Ann: Simberi deep sea tailings placement pipe operational, page-9

Article in today's Oz:

ButRBC Markets equities analyst Alexander Barkley said operational issues remaineda concern for St Barbara.

“AnySimberi downgrades would contribute to this,” Mr Barkley told clients. At Simberi we expect 50k oz in (the 2022 financial year), missing unchanged guidance of 60-70k oz. We assumed no production in the second quarter.”

Despitethe difficulties at the PNG operations, St Barbara has continued to expand, in lateDecember announcing it would acquire Bardoc Gold for $157m. Bardoc operates a project in Leonora, WA, with St Barbara expected to expand the plant for $30m.

“Theability to mill refractory ore at Bardoc is perhaps a reason St Barbara wasable to beat other suitors,” Citi analyst Kate McCutcheon told clients onDecember 20. “This would make Leonora the only mill within a 200km radius ableto treat refractory ore, boding well for toll treatment or future deals,” shewrote. “We think there’s upside to add an additional processing train too,given the tonnes available for feed.”