65452f9b2325b802803ff2.pdf

Quarterly Report / Q1 September 2015

• Q1 gold production of 111,039 ounces at AISC A$863/oz

• Record quarterly production at Simberi of 29,539 ounces

• Continued strong cash generation

Executive Summary Operations

˃ Consolidated gold production was 111,039 ounces for the

September quarter (Q4 Jun: 99,359 oz). Consolidated All- In Sustaining Cost1 (AISC) was A$863 per ounce for the quarter (Q4 Jun: A$979 per ounce). The average realised gold price for the quarter was A$1,565 per ounce (Q4 Jun: A$1,478 per ounce).

˃ Leonora (Western Australia) production was 81,500 ounces of gold for the quarter (Q4 Jun: 72,222 oz), with Gwalia production 72,388 ounces (Q4 Jun: 57,208 oz) at AISC of A$692 per ounce, and King of the Hills production 9,112 ounces (Q4 Jun: 15,014 oz) at AISC of A$964 per ounce.

˃ Simberi (PNG) gold production was a record 29,539 ounces for the quarter (Q4 Jun: 27,137 oz), comfortably in excess of the targeted 100,000 oz p.a. run rate. Mining, ore transport and processing all exceeded their targets and delivered record results. AISC was A$1,252 per ounce.

Health & Safety

˃ The Company-wide Total Recordable Injury Frequency Rate (TRIFR), calculated as a rolling 12 month average, was

4.1 to 30 September 2015 (Q4 Jun: 5.0).

Exploration

˃ Gwalia (Leonora) A program directed at extensions to the Gwalia lode system approximately 400m below current underground mine workings has continued with the completion of a daughter from parent hole GWDD13. The hole intercepted the Gwalia mine sequence and returned mineralised lode intervals similar to those encountered higher in the mine. In addition, a new parent hole (GWDD17) was commenced to optimise target coverage during the current program and provide positions from which further deposit extensions could be reached. The full drilling program is aimed at delineating an Indicated Resource to support studies of a potential materials handling system (including consideration of a shaft).

˃ Centenary Project (Leonora) WA Follow up drilling of non- gold mineral anomalies identified from a ground based geophysical program have returned anomalous results from three of the four target areas. Further drilling and

1. Non-IFRS measure, refer page 12

   
   

   geophysical surveys area expected to be completed in the December 2015 quarter.

   ˃ Simberi PNG Trenching at Pigibo North on the Simberi Mine Lease (PNG) was completed during the quarter, targeting oxide mineralisation. Encouraging results were returned including:

   Pigibo North

   ˃ SIMTR932: 50m @ 1.3 g/t Au, including

   10m @ 2.6 g/t Au

   ˃ SIMTR934: 40m @ 1.2 g/t Au, including

   15m @ 1.8 g/t Au

   ˃ SIMTR952: 55m @ 1.0 g/t Au, including

   20m @ 1.4 g/t Au

   ˃ Big Tabar Island PNG Detailed creek mapping and channel sampling continued at Banesa Au-Cu porphyry prospect (EL609) during the September quarter.

   ˃ Pinjin Project (Yilgarn) WA Field work focussed on defining geological/structural, geophysical and gold in bedrock geochemical targets for follow-up aircore drilling.

   Finance (unaudited)

   ˃ US dollar denominated debt was reduced by US$22 million during the quarter to US$249 million at 30 September 2015 (Q4 Jun: US$ $271 million). At 30 September 2015, interest bearing liabilities totalled A$358 million (Q4 Jun: A$347 million).

   ˃ Cash contribution2 from operations for the quarter was a record A$80 million, an increase of A$11 million on the previous quarter, reflecting the increased production at Gwalia and record cash flow from Simberi. Cash at bank as at 30 September 2015 was A$115 million 3 , after repayment of debt and financing costs in the quarter of A$34 million.

   
   

2. Non-IFRS measure, refer reconciliation of cash movements on page 11

3. Excluding A$2 million restricted cash

St Barbara Limited	Level 10, 432 St Kilda Road, Melbourne VIC 3004	T +61 3 8660 1900 F +61 3 8660 1999
ACN 009 165 066	Locked Bag 9, Collins Street East, Melbourne VIC 8003	W www.stbarbara.com.au

Outlook

˃ Guidance for FY16 is revised as follows:

˃ Forecast Gwalia (Leonora) gold production of between 230,000 and 250,000 ounces (previously 220,000 to 230,000 ounces) at an AISC of between A$875 and A$940 per ounce (previously A$875 to A$950/oz), with capex of between A$30 and A$35 million.

˃ Forecast Simberi gold production of between 90,000 and 110,000 ounces at an AISC of between A$1,275 and A$1,400 per ounce, with capex of between A$8 and A$12 million.

˃ Forecast exploration expenditure of A$10 million.

Bob Vassie

Managing Director and CEO 20 October 2015

St Barbara Gold Production & Guidance

Production Summary Consolidated	Q3 Mar FY15	Q4 Jun FY15	Q1 Sep FY16	Guidance FY16 [3]
Production
Gwalia	oz	76,954	57,208	72,388	230 to 250 koz (previously 220 to 250 koz)
King of the Hills	oz	11,836	15,014	9,112	9 koz4
Simberi	oz	22,498	27,137	29,539	90 to 110 koz
Consolidated	oz	111,288	99,359	111,039	329 to 369 koz (previously 319 to 369 koz)
Mined Grade		Reserve grade [2]
Gwalia	g/t	9.7	8.6	9.7	9.4
King of the Hills	g/t	4.1	4.5	n/a	n/a
Simberi	g/t	1.38	1.28	1.22	1.3
Total Cash Operating Costs[1]		n/a
Gwalia	$/oz		532	729	553
King of the Hills	$/oz	1,177	1,095	893	n/a
Simberi	$/oz	1,193	1,034	1,119	n/a
Consolidated	$/oz	734	868	731	875 to 940 (previously 875 to 950)
All-In Sustaining Cost[1]
Gwalia	$/oz	645	860	692
King of the Hills	$/oz	812	1,106	964	-
Simberi	$/oz	1,310	1,149	1,252	1,275 to 1,400
Consolidated	$/oz	798	979	863	995 to 1,070
(previously 995 to 1,080)

[1] Non-IFRS measure, refer page 12.

[2] Ore Reserve grade at 30 June 2015, refer Ore Reserve and Mineral Resources Statement released 25 August 2015. [3] FY16 guidance issued in the June 2015 Quarterly Report (released 21 July 2015) and refined in this report.

[4] Stockpiled as at 30 June 2015.

AISC (Consolidated)

(A$/oz)

1,344

1,042

FY15 AISC A$1,007/oz

Gold Production

(koz) 98

17

798

111

22

30%
	25%
		22%	23%

12

979

99

27

863

111

30

FY16 Production Indicative Quarterly Guidance Profile

69 129

13 15

11

69 77 72

57

45

FY 15	FY 15	FY 15	FY 15	FY 16	FY 16	FY 16	FY 16	FY 16
Q1 Sep	Q2 Dec	Q3 Mar	Q4 Jun	Q1 Sep	Q1 Sep	Q2 Dec	Q3 Mar	Q4 Jun

Total

Gwalia King of the Hills Simberi

koz

Figures displayed to nearest thousand ounces. Reported ounces in associated table

Indicative % of annual production (koz)

Gwalia, Leonora, WA

AISC (A$/oz)

1,086

883

860

692

˃ During the quarter work was completed upgrading the support in the main decline between 1380 Level and 1460 Level.

Gwalia Deep Drilling Program

˃ A drilling program directed at extensions to the Gwalia lode system approximately 400m below current

FY15 AISC A$841/oz

Mined grade (g/t Au)

9.0

7.9

645

9.7

8.6

9.7

underground mine has continued with the completion of daughter hole GWDD13H.

˃ Significant results returned from GWDD13H were (all intercepts down-hole, details in Table 2):

˃ Main Lode 1.2 m @ 25.8 g/t Au from 2,104 m

FY15 mined grade 8.9 g/t Au

Production (koz)

77.0

68.6

45.4

57.2

72.4

˃ South West Branch 0.6 m @ 9.6 g/t Au from 2,119 m

˃ West Lode 5.9 m @ 8.5 g/t Au from 2,179 m

˃ This is the fourth separate hole to have intersected the mine sequence below the existing reserve, and reflects accurate modelling by the geology team in predicting the location of the mine sequence and effective execution by the drill team to successfully intercept the target. These results further indicate that the mine sequence continues at this depth, and supports the parallel work on a potential

FY 15

Q1 Sep

Operations

FY 15

Q2 Dec

FY 15

Q3 Mar

koz

FY15

Q4 Jun

FY 16

Q1 Sep

materials handling system (including consideration of a shaft).

˃ Drilling has commenced on a new daughter hole GWDD13I and a new parent hole GWDD17.

˃ Gwalia produced 72,388 ounces of gold in the September quarter due to strong mining performance in volume and grade.

˃ Ore mined for the quarter was a record 254 kt. This record reflects the ongoing implementation of production enhancing techniques such as underground waste storage and an ore pass system.

˃ Ore milled for the quarter was 241 kt, an increase of 16 kt from the previous quarter despite a 9 day plant shutdown for mill relining. The mill plan was adjusted to accommodate the increased volume of ore mined during the quarter. Ore containing an estimated 5,500 ounces of gold was stockpiled at the end of the quarter.

˃ Mined ore grade was higher than expected at 9.7 g/t Au for the quarter. This was due to strong stoping performance delivering improved control of dilution, in addition to the presence of higher grade shoots in the mined areas. The resolution of the grade control drilling is insufficient to accurately estimate the presence and magnitude of these higher grade shoots.

˃ All In Sustaining Cost (AISC) reduced to A$692 per ounce for the quarter, due to the mine cycle having several stopes 'in production' as well as mining taking place in stopes where high grade shoots were present.

West Lode Drilling Program

˃ West Lode constitutes one of the four major lode structures identified within the Gwalia Mine Sequence and is located approximately 80m to the west of South West Branch.

˃ Underground drilling completed during the September 2015 quarter has continued to return significant intersections which include (all intercepts metres below surface, details in Table 1):

West Lode:

˃	UGD2354:	2.3m @ 8.0 g/t Au from 1,717 m
˃	UGD2356:	10.6m @ 5.1 g/t Au from 1,755 m
˃	UGD2358:	1.9m @ 41.5 g/t Au from 1,876 m
˃	UGD2366:	4.2m @ 12.8 g/t Au from 1,835 m
˃	UGD2367:	1.2m @ 32.1 g/t Au from 1,767 m

˃ Results from recent West Lode drilling will be incorporated into the Resource model and mine plan, which is expected to lead to an updated Reserve statement during the financial year.

Gwalia Growth Projects - Materials Handling Study

Production Summary Gwalia	Q3 Mar FY15	Q4 Jun FY15	Q1 Sep FY16
Underground ore mined	kt	250	216	254
Grade	g/t	9.7	8.6	9.7
Low grade development ore & stockpiles milled	kt	11	7	2
Grade	g/t	3.4	1.9	2.6
Ore milled	kt	259	225	241
Grade [1]	g/t	9.6	8.2	9.8
Recovery	%	96	96	96
Gold production	oz	76,954	57,208	72,388
All-In Sustaining Cost [2]	$ per ounce
Mining		353	469	356
Processing		84	99	121
Site services		35	65	52
Stripping and ore inventory adjustments		23	58	(11)
By-product credits		495	691	518
		(3)	(2)	(3)
Third party refining & transport		1	1	1
Royalties		39	39	37
Total cash operating costs		532	729	553
less operating development		(73)	(102)	(45)
Adjusted cash operating cost		459	627	508
Corporate and administration		33	36	40
Corporate royalty		23	24	23
Rehabilitation		2	2	3
On-site exploration		-	-	-
Capitalised mine & op development		103	145	101
Sustaining capital expenditure		25	26	17
All-In Sustaining Cost (AISC)		645	860	692

˃ During the quarter the Company commenced preliminary scoping studies on potential materials handling systems for deeper mining in parallel to the drill program. These studies include assessing a shaft with skip hoisting, a shaft with vertical conveying, and also slurry pumping to surface. Each of the current alternatives requires underground crushing.

˃ Management is seeking to accelerate the materials handling study, now targeting completion of appropriate studies for the Board to have the information necessary for an investment decision in Q2 December FY17.

Outlook

˃ FY16 guidance is refined as follows:

˃ Production of between 230,000 ounces and 250,000 ounces (previously 220,000 to 250,000 ounces)

˃ AISC of between A$875 and A$940 per ounce (previously A$875 and A$950/oz)

˃ Capital expenditure of between A$30 and A$35 million.

Gwalia underground ore mined

231250

205

216

254

FY 15

Q1 Sep

FY 15

Q2 Dec

FY 15

Q3 Mar kt

FY 15

Q4 Jun

FY 16

Q1 Sep

[1] Includes Gwalia mineralised waste [2] Non-IFRS measure, refer page 12

King of the Hills, Leonora, WA

AISC

[A$/oz]

1,407

1,123

812

Production [koz]

12.011.8

10.8

1,106

15.0

964

9.1

Operations

˃ King of the Hills ceased mining in April 2015, and had subsequently been placed on care and maintenance, with the associated capitalised mine development written off during FY15.

˃ Processing of King of the Hills ore was completed in Q1 September 2015.

˃ On 15 October 2015 St Barbara Limited completed the sale of the King of the Hills project and Kailis resource to Saracen Metals Pty Ltd, a wholly owned subsidiary of Saracen Mineral Holdings Ltd. The sale includes certain mine and related assets and rehabilitation liabilities

FY 15

Q1 Sep

FY 15

Q2 Dec

FY 15

Production Summary King of the Hills	Q3 Mar FY15	Q4 Jun FY15	Q1 Sep FY16
Underground ore mined	kt	171	29	-
Grade	g/t	4.1	4.5	-
Ore milled	kt	97	118	76
Grade	g/t	4.0	4.2	3.9
Recovery	%	95	95	95
Gold production	oz	11,836	15,014	9,112
All-In Sustaining Cost [1]	$ per ounce
Mining		996	231	17
Processing		202	200	2
Site services		74	20	-
Stripping and ore inventory adjustments		(117)	622	868
By-product credits		1,155	1,073	887
		(17)	(21)	(20)
Third party refining & transport		1	1	1
Royalties		38	42	25
Total cash operating costs		1,177	1,095	893
less operating development		(867)	(129)	-
Adjusted cash operating cost		310	966	893
Corporate and administration		33	36	40
Corporate royalty		23	24	23
Rehabilitation		24	19	-
On-site exploration		-	-	-
Capitalised mine & op development		421	58	-
Sustaining capital expenditure		1	3	8
All-In Sustaining Cost (AISC)		812	1,106	964

Q3 Mar koz

FY 15

Q4 Jun

FY 16

Q1 Sep

located at King of the Hills and Kailis.

˃ Consideration for the sale is A$3 million cash, with A$300,000 paid on Completion and the balance due on the earlier of commercial production of ore at the Kailis project or 4 years from Completion. St Barbara's 30 June 2015 Financial Report noted the present value of the A$2.7 million deferred settlement as A$2.3 million, and that on Completion the present value of the rehabilitation provision of A$13.9 million relating to King of the Hills and Kailis will be reversed to the Income Statement.

[1] Non-IFRS measure, refer page 12

Simberi, Papua New Guinea

Operations

2,205

AISC

[A$/oz]

Production

[koz]

12.7

FY 15

Q1 Sep

1,619

17.3

FY 15

Q2 Dec

1,310

22.5

FY 15

Q3 Mar

koz

1,149

27.1

FY 15

Q4 Jun

1,252

29.5

FY 16

Q1 Sep

˃ Simberi produced a site record 29,539 ounces of gold during the quarter, an increase of 9% on the previous quarter. In the month of July a record 11,695 ounces was produced. Gold production for the quarter again comfortably exceeded the 100,000 oz p.a. target run rate.

˃ The total volume of material and ore mined increased on the previous quarter by 38% to 2.6 Mt, which was a new site record.

˃ Annualised throughput for the quarter was approximately equivalent to the target 3.5 Mtpa.

Production Summary Simberi	Q3 Mar FY15	Q4 Jun FY15	Q1 Sep FY16
Total ore & waste mined	kt	1,618	1,882	2,606
Ore mined	kt	460	725	896
Grade	g/t	1.38	1.28	1.22
Ore milled	kt	750	768	859
Grade	g/t	1.1	1.3	1.3
Recovery	%	83	86	84
Gold production	oz	22,498	27,137	29,539
All-In Sustaining Cost [1]	$ per ounce
Mining		316	345	351
Processing		473	394	448
Site services		361	245	273
Stripping and ore inventory adjustments		-	-	-
By-product credits		1,150	984	1,072
		-	-	-
Third party refining & transport		13	14	10
Royalties		30	37	37
Total cash operating costs		1,193	1,035	1,119
Corporate and administration		33	36	40
Corporate royalty		-	-	-
Rehabilitation		21	17	14
On-site exploration		-	-	-
Capitalised mine & op development		-	-	-
Sustaining capital expenditure		63	61	79
All-In Sustaining Cost (AISC)		1,310	1,149	1,252

˃ AISC for the quarter was A$1,252 per ounce (Q4 Jun: A$1,149/oz). Whilst this is an increase from the previous quarter, it is below the guidance range for FY16. The underlying cash costs per ounce in US dollars increased 2% from Q4 FY15 to Q1 FY16, however, the Australian dollar equivalent was impacted by the devaluation in the Australian dollar. Simberi costs are approximately denominated in US Dollars (40%), Papua New Guinea Kina (40%) and Australian Dollars (20%). In addition:

˃ a number of one off costs were incurred in this quarter, including increased investment in the ore delivery system, plant and mill trommel

˃ improvement in ore delivery tonnage was largely achieved through increased trucking, which is higher cost than the integral ore delivery infrastructure (discussed below).

˃ Operational improvements continue to drive increases in the performance of the Simberi processing plant. Mill throughput of 859 kt (annualised 3.4 Mtpa) was a 12% increase on the previous quarter, with the month of September a record with 299 kt (annualised 3.6 Mtpa) of ore processed.

˃ There is confidence that Simberi can improve further:

˃ a number of initiatives to increase the overall percentage of ore being delivered through the lower cost ore delivery system with the potential to reduce unit costs

˃ a major shutdown of the plant was undertaken during the quarter with significant changes made to the mill and trommel, which are expected to further increase throughput and reduce operating costs.

[1] Non-IFRS measure, refer page 12

Outlook

˃ FY16 guidance is maintained:

˃ production of between 90,000 and 110,000 ounces

˃ AISC of between A$1,275 and A$1,400 per ounce

˃ capex of between A$8 and A$12 million.

Simberi oxide life of mine / sulphide transition

Simberi Ore & Waste Mined

1,710
	= 1,618 = 1,401 = 1,389						1,157
	1,158
		999	905
896
				725
	402	484	460

= 1,882

= 2,606

˃ During the quarter the prefeasibility study (PFS) for the Simberi sulphide project was further advanced.

˃ As previously noted, areas of Simberi's oxide reserves are within the pit wall pushbacks of the deeper sulphide pits, meaning that a value optimised mine plan needs to include a phased cut-over period between oxide and sulphide mining when both can be processed. Such a phased cutover with both oxide and sulphide processing

FY15

Q1 Sep

FY15

Q2 Dec

FY15

Q3 Mar

kt

FY15

Q4 Jun

FY16

Q1 Sep

streams operating would also optimise recovery when processing transitional ores.

˃ Should the sulphide orebody not be mined, the value optimised oxide mine plan would leave behind some of the oxide ore. At the start of the 2016 financial year, the value optimised oxide mine plan was in the order of four years if the Sulphide project was not progressed.

˃ The sulphide project PFS is being expedited with current

Ore Mined Waste Mined = Total

Simberi Ore Milled

859
	750	768
			620
				536

focus on development of an optimised mine plan incorporating economical and metallurgical parameters as identified through the study to date. Previous metallurgical work identified and then refined a traditional flotation circuit appropriate to yield a marketable concentrate. Development of the optimised mine plan with subsequent evaluation of project economics indicate completion of the PFS in the March 2016 quarter. Further drilling work is being planned to determine the full extent of the sulphide orebody as well as to acquire samples to better evaluate metallurgical variability and use that information to optimise the mine plan.

˃ The existing combined oxide and sulphide reserves indicate a potential long life operation in excess of 15 years with upside potential as the full extent of the sulphide orebody below the oxide is yet to be determined.

FY15

Q1 Sep

FY15

Q2 Dec

FY15

Q3 Mar

kt

FY15

Q4 Jun

FY16

Q1 Sep

Exploration

Gwalia Deep Drilling Program

˃ Resource extension drilling at Gwalia has continued with the objective of providing the required certainty to extend the Gwalia resource and to develop the case for mining below the current base of reserves at 1800 metres below surface (mbs).

˃ The initial parent hole was completed in February 2015 and reported to the ASX on 25 February 2015, while results from the first daughter drill hole were released to the ASX on 7 April 2015 and a second daughter hole (GWDD16C) on 5 August 2015.

˃ Parent hole GWDD13 has been re-opened to complete a new daughter hole. GWDD13H achieved a downhole depth of 2,239m after passing through over 100m of the Gwalia mine sequence which incorporated mineralised intervals equivalent to Main Lode, South West Branch and West Lode. Further daughter hole drilling from this parent is in progress.

˃ Significant results returned from GWDD13H were (all intercepts down-hole, details in Table 2):

˃ Main Lode: 1.2m @ 25.8 g/t Au from 2,104m

˃ South West Branch: 0.6m @ 9.6g/t Au from 2,119m

˃ West Lode: 5.9m @ 8.5g/t Au from 2,179m

˃ A new parent hole (GWDD17) commenced during the September 2015 quarter to optimise target coverage and to provide a position from which further deposit extensions could be reached. At the end of the quarter GWDD17 had reached a depth of 796m aiming to pass through the target position at a downhole depth of 2,050m.

˃ The full drilling program is aimed at delineating an Indicated Resource to support the materials handling studies.

Centenary Project Leonora WA

˃ The Centenary project is approximately 60 km north of Leonora, nearby to the Jaguar and Bentley operations of Independence Group (Figure 3.0).

˃ As previously announced, St Barbara has completed high powered ground electromagnetic (EM) surveys and follow- up rotary mud/diamond drilling of four targets located approximately 200m below surface.

˃ Three anomalies within E37-916 are located close to the interpreted western boundary of the felsic-volcanic dominated stratigraphic package which hosts the Jaguar and Bentley copper-zinc-silver volcanogenic massive sulphide (Cu-Zn-Ag VMS) deposits owned by Independence Group NL (ASX: IGO). These anomalies were

tested by holes CNRD001, CNRD002A and CNRD003. CNRD003 and did not return an intersection and will be redrilled to correctly target the source of the anomaly during the December 2015 quarter. Both CNRD 001 and CNRD002A returned anomalous zinc values associated with intervals of black shale.

˃ A highly conductive anomaly within E37-917, coincident with nickel geochemistry, was targeted by rotary mud/diamond hole CNRD004. Complete analytical results are yet to be received.

˃ Further drilling and geophysical surveys are expected to be completed in the December 2015 quarter.

Pinjin Project Yilgarn WA

˃ Exploration continued on the Pinjin project within the Yilgarn Province, WA. The Pinjin Project is located 150km northeast of Kalgoorlie, comprising a large tenement package of 20 exploration licences (1,358 km2) for 485

blocks (Figure 3.1).

˃ The focus during the quarter was to progress the higher ranked geophysical and bedrock geochemical targets in preparation for future aircore drilling. Two reconnaissance field visits were conducted during the quarter with 31 residual soil samples, 11 outcrop rock chip samples and

194 historical RAB or aircore drill cuttings collected. Samples were analysed for gold and a multi-element suite.

˃ Seven samples of historical drill cuttings sampled in the field returned >50 ppb Au (Figure 3.1). These include:

˃ Target 2446-1 (761 ppb Au)

˃ Target 2446-2 (541 ppb Au)

˃ Target 2447-3 (215 ppb Au)

˃ Target 2447-1 (150 ppb Au)

˃ Target 2447-2 (150 ppb and 83 ppb Au).

˃ 225 sample pulps from a previous 2013 aircore drilling program were analysed for a multi-element suite.

˃ Program of Works (PoWs) involving aircore drilling have been submitted to the Department of Mines and Petroleum. Heritage surveys are planned for the December quarter. Aircore drilling will commence upon successful completion of surveys and approval of PoWs.

Simberi, Tatau & Tabar Islands, Papua New Guinea (ML 136 and EL 609)

˃ Exploration continued on Simberi ML136 and EL609 at Western Simberi Island and Big Tabar Island (Figures 4.0 and 4.1).

˃ On Simberi Island (Figure 4.0), the exploration program is focused on identifying additional near-mine higher grade

oxide resources as potential ore feed sources to extend oxide mine life.

˃ Trenching within ML136 was completed at Pigibo North. A total of 33 trenches (SIMTR917 to SIMTR923; SIMTR927 to SIMTR952) were collected for 2,075 metres and 415 samples. Significant trench sampling results are highlighted in Figure 4.2 and include:

Pigibo North:

˃ SIMTR932: 20m @ 1.1 g/t Au, and

50m @ 1.3 g/t Au, including 10m @ 2.6 g/t Au

˃ SIMTR934: 40m @ 1.2 g/t Au, including

15m @ 1.8 g/t Au

˃ SIMTR935: 30m @ 1.0 g/t Au, including

10m @ 2.0 g/t Au

˃ SIMTR952: 55m @ 1.0 g/t Au, including

20m @ 1.4 g/t Au

˃ Six diamond drill holes of an eight hole program (SDH335 to SDH340) were completed at Pigibo North in September for a total of 393.3m (Figure 4.2). Results are pending.

˃ Drill pads have been established at Patan in preparation for an 8 hole (360m) diamond drill program planned for the December quarter.

West Simberi:

˃ Surface sampling continued on West Simberi Island (EL609) during the September quarter. Ridge and spur soil (n=42) and four hand trenches (SIMTR916 and SIMTR924 to SIMTR926) for 270 metres (n=54) followed up anomalous gold in stream sediment samples (Figure 4.3). No significant results were returned from the recent soil and trench samples (Figure 4.4).

Big Tabar Island:

˃ Detailed creek mapping, trench mapping and channel sampling was conducted at Banesa Au-Cu prospect (EL609) during the September quarter. A total of 6.1 line km of creek and trench mapping were completed and 34 rock chip samples were collected. A total of 64 creek channel and trenches (TABTR108 to TABTR171) for 3,515 metres and 678 samples were collected at Banesa. Au and Cu assay results were received for trenches TABTR079 to TABTR167. Significant trench sampling results are highlighted in Figure 4.5 and include:

Banesa:

˃ TABTR079: 55m @ 0.3 g/t Au and 0.2% Cu, including

5m @ 2.5 g/t Au and 0.5% Cu

˃ TABTR092: 125m @ 0.3 g/t Au and 0.1% Cu, including

10m @ 1.3 g/t Au and 0.2% Cu, and 5m @ 1.9 g/t Au and 0.3% Cu.

˃ During the quarter, a large mining company entered into a confidentiality agreement with the Company to review EL609 exploration data, including the Banesa porphyry target.

Expenditure (unaudited)

˃ Expenditure on mineral exploration for the September 2015 quarter is shown below:

Q1 Sep 2015
Australia	A$0.2 million	(expensed)
Pacific	A$0.9 million	(expensed)
Gwalia Deep Drilling	A$0.5 million	(capitalised)
Total	A$1.6 million

December 2015 Quarter

˃ Exploration in Q2 December 2015 will focus on:

˃ The identification of further extensions to the Gwalia deposit through a phased program of diamond drilling directed at quantifying the resource to approximately 2,000 metres below surface

˃ Follow-up drilling and broader application of high powered electro-magnetic surveys to pursue base metal and nickel targets within the Centenary project area

˃ Conducting heritage surveys at Pinjin over proposed targets in preparation for aircore drilling

˃ Targeting near mine oxide potential within ML136 on Simberi at Pigibo North and Patan

˃ Continuing reconnaissance mapping and surface sampling, targeting oxide potential on West Simberi (EL609) following up anomalous gold results from the stream sediment sampling program

˃ Subject to access, trenching on southwest Tatau Island targeting higher grade oxide potential

˃ Finalise detailed prospect mapping and surface sampling at Banesa Au-Cu prospect on Big Tabar Island

˃ Finalise access at Fotombar prospect on Big Tabar Island for mapping and surface sampling.

˃ The map below shows current and planned target areas for Q2 December 2015.

interest, amounted to A$18 million. St Barbara has now repurchased a cumulative US$67 million (27%) in aggregate principal of the original US$250 million of Notes issued by St Barbara in March 2013. US$183 million of the Notes were on issue at the end of the September quarter.

˃ The first of eight US$9 million quarterly repayments of the Red Kite debt facility was completed during the September 2015 quarter, leaving a balance of US$66 million on this facility at the end of the quarter. Interest and principal repayments to Red Kite amounted to A$16 million for the September quarter.

˃ The consolidated AISC for the quarter was higher than in Q3 March FY15 (A$798/oz) which had a similar production volume. This is in part due to the higher AISC at Gwalia and King of the Hills, and also due to the higher proportion of Simberi production in Q1 of 27% (Q3 Mar FY15: 20%).

Cash movements & balance A$M (unaudited)	Q3 Mar FY15	Q4 Jun FY15	Q1 Sep FY16
Leonora - operating cash flow [2]	68	59	68
Simberi - operating cash flow [2]	2	10	12
- project capex	-	-	-
Gold Ridge	(1)	-	(1)
Rehabilitation , land management & corporate capex	(1)	(1)	(2)
Corporate costs [3]	(5)	(4)	(4)
Corporate royalties	(2)	(2)	(2)
Exploration (4)	(2)	(3)	(2)
Other project costs (see below)	-	(2)	-
Working capital movement	(16)	(3)	3
Cash flows before finance costs	43	54	72
Net interest and finance costs	(3)	(18)	(4)
US debt repayment	-	(67)	(30)
Net movement for quarter	40	(31)	38
Cash balance at start of quarter	68	108	77
Cash balance at end of quarter[5]	108	77	115

˃ Cash movements for the September 2015 quarter are summarised in the following table:

Health & Safety

˃ The Company-wide Total Recordable Injury Frequency Rate (TRIFR), calculated as a rolling 12 month average, decreased from 5.0 at 30 June 2015 to 4.1 for the twelve months ended 30 September 2015. The improvement reflects a continued focus on safety in response to the slight increase in TRIFR during FY15.

˃ At the recent PNG National Mines Rescue Competition, the Simberi Emergency Response Team won the 'Best Team' for the Multi Casualty event, 'Best Captain' for the Multi Casualty Event and 'Best Medic' for both the Firefighting and Multi Casualty events.

Financials (unaudited)

˃ 109,776 ounces of gold were sold in the September quarter, at an average realised gold price of A$1,565 per ounce (Q4 June 2015: 104,954 oz at A$1,478 per ounce).

˃ Cash at bank at 30 September 2015 was $115 million1 after total payments during the quarter of A$34 million for the repurchase of US Notes and Red Kite interest and principal repayments noted below.

˃ During the September quarter, the Company repurchased US$13 million in aggregate principal of its US Senior Secured Notes at a 7% discount to par value (US$3 million was announced on 26 August 2015 with the financial report presentation, and US$10 million was announced on

˃ Total interest bearing liabilities at 30 September 2015 of A$358 million included US$183 million Senior secured notes and US$66 million Red Kite facility, with the balance comprised of A$4 million of lease liabilities. At 30 June 2015, the interest bearing liabilities balance was A$347

28 September 2015). The corresponding net cash outflow,

including discounted principal repayments and accrued

1 Excluding A$2 million restricted cash

1. Net of sustaining capex

2. Includes corporate redundancy payments and restructuring consulting fees incurred in relevant quarters

3. Includes Gwalia Deep Drilling

4. Excluding A$2 million restricted cash

Share Capital
Issued shares
Opening balance 30 June 2015	495,102,525
Issued	Nil
Closing balance 30 September 2015	495,102,525
Unlisted performance rights
Opening balance 30 June 2015	20,059,671
Issued	Nil
Lapsed	Nil
Closing balance 30 September 2015	20,059,671

million, with the increase in the September quarter due to the adverse movement in the A$/US$ exchange rate (0.7022 at 30 Sep 2015, 0.7713 at 30 Jun 2015).

˃ The Company manages exposure to the US dollar denominated debt using US dollar revenue from gold sales.

˃ At 30 September 2015, there were 75,150 ounces of gold forward contracts at a strike price of A$1,600 per ounce to be delivered between October 2015 and June 2016. These gold forward contracts were established to secure a stable cash margin on Simberi's forecast FY16 gold production.

Senior Secured Notes US$M

˃ Issued March 2013 250

˃ Repurchased Q4 Jun 2015 (54)

˃ ˃ ˃	Balance remaining at 30 Sep 2015 Closing bid at 30 September 2015 Coupon	183 US$ 0.93 8.875% p.a.
˃ ˃ ˃	Redemption date S&P rating Moody's rating	15 April 2018 B- Caa1

˃ Repurchased Q1 Sep 2015 (13)

ASX & ADR

The Company's shares are listed on ASX (ASX:SBM) and through American Depositary Receipts (ADR OTC: STBMY) traded in the USA.

Scheduled Future Reporting

Date	Report
27 November	Annual General Meeting
Late January	December 2015 Quarterly Report

Corporate

˃ As advised on 4 September 2015, S&P Dow Jones Indices announced the Company's inclusion in the ASX 300 effective 18 September 2015.

˃ Gold Ridge (Solomon islands) Pursuant to the agreement for the unconditional sale of the Gold Ridge Project which was completed in May 2015, the Company delivered (through a third party) a water treatment plant to the Gold Ridge tailings storage facility during the quarter. The plant is now installed and due to be commissioned in November. This will complete the Company's obligations associated with the sale of the Gold Ridge Project.

[Dates are tentative and subject to change]

Non-IFRS Measures

˃ The Company supplements its financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS financial measures, including cash operating costs. We believe that these measures provide additional meaningful information to assist management, investors and analysts in understanding the financial results and assessing our prospects for future performance.

˃ Cash Operating Costs are calculated according to common mining industry practice using The Gold Institute (USA) Production Cost Standard (1999 revision).

˃ All-In Sustaining Cost (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 World Gold Council's Guidance Note on Non-GAAP Metrics - All-In Sustaining Costs and All-In Costs (June 2013).

˃ AISC is calculated on gold production in the quarter.

˃ For underground mines, amortisation of operating development is adjusted from 'Total Cash Operating Costs' in order to avoid duplication with cash expended on operating development in the period contained within the 'Mine & Operating Development' line item.