The St Barbara Ltd (ASX: SBM) share price surged 2.75% higher at today's close after a solid half-year earnings result.
What happened in the first half?
During the first half, Mount Gibson delivered a statutory net profit after tax (NPAT) of $83 million, down from $106 million in 1H18. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin came in at 45% while cash flow from operating activities fell $33 million to $95 million in the half.
On an underlying basis, the company saw EBITDA fall 8.6% to $148 million while underlying NPAT declined 21.4% to $98 million for the half.
Consolidated half-year production of 188 thousand ounces (koz) of gold at an all-in sustaining cost of $1,008 per ounce was a solid result.
Earnings per share (EPS) fell from 21 cents in 1H18 to 16 cents in 1H19 on the lower NPAT result. However, in good news for shareholders, management maintained the fully-franked dividend per share (DPS) at 4 cents in the half.
The company currently has no debt and is in a strong cash position with $357 million cash at bank in 1H19.
Management also upgraded full-year production guidance at its Simberi mine and the Gwalia Extension Project remains on schedule.
Foolish takeaway
Today's St Barbara share price jump is largely due to the record half-year production from the group's Simberi mine but I think there are better options for gold exposure on the ASX including Northern Star Resources Ltd (ASX: NST) or Newcrest Mining Ltd (ASX: NCM).
But if you're bearish on gold then I would suggest you check out these top growth shares that have been tipped as market beaters.
