PERTH (miningweekly.com) – Gold miner St Barbara is targeting a slew of cost-saving initiatives between now and 2024.
In its quarterly report for the period ended June, the company told shareholders that the move of its head office from Melbourne to Perth at the end of August would enable an initial A$5-million of embedded savings a year.
The miner earlier this year announced a strategic review of its Simberi operations, in Papua New Guinea, and a decision to defer a final investment decision on the sulphide expansion project as project costs balloon.
The company also announced a corporate restructure that would see its Melbourne office close in the coming months.
The miner said at the time that the significant cost inflationary pressures currently being experienced in the global project construction market, together with some project scope changes are resulting in a significant increase in the capital cost estimate relative to that calculated in the feasibility study.
“Having already identified A$5-million in ongoing cost reduction we have an aspiration to increase cost savings to A$10-million in 2023 with a further A$10-million in 2024,” said MD and CEO Craig Jetson.
St Barbara on Wednesday reaffirmed that full-year production and all-in sustaining cost (AISC) guidance for the year had been met across all sites, with group gold production up 40% in the June quarter to 86 403 oz, and reaching 280 746 oz in the full year.
AISC for the quarter was reported at A$2 007/oz while full-year AISC was reported at A$1 848/oz.
“St Barbara has finished the year strongly, achieving both our production and cost guidance at a site and group level for the 2022 financial year. Against the headwinds of cost inflation and Covid-19 impacts on our workforce availability, as well as associated travel restrictions, this is a rewarding result,” said Jetson.
“Management's focus on Gwalia and the Leonora province plan is generating early rewards with expansion of mineral resources and ore reserves and our expanded footprint across the region. We continue to execute our Leonora province plan.
“St Barbara is central to any regional consolidation with the largest mineral resource and ore reserve base in the Leonora region, a host of near term growth options, growing production from the new Zoroastrian underground mine and a cash generating processing facility which is expected to increase its processing capacity by 50% to 2.1-million tonnes a year. Following our acquisition of Bardoc, the assets have been promptly assimilated with Zoroastrian on track for first ore at the start of 2024,” Jetson added.
“Our development of the Leonora province has provided invaluable insights that we are now applying in considering alternative pathways for scheduling our Atlantic province projects, together with plans to maintain production at the Touquoy mine.
“With travel restrictions lifted, we have strengthened our relationships with the government and First Nations people in Nova Scotia. In collaboration with the government, a new permitting approach has commenced and has already yielded promising results with two permits already granted. These results provide encouragement that outstanding permitting issues can be addressed and the potential of Atlantic can be realised.
“Furthermore, our decision to place Simberi operations under strategic review is aligned with our clear focus on leveraging the highest value options for the St Barbara group.”