St Barbara reports improvements in profits

 ST Barbara, the operator of the Simberi Gold Mine in New Ireland, has declared a statutory profit-after-tax of AU$77 million (K166 million) for the six months to December 31, 2015.

The underlying profit after tax is AUS$60 million (K130 million). 

The company said in its half-year financial report the figure was a significant improvement to the corresponding period in 2014 of AUS$20m (K43m) statutory loss, and AUS$1m underlying loss.

The company attributed the improvement to increased segment profit at Leonora of AUS$97m K209m). 

St Barbara stated in the report that cash and cash equivalents on hand as at December 31 was AUS$100m (K216m), with total interest bearing debt of AUS$293m (K633m). 

“The debt primarily comprised US$180m (K540m) senior secured notes and US$36m (K108m)  Red Kite debt facility, which were reduced by US$55m (K164m) in total from 30 June 2015,” the company said. 

“Debt has been further reduced in the second half as announced previously.”

It said consolidated net cash flow from operations for the period increased to AUS$123m (K266m), compared to AUS$22m (K47m) in 2014.  Managing director and chief executive officer Bob Vassie said: “This is another strong half that reflects the quality of our operations and the fundamental repositioning of our business. 

“With continued strong cash generation, we have significantly strengthened our balance sheet and we are now seeking to realise the longer term potential of our assets.”