St Barbara (SBM) shares rally as they meet cost guidance and relay a positive outlook
SBM +3.33%: The gold producer was out with 4th quarter production numbers, and although they were largely pre-released there were still positives to take out of the update. Production guidance for the full year was met with 281koz of gold produced, as was cost guidance across all assets despite market fears of blowouts due to energy or labour which has weighed on the sector in recent months. Importantly their troublesome assets, Atlantic and Samberi, hit expectations for the period which should help the divestment process of each. The cash balance grew to $98m, placing the balance sheet in a very strong position despite some misconceptions in the market. St Barbara is cheap, it just needs a catalyst of higher prices or favourable corporate activity.
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