St Barbara cuts Gwalia production guidance

Image: St Barbara

St Barbara has revised its 2020 financial year guidance due to changing production expectations at its Gwalia gold mine in Western Australia.

Activities at the Gwalia extension project are competing for resources despite nearing completion.

The company reported the construction and raiseboring program was fighting for constrained ventilation with scheduled production and development activities.

St Barbara has subsequently lowered its 2020 financial year gold production for Gwalia from 200,000–210,000 ounces to 175,000–190,000 ounces.

The all-in sustaining cost (AISC) guidance for Gwalia has also increased from $1230–$1290/ounce to $1390–$1450/ounce.

“The investment in the Gwalia extension project has been fundamental to extending Gwalia’s mine life to 2031,” St Barbara stated.

“When complete in (the third quarter of 2020 financial year), Gwalia extension project will approximately double the underground ventilation, and (its) activities themselves will no longer compete for resources, enabling increased development and production.”

St Barbara’s production and cost guidance at its Simberi operations in Papua New Guinea, meanwhile, remains unchanged for the 2020 financial year. Its first quarter production and costs are in line with expectations.

The company has also set its 2020 financial year guidance for its Atlantic Gold operations in Canada, with production ranging between 95,000 and 105,000 ounces, and an AISC of between $900 and $955/ounce.

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