St Barbara suffers $18 million FY loss

Higher exploration costs have dented gold miner St Barbara Ltd's full year earnings loss, which plummeted to a loss of $17.3 million, down from the previous year's net loss of $2.9 million.

Exploration costs over the reporting period increased from $23.7 million to $37 million, as the company seeks to expand its resources to underpin long-term production at its Southern Cross and Leonora operations.

The bottom line was also impacted by net realised and unrealised gain on gold put options of $16.8 million, up from $6.9 million, and an unrealised loss on available for sale assets of $4.9 million.

Sales revenue over the year increased from $131 million to $143 million on the back of a higher gold price of $A907 per ounce with over 157,000 ounces sold, slightly lower from fiscal 2007's 167,065 ounces that were sold.

Cash operating costs were higher at $555 per ounce, up from $508/oz.

Earnings before interest, tax, depreciation and amortisation was down from $28.4 million to $12.3 million.

The company is has started operations at its Gwalia gold mine with gold production expected to start next month.

St Barbara is targeting gold production of between 259,000oz and 315,000oz in the 2009 financial year.