Ann: Quarterly Report - June 2013 , page-38

For comparison to SBM, SBM production cost is crazy and is rising. Cost of both Gold Ridges and Simberi are about A$2000. It doesn't matter how much gold they can produce if they lose money on each oz then the value of those gold is $0 if not -ve. The only profitable operations are Gwalia and King of the Hills, total ~55,000oz per quarter, which is about 50% higher than SAR only.

SBM has also just borrow US$250m with interest rate of close to 9%: St Barbara to issue US$250 million Senior Secured Notes. That is a cash drain of US$22m just on interest cost alone. Net debt is over A$100m. I am not saying SBM is not cheap though. However the reasons I haven't bought it yet is (still) rising production cost and the amount of debt. To me SAR is clear winner with total downside protection, less debt and reducing cost of production.