RNS Number:7033P
St. Barbara Mines Limited
12 September 2003
ASX SHAREHOLDERS
REPORT
Preliminary Final Result 2002/03 and Outlook
Preliminary Final Result
* Earnings before interest, tax, depreciation, amortisation and change in
accounting policy $3.7 million
* Gold sales 98,080 ounces (down 7 percent)
- realised gold price $572 per ounce (up $57/oz)
- net cash cost $465 per ounce (down $217/oz)
* Net loss after tax $32.7 million after charging:
- change in accounting policy $9.9 million
- non-cash charges of $18.4 million (including $10 million in accelerated
write-down of underground operations)
* The Company remains unhedged
Outlook
* Finance - first two months of 2004 financial year
- Short term debt reduced $5.0 million
- Production 11,380 ounces at net cash cost of $438 per ounce, and
realised price $537 per ounce
* Production Schedule
- Paddys Flat No. 2 and No. 3 low grade stockpiles to provide 1.8 million
tonnes of mill feed supplemented by Bluebird low grade stockpiles
- Development plans for Paddys Flat high grade orebodies particularly
Prohibition well advanced
* Paulsens Project
- Revised development plan to examine smaller tonnage - higher grade
underground mine.
Stephen W. Miller
Executive Chairman
12 September 2003
Financial details in the form of Appendix 4E are attached.
The Company recorded a consolidated net loss of $32.7 million (of which $28.3
million were non-cash charges), with higher gold sales revenue offset by
accelerated mine development writedown of underground operations and a change in
accounting policy.
Financial Performance
Gold revenue from operations was $1.6 million higher (up 3 percent). A higher
realised price ($572 per ounce, up 11 percent) off-set lower sales (98,080
ounces, down 7 percent). The higher realised price reflected an improved spot
gold price and 66 percent of sales at spot (previous year nil). There were no
outstanding hedge positions at the year end.
The net operating cost of production (equivalent to the Gold Institute total
cash cost) at $575 per ounce reflected difficulties with both underground mines.
In the last three months of the year costs were significantly lower at $433
per ounce based on high throughput of Paddys Flat low grade stockpiles.
Production and Sales Statistics
Period 12 months to 30 June 2003 2002
Ore mined 483,041 1,386,084
(tonnes)..........................................
Ore milled 2,284,599 1,888,829
(tonnes)..........................................
Grade milled (g/ 1.47 1.84
t)............................................
Recovery 89.7 92.3
(%).................................................
Gold produced 96,611 103,246
(ounces)..................................
Gold sold 98,080 105,844
(ounces)...........................................
Production Cost Statement ($/oz)
Modified Gold Institute Standard
Period 12 months to 30 June 2003 2002
Mine site cash 448 669
costs.......................................
State 17 13
royalties.................................................
Net Cash 465 682
Cost................................................
Mine development capital cost amortisation. 103 (127)
Inventory movements.................................... 7 2
Net Operating Cost........................................ 575 553
Realised Gold 572 515
Price........................................
Spot Price 572 552
Average..........................................
St Barbara calculates cost of production using a modified Gold Institute
Standard. The modification is designed to clearly identify the actual cash cost
incurred, which is then normalised depending upon over or under development
against the life-of-mine plan. The resultant 'net operating cost' per ounce is
equivalent to the GI 'total cash cost' per ounce.
Simplified Statement of Financial Performance
($'000)
for the year ended 30 June 2003 2002
Gold revenue from operations....................... 56,110 54,516
Other revenue................................................. 1,494 31,977
Earnings before interest, tax, depreciation and amortisation and 3,717 16,112
change in accounting
policy...............................................................
Change in accounting policy......................... (9,897) -
Earnings before interest, tax, depreciation and (6,180) 16,112
amortisation.............................................
Depreciation................................................... (2,750) (2,044)
Amortisation and write-down of mine (15,641) (28,176)
development...................................................
Earning/(loss) before interest and tax (24,571) (14,108)
Interest (expense)............................................ (5,449) (3,941)
Income tax expense......................................... (2,965) -
Outside equity interests.................................. 252 155
Net profit/(loss).............................................. (32,733) (17,894)
Segmental Analysis
($'000)
for the year ended 30 June 2003 2002
Results from Operations.................................. 2,899 9,150
Amortisation and depreciation........................ (8,319) (24,470)
Profit on sale of shares and property, plant and 818 11,557
equipment........................................................
Change in accounting policy......................... (9,897) -
Write-downs
- Mine development costs............................ (10,072) (5,750)
- Exploration expenditure............................... - (3,381)
- AIM listing costs......................................... - (1,214)
Earnings/(loss) before interest and tax (24,571) (14,108)
Prepared in accordance with
Australian Generally Accepted Accounting Principles.
Other revenue, in the corresponding twelve month period, was dominated by the
sale of the shareholding in Goldfields Limited for $26.7 million, and a net
profit of $9.2 million.
Earnings before interest, tax, depreciation and amortisation of $3.7 million was
determined after state royalties ($1.7 million) and before an accounting charge
of $9.9 million ($4.4 million relating to prior year capitalised exploration
expenditures) associated with reconciliation to Canadian GAAP to achieve
alignment with proposed merger partner Defiance Mining Corporation.
Higher interest costs reflect an increase in RCF loan drawdown and associated
extension fees.
Accelerated amortisation of underground mine development costs due to early
closure and sterilisation of ore reserves recorded charges of $7.6 million
against Gibraltar and $2.6 million against Great Northern Highway.
Cash Flow Statement
Available cash (net of security bonds) decreased to $0.6 million.
Capital allocations included Great Northern Highway and Gibraltar underground
mine development ($3.9 million) and Mulla Mulla and regional exploration ($1.9
million).
Additional security bonds ($1.7 million) previously secured by guarantee were
cash backed during the period.
Loan and finance repayments, principally the Taipan convertible note ($7.4
million) was financed from cash and a further drawdown of the RCF loan.
Financial Position
Total shareholders' equity decreased by $22.1 million, reflecting the change in
accounting policy and accelerated amortisation of underground mine development.
Current assets include the investment in Dioro Exploration NL at cost ($4.9
million). Working capital at year end was negative $7.4 million.
Interest bearing debt at balance date was $24.0 million. This comprises the
fully drawn RCF $12.0 million loan (10 percent interest per annum which was
satisfied by the issue of shares), the Ocean Resource Capital Holdings
convertible loan ($7.3 million with accrued interest at a rate of 12 percent per
annum or exchangeable into shares at 8 cents per share) and lease commitments.
The RCF loan was reduced by $5.0 million in July 2003 on receipt of the proceeds
on sale of the Dioro shares.
Three placements of shares (64.3 million) were made for working capital
principally to UK institutions. Ocean Resource Capital Holdings part exercised
their convertible note (15.0 million).
Simplified Cash Flow Statement
($'000)
for the year ended 30 June 2003 2002
Operating Activities
Cash 63,043 59,968
receipts.......................................................
Payments - suppliers/employees...................... (64,593) (81,280)
Other (341) (1,709)
(net)...........................................................
Net cash (1,891) (23,021)
flow......................................................
Investing Activities
Payments - exploration/evaluation/development (13,050) (10,558)
Payments - listed investments........................... (365) (4,526)
Investment - 26,736
sold...................................................
Sale -property/plant/equipment (net)................ 777 2,551
Net cash (12,638) 14,203
flow......................................................
Financing Activities
Loan and finance repayments............................. (2,263) (14,295)
Repayment of convertible loan.......................... (7,372) -
Restricted cash (bonds)...................................... (1,736) -
Proceeds from borrowings................................ 9,830 9,653
Issue of 7,635 19,088
securities...............................................
Share - (1,066)
buy-back...................................................
Net cash 6,094 13,380
flow......................................................
Cash - beginning of period................................. 9,032 4,470
Net change in cash............................................. (8,435) 4,562
Cash - end of period........................................... 597 9,032
Simplified Statement of Financial Position
($'000)
As at 30 June 2003 2003 2002
Assets
Current................................................................ 19,164 24,384
Non-current......................................................... 58,128 77,654
Total.................................................................... 77,292 102,038
Liabilities
Current................................................................ 26,610 29,868
Non-current......................................................... 12,709 12,062
Total.................................................................... 39,319 41,930
Net assets........................................................... 37,973 60,108
Share capital & reserves..................................... 129,493 118,643
Accumulated losses............................................ (91,520) (58,787)
Outside equity interests...................................... - 252
Total shareholders' equity.................................. 37,973 60,108
OUTLOOK
Financial Position
The financial position was improved immediately post the year end with a $5
million repayment of the interest bearing RCF loan (leaving an outstanding $7
million). This was financed by the sale of the Dioro Exploration investment.
Meekatharra Production
Production for the first eight months of 2003/04 financial year will be
dominated by the processing of Paddys Flat No. 2 and No. 3 low grade stockpiles
at a throughput rate of approximately 3.0 million tonnes per annum to deliver
40,000 ounces. Evaluation of several small nearby shallow oxide pit
possibilities continues.
The production schedule for the balance of the year includes Bluebird low grade
stockpiles (0.46 Mt) and Batavia open pit (0.12 Mt) for an additional recovered
20,000 ounces.
Detailed evaluation of the higher grade underground Vivians, Consols,
Prohibition and Mickey Doolan deposits at Paddys Flat is ongoing.
The priority is Prohibition where the orebody has reasonable width and is hosted
in a competent banded iron formation. Subject to board approval, decline
development is planned to commence in the first quarter of 2004, with the first
ore deliveries early in 2004/05 financial year.
Meekatharra Exploration
Gold Fields have completed their minimum expenditure of $0.75 million and
withdrawn from the JV. Upgraded targets will be scheduled for further
exploration.
Paulsens Development
A revised mine development plan (smaller tonnage-higher grade underground mine
with either toll or contract processing) with substantial reductions in start-up
capital nears completion.
Defiance Merger Proposal
The merger between St Barbara and the now listed Defiance Mining Corporation
remains on the agenda notwithstanding advancement of their Tasiast Project and
recent equity raisings.
CORPORATE INFORMATION
CORPORATE INFORMATION
Board of Directors and Executive Management Issued Capital Shareholder Enquiries
S. W. Miller Executive Chairman As at the date of this report, Matters related to shares
K. A. Dundo Non-Executive Director issued capital is 431,464,225 held, change
G. B. Speechly Non-Executive Director shares. of address and tax file
H. G. Tuten Non-Executive Director numbers should
A. D. Rule Chief Financial Officer There were 44,329,772 listed be directed to:
and Company Secretary options, exercisable at 30 cents
up until 29 February 2004 and Australia:
Registered Office 71,682,563 unlisted options Advanced Share Registry
Level 2, 16 Ord Street exercisable at various prices Services
West Perth WA 6005 between 11 cents and 40 cents up Level 7, 200 Adelaide Terrace
Telephone: +61 8 9476 5555 to 17 January 2008. Perth WA 6000
Facsimile: +61 8 9476 5500 Telephone: +61 8 9221 7288
Email: perth@stbarbara.com.au Major Shareholders Facsimile: +61 8 9221 7869
Website: www.stbarbara.com.au National Nominees 11.16%
Westpac Custodians 10.64% United Kingdom:
Stock Exchange Listings Resource Capital Fund II Computershare Investor
Australian Stock Exchange LP 7.89% Services PLC
AIM Board of London Stock Exchange Strata Mining Corporation PO Box 435, Owen House
Ticker Symbol: SBM Ltd 7.46% 8 Bankhead Crossway North
ANZ Nominees 3.72% Edinburgh EH11 4BR
Telephone: +44 870 703 6088
Substantial Shareholders Facsimile: +44 870 703 6142
RAB Europe Fund Ltd 10.43%
GAM International Growth
Fund 9.41% ADR Depositary
Resource Capital Fund II The Bank of New York
LP 7.89% 101 Barclay Street
Strata Mining Corporation New York NY10286 USA
Ltd 7.46% Telephone: +1 212 815 2218
This preliminary final report presents consolidated financial information
relating to St Barbara Mines Limited and its controlled entities for the year
ended 30 June 2003. The comparative information is for the year ended 30 June
2002.
Results for announcement to the market
% $000
Revenues from ordinary activities down 33 to 57,604
Loss from ordinary activities after tax down 82 to 32,733
attributable to members
Net loss for the period attributable to members down 82 to 32,733
Dividends Amount per security Franked amount per security
Final dividend Nil Nil
Previous corresponding period Nil Nil
Record date for determining entitlements to the dividend Not applicable
STATEMENT OF FINANCIAL PERFORMANCE
30 June 2003 30 June 2002
A$'000 A$'000
Revenue from sale of gold 56,111 54,516
Other revenues from outside operating activities 1,493 31,977
Total revenue from ordinary activities 57,604 86,493
Changes in inventories of finished goods (2,453) (278)
Raw materials and consumables used (11,543) (13,425)
Cost of investments sold - (17,506)
Cost of property, plant and equipment sold (184) (1,964)
Cost of tenements sold - (186)
Contract mining expense (11,442) (9,146)
Contract cartage (4,845) (3,036)
Contract milling (2,616) (2,483)
Contract maintenance (1,163) (1,473)
Contract labour and consultants (1,396) (3,606)
Tenement rent and rates (1,110) (1,224)
Royalty (1,728) (1,386)
Employee expenses (8,626) (10,788)
Exploration drilling and assay expenditure (1,803) -
Exploration consultant expenditure (1,447) -
Cumulative effect of exploration write off prior to 1 July 2002 (4,422) -
Shares issued for native title (616) -
AIM admission costs - (1,214)
Other expenses from ordinary activities (8,390) (2,666)
Earnings/(loss) before interest, tax, depreciation and amortisation (6,180) 16,112
(EBITDA)
Amortisation of mining development expenses (15,641) (22,426)
Write down of mining development expenses - (5,750)
Depreciation and amortisation expenses (2,750) (2,044)
Earnings/(loss) before interest and tax (EBIT) (24,571) (14,108)
Borrowing costs (5,449) (3,941)
(Loss) from ordinary activities before income tax (30,020) (18,049)
Income tax expense (2,965) -
Net (loss) after income tax (32,985) (18,049)
Net (loss) attributable to outside equity interests 252 155
Net (loss) attributable to members of the Company (32,733) (17,894)
STATEMENT OF FINANCIAL POSITION
30 June 2003 30 June 2002
A$'000 A$'000
Assets
Current assets
Cash assets 597 9,032
Restricted cash 280 -
Receivables 3,688 3,287
Other financial assets 4,891 -
Inventories 4,264 5,151
Assets held for resale 4,194 5,409
Other 1,250 1,505
19,164 24,384
Non-current assets
Restricted cash 3,293 1,837
Other financial assets - 4,526
Property, plant and equipment 8,380 9,906
Other 83 232
Deferred tax assets - 2,965
Mining properties 46,372 58,188
58,128 77,654
Total Assets 77,292 102,038
Liabilities
Current liabilities
Payables 10,561 15,905
Interest bearing liabilities 15,151 12,926
Provisions 898 1,037
26,610 29,868
Non-current liabilities
Interest bearing liabilities 8,833 9,393
Provisions 3,876 2,669
12,709 12,062
Total Liabilities 39,319 41,930
Net Assets 37,973 60,108
Equity
Contributed equity 127,534 118,213
Option reserve 1,959 430
Accumulated losses (91,520) (58,787)
Parent entity interest 37,973 59,856
Outside equity interest - 252
Total Equity 37,973 60,108
STATEMENT OF CASH FLOWS
30 June 2003 30 June 2002
A$'000 A$'000
Cash Flows from Operating Activities
Cash receipts in the course of operations 63,043 59,968
(inclusive of goods and services tax)
Payments to suppliers and employees (64,593) (81,280)
(inclusive of goods and services tax)
Other cash receipts - 405
Interest received 292 124
Borrowing costs paid and gold lease fees (68) (1,842)
Finance charges - finance leases (340) (270)
- hire purchase agreements (225) (126)
Net cash flows (used in) operating activities operating (1,891) (23,021)
Cash Flows from Investing Activities
Payments in respect of exploration, evaluation and development (13,050) (10,558)
Payments for property, plant and equipment (205) (1,749)
Cash received from investments sold - 26,736
Payments for investment in listed securities (365) (4,526)
Cash received from sale of property, plant and equipment 982 4,300
Net cash flows provided by / (used in) investing activities (12,638) 14,203
Cash Flows from Financing Activities
Principal repayments under secured loans - (12,700)
Repayment of convertible loan (7,372) -
Restricted cash (1,736) -
Share buy back - (1,066)
Proceeds from borrowings 9,830 9,653
Net proceeds from issue of securities 7,635 19,088
Principal repayments - finance leases (1,204) (1,078)
- hire purchase agreements (1,059) (517)
Net cash flows provided by financing activities 6,094 13,380
Net increase / (decrease) in cash (8,435) 4,562
Cash at the beginning of the financial year 9,032 4,470
Cash at the end of the financial year 597 9,032
Reconciliation of loss after income tax to net cash outflow from operating
activities is as follows:
30 June 30 June
2003 2002
A$'000 A$'000
Operating loss after income tax (32,985) (18,049)
Write down FITB 2,965 -
Depreciation and amortisation 2,828 2,044
Development mining expenses - (35,201)
Mining properties change in accounting policies 9,897 -
Amortisation and write down of mining expenses 15,641 28,176
Write down of exploration tenements - 3,381
(Profit)/loss on sale of tenements - (24)
Write down of feasibility studies - 924
(Profit) on sale of property, plant and equipment (818) (2,336)
(Profit)/loss on sale of shares - (9,221)
Borrowing expenses paid with shares 1,015 1,000
Convertible note interest 303 669
Issuance of options in lieu facility fees 1,529 430
Changes in assets and liabilities:
- (Increase)/decrease in trade & other debtors 969 (1,185)
- Decrease/(increase) in inventories 887 1,159
- Decrease/(increase) in other assets 172 377
- Increase in trade & other creditors, employee (4,294) 4,835
entitlements and provisions
Net cash inflow from operating activities (1,891) (23,021)
DIVIDENDS
No dividend has been declared.
STATEMENT OF ACCUMULATED LOSSES
30 June 2003 30 June 2002
A$'000 A$'000
Accumulated losses at the beginning of the financial period (58,787) (40,893)
Net profit attributable to members of the Company (32,733) (17,894)
Accumulated losses at the end of the financial period (91,520) (58,787)
NET TANGIBLE ASSETS PER SHARE
30 June 2003 30 June 2002
Net tangible assets A$'000 77,292 99,073
Fully paid ordinary shares on issues 415,553,303 319,758,267
Net tangible asset per share A$ 0.186 0.309
CONTROLLED ENTITIES
No controlled entities were acquired or disposed of during the period.
COMMENTARY ON RESULTS
The commentary on the results and activities is set out on the attached
announcement.
EARNINGS PER SHARE
30 June 30 June
2003 2002
cents/share cents/share
Basic and diluted earnings per share (0.08) (0.08)
A$'000 A$'000
Retained (loss) for the year used in the calculation of basic earnings (32,733) (17,894)
per share
Number Number
Weighted average number of fully paid ordinary shares on issue during 409,326,900 228,375,474
the year used in the calculation of basic earnings per share
SEGMENT REPORTING
The consolidated entity operates predominantly in the gold mining industry in
Australia.
The consolidated entity's head office is in Australia.
AUDIT REPORT
This report is based on accounts which are in the process of being audited.
Enquiries regarding this report may be directed to:
Stephen W. Miller Executive Chairman
Telephone (08) 9476 5555
Overseas +61 8 9476 5555
or
Colin G. Jackson
Investor Relations
Telephone 0417 929 107
St Barbara Mines Limited
Level 2, 16 Ord Street
West Perth
Western Australia 6005
Telephone (08) 9476 5555
Overseas +61 8 9476 5555
Dollar values in this report are Australian Dollars unless otherwise stated.
Comparatives are twelve months to 30 June 2003.
St Barbara is a dedicated gold company listed on both the Australian Stock
Exchange and the AIM (London Stock Exchange) - ticker symbol SBM - with over
12,000 shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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