https://www.miningweekly.com

St Barbara swings to profit

St Barbara swings to profit

Photo by Bloombeg

26th August 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Gold miner St Barbara has swung back into profit for the financial year ended June, as a turnaround strategy was implemented at the Simberi mine, in Papua New Guinea, and the Gold Ridge project was divested.

The company reported a net profit after tax of A$39.6-million for the year, compared with a net loss of A$500.8-million in 2014. Earnings before interest, taxes, depreciation and amortisation were also up to A$167.5-million, compared with a loss of A$331.6-million in 2014.

Revenue for the year increased by 18% to A$551.4-million, from the sale of 382 104 oz of gold at an average gold price of A$1 439/oz.

“In 2015, we achieved each of the key objectives we set for ourselves at the start of the year, including increasing performance at Gwalia, turning around Simberi, resolving Gold Ridge and reducing costs,” said St Barbara MD and CEO Bob Vassie.

During the 2014 financial year, St Barbara had reported an impairment of A$411-million, which, at the time, reflected the indefinite suspension of mining operations at the Gold Ridge mine, in the Solomon Islands, as well as the slower-than-expected improvement in operational performances and a write-down of mineral rights at the Simberi project.

The Gold Ridge mine was divested in May, while a turnaround strategy was successfully implemented at Simberi, resulting in positive cash flows from the operation.

Gold production for the 2015 financial year increased to 377 387 oz, from 374 402 oz the year before, while all-in-sustaining costs (AISC) declined from A$1 340/oz in 2014 to A$1 007/oz, reflecting the benefits of the strong results achieved at the Leonar projects, the improved performance at Simberi and the removal of the Gold Ridge operation from the St Barbara portfolio.

“We are well positioned as we start 2016, with continued strong operating performances and promising growth opportunities at Gwalia and Simberi,” Vassie said.

St Barbara was targeting production of 319 000 oz to 369 000 oz of gold, at an AISC of between A$995/oz and A$1 080/oz for the 2016 financial year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Magazine video image
Magazine round up | 29 March 2024
29th March 2024

Showroom

SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.108 0.142s - 90pq - 2rq
Subscribe Now