22/01/2020 - 15:38

St Barbara slumps on downgrade

22/01/2020 - 15:38

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Shares in St Barbara eased today after the company downgraded production forecasts at two of its goldmines, while fellow miner Regis Resources reported a strong quarterly result.

St Barbara slumps on downgrade
St Barbara has disclosed that production at its Gwalia mine in WA will be adversely affected by development issues.

Shares in St Barbara eased today after the company downgraded production forecasts at two of its goldmines, while fellow miner Regis Resources reported a strong quarterly result.

St Barbara disclosed that production at its Gwalia mine in Western Australia and its Simberi mine in Papua New Guinea would be adversely affected by development issues.

At Gwalia, the delay in completing the fourth and final raise bore has affected the company’s forecast development rates in the six months to June.

As a result, the mining sequence will not return to higher grade areas in the centre of the orebody until the end of the financial year.

Gold production has been cut to between 170,000 ounces and 180,000oz, previously 175,000oz to 190,000oz, and costs will also be slightly higher.

Forecast Simberi gold production has been cut to between 105,000oz and 115,000oz.

Forecast production at St Barbara’s Atlantic gold mine is unchanged, at between 95,000oz and 105,000oz.

Shares in St Barbara closed 4.3 per cent lower at $2.88 today.

In contrast, Regis shares were up slightly to $4.64 after it reported an increase in quarterly gold production to 90,849oz and stronger cash flow helped by the buoyant gold price.

Managing director Jim Beyer said the company was pleased with progress on its plans to develop the McPhillamys gold project in NSW.

He also pointed to pleasing exploration results at its Rosemont and Garden Well mines in WA.

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