St Barbara share price sinks 8% following dismal quarter

This gold miner is falling heavily again on Tuesday. But why?

| More on:
A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The St Barbara Ltd (ASX: SBM) share price is having another tough session.

In afternoon trade, the struggling gold miner's shares are down almost 8% to 18 cents.

This means the company's shares are now down over 20% this week.

Why is the St Barbara share price getting hammered?

On Monday, the gold miner's shares were sold off after it released its production and cost guidance for FY 2024. Today, the selling has been driven by the release of its first quarter update.

As you might have guessed from the St Barbara share price performance, perfectly timed for Halloween, that update was a bit of a horror show.

According to the release, St Barbara delivered gold production of 16,859 ounces for the quarter, which was down 59% from the fourth quarter. This comprises 6,480 ounces production at Touquoy (in its final quarter of production) and 10,379 ounces from the Simberi operation.

As for sales, St Barbara reported 15,579 ounces of gold sold, down 12.9% quarter on quarter, with a relatively flat average realised price of A$2,920 per ounce.

However, while that's a very healthy price to command for its gold, it wasn't enough to offset significantly higher costs.

Alarmingly, St Barbara reported an all-in sustaining cost of A$4,548 per ounce. This is more than double the prior quarter. It means it was operating with a negative margin of $1,628 per ounce for the quarter. Management advised that this was primarily driven by lower gold production due to lower grade and recovery and two plant shutdowns.

Guidance reaffirmed

Management has unsurprisingly reaffirmed the guidance it provided the market yesterday.

For Simberi, it continues to expect gold production of 60,000 to 70,000 ounces with an AISC of A$2,750 to A$3,050 per ounce. Based on the middle of this range, this would make it almost breakeven based on the last quarter's realised gold price.

Though, judging by the St Barbara share price performance today, some investors don't appear confident management will deliver on its guidance.

Should you invest $1,000 in Ampol Limited right now?

Before you buy Ampol Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Ampol Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Gold bars and Australian dollar notes.
Gold

ASX 200 gold stock leaps higher on record cash flow in Thursday's sinking market

The ASX 200 gold stock is bucking the broader market sell-off today as cash flows hit new highs.

Read more »

Rising price of gold represented by a share price chart and gold bars.
Gold

The gold price just booked its best quarter since September 1986. Where to now?

Up 19% in the first quarter of 2025, what can investors expect next for the gold price?

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Gold

Up 189% in a year, what's next for this ASX small-cap gold share?

This explorer has released details of a maiden drilling program amid the gold price smashing a new record.

Read more »

A gold bear and bull face off on a share market chart
Gold

Why gold is not immune from a pullback

For many gold is seen as a hedge against market volatility. But things don’t always go to plan.

Read more »

Woman with gold nuggets on her hand.
Gold

Big ASX news: Gold tops US$3,100 an ounce

Trump's new tariffs are spooking investors...

Read more »

a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.
Gold

ASX gold shares rally on another fresh record for the gold price

This corner of the market is dominating today.

Read more »

ASX gold share price.
Gold

Up 39% in a year, just how high will the gold price go?

At US$3,027 per ounce, the gold price keeps setting new record highs. Can this continue?

Read more »

Woman holding gold bar and cheering.
Gold

Up 50% in a month, why is this ASX All Ords gold stock surging again on Thursday?

The ASX All Ords gold miner is surging on Thursday even as the market sinks. But why?

Read more »