St Barbara Ltd (ASX:SBM) shares slump 9% after rosy quarterly report

Shares in Australian gold producer and explorer St Barbara Ltd (ASX: SBM) are down 9.4% to $4.51 at the time of writing off the back of its quarterly report, handed down yesterday.

St Barbara’s report for its fourth quarter to June 30, 2018 seemed rosy – with record production, $344 million cash at bank and operations at its Simberi project extended until FY21.

Investors responded well to the report yesterday, with St Barbara shares finishing July 26 trade up 2.6% at $4.98, only to drop well into the red today.

So what’s behind the slump?

It’s hard to say for sure, but it might have something to do with investor concerns over St Barbara’s plans to add to its portfolio and its quarterly presentation indicating lower production is expected out of Gwalia with a solid rise in AISC from $802 in FY18 to $920 FY19 with the same theme of lower production and higher costs for Simberi.

Evolution Mining (ASX: EVN) is also down 3.6% to $2.93 with Northern Star Resources Ltd (ASX: NST) down 1% to $7.28 – both paltry in comparison to St Barbara’s drop.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.