St Barbara (SBM) Q1 2025 earnings summary

Executive summary

• Simberi Sulphides Expansion studies are ahead of schedule, aiming to accelerate first sulphide production by up to five months to Q1 Sep FY28, with key equipment deliveries and plant design underway.

• Q1 gold production reached 12,233 ounces at AISC of A$3,905/oz, up 18% year-over-year, while AISC decreased 14% year-over-year; stockpile build positions operations well for the remainder of FY25.

• Updated Atlantic Project PFS outlines an 11-year mine life with average annual gold production of 74koz at US$1,025/oz, and a post-tax NPV5 of A$468 million, pending improved permitting in Canada.

• No bank debt or hedging; total cash, bullion, and listed investments at A$194 million as of 30 September 2024, including A$86 million restricted cash.

Financial highlights

• Gold sales for the quarter totaled 12,949 ounces at an average realised price of A$3,733/oz.

• Operating cashflow was near breakeven after stockpile credits and sustaining capital; growth capital spending was A$12 million, and exploration spend was A$3 million.

• Working capital changes were offset by a A$25 million Catalyst share sale; listed investment portfolio reduced to A$24 million after the sale.

• No bank debt and no hedging; cash available for use at A$82 million, with A$86 million restricted for reclamation.

Outlook and guidance

• FY25 production guidance unchanged at 65,000–75,000 ounces of gold and AISC of A$3,200–A$3,600/oz; remaining quarters expected to deliver 18,000–20,000 ounces per quarter at AISC of A$2,800–A$3,400/oz.

• Simberi oxide mining can extend into FY29, with potential to optimize mining sequence for higher short-term production and cashflow if sulphide production is accelerated.

• Atlantic Project construction could commence within 12 months if permitting improves, with feasibility studies on renewable energy storage at Touquoy progressing ahead of schedule.