Fourth Quarter Results
31 Julho 2003 - 8:24AM
UK Regulatory
RNS Number:1795O
St. Barbara Mines Limited
31 July 2003
ACTIVITIES
REPORT
Three months to 30 June 2003
Enquiries regarding this report may be directed to:
Stephen W. Miller Executive Chairman
Telephone (08) 9476 5555
Overseas +61 8 9476 5555
or
Colin G. Jackson
Investor Relations
Telephone 0417 929 107
St Barbara Mines Limited
Level 2, 16 Ord Street
West Perth
Western Australia 6005
Telephone (08) 9476 5555
Overseas +61 8 9476 5555
Dollar values in this report are Australian Dollars unless otherwise stated.
St Barbara is a dedicated gold company listed on both the Australian Stock
Exchange and the AIM (London Stock Exchange) - ticker symbol SBM - with nearly
12,000 shareholders.
OVERVIEW
MEEKATHARRA OPERATIONS
Gold production 18,645 ounces, up 6.1 percent
- sourced almost entirely from Paddys Flat low grade stockpiles
Production cash cost lowered by $117 per ounce
FINANCE
* Meekatharra Operations
- cash operating surplus $2.3 million
The Company remains unhedged
Share placement raises $1.0 million
Short term debt reduced $5.0 million (post period end)
EXPLORATION
* Gold Fields Reedys Joint Venture commences
- 28,000 metre (475 holes) completed
PAULSENS PROJECT
* Project re-optimised for new development scenario
CORPORATE
* New constitution approved by shareholders
Ocean Resource Capital Holdings Ltd exercises Convertible Note at
13 cents per share
Dioro Exploration investment realised ($4.9 million post period
end) at a small profit
CHAIRMAN'S REVIEW
Meekatharra operations achieved consistent and sustainable performance
throughout the quarter. Based on Paddys Flat No. 1 and No. 2 low grade
stockpiles, mill throughput increased 21 percent to a rate of 3.0 million tonnes
per annum, gold production increased 6.1 percent to 18,645 ounces and, most
importantly, cash costs were reduced by $117 per ounce compared to the previous
quarter.
Meekatharra operations were cash positive, with the lower cash cost more than
offsetting a reduction in the spot realised gold price from $592 per ounce in
the March quarter to $535 per ounce. The Company remains unhedged.
Together with No. 3 stockpile, low grade material will be the predominant source
of mill feed for the next nine months. Preparatory work in the higher grade
orebodies at Paddys Flat, particularly Prohibition, continued.
Gold Fields Australasia Pty Ltd, completed its Year 1, $750,000 exploration
expenditure commitment on the Reedys joint venture post the end of the period.
A 28,372 metre RAB/aircore drilling programme further tested the Tough Go and
Turn of the Tide mineralised lines, and Gold Fields is planning - subject to
management approval - further RAB/aircore and RC drilling for the September
quarter, including testing beneath previous high grade intercepts on the Reedys
mineralised line.
Substantial management time was devoted to examining various options for the
development of Paulsens with a view to reducing the capital required for this
project. The result of this review is that a revised mine development could
lead not only to significant reductions in capital required but also to reduced
operating costs.
Prior to, and immediately post the year end, a number of financial initiatives
were taken to improve the balance sheet. These included a placement of new
shares, the sale of the Dioro investment at a profit (and immediate reduction in
short term debt), the early exercise of the convertible note and the restructure
of the convertible loan (increasing the amount in return for a lower exercise
price).
Shareholders were advised in April 2003 of a revision to the original three way
merger proposal between St Barbara, Geomaque Explorations of Canada and UK
unlisted company, Midas Gold plc. In June 2003, Geomaque and Midas shareholders
agreed to merge to form Defiance Mining Corporation, which is now listed on the
Toronto Stock Exchange. The listing of Defiance will provide the platform to
further progress the merger proposal.
Stephen W. Miller
Executive Chairman
31 July 2003
MANAGEMENT DISCUSSION AND ANALYSIS
PRODUCTION
Gold production at 18,645 ounces was a 6 percent improvement on the previous
quarter.
Mill feed comprised low grade stockpiles, predominantly Paddys Flat No. 1 and
No. 2 (formerly Central - from June 2003) stockpiles.
Mill throughput (equivalent to an annualised rate of 3.0 million tonne) was 21
percent higher than the previous quarter, influenced by the softer low grade
stockpile material. Plant circuitry optimisation continues.
Net operating cost at $433 per ounce was a significant improvement on the
previous quarter.
Outlook
A Notice of Intent to load and haul from No. 3 (Northern) stockpile was lodged.
Results from a short drill programme on four nearby small surface oxide deposits
are currently being assessed.
Detailed evaluation of the higher grade Vivians, Consols, Prohibition and Mickey
Doolan deposits at Paddys Flat continued. The primary focus is Prohibition with
a three hole programme scheduled to provide geotechnical data and samples for
metallurgical testwork to provide data for design of a partial refractory
flowsheet. A revised resource estimate for Prohibition is scheduled August/
September 2003.
Production and Sales Statistics
Period 3 Months to 12 Months to
30 June 2003 30 June 2003
Ore mined 0 483,041
(tonnes).........
Ore milled 741,211 2,284,599
(tonnes).........
Grade milled (g/ 0.94 1.47
t)...........
Recovery 83.6 89.7
(%)..................
Gold produced (ounces).. 18,645 96,611
Gold sold 18,947 98,080
(ounces)............
Production Cost Statement ($/oz)
Modified Gold Institute Standard
Period 3 Months to 12 Months to
30 June 30 June 2003
2003
Mine site cash costs...... 392 448
State royalties................ 24 17
Net Cash Cost................. 416 465
Mine development capital cost (4) 103
amortisation...................
Inventory movements. 21 7
Net Operating Cost........ 433 575
Realised Gold Price 535 572
St Barbara calculates cost of production using a modified Gold Institute
Standard. The modification is designed to clearly identify the actual cash cost
incurred, which is then normalised depending upon over or under development
against the life-of-mine plan.
The resultant 'net operating cost' per ounce is equivalent to the GI 'total cash
cost' per ounce.
FINANCE
Realised Gold Price
A total of 18,947 ounces was sold at a net realised gold price of $535 per ounce
(against an average spot price of $541 per ounce).
The Company delivered all production into spot. The Company has no hedge
positions.
Financial Performance
Meekatharra Operations generated a $2.3 million cash surplus for the quarter.
Financial Position
As at 30 June 2003, cash and bullion totaled $2.5 million (plus $3.3 million in
rehabilitation bonds).
Major cash movements during the period included placement and convertible note
proceeds ($3.9 million), asset sales ($0.8 million) and Paddys Flat acquisition
and performance bond payments ($1.4 million).
EXPLORATION
Gold Fields completed a 475 hole, 28,732 metre RAB and aircore drilling
programme to further test the Tough Go and Turn of the Tide mineralised trends
on the Reedys joint venture post the end of the period.
Gold Fields can earn an initial 51% interest in the 206 km2 tenements by the
expenditure of $3.5 million over three years. In completing the recent
programme Gold Fields has met the minimum Year 1 expenditure commitment of
$750,000.
At Tough Go, Gold Fields drilled 119 holes to test for high grade supergene and
primary mineralisation under previous shallow, sporadic low order RAB drill
intercepts. Results indicated higher grade areas to be limited.
Many results from the Turn of the Tide trend drilling - regional traverses
testing along strike from known gold mineralisation - are awaited.
Planned September quarter activity by Gold Fields - subject to management
approval - includes RC drilling at Tough Go and Turn of the Tide, and along the
Reedys mineralised trend to follow up on previous drill intercepts including 3
metres at 17.9 g/t, 4 metres at 13.0 g/t, 5 metres at 10.3 g/t and 12 metres at
10.1 g/t.
PAULSENS
The Company continued to evaluate the alternatives to advance the Paulsens
development project.
Results of this review showed that a revised mine development plan could lead to
substantial reductions in capital required for start-up and also reduced
operating costs. Work continued to firm up the revised development plan.
Information in this report relating to ore resources conforms to the reporting requirements of the Australasian Code
for Reporting of Identified Mineral Resources and Ore Reserves (The JORC Code). It is based on information compiled by
Mr Graham Miller, FAusIMM, a Competent Person as defined by the Code. It is included in this report with his consent.
CORPORATE INFORMATION
Board of Directors and Executive Issued Capital Shareholder Enquiries
Management
As at the date of this report, issued Matters related to shares held,
S. W. Miller.Executive Chairman capital is 431,464,225 shares. change
of address and tax file numbers
There were 44,329,772 listed options, should
K. A. Dundo.... Non-Executive exercisable at 30 cents up until 29 be directed to:
Director February 2004 and 71,682,563 unlisted
options exercisable at various prices Australia:
G. B. Speechly Non-Executive between 11 cents and 40 cents up to 17 Advanced Share Registry Services
Director January 2008. Level 7, 200 Adelaide Terrace
Perth WA 6000
H. G. Tuten...... Non-Executive
Director Telephone:...+61 8 9221 7288
Major Shareholders Facsimile: +61 8 9221 7869
A. D. Rule. Chief Financial Officer National Nominees 11.16%
and Company Secretary Westpac Custodians 10.64%
Resource Capital Fund II LP 7.89%
Strata Mining Corporation Ltd... 7.46%
ANZ Nominees 3.72%
United Kingdom:
Substantial Shareholders Computershare Investor Services PLC
RAB Europe Fund Ltd. 10.43% PO Box 435, Owen House
Strata Mining Corporation Ltd.. 8.39% 8 Bankhead Crossway North
Resource Capital Fund II LP 7.89% Edinburgh EH11 4BR
Telephone:...+44 870 703 6088
Facsimile: ...+44 870 703 6142
Registered Office
ADR Depositary
Level 2, 16 Ord Street The Bank of New York
West Perth WA 6005 ADR Division
101 Barclay Street
Telephone:. +61 8 9476 5555 New York NY10286 USA
Telephone:.... +1 212 815 2218
Facsimile:..+61 8 9476 5500
Email: perth@stbarbara.com.au
Website: www.stbarbara.com.au
Stock Exchange Listings
Australian Stock Exchange
AIM Board of London Stock Exchange
Ticker Symbol: SBM
This information is provided by RNS
The company news service from the London Stock Exchange
END
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