St Barbara (ASX:SBM) share price slides 5% after quarterly results

An early dive for the ASX gold miner on its latest results.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The St Barbara Ltd (ASX: SBM) share price has dipped into the red in early trading. This comes as the company released its quarterly results earlier this morning.

Let's comb over St Barbara's results in a bit finer detail.

Red arrow on gold bars going down.

Image source: Getty Images

A quick recap on St Barbara

St Barbara is a gold mining company that has interests at Leonora, Simberi and Atlantic sites. It has a geographical footprint in both Australia and Papua New Guinea.

It derives the bulk of its revenue from the Leonora site through the Gwalia underground mine.

St Barbara has a market capitalisation of $1.25 billion at the time of writing.

St Barbara's quarterly results

Fourth-quarter gold production came in at 82,698 ounces, a 24% decrease from the year prior.

All-in sustaining costs (AISC) of $1,623 per ounce came in 2% lower than the previous quarter and also more than $300 lower than the same time last year.

The company also recorded full-year gold production of 327,662 ounces on an AISC of $1,616/ounce.

St Barbara also outlined it had seen "significant improvements in operating performance" this quarter, with "record mill throughput rates" at the Atlantic site.

In addition, the Gwalia mine produced its "highest quarter of mill throughput in five years", despite headwinds incurred from a change in mining contractor.

Moreover, the Simberi site was granted conditional approval to recommence mining. Operations were halted at the site after the death of a worker last month and issues were found with a waste disposal pipeline. Processing at Simberi should recommence at the end of FY22, according to the company.

Additional takeouts

Back in June, St Barbara announced its "Leonara Province Plan", adding "~1.4 million ounces to the existing 5 million ounces of gold in Mineral Resources".

In early July, the company also acquired a 19.8% stake in Kin Mining NL (ASX: KIN).

Kin has 1.2 million ounces of "gold resources" near Leonara and has "exploration upside potential".

St Barbara also provided some colour on FY22 guidance in the report.

It sees FY22 consolidated gold production between 305,000 – 355,000 ounces of gold on an AISC of $1,710 – $1,860/ounce.

Guidance includes the "latest mine plan" at Atlantic, which estimates "lower than expected" ore grades.

Forecasts are "marginally weighted to H2 FY22" as processing at Simberi is aimed for a restart in December during that time.

St Barbara CEO Craig Jetson stated in the report:

All our operations rose to the challenge posed by the second year of the global COVID-19 pandemic and a difficult operating environment with rolling border closures causing additional challenges.

Consequently, investors seem unsatisfied with the company's results today, as shares exhibited high selling pressure from the open.

At the time of writing, St Barbara shares have recovered from their early dive, down 0.28% on yesterday's closing price, currently trading at $1.77 a share.

St Barbara share price snapshot

The St Barbara share price has posted a year to date loss of 25%, extending the previous 12 months' loss of 53%.

Both of these returns have lagged the S&P/ASX 200 Index (ASX: XJO)'s return of ~23% over the past year.

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.

More on Share Market News

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough Friday session to end the week for investors.

Read more »

A young man looks like he his thinking holding his hand to his chin and gazing off to the side amid a backdrop of hand drawn lightbulbs that are lit up on a chalkboard.
Broker Notes

Brokers name 3 ASX shares to buy right now

Let's find out which shares top brokers are feeling bullish about this week.

Read more »

A smiling pink piggy bank graduates after years of growth.
Share Market News

Wilson Asset Management says CGT tax changes will 'redirect' investment toward yield

Fundie says income-producing assets are set to become 'comparatively more attractive'.

Read more »

A bored man sits at his desk, flat after seeing the latest news on the share market.
Share Fallers

Why Aeris, Newmont, PLS, and REA Group shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today

These shares are ending the week in a positive session despite the market decline.

Read more »

Medical workers examine an x-ray or scan in a hospital laboratory.
Healthcare Shares

Why this red-hot ASX healthcare share keeps climbing

A 1,600% gain hasn't slowed this stock down.

Read more »

Close up portrait of happy businesswoman standing in front or leading her multi-ethnic corporate team.
Broker Notes

Morgans recommends these ASX shares as buys

Broker buy calls are not guarantees, but these three Morgans recommendations are worth a closer look.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Market News

Why is the ASX 200 sinking to a 5 day low today?

The ASX 200 is under pressure as heavyweights fall.

Read more »