|Monday, 16 July 2012|
ST BARBARA has reported a strong quarter of production, culminating in its $A556 million takeover offer for Allied Gold.
|Southern Cross at night|
|Allied Gold and St Barbara's assets. Map and tables courtesy of both miners.|
June quarter production was 98,816 ounces, up 15% on the March quarter, while output for the 2012 financial year was 338,879oz, up 31% on 2011 and towards the upper end of its guidance of 320,000-350,000oz.
The quarter’s figure was helped by record production of 54,340oz at Gwalia at 10.5 grams per tonne gold at cash costs of less than $A600 an ounce.
The company said it expected the average grade of stopes mined in the current quarter to be 8gpt gold.
Overall, full year costs were within guidance of $790-830/oz, but the company would release final figures on Thursday.
St Barbara’s cash balance jumped by $48 million to $185 million, with an additional $4 million worth of gold in transit.
The cash will be useful as the company progresses its cash and scrip offer for Pacific Rim producer Allied.
St Barbara will offer $1.025 cash and 0.8 shares for every Allied share held in a deal recommended by Allied’s board and major shareholders of the two companies.
St Barbara has been punished by the market since the announcement, with analysts questioning the lack of synergies, as well as Allied’s high costs.
The company’s shares were trading at around $2.10-2.20 last month before the offer was announced but plummeted to a low of $1.30 on Friday, suggesting the company had more work to do to convince the market.
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