19/02/2009 - 13:45

St Barbara to extend half-year loss

19/02/2009 - 13:45

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Gold miner St Barbara, which holds operations in Western Australia, expects to extend its half-year loss to some $44 million as a result of write downs and lower carrying values of listed investments.

Gold miner St Barbara, which holds operations in Western Australia, expects to extend its half-year loss to some $44 million as a result of write downs and lower carrying values of listed investments.

In an update today, the Melbourne-based company said it expects net loss after tax to be in the range of $38 million to $44 million, substantially higher from the previous corresponding period's $9.3 million loss.

St Barbara said the anticipated net loss included several exceptional items including a $6.4 million negative mark to market adjustment of listed equity investments.

Also, a $9 million write down is expected over the open pit operations at Southern Cross and a further write down of between $4 million and $10 million for its Leonora operation.

Additionally, the company expects to recognise restructuring and redundancycosts of $3 million.

Exploration expenditure for the period is expected at $13 million.

Gold revenue is forecast to be up 57 per cent to around $110 million while earnings before interest, tax, depreciation and amortisation will rise from $29 million to $34 million.

Cash in the bank at the end of the first half totalled $43.9 million, including a restricted cash of $23.4 million held by the Commonwealth Bank as security for bank gurarantees.

The company anticipates production for the second half of this financial year to be within 145,000 to 155,000 ounces of gold.

Meantime, St Barbara shares have been placed in a trading halt as the company seeks to raise up to $75 million through a private placement, managed by Southern Cross Equities.

Shares, which last traded at 46 cents, will resume trading on Monday.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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