FYI, below is my Q&A with SBM on topic of debt management....

FYI, below is my Q&A with SBM on topic of debt management. Hopefully there will be more shortly. Encourage all to do same.  

Query to SBM:
Dear Mr Vassie
As a long time shareholder of SBM shares , 2013/14/15 have certainly been challenging ones for the company and management alike. With the recent release of Jun15 quarterly and 2015 full year results, the last 6 months has seen an impressive turn around in company financials driven by improvements in strategy refocus, operational performance, and numerous environmental factors impacting POG in AUD$. The result is pleasing and congratulations extended for a refocused strategy and effort by all at SBM to bring this about. It is also pleasing that the variables impacting SBMs performance are trending favourably and look likely to continue for the short term. I am comforted some what by the fact that limited hedging is in place to protect cash flow generation which in turn is being utilised to service debt facilities in place.
   However, I am concerned with the large debt level and the strategies SBM will embark on to protect it escalating from unfavourable exchange rate movements. To date AUD$ weakening to US$ and this trend is likely to continue in short term. Looking at SBM debt facilities (2015 vs 2014) roughly same in AUD$ even though substantial payments have been made from cash flow. Can you indicate how SBM will address this situation. Is it considering any sort of risk mitigation strategy in relation to its debt facility & AUD$ deterioration (e.g. hedging, increasing debt repayments to monthly? Of course, I do hope that operational performance, POG, and cost management aspects continue to improve but can all these be relied on to remain favourable. If I can say , I would prefer to see debt facilities reduced ASAP in this environment whilst company performance suggests it can to reasonable serviceable levels. Apart from decreasing current & future obligation, reduce exchange rate exposure , I suspect any such action should also improve market confidence in the company and its abilities to operate profitably in all conditions.  
   Your thoughts on the matter would be greatly welcomed & appreciated.
Once again , thanking you and the team for efforts to date in difficult times.
Kind Regards
Response:
Dear John
Thank you for your email and your positive feedback.  I have provided your email to Mr Vassie.
The Board and management regularly review all the risks facing the business, which include fluctuations in the gold price and the exchange rate.  In particular, the Company monitors foreign exchange exposure and risk continuously through a centralised treasury function and a Management Treasury Risk Committee.

As noted in the presentation on the FY15 Financial Report earlier this week, the Company is seeking to reduce debt ahead of the amortisation schedule as cash flow allows, as evidenced by the US$57 million in US Notes repurchased since late June 2015 (i.e. US$54 million in June plus US$3 million earlier this week).  It is planned to apply future excess cash from operations to reduce US$ denominated debt as the opportunity arises.

The Company has considered hedging closely, and currently has in place for FY16 forward contracts for 100,000 ounces at A$1,600 per ounce to ensure a consistent margin from Simberi production.  The approach at Gwalia is to maximise production volume and minimize the already low production cost per ounce.

As noted in the FY15 Financial Report, gold is sold throughout the world based principally on the U.S. dollar price, and most of the Company’s revenues and interest bearing liabilities are realised in, or linked to, U.S. dollars.  There is a "natural" hedge which matches to a degree U.S. denominated revenue and obligations related to interest bearing liabilities, which reduces (but does not eliminate) foreign exchange risk.  We illustrated the impact of the natural hedge in our December 2014 Half Year Results presentation, and may seek to illustrate a variation of this again in an upcoming presentation for release to the ASX.

I trust this answers your query, and I thank you for your continued interest in St Barbara.
Regards
Rowan Cole
Company Secretary