Insights

St Barbara (ASX: SBM) share price drops, maintains full-year guidance

The gold production company’s share price is falling this morning…
The post St Barbara (ASX: SBM) share price drops, maintains full-year guidance appeared first on The Motley Fool Australia. –

The St Barbara Ltd (ASX: SBM) share price is lower in early trading as the gold exploration and production company released its Q1 FY22 earnings.

At last check, St Barbara shares were changing hands at $1.51 apiece, down 1.95% from the open.

St Barbara share price XXX as Q1 production slumps

St Barbara detailed several investment takeouts in its report, including:

Group gold production of 67,000 ounces, a 19% decrease from the previous quarter and 8% down year on year
Leonora gold production up 15% quarter-on-quarter to 51,757 ounces
Group All-In Sustaining Cost (AISC) 8% lower quarter on quarter at $1,492 per ounce
Aspiration for a new open pit at Trevor Bore by 2024
Drilling at the Trotsky prospect at its Simberi operations has identified additional oxide mineralisation
Syndicated financing agreement AUD$200 million and CAD$100 million extended to July 2025
Maintains full year gold production guidance in the range of 305,000 to 355,000 ounces.

What did St Barbara get up to in the first quarter?

Overall gold production for St Barbara came in 19% lower than the previous quarter and 8% down compared to the same time last year at 67,000 ounces.

Total gold sold was also lower this quarter with around 57,918 ounces recognised versus 95,535 ounces last quarter and around 66,000 ounces in Q1 last year.

However, the company did manage to secure a higher realised gold price of $2,408/oz on both the previous quarter and the same period in Q1 FY20.

A chunk of this sale price and volume was driven by the company fulfilling “9,000 ounces delivered to call options that matured in the quarter at a strike price of $2,213 per ounce”.

St Barbara also explained much of the drop in production this quarter came from its Simberi operations remaining offline while repairs continued on its deep-sea trailing placement (DSTP) pipeline.

It is expected to return online and into production by the end of the second quarter in FY22.

Whilst it experienced headwinds from its other sites, the company’s Leonora operations saw its gold production actually increase 15% quarter on quarter to 51,757 ounces.

The company also managed to secure a lower all-in sustaining cost (AISC) on its gold production of $1,492 per ounce, an 8% decrease from the prior quarter.

Furthermore, St Barbara left the quarter with $42 million on its balance sheet – down from $133 million in June. This followed a flurry of capital spending including net investments of $21 million and a dividend payout of $13 million.

Aside from this, drilling at the company’s Trotsky prospect at its Simberi site has “identified additional oxide material to extend the operating life before the conversion of the processing plant to sulphide treatment”.

What did management say?

Speaking on the announcement, St Barbara managing director and CEO Craig Jetson said:

Exploration at both Leonora and Simberi have yielded strong results in the last quarter demonstrating the upside in our brownfield portfolio. I have set the aspiration of a new open pit commencing operation at Trevor Bore in 2024. This is the first step in delivering on our Leonora Province Plan.

What’s next for St Barbara?

From the momentum sustained this quarter, the gold giant maintains its full-year production guidance of 305,000 to 355,000 ounces of gold.

St Barbara forecasts it can achieve this production at an AISC range of $1,710 to $1,860/oz.

The bulk of the company’s forecasts appear to be underlined by its Leonara operations where it models overall gold production of 180,000 to 200,000 ounces.

However, it also sees 60,000 to 70,000 ounces of gold coming from Simberi and 65,000 to 85,000 ounces from its Atlantic operations for FY22.

It has been a difficult year for the St Barbara share price, having posted a loss of 35% since January 1 and a 45% drop over the last 12 months.

The post St Barbara (ASX: SBM) share price drops, maintains full-year guidance appeared first on The Motley Fool Australia.

Should you invest $1,000 in St Barbara right now?

Before you consider St Barbara , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and St Barbara wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Friday

5 things to watch on the ASX 200 on Friday

5 things to watch on the ASX 200 on Friday

ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract

5 things to watch on the ASX 200 on Friday

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!