St Barbara profit tumbles on weak gold price

 Gold miner St Barbara has reported a net loss after tax of A$192-million for the financial year ended June, after reporting a A$309-million impairment on its Pacific operations, which were acquired from Allied Gold Mining.

The impairment was ascribed to the sharp decline in gold prices, and the corresponding impact on future gold-price assumptions.

The net loss for the 2013 financial year compared with a net profit of A$130.2-million in the previous financial year.

Underlying net profit after tax for the full year was also down to A$29-million, compared with the A$121-million reported in 2012, while earnings before interest, tax, depreciation and amortization were A$141-million, compared with the A$182-million reported over the last financial year.

Sales revenue for the year remained on par with the 2012 results, with St Barbara reporting that some A$568.4-million had been accumulated.

At the Australian operations, St Barbara generated a total sales revenue of A$372.1-million, excluding discontinued operation, from gold sales of 239 667 oz. The ASX-listed miner noted that although production was consistent with the previous year, revenue was adversely impacted by the decline in the spot gold price during the year under review.

Meanwhile, in the period since acquisition, the Pacific operations generated some A$139.6-million in sales revenue from gold sales of 88 262 oz.

St Barbara noted that the planning for integrating the Pacific operations into the company portfolio was completed during the period, and integrating the new operations had progressed well by the end of June.