With international commodity prices and exchange rates remaining volatile, St Barbara has sold forward 240,000 ounces of gold at Aus$1390 per ounce in a bid to specifically manage financial risk and assure overall cash margins during a period of additional and production ramp-up in its Pacific Operations.
The sale comprises 200,000 ounces across the remainder of the 2014 financial year and the balance in the first quarter of the 2015 financial year. The forward gold sales plus existing scheduled gold loan repayments for fiscal 2014 represent about 71% of forecast production for quarters 2, 3 and 4 of fiscal 2014.
By protecting short term cash margins the company can confidently complete the planned programs of capital investment into the Pacific Operations, to establish long-life, lower cost, cash generative programs.
At the Simberi project in PNG forecast gold production for fiscal 2014 is estimated to reduce by about 20,000 ounces. The new oxide plant at Simberi was expected to be commissioned by the end of 2013 and this is expected to help boost production.