St Barbara Ltd today announced record fourth quarter gold production of 119,436 ounces, with record FY18 production at 403,089 ounces to accompany its strong balance sheet with $344 million in cash and term deposits and zero debt.
It’s certainly good news for the $2.49 billion market cap gold producer and explorer with the record result buttressed by improvements in mining and fixed plant operations, with higher grades mined near the sulphide/oxide boundary of its Simberi project in PapuaNew Guinea.
St Barbara investors are on watch for the full fourth quarter report to be handed down on July 25, with cash flow particulars, production costs, FY19 guidance and an update on growth projects to be detailed.
Shares in St Barbara have had a good year of rises, up 73% from its $2.81 share price at this time last year to sit at $4.87 at the time of writing.
While St Barbara has a long way to go before it reaches the heights of more prominent gold producer Evolution Mining Ltd (ASX: EVN), such possibilities are certainly on the cards for this determined company.
Newcrest Mining Limited (ASX: NCM) still dominates the ASX gold producers for now, with a market cap of $16.71 billion, Newcrest shares were up 1.2% to $22.02 at the time of writing.
Emerging $564 million market cap gold producer player Dacian Gold Ltd also provided an update to the market today which has so far seen Dacian shares jump 6.9% to $2.93.
The operational update revealed Dacian has met its maiden guidance of 34,155 ounces in the June quarter, coming in mid-way between its expectations of between 30,000 ounces and 40,000 ounces.
The production results pertain to Dacian’s 100% owned Mt Morgans gold operation in Western Australia and the company has reaffirmed its FY19 production guidance of between 180,000 ounces and 210,000 ounces.
Investors who have been following Dacian are buoyed with confidence by the results if the share price uptick is anything to go by.
Dacian shares have risen 47.9% from its $1.98 share price at this time last year to reach today’s $2.93 price.
In terms of emerging players it is certainly one to watch.
Another gold small cap, Silver Lake Resources Limited (ASX: SLR) has slid into the red today alongside big brother Evolution, with Silver Lake shares down 1.5% to 63c per share while Evolution shares slipped 0.7% to $3.46.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.