The St Barbara Ltd (ASX: SBM) share price has sunk 4% lower in early trade after the Aussie gold miner's quarterly update missed expectations this morning.
What did St Barbara announce this morning?
Management reported consolidated gold production for the quarter ended 30 June 2019 (Q4 Jun FY19) was 86,197 ounces (Q3 Mar FY19: 88,358 ounces) while full-year production came in at 362,346 ounces (FY18: 403,089 ounces).
Investors appeared spooked by the lower production numbers, while an all-in sustaining cost (AISC) of $1,219 per ounce for the quarter saw the company's full-year AISC climb to $1,080.
These numbers compare unfavourably to 2018 figures, with last year's AISC of $891 boosting profitability for the Aussie gold mining group.
St Barbara reported Gwalia gold production in Western Australia for Q4 June FY19 was 49,966 ounces (Q3 March FY19: 54,261 ounces) at an AISC of $1,230 per ounce (Q3 Mar FY19: $1,016 per ounce).
Mined grade for Q4 June FY19 was 10.0 grams per tonne (g/t) of gold (Q3 March FY19: 11.7 g/t Au) with 161 kilotonnes (kt) ore milled (Q3 Mar FY19: 150 kt). Full-year production was 220,169 ounces, with full-year AISC of $1,027 per ounce (FY18: 268,428 ounces at AISC $802 per ounce).
At its Simberi site in Papua New Guinea, gold production for Q4 June FY19 was 36, 231 ounces (Q3 Mar FY19: 34,097 ounces) at AISC of A$1, 203 per ounce (Q3 Mar FY19: A$1,229 per ounce).
Full-year production was 142,177 ounces, with a full-year AISC of $1,162 per ounce (FY18: 134,661 ounces at an AISC A$1,068 per ounce).
In regards to the company's Atlantic Gold acquisition, St Barbara reported gold production for the quarter of 22,948 ounces with production from the company attributable to St Barbara from 19 July 2019 onwards.
On 19 July 2019, St Barbara gained control of Atlantic Gold Corporation following the successful completion of the acquisition, which was first announced on 15 May 2019.
Positively for investors, St Barbara reported that the Gwalia Extension Project remains on schedule, with the overall project budget of $112 million unchanged.
Foolish takeaway
This morning's negative reaction to the company's quarterly results continues a disappointing year for investors, who have seen the St Barbara share price slide 23% lower since the start of January 2019.
Compared to many of its ASX gold mining peers, the St Barbara share price has underperformed so far in 2019 with signs that the August reporting season may bring more disappointment for the company's shareholders in the short-term.
