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Leonora assets sale delivers millions for St Barbara

St Barbara

With St Barbara having completed its sale of its Leonora assets to Genesis Minerals, it has reported a closing cash balance of $294 million as of June 30 2023.

The news comes following a strong June quarter (Q4) performance for the 2023 financial year (FY23) from all of St Barbara’s operations, including the Atlantic operations and the Simberi operations, with final reconciled gold production expected to fall in the mid to upper end of guidance range.

St Barbara has reported a receipt of cash proceeds of $370 million from the sale of the Leonora assets to Genesis Minerals, which included the Gwalia underground mine, Leonora mill, Tower Hill project, Zoroastrian project, and the Aphrodite and Harbour Lights refractory projects.

Genesis managing director Raleigh Finlayson said the recent transaction has created a leading Australian gold house that is 100 per cent focused on the Leonora assets.

“Most importantly, we can now get on with the job of unlocking the unique synergies and delivering the long life, ‘margin over ounces’ Leonora business plan we have clearly articulated to shareholders” Finlayson said.

“The next six months will be focused on a strategic review of Gwalia, rebuilding the foundations to ensure a new lease of life for this prolific gold asset.

“On behalf of Genesis, I would like to thank St Barbara for its co-operation throughout the transaction and extend a warm welcome to our new colleagues at the Gwalia operation who are now part of the Genesis team.”

Other financial highlights from St Barbara’s announcement includes its debt facility being closed out with a payment of $159 million, and strong operating cashflow increasing the cash position by approximately $46 million.

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