St Barbara Limited

St Barbara reported group production of 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 increased 25% to $99 million, after $28 million spent on replacing the DSTP and funding $34 million of acquisitions such as Kin Mining and Nova Scotia Gold. Management said the company reached both production and cost guidance at all sites for FY22. For FY23, the company said it would provide guidance in 2 to 3 weeks with full-year results, and that guidance would reflect the Simberi strategic review and the Nova Scotia tailings permit timing.

Craig Jetson framed the quarter as evidence that the business is stabilizing and that recent improvements are repeatable. He emphasized the Leonora province strategy, saying the company is finding more resources, filling the mill, and building a low-cost pathway to growth through Gwalia, Bardoc, Zoroastrian, Aphrodite, and future exploration. His tone was notably confident and upbeat, but he acknowledged safety, labor availability, and permitting as still important issues.

The call included limited formal CFO-style commentary, but management highlighted several financial points: cash rose to $99 million, AISC improved to $207/oz, and the company still had cash after $28 million spent replacing the DSTP and $34 million on acquisitions. Jetson also said St Barbara expects about $10 million of cost reductions from consolidating corporate functions to Perth. On capital allocation, management said growth can be funded organically, citing $177 million of cash flow from Leonora this year.

Analysts pressed management on why FY23 guidance was delayed, and Jetson said the main reasons were the Simberi strategic review and uncertainty around Nova Scotia tailings permitting, not a hidden transaction. Questions also focused on whether cost and labor pressures were easing; management said labor availability remains tight and operations are still not running near capacity because of those constraints. On Atlantic, analysts asked about worst-case outcomes if permits slip, and Jetson outlined a care-and-maintenance scenario costing about a million dollars a month while preserving permitting and restart options. Questions on Simberi and Genesis transactions drew a non-committal answer: talks are ongoing, but no decision has been made and there are no binding offers.