gender
pay gap at Leonora Operations
12%
8%
7%
5 Increase the proportion of Aboriginal
employees in the Leonora Operations
3%
2%
1%
5%
30 June
2024
5%
30 June
2024
4%
2%
6 Increase the proportion of women
in the Leonora Operations
-
-
16%
20%
30 June
2024
13%
7 Increase the proportion
of women in the Simberi Operations
15%
16%
16%
18%
30 June
2024
16%
8 Increase the proportion
of women in the Atlantic Operations
19%
23%
21%
30%
30 June
2024
25%
9
Increase the proportion
of First Nations employees
in the Atlantic Operations
3%
2%
2%
5%
30 June
2024
2%
St Barbara 2023 Annual Report | VII
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 ensure 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 sustainability and climate change targets will be reviewed and updated to reflect the change in
our operational footprint.
St Barbara 2023 Annual Report | VIII
Directors and
Financial Report
30 JUNE 2023
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 2023.
The following persons were Directors of St Barbara Limited at
any time during the year and up to the date of this report:
T C Netscher (retired 28 April 2023)
Non-Executive Chair
K J Gleeson
Non-Executive Chair (appointed 28 April 2023)
Non-Executive Director
D Lougher (appointed 28 November 2022)
(retired 30 June 2023)
Managing Director & CEO
A Strelein (appointed 1 July 2023)
Managing Director & CEO
C A Jetson (resigned 28 November 2022)
Managing Director & CEO
S E Loader
Non-Executive Director
D E J Moroney
Non-Executive Director
The qualifications, experience and special responsibilities of the
Directors in office are presented on page 15.
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.
St Barbara Directors and Financial Report / 30 June 2023
Contents
Directors’ Report
Directors
Principal activities
2
2
2
3
Overview of group results
Analysis of Leonora Operations (discontinued operations) 5
6
Analysis of Simberi Operations
7
Discussion and analysis of the consolidated comprehensive
8
Analysis of Atlantic Operations
income statement
Discussion and analysis of the consolidated cash flow
statement
Risk management
Directors’ interests
Meetings of directors
Material business risks
Regulatory environment
Information on Directors
Information on Executives
9
Discussion and analysis of the consolidated balance sheet 9
10
Business strategy and future prospects
10
13
14
15
18
19
19
20
42
42
42
42
42
43
43
44
45
Events occurring after the end of the financial year
Indemnification and insurance of officers
Proceedings on behalf of the company
Auditor’s Independence Declaration
Environmental management
Auditor independence
Remuneration Report
Rounding of amounts
Non-audit services
Financial Report
2 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Overview of group results
The consolidated results for the year are summarised as
follows:
EBITDA(3)(6)
EBIT(2)(6)
Loss before tax(4)
Statutory loss(1) after tax
2023
$’000
2022
$’000
(416,933)
(32,427)
(523,792)
(192,226)
(534,736)
(196,626)
(429,199)
(160,821)
Total net significant items after tax(7)
(416,447)
(184,919)
EBITDA(6) (excluding significant
items)
EBIT(6) (excluding significant items)
(Loss)/profit before tax (excluding
significant items)
Underlying net profit/(loss) after
tax(5)(6)
113,779
197,244
6,920
(4,024)
37,445
33,045
(12,752)
24,098
Details of significant items (excluding the operating profit after
tax from discontinued operations) included in the statutory
profit/(loss) for the year are reported in the table below.
Descriptions of each item are provided in Note 3 to the
Financial Report.
Call option fair value movements
Building Brilliance transformation
Expected Credit Loss
2023
$’000
-
-
(26,262)
2022
$’000
(2,488)
(3,641)
-
Impairment loss on assets
(588,534)
(223,542)
Corporate redundancies
Profit on sale of Leonora assets
(2,649)
86,733
-
-
Significant items before tax
(530,712)
(229,671)
Tax effect of impairment
138,045
64,827
Tax effect of profit on sale of Leonora
(26,020)
-
Tax effect of other items
Tax losses de- recognised
8,674
1,814
(6,434)
(21,889)
Significant items after tax
(416,447)
(184,919)
(1) Statutory loss is net loss 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) Profit/(loss) 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.
(7) Total significant items after tax exclude the after tax operating profit from discontinuing
operations
The Group’s underlying net loss after tax of $12,752,000
reflects the results from all three operations during the year
(Leonora, Simberi and Atlantic). While Simberi returned a
gross profit in the 2023 financial year (compared with a gross
loss generated in 2022 as a result of only operating for the last
six months following the shutdown arising from the deep sea
tailings placement (DSTP) pipeline failure in May 2021), the
decline in the underlying loss compared with the prior year is
largely driven by lower operating profit from Atlantic and
Leonora operations as a result of lower production at both
operations, together with higher mine operating costs such as
diesel and reagents.
The asset sale of the Leonora operation to Genesis Minerals
Limited was completed on the 30 June 2023 resulting in a pre-
tax $86,733,000 profit on sale.
Atlantic Operations announced in July 2023 that due to the
inability to obtain permits for in-pit tailings deposition within a
reasonable time, the operations will move to care and
maintenance by the end of September 2023.
The key results for the year were:
Statutory net loss after tax of $429,199,000 (2022: loss of
$160,821,000) after recognising an after-tax impairment
write off in relation to the Atlantic and Simberi cash
generating units of $450,489,000 partially offset by an after-
tax profit on sale of Leonora of $60,713,000;
Production for the Group totalled 260,368 ounces (2022:
280,746 ounces);
EBITDA loss of $416,933,000 (2022: $32,427,000 loss)
reflecting the significant impact of the impairment write off in
Atlantic and Simberi and lower operating results at Leonora
and Atlantic;
Cash contribution from operations (including discontinued
operations) of $75,437,000 (2022: $77,180,000) after
sustaining and growth capital totalling $87,102,000 (2022:
$129,485,000). Lower cash contribution at Leonora and
Atlantic was due to reduced production, and higher operating
costs. This was offset by Simberi’s return to positive cash
contribution compared with the prior corresponding period
when the DSTP pipeline was being rebuilt, and a higher gold
price realised across the group in the current year;
No dividends were declared or paid in relation to the 2023 or
2022 financial years.
to
the cash contribution
The material increase in cash to a closing balance of
$247,037,000 was due
from
operations of $75,437,000 plus the receipt of cash proceeds of
$371,596,000 from the sale of the Leonora asset. These
inflows were offset by cash payments of $159,196,000 to close
out the syndicated debt facilities and $4,495,000 to repay lease
liabilities relating to equipment used at Leonora. Other cash
outflows included corporate and exploration activities, as well
as payments for financing, tax, and royalties.
The closing cash balance excludes cash on deposit for
restricted funds of $46,907,000 provided as security for letters
of credit issued for the Atlantic reclamation bond. These
restricted
funds are classified under “trade and other
receivables” in the Balance Sheet.
interest-bearing
(2022: $171,638,000),
Total
liabilities at 30 June 2023 were
leases
$12,875,000
associated with ‘right-of-use’ assets of $3,938,000 (2022:
$8,537,000) and
leases of $7,497,000 (2022:
$18,627,000). The decrease against the prior year is a result
of the repayment of syndicated debt facility (2022: balance of
$140,083,000) and the repayment of the Australian finance
leases.
including
finance
St Barbara Annual Report 2023 | 3
St Barbara Directors and Financial Report / 30 June 2023
Impact of COVID-19
The business has transitioned to a “COVID-19 normal”
approach to management of identified cases within the
operations or waves of illness. At all sites, the business
promoted uptake in vaccination programs and application of
key controls, including the use of masks, physical distancing,
good hygiene practices, testing for illness and self-isolation.
These controls are now standard in our response to an
escalation of risk.
At Simberi, a new COVID-19 wave in November 2022
prompted the reintroduction of testing and the reintroduction of
masks to help protect the community and personnel working at
the site. The sites remain vigilant of the risk and the approach
now implemented demonstrates the flexibility and agility of the
sites to respond to local impacts of COVID-19. All sites are
well positioned to respond at a local level, with plans in place
to support and manage the impacts of COVID-19.
Overview of operating results
The table below provides a summary of the profit before tax from St Barbara Group operations.
$’000
Revenue
Simberi
Atlantic
Continuing
operations
Leonora (discontinued
operations)
2023
2022
2023
2022
2023
2022
2023
2022
205,569
59,367
118,283
141,905
323,852
201,272
373,570
479,073
Mine operating costs
(171,871)
(87,573)
(93,590)
(84,618)
(265,461)
(172,191)
(269,886)
(242,368)
Gross profit
Royalties
EBITDA
33,698
(28,206)
24,693
57,287
58,391
29,081
103,684
236,705
(5,047)
(1,632)
(2,363)
(2,834)
(7,410)
(4,466)
(13,566)
(21,023)
28,651
(29,838)
22,330
54,453
50,981
24,615
90,118
215,682
Depreciation and amortisation
(13,519)
(13,068)
(32,653)
(68,717)
(46,172)
(81,785)
(58,942)
(73,547)
Profit from operations(1)
(10,323)
(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.
(57,170)
(14,264)
(42,906)
31,176
15,132
4,809
142,135
The table below provides a summary of the cash contribution from St Barbara Group cash generating units.
Simberi
Atlantic
Continuing
operations
Leonora (discontinued
operations)
$’000
2023
2022
2023
2022
2023
2022
2023
2022
Operating cash contribution
23,971
(70,532)
37,485
48,534
61,456
(21,998)
101,083
228,663
Capital - sustaining
Cash Contribution (1)
Growth capital (2)
(5,156)
(10,810)
(6,475)
(8,142)
(11,631)
(18,952)
(50,351)
(49,588)
18,815
(81,342)
31,010
40,392
49,825
(40,950)
50,732
179,075
(2,187)
(43,732)
(10,845)
(10,316)
(13,032)
(54,048)
(12,088)
(6,897)
Cash contribution after growth
capital
20,165
(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 Simberi represents expenditure associated with the sulphides project. At Atlantic growth capital represents expenditure associated with capitalised exploration, permitting costs
and near mine studies projects in the Moose River Corridor. Growth capital at Gwalia represents mainly projects with the Leonora province Plan and Bardoc.
36,793
16,628
38,644
(125,074)
(94,998)
172,178
30,076
Operating profit before tax
Profit from operations (including discontinued operations) of
$35,985,000 (2022: $84,965,000) was impacted by a lower
contribution from Leonora and Atlantic, partially offset by a
higher contribution from Simberi and the average gold price.
Total production for the Group in the 2023 financial year was
260,368 ounces of gold (2022: 280,746 ounces), and gold
sales amounted to 259,416 ounces (2022: 276,412 ounces) at
an average gold price of $2,683 per ounce (2022: $2,457 per
ounce). The lower production compared to the prior period was
attributable to lower production at Leonora and Atlantic partially
offset by Simberi.
In the comparative period, Simberi was not producing while the
DSTP pipeline was being re-established impacting production,
costs and capital expenditure required.
Consolidated All-In Sustaining Cost (AISC) for the Group was
$2,443 per ounce in 2023 (2022: $1,848 per ounce), reflecting
the impact of lower Group production, rising input costs, and
the high fixed cost profile of expenditure at the operations.
4 | St Barbara Annual Report 2023
The decrease in the depreciation and amortisation for the
Group is due to lower production at Leonora and Atlantic.
Operating cash contribution
Total net cash contribution from the operations (including
discontinued operations) after growth capital of $75,437,000
(2022: $77,180,000).
The lower cash contribution from the operations was due to
reduced production and higher costs, offset by the higher
average gold price realised and
lower Simberi capital
expenditure. Capital expenditure at Simberi in the period was
lower than the comparative period due to the construction and
commissioning of the DSTP pipeline, waste movement, and
mining fleet improvements which occurred in the prior
corresponding period.
St Barbara Directors and Financial Report / 30 June 2023
Analysis of Leonora Operations (discontinued
operations)
The following figure shows total tonnes moved, including ore,
mineralised development, waste over the past five years.
from
revenue
Total sales
the Leonora Operations of
$373,570,000 (2022: $479,073,000) was generated from sales
of 137,736 ounces (2022: 192,471 ounces) in the year at an
average achieved gold price of $2,708 per ounce (2022: $2,486
per ounce).
During the year 18,000 ounces were delivered to gold forward
contracts, with revenue realised at the forward strike price of
A$2,863 per ounce.
A summary of production performance for the year ended
30 June 2023 is provided in the table below.
Details of 2023 production performance
Underground ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost (1) (A$/oz.)
All-In Sustaining Cost (AISC)
(2) (A$/oz.)
Leonora Operations
2023
2022
722
5.19
975
4.59
96
138,050
137,736
1,933
2,521
727
7.30
1,027
6.0
97
191,459
192,471
1,206
1,717
(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 138,050 ounces of gold in 2023 (2022:
191,459 ounces), including 15,252 ounces recovered from ore
purchased
lower gold
from Linden Gold Alliance. The
production in the year was attributable to lower grade and
mined tonnes sent to the mill.
Underground ore mined in the period was lower at 722,000
tonnes (2022: 727,000 tonnes) due to ineffective stope blasts,
lower mobile equipment availability as a result of maintenance
staff shortages, and COVID-19 absenteeism. The decrease in
tonnes mined was exacerbated by lower grade material mined.
Leonora total material moved (kt)
1,137
379
1,040
389
978
331
1,142
283
1,106
296
651
758
647
859
810
FY19
FY20
FY21
FY22
FY23
Ore mined
Waste
Ore mined grade was lower at 5.19 grams per tonne (2022: 7.3
grams per tonne). The Leonora mill continued to perform
consistently, with the average recovery at 96% (2022: 97%).
The lower processed grade of 4.59 grams per tonne (2022: 6.0
grams per tonne) was due to lower mined grade and
processing lower grade purchased ore.
Leonora gold production
(koz)
220
171
153
191
138
2019
2020
2021
2022
2023
Leonora unit cash cost (1) for the year was $1,933 per ounce
(2022: $1,206 per ounce). The higher unit operating cost in the
2022 financial year was due to the proportionally high fixed cost
profile, higher input costs including processing consumables,
reagent, diesel and gas costs and lower production driven by
lower mining tonnes and grade. Similarly, All-In Sustaining
Cost (AISC)(2) for Leonora was higher at $2,521 per ounce in
2023 (2022: $1,717 per ounce), with the sustaining capital
expenditure stable year on year. Total cash operating costs at
Gwalia were $266,851,000 (2022: $230,900,000).
Leonora generated net cash flows in 2023 of $38,644,000
(2022: $172,178,000), after sustaining and growth capital. The
lower cash contribution from Leonora was due to lower
production and higher operating costs. Sustaining capital in
2023 was stable at $50,351,000 (2022: $49,588,000),
consisting primarily of capital mine development of
$45,361,000 (2022: $42,909,000) and mine infrastructure of
$3,146,000 (2022: $2,298,000). Capital development costs
were higher despite development meters being lower at 4,107
(2022: 4,630) due to higher input costs.
Growth capital in 2023 was a total of $12,088,000 (2022:
$6,897,000), consisting mainly of capital projects within the
underground mine and the project feasibility work associated
with the Leonora Province Plan and Bardoc.
St Barbara Annual Report 2023 | 5
St Barbara Directors and Financial Report / 30 June 2023
Analysis of Simberi Operations
Total sales revenue from Simberi in 2023 was $205,569,000
(2022: $59,367,000), generated from gold sales of 75,183
ounces (2022: 22,762 ounces) at an average achieved gold
price of A$2,724 per ounce (2022: A$2,591 per ounce).
Gold production in 2023 of 78,320 ounces (2022: 28,136
ounces) was significantly higher compared with the prior period
due to the temporary break in operations in FY2022 while the
DSTP pipeline was re-established. Mined grade in 2023 of
1.07g/t was lower than prior period as a result of the mine plan
moving into lower grade areas.
A summary of production performance at Simberi for the year
ended 30 June 2023 is provided in the table below.
Details of 2023 production performance
Ore mined in 2023 totalled 2,607,000 tonnes (2022: 1,471,000
tonnes). Waste material moved in 2023 was 7,372,000 tonnes
(2022: 5,322,000 tonnes). In the comparative period Simberi
did not produce gold in the first half of the year as a result of
the mill shut down while the DSTP pipeline was being replaced.
Simberi annual total material mined
(kt)
12,345
11,601
8,800
6,793
9,979
Simberi Operations
2019
2020
2021
2022
2023
Open pit ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost(1) (A$/oz.)
All-In Sustaining Cost (AISC)(2) (A$/oz.)
2023
2,607
1.07
2,422
1.23
81
78,320
75,183
2,213
2,419
2022
1,471
1.14
1,205
1.07
70
28,136
22,762
2,841
3,017
(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 milled during the year totalled 2,422,000 tonnes (2022:
1,205,000 tonnes). The recovery performance of the Simberi
mill for the year was an average of 81% (2022: 70%), with the
increase attributable to the increased availability of clean oxide
ore and due to sulphide ore treated in the first quarter of
FY2022.
Simberi Operations gold production
(koz)
142
104
74
2019
2020
2021
78
2023
28
2022
Simberi unit cash operating cost for the year was $2,213 per
ounce (2022: $2,841 per ounce). The unit All-In Sustaining
Cost (AISC) for Simberi for the year was $2,419 per ounce
(2022: $3,017 per ounce), which reflected the impact of higher
production partially offset by higher consumable and reagent
costs. Total cash operating costs at Simberi during 2023 were
higher than the prior year at $173,322,000 (2022: $79,934,000)
due to the impact of higher mining activity and mill throughput.
In 2023 Simberi generated net cash flows of $16,628,000
(2022: outflows $125,074,000), after sustaining and growth
capital expenditure. Sustaining capital expenditure of
$5,156,000 (2022: $10,810,000) included plant structural
replacement, new compressors and carbon safety screens,
while the prior year included capitalisation of mining and
processing costs whilst the DSTP pipeline repairs were
underway. Growth capital of $2,187,000 (2022: $43,732,000)
was substantially lower with the prior period expenditure
relating to re-establishing the DSTP pipeline and the feasibility
studies for the sulphides project.
6 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Analysis of Atlantic Operations
Total sales revenue from Atlantic Operations in 2023 was
$118,283,000 (2022: $141,905,000), generated from gold
sales of 46,497 ounces (2022: 61,179 ounces) at an average
achieved gold price of A$2,542 per ounce (2022: A$2,318 per
ounce). During the year 25,010 ounces of gold sales were
delivered to gold call options, with revenue realised at the call
option strike price of C$2,050 per ounce.
Total ore and waste material moved in the year was 2,847,000
tonnes (2022: 6,220,000 tonnes), which included total ore
mined of 960,000 tonnes (2022: 2,217,000 tonnes) at an
average grade of 0.54 grams per tonne (2022: 0.66 grams per
tonne). Additionally, in-pit rehandling totalled 2,628,000 tonnes
in the year (2022: 3,456,000 tonnes).
Atlantic Operatons
quarterly total material moved (kt)
A summary of production performance at Atlantic Operations
for the year ended 30 June 2023 is provided in the table below.
2,802
Details of 2023 production performance
Open pit ore mined (kt)
Grade (g/t)
Ore milled (kt)
Grade (g/t)
Recovery (%)
Gold production (oz.)
Gold sales (oz.)
Cash cost(1) (A$/oz.)
Atlantic Operations
2023
960
0.54
2,746
0.55
90
2022
2,217
0.66
2,755
0.75
92
43,998
61,151
46,497
61,179
1,917
1,476
All-In Sustaining Cost (AISC)(2) (A$/oz.)
1,720
(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).
2,244
(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).
Atlantic operations production for the year was 43,998 ounces
(2022: 61,151 ounces). In-pit mining ceased in February, at
which time the operation commenced processing historic
stockpiles. Additionally, production was impacted by lower
processed grade from the material available in the stockpiles.
1,928
1,617
892
1,038
FY22
Q4 Jun
FY23
Q1 Sep
FY23
Q2 Dec
FY23
Q3 Mar
FY23
Q4 Jun
Ore milled was 2,746,000 tonnes in the year (2022: 2,755,000
tonnes) at a grade of 0.55 grams per tonne (2022: 0.75 grams
per tonne) and recovery of 90% (2022: 92%). Grade and
recoveries were impacted by the completion of in-pit mining
and the planned processing of lower grade historic stockpile
material.
Atlantic Operations quarterly
production
(koz)
18
11
10
11
11
FY22
Q4 Jun
FY23
Q1 Sep
FY23
Q2 Dec
FY23
Q3 Mar
FY23
Q4 Jun
Atlantic operations unit cash operating cost for the year was
$1,917 per ounce (2022: $1,476 per ounce), with the increase
due to lower production and higher input costs. The unit AISC
was $2,244 per ounce for the year (2022: $1,720 per ounce),
which reflected the cash operating cost partially offset by lower
sustaining capital. Total cash operating costs for the year were
$84,344,000 (2022: $90,259,000).
In the year, Atlantic operations generated net cash flows of
$20,165,000 (2022: $30,076,000), after sustaining capital of
$6,475,000 (2022: $8,142,000) and growth capital expenditure
of $10,845,000 (2022: $10,316,000). Sustaining capital was
mainly related to work on the Tailings Management Facility.
Growth capital was related to studies associated with the
development projects at Beaver Dam, Fifteen Mile Stream and
Cochrane Hill.
The Touquoy operation will go into care and maintenance in
the first half of FY2024 due to the inability to obtain permits for
in-pit tailings deposition within a reasonable time.
St Barbara Annual Report 2023 | 7
St Barbara Directors and Financial Report / 30 June 2023
Discussion and analysis of the consolidated
comprehensive income statement
Revenue
Total revenue (excluding discontinued operations) increased
from $201,272,000 in 2022 to $323,852,000 in 2023 due to
higher production and gold sales at Simberi, which was
operational for the full year, and higher average realised gold
price of A$2,683 per ounce (2022: A$2,462 per ounce) across
the Group. This was partially offset by lower production and
gold sales at Atlantic.
Mine operating costs
Mine operating costs in relation to continuing operations in
2023 were $265,461,000 compared with $172,191,000 in the
prior year. The higher operating costs were mainly attributable
to Simberi being operational for the full year compared with
being non-operational for the first half of 2022 while the DSTP
pipeline was being re-established. Additionally, higher diesel
and reagent costs impacted the cost base across the Group.
Other revenue and income
Interest revenue was $2,590,000 in 2023 (2022: $1,619,000),
earned on the Linden Gold loan and cash held during the year.
The higher interest revenue compared to 2022 was due to
higher interest rates.
Other income was $4,107,000 for the year (2022: $587,000)
included insurance claims on the DSTP pipeline failure and
recovery at Simberi.
Exploration and evaluation
the year amounted
Total exploration and evaluation expenditure (excluding
to
discontinued operations) during
$20,632,000
(2022: $42,605,000), with an amount of
$11,764,000 (2022: $28,965,000) capitalised. Capitalised
exploration related to project evaluation in the Moose River
Corridor at Atlantic and the Sulphide project at Simberi.
Exploration expenditure expensed in the income statement in
the year was $8,868,000 (2022: $13,640,000).
Corporate costs
for
the year of $26,506,000
Corporate costs
(2022:
$31,686,000) comprised mainly expenses relating to the
corporate office and compliance costs. Expenditure in 2023
was lower than prior year as a result of a cost reduction
program and restructuring. Corporate redundancy costs of
$2,649,000 were incurred as a result of the rationalisation of
the Group office footprint and the reduction in required services
arising from the sale of Leonora.
Royalties
Royalty expenses for continuing operations were $7,410,000
(2022: $4,466,000). 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. Royalties are calculated on gold sales at the relevant
spot gold prices. The higher royalty expense in the year was
due to higher gold revenue in Simberi.
8 | St Barbara Annual Report 2023
Depreciation and amortisation
(excluding discontinued
Depreciation and amortisation
operations) of fixed assets, capitalised mine development and
mineral rights amounted to $47,917,000 (2022: $86,252,000)
for the year. Depreciation and amortisation attributable to
Simberi was $13,519,000 (2022: $13,068,000), including
$515,000 relating to ‘right-of-use’ assets (2022: $478,000).
Atlantic expensed an amount of $32,653,000
(2022:
$68,717,000), including $273,000 relating to ‘right-of-use’
assets (2022: $239,000). Atlantic amortisation was lower due
to lower production and the impact of the impairments recorded
at 30 June 2022 and 31 December 2022.
Share based payments
Share based payments of $2,170,000 (2022: $1,123,000)
relate to the amortisation of employee benefits under the
performance rights plan (refer to Note 19).
Other expenses
(2022: $3,641,000)
Other expenditure of $1,790,000
comprised the disposal and write off of physical and capitalised
assets. Prior year expenditure included the cost of the Building
Brilliance program.
Impairment of assets
Impairment in relation to the Simberi and Atlantic cash-
generating units (CGU) were recognised as at 30 June 2023
(including $494,202,000 recognised at 31 December 2022)
amounting to a pre-tax charge of $588,534,000 (2022:
$223,542,000 impairment of Atlantic). The total impairment
value comprised $74,174,000 in relation to Simberi, and
$514,360,000 in relation to Atlantic. The non-cash impairment
charge was taken as the carrying value of the CGUs exceeded
their recoverable amount. Refer to Note 8 of the financial
statements for further information.
Finance costs
in
the year were $13,534,000
Finance costs
(2022:
$6,019,000) and comprised interest paid of $9,854,000 (2022:
$3,265,000) and undrawn facility fees of $1,367,000 (2022:
$1,742,000) on the syndicated facility. The increase in interest
was a result of an additional draw down on the Australian
tranche of the syndicated facility during the year of $20,000,000
as well as higher interest rates. Finance costs also included
interest paid on finance leases of $841,000 (2022: $706,000)
including
liabilities expense.
Borrowing costs relating to banking facilities and guarantee
fees were $407,000 (2022: $306,000). An expense of
$1,065,000 (2022: nil) was recognised in relation to the
unwinding of the discount applied to the rehabilitation provision
for 2023.
‘right-of-use’ assets
lease
Net foreign exchange gain
A net foreign exchange gain of $4,484,000 was recognised for
the year (2022: net gain of $1,829,000). 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 $8,039,000 (2022: gain of $6,371,000) as the call
options, which were associated with the Atlantic operations,
fully matured during the year.
St Barbara Directors and Financial Report / 30 June 2023
Income tax
An income tax credit for continuing operations of $138,730,000
was recognised for the year (2022: tax credit of $76,085,000),
which comprised an income tax expense of $9,331,000 for the
Papua New Guinea (PNG) operations (2021: $5,922,000 tax
credit) and an income tax credit of $142,484,000 (2022:
$70,094,000 tax credit) for the Canadian operations and an
income tax benefit of $5,577,000 in relation to Australia
(excluding discontinued operations) (2022: $14,274,000 tax
credit).
The income tax credit for the Canadian operations relates to
the tax effect of the impairment write off in the income
statement. A deferred tax asset of $5,479,000 in PNG was not
recognised on the basis of the sulphides project was deferred
following the strategic review of the operation.
Discontinued operations
Total revenue at Leonora decreased from $479,073,000 in
2022 to $373,570,000 in 2023 due to lower production and gold
sales partially offset by higher average realised gold prices.
Higher mine operating costs of $269,886,000
(2022:
$242,368,000) were attributable to higher tonnes mined and
ore processed as well as higher input costs, namely diesel and
processing reagents.
Exploration expenditure expensed in the year was $7,265,000
(2022: $7,879,000).
Royalty expense at Leonora for the year was $13,566,000
(2022: $21,023,000). Royalties paid in Western Australia are
2.5% of gold revenues, plus a corporate royalty of 1.5% of gold
revenues. The decrease was attributable to lower gold revenue
in the year.
was higher than the prior period due to the draw down of
$20,000,000 of the Australian tranche of the syndicated facility
during the year, as well as interest rate increases. The
syndicated debt facility comprising AUD and CAD tranches was
repaid in full utilising proceeds of the Leonora asset sale.
tax
totalled
payments
Income
(2022:
$26,514,000). The decrease in tax payments reflects the
decrease in operational contributions. A stamp duty payment
of $7,067,000 was also paid in the year in relation to the
acquisition of Bardoc Gold Limited in April 2022.
$10,229,000
Investing activities
Net cash flows used in investing activities was an inflow of
$285,891,000 (2022: $170,011,000 outflow) for the year.
Investing activities in the year included cash received on the
sale of Leonora assets for $371,596,000, mine development
expenditure of $52,371,000 (2022: $46,140,000) and property,
plant and equipment of $21,570,000 (2022: $63,694,000). In
the prior year, investing activities also included the investments
in Kin Mining ($25,401,000) and acquisition costs for NS Gold
Corporation
($8,912,000) and Bardoc Gold Limited
($3,865,000) offset by the cash acquired ($2,966,000), and the
divestment of Duketon Mining shares ($4,000,000).
Investing capital expenditure was in the following major areas:
Purchase of property, plant and equipment at Leonora of
$4,990,000 (2022: $3,348,000), Simberi of $4,881,000
(2022: $49,231,000 made up of the Deep Sea Tailings
Placement pipeline replacement), Atlantic of $6,349,000
(2022: $8,142,000) and $4,917,000 (2022: $nil) related to
development work at the Zoroastrian mine (one of the Bardoc
deposits sold to Genesis Minerals as part of the Leonora
sale).
Depreciation and amortisation of fixed assets and capitalised
mine development amounted
(2022:
$73,547,000) and included $1,301,000 relating to right of use
assets (2022: $1,301,000).
to $58,942,000
Mine development of $52,371,000 (2022: $46,140,000)
which
infrastructure at Gwalia:
$45,200,000 (2022: $42,472,000) and $7,171,000 (2022:
$3,571,000) growth mine development for Gwalia deeps.
includes underground
Discussion and analysis of the consolidated
cash flow statement
Operating activities
Cash flows from operating activities for the year were
$51,900,000 (2022: $87,656,000), reflecting the impact of
lower production at Atlantic and Leonora and higher operating
costs across all operations partly offset by higher average
realised gold prices and higher production at Simberi due to
being operational for the full year.
Receipts from customers in the year were $701,448,000 (2022:
$687,645,000), reflecting the impact of higher gold sales from
Simberi and the higher average realised gold price despite
lower production from Atlantic and Leonora.
Payments to suppliers and employees were $607,706,000
(2022: $545,301,000), driven higher by Simberi being
operational for the full year as well as increased consumable,
reagents and labour costs across all operations.
Payments for exploration expensed in the year amounted to
$16,133,000 (2022: $21,519,000), which related to exploration
activities in the Leonora province and near mine activities in
Simberi and Nova Scotia.
Interest received was $1,112,000 (2022: $251,000). Interest
paid in the year totalled $9,118,000 (2022: $5,713,000), which
Exploration of $11,764,000 (2022: $28,965,000) consisting of
$1,355,000 (2022: $16,686,000) expenditure associated with
the Simberi sulphide project and $10,409,000 (2022:
$10,316,000) studies and permitting activities for Beaver
Dam and Fifteen Mile Stream at Atlantic.
Financing activities
Net cash flows related to financing activities was a net outflow
of $197,945,000 (2022: net inflow of $38,428,000). Financing
activities in 2023 included inflow of $20,000,000 under the
Australian tranche offset by the repayment $159,196,000 for
the Australian and Canadian tranches of the syndicated facility
(2022: draw down of $50,000,000). There were also finance
(2022: $8,560,000),
lease
including the repayment of the Australian finance lease of
$4,495,000 for the equipment at Leonora prior to the sale of
Leonora assets to Genesis Minerals on 30 June 2023.
repayments of $11,842,000
Discussion and analysis of the consolidated
balance sheet
Net assets and total equity
St Barbara’s net assets decreased during the year by
$715,213,000 to $393,452,000 mainly due to the post-tax
impairment of $450,489,000 and
to
shareholders for $267,525,000 of Genesis Minerals shares
received as consideration for the sale of the Leonora assets.
the capital return
St Barbara Annual Report 2023 | 9
St Barbara Directors and Financial Report / 30 June 2023
to
assets
increased
$682,909,000
Current
(2022:
$255,475,000). The available cash balance at 30 June 2023
was $247,037,000 (2022: $98,512,000), with an additional
$46,907,000 held as restricted cash for the security of the
Touquoy reclamation bond (and reported within trade and other
receivables).
The Genesis Mineral shares held for capital return of
$267,525,000 are offset against the capital return payable of
$267,525,000 recorded as a current liability. The capital return
was completed during July 2023, at which time these two
balances will net off against each other.
the year by
Non-current assets decreased during
$1,107,862,000
to $235,001,000 (2022: $1,342,863,000)
mainly due to the impairment recognised for the Atlantic and
Simberi cash generating units and the disposal of assets
related to the sale of Leonora. The impairment of Atlantic
Operations resulted in a decrease in mineral rights in the year
of $293,135,000, while the sale of Leonora assets reduced
non-current assets by $560,460,000.
Current trade and other payables decreased to $66,177,000
(2022: $78,593,000). Current interest-bearing liabilities of
$4,296,000 (2022: $15,197,000) includes finance leases of
$1,908,000, right of use lease liabilities of $948,000 and
insurance premium funding of $1,497,000. Repayment of the
Australian finance lease accounted for the reduction in current
interest bearing liabilities.
Non-current liabilities decreased to $145,394,000 (2022:
$372,768,000) due to the repayment of the syndicated debt
facility partly offset by the increase in the rehabilitation
provision. The non-current rehabilitation provision increased to
$124,189,000 (2022: $74,753,000) due to revised reclamation
costs at Atlantic from $28,004,000 to $82,514,00, and Simberi
from $25,539,000 to $45,446,000, partly offset by the removal
of the Leonora provision of $28,838,000 as part of the asset
sale. Increases to closure cost provisions are largely related to
cost inflation and to the updated Atlantic closure plan.
The deferred tax balance was a net liability of $11,619,000
(2022: net liability of $133,509,000).
There were no derivative financial liabilities at 30 June 2023
(2022: $8,154,000) as a result of the remaining call option
contracts maturing during the year.
Debt management and liquidity
The available cash balance at 30 June 2023 was $247,037,000
(2022: $98,512,000), with an additional $46,907,000 held as
restricted cash and reported within trade and other receivables.
Total interest-bearing liabilities were $12,875,000 at 30 June
2023 (2022: $171,638,000), comprising $3,938,000 (2022:
$$8,537,000) of ‘right-of-use asset’ lease liabilities; finance
leases of $7,497,000 (2022: $18,627,000); and $1,497,000
(2022: $3,754,000) relating to the insurance premium funding.
The AUD/USD exchange rate as at 30 June 2023 was 0.6668
(30 June 2022: 0.6904). The AUD/CAD exchange rate as at
30 June 2022 was 0.8826 (30 June 2022: 0.8887).
10 | St Barbara Annual Report 2023
Business strategy and future prospects
St Barbara’s strategic focus is to deliver the long term value of
its Simberi and Atlantic operations. This new focus follows the
sale of the Leonora assets at the end of FY23 to eliminate all
debt and to re-capitalise St Barbara with a strong cash position.
The Company retains 5.9Moz in Mineral Resources and
3.5Moz
in Ore Reserves across Simberi and Atlantic
operations.
The strategy focus areas for Atlantic comprise:
Prioritising development of Fifteen Mile Stream and target
development in FY26
Investigate the repurposing of the Touquoy processing
plant for use at Fifteen Mile Stream
Complete processing of stockpiles at Touquoy
Pause permitting process for Beaver Dam to allow further
stakeholder engagement
Continue exploration at Cochrane Hill, Mooseland,
South-West and Goldboro East.
The strategy focus areas for Simberi comprise:
Extend oxide production through FY25 and into FY26
Extension drilling of the Sulphides Mineral Resource and
Ore Reserve
Revisiting Sulphides Expansion development plan by FY26
Prepare for investment decision with Mining Lease renewal
by FY28
Additional strategy focus areas at the corporate level comprise:
Establishing a refreshed corporate culture and identity
focused on value
Actively manage the investment portfolio
Exploration of the Back Creek project in NSW
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.
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
results and
performance by the Group include:
financial
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.
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
St Barbara Directors and Financial Report / 30 June 2023
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 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).
Hedging risk: When the Group has hedging agreements in
place for the forward sale of fixed quantities of gold
production from 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.
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 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.
(similarly with Canadian dollar
dollar expenditure
denominated revenues and expenses). The Group
is
foreign currency
fluctuations
therefore exposed
exchange rates. The Group monitors foreign exchange
exposure and risk on a monthly basis through the centralised
treasury
function and a Management Treasury Risk
Committee.
to
in
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,
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, regulations or permitting
requirements may result in enforcement actions against the
Group, including orders issued by regulatory or judicial
authorities causing operations to cease or be curtailed, and
may
requiring capital
expenditures, installation of additional equipment, or remedial
actions.
include corrective measures
in
leakage,
risks normally encountered
Operating risks and hazards: The Group’s mining operations,
consisting of open pit mines, generally involve a high degree
of risk. The Group’s operations are subject to all the hazards
and
the exploration,
development and production of gold. Processing operations
are subject to hazards such as equipment failure, toxic
fast-moving heavy
loss of power,
chemical
equipment, failure of deep sea tailings placement 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.
Reliance on transportation facilities and infrastructure: The
Group depends on the availability and affordability of reliable
transportation facilities and infrastructure (e.g. roads, 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, pandemic, community or government
interference) could adversely affect St Barbara's operations,
financial condition and results of operations. The Group’s
operating procedures include business continuity plans which
can be enacted in the event any particular infrastructure is
temporarily unavailable.
Supply chain interruption: The Group relies on supply chain
networks across the globe for its supply of consumables,
equipment and other project materials. Disruptions to this
supply chain network may result in interruption to business
continuity and increases to input prices. This risk is managed
by ensuring critical spares and consumable items remain on
hand, forecasting and monitoring supply chain congestion.
Permitting delays: The group relies on government and
government agencies to issue and renew permits that allow
the development of mines to commence, or operations to
continue. If permits are not issued, renewed, or there is a
delay in a permit being issued, this may result in an
interruption to business continuity, a mine development to not
occur, or increased cost. The business develops plans and
specialised capability to address and comply with permitting
criteria.
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.
Production, cost and capital estimates: The Group prepares
estimates of future production, operating costs and capital
St Barbara Annual Report 2023 | 11
St Barbara Directors and Financial Report / 30 June 2023
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
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 factors outside the Group's
control. 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.
Labour costs are impacted by the overall supply of skilled
labour to the mining industry, where a lack of labour will
increase competition and therefore cost. A lack of skilled
labour may also impact the Group’s ability to effectively and
efficiently execute operational plans.
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:
negotiation and renewal of agreements with contractors on
acceptable terms;
failure of contractors to perform under their agreements,
including failure to comply with safety systems and
standards, contractor insolvency and failure to maintain
appropriate insurance;
failure of contractors to comply with applicable legal and
regulatory requirements; and
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
12 | St Barbara Annual Report 2023
planning, to establish appropriate sourcing strategies for
spend categories.
The Group manages risks associated with contractors
through a contractor management system.
third- party arrangements
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 exploration for mineral deposits and the possibility
of
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.
including
toll
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.
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 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
St Barbara Directors and Financial Report / 30 June 2023
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 if 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.
to political, economic and other
Political, social and security risks: St Barbara has production
and exploration operations in a developing country that is
subject
risks and
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
to assist 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.
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.
There are a dedicated community relations teams at Atlantic
and Simberi to work closely with the local communities and
government.
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.
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.
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.
Other natural disasters: Seismic activity is of particular
concern to mining operations. The Simberi mine in PNG 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. Atlantic operation is in an area that can be subject
to bush fire and hurricanes.
realised
through profitable production
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
a significant portion of the value ascribed to its carrying value
is in mineral rights, exploration and evaluation. These values
the
are
development of projects at Beaver Dam, Fifteen Mile Stream
and Cochrane Hill and an increase to ore reserves through
exploration. Any
the permitting and
development of the Atlantic projects or changes to the
expected performance of the future 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 process.
further delay
from
in
COVID-19: While St Barbara has implemented extensive
procedures to manage the risk of COVID-19 spreading
that community
there
through an operation,
transmission of COVID-19 may
impact operations.
Governments globally have implemented “COVID-19 normal”
processes to manage and mitigate the risk that the local
government
federal) may place
restrictions.
(state, provincial or
risk
is
Risk management
risks
through an established enterprise-wide
The Group manages the risks listed above, and other day-to-
risk
day
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.
St Barbara Annual Report 2023 | 13
St Barbara Directors and Financial Report / 30 June 2023
Regulatory environment
St Barbara is subject to the legal jurisdictions of the countries
in which we operate. The Australian Commonwealth, Western
Australian, New South Wales, Canadian Federal, Nova Scotian
and Papua New Guinea legislation permits and that governs St
Barbara’s exploration, mining and processing operations. St
Barbara is not aware of any material breach of legislation and
regulations applicable to its operations during 2023. The Group
remains committed to compliance with its obligations through
training, reporting, audits and process improvements.
14 | St Barbara Annual Report 2023
Daniel Lougher
BSc Hons (Mining Geology)
Managing Director and Chief Executive Officer
Appointed as Managing Director and CEO 28 November 2022
Retired as Managing Director and CEO 30 June 2023
Special responsibilities:
Nil (attends Board Committee Meetings by invitation)
Mr Lougher is a highly experienced career mining executive
who was most recently with successful Australian nickel miner
Western Areas Limited, joining the company in 2006 as
General Manager Operations and Projects, before moving to
the roles of Executive Director – Operations and then
Managing Director and Chief Executive Officer.
Mr Lougher was appointed as the Managing Director and CEO
of St Barbara on 28 November 2022. Mr Lougher also holds
Non-Executive Director roles with Perseus Mining Limited,
Blackstone Minerals Limited and American West Minerals
Limited.
Mr Lougher has established industry leading credentials for the
development and operation of large-scale mining assets in the
base and precious metals sector in both Africa and Australia.
Mr Lougher is a Fellow of the Australasian Institute of Mining
and Metallurgy and holds a Bachelor of Science (Honours)
Mining Geology, a Graduate Diploma in Engineering (Mining)
and a Master of Science in Engineering.
Other current listed public company directorships:
Non-Executive Director of Perseus Mining Limited
Non-Executive Director Blackstone Minerals Limited
Non-Executive Director American West Metals Limited
Former listed company directorships in last three years:
Managing Director and CEO of Western Areas Limited (now
part of IGO Limited)
St Barbara Directors and Financial Report / 30 June 2023
Information on Directors
Kerry J Gleeson
LLB (Hons), FAICD
Independent Non-Executive Chair
Appointed as a Director 18 May 2015
Appointed as Chair 28 April 2023
Special responsibilities:
Member of Remuneration and Nomination Committee1
Member of Audit and Risk Committee
Member of Safety and Sustainability Committee2
Ms Gleeson is an experienced Chair and Non-executive
Director in the mining industry following a 25 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.
the Group’s Australian and
In her executive career, 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
oversight over
international
operations in mining, explosives, chemicals, transport and
logistics. Ms Gleeson led 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.
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:
Chrysos Corporation Ltd (ASX: C79)
o Non-Executive Director
o Lead Independent Director
o Member of
Committee
the Remuneration and Nomination
o Member of the Audit, Risk and Finance Committee
Australian Strategic Materials Limited (ASX: ASM)
o Non-Executive Director
o Chair of the Risk Committee
o Chair of the Nomination Committee
o Member of the Audit Committee
o Member of Remuneration Committee
Former listed company directorships in last three years:
Non-Executive Chair of New Century Resources Limited
(ASX: NCZ)
Other current relevant experience:
Chair of Trinity College, University of Melbourne
Other previous relevant experience:
Member of the Directory Advisory Panel of the Australian
Securities and Investments Commission
1 Ms Gleeson was Chair of the Remuneration and Nomination Committee up to
2 The Safety and Sustainability Committee was formally dissolved on 30 June
28 April 2023.
2023.
St Barbara Annual Report 2023 | 15
St Barbara Directors and Financial Report / 30 June 2023
Andrew Strelein
B.Com
Stefanie (Stef) E Loader
BSc Hons (Geology), GAICD, MAIG
Managing Director and Chief Executive Officer
Appointed as Managing Director and Chief Executive Officer 1
July 2023
Independent Non-Executive Director
Appointed as a Director 1 November 2018
Special responsibilities:
Mr Strelein is a highly experienced mining executive with
extensive global experience in leadership roles across a
number of mining jurisdictions including Australia, Indonesia,
Africa and North America. Mr Strelein joined St Barbara as
Chief Development Officer
in August 2021 and was
instrumental in the acquisition of Bardoc Gold and the sale of
the Leonora assets to Genesis Minerals.
Prior to joining St Barbara, Mr Strelein was Chief Executive
Officer of the entity progressing development planning and
permitting of the Nimba Iron Ore Project in West Africa. Before
that Mr Strelein worked at Newmont as Group Executive
Corporate Development and in a Group Executive role for the
Asia Pacific region. Earlier in his career with Newmont and
Normandy, Mr Strelein was accountable for joint venture
interests
in Boddington, KCGM, Goldfields Power and
reclamation works at Kaltails. With a Bachelor of Commerce,
Mr Strelein is also a member of the AICD and ASCPA.
Chair of Safety and Sustainability Committee
Chair of Remuneration and Nomination Committee1
Member of Audit and Risk 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 was recognised as one of the Australian Financial
Review 100 Women of Influence in 2013.
Other current listed company directorships:
Sunrise Energy Metals Ltd (ASX:SRL)
o Non-Executive Director
o Lead
Independent Director, Chair of People
Governance and Sustainability Committee, Member
Audit, Finance and Risk Committee
Former listed company directorships in last three years:
Non-Executive director of Clean TeQ Water Ltd (ASX:
CNQ)
Other current relevant experience:
Chair of Port Waratah Coal Services Ltd
Chair of Forestry Corporation of NSW (from 1 July 2022)
Other previous relevant experience:
Chair of the NSW Minerals Council from 2015 to 2017
1 Ms Loader was appointed Chair of the Remuneration and Nomination
Committee on 28 April 2023
16 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
David E J Moroney
BCom, FCA, FCPA, GAICD
Independent Non-Executive Director
Appointed as a Director 16 March 2015
Special responsibilities:
Chair of Audit and Risk Committee
Member of Safety and Sustainability Committee
Member of Remuneration and Nomination Committee
Mr Moroney is an experienced finance executive and non-
executive director with more than 30 years’ experience in
senior corporate finance roles, including over 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:
Independent Non-Executive Chair
Juno Minerals Limited
o
o Member of the Audit Committee
o Member of
Committee
the Remuneration and Nomination
Former listed company directorships in last three years: Nil
Other current relevant experience: Nil
Other previous relevant experience:
Non-Executive
(previously Western Australia’s
superannuation fund)
Independent Director, WA Super
largest public offer
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 rock lobster in the
southern hemisphere)
National Councillor, Group of 100 Inc.
Non-Executive Director, CPA Australia Ltd
St Barbara Annual Report 2023 | 17
Andrew Strelein
B.Com
Chief Development Officer (up to 30 June 2023)
Appointed as Managing Director and Chief Executive Officer 1
July 2023
Mr Strelein is a highly experienced mining executive with
extensive global experience in leadership roles across a
number of mining jurisdictions including Australia, Indonesia,
Africa and North America. Mr Strelein joined St Barbara as
in August 2021 and was
Chief Development Officer
instrumental in the acquisition of Bardoc Gold and the sale of
the Leonora assets to Genesis Minerals.
Prior to joining St Barbara, Mr Strelein was Chief Executive
Officer of the entity progressing development planning and
permitting of the Nimba Iron Ore Project in West Africa. Before
that Mr Strelein worked at Newmont as Group Executive
Corporate Development and in a Group Executive role for the
Asia Pacific region. Earlier in his career with Newmont and
Normandy, Mr Strelein was accountable for joint venture
interests
in Boddington, KCGM, Goldfields Power and
reclamation works at Kaltails. With a Bachelor of Commerce,
Mr Strelein is also a member of the AICD and ASCPA.
Sarah Standish
BA, LLB, GAICD
General Counsel and Company Secretary
listed mining
legal, governance,
Ms Standish has over 18 years’ experience in Australia and
internationally in both private practice and in-house roles
spanning
risk and compliance. Ms
Standish’s most recent experience, prior to joining St Barbara,
includes leading the legal, risk and compliance functions at an
ASX
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, corporate
restructuring, strategy development and execution, project
management and delivery and intellectual property and
technology.
St Barbara Directors and Financial Report / 30 June 2023
Information on Executives
Daniel Lougher
BSc Hons (Mining Geology)
Managing Director and Chief Executive Officer
Retired 30 June 2023
Mr Lougher is a highly experienced career mining executive
who was most recently with successful Australian nickel miner
Western Areas, joining the company in 2006 as General
Manager Operations and Projects, before moving to the roles
of Executive Director – Operations and then Managing Director
and Chief Executive Officer. Mr Lougher has established
industry leading credentials for the development and operation
of large-scale mining assets in the base and precious metals
sector in both Africa and Australia. Mr Lougher is a Fellow of
the Australasian Institute of Mining and Metallurgy and holds a
Bachelor of Science (Honours) Mining Geology, a Graduate
Diploma in Engineering (Mining) and a Master of Science in
Engineering.
Lucas Welsh
B.Com, CA, MBA, DipInvRel
Chief Financial Officer
Mr Welsh is a Chartered Accountant with over 20 years’
experience. Mr Welsh joined St Barbara in 2007 as General
Manager Finance and Procurement. In 2020, Mr Welsh joined
our Building Brilliance
team as General Manager
Transformation (Commercial) before leading the team in 2021
as Chief Transformation Officer.
Mr Welsh is responsible for the Group’s Finance function,
covering financial reporting and accounting, treasury, taxation,
internal audit, capital management, Group procurement and
information technology. Prior to joining the Group, Mr Welsh
worked at PwC in their Transaction Services department,
before developing a Sarbanes-Oxley
risk management
compliance framework and toolset at WMC Resources
18 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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 meetings
Board Committee meetings
Directors’
Meetings
Supplementary
Audit & Risk
Committee
Remuneration &
Nomination
Committee -
Scheduled
Safety &
Sustainability
Committee1
K Gleeson
S Loader
D Moroney
D Lougher
Former Directors
T Netscher2
C Jetson3
A
7
7
7
5
6
3
Table 1: Meetings of Directors
H
7
7
7
5
6
3
A
23
22
22
21
20
3
H
24
24
24
21
20
3
A
4
4
4
2
3
2
H
4
4
4
2
3
2
A
4
4
4
2
3
1
H
4
4
4
2
3
2
A
4
4
4
2
4
2
H
4
4
4
2
4
2
A = Indicates the number of meetings attended whilst a Director/Committee member.
H = Indicates the number of meetings held whilst a Director/Committee member.
Details of the functions and memberships of the Committees of the Board are presented in St Barbara’s Corporate Governance Statement and on
St Barbara’s website.
Directors’ interests
Whilst the Company does not have a formal minimum shareholdings policy, 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 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 Nature of interest
Rights over
ordinary shares
Nature of interest
34,361
Direct and Indirect
49,001
Direct and Indirect
105,438
Direct and Indirect
800,000
Direct
107,616
Direct and Indirect
-
-
-
-
-
-
-
-
-
200,000
Direct
661,824
Direct
K Gleeson
S Loader
D Moroney
D Lougher4,5
Former Directors
T Netscher6
C Jetson7
Table 2: Directors’ Interests
No Directors have an interest in options over shares issued by companies within the Group.
1 The Safety and Sustainability Committee was dissolved effective 30 June 2023.
2 Mr Netscher retired effective 28 April 2023.
3 Mr Jetson resigned effective 28 November 2022.
4 Number as at his cessation date 1 July 2023.
5 Mr Lougher retired as Managing Director and CEO effective 1 July 2023.
6 Number as at his cessation date 28 April 2023.
7 Number as at his cessation date 28 November 2022.
St Barbara Annual Report 2023 | 19
St Barbara Directors and Financial Report / 30 June 2023
Remuneration Report
Letter from the Chair of the Remuneration and Nomination Committee
Dear Shareholder,
On behalf of the Board I am pleased to present St Barbara’s remuneration report for FY23.
The past financial year was one of transformation at St Barbara, culminating in the sale of the Leonora Operations and the commitment
to a significant capital return to St Barbara shareholders. Despite the strong finish to FY22 and rapid process on development of the
newly acquired Zoroastrian deposit, the Company faced operational challenges at Gwalia underground which impacted performance
and altered the outlook for the full financial year. Performance stabilised in the second half of FY23 and the Company achieved
production at the top end of revised guidance at 260,368 ounces and our All-in Sustaining Cost below the bottom end of revised
guidance at $2,443 per ounce.
With this transformation came a number of Board and management changes. The Company moved quickly to appoint Mr Dan Lougher
as Managing Director and Chief Executive Officer (MD & CEO) after the resignation of Mr Craig Jetson in November 2022.
Stabilisation of performance from Gwalia underground was the key focus for the Company, following the announcement to the
Australian Securities Exchange (ASX) of a downgrade in production guidance on 18 October 2022 and the ongoing efforts to
consolidate mining operations across the Leonora region.
Mr Lougher is an experienced mining executive with extensive experience with deep underground mining and mining contractor
management and, at the time of his appointment, had only recently commenced a career as a non- executive director.
With the new strategic focus of the Company turning to its overseas development projects in Papua New Guinea and Canada, Mr
Lougher retired as MD & CEO on 30 June 2023 and pleasingly Mr Andrew Strelein, brought in as Chief Development Officer in 2021,
agreed to the appointment as MD & CEO with effect from 1 July 2023.
Remuneration in FY23
In the context of how the year progressed and the challenges faced by the Company, and in light of the competitive talent market,
the Board revised its approach to our remuneration framework to ensure the Company could attract, reward and retain high calibre
and high performing individuals capable of delivering the Group strategy. In particular, with the appointment of Mr Lougher and Mr
Strelein, the Board moved towards remuneration packages comprising an increasing proportion of at risk remuneration with lower
total fixed remuneration (TFR).
Mr Lougher’s remuneration package, as announced to the ASX on 17 November 2022, provided a TFR of $750,000, 25% lower than
his predecessor, and a grant of 500,000 shares on commencement of his employment. A further 300,000 shares were deferred until
the end of the financial year, subject to service and performance conditions given that Mr Lougher was not eligible to participate in
the Company’s FY23 LTI plan. Given the lower TFR, and given he was not eligible to participate in the FY23 LTI Plan, and had a pro-
rated opportunity for the FY23 STI, the on-boarding shares were considered appropriate to set the overall package at a level
necessary to attract a highly experienced MD & CEO in a competitive market and establish the appropriate level of reward for FY23.
Remuneration outcomes in FY23
Following continued strong support of the Remuneration Report by Shareholders at the 2022 Annual General Meeting, remuneration
arrangements for Key Management Personnel (KMP) remained largely unchanged during FY23 with the exception of the MD & CEO
remuneration which was restructured to have a lower TFR component.
Executive Total Fixed Remuneration
Executive KMP TFR unchanged: other than reduction in MD & CEO TFR noted above, there were no increases to TFR for
Executive KMP in FY23.
Refer to Section 8 Statutory Remuneration for further detail.
Executive short term incentives (STI)
FY 23 STI Outcomes: Based on the Group and individual performance outcomes, over 80% of the total incentive opportunity was
forfeited by the Executive KMP with Mr Lougher receiving a pro-rated STI of 15% of the total STI opportunity and other Executive
KMP receiving 20% of the total STI opportunity.
Refer to Section 6 for detail on STI outcomes.
Executive long term incentives (LTI)
FY21 LTI Outcomes: The Board approved 0% vesting for the FY21 grants (3 year performance period from 1 July 2020 to 30
June 2023) as performance hurdles were not met.
Refer to Section 6 for detail on LTI vesting outcomes.
20 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Non-Executive Director fees
No increase: There were no increases to Non-Executive Director Fees in FY23 with the last increase being in FY19 and total
fees paid amounted to 59% of the approved fee pool amount.
Refer to Section 7 for information relating to Non-Executive Directors.
MD & CEO changes in FY23
Upon cessation of employment, Mr Jetson received his entitlements pursuant to his Executive employment contract announced to
the ASX on 6 December 2019, further details of which are set out in Section 4.4 and included a payment in lieu of notice and annual
leave. While his STI and LTI were forfeited, at 30 June 2023, and in recognition of his ongoing support in respect of the Company’s
operations through transition to the newly appointed MD & CEO following his resignation, the Board approved a payment of $200,000.
Upon retirement, Mr Lougher received his entitlements pursuant to his Executive employment contract announced to the ASX on 17
November 2022, further details of which are set out in Section 4.4 and included a payment for the balance of his 6 month notice
period not worked and annual leave. As referred to above, he forfeited 85% of the FY23 STI opportunity and was not a participant in
the FY23 LTI. The onboarding shares were retained and are held in escrow for 12 months from each date of grant.
Refer to section 8 Statutory Remuneration for further detail.
FY24 remuneration
Following the transformation of the Company into a predominantly overseas project developer by the end of FY23, the Company
revised its KMP and broader employee remuneration framework to align with its revised strategic imperatives, market practice and
shareholder interests. Changes for KMP remuneration include lower TFR for all senior management roles and greater emphasis on
at risk remuneration. The at risk remuneration comprises STI, LTI and new one-off Project Incentive Performance Rights tied to
delivery of final investment decisions on expansion of Simberi Operations in Papua New Guinea and development of Fifteen Mile
Stream in Canada. Given the significance of these projects to the Company’s success and the creation of value for shareholders, the
Board considered it was appropriate to establish these Project Incentive Performance Rights to align the Executive’s focus and thus
reward with that of our shareholders.
Mr Strelein was appointed MD & CEO on 1 July 2023 on a remuneration package with a significantly reduced TFR in favour of greater
weighting towards at risk remuneration of up to 250% of TFR in the form of STI and LTI opportunities. Mr Strelein was granted, subject
to shareholder approval, Project Incentive Performance Rights noted above. In addition, given Mr Strelein was not a participant in the
FY21 LTI and thus would not be eligible for any LTI vesting opportunity in FY24, the Board granted a one-off grant of fully paid ordinary
shares subject to an escrow period of 12 months.
Mr Strelein is uniquely familiar with the opportunity to develop Fifteen Mile Stream and to expand operations at Simberi as well as the
management of the reclamation obligations at both projects and brings experience with international permitting and development
planning as well as significant experience in the corporate development sphere.
Non-Executive Director fees have been reduced from 1 July 2023 (by 39% in aggregate) as follows:
Chair fee: $180,000 (FY23: $263,340)
NED base fee: $90,000 (FY23: $106,260)
Committee Chair $15,000 (FY23 $25,000)
Committee member fee $10,000 (FY23 $15,000)
Refer to Section 9 for more detail relating to FY24 remuneration changes.
In overseeing its remuneration practices in FY23 and in revising its approaches for FY24, the Board remains committed to ensuring
alignment between executive pay and shareholder value. We continue to actively engage with our shareholders and proxy advisors
to maintain a deep understanding of shareholder views and priorities. We are committed to remuneration arrangements that take into
account the expectations of our stakeholders and align with leading practices in Australia.
On behalf of the Board, I invite you to review our Remuneration report in full. We look forward to your ongoing feedback and continuing
discussions with our shareholders and their proxy advisers on our remuneration strategies and practices.
Yours sincerely
Stef Loader
Committee Chair
St Barbara Annual Report 2023 | 21
St Barbara Directors and Financial Report / 30 June 2023
Contents
1.
Introduction and Key Management Personnel
2. Remuneration Governance
3. Executive Remuneration Framework
4. Components of Executive remuneration
5. Relationship between Group performance and remuneration - past five years
6. FY23 Executive remuneration outcomes and disclosures
7. Non-Executive Director remuneration
8. Additional statutory information
9. Looking ahead to FY24
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, 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 KMP named in this report are those with the authority and responsibility for planning, directing and controlling the
activities of the Company. KMP for the financial year (FY) ended 30 June 2023 are outlined below and each was a KMP for the entire
period unless otherwise stated.
1.1 Key Management Personnel during FY23
Non-Executive Directors
Kerry Gleeson
Independent Non-Executive Chair (appointed 28 April 2023)
Tim Netscher
Independent Non-Executive Chair (retired 28 April 2023)
David Moroney
Independent Non-Executive Director
Stef Loader
Executives
Dan Lougher1
Independent Non-Executive Director
Managing Director and CEO (appointed 28 November 2022 and retired on 1 July 2023)
Lucas Welsh
Chief Financial Officer
Andrew Strelein2
Chief Development Officer
Former Executives
Craig Jetson
Managing Director and CEO (ceased 28 November 2022)
Table 1: FY23 Key Management Personnel
1 Mr Lougher retired as Managing Director and CEO effective 1 July 2023.
2 Mr Strelein was appointed Managing Director and CEO on 1 July 2023.
22 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
2 Remuneration governance
The Remuneration and Nomination Committee (Committee) operates under a Board approved Charter and is comprised entirely of
independent Non-Executive Directors (NEDs) – Stef Loader (Chair, from 28 April 2023), Kerry Gleeson (Member, from 2 April 2023
and former Chair until 28 April 2023), Tim Netscher (Member, retired 28 April 2023) and David Moroney (Member).
The roles and responsibilities of the Board, Committee, Management, and external remuneration consultants in relation to the
governance of remuneration for KMP and employees at St Barbara are outlined below.
Approves the remuneration of the NEDs, the Managing Director and CEO, Executive KMP and specific senior
executives.
Board
Ensures the remuneration framework is market competitive and aligned with shareholder interests, the
Company’s values, purpose, strategic objectives and risk appetite.
Advises the Board on:
Remuneration strategies, policies and practices.
Remuneration &
Nomination
Committee
Management
Remuneration of the Managing Director and CEO, Executive KMP, NEDs and specific senior executives.
Composition, structure, succession planning and performance of the Board.
Diversity and inclusion, organisation capability and effectiveness, skills, training and development and
succession planning for key roles.
Implementation and continuous improvement of remuneration policies and practices.
Provides the Committee with information and insights to assist the Committee in discharging its duties.
May be engaged directly by the Board or the Committee to provide information or advice relating to KMP
remuneration, that is free of influence from management.
External
Remuneration
Consultants
In FY23, there were no engagements with remuneration specialists on advice relating to KMP and therefore
no fees were paid to remuneration consultants during the period.
Additional information regarding the Committee's roles and responsibilities can be found in the Committee Charter at https://stbarbara.com.au/our-company/governance/
3 Executive remuneration framework
The Company’s Executive remuneration strategy is designed to attract, reward and retain high calibre, high performing, and team
orientated individuals capable of delivering the business strategy. The guiding principles that underpin the Executive remuneration
strategy are outlined below:
Strategy and
Vision
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.
Culture and
Values
In setting the remuneration strategy, the Board is cognisant of the link between remuneration outcomes and
maintaining a positive company culture. The clawback of Executive incentives for poor Executive conduct 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.
Shareholders
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 Company performance and sustainable
shareholder returns.
Performance
Appropriate levels of remuneration ‘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.
St Barbara Annual Report 2023 | 23
St Barbara Directors and Financial Report / 30 June 2023
Market
The Company’s remuneration strategy and practices are informed 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.
4 Components of Executive remuneration for FY23
4.1 Remuneration components and links to strategy
Executive remuneration comprises of both fixed and ‘at risk’ components to ensure an appropriate amount of remuneration is linked
to the performance and success of the Company 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
ensure a significant portion of Executive remuneration is ‘at risk’ based on challenging performance measures.
Each of these components is outlined in more detail below:
FIXED COMPONENT – Total Fixed Remuneration (TFR)
Purpose
Attract and retain talented Executives to lead the Company.
Links to Strategy
Reviewed annually based on individual performance and role responsibilities, the
knowledge, skills and experience required for the position, and the Group’s need to attract
and retain the right person for the role.
Vehicle
Base salary, superannuation and other benefits.
Approach in FY23
In setting remuneration for Executives, the Remuneration and Nomination Committee
considers relevant industry trend, market salary surveys and benchmarking outcomes.
24 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
‘AT RISK’ COMPONENT - SHORT TERM INCENTIVE (STI)
Purpose
Links to
Strategy
Reward business and individual performance in the financial year.
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 their own individual
performance targets and behaviours. In the event of a fatality, the Safety component of the STI Company
measures will be assessed as zero.
Vehicle
Cash with Board discretion to pay some or all of the STI award in equity.
Quantum (percentage of Total Fixed Remuneration):
CEO
Other Executives
Target = 50% of Max.
Maximum Target
100%
90%
50%
45%
Measures:
1) Company measures (80%): reflect measures in relation to safety, production and cost management.
Group
AISC
30%
Safet
y
30%
Gold
Production
40%
Individual measures (20%): reflect a balance of financial and non-financial measures specific to the
Figure 1: Group STI measures
2)
Executive role and aligned with the Company’s strategic objectives.
STI Assessment and Calculation Methodology
Approach in
FY23
Each of the above KPIs is defined ‘threshold’, ‘target’ and ‘stretch’ measures which are capable of
objective assessment:
Threshold
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 AISC (as proxies for
profitability and cash generation), as well as the achievement of near-term goals linked to
the annual strategy.
Target
Target performance represents challenging but achievable levels of performance beyond
achievement of budget measures.
Stretch (or
maximum)
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 Company.
The proportion of the STI earned is calculated by adding the weighted result of the Company measures
with the individual’s performance outcome. Company 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 Company 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)]
STI Governance: The Board has discretion on whether any STI 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 in relation to fraud, defalcation or gross
misconduct, or a material misstatement in the Group’s financial statements.
St Barbara Annual Report 2023 | 25
St Barbara Directors and Financial Report / 30 June 2023
‘AT RISK’ COMPONENT – LONG TERM INCENTIVE
Purpose
Reward long-term performance of the Company and the creation of shareholder value.
Links to Strategy
Delivered in equity and based on measures that are aligned with shareholder returns and
capital management (TSR, ROCE and Reserves Replenishment). Refer to Rationale for
LTI measures below for further detail.
Vehicle
Performance rights (Rights)
Maximum quantum (percentage of TFR):
CEO
Other Executives
Maximum Target
75%
60%
37.5%
30%
Target = the mid-point 50% of Maximum (100%) LTI available
Measures: (assessed at the conclusion of the three-year performance period to 30 June 2025.
1) TSR (50%) Vesting relative to a peer group of companies* (RTSR):
< Median
= Median
= or >P75
> Median and < P75
Nil
50%
100%
Pro-rata
Approach in FY23
*FY23 TSR Peer Group: Alamos Gold Inc, Bellevue Gold Limited, Capricorn Metals Limited, Coeur Mining Inc., Gold
Road Resources Limited, OceanaGold Corporation, Perseus Mining Limited, Ramelius Resources Limited, Regis
Resources Limited, Resolute Mining Limited, Silver Lake Resources Limited, SSR Mining Inc, West African
Resources Limited, Westgold Resources Limited.
2) ROCE (30%) Vesting:
<= WACC
WACC + 3%
WACC +7%
> +3% and < +7%
Nil
50%1
100%
Pro-rata
3) Reserves Replenishment (20%) Vesting:
No growth / depletion replaced
Depletion replaced plus 10% growth 50%
Depletion replaced plus 20% growth 100%
Nil
Rationale for LTI measures: RTSR - Includes being subject to a positive TSR Gateway ensuring alignment of remuneration
outcomes for Executives with the shareholder experience over a three-year period. With the availability of numerous similar mining
and primarily gold sector companies of similar market capitalisations, the primary LTI performance measure of RTSR was a suitable
performance measure for the company. ROCE - measures the Company’s profitability and capital management efficiency.
Reserves replenishment - Critical driver of long-term sustainability and ensures long-term resource quantity and value, no reduction
in life of mine and quality of tenements.
LTI Governance: The Board has discretion on whether any LTI should be awarded, and on the amount awarded, in any given
year. The Board also has absolute discretion to reduce, withhold or cancel any unpaid LTI in relation to fraud, defalcation or gross
misconduct, or a material misstatement in the Group’s financial statements.
Cessation of employment: If an executive resigns or is terminated for cause, any unvested Rights are forfeited, unless otherwise
determined by the Board. If an executive ceases employment during the performance period by reason of redundancy, retirement
or other circumstances approved by the Board, the executive may be entitled to a pro-rata number of unvested Rights based on
achievement of the performance measures as assessed at the date of ceasing employment (subject to Board discretion). The
treatment of vested and unexercised Rights will be determined by the Board with reference to the circumstances of cessation.
1 If threshold is not achieved (WACC + 3%) the outcome would be Nil with no provision for pro-rata).
26 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
4.2
Remuneration mix
The remuneration mix is considered by the Board to provide appropriate alignment with short term business priorities, long
term share price performance and retention of Executives. The following charts demonstrates the mix of fixed and at-risk
remuneration for Executives for FY23 at target and maximum (max) level.
CEO - at target
53%
27%
20%
CEO - at max
36%
36%
27%
FR STI
LTI
Executive KMPs - at target
57%
26%
17%
Executive KMPs - at max
40%
36%
24%
Figure 2: Composition of Executive remuneration
FR STI
LTI
(1) STI as a % of TFR 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 TFR at ‘maximum’. 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 6.2 and 6.3 for STI outcome in FY23.
4.3
Executive remuneration profile
The timing of payments of Executive remuneration for 2023 is as follows (illustrated using Managing Director and CEO at target)1:
LTI (at-risk)
STI (at-risk)
Fixed
remuneration (FR)
20%
27%
FY23 LTI measurement period - 3 yrs from 1 Jul 2022 to 30 Jul 2025
20%
FY23 STI
measurement
period
27%
53%
53%
53%
53%
FY23 Target
FY23
(FY23 TFR paid)1
FY24
(FY23 STI paid)2
0%
FY25
FY26
(FY23 LTI vested)3
Figure 3: Payment profile of Executive remuneration
(1) TFR was paid during 2023.
(2) STI performance is assessed as part of this report after the end of the FY23 and is paid in the FY24 (provided an STI is awarded).
(3) LTI performance is assessed after the end of the three-year performance period (1 July 2022 to 30 June 2025) and, if determined to have vested,
the corresponding Performance rights vest in the FY26.
1 Note that for FY23 Mr Lougher and Mr Jetson were not participants in the LTI plan
St Barbara Annual Report 2023 | 27
St Barbara Directors and Financial Report / 30 June 2023
4.4
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.
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:
Executive 1
D Lougher – Managing Director and CEO 4
Commenced 28 November 2022
L Welsh – Chief Financial Officer
Commenced 27 August 2021
A Strelein – Chief Development Officer
Commenced 26 July 2021
TFR 2
Notice period
By Executive
By the Company
Termination payment
3
$750,000
6 months
6 months
n/a
$475,000
6 months
6 months
6 months
$520,000
6 months
6 months
6 months
(1) Executive KMP are eligible for participating in the FY23 STI and LTI plans except D Lougher.
(2) Inclusive of superannuation and salary sacrifice benefits.
(3) Other than for gross misconduct or for poor performance as judged by the Company in its absolute discretion
(4) Mr Lougher’s overall remuneration package was determined at the time of his appointment having regard to his extensive experience and the
competitive market and included TFR (25% lower than predecessor), a pro-rated STI opportunity from the date of his commencement, no
participation in the FY23 LTI and in lieu of that, and in consideration of the lower TFR included one-off on-boarding shares (in two tranches, the
second tranche subject to service and performance conditions).
5 Relationship between Group performance and remuneration - past five years
The Board has regard to the overall performance of the Company over a number of years in assessing and ensuring proper alignment
of the performance linked ‘at risk’ remuneration framework to deliver fair and proper outcomes consistent with the Company’s
performance.
Full details of the Company’s operational and financial performance are set out in the Directors’ Report immediately preceding the
Remuneration Report, and in the Financial Report, immediately following the Remuneration Report. For convenience, a summary of
key operating and financial measures is reproduced in the Remuneration Report.
In assessing the Group’s performance and shareholder return, consideration is given to the following measures in respect of the
current financial year and the previous four financial years.
Earnings
Sales revenue
EBITDA
2023
697,422
2022
680,345
2021
740,247
(416,933)
(32,427)
(63,001)
Statutory net profit/(loss) after tax
(429,199)
(160,821)
(176,596)
2020
827,726
338,762
128,230
2019
650,321
274,810
144,163
Underlying net profit/(loss) after tax1
Table 2: Five-year financial performance ($’000)
(12,752)
24,098
80,628
108,472
141,728
1
Underlying net profit/(loss) after tax is calculated as statutory net profit/(loss) after tax before significant items as disclosed within Note 3 of the Financial Report.
28 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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
Period end share price
Closing price on last trading day
10-day VWAP used for Relative Total
Shareholder Return (RTSR) and Rights pricing
Dividends paid and declared for financial year4
Average share price for the year
Market capitalisation
Table 3: Five-year share price history ($/share)
2023
0.481
0.24682
0.00
0.71
2022
0.75
0.94
0.00
1.44
2021
1.71
1.77
0.06
2.56
2020
3.15
3.153
0.08
2.83
2019
2.94
2.91
0.08
4.01
$0.39 B
$0.61 B
$1.21 B
$2.20 B
$2.05 B
During the 2023 financial year, the Company’s daily closing share price ranged between $1.24 to $0.46 per share (2022 financial
year: $0.75 to $1.98 per share).
Five-year operation performance
2023
2022
2021
2020
2019
Gold production
All-in Sustaining Cost (AISC)
Total Recordable Injury Frequency Rate
Table 4: Five-year key performance measures
260,368
280,746
327,662
381,887
454,985
2,443
4.6
1,848
3.2
1,616
3.9
1,369
3.0
1,080
5.0
6 FY23 Executive remuneration outcomes and disclosures
6.1
FY23 STI Company measure outcomes
The Company STI Measures (weighted 80%) were assessed for the financial year ended 30 June 2023 with outcomes as shown
below. In light of performance hurdles not having been met this 80% weighting of the KMP STI award was forfeited.
STI Measure
Target
Weighting
Result
% of max achieved
a) Group Safety – Recordable
Injuries
Performance Gateway of no fatalities
11 Recordable Injuries5
30%
19 Recordable Injuries recorded
b) Group Gold production
279koz
40%
260koz
c) Group AISC
A$2,232/oz
30%
A$2,443/oz
Table 5: 2023 Group STI performance
0%
0%
0%
6.2
Individual Performance outcomes
For 2023, the Board assessed the performance against the individual KPIs (weighted 20%) which related to maximisation of value to
shareholders through: (a) the stabilisation of performance of the Leonora Assets; and (b) achievement of a suitable corporate
combination that delivered separate appropriately capitalised businesses for the Leonora Operations and for the overseas
development assets whilst also realising proceeds to retire the Company’s debt facility that was at risk of breach.
The Board considers individual Executive KMP contribution to the above achievements and approved the following outcome:
Executive
Title
Weighting
% of max achieved
D Lougher
L Welsh
A Strelein
Managing Director and CEO
Chief Financial Officer
Chief Development Officer
20%
20%
20%
75%
100%
100%
1
2
3
4
5
The ASX have made an adjustment to the historical St Barbara share price to reflect the value of the Genesis share distribution to St Barbara shareholders
The volume weighted average price (VWAP) of St Barbara shares in the five business days ending Friday, 9 June 2023 ($0.5626) minus 0.3158 cents per share (reflecting the full planned return of capital following the completion of
the sale of the Leonora assets to Genesis Minerals Limited and based on the volume weighted average share price of Genesis shares in the five business days ending Friday, 9 June 2023).
10-day VWAP coincidentally equalled close price on 30 June 2020. 10 day close price ranged between $2.99 and $3.31.
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.
Recordable Injury (RI) includes fatalities, lost time injuries, medical treatment injuries. It does not include first aid injury.
St Barbara Annual Report 2023 | 29
St Barbara Directors and Financial Report / 30 June 2023
6.3
STI outcomes for FY23
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 FY23, based on achievement of the specified performance criteria. No additional amounts vest
in future years in respect of the STI plan for the 2023 financial year.
Mr Lougher’s STI (i.e. $66,086) was awarded on a pro-rata basis from commencement of employment pursuant to his contract of
employment.
Pro-
rata
Type
Maximum potential STI
Actual STI
Awarded
Group
STI awarded
(80% of total
STI)
Individual
STI
awarded
(20% of
total STI)
% of Max Group and
Individual STI
Executive
months
C Jetson
D Lougher
L Welsh
A Strelein
4
7
12
12
Target
$
Maximum1
$
Standard
500,000
1,000,000
$
nil
Standard
375,000
750,000
$66,086
Standard
213,750
427,500
$85,500
Standard
234,000
468,000
$93,600
%
nil%
nil%
nil%
nil%
%
nil%
75%
100%
100%
Earned
Forfeited
nil%
15%
20%
20%
nil%
85%
80%
80%
Table 6: FY23 STI Outcomes
6.4
FY21 LTI vesting outcomes
The FY21 Rights were issued in November 2020 at a 10-day VWAP price calculated under the Rights Plan Rules and Notice of 2020
Annual General Meeting of $3.15 each.
The FY21 LTI relates to the former MD & CEO Mr Jetson. Mr Welsh was a participant in the FY21 LTI in his former role as General
Manager Finance. Mr Lougher and Mr Strelein were not participants in the FY21 LTI.
Of the FY21 Rights, 67% lapsed due to not meeting the positive TSR gateway over the three-year performance period. Using the
same methodology as in previous years, ROCE for the Group over the three-year period was assessed to have not met threshold.
Accordingly, this portion of the FY21 LTI (33%) also lapsed.
No Performance rights have been deferred for retesting in a subsequent financial year.
Nil
(0%)
Proportion of Rights to vest
Min
(50%)
Max
(100%)
The FY21 Performance rights were assessed as follows:
(a)
(b)
Weighting:
Actual score:
Calculation:
Weighting:
Actual ROCE:
Calculation:
RTSR
67%
TSR of (-84.07%) 21st percentile of
comparator group (details below)
0% (failed to meet positive TSR gateway)
ROCE
33%
0.4% (details below)
0% (for achieving between lower and
upper threshold of WACC)
(c)
Combined score:
(0% x 67%)
+ (0% x 33%)
= 0%
Table 7: FY21 Performance Rights Assessment
1
Inclusive of STI ‘Target’.
30 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
6.5
RTSR calculation for FY21 Performance Rights
The result of the RTSR component of the FY21 Performance rights for the period 1 July 2020 to 30 June 2023 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 (-84.07%) for the period and
ranked at the 21st 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.
ROCE over LTI vesting period
14%
12%
16%
14%
12%
10%
8%
6%
4%
2%
0%
8%
10%
13%
4%
2021
2022
2023
ROCE (3 yr)
100% threshold
Figure 4: Chart of TSR results for comparator companies
Figure 5: Chart of ROCE (calculated on the next page)
The comparator group of companies for FY21 Performance rights comprised:
Alacer Gold Corp. (ASX: AQG)1
Newcrest Mining Limited (ASX: NCM)
Resolute Mining Limited (ASX: RSG)
Alkane Resources Ltd (ASX:ALK)
Northern Star Resources Ltd (ASX: NST)
Saracen Mineral Holdings Limited (ASX: SAR)2
AngloGold Ashanti Limited (ASX: AGG)
OceanaGold Corporation (ASX: OGC)
Silver Lake Resources Limited (ASX: SLR)
Bellevue Gold Limited (ASX: BGL)
Perseus Mining Limited (ASX: PRU)
Tribune Resources Limited (ASX: TBR)
De Gray Mining Ltd
Ramelius Resources Limited (ASX: RMS)
West African Resources Ltd (ASX: WAF)
Evolution Mining Limited (ASX: EVN)
Red 5 Ltd (ASX:RED)
Westgold Resources Limited (ASX: WGX)
Gold Road Resources Limited (ASX: GOR)
6.6
ROCE calculation for FY21 Performance Rights
The result of the ROCE component over the three-year vesting period commencing 1 July 2020 and ending on 30 June 2023 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 2020
0%
WACC (calculated as):
+ 3%
50%3
+ between 3% and 7%
Pro-rata from 50% to 100%
+ 7%
100%
Table 8: ROCE vesting
St Barbara achieved a ROCE for the period of 0.4% (see
calculation below), which is below the lower threshold of WACC
for the period of 6.1% +3.0% = 9.1%
ROCE for the Group over the three-year period was assessed
to have not met the lower threshold, therefore all Performance
rights related to this measure lapsed.
1
2
3
Alacer Gold Corp. (AQG) has been replaced with SSR Mining (SSR) as Alacer Gold Corp. was merged with SSR Mining.
Saracen Mineral Holdings Limited (SAR) was delisted after merging with Northern Star (NST).
If threshold is not achieved (WACC + 3%) the outcome would be Nil with no provision for pro-rata.
St Barbara Annual Report 2023 | 31
St Barbara Directors and Financial Report / 30 June 2023
ROCE is calculated as EBIT before significant items expressed as a percentage of average total capital employed (net debt and
total equity)1.
Measure
EBIT (excluding significant items, including discontinued operations)
2022
37,445
2023
6,920
2021
111,849
Capital employed – opening balance
Total equity2
Net debt3
Capital employed – opening balance
Capital employed– closing balance
Total equity (excluding significant items, including discontinued operations)
Net debt
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 9: ROCE calculation
1,524,604
73,126
1,597,730
1,493,363
-
1,493,363
1,545,547
0.4%
4.0%
6.1%
1,370,891
-
1,370,891
1,534,604
73,126
1,597,730
1,484,311
2.5%
8.3%
3.0%
1,348,977
-
1,348,977
1,370,891
-
1,370,891
1,359,934
9.1%
14.4%
4.7%
WACC is calculated using the widely available formula of (relative weight of equity x required rate of return) + (relative weight of debt
x cost of debt)4. In this instance, WACC is calculated on a pre-tax basis to match the pre-tax nature of EBIT. The full calculation of
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;
Government 10-year bond rate as proxy for risk free premium; and
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 2020 and ending on 30 June 2023 is 6.1%
(2022 financial year: 3.0%).
6.7
Allocation of sign-on awards for the Managing Director and CEO
To attract a highly experienced executive in a competitive market with considerable local and international mining experience and
establish the appropriate level of reward for FY23, as disclosed to the Australian Securities Exchange (ASX) and as mentioned in
Section 4.4, Mr Lougher received a one-off on-boarding payment of two tranches totalling 800,000 shares in the Company.
The first tranche of that award (500,000 shares) was allocated in November 2022 (see ASX announcement dated 30
November 2022) and subject to a 12 month escrow period; and
The remaining tranche (300,000 shares) was allocated on 30 June 2023 (refer to ASX announcement dated 30 June
2023) and also subject to a 12 month escrow.
The one-off on-boarding payment was considered appropriate in light of Mr Lougher’s ineligibility to participate in the FY23 LTI
Plan, the reduced TFR for the role (compared to that in place at the commencement of FY23 for the previous MD & CEO) and the
pro-rated opportunity for the FY23 STI.
7 Non-Executive Director Remuneration
7.1
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 their 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.
1
2
3
ROCE is not an IFRS measure and is calculated in the table above.
The opening equity balance has been adjusted to exclude impairments posted in prior periods
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).
4 WACC is not an IFRS measure. The above parameters can be used to calculate WACC using commonly available formula.
32 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
7.2
Policy 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.
Non-Executive Director Fees have not increased since 2019 and will reduce in 2024 (see Section 10 for further details). For FY23,
the aggregate of Non-Executive Director fees was $710,115 (representing 59% of the aggregate pool).
The table below summarises the Non-Executive Director fee policy for FY23. All fees are inclusive of superannuation.
Director Fees
Board Chair
Non-Executive Directors
Committee Fees
Committee Chair
Committee Member
Table 10: Board and Committee Fees
$263,340
$106,260
$25,000
$15,000
7.3
FY23 Non-Executive Director statutory remuneration
Name
T C Netscher2
K J Gleeson3
S E Loader
D E J Moroney
S G Dean4
Totals
Year
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
Table 11: Non-Executive Director Remuneration
Cash
salary & fees1
$
198,437
239,400
Non
monetary
benefits
$
-
-
Superannuation
$
21,013
23,940
161,846
146,600
136,258
146,600
145,937
146,600
-
138,337
642,478
817,537
-
-
-
-
-
-
-
-
-
-
16,994
14,660
14,307
14,660
15,323
14,660
-
-
67,637
67,920
Total
$
219,450
263,340
178,840
161,260
150,565
161,260
161,260
161,260
-
138,337
710,115
885,457
1 Inclusive of any participation in the Non-Executive Director Equity Plan.
2 Mr Netscher retired as Non-Executive Director and Chair on 28 April 2023.
3 Ms Gleeson was appointed as Non-Executive Chair on 28 April 2023.
4 Mr Dean resigned as Non-Executive Director from 9 June 2022.
St Barbara Annual Report 2023 | 33
%
-
%
7
%
8
2
%
2
3
%
5
2
%
0
2
%
0
1
%
8
2
%
0
0
1
%
2
1
%
0
0
1
%
7
1
%
7
1
%
3
2
l
a
t
o
t
f
o
n
o
i
t
r
o
p
o
r
P
5
d
e
t
a
l
e
r
e
c
n
a
m
r
o
f
r
e
p
$
l
a
t
o
T
6
0
7
,
6
0
0
,
1
-
1
7
0
,
6
2
7
9
1
2
,
0
5
6
6
7
3
,
6
5
7
9
2
4
,
8
6
6
4
2
6
,
3
3
5
,
1
0
6
1
,
0
2
6
,
1
5
5
8
,
1
3
2
8
2
,
6
9
3
6
7
1
,
6
6
6
2
0
,
6
1
0
,
1
8
0
8
,
0
2
1
,
4
6
1
1
,
1
5
3
,
4
-
-
-
-
-
-
$
0
1
3
6
7
,
3
1
9
-
-
-
3
1
5
7
3
,
4
4
5
1
4
6
9
,
4
2
7
3
6
7
,
3
1
9
9
3
3
,
9
6
7
-
-
$
0
1
5
,
6
1
1
4
9
1
,
5
3
1
2
0
2
,
3
9
3
1
2
,
6
4
6
7
0
,
8
5
1
4
9
0
,
7
9
2
5
5
8
,
1
3
5
8
5
,
7
4
6
7
1
,
6
6
8
3
1
,
3
7
1
9
1
8
,
5
6
4
4
2
2
,
9
9
6
s
t
n
e
m
y
a
p
n
o
i
t
a
n
m
r
e
T
i
4
s
t
n
e
m
y
a
p
d
e
s
a
b
-
e
r
a
h
S
s
t
i
f
e
n
e
b
m
r
e
t
g
n
o
L
$
3
e
v
a
e
L
9
0
5
,
3
4
-
5
3
8
,
5
4
3
0
7
,
8
3
4
7
5
,
9
4
6
9
9
,
6
4
-
5
7
3
,
9
9
-
-
-
-
8
1
9
,
8
3
1
4
7
0
,
5
8
1
s
t
i
f
e
n
e
b
t
n
e
m
y
o
p
m
e
l
t
s
o
P
r
e
p
u
S
n
o
i
t
a
u
n
n
a
$
3
5
0
5
1
,
-
0
0
3
5
2
,
9
6
1
1
2
,
0
0
3
5
2
,
0
0
0
5
2
,
s
e
v
i
t
u
c
e
x
E
r
e
m
r
o
F
0
0
3
5
2
,
0
0
0
5
2
,
-
0
0
5
2
1
,
-
1
6
7
2
1
,
3
5
9
0
9
,
0
3
4
6
9
,
-
-
-
-
-
-
$
2
r
e
h
t
O
0
5
3
8
5
4
,
1
1
2
7
1
2
7
,
-
-
-
-
0
5
3
8
5
4
,
2
7
1
2
7
,
-
$
1
2
2
2
,
6
2
2
3
,
4
5
1
2
,
-
-
8
1
1
4
,
9
1
5
1
,
-
0
9
5
2
,
-
1
8
8
5
6
5
9
,
4
4
1
7
,
n
o
N
y
r
a
t
e
n
o
m
1
s
t
i
f
e
n
e
b
I
T
S
h
s
a
C
&
y
r
a
l
a
s
$
$
t
n
e
m
y
a
p
s
e
e
f
6
8
0
6
6
,
7
8
4
,
1
2
4
-
0
0
5
5
8
,
1
5
9
1
7
,
0
0
6
3
9
,
1
5
9
6
8
,
-
0
0
7
,
9
4
4
8
4
0
,
1
8
3
0
0
7
,
4
9
4
9
6
2
,
3
6
4
-
7
6
3
,
2
3
4
0
0
0
0
5
1
,
0
0
0
,
5
7
9
-
-
-
-
-
2
3
2
,
9
8
2
-
2
8
2
,
4
0
1
6
8
1
5
4
2
,
4
5
2
,
8
9
7
,
1
2
0
9
8
0
3
,
1
3
8
,
2
1
2
,
2
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
3
2
Y
F
2
2
Y
F
6
r
e
h
g
u
o
L
D
e
m
a
N
l
7
h
s
e
W
L
i
8
n
e
e
r
t
l
S
A
4
1
n
a
w
o
C
-
l
l
e
b
p
m
a
C
G
9
n
o
s
t
e
J
A
C
2
1
r
e
c
n
e
p
S
E
s
l
a
t
o
T
s
t
i
f
e
n
e
b
m
r
e
t
t
r
o
h
S
r
a
e
Y
e
v
i
t
u
c
e
x
E
n
o
i
t
a
r
e
n
u
m
e
r
l
e
n
n
o
s
r
e
P
t
n
e
m
e
g
a
n
a
M
y
e
K
e
v
i
t
u
c
e
x
E
:
2
1
l
e
b
a
T
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
t
o
n
e
r
e
w
e
r
e
h
t
,
s
e
i
t
u
d
r
i
e
h
t
i
g
n
m
r
o
f
r
e
p
n
i
d
e
r
r
u
c
n
i
y
l
i
r
a
s
s
e
c
e
n
t
n
e
m
p
o
e
v
e
d
l
l
i
a
n
o
s
s
e
f
o
r
p
d
n
a
n
o
i
t
a
d
o
m
m
o
c
c
a
,
l
e
v
a
r
t
f
o
t
n
e
m
e
s
r
u
b
m
e
r
i
i
r
o
n
o
s
v
o
r
p
i
e
h
t
n
a
h
t
r
e
h
t
O
n
o
i
t
a
r
e
n
u
m
e
r
y
r
o
t
u
t
a
t
s
–
P
M
K
e
v
i
t
u
c
e
x
E
1
.
8
n
o
i
t
a
m
r
o
f
n
i
y
r
o
t
u
t
a
t
s
l
a
n
o
i
t
i
d
d
A
8
.
w
o
e
b
l
l
e
b
a
t
e
h
t
n
i
d
e
s
o
c
s
d
i
l
s
a
n
a
h
t
r
e
h
t
o
s
e
v
i
t
u
c
e
x
E
34 | St Barbara Annual Report 2023
.
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
n
i
i
d
e
v
e
c
e
r
s
a
h
e
v
i
t
u
c
e
x
e
n
a
t
a
h
w
t
c
e
l
f
e
r
t
o
n
s
e
o
d
e
u
a
v
l
i
s
h
T
.
s
d
r
a
d
n
a
t
S
g
n
i
t
n
u
o
c
c
A
n
a
i
l
a
r
t
s
u
A
l
t
n
a
v
e
e
r
d
n
a
1
0
0
2
t
c
A
s
n
o
i
t
a
r
o
p
r
o
C
e
h
t
h
t
i
w
e
c
n
a
d
r
o
c
c
a
n
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
n
i
i
d
e
s
n
g
o
c
e
r
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
e
h
t
f
o
e
u
a
v
l
r
i
a
f
e
h
t
f
o
n
o
i
t
r
o
p
e
h
t
s
i
n
o
i
t
a
r
e
n
u
m
e
r
.
s
t
n
e
m
e
l
t
i
t
n
e
e
v
a
e
l
l
a
u
n
n
a
d
n
a
e
v
a
e
l
i
e
c
v
r
e
s
g
n
o
l
s
e
d
u
c
n
l
i
e
v
a
e
L
s
a
d
e
s
o
c
s
d
l
i
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
l
f
o
e
u
a
v
e
h
T
.
x
a
t
s
t
i
f
e
n
e
b
e
g
n
i
r
f
i
d
e
t
a
c
o
s
s
a
d
n
a
i
s
p
h
s
r
e
b
m
e
m
l
i
a
n
o
s
s
e
f
o
r
p
,
g
n
k
r
a
p
i
r
a
c
e
s
i
r
p
m
o
c
s
e
v
i
t
u
c
e
x
E
r
o
f
s
t
i
f
e
n
e
b
y
r
a
t
e
n
o
m
-
n
o
N
s
e
r
a
h
s
y
r
a
n
d
r
o
i
i
d
a
p
y
l
l
u
f
f
o
m
r
o
f
e
h
t
n
i
i
t
n
e
m
y
a
p
g
n
d
r
a
o
b
n
o
f
f
o
-
e
n
o
s
t
n
e
s
e
r
p
e
R
.
d
e
u
s
s
i
e
r
e
w
e
b
l
l
i
w
s
e
r
a
h
s
o
n
e
r
o
f
e
r
e
h
t
,
3
2
0
2
e
n
u
J
0
3
t
a
l
l
u
f
n
i
d
e
s
p
a
l
1
2
Y
F
n
i
l
e
n
n
o
s
r
e
P
t
n
e
m
e
g
a
n
a
M
y
e
K
o
t
d
e
u
s
s
i
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
l
,
e
p
m
a
x
e
r
o
F
8
8
f
o
4
3
e
g
a
P
o
t
d
e
d
r
a
w
a
t
n
e
m
y
a
p
I
T
L
r
o
I
T
S
o
n
s
a
w
e
r
e
h
T
.
r
a
e
y
l
i
a
c
n
a
n
i
f
e
h
t
f
o
d
n
e
e
h
t
t
a
i
d
a
p
s
n
o
i
t
a
r
e
p
o
’
s
y
n
a
p
m
o
C
e
h
t
f
o
t
c
e
p
s
e
r
n
i
t
r
o
p
p
u
s
g
n
o
g
n
o
i
i
s
h
r
o
f
0
0
0
,
0
0
2
$
f
o
t
n
e
m
y
a
p
l
a
n
o
i
t
i
d
d
a
n
a
d
n
a
)
0
0
0
,
0
0
5
$
(
t
n
e
m
e
l
t
i
t
n
e
l
a
u
t
c
a
r
t
n
o
c
e
c
i
t
o
n
’
s
h
t
n
o
m
6
,
3
6
7
,
3
1
2
$
f
o
n
o
i
t
a
n
m
r
e
t
n
o
d
a
p
i
i
e
v
a
e
l
l
a
u
n
n
a
d
e
d
u
c
n
l
i
t
n
e
m
y
a
p
n
o
i
t
a
n
m
r
e
t
i
’
s
n
o
s
t
e
J
.
3
2
Y
F
r
o
f
n
o
s
t
e
J
.
2
2
0
2
r
e
b
m
e
c
e
D
9
n
o
r
e
g
a
n
a
M
e
v
i
t
u
c
e
x
E
n
a
s
a
d
e
s
a
e
c
d
n
a
2
2
0
2
r
e
b
m
e
v
o
N
8
2
n
o
r
o
t
c
e
r
i
D
a
s
a
d
e
s
a
e
c
n
o
s
t
e
J
.
1
2
0
2
l
y
u
J
6
2
n
o
e
o
r
l
r
e
c
i
f
f
O
t
n
e
m
p
o
e
v
e
D
l
i
f
e
h
C
e
h
t
o
t
i
t
d
e
n
o
p
p
a
s
a
w
n
e
e
r
t
i
l
S
.
1
2
0
2
t
s
u
g
u
A
7
2
n
o
e
o
r
l
r
e
c
i
f
f
O
l
i
a
c
n
a
n
F
i
i
f
e
h
C
e
h
t
o
t
i
d
e
t
n
o
p
p
a
s
a
w
h
s
e
W
l
r
M
r
M
r
M
r
M
r
M
t
n
e
m
y
a
p
l
a
u
t
c
a
t
c
e
l
f
e
r
o
t
d
e
t
a
t
s
e
R
.
n
o
i
t
a
r
e
n
u
m
e
r
’
l
a
t
o
T
‘
y
b
d
e
d
v
d
i
i
’
s
t
n
e
m
y
a
p
d
e
s
a
b
-
e
r
a
h
S
‘
s
u
p
l
’
t
n
e
m
y
a
p
I
T
S
‘
s
a
d
e
t
a
u
c
a
C
l
l
.
2
2
0
2
r
e
b
m
e
v
o
N
8
2
r
o
t
c
e
r
i
D
a
s
a
i
d
e
t
n
o
p
p
A
.
e
g
n
a
h
c
i
s
h
t
f
o
e
v
i
t
c
e
l
f
e
r
s
i
a
t
a
d
2
2
Y
F
,
1
2
0
2
r
e
b
m
e
c
e
D
3
2
l
i
t
n
u
r
e
c
i
f
f
o
e
v
i
t
u
c
e
x
E
i
r
o
n
e
S
f
o
l
e
o
r
e
h
t
n
i
a
r
a
b
r
a
B
t
S
h
t
i
w
d
e
n
a
m
e
r
i
r
e
c
n
e
p
S
r
M
r
e
v
e
w
o
h
,
1
2
0
2
r
e
b
o
t
c
O
4
1
n
o
P
M
K
f
o
r
e
b
m
e
m
a
s
a
d
e
s
a
e
c
r
e
c
n
e
p
S
.
t
n
e
m
e
l
t
i
t
n
e
l
a
u
t
c
a
r
t
n
o
c
n
o
i
t
a
n
m
r
e
t
i
s
h
t
n
o
m
8
d
n
a
e
v
a
e
l
l
a
u
n
n
A
,
L
S
L
d
e
d
u
c
n
l
i
t
n
e
m
y
a
p
n
o
i
t
a
n
m
r
e
t
i
’
s
n
a
w
o
C
-
l
l
e
b
p
m
a
C
.
e
g
n
a
h
c
i
s
h
t
f
o
e
v
i
t
c
e
l
f
e
r
s
i
a
t
a
d
2
2
Y
F
.
1
2
0
2
r
e
b
m
e
t
p
e
S
0
1
n
o
P
M
K
f
o
r
e
b
m
e
m
a
s
a
d
e
s
a
e
c
n
a
w
o
C
-
l
l
e
b
p
m
a
C
l
.
y
n
o
s
t
n
e
m
e
l
t
i
t
n
e
e
v
a
e
l
l
a
u
n
n
a
d
e
d
u
c
n
l
i
t
n
e
m
y
a
p
n
o
i
t
a
n
m
r
e
t
i
s
’
r
e
c
n
e
p
S
r
M
r
M
r
M
r
M
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
St Barbara Directors and Financial Report / 30 June 2023
8.2
Rights Vested and On Issue
There are three LTI tranches relevant to the 2023 financial year, which are summarised below:
Grant year /
tranche name
FY21 Performance Rights Granted as LTI remuneration in
Description
Performance Conditions
& Weighting
67%
RTSR
2021 and disclosed in the
2020 Notice of AGM and
2021 Remuneration Report
FY22 Performance Rights Granted as LTI remuneration in
2022 and disclosed in the
2021 Notice of AGM and
2022 Remuneration Report
FY23 Performance Rights Granted as LTI remuneration in
2023 and disclosed in the
2022 Notice of AGM and
2023 Remuneration Report
Table 13: LTI tranches relevant to 2023 financial year
The three LTI tranches are illustrated on a timeline below:
ROCE
33%
RTSR
50%
ROCE
30%
Reserves 20%
Replenishment
RTSR
50%
ROCE
30%
Reserves 20%
Replenishment
Performance
Period
1 July 2020
to 30 June 2023
Status
Tested June 2023
1 July 2021
to 30 June 2024
To be tested June 2024
1 July 2022
to 30 June 2025
To be tested June 2025
Financial year
2021
2022
2023
2024
2025
3-yr vesting period - tested June 2023
3-yr vesting period - to be tested June 2024
Issued in FY23
3-yr vesting period - to be tested June 2025
FY21 Performance Rights
FY22 Performance Rights
FY23 Performance Rights
Figure 6: Current LTI tranche timeline
8.3
Summary of Rights on issue and vested in 2023
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 year
/ tranche
name
Grant Date
Price on
issue date
Held at
1 July 2022
Granted as
compensation
during the
year
Vested
during the
year
Forfeited
during the
year
Held at
30 June
20231
Financial
year in
which grant
may vest
-
-
-
-
(16,971)
(34,457)
-
-
-
2023
51,4283
161,017
-
303,191
176,271
-
331,915
238,095
423,729
37,757
105,367
-
-
-
D Lougher
L Welsh
FY232
-
FY21
30 Nov 2020
FY22
22 Jul 2021
FY23
23 Nov 2022
A Strelein
FY22
26 Jul 2021
FY23
23 Nov 2022
Former Executives
C Jetson
R Cole
FY21
FY22
FY21
28 Oct 2020
27 Oct 2021
24 Jul 2020
G Campbell-Cowan FY21
24 Jul 2020
Table 14: Summary of rights on issue and vested in 2023
-
$3.15
$1.77
$0.94
$1.77
$0.94
$3.15
$1.77
$3.15
$3.15
1 The vesting of Rights held at 30 June 2023 is subject to future performance conditions.
2 Mr Lougher was not eligible for LTI's for FY23.
3 The vesting of FY21 Rights for Mr Welsh is related to his previous role as a non-KMP
-
-
-
-
-
-
-
-
-
-
-
-
161,017
2024
303,191
2025
176,271
2024
331,915
2025
(238,095)
-
2023
-
423,729
2024
(37,757)
(105,367)
-
-
2023
2023
St Barbara Annual Report 2023 | 35
St Barbara Directors and Financial Report / 30 June 2023
8.4
Rights granted in 2023
Details on rights over ordinary shares in the Company that were granted as remuneration to each Executive in the 2023 financial year
are as follows:
Grant year /
tranche
identifier
L Welsh
A Strelein
Table 15: Rights granted in 2023
FY23
FY23
Grant date
22 Jul 2022
22 Jul 2022
Number of
performance rights
granted during
FY2023
303,191
331,915
Issue price per
performance right
$0.94
$0.94
Expiry date
30 Jun 2025
30 Jun 2025
Fair value per
performance right at
grant date
($ per share)1
$0.36
$0.36
8.5
Details of FY23 Performance Rights granted during 2023
FY23 Performance rights were granted under the St Barbara Limited Rights Plan and details of the performance conditions were set
out in the Notice of 2022 Annual General Meeting. While shareholders approved the grant of Rights for the former Managing Director
and CEO at the meeting, Mr Jetson did not participate in the FY23 LTIP and the Rights were not issued.
Key Features of FY23 Performance Rights
Performance conditions
Other conditions
Issue price
Measurement period
Vesting date
RTSR (50% weighting)
ROCE in excess of the weighted average cost of capital (30% weighting)
Reserves Replenishment (20%)
Continuing employment
10-day VWAP at start, 30 June 2022, $0.94
1 July 2022 to 30 June 2025
30 June 2025
8.6
Relative Total Shareholder Return
Relative Total Shareholder Return (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 total shareholder return (TSR)
performance of the Company.
The comparator group of companies for FY23 Performance Rights comprises 14 companies that are of a similar size (market
capitalisation) and complexity, with operations and geographic footprint similar to St Barbara 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.
FY23 TSR Peer Group
Alamos Gold Inc. (AGI)
Coeur Mining Inc. (CDE)
Bellevue Gold Limited (BGL)
Capricorn Metals Limited (CMM)
Gold Road Resources Limited (GOR)
OceanaGold Corp (OGC)
Perseus Mining Limited (PRU)
Ramelius Resources (RMS)
Regis Resources Limited (RRL)
Resolute Mining Limited (RSG)
Silver Lake Resources Limited (SLR)
SSR Mining Inc (SSR)
West African Resources (WAF)
Westgold Resources Limited (WGX)
The proportion of the FY23 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 2022 and ending 30 June 2025 as outlined below:
Relative TSR Performance
Below 50th percentile
50th percentile
Between 50th & 75th percentiles
75th percentile and above
% Contribution to the Number of
Performance Rights to Vest
0%
50%
Pro-rata from 50% to 100%
100%
1 AASB 2 requires that the liability under the Rights to be measured initially and at each reporting date until settled, at the fair value of the pay-out, by applying an option pricing model taking into account the terms and conditions on which
the pay-out is granted. The valuation of the Rights was completed using various option pricing models. Models used included a hybrid trinomial option model with absolute and relative total shareholder return hurdles. The absolute total
shareholder return hurdle component used a Black Scholes model with a single share price target. The models are weighted to arrive at values that reflect both hurdles.
36 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
8.7
Return on Capital Employed
The proportion of FY23 Performance Rights that vest will be influenced by the ROCE achieved by the Company over the three-year
vesting period commencing 1 July 2022 and ending 30 June 2025.
Return on Capital Employed (ROCE)
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%
WACC (calculated as above) + between 3% and 7%
WACC (calculated as above) + 7%
8.8
Reserves Replenishment
% Contribution to the Number of
Performance Rights to Vest
0%
50%1
Pro-rata from 50% to 100%
100%
Reserves Replenishment measures long-term sustainability of the Company. This measure was introduced first in the FY22 LTI and
was used in the FY23 LTI. In line with the Company’s revised reserves and resources reporting calendar (1 January to 31 December,
commencing 31 December 2021), this measure will be assessed over a three-year period commencing 31 December 2021 to 31
December 2024.
Reserves Replenishment
Zero growth/depletion replaced
Depletion replaced plus 10% growth
Depletion replaced plus 20% growth
% 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 31 December 2021 as outlined below:
0% of performance rights to vest
50% of performance rights to vest
100% of performance rights to vest
The outcome of FY23 Performance Rights will be reported in the 2025 Remuneration Report.
8.9
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. Mr Lougher was granted 800,000 on-boarding shares over two tranches during the
year.
Name
Non-Executive Directors
K J Gleeson
S E Loader
D E J Moroney
T C Netscher2
Executives
D R Lougher
L Welsh4
A Strelein5
Former Executives
C A Jetson6
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
34,361
49,001
105,438
107,616
-
-
-
-
-
-
124,660
17,226
-
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(8,613)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
800,0003
-
-
-
34,361
49,001
105,438
107,616
800,000
133,273
-
200,000
Table 16: Key Management Personnel Shareholding
1
2
3
4
5
6
If threshold is not achieved (WACC + 3%) the outcome would be Nil with no provision for pro-rata.
Mr Netscher retired on 28 April 2023.
Issue of 800,000 fully paid ordinary shares as a one-off onboarding payment to Mr Lougher, MD &CEO, in accordance with his employment contract as disclosed in ASX announcement dated 17 November 2022.
Mr Welsh was appointed to the Chief Financial Officer role on 27 August 2021.
Mr Strelein was appointed to the Chief Development Officer role on 26 July 2021.
Ceased as a Director 28 November 2022.
St Barbara Annual Report 2023 | 37
St Barbara Directors and Financial Report / 30 June 2023
8.10
Shareholding guidelines for Non-Executive Directors and Executives
While the Company does not have a formal minimum shareholdings policy, 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.
To facilitate the acquisition of shares by the Group’s Non-Executive Directors, the Company adopted a Non-Executive Director equity
plan (NED Plan) approved by the Board in July 2020. The Plan enables Non-Executive Directors to nominate at the beginning of each
financial year 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. In FY21, two Directors participated in the NED Plan through
nominating a proportion of their fees to acquire shares, (Stef Loader and Kerry Gleeson). In June 2023 Ms Loader and Ms Gleeson
nominated to exercise their FY21 NED Rights1 with shares subsequently issued on 7 June 2023 in accordance with the NED Plan
which restricts disposal from the earlier of ceasing to be a Director or 10 years. Ms Loader and Ms Gleeson continued their election
through to FY22 and David Moroney also participated in the plan in FY22. No applications were received in relation to share acquisition
for FY23 NED fees. In alignment with the Company’s revised strategic focus, it is proposed to review the current NED plan and
introduce a simplified approach enabling Non-Executive Directors to participate in a fee sacrifice plan which enables them to build
equity holdings in the Company.
Refer to Table 11 for more detail on the Non-Executive Director Remuneration.
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.
See Section 8.9 for information relating to Non-Executive Director shareholdings and movements.
8.11
Loans to Directors and Executives
There were no loans to Directors or Executives during the 2023 financial year.
9. Looking ahead to FY24
The completion of divestment of St Barbara’s Leonora Assets (including Gwalia and nearby exploration and development assets) to
Genesis on 30 June 2023 and the distribution of Genesis shares received as part proceeds of that sale have resulted in a substantially
smaller market capitalisation company with a new strategic focus on its overseas development assets in Nova Scotia, Canada and
at Simberi in Papua New Guinea. The reduced operating scale and the emphasis on progression of the overseas undeveloped
projects dictates a restructuring of management in favour of a smaller energetic team with capabilities in project development and
permitting. The smaller market capitalisation of the Company necessitates lower fixed remuneration and higher relative at-risk
component tied to delivery of outcomes with respect to the progress of the overseas development assets to best align reward with
shareholder value creation but nonetheless act as sufficient incentive to allow the Company to attract and retain key management for
delivery of the new strategic focus particularly at a highly competitive market for talent.
In light of these important shifts in the company size and strategic focus, the Board has re-designed the remuneration arrangements
for FY24 taking into account the following:
Lower fixed remuneration for senior management roles, relative to that which has applied to similar positions to date, given
the smaller company size in terms of workforce, asset and market capitalisation (as a result of the Leonora Assets transaction
and the sale proceeds share distribution).
Greater at risk components in remuneration packages reflect the significant shift in the future direction and recognise the
different challenges of project development while aligning reward with the creation of value for shareholders.
Project incentive mechanisms tied to achievement of final investment decisions on expansion of Simberi and development
of Fifteen Mile Stream to reward achievement of key milestones that are expected to translate into value accretive outcomes
to shareholders through to FY27 and FY28 and recognising the challenges involved in achieving those development
outcomes.
1
Refer ASX Appendix 3G dated 8 June 2023: https://stbarbara.com.au/wp-content/uploads/2023/06/2023.06.08-appendix-3g.pdf.
38 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
FY24 Remuneration structure overview
Several changes are therefore being implemented for FY24 KMP remuneration in light of these considerations. A detailed explanation
of FY24 KMP remuneration arrangements will be disclosed in the FY24 Remuneration Report, however a high-level summary is
provided in the table below.
FY24 Remuneration Arrangements
TFR
STI
TFR has been reduced for KMP positions recognising the smaller size in favour of a greater exposure
to at-risk remuneration tied to project outcomes that will enhance shareholder value.
STI quantum maintained in FY24 but criteria restructured to align with the focus on project
development outcomes but with retention of safety elements.
FY24 LTI
Performance
Rights
(Note further
design details
are provided
under the table)
Project incentive
performance
rights
(Note further
design details
are provided
under the table)
NED fees
LTI grant to apply a single performance measure being absolute TSR (ATSR). Existing Plans in
place for FY22 and FY23 will continue to use LTI measures (RTSR, Reserves and ROCE). ATSR has
been chosen for FY24 to recognise the changing business focus, the lack of sufficient relevant
comparator group and to incentivise executives to make decisions and deliver outcomes that benefit
the Company’s long term share price. As such ATSR provides a direct link between reward and actual
returns to the shareholders thereby aligning executives’ performance with the creation of shareholder
value.
Increase quantum opportunity. Given the lower fixed remuneration, increased the quantum of
opportunity at risk to support attraction and retention and emphasize the importance of long-term
business success and shareholder value creation (e.g., remuneration mix to be weighted more towards
LTI).
One off grant of long term project incentive performance rights recognising the significance of
retaining key roles in the new executive team and focussing them on delivering strategic outcomes
critical for the development projects at both Atlantic and Simberi Operations (i.e. achievement of final
investment decisions on the development of Fifteen Mile Stream project and the expansion of Simberi)
through FY27 and FY28 development timelines (i.e. 4-5 years’ time horizon). The project incentive
performance rights are to be granted in two tranches with each equating to twice the relevant
employee’s TFR and vesting in four and five years respectively based on key project milestone
outcomes and subject to continued employment. These will be granted to the Managing Director and
CEO and the incoming Chief Financial Officer. Other senior executives key to the delivery of these
project outcomes will be granted similar project incentive performance rights of varying quantum.
Reduce Base and Committee Fees for FY24 commensurate with the size and nature of the Company
while seeking to be in alignment with the responsibilities of the time commitment of the new Board. The
FY24 Director Fee Policy will be as follows (all fees are inclusive of superannuation):
Chair:
Base fee:
Committee Chair:
Committee member:
$180,000
$90,000
$15,000
$10,000
9.1
FY24 LTI Performance Rights
Performance rights in respect of the 2024 financial year will be offered to the Managing Director and CEO1, incoming Chief Financial
Officer and specified key executives (FY24 Performance Rights) pursuant to the terms of the St Barbara Limited Rights Plan and
the service and performance conditions set out below.
1. FY24 Performance Rights pricing
The issue price of the FY24 Performance Rights is $0.2468 per right, based on the 5 day VWAP up to and including 9 June 2023
(being $0.5626) adjusted down to account for the estimated value of the in-specie distribution of shares in Genesis Minerals Limited
to Shareholders (which was estimated at the time to be $0.3158 per Share based on the 5-day VWAP of shares in Genesis Minerals
Limited up to and including 9 June 2023).
1 Grant of performance rights subject to shareholder approval at the Company’s 2023 Annual General Meeting.
St Barbara Annual Report 2023 | 39
St Barbara Directors and Financial Report / 30 June 2023
2. Service and performance conditions for FY24 Performance Rights
The service condition for FY24 Performance Rights requires continuous employment for a three-year period commencing on 1 July
2023. The Board has discretion in circumstances of death, disability or bona fide redundancy to vary the service condition and reduce
the number of performance rights proportionately for a period of service of less than three years.
The performance conditions for FY24 Performance Rights will be measured over a three-year vesting period commencing 1 July 2023
and ending on 30 June 2026. Vesting condition include satisfying conditions relating to Absolute Total Shareholder Return.
Absolute Total Shareholder Return – performance hurdle
The Board has approved the Rights Plan being amended to replace the existing performance conditions with an Absolute Total
Shareholder Return (ATSR) condition for the FY24 Performance Rights. ATSR ties the performance measure directly to the
experience of shareholders as reflected in the share price performance. It:
represents the return experienced by shareholders from an investment in the Company’s Shares over a period of time assuming
that dividends are reinvested into the Company’s Shares;
is an important vesting condition for LTI grants of equity units (rights or options);
appropriately reflects the experience of shareholders and is effective in creating alignment between the interests of management
and the interests of Shareholders; and
overcomes the issue of a lack of appropriately relevant comparator companies for the Company, post the sale of the Leonora
assets and the in-specie distribution of shares in Genesis Minerals Limited to Shareholders.
The following vesting schedule will be applied to the FY24 Performance Rights.
Performance level
Below threshold
Threshold
Target
Stretch / Maximum
Company's Total Shareholder Return
Measurement
Percentage of grant to vest
<5%
5%
10%
>5% and 10%
20%
>10% and <20%
0% of rights vest
25% of rights vest
50% of rights vest
Pro rata
100% of rights vest
Pro rata
The proportion of the FY24 Performance Rights that vest will be influenced by the Company's ATSR over the three-year vesting
period commencing 1 July 2023 and ending 30 June 2026.
3. Percentage of relevant TFR offered as LTIs for FY24
The percentage of TFR that a participant is eligible to be offered as LTI for 2024 under the Rights Plan increases with seniority, with
the smallest percentage being 20% and largest being 150%, for the Managing Director and CEO.
The Board has the discretion to vary the relevant percentage each year, having regard to external advice and / or relevant market
benchmarks.
9.2
One-off Project Incentive Performance Rights
One-off grant of long-term project incentive performance rights to be made to Key Management Personnel, and specified senior key
executives critical for the development projects at both Atlantic and Simberi Operations pursuant to the terms of the St Barbara Limited
Rights Plan and the service and performance conditions set out below. The one-off project incentive performance rights are to be
granted in two tranches with vesting to be assessed in FY27 and FY28 respectively (Project Incentive Performance Rights).
1. One-off Project Incentive Performance Rights pricing
The issue price of the one-off Project Incentive Performance Rights is $0.2468 per right, based on the 5 day VWAP up to and including
9 June 2023 (being $0.5626) adjusted down to account for the estimated value of the in-specie distribution of shares in Genesis
Minerals Limited to Shareholders (which was estimated at the time to be $0.3158 per Share based on the 5-day VWAP of shares in
Genesis Minerals Limited up to and including 9 June 2023).
40 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
2. Performance and service conditions for one off Project Incentive Performance Rights
The number of Project Incentive Performance Rights that may vest will be subject to satisfaction of the following hurdles:
Achievement of strategic performance measures linked to delivery of final investment decisions on expansion of Simberi
Operations in Papua New Guinea and development of Fifteen Mile Stream in Canada (and related strategic outcomes for
the Atlantic and Simberi Operations). Vesting outcomes based on achievement of these strategic performance measures
will be determined by the Board at its discretion. The Board’s rationale in assessing performance and determining these
vesting outcomes will be disclosed at that time; in addition the first tranche of Project Incentive Performance Rights requires
continuous employment for a four-year period commencing on 1 July 2023; and the second tranche of Project Incentive
Performance Rights requires continuous employment for a five-year period commencing on 1 July 2023.
3. Percentage of relevant TFR offered as one-off Project Incentive Performance Rights
The percentage of TFR that is intended to be offered as Project Incentive Performance Rights under the Rights Plan for the Managing
Director and CEO will be 200%.
St Barbara Annual Report 2023 | 41
St Barbara Directors and Financial Report / 30 June 2023
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
The Group 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. In Canada, the
Group is subject to both Federal and Provincial legislation.
for
team of environmental professionals worked together to
review and improve our systems, ensuring that we stay
abreast of the current Environmental and Social Governance
topics. These improvements will be implemented in FY24. All
operations have developed and deliver on HSEC
improvement plans as part of our continuous improvement
processes. External audits have been scheduled for FY24 at
Simberi and PNG Exploration to review and confirm our
compliance with the improvement plans.
In FY23 Atlantic maintained all environmental requirements to
operate, working with NSECC to answer any questions or
directives issued through the year. All orders from the
February 2022 Federal and Provincial Charges were
completed on time within FY23 with no matters outstanding
arising from those orders.
Simberi worked with the MRA and CEPA to ensure that the
site maintained compliance with its Environmental Licence. In
FY22 the Deep Sea Tailings Pipeline was replaced with
regular monitoring and inspection during FY23 confirmed that
the pipe continues
in compliance with all
requirements.
to operate
Non-audit services
Details of the amounts paid or payable to the auditor,
PricewaterhouseCoopers, for non-audit services provided
during the 2023 financial year are set out in Note 20 to the
consolidated financial statements.
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:
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
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.
The group wide integrated Health, Safety, Environment and
Community Management system has been implemented to
facilitate the effective and responsible management of
environmental
the same high standard of
environmental standard across all sites. During FY23, a global
issues
to
42 | St Barbara Annual Report 2023
disciplined approach to capital
management. Following the change
in our operational footprint, we
dramatically reduced our corporate
estructure. We now
have a small, nimble leadership
team focused on bringing our
development projects to decision
During this transformational year
there have been a number of Board
and management changes. In
November 2022 Mr Craig Jetson
resigned as Managing Director and
Chief Executive Officer and the
Company moved quickly to appoint
focus
on stabilising the performance from
Gwalia underground following the
announced in October 2022. We
thank Craig for his efforts particularly
through the impacts of the global
Mr Dan Lougher retired at the end of
the financial year, following the
completion of the sale of Leonora
Operations, and we thank Dan for his
leadership in the second half of the
eting revised
transaction. Mr Andrew Strelein was
appointed as Managing Director and
Ms Kerry Gleeson was appointed as
Non-Executive Chair following the
retirement of Mr Tim Netscher in April
2023. Tim served as Director and
Chairman over multiple terms
overseeing significant changes and
challenges in that time and on
d we thank Tim for
his dedicated years of service.
In addition, as part of the Board
renewal process, Mr David Moroney
has indicated he will retire from the
Board with effect on 31 December
St Barbara Directors and Financial Report / 30 June 2023
2023. We take this opportunity to
welcome Mark, Joanne and Warren
to the Board and thank David for his
contribution to St Barbara over the
last eight years, including as Chair of
Events occurring after the end of the financial
Audit and Risk Committee.
year
The Directors are not aware of any matter or circumstance that
Mr Mark Hine, Ms Joanne Palmer and
has arisen since the end of the financial year that, in their
Mr Warren Hallam will stand for
opinion, has significantly affected or may significantly affect in
election at the Company’s Annual
future years the Company’s or the Group’s operations, the
General Meeting on 25 October
results of those operations or the state of affairs, except as
described in this note.
2023. With these changes, we will
continue to review the composition
Following the sale of Leonora Assets, St Barbara completed
an in-specie distribution of 205 million Genesis shares
of the Board and maintain our
to eligible St Barbara
received as part consideration
commitment to best practice
shareholders in the form of a capital return in July 2023. As
corporate governance
the capital return was approved by shareholders and declared
prior or at 30 June 2023 a liability for the amount payable of
This financial year has been one of
$267,525,000 has been recognised with the reduction of
contributed equity. The Genesis Minerals shares held for
significant change for St Barbara.
capital return and the capital return payable recognised in the
However, with a change of
Consolidate Balance Sheet as at 30 June 2023 were netted
leadership and a new operational
off when the capital return was completed in July 2023.
footprint we enter the new financial
St Barbara and Linden Gold Alliance Limited (Linden) have
year ready to focus on delivering
agreed the wind down and settlement of the secured Second
positive outcomes for our people,
Fortune debt facility. St Barbara received the first tranche of
14,056,250 shares in Linden on 14 August 2023.
shareholders and communities.
Rounding of amounts
On behalf of the Board, the
St Barbara Limited is a Company of the kind referred to in
leadership team and everyone at
ASIC Corporations (Rounding in Financial/Directors’ Report)
St Barbara, we would like to thank
Instrument 2016/191 issued by the Australian Securities and
shareholders for your continued
Investment Commission (ASIC). As a result, amounts in this
Directors’ Report and the accompanying Financial Report
support. To St Barbara employees
have been rounded to the nearest thousand dollars, except
we thank you for all your hard work
where otherwise indicated.
and commitment throughout this
This report is made in accordance with a resolution of
challenging year.
Directors.
For and on behalf of the Board
Kerry Gleeson
Dated at Perth this 24 August 2023
Independent Non-Executive Chair
Andrew Strelein
Andrew Strelein
Managing Director & CEO
Managing Director and CEO
St Barbara 2023 Annual Report | III
St Barbara Annual Report 2023 | 43
St Barbara Directors and Financial Report / 30 June 2023
Auditor’s Independence Declaration
As lead auditor for the audit of St Barbara Limited for the year ended 30 June 2023, 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.
Amanda Campbell
Partner
PricewaterhouseCoopers
Melbourne
24 August 2023
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.
44 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
St Barbara Directors and Financial Report / 30 June 2023
Financial Report
Financial Report
Contents
Contents
Consolidated Financial Statements
Consolidated Financial Statements
Page
Page
About this report
About this report
Consolidated comprehensive income statement
Consolidated comprehensive income statement
Consolidated balance sheet
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of changes in equity
Consolidated cash flow statement
Consolidated cash flow statement
Notes to the consolidated financial
Notes to the consolidated financial
statements
statements
A. Key results
A. Key results
1 Segment information
1 Segment information
2 Tax
2 Tax
3 Significant items
3 Significant items
4 Earnings per share
4 Earnings per share
5 Dividends
5 Dividends
B. Mining operations
B. Mining operations
6 Property, plant and equipment
6 Property, plant and equipment
7 Deferred mining costs
7 Deferred mining costs
8 Mine properties and mineral rights
8 Mine properties and mineral rights
9 Exploration and evaluation
9 Exploration and evaluation
10 Rehabilitation provision
10 Rehabilitation provision
C. Capital and risk
C. Capital and risk
11 Working capital
11 Working capital
12 Financial risk management
12 Financial risk management
13 Net debt
13 Net debt
14 Contributed equity
14 Contributed equity
D. Business Portfolio
D. Business Portfolio
15 Parent entity disclosures
15 Parent entity disclosures
16 Financial assets and fair value of financial
16 Financial assets and fair value of financial
assets
assets
17 Controlled entities
17 Controlled entities
E. Remunerating our people
E. Remunerating our people
18 Employee benefit expenses and provisions
18 Employee benefit expenses and provisions
19 Share-based payments
19 Share-based payments
Further disclosures
F.
F. Further disclosures
20 Remuneration of auditors
20 Remuneration of auditors
21 Events occurring after the balance sheet
21 Events occurring after the balance sheet
date
date
22 Contingencies
22 Contingencies
23 Discontinued operations
23 Discontinued operations
24 Basis of preparation
24 Basis of preparation
25 Accounting standards
25 Accounting standards
Signed reports
Signed reports
Directors’ declaration
Directors’ declaration
Independent auditor’s report
Independent auditor’s report
ASX information
ASX information
Corporate directory
Corporate directory
45
45
46
46
47
47
48
48
49
49
50
50
52
52
54
54
55
55
56
56
57
57
59
59
60
60
64
64
65
65
66
66
67
67
71
71
72
72
73
73
73
73
74
74
75
75
76
76
77
77
77
77
77
77
78
78
79
79
79
79
80
80
81
81
87
95
About this report
About this report
St Barbara Limited (the “Company” or “Parent Entity”) is a
St Barbara Limited (the “Company” or “Parent Entity”) is a
company limited by shares incorporated in Australia whose
company limited by shares incorporated in Australia whose
shares are publicly traded on the Australian Stock Exchange.
shares are publicly traded on the Australian Stock Exchange.
The consolidated financial statements of the Company as at
The consolidated financial statements of the Company as at
and for the year ended 30 June 2023 comprise the Company
and for the year ended 30 June 2023 comprise the Company
and its subsidiaries (together referred to as the “Group”). The
and its subsidiaries (together referred to as the “Group”). The
Group is a for-profit entity primarily involved in mining and sale
Group is a for-profit entity primarily involved in mining and sale
of gold, mineral exploration and development.
of gold, mineral exploration and development.
The financial report is a general-purpose financial report,
The financial report is a general-purpose financial report,
which has been prepared in accordance with Australian
which has been prepared in accordance with Australian
(including Australian
(AASBs)
Accounting Standards
(including Australian
Accounting Standards
(AASBs)
the Australian Accounting
Interpretations) adopted by
the Australian Accounting
Interpretations) adopted by
Standards Board (AASB) and the Corporations Act 2001.
Standards Board (AASB) and the Corporations Act 2001.
Where required by accounting standards comparative figures
Where required by accounting standards comparative figures
have been adjusted to conform to changes in presentation in
have been adjusted to conform to changes in presentation in
the current year. The consolidated financial report of the
the current year. The consolidated financial report of the
International Financial Reporting
Group complies with
International Financial Reporting
Group complies with
the
interpretations
Standards
Standards
the
interpretations
International Accounting Standards Board.
International Accounting Standards Board.
(IFRSs) and
(IFRSs) and
issued by
issued by
The consolidated financial statements have been presented in
The consolidated financial statements have been presented in
Australian dollars and all values are rounded to the nearest
Australian dollars and all values are rounded to the nearest
thousand dollars ($000) as specified in the ASIC Corporation
thousand dollars ($000) as specified in the ASIC Corporation
Instrument 2016/191 unless otherwise stated.
Instrument 2016/191 unless otherwise stated.
The Board of Directors approved and authorised for issue the
The Board of Directors approved and authorised for issue the
consolidated financial statements on 24 August 2023. The
consolidated financial statements on 24 August 2023. The
Directors have the power to amend and reissue the financial
Directors have the power to amend and reissue the financial
statements.
statements.
What’s in this report
What’s in this report
St Barbara’s Directors have included information in this report
St Barbara’s Directors have included information in this report
the
to
that
that
to
the
understanding of the financial statements and the Group.
understanding of the financial statements and the Group.
to be material and relevant
to be material and relevant
they deem
they deem
A disclosure has been considered material and relevant
A disclosure has been considered material and relevant
where:
where:
• the dollar amount is significant in size (quantitative);
the dollar amount is significant in size (quantitative);
• the dollar amount is significant in nature (qualitative);
the dollar amount is significant in nature (qualitative);
• the Group’s result cannot be understood without the specific
the Group’s result cannot be understood without the specific
disclosure; and
disclosure; and
• it relates to an aspect of the Group’s operations that is
it relates to an aspect of the Group’s operations that is
important to its future performance.
important to its future performance.
Accounting policies and critical accounting judgements and
Accounting policies and critical accounting judgements and
estimates applied to the preparation of the consolidated
estimates applied to the preparation of the consolidated
the related
financial statements are presented where
financial statements are presented where
the related
accounting balance or consolidated financial statement matter
accounting balance or consolidated financial statement matter
is discussed. To assist in identifying critical accounting
is discussed. To assist in identifying critical accounting
judgements and estimates, we have highlighted them in the
judgements and estimates, we have highlighted them in the
following manner:
following manner:
Accounting judgements and estimates
Accounting judgements and estimates
Page 45 of 88
St Barbara Annual Report 2023 | 45
St Barbara Directors and Financial Report / 30 June 2023
Consolidated comprehensive income statement
for the year ended 30 June 2023
Continuing operations
Revenue
Mine operating costs
Gross profit
Interest revenue
Other income
Exploration expensed
Corporate costs
Royalties
Depreciation and amortisation
Share based payments
Other expenses
Expected credit loss
Impairment loss on assets
Operating loss
Finance costs
Net foreign exchange gain
Gold instrument fair value adjustments
Loss before income tax
Income tax benefit
Net loss after tax from continuing operations
Net profit after tax from discontinued operations
Loss 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 income
Items that may be reclassified to profit or loss:
Foreign currency translation differences - foreign operations
Other comprehensive income net of tax(1)
Total comprehensive income attributable to equity holders of the Company
Earnings per share for continuing and discontinued operations
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Earnings per share for continuing operations
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Notes
1
1
1
1
6
19
3
3
13
Consolidated
Restated*
2023
$'000
2022
$'000
323,852
201,272
(265,461)
(172,191)
58,391
29,081
2,590
4,107
1,619
587
(8,868)
(13,640)
(26,506)
(31,686)
(7,410)
(4,466)
(47,917)
(86,252)
(2,170)
(1,790)
(26,262)
(1,123)
(3,641)
-
(588,534)
(223,542)
(644,369)
(333,063)
(13,534)
(6,019)
4,484
8,039
1,829
6,371
(645,380)
(330,882)
2
138,730
76,082
(506,650)
(254,800)
3, 23
77,451
93,979
(429,199)
(160,821)
(13,446)
(29,706)
-
4,151
(7,200)
(20,646)
36,856
11,301
(449,845)
(149,520)
(52.58)
(52.58)
(21.96)
(21.96)
(62.07)
(62.07)
(34.80)
(34.80)
4
4
4
4
* restated to include comparative for discontinued operations relating to the sale of the Leonora operations
(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 comprehensive 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.
46 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Consolidated balance sheet
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Genesis Minerals shares held for capital return(1)
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
Capital return payable(1)
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
Other provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Notes
13
11
14, 16
11
7
11
6
16
11
7
8
9
8
2
11
14
13
10
18
12
13
10
2
18
Consolidated
2023
$'000
2022
$'000
247,037
87,212
267,525
80,986
149
98,512
26,866
-
126,174
3,923
682,909
255,475
-
87,244
20,495
-
1,699
-
57,610
67,953
-
42,297
347,083
33,980
16,780
26,604
180,676
164,536
525,031
5,876
235,001
917,910
1,342,863
1,598,338
66,177
267,525
4,296
3,771
10,128
-
27,167
379,064
8,579
124,189
11,619
1,007
145,394
524,458
78,593
-
15,197
268
14,693
8,154
-
116,905
156,441
74,753
139,385
2,189
372,768
489,673
393,452
1,108,665
14
1,325,763
1,592,576
(58,842)
(39,641)
(873,469)
(444,270)
393,452
1,108,665
(1) As the capital return was approved by shareholders and declared at or prior to 30 June 2023, a liability for the amount payable had been recognised. The Genesis Minerals shares held for capital return
and the capital return payable will net off when the capital return is completed in July 2023.
The above consolidated balance sheet should be read in conjunction with the notes to the consolidated financial statements.
St Barbara Annual Report 2023 | 47
St Barbara Directors and Financial Report / 30 June 2023
Consolidated statement of changes in equity
for the year ended 30 June 2023
Balance at 1 July 2021
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
Loss attributable to equity holders of the Company
Other comprehensive loss
Balance at 30 June 2022
Transactions with owners of the Company recognised
directly in equity:
Share-based payments expense
Performance rights issued/(expired)
In specie distribution
Total comprehensive income for the year
Loss attributable to equity holders of the Company
Other comprehensive income
Balance at 30 June 2023
Note
19
5
Consolidated
Contributed
Equity
$'000
Foreign
Currency
Translation
Other
Reserves
Accumulated
Losses
$'000
$'000
Total
$'000
Reserve
$'000
1,434,573
(59,827)
9,690
(270,769)
1,113,667
-
587
-
1,640
155,776
-
-
-
-
-
-
-
-
1,123
(1,928)
-
-
-
-
-
1,485
1,123
144
(12,525)
(12,525)
(1,640)
-
-
155,776
(160,821)
(160,821)
36,856
(25,555)
-
11,301
1,592,576
(22,971)
(16,670)
(444,270)
1,108,665
19
-
712
14
(267,525)
-
-
-
-
-
-
2,170
(725)
-
-
-
-
-
2,170
(13)
(267,525)
(429,199)
(429,199)
(7,200)
(13,446)
-
(20,646)
1,325,763
(30,171)
(28,671)
(873,469)
393,452
The above consolidated statement of changes in equity should be read in conjunction with the notes to the consolidated financial statements.
48 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Consolidated cash flow statement
for the year ended 30 June 2023
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
Stamp duty
Net income tax payments
Net cash inflow from operating activities
Cash Flows From Investing Activities:
Payments for property, plant and equipment
Payments for development of mining properties
Payments for exploration and evaluation
Cash received on sale of Leonora to Genesis Minerals
Investment in financial assets
Divestment of financial assets
Acquisitions net of cash acquired
Net cash inflow/(outflow) from investing activities
Cash Flows From Financing Activities:
Movement in restricted cash
Dividend payments
Syndicate facility draw downs
Syndicate facility repayments
Finance lease drawn down
Principal elements of lease payments
Net cash (outflow)/inflow from financing activities
Net increase/(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
Cashflows from discontinued operations
Notes
13
13
23
Consolidated
2023
$'000
2022
$'000
701,448
687,645
(607,706)
(545,301)
(16,133)
(21,519)
1,112
(9,118)
(407)
(7,067)
251
(5,713)
(1,193)
-
(10,229)
(26,514)
51,900
87,656
(21,570)
(52,371)
(11,764)
371,596
-
-
-
(63,694)
(46,140)
(28,965)
-
(25,401)
4,000
(9,811)
285,891
(170,011)
(46,907)
-
20,000
(159,196)
-
(11,842)
(197,945)
139,846
98,512
8,679
247,037
-
(12,525)
50,000
-
9,513
(8,560)
38,428
(43,927)
133,370
9,069
98,512
43,607
167,804
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 2023 | 49
St Barbara Directors and Financial Report / 30 June 2023
A. Key results
1
Segment information
Simberi
Atlantic
Total segments from
continuing operations
Leonora (discontinued
operations)
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
204,834
58,986
118,229
141,789
323,063
200,775
373,113
478,490
735
381
54
116
789
497
457
583
205,569
59,367
118,283
141,905
323,852
201,272
373,570
479,073
Gold revenue
Silver revenue
Total revenue
Mine operating costs
(171,871)
(87,573)
(93,590)
(84,618)
(265,461)
(172,191)
(269,886)
(242,368)
Gross profit
33,698
(28,206)
24,693
57,287
58,391
29,081
103,684
236,705
Royalties (1)
Depreciation and
amortisation
Impairment loss on assets
Segment (loss)/profit
before income tax
(5,047)
(1,632)
(2,363)
(2,834)
(7,410)
(4,466)
(13,566)
(21,023)
(13,519)
(74,174)
(13,068)
(32,653)
(68,717)
(46,172)
(81,785)
(58,942)
(73,547)
-
(514,360)
(223,542)
(588,534)
(223,542)
-
-
(59,042)
(42,906)
(524,683)
(237,806)
(583,725)
(280,712)
31,176
142,135
Exploration capitalised
Exploration expensed
Total exploration
(1,355)
(2,768)
(4,123)
(16,686)
(10,409)
(10,036)
(11,764)
(26,722)
(6,010)
(3,899)
(3,321)
(6,667)
(9,331)
(22,696)
(14,308)
(13,357)
(18,431)
(36,053)
-
(7,265)
(7,265)
(329)
(7,879)
(8,208)
Capital expenditure
Sustaining
Growth(2)
Total capital expenditure
(5,156)
(2,187)
(7,343)
(10,810)
(6,475)
(8,142)
(43,732)
(10,845)
(10,316)
(54,542)
(17,320)
(18,458)
(11,631)
(13,032)
(24,663)
(18,952)
(54,048)
(73,000)
(50,351)
(49,588)
(12,088)
(6,897)
(62,439)
(56,485)
Segment total assets
163,948
202,629
Segment non-current assets
Segment total liabilities
Segment – rehab provision
68,383
78,110
45,446
89,482
54,812
25,539
257,988
140,750
92,643
82,514
703,932
630,494
282,228
28,004
421,936
209,133
170,753
127,960
906,561
719,976
337,040
53,543
-
-
-
-
557,463
552,065
45,474
21,478
(1) Royalties include state and government royalties for each operation, and corporate royalties in relation to Atlantic and Leonora gold sales.
(2) Growth capital at Simberi represents expenditure associated with the sulphides project. At Atlantic growth capital represents expenditure associated with capitalised exploration, permitting
costs and near mine studies projects in the Moose River Corridor. Growth capital at Gwalia represents mainly projects with the Leonora province Plan including Bardoc.
The Group had three operational business units in FY23:
Leonora Operations, Simberi Operations, and Atlantic
Operations. The operational business units are managed
separately due to their separate geographic regions. The Leonora
operation was sold as part of an asset sale on the 30 June 2023
and is therefore reported as a discontinued operation.
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 to
transactions with any of 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.
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 are payable on gold sales revenue, based on gold
ounces produced and sold, and are therefore recognised as the
sale occurs.
50 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
1
Segment information (continued)
Major customers from continuing and discontinuing operations
to whom the Group provides goods that are more than 10% of
external revenue are as follows:
Liabilities
Total liabilities for reportable segments
170,753
337,040
Trade and other payables
Revenue
% of revenue
Capital return payable
2023
$’000
2022
$’000
382,631
303,842
204,551
56,961
59,979
91,765
51,528
110,914
-
110,914
2023
%
55.0
29.4
8.2
7.4
-
Customer A
Customer B
Customer C
Customer D
Customer E
2022
Interest bearing liabilities (current)
%
44.7
8.8
13.5
16.3
16.3
Interest bearing liabilities (non-current)
Provisions (current)
Provisions (non-current)
Deferred tax liabilities
Current tax liability
Discontinued operations
42,906
267,525
1,634
2,537
5,566
292
6,078
27,167
24,257
-
13,366
59,159
8,855
1,522
-
-
-
45,474
Consolidated total liabilities
524,458
489,673
Segment results 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 of
corporate assets and
related depreciation, exploration
expense, revenue, finance costs and corporate costs.
Continuing operations
Consolidated
2023
$’000
2022
$’000
Segment loss before income tax
(583,725)
(280,712)
Interest revenue
Other income
Exploration – corporate overhead
Exploration – segment allocation
Corporate depreciation and amortisation
Finance costs
Corporate costs
Net foreign exchange gain
Expected credit loss
Net derivative movement
Share based payments
Other expenses
2,590
4,107
(2,201)
(6,667)
(1,745)
(13,534)
1,619
587
(4,309)
(9,331)
(4,467)
(6,019)
(26,506)
(31,686)
4,484
1,829
(26,262)
8,039
(2,170)
(1,790)
-
6,371
(1,123)
(3,641)
Consolidated loss before income tax
– continuing operations
(645,380)
(330,882)
Assets
Total assets for reportable segments
Cash and cash equivalents
Trade and other receivables (current)
Genesis Minerals shares held for capital
return
Trade and other receivables (non-
current)
Deferred tax asset
Financial assets
Corporate property, plant & equipment
421,936
183,188
19,393
267,525
-
-
20,495
5,373
906,561
46,571
16,924
-
16,780
2,129
33,980
17,930
Discontinued operations
Consolidated total assets
-
557,463
917,910
1,598,338
St Barbara Annual Report 2023 | 51
St Barbara Directors and Financial Report / 30 June 2023
2
Tax
Income tax expense
Current tax expense
Deferred income tax expense
(Over)/under provision in respect of the prior
year
Total income tax benefit for continuing and
discontinuing operations
Income tax benefit/(expense) is attributable to:
Continuing operations
Discontinued operations
Consolidated
2023
$'000
2022
$'000
(40,301)
(28,379)
147,279
64,502
(1,441)
(318)
105,537
35,805
138,730
76,082
(33,193)
(40,277)
105,537
35,805
Numerical reconciliation of income tax expense to prima
facie tax payable
Loss before income tax – continuing and
discontinued operations
2023
$'000
2022
$'000
534,736
196,626
Tax at the Australian tax rate of 30%
160,421
58,988
Difference in overseas tax rates
Equity settled share-based payments
Non- deductible legal expenditure
Non- deductible interest
Non- deductible expenditure on sale of
Leonora
Sundry items
Research and development incentive
Net unbooked capital losses utilised
Permanent differences arising from foreign
exchange
(5,378)
(2,395)
(651)
(258)
(1,496)
(1,299)
(5,624)
(192)
-
334
(313)
-
-
-
(689)
431
-
1,617
Income tax
Income tax expense comprises current and deferred tax.
Current tax and deferred tax are recognised in the consolidated
comprehensive 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
included: St Barbara Limited
Entities in the Australian tax consolidated group at 30 June
2023
(head entity) and
Phoenician Metals Limited. 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
tax
can be utilised. At 30 June 2023,
consolidated group did not have any unused tax losses.
the Australian
Current tax asset
As at 30 June 2023, the Company recognised an Australian
tax payable of $27,167,000 (2022: $2,238,000
current
receivable) relating to the year ended 30 June 2023.
Tax assets on impairment not recognised
(33,831)
-
Deferred tax assets not brought to account
(6,434)
(21,889)
Accounting judgements and estimates
Income tax benefit
105,537
35,805
At 30 June 2023, tax losses and other temporary differences
relating to entities associated with Atlantic Operations in
Canada of $4,790,000 (tax effected) (June 2022: $3,835,000)
(June 2022:
and Simberi $27,368,000
$21,889,000) were not booked.
(tax effected)
52 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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
Consumables
Capitalised convertible notes costs
Unrealised foreign exchange gains
Property, plant & equipment
Other
Total
Tax effect
Net deferred tax balance
Consolidated
2023
$'000
2022
$'000
-
57,176
102,677
29,485
-
3,146
92,774
51,429
8,154
2,447
135,308
211,980
39,746
63,182
295
127
83,376
518,568
59,827
81,894
-
444
26,158
1,274
3,210
15,997
56,005
-
174,140
673,035
51,365
196,691
(11,619)
(133,509)
Comprising:
Australia – net deferred tax (liabilities)/assets
PNG – net deferred tax (liabilities)/assets
Canada – net deferred tax liabilities
Net deferred tax balance
(6,078)
(5,541)
2,129
3,747
-
(139,385)
(11,619)
(133,509)
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:
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;
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
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.
St Barbara Annual Report 2023 | 53
St Barbara Directors and Financial Report / 30 June 2023
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.
Continuing operations
Call option fair value movements(1)
Business transformation
Impairment loss on assets(2)
Expected credit loss(3)
Corporate redundancy costs(4)
Consolidated
2023
$'000
2022
$'000
-
-
(2,488)
(3,641)
(588,534)
(223,542)
(26,262)
(2,649)
-
-
(1) Call option fair value movements
The gold call options were entered into as part of the Atlantic
hedge restructure and do not qualify for hedge accounting on
the basis that sold call options do not protect against downside
risk. Therefore, movements in the fair value of the call options
are recognised in the income statement. All call options fully
matured prior to the year end with the fair value gain of
$8,039,000 (2022: realised gain of $6,371,000 with the
unrealised loss component amounting to $2,488,000).
(2) Impairment loss on assets
The impairment loss represents the write down of the carrying
value of assets relating to the Simberi and Atlantic cash
generating units (refer to Note 8).
Total significant items – pre tax
(617,445)
(229,671)
(3) Expected credit loss
Tax Effect
Tax effect of impairment loss
Tax effect of other significant items
Deferred tax assets not brought to
account(5)
138,045
8,674
64,827
1,814
(6,434)
(21,889)
Total significant items – post tax
(477,160)
(184,919)
Discontinuing operations
Consolidated
2023
$'000
2022
$'000
Profit on sale of Leonora(6)
86,733
-
Operating profit from discontinued
operations(6)
Total significant items – pre tax
23,911
110,644
134,256
134,256
Tax Effect
Tax effect of significant items
(33,193)
(40,277)
Total significant items – post tax
77,451
93,979
Represents a provision for doubtful debt for a current trade
receivable of $8,004,000 owing from a third party ore purchase
and a secured non-current loan of $18,258,000 to a third party
for which recoverability is uncertain.
(4) Corporate redundancy costs
The corporate redundancy costs relate to payments made to
the
employees
organisation restructure and cost reduction program.
for roles made redundant as part of
(5) Deferred tax assets not brought to account
Simberi deferred tax assets of $5,479,000 have not been
recognised on the basis that development of the high margin
Simberi sulphides have been deferred while remaining oxide
ore is mined. Until the sulphide project is approved, it is not
probable that Simberi will generate taxable profits based on tax
depreciation pools available. Atlantic deferred tax assets of
$955,000 have not been recognised as the Touquoy operation
will enter care and maintenance during FY2024, therefore it is
not probable that future taxable profits will be generated.
(6) Profit on sale of Leonora and Operating profit from
discontinued operations
As the Leonora operation was sold on 30 June 2023 as part of
an asset sale to Genesis Minerals, the results from the Leonora
operations and the profit on sale, are classified as results from
discontinuing operations.
Please refer to Note 23 for further details.
54 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
4
Earnings per share
Consolidated
Basic earnings per share
Basic earnings per share
From continuing operations
From discontinued operations
Total basic earnings per share
Diluted earnings per share
From continuing operations
From discontinued operations
Total diluted earnings per share
2023
Cents
(62.07)
9.49
(52.58)
(62.07)
9.49
(52.58)
2022
Cents
(34.80)
12.84
(21.96)
(34.80)
12.84
(21.96)
Reconciliation of earnings used in
calculating earnings per share
Consolidated
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.
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.
2023
$'000
2022
$'000
Performance rights
Basic and diluted earnings per share:
Loss after tax for the year for
continuing operations
Profit after tax for the year for
discontinued operations
(506,650)
(254,800)
77,451
93,979
Loss after tax for the year
(429,199)
(160,821)
Weighted average number of shares
Consolidated
2023
2022
Number
Number
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.
Weighted average of number of shares
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.
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
816,272,692
732,173,567
Treasury shares are issued shares held by the company in
trust for employee performance rights.
824,784,436
736,506,834
St Barbara Annual Report 2023 | 55
St Barbara Directors and Financial Report / 30 June 2023
5
Dividends
Consolidated
Final Dividend
2023
$'000
2022
$'000
No dividend was declared for the 30 June 2023 full year
reporting period.
Declared and paid during the year on ordinary
shares (fully-franked at 30 per cent)
No 2022 final dividend (2021: 2 cents)
Total dividends paid
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
Proposed and not recognised as a liability
(fully-franked at 30 per cent)
No 2023 final dividend declared (2022: nil)
-
-
14,165
14,165
-
-
-
-
12,525
1,640
14,165
-
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
74,607
65,528
-
(6,071)
56 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
B. Mining operations
6
Property, plant and equipment
Land and buildings
At the beginning of the year
Recognition of right-of-use assets
Transfers
Additions
Depreciation (range 3-15 years)
Sale of Leonora
Impairment write off
Disposals
Effects of movement in foreign
exchange rates
Consolidated
2023
$'000
2022
$'000
Reconciliation of depreciation and
amortisation to the consolidated
comprehensive income statement
14,590
13,515
Land and buildings
Depreciation
-
-
718
(4,005)
(4,063)
(820)
(408)
48
171
3,903
234
(3,458)
-
-
-
Plant and equipment
Other
Amortisation
Mine properties(1)
Mineral rights(1)
Total
Consolidated
2023
$'000
2022
$'000
(4,005)
(3,458)
(66,395)
(59,457)
(1,140) (1,042)
(29,160)
(6,159)
(58,494)
(37,348)
(106,859)
(159,799)
225
The above depreciation table includes right-of-use asset depreciation
(1) Refer Note 8: Mine properties and mineral rights.
At the end of the year
6,060
14,590
Plant and equipment
At the beginning of the year
332,493
330,799
Acquired right-of-use assets
Acquired fixed assets
Additions
Transfers
Disposals
Sale of Leonora
Impairment write off
Depreciation (range 3-15 years)
Effects of movement in FX rates
At the end of the year
Total(1)
-
-
23,756
594
35
315
64,196
(7,211)
(1,665)
(3,577)
(142,136)
(66,547)
(66,395)
1,084
-
-
(59,457)
7,393
81,184
332,493
87,244
347,083
(1) The above PP&E table includes right-of-use assets and associated
accumulated depreciation.
Security
In accordance with finance lease agreements, $7,497,000 of
assets funded under these are held as security (Refer to note
13).
Depreciation attributable to:
Continuing operations
Discontinued operations
Capital commitments
Purchase orders raised for contracted
capital expenditure
(47,917)
(58,942)
(86,252)
(73,547)
(106,859)
(159,799)
Consolidated
2023
$’000
2022
$’000
9,027
11,271
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 comprehensive 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 comprehensive income
statement when realised.
St Barbara Annual Report 2023 | 57
St Barbara Directors and Financial Report / 30 June 2023
Plant, property and equipment
6
(continued)
Right-of-use assets (leases)
This note provides information for right-of-use of assets where
the group is a lessee
Right-of-use assets
Land and buildings
Consolidated
2023
$'000
2022
$'000
At the beginning of the year
3,330
3,924
Additions
Depreciation (range 1-10 years)
Disposals
At the end of the year
-
(663)
(408)
2,259
171
(765)
-
3,330
Plant and equipment
At the beginning of the year
Acquired right-of-use assets
Additions
Sale of Leonora
Depreciation (range 1-10 years)
At the end of the year
Total
Right-of-use asset lease liabilities
Current
Non-current
Total
4,244
-
-
(1,270)
(2,089)
885
6,337
35
726
-
(2,854)
4,244
3,144
7,574
Consolidated
2023
$'000
948
2,990
3,938
2022
$'000
3,489
5,048
8,537
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 1 to 10 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.
Accounting judgements and estimates
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:
fixed payments, less any lease incentives receivable
the exercise price of a purchase option if the Group is
reasonably certain to exercise that option, and
payments of penalties for terminating the lease, if the lease
term reflects the Group exercising that option.
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.
Payments associated with short-term leases of equipment and
vehicles and all leases of low-value assets are recognised on
a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or
less without a purchase option.
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.
terms are negotiated on
Lease
individual operational
requirements and contain a wide range of different terms and
conditions. The
impose any
covenants other than the security interests in the leased assets
that are held by the lessor. Leased assets are not used as
security for borrowing purposes.
lease agreements do not
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.
58 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
7
Deferred mining costs
Consolidated
2023
$'000
2022
$'000
Current
Deferred operating mine development
149
3,923
Non-current
Deferred operating mine development
1,699
26,604
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.
Underground operations
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.
The Group has no deferred mining costs associated with
underground operations at 30 June 2023 (2022: $3,663,000).
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 $1,848,000 deferred waste costs associated
with open pit operations at 30 June 2023 (2022: $26,864,000).
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
consolidated
costs
comprehensive income statement. Underground mining costs
in the period are deferred based on the metres developed for a
particular level.
underground
the
in
St Barbara Annual Report 2023 | 59
St Barbara Directors and Financial Report / 30 June 2023
8
Mine properties and mineral rights
Mine properties
At beginning of the year
Direct expenditure
Rehabilitation asset(1)
Sale of Leonora
Amortisation for the year
Impairment write off
Effects of movements in FX rates
At end of the year
Consolidated
2023
$'000
2022
$'000
180,676
206,189
53,889
80,279
(207,800)
48,774
(3,929)
-
(29,160)
(58,494)
(77,482)
(13,131)
(402)
1,267
-
180,676
(1) Rehabilitation asset generated as a result of an increase to the provision at
Simberi, Leonora and Atlantic (refer Note 10).
.
Mineral rights
At the beginning of the year
Acquired mineral rights
Amortisation
Sale of Leonora
Impairment write off
Effects of movements in FX rates
At the end of the year
Consolidated
2023
$'000
2022
$'000
525,031
569,230
-
155,398
(6,159)
(37,348)
(147,336)
-
(293,135)
(187,328)
(10,448)
25,079
67,953
525,031
60 | St Barbara Annual Report 2023
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
the commencement of production, such
a mine, after
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
life of mine production. These
anticipated
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 comprehensive 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,
Simberi and Leonora operations.
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 comprehensive income
statement and asset carrying values.
St Barbara Directors and Financial Report / 30 June 2023
Mine properties and mineral rights
8
(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 comprehensive 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.
At 30 June 2023 the identified CGUs of the Group are Simberi
and Atlantic. 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. 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 2023.
Assumptions
2024
2025
2026
2027
Long
Term
Gold
(US$ per ounce)
CAD/USD
exchange rate
Discount rate
(%)
$1,800 $1,755 $1,675
$1,625 $1,575
$0.76
$0.78
$0.79
$0.79
$0.79
Atlantic CGU: 7.5%
Simberi CGU: 9.9%
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 CGU a 0.5% risk premium was applied in respect to
project risk associated with Nova Scotia permitting. With
respect to the Simberi CGU, a country risk premium of 3.5%
was applied. The Group uses a capital asset pricing model to
estimate its 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 which are underpinned by the Group’s
reserves and resources. 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 of
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.
impact of climate related risk, both physical and
The
transitional, on useful lives of assets has been considered.
St Barbara Annual Report 2023 | 61
St Barbara Directors and Financial Report / 30 June 2023
Mine properties and mineral rights
8
(continued)
In total approximately 93% of the Atlantic Fair Value is
attributable to unmined resources not included in production in
the LoM model and exploration value. Exploration Fair Value
is measured using established exploration valuation
techniques supported by market multiples.
Impact of impairment assessment
Following an assessment of the recoverable amount of the
Group’s CGUs as at 31 December 2022, it was determined that
the Simberi carrying value exceeded its recoverable amount of
$49,960,000, and Atlantic exceeded its recoverable amount of
$150,095,000. Following changes
to permitting and
rehabilitation estimates at Atlantic (as discussed below) it has
been determined that at 30 June 2023 Atlantic CGU exceeded
its recoverable amount of $62,337,000.
Cash-Generating
Unit
Pre-Tax
$’000
Tax
$’000
Post-Tax
$’000
Booked at 31 December 2022
Atlantic
Simberi
420,028
(121,808)
298,220
74,174
-
74,174
Booked at 30 June 2023
Atlantic
Total
94,332
(16,237)
78,095
588,534
(138,045)
450,489
The impairment and asset write downs have been allocated to
the following class of assets:
Asset Class
Write down of assets
Inventories (current)
Inventories (non-current)
Atlantic Gold
Simberi
$’000
$’000
6,655
26,170
4,449
-
Impairment
Inventories (current)
-
Property, plant and equipment
60,252
Deferred mining costs (non
current)
Mine properties
Exploration and evaluation
Mineral rights
Total pre-tax impairment and
asset write downs
-
54,368
74,389
292,526
514,360
3,677
7,115
32,656
23,114
2,554
609
74,174
The drivers of the impairment at Atlantic at 31 December 2022
are:
Changed valuation methodology for Beaver Dam and
Cochrane Hill. Both deposits were based on discounted cash
flows at 30 June 2022, but a resource multiple was applied at
31 December 2022. For Beaver Dam, this is based on the
uncertainty created from delays to permitting to allow for
further consultations with First Nations and Department of
Fisheries and Oceans. A similar approach has been adopted
for Cochrane Hill given permitting will recommence under the
new Impact Assessment Act 2019.
62 | St Barbara Annual Report 2023
Allowance for escalations in operating and capital cost
estimates associated with the development and operation of
future projects.
Value of exploration land has been assessed using latest
market multiples.
The driver of the impairment at Simberi at 31 December 2022
relates to the announcement that the development for the
Simberi sulphides was deferred. As the sulphide project would
produce a higher margin feed compared with current oxide
material, the discounted impact of the sulphide cash flows has
reduced accordingly.
The drivers of the impairment at Atlantic at 30 June 2023 are:
As announced in July 2023, due to the inability to obtain
permits for in-pit tailings deposition within a reasonable time
the operations will move to care and maintenance by the end
of September 2023, resulting in the write down of ore
stockpiles that will be unable to be processed past this date.
Additionally, cash flows are impacted by the break in
production which will now occur from completing processing
stockpiles at Touquoy to first ore from Fifteen Mile Stream.
Care and maintenance costs at Touquoy have also been
added for this time period.
Increase in the estimate for rehabilitation at Touquoy driven
by cost inflation associated with the use of third parties to
perform the required earthworks on the tailing facility and
waste dumps.
Both the Atlantic and Simberi recoverable values have been
impacted by an increase in discount rate which reflected
increases in government interest rates during the year.
Unfavourable changes to key assumptions would further
reduce the Fair Value.
Sensitivity analysis
The Atlantic and Simberi CGU Fair Values have a high
sensitivity to the gold price, change in discount rate, timing for
commencement of mining at the future mines, and estimated
future capital costs. Changes in key assumptions will impact
the Fair Value of these CGUs. 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
Atlantic Gold
($’000)
Simberi
($’000)
US$50 per ounce change in gold price
18,484
46,847
0.5% change in discount rate
1 year delay in permitting Fifteen Mile Stream
2,611
6,445
8,342
-
10% change in growth capital estimates
11,630
23,029
$5 per ounce change in resource market
multiple
6,374
11,235
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 impacts. Action is taken by management
to respond to adverse change that may mitigate the impact of
the change.
St Barbara Directors and Financial Report / 30 June 2023
Mine properties and mineral rights
8
(continued)
Accounting judgements and estimates - Impairment
to variability
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
projects expected to be cash generating mines in the future.
in key
The CGU valuations are subject
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 2023, the Group’s net assets exceeded the market
capitalisation of St Barbara Limited. As a result, a review was
conducted to determine if there had been any material changes
in the CGUs since the last assessment was completed at 31
December 2022. As the Leonora CGU was sold on 30 June
2023, there was no review performed to assess its carrying
value.
At 31 December 2022 a pre-tax impairment charge of
$420,028,000 was booked for the Atlantic CGU driven by the
deferral of permitting Beaver Dam, and estimated start date of
Fifteen Mile Stream to FY26, revised the approach to valuing
Beaver Dam and Cochrane Hill, and revised value associated
with exploration tenements.
A further impairment was booked for the Atlantic CGU at 30
June 2023 due to the inability to obtain permits for in-pit tailings
deposition which will result in Touquoy entering care and
maintenance at the end of September 2023. Additionally, the
increase in estimated rehabilitation provision as submitted to
the Nova Scotian regulators in May 2023 impacted the carrying
value of Atlantic.
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:
Asset carrying values may be impacted due to changes in
estimated future cash flows.
The recognition of deferred tax assets.
Depreciation and amortisation charged in the consolidated
comprehensive income statement may change where such
charges are calculated using the units of production basis.
Underground capital development deferred
the
consolidated balance sheet or charged in the consolidated
comprehensive income statement may change due to a
revision in the development amortisation rates.
in
At 31 December 2022 a pre tax impairment charge of
$74,174,000 was booked for the Simberi CGU driven by the
deferral of the higher margin sulphide project.
restoration and environmental
Decommissioning,
provisions may change where changes in estimated reserves
affect expectations about the timing or cost of these activities.
site
The assessment performed at 30 June 2023 determined that
there was no further impairment required of the Simberi CGU
following the impairment booked at 31 December 2022.
St Barbara Annual Report 2023 | 63
St Barbara Directors and Financial Report / 30 June 2023
9
Exploration and evaluation
Non-current
At beginning of the year
Additions
Transfers
Impairment write off
Sale of Leonora
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
2023
$'000
2022
$'000
164,536
153,943
11,764
28,965
(594)
-
(76,943)
(23,083)
(40,378)
-
(775)
4,711
57,610
164,536
Consolidated
2023
$’000
2022
$’000
2,957
9,553
64 | St Barbara Annual Report 2023
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 comprehensive income statement.
St Barbara Directors and Financial Report / 30 June 2023
10
Rehabilitation provision
Consolidated
2023
$'000
2022
$'000
Current
Provision for rehabilitation
3,771
268
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.
124,189
127,960
74,753
75,021
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
Change in discount rate(1)
Unwinding of discount
Provision used during the year
Sale of Leonora
Increase in provisions(2)
Effects of movements in FX rates
75,021
-
(1,962)
1,065
-
(28,838)
81,565
1,109
69,861
5,741
(7,587)
-
(100)
-
3,445
3,661
Balance at end of year
127,960
75,021
(1) Represents an increase in real discount rate applied to the rehabilitation
provision at all operations. This increase was reflective of the increase in the long
term government bond rates.
(2) Increase in provision of $53,864,000 relates to Atlantic Operations due to the
updated Reclamation Plan and Reclamation Security Estimate for the Touquoy
Mine. The remaining increases related to cost inflation associated with the
Leonora operations (prior to being sold) and the Simberi operation.
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
topsoiling and
includes
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 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, physical impacts of climate
change 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 2023 | 65
St Barbara Directors and Financial Report / 30 June 2023
C. Capital and risk
11
Working capital
Trade and other receivables
Consolidated
Current
Trade receivables
Other receivables(1)
Restricted cash
Prepayments
Total
2023
$'000
2022
$'000
1,684
36,392
46,907
2,229
87,212
956
19,216
-
6,694
26,866
(1) Consists mainly of the working capital receivable for the Sale of Leonora 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
Total current
Non-current
Ore stockpiles
Total non-current
Total
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost, less any provision
for doubtful debts. Trade receivables are usually due for
settlement no more than 30 days from the date of recognition.
Restricted cash represents cash placed on deposit in the form
of letters of credit for the reclamation security bond at Atlantic
Operations. As this cash is restricted from use, it is disclosed
as part of trade and other receivables.
Collectability of trade and loan 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.
-
-
16,780
16,780
The Group has raised an expected credit loss provision against
a loan receivable through the consolidated comprehensive
income statement. Refer to Note 3 for more details.
Consolidated
2023
$'000
50,409
4,274
14,978
11,325
80,986
2022
$'000
67,290
13,937
38,710
6,237
126,174
-
-
42,297
42,297
80,986
168,471
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
Trade and other payables
Consolidated
Current
Trade payables
Other payables
Total
66 | St Barbara Annual Report 2023
2023
$'000
64,974
1,203
66,177
2022
$'000
77,269
1,324
78,593
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 2023
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
and advises
function, Executive
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 2023
30 June 2022
AUD/USD
AUD/PGK
AUD/CAD
0.6668
2.3690
0.8826
0.6904
2.3685
0.8887
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
Sensitivity analysis:
15,099
336
(7,301)
(4,961)
3,360
5
(7,860)
34,600
47,961
(7,468)
(539)
5,341
465
(9,798)
(6,357)
20,410
138
(2,214)
30,110
2,877
(12,676)
(81,079)
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
2023
$'000
(317)
317
(7,455)
2022
$'000
1,426
(1,426)
6,618
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.
7,455
(6,618)
Significant assumptions used in the foreign currency exposure
sensitivity analysis above include:
Reasonably possible movements in foreign exchange rates.
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 2023 | 67
St Barbara Directors and Financial Report / 30 June 2023
Financial risk management (continued)
12
The net exposure at the reporting date is representative of
what the Group is expected to be exposed to in the next 12
months.
The sensitivity analysis only includes the impact on the
balance of financial assets and financial liabilities at the
reporting date.
(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.
(c) Interest rate exposures
Credit risks related to receivables
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.
(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
2023
$’000
2022
$’000
Total shareholders’ funds
393,452
1,108,665
Borrowings
Cash and cash equivalents(1)
Total capital
(12,875)
(171,638)
12,875
98,512
393,452
1,035,539
(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.
In October 2021, the syndicated facility term was extended to
July 2025. This facility was repaid at 30 June 2023, closing out
both the AUD and CAD tranches.
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 comprehensive income statement or other
comprehensive income, and assets measured at amortised
cost. The classification depends on the purpose for which 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.
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.
The Group’s most significant customer accounts for $451,000
of the trade receivables carrying amount at 30 June 2023
(2022: $161,000), representing receivables owing from gold
sales. 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 2023
were past due.
Credit risks related to deposits and derivatives
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.
in accordance with
transactions are only made with approved
Derivative
counterparties
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.
(f) Cash flow hedges
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
$18,161,000.
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.
Call option contracts from Atlantic outstanding at 30 June 2022
were delivered from July 2022 to January 2023 at a strike price
of C$2,050 per ounce. Forward contracts from Leonora were
delivered from April 2023 to June 2023 at a strike price of
A$2,863 per ounce. The Atlantic call options did not qualify for
hedge accounting as they did not protect against gold price risk.
All gold contracts were closed out during the year.
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 2023, the Group did not hold any gold forwards to
hedge against the risk of negative movements in the gold price,
however this is continually reviewed by the Board as part of the
risk management framework.
68 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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.
Fixed Interest Maturing in 2023
Financial assets
Cash and cash equivalents
Receivables
Restricted cash
Genesis Minerals shares held for
capital return(1)
Financial assets(1)
Weighted average interest rate
Financial liabilities
Trade and other payables
Capital return payable
Right-of-use-asset lease liabilities
Finance lease liabilities
Other
Floating
Interest rate
$’000
247,037
-
-
-
-
1 year or
less
$’000
-
-
46,907
-
-
247,037
4.09%
46,907
4.87%
-
-
-
-
-
-
-
-
948
1,908
1,497
4,353
4.66%
42,554
1 to 10
years
$’000
Non-
interest
bearing
$’000
Total
$’000
Fair value
$’000
-
-
-
-
-
-
-
-
-
2,990
5,589
-
8,579
3.78%
(8,579)
-
247,037
247,037
38,076
-
38,076
46,907
38,076
46,907
267,525
267,525
267,525
20,495
20,495
20,495
326,096
620,040
620,040
n/a
n/a
n/a
66,177
267,525
-
-
-
66,177
267,525
3,938
7,497
1,497
66,177
267,525
3,938
7,497
1,497
333,702
346,634
346,634
n/a
n/a
n/a
(7,606)
273,406
273,406
Weighted average interest rate
Net financial assets/(liabilities)
n/a
247,037
(1) Fair value is determined based on Level 1 inputs as the balance represents investments in listed securities.
St Barbara Annual Report 2023 | 69
St Barbara Directors and Financial Report / 30 June 2023
Fixed Interest Maturing in 2022
Financial assets
Cash and cash equivalents
Receivables
Financial assets(1)
Weighted average interest rate
Financial liabilities
Trade and other payables
Right-of-use asset lease liabilities
Finance lease liabilities
Syndicated facility
Derivative financial liabilities
Other
Floating
Interest rate
$’000
98,512
-
-
98,512
0.78%
-
-
-
-
-
-
-
Weighted average interest rate
n/a
1 year or less
$’000
1 to 10
years
$’000
Non- interest
bearing
$’000
-
-
-
-
n/a
-
3,489
7,704
-
-
4,004
15,197
3.39%
-
16,780
-
16,780
8.50%
-
20,172
33,980
54,152
n/a
-
78,593
-
-
-
8,154
-
5,048
10,923
140,083
-
1,274
157,328
3.74%
Total
$’000
98,512
36,952
33,980
Fair value
$’000
98,512
36,952
33,980
169,444
169,444
n/a
n/a
78,593
8,537
18,627
78,593
8,537
18,627
140,083
140,437
8,154
5,278
8,154
5,278
86,747
259,272
259,626
n/a
n/a
n/a
(32,595)
(89,828)
(90,182)
Net financial assets/(liabilities)
(140,548)
(1) Fair value is determined based on Level 1 inputs as the balance represents investments in listed securities.
(15,197)
98,512
(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 – 2023
Trade and other payables
Right-of-use asset lease liabilities
Finance lease liabilities
Capital return payable
Other
Maturity of financial liabilities – 2022
Trade and other payables
Right-of-use asset lease liabilities
Finance lease liabilities
Syndicated facility
Call options
Other
70 | St Barbara Annual Report 2023
Less than
12 months
$‘000
Between 1
and 5 years
$‘000
Over 5
years
$‘000
Total
contractual
cash flows
$‘000
Carrying
amount
$‘000
-
819
-
-
-
66,177
66,177
4,728
8,647
3,938
7,497
267,525
267,525
1,497
1,497
-
2,817
6,078
-
-
8,895
819
348,574
346,634
-
6,019
12,758
153,526
-
1,274
-
1,311
-
-
-
-
78,593
10,350
20,979
78,593
8,537
18,627
160,253
140,083
8,154
5,278
8,154
5,278
66,177
1,092
2,569
267,525
1,497
338,860
78,593
3,020
8,221
6,727
8,154
4,004
108,719
173,577
1,311
283,607
259,272
St Barbara Directors and Financial Report / 30 June 2023
12
13
Financial risk management (continued)
Net debt
(g) Fair value estimation
Cash and cash equivalents
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
The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Group
amounts of cash and which are subject to an insignificant risk
approximates carrying value. The fair value of other monetary financial assets and financial liabilities is based upon market prices.
of changes in value.
Cash at bank and on hand
Consolidated
247,037
98,512
$'000
$'000
2023
2022
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement, or for disclosure
purposes.
Cash at bank and on hand
Cash at bank at 30 June 2023 was invested “at call” earning
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and securities) is
interest at an average rate of 4.09% per annum (2022: 0.78%
based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the
% per annum).
current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
2023
Current
Consolidated
Interest bearing liabilities
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
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
market conditions existing at each balance date.
measured at amortised cost. Any difference between the
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values.
proceeds (net of transaction costs) and the redemption amount
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current
is recognised in the consolidated comprehensive income
market interest rate that is available to the Group for similar financial instruments.
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 capitalised
borrowing costs and amortised on a straight line basis over the
term of the facility.
Right-of-use asset lease liabilities
Fixed Interest Maturing in 2023
Capitalised borrowing costs
Finance leases
Secured
1,908
4,004
3,489
7,704
Other
$'000
$'000
2022
(57)
-
948
Floating
Interest rate
$’000
1,497
4,296
15,197
1 year or
less
$’000
1 to 10
years
$’000
Total
$’000
Fair value
$’000
Non-
interest
bearing
$’000
Total current
Financial assets
Cash and cash equivalents
247,037
Receivables
Non-current
Restricted cash
Secured
Finance leases
Genesis Minerals shares held for
capital return(1)
Syndicated facility
Financial assets(1)
Capitalised borrowing costs
Right-of-use asset lease liabilities
Weighted average interest rate
Other
Total non-current
Financial liabilities
Total interest-bearing liabilities
Trade and other payables
Capital return payable
-
-
5,589
-
10,923
-
-
140,083
-
(887)
247,037
2,990
5,048
8,579
156,441
12,875
171,638
-
4.09%
-
1,274
4.87%
Profit before income tax includes the following specific
expenses:
Right-of-use-asset lease liabilities
-
Finance lease liabilities
Other
Weighted average interest rate
Finance Costs
Net financial assets/(liabilities)
Interest paid/payable
Consolidated
-
2023
$'000
2022
$'000
-
n/a
247,037
9,854
3,265
-
-
-
-
948
1,908
1,497
4,353
4.66%
42,554
-
-
-
On 30 June 2023, amounts drawn under the syndicated debt
-
facility of A$70,000,000 under the Australian tranche and
C$80,000,000 under the Canadian tranche were repaid in full
using cash proceeds received from the sale of the Leonora
-
assets. On this date the syndicated debt facility was also
closed.
267,525
247,037
247,037
267,525
267,525
46,907
38,076
38,076
46,907
38,076
-
-
-
-
46,907
-
Aside from finance leases for assets in Simberi, the Group does
20,495
not have any other secured debt facility at 30 June 2023.
326,096
620,040
620,040
20,495
20,495
-
-
46,907
-
-
-
2,990
5,589
-
8,579
3.78%
(8,579)
n/a
n/a
n/a
66,177
267,525
-
-
-
66,177
267,525
3,938
7,497
1,497
66,177
267,525
3,938
7,497
1,497
333,702
346,634
346,634
n/a
n/a
n/a
(7,606)
273,406
273,406
(1) Fair value is determined based on Level 1 inputs as the balance represents investments in listed securities.
Bank fees and borrowing costs
407
306
Undrawn facility fees
Finance lease interest
Provisions: unwinding of discount
1,367
841
1,065
1,742
706
-
13,534
6,019
St Barbara Annual Report 2023 | 71
St Barbara Directors and Financial Report / 30 June 2023
13
Net debt (continued)
14
Contributed equity
Reconciliation of (loss)/profit from ordinary activities
after income tax to net cash flows from operating
activities
Consolidated
2023
$'000
2022
$'000
Loss after tax for the year
(429,199)
(160,821)
Depreciation and amortisation
Impairment loss on assets
Expected credit loss
Pre-tax profit on sale of Leonora
Leonora sale transaction costs
106,859
159,799
588,534
223,542
26,308
(86,733)
(13,435)
-
-
-
Net derivative movement
(8,039)
(6,371)
Difference between income tax expenses
and tax payments
(115,766)
(62,319)
Stamp duty
Unrealised/realised foreign exchange profit
Equity settled share-based payments
Unwinding of rehabilitation provision
Change in operating assets and liabilities
(7,067)
(4,484)
2,170
1,065
-
(1,829)
1,123
-
Receivables and prepayments
(9,752)
867
Inventories
Other assets
22,075
(41,764)
(8,652)
(19,766)
Trade creditors and payables
Provisions and other liabilities
(6,867)
(5,117)
Net cash flows from operating activities
51,900
949
(5,754)
87,656
Details
Number of
shares
$'000
Opening balance 1 July 2022
815,734,768
1,592,576
Vested performance rights
1,106,877
712
Capital Return - In specie distribution
-
(267,525)
Closing balance 30 June 2023
816,841,645
1,325,763
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.
Capital Return
Following the sale of Leonora Assets, St Barbara has
completed an in-specie distribution of all 205 million Genesis
shares received as part consideration to eligible St Barbara
shareholders in the form of a capital return in July 2023. As the
capital return was approved by shareholders and declared prior
or at 30 June 2023 a liability for the amount payable of
$267,525,000 has been recognised with the reduction of
contributed equity. The Genesis Minerals shares held for
capital return and the capital return payable recognised in the
Consolidated Balance Sheet as at 30 June 2023 will net off
when the capital return is completed in July 2023.
72 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
D. Business portfolio
15
Parent entity disclosures
As at, and throughout, the financial year ended 30 June 2023,
the parent company of the Group was St Barbara Limited.
Financial statements
Results of the parent entity
Loss after tax for the year
Other comprehensive loss
Parent Entity
2023
$'000
2022
$'000
(420,518)
(299,482)
(13,446)
(25,555)
Total comprehensive income for the year
(433,964)
(325,037)
Other comprehensive income is set out in the Consolidated
comprehensive income statement.
Financial position of the parent entity
Current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity
comprising:
Share capital
Reserves
Dividend payments
Accumulated losses
Total equity
2023
$'000
2022
$'000
451,731
89,101
431,157
845,908
335,626
73,461
432,348
159,420
1,325,763
1,592,576
16,260
17,327
-
(14,165)
(1,343,214)
(909,250)
(1,191)
686,488
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
$6,950,000
interest of
(2022: $7,863,000), and paid
$1,575,000 (2022: $1,238,000) to entities in the wholly-owned
group.
Net loans to the Company amount to a net receivable of
$164,462,000 (2022: net receivable $22,606,000).
Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have
been eliminated on consolidation.
Contractual commitments
St Barbara Limited had contractual commitments
for
exploration and capital expenditure totalling $1,360,000. These
commitments are not recognised as liabilities as the relevant
assets have not yet been received.
Financial assets and fair value of
16
financial assets
Consolidated
2023
$'000
2022
$'000
Current
Genesis Minerals shares held for capital
return
267,525
-
Non-current
Australian listed shares and equity
20,495
33,980
At the 30 June 2023 reporting date, the Group’s current and
non-current financial assets of $288,020,000 (30 June 2022:
$33,980,000) 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:
Peel Mining Limited (PEX)
Catalyst Metals Limited (CYL)
Kin Mining NL (KIN)
Genesis Minerals Limited (GMD)
The Group recognised Level 1, 2 and 3 financial assets on a
recurring fair value basis as at 30 June 2023 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.
St Barbara Annual Report 2023 | 73
St Barbara Directors and Financial Report / 30 June 2023
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 2022 and 30 June 2023.
Country of
Incorporation
Parent entity
St Barbara Limited
Subsidiaries of St Barbara Limited
Phoenician Metals Limited(1)
Bardoc Gold Pty Ltd(2)
Subsidiaries of Phoenician Metals Limited(1)
Nord Pacific Limited(3)
Subsidiaries of Bardoc Gold Pty Ltd(2)
Excelsior Gold Pty Ltd
Spitfire Global Pty Ltd
Starpart Holdings Pty Ltd
Admiral Gold Pty Ltd
Subsidiaries of Excelsior Gold Pty Ltd(2)
GPM Resources Pty Ltd
Aphrodite Gold Pty Ltd
Subsidiaries of Nord Pacific Limited(4)
Nord Australex Nominees (PNG) Ltd
Simberi Gold Company Limited
Atlantic Mining NS Inc.
Australia
Australia
Australia
Canada
Australia
Australia
Australia
Australia
Australia
Australia
PNG
PNG
Canada
(1) On 7 March 2023, Allied Gold Pty Ltd changed its name to
Phoenician Metals Limited and converted to a public company.
(2) On 30 June 2023, the Group sold Bardoc Gold Pty Ltd and its
subsidiaries as part of the Leonora Asset Sale.
(3) On 30 June 2023, the Group dissolved Nord Pacific Limited.
(4) On 30 June 2023, the Company transferred all of its shares in
Atlantic Mining NS Inc, Simberi Gold Company Limited and Nord
Australex Nominees (PNG) Ltd to Phoenician Metals Limited and
dissolved Nord Pacific Limited.
74 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
E. Remunerating our people
Employee benefit expenses and other
18
provisions
Expenses
Consolidated
Employee related expenses
Wages and salaries
Retirement benefit obligations
Equity settled share-based payments
2023
$'000
2022
$'000
106,506
105,404
10,757
2,170
10,101
1,123
119,433
116,628
Key management personnel
Consolidated
Short term employee benefits
Post-employment benefits
Leave
Share-based payments
2023
$'000
3,425
91
139
466
2022
$'000
3,298
96
185
962
4,121
4,541
Other provisions
Consolidated
Current
Employee benefits – annual leave
Employee benefits – long service leave
Other provisions
Non-current
Employee benefits - long service leave
2023
$'000
2,069
399
7,660
2022
$'000
5,546
2,469
6,678
10,128
14,693
1,007
1,007
2,189
2,189
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 Annual Report 2023 | 75
St Barbara Directors and Financial Report / 30 June 2023
19
Share-based payments
Employee Performance Rights
During the year ended 30 June 2023, there was no amount transferred as a gain for performance rights that expired during the year
(2022: $nil). Accounting standards preclude the reversal through the consolidated comprehensive 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:
Granted
during the
year
Number
Vested during
the year
Number
Balance at
end of the
year
Number
Exercisable
at end of the
year
Number
Consolidated and parent entity 2023
Grant Date
Expiry Date
Issue price
28 Oct 2020
30 Sep 2023
24 Jul 2020
30 Sep 2023
22 Jul 2021
30 Jun 2024
26 Jul 2021
30 Jun 2024
27 Oct 2021
30 Jun 2024
22 Jul 2022
30 Jun 2025
22 Jul 2022
30 Jun 2025
22 Jul 2022
30 Jun 2025
Total
Consolidated and parent entity 2022
27 Nov 2019
30 Jun 2022
03 Feb 2020
30 Jun 2022
28 Oct 2020
30 Jun 2022
28 Oct 2020
30 Sep 2023
24 Jul 2020
30 Sep 2023
02 Nov 2020
30 Sep 2023
22 Jul 2021
30 Jun 2024
26 Jul 2021
30 Jun 2024
27 Oct 2021
30 Jun 2024
$3.15
$3.15
$1.77
$1.77
$1.77
$0.94
$0.94
$0.94
$2.91
$2.91
$2.91
$3.15
$3.15
$3.15
$1.77
$1.77
$1.77
Balance at
start of the
year
Number
238,095
918,861
2,576,311
176,271
423,729
-
-
-
-
-
-
-
-
2,183,603
1,811,004
1,573,164
1,049,787
26,355
107,388
238,095
1,277,608
123,809
-
-
-
-
-
-
-
-
-
2,899,564
176,271
423,729
Expired
during the
year
Number
-
(121,991)
238,095
796,870
(330,144)
2,246,167
-
-
176,271
423,729
(429,221)
1,754,382
(364,823)
1,446,181
-
1,573,164
-
-
-
238,095
918,861
-
(107,388)
-
(358,747)
(123,809)
(323,253)
2,576,311
-
-
176,271
423,729
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(915,809)
(133,978)
(26,355)
-
4,333,267
5,567,771
-
(1,246,179)
8,654,859
Total
2,823,042
3,499,564
(942,164)
(1,047,175)
4,333,267
76 | St Barbara Annual Report 2023
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
St Barbara Directors and Financial Report / 30 June 2023
19
Share-based payments (continued)
F. Further disclosures
The weighted average
life of
performance rights outstanding at the end of the year was 2.4
years (2022: 1.7 years). Conditions associated with rights
granted during the year ended 30 June 2023 included:
remaining contractual
Rights are granted for no consideration. The vesting of rights
granted in 2023 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.
Performance rights do not have an exercise price.
Any performance right that does not vest will lapse.
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.
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 $3,071,000. This outcome was based on the likelihood of
the market based conditions being met as at the date the rights
vest.
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
2023
$
2022
$
Performance rights issued under
performance rights plan
2,170,000
1,123,000
Accounting judgements and estimates
The Group measures the cost of equity settled transactions
with employees (performance rights) by reference to the fair
value of the equity instruments at the date at which they are
granted.
The Group has fair valued the performance rights with market
conditions using the hybrid trinomial option pricing model with
relative TSR hurdles and secondly the absolute TSR hurdle
component by using a Black Scholes model with a single share
price target.
The performance rights with non-market conditions have been
valued at the spot price at the grant date adjusted for the net
present value of dividends forgone with overall amount also
reflecting the number of rights that are expected to vest.
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
2023
2022
$
$
597,517
440,641
29,124
26,966
PricewaterhouseCoopers Australia audit
and review of financial reports
PricewaterhouseCoopers Papua New
Guinea audit and review of financial
reports
Other assurance related services(1)
472,000
42,937
Tax compliance services
-
13,400
Total remuneration for audit and non-
audit related services
1,098,641
523,944
(1) Related to financial due diligence in connection with acquisitions and divestitures. Refer to
Non-audit services, page 42, for the review process of non-audit services to ensure auditor
independence is maintained.
Events occurring after the balance sheet
21
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.
Following the sale of Leonora Assets, St Barbara completed an
in-specie distribution of 205 million Genesis shares received as
part consideration to eligible St Barbara shareholders in the
form of a capital return in July 2023. As the capital return was
approved by shareholders and declared prior or at 30 June
2023 a liability for the amount payable of $267,525,000 has
been recognised with the reduction of contributed equity. The
Genesis Minerals shares held for capital return and the capital
return payable recognised in the Consolidate Balance Sheet as
at 30 June 2023 were netted off when the capital return was
completed in July 2023.
St Barbara and Linden Gold Alliance Limited (Linden) have
agreed the wind down and settlement of the secured Second
Fortune debt facility. St Barbara received the first tranche of
14,056,250 shares in Linden on 14 August 2023.
22
Contingencies
As a result of routine and regular tax reviews and audits by tax
authorities in each jurisdiction, the Group anticipates that
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 tax authorities.
St Barbara Annual Report 2023 | 77
St Barbara Directors and Financial Report / 30 June 2023
23
Discontinued operations
(a) Description
On 17 April 2023 the Group entered into an agreement with
Genesis Minerals Limited in respect of the sale of the Leonora
Assets. The disposal was completed on 30 June 2023, on
which date control passed to the acquirer and is reported in the
current period as a discontinued operation. Financial
information relating to the discounted operation for the period
to the date of disposal is set out below:
(b) Financial performance and cashflow information
The results of the discontinued operations included in the
consolidated comprehensive income statement are set out
below. The comparative profit and cash
from
flows
discontinued operations are shown in the tables below:
Profit for the period from
discontinued operations
Revenue
Expenses
Profit before tax
Consolidated
2023
$’000
2022
$’000
373,570
479,073
(349,659)
(344,817)
23,911
134,256
Attributable income tax expense at 30%
(7,173)
(40,277)
Operating profit after tax
16,738
93,979
c) Details of the sale of Leonora Assets
Consideration received
Cash
Consideration shares
Working capital(1)
Total consideration
Carrying amount of net assets sold
Transaction costs
Gain on sale before income tax
Income tax expense on gain at 30%
Gain on sale after income tax
Consolidated
2023
$'000
370,000
267,525
637,525
15,724
653,249
(553,082)
(13,434)
86,733
(26,020)
60,713
(1) The consideration received includes an adjustment for the movement in agreed upon
working capital and capital expenditure accounts which have an impact on the total cash
consideration received by St Barbara at the completion of the Leonora asset sale. This
balance reflects the final working capital and capital expenditure position compared with the
agreed upon target.
The gain on disposal is included in the profit for the year from
discontinued operations.
86,733
(26,020)
-
-
The carrying amount of assets and liabilities as at
the date of sale were:
Current asset
77,451
93,979
Deferred mine development
Gain on disposal of operations (see (c)
below)
Attributable income tax expense at 30%
Profit/(Loss) for the year from
discontinued operations (attributable
to owners of the company)
Cash flows from discontinued
operations
Consolidated
2023
$’000
2022
$’000
Inventories
Other assets
Non current assets
Property plant and equipment
Mine properties
Exploration and evaluation
Mineral rights
Deferred tax asset
Net cash inflows from operating activities
96,419
228,826
Net cash outflows from investing
activities
(52,812)
(61,022)
Net cash inflows
43,607
167,804
Current liabilities
Other liabilities
Non - Current liabilities
Provision for rehabilitation
Net asset/liability disposed of
78 | St Barbara Annual Report 2023
2023
$'000
2,367
24,457
2,326
146,199
207,800
40,378
147,336
18,747
(7,690)
(28,838)
553,082
St Barbara Directors and Financial Report / 30 June 2023
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:
Financial assets are measured at fair value;
Share based payment arrangements are measured at fair
value;
Derivative financial liabilities are measured at fair value;
Rehabilitation provision is measured at net present value;
Long service leave provision is measured at net present
value.
Comparative figures have been adjusted to conform to the
presentation of the financial statements and notes for the
to enhance
current
comparability.
financial year, where
required,
Principles of consolidation - Subsidiaries
The consolidated financial statements incorporate the assets
and liabilities of all subsidiaries of St Barbara Limited as at
30 June 2023 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
dollars (AUD). The
the Simberi
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 comprehensive 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 comprehensive
income statement as part of the fair value gain or loss.
Translation differences on non-monetary financial assets, such
as equities classified as 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.
Critical accounting judgement and estimates
in
The preparation of consolidated financial statements
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
report are consistent with
2023 consolidated
Australian Accounting Standards. All new and amended
Australian Accounting Standards
interpretations
mandatory as at 1 July 2022 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 2023 | 79
and management changes. In
November 2022 Mr Craig Jetson
resigned as Managing Director and
Chief Executive Officer and the
Company moved quickly to appoint
focus
on stabilising the performance from
Gwalia underground following the
announced in October 2022. We
thank Craig for his efforts particularly
through the impacts of the global
Mr Dan Lougher retired at the end of
the financial year, following the
completion of the sale of Leonora
Operations, and we thank Dan for his
leadership in the second half of the
eting revised
transaction. Mr Andrew Strelein was
appointed as Managing Director and
Ms Kerry Gleeson was appointed as
Non-Executive Chair following the
retirement of Mr Tim Netscher in April
2023. Tim served as Director and
overseeing significant changes and
challenges in that time and on
d we thank Tim for
his dedicated years of service.
General Meeting on 25 October
2023. With these changes, we will
continue to review the composition
of the Board and maintain our
commitment to best practice
St Barbara Directors and Financial Report / 30 June 2023
corporate governance
This financial year has been one of
significant change for St Barbara.
However, with a change of
leadership and a new operational
Directors’ declaration
footprint we enter the new financial
year ready to focus on delivering
positive outcomes for our people,
1
shareholders and communities.
(a)
(ii)
On behalf of the Board, the
(i)
leadership team and everyone at
St Barbara, we would like to thank
shareholders for your continued
support. To St Barbara employees
we thank you for all your hard work
2
and commitment throughout this
challenging year.
3
(b)
In the opinion of the directors of St Barbara Limited (the Company):
the consolidated financial statements and notes that are contained in pages 45 to 79 and the remuneration report
in the Directors’ report, set out on pages 20 to 41, are in accordance with the Corporations Act 2001, including:
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for
the financial year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
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 2023.
The directors draw attention to page 45 of the consolidated financial statements, which includes a statement of compliance
with International Financial Reporting Standards.
Signed in accordance with a resolution of the Directors:
Kerry Gleeson
Independent Non-Executive Chair
Andrew Strelein
Andrew Strelein
Managing Director & CEO
Managing Director and CEO
Perth
St Barbara 2023 Annual Report | III
24 August 2023
80 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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 2023 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:
●
●
●
●
●
●
the consolidated balance sheet as at 30 June 2023
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 2023 | 81
St Barbara Directors and Financial Report / 30 June 2023
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
● 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
Australia, Papua New Guinea
and Canada with a centralised
corporate accounting function
based in Australia
● Amongst other relevant
topics, we communicated the
following key audit matters to
the Audit and Risk
Committee:
−
−
−
Assessing the carrying
value of mining assets
Accounting for the cost of
rehabilitation
Accounting for the sale of
Leonora Assets
● These are further described in
the Key audit matters section
of our report.
● For the purpose of our audit
we used overall Group
materiality of $3.9 million,
which represents
approximately 1% of the
Group’s net assets.
● 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.
● We chose Group net assets
because, in our view, it is the
benchmark against which the
performance of the Group is
most commonly measured.
● We utilised a 1% threshold
based on our professional
judgement, noting it is within
the range of commonly
acceptable thresholds.
82 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
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.
Key audit matter
How our audit addressed the key audit matter
Assessing the carrying value of mining assets
(Refer to note 8)
We performed the following procedures, amongst
others, for both CGUs (unless otherwise stated):
As at 30 June 2023, the Group recognised $87 million
of Property, Plant and Equipment, $2 million of
Deferred Mining Costs, $58 million of Exploration and
Evaluation, and $68 million of Mineral Rights on the
consolidated balance sheet (together the ‘Mining
Assets’).
During the year the Group identified indicators of
impairment and therefore undertook an impairment
assessment for the Simberi and Atlantic cash
generating units (CGUs). The recoverable amounts of
the CGUs were each assessed under the fair value
less cost of disposal method, using discounted cash
flow models (the ‘Models’).
The Group recognised an impairment charge of $514
million, before tax, on its Mining Assets related to the
Atlantic Gold CGU and an impairment charge of $74
million, before tax on its Mining Assets related to the
Simberi CGU.
The impairment assessment required the Group to
make significant judgements in relation to
assumptions, including:
● Commodity prices and exchange rates
estimation;
● Discount rate;
● Production activity, operating costs and capital
requirements;
● Fair value assigned to unmined resources and
exploration; and
● Timing of regulatory approvals and permitting
the mines.
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 impairment was
required.
● Assessed whether the composition of each
CGU was consistent with our knowledge of the
Group’s operations.
● Assessed whether each CGU appropriately
included all directly attributable assets and
liabilities.
● Assessed whether the valuation methodology
applied by the Group, utilising a discounted
cash flow model to estimate the recoverable
amount of each CGU, was consistent with the
basis required by Australian Accounting
Standards.
● Assessed the Group’s judgement in relation to
the timing of regulatory approvals and
permitting of new mines in the Atlantic Gold
CGU with reference to internal and external
factors.
● Assessed whether the forecast cash flows in
the Models were appropriate by comparing:
- Short and long-term commodity pricing
data and currency exchange rate
assumptions used to current 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;
- annual forecast cash flows to annual
-
-
historical actual cash flows achieved by
each CGU for previous years to assess the
accuracy of the Group’s forecasting; and
the forecast operating costs and capital
expenditure to the most recent internal
budgets, Life of Mine plans and other
technical planning documents on a sample
basis.
● Assessed the discount rate used with
reference to external information for each
CGU, assisted by PwC valuation experts.
St Barbara Annual Report 2023 | 83
St Barbara Directors and Financial Report / 30 June 2023
Key audit matter
How our audit addressed the key audit matter
● Assessed the unmined resources against
external data, assisted by PwC valuation
experts.
● Assessed the exploration fair value against
external data, assisted by the PwC valuation
team for the Atlantic Gold CGU.
● Performed tests of the mathematical accuracy
of the Models’ relevant calculations.
● Evaluated the reasonableness of the
disclosures made in the Group’s Consolidated
Financial Statements against the requirements
of Australian Accounting Standards.
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 has obligations to dismantle, remove,
restore and rehabilitate certain items of property,
plant and equipment and areas of disturbance during
mining operations. 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.
At 30 June 2023, the consolidated balance sheet
included provisions for such obligations of $128
million. Calculating the rehabilitation obligations
requires significant estimation and judgement by the
Group. Assumptions are required to be made in
respect of matters including, changes in regulations,
price fluctuations, discount rates and changes in
timing of cash flows which are based on Life of Mine
Plans.
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.
● Obtained the Group’s calculation of the
rehabilitation provisions. We checked the
mathematical accuracy of relevant
calculations and whether the timing of the
cash flows was consistent with current 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 estimated
rehabilitation costs were appropriate by
comparing these, on a selection basis, to the
costs of other similar activities at mine sites.
Assessed the discount rates used, by
reference to long term government bond
rates, in the rehabilitation models were
appropriate.
Evaluated the reasonableness of the
disclosures made in the Group’s
Consolidated Financial Statements against
the requirements of Australian Accounting
Standards.
●
●
●
●
Accounting for the sale of Leonora Assets
(Refer to note 23)
On 17 April 2023 the Group entered into an
agreement with Genesis Minerals Limited in respect
of the sale of the Leonora Assets. The disposal was
completed on 30 June 2023, on which date control
passed to the acquirer and is reported as a
discontinued operation.
Total consideration received was $653 million and the
carrying value of net assets disposed was $553
To assess the accounting for the disposal of the
Leonora Assets we performed the following
procedures, amongst others:
●
Assessed the Group’s accounting, including
the derecognition of assets and liabilities
disposed of, against the requirements of
Australian Accounting Standards and the
Asset Sale Agreement.
84 | St Barbara Annual Report 2023
St Barbara Directors and Financial Report / 30 June 2023
Key audit matter
How our audit addressed the key audit matter
million. The gain on disposal recognised, net of
transaction costs was $87 million before tax.
This was a key audit matter given its financial
significance to the Group and accounting complexities
associated with the disposal.
●
●
Agreed the total consideration received to
supporting documentation and the Asset
Sale Agreement.
Evaluated the classification as a
discontinued operation and whether the
disclosures made in the Group’s
Consolidated Financial Statements were in
accordance with the requirements of
Australian Accounting Standards.
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 2023, but does not include the
financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other
information we obtained included the Director's Report. We expect the remaining other information to
be made available to us after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
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.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
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.
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.
St Barbara Annual Report 2023 | 85
St Barbara Directors and Financial Report / 30 June 2023
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 20 to 41 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the remuneration report of St Barbara Limited for the year ended 30 June 2023
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
Amanda Campbell
Partner
Melbourne
24 August 2023
86 | St Barbara Annual Report 2023
Ore Reserves
and Mineral
Resources
St Barbara Ore Reserves and Mineral Resources Statement
Ore Reserves and Mineral Resources
As at 31 December 2022 St Barbara’s Group Ore Reserves and Mineral Resources are estimated at:
•
Total Ore Reserves are estimated at: 106.7 Mt @ 1.9 g/t Au for 6.5 Moz of contained gold, comprising:
•
Leonora Operations
22.3 Mt @ 3.6 g/t Au for 2.6 Moz of contained gold1
• Bardoc Operations
3.6 Mt @ 3.6 g/t Au for 0.4 Moz of contained gold2
• Simberi Operations
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
• Atlantic Operations
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
•
Total Mineral Resources3 are estimated at: 264 Mt @ 1.9 g/t Au for 16.4 Moz of contained gold, comprising:
•
Leonora Operations
71.0 Mt @ 3.2 g/t Au for 7.4 Moz of contained gold4
• Bardoc Operations
53.3Mt @ 1.8 g/t Au for 3.0Moz of contained gold5
• Simberi Operations
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
• Atlantic Operations
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
Since 31 December 2021, the Company’s Ore Reserves have increased by 0.3 Moz, as a consequence of the inclusion of the
Tower Hill Open Pit Reserves (refer ASX Release 18 October, 2022 - ‘Quarterly Report Q1 September FY23’).
Since 31 December 2021, the Company’s Mineral Resources have decreased by 0.2 Moz as mining depletion and reductions due to
changes in bulk density for Gwalia Deeps and a revised resource shell at Simberi exceeded additions from Gwalia Shallows and
Harbour Lights
St Barbara updated its Annual Mineral Resources and Ore Reserves statement as at 31 December 2022 with the statement
reported to the ASX on 22 February 2023 – ‘Ore Reserves and Mineral Resources Statements as at 31 December 2022’. This
statement can be found on St Barbara’s website here Announcements – St Barbara Limited.
St Barbara completed the sale of its Leonora and Bardoc operations to Genesis Minerals Limited (“Genesis”) on 30 June 2023.
Subsequent to this sale:
•
Total Ore Reserves are estimated at: 80.8 Mt @ 1.4 g/t Au for 3.5 Moz of contained gold, comprising:
• Simberi Operations
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
• Atlantic Operations
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
•
Total Mineral Resources6 are estimated at: 140.1 Mt @ 1.3 g/t Au for 5.9 Moz of contained gold, comprising:
• Simberi Operations
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
• Atlantic Operations
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
1 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
2 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
3 Mineral Resources are reported inclusive of Ore Reserves
4 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
5 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
6 Mineral Resources are reported inclusive of Ore Reserves
88 | St Barbara Annual Report 2023
St Barbara Annual Report 2023 | XXX
St Barbara Ore Reserves and Mineral Resources Statement
Ore Reserves and Mineral Resources
Governance and internal controls
St Barbara’s Ore Reserves and Mineral Resources have been compiled by suitably qualified personnel and with oversight from the
As at 31 December 2022 St Barbara’s Group Ore Reserves and Mineral Resources are estimated at:
Company’s Mineral Resources and Ore Reserves Committee. The role of this Committee is to provide governance oversight to the
Resources and Reserves estimation systems, ensuring the quality and accuracy of the Company’s Group Resources and
Reserves. The Committee provides assurance to the Board Audit & Risk Committee on compliance with the Resources and
Reserves governance framework and systems. The Committee also ensures that Resources and Reserves comply with JORC
22.3 Mt @ 3.6 g/t Au for 2.6 Moz of contained gold1
standards and any other regulatory requirements.
Total Ore Reserves are estimated at: 106.7 Mt @ 1.9 g/t Au for 6.5 Moz of contained gold, comprising:
Leonora Operations
•
•
• Bardoc Operations
The Committee ensures proper corporate governance, allocation of suitably qualified resources and management of business risk
in relation to the estimation of Resources and Reserves. The Committee achieves this objective by exercising professional
judgement, formal annual reviews of Resource and Reserves estimates, and review of reconciliations when required.
3.6 Mt @ 3.6 g/t Au for 0.4 Moz of contained gold2
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
• Simberi Operations
St Barbara’s Ore Reserves at 31 December 2022 are summarised and compared with the 31 December 2021 statement below:
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
• Atlantic Operations
•
Total Mineral Resources3 are estimated at: 264 Mt @ 1.9 g/t Au for 16.4 Moz of contained gold, comprising:
31 December 2022 Ore Reserves
Project
•
Leonora Operations
Gwalia Deeps (WA)
• Bardoc Operations
Tower Hill (WA)
• Simberi Operations
Total Leonora Operations1
• Atlantic Operations
Aphrodite (WA)
31 December 2021 Ore Reserves
Production
Ounces
Ounces
Tonnes
(‘000)
(‘000)
(‘000)
71.0 Mt @ 3.2 g/t Au for 7.4 Moz of contained gold4
Grade
(g/t Au)
12,862
5.1
53.3Mt @ 1.8 g/t Au for 3.0Moz of contained gold5
2,121
138
-
-
-
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
12,862
2,782
5.1
3.6
2,121
322
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
Tonnes
(‘000)
Grade
(g/t Au)
12,647
9,700
22,347
2,782
5.0
1.8
3.6
3.6
Ounces
(‘000)
2,041
560
2,601
322
Since 31 December 2021, the Company’s Ore Reserves have increased by 0.3 Moz, as a consequence of the inclusion of the
Zoroastrian (WA)
Tower Hill Open Pit Reserves (refer ASX Release 18 October, 2022 - ‘Quarterly Report Q1 September FY23’).
Total Bardoc Operations2
Since 31 December 2021, the Company’s Mineral Resources have decreased by 0.2 Moz as mining depletion and reductions due to
Simberi Oxide (PNG)
changes in bulk density for Gwalia Deeps and a revised resource shell at Simberi exceeded additions from Gwalia Shallows and
Harbour Lights
Simberi Sulphide (PNG)
26,557
27,338
1,726
8,962
3,577
3,577
7,579
795
795
330
419
3.8
3.8
3.6
2.0
1.1
3.6
1.2
2.0
97
78
1,680
419
280
97
Simberi Stockpile
St Barbara updated its Annual Mineral Resources and Ore Reserves statement as at 31 December 2022 with the statement
reported to the ASX on 22 February 2023 – ‘Ore Reserves and Mineral Resources Statements as at 31 December 2022’. This
Total Simberi Operations
statement can be found on St Barbara’s website here Announcements – St Barbara Limited.
Atlantic Operations (NS)
St Barbara completed the sale of its Leonora and Bardoc operations to Genesis Minerals Limited (“Genesis”) on 30 June 2023.
Alantic Operations Stockpile (NS)
Subsequent to this sale:
34,846
40,550
42,182
36,704
2,080
1,493
6,040
5,420
710
403
1.8
1.9
0.5
1.1
1.3
1.8
0.5
1.1
44
25
90
1,449
1,991
31
80
•
Total Atlantic Operations
Grand Total
Grand Total (excluding Projects
• Simberi Operations
subsequently sold)
45,970
1.0
Total Ore Reserves are estimated at: 80.8 Mt @ 1.4 g/t Au for 3.5 Moz of contained gold, comprising:
106,740
1.9
48,222
101,365
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
1,583
6,203
80,816
84,926
3,663
261
1.3
1.0
1.9
1.4
1,529
6,540
3,520
• Atlantic Operations
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
1Note: St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023.
•
2Note: St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023.
Total Mineral Resources6 are estimated at: 140.1 Mt @ 1.3 g/t Au for 5.9 Moz of contained gold, comprising:
• Simberi Operations
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
• Atlantic Operations
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
1 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
2 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
3 Mineral Resources are reported inclusive of Ore Reserves
4 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
5 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
6 Mineral Resources are reported inclusive of Ore Reserves
St Barbara Annual Report 2023 | 89
St Barbara Annual Report 2023 | XXX
St Barbara Ore Reserves and Mineral Resources Statement
Ore Reserves and Mineral Resources
St Barbara’s Mineral Resources at 31 December 2022 are summarised and compared with the 31 December 2021 statement
below:
As at 31 December 2022 St Barbara’s Group Ore Reserves and Mineral Resources are estimated at:
•
Total Ore Reserves are estimated at: 106.7 Mt @ 1.9 g/t Au for 6.5 Moz of contained gold, comprising:
Project
•
Leonora Operations
• Bardoc Operations
Gwalia Deeps (WA)
• Simberi Operations
Gwalia Open Pit (WA)
• Atlantic Operations
Gwalia Shallows
31 December 2021 Mineral
Resources
Grade
(g/t Au)
31 December 2022 Mineral
Resources
Ounces
Grade
22.3 Mt @ 3.6 g/t Au for 2.6 Moz of contained gold1
(‘000)
(g/t Au) Ounces (‘000)
3.6 Mt @ 3.6 g/t Au for 0.4 Moz of contained gold2
Tonnes
(‘000)
Tonnes
(‘000)
25,206
5.8
4,736
24,198
5.8
4,473
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
8,439
9,014
764
2.8
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
-
3,391
-
2.2
3.5
634
386
•
Total Mineral Resources3 are estimated at: 264 Mt @ 1.9 g/t Au for 16.4 Moz of contained gold, comprising:
602
13,726
1.7
Harbour Lights (WA)
12,884
-
1.5
747
1,177
7,417
1,663
524
354
480
•
Tower Hill (WA)
Leonora Operations
Total Leonora Operations1
• Bardoc Operations
Aphrodite
• Simberi Operations
Zoroastrian
Excelsior
• Atlantic Operations
20,682
71.0 Mt @ 3.2 g/t Au for 7.4 Moz of contained gold4
20,682
1,177
1.8
1.8
7,279
71,011
67,211
3.4
53.3Mt @ 1.8 g/t Au for 3.0Moz of contained gold5
25,506
2.0
1,663
25,506
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
7,049
7,049
524
2.3
11,330
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
11,330
354
1.0
3.2
2.0
2.3
1.0
1.6
Bardoc Satellite Open Pits
Since 31 December 2021, the Company’s Ore Reserves have increased by 0.3 Moz, as a consequence of the inclusion of the
Tower Hill Open Pit Reserves (refer ASX Release 18 October, 2022 - ‘Quarterly Report Q1 September FY23’).
3,021
Total Bardoc Operations2
53,302
53,302
3,021
1.8
1.8
9,417
1.6
480
9,417
Simberi Oxide (PNG)
Since 31 December 2021, the Company’s Mineral Resources have decreased by 0.2 Moz as mining depletion and reductions due to
changes in bulk density for Gwalia Deeps and a revised resource shell at Simberi exceeded additions from Gwalia Shallows and
Harbour Lights
Simberi Sulphide (PNG)
67,524
71,400
3,434
3,575
1.6
1.6
15,575
18,600
541
650
1.1
1.1
Total Simberi Operations
90,000
1.5
4,225
83,099
1.5
3,975
Atlantic Operations (NS)
St Barbara updated its Annual Mineral Resources and Ore Reserves statement as at 31 December 2022 with the statement
reported to the ASX on 22 February 2023 – ‘Ore Reserves and Mineral Resources Statements as at 31 December 2022’. This
statement can be found on St Barbara’s website here Announcements – St Barbara Limited.
1.1
Total Atlantic Operations
57,024
57,024
58,636
58,636
1,942
1,990
1,990
1,942
1.1
1.1
1.1
16,515
Grand Total
St Barbara completed the sale of its Leonora and Bardoc operations to Genesis Minerals Limited (“Genesis”) on 30 June 2023.
Grand Total (excluding
Subsequent to this sale:
Projects subsequently sold)
264,436
140,123
269,149
148,636
16,355
6,215
5,917
1.9
1.3
1.9
1.3
•
Total Ore Reserves are estimated at: 80.8 Mt @ 1.4 g/t Au for 3.5 Moz of contained gold, comprising:
1Note: St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023.
2Note: St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023.
34.8 Mt @ 1.8 g/t Au for 2.0 Moz of contained gold
• Simberi Operations
• Atlantic Operations
46.0 Mt @ 1.0 g/t Au for 1.5 Moz of contained gold
•
Total Mineral Resources6 are estimated at: 140.1 Mt @ 1.3 g/t Au for 5.9 Moz of contained gold, comprising:
• Simberi Operations
83.1 Mt @ 1.5 g/t Au for 4.0 Moz of contained gold
• Atlantic Operations
57.0 Mt @ 1.1 g/t Au for 1.9 Moz of contained gold
1 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
2 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
3 Mineral Resources are reported inclusive of Ore Reserves
4 St Barbara’s Leonora operations were sold to Genesis with effect from 30 June 2023
5 St Barbara’s Bardoc operations were sold to Genesis with effect from 30 June 2023
6 Mineral Resources are reported inclusive of Ore Reserves
90 | St Barbara Annual Report 2023
St Barbara Annual Report 2023 | XXX
St Barbara Annual Report 2023 | XXX
d
n
a
m
a
D
r
e
v
a
e
B
&
y
o
u
q
u
o
T
r
o
f
z
o
/
8
4
9
,
1
$
C
(
l
d
o
G
c
i
t
n
a
l
t
A
d
n
a
/
)
z
o
0
0
5
1
$
S
U
,
(
i
r
e
b
m
S
i
,
)
z
o
/
0
0
0
,
2
$
A
(
n
a
i
r
t
s
a
o
r
o
Z
d
n
a
e
t
i
d
o
r
h
p
A
,
a
i
l
a
w
G
:
f
o
e
c
i
r
p
l
d
o
g
a
n
o
d
e
s
a
b
e
r
a
s
e
v
r
e
s
e
R
e
r
O
)
l
l
i
H
e
n
a
r
h
c
o
C
&
m
a
e
r
t
S
e
l
i
M
n
e
e
t
f
i
F
r
o
f
z
o
/
8
8
6
,
1
$
C
.
3
2
0
2
e
n
u
J
0
3
m
o
r
f
t
c
e
f
f
e
h
t
i
i
w
s
s
e
n
e
G
o
t
l
d
o
s
e
r
e
w
e
b
a
t
l
i
s
h
t
n
i
d
e
d
u
c
n
l
i
s
n
o
i
t
a
r
e
p
o
n
a
i
l
a
r
t
s
u
A
s
a
r
a
b
r
a
B
’
t
S
X
X
X
|
3
2
0
2
t
r
o
p
e
R
l
a
u
n
n
A
a
r
a
b
r
a
B
t
S
.
)
u
A
t
/
g
.
4
0
–
u
A
t
/
.
g
3
0
(
g
n
n
M
c
i
t
i
i
n
a
l
t
A
,
)
u
A
t
/
g
4
.
0
(
e
d
x
O
i
i
r
e
b
m
S
i
,
)
u
A
t
/
g
0
.
2
(
n
a
i
r
t
s
a
o
r
o
Z
,
)
u
A
t
/
g
9
.
1
(
e
t
i
d
o
r
h
p
A
,
)
u
A
t
/
g
0
.
4
(
a
i
l
a
w
G
s
e
d
a
r
G
f
f
o
-
t
u
C
i
.
l
a
t
e
m
d
e
n
a
t
n
o
c
d
n
a
e
d
a
r
g
,
s
e
n
n
o
t
n
e
e
w
t
e
b
s
e
c
n
e
r
e
f
f
i
d
n
o
i
t
a
m
m
u
s
t
n
e
r
a
p
p
a
n
i
t
l
u
s
e
r
y
a
m
g
n
d
n
u
o
R
i
.
s
e
v
r
e
s
e
R
e
r
O
i
f
o
e
v
s
u
c
n
l
i
d
e
t
r
o
p
e
r
e
r
a
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
(cid:3)
(cid:3)
s
e
t
o
N
.
1
.
2
.
3
.
4
.
5
St Barbara Annual Report 2023 | 91
1
4
0
,
2
s
e
c
n
u
O
)
0
0
0
'
(
0
6
5
2
2
3
7
9
0
8
2
1
3
0
8
6
,
1
0
8
9
4
4
,
1
0
4
5
,
6
0
2
5
,
3
(cid:3)
(cid:3)
l
a
t
o
T
l
d
o
G
)
t
/
g
(
e
l
b
a
b
o
r
P
s
e
n
n
o
T
)
0
0
0
'
(
s
e
c
n
u
O
)
0
0
0
'
(
l
d
o
G
)
t
/
g
(
s
e
n
n
o
T
)
0
0
0
'
(
s
e
c
n
u
O
)
0
0
0
'
(
d
e
v
o
r
P
l
d
o
G
)
t
/
g
(
s
e
n
n
o
T
)
0
0
0
'
(
0
.
5
8
.
1
6
.
3
8
.
3
2
.
1
0
.
2
3
.
1
1
.
1
5
.
0
9
.
1
4
.
1
7
4
6
,
2
1
6
9
6
,
1
0
0
7
,
9
2
8
7
,
2
5
9
7
9
7
5
,
7
0
6
5
2
2
3
7
9
4
9
1
0
1
7
0
2
4
,
5
0
5
5
,
0
4
-
1
3
6
9
6
7
5
5
,
6
2
8
5
5
,
1
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
0
4
7
,
6
0
1
4
5
1
,
5
6
1
8
,
0
8
9
7
4
,
2
0
.
5
8
.
1
6
.
3
8
.
3
1
.
1
0
.
2
3
.
1
1
.
1
-
2
.
2
5
.
1
5
2
5
,
0
1
5
4
3
1
.
5
1
2
1
,
2
0
0
7
,
9
2
8
7
,
2
5
9
7
8
8
4
,
5
-
6
9
3
,
4
2
0
1
7
0
2
1
,
0
2
-
-
-
6
8
2
2
1
-
3
5
7
0
8
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
6
1
5
,
4
7
6
8
3
,
1
4
1
7
,
0
5
1
4
0
,
1
-
-
-
3
.
1
8
.
1
-
1
.
1
5
.
0
3
.
1
1
.
1
-
-
-
-
1
9
0
,
2
1
6
1
,
2
0
2
4
,
5
0
2
4
,
0
2
(cid:3)
(cid:3)
(cid:3)
(cid:3)
3
1
2
,
2
3
2
9
0
,
0
3
e
l
i
t
p
k
c
o
S
s
n
o
i
t
a
r
e
p
O
c
i
t
s
n
o
i
t
a
r
e
p
O
c
i
t
n
a
l
t
A
n
a
l
t
A
j
s
t
c
e
o
r
P
g
n
d
u
c
x
e
(
l
i
l
a
t
o
T
l
)
d
o
s
y
l
t
n
e
u
q
e
s
b
u
s
s
t
c
e
o
r
P
j
l
l
A
l
a
t
o
T
(cid:3)
(cid:3)
e
l
i
p
k
c
o
S
t
i
r
e
b
m
S
i
j
t
c
e
o
r
P
i
n
o
g
e
R
i
e
d
x
O
i
r
e
b
m
S
i
n
a
i
r
t
s
a
o
r
o
Z
l
l
i
H
r
e
w
o
T
e
t
i
d
o
r
h
p
A
a
i
l
a
w
G
a
i
l
a
r
t
s
u
A
i
e
d
h
p
u
S
l
i
r
e
b
m
S
i
G
N
P
a
d
a
n
a
C
2
2
0
2
r
e
b
m
e
c
e
D
1
3
t
a
s
a
s
e
v
r
e
s
e
R
e
r
O
6
8
3
4
3
6
7
4
7
3
7
4
,
4
7
7
1
,
1
7
1
4
,
7
5
9
8
8
6
7
5
1
3
9
0
2
4
5
3
0
8
4
1
2
0
,
3
1
4
5
4
3
4
,
3
5
7
9
,
3
2
4
9
,
1
2
4
9
,
1
5
5
3
,
6
1
7
1
9
,
5
8
.
5
5
.
3
2
.
2
7
.
1
8
.
1
2
.
3
5
.
1
6
.
3
8
.
1
0
.
4
0
.
1
6
.
1
8
.
1
1
.
1
6
.
1
5
.
1
1
.
1
1
.
1
9
.
1
3
.
1
s
e
c
n
u
O
)
0
0
0
'
(
l
a
t
o
T
e
d
a
r
G
)
t
/
g
(
1
9
3
,
3
4
1
0
,
9
6
2
7
,
3
1
2
8
6
,
0
2
-
1
8
3
7
-
1
1
0
,
1
7
9
6
6
6
2
7
,
6
2
3
4
,
5
7
1
6
,
1
0
8
7
,
8
1
7
1
4
,
9
0
3
3
,
1
1
9
2
2
1
7
2
7
8
0
9
1
4
1
5
2
2
0
3
,
3
5
9
6
9
5
7
5
,
5
1
4
2
5
,
7
6
0
6
1
4
8
8
9
9
0
,
3
8
4
4
0
,
1
4
2
0
,
7
5
1
2
2
4
2
0
,
7
5
1
2
2
6
3
4
,
4
6
2
3
0
9
,
2
3
2
1
,
0
4
1
5
6
2
,
1
8
9
1
,
4
2
5
1
5
s
e
n
n
o
T
)
0
0
0
'
(
s
e
c
n
u
O
)
0
0
0
'
(
6
.
6
3
.
3
-
0
.
2
-
8
.
4
3
.
1
3
.
3
6
.
1
4
.
3
8
.
0
6
.
1
8
.
1
0
.
1
5
.
1
4
.
1
1
.
1
1
.
1
8
.
1
3
.
1
-
1
7
7
7
1
4
,
2
-
8
5
1
,
1
8
7
1
0
0
2
4
7
6
6
2
3
,
3
7
7
1
,
1
6
4
3
,
4
5
5
5
,
5
1
2
3
,
5
1
7
5
,
2
0
3
7
,
1
7
1
8
5
8
6
,
1
0
5
9
,
4
6
6
6
7
9
4
8
2
2
0
2
1
3
1
3
7
1
2
4
7
0
,
7
1
1
4
0
,
2
6
6
8
,
4
5
0
7
,
8
1
5
7
2
7
1
4
,
2
1
7
5
,
3
2
2
9
6
,
2
8
2
4
,
6
2
2
9
8
2
4
,
6
2
2
9
9
1
4
,
1
5
9
0
2
,
1
1
9
9
9
,
9
2
4
1
6
,
3
7
.
5
7
.
3
0
.
2
7
.
1
8
.
1
1
.
3
5
.
1
7
.
3
9
.
1
7
.
4
0
.
1
6
.
1
8
.
1
0
.
1
6
.
1
5
.
1
0
.
1
0
.
1
0
.
2
4
.
1
.
3
2
0
2
e
n
u
J
0
3
m
o
r
f
t
c
e
f
f
e
h
t
i
1
0
1
,
6
5
5
9
1
,
1
5
.
3
6
6
5
,
0
1
a
r
o
n
o
e
L
l
a
t
o
T
6
5
1
,
4
2
0
7
,
3
0
0
8
5
4
6
,
9
4
1
3
,
4
8
5
4
,
3
1
5
7
0
,
6
3
7
0
2
,
8
6
1
1
,
6
4
-
-
-
-
-
1
1
1
1
6
0
1
3
3
1
3
2
3
,
4
5
9
3
2
1
6
4
,
8
2
0
0
8
1
6
4
,
8
2
0
0
8
0
6
9
,
4
7
1
4
4
2
,
2
4
8
7
,
2
8
9
3
0
,
1
-
-
-
-
-
3
.
2
3
.
2
3
.
1
5
.
1
4
.
1
1
.
1
1
.
1
8
.
1
2
.
1
-
-
-
-
-
2
5
1
2
5
1
1
0
5
,
2
4
0
7
,
2
5
0
2
,
5
s
t
i
P
n
e
p
O
e
t
i
l
l
e
t
a
S
c
o
d
r
a
B
c
o
d
r
a
B
l
a
t
o
T
i
e
d
x
O
i
r
e
b
m
S
i
l
i
r
o
s
e
c
x
E
d
n
u
o
r
g
r
e
d
n
U
e
t
i
d
o
r
h
p
A
t
i
P
n
e
p
O
n
a
i
r
t
s
a
o
r
o
Z
t
i
P
n
e
p
O
e
t
i
d
o
r
h
p
A
d
n
u
o
r
g
r
e
d
n
U
n
a
i
r
t
s
a
o
r
o
Z
A
W
,
c
o
d
r
a
B
i
e
d
h
p
u
S
l
i
r
e
b
m
S
i
G
N
P
i
r
e
b
m
S
i
l
a
t
o
T
5
3
1
,
2
2
s
n
o
i
t
a
r
e
p
O
c
i
t
n
a
l
t
A
5
3
1
,
2
2
s
n
o
i
t
a
r
e
p
O
c
i
t
n
a
l
t
A
l
a
t
o
T
a
d
a
n
a
C
8
5
0
,
8
3
0
4
3
,
7
2
j
s
t
c
e
o
r
P
g
n
d
u
c
x
e
(
l
i
l
a
t
o
T
s
t
c
e
o
r
P
j
l
l
A
l
a
t
o
T
l
)
d
o
s
y
l
t
n
e
u
q
e
s
b
u
s
s
e
t
o
N
i
w
s
s
e
n
e
G
o
t
d
o
s
e
r
e
w
e
b
a
t
l
l
i
s
h
t
n
i
d
e
d
u
c
n
l
i
s
n
o
i
t
a
r
e
p
o
c
o
d
r
a
B
d
n
a
a
r
o
n
o
e
L
’
s
a
r
a
b
r
a
B
t
S
.
s
e
v
r
e
s
e
R
e
r
O
f
o
i
e
v
s
u
c
n
l
i
d
e
t
r
o
p
e
r
e
r
a
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
.
1
.
2
.
3
.
4
d
e
r
r
e
f
n
I
e
d
a
r
G
)
t
/
g
(
s
e
n
n
o
T
)
0
0
0
'
(
s
e
c
n
u
O
)
0
0
0
'
(
d
e
t
a
c
i
d
n
I
e
d
a
r
G
)
t
/
g
(
s
e
n
n
o
T
)
0
0
0
'
(
s
e
c
n
u
O
)
0
0
0
'
(
e
d
a
r
G
)
t
/
g
(
s
e
n
n
o
T
)
0
0
0
'
(
d
e
r
u
s
a
e
M
2
9
4
,
1
0
5
1
,
3
8
0
2
,
8
1
9
6
5
,
2
1
2
8
6
,
0
2
3
3
6
8
2
1
4
3
4
-
-
5
.
5
5
.
3
3
.
2
-
-
-
-
3
7
5
,
3
9
2
1
,
1
4
6
8
,
5
s
w
o
l
l
a
h
S
a
i
l
a
w
G
s
p
e
e
D
a
i
l
a
w
G
j
t
c
e
o
r
P
i
n
o
g
e
R
t
i
P
n
e
p
O
a
i
l
a
w
G
s
t
i
h
g
L
r
u
o
b
r
a
H
l
l
i
H
r
e
w
o
T
,
a
r
o
n
o
e
L
A
W
92 | St Barbara Annual Report 2023
2
2
0
2
r
e
b
m
e
c
e
D
1
3
t
a
s
a
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
X
X
X
|
3
2
0
2
t
r
o
p
e
R
l
a
u
n
n
A
a
r
a
b
r
a
B
t
S
a
y
b
i
d
e
n
a
r
t
s
n
o
c
d
e
t
r
o
p
e
r
e
r
a
s
e
c
r
u
o
s
e
R
e
t
i
d
o
r
h
p
A
,
)
u
A
t
/
g
4
0
(
.
t
i
P
n
e
p
O
e
t
i
d
o
r
h
p
A
,
)
u
A
t
/
g
.
4
0
(
l
l
i
H
r
e
w
o
T
i
,
)
e
d
h
p
u
S
u
A
l
t
/
g
8
.
0
/
e
d
x
O
u
A
i
t
/
g
4
.
0
(
i
s
t
h
g
L
r
u
o
b
r
a
H
,
)
u
A
t
/
g
4
.
0
(
t
i
P
n
e
p
O
a
i
l
a
w
G
,
)
u
A
t
/
g
5
.
2
(
a
i
l
a
w
G
s
e
d
a
r
G
f
f
o
-
t
u
C
i
r
e
b
m
S
i
,
)
u
A
t
/
g
4
.
0
(
i
e
d
x
O
i
r
e
b
m
S
i
,
)
u
A
t
/
.
g
6
0
o
t
u
A
t
/
g
3
.
0
–
r
a
v
(
s
t
i
P
e
t
i
l
l
t
e
a
S
c
o
d
r
a
B
,
)
u
A
t
/
g
2
.
1
(
d
n
u
o
r
g
r
e
d
n
U
n
a
i
r
t
s
a
o
r
o
Z
,
)
u
A
t
/
g
5
.
0
(
t
i
P
n
e
p
O
n
a
i
r
t
s
a
o
r
o
Z
,
)
u
A
t
/
g
2
.
1
(
d
n
u
o
r
g
r
e
d
n
U
)
u
A
t
/
g
3
.
0
(
i
i
g
n
n
M
c
i
t
n
a
l
t
A
,
)
u
A
t
/
g
6
.
0
(
e
d
h
p
u
S
l
i
l
a
r
e
n
M
i
i
r
e
b
m
S
i
.
l
l
e
h
s
t
i
p
z
o
/
0
0
5
,
2
$
A
a
y
b
i
d
e
n
a
r
t
s
n
o
c
d
e
t
r
o
p
e
r
e
r
a
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
l
l
i
H
r
e
w
o
T
d
n
a
s
t
h
g
L
i
r
u
o
b
r
a
H
,
t
i
P
n
e
p
O
a
i
l
a
w
G
.
l
l
e
h
s
t
i
p
z
o
/
8
3
3
,
2
$
C
a
y
b
d
e
n
a
r
t
s
n
o
c
d
e
t
r
o
p
e
r
e
r
a
i
s
e
c
r
u
o
s
e
R
l
i
a
r
e
n
M
c
i
t
n
a
l
t
A
.
l
l
e
h
s
t
i
p
z
o
/
,
5
7
8
1
$
S
U
i
.
l
a
t
e
m
d
e
n
a
t
n
o
c
d
n
a
e
d
a
r
g
,
s
e
n
n
o
t
n
e
e
w
t
e
b
s
e
c
n
e
r
e
f
f
i
d
n
o
i
t
a
m
m
u
s
t
n
e
r
a
p
p
a
n
i
t
l
u
s
e
r
y
a
m
g
n
d
n
u
o
R
i
.
5
St Barbara Ore Reserves and Mineral Resources Statement
Competent Person Statements
The Ore Reserves section of the Annual Report has been compiled and approved by Brett Ascott, a Competent Person who is
a Fellow of the Australasian Institute of Mining and Metallurgy and a full-time employee of St Barbara Ltd. Brett Ascott 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”. Brett Ascott consents to the inclusion in the statement of the
matters based on his information in the form and context in which it appears.
The Mineral Resources section of the Annual Report has been compiled and approved by Jane Bateman, a Competent Person
who is a Fellow of the Australasian Institute of Mining and Metallurgy and a full-time employee of St Barbara Ltd. Jane
Bateman 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 Ore Reserves at Gwalia is based on, and fairly represents, information compiled by
Juan Giraldo, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time
employee of Karora Resources. Juan Giraldo 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”. Juan Giraldo
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 and Zoroastrian is based on information compiled by Mr.
Brett Ascott who is a Fellow of the Australasian Institute of Mining and Metallurgy. Brett Ascott 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”. Brett Ascott 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 Ore Reserves at Aphrodite is based on information compiled by Mr. Andrew
Francis who is a Member of the Australasian Institute of Mining and Metallurgy. Andrew Francis is a full-time employee of
Genesis Minerals 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”. Andrew Francis 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. Martin Liu and
Mr. Glen Williamson who are Members of the Australasian Institute of Mining and Metallurgy. Martin Liu and Glen Williamson
are full-time employees of AMC Consultants and have sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the
2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Martin Liu
and Glen Williamson consent to the inclusion in the statement of the matters based on their information in the form and context
in which it appears.
The information in this report that relates to Mineral Resources at Tower Hill, Bardoc, Simberi, and Touquoy 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 Gwalia and Harbour Lights is based on information compiled
by Mr. David Reid who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Reid is a full-time employee of
Genesis Minerals 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”. David Reid 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 for the Beaver Dam, Fifteen Mile Stream
and Cochrane Hill Deposits 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.
St Barbara Annual Report 2023 | 93
St Barbara Annual Report 2023 | XXX
Shareholder
Information and
Corporate Directory
St Barbara Shareholder Information and Corporate Directory
Shareholder Information as at 24 August 2023
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 24 August 20231.
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
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR KENNETH JOSEPH HALL
PALM BEACH NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
SANDHURST TRUSTEES LTD
MR ZIDONG CAO + MRS QIONGQIONG HU
BELL POTTER NOMINEES LTD
NOTARIANNI NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR ZIDONG CAO
MR PETER ANTHONY BUTTIGIEG + MRS JENNIFER LYNN BUTTIGIEG
MS QIONGQIONG HU
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
MS HUA LU
J & A VAUGHAN SUPER PTY LTD
116,233,600
93,596,040
91,307,333
77,990,394
15,088,044
7,863,548
7,000,000
6,314,000
6,029,686
5,680,000
5,027,670
4,452,334
4,000,000
3,495,905
3,217,851
2,888,593
2,683,333
2,599,532
2,587,000
2,370,000
14.21
11.44
11.16
9.53
1.84
0.96
0.86
0.77
0.74
0.69
0.61
0.54
0.49
0.43
0.39
0.35
0.33
0.32
0.32
0.29
Total top 20 holders of ordinary fully paid shares
460,424,863
56.29
Total remaining holders
Total
357,545,517
43.71
817,970,380
100.00
1 The 2023 Directors’ and Financial Report was signed on 24 August 2023.
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.
96 | St Barbara Annual Report 2023
St Barbara Shareholder Information and Corporate Directory
Shareholder Information as at 24 August 2023
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
6,937
3,350,251
7,941
20,755,968
3,085
23,655,080
4,324
130,592,718
566
639,616,363
0.41
2.54
2.89
15.97
78.20
22,853
817,970,380
100.00
Minimum $500.00 parcel at $0.1950 per share1
2,565
11,379
11,009,961
Total holders
Shares
Minimum
parcel size
Substantial Shareholders2
Name
Date notice
released on ASX
Shares
% of issued
capital3
IP Concept (Luxembourg) S.A.
21 April 2023
77,903,500
BlackRock Group
18 August 2023
49,727,486
9.54
6.08
1 Close price on 24 August 2023.
2 As notified by the substantial shareholders to the ASX as at 24 August 2023.
3 As notified by the substantial shareholders on the date notice released on ASX.
St Barbara Annual Report 2023 | 97
St Barbara Shareholder Information and Corporate Directory
Corporate Directory
BOARD OF DIRECTORS
K J Gleeson
K J Gleeson
A M Strelein
A M Strelein
S E Loader
M A Hine
D E J Moroney
W S Hallam
M A Hine
S E Loader
J C Palmer
D E J Moroney
W S Hallam
J C Palmer
Non-Executive Chair
Non-Executive Chair
Managing Director & CEO
Managing Director & CEO
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
COMPANY SECRETARY
S L Standish
REGISTERED OFFICE
Level 19, 58 Mounts Bay Road
Perth Western Australia 6000 Australia
Telephone: +61 8 9476 5555
Facsimile: +61 8 9476 5500
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
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
End of Annual Report
98 | St Barbara Annual Report 2023
stbarbara.com.au