Australian (ASX) Stock Market Forum

SBM - St Barbara Limited

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For the MAY 2020 competition, my selection is SBM.
This COVID-19 is putting holes in so many stocks it is very hard to pick a winner for 1 x month's activity.
SBM production is down on calendar year 2019, exploration is virtually halted, they've had to draw down on debt facility but gold spot price is gradually increasing and I think SBM management will act accordingly and we will see an improved share price on May 30th.
 
SBM cruched this morning on downward revision of the Full guidance.
The main reason for this downgrade is the slower than expected changeover to a new mining subcontractor, macmahon holdings. They are struggling to fill mining positions for the mine contract.
It kinda begs the question as to why they changed mining contractors.
Would love to have a chat with the board about this latest fiasco.
 
This is my weekly chart for SBM. It's stuck between two weekly order blocks and looks to be forming a broadening descending wedge within this larger channel. It's already retested the recent downwards trendline and double-bounced off that order block from 2015 which has been respected 3 times now.
1622083531442.png


If it can break out of the BDW and flip that red OB into support then it will need to take out the larger channel and I'll be a happy camper!
There's resistance at around $2.50 as well.
 
mullokintyre said:
SBM cruched this morning on downward revision of the Full guidance.
The main reason for this downgrade is the slower than expected changeover to a new mining subcontractor, macmahon holdings. They are struggling to fill mining positions for the mine contract.
It kinda begs the question as to why they changed mining contractors.
Would love to have a chat with the board about this latest fiasco.
Click to expand...
I sent an email off to the comms spokesperson asking why they changed miners, and what guarantees there were in place to get staff. The usual bull**** answer as follows

Thank you for your email.

The decision to appoint a new underground mining contractor was to improve the future performance at Gwalia, with the structure of the new contract more aligned with productivity and safety improvements.

As was mentioned in the announcement on Tuesday the resourcing of the new contractor together with the grade underperformance led to the revision of FY21 guidance.

I have passed your email along to the CEO and Executive team.
Click to expand...
No answer as to why, nor performance KPs mentioned.
The current management has been nothing short of piss poor for SBM, the next AGM will be interesting.
 
mullokintyre said:
SBM cruched this morning on downward revision of the Full guidance.
The main reason for this downgrade is the slower than expected changeover to a new mining subcontractor, macmahon holdings. They are struggling to fill mining positions for the mine contract.
It kinda begs the question as to why they changed mining contractors.
Would love to have a chat with the board about this latest fiasco.
Click to expand...
AFTER one year and half SBM crashed again. I have had doubt on their CAPEX value and can not accept the AISC +$2000 being so low.
www2.asx.com.au

SBM share price and company information for ASX:SBM

View today’s SBM share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.
www2.asx.com.au www2.asx.com.au

What happened to this mob having increased its stake and collapsed more than 10 % within a week. So called fundy expert or dart players ?

 
Miner said:
AFTER one year and half SBM crashed again. I have had doubt on their CAPEX value and can not accept the AISC +$2000 being so low.
www2.asx.com.au

SBM share price and company information for ASX:SBM

View today’s SBM share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.
www2.asx.com.au www2.asx.com.au

What happened to this mob having increased its stake and collapsed more than 10 % within a week. So called fundy expert or dart players ?

Click to expand...
Put a small buy order there.see if it can fill . start being quite low not to get some income in coming years
 
chicken said:
Reading the latest Share Magazine an intresting article caught my eye..SBM..who bought the gold assets from SGW...any comments ,or what do the investors think ???? Price is cheap enough...at present 11c...is there life in this stock...comments please...SHARE MAGAZINE thinks so... :2twocents
Click to expand...
A reminder of St Barbara back in 2005 at just 11c. In 1987 the shares hit 55c before falling from 36c to 9c in a single day on October 19 1987 - the Great Mining Crash. . Back in 1990 ( old name Endeavor Resources Limited ) the share price was 2c and briefly touching 1.5c. In 1994 the St Barbara Mining share price reached about $2.80 up over 140 times from its low point. SBM is going through trying times now but its history shows it has ups and downs like few others. Endeavor Resources was a high flyer in the 1960s and 1970s mining boom.

CCH iKnow | Australian Tax & Accounting

Resource of Australian Tax and Accounting materials, including Legislation, Rulings, Cases, Commentary, Practice Aids and News
iknow.cch.com.au iknow.cch.com.au

Atkins wins fight for control of St Barbara

The battle for control of St Barbara Mines Ltd finally reached a conclusion yesterday when Mr Ross Atkins regained control of the company after a protracted 18- month battle.
www.afr.com www.afr.com
thewest.com.au

Magistrate scathing of former mine boss

Former St Barbara boss Ross Atkins has been savaged in the WA Warden's Court, with Magistrate Stephen Wilson describing his evidence in a tenement forfeiture hearing as "demonstrably false".
thewest.com.au thewest.com.au
Mining Booms and the Australian Economy
 
Last edited:
Good morning
SBM announcement not good:

Shortage of equipment and workers is 'an area of significant concern' for St Barbara, which has cut guidance and deferred capital expenditure on major projects by 12 months following a slow first quarter.

The group's gold production for the first quarter of FY23 came in at 63,700 ounces, down from the 67,000 ounces in the prior corresponding period.

The group sold 62,726 ounces of gold during the quarter at an average realised price of $2486 per ounce – lower that the previous quarter's 85,650 ounces at $2521 per ounce.

Group all-in sustaining cost (AISC) for the quarter came in at $2490 per ounce, much higher that the $1492 per ounce in the prior corresponding period due to higher fixed costs.

While its Simberi mine in PNG and Atlantic in Canada performed in line with expectations, the group production result came in lower than anticipated due to slower than expected ramp-up in underground mine equipment availability and utilisation at its Leonara operations in WA, which includes the Gwalia mine.

The group has now deferred the expansion of its Leonara processing plant by 12 months to "reduce execution risk with availability of construction contractors and reliability of equipment lead times of significant concern in the current market conditions". Its Simberi plans have also been deferred.

The deferral has also resulted in production guidance for FY23 being cut by 14 per cent because it had been previously underpinned by the delivery of 1.1 million tonnes of Gwalia ore to the processing plant.

"Across the industry there has been intense competition for highly skilled fitters and maintainers and St Barbara, together with Macmahon, has only been able to fill the majority of required positions by the end of September," the group said.

"It has become evident the full year target of 1.1Mt of ore out of Gwalia cannot be achieved in FY23," the group said, calculating a new target of 950,000 tonnes.

"Capital expenditure guidance has been updated to reflect the deferral of the Simberi Sulphide project, the Leonora Processing Plant expansion to 2.1Mtpa, development of the Aphrodite underground mine and refractory ore treatment capability at Leonora," St Barbara said.

The group also updated the underlying currency guidance for the lower Aussie dollar with AISC guidance for Leonora updated to reflect lower gold production.

FY23 production guidance is now for 260,000-290,000 ounces of gold at a higher AISC of $2250-$2500 per ounce with sustaining capital expenditure cut to $70m-90m and growth capex at $53m-$70m.

It compares to the August guidance of consolidated gold production of between 280,000 and 315,000 ounces at an AISC of between $2,050 and $2,150 per ounce with sustaining capex of $75m–$95m and growth capex of $95m–$120m.

St Barbara last traded at $0.537
 
Good evening,
https://cdn-api.markitdigital.com/a...pdf?access_token=00074IMp86NNVMWPc1I5tTCaEetK
(p 13) "Red 5 participates in strategic consolidation discussions from time to time. Red 5 is in ongoing discussions with St Barbara (SBM) regarding potential operational synergies: ... " "Combined KOTH and Gwalia Ore Reserves of 4.9Moz1 , located ~30 km’s" apart

Operational synergies, what does that actually mean? ha ha ha ha ha

St Barbara owns and operates Atlantic in Canada, Simberi in Papua New Guinea, and Leonora in Western Australia. SBM says, Simberi and Atlantic operations performed in line with expectations, but the Gwalia mine within the Leonora operation was impacted by lower equipment availability and utilisation.

SBM acknowledges discussions with RED5 in an announcement on 29/09/22 and says in part: "The discussions with Red 5 are very preliminary in nature and are incomplete with no agreement or understanding between the parties regarding the terms of any combination, nor is there any certainty of any agreement being reached." What else could they say really. Probably true, mostly ha ha ha ha.

Maybe SBM and Red5 looking at doing something. Consolidation, not sure. Hope not, don't like RED5.

At the end of the September quarter, St Barbara had $65 million in cash, close to a 35 million decrease from the June quarter.

Have traded SBM heaps of times, not for awhile though. Had disappointed rcw1 so. Will watch closely tomorrow and coming days for any openings. They got gold they do. rcw1 view, kindly conduct your own due diligence and have a very nice night.

Kind regards
rcw1
 
rcw1 said:
Good evening,
https://cdn-api.markitdigital.com/a...pdf?access_token=00074IMp86NNVMWPc1I5tTCaEetK
(p 13) "Red 5 participates in strategic consolidation discussions from time to time. Red 5 is in ongoing discussions with St Barbara (SBM) regarding potential operational synergies: ... " "Combined KOTH and Gwalia Ore Reserves of 4.9Moz1 , located ~30 km’s" apart

Operational synergies, what does that actually mean? ha ha ha ha ha

St Barbara owns and operates Atlantic in Canada, Simberi in Papua New Guinea, and Leonora in Western Australia. SBM says, Simberi and Atlantic operations performed in line with expectations, but the Gwalia mine within the Leonora operation was impacted by lower equipment availability and utilisation.

SBM acknowledges discussions with RED5 in an announcement on 29/09/22 and says in part: "The discussions with Red 5 are very preliminary in nature and are incomplete with no agreement or understanding between the parties regarding the terms of any combination, nor is there any certainty of any agreement being reached." What else could they say really. Probably true, mostly ha ha ha ha.

Maybe SBM and Red5 looking at doing something. Consolidation, not sure. Hope not, don't like RED5.

At the end of the September quarter, St Barbara had $65 million in cash, close to a 35 million decrease from the June quarter.

Have traded SBM heaps of times, not for awhile though. Had disappointed rcw1 so. Will watch closely tomorrow and coming days for any openings. They got gold they do. rcw1 view, kindly conduct your own due diligence and have a very nice night.

Kind regards
rcw1
Click to expand...
One of my perpetual disappointment too.i get in..i lose...
 
rcw1 said:
Good morning
SBM announcement not good:

Shortage of equipment and workers is 'an area of significant concern' for St Barbara, which has cut guidance and deferred capital expenditure on major projects by 12 months following a slow first quarter.

The group's gold production for the first quarter of FY23 came in at 63,700 ounces, down from the 67,000 ounces in the prior corresponding period.

The group sold 62,726 ounces of gold during the quarter at an average realised price of $2486 per ounce – lower that the previous quarter's 85,650 ounces at $2521 per ounce.

Group all-in sustaining cost (AISC) for the quarter came in at $2490 per ounce, much higher that the $1492 per ounce in the prior corresponding period due to higher fixed costs.

While its Simberi mine in PNG and Atlantic in Canada performed in line with expectations, the group production result came in lower than anticipated due to slower than expected ramp-up in underground mine equipment availability and utilisation at its Leonara operations in WA, which includes the Gwalia mine.

The group has now deferred the expansion of its Leonara processing plant by 12 months to "reduce execution risk with availability of construction contractors and reliability of equipment lead times of significant concern in the current market conditions". Its Simberi plans have also been deferred.

The deferral has also resulted in production guidance for FY23 being cut by 14 per cent because it had been previously underpinned by the delivery of 1.1 million tonnes of Gwalia ore to the processing plant.

"Across the industry there has been intense competition for highly skilled fitters and maintainers and St Barbara, together with Macmahon, has only been able to fill the majority of required positions by the end of September," the group said.

"It has become evident the full year target of 1.1Mt of ore out of Gwalia cannot be achieved in FY23," the group said, calculating a new target of 950,000 tonnes.

"Capital expenditure guidance has been updated to reflect the deferral of the Simberi Sulphide project, the Leonora Processing Plant expansion to 2.1Mtpa, development of the Aphrodite underground mine and refractory ore treatment capability at Leonora," St Barbara said.

The group also updated the underlying currency guidance for the lower Aussie dollar with AISC guidance for Leonora updated to reflect lower gold production.

FY23 production guidance is now for 260,000-290,000 ounces of gold at a higher AISC of $2250-$2500 per ounce with sustaining capital expenditure cut to $70m-90m and growth capex at $53m-$70m.

It compares to the August guidance of consolidated gold production of between 280,000 and 315,000 ounces at an AISC of between $2,050 and $2,150 per ounce with sustaining capex of $75m–$95m and growth capex of $95m–$120m.

St Barbara last traded at $0.537
Click to expand...
Indicative of the times in my opinion... So many WA gold miners are simply not good long-term investments. Grade too low, cost structure too high and any profits usually get turned into more capital spending. Debt and capital raisings typically cover dividends if paid.

Think I've posted this table before, but this is roughly the AISC vs the $ outflows for FY22 (not including debt/dividends) for a bunch of gold miners (one or two have copper I think, might be off by $50 or so). GOR and NST were the only ones which looked like they generated enough $$$ to pay decent dividends. The rest all looked like cash burning machines. Costs keep going up. So many investors need to learn that ASIC and reported profits are just accounting witchcraft. Follow the money follow the cashflow because miners are masters of turning $100 today into $50 tomorrow.

1666135619581.png

It's a shame SBM has never managed to leverage their Gwalia mine into much of anything else. All the overseas things seem to have been duds. (let's not forget the bad karma of the AFP Investigation). I don't see how they have an 87-year resource life as you can't keep mining to the center of the earth... I suppose a resource life doesn't consider the costs of mining?

SBM used to own king of the hills and dumped 7-8 years ago to saracen for a few million who then dumped it for about 4-5x what they paid for it to red5 who know have a market cap not too far off that of SBMs. Silly industry.

1666136354320.png
 
Good morning,
Really good news for SBM. New leadership !!! slides in after a couple hard decisions made. Wise move.

A month after slashing output expectations and pushing back capital investment at its underperforming gold mines, St Barbara managing director and chief executive Craig Jetson will hand over the reins of the business to Western Areas chief executive Dan Lougher, who led its takeover by IGO in June, to replace him on 28 November.

Jetson, who resigned, joined the group in February 2020 with an on-boarding grant of 200,000 shares and an annual base salary of $1m, including superannuation. He took home $1.5m in remuneration to the end of June 30 this year. No reason was given for Mr Jetson's resignation.

Lougher is being appointed on a lower annual fixed salary of $750,000, but is set to receive 800,000 shares as a one-off grant and will be eligible for other incentives, subject to milestones. Jetson will remain with the company for a few weeks after Lougher joins to ensure a comprehensive and orderly handover. Nice, as it should be. No bad blood then...

St Barbara non-executive chairman Tim Netscher said the board is pleased to have secured Dan.
"An initial important priority for Dan will be to ensure that the agreed FY23 Gwalia business plan and budget are delivered and that the significant value associated with the Leonora Province Plan is unlocked, including potential value accretive corporate activity".
Shares in St Barbara, valued at $478m, last traded at 59c, down 58 per cent for the year so far.

Holding.

Kind regards
rcw1
 
rcw1 said:
Good morning,
Really good news for SBM. New leadership !!! slides in after a couple hard decisions made. Wise move.

A month after slashing output expectations and pushing back capital investment at its underperforming gold mines, St Barbara managing director and chief executive Craig Jetson will hand over the reins of the business to Western Areas chief executive Dan Lougher, who led its takeover by IGO in June, to replace him on 28 November.

Jetson, who resigned, joined the group in February 2020 with an on-boarding grant of 200,000 shares and an annual base salary of $1m, including superannuation. He took home $1.5m in remuneration to the end of June 30 this year. No reason was given for Mr Jetson's resignation.

Lougher is being appointed on a lower annual fixed salary of $750,000, but is set to receive 800,000 shares as a one-off grant and will be eligible for other incentives, subject to milestones. Jetson will remain with the company for a few weeks after Lougher joins to ensure a comprehensive and orderly handover. Nice, as it should be. No bad blood then...

St Barbara non-executive chairman Tim Netscher said the board is pleased to have secured Dan.
"An initial important priority for Dan will be to ensure that the agreed FY23 Gwalia business plan and budget are delivered and that the significant value associated with the Leonora Province Plan is unlocked, including potential value accretive corporate activity".
Shares in St Barbara, valued at $478m, last traded at 59c, down 58 per cent for the year so far.

Holding.

Kind regards
rcw1
Click to expand...
I don't think anyone will argue that SBM needed a leadership change but swapping to Dan Lougher is hardly an upgrade. And from memory he's recently been appointed to at least two other boards (American West and some other nickel player in Asia?) When DL took over at Western Areas (I was a shareholder) in early 2012 the share price was over $5 per share and the future was bright. A decade later IGO bought Western Areas for $3.87 per share (roughly an annual loss of 3% if you had held for 10 years). Now nickel was probably about $18000 USD/Tonne at that point and was not much higher when they sold out - but still - that's hardly a very good track record. From memory Tim Netscher was on the WSA board of directors so hardly a surprising outcome here. But this might just be a short-lived appointment as all the rumours are that there will be consolidation in this space either with genesis, red 5, or other parties.

But back to SBM - they are screwed unless they can drop the AISC down well below forecast. Someone needs to give them more money to cover all the capital (as I don't think existing cash and facilities will do) and more money may have been a condition attached to the departure of one MD and the appointment of another. The bardoc acquisition gave them a heap of refractory ore which required millions to be spent retrofitting the SBM mill - which has now been delayed so...where is the upside to SBM other than the upside which comes from the possible increase in the POG? Sometimes I think crypto is a better bet than West Aussie gold miners.

1668640792952.png
 
The Triangle said:
But back to SBM - they are screwed unless they can drop the AISC down well below forecast.
Click to expand...

Those projects almost look unfeasible at those AISCs. When you add in the sustainment and growth CAPEX they're probably making a few bucks an ounce. Need AUD POG to go well over $3k I think.
 
Good afternoon
Sold holding for a nice earn. Some good movement today. SP come out of its month long or so hibernation.

Have a very nice day today.

Kind regards
rcw1
rcw1 said:
Hmmmmmmm $0.485
Many buyers queuing …

Kind regards
Rcw1
Click to expand...
 
Good afternoon

St Barbara resumed trading for the first time since it revealed plans to merger with Genesis Minerals. Announcements concerning this merger published. SP liked all the fuss and got to $0.817. Currently sitting at $0.737 a 13.38% gain.

Not holding.

Have a safe and happy Christmas and prosperous new year.

Kind regards
rcw1
 

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