St Barbara Limited

Reported group production was 86,000 ounces of gold, up 40% quarter-on-quarter. All-in sustaining costs were down 12% to $207 per ounce quarter-on-quarter. Cash rose 25% to $99 million, after spending $28 million replacing the DSTP and funding $34 million of acquisitions such as Kin Mining and Nova Scotia Gold. Management said production and cost guidance were reached at all sites for FY22. FY23 guidance was not given on this call; management said it would be issued with full-year results in 2-3 weeks, after the Simberi strategic review and Nova Scotia tailings permit timing are clearer.

Craig Jetson framed the quarter as evidence that the business is now delivering repeatable operational improvement, saying production at all operations has been sustainably normalized and the last two quarters show the turnaround is real. He emphasized the Leonora province strategy as the core growth engine, highlighting low-cost plant expansion, new ounces at Old South Gwalia, and mine additions like Zoroastrian and Aphrodite. His tone was confident and expansive, but he repeatedly tied near-term guidance and capital plans to permitting risk at Atlantic and the strategic review at Simberi.

The call included limited formal CFO-style detail, but management highlighted the main financial drivers: 86,000 ounces produced, AISC of $207/oz, and cash of $99 million, with cash up 25% quarter-on-quarter. Jetson noted that the $99 million cash balance was after $28 million spent on replacing the DSTP and $34 million on acquisitions, which he used to underscore operating cash generation. He also pointed to an aspirational $10 million in cost reductions from consolidating corporate functions to Perth, and said the business remains cash flow positive at Leonora, citing $177 million from Leonora this year.

Analysts pressed management on why FY23 guidance was delayed, and Jetson said it was mainly because of the Simberi strategic review and the need to know whether Atlantic’s tailings permit comes through before setting numbers. Questions also focused on inflation and labor shortages; Jetson said he is not seeing relief yet in Western Australia and that equipment is not running near capacity because of labor constraints. On Simberi, management confirmed multiple parties are in the data room but said there is nothing binding, and on Atlantic they outlined several fallback scenarios, including care and maintenance at roughly a million dollars a month if permits are delayed.