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.