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St Barbara set up for growth

St Barbara has released its 2024 financial year (FY24) outlook report and updates on its Atlantic and Simberi operations.

St Barbara has a range of strategic focuses for its Atlantic and Simberi operations, with an emphasis on exploration and expansion.

Capital investment of $8 million has so far been committed to the company’s Atlantic growth strategy, with a further $13-15 million expected to be invested by the end of FY24.

The investment will largely be used for the standalone 15-Mile project in Nova Scotia, which the company completed a pre-feasibility study on earlier in October.

St Barbara also aims to provide an update on the Beaver Dam mineral resource and ore reserve in FY24, and drill testing of extensions of mineralisation at Cochrane Hill will be carried out in Q3 and Q4 so that project surface infrastructure design work can be advanced.

Capital investment in the Simberi growth strategy is anticipated to be between $10 and $13 million in FY24.

The funds will be used to undertake a resource definition drilling campaign, engineering studies on flow sheet optimisation, process plant design efficiency, mine fleet selection, and pit wall angle steepening.

The company also announced the finalisation of working capital adjustments related to the transfer of the company’s Leonora assets in Western Australia to Genesis Minerals.

At the end of Q1 September FY24, the company held a cash balance of $236 million, with outstanding payables for taxes and transaction related costs having been paid.

The cash balance includes $47 million of restricted cash for the company’s Canadian Touquoy mine reclamation bond.

Cash balances, including those in restricted accounts for the Touquoy reclamation bonds, are predominantly deposited in Australian and Canadian denominated interest earning accounts.

Interest income is anticipated to be in the range of $3 to $5 million for FY24.

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