How Are The Fundamentals Looking For St Barbara Limited (ASX: SBM)?

  • Mar 30, 2019 AEDT
  • Team Kalkine
How Are The Fundamentals Looking For St Barbara Limited (ASX: SBM)?

St Barbara Limited (ASX: SBM) is into the gold exploration and production. The company has lately come out with its Presentation to analysts and investors at Leonora Operations. The company in its Gwalia production profile stated that the Gwalia Mine, Leonora, WA had achieved a Record production of gold which is evident from the production of 268 Koz for the FY 18 vis-à-vis 265 Koz achieved for the FY17. The AISC (All In sustainable costs) incurred for the FY 18 was A$802/oz vis-s-vis A$785/oz for the FY17. As regards the FY19 guidance, the management stated that they expect to achieve the Gold Production of 235 to 240 Koz at an All-In sustainable cost of A$980 to A$1,000/oz.

As regards the Q2 Dec FY19 production, the mine achieved a production 53,257 oz vis-s-vis 62,685oz for the Q1 FY19 at an All-In sustainable cost of A$1,081/oz vis-à-vis A$833/oz incurred for the Q1 FY19. The rise in AISC witnessed on the QoQ basis was on the back of the lower production, higher CAPEX and higher capital development impacted unit costs. The grade extracted was 10.4 g/t Au primarily from South West Branch.

Coming to the company’s financial performance, the company released its December 2018 Half Year report which showed exhibited decent financial performance. As per the report, the company reported a statutory profit after tax of $83 million for the half year to 31 December 2018 as compared to the $106 million for the comparative reporting period, with underlying profit after tax of $77 million vis-a-vis $98 million for the comparative reporting period.

The key highlights of these results were that the firm achieved a Gold production of 187,792 ounces at a Group All-in Sustaining Cost1 of A$1,008 per ounce. It achieved an EBITDA margin of 45% for the Group and 57% for Gwalia operations. Also, the company was able to garner a net cash contribution of $150 million generated from Gwalia and Simberi for the subject half year. Considering this, the company declared $0.04 fully franked interim dividend for the half year to December 2018. The firm had a strong Balance Sheet with a Cash position of $357 million at 31 December 2018, with no debt.

On the stock performance front, the company has posted the year-till-date return of -27.68%. The company also posted returns of -2.03%, -28.30% & -26.10% over the past six months, three months & one-month period, respectively. At the time of writing (28 March 2019 AEST 4:00 PM), the stock of the company was trading at a price of A$3.37, with a market capitalisation of ~A$ 1.85bn. The stock opened the day at A$ 3.370, reached the day’s high of A$ 3.450 and touched the day’s low of A$ 3.370, with an average daily volume of 3,862,043. It had a 52-week high price of $ 5.320 and a 52 weeks low price of $ 3.150, with an average volume of, 4,140,952 approximately.


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