St Barbara hits production target amid takeover talks

Gwalia. Image: St Barbara.

St Barbara has met its revised 2019 gold production guidance, while remaining on track to acquire Canada’s Atlantic Gold.

The company reported 362,346 ounces of gold during the 2019 financial year, in line with its revised guidance of 360,000 ounces.

St Barbara produced nearly 50,000 ounces of gold during the quarter and 220,169 ounces for the full year at Gwalia in Western Australia.

Its Simberi mine in Papua New Guinea delivered a near-record 36,231 ounces of gold in the fourth quarter and a record 142,177 ounces for the full year.

St Barbara attributed Simberi’s performance to a record recovery mark (87.4 per cent) and higher grade ore being mined in a “supergene enriched” zone adjacent to the sulphide/oxide boundary in the Sorowar South pit.

The gold miner lowered its Gwalia production guidance from the previously anticipated 235,000–240,000 ounces after experiencing a blockage in the underground paste reticulation circuit.

St Barbara and Atlantic Gold are, meanwhile, still proceeding with the closing conditions of the agreement they announced in May.

The former plans to acquire 100 per cent of Atlantic’s outstanding shares and options for $779 million.

St Barbara reported a total cash of $890 million as of June, while retaining an undrawn $200 million three-year debt facility.

Atlantic has scheduled a shareholder meeting and vote on July 16, with the acquisition expected to complete in the same week.

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