- St Barbara (SBM) shares are trading slightly down after the company announced a non-cash impairment of up to $300 million
- The non-cash impairment, which will be included in its FY21 results, relates to the company’s Atlantic Operations in Nova Scotia, Canada
- SMB says the write-down relates to the delay in commencement of mining at the site’s three future operations due to permitting issues
- First ore from Beaver Dam is expected in 1H FY24, while Fifteen Mile Stream and Cochrane Hill first ore dates have been pushed out to Fy25 and FY28
- Full year results will be released at the end of the month, with SBM shares currently trading down by 4.22 per cent at $1.53 at 1:33 pm AEST
St Barbara (SBM) shares are trading slightly down after the company announced a non-cash impairment of up to $300 million.
The gold producer announced on Friday it was expecting a non-cash impairment of between $250 million to $300 million in relation to its Atlantic Operations.
The reduction in the retrievable amount from the Nova Scotia based asset will be included in SBM’s FY21 results, which should be released on August 26.
The company explained the write-down relates to the delay in commencement of mining at Atlantic due to permitting issues.
The company’s Atlantic Operation consists of an open pit mine as well as three planned operations Beaver Dam, Fifteen Mile Stream and Cochrane Hill.
SBM revealed in the June quarter there was a hold-up with government regulators for all three satellite operations.
Additionally St Barbara said the incomplete Beaver Dam Feasibility Study also indicated that capital costs would be higher.
First ore from Beaver Dam is now expected in the first half of FY24, while production from Fifteen Mile Stream has been pushed out until FY25.
Cochrane Hill looks set to suffer the biggest delay, with its production start date moved from Q3 FY23 to FY28.
Following today’s announcement, shares in SBM were trading down by 4.22 per cent at $1.53 at 1:33 pm AEST.