PERTH (miningweekly.com) – Lower grades and equipment availability issues has resulted in gold miner St Barbara reporting lower outputs in the first quarter of its 2023 financial year.
For the three months to September, St Barbara produced 63 700 oz of gold, down from the 86 000 oz produced in the June quarter, and the 67 000 oz produced in the previous corresponding period.
The miner told shareholders that group production was lower than anticipated owing to slower-than-anticipated ramp-up in underground mine equipment availability and utilisation impacting production at Leonora.
The Leonora operations produced 34 078 oz during the quarter under review, down from the 50 506 oz delivered in the previous quarter.
Production from the Atlantic operations, in Nova Scotia, declined from 18 015 oz in the June quarter to 11 492 oz in the September quarter, in line with expectations, on the back of lower mined grade and increased stockpile processing.
At Simberi, in Papua New Guinea, St Barbara produced 18 130 oz of gold, up from the 17 882 oz in the June quarter.
The miner noted that the all-in sustaining costs at Simberi were higher than expectation, at A$2 754/oz, primarily owing to higher diesel prices, the Australian dollar depreciating against the US dollar and increased maintenance costs as the site worked through the backlog of work generated during Covid-19 restrictions.
Meanwhile, mining reviews and oxide exploration work supporting the strategic review of Simberi have identified additional oxide ore, which has the potential to extend the processing of oxide ore through 2025.
St Barbara told shareholders that no decision was required on the sulphide project for at least 12 months while maintaining business continuity and as a result, the company would not be investing capital on the project in 2023.
The strategic review continues to progress with a number of interested parties currently conducting due diligence.
Looking ahead to the 2023 financial year, St Barbara has set a production guidance of between 260 000 oz and 290 000 oz, at an all-in sustaining cost of between A$2 250/oz and A$2 500/oz.
In terms of capital cost guidance, the miner has set a sustaining capital expenditure guidance of between A$70-million and A$90-million, with a further A$53-million to A$70-million to be spent on growth projects in 2023, which will include the Leonora processing plant expansion to 2.1-million tonnes a year, development of the Aphrodite underground mine and refractory ore treatment capability at Leonora.