St Barbara Revises FY2019 Production Guidance; Shares Traded Down On ASX Today

  • May 31, 2019 AEST
  • Team Kalkine
St Barbara Revises FY2019 Production Guidance; Shares Traded Down On ASX Today

St Barbara Limited (ASX: SBM), an Australian Securities Exchange-listed gold miner and producer, has notified the market regarding the revised the production guidance for 2019.

The company mentioned that the nature of ore bodies at Gwalia mine requires a sequential mining schedule and the mine is currently ventilation constrained. The sequential mining schedule and delay in the mining of a stope on the 1660 level at the Gwalia mine occurred as a result of temporary blockage in the paste reticulation circuit to the underground workings. An associated delay in resuming paste-filling of open stopes has further added to the delay in the planned sequential mining.

The stope on the 1660 level, which was scheduled for production in June 2019, hosts 56,000 tonnes of ore with an estimated average grade of 8.3g/t of gold, accounting for 14,900 contained ounces of gold.

SBM mentioned that it would commence the paste-fill operations in the current week, and the estimated remediation cost of the process is not material.

Under normal circumstances such an event could be managed within a financial year; however, the ventilation considerations coupled with other activities require a fill construction of the remaining Gwalia Extension Project. As the delay of production is unavoidable, the revenue and cost considerations of mining the above-mentioned stope would be deferred to the financial year 2020 (i.e. July 2019); hence, the company needed to revise the guidance of the financial year 2019.

The estimated production of Gwalia mine now stands at approx. 220,000 ounces of gold for the financial year 2019, downgraded from the previous production guidance of 235,000 to 240,000 ounces of gold.

The revision in the production guidance also marked an increase in All In Sustaining Cost (AISC) for the current quarter amid production loss and lower production volume.

The consolidation production guidance has also been revised to approx. 355,000 ounces from the previous level of 365,000 ounces to 375,000 ounces.

SBM mentioned that the Simberi prospect is well on its way to the production level of approx. 135,000 ounces in the financial year 2019, higher than its previous production guidance of 130,000 ounces to 135,000 ounces of gold.

St Barbara recently acquired the Atlantic gold at an enterprise value of A$854 million for which the company raised an institutional placement of $355 million during stage one.

In a recent presentation , the current Managing Director and CEO, Bob Vassie mentioned that Australia contains significant gold reserves and accounted for 10% of the global gold production in 2017.

Source: Company’s Report

However, the presentation also suggested that expenditure of Australia in gold exploration is inching up, and Australia’s share in global gold production are relatively going down.

Source: Company’s Report

Price actions:

The share prices of the company are moving in a downward direction from the past four months. The shares dropped from the level of A$5.152 (Day’s high on 20th February 2019) to the current level of A$2.560.

During the trading session today, the shares of the company marked a significant gap-down opening and plunged to the level of A$2.480 (day’s low) before ending the day’ session down by 5.882% from its previous close at A$2.560.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK