St Barbara profit shrinks on PNG pickups

Gold miner St Barbara has slumped to a net profit of $2.5 million for the six months to December 31, driven down by its acquisition of the Gold Ridge and Simberi mines in Papua New Guinea during the period.

St Barbara announced today a 29 per cent increase in revenue for the half year, to $232.2 million.

The miner’s net profit, however, fell 95 per cent from the $46.5 million achieved in the previous corresponding half-year on the back of its PNG acquisitions.

St Barbara acquired the mines in a $556 million cash and scrip deal first announced in June last year.

The company’s Gwalia operation turned in a $9 million profit, while the Gold Ridge mine incurred an $11 million loss.

A $10 million impairment was also recorded as a result of the winding down of operations at St Barbara’s Southern Cross gold mine.

Gold production across St Barbara’s operations was up 11 per cent to 170,421 ounces.

The company said it would focus on restoring and improving infrastructure, mining and processing reliability at the Gold Ridge and Simberi mines in the second half of FY13.

At close of trade today, St Barbara shares were down 8.6 per cent, at $1.22.