Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 1 of 6 St Barbara Mines Limited The Company has re-emerged as a gold producer with gold sales of 83,646ozs at a cash cost of $341/oz for the quarter. Summary of Key Points Gold Operations �� Significant improvement in performance due to higher grades, reduced unit costs and improved mining productivity. �� Safety at work is fundamental to the Company’s success. Southern Cross operations completed 370 days without a lost time injury at the end of the quarter while Carosue Dam operations achieved 276 days without a lost time injury. Gold Exploration �� Significant drilling results were achieved at Meekatharra at Paddys Flat and Reedys with the best results of 85m @ 3.5g/t from a depth of 192m and 44m @ 3.4g/t from 187m respectively. �� Drilling is also underway at Yilgarn Star, Gwalia Deeps, Tarmoola and Marvel Loch to delineate reserves. �� Exploration expenditure was $2.4M for the quarter. Mineral Resources �� The mineral resources of the Company now total 139Mt @ 2.1g/t for 9.3Mozs as at 30 June 2005, and include the mineral resources acquired through the purchase of the Sons of Gwalia Ltd (Administrators Appointed) Gold Division (“SGWGD”). Refer Table 2. Nickel Sulphide Exploration �� Nickel sulphide targets at Sullivans, 4kms north of Tarmoola have been identified with drilling and ground EM to be conducted during the September 2005 quarter. Corporate �� Cash at bank at 30 June 2005 totalled $28M, of which $12M was cash backing of Company performance bonds. �� The Company’s investments, including its holding of 6.4% in NuStar Mining Corporation Limited (“NuStar”) and 5.5% in Sedimentary Holdings Limited (“Sedimentary”) had a market value of $6.9M as at 30th June. �� Sale of surplus assets has commenced with contracts to the value of $2.3M completed. �� An industry experienced Manager - Environment & Rehabilitation is being appointed to coordinate the Company’s environmental rehabilitation, and bond reduction activities. Forecasts �� Gold production is forecast at 49,000ozs at a cash cost of $400/oz for the September 2005 quarter. �� Gold production beyond November 2005 is currently being assessed. �� Exploration expenditure of $4.1M is forecast for the September 2005 quarter. Eduard Eshuys Managing Director & CEO 19 July 2005 Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 2 of 6 St Barbara Mines Limited Operations Operations Performance Gold sales for the June 2005 quarter totalled 83,646ozs at a cash cost of $341/oz compared to the forecast of 82,000ozs at $415/oz for the quarter. The improved performance of the operations was due to higher grades than forecast, reduced costs due to implementation of cost reduction measures and improved mining productivity at both Marvel Loch and Safari Bore. Safety The Company maintained its emphasis on safety at the operations and completed the first quarter injury free. At the end of the quarter Southern Cross operations had completed 370 days and Carosue Dam operations 276 days without a lost time injury. The rolling 12 month Lost Time Injury Frequency Rate for the two operations is 0.7 (2003/4 WA Gold Industry 4.3). The quarter saw a total of 5 medically treated injuries at the sites resulting in a Medical Treatment Injury Frequency Rate for the quarter of 20. There were no disabling injuries in the quarter and the operations achieved a 12 month rolling Disabling Injury Frequency Rate of 3.5 (2003/4 WA Gold Industry 12.1). Southern Cross Gold production at Southern Cross was derived from the open pit and underground at Marvel Loch and Golden Pig. Production from the Golden Pig mine ceased during the quarter, as scheduled. In the Marvel Loch Open Pit a change to the mine plan has resulted in a higher grade tonnage being extracted and completion of mining is likely during the September 2005 quarter. Two stoping areas were mined in the Marvel Loch underground mine, Sherwood and Undaunted at the northern end. Sherwood has performed ahead of forecast. Undaunted production is on target with reference to tonnes and grade. A third production stope at New Lode was drilled during the quarter and will be in full production during the September 2005 quarter. Further drilling during the quarter has already extended the mineralisation and it is anticipated that additional drilling planned for the September 2005 quarter will result in a further increase in reserves. Forecast gold production for the September 2005 quarter from Southern Cross is 47,000oz at $392/oz. Carosue Dam Mining and processing operations were completed at Carosue Dam during the quarter on schedule. The mining operation achieved better than expected productivities and costs. Gold production from Carosue Dam for the September 2005 quarter will comprise 2,000oz of clean-up gold. Details of June 2005 Quarter Production Southern Cross Carosue Dam Open Pit t 287,356 256,848 Grade g/t 2.25 3.84 Underground t 116,944 - Grade g/t 7.02 - Stockpiles Processed t 259,065 56,750 Grade g/t 1.32 0.77 Ore Milled t 663,365 313,598 Grade g/t 2.94 3.28 Recovery % 92 96 Gold Shipped ozs 53,719 29,528 Cash Cost $/oz 336 349 In addition to gold shipped from operations of 83,247ozs, 399ozs was generated from other site clean-ups. Care and maintenance is being continued at Meekatharra, as well as at Gwalia and Tarmoola, Leonora and Carosue Dam, South Laverton. Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 3 of 6 St Barbara Mines Limited Gold Exploration Meekatharra �� Significant drilling results were reported from Mudlode and Rand prospects. 85m @ 3.5g/t and 58m @ 4.1g/t were reported from Mudlode, in a carbonate-quartz-pyrite altered ultramafic. Best results from Rand include 44m @ 3.4g/t and 27.2m @ 3.6g/t, hosted in a biotite-quartz-pyrite altered zone below the North Rand pit. Details of these holes and others are in Table 1. �� Mudlode is a new position, outside of current resources, east of and adjacent to the Vivians-Consols porphyry. Mudlode mineralisation has been intersected over a 400m strike and remains open to both north and south. Follow-up drilling will occur. �� Drilling at Rand during the quarter has identified gold mineralisation, plunging southwards, below the North Rand pit. Further drilling, resource modelling and mining studies are underway to evaluate the possibility of a pit cutback. Gwalia and Tarmoola �� Infill drilling has commenced at Gwalia Deeps to establish indicated resources utilising existing deep holes drilled in 2000/02 as platforms to drill daughter holes of 300-400m each. DrillCorp (contractors for the 2000/02 campaign) has been engaged for this work, with one UDR1500 rig on double shift. A second rig is expected to commence during August. �� Drilling has also commenced at Tarmoola, testing the gold in granite mineralisation at the ROM pad and West Saddle targets on the western margin of the open pit to a depth of 200m. Southern Cross �� A deep diamond drilling program at Yilgarn Star with a current resource of 780,000t @ 6.9g/t is in progress, targeting the northplunging mineralisation between 350m and 900m from surface. An intersection of 3m @ 9.9g/t was achieved in YSD1056, the first result from this campaign. �� Underground drilling at Marvel Loch of Undaunted, Sherwood, New and the Exhibition Lode is underway, aiming to convert indicated and inferred resources of 917,000t at 8.2g/t for 242,000ozs into reserves. �� A dedicated, focussed gold targeting study has commenced, initially at Southern Cross to produce new exploration targets, and assess the effectiveness of previous exploration. Nickel Sulphide Exploration �� High priority nickel targets within the acquired SGWGD ground are being assessed, with surface EM survey and RC drilling commencing on Leonora targets during July. Research into previous exploration has indicated the presence of significant nickel and copper anomalism in an ultramafic unit at Sullivans 35kms north of Leonora. Very little drill testing of the prospective ultramafic footwall contact, which extends for some 8km on Company owned tenements, has previously occurred. Mineral Resources �� The mineral resources of the Company now total 139Mt @ 2.1g/t for 9.3Mozs as at 30 June 2005 and include the mineral resources acquired through the SGWGD purchase. �� Resource modelling and upgrade at Meekatharra on Rand, Emu, Jack Ryan and Vivians-Consols by Cube Consulting is in progress. This work will incorporate all drilling results received to date and will report the resources in line with the Company’s JORC-compliant reporting standards. Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 4 of 6 St Barbara Mines Limited Table 1 Significant Drillhole Intersections Total Mineralized Intercept Hole No North East Dip Azimuth Depth From To Length Gold m m m m g/t PADDYS FLAT - Mudlode VIRCD033 2702 1313 61 270 450.8 192 282 85 3.5 VIRC029 2700 1315 60 270 340 201 259 58 4.1 VIRC040 2760 1315 60 270 322 238 276 38 2.3 VIRCD020 2740 1315 60 270 429.6 221 262 41 2.1 VIRC035 2780 1350 60 270 350 292 312 20 2.9 VIRC039 2740 1220 60 270 316 224 225 1 54.0 VIRC042 2820 1325 60 270 350 267 276 9 2.7 VIRCD023 3200 1590 60 270 510.6 358 364 6 3.8 VIRC040 2760 1315 60 270 322 210 215 5 4.5 VIRC041 2780 1260 60 270 250 156 180 24 0.9 VIRCD030 3000 1460 55 270 471.7 294 296 2 8.8 VIRCD027 2960 1440 60 270 513.7 282 294 12 1.2 PADDYS FLAT – Vivians-Consols Porphyry VIRCD024a 2996 1448 52 270 450.5 414.5 415.5 1 22.4 VIRCD030 3000 1460 55 270 471.7 442 444 2 10.1 REEDYS - Rand RDRC016 11600 10147 55 270 280 187 231 44 3.4 RDRCD013 11560 10170 60 270 328.3 267.4 310 42.6 2.5 RDRCD020 11500 10182 60 270 363.7 275.33 302.5 27.2 3.6 including 283 297.5 14.5 5.7 RDRC016 11600 10147 55 270 280 222 228 6 13.5 RDRC027 11140 10129 60 270 270 197 213 16 3.6 including 202 212 10 5.1 RDRC028 11600 10147 45 270 202 170 183 13 4.0 RDRC019 11640 10145 48 270 249 161 185 24 2.0 RDRCD004 11200 10270 60 270 462.1 448.5 455 6.5 5.2 RDRC025 11000 10140 60 270 322 243 252 9 3.7 RDRC030 11550 10159 50 270 230 174 210 36 0.9 RDRCD007 11900 10210 60 270 456.6 416 425.4 9.4 3.1 RDRCD015 11520 10225 55 270 366.7 344 350 6 4.5 SOUTHERN CROSS – Yilgarn Star YSD1056 5529 11149 65 090 469 404 407 3 9.9 Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 5 of 6 St Barbara Mines Limited Corporate The Company continues to hold a 5.5% interest in Sedimentary and a 6.4% interest in NuStar. Financing for the replacement of SGWGD performance bond guarantees amounting to $30M was finalised during the quarter and comprised: - operations’ generated cash of A$9M; and - offshore bank letter of credit of A$21M. Total cash backing for the Company’s performance bonds, including the Meekatharra tenements, amounts to $12M. The Department of Industry and Resources has granted a 12 month moratorium for the lodging of securities for $5.7M in proposed bond increases relating to the acquired SGWGD tenements. Total funds drawn down on the Resource Capital Funds III LP facility remained unchanged at $7M. The transition of the SGWGD acquisition was completed smoothly during the quarter, including: - signing on of key management and operations staff; - renewing insurance cover for 2006 at a lower aggregate cost than for 2005; and - establishing IT and communications platforms across all operations. An industry experienced Manager - Environment & Rehabilitation is being appointed to strengthen the implementation of a range of rehabilitation programs planned to reduce current cash backed performance bonds. Two experienced managers have been dedicated to negotiating the sale of surplus property, plant and equipment from the SGWGD acquisition. To date sales of surplus assets to the value of $2.3M have been achieved. Further sales are anticipated. There were no new securities issued during the quarter and 2,370,516 unlisted options expired. Financials The Consolidated Statement of Cash Flows reflects a full quarter’s contribution from the recently acquired SGWGD operations. The closing combined cash position and cash backing for performance bonds increased to $28.0M at 30 June 2005 from $9.5M at 31 March 2005. This increase is primarily attributable to strong Net Operating Cash Flows for the quarter of $17.9M. The closing cash position of $16.2M at 30 June, excluding cash backing of bonds, compares with $2.2M as at 31 March 2005. Other details are as follows: �� For the June quarter, gold sales of 83,646 ounces were sold at spot, at a weighted average price of A$557.13 per ounce. The Company’s gold production remains unhedged. �� Corporate Project and Acquisition Costs of $742k for the quarter related to the SGWGD acquisition, and included stamp duty costs. �� Proceeds from the Sale of Equity Investments includes $957k from the sale of 19.1M NuStar shares at 5 cents each pursuant to an option agreement with Claymore Capital and nominees. The option agreement expired in May 2005. Quarterly Activities Report 3 months to 30th June 2005 G:\Corporate\Financial Rpts\Quarterly\2005\June.doc Page 6 of 6 St Barbara Mines Limited Table 2 Mineral Resource Statement at 30 June 2005 MEASURED INDICATED INFERRED TOTAL REGION kTonnes Au g/t Koz kTonnes Au g/t Koz kTonnes Au g/t Koz kTonnes Au g/t Koz Leonora Gwalia 7,200 7.4 1,720 7,200 7.4 1,720 Tarmoola 10,000 1.5 460 10,300 1.2 400 35,600 1.2 1,370 55,900 1.2 2,230 Other 990 1.0 30 6,370 1.6 330 6,800 2.1 460 14,160 1.8 820 10,990 1.4 490 16,670 1.4 730 49,600 2.2 3,550 77,260 1.9 4,770 Southern Cross Marvel Loch 60 4.0 8 3,000 3.9 370 1,100 6.7 230 4,160 4.6 608 Yilgarn Star 390 6.6 80 1,050 3.2 110 1,440 4.1 190 Other 6,200 2.7 550 4,800 2.9 450 11,000 2.8 1,000 60 4.0 8 9,590 3.2 1,000 6,950 3.5 790 16,600 3.4 1,798 Meekatharra (100% SBM) Paddys Flat 16,500 1.7 910 9,300 1.4 420 25,800 1.6 1,330 Reedys 840 2.7 70 800 5.5 140 310 5.0 50 1,950 4.2 260 Other 150 3.1 15 150 3.1 15 840 2.7 70 17,450 1.9 1,065 9,610 1.5 470 27,900 1.8 1,605 South Laverton 5,900 2.3 400 3,500 2.6 300 9,500 2.5 700 Meekatharra (JV) Annean JV (SBM reducing to 30%) 4,800 1.5 230 1,550 2.2 110 6,350 1.7 340 Polelle JV (SBM reducing to 35%) 1,120 1.6 60 1,120 1.6 60 4,800 1.5 230 2,670 2.0 170 7,470 1.7 400 TOTAL ALL AREAS 11,890 1.5 568 54,410 2.0 3,425 72,330 2.3 5,280 138,730 2.1 9,273 This resource estimate complies with recommendations in the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared in 1999 by the Joint Ore Reserves Committee (JORC). It was prepared by Mr Peter Thompson, General Manager Exploration and Ms Jane Bateman, Manager Resources, full time employees of St Barbara and both Competent Persons as defined by the Code. It is included in this report with the written consent of Mr Peter Thompson and Ms Jane Bateman. In accordance with ASIC Class Order 98/100 dated 10 July 1998 amounts in this report have been rounded off to the nearest thousand, unless otherwise stated. Directors and Executive Management S J C Wise.........................................Chairman E Eshuys...........................Managing Director R Knight ..................Non-Executive Director H G Tuten...............Non-Executive Director M K Wheatley........Non-Executive Director R J Kennedy................... Company Secretary Registered Office Level 2, 16 Ord Street West Perth WA 6005 Telephone: ............................. +61 8 9476 5555 Facsimile: ............................... +61 8 9476 5500 Email:[email protected] Website:................... www.stbarbara.com.au Issued Capital As at the date of this report, the issued capital is 566,533,352 shares. As at the date of this report, there are 92,338,091 unlisted options exercisable at various prices between 4.7¢ and 35¢ up to 23 December 2011. Largest Shareholder Resource Capital Fund II LP ................ 31.4% Stock Exchange Listings Australian Stock Exchange AIM Board of London Stock Exchange Ticker Symbol: SBM Dollar values in this report are Australian Dollars unless otherwise stated Shareholder Enquiries Matters related to shares held, change of address and tax file numbers should be directed to: Advanced Share Registry Services 110 Stirling Highway Nedlands WA 6009 Telephone: ...............................+61 8 9221 7288 Facsimile: .................................+61 8 9221 7869 or for UK residents: Computershare Investor Services PLC The Pavilions, Bridgwater Road Bristol BS99 7NH, England Telephone: .............................+44 870 703 6088 Facsimile: ..............................+44 870 703 6142 Appendix 5B Mining exploration entity quarterly report Appendix 5B Page 1 Appendix 5B Mining exploration entity quarterly report Name of entity ST BARBARA MINES LIMITED ABN Quarter ended (“current quarter”) 36 009 165 066 30 JUNE 2005 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A’000 Year to date (12 months) $A’000 1.1 Receipts from debtors (a) gold sales (b) Other 44,508 642 44,508 1,550 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) care & maintenance (e) administration and corporate payments (f) projects & acquisition costs (2,437) - (22,763) (870) (970) (742) (5,502) (3,905) (22,763) (2,000) (6,235) (2,646) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 161 478 1.5 Interest and other costs of finance paid (148) (585) 1.6 Income taxes paid - - 1.7 Other (payments of 30 June 2004 creditors) - (3,649) Net Operating Cash Flows 17,381 (749) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (refund in quarter) (b) equity investments (c) other fixed assets 188 (265) (37) (2,182) (481) (199) 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets - 978 186 62 9,746 5,092 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - Net investing cash flows 1,050 12,038 1.13 Total operating and investing cash flows (carried forward) 18,431 11,289 Appendix 5B Mining exploration entity quarterly report Appendix 5B Page 2 Current quarter $A’000 Year to date (12 months) $A’000 1.13 Total operating and investing cash flows (brought forward) 18,431 11,289 Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - 2,905 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from convertible borrowings - 8,382 1.17 Repayment of borrowings - (3,500) 1.18 Dividends paid - - 1.19 Addition to cash backed bonds (4,440) (10,430) Net financing cash flows (4,440) (2,643) Net increase (decrease) in cash held 13,991 8,646 1.20 Cash at beginning 2,211 12,849 1.21 Deconsolidation adjustment - (5,293) 1.22 Cash at end of quarter 16,202 16,202 1.23 Cash backing bonds at beginning 7,361 3,108 1.24 Increase/(decrease) in cash backing bonds 4,440 8,693 1.25 Cash backing bonds at end of quarter 11,801 11,801 1.26 Cash at end of quarter including cash backed bonds 28,003 28,003 Payments are shown net of GST. Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 122 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions Refer commentary. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows None. Appendix 5B Mining exploration entity quarterly report Appendix 5B Page 3 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest None. Financing facilities available Add notes as necessary for an understanding of the position. Amount available $A’000 Amount used $A’000 3.1 Loan facilities - - 3.2 Credit standby arrangements - - Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 4,084 4.2 Development - Total 4,084 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A’000 Previous quarter $A’000 5.1 Cash on hand and at bank 1,454 853 5.2 Deposits at call 14,748 1,358 16,202 2,211 5.3 Bank overdraft - - 5.4 Other (a) Cash security for bonds (b) Restricted cash held in escrow 11,801 - 2,830 4,500 Total: cash at end of quarter (item 1.22) 28,003 9,541 Changes in interests in mining tenements Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed M20/303 M20/306 M20/308 M20/215 Tenement Surrendered Reedys Reedys Reedys Reedys 100% 100% 100% 100% - - - - 6.2 Interests in mining tenements acquired or increased P20/1863 Tenement Granted Reedys - 100% Appendix 5B Mining exploration entity quarterly report Appendix 5B Page 4 Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) 7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions 7.3 +Ordinary securities 566,533,352 566,533,352 Fully paid Fully paid 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Nil 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Nil 7.7 Options (description and conversion factor) Employee and unlisted options 92,338,091 All options are unlisted Exercise price Between 4.7¢ and 35¢ Expiry date Between 13/08/05 and 23/12/11 7.8 Issued during quarter Nil 7.9 Exercised during quarter Nil 7.10 Expired during quarter 2,370,516 None Various Various 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Appendix 5B Mining exploration entity quarterly report Appendix 5B Page 5 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here: ............................................................ Date: 19 July 2005 Print name: Ross Kennedy, Chief Financial Officer and Company Secretary Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == ==
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