Gold miner St Barbara tumbles after production guidance cut
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More news: Shares in St Barbara Ltd. dropped more than 4% to 22 cents in early trading after the gold miner slashed its full-year production guidance for its main Simberi mine in Papua New Guinea due to lower-than-expected average mined grade. The miner now expects full-year gold output between 55,000 ounces to 65,000 ounces, down from its previous estimate of 65,000 to 75,000 ounces, while all-in sustaining costs are expected to rise to between $3,900 and $4,200 an ounce.
St Barbara slashes full-year production guidance
The news: Gold miner St Barbara has slashed its full-year production guidance for its main Simberi mine in Papua New Guinea due to lower-than-expected average mined grade.
The numbers: The miner now expects full-year gold output between 55,000 ounces and 65,000 ounces, down from its previous estimate of 65,000 to 75,000 ounces. All-in sustaining cost is now expected to be between $3,900 and $4,200 an ounce, up from its earlier estimate of $3,200 to $3,600 an ounce.
The context: The company said Simberi did not achieve the targeted face positions in two of its key mining locations resulting in lower than anticipated average mined grade for the second half. A relatively poor first half, when St Barbara widened its underlying loss, has also weighed on the outlook.
The gold miner’s wholly owned subsidiary Simberi Gold, was hit with a $210 million tax bill from Papua New Guinea's Internal Revenue Commission in December.
The source: ASX
