Monday, April 22, 2013

Gold producer St Barbara moves to ease fears amid price slump

  • From:Dow Jones 
  • April 23, 2013 1:58PM

  • GOLD producer St Barbara said it was confident its Australian mining operations would remain profitable despite sharp price falls for the commodity in recent weeks.
    The gold market recorded its largest-ever two-day selloff this month, knocking the precious metal to its cheapest price in two years.
    "Each of the company's gold operations have been reassessed in response to the recent and significant decline in the gold price, and all are expected to achieve satisfactory returns at current gold prices [around] US$1400 per ounce," Chief Executive Tim Lehany said in a statement today.
    Early trading had spot gold at US$1422.70 an ounce.
    The company's struggling Pacific operations, meanwhile, have increased production volumes and lowered costs in recent months, Mr Lehany said.
    St Barbara acquired the Simberi gold mine in Papua New Guinea and the Gold Ridge gold mine in the Solomon Islands in its takeover of Allied Gold last year.
    In a third-quarter production report published today, the company said it expected to produce between 366,000-386,000 ounces of gold in the fiscal year ending June 30, narrowed from a previous estimate of 371,000 to 401,000 ounces.
    Gold output in the three months ended March 31 rose 8 per cent to 86,818 ounces.


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