St Barbara (ASX:SBM) announced an operational recovery at its Simberi operations, with gold production for the March quarter soaring 49% over the previous quarter to reach 13,522 ounces.
The performance was bolstered by a notable improvement in March, where new leadership oversaw the processing of 192kt of ore at an average grade of 1.14 g/t gold.
Despite the production boost, gold sales trailed slightly at 11,974 ounces, though they achieved a robust average price of $6,892 per ounce.
The quarter was not without its challenges; heavy rainfall—tracking at the 80th percentile of historical records—hampered mining rates, particularly within the Pigibo pit.
While ore mining improved to 679 kt, total volumes fell short of expectations due to difficult conditions and delays in accessing higher-grade benches.
Consequently, some scheduled high-grade production will now shift into the first two months of FY27.
Financially, St Barbara closed the quarter with $170 million in cash and investments.
The figure reflects a $17 million decrease from December, as positive operating cash flow was offset by heavy investment in a new Volvo A60 truck fleet.
Looking ahead, the company's profile is set for a structural shift following the strategic transaction with Lingbao.
For the June quarter, St Barbara expects its 40% attributable share of production to range between 5,600 and 6,800 ounces, with an all-in sustaining cost forecast between $4,100 and $4,500 per ounce.