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The mineral explorer and gold producer St Barbara Limited (ASX: SBM) released its Q3 March quarterly FY19 report.
On the operational front, the company recorded 88 koz at consolidated All-In Sustaining Cost (AISC) of A$1,098/oz (Q2: 89 koz at A$1,108/oz). Also, the Simberi gold resource has set new records in milled grade and recovery. Further, at Gwalia Extension project, deep drilling and exploration work was successfully carried out during the period.
On the financial front, during the period SBM had produced an operational cash contribution in Q3 March FY19 was recorded at A$71 million compared to Q2 Dec FY19, which stood at A$76 million. Simberi has produced $77 million cash contribution during the FY19 period till date. On 31 March 2019, the company had A$382 million cash at the bank with zero debt, after paying $0.04 per share, fully-franked dividend on 27 March 2019. The operating cash flow will fund all the anticipated growth projects.
The Total Recordable Injury Frequency Rate was recorded at 4.1 at the end of Q3 March FY19, a rise from 2.9 at Q2 FY19.
Gwalia Q3 March FY19 Results
The gold production at Gwalia for the Q3 March FY19 period, stood at 54,261 oz from (Q2: 53,257oz), at AISC of A$1,016/oz from (Q2: A$1,081/oz). The Gwalia Extension Project experienced competition for ventilation and trucking capacity and adversely impacted mining during the quarter. For the period, the mined grade was of 11.7 g/t Au from South West Branch stopes compared to (Q2: 10.4 g/t Au).
Simberi Q3 March FY19 Results
The gold production at Simberi for the Q3 March FY19 period, stood at 34,097 oz from (Q2: 35,987 oz), at AISC of A$1,229 /oz from (Q2: A$1,146 /oz). The AISC was impacted by 6-week scheduled shutdown of the Ropecon, 100-hour plant maintenance and refresh of the mining fleet. During the period, the milled grade was at 1.83 g/t Au, fourth consecutive quarter record, driven by mining in higher-grade zones at the base of mining stages in Sorowar and Pigibo.
Outlook
The Guidance for FY19, after revision on 22 March 2019, has predicted Gwalia gold production to lie amid 235,000 to 240,000 ounces at an AISC of A$980 to A$1,000 per ounce, with sustaining CapEx of A$45 to A$50 million, plus growth CapEx of between A$60 to A$65 million.
The forecast for Simberi gold production lies amid 130,000 to 135,000 ounces (earlier 120,000 and 130,000 ounces) at an AISC of A$1,245 to A$1,300 per ounce (earlier A$1,275 to A$1,375 per ounce), with sustaining CapEx of A$9 to A$10 million.
However, the forecast for exploration expenditure has not been altered and is lying between A$25 and A$30 million as before, including of as following:
- AUD 12 to AUD 15 Mn for the Leonora zone.
- AUD 4 to AUD 5 Mn elsewhere in the Australian region, majorly at Pinjin zone in WA.
- AUD 9 to AUD 10 Mn on the Tabar Island group (inc. Simberi) in PNG.
The stock of the company, by the closure of the dayâs trading session, was at a price of A$3.130, up by 0.321% from its previous dayâs closing price (as on 18 April 2019). The companyâs market capitalisation is around A$1.64 billion with 525.99 million shares outstanding.
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