Page 34 - gmj141-Oct-Dec-mag-web

DIGGERS & DEALERS PREVIEW

Building

towards

brilliance

Consolidated gold production of between 370,000oz and
410,000oz at an AISC of $1,360-1,510/oz is guided by St Barbara
from its Leonora, Simberi and Atlantic Gold operations in FY2021.
by Mark Andrews Sustaining capex of $97-115 million, plus growth capex of
between $49- $57 million is also the forecast for the same period.
Pictured is Kate McKenzie at the Atlantic Gold operations

nder Bob Vassie’s five-year reign, St Barbara Ltd $128 million and cash flow from operations of $280 million,
Utransitioned from struggling miner to leading diversified giving St Barbara cash at bank and term deposits totalling $406
Australian mid-tier gold producer. million (June 30), which was used to pay down debt to $107
Now Vassie’s replacement as managing director and chief million at the end of July.
executive, Craig Jetson – formerly executive general manager, A fully franked dividend of 4c/share was returned to shareholders
Cadia, Lihir and global technical services for Newcrest Mining who would be pleased that the Gwalia extension project and
Ltd – has mapped out the company’s next course of action: integration with Atlantic Gold had been completed.
Building brilliance. The Atlantic Gold acquisition was further consolidated recently
“We have a view about how to connect all our operations, where with St Barbara’s wholly-owned subsidiary, Atlantic Mining
the value leakage and where the underperformance is. There NS, cleaning up Moose River Resources for full control of the
is so much untapped value in St Barbara from a brownfields Touquoy gold operation (FY2020: 106,663oz) and surrounding
perspective and I am quite encouraged by what is in the tank,” tenements.
Jetson told GMJ from his current base on the Sunshine Coast. The $61 million cash deal offered for Moose River was funded
“We have recruited exceptionally well, changed a few people from St Barbara’s existing bank and boosts the company’s
and added three GM-level females into the organisation; exposure in the Moose River Corridor and more broadly in Nova
diversity and inclusion is something that I am passionate about Scotia.
and we’re morphing into the next level of thinking around that. “Sitting back as bench coach for the last couple of months
“I am certainly going to be able to come out in a few months’ has enabled me to have a look at the entire company, get my
time and say, ‘this is the new St Barbara brand, and this is how mind around Moose River and allowed me to negotiate a good
we are going to grow’.” outcome there where we own 100% of that facility plus the
Jetson has hardly been presented with an ideal scenario to growth and development potential there,” Jetson said.
start as St Barbara’s main man and while he told GMJ about “Earlier in the year I spent a couple of weeks at Simberi before
the frustrations of doing things during an uncertain COVID-19 my travel permit was removed [for COVID reasons] to get an
environment, he said the situation was “not all bad”. understanding of what I need to do there.”
“Lockdown is certainly not ideal, but I am in no position to A $5.4 million feasibility study and ESIA on the Simberi sulphide
complain. Our business has been struggling in many ways, but project is expected to be completed in December, with the
safety has been good, production has been good, costs have company hoping for a somewhat seamless decision to proceed
been OK, and I have a great team around me,” Jetson said. by Q3 FY2021.
FY2020 was highlighted by EBITDA of $339 million, NPAT of The updated sulphide PFS released in March on Simberi

Page 34