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St Barbara share price lifts 6% on record quarterly production

gold mining
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The St Barbara Ltd (ASX: SBM) share price is up by 6.69% today after the gold miner provided a production update. St Barbara announced full year gold production of 381,887 ounces, in line with its guidance of 370,000 to 400,000 ounces. 

What does St Barbara do? 

Named after the patron of miners, St Barbara is an Australian-based gold explorer and producer. The company has assets across Western Australia, Papua New Guinea, and Canada. Listed in 1969 as Endeavour Oil, St Barbara has focused on gold production since the early 2000s.

As at June 2019, St Barbara had resources of approximately 12 million ounces of contained gold including ore reserves of 5.9 million ounces of contained gold. 

What did St Barbara announce today?

St Barbara announced that it produced 108,612 ounces of gold during the June quarter, up from 91,547 ounces in the March quarter. This was the first time St Barbara produced more than 100,000 ounces of gold since Q4 FY18. Over the full year, 382,887 ounces of gold were produced, in line with guidance. 

The Atlantic Gold operation in Nova Scotia, Canada, produced a record 106,663 ounces of gold over the full year. The Gwalia gold mine in Western Australia produced 171,156 ounces of gold, recording improved production performance following an operational review. The Simberi mine in Papua New Guinea delivered 104,068 ounces of gold for the full year. 

Commenting on the results, St Barbara managing director and CEO Craig Jetson said, “the quarter indicated the potential of the company, with quarterly production of over 100,000 ounces for the first time in two years. 2020 marks a new era in the evolution of St Barbara.” 

About the St Barbara share price

St Barbara generated net cash of $86 million during the fourth quarter, ending FY20 with $406 million in cash and term deposits. The miner has benefitted from rising gold prices over 2020. The gold price has risen from below $2,300 an ounce in January to nearly $2,600 an ounce currently. 

The St Barbara share price has been on the rise since hitting a low of $1.66 in March and is now up 111% to $3.51 per share at the time of writing.

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Motley Fool contributor Kate O'Brien 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.

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