The St Barbara Ltd (ASX: SBM) share price is up 1.50% to $4.09, after the gold miner released a positive update on its production guidance. The stock is up more than 50% over the past 52 weeks.
What was in the update?
As expected, the quarter to March 31 was one of low production – 86,000 ounces, 14% less than the previous quarter – due to some operational changes in the Gwalia mine and a 7-day production loss from a work stoppage at Simberi mine in March.
CEO Bob Vassie remarked that cash flow generation remained strong throughout the quarter and St Barbara cash balance continues to increase. As at March 31, total cash at bank was $262 million, 21% up from the previous quarter, and the company had no debt.
Furthermore, St Barbara expects a strong final quarter, and lifted its production guidance for FY2018 to the range of 375,000 ounces to 392,000 ounces, compared to the previous forecast of 365,000 ounces to 385,000 ounces.
St Barbara will provide more information – including production costs, cash flow details and an update on the company's growth projects – in its quarterly report on April 19.
